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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 811-07142
- -----------------------------------------------------------------
GENERAL ELECTRIC FUNDS
- ------------------------------------------------------------------
(Exact name of registrant as specified in charter)
3001, SUMMER STREET,STAMFORD, CONNECTICUT, 06905
- -------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
GE ASSET MANAGEMENT,3001, 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: 09/30
---------------------------
Date of reporting period: 3/31/05
-------------------------
<page>
ITEM 1. REPORTS TO STOCKHOLDERS.
GE Funds
Semi-Annual Report
MARCH 31, 2005
[GE logo omitted]
GE Funds
Table of Contents
FINANCIAL INFORMATION
MANAGER REVIEWS AND SCHEDULES OF INVESTMENTS
GE U.S. Equity Fund ................................................ 1
GE Value Equity Fund ............................................... 7
GE Small-Cap Value Equity Fund ..................................... 14
GE Global Equity Fund .............................................. 20
GE International Equity Fund ....................................... 27
GE Premier Growth Equity Fund ...................................... 33
GE Strategic Investment Fund ....................................... 38
GE Government Securities Fund ...................................... 54
GE Short-Term Government Fund ...................................... 60
GE Tax-Exempt Fund ................................................. 65
GE Fixed Income Fund ............................................... 72
GE Money Market Fund ............................................... 86
NOTES TO PERFORMANCE ..................................................... 90
NOTES TO SCHEDULES OF INVESTMENTS ........................................ 92
FINANCIAL STATEMENTS
Financial Highlights ............................................... 93
Notes to Financial Highlights ...................................... 105
Statements of Assets and Liabilities ............................... 106
Statements of Operations ........................................... 110
Statements of Changes in Net Assets ................................ 114
Notes to Financial Statements ...................................... 122
ADDITIONAL INFORMATION ................................................... 137
INVESTMENT TEAM .......................................................... 140
- -------------------------------------------------------------------------------
This report has been prepared for shareholders and may be distributed to others
only if preceded by or accompanied with a current prospectus.
GE U.S. Equity Fund
Q&A
DAVID B. CARLSON IS A DIRECTOR AND EXECUTIVE VICE PRESIDENT OF GE ASSET
MANAGEMENT. HE MANAGES THE OVERALL U.S. EQUITY INVESTMENTS FOR GE ASSET
MANAGEMENT. MR. CARLSON LEADS A TEAM OF PORTFOLIO MANAGERS FOR THE U.S. EQUITY
FUND AND HAS SERVED IN THAT CAPACITY SINCE SEPTEMBER 2003. MR. CARLSON IS ALSO
PORTFOLIO MANAGER FOR THE PREMIER GROWTH EQUITY FUND AND HAS SERVED IN THAT
CAPACITY SINCE THE FUND'S COMMENCEMENT. MR. CARLSON JOINED GE ASSET MANAGEMENT
IN 1982 AS A SECURITIES ANALYST FOR INVESTMENT OPERATIONS. HE BECAME A VICE
PRESIDENT FOR MUTUAL FUND PORTFOLIOS IN 1987 AND A SENIOR VICE PRESIDENT IN
1989. DAVE IS A GRADUATE OF INDIANA UNIVERSITY WITH A BS IN FINANCE. HE IS A
MEMBER OF THE NEW YORK SOCIETY OF SECURITY ANALYSTS AND IS A HOLDER OF A
CHARTERED FINANCIAL ANALYST DESIGNATION.
Q. HOW DID THE GE U.S. EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND LIPPER
PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE U.S. Equity Fund
returned 6.20% for Class A shares, 5.75% for Class B shares, 5.78% for Class
C shares, and 6.31% for Class Y shares. The S&P 500 Index, the benchmark,
advanced 6.88% and the Fund's Lipper Peer group of 936 Large-Cap Core Funds
returned an average of 6.22% for the same period.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK FOR THE SIX-MONTH PERIOD ENDED
MARCH 31, 2005?
A. The market strengthened after the election in late 2004, but then declined
modestly in the first quarter of 2005. With oil prices staying over $50 a
barrel, investors were worried about a slowing economy. Energy was the best
performing sector in the period, returning 23% for the S&P 500 Index, the
Fund's benchmark.
Investments in the Information Technology, Financials, and Consumer Staples
sectors were the primary drivers of underperformance over the period. In
particular, the IT services, Insurance, and Tobacco industries within these
sectors impacted the Fund's performance versus its benchmark.
Q. WHICH PARTICULAR STOCKS/SECTORS SIGNIFICANTLY CONTRIBUTED TO FUND
PERFORMANCE?
A. The Energy sector contributed most to performance overall, particularly oil
and gas stocks, with Encana (+53%), Burlington Resources (+23%), and Exxon
Mobil (+25%) advancing over the period. Within Healthcare, pharmaceutical
company Johnson & Johnson (+19%) was one of several positive contributors
from this industry. A position in Lincare Holdings (+49%), also in the
Healthcare sector, helped the portfolio's return versus the benchmark.
In Consumer Staples, an underweight in Tobacco stocks, including Altria
(+42%), drove underperformance versus the benchmark. Although our allocation
to Healthcare helped performance versus the benchmark, overweight in Pfizer
(-13%) detracted from the portfolio. Information Technology names First Data
(-9%) and Molex (-10%) detracted from performance as the benchmark sector
rose 16%.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE DURING THE SIX-MONTH PERIOD
ENDED MARCH 31, 2005?
A. The U.S. presidential election was a key event during the first half of the
period, and it gave way to a post-election rally that drove stock prices up
9% by the end of 2004. However, oil prices hit historical highs during the
six-month period, dampening the economy, and fueling investor concerns about
the possibility of a recession should oil prices go higher. Despite the
recent increases in short-term rates by the Federal Reserve, interest rates
remain historically low and the indication is that inflation is under
control. Corporate earnings continued to grow, but at a more muted pace than
the last two years. Dividend growth has accelerated in the last two years,
following the lowering of the dividend tax rate to 15%. The equity markets
have responded favorably to the growth in corporate earnings and the
increase in distributions from dividends.
PICTURED TO THE RIGHT: DAVID B. CARLSON
1
GE U.S. Equity Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,061.96 4.06
Class B 1,000.00 1,057.54 7.98
Class C 1,000.00 1,057.76 7.98
Class Y 1,000.00 1,063.04 2.76
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.84 3.91
Class B 1,000.00 1,017.16 7.68
Class C 1,000.00 1,017.17 7.68
Class Y 1,000.00 1,022.06 2.66
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.78% FOR CLASS
A, 1.53% FOR CLASS B, 1.53% FOR CLASS C, AND 0.53% FOR CLASS Y (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER
THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 6.20% FOR CLASS A SHARES, 5.75% FOR CLASS B SHARES, 5.78% FOR CLASS C
SHARES, AND 6.31% FOR CLASS Y SHARES.
2
GE U.S. Equity Fund
- -------------------------------------------
TEN LARGEST HOLDINGS
AS OF MARCH 31, 2005
as a % of Market Value
- -------------------------------------------
Exxon Mobil Corp. 3.56%
- -------------------------------------------
Pfizer Inc. 3.22%
- -------------------------------------------
Citigroup Inc. 3.11%
- -------------------------------------------
Microsoft Corp. 3.02%
- -------------------------------------------
Industrial Select Sector SPDR Fund 2.75%
- -------------------------------------------
PepsiCo, Inc. 2.35%
- -------------------------------------------
Abbott Laboratories 2.18%
- -------------------------------------------
First Data Corp. 2.14%
- -------------------------------------------
Johnson & Johnson 2.07%
- -------------------------------------------
Vodafone Group PLC ADR 1.91%
- -------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets in equity securities of issuers that
are tied economically to the U.S. under normal market conditions.
LIPPER PERFORMANCE COMPARISON
Large-Cap Core Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of
Funds in
peer group: 936 908 596 229
- -------------------------------------------------------------
Peer group
average annual
total return: 6.22% 4.04% -4.47% 8.87%
- -------------------------------------------------------------
Lipper categories
in peer group: Large-Cap Core
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE US Equity Fund GE US Equity Fund w/load S&P 500 Index
- -------------------------------------------------------------------------------------------
3/95 $10,000.00 $ 9,425.00 $10,000.00
9/95 11,773.71 11,096.73 11,825.64
9/96 13,975.54 13,171.95 14,230.26
9/97 19,532.69 18,409.56 19,991.28
9/98 20,631.05 19,444.76 21,813.07
9/99 26,365.03 24,849.04 27,878.53
9/00 29,554.20 27,854.84 31,570.66
9/01 24,320.74 22,922.30 23,154.40
9/02 19,995.89 18,846.13 18,410.07
9/03 24,013.72 22,632.93 22,909.48
9/04 26,382.81 24,865.80 26,087.96
3/05 28,018.35 26,407.30 27,883.69
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
GE U.S. Equity 6.20% 4.81% -1.42% 10.85%
GE U.S. Equity
W/LOAD 0.09% -1.22% -2.58% 10.20%
MAXIMUM LOAD
OF 5.75%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE U.S. Equity Fund S&P 500 Index
- ---------------------------------------------------------------
3/95 $10,000.00 $10,000.00
9/95 11,725.16 11,825.64
9/96 13,810.29 14,230.26
9/97 19,161.79 19,991.28
9/98 20,081.72 21,813.07
9/99 25,470.44 27,878.53
9/00 28,346.46 31,570.66
9/01 23,254.12 23,154.40
9/02 19,118.95 18,410.07
9/03 22,960.56 22,909.48
9/04 25,225.75 26,087.96
3/05 26,789.57 27,883.69
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ------ ------
GE U.S. Equity 5.75% 4.02% -2.15% 10.35%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE U.S. Equity Fund S&P 500 Index
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 11,372.41 11,773.02
9/00 11,125.34 11,324.36
3/01 10,109.34 9,200.32
9/01 9,089.24 8,305.46
3/02 10,146.06 9,219.23
9/02 7,415.77 6,603.67
3/03 7,684.68 6,936.74
9/03 8,859.21 8,217.61
3/04 9,823.71 9,374.53
9/04 9,660.95 9,357.72
3/05 10,218.98 10,001.85
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- -------- -----------
GE U.S. Equity 5.78% 4.02% -2.12% 0.39%
S&P 500 Index 6.88% 6.69% -3.21% 0.00%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE U.S. Equity Fund S&P 500 Index
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 11,787.62 11,825.64
9/96 14,023.83 14,230.26
9/97 19,656.21 19,991.28
9/98 20,807.59 21,813.07
9/99 26,663.06 27,878.53
9/00 29,962.99 31,570.66
9/01 24,719.65 23,154.40
9/02 20,373.69 18,410.07
9/03 24,543.69 22,909.48
9/04 27,030.82 26,087.96
3/05 28,736.09 27,883.69
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- ------ --------
GE U.S. Equity 6.31% 5.07% -1.16% 11.13%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
3
March 31, 2005 (unaudited)
GE U.S. EQUITY FUND
Schedule of Investments
GE U.S. EQUITY FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $699,719
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Financials 18.6%
Information Technology 15.1%
Healthcare 12.8%
Consumer Discretionary 11.4%
Industrials 11.0%
Consumer Staples 9.8%
Energy 8.8%
Short-Term Investments 3.4%
Materials 3.3%
Telecommunication Services 3.0%
Utilities 2.8%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 95.5%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 11.7%
Cablevision Systems Corp.
(Class A) ................... 12,233 $ 343,136(a)
Carnival Corp. ................. 114,167 5,914,992
Comcast Corp. (Class A) ........ 12,278 414,751(a)
Comcast Corp. (Class A)
(Special) ................... 360,1731 2,029,778(a)
eBay Inc. ...................... 26,264 978,597(a)
Family Dollar Stores, Inc. ..... 79,429 2,411,464
The Home Depot, Inc. ........... 152,998 5,850,643
Liberty Media Corp. (Series A) . 1,207,071 12,517,326(a)
Liberty Media International Inc.
(Series A) .................. 62,256 2,723,077(a)
Lowe's Companies, Inc. ......... 101,711 5,806,681
News Corp. (Class A) ........... 139,388 2,358,445
Omnicom Group .................. 47,451 4,200,363
Target Corp. ................... 190,445 9,526,059
Time Warner Inc. ............... 284,706 4,996,590(a)
Tribune Co. .................... 41,520 1,655,402
Viacom Inc. (Class B) .......... 224,277 7,811,568
79,538,872
CONSUMER STAPLES -- 10.0%
Altria Group, Inc. ............. 9,229 603,484
Anheuser-Busch Companies, Inc. . 71,177 3,373,078(h)
Avon Products, Inc. ............ 25,332 1,087,756
Clorox Co. ..................... 143,480 9,037,805
Colgate-Palmolive Co. .......... 143,433 7,482,900
Kellogg Co. .................... 96,029 4,155,175
NUMBER
OF SHARES VALUE
Kimberly-Clark Corp. ........... 121,866 $ 8,010,252
PepsiCo, Inc. .................. 310,460 16,463,694
Procter & Gamble Co. ........... 88,970 4,715,410
Sara Lee Corp. ................. 196,923 4,363,814
The Coca-Cola Co. .............. 44,486 1,853,732
Wal-Mart Stores, Inc. .......... 144,868 7,259,335
68,406,435
ENERGY -- 9.0%
Amerada Hess Corp. ............. 15,339 1,475,765(j)
Burlington Resources Inc. ...... 166,980 8,360,689
ConocoPhillips Co. ............. 36,822 3,970,884
EnCana Corp. ................... 51,947 3,658,108
Exxon Mobil Corp. .............. 417,569 24,887,112(h)
Halliburton Co. ................ 53,382 2,308,771
Nabors Industries Ltd. ......... 41,140 2,433,020(a)
Occidental Petroleum Corp. ..... 60,500 4,305,785
Schlumberger Ltd. .............. 143,824 10,136,716
61,536,850
FINANCIALS -- 18.4%
AFLAC Incorporated ............. 38,815 1,446,247
Allstate Corp. ................. 137,454 7,430,763
American International
Group, Inc. ................. 192,638 10,674,072
Bank of America Corp. .......... 264,702 11,673,358
Berkshire Hathaway Inc.
(Class B) ................... 913 2,607,528(a)
Chubb Corp. .................... 59,874 4,746,212
Citigroup Inc. ................. 483,822 21,742,961
Federal Home Loan
Mortgage Corp. .............. 34,248 2,164,474
Federal National
Mortgage Assoc. ............. 192,094 10,459,518
The Hartford Financial Services
Group, Inc. ................. 10,083 691,290
HCC Insurance Holdings, Inc. ... 24,912 900,818(j)
JPMorgan Chase & Co. ........... 75,921 2,626,867
Marsh & McLennan
Companies, Inc. ............. 593 18,039
MBNA Corp. ..................... 247,932 6,086,731
Mellon Financial Corp. ......... 183,549 5,238,488
Merrill Lynch & Co., Inc. ...... 66,787 3,780,144
Morgan Stanley ................. 100,731 5,766,850
Principal Financial Group ...... 95,163 3,662,824
Prudential Financial, Inc. ..... 42,813 2,457,466
State Street Corp. ............. 241,348 10,551,735(e)
SunTrust Banks, Inc. ........... 32,522 2,343,861
US Bancorp ..................... 65,246 1,880,390
Wachovia Corp. ................. 59,931 3,051,087
Wells Fargo & Co. .............. 57,084 3,413,623
125,415,346
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
4
March 31, 2005 (unaudited)
GE U.S. EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
HEALTHCARE -- 13.1%
Abbott Laboratories ............ 327,305 $ 15,258,959
Amgen Inc. ..................... 60,974 3,549,297(a)
Cardinal Health, Inc. .......... 33,678 1,879,232(h)
GlaxoSmithKline PLC ADR ........ 88,081 4,044,680(j)
HCA Inc. ....................... 59,931 3,210,504
Johnson & Johnson .............. 215,214 14,453,772
Lincare Holdings Inc. .......... 92,529 4,092,558(a)
Medtronic Inc. ................. 20,546 1,046,819
Merck & Co., Inc. .............. 75,922 2,457,595
Pfizer Inc. .................... 857,701 22,531,805
Smith & Nephew PLC ADR ......... 10,238 481,391(j)
UnitedHealth Group
Incorporated ................ 63,181 6,026,204
Wyeth .......................... 251,455 10,606,372(h)
89,639,188
INDUSTRIALS -- 8.5%
Burlington Northern
Santa Fe Corp. .............. 73,549 3,966,498
Corinthian Colleges, Inc. ...... 47,080 740,098(a,j)
Danaher Corp. .................. 25,339 1,353,356
Deere & Co. .................... 69,634 4,674,530
Dover Corp. .................... 163,255 6,169,406(h)
Eaton Corp. .................... 61,342 4,011,767
Emerson Electric Co. ........... 20,487 1,330,221
General Dynamics Corp. ......... 25,968 2,779,874
Northrop Grumman Corp. ......... 101,320 5,469,254
Pitney Bowes Inc. .............. 8,565 386,453
Southwest Airlines Co. ......... 148,415 2,113,430
3M Co. ......................... 23,690 2,029,996
Tyco International Ltd. ........ 307,162 10,382,076
Union Pacific Corp. ............ 27,403 1,909,989
United Technologies Corp. ...... 70,808 7,198,341
Waste Management, Inc. ......... 116,255 3,353,957
57,869,246
INFORMATION TECHNOLOGY -- 15.5%
Analog Devices, Inc. ........... 150,325 5,432,745
Applied Materials, Inc. ........ 237,255 3,855,394(a)
Automatic Data
Processing, Inc. ............ 90,547 4,070,088
Certegy Inc. ................... 69,634 2,410,729
Checkfree Corp. ................ 21,098 859,954(a)
Cisco Systems, Inc. ............ 439,100 7,855,499(a)
Dell Inc. ...................... 147,323 5,660,150(a)
EMC Corp. ...................... 249,118 3,069,134(a)
First Data Corp. ............... 380,225 14,946,645
Intel Corp. .................... 338,682 7,867,583
International Business
Machines Corp. .............. 88,045 8,045,552
Intuit Inc. .................... 113,016 4,946,710(a)
Microsoft Corp. ................ 875,566 21,162,430
Molex Inc. (Class A) ........... 184,940 4,364,584(j)
NUMBER
OF SHARES VALUE
Oracle Corp. ................... 700,579 $ 8,743,226(a)
Paychex, Inc. .................. 17,925 588,298
Unisys Corp. ................... 106,765 753,761(a)
Yahoo! Inc. .................... 38,934 1,319,863(a)
105,952,345
MATERIALS -- 3.4%
Alcoa Inc. ..................... 59,314 1,802,552
Barrick Gold Corp. ............. 75,922 1,819,091(j)
Freeport-McMoRan Copper &
Gold Inc. (Class B) ......... 54,225 2,147,852
Monsanto Co. ................... 60,500 3,902,250
Newmont Mining Corp. ........... 85,578 3,615,670
Praxair, Inc. .................. 77,108 3,690,389
Rohm & Haas Co. ................ 47,451 2,277,648
Weyerhaeuser Co. ............... 54,225 3,714,412
22,969,864
TELECOMMUNICATION SERVICES -- 3.0%
Sprint Corp. ................... 158,712 3,610,698
Verizon Communications Inc. .... 106,765 3,790,157
Vodafone Group PLC ADR ......... 503,467 13,372,084(j)
20,772,939
UTILITIES -- 2.9%
American Electric Power
Company, Inc. ............... 77,108 2,626,298
Constellation Energy
Group, Inc. ................. 19,310 998,476
Dominion Resources, Inc. ....... 82,766 6,160,273
Entergy Corp. .................. 67,535 4,772,023
PG&E Corp. ..................... 128,735 4,389,863(j)
PPL Corp. ...................... 17,130 924,849
19,871,782
TOTAL COMMON STOCK
(COST $590,694,312) ......... 651,972,867
- --------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 3.5%
- --------------------------------------------------------------------------------
Financial Select Sector
SPDR Fund ................... 168,053 4,771,025
Industrial Select Sector
SPDR Fund ................... 632,550 19,248,496
TOTAL EXCHANGE TRADED FUNDS
(COST $21,293,153) .......... 24,019,521
TOTAL INVESTMENTS IN SECURITIES
(COST $611,987,465) ......... 675,992,388
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
5
March 31, 2005 (unaudited)
GE U.S. EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
SHORT-TERM INVESTMENTS -- 3.5%
- ---------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.7%
GEI Short Term Investment Fund
2.70% ....................... 11,951,894 $ 11,951,894(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 1.7%
State Street Navigator Securities
Lending Prime Portfolio
2.78% ....................... 11,289,239 11,289,239(d,e)
PRINCIPAL
AMOUNT
- ---------------------------------------------------------------
TIME DEPOSITS -- 0.1%
State Street Corp.
2.75% 04/01/05 ........... $485,000 485,000(e)
TOTAL SHORT-TERM INVESTMENTS
(COST $23,726,133) .......... 23,726,133
TOTAL INVESTMENTS
(COST $635,713,598) ......... 699,718,521
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET -- (2.5)% ....... (16,828,598)
------------
NET ASSETS-- 100.0% ............ $682,889,923
============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE U.S. Equity Fund had the following long futures contracts open at
March 31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
- --------------------------------------------------------------------------------
S&P 500
Index Futures June 2005 8 $2,367,800 $16,883
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
6
GE Value Equity Fund
Q&A
PAUL REINHARDT IS A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT AND PORTFOLIO
MANAGER OF GE VALUE EQUITY FUND AND HAS SERVED IN THAT CAPACITY SINCE APRIL
2002. MR. REINHARDT JOINED GE ASSET MANAGEMENT IN 1982 AS AN EQUITY ANALYST AND
HAS BEEN A PORTFOLIO MANAGER SINCE 1987. PAUL HOLDS AN MBA FROM COLUMBIA
UNIVERSITY, A BA IN ECONOMICS FROM HARTWICK COLLEGE, AND IS A MEMBER OF THE NEW
YORK SOCIETY OF SECURITY ANALYSTS. HE IS ALSO A HOLDER OF A CHARTERED FINANCIAL
ANALYST DESIGNATION.
Q. HOW DID THE GE VALUE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Value Equity Fund
returned 7.31% for Class A shares, 6.82% for Class B shares, 6.88% for Class
C shares, and 7.30% for Class Y shares. By comparison, the S&P 500 Index,
the Fund's benchmark, returned 6.88% and the Fund's Lipper peer group of 936
Large-Cap Core Funds returned an average of 6.22% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. While stocks were up sharply in the first half of the period in a
post-election rally, they retreated in the first three months of 2005, as
investors began to worry about inflation. Investors began to gravitate
towards higher quality companies, in more defensive sectors. These types of
markets tend to favor a value investment style, and in this environment our
Fund outperformed its benchmark. In addition, the trend of small-caps
outperforming large caps during the strong up-markets of 2004 began to
reverse itself after the new-year, when large caps came into favor,
benefiting our investment style and contributing to our out-performance for
the period.
Q. WHAT INVESTMENT STRATEGIES AND TECHNIQUES EMPLOYED BY THE FUND IMPACTED
PERFORMANCE?
A. Our strategy continues to employ a bottom-up, relative value process, in
which we seek underappreciated stocks with catalysts for growth or improving
fundamentals. By emphasizing undervalued companies in relation to the
market, their peer group and their earnings potential, and overweighting
those with compelling catalysts, we were able to outperform the market
during the period.
Q. WHICH PARTICULAR STOCKS/SECTORS SIGNIFICANTLY CONTRIBUTED TO FUND
PERFORMANCE?
A. During the six months ended March 31, 2005, investments in the Healthcare,
Consumer Discretionary, and Energy sectors helped performance while
investments in Information Technology and Consumer Staples detracted from
performance. Although we remained modestly underweight in Healthcare, our
strong stock selection more than offset the relative positioning. In
particular, HCA, United Health Care, and Aetna benefited from improving
business conditions for services companies--higher hospital admissions and
lower bad debt expense. Pharmaceutical company Abbott Labs also contributed
positively. In addition, underweighting the healthcare equipment and
biotechnology sub-sectors helped performance. Strong stock selection
throughout the Consumer Discretionary sector benefited the portfolio, with
media companies Omnicom, Comcast, and Liberty Media driving performance
within the sector. Retailer Target also performed well, and our decision not
to own the
PICTURED TO THE LEFT:
PAUL C. REINHARDT
7
GE Value Equity Fund
Q&A
auto stocks due to deteriorating fundamentals and eBay due to slowing sales
and sky-high valuation also helped performance. We were overweight in Energy,
the best performing sector, due to geopolitical and supply concerns, as well
as attractive valuations. The best performing stocks in the sector all
benefited from strong prices in their underlying commodities with Encana,
Exxon Mobil and Burlington Resources leading the pack. In Information
Technology, services companies Unisys and First Data Corp. and semiconductor
company Analog Devices drove underperformance in the face of uncertain
demand. In addition, not investing in Apple Computer hurt performance as the
stock more than doubled during the period, in the midst of robust demand fro
the iPod. However, Apple's premium valuation did not fit our value investment
discipline. Finally, within Consumer Staples our underweight in tobacco
company Altria modestly detracted from performance. In the Utility sector,
performance was led by Constellation Energy and Dominion Resources, whose
non-regulated businesses are well positioned in a rising interest rate
environment.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK OVER THE SIX-MONTH PERIOD ENDED
MARCH 31, 2005?
A. The Fund outperformed its benchmark primarily due to strong stock selection
within the Healthcare, Consumer Discretionary and Energy sectors, which we
overweighted as well. Stock selection within Industrials, Financials, and
Telecommunications also contributed positively, as did an overweight position
in Utilities. Detracting from performance was stock selection within the
Information Technology, Consumer Staples, and Materials sectors, although
these negatives were not enough to offset the positives cited above.
Q. WHAT DOMESTIC/WORLD EVENTS HAD A MAJOR IMPACT ON THE FINANCIAL MARKETS IN
THE PAST SIX MONTHS AND HOW DID THIS IMPACT YOUR FUND?
A. After the U.S. presidential election, the S&P 500 Index returned more than
9% in the fourth calendar quarter of 2004. However, the optimism of the post
election rally gave way to more uncertainty in the markets after the new-year
--brought about largely by record-breaking high oil prices. In the first
three months of 2005, investors began to worry about inflation brought on by
the twin consumer headwinds of sustained high energy prices and rising
interest rates. The more cautious environment in the later half of the period
favored a value investment style, contribution to our outperformance versus
the benchmark.
Q. DID THE WEIGHTINGS OF THE FUND CHANGE? WHY?
A. Our weighting in Healthcare increased because we have found attractive
valuations among large-cap pharmaceutical stocks like Bristol-Myers, Merck
and Wyeth. Similarly, we also increased our relative weighting in Consumer
Staples. During the period, we lightened our exposure to Energy stocks at the
margin as valuations have become rich in the sector. In the Financials
sector, we reduced our position in American International Group Inc. in the
midst of intense regulatory scrutiny and sudden management changes.
8
GE Value Equity Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,072.99 6.18
Class B 1,000.00 1,068.09 10.09
Class C 1,000.00 1,068.73 10.09
Class Y 1,000.00 1,072.90 4.87
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,018.95 5.94
Class B 1,000.00 1,015.27 9.70
Class C 1,000.00 1,015.28 9.70
Class Y 1,000.00 1,020.20 4.68
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 1.18% FOR CLASS
A, 1.93% FOR CLASS B, 1.93% FOR CLASS C, AND 0.93% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 7.31% FOR CLASS A SHARES, 6.82% FOR CLASS B SHARES, 6.88% FOR CLASS
C SHARES, AND 7.30% FOR CLASS Y SHARES.
9
GE Value Equity Fund
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 4.33%
- --------------------------------------------------------------------------------
Pfizer Inc. 2.96%
- --------------------------------------------------------------------------------
Industrial Select Sector SPDR Fund 2.67%
- --------------------------------------------------------------------------------
Citigroup Inc. 2.49%
- --------------------------------------------------------------------------------
Abbott Laboratories 2.38%
- --------------------------------------------------------------------------------
Microsoft Corp. 2.32%
- --------------------------------------------------------------------------------
Bank of America Corp. 2.21%
- --------------------------------------------------------------------------------
PepsiCo, Inc. 2.15%
- --------------------------------------------------------------------------------
International Business
Machines Corp. 1.76%
- --------------------------------------------------------------------------------
Clorox Co. 1.72%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital and
future income by investing at least 80% of its net assets in equity securities
under normal market conditions. The Fund invests primarily in U.S. companies
that the portfolio manager believes are undervalued by the market but have
solid growth prospects.
LIPPER PERFORMANCE
COMPARISON
Large-Cap Core Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
--------- -------- -------- --------
Number of
Funds in
peer group: 936 908 596 229
- ------------------------------------------------------------------
Peer group
average annual
total return: 6.22% 4.04% -4.47% 8.87%
- ------------------------------------------------------------------
Lipper categories
in peer group: Large-Cap Core
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES++
[Line chart omitted -- plot points are as follows:]
GE Value Equity Fund GE Value Equity Fund w/load S&P 500 Index
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,425.00 10,000.00
9/95 11,451.33 10,792.88 11,825.64
9/96 13,763.44 12,972.04 14,230.26
9/97 19,240.63 18,134.30 19,991.28
9/98 20,368.64 19,197.45 21,813.07
9/99 25,937.56 24,446.15 27,878.53
9/00 28,881.62 27,220.92 31,570.66
9/01 24,274.11 22,878.35 23,154.40
9/02 20,088.57 18,933.48 18,410.07
9/03 24,004.05 22,623.81 22,909.48
9/04 26,936.92 25,388.05 26,087.96
3/05 28,906.73 27,244.59 27,883.69
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
---------- --------- ---------- ----------
GE Value Equity 7.31% 6.92% -0.29% 11.20%
GE Value Equity
W/LOAD 1.14% 0.77% -1.47% 10.54%
MAXIMUM LOAD
OF 5.75%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Value Equity Fund S&P 500 Index
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 11,424.75 11,825.64
9/96 13,610.12 14,230.26
9/97 18,895.78 19,991.28
9/98 19,900.75 21,813.07
9/99 25,208.01 27,878.53
9/00 27,839.95 31,570.66
9/01 23,234.39 23,154.40
9/02 19,079.11 18,410.07
9/03 22,734.34 22,909.48
9/04 25,512.08 26,087.96
3/05 27,377.69 27,883.69
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- -------- --------
GE Value Equity 6.82% 6.11% -1.07% 10.58%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Value Equity Fund S&P 500 Index
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 11,275.85 11,773.02
9/00 11,053.00 11,324.36
3/01 10,167.71 9,200.32
9/01 9,207.06 8,305.46
3/02 10,221.47 9,219.23
9/02 7,558.74 6,603.67
3/03 7,793.32 6,936.74
9/03 8,970.93 8,217.61
3/04 10,063.07 9,374.53
9/04 9,995.99 9,357.72
3/05 10,684.20 10,001.85
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- --------- -----------
GE Value Equity 6.88% 6.17% -1.07% 1.21%
S&P 500 Index 6.88% 6.69% -3.21% 0.00%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Value Equity Fund S&P 500 Index
- --------------------------------------------------------------------------------
1/05/98 10,000.00 10,000.00
3/98 11,240.00 11,396.13
9/98 10,380.00 10,609.12
3/99 12,999.59 13,508.76
9/99 13,270.42 13,559.15
3/00 15,036.65 15,963.22
9/00 14,804.80 15,354.87
3/01 13,688.44 12,474.86
9/01 12,481.33 11,261.50
3/02 13,921.82 12,500.50
9/02 10,355.75 8,954.02
3/03 10,717.39 9,405.63
9/03 12,390.12 11,142.38
3/04 13,984.89 12,711.07
9/04 13,912.55 12,688.28
3/05 14,928.65 13,561.66
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- -------- -----------
GE Value Equity 7.30% 6.75% -0.14% 5.69%
S&P 500 Index 6.88% 6.69% -3.21% 4.29%
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
10
March 31, 2005 (unaudited)
GE VALUE EQUITY FUND
Schedule of Investments
GE VALUE EQUITY FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $59,874
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Financials 19.0%
Industrials 13.1%
Healthcare 12.3%
Consumer Staples 11.2%
Information Technology 10.8%
Energy 9.3%
Consumer Discretionary 8.9%
Materials 6.2%
Utilities 4.8%
Telecommunication Services 2.4%
Short-Term Investments 2.0%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 94.7%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 8.9%
Cablevision Systems Corp.
(Class A) ................... 1,820 $ 51,051(a)
Comcast Corp. (Class A) ........ 1,585 53,541(a)
Comcast Corp.
(Class A) (Special) ......... 15,626 521,908(a)
Family Dollar Stores, Inc. ..... 7,698 233,711
Liberty Media Corp. (Series A) . 44,445 460,895(a)
Liberty Media International Inc.
(Series A) .................. 2,472 108,125(a)
Lowe's Companies, Inc. ......... 11,851 676,574
News Corp. (Class A) ........... 21,280 360,058
Omnicom Group .................. 7,245 641,327
Ross Stores, Inc. .............. 4,980 145,117
Target Corp. ................... 14,217 711,134(h)
Time Warner Inc. ............... 43,465 762,811(a)
Tribune Co. .................... 6,339 252,736
Viacom Inc. (Class B) .......... 10,232 356,381
5,335,369
CONSUMER STAPLES -- 11.3%
Altria Group, Inc. ............. 1,429 93,442
Anheuser-Busch Companies, Inc. . 10,866 514,940
Avon Products, Inc. ............ 2,962 127,188
Clorox Co. ..................... 16,344 1,029,509
Colgate-Palmolive Co. .......... 2,988 155,884
Kellogg Co. .................... 10,594 458,402
Kimberly-Clark Corp. ........... 15,032 988,053
Pepsi Bottling Group, Inc. ..... 2,204 61,381
PepsiCo, Inc. .................. 24,226 1,284,705(h)
NUMBER
OF SHARES VALUE
Procter & Gamble Co. ........... 13,583 $ 719,899
Sara Lee Corp. ................. 26,713 591,960
The Coca-Cola Co. .............. 6,338 264,105
Wal-Mart Stores, Inc. .......... 9,055 453,746(h)
6,743,214
ENERGY -- 9.3%
Burlington Resources Inc. ...... 13,854 693,670
ConocoPhillips Co. ............. 5,621 606,169
EnCana Corp. ................... 7,931 558,501
Exxon Mobil Corp. .............. 43,465 2,590,514
Nabors Industries Ltd. ......... 2,659 157,253(a)
Occidental Petroleum Corp. ..... 6,100 434,137
Schlumberger Ltd. .............. 7,425 523,314
5,563,558
FINANCIALS -- 18.3%
Allstate Corp. ................. 15,685 847,931
American International
Group, Inc. ................. 11,319 627,186(h)
Bank of America Corp. .......... 29,978 1,322,030
Blackrock Inc. (Class A) ....... 4,705 352,546
Chubb Corp. .................... 5,252 416,326
CIT Group Inc. ................. 1,395 53,010
Citigroup Inc. ................. 33,115 1,488,188
Federal Home Loan
Mortgage Corp. .............. 5,228 330,410
Federal National
Mortgage Assoc. ............. 10,142 552,232
JPMorgan Chase & Co. ........... 11,591 401,049
Marsh & McLennan
Companies, Inc. ............. 116 3,529
MBNA Corp. ..................... 15,394 377,923
Mellon Financial Corp. ......... 14,669 418,653
Merrill Lynch & Co., Inc. ...... 5,071 287,019
Morgan Stanley ................. 15,394 881,306
Principal Financial Group ...... 9,312 358,419
Prudential Financial, Inc. ..... 6,536 375,166
Rayonier Inc. (REIT) ........... 2,353 116,544
SLM Corp. ...................... 2,789 139,004
State Street Corp. ............. 11,545 504,747(e)
The Hartford Financial
Services Group, Inc. ........ 1,539 105,514
US Bancorp ..................... 9,960 287,047
Wachovia Corp. ................. 1,766 89,907
Waddell & Reed Financial Inc.
(Class A) ................... 6,022 118,874
Wells Fargo & Co. .............. 8,715 521,157
10,975,717
HEALTHCARE -- 12.3%
Abbott Laboratories ............ 30,605 1,426,805(h)
Aetna Inc. ..................... 3,622 271,469
Bristol-Myers Squibb Co. ....... 10,867 276,674
GlaxoSmithKline PLC ADR ........ 13,387 614,731
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
11
March 31, 2005 (unaudited)
GE VALUE EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
HCA Inc. ....................... 9,149 $ 490,112
Johnson & Johnson .............. 11,765 790,137
Medco Health Solutions, Inc. ... 2,963 146,876(a)
Merck & Co., Inc. .............. 11,592 375,233
Pfizer Inc. .................... 67,450 1,771,911
UnitedHealth Group
Incorporated ................ 6,838 652,208
Wyeth .......................... 13,130 553,823
7,369,979
INDUSTRIALS -- 10.4%
Avery Dennison Corp. ........... 707 43,784
Burlington Northern
Santa Fe Corp. .............. 11,228 605,526
Caterpillar Inc. ............... 734 67,117
Deere & Co. .................... 10,631 713,659
Eaton Corp. .................... 4,800 313,920
Emerson Electric Co. ........... 3,128 203,101
General Dynamics Corp. ......... 3,964 424,346
Honeywell International Inc. ... 9,499 353,458
ITT Industries, Inc. ........... 2,807 253,304
Northrop Grumman Corp. ......... 15,468 834,963
Pitney Bowes Inc. .............. 1,326 59,829
Rockwell Collins, Inc. ......... 3,921 186,600
3M Co. ......................... 3,617 309,941
Tyco International Ltd. ........ 27,166 918,211
Union Pacific Corp. ............ 4,184 291,625
United Technologies Corp. ...... 6,339 644,423
6,223,807
INFORMATION TECHNOLOGY -- 10.8%
Analog Devices, Inc. ........... 16,571 598,876
Applied Materials, Inc. ........ 18,110 294,287(a)
Cisco Systems, Inc. ............ 20,329 363,686(a)
EMC Corp. ...................... 16,209 199,695(a)
First Data Corp. ............... 14,127 555,332
Hewlett-Packard Co. ............ 10,893 238,992
Intel Corp. .................... 27,166 631,066
International Business
Machines Corp. .............. 11,504 1,051,236
Microsoft Corp. ................ 57,515 1,390,138
Motorola, Inc. ................. 5,832 87,305
Novell, Inc. ................... 10,043 59,856(a,j)
Oracle Corp. ................... 57,954 723,266(a)
Siebel Systems, Inc. ........... 10,979 100,238(a)
Sun Microsystems, Inc. ......... 10,520 42,501(a)
Texas Instruments
Incorporated ................ 1,383 35,253
Unisys Corp. ................... 16,299 115,071(a)
6,486,798
NUMBER
OF SHARES VALUE
MATERIALS -- 6.2%
Alcan Inc. ..................... 5,665 $ 214,817
Alcoa Inc. ..................... 9,055 275,182
Barrick Gold Corp. ............. 11,591 277,720
Dow Chemical Co. ............... 4,897 244,116
Freeport-McMoRan Copper &
Gold Inc. (Class B) ......... 8,278 327,892
International Paper Co. ........ 6,339 233,212
MeadWestvaco Corp. ............. 2,297 73,091
Monsanto Co. ................... 3,921 252,904
Newmont Mining Corp. ........... 7,668 323,973
Praxair, Inc. .................. 11,772 563,408
Rohm & Haas Co. ................ 7,244 347,712
Weyerhaeuser Co. ............... 8,278 567,043
3,701,070
TELECOMMUNICATION SERVICES -- 2.4%
Sprint Corp. ................... 16,299 370,802
Verizon Communications Inc. .... 16,299 578,614(h)
Vodafone Group PLC ADR ......... 18,214 483,764
1,433,180
UTILITIES -- 4.8%
American Electric Power
Company, Inc. ............... 11,772 400,954
Constellation Energy Group,
Inc. ........................ 8,513 440,122
Dominion Resources, Inc. ....... 12,636 940,498
Entergy Corp. .................. 8,149 575,808
PG&E Corp. ..................... 15,122 515,660
2,873,042
TOTAL COMMON STOCK
(COST $49,306,705) .......... 56,705,734
- ----------------------------------------------------------
EXCHANGE TRADED FUNDS -- 3.3%
- ----------------------------------------------------------
Financial Select Sector
SPDR Fund ................... 14,058 399,107
Industrial Select Sector
SPDR Fund ................... 52,621 1,601,257
TOTAL EXCHANGE TRADED FUNDS
(COST $1,769,195) ........... 2,000,364
TOTAL INVESTMENTS IN SECURITIES
(COST $51,075,900) .......... 58,706,098
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
12
March 31, 2005 (unaudited)
GE VALUE EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
SHORT-TERM INVESTMENTS -- 2.0%
- ---------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.9%
GEI Short Term Investment Fund
2.70% ....................... 1,131,989 $ 1,131,989(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 0.1%
State Street Navigator Securities
Lending Prime Portfolio
2.78% ....................... 35,808 35,808(d,e)
TOTAL SHORT-TERM INVESTMENTS
(COST $1,167,797) ........... 1,167,797
TOTAL INVESTMENTS
(COST $52,243,697) .......... 59,873,895
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (0.0%)* .............. (8,063)
-----------
NET ASSETS-- 100.0% ............ $59,865,832
===========
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Value Equity Fund had the following long futures contracts open at March
31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
S&P 500
Index Futures June 2005 1 $295,975 $(1,325)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
13
GE Small-Cap Value Equity Fund
PALISADE CAPITAL MANAGEMENT, LLC ("PALISADE") HAS A HISTORY OF MANAGING
SMALL-CAP EQUITY PORTFOLIOS AND FOR SEVERAL YEARS HAS PROVIDED PENSION FUND
SERVICES TO GE. PALISADE TRANSLATES ITS EXPERIENCE FROM VARIOUS INSTITUTIONAL
AND PRIVATE ACCOUNTS TO MUTUAL FUND PORTLOLIOS IT SUB-ADVISES FOR GE ASSET
MANAGEMENT. PALISADE HAS MANAGED THE GE SMALL-CAP VALUE EQUITY FUND SINCE ITS
INCEPTION.
THE FUND IS MANAGED BY AN INVESTMENT ADVISORY COMMITTEE (SENIOR INVESTMENT
COMMITTEE) COMPOSED OF THE FOLLOWING MEMBERS: JACK FEILER, MARTIN L. BERMAN,
STEVEN E. BERMAN, DENNISON VERU AND RICHARD WHITMAN. MR. FEILER, CHIEF
INVESTMENT OFFICER AT PALISADE, HAS DAY-TO-DAY RESPONSIBILITY FOR MANAGING THE
FUND AND WORKS WITH THE SENIOR INVESTMENT COMMITTEE IN DEVELOPING AND EXECUTING
THE FUND'S INVESTMENT PROGRAM. MR. FEILER HAS MORE THAN 33 YEARS OF INVESTMENT
EXPERIENCE AND HAS SERVED AS THE PRINCIPAL SMALL-CAP PORTFOLIO MANAGER AT
PALISADE SINCE THE COMMENCEMENT OF PALISADE'S OPERATIONS IN APRIL 1995. PRIOR TO
JOINING PALISADE, MR. FEILER WAS A SENIOR VICE PRESIDENT -- INVESTMENTS AT SMITH
BARNEY FROM 1990 TO 1995.
Q. HOW DID THE GE SMALL-CAP VALUE FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Small-Cap Value Fund
returned 10.94% for Class A shares, 10.64% for Class B shares, 10.59% for
Class C shares, and 11.13% for Class Y shares. The Fund's benchmark, the
Russell 2000 Index, returned 7.99% for the same period and its Lipper peer
group of 605 Small-Cap Core Funds returned an average of 9.39%.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. Inflation fears and interest-rate worries were on the rise and sent stocks
sharply lower. We saw low-to-moderate inflation levels and more moderate
growth in corporate profits and earnings. Estimates of profit gains in the
broad market had slowed significantly over last year's torrid pace. We
anticipated this and timely positioned the Fund for consistent earnings
growth. We believe valuation was the primary contributor to strong, relative
performance in the small-cap market.
Q. WHAT INVESTMENT STRATEGIES AND TECHNIQUES EMPLOYED BY THE FUND IMPACTED
PERFORMANCE?
A. Strong stock selection combined with disciplined buying and selling is
imperative to Fund performance. We sought high-quality companies that could
finance internal growth to grow earnings. The valuation metrics on which we
focused included predictable earnings, recurring revenues, high return on
equity, high return on invested capital, and the generation of free cash
flow.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK OVER THE LAST SIX MONTHS?
A. The Fund outperformed its benchmark primarily due to strong stock selection.
For the six-month period ended March 31, 2005, holdings in the Information
Technology, Healthcare, and Industrials sectors provided strong results and
were the primary contributors to return. We are reassured that the market
has again rewarded companies with strong financial standing and attractive
risk-reward profiles.
Q. DID THE WEIGHTINGS OF THE FUND CHANGE? WHY?
A. The most significant changes in sector allocation include reductions in the
Consumer Discretionary sector and increases in the Healthcare, Energy, and
Industrials sectors. Investors' fears of inflation and diminished consumer
resilience increased selling pressure on the Consumer Discretionary sector.
We believed performance would found in very select stocks within this sector
and realigned the Fund's holdings accordingly. Our selection screens had
indicated attractive profiles of many companies within the Healthcare,
Industrials, and Energy sectors.
14
Q&A
Q. WHICH STOCKS/SECTORS HAVE YOU LIKED? WHICH STOCKS/SECTORS HAVE PERFORMED
WELL? WHICH HAVE NOT PERFORMED WELL?
A. The Energy sector provided the strongest sector return for the Index. The
Fund's allocation to Energy increased due to
increasing existing positions and market appreciation. We have found many
compelling and reasonably valued stocks in the Healthcare and Industrials
sectors. We redistributed the Fund's Information Technology holdings to
include more software and productivity-enhancement stocks, as we believe
these investments offer better value in the Information Technology sector.
Among the top contributors to return over the last six months were: American
Eagle Outfitters (+184 basis points (bps)), Centene Corp (+183 bps), DRS
Technologies (+134 bps), Massey Energy (+127 bps), and Noven Pharmaceuticals
(+122 bps). The common theme remains: catalyst for profitability, cash flow
and cash earnings. Among the detractors were Amkor Technology (-58 bps),
Intevac (-48bps), Zoran (-46 bps), Santarus (-46 bps) and Fleetwood
Enterprises (-44bps). The Fund's holdings in Amkor, Intevac, Zoran, and
Fleetwood were sold and the assets redeployed among stocks with stronger,
near-term catalysts.
Q. WHICH INVESTMENTS STAND OUT?
A. Holdings in the Energy, Industrials, and Healthcare sectors have provided
the strongest near-term returns. Comprehensive analysis and stock selection
continued to make the difference in stock performance.
15
GE Small-Cap Value Equity Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,108.51 6.42
Class B 1,000.00 1,105.55 10.43
Class C 1,000.00 1,104.96 10.43
Class Y 1,000.00 1,110.51 5.09
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,018.80 6.01
Class B 1,000.00 1,015.13 9.76
Class C 1,000.00 1,015.13 9.76
Class Y 1,000.00 1,020.02 4.76
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 1.19% FOR CLASS
A, 1.94% FOR CLASS B, 1.94% FOR CLASS C, AND 0.95% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 10.94% FOR CLASS A SHARES, 10.64% FOR CLASS B SHARES, 10.59% FOR
CLASS C SHARES, AND 11.13% FOR CLASS Y SHARES.
16
GE Small-Cap Value Equity Fund
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
DRS Technologies, Inc. 2.67%
- --------------------------------------------------------------------------------
The Cooper Companies, Inc. 2.54%
- --------------------------------------------------------------------------------
Centene Corp. 2.44%
- --------------------------------------------------------------------------------
Standard-Pacific Corp. 2.05%
- --------------------------------------------------------------------------------
KV Pharmaceutical Co. (Class A) 1.98%
- --------------------------------------------------------------------------------
Genesee & Wyoming Inc. (Class A) 1.96%
- --------------------------------------------------------------------------------
Micros Systems, Inc. 1.83%
- --------------------------------------------------------------------------------
Manitowoc Co. 1.81%
- --------------------------------------------------------------------------------
Oshkosh Truck Corp. 1.69%
- --------------------------------------------------------------------------------
Websense, Inc. 1.65%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets in equity securities of small-cap
companies under normal market conditions. The Fund invests primarily in
small-cap companies that the portfolio managers believe are undervalued by the
market but have solid growth prospects.
LIPPER PERFORMANCE COMPARISON
Small Cap Core Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE
MONTHS YEAR YEAR
-------- ------- -------
Number of Funds in
peer group: 605 572 323
- --------------------------------------------------------------------------------
Peer group average
annual total return: 9.39% 7.89% 7.25%
- --------------------------------------------------------------------------------
Lipper categories
in peer group: Small Cap Core
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE Small-Cap Value GE Small-Cap Value
Equity Fund Equity Fund w/load Russell 2000 Index
- ---------------------------------------------------------------------------------------------------------------------------
9/30/98 10,000.00 9,425.00 10,000.00
3/99 10,437.88 9,837.70 10,994.64
9/99 12,227.80 11,524.71 11,898.08
3/00 15,936.76 15,020.40 15,090.96
9/00 15,626.53 14,728.01 14,699.33
3/01 15,813.30 14,904.04 12,797.04
9/01 16,361.05 15,420.29 11,591.04
3/02 19,269.55 18,161.55 14,603.73
9/02 15,882.86 14,969.60 10,524.54
3/03 14,624.95 13,784.02 10,673.24
9/03 17,514.00 16,506.94 14,371.94
3/04 21,218.62 19,998.55 17,486.04
9/04 20,555.10 19,373.19 17,069.56
3/05 22,803.41 21,492.21 18,432.59
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- ------- -----------
GE Small-Cap
Value Equity 10.94% 7.47% 7.43% 13.52%
GE Small-Cap
Value Equity
W/LOAD 4.56% 1.29% 6.16% 12.48%
MAXIMUM LOAD
OF 5.75%
Russell 2000 7.99% 5.41% 4.08% 9.87%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Small-Cap Value
Equity Fund Russell 2000 Index
- --------------------------------------------------------------------------------
9/30/98 10,000.00 10,000.00
3/99 10,400.07 10,994.64
9/99 12,136.76 11,898.08
3/00 15,752.90 15,090.96
9/00 15,385.48 14,699.33
3/01 15,525.14 12,797.04
9/01 15,989.46 11,591.04
3/02 18,774.82 14,603.73
9/02 15,417.74 10,524.54
3/03 14,146.74 10,673.24
9/03 16,882.15 14,371.94
3/04 20,363.57 17,486.04
9/04 19,667.46 17,069.56
3/05 21,818.68 18,432.59
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- ------- -----------
GE Small-Cap
Value Equity 10.64% 6.74% 6.65% 12.73%
Russell 2000
Index 7.99% 5.41% 4.08% 9.87%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Small-Cap Value
Equity Fund Russell 2000 Index
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 12,979.49 12,683.52
9/00 12,676.77 12,354.36
3/01 12,791.83 10,755.54
9/01 13,174.41 9,741.94
3/02 15,468.70 12,274.02
9/02 12,708.06 8,845.58
3/03 11,647.15 8,970.55
9/03 13,905.86 12,079.21
3/04 16,780.57 14,696.52
9/04 16,187.38 14,346.48
3/05 17,901.84 15,492.07
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- ------- -----------
GE Small-Cap
Value Equity 10.59% 6.68% 6.64% 11.17%
Russell 2000
Index 7.99% 5.41% 4.08% 8.28%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Small-Cap Value
Equity Fund Russell 2000 Index
- --------------------------------------------------------------------------------
9/30/98 10,000.00 10,000.00
3/99 10,442.17 10,994.64
9/99 12,252.95 11,898.08
3/00 15,984.18 15,090.96
9/00 15,696.90 14,699.33
3/01 15,918.92 12,797.04
9/01 16,478.53 11,591.04
3/02 19,437.13 14,603.73
9/02 16,045.32 10,524.54
3/03 14,785.51 10,673.24
9/03 17,734.30 14,371.94
3/04 21,513.74 17,486.04
9/04 20,863.07 17,069.56
3/05 23,186.16 18,432.59
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- ------- -----------
GE Small-Cap
Value Equity 11.13% 7.77% 7.72% 13.81%
Russell 2000
Index 7.99% 5.41% 4.08% 9.87%
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
17
March 31, 2005 (unaudited)
GE SMALL-CAP VALUE EQUITY FUND
Schedule of Investments
GE SMALL-CAP VALUE EQUITY FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $107,198
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Financial Services 16.8%
Technology 14.2%
Consumer Discretionary 12.8%
Short-Term Investments 12.8%
Healthcare 12.4%
Producer Durables 9.5%
Materials & Processing 5.8%
Real Estate Investment Trust 4.8%
Energy 4.6%
Autos & Transportation 4.0%
Consumer Staples 1.8%
Utilities 0.5%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 99.4%
- --------------------------------------------------------------------------------
AUTOS & TRANSPORTATION -- 4.6%
Genesee & Wyoming Inc.
(Class A) ................... 81,187 $ 2,103,555(a)
Oshkosh Truck Corp. ............ 22,100 1,811,979
RailAmerica, Inc. .............. 29,200 364,416(a)
4,279,950
CONSUMER DISCRETIONARY -- 14.6%
ADESA, Inc. .................... 69,800 1,630,528
American Eagle Outfitters ...... 51,400 1,518,870
Arbitron, Inc. ................. 17,000 729,300
Brinker International, Inc. .... 15,300 554,166(a)
Dave & Buster's, Inc. .......... 10,200 190,740(a,j)
Finish Line (Class A) .......... 23,100 534,765
infoUSA Inc. ................... 78,300 822,933
Linens 'n Things, Inc. ......... 36,600 908,778(a)
Marvel Enterprises, Inc. ....... 38,100 762,000(a)
RARE Hospitality
International, Inc. ......... 16,700 515,696(a)
School Specialty Inc. .......... 13,300 520,828(a)
The Talbots, Inc. .............. 30,000 959,400
TeleTech Holdings Inc. ......... 101,700 1,313,964(a,j)
Timberland Co. (Class A) ....... 20,100 1,425,693(a)
Triarc Companies, Inc.
(Class B) ................... 52,700 728,841(j)
The Warnaco Group, Inc. ........ 25,400 610,616(a)
13,727,118
NUMBER
OF SHARES VALUE
CONSUMER STAPLES -- 2.1%
Gold Kist Inc. ................. 30,200 $ 480,180(a)
Smithfield Foods, Inc. ......... 47,200 1,489,160(a)
1,969,340
ENERGY -- 5.3%
Chesapeake Energy Corp. ........ 59,800 1,312,012
Hydril Company LP .............. 16,200 946,242(a,j)
Oil States International, Inc. . 67,900 1,395,345(a)
St. Mary Land &
Exploration Co. ............. 25,500 1,276,275(j)
4,929,874
FINANCIAL SERVICES -- 19.2%
The BISYS Group, Inc. .......... 49,200 771,456(a)
Cullen/Frost Bankers, Inc. ..... 25,500 1,151,325
Digital Insight Corp. .......... 43,700 716,680(a)
HCC Insurance Holdings, Inc. ... 37,800 1,366,848
Hilb Rogal & Hobbs Co. ......... 37,200 1,331,760(j)
Interactive Data Corp. ......... 64,800 1,344,600(a)
MoneyGram International, Inc. .. 83,100 1,569,759
NCO Group, Inc. ................ 22,600 441,830(a)
Platinum Underwriters
Holdings Ltd. ............... 40,400 1,199,880
Raymond James Financial, Inc. .. 43,050 1,304,415
Sandy Spring Bancorp, Inc. ..... 22,800 736,896(j)
Sky Financial Group, Inc. ...... 55,900 1,499,238(j)
Sterling Bancorp ............... 30,960 751,399
W Holding Company, Inc. ........ 109,195 1,099,594(j)
Webster Financial Corp. ........ 34,100 1,548,481
Westamerica Bancorp ............ 23,700 1,226,949
18,061,110
HEALTHCARE -- 14.1%
Centene Corp. .................. 87,300 2,618,127(a)
Computer Programs and
Systems, Inc. ............... 46,300 1,300,104
Immunicon Corp. ................ 59,900 352,811(a,j)
KV Pharmaceutical Co.
(Class A) ................... 91,600 2,125,120(a,j)
LifePoint Hospitals, Inc. ...... 18,300 802,272(a)
Medical Action Industries Inc. . 37,800 714,420(a)
Noven Pharmaceuticals Inc. ..... 86,300 1,463,648(a)
Santarus, Inc. ................. 58,200 282,852(a,j)
The Cooper Companies, Inc. ..... 37,400 2,726,460
Thoratec Corp. ................. 73,500 898,170(a,j)
13,283,984
MATERIALS & PROCESSING -- 6.6%
Comfort Systems USA, Inc. ...... 52,200 404,550(a)
Commercial Metals co. .......... 47,700 1,616,553
Harsco Corp. ................... 26,100 1,555,821
Mueller Industries, Inc. ....... 34,700 976,805
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
18
March 31, 2005 (unaudited)
GE SMALL-CAP VALUE EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
Packaging Corp. of America ..... 46,400 $ 1,127,056
Quanta Services, Inc. .......... 71,000 541,730(a)
6,222,515
PRODUCER DURABLES -- 10.8%
Itron, Inc. .................... 48,000 1,422,720(a,j)
Manitowoc Co. .................. 48,100 1,942,759
Mine Safety Appliances Co. ..... 11,800 457,132
Photon Dynamics, Inc. .......... 39,100 745,246(a,j)
Rudolph Technologies, Inc. ..... 49,200 740,952(a,j)
Semitool, Inc. ................. 21,300 217,260(a)
Standard-Pacific Corp. ......... 30,500 2,201,795
Teledyne Technologies Inc. ..... 40,300 1,261,390(a)
Woodward Governor Co. .......... 16,800 1,204,560
10,193,814
REAL ESTATE INVESTMENT TRUST -- 5.4%
BioMed Realty Trust Inc. ....... 61,100 1,258,660
Federal Realty
Investment Trust ............ 32,400 1,566,540
Omega Healthcare
Investors Inc. .............. 97,000 1,065,060
Sizeler Property Investors ..... 60,400 716,344
The Mills Corp. ................ 9,300 491,970
5,098,574
TECHNOLOGY -- 16.2%
CSG Systems International ...... 43,500 708,615(a)
DRS Technologies, Inc. ......... 67,400 2,864,500(a)
EDO Corp. ...................... 19,600 588,980
Intergraph Corp. ............... 50,200 1,446,262(a,j)
Intermagnetics General Corp. ... 55,950 1,361,823(a)
Manhattan Associates, Inc. ..... 33,100 674,247(a,j)
Micros Systems, Inc. ........... 53,400 1,960,314(a)
Mobility Electronics, Inc. ..... 100,700 703,893(a,j)
Parametric Technology Corp. .... 284,800 1,592,032(a)
Varian, Inc. ................... 41,000 1,553,490(a)
Websense, Inc. ................. 32,900 1,770,020(a)
15,224,176
UTILITIES -- 0.5%
IDACORP, Inc. .................. 17,000 482,290
TOTAL COMMON STOCK
(COST $76,933,962) .......... 93,472,745
NUMBER
OF SHARES VALUE
SHORT-TERM INVESTMENTS -- 14.6%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.9%
GEI Short Term Investment Fund
2.70% ....................... 814,858 $ 814,858(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 13.7%
State Street Navigator Securities
Lending Prime Portfolio
2.78% ....................... 12,909,915 12,909,915(d,e)
TOTAL SHORT-TERM INVESTMENTS
(COST $13,724,773) .......... 13,724,773
TOTAL INVESTMENTS
(COST $90,658,735) .......... 107,197,518
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (14.0)% .............. (13,161,515)
-----------
NET ASSETS-- 100.0% ............ $94,036,003
===========
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Small-Cap Value Equity Fund had the following written option contracts
open at March 31, 2005:
EXPIRATION DATE/ NUMBER OF
CALL OPTIONS STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
Cooper Companies Inc.
(Written Option
Premium $37,073) May 2005/85.00 127 $(1,905)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
19
GE Global Equity Fund
DAIZO MOTOYOSHI IS A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT AND PORTFOLIO
MANAGER FOR THE GE GLOBAL EQUITY FUND AND HAS SERVED IN THIS CAPACITY SINCE
SEPTEMBER 2003. MR. MOTOYOSHI JOINED GE ASSET MANAGEMENT IN 1994 AS AN
INTERNATIONAL EQUITY ANALYST AND PORTFOLIO MANAGER AND BECAME A GLOBAL EQUITY
PORTFOLIO MANAGER IN 2002. PRIOR TO JOINING GEAM, DAIZO HELD POSITIONS AT
ALLIANCE CAPITAL MANAGEMENT AND ERNST & YOUNG. HE HOLDS A BA IN ECONOMICS AND
ACCOUNTING FROM CLAREMONT MCKENNA COLLEGE, A MBA FROM COLUMBIA UNIVERSITY, AND A
MASTERS OF BUSINESS TAXATION FROM THE UNIVERSITY OF SOUTHERN CALIFORNIA. DAIZO
IS A CERTIFIED PUBLIC ACCOUNTANT AND A HOLDER OF THE CHARTERED FINANCIAL ANALYST
DESIGNATION.
Q. HOW DID THE GE GLOBAL EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Global Equity Fund
returned 9.30% for Class A shares, 8.89% for Class B shares, 8.89% for Class
C shares, and 9.40% for Class Y shares. The MSCI World benchmark rose 10.71%
and the Lipper peer group of 65 Global Large-Cap Core Funds returned an
average of 9.92% for the same period.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK FOR THE SIX-MONTH PERIOD ENDED
MARCH 31, 2005?
A. The portfolio was negatively impacted by stock selection in the United
States and Canada. There was also a negative contribution on a sector basis
from stock selection in Energy and Consumer Staples. However, the positive
contributions from stock selection in Materials and Telecommunication
Services offset a portion of the above-mentioned negative impacts to the
portfolio.
Q. WHICH STOCKS HAVE PERFORMED WELL? WHICH HAVE NOT PERFORMED WELL?
A. A few of the top performing stocks held in the fund include BHP Billiton,
CVRD, and Bank Intesa.BHP Billiton is a diversified resources company that
has benefited from increased demand from China for raw materials like iron
ore. CVRD is also a mining company with an industry leading position in
iron ore assets. Bank Intesa is a leading Italian bank that has benefited
from an improving consumer environment.
A few stocks that have not performed well over the past six months were in
the United States and Canada. Examples of these stocks were Nortel, First
Data, and Pfizer. Nortel has struggled to bring the accounting issues and
financial restatements to closure. First Data stock performance has
struggled over the past six months as the company continues to integrate the
Concord acquisition. Pfizer has also had poor stock price performance over
the six-month period as the market is concerned about generic drug
competition and the concern over certain drugs being removed from the market
over safety concerns.
20
Q&A
Q. WHAT WERE SOME OF THE MAJOR BUYS AND SELLS DURING THE PERIOD?
A. Reed Elsevier, a UK publishing company, was a new stock added to the
portfolio during the period. Reed is a global leader with a high reputation
involved in the publishing of medical, legal, education and science papers,
journals and textbooks. They have both printed and web based products that
allow their publications to be shared worldwide. American Express, a US
financial services company, was a stock that was eliminated from the
portfolio during the past six months as we feel it reached a fair valuation
based on its future growth prospects.
21
GE Global Equity Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,092.94 7.82
Class B 1,000.00 1,088.90 11.80
Class C 1,000.00 1,088.86 11.79
Class Y 1,000.00 1,093.92 6.49
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,017.46 7.38
Class B 1,000.00 1,013.78 11.13
Class C 1,000.00 1,013.78 11.13
Class Y 1,000.00 1,018.69 6.12
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 1.47% FOR CLASS
A, 2.22% FOR CLASS B, 2.22% FOR CLASS C, AND 1.22% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 9.30% FOR CLASS A SHARES, 8.89% FOR CLASS B SHARES, 8.89% FOR CLASS
C SHARES, AND 9.40% FOR CLASS Y SHARES.
22
GE Global Equity Fund
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
Citigroup Inc. 2.12%
- --------------------------------------------------------------------------------
Vodafone Group PLC. 2.05%
- --------------------------------------------------------------------------------
BHP Billiton PLC. 1.99%
- --------------------------------------------------------------------------------
Microsoft Corp. 1.89%
- --------------------------------------------------------------------------------
Schlumberger Ltd. 1.85%
- --------------------------------------------------------------------------------
Pfizer Inc. 1.76%
- --------------------------------------------------------------------------------
Johnson & Johnson 1.62%
- --------------------------------------------------------------------------------
Smith & Nephew PLC. 1.57%
- --------------------------------------------------------------------------------
United Technologies Corp. 1.56%
- --------------------------------------------------------------------------------
PepsiCo, Inc. 1.54%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets in equity securities under normal
market conditions. The Fund invests in companies in developed and developing
countries, including the United States.
LIPPER PERFORMANCE
COMPARISON
Global Large-Cap Core Funds
Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------- ---- ---- ----
Number of
Funds in
peer group: 65 64 40 15
- --------------------------------------------------------------------------------
Peer group
average annual
total return: 9.92% 6.87% -4.74% 7.65%
- --------------------------------------------------------------------------------
Lipper categories
in peer group: Global Large-Cap Core Funds
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE Global Equity Fund GE Global Equity Fund w/load MSCI World Index
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,425.00 10,000.00
9/95 11,080.20 10,443.09 11,009.26
9/96 12,347.31 11,637.34 12,514.34
9/97 14,670.49 13,826.93 15,531.70
9/98 13,077.78 12,325.81 15,552.81
9/99 17,902.83 16,873.42 20,136.80
9/00 20,489.54 19,311.39 21,779.96
9/01 15,021.40 14,157.67 15,637.13
9/02 12,183.48 11,482.93 12,637.69
9/03 14,688.25 13,843.68 15,847.17
9/04 16,601.75 15,647.15 18,556.44
3/05 18,145.84 17,102.45 20,543.65
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ------ --------- --------
GE Global Equity 9.30% 6.71% -4.28% 6.14%
GE Global Equity
W/LOAD 3.02% 0.58% -5.40% 5.51%
MAXIMUM LOAD
OF 5.75%
MSCI World Index 10.71% 10.56% -2.88% 7.47%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Global Equity Fund MSCI World Index
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 11,041.66 11,009.26
9/96 12,212.91 12,514.34
9/97 14,401.14 15,531.70
9/98 12,753.52 15,552.81
9/99 17,326.06 20,136.80
9/00 19,676.23 21,779.96
9/01 14,384.35 15,637.13
9/02 11,666.79 12,637.69
9/03 14,065.33 15,847.17
9/04 15,897.68 18,556.44
3/05 17,376.28 20,543.65
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- --------- -------
GE Global Equity 8.89% 5.86% -4.98% 5.68%
MSCI World Index 10.71% 10.56% -2.88% 7.47%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Global Equity Fund MSCI World Index
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 12,562.24 11,806.73
9/00 11,356.44 10,816.00
3/01 9,606.41 8,842.64
9/01 8,259.17 7,765.45
3/02 9,021.63 8,461.30
9/02 6,648.92 6,275.92
3/03 6,718.23 6,413.90
9/03 8,019.22 7,869.76
3/04 9,256.23 9,227.84
9/04 9,000.30 9,215.19
3/05 9,800.09 10,202.04
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- -------- -----------
GE Global Equity 8.89% 5.88% -4.84% -0.37%
MSCI World Index 10.71% 10.56% -2.88% 0.36%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Global Equity Fund MSCI World Index
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 11,094.77 11,009.26
9/96 12,394.21 12,514.34
9/97 14,766.34 15,531.70
9/98 13,202.09 15,552.81
9/99 18,112.71 20,136.80
9/00 20,783.95 21,779.96
9/01 15,275.64 15,637.13
9/02 12,426.75 12,637.69
9/03 15,020.15 15,847.17
9/04 17,019.09 18,556.44
3/05 18,619.22 20,543.65
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- --------- --------
GE Global Equity 9.40% 6.94% -4.03% 6.41%
MSCI World Index 10.71% 10.56% -2.88% 7.47%
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
23
March 31, 2005 (unaudited)
GE GLOBAL EQUITY FUND
Schedule of Investments
GE GLOBAL EQUITY FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $58,397
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
United States 50.7%
Continental Europe 19.5%
United Kingdom 14.7%
Japan 6.9%
Canada 2.9%
Latin America 2.3%
Emerging Asia 2.2%
Pacific Rim 0.5%
Emerging Europe 0.3%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 98.9%
- --------------------------------------------------------------------------------
BRAZIL -- 2.2%
Cia Vale do Rio Doce ADR ....... 19,230 $ 510,941(a)
Empresa Brasileira de
Aeronautica S.A. ADR ........ 11,981 375,005(j)
Petroleo Brasileiro S.A. ADR. .. 5,839 224,626
1,110,572
CANADA -- 3.4%
Alcan Inc. ..................... 13,398 509,409(j)
Angiotech Pharmaceuticals,
Inc. ........................ 28,399 435,925(a)
Nortel Networks Corp. .......... 279,792 760,851(a,j)
1,706,185
CHINA -- 0.0%*
Yanzhou Coal Mining Co. Ltd. ... 18,000 24,464
FINLAND -- 1.7%
Nokia Oyj ...................... 54,020 839,677(a)
FRANCE -- 6.0%
BNP Paribas .................... 8,324 591,219(j)
Carrefour S.A. ................. 10,356 551,019(j)
Lagardere S.C.A. (Regd.) ....... 4,366 331,378(j)
Sanofi-Aventis ................. 4,879 412,482(j)
Total S.A. ..................... 3,566 836,537(j)
Veolia Environnement ........... 7,121 253,212(j)
2,975,847
NUMBER
OF SHARES VALUE
GERMANY -- 2.6%
Allianz AG (Regd.) ............. 2,750 $ 350,077
BASF AG ........................ 581 41,296
E.ON AG ........................ 8,246 709,353
Linde AG ....................... 521 35,887
Siemens AG (Regd.) ............. 2,224 176,460
1,313,073
HONG KONG -- 0.6%
Esprit Holdings Ltd. ........... 1,457 9,948
Jardine Matheson
Holdings Ltd. ............... 14,400 250,560
Sun Hung Kai Properties
Ltd. (REIT) ................. 3,000 27,214
287,722
INDIA -- 0.5%
Reliance Industries Ltd. GDR ... 9,287 237,933(b)
ITALY -- 4.7%
Banca Intesa S.p.A. ............ 132,912 677,137
Ente Nazionale
Idrocarburi S.p.A. .......... 26,878 699,688(j)
Riunione Adriatica
di Sicurta S.p.A. ........... 11,721 276,482
Telecom Italia S.p.A ........... 112,948 354,138(j)
UniCredito Italiano S.p.A. ..... 54,990 323,749
2,331,194
JAPAN -- 8.0%
Aiful Corp. .................... 4,300 344,933(j)
Aiful Corp. .................... 2,150 168,848
Asahi Glass Co. Ltd. ........... 36,500 385,611
Canon Inc. ..................... 12,800 688,108
Honda Motor Co. Ltd. ........... 10,800 542,221(j)
Hoya Corp. ..................... 5,200 573,672
Jupiter Telecommunications Co. . 269 215,029(a)
SECOM Co. Ltd. ................. 7,500 312,734(j)
SMC Corp. ...................... 6,707 760,620
3,991,776
MALAYSIA -- 0.1%
Malaysia International
Shipping Corp. BHD .......... 9,767 41,895
MEXICO -- 0.5%
America Movil S.A. de C.V.
ADR (Series L) .............. 4,422 228,175
NETHERLANDS -- 1.4%
Koninklijke Philips
Electronics N.V. ............ 25,908 715,516(a,j)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
24
March 31, 2005 (unaudited)
GE GLOBAL EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
NORWAY -- 0.1%
Telenor ASA .................... 2,756 $ 24,878
RUSSIA -- 0.3%
LUKOIL ADR ..................... 1,129 152,979
SOUTH KOREA -- 1.1%
Samsung Electronics Co. Ltd. ... 1,100 543,772
SPAIN -- 2.6%
Banco Santander Central
Hispano S.A. (Regd.) ........ 50,909 621,279(j)
Telefonica S.A. ................ 39,939 697,626(h,j)
1,318,905
SWEDEN -- 1.8%
Sandvik AB ..................... 21,211 885,398(j)
SWITZERLAND -- 2.0%
Nestle S.A. (Regd.) ............ 2,424 665,537
Roche Holding AG ............... 2,948 317,085
982,622
TAIWAN -- 0.9%
Taiwan Semiconductor
Manufacturing Co. Ltd. ...... 272,997 446,243
UNITED KINGDOM -- 17.3%
BG Group PLC ................... 45,090 350,393(h)
BHP Billiton PLC ............... 86,615 1,163,676
Brambles Industries PLC ........ 100,754 576,865(h)
Diageo PLC ..................... 34,572 487,341
GlaxoSmithKline PLC ............ 27,811 637,451
Kingfisher PLC ................. 90,472 493,635
Lloyds TSB Group PLC ........... 19,021 171,803
National Grid Transco PLC ...... 28,048 259,830
Prudential PLC ................. 17,165 164,121
Reed Elsevier PLC .............. 45,458 471,147
Rio Tinto PLC (Regd.) .......... 20,434 660,652
Royal Bank of Scotland
Group PLC ................... 11,553 367,626
Smith & Nephew PLC ............. 97,232 914,054
Smiths Group PLC ............... 42,974 691,449
Vodafone Group PLC ............. 450,252 1,195,368(h)
8,605,411
UNITED STATES -- 41.1%
Allstate Corp. ................. 590 31,895
American International
Group, Inc. ................. 2,314 128,219
Amgen Inc. ..................... 5,677 330,458(a)
Avon Products, Inc. ............ 766 32,892
NUMBER
OF SHARES VALUE
Bank of America Corp. .......... 17,208 $ 758,873
Citigroup Inc. ................. 27,552 1,238,187(h)
Colgate-Palmolive Co. .......... 14,124 736,849
Comcast Corp. (Class A)
(Special) ................... 21,899 731,427(a)
Dominion Resources, Inc. ....... 11,111 826,992
Eaton Corp. .................... 2,726 178,280
Exxon Mobil Corp. .............. 431 25,688
Federal National
Mortgage Assoc. ............. 5,312 289,238
FedEx Corp. .................... 407 38,238
First Data Corp. ............... 17,198 676,053
Goldman Sachs Group, Inc. ...... 7,075 778,179
Intel Corp. .................... 17,134 398,023
International Game
Technology .................. 826 22,021
Johnson & Johnson .............. 14,120 948,299
MBNA Corp. ..................... 18,156 445,730
Medco Health Solutions, Inc. ... 9,137 452,921(a)
Mellon Financial Corp. ......... 20,698 590,721
Microsoft Corp. ................ 45,768 1,106,213
Monsanto Co. ................... 4,859 313,405
PepsiCo, Inc. .................. 16,922 897,374
Pfizer Inc. .................... 39,230 1,030,572
Praxair, Inc. .................. 11,933 571,113
Sara Lee Corp. ................. 18,431 408,431
Schlumberger Ltd. .............. 15,332 1,080,599
State Street Corp. ............. 13,332 582,875(e)
Target Corp. ................... 15,205 760,554
The St. Paul Travelers
Companies, Inc. ............. 12,742 468,014
Tyco International Ltd. ........ 19,015 642,707
United Technologies Corp. ...... 8,984 913,313
UnitedHealth Group
Incorporated ................ 483 46,069
Viacom Inc. (Class B) .......... 18,833 655,953
Wal-Mart Stores, Inc. .......... 16,110 807,272
Wyeth .......................... 12,952 546,315
20,489,962
TOTAL COMMON STOCK
(COST $42,527,322) .......... 49,254,199
- --------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 1.9%
- --------------------------------------------------------------------------------
Financial Select Sector
SPDR Fund ................... 6,716 190,667
Industrial Select Sector
SPDR Fund ................... 25,512 776,330
TOTAL EXCHANGE TRADED FUNDS
(COST $856,378) ............. 966,997
TOTAL INVESTMENTS IN SECURITIES
(COST $43,383,700) .......... 50,221,196
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
25
March 31, 2005 (unaudited)
GE GLOBAL EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
SHORT TERM INVESTMENTS -- 16.4%
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENTS -- 1.0%
GEI Short Term Investment Fund
2.70% ....................... 494,281 $ 494,281(d,l)
SHORT TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 15.4%
State Street Navigator Securities
Lending Prime Portfolio
2.78% ....................... 7,682,014 7,682,014(d,e)
TOTAL SHORT-TERM INVESTMENTS
(COST $8,176,295) ........... 8,176,295
TOTAL INVESTMENTS
(COST $51,559,995) .......... 58,397,491
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (17.2)% .............. (8,598,550)
-----------
NET ASSETS-- 100.0% ............ $49,798,941
===========
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Global Equity Fund had the following long futures contracts open at March
31, 2005:
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
DJ EURO STOXX
50 Index
Futures June 2005 3 $117,085 $ 741
FTSE 100
Index
Futures June 2005 1 92,827 (28)
S&P 500
Index
Futures June 2005 1 295,975 (1,946)
TOPIX Index
Futures June 2005 1 110,368 (421)
-------
$(1,654)
=======
The GE Global Equity Fund was invested in the following sectors at
March 31, 2005:
PERCENTAGE (BASED
SECTOR ON MARKET VALUE)
- --------------------------------------------------------------------------------
Financials 16.42%
Short-term 14.00%
Industrials 12.00%
Healthcare 10.40%
Information Technology 10.33%
Consumer Discretionary 8.11%
Consumer Staples 7.85%
Materials 6.56%
Energy 6.18%
Telecommunication Services 4.65%
Utilities 3.50%
------
100.00%
=======
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
26
GE International Equity Fund
Q&A
RALPH R. LAYMAN IS A DIRECTOR AND EXECUTIVE VICE PRESIDENT OF GE ASSET
MANAGEMENT. HE MANAGES THE OVERALL INTERNATIONAL EQUITY INVESTMENTS FOR GE ASSET
MANAGEMENT. MR. LAYMAN LEADS A TEAM OF PORTFOLIO MANAGERS FOR THE INTERNATIONAL
EQUITY FUND AND MANAGES THE FOREIGN INVESTMENTS FOR THE STRATEGIC INVESTMENT
FUND. HE HAS SERVED IN THOSE CAPACITIES SINCE EACH FUND'S COMMENCEMENT.
MR. LAYMAN JOINED GE ASSET MANAGEMENT IN 1991 AS SENIOR VICE PRESIDENT FOR
INTERNATIONAL INVESTMENTS AND BECAME AN EXECUTIVE VICE PRESIDENT IN 1992. RALPH
IS THE HOLDER OF A CHARTERED FINANCIAL ANALYST DESIGNATION, A CHARTER MEMBER OF
THE INTERNATIONAL SOCIETY OF SECURITY ANALYSTS AND A MEMBER OF THE NEW YORK
SOCIETY OF SECURITY ANALYSTS. HE IS ALSO A MEMBER OF THE NEW YORK STOCK EXCHANGE
INTERNATIONAL CAPITAL MARKETS ADVISORY COMMITTEE AND A MEMBER OF THE FRANK
RUSSELL 20/20 EXECUTIVE COMMITTEE. HE HOLDS A BS IN ECONOMICS AND AN MS IN
FINANCE FROM THE UNIVERSITY OF WISCONSIN.
Q. HOW DID THE GE INTERNATIONAL EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE International Equity
Fund returned 13.56% for Class A shares, 13.12% for Class B shares, 13.15%
for Class C shares, and 13.66% for Class Y shares. The benchmark, MSCI EAFE
Index returned 15.13% and the Fund's Lipper peer group of 288 International
Multi-Cap Core Funds returned an average of 13.94% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. During the six-month period ended March 31, 2005, the market reflected
strong double-digit returns supported by a weak US Dollar. Moreover, solid
if unspectacular economic growth benefiting from substantial liquidity and
low rates but somewhat offset by higher oil and other commodity prices,
higher bond yields, and widening corporate spreads impacted the Fund's
performance.
Q. WHICH STOCKS AND SECTORS SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE?
A. Consumer Staples led all sectors as food producers rallied while Materials
and Industrials gained on the back of continued global, especially Asian,
growth. Healthcare and IT stocks lagged severely, hit by pipeline concerns
and pricing pressures respectively.
Materials stocks, CVRD (Brazil) and BHP Billiton (UK), made the biggest
contribution to returns reflecting continued strong demand for resources. IT
stocks, Taiwan Semiconductor and Samsung Electronics (Korea), also made
major contributions based on a recovery in certain elements of an otherwise
troubled IT sector.
Canadian holdings continued to struggle with Alcan (the strong Canadian
Dollar and higher input costs) and Nortel Networks (financial reporting
difficulties), both negatively impacting Fund returns.
Q. WHAT WORLD EVENTS HAD A MAJOR IMPACT ON FINANCIAL MARKETS?
A. The oil supply and demand equation has taken center stage as prices move to
all-time highs. The US Dollar, although weaker in the period, has shown
signs of recovery in early 2005 supported by higher rates in the US and
strong support at 20-year lows. China's economy is watched for signs of a
feared slowdown.
Q. WHAT WERE THE MAJOR BUYS AND SELLS FOR THE PERIOD AND WHY?
A. Modest trims were effected in the strong performing Materials sector and the
sizeable overweight in emerging markets was reduced. Holdings in pure energy
stocks were trimmed in favor of oil service and LNG associated stocks.
Emphasis on insurance was reduced in favour of opportunities in Asian real
estate and new additions were made to our Japanese holdings through
Technology, Industrials and Domestic Consumption.
PICTURED TO THE LEFT: RALPH R. LAYMAN
27
GE International Equity Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,135.46 7.83
Class B 1,000.00 1,131.20 11.90
Class C 1,000.00 1,131.49 11.89
Class Y 1,000.00 1,136.39 6.43
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,017.62 7.22
Class B 1,000.00 1,013.93 10.98
Class C 1,000.00 1,013.94 10.97
Class Y 1,000.00 1,018.88 5.93
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 1.44% FOR CLASS
A, 2.19% FOR CLASS B, 2.18% FOR CLASS C, AND 1.18% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 13.56% FOR CLASS A SHARES, 13.12% FOR CLASS B SHARES, 13.15% FOR
CLASS C SHARES, AND 13.66% FOR CLASS Y SHARES.
28
GE International Equity Fund
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
BHP Billiton PLC 2.27%
- --------------------------------------------------------------------------------
Total S.A. 2.08%
- --------------------------------------------------------------------------------
GlaxoSmithKline PLC 1.77%
- --------------------------------------------------------------------------------
Vodafone Group PLC 1.68%
- --------------------------------------------------------------------------------
Telefonica S.A. 1.63%
- --------------------------------------------------------------------------------
Royal Bank of Scotland Group PLC 1.59%
- --------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. Ltd. 1.48%
- --------------------------------------------------------------------------------
Smiths Group PLC 1.48%
- --------------------------------------------------------------------------------
Ente Nazionale Idrocarburi S.p.A. 1.46%
- --------------------------------------------------------------------------------
BNP Paribas 1.44%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets in equity securities under normal
market conditions. The Fund invests primarily in companies in developed and
developing countries outside the United States.
LIPPER PERFORMANCE
COMPARISON
International Multi-Cap Core Funds Peer Group
Based on average annual total returns for the periods ended 3/31/05
ONE FIVE TEN
YEAR YEAR YEAR
------ ------ ------
Number of
Funds in
peer group: 288 272 165
- --------------------------------------------------------------------------------
Peer group
average annual
total return: 13.94% 13.61% -1.34%
- --------------------------------------------------------------------------------
Lipper categories
in peer group: International Multi-Cap Core Funds
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE International GE International
Equity Fund Equity Fund w/load MSCI EAFE Index
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,425.00 10,000.00
9/95 10,974.42 10,343.39 10,492.75
9/96 12,240.52 11,536.69 11,396.56
9/97 14,540.76 13,704.66 12,783.75
9/98 13,274.98 12,511.67 11,717.70
9/99 16,657.14 15,699.36 15,344.79
9/00 18,406.62 17,348.24 15,832.75
9/01 12,637.23 11,910.59 11,290.29
9/02 10,074.16 9,494.90 9,537.04
9/03 11,402.05 10,746.43 12,019.26
9/04 13,782.44 12,989.95 14,673.23
3/05 15,651.10 14,751.17 16,893.11
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
--------- ------- --------- -------
GE International
Equity 13.56% 13.92% -5.71% 4.58%
GE International
Equity W/LOAD 7.03% 7.37% -6.82% 3.96%
MAXIMUM LOAD
OF 5.75%
MSCI EAFE Index 15.13% 15.06% -1.19% 5.38%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE International
Equity Fund MSCI EAFE Index
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,928.64 10,492.75
9/96 12,106.76 11,396.56
9/97 14,269.04 12,783.75
9/98 12,929.30 11,717.70
9/99 16,105.16 15,344.79
9/00 17,663.90 15,832.75
9/01 12,092.87 11,290.29
9/02 9,640.21 9,537.04
9/03 10,910.90 12,019.26
9/04 13,188.75 14,673.23
3/05 14,976.92 16,893.11
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
--------- ------- --------- -------
GE International
Equity 13.12% 13.22% -6.46% 4.11%
MSCI EAFE Index 15.13% 15.06% -1.19% 5.38%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE International
Equity Fund MSCI EAFE Index
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 12,561.62 11,686.13
9/00 10,967.54 10,318.00
3/01 9,063.05 8,662.24
9/01 7,473.51 7,357.74
3/02 8,001.13 7,910.86
9/02 5,910.69 6,215.16
3/03 5,505.87 6,073.72
9/03 6,656.55 7,832.80
3/04 7,992.81 9,568.43
9/04 7,992.81 9,562.35
3/05 9,043.79 11,009.02
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
--------- ------- --------- -------
GE International
Equity 13.15% 13.15% -6.36% -1.81%
MSCI EAFE Index 15.13% 15.06% -1.19% 1.74%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE International
Equity Fund MSCI EAFE Index
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,993.09 10,492.75
9/96 12,309.18 11,396.56
9/97 14,667.58 12,783.75
9/98 13,443.86 11,717.70
9/99 16,901.70 15,344.79
9/00 18,722.59 15,832.75
9/01 12,877.59 11,290.29
9/02 10,305.83 9,537.04
9/03 11,665.49 12,019.26
9/04 14,140.73 14,673.23
3/05 16,071.91 16,893.11
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
--------- ------- --------- -------
GE International
Equity 13.66% 14.28% -5.51% 4.86%
MSCI EAFE Index 15.13% 15.06% -1.19% 5.38%
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
29
March 31, 2005 (unaudited)
GE INTERNATIONAL EQUITY FUND
Schedule of Investments
GE INTERNATIONAL EQUITY FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $119,500
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Continental Europe 34.1%
United States 23.0%
United Kingdom 18.2%
Japan 12.7%
Emerging Asia 4.9%
Latin America 3.0%
Canada 1.8%
Pacific Rim 1.7%
Emerging Europe 0.6%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 97.8%
- --------------------------------------------------------------------------------
BRAZIL -- 3.1%
Aracruz Celulose S.A. ADR ....... 12,064 $ 431,891
Cia Vale do Rio Doce ADR ........ 16,353 434,499(a)
Cia Vale do Rio Doce ADR ........ 38,608 1,220,399
Empresa Brasileira de
Aeronautica S.A. ADR ......... 23,494 735,362(j)
Petroleo Brasileiro S.A. ADR. ... 2,303 88,596
2,910,747
CANADA -- 2.3%
Abitibi-Consolidated Inc. ....... 13,717 63,492(j)
Alcan Inc. ...................... 26,805 1,019,159
Manulife Financial Corp. ........ 8,404 401,150(j)
Nortel Networks Corp. ........... 259,729 706,293(a)
2,190,094
CHINA -- 1.5%
China Petroleum &
Chemical Corp. ............... 1,834,000 746,594
Huaneng Power
International, Inc. .......... 908,415 669,721(h,j)
1,416,315
DENMARK -- 0.6%
Group 4 Securicor PLC ........... 203,928 540,753(a)
NUMBER
OF SHARES VALUE
FINLAND -- 1.6%
Nokia Oyj ....................... 58,962 $ 916,494(a,j)
Sampo Oyj (Series A) ............ 37,648 548,007(j)
1,464,501
FRANCE -- 12.6%
Accor S.A. ...................... 10,945 537,123(h,j)
AXA S.A. ........................ 43,882 1,171,992(j)
BNP Paribas ..................... 24,160 1,715,985(j)
Carrefour S.A. .................. 14,872 791,304(j)
Credit Agricole S.A. ............ 28,373 773,268(j)
Lagardere S.C.A. (Regd.) ........ 17,312 1,313,973(h,j)
LVMH Moet Hennessy
Louis Vuitton S.A. ........... 5,637 422,718(j)
Renault S.A. .................... 10,348 926,621(j)
Sanofi-Aventis .................. 9,651 815,917(j)
Total S.A. ...................... 10,612 2,489,435(j)
Veolia Environnement ............ 23,825 847,179(j)
11,805,515
GERMANY -- 5.6%
Allianz AG (Regd.) .............. 4,084 519,896
BASF AG ......................... 13,503 959,764
Bayerische Motoren
Werke AG ..................... 12,782 582,255
E.ON AG ......................... 16,551 1,423,780(h)
Linde AG ........................ 6,913 476,177(j)
Siemens AG (Regd.) .............. 16,857 1,337,496
5,299,368
HONG KONG -- 2.1%
Esprit Holdings Ltd. ............ 9,988 68,193
Hongkong Land
Holdings Ltd. ................ 161,607 434,723
Jardine Matheson
Holdings Ltd. ................ 21,600 375,840
Sun Hung Kai Properties
Ltd. (REIT) .................. 121,370 1,100,980
1,979,736
INDIA -- 0.3%
Reliance Industries Ltd. GDR .... 11,700 299,754(b)
IRELAND -- 0.4%
Bank of Ireland ................. 24,073 381,069(h)
ITALY -- 6.6%
Banca Intesa S.p.A. ............. 159,470 812,440
Ente Nazionale
Idrocarburi S.p.A. ........... 67,151 1,748,074(h,j)
Mediaset S.p.A. ................. 9,458 136,442(j)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
30
March 31, 2005 (unaudited)
GE INTERNATIONAL EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
Riunione Adriatica di
Sicurta S.p.A. ............... 37,566 $ 886,131(h)
Telecom Italia S.p.A ............ 398,602 1,249,779(j)
UniCredito Italiano S.p.A. ...... 231,495 1,362,907(j)
6,195,773
JAPAN -- 16.1%
Acom Co. Ltd. ................... 20,992 1,422,887(j)
Aiful Corp. ..................... 4,100 328,889
Aiful Corp. ..................... 2,050 160,995
Asahi Breweries Ltd. ............ 17,900 232,452
Asahi Glass Co. Ltd. ............ 120,005 1,267,817(h)
Canon Inc. ...................... 22,000 1,182,685(h)
Chiyoda Corp. ................... 48,000 501,272(j)
Chugai Pharmaceutical
Co. Ltd. ..................... 48,100 740,657(j)
Daikin Industries Ltd. .......... 43,000 1,085,453(j)
Honda Motor Co. Ltd. ............ 11,800 592,427(j)
Hoya Corp. ...................... 8,700 959,798(j)
JSR Corp. ....................... 15,800 312,425(j)
Komatsu Ltd. .................... 136,000 1,024,832(h,j)
Kubota Corp. .................... 35,000 187,173
Lawson, Inc. .................... 12,199 449,365
Mitsubishi Estate Co.
Ltd. (REIT) .................. 56,000 652,356(j)
Mitsui & Co. Ltd. ............... 83,000 767,455(j)
Mitsui OSK Lines Ltd. ........... 91,132 587,041
Mitsui Sumitomo
Insurance Co. Ltd. ........... 109,000 1,001,748(j)
Nidec Corp. ..................... 3,100 386,920
Sharp Corp. ..................... 5,000 75,823(j)
SMC Corp. ....................... 7,219 818,684
Toto Ltd. ....................... 52,000 447,270(j)
15,186,424
MALAYSIA -- 0.3%
Malaysia International
Shipping Corp. BHD ........... 67,126 287,935
MEXICO -- 0.7%
America Movil S.A. de C.V. ADR
(Series L) ................... 9,915 511,614
Grupo Televisa S.A. ADR ......... 2,727 160,348
671,962
NETHERLANDS -- 2.5%
Aegon N.V. ...................... 17,585 237,914
ING Groep N.V. .................. 27,108 820,880(j)
Koninklijke Philips
Electronics N.V. ............. 46,638 1,288,028(a,h,j)
2,346,822
NUMBER
OF SHARES VALUE
NORWAY -- 0.5%
Stolt Offshore S.A. ............. 54,344 $ 420,851(a)
Telenor ASA ..................... 9,988 90,162
511,013
RUSSIA -- 0.7%
LUKOIL ADR ...................... 2,219 300,453(b)
LUKOIL ADR ...................... 1,753 237,532
MMC Norilsk Nickel ADR .......... 2,128 124,488
662,473
SOUTH KOREA -- 2.2%
Kookmin Bank .................... 12,216 545,540
POSCO ........................... 370 73,235
Samsung Electronics Co. Ltd. .... 2,980 1,473,127
2,091,902
SPAIN -- 3.9%
ACS Actividades de
Construccion y
Servicios S.A. ............... 22,099 548,570
Banco Santander Central
Hispano S.A. (Regd.) ......... 85,628 1,044,980(h,j)
Grupo Ferrovial S.A. ............ 642 36,454(j)
Telefonica S.A. ................. 111,295 1,944,023(h,j)
Telefonica S.A. ADR ............. 954 49,579
3,623,606
SWEDEN -- 2.5%
Sandvik AB ...................... 31,521 1,315,762
Svenska Handelsbanken ........... 9,150 216,954(j)
Telefonaktiebolaget LM
Ericsson (Series B) .......... 282,688 798,712(a,j)
2,331,428
SWITZERLAND -- 6.7%
ABB Ltd. (Regd.) ................ 105,468 657,461(a)
Adecco S.A. ..................... 11,542 636,219
Credit Suisse Group (Regd.) ..... 33,506 1,443,521(h)
Holcim Ltd. ..................... 4,540 280,155
Nestle S.A. (Regd.) ............. 5,279 1,449,411(h)
Novartis AG (Regd.) ............. 9,303 435,529
Roche Holding AG ................ 12,717 1,367,832
6,270,128
TAIWAN -- 1.9%
Taiwan Semiconductor
Manufacturing Co. Ltd. ....... 1,082,479 1,769,430
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
31
March 31, 2005 (unaudited)
GE INTERNATIONAL EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
UNITED KINGDOM -- 23.1%
BG Group PLC .................... 80,087 $ 622,354
BHP Billiton PLC ................ 202,220 2,716,835(h)
Brambles Industries PLC ......... 287,454 1,645,813(h)
Diageo PLC ...................... 72,450 1,021,284
GlaxoSmithKline PLC ............. 92,091 2,110,802(h)
Group 4 Securicor PLC ........... 148,649 384,815
Kingfisher PLC .................. 123,262 672,544
Lloyds TSB Group PLC ............ 94,555 854,047
National Grid Transco PLC ....... 19,948 184,793
Prudential PLC .................. 52,609 503,014
Rank Group PLC .................. 94,974 491,279
Reed Elsevier PLC ............... 118,808 1,231,379(h)
Rio Tinto PLC (Regd.) ........... 31,957 1,033,203
Royal Bank of Scotland
Group PLC .................... 59,585 1,896,045
Smith & Nephew PLC .............. 117,280 1,102,520(h)
Smiths Group PLC ................ 109,636 1,764,036(h)
Tesco PLC ....................... 258,590 1,546,518(h)
Vodafone Group PLC .............. 754,868 2,004,088(h)
21,785,369
TOTAL COMMON STOCK
(COST $77,064,484) 92,022,117
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 29.2%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.7%
GEI Short Term Investment Fund
2.70% ........................ 613,114 613,114(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 28.5%
State Street Navigator Securities
Lending Prime Portfolio
2.78% ........................26,864,721 26,864,721(d,e)
TOTAL SHORT TERM INVESTMENTS
(COST $27,477,835) ........... 27,477,835
TOTAL INVESTMENTS
(COST $104,542,319) .......... 119,499,952
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (27.0)% ............... (25,373,993)
-----------
NET ASSETS-- 100.0% ............. $94,125,959
===========
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE International Equity Fund had the following long futures contracts open
at March 31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
DJ EURO STOXX
50 Index
Futures June 2005 12 $468,342 $(1,436)
FTSE 100
Index
Futures June 2005 3 278,480 (1,909)
TOPIX Index
Futures June 2005 2 220,737 (472)
-------
$(3,817)
=======
The GE International Equity Fund was invested in the following sectors at March
31, 2005:
PERCENTAGE (BASED ON
SECTOR MARKET VALUE)
- --------------------------------------------------------------------------------
Short-Term 22.99%
Financial 17.77%
Industrials 14.19%
Materials 7.65%
Consumer Discretionary 7.11%
Information Technology 6.86%
Energy 5.82%
Healthcare 5.50%
Telecommunication Services 4.90%
Consumer Staples 4.59%
Utilities 2.62%
------
100.00%
======
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
32
GE Premier Growth Equity Fund
Q&A
DAVE CARLSON HAS BEEN THE PORTFOLIO MANAGER OF THE GE PREMIER GROWTH EQUITY FUND
SINCE ITS INCEPTION IN 1996. SEE PAGE 1 FOR BIOGRAPHICAL INFORMATION.
Q. HOW DID THE GE PREMIER GROWTH EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Premier Growth Equity
Fund returned 4.85% for Class A shares, 4.47% for Class B shares, 4.46% for
Class C shares, and 5.02% for Class Y shares. The S&P 500 Index, the
benchmark, returned 6.88% and the Lipper peer group of 673 Large-Cap Growth
Funds returned an average of 4.70% for the same period.
Q. WHICH PARTICULAR STOCKS/SECTORS SIGNIFICANTLY CONTRIBUTED TO FUND
PERFORMANCE?
A. Despite a post-election rally in late 2004, stocks retreated in the first
three months of 2005. Weighing on the market was the high price of oil and
fears that the economy will slow. The best performing sectors during the
six-month period were Energy (+23%), Utilities (+18%), and Basic Materials
(+10%). Most growth funds, including the GE Premier Growth Equity, are
underweighted in these sectors due to the lack of long-term growth in them.
The Fund owns one energy stock, Schlumberger (+5%), which trailed the sector
return.
The Technology and Healthcare sectors each returned about 5% during the
period, lagging the overall market return. These are the two largest sectors
in the Fund with Technology at 25% of the total portfolio and Healthcare at
22%. Our Technology holdings lagged with disappointing performance from
Molex (-10%) and First Data (-10%). Within Healthcare, Pfizer lagged (-14%),
but we had strong performance from Lincare (+49%), UnitedHealth (+29%), and
Johnson & Johnson (+19%).
Q. WHAT WERE THE SIGNIFICANT CHANGES TO THE FUND OVER THE SIX-MONTH PERIOD
ENDING MARCH 31, 2005?
A. The portfolio contained 36 stocks at the end of the period. We reduced the
weighting in financial stocks and AIG was eliminated from the portfolio.
With the sharp sell-off in eBay and Qualcomm earlier this year, we
established new positions in these names, believing them to be solid
long-term growth stocks. Overall portfolio turnover remains low by industry
standards, running between 17%-20%.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE DURING THE SIX-MONTH PERIOD
ENDED MARCH 31, 2005?
A. The U.S. presidential election was a key event during the first half of the
period, and it gave way to a post-election rally that drove stock prices up
9% by the end of 2004. However, oil prices hit historical highs during the
six-month period, dampening the economy, and fueling investor concerns about
the possibility of a recession should oil prices go higher. Despite the
recent increases in short-term rates by the Federal Reserve, interest rates
remain historically low and the indication is that inflation is under
control. Corporate earnings continued to grow, but at a more muted pace than
the last two years. Dividend growth has accelerated in the last two years,
following the lowering of the dividend tax rate to 15%. The equity markets
have responded favorably to the growth in corporate earnings and the
increase in distributions from dividends.
PICTURED TO THE LEFT:
DAVID B. CARLSON
33
GE Premier Growth Equity Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,048.50 5.00
Class B 1,000.00 1,044.65 8.91
Class C 1,000.00 1,044.64 8.90
Class Y 1,000.00 1,050.16 3.69
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,019.96 4.82
Class B 1,000.00 1,016.29 8.58
Class C 1,000.00 1,016.29 8.58
Class Y 1,000.00 1,021.19 3.56
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.96% FOR CLASS
A, 1.71% FOR CLASS B, 1.71% FOR CLASS C, AND 0.71% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 4.85% FOR CLASS A SHARES, 4.47% FOR CLASS B SHARES, 4.46% FOR CLASS
C SHARES, AND 5.02% FOR CLASS Y SHARES.
34
GE Premier Growth Equity Fund
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
UnitedHealth Group Incorporated 4.49%
- --------------------------------------------------------------------------------
Vodafone Group PLC ADR 4.32%
- --------------------------------------------------------------------------------
Intuit Inc. 4.05%
- --------------------------------------------------------------------------------
Liberty Media Corp. (Series A) 3.84%
- --------------------------------------------------------------------------------
First Data Corp. 3.72%
- --------------------------------------------------------------------------------
Carnival Corp. 3.69%
- --------------------------------------------------------------------------------
Johnson & Johnson 3.54%
- --------------------------------------------------------------------------------
Comcast Corp. (Class A) (Special) 3.43%
- --------------------------------------------------------------------------------
Schlumberger Ltd. 3.42%
- --------------------------------------------------------------------------------
State Street Corp. 3.39%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital and
future income rather than current income by investing at least 80% of its net
assets in equity securities. The Fund invests primarily in a limited number of
large- and medium-sized companies that the portfolio manager believes have
above-average growth histories and/or growth potential.
LIPPER PERFORMANCE COMPARISON Large-Cap Growth Peer Group Based on average
annual total returns for the periods ended 3/31/05
SIX ONE FIVE
MONTHS YEAR YEAR
-------- ------- -------
Number of Funds in
peer group: 673 652 426
- --------------------------------------------------------------------------------
Peer group average
annual total return: 4.70% 1.18% -10.17%
- --------------------------------------------------------------------------------
Lipper categories
in peer group: Large-Cap Growth
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE Premier GE Premier
Growth Fund Growth Fund w/load S&P 500 Index
- ------------------------------------------------------------------------------------------------
12/31/96 10,000.00 9,425.00 10,000.00
9/97 12,233.32 11,529.91 12,959.85
9/98 13,866.65 13,069.32 14,140.87
9/99 19,210.40 18,105.80 18,072.96
9/00 22,784.86 21,474.73 20,466.47
9/01 17,329.76 16,333.30 15,010.42
9/02 14,561.83 13,724.52 11,934.79
9/03 18,308.55 17,255.80 14,851.65
9/04 19,449.88 18,331.51 16,912.17
3/05 20,393.42 19,220.80 18,076.30
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- -------- -----------
GE Premier
Growth Equity 4.85% 1.80% -3.27% 9.02%
GE Premier
Growth
Equity w/load -1.18% -4.05% -4.41% 8.24%
maximum load
of 5.75%
S&P 500 Index 6.88% 6.69% -3.21% 7.44%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Premier
Growth Fund S&P 500 Index
- --------------------------------------------------------------------------------
12/31/96 10,000.00 10,000.00
9/97 12,166.66 12,959.85
9/98 13,683.31 14,140.87
9/99 18,818.49 18,072.96
9/00 22,149.56 20,466.47
9/01 16,726.35 15,010.42
9/02 13,948.17 11,934.79
9/03 17,516.31 14,851.65
9/04 18,608.26 16,912.17
3/05 19,510.97 18,076.30
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- -------- -----------
GE Premier
Growth Equity 4.47% 1.08% -3.99% 8.43%
S&P 500 Index 6.88% 6.69% -3.21% 7.44%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Premier
Growth Fund S&P 500 Index
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 12,482.09 11,773.02
9/00 11,765.74 11,324.36
3/01 10,251.88 9,200.32
9/01 8,884.96 8,305.46
3/02 10,331.03 9,219.23
9/02 7,405.02 6,603.67
3/03 7,723.15 6,936.74
9/03 9,251.04 8,217.61
3/04 10,079.87 9,374.53
9/04 9,753.36 9,357.72
3/05 10,188.70 10,001.85
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- --------- -----------
GE Premier
Growth Equity 4.46% 1.08% -3.98% 0.34%
S&P 500 Index 6.88% 6.69% -3.21% 0.00%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Premier
Growth Fund S&P 500 Index
- --------------------------------------------------------------------------------
12/31/96 10,000.00 10,000.00
9/97 12,253.32 12,959.85
9/98 13,926.32 14,140.87
9/99 19,345.90 18,072.96
9/00 22,995.97 20,466.47
9/01 17,534.38 15,010.42
9/02 14,767.94 11,934.79
9/03 18,617.70 14,851.65
9/04 19,824.70 16,912.17
3/05 20,819.69 18,076.30
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- --------- -----------
GE Premier
Growth Equity 5.02% 2.09% -3.03% 9.30%
S&P 500 Index 6.88% 6.69% -3.21% 7.44%
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
35
March 31, 2005 (unaudited)
GE PREMIER GROWTH EQUITY FUND
Schedule of Investments
GE PREMIER GROWTH EQUITY FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $670,961
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Information Technology 26.3%
Healthcare 21.9%
Consumer Discretionary 19.6%
Financials 14.9%
Short-Term Investments 4.5%
Telecommunication Services 4.3%
Energy 3.4%
Industrials 3.4%
Materials 1.7%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 96.6%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 19.8%
Carnival Corp. .................. 478,150 $ 24,772,951
Comcast Corp. (Class A)
(Special) .................... 688,536 22,997,102(a)
eBay Inc. ....................... 254,376 9,478,050(a)
The Home Depot, Inc. ............ 554,654 21,209,969
IAC/InterActiveCorp ............. 497,276 11,074,336(a,j)
Liberty Media Corp. (Series A) .. 2,486,380 25,783,761(a)
Liberty Media International,
Inc. (Series A) .............. 363,394 15,894,854(a)
131,211,023
ENERGY -- 3.4%
Schlumberger Ltd. ............... 325,142 22,916,008
FINANCIALS -- 15.1%
AFLAC Incorporated .............. 497,276 18,528,504
American Express Co. ............ 172,134 8,842,524
Citigroup Inc. .................. 334,705 15,041,643
Federal National
Mortgage Assoc. .............. 229,512 12,496,928
SLM Corp. ....................... 449,461 22,401,136
State Street Corp. .............. 520,227 22,744,324(e,j)
100,055,059
NUMBER
OF SHARES VALUE
HEALTHCARE -- 22.2%
Amgen Inc. ...................... 382,520 $ 22,266,489(a)
DENTSPLY International, Inc. .... 131,970 7,180,488
Johnson & Johnson ............... 353,831 23,763,290
Lincare Holdings Inc. ........... 325,142 14,381,031(a)
Medtronic Inc. .................. 281,151 14,324,643
Pfizer Inc. ..................... 717,225 18,841,501
UnitedHealth Group
Incorporated ................. 315,579 30,099,925
Zimmer Holdings, Inc. ........... 206,560 16,072,434(a)
146,929,801
INDUSTRIALS -- 3.4%
Dover Corp. ..................... 592,906 22,405,918
INFORMATION TECHNOLOGY -- 26.6%
Certegy Inc. .................... 286,890 9,932,132(j)
Cisco Systems, Inc. ............. 831,981 14,884,140(a)
Dell Inc. ....................... 478,150 18,370,523(a,h)
First Data Corp. ................ 634,983 24,961,182(h)
Intel Corp. ..................... 315,579 7,330,900
Intuit Inc. ..................... 621,595 27,207,213(a)
Microsoft Corp. ................. 927,611 22,420,358(h)
Molex Inc. (Class A) ............ 889,359 20,988,872(h,j)
Paychex, Inc. ................... 401,646 13,182,022
QUALCOMM, Inc. .................. 172,134 6,308,711
Yahoo! Inc. ..................... 325,142 11,022,314(a)
176,608,367
MATERIALS -- 1.7%
Monsanto Co. .................... 177,871 11,472,679
TELECOMMUNICATION SERVICES -- 4.4%
Vodafone Group PLC ADR .......... 1,090,182 28,955,234(j)
TOTAL COMMON STOCK
(COST $596,053,053) .......... 640,554,089
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.6%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.7%
GEI Short Term Investment Fund
2.70% ........................24,323,939 24,323,939(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 0.9%
State Street Navigator Securities
Lending Prime Portfolio
2.78% ........................ 6,082,786 6,082,786(d,e)
TOTAL SHORT-TERM INVESTMENTS
(COST $30,406,725) ........... 30,406,725
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
36
March 31, 2005 (unaudited)
GE PREMIER GROWTH EQUITY FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
TOTAL INVESTMENTS
(COST $626,459,778) .......... $670,960,814
LIABILITIES IN EXCESS OF OTHER
ASSETS-- (1.2)% .............. (8,189,315)
------------
NET ASSETS-- 100.0% ............. $662,771,499
============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Premier Growth Equity Fund had the following short futures contracts open
at March 31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
S&P 500 Index
Futures June 2005 11 $(3,255,725) $(7,232)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
37
GE Strategic Investment Fund
PAUL M. COLONNA IS A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT. HE OVERSEES A
PORTION OF THE FIXED INCOME INVESTMENTS FOR GE ASSET MANAGEMENT. HE LEADS A TEAM
OF PORTFOLIO MANAGERS FOR GE FIXED INCOME FUND. MR. COLONNA ALSO MANAGES FIXED
INCOME INVESTMENTS FOR GE STRATEGIC INVESTMENT FUND. HE HAS SERVED IN THOSE
CAPACITIES SINCE JANUARY 2005. HE IS ALSO PORTFOLIO MANAGER OF GE SHORT-TERM
GOVERNMENT FUND AND HAS SERVED ON THE FUND'S PORTFOLIO MANAGEMENT TEAM SINCE
JOINING GE ASSET MANAGEMENT IN 2000. PRIOR TO JOINING GE ASSET MANAGEMENT, MR.
COLONNA WAS A SENIOR PORTFOLIO MANAGER WITH THE FEDERAL HOME LOAN MORTGAGE
CORPORATION, OVERSEEING THE MORTGAGE INVESTMENT GROUP.
CHRISTOPHER BROWN IS A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT. HE MANAGES
DOMESTIC EQUITY INVESTMENTS FOR THE GE STRATEGIC INVESTMENT FUND AND HAS SERVED
IN THIS CAPACITY SINCE SEPTEMBER, 2003. MR. BROWN JOINED GE ASSET MANAGEMENT IN
1985 AS A MANAGER OF MUTUAL FUND ACCOUNTING. HE BECAME A U.S. EQUITY ANALYST IN
1989, A VICE PRESIDENT AND PORTFOLIO MANAGER IN 1992, AND A SENIOR VICE
PRESIDENT IN 1996. CHRIS IS A CUM LAUDE GRADUATE IN ECONOMICS FROM BUCKNELL
UNIVERSITY AND IS THE HOLDER OF A CHARTERED FINANCIAL ANALYST DESIGNATION.
RALPH LAYMAN ALSO MANAGES FOREIGN INVESTMENTS FOR THE GE STRATEGIC INVESTMENT
FUND SINCE ITS INCEPTION IN 1993. SEE PAGE 27 FOR BIOGRAPHICAL INFORMATION.
Q. HOW DID THE GE STRATEGIC INVESTMENT FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Strategic Investment
Fund returned 5.23% for Class A shares, 4.86% for Class B shares, 4.87% for
Class C shares, and 5.36% for Class Y shares. During the same period, the
Fund's broad-based benchmarks, the S&P 500 Index and the Lehman Brothers
Aggregate Bond Index, advanced 6.88% and 0.47%, respectively. The Fund's
Lipper peer group of 396 Flexible Portfolio Funds returned an average of
5.68% for the same period.
PICTURED FROM
LEFT TO RIGHT:
RALPH R. LAYMAN,
CHRISTOPHER D. BROWN
AND PAUL M. COLONNA
38
Q&A
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A. The domestic equity market strengthened after the election in late 2004, but
then declined modestly in the first quarter of 2005. With oil prices staying
over $50 a barrel, investors were worried about a slowing economy. The
Energy sector contributed most to performance overall, particularly oil and
gas stocks, with Encana (+53%), Burlington Resources (+23%), and Exxon Mobil
(+25%) advancing over the period. Within Healthcare, pharmaceutical company
Johnson & Johnson (+19%) was one of several positive contributors from this
industry. A position in Lincare Holdings (+49%), also in the Healthcare
sector, helped the portfolio's return versus the benchmark. Investments in
the Information Technology, Financials, and Consumer Staples sectors were
the primary drivers of underperformance over the period. In particular, the
IT services, Insurance, and Tobacco industries within these sectors impacted
the Fund's performance. In Consumer Staples, an underweight in Tobacco
stocks, including Altria (+42%), drove underperformance versus the
benchmark. Although our allocation to Healthcare helped performance,
overweight in Pfizer (-13%) detracted from the portfolio. Information
Technology names like First Data (-9%) and Molex (-10%) detracted from
performance as the benchmark sector rose 16%.
The U.S. presidential election was a key event during the first half of the
period, and it gave way to a post-election rally that drove stock prices up
9% by the end of 2004. However, oil prices hit historical highs during the
six-month period, dampening the economy, and fueling investor concerns about
the possibility of a recession should oil prices go higher. Despite the
recent increases in short-term rates by the Federal Reserve, interest rates
remain historically low and the indication is that inflation is under
control. Corporate earnings continued to grow, but at a more muted pace than
the last two years. Dividend growth has accelerated in the last two years,
following the lowering of the dividend tax rate to 15%. The equity markets
have responded favorably to the growth in corporate earnings and the
increase in distributions from dividends.
International equity markets have reflected strong double-digit returns
supported by a weak US Dollar. Solid if unspectacular economic growth
benefiting from substantial liquidity and low rates but somewhat offset by
higher oil and other commodity prices, higher bond yields, and widening
corporate spreads impacted the Fund's performance. Consumer Staples led all
sectors as food producers allied while Materials and Industrials gained on
the back of continued global, especially Asian growth. Healthcare and IT
stocks lagged severely, hit by pipeline concerns and pricing pressures
respectively. Materials stocks, CVRD (Brazil) and BHP Billiton (UK), made
the biggest contribution to returns reflecting continued strong demand for
resources. IT stocks, Taiwan Semiconductor and Samsung Electronics (Korea),
also made major contributions based on a recovery in certain elements of an
otherwise troubled IT sector. Canadian holdings continued to struggle with
Alcan (the strong Canadian Dollar and higher input costs) and Nortel
Networks (financial reporting difficulties), both negatively impacting Fund
returns.
The oil supply and demand equation has taken centre stage as prices move to
all-time highs. The US Dollar, although weaker in the period, has shown
signs of recovery in early 2005 supported by higher rates in the US and
strong support at 20-year lows.
In the fixed income portfolio, interest rates rose across most of the
maturity spectrum resulting in price declines for most fixed income assets.
The income portion of total bond returns, however, lifted the total return
for the broad market into moderately positive territory. The Federal Reserve
methodically raised its Fed Funds target 100 basis points (bps) during
39
GE Strategic Investment Fund
Q&A
the period in 25 bps increments at each of its four scheduled meetings
between October 2004 and March 2005. This policy action pushed the yield on
the U.S. Treasury 2-year note up 117 bps to 3.78%. The U.S. Treasury 10-year
note yield began the period at roughly 4.2% then traded in a range between
3.97% and 4.4%, until breaking out to higher levels upon investor reaction
to comments from the Fed chairman regarding longer bond yields and language
from the FOMC citing inflationary pressures. The 10-year yield peaked at
4.65% before slipping back to end March at 4.48%. The 30-year Treasury bond
yield fell 14 bps to 4.76%. Of the major fixed income sectors,
mortgage-backed securities performed the best (1.14% return) followed by the
government-related sector (0.24% return). Commercial MBS lagged with (0.22)%
return. In general, lower quality underperformed higher quality. Fund
performance for the period benefited from security selection. Although MBS
performance lagged in December, it rebounded over the last three months.
Investment grade corporate security holdings also performed well despite the
emphasis in lower quality. The Fund's exposure in treasury inflation-indexed
securities and yield curve positioning added relative return as well. The
Fund's exposure to high yield and emerging markets caused a drag on
performance in March, due to spread widening in those two sectors.
40
GE Strategic Investment Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,052.10 4.12
Class B 1,000.00 1,048.37 8.01
Class C 1,000.00 1,048.49 8.01
Class Y 1,000.00 1,053.36 2.82
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.78 3.98
Class B 1,000.00 1,017.11 7.74
Class C 1,000.00 1,017.11 7.74
Class Y 1,000.00 1,022.00 2.72
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.79% FOR CLASS
A, 1.54% FOR CLASS B, 1.54% FOR CLASS C, AND 0.54% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 5.23% FOR CLASS A SHARES, 4.86% FOR CLASS B SHARES, 4.87% FOR CLASS
C SHARES, AND 5.36% FOR CLASS Y SHARES.
41
GE Strategic Investment Fund
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
Citigroup Inc. 2.04%
- --------------------------------------------------------------------------------
First Data Corp. 2.01%
- --------------------------------------------------------------------------------
Vodafone Group PLC ADR 1.86%
- --------------------------------------------------------------------------------
Liberty Media Corp. (Series A) 1.84%
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 1.83%
- --------------------------------------------------------------------------------
Microsoft Corp. 1.79%
- --------------------------------------------------------------------------------
Pfizer Inc. 1.75%
- --------------------------------------------------------------------------------
Federal National Mortgage
Assoc. 5.00%,TBA 1.64%
- --------------------------------------------------------------------------------
Johnson & Johnson 1.63%
- --------------------------------------------------------------------------------
American International Group, Inc. 1.51%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek to maximize total return by
investing primarily in a combination of equity securities and investment grade
debt securities.
LIPPER PERFORMANCE COMPARISON
Flexible Portfolio Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ------ ------ ------
Number of
Funds in
peer group: 396 362 194 87
- --------------------------------------------------------------------------------
Peer group
average annual
total return: 5.68% 4.94% 0.61% 8.35%
- --------------------------------------------------------------------------------
Lipper categories
in peer group: Flexible Portfolio
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE Strategic GE Strategic
Investment Fund Investment Fund w/load S&P 500 Index LB Aggregate Bond Index
- ------------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,425.00 10,000.00 10,000.00
9/95 11,290.52 10,641.32 11,825.64 10,817.56
9/96 12,823.38 12,086.03 14,230.26 11,347.57
9/97 15,702.85 14,799.93 19,991.28 12,449.95
9/98 16,625.60 15,669.62 21,813.07 13,882.94
9/99 19,166.18 18,064.13 27,878.53 13,832.13
9/00 21,807.02 20,553.12 31,570.66 14,799.07
9/01 19,776.80 18,639.64 23,154.40 16,715.98
9/02 18,298.41 17,246.25 18,410.07 18,152.96
9/03 21,468.61 20,234.17 22,909.48 19,134.99
9/04 23,173.70 21,841.21 26,087.96 19,838.78
3/05 24,386.44 22,984.22 27,883.69 19,932.00
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- --------- --------- ---------
GE Strategic
Investment 5.23% 3.83% 2.39% 9.32%
GE Strategic
Investment W/LOAD -0.82% -2.14% 1.19% 8.68%
MAXIMUM LOAD
OF 5.75%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
LB Aggregate
Bond Index 0.47% 1.15% 7.14% 7.14%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Strategic
Investment Fund S&P 500 Index LB Aggregate Bond Index
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 10,000.00 10,000.00
9/95 11,250.78 11,825.64 10,817.56
9/96 12,682.66 14,230.26 11,347.57
9/97 15,417.97 19,991.28 12,449.95
9/98 16,174.51 21,813.07 13,882.94
9/99 18,510.24 27,878.53 13,832.13
9/00 20,905.66 31,570.66 14,799.07
9/01 18,895.50 23,154.40 16,715.98
9/02 17,482.98 18,410.07 18,152.96
9/03 20,511.92 22,909.48 19,134.99
9/04 22,141.02 26,087.96 19,838.78
3/05 23,299.73 27,883.69 19,932.00
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ------- ------- --------
GE Strategic
Investment 4.86% 3.05% 1.63% 8.82%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
LB Aggregate
Bond Index 0.47% 1.15% 7.14% 7.14%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Strategic
Investment Fund S&P 500 Index LB Aggregate Bond Index
- ---------------------------------------------------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00 10,000.00
3/00 11,245.81 11,773.02 10,208.16
9/00 11,276.28 11,324.36 10,699.05
3/01 10,753.56 9,200.32 11,487.32
9/01 10,148.20 8,305.46 12,084.89
3/02 10,951.17 9,219.23 12,101.67
9/02 9,314.56 6,603.67 13,123.76
3/03 9,544.84 6,936.74 13,515.85
9/03 10,862.96 8,217.61 13,833.73
3/04 11,845.00 9,374.53 14,246.39
9/04 11,638.10 9,357.72 14,342.54
3/05 12,204.73 10,001.85 14,409.93
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- -------- -----------
GE Strategic
Investment 4.87% 3.04% 1.65% 3.69%
S&P 500 Index 6.88% 6.69% -3.21% 0.00%
LB Aggregate
Bond Index 0.47% 1.15% 7.14% 6.87%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Strategic
Investment Fund S&P 500 Index LB Aggregate Bond Index
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 10,000.00 10,000.00
9/95 11,308.88 11,825.64 10,817.56
9/96 12,886.86 14,230.26 11,347.57
9/97 15,820.55 19,991.28 12,449.95
9/98 16,785.96 21,813.07 13,882.94
9/99 19,397.89 27,878.53 13,832.13
9/00 22,125.80 31,570.66 14,799.07
9/01 20,112.92 23,154.40 16,715.98
9/02 18,651.01 18,410.07 18,152.96
9/03 21,942.76 22,909.48 19,134.99
9/04 23,746.11 26,087.96 19,838.78
3/05 25,019.09 27,883.69 19,932.00
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
--------- ------- --------- --------
GE Strategic
Investment 5.36% 4.05% 2.64% 9.60%
S&P 500 Index 6.88% 6.69% -3.21% 10.80%
LB Aggregate
Bond Index 0.47% 1.15% 7.14% 7.14%
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
42
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
GE STRATEGIC INVESTMENT FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $293,207
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Domestic Equity 50.6%
Bonds & Notes 24.7%
Foreign Equity 17.2%
Short-Term & Others 7.5%
NUMBER
OF SHARES VALUE
DOMESTIC EQUITY -- 53.8%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 9.4%
Carnival Corp. .................. 77,137 $ 3,996,468
Comcast Corp. (Class A)
(Special) .................... 130,588 4,361,639(a)
eBay Inc. ....................... 17,745 661,179(a)
Family Dollar Stores, Inc. ...... 25,649 778,704
Liberty Media Corp. (Series A) .. 519,354 5,385,701(a)
Liberty Media International Inc.
(Series A) ................... 31,243 1,366,569(a)
Target Corp. .................... 40,837 2,042,667
The Home Depot, Inc. ............ 103,373 3,952,984
Viacom Inc. (Class B) ........... 69,210 2,410,584
24,956,495
CONSUMER STAPLES -- 3.7%
Avon Products, Inc. ............. 4,008 172,104
Clorox Co. ...................... 11,959 753,297
Colgate-Palmolive Co. ........... 59,392 3,098,481
PepsiCo, Inc. ................... 66,525 3,527,821
Sara Lee Corp. .................. 14,828 328,588
The Coca-Cola Co. ............... 30,058 1,252,517
Wal-Mart Stores, Inc. ........... 16,271 815,340
9,948,148
ENERGY -- 4.2%
Burlington Resources, Inc. ...... 36,685 1,836,818
Exxon Mobil Corp. ............... 89,769 5,350,232
Nabors Industries Ltd. .......... 16,030 948,014(a)
Schlumberger Ltd. ............... 42,913 3,024,508
11,159,572
NUMBER
OF SHARES VALUE
FINANCIALS -- 10.5%
AFLAC Incorporated .............. 26,225 $ 977,143(h)
Alleghany Corp. ................. 1,132 313,619(a)
American International
Group, Inc. .................. 80,063 4,436,291(h)
Bank of America Corp. ........... 46,173 2,036,229
Berkshire Hathaway, Inc.
(Class B) .................... 506 1,445,136(a)
Citigroup Inc. .................. 133,051 5,979,312(h)
Federal National
Mortgage Assoc. .............. 73,282 3,990,205
HCC Insurance Holdings, Inc. .... 16,832 608,645
MBNA Corp. ...................... 59,312 1,456,110
Mellon Financial Corp. .......... 31,040 885,882
Merrill Lynch & Co., Inc. ....... 23,909 1,353,249
State Street Corp. .............. 87,677 3,833,238(e)
SunTrust Banks, Inc. ............ 7,947 572,740
27,887,799
HEALTHCARE -- 8.4%
Abbott Laboratories ............. 67,824 3,161,955(h)
Amgen Inc. ...................... 24,446 1,423,002(a)
Cardinal Health, Inc. ........... 22,755 1,269,729
Johnson & Johnson ............... 71,286 4,787,568
Lincare Holdings, Inc. .......... 62,518 2,765,171(a)
Pfizer Inc. ..................... 195,152 5,126,643
Wyeth ........................... 89,977 3,795,230
22,329,298
INDUSTRIALS -- 3.8%
Corinthian Colleges, Inc. ....... 29,656 466,192(a,j)
Dover Corp. ..................... 86,779 3,279,378
Southwest Airlines Co. .......... 100,277 1,427,944
Tyco International Ltd. ......... 44,885 1,517,113
United Technologies Corp. ....... 10,732 1,091,015
Waste Management, Inc. .......... 78,548 2,266,110
10,047,752
INFORMATION TECHNOLOGY -- 13.6%
Applied Materials, Inc. ......... 80,151 1,302,454(a)
Automatic Data
Processing, Inc. ............. 61,178 2,749,951
Certegy Inc. .................... 47,049 1,628,836
Checkfree Corp. ................. 14,255 581,034(a)
Cisco Systems, Inc. ............. 124,955 2,235,445(a)
Dell Inc. ....................... 76,135 2,925,107(a)
EMC Corp. ....................... 104,197 1,283,707(a)
First Data Corp. ................ 149,642 5,882,427
Intel Corp. ..................... 108,605 2,522,894
International Business
Machines Corp. ............... 8,576 783,675
Intuit Inc. ..................... 68,649 3,004,767(a)
Microsoft Corp. ................. 217,611 5,259,658
Molex Inc. (Class A) ............ 124,955 2,948,938
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
43
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
Oracle Corp. .................... 136,491 $ 1,703,408(a)
Paychex, Inc. ................... 12,111 397,483
Yahoo! Inc. ..................... 26,306 891,773(a)
36,101,557
MATERIALS -- 0.2%
Monsanto Co. .................... 6,172 398,094
TOTAL DOMESTIC EQUITY
(COST $132,133,809) .......... 142,828,715
- --------------------------------------------------------------------------------
FOREIGN EQUITY -- 19.1%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 1.6%
Accor S.A. ...................... 5,300 260,096(j)
Bayerische Motoren Werke AG ..... 6,190 281,971
Esprit Holdings Ltd. ............ 5,411 36,944
Grupo Televisa S.A. ADR ......... 1,321 77,675
Honda Motor Co. Ltd. ............ 5,700 286,172(j)
Kingfisher PLC .................. 59,695 325,709
Koninklijke Philips
Electronics N.V. ............. 25,029 691,240(a,j)
Lagardere S.C.A. (Regd.) ........ 8,384 636,342(j)
LVMH Moet Hennessy
Louis Vuitton S.A. ........... 2,730 204,722(j)
Mediaset S.p.A. ................. 4,580 66,072(j)
Rank Group PLC .................. 45,996 237,927
Reed Elsevier PLC ............... 57,538 596,350
Renault S.A. .................... 5,012 448,804(j)
Sharp Corp. ..................... 3,000 45,494(j)
4,195,518
CONSUMER STAPLES -- 1.0%
Asahi Breweries Ltd. ............ 8,800 114,278
Carrefour S.A. .................. 7,202 383,202(j)
Diageo PLC ...................... 35,088 494,615
Lawson, Inc. .................... 6,000 221,017
Nestle S.A. (Regd.) ............. 2,557 702,054
Tesco PLC ....................... 125,234 748,972
2,664,138
ENERGY -- 1.2%
BG Group PLC .................... 38,786 301,405
China Petroleum &
Chemical Corp. ............... 888,000 361,492
Ente Nazionale
Idrocarburi S.p.A. ........... 32,546 847,237(j)
LUKOIL ADR ...................... 1,609 217,859(b)
LUKOIL ADR ...................... 213 28,861
Petroleo Brasileiro S.A. ADR. ... 1,150 44,240(j)
Stolt Offshore S.A. ............. 26,365 204,176(a)
Total S.A. ...................... 5,139 1,205,542(j)
3,210,812
NUMBER
OF SHARES VALUE
FINANCIALS -- 3.9%
Acom Co. Ltd. ................... 10,034 $ 680,128(j)
Aegon N.V. ...................... 8,516 115,216
Aiful Corp. ..................... 2,000 160,434(j)
Aiful Corp. ..................... 1,000 78,534
Allianz AG (Regd.) .............. 1,979 251,928
AXA S.A. ........................ 21,252 567,594(j)
Banca Intesa S.p.A. ............. 77,315 393,891
Banco Santander Central
Hispano S.A. (Regd.) ......... 41,469 506,076(j)
Bank of Ireland ................. 11,660 184,575
BNP Paribas ..................... 11,700 831,003(j)
Credit Agricole S.A. ............ 13,741 374,493(j)
Credit Suisse Group (Regd.) ..... 16,227 699,099
Hongkong Land Holdings Ltd. ..... 75,923 204,233
ING Groep N.V. .................. 13,128 397,540(j)
Kookmin Bank .................... 5,912 264,017
Lloyds TSB Group PLC ............ 46,349 418,637
Manulife Financial Corp. ........ 4,070 194,274(j)
Mitsubishi Estate Co.
Ltd. (REIT) .................. 27,000 314,529(j)
Mitsui Sumitomo
Insurance Co. Ltd. ........... 53,000 487,089(j)
Prudential PLC .................. 25,222 241,157
Riunione Adriatica di
Sicurta S.p.A. ............... 18,193 429,148
Royal Bank of Scotland
Group PLC .................... 28,857 918,254
Sampo Oyj (Series A) ............ 18,232 265,386(j)
Sun Hung Kai Properties
Ltd. (REIT) .................. 59,441 539,205
Svenska Handelsbanken ........... 4,430 105,039
UniCredito Italiano S.p.A. ...... 112,113 660,056
10,281,535
HEALTHCARE -- 1.2%
Chugai Pharmaceutical
Co. Ltd. ..................... 23,300 358,780(j)
GlaxoSmithKline PLC ............. 44,600 1,022,269
Novartis AG (Regd.) ............. 4,424 207,114
Roche Holding AG ................ 6,159 662,458
Sanofi-Aventis .................. 4,674 395,150(j)
Smith & Nephew PLC .............. 56,798 533,944
3,179,715
INDUSTRIALS -- 3.3%
ABB Ltd. (Regd.) ................ 51,078 318,407(a)
ACS Actividades de
Construccion y
Servicios S.A. ............... 10,702 265,659
Adecco S.A. ..................... 5,590 308,132
Asahi Glass Co. Ltd. ............ 59,003 623,349
Brambles Industries PLC ......... 139,213 797,062
Chiyoda Corp. ................... 24,000 250,636(j)
Daikin Industries Ltd. .......... 34,485 870,508(j)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
44
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
Empresa Brasileira de
Aeronautica S.A. ADR ......... 11,378 $ 356,131(j)
Group 4 Securicor PLC ........... 98,762 261,886(a)
Group 4 Securicor PLC ........... 71,990 186,364
Grupo Ferrovial S.A. ............ 345 19,590(j)
Jardine Matheson Holdings Ltd. .. 10,400 180,960
Komatsu Ltd. .................... 66,000 497,345(j)
Kubota Corp. .................... 17,000 90,912(j)
Malaysia International
Shipping Corp. BHD ........... 32,535 139,558
Mitsui & Co. Ltd. ............... 40,000 369,858(j)
Mitsui OSK Lines Ltd. ........... 43,544 280,496(j)
Reliance Industries Ltd. GDR .... 9,877 253,049(b)
Sandvik AB ...................... 15,257 636,864(j)
Siemens AG (Regd.) .............. 8,164 647,761
SMC Corp. ....................... 3,497 396,584
Smiths Group PLC ................ 53,096 854,311
Toto Ltd. ....................... 25,000 215,034(j)
8,820,456
INFORMATION TECHNOLOGY -- 1.5%
Canon Inc. ...................... 10,700 575,215
Hoya Corp. ...................... 4,200 463,351(j)
Nidec Corp. ..................... 1,500 187,220
Nokia Oyj ....................... 28,565 444,009(a,j)
Nortel Networks Corp. ........... 125,787 342,058(a)
Samsung Electronics Co. Ltd. .... 1,440 711,846
Taiwan Semiconductor
Manufacturing Co. Ltd. ....... 523,598 855,878
Telefonaktiebolaget LM
Ericsson (Series B) .......... 136,904 386,811(a,j)
3,966,388
MATERIALS -- 1.7%
Abitibi-Consolidated Inc. ....... 6,658 30,818(j)
Alcan Inc. ...................... 12,982 493,592
Aracruz Celulose S.A. ADR ....... 5,842 209,144
BASF AG ......................... 6,540 464,849
BHP Billiton PLC ................ 97,935 1,315,761
Cia Vale do Rio Doce ADR ........ 7,919 210,408(a,j)
Cia Vale do Rio Doce ADR ........ 18,698 591,044
Holcim Ltd. ..................... 2,199 135,696
JSR Corp. ....................... 7,700 152,258(j)
Linde AG ........................ 3,349 230,684
MMC Norilsk Nickel ADR .......... 1,030 60,255
POSCO ........................... 164 32,461
Rio Tinto PLC (Regd.) ........... 15,477 500,387
4,427,357
TELECOMMUNICATION SERVICES -- 3.1%
America Movil S.A. de C.V.
ADR (Series L) ............... 4,699 242,468
Telecom Italia S.p.A ............ 193,042 605,265(j)
Telefonica S.A. ................. 53,900 941,487(j)
NUMBER
OF SHARES VALUE
Telefonica S.A. ADR ............. 463 $ 24,062
Telenor ASA ..................... 4,838 43,673
Vodafone Group PLC .............. 366,623 973,342
Vodafone Group PLC ADR .......... 205,178 5,449,528
8,279,825
UTILITIES -- 0.6%
E.ON AG ......................... 8,015 689,481
Huaneng Power
International, Inc. .......... 442,945 326,557(j)
National Grid Transco PLC ....... 9,661 89,497
Veolia Environnement ............ 11,538 410,273(j)
1,515,808
TOTAL FOREIGN EQUITY
(COST $40,382,479) ........... 50,541,552
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 27.2%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 3.5%
U.S. Treasury Bonds
5.38% 02/15/31 ............$1,170,000 1,276,025
7.13% 02/15/23 ............ 45,000 57,046
7.25% 05/15/16 ............ 500,000 613,345(h)
8.13% 08/15/19 - 08/15/21 . 1,325,000 1,802,273(h)
U.S. Treasury Inflation
Indexed Bonds
2.00% 01/15/14 ............ 975,240 998,100(p)
2.38% 01/15/25 ............ 197,266 212,199(p)
3.88% 04/15/29 ............ 139,193 191,499(p)
4.53% 04/15/10 ............ 493,214 482,581(d,p)
U.S. Treasury Notes
2.88% 11/30/06 ............ 420,000 414,275
3.38% 02/15/08 ............ 605,000 595,973
3.50% 12/15/09 - 02/15/10 . 1,895,000 1,840,214
4.00% 02/15/15 ............ 875,000 840,823
4.25% 11/15/13 ............ 45,000 44,311(h)
9,368,664
FEDERAL AGENCIES -- 2.2%
Federal Farm Credit Bank
3.75% 01/15/09 ............ 345,000 338,595
Federal Home Loan Bank
2.38% 02/15/06 ............ 1,635,000 1,617,053(h)
2.63% 10/16/06 ............ 810,000 794,792(h)
3.75% 08/18/09 ............ 325,000 317,343
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
45
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Federal Home Loan
Mortgage Corp.
3.00% 09/29/06 ............ $ 800,000 $ 788,861
3.63% 09/15/08 ............ 970,000 949,923
4.50% 01/15/14 ............ 500,000 489,363(h)
4.75% 12/08/10 ............ 545,000 542,365
6.75% 03/15/31 ............ 95,000 115,816
5,954,111
AGENCY MORTGAGE BACKED -- 6.9%
Federal Home Loan Mortgage Corp.
4.50% 06/01/33 - 02/01/35 . 196,389 186,634
5.00% 04/01/13 ............ 118,169 118,385
6.00% 04/01/17 - 12/01/34 . 381,762 390,877
6.50% 01/01/27 - 12/01/34 . 431,979 448,428
7.00% 10/01/16 - 12/01/34 . 114,824 120,835
7.50% 11/01/09 - 09/01/33 . 91,061 97,058
8.00% 04/01/30 - 11/01/30 . 11,902 12,828
9.00% 04/01/16 - 06/01/21 . 14,918 16,183(h)
Federal National Mortgage Assoc.
4.00% 05/01/19 - 06/01/19 . 185,193 177,492
4.50% 05/01/18 - 04/01/34 . 827,516 799,882
5.00% 11/01/32 - 10/01/34 . 226,366 222,120
5.50% 03/01/14 - 08/01/33 . 433,613 442,059
6.00% 07/01/14 - 02/01/35 . 1,364,462 1,397,613
6.50% 01/01/15 - 02/01/35 . 2,116,350 2,198,744
7.00% 10/01/16 - 10/01/34 . 491,191 516,973
7.50% 12/01/09 - 03/01/34 . 270,428 288,562
8.00% 12/01/11 - 11/01/33 . 157,564 167,481
8.50% 06/01/30 - 05/01/31 . 15,110 16,345
9.00% 06/01/09 - 12/01/22 . 137,239 145,371
5.00% TBA ................. 7,635,000 7,495,010(c)
5.50% TBA ................. 1,910,000 1,907,313(c)
Government National
Mortgage Assoc.
4.50% 08/15/33 - 09/15/34 . 357,358 342,579
6.00% 07/15/33 - 04/15/34 . 60,063 61,705
6.50% 02/15/24 - 08/15/34 . 263,915 275,698
7.00% 03/15/12 - 06/15/34 . 127,426 133,985
8.00% 09/15/29 - 06/15/30 . 821 886
8.50% 10/15/17 ............ 139,731 152,144
9.00% 11/15/16 - 12/15/21 . 154,261 170,245
18,303,435
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.5%
Collateralized Mortgage Obligation
Trust (Class B)
4.06% 11/01/18 ............ 5,217 4,538(d,f)
Federal Home Loan Mortgage Corp.
3.84% 10/15/18 ............ 284,066 23,702(g,i)
4.34% 12/15/30 ............ 696,174 45,686(g,i)
4.50% 04/15/13 - 03/15/19 . 632,824 76,037(g)
4.50% 11/15/19 ............ 75,000 70,102
5.00% 12/15/13 - 12/01/34 . 2,254,362 358,332(g)
PRINCIPAL
AMOUNT VALUE
5.00% 02/15/34 - 11/15/34 . $ 640,000 $ 606,313
5.48% 10/15/33 ............ 85,000 63,316(i)
5.50% 04/15/17 - 06/15/33 . 416,611 72,633(g)
6.25% 01/15/23 ............ 4,456 4,473
6.77% 12/15/33 ............ 55,000 44,686(i)
7.50% 01/15/16 ............ 36,591 38,432
7.50% 07/15/27 ............ 36,443 6,595(g)
8.00% 04/15/20 ............ 2,109 2,114
15.97% 09/25/43 ............ 1,175,445 11,387(d,g,i)
Federal Home Loan
Mortgage Corp. STRIPS
8.00% 02/01/23 - 07/01/24 . 14,577 3,101(g)
Federal Home Loan
Mortgage STRIPS
4.96% 08/01/27 ............ 3,215 2,760(d,f)
Federal National Mortgage Assoc.
1.16% 12/25/42 ............ 608,388 17,111(g,i)
2.22% 06/25/43 ............ 946,299 44,358(g,i)
4.00% 08/25/17 ............ 219,725 215,124
4.15% 10/25/29 ............ 167,893 14,638(g,i)
4.50% 05/25/18 ............ 97,467 12,001(g)
4.50% 12/25/19 ............ 50,000 46,369
4.75% 11/25/14 ............ 71,207 6,645(g)
4.75% 09/25/42 ............ 818,704 64,729(g,i)
4.80% 04/25/17 - 10/25/17 . 381,846 34,736(g,i)
4.85% 08/25/16 ............ 128,357 9,224(g,i)
5.00% 02/25/11 - 02/25/32 . 216,388 18,250(g)
5.00% 01/15/35 ............ 75,000 71,531
5.50% 01/25/27 ............ 134,938 18,723(g)
5.50% 07/25/34 ............ 149,499 152,691
6.00% 12/25/34 ............ 100,000 104,594
7.50% 07/25/41 ............ 55,634 58,989
8.00% 07/25/14 ............ 76,012 79,005
8.50% 09/25/31 ............ 126,352 119,012(i)
9.63% 05/25/17 ............ 11,468 11,646(i)
13.65% 04/25/32 ............ 35,700 38,481(i)
Federal National Mortgage
Assoc. (Class S)
4.25% 02/25/31 ............ 196,480 15,289(g,i)
Federal National Mortgage
Assoc. REMIC
4.50% 11/25/13 ............ 394,852 22,707(g)
5.00% 10/25/22 ............ 102,595 17,762(g)
5.50% 08/25/33 ............ 354,772 89,912(g)
10.34% 03/25/31 ............ 193,272 194,957(i)
Federal National Mortgage
Assoc. REMIC (Class B)
6.03% 12/25/22 ............ 5,508 4,366(d,f)
Federal National Mortgage
Assoc. REMIC (Class J)
1080.91% 03/25/22 ........... 29 433(g)
Federal National Mortgage
Assoc. REMIC (Class K)
1008.00% 05/25/22 ........... 19 491(g)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
46
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Federal National Mortgage
Assoc. STRIPS
7.50% 11/01/23 ............ $ 98,923 $ 22,474(g)
8.00% 08/01/23 - 07/01/24 . 31,900 6,849(g)
8.50% 03/01/17 - 07/25/22 . 12,442 2,323(g)
9.00% 05/25/22 ............ 5,620 1,201(g)
Government National
Mortgage Assoc.
5.00% 02/16/34 ............ 65,000 61,709
Residential Asset Securities Trust
3.25% 03/25/09 ............ 1,000,000 1,000,000
Vendee Mortgage Trust
12.25% 05/15/33 ............ 685,877 24,220(d,g,i)
4,036,757
ASSET BACKED -- 2.1%
American Express Credit Account
Master Trust (Class A)
1.69% 01/15/09 ............ 60,000 58,477
2.95% 09/15/08 ............ 247,000 247,277(i)
Bank One Issuance Trust
3.59% 05/17/10 ............ 30,000 29,556
3.76% 08/15/08 ............ 114,000 114,055
Bank One Issuance Trust (Class A)
2.84% 10/15/09 ............ 150,000 150,052(i)
2.92% 12/15/10 ............ 150,000 150,350(i)
Bear Stearns Asset Backed
Securities Inc. (Class A)
3.22% 01/25/34 ............ 80,514 80,859(i)
BMW Vehicle Owner Trust (Class B)
2.93% 03/25/09 ............ 49,000 48,269
Capital Auto Receivables Asset
Trust (Class B)
3.92% 11/16/09 ............ 96,000 94,204
Capital One Master Trust
(Class C)
6.70% 06/15/11 ............ 100,000 104,594(b)
Capital One Prime Auto
Receivables Trust (Class A)
2.89% 09/17/07 ............ 326,240 326,367(i)
Chase Credit Card Master
Trust (Class A)
2.92% 07/15/10 ............ 200,000 200,455(i)
Chase Funding Mortgage Loan
Asset-Backed Certificates
3.10% 03/25/32 ............ 36,444 36,582(i)
Citibank Credit Card Issuance Trust
3.05% 12/17/07 ............ 200,000 200,070(i)
3.25% 03/07/08 ............ 227,000 227,610(i)
4.45% 04/07/10 ............ 62,000 61,642
Countrywide Asset-Backed
Certificates
2.90% 07/25/31 ............ 16,253 16,254(i)
2.95% 11/25/23 ............ 123,214 123,225(i)
3.11% 05/25/32 ............ 2,426 2,427(i)
PRINCIPAL
AMOUNT VALUE
Countrywide Home Equity Loan
Trust (Class A)
3.04% 07/15/27 ............ $ 85,113 $ 85,206(i)
Daimler Chrysler Auto Trust
(Class B)
2.85% 08/08/10 ............ 27,000 26,094
Federal National Mortgage Assoc.
3.95% 12/26/31 ............ 71,000 70,735
Fleet Credit Card Master Trust II
(Class A)
5.60% 12/15/08 ............ 400,000 407,352
Fleet Home Equity Loan Trust
(Class A)
3.10% 01/20/33 ............ 73,931 74,007(i)
Ford Credit Auto Owner Trust
(Class B)
3.88% 01/15/10 ............ 58,000 57,143
4.79% 11/15/06 ............ 113,000 113,526
Ford Credit Floorplan Master
Owner Trust (Class A)
2.85% 07/15/09 ............ 1,500,000 1,500,639(i)
Mid-State Trust
7.54% 07/01/35 ............ 13,936 14,686
Peco Energy Transition Trust
6.52% 12/31/10 ............ 46,000 49,911
Residential Asset Mortgage
Products, Inc.
3.09% 03/25/34 ............ 149,086 149,160(i)
Residential Asset Securities Corp.
3.10% 07/25/32 ............ 52,669 52,778(i)
Residential Asset Securities
Corp. (Class A)
4.16% 07/25/30 ............ 150,000 148,671(i)
Saxon Asset Securities Trust
(Class A)
3.05% 12/25/32 ............ 47,884 47,934(i)
Sears Credit Account Master
Trust (Class A)
2.94% 08/18/09 ............ 500,000 500,235(i)
Wells Fargo Home Equity Trust
3.97% 09/25/24 ............ 41,000 40,368(i)
5,610,770
CORPORATE NOTES -- 8.1%
Abbey National PLC
7.95% 10/26/29 ............ 90,000 115,003
Ainsworth Lumber Co. Ltd.
6.75% 03/15/14 ............ 175,000 164,062
Alberta Energy Co. Ltd.
7.38% 11/01/31 ............ 25,000 29,871
Allegiance Corp.
7.00% 10/15/26 ............ 35,000 38,170
Allied Waste North America
7.25% 03/15/15 ............ 190,000 180,500(b)
Allstate Financial Global Funding
5.25% 02/01/07 ............ 50,000 50,889(b)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
47
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Allstate Life Global Funding Trusts
3.85% 01/25/08 ............ $120,000 $ 118,084
Ameren Corp.
4.26% 05/15/07 ............ 35,000 34,889
America Movil S.A. de C.V.
5.75% 01/15/15 ............ 100,000 96,655
6.38% 03/01/35 ............ 90,000 81,308
American Electric Power Co. Inc.
(Series D)
5.25% 06/01/15 ............ 100,000 98,496
American Greetings
6.10% 08/01/28 ............ 30,000 31,275
Appalachian Power Co. (Series G)
3.60% 05/15/08 ............ 30,000 29,112
Assurant, Inc.
6.75% 02/15/34 ............ 60,000 65,158
AT&T Wireless Services Inc.
7.35% 03/01/06 ............ 70,000 72,194
8.75% 03/01/31 ............ 100,000 131,847
Banco Santander Chile
5.38% 12/09/14 ............ 95,000 94,138(b)
Bank of America Corp.
3.88% 01/15/08 ............ 60,000 59,229
Bank One Corp.
6.50% 02/01/06 ............ 160,000 163,523
Bavaria S.A.
8.88% 11/01/10 ............ 60,000 65,100(b)
BB&T Corp.
4.75% 10/01/12 ............ 45,000 44,183
BBVA Bancomer Capital Trust I
10.50% 02/16/11 ............ 100,000 104,500(b)
BellSouth Corp.
6.00% 11/15/34 ............ 85,000 84,739
Belo Corp.
8.00% 11/01/08 ............ 50,000 54,741
Boeing Co.
8.75% 08/15/21 ............ 50,000 67,309
British Aerospace Finance, Inc.
7.50% 07/01/27 ............ 50,000 58,481(b)
British Telecommunications PLC
8.38% 12/15/10 ............ 55,000 63,900
Burlington Northern
Santa Fe Corp.
8.13% 04/15/20 ............ 80,000 100,988
Campbell Soup Co.
5.50% 03/15/07 ............ 85,000 86,900
Carolina Power & Light Co.
5.15% 04/01/15 ............ 40,000 39,796
6.13% 09/15/33 ............ 40,000 42,110
Case New Holland, Inc.
6.00% 06/01/09 ............ 255,000 242,250(b)
Charter One Bank FSB
6.38% 05/15/12 ............ 50,000 53,938
Citigroup Inc.
5.00% 03/06/07 ............ 70,000 71,081
5.85% 12/11/34 ............ 130,000 132,388
6.63% 06/15/32 ............ 125,000 140,279
PRINCIPAL
AMOUNT VALUE
Clear Channel Communications, Inc.
4.63% 01/15/08 ............ $ 80,000 $ 79,474
CNA Financial Corp.
5.85% 12/15/14 ............ 120,000 119,168
CNF Inc.
6.70% 05/01/34 ............ 15,000 16,085
Comcast Cable Communications
Holdings Inc.
8.38% 03/15/13 ............ 50,000 59,467
9.46% 11/15/22 ............ 90,000 122,419
ConAgra Foods, Inc.
6.00% 09/15/06 ............ 80,000 82,085
Consolidated Natural Gas Co.
5.38% 11/01/06 ............ 170,000 172,828
Consumers Energy Co.
5.15% 02/15/17 ............ 60,000 58,211
Consumers Energy Co. (Series L)
5.00% 02/15/12 ............ 90,000 88,885
Countrywide Home Loans, Inc.
5.63% 05/15/07 ............ 85,000 86,920
COX Communications, Inc.
5.45% 12/15/14 ............ 90,000 87,616(b)
CSX Corp.
5.50% 08/01/13 ............ 90,000 91,717
CSX Transportation, Inc.
9.75% 06/15/20 ............ 8,000 11,022
DBS Bank Ltd.
5.00% 11/15/19 ............ 105,000 101,678(b)
Deutsche Telekom International
Finance BV
3.88% 07/22/08 ............ 295,000 288,750
5.25% 07/22/13 ............ 90,000 90,272
Dominion Resources, Inc.
(Series B)
4.13% 02/15/08 ............ 120,000 118,707
Dominion Resources, Inc.
(Series G)
3.66% 11/15/06 ............ 150,000 148,828
Duke Capital LLC
4.30% 05/18/06 ............ 55,000 55,082
4.33% 11/16/06 ............ 95,000 95,064
5.50% 03/01/14 ............ 55,000 55,022
6.25% 02/15/13 ............ 55,000 57,805
Duke Energy Corp.
4.50% 04/01/10 ............ 55,000 54,429
El Paso Production Holding Co.
7.75% 06/01/13 ............ 175,000 177,187
Empresa Nacional de
Electricidad S.A.
7.75% 07/15/08 ............ 45,000 47,951
Enterprise Products Operating LP
4.00% 10/15/07 ............ 120,000 117,483
EOP Operating LP (REIT)
7.75% 11/15/07 ............ 150,000 161,429
European Investment Bank
4.63% 03/01/07 ............ 20,000 20,240
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
48
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
FirstEnergy Corp. (Series B)
6.45% 11/15/11 ............ $150,000 $ 158,257
Flextronics International Ltd.
6.25% 11/15/14 ............ 260,000 247,000
Ford Motor Credit Co.
5.63% 10/01/08 ............ 35,000 33,612
5.80% 01/12/09 ............ 85,000 82,005
7.38% 02/01/11 ............ 275,000 275,016
FPL Group Capital Inc. (Series A)
4.09% 02/16/07 ............ 80,000 79,803
General Mills, Inc.
3.88% 11/30/07 ............ 85,000 83,849
5.13% 02/15/07 ............ 60,000 60,949
General Motors Acceptance Corp.
6.13% 09/15/06 ............ 80,000 79,342
6.88% 09/15/11 ............ 105,000 94,861
7.25% 03/02/11 ............ 25,000 23,162
8.00% 11/01/31 ............ 60,000 52,136
Georgia Power Co.
4.88% 07/15/07 ............ 115,000 116,226
Georgia-Pacific Corp.
8.13% 05/15/11 ............ 30,000 33,075
Goldman Sachs Group, Inc.
5.25% 10/15/13 ............ 210,000 209,373
6.60% 01/15/12 ............ 45,000 48,792
Goodrich Corp.
7.10% 11/15/27 ............ 55,000 62,652
GTE Corp.
6.94% 04/15/28 ............ 105,000 113,622
Halliburton Co.
8.75% 02/15/21 ............ 115,000 150,893
Hertz Corp.
6.35% 06/15/10 ............ 30,000 28,942
Household Finance Corp.
6.38% 11/27/12 ............ 60,000 64,622
6.50% 11/15/08 ............ 70,000 74,337
HSBC Bank USA NA
3.88% 09/15/09 ............ 155,000 149,967
HSBC Capital Funding LP
4.61% 12/29/49 ............ 95,000 90,242(b,i)
HSBC Capital Funding LP (Series 1)
9.55% 12/31/49 ............ 75,000 90,469(b,i)
HSBC Finance Corp.
6.75% 05/15/11 ............ 215,000 234,694
Huntington National Bank
2.75% 10/16/06 ............ 65,000 63,678
Hydro Quebec
8.25% 04/15/26 ............ 110,000 151,609
Intelsat Bermuda Ltd.
8.63% 01/15/15 ............ 170,000 173,400(b)
International Business
Machines Corp.
3.80% 02/01/08 ............ 60,000 59,225
iStar Financial Inc.
6.00% 12/15/10 ............ 85,000 86,606
7.00% 03/15/08 ............ 50,000 52,978
PRINCIPAL
AMOUNT VALUE
Jersey Central Power & Light
5.63% 05/01/16 ............ $ 50,000 $ 51,163
John Hancock Global Funding II
5.63% 06/27/06 ............ 115,000 117,047(b)
JPMorgan Chase Capital XV
(Series O)
5.88% 03/15/35 ............ 90,000 86,914
Kellogg Co. (Series B)
6.60% 04/01/11 ............ 140,000 151,911
Kerr-McGee Corp.
5.88% 09/15/06 ............ 60,000 61,085
KeySpan Corp.
5.80% 04/01/35 ............ 90,000 90,399
KFW International Finance
4.75% 01/24/07 ............ 345,000 350,399
Kinder Morgan Energy Partners LP
5.13% 11/15/14 ............ 70,000 68,087
Kinder Morgan, Inc.
6.50% 09/01/12 ............ 90,000 96,584
Kraft Foods Inc.
4.13% 11/12/09 ............ 175,000 170,222
Liberty Media Corp.
5.70% 05/15/13 ............ 175,000 164,957
Lockheed Martin Corp.
8.50% 12/01/29 ............ 30,000 40,349
Marsh & McLennan Companies Inc.
2.77% 07/13/07 ............ 1,000,000 995,267(i)
May Department Stores Co.
6.70% 07/15/34 ............ 70,000 72,171
Medco Health Solutions, Inc.
7.25% 08/15/13 ............ 90,000 99,482
Meritage Homes Corp.
6.25% 03/15/15 ............ 255,000 239,700(b)
MGM Mirage
5.88% 02/27/14 ............ 265,000 250,094
Midamerican Energy Holdings Co.
3.50% 05/15/08 ............ 60,000 57,714
Morgan Stanley
4.00% 01/15/10 ............ 205,000 197,353
4.25% 05/15/10 ............ 10,000 9,717
Motorola, Inc.
4.61% 11/16/07 ............ 55,000 55,143
Nationwide Mutual Insurance Co.
7.88% 04/01/33 ............ 30,000 36,087(b)
Navistar International Corp.
6.25% 03/01/12 ............ 265,000 251,750(b)
NB Capital Trust IV
8.25% 04/15/27 ............ 195,000 213,284
News America, Inc.
6.20% 12/15/34 ............ 70,000 69,214(b)
Nexstar Finance, Inc.
7.00% 01/15/14 ............ 175,000 165,375(b)
Noble Energy, Inc.
8.00% 04/01/27 ............ 85,000 106,692
Nordea Bank Sweden AB
5.25% 11/30/12 ............ 60,000 61,338(b)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
49
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Norfolk Southern Corp.
6.00% 04/30/08 ............ $ 55,000 $ 57,760
7.05% 05/01/37 ............ 110,000 127,374
Norfolk Southern Railway Co.
9.75% 06/15/20 ............ 12,000 16,703
Northeast Utilities (Series B)
3.30% 06/01/08 ............ 35,000 33,695
Northrop Grumman Corp.
4.08% 11/16/06 ............ 40,000 39,948
NorthWestern Corp.
5.88% 11/01/14 ............ 60,000 59,689(b)
Novelis Inc.
7.25% 02/15/15 ............ 170,000 166,600(b)
Ocean Energy, Inc.
4.38% 10/01/07 ............ 50,000 49,670
Ohio Power Co. (Series E)
6.60% 02/15/33 ............ 35,000 38,782
Pacific Gas & Electric Co.
6.05% 03/01/34 ............ 55,000 56,276
PanAmSat Corp.
9.00% 08/15/14 ............ 175,000 184,625
Pemex Finance Ltd.
9.03% 02/15/11 ............ 65,000 72,807
9.69% 08/15/09 ............ 153,000 168,928
Pemex Project Funding
Master Trust
7.38% 12/15/14 ............ 45,000 47,880
Pepco Holdings, Inc.
5.50% 08/15/07 ............ 80,000 81,366
Petrobras International
Finance Co.
9.75% 07/06/11 ............ 40,000 45,500
Pioneer Natural Resources Co.
6.50% 01/15/08 ............ 105,000 110,923
Principal Life Global Funding I
5.25% 01/15/13 ............ 90,000 91,515(b)
Procter & Gamble - ESOP
(Series A)
9.36% 01/01/21 ............ 125,000 161,882
Protective Life Secured Trust
4.00% 10/07/09 ............ 30,000 29,130
PSI Energy, Inc.
6.65% 06/15/06 ............ 75,000 76,959
Public Service Company of
New Mexico
4.40% 09/15/08 ............ 80,000 78,889
Puget Energy, Inc.
3.36% 06/01/08 ............ 35,000 33,782
Quest Diagnostics
6.75% 07/12/06 ............ 70,000 72,131
Rabobank Capital Funding Trust
5.25% 12/29/49 ............ 60,000 59,425(b,i)
Raytheon Co.
4.85% 01/15/11 ............ 60,000 59,827
6.40% 12/15/18 ............ 150,000 160,712
RBS Capital Trust I
5.51% 09/29/49 ............ 90,000 90,121(i)
PRINCIPAL
AMOUNT VALUE
Rogers Wireless
Communications, Inc.
7.50% 03/15/15 ............ $ 135,000 $ 139,387
Royal Bank of Canada
4.13% 01/26/10 ............ 50,000 48,938
Royal Bank of Scotland Group
PLC ADR
9.12% 03/31/49 ............ 35,000 41,366
SBC Communications Inc.
5.10% 09/15/14 ............ 75,000 73,113
Scottish Power PLC
4.91% 03/15/10 ............ 85,000 85,012
Shurgard Storage
Centers Inc. (REIT)
5.88% 03/15/13 ............ 20,000 20,389
Simon Property Group LP
4.88% 08/15/10 ............ 15,000 14,803
Sinclair Broadcast Group, Inc.
8.00% 03/15/12 ............ 175,000 178,500
SLM Corp.
4.00% 01/15/09 ............ 60,000 58,757
Southern California Edison Co.
8.00% 02/15/07 ............ 16,000 17,021
Sprint Capital Corp.
4.78% 08/17/06 ............ 145,000 145,892(k)
6.00% 01/15/07 ............ 90,000 92,245
6.13% 11/15/08 ............ 140,000 146,325
8.38% 03/15/12 ............ 165,000 192,899
8.75% 03/15/32 ............ 60,000 77,885
State of Illinois
4.95% 06/01/23 ............ 85,000 82,226
5.10% 06/01/33 ............ 60,000 57,257
Stewart Enterprises, Inc.
6.25% 02/15/13 ............ 190,000 184,300(b)
Telecom Italia Capital S.A.
(Series B)
5.25% 11/15/13 ............ 90,000 88,808
Telefonos de Mexico
S.A. de C.V.
4.50% 11/19/08 ............ 200,000 196,870
4.75% 01/27/10 ............ 115,000 112,241(b)
TELUS Corp.
7.50% 06/01/07 ............ 135,000 143,620
Tenet Healthcare Corp.
6.38% 12/01/11 ............ 170,000 156,825
Time Warner, Inc.
6.88% 05/01/12 ............ 10,000 10,930
9.13% 01/15/13 ............ 90,000 111,440
Toyota Motor Credit Corp.
2.89% 09/15/06 ............ 2,000,000 1,998,616(i)
TXU Electric Delivery Co.
6.38% 05/01/12 ............ 105,000 112,268
Tyco International Group S.A.
5.80% 08/01/06 ............ 110,000 112,217
Tyson Foods, Inc.
7.25% 10/01/06 ............ 65,000 67,756
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
50
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
UBS Preferred Funding Trust I
8.62% 10/29/49 ............ $ 55,000 $ 64,619(i)
Union Pacific Corp.
6.65% 01/15/11 ............ 40,000 43,479
Union Planters Bank NA
5.13% 06/15/07 ............ 30,000 30,540
United Rentals
North America, Inc.
7.75% 11/15/13 ............ 180,000 174,600
United Utilities PLC
6.45% 04/01/08 ............ 60,000 62,859
US Bank National Assoc.
2.85% 11/15/06 ............ 60,000 58,856
Valero Energy Corp.
6.88% 04/15/12 ............ 35,000 38,758
7.50% 04/15/32 ............ 25,000 30,132
Verizon
6.50% 09/15/11 ............ 60,000 64,900
Verizon Global Funding Corp.
7.75% 06/15/32 ............ 75,000 93,055
VTB Capital S.A.
4.43% 07/30/07 ............ 54,000 55,993(d,i)
Washington Mutual, Inc.
5.63% 01/15/07 ............ 30,000 30,688
Wells Fargo & Co.
5.25% 12/01/07 ............ 30,000 30,688
Westar Energy, Inc.
5.15% 01/01/17 ............ 40,000 39,149
Weyerhaeuser Co.
6.13% 03/15/07 ............ 40,000 41,182
Wisconsin Electric Power
3.50% 12/01/07 ............ 70,000 68,552
Wisconsin Energy Corp.
5.88% 04/01/06 ............ 39,000 39,720
Yara International ASA
5.25% 12/15/14 ............ 60,000 59,207(b)
21,495,584
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.5%
Bear Stearns Commercial
Mortgage Securities
3.88% 08/13/39 ............ 158,000 152,893
4.17% 01/12/41 ............ 50,000 49,289
4.68% 08/13/39 ............ 143,000 139,803
6.02% 02/14/31 ............ 150,000 157,078
Bear Stearns Commercial
Mortgage Securities (Class B)
6.20% 02/14/31 ............ 25,000 26,656
CalSTRS Trust
4.13% 11/20/12 ............ 167,000 165,857(b)
Crusade Global Trust (Class A)
3.23% 09/18/34 ............ 62,956 63,119(i)
CS First Boston Mortgage
Securities Corp.
4.60% 03/15/35 ............ 50,000 48,759
PRINCIPAL
AMOUNT VALUE
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 ............ $ 400,000 $ 420,067
First Union-Lehman Brothers-
Bank of America
6.56% 11/18/35 ............ 50,000 52,603
GMAC Commercial Mortgage
Securities, Inc. (Class A)
4.92% 12/10/41 ............ 161,000 157,905(i)
GMAC Commercial Mortgage
Securities, Inc. (Class X)
4.56% 12/10/41 ............ 2,399,000 76,837(d,i)
GMAC Commercial Mortgage
Securities, Inc.
7.00% 12/10/41 ............ 5,021,876 84,934(b,d,i)
6.42% 05/15/35 ............ 550,000 578,874
GS Mortgage Securities Corp. II
3.09% 11/15/15 ............ 300,000 300,264(b,i)
Impac CMB Trust (Class A)
3.08% 11/25/32 ............ 61,327 61,435(i)
3.23% 12/25/33 ............ 252,932 253,530(i)
JPMorgan Chase Commercial
Mortgage Securities Corp.
1.22% 01/12/39 ............ 1,365,000 67,442(b,i)
6.47% 11/15/35 ............ 71,000 76,850
JPMorgan Chase Commercial
Mortgage Securities Corp.
(Class A)
4.92% 10/15/37 ............ 98,000 97,048(i)
LB-UBS Commercial
Mortgage Trust
4.06% 09/15/27 ............ 158,000 154,397(i)
4.20% 12/15/29 ............ 83,000 81,473
4.38% 03/15/34 ............ 481,707 9,785(b,d,i)
4.49% 01/18/12 ............ 1,798,000 69,139(d)
4.51% 12/15/29 ............ 83,000 81,352
4.53% 01/15/36 ............ 580,856 43,201(b,d)
4.56% 07/15/37 ............ 3,078,000 55,789(b,d,i)
6.27% 02/15/40 ............ 1,401,511 31,096(b,d)
6.93% 12/15/39 ............ 1,262,537 22,838(b,d,i)
8.21% 09/15/37 ............ 1,156,244 18,428(b,d,i)
8.71% 03/15/36 ............ 1,453,667 39,067(b,d,i)
LB-UBS Commercial Mortgage
Trust (Class A)
4.31% 02/15/30 ............ 144,000 141,493
LB-UBS Commercial Mortgage
Trust (Class B)
6.65% 07/14/16 ............ 28,000 30,564(b)
Master Alternative Loans Trust
5.00% 08/25/18 ............ 101,547 13,677(g)
6.50% 08/25/34 - 01/25/35 . 320,368331,581
Morgan Stanley Capital I
5.17% 01/14/42 ............ 340,000 341,683(i)
7.11% 04/15/33 ............ 119,000 129,522
Morgan Stanley Capital I (Class A)
4.66% 09/13/45 ............ 350,000 340,490
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
51
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Morgan Stanley Capital I
(Class D)
6.58% 07/15/30 ............ $ 50,000 $ 54,800(i)
Morgan Stanley Dean Witter
Capital I
4.36% 10/15/35 ............ 886,000 24,873(b,d,i)
6.46% 02/15/33 ............ 50,000 52,127
7.07% 04/15/34 ............ 567,000 10,904(b,d,i)
7.20% 10/15/33 ............ 25,000 27,602
Morgan Stanley Dean Witter
Capital I (Class A)
6.39% 10/15/35 ............ 91,000 98,322
6.54% 02/15/31 ............ 100,000 105,314
Nomura Asset Securities Corp.
(Class A)
6.59% 03/15/30 ............ 246,000 260,284
Puma Finance Ltd. (Class A)
2.80% 10/11/34 ............ 104,780 104,785(i)
3.25% 03/25/34 ............ 170,309 170,411(i)
Structured Asset Securities Corp.
(Class X)
2.07% 02/25/28 ............ 130,007 6,825(i)
Wachovia Bank Commercial
Mortgage Trust
3.33% 03/15/15 ............ 89,351 89,534(b,i)
3.71% 03/15/15 ............ 100,000 100,423(b,i)
4.38% 10/15/41 ............ 141,000 139,022
Wachovia Bank Commercial
Mortgage Trust (Class B)
4.89% 10/15/41 ............ 134,000 130,849
4.95% 10/15/41 ............ 163,000 159,654
6,502,547
SOVEREIGN BONDS -- 0.4%
Government of Bahamas
6.63% 05/15/33 ............ 45,000 51,588(b)
Government of Brazil
11.00% 08/17/40 ............ 140,000 155,820
Government of Guatemala
10.25% 11/08/11 ............ 55,000 63,869(b)
Government of Italy
4.50% 01/21/15 ............ 45,000 43,677
Government of Jamaica
10.63% 06/20/17 ............ 55,000 58,025
Government of Mexico
6.75% 09/27/34 ............ 90,000 87,750
Government of Panama
7.25% 03/15/15 ............ 85,000 84,362
Government of Philippines
10.63% 03/16/25 ............ 60,000 64,200
Government of Russia
5.00% 03/31/30 ............ 215,000 220,912(b,k)
Government of Turkey
7.25% 03/15/15 ............ 80,000 78,200
PRINCIPAL
AMOUNT VALUE
Ontario Electricity
Financial Corp.
7.45% 03/31/13 ............ $ 35,000 $ 41,371
Province of New Brunswick
3.50% 10/23/07 ............ 90,000 88,531
Province of Ontario
5.13% 07/17/12 ............ 15,000 15,441
1,053,746
TOTAL BONDS AND NOTES
(COST $73,260,775) 72,325,614
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 2.0%
- --------------------------------------------------------------------------------
Financial Select Sector
SPDR Fund .................... 36,841 1,045,916
Industrial Select Sector
SPDR Fund .................... 140,740 4,282,718
TOTAL EXCHANGE TRADED FUNDS
(COST $4,800,089) ............ 5,328,634
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.1%
- --------------------------------------------------------------------------------
Zurich Regcaps Funding Trust I
(COST $123,900) .............. 120 121,788(b,i)
NUMBER OF
CONTRACTS VALUE
- --------------------------------------------------------------------------------
PURCHASED OPTIONS -- 0.0%*
- --------------------------------------------------------------------------------
CALL OPTIONS
U.S Treasury Notes 5Yrs. ........ 32 3,096
PUT OPTIONS
U.S Treasury Notes 5Yrs. ........ 32 13,096
TOTAL PURCHASED OPTIONS
(COST $16,192) ............... 16,192
TOTAL INVESTMENTS IN SECURITIES
(COST $250,717,244) .......... 271,162,495
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
52
March 31, 2005 (unaudited)
GE STRATEGIC INVESTMENT FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
SHORT-TERM INVESTMENTS -- 8.3%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.2%
GEI Short Term Investment Fund
2.70% ........................ 5,870,512 $ 5,870,512(d,l)
SHORT-TERM SECURITIES PURCHASED WITH COLLATERAL
FROM SECURITIES ON LOAN -- 6.1%
State Street Navigator Securities
Lending Prime Portfolio
2.78% ........................16,173,886 16,173,886(d,e)
TOTAL SHORT-TERM INVESTMENTS
(COST $22,044,398) ........... 22,044,398
TOTAL INVESTMENTS
(COST $272,761,642) .......... 293,206,893
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (10.5)% ............... (27,918,117)
------------
NET ASSETS-- 100.0% ............. $265,288,776
============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Strategic Investment Fund had the following written option contracts open
at March 31, 2005:
EXPIRATION DATE/ NUMBER OF
CALL OPTIONS STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
U.S Treasury Notes
5Yrs. (Written Option
Premium $6,904) April 2005/107.50 32 $(6,904)
EXPIRATION DATE/ NUMBER OF
PUT OPTIONS STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
U.S Treasury Notes
5Yrs. (Written Option
Premium $6,404) April 2005/106.50 32 $(6,404)
---------
$ (13,308)
=========
The GE Strategic Investment Fund had the following long futures contracts open
at March 31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
U.S. Treasury
Notes 5 Yrs. June 2005 40 $4,283,750 $ (18,773)
The GE Strategic Investment Fund had the following short futures contracts open
at March 31, 2005:
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
S&P 500 Index
Futures June 2005 4 $(1,183,900) $ 7,550
U.S. Treasury
Notes 10 Yrs. June 2005 8 (874,125) (6,461)
---------
$ (17,684)
=========
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
53
GE Government Securities Fund
Q&A
WILLIAM M. HEALEY IS A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT. HE IS
PORTFOLIO MANAGER OF GE GOVERNMENT SECURITIES FUND AND HAS SERVED ON THE FUND'S
PORTFOLIO MANAGEMENT TEAM SINCE JOINING GE ASSET MANAGEMENT IN 1996. PRIOR TO
JOINING GE ASSET MANAGEMENT, MR. HEALEY SPENT OVER 10 YEARS IN THE FIXED INCOME
GROUP AT METLIFE.
Q. HOW DID THE GE GOVERNMENT SECURITIES FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Government Securities
Fund returned 0.02% for Class A shares, (0.23)% for Class B shares, and
(0.22)% for Class C shares. The Lehman Brothers Government Bond Index, the
Fund's benchmark, returned 0.07% and the Fund's Lipper peer group of 86
Intermediate U.S. Government Funds returned an average of 0.03% for the same
period.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. Yield curve positioning, biased for a flattening of the yield curve, and
exposure to treasury inflation-indexed securities added positively to the
performance of the Fund. A moderate underweight in U.S. agency securities
resulted in a slight drag on the Fund's performance.
PICTURED TO THE RIGHT:
WILLIAM M. HEALEY
54
GE Government Securities Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.24 4.31
Class B 1,000.00 997.75 8.08
Class C 1,000.00 997.76 8.05
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.43 4.34
Class B 1,000.00 1,016.73 8.13
Class C 1,000.00 1,016.76 8.10
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.86% FOR CLASS
A, 1.62% FOR CLASS B, AND 1.61% FOR CLASS C, (FROM PERIOD OCTOBER 1, 2004 -
MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD,
MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 0.02% FOR CLASS A SHARES, (0.23)% FOR CLASS B SHARES, AND (0.22)%
FOR CLASS C SHARES.
55
GE Government Securities Fund
FIVE YEAR TREASURY NOTE
YIELD HISTORY
4/1/04 -- 3/31/05
High 4.33%
Low 2.84%
Average 3.64%
[Line chart omitted -- plot points are as follows:]
Date Yield
- --------------------------------------------------------------------------------
4/1/04 2.84%
4/2/04 3.14%
4/5/04 3.20%
4/6/04 3.14%
4/7/04 3.19%
4/8/04 3.22%
4/9/04 3.22%
4/12/04 3.26%
4/13/04 3.38%
4/14/04 3.42%
4/15/04 3.45%
4/16/04 3.37%
4/19/04 3.42%
4/20/04 3.52%
4/21/04 3.51%
4/22/04 3.46%
4/23/04 3.57%
4/26/04 3.56%
4/27/04 3.49%
4/28/04 3.62%
4/29/04 3.65%
4/30/04 3.62%
5/3/04 3.61%
5/4/04 3.67%
5/5/04 3.67%
5/6/04 3.70%
5/7/04 3.95%
5/10/04 3.94%
5/11/04 3.90%
5/12/04 3.94%
5/13/04 4.02%
5/14/04 3.90%
5/17/04 3.81%
5/18/04 3.86%
5/19/04 3.90%
5/20/04 3.84%
5/21/04 3.90%
5/24/04 3.88%
5/25/04 3.88%
5/26/04 3.79%
5/27/04 3.73%
5/28/04 3.79%
5/31/04 3.79%
6/1/04 3.84%
6/2/04 3.90%
6/3/04 3.87%
6/4/04 3.95%
6/7/04 3.92%
6/8/04 3.93%
6/9/04 3.98%
6/10/04 4.01%
6/11/04 4.06%
6/14/04 4.10%
6/15/04 3.90%
6/16/04 3.94%
6/17/04 3.91%
6/18/04 3.94%
6/21/04 3.90%
6/22/04 3.93%
6/23/04 3.90%
6/24/04 3.85%
6/25/04 3.83%
6/28/04 3.95%
6/29/04 3.90%
6/30/04 3.77%
7/1/04 3.73%
7/2/04 3.60%
7/5/04 3.60%
7/6/04 3.63%
7/7/04 3.63%
7/8/04 3.65%
7/9/04 3.63%
7/12/04 3.63%
7/13/04 3.65%
7/14/04 3.68%
7/15/04 3.68%
7/16/04 3.54%
7/19/04 3.56%
7/20/04 3.67%
7/21/04 3.70%
7/22/04 3.68%
7/23/04 3.67%
7/26/04 3.73%
7/27/04 3.84%
7/28/04 3.80%
7/29/04 3.79%
7/30/04 3.70%
8/2/04 3.67%
8/3/04 3.65%
8/4/04 3.64%
8/5/04 3.61%
8/6/04 3.39%
8/9/04 3.43%
8/10/04 3.50%
8/11/04 3.47%
8/12/04 3.48%
8/13/04 3.42%
8/16/04 3.45%
8/17/04 3.38%
8/18/04 3.42%
8/19/04 3.38%
8/20/04 3.41%
8/23/04 3.46%
8/24/04 3.45%
8/25/04 3.45%
8/26/04 3.41%
8/27/04 3.43%
8/30/04 3.38%
8/31/04 3.31%
9/1/04 3.30%
9/2/04 3.39%
9/3/04 3.49%
9/6/04 3.51%
9/7/04 3.46%
9/8/04 3.36%
9/9/04 3.41%
9/10/04 3.40%
9/13/04 3.36%
9/14/04 3.34%
9/15/04 3.38%
9/16/04 3.28%
9/17/04 3.33%
9/20/04 3.27%
9/21/04 3.28%
9/22/04 3.25%
9/23/04 3.30%
9/24/04 3.32%
9/27/04 3.27%
9/28/04 3.27%
9/29/04 3.36%
9/30/04 3.37%
10/1/04 3.43%
10/4/04 3.42%
10/5/04 3.42%
10/6/04 3.48%
10/7/04 3.53%
10/8/04 3.39%
10/11/04 3.39%
10/12/04 3.36%
10/13/04 3.31%
10/14/04 3.26%
10/15/04 3.31%
10/18/04 3.30%
10/19/04 3.30%
10/20/04 3.25%
10/21/04 3.28%
10/22/04 3.25%
10/25/04 3.24%
10/26/04 3.27%
10/27/04 3.35%
10/28/04 3.31%
10/29/04 3.28%
11/1/04 3.33%
11/2/04 3.31%
11/3/04 3.33%
11/4/04 3.35%
11/5/04 3.48%
11/8/04 3.52%
11/9/04 3.53%
11/10/04 3.56%
11/11/04 3.56%
11/12/04 3.51%
11/15/04 3.53%
11/16/04 3.55%
11/17/04 3.46%
11/18/04 3.47%
11/19/04 3.57%
11/22/04 3.56%
11/23/04 3.58%
11/24/04 3.63%
11/25/04 3.60%
11/26/04 3.63%
11/29/04 3.70%
11/30/04 3.69%
12/1/04 3.71%
12/2/04 3.75%
12/3/04 3.59%
12/6/04 3.58%
12/7/04 3.58%
12/8/04 3.49%
12/9/04 3.55%
12/10/04 3.53%
12/13/04 3.54%
12/14/04 3.52%
12/15/04 3.48%
12/16/04 3.57%
12/17/04 3.58%
12/20/04 3.57%
12/21/04 3.56%
12/22/04 3.56%
12/23/04 3.57%
12/24/04 3.57%
12/27/04 3.65%
12/28/04 3.65%
12/29/04 3.69%
12/30/04 3.63%
12/31/04 3.61%
1/3/05 3.62%
1/4/05 3.71%
1/5/05 3.72%
1/6/05 3.68%
1/7/05 3.72%
1/10/05 3.73%
1/11/05 3.71%
1/12/05 3.70%
1/13/05 3.65%
1/14/05 3.71%
1/17/05 3.71%
1/18/05 3.71%
1/19/05 3.70%
1/20/05 3.68%
1/21/05 3.64%
1/24/05 3.65%
1/25/05 3.71%
1/26/05 3.73%
1/27/05 3.76%
1/28/05 3.69%
1/31/05 3.70%
2/1/05 3.70%
2/2/05 3.72%
2/3/05 3.76%
2/4/05 3.67%
2/7/05 3.67%
2/8/05 3.66%
2/9/05 3.64%
2/10/05 3.66%
2/11/05 3.69%
2/14/05 3.69%
2/15/05 3.71%
2/16/05 3.78%
2/17/05 3.78%
2/18/05 3.87%
2/21/05 3.86%
2/22/05 3.87%
2/23/05 3.86%
2/24/05 3.90%
2/25/05 3.90%
2/28/05 4.01%
3/1/05 4.00%
3/2/05 4.00%
3/3/05 4.00%
3/4/05 3.96%
3/7/05 3.98%
3/8/05 4.05%
3/9/05 4.14%
3/10/05 4.14%
3/11/05 4.22%
3/14/05 4.19%
3/15/05 4.22%
3/16/05 4.17%
3/17/05 4.14%
3/18/05 4.17%
3/21/05 4.17%
3/22/05 4.31%
3/23/05 4.27%
3/24/05 4.32%
3/25/05 4.31%
3/28/05 4.33%
3/29/05 4.27%
3/30/05 4.25%
3/31/05 4.17%
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level of current income
consistent with safety of principal by investing at least 80% of its net assets
in U.S. Government securities under normal market conditions.
LIPPER PERFORMANCE COMPARISON
Intermediate U.S. Government
Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ------- ------ ------
Number of
Funds in
peer group: 86 86 72 38
- --------------------------------------------------------------------------------
Peer group
average annual
total return: 0.03% 0.02% 5.77% 6.06%
- --------------------------------------------------------------------------------
Lipper categories in peer group:
Intermediate U.S. Government
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES++
[Line chart omitted -- plot points are as follows:]
GE Government GE Government LB Government
Securities Fund Securities Fund w/load Bond Index
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,575.00 10,000.00
9/95 10,654.97 10,202.14 10,807.70
9/96 11,054.55 10,584.73 11,285.45
9/97 12,097.27 11,583.13 12,317.94
9/98 13,501.88 12,928.05 13,993.65
9/99 13,230.33 12,668.04 13,753.67
9/00 14,087.53 13,488.81 14,741.11
9/01 15,814.99 15,142.86 16,695.67
9/02 17,298.37 16,563.19 18,371.25
9/03 17,809.04 17,052.16 19,023.27
9/04 18,094.22 17,325.22 19,503.53
3/05 18,098.54 17,329.35 19,517.33
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- -------- -------
GE Government
Securities 0.02% -0.40% 5.91% 6.11%
GE Government
Securities
W/LOAD -4.23% -4.63% 4.99% 5.65%
MAXIMUM LOAD
OF 4.25%
LB Government
Bond Index 0.07% 0.11% 6.68% 6.92%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Government LB Government
Securities Fund Bond Index
- -------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,615.88 10,807.70
9/96 10,917.30 11,285.45
9/97 11,868.23 12,317.94
9/98 13,172.06 13,993.65
9/99 12,853.06 13,753.67
9/00 13,567.93 14,741.11
9/01 15,142.57 16,695.67
9/02 16,415.34 18,371.25
9/03 16,865.64 19,023.27
9/04 17,135.71 19,503.53
3/05 17,139.80 19,517.33
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- --------- ------- --------
GE Government
Securities -0.23% -1.11% 5.14% 5.53%
LB Government
Bond Index 0.07% 0.11% 6.68% 6.92%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Government LB Government
Securities Fund Bond Index
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 10,273.14 10,269.80
9/00 10,607.84 10,717.94
3/01 11,334.59 11,536.00
9/01 11,851.16 12,139.06
3/02 11,666.38 11,990.68
9/02 12,844.71 13,357.34
3/03 13,021.27 13,598.03
9/03 13,126.31 13,831.41
3/04 13,341.45 14,175.21
9/04 13,238.36 14,180.60
3/05 13,208.77 14,190.63
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- ------- ------- -----------
GE Government
Securities -0.22% -0.99% 5.16% 5.19%
LB Government
Bond Index 0.07% 0.11% 6.68% 6.57%
AN INVESTMENT IN THE GE GOVERNMENT SECURITIES FUND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
56
March 31, 2005 (unaudited)
GE GOVERNMENT SECURITIES FUND
Schedule of Investments
GE GOVERNMENT SECURITIES FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $208,873
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
U.S. Treasuries 46.4%
Federal Agencies 27.3%
Asset Backed & Others 19.6%
Mortgage Backed 6.0%
Corporate Notes 0.7%
PRINCIPAL
AMOUNT VALUE
BONDS AND NOTES -- 96.6%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 59.2%
U.S. Treasury Bonds
5.38% 02/15/31 ........... $5,780,000 $ 6,303,783(j)
7.13% 02/15/23 ........... 8,000,000 10,141,439
7.25% 05/15/16 ........... 1,245,000 1,527,229(h)
8.13% 08/15/19 - 08/15/21 6,750,000 9,097,710(h)
U.S. Treasury Inflation
Indexed Bonds
2.00% 01/15/14 ........... 3,354,000 3,432,618(p)
2.38% 01/15/25 ........... 758,715 816,150(p)
3.88% 04/15/29 ........... 289,985 398,956(p)
4.53% 04/15/10 ........... 1,157,544 1,132,587(d,p)
U.S. Treasury Notes
2.88% 11/30/06 ........... 11,095,000 10,943,775
3.00% 11/15/07 ........... 5,775,000 5,650,953
3.13% 05/15/07 ........... 2,945,000 2,903,387(j)
3.38% 09/15/09 ........... 1,000,000 969,330
3.50% 12/15/09 - 02/15/10 17,065,000 16,576,362(j)
3.88% 05/15/09 ........... 17,400,000 17,256,798(j)
4.00% 02/15/15 ........... 10,110,000 9,715,104(j)
96,866,181
FEDERAL AGENCIES -- 34.8%
Federal Farm Credit Bank
3.75% 01/15/09 ........... 835,000 819,498(j)
Federal Home Loan Bank
2.38% 02/15/06 ........... 6,815,000 6,740,192
2.63% 10/16/06 ........... 2,750,000 2,698,366(j)
3.75% 08/18/09 ........... 500,000 488,220(j)
Federal Home Loan Mortgage Corp.
2.88% 05/15/07 ........... 6,800,000 6,647,544(j)
PRINCIPAL
AMOUNT VALUE
3.00% 09/29/06 ...........$ 2,700,000 $ 2,662,405
3.63% 09/15/08 ........... 10,025,000 9,817,504
4.50% 01/15/14 ........... 6,035,000 5,906,611
4.63% 07/18/07 ........... 12,030,000 12,078,565
6.75% 03/15/31 ........... 3,300,000 4,023,095
Federal National Mortgage Assoc.
2.38% 07/15/05 ........... 5,025,000 5,081,044
56,963,044
AGENCY MORTGAGE BACKED -- 1.8%
Federal Home Loan Mortgage Corp.
6.50% 04/01/31 ........... 7,161 7,445
7.00% 12/01/26 ........... 1,024 1,082
7.00% 02/01/30 ........... 12,369 13,024
7.50% 02/01/07 - 04/01/12 758,654 797,297
9.00% 12/01/14 ........... 189,369 204,595
Federal National Mortgage Assoc.
7.00% 02/01/30 ........... 32,807 34,549
7.50% 12/01/23 ........... 149,747 161,050
9.00% 06/01/09 - 07/01/21 58,806 63,078
5.00% TBA ................ 1,000,000 999,062(c)
6.00% TBA ................ 100,000 102,187(c)
Government National
Mortgage Assoc.
8.50% 05/15/21 - 03/15/23 47,563 52,336
9.00% 07/15/16 ........... 389,192 429,573
2,865,278
ASSET BACKED -- 0.5%
Accredited Mortgage Loan
Trust (Class A)
3.15% 07/25/34 ........... 818,522 818,514(i)
NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS -- 0.3%
Morgan Stanley Dean Witter
Capital I (Class A)
6.54% 02/15/31 ........... 500,000 526,570
TOTAL BONDS AND NOTES
(COST $157,915,181) ......... 158,039,587
NUMBER OF
CONTRACTS VALUE
- --------------------------------------------------------------------------------
PURCHASED OPTIONS -- 0.0%*
- --------------------------------------------------------------------------------
CALL OPTIONS
U S Treasury Notes
5 Yr. Futures ............... 60 5,805
PUT OPTIONS
U S Treasury Notes
5 Yr. Futures ............... 60 24,555
TOTAL PURCHASED OPTIONS
(COST $30,360) .............. 30,360
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
57
March 31, 2005 (unaudited)
GE GOVERNMENT SECURITIES FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
SECURITIES PURCHASED WITH COLLATERAL FROM
SECURITIES ON LOAN -- 17.9%
- --------------------------------------------------------------------------------
ASSET BACKED -- 11.5%
American Express Credit Account
Master Trust (Class A)
2.85% 02/15/08 ........... $3,180,000 $ 3,180,490(i)
Bank One Issuance Trust (Class A)
2.84% 10/15/09 ........... 1,000,000 1,000,348(i)
Bear Stearns Asset Backed
Securities, Inc. (Class A)
3.22% 01/25/34 ........... 33,548 33,691(i)
Countrywide Home Equity Loan
Trust (Class A)
3.05% 05/15/28 ........... 2,400,368 2,402,083(i)
First USA Credit Card Master
Trust (Class A)
2.98% 05/17/10 ........... 1,000,000 1,003,115(i)
GMAC Mortgage Corp. Loan
Trust (Class A)
2.93% 06/25/34 ........... 500,000 500,168(i)
Long Beach Mortgage Loan Trust
3.12% 11/25/34 ........... 915,802 916,828(i)
MBNA Master Credit Card Trust
USA (Class A)
2.79% 12/17/07 ........... 1,550,000 1,549,961(i)
Option One Mortgage Loan Trust
(Class A)
3.27% 02/25/33 ........... 1,227,455 1,231,397(i)
Providian Gateway Master Trust
3.17% 07/15/11 ........... 800,000 805,307(b,i)
Residential Asset Mortgage
Products, Inc. (Class A)
3.15% 01/25/34 ........... 569,539 570,819(i)
Residential Asset Mortgage
Products, Inc.
2.96% 12/25/22 ........... 308,465 308,456(i)
3.18% 12/25/33 ........... 316,870 317,880(i)
Saxon Asset Securities Trust
3.08% 05/25/35 ........... 2,925,378 2,926,853(i)
Structured Asset Securities Corp.
3.05% 02/25/35 ........... 2,000,000 1,999,981(i)
18,747,377
CORPORATE NOTES -- 0.9%
Countrywide Home Loans, Inc.
3.21% 03/29/06 ........... 1,500,000 1,500,115(i)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 5.5%
Crusade Global Trust (Class A)
3.23% 09/18/34 ........... 1,012,768 1,015,386(i)
PRINCIPAL
AMOUNT VALUE
Granite Master Issuer PLC
3.13% 12/21/24 ........... $2,000,000 $ 2,000,000(i)
GS Mortgage Securities Corp. II
3.09% 11/15/15 ........... 250,000 250,220(b,i)
Impac CMB Trust
3.18% 08/25/33 ........... 2,853,453 2,860,282(i)
Impac CMB Trust (Class A)
3.23% 12/25/33 ........... 497,591 498,767(i)
Lehman Brothers Floating Rate
Commercial Mortgage Trust
2.98% 10/15/17 ........... 1,000,000 1,000,752(b,i)
Residential Accredit Loans, Inc.
3.15% 03/25/34 ........... 970,150 971,126(i)
Thornburg Mortgage Securities
Trust (Class A)
3.19% 04/25/43 ........... 494,792 495,825(i)
9,092,358
TOTAL SECURITIES PURCHASED WITH COLLATERAL
FROM SECURITIES ON LOAN
(COST $29,332,248) .......... 29,339,850
TOTAL INVESTMENTS IN SECURITIES
(COST $187,277,789) ......... 187,409,797
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 13.1%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.9%
GEI Short Term Investment Fund
2.70% ....................... 3,119,268 3,119,268(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 11.2%
GEI Short Term Investment Fund
2.70% ....................... 18,343,981 18,343,981(d,l)
TOTAL SHORT-TERM INVESTMENTS
(COST $21,463,249) .......... 21,463,249
TOTAL INVESTMENTS
(COST $208,741,038) ......... 208,873,046
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (27.6)% .............. (45,265,151)
------------
NET ASSETS-- 100.0% ............ $163,607,895
============
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
58
March 31, 2005 (unaudited)
GE GOVERNMENT SECURITIES FUND
Schedule of Investments
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Government Securities Fund had the following written option contracts
open at March 31, 2005:
EXPIRATION DATE/ NUMBER OF
CALL OPTIONS STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
U S Treasury Notes
5 Yr. Futures
(Written Option
Premium
$12,945) April 2005/107.50 60 $(12,945)
EXPIRATION DATE/ NUMBER OF
PUT OPTIONS STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
U S Treasury Notes
5 Yr. Futures
(Written Option
Premium $12,008) April 2005/ 106.50 60 $(12,008)
--------
$(24,953)
========
The GE Government Securities Fund had the following long futures contracts open
at March 31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
U S Treasury
Notes 5 Yrs. June 2005 60 $6,425,625 $(28,160)
The GE Government Securities Fund had the following short futures contracts open
at March 31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
U S Treasury
Notes 10 Yrs.June 2005 67 $(7,320,797) $(44,086)
--------
$(72,246)
========
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
59
GE Short-Term Government Fund
Q&A
PAUL M. COLONNA IS A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT. HE OVERSEES A
PORTION OF THE FIXED INCOME INVESTMENTS FOR GE ASSET MANAGEMENT. HE IS PORTFOLIO
MANAGER OF GE SHORT-TERM GOVERNMENT FUND AND HAS SERVED ON THE FUND'S PORTFOLIO
MANAGEMENT TEAM SINCE JOINING GE ASSET MANAGEMENT IN 2000. SEE PAGE 38 FOR
PAUL'S BIOGRAPHICAL INFORMATION.
Q. HOW DID THE GE SHORT-TERM GOVERNMENT FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Short-Term Government
Fund returned (0.20)% for Class A shares, (0.50)% for Class B shares,
(0.58)% for Class C shares, and (0.08)% for Class Y shares. The Fund's
benchmark, Lehman Brothers 1-3 Year Government Bond Index returned (0.20)%
and the Lipper peer group of 86 Short-Term U.S. Government Funds returned an
average of (0.11)% for the same period.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. The largest driver of return was the Fund's position in mortgage-backed
securities. The higher yield provided by these holdings relative to U.S.
Treasury and agency debt securities helped cushion the overall negative
price return resulting from interest rates moving higher. An underweight in
U.S. agency debt relative to the index produced a slight drag on Fund
performance.
PICTURED TO THE RIGHT:
PAUL M. COLONNA
60
GE Short-Term Government Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 997.99 3.83
Class B 1,000.00 994.97 6.81
Class C 1,000.00 994.22 7.56
Class Y 1,000.00 999.16 2.58
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.89 3.87
Class B 1,000.00 1,017.95 6.88
Class C 1,000.00 1,017.21 7.64
Class Y 1,000.00 1,022.11 2.61
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.77% FOR CLASS
A, 1.37% FOR CLASS B, 1.52% FOR CLASS C, AND 0.52% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: (0.20)% FOR CLASS A SHARES, (0.50)% FOR CLASS B SHARES, (0.58)% FOR
CLASS C SHARES, AND (0.08)% FOR CLASS Y SHARES.
61
GE Short-Term Government Fund
TWO YEAR TREASURY NOTE
YIELD HISTORY
4/1/04 -- 3/31/05
[Line chart omitted -- plot points are as follows:]
High 3.87%
Low 1.62%
Average 2.80%
Date Yield
- --------------------------------------------------------------------------------
4/1/04 1.62%
4/2/04 1.85%
4/5/04 1.88%
4/6/04 1.84%
4/7/04 1.84%
4/8/04 1.86%
4/9/04 1.86%
4/12/04 1.89%
4/13/04 1.99%
4/14/04 2.08%
4/15/04 2.06%
4/16/04 1.99%
4/19/04 2.04%
4/20/04 2.16%
4/21/04 2.17%
4/22/04 2.12%
4/23/04 2.24%
4/26/04 2.23%
4/27/04 2.15%
4/28/04 2.25%
4/29/04 2.35%
4/30/04 2.32%
5/3/04 2.31%
5/4/04 2.33%
5/5/04 2.33%
5/6/04 2.38%
5/7/04 2.62%
5/10/04 2.59%
5/11/04 2.57%
5/12/04 2.59%
5/13/04 2.66%
5/14/04 2.53%
5/17/04 2.47%
5/18/04 2.52%
5/19/04 2.56%
5/20/04 2.50%
5/21/04 2.55%
5/24/04 2.53%
5/25/04 2.54%
5/26/04 2.45%
5/27/04 2.46%
5/28/04 2.54%
5/31/04 2.54%
6/1/04 2.59%
6/2/04 2.64%
6/3/04 2.62%
6/4/04 2.69%
6/7/04 2.66%
6/8/04 2.69%
6/9/04 2.77%
6/10/04 2.80%
6/11/04 2.81%
6/14/04 2.93%
6/15/04 2.75%
6/16/04 2.79%
6/17/04 2.76%
6/18/04 2.79%
6/21/04 2.75%
6/22/04 2.76%
6/23/04 2.73%
6/24/04 2.75%
6/25/04 2.74%
6/28/04 2.86%
6/29/04 2.82%
6/30/04 2.68%
7/1/04 2.64%
7/2/04 2.53%
7/5/04 2.53%
7/6/04 2.54%
7/7/04 2.54%
7/8/04 2.52%
7/9/04 2.52%
7/12/04 2.52%
7/13/04 2.56%
7/14/04 2.59%
7/15/04 2.61%
7/16/04 2.50%
7/19/04 2.52%
7/20/04 2.62%
7/21/04 2.66%
7/22/04 2.65%
7/23/04 2.65%
7/26/04 2.71%
7/27/04 2.80%
7/28/04 2.74%
7/29/04 2.75%
7/30/04 2.68%
8/2/04 2.65%
8/3/04 2.64%
8/4/04 2.65%
8/5/04 2.65%
8/6/04 2.39%
8/9/04 2.44%
8/10/04 2.53%
8/11/04 2.50%
8/12/04 2.50%
8/13/04 2.46%
8/16/04 2.48%
8/17/04 2.40%
8/18/04 2.43%
8/19/04 2.38%
8/20/04 2.44%
8/23/04 2.47%
8/24/04 2.45%
8/25/04 2.47%
8/26/04 2.48%
8/27/04 2.48%
8/30/04 2.46%
8/31/04 2.40%
9/1/04 2.39%
9/2/04 2.46%
9/3/04 2.58%
9/6/04 2.59%
9/7/04 2.55%
9/8/04 2.47%
9/9/04 2.49%
9/10/04 2.49%
9/13/04 2.47%
9/14/04 2.44%
9/15/04 2.48%
9/16/04 2.41%
9/17/04 2.48%
9/20/04 2.43%
9/21/04 2.46%
9/22/04 2.46%
9/23/04 2.52%
9/24/04 2.57%
9/27/04 2.54%
9/28/04 2.52%
9/29/04 2.60%
9/30/04 2.61%
10/1/04 2.63%
10/4/04 2.64%
10/5/04 2.63%
10/6/04 2.69%
10/7/04 2.69%
10/8/04 2.59%
10/11/04 2.59%
10/12/04 2.55%
10/13/04 2.50%
10/14/04 2.47%
10/15/04 2.52%
10/18/04 2.51%
10/19/04 2.55%
10/20/04 2.50%
10/21/04 2.55%
10/22/04 2.52%
10/25/04 2.51%
10/26/04 2.53%
10/27/04 2.59%
10/28/04 2.58%
10/29/04 2.55%
11/1/04 2.59%
11/2/04 2.57%
11/3/04 2.59%
11/4/04 2.63%
11/5/04 2.77%
11/8/04 2.81%
11/9/04 2.82%
11/10/04 2.84%
11/11/04 2.85%
11/12/04 2.82%
11/15/04 2.87%
11/16/04 2.89%
11/17/04 2.81%
11/18/04 2.84%
11/19/04 2.92%
11/22/04 2.95%
11/23/04 2.96%
11/24/04 3.03%
11/25/04 3.02%
11/26/04 3.03%
11/29/04 3.06%
11/30/04 3.00%
12/1/04 3.01%
12/2/04 3.04%
12/3/04 2.92%
12/6/04 2.91%
12/7/04 2.94%
12/8/04 2.90%
12/9/04 2.93%
12/10/04 2.94%
12/13/04 2.96%
12/14/04 2.96%
12/15/04 2.94%
12/16/04 2.99%
12/17/04 3.00%
12/20/04 3.03%
12/21/04 3.03%
12/22/04 3.00%
12/23/04 3.01%
12/24/04 3.00%
12/27/04 3.06%
12/28/04 3.07%
12/29/04 3.11%
12/30/04 3.09%
12/31/04 3.07%
1/3/05 3.09%
1/4/05 3.20%
1/5/05 3.21%
1/6/05 3.16%
1/7/05 3.19%
1/10/05 3.22%
1/11/05 3.21%
1/12/05 3.21%
1/13/05 3.18%
1/14/05 3.23%
1/17/05 3.23%
1/18/05 3.23%
1/19/05 3.22%
1/20/05 3.19%
1/21/05 3.15%
1/24/05 3.19%
1/25/05 3.21%
1/26/05 3.26%
1/27/05 3.28%
1/28/05 3.26%
1/31/05 3.28%
2/1/05 3.28%
2/2/05 3.32%
2/3/05 3.34%
2/4/05 3.29%
2/7/05 3.30%
2/8/05 3.31%
2/9/05 3.24%
2/10/05 3.29%
2/11/05 3.33%
2/14/05 3.35%
2/15/05 3.35%
2/16/05 3.40%
2/17/05 3.36%
2/18/05 3.44%
2/21/05 3.43%
2/22/05 3.43%
2/23/05 3.44%
2/24/05 3.48%
2/25/05 3.53%
2/28/05 3.60%
3/1/05 3.58%
3/2/05 3.56%
3/3/05 3.57%
3/4/05 3.56%
3/7/05 3.59%
3/8/05 3.62%
3/9/05 3.66%
3/10/05 3.67%
3/11/05 3.72%
3/14/05 3.73%
3/15/05 3.74%
3/16/05 3.71%
3/17/05 3.67%
3/18/05 3.70%
3/21/05 3.72%
3/22/05 3.83%
3/23/05 3.82%
3/24/05 3.85%
3/25/05 3.86%
3/28/05 3.87%
3/29/05 3.84%
3/30/05 3.83%
3/31/05 3.78%
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level of income consistent
with prudent investment management and the preservation of capital by investing
at least 80% of its net assets in U.S. Government securities under normal
market conditions.
LIPPER PERFORMANCE COMPARISON
Short Term U.S. Government Bond
Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- -------- --------
Number of
Funds in
peer group: 86 85 65 51
- --------------------------------------------------------------------------------
Peer group
average annual
total return: -0.11% -0.43% 4.11% 4.73%
- --------------------------------------------------------------------------------
Lipper categories in peer group:
Short Term U.S. Government Bond
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE Short-Term GE Short-Term
Government Fund Government Fund w/load LB 1-3 Yr.
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,750.00 10,000.00
9/95 10,455.79 10,194.39 10,470.55
9/96 10,976.31 10,701.90 11,063.61
9/97 11,697.07 11,404.64 11,824.85
9/98 12,557.61 12,243.67 12,762.06
9/99 12,874.09 12,552.24 13,169.66
9/00 13,603.39 13,263.30 13,939.54
9/01 14,977.81 14,603.37 15,426.80
9/02 15,824.62 15,429.01 16,330.26
9/03 16,163.21 15,759.13 16,787.39
9/04 16,309.66 15,901.92 16,983.49
3/05 16,276.95 15,870.03 16,950.31
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ---------- --------- -------
GE Short-Term
Government -0.20% -0.63% 4.48% 4.99%
GE Short-Term
Government
W/LOAD -2.70% -3.12% 3.95% 4.73%
MAXIMUM LOAD
OF 2.50%
LB 1-3 Yr. -0.20% -0.27% 4.80% 5.42%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Short-Term
Government Fund LB 1-3 Yr.
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,424.79 10,470.55
9/96 10,878.80 11,063.61
9/97 11,514.34 11,824.85
9/98 12,300.61 12,762.06
9/99 12,535.44 13,169.66
9/00 13,156.53 13,939.54
9/01 14,463.01 15,426.80
9/02 15,280.71 16,330.26
9/03 15,607.67 16,787.39
9/04 15,749.08 16,983.49
3/05 15,717.50 16,950.31
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- --------- --------- -------
GE Short-Term
Government -0.50% -1.24% 3.84% 4.61%
LB 1-3 Yr. -0.20% -0.27% 4.80% 5.42%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Short-Term
Government Fund LB 1-3 Yr.
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 10,119.38 10,182.44
9/00 10,479.79 10,584.58
3/01 10,968.91 11,181.68
9/01 11,463.27 11,713.89
3/02 11,540.70 11,807.51
9/02 12,011.47 12,399.91
3/03 12,112.16 12,598.94
9/03 12,175.89 12,747.01
3/04 12,293.32 12,906.18
9/04 12,192.79 12,895.92
3/05 12,122.30 12,870.72
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
---------- --------- --------- -----------
GE Short-Term
Government -0.58% -1.39% 3.68% 3.56%
LB 1-3 Yr. -0.20% -0.27% 4.80% 4.70%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Short-Term
Government Fund LB 1-3 Yr.
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,468.66 10,470.55
9/96 11,017.25 11,063.61
9/97 11,770.07 11,824.85
9/98 12,670.10 12,762.06
9/99 13,033.01 13,169.66
9/00 13,792.00 13,939.54
9/01 15,187.03 15,426.80
9/02 16,086.89 16,330.26
9/03 16,473.48 16,787.39
9/04 16,681.05 16,983.49
3/05 16,666.98 16,950.31
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- -------- -------
GE Short-Term
Government -0.08% -0.21% 4.69% 5.24%
LB 1-3 Yr. -0.20% -0.27% 4.80% 5.42%
AN INVESTMENT IN THE GE SHORT-TERM GOVERNMENT FUND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
62
March 31, 2005 (unaudited)
GE SHORT-TERM GOVERNMENT FUND
Schedule of Investments
GE SHORT-TERM GOVERNMENT FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $84,273
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Agency Mortgage Backed 23.3%
Agency Collateralized Mortgage Obligations 22.0%
U.S. Treasuries 21.7%
Asset Backed 16.7%
Short-Term Investments 12.0%
Non-Agency Collateralized Mortgage Obligations 3.4%
Corporate Notes 0.7%
Federal Agencies 0.2%
PRINCIPAL
AMOUNT VALUE
BONDS AND NOTES -- 91.2%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 28.0%
U.S. Treasury Notes
2.88% 11/30/06 ........... $4,715,000 $ 4,650,735(j)
3.13% 05/15/07 ........... 6,000,000 5,915,220(j)
3.38% 09/15/09 ........... 8,000,000 7,754,640(j)
18,320,595
FEDERAL AGENCIES -- 0.3%
Federal Home Loan Bank
2.50% 12/15/05 ........... 200,000 198,571
AGENCY MORTGAGE BACKED -- 30.0%
Federal Home Loan Mortgage Corp.
6.00% 12/01/08 - 09/01/19 265,821 275,086(h)
6.50% 05/01/13 ........... 127,143 132,555
7.00% 02/01/12 - 11/01/33 369,726 389,024
7.50% 01/01/27 - 08/01/30 274,923 293,925
8.00% 04/01/23 ........... 67,102 71,786
8.50% 01/01/09 - 11/01/20 456,208 482,759
8.75% 08/01/08 ........... 78,322 81,177
Federal National Mortgage Assoc.
3.30% 07/01/33 ........... 299,510 299,351(i)
3.35% 06/01/33 ........... 238,960 243,034(i)
3.79% 06/01/33 ........... 386,213 391,388(i)
4.06% 06/01/33 ........... 222,176 220,787(i)
4.12% 06/01/33 ........... 612,086 609,599(i)
4.13% 07/01/33 ........... 981,512 975,684(i)
4.29% 05/01/33 ........... 912,291 911,436(i)
4.60% 12/01/32 ........... 294,706 297,365(i)
PRINCIPAL
AMOUNT VALUE
6.00% 12/01/19 - 11/01/33 $ 924,765 $ 953,994
6.50% 05/01/17 - 05/01/33 977,053 1,018,391
7.00% 03/01/17 - 06/01/34 1,383,490 1,455,200
7.50% 06/01/11 - 05/01/34 4,003,219 4,274,369
8.00% 03/01/22 - 01/01/34 514,314 555,798
8.50% 02/01/18 - 10/01/33 880,269 956,914
9.00% 08/01/10 - 09/01/31 1,270,342 1,383,534
9.50% 09/01/21 ........... 168,108 186,146
9.75% 02/01/21 ........... 195,302 217,067
Government National
Mortgage Assoc.
6.50% 09/15/16 - 04/15/34 823,916 863,022
7.00% 12/15/18 - 05/15/32 635,357 671,962
7.50% 02/15/09 - 01/15/25 783,923 825,973
8.00% 07/15/17 ........... 147,698 159,574
9.00% 08/15/09 - 12/15/09 345,954 364,430
9.50% 12/15/09 ........... 26,887 28,561
19,589,891
AGENCY COLLATERALIZED MORTGAGE OBLIGATION -- 28.4%
Federal Home Loan
Mortgage Corp.
2.00% 07/15/06 ........... 2 2(g)
3.25% 07/15/23 ........... 1,171,005 1,149,049
5.00% 11/15/12 - 12/15/20 2,822,141 1,567,730(g)
6.00% 04/29/35 ........... 3,000,000 3,084,727
6.50% 02/15/14 ........... 1,480,841 207,318(g)
8.00% 01/15/34 ........... 581,130 594,297
Federal National
Mortgage Assoc.
1.41% 07/25/44 ........... 8,372,055 282,557(g)
2.22% 06/25/43 ........... 13,794,439 646,614(g,i)
2.57% 12/25/42 ........... 1,172,725 1,165,762
3.28% 10/25/42 ........... 578,496 576,508
3.46% 06/25/43 ........... 1,348,208 1,340,203
4.50% 07/25/33 ........... 1,004,919 1,007,087
5.17% 02/25/44 ........... 1,543,844 1,549,633
6.00% 08/25/28 - 01/25/34 4,130,562 4,235,654
15.88% 05/25/18 ........... 31,834,688 86,571(d,g,i)
Federal National
Mortgage REMIC
4.00% 08/15/29 ........... 1,068,120 1,059,942
18,553,654
ASSET BACKED -- 4.5%
Citibank Credit Card Issuance Trust
6.65% 05/15/08 ........... 2,500,000 2,568,825
World Omni Auto Receivables
Trust (Class B)
2.35% 09/15/09 ........... 371,680 366,725
2,935,550
TOTAL BONDS AND NOTES
(COST $62,046,251) .......... 59,598,261
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
63
March 31, 2005 (unaudited)
GE SHORT-TERM GOVERNMENT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
SECURITIES PURCHASED WITH COLLATERAL FROM
SECURITIES ON LOAN -- 22.2%
- --------------------------------------------------------------------------------
ASSET BACKED -- 17.0%
American Express Credit Account
Master Trust (Class A)
2.85% 02/15/08 ........... $ 910,000 $ 910,140(i)
Centex Home Equity
3.10% 06/25/34 ........... 1,414,025 1,416,080(i)
Ford Credit Floorplan Master
Owner Trust (Class A)
2.85% 07/15/09 ........... 3,000,000 3,001,279(i)
GMAC Mortgage Corp. Loan
Trust (Class A)
2.93% 06/25/34 ........... 250,000 250,084(i)
Residential Asset Mortgage
Products, Inc.
2.96% 12/25/22 ........... 123,386 123,383(i)
Saxon Asset Securities Trust
3.08% 05/25/35 ........... 2,925,378 2,926,853(i)
Sears Credit Account Master
Trust (Class A)
3.19% 11/17/09 ........... 500,000 501,217(i)
Structured Asset Securities Corp.
3.05% 02/25/35 ........... 2,000,000 1,999,981(i)
11,129,017
CORPORATE NOTES -- 0.9%
International Lease Finance Corp.
3.96% 07/15/05 ........... 600,000 602,111(i)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 4.3%
Granite Master Issuer PLC
3.13% 12/21/24 ........... 2,000,000 2,000,000(i)
Residential Accredit Loans, Inc.
3.15% 03/25/34 ........... 401,919 402,324(i)
Crusade Global Trust (Class A)
3.23% 09/18/34 ........... 426,457 427,560(i)
2,829,884
TOTAL SECURITIES PURCHASED WITH COLLATERAL
FROM SECURITIES ON LOAN
(COST $14,553,255) .......... 14,561,012
TOTAL INVESTMENTS IN SECURITIES
(COST $76,599,506) .......... 74,159,273
NUMBER
OF SHARES VALUE
SHORT-TERM INVESTMENTS -- 15.5%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.1%
GEI Short Term Investment Fund
2.70% ....................... 5,912,914 $ 5,912,914(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 6.4%
GEI Short Term Investment Fund
2.70% ....................... 4,200,613 4,200,613(d,l)
TOTAL SHORT-TERM INVESTMENTS
(COST $10,113,527) .......... 10,113,527
TOTAL INVESTMENTS
(COST $86,713,033) .......... 84,272,800
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (28.9)% .............. (18,904,996)
------------
NET ASSETS-- 100.0% ............ $65,367,804
===========
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
64
GE Tax-Exempt Fund
Q&A
MICHAEL J. CAUFIELD IS A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT.
HE IS PORTFOLIO MANAGER OF THE GE TAX EXEMPT FUND AND HAS SERVED IN THAT
CAPACITY SINCE OCTOBER 1, 2000. MR. CAUFIELD JOINED GE ASSET MANAGEMENT IN 1987
AS VICE PRESIDENT, MANAGER OF FIXED INCOME RESEARCH & ANALYSIS AND WAS PROMOTED
TO SENIOR VICE PRESIDENT IN 1994. PRIOR TO JOINING GEAM, MIKE WAS VICE PRESIDENT
AND DIRECTOR OF TAX EXEMPT UNIT INVESTMENT TRUST RESEARCH AT E.F. HUTTON &
COMPANY FOR FIVE YEARS AND A CREDIT ANALYST AT MOODY'S INVESTOR SERVICE AND DUN
& BRADSTREET FOR FIVE YEARS. MIKE RECEIVED HIS BACHELOR OF SCIENCE IN FINANCE
FROM FORDHAM UNIVERSITY.
Q. HOW DID THE GE TAX-EXEMPT FUND PERFORM COMPARED TO ITS BENCHMARK AND LIPPER
PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Tax-Exempt Fund
returned (0.57)% for Class A shares, (0.94)% for Class B shares, (0.94)% for
Class C shares, and (0.41)% for Class Y shares. The Lipper Intermediate
Municipal Debt Funds Index, comprised of 156 Bond Funds returned an average
of (0.20)%. The Fund's benchmark, Lehman Brothers 10-year Municipal Index
returned 0.15% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. Against a backdrop of continued tightening of the Federal Reserve's
short-term interest rate targets, economic expansion without core inflation,
and accelerating energy price increases, the yield curve flattened with
long-term rates in a relatively tight range and ended the first quarter of
2005 a few basis points from where they began it. The front end of the curve
absorbed the brunt of the yield curve activity as yields rose between 58
basis points and 37 basis points in five and ten years, respectively. Heavy
new issue supply was also a factor in the first quarter of 2005 as
municipalities sold over $97 billion in debt. Approximately 47% of new issue
debt fell in maturities inside of ten years, weakening liquidity and
subsequently impacting prices. The Fund's concentration in that portion of
the curve detracted from relative performance.
Q. WHAT INVESTMENT STRATEGIES AND TECHNIQUES EMPLOYED BY THE FUND IMPACTED
PERFORMANCE?
A. The portfolio's move towards a neutral duration has been a key contributor
to portfolio performance. While portfolio construction is driven by
long-term focus and has provided some protection from rising rates, the
range bound nature of the market over the last two quarters has delayed a
higher interest rate scenario, contributing to the Fund's underperformance.
The Fund's emphasis on tax-exempt income has limited its participation on a
total return basis.
Q. WHICH PARTICULAR SECTORS SIGNIFICANTLY CONTRIBUTED TO THE FUND'S
PERFORMANCE?
A. Pre-refunded bonds, which comprise the income core of the portfolio, have
historically provided strong income and low volatility to the Fund yet
continue to limit portfolio total return. Curve placement in the Fund, was
also a negative, as overweight to the 5-7 year sector, which backed-up
significantly in the first quarter of 2005, was a key driver for returns.
Lower rated credits in the Index have enhanced benchmark returns over the
last six months as investors drove spreads tighter in search for higher
yields. The high yield bond sector in the Index, buoyed by a significant
recovery by
PICTURED TO THE LEFT:
MICHAEL J. CAUFIELD
65
GE Tax-Exempt Fund
Q&A
tobacco debt, was the best performing sector in the Index.
The Fund has avoided the Tobacco sector and while this sector greatly
enhanced Index returns over the last year, longer-term results have been
highly volatile. Revenue bonds continued to be a strong contributor to the
Fund returns, specifically the Healthcare sector. Bond selection in this
category, in which we carry 8% overweight relative to the Index, remained a
positive contributor.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK?
A. Market underperformance can be attributed to the Fund's neutral duration
profile and intermediate curve overweight as well as its high quality
composition. While interest rates have backed-up in the last quarter the
measured pace adopted by the Fed has kept the market range bound. As a
result a large part of market returns have been generated by technical
trading activity and not fundamentals. As a result, the Fund, positioned for
a sustained period of higher rates failed to participate. Lower quality
bonds continued to be the best performing sector and the Fund, with an
average credit rating of AA, had little exposure to this highly volatile
sector.
Overall, the Fund has established a consistent long-term record, while
maintaining its investment discipline. While the Fund's objective is to
exceed market and peer performance benchmarks, we continue to emphasize the
maximization of tax-exempt income, which is paramount in our investment
process. Capital gains have been managed and no distributions of taxable
income have been distributed to shareholders over the last two years. The
Fund achieves above average income levels without the use of tobacco bonds,
distressed airline debt, derivatives or bonds subject to the alternative
minimum tax, which many peers utilize.
66
GE Tax-Exempt Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 994.32 4.37
Class B 1,000.00 990.61 8.10
Class C 1,000.00 990.61 8.10
Class Y 1,000.00 995.88 3.07
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.37 4.40
Class B 1,000.00 1,016.70 8.16
Class C 1,000.00 1,016.70 8.16
Class Y 1,000.00 1,021.64 3.09
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.87% FOR CLASS
A, 1.62% FOR CLASS B, 1.62% FOR CLASS C, AND 0.61% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: (0.57)% FOR CLASS A SHARES, (0.94)% FOR CLASS B SHARES, (0.94)% FOR
CLASS C SHARES, AND (0.41)% FOR CLASS Y SHARES.
67
GE Tax-Exempt Fund
QUALITY RATINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
Moody's/S&P/ Percentage of
Fitch Rating* Market Value
- --------------------------------------------------------------------------------
Aaa/AAA 78.91%
Aa/AA 9.79%
A/A 8.55%
Below A 2.75%
- --------------------------------------------------------------------------------
100.00%
INVESTMENT PROFILE
A mutual fund designed for investors who seek as high a
level of income exempt from Federal income taxation as is consistent with
preservation of capital by investing primarily in investment-grade municipal
securities.
LIPPER PERFORMANCE COMPARISON
Intermediate Municipal Debt
Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ------ ----- ------
Number of
Funds in
peer group: 156 156 95 68
- --------------------------------------------------------------------------------
Peer group
average annual
total return: -0.20% 0.60% 5.17% 5.05%
- --------------------------------------------------------------------------------
Lipper categories in peer group:
Intermediate Municipal Debt
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES++
[Line chart omitted -- plot points are as follows:]
GE Tax-Exempt Fund GE Tax-Exempt Fund w/load LBMI
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,575.00 10,000.00
9/95 10,370.87 9,930.11 10,625.31
9/96 11,037.46 10,568.37 11,139.40
9/97 11,895.77 11,390.20 12,198.75
9/98 12,649.06 12,111.48 13,273.54
9/99 12,415.77 11,888.10 13,213.01
9/00 13,051.01 12,496.35 14,056.78
9/01 14,391.66 13,780.01 15,462.81
9/02 15,584.10 14,921.78 16,927.44
9/03 16,135.26 15,449.52 17,564.68
9/04 16,518.28 15,816.26 18,391.01
3/05 16,424.48 15,726.44 18,419.20
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- -------- --------
GE Tax-Exempt -0.57% -0.24% 5.48% 5.09%
GE Tax-Exempt
W/LOAD -4.79% -4.48% 4.56% 4.63%
MAXIMUM LOAD
OF 4.25%
LBMI 0.15% 1.82% 6.41% 6.30%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Tax-Exempt Fund LBMI
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,379.70 10,625.31
9/96 11,045.94 11,139.40
9/97 11,870.56 12,198.75
9/98 12,544.34 13,273.54
9/99 12,250.44 13,213.01
9/00 12,793.07 14,056.78
9/01 14,000.52 15,462.81
9/02 15,047.84 16,927.44
9/03 15,532.12 17,564.68
9/04 15,900.83 18,391.01
3/05 15,810.52 18,419.20
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- ------- --------
GE Tax-Exempt -0.94% -0.98% 4.71% 4.68%
LBMI 0.15% 1.82% 6.41% 6.30%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Tax-Exempt Fund LBMI
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 10,095.47 10,218.03
9/00 10,442.62 10,638.59
3/01 11,067.99 11,317.08
9/01 11,428.66 11,702.72
3/02 11,295.05 11,711.77
9/02 12,271.08 12,811.20
3/03 12,360.50 12,905.60
9/03 12,611.47 13,293.47
3/04 12,820.01 13,691.20
9/04 12,825.16 13,918.87
3/05 12,704.68 13,940.20
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
--------- --------- --------- -----------
GE Tax-Exempt -0.94% -0.90% 4.70% 4.45%
LBMI 0.15% 1.82% 6.41% 6.22%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Tax-Exempt Fund LBMI
- --------------------------------------------------------------------------------
9/26/97 10,000.00 10,000.00
9/97 10,013.37 10,000.00
3/98 10,290.81 10,364.83
9/98 10,744.11 10,881.06
3/99 10,838.44 11,014.62
9/99 10,596.57 10,831.44
3/00 10,747.08 11,067.60
9/00 11,175.89 11,523.13
3/01 11,906.43 12,258.03
9/01 12,349.61 12,675.73
3/02 12,273.02 12,685.53
9/02 13,407.45 13,876.37
3/03 14,104.42 13,978.63
9/03 14,463.32 14,398.75
3/04 14,773.33 14,829.54
9/04 14,869.32 15,076.14
3/05 14,808.02 15,099.25
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- --------- -----------
GE Tax-Exempt -0.41% 0.23% 6.62% 5.36%
LBMI 0.15% 1.82% 6.41% 5.64%
* MOODY'S INVESTORS SERVICES, INC., STANDARD & POOR'S AND FITCH ARE NATIONALLY
RECOGNIZED STATISTICAL RATING ORGANIZATIONS.
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
68
March 31, 2005 (unaudited)
GE TAX-EXEMPT FUND
Schedule of Investments
GE TAX-EXEMPT FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $37,327
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Hospital 16.2%
General Obligation 16.0%
Water & Sewer 12.8%
Transportation 12.0%
Lease/Other 12.0%
Electricity 9.5%
Education 8.2%
Short-Term 6.9%
Sales Tax 3.4%
Housing 3.0%
PRINCIPAL
AMOUNT VALUE
MUNICIPAL BONDS AND NOTES -- 91.9%
- --------------------------------------------------------------------------------
ARIZONA -- 3.1%
Maricopa County Stadium District
(AMBAC Insured)
5.25% 06/01/12 ........... $ 560,000 $ 613,178(o)
5.38% 06/01/16 ........... 500,000 543,905(o)
1,157,083
ARKANSAS -- 1.0%
Arkansas Housing
Development Agency
8.38% 07/01/11 ........... 315,000 394,774(m)
CALIFORNIA -- 6.3%
City of San Diego
8.88% 02/01/11 ........... 195,000 227,978(m)
Monrovia Unified School District
(MBIA Insured)
5.25% 08/01/21 ........... 1,000,000 1,112,470(o)
Sacramento Municipal
Utility District
6.80% 10/01/19 ........... 55,000 65,490(m)
9.00% 04/01/13 ........... 795,000 976,037(m)
2,381,975
COLORADO -- 1.3%
City of Colorado Springs CO
8.50% 11/15/11 ........... 90,000 107,784(m)
Denver City & County CO
7.00% 08/01/10 ........... 350,000 388,829(m)
496,613
PRINCIPAL
AMOUNT VALUE
CONNECTICUT -- 5.2%
Connecticut State Health &
Educational Facilities Authority
7.00% 07/01/12 ........... $ 520,000 $ 584,865(m)
Connecticut State Health &
Educational Facilities Authority
(Series H) (MBIA Insured)
5.50% 07/01/12 ........... 250,000 262,528(o)
New Haven (AMBAC Insured)
5.38% 12/01/12 ........... 1,000,000 1,106,160(o)
1,953,553
FLORIDA -- 4.3%
City of Gainesville
8.13% 10/01/14 ........... 175,000 210,469(m)
Jacksonville Health
Facilities Authority
11.50% 10/01/12 ........... 200,000 299,584(m)
North Broward Hospital District
5.25% 01/15/12 ........... 740,000 787,412
State of Florida
10.00% 07/01/14 ........... 235,000 324,913(m)
1,622,378
GEORGIA -- 3.6%
Clarke County Hospital Authority
(MBIA Insured)
9.88% 01/01/06 ........... 25,000 26,257(m,o)
Columbus Medical Center
Hospital Authority
7.75% 07/01/10 ........... 245,000 275,098(m)
Metropolitan Atlanta Rapid
Transit Authority
7.00% 07/01/11 ........... 435,000 505,405(m)
Private Colleges & Universities
Authority (Series A)
6.00% 06/01/11 ........... 500,000 556,305
1,363,065
HAWAII -- 1.5%
State of Hawaii (FSA Insured)
5.75% 02/01/14 ........... 500,000 569,010(o)
IDAHO -- 1.9%
Idaho Falls ID
10.38% 04/01/13 ........... 640,000 728,282(n)
ILLINOIS -- 2.7%
Chicago Metropolitan Water
Reclamation District-Greater
Chicago (Series D)
5.00% 12/01/10 ........... 500,000 538,810
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
69
March 31, 2005 (unaudited)
GE TAX-EXEMPT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Illinois Educational
Facilities Authority
5.00% 11/01/08 ........... $450,000 $ 470,759
............................... 1,009,569
INDIANA -- 4.0%
Indiana Toll Road Commission
9.00% 01/01/15 ........... 580,000 775,263(m)
Purdue University (Series P)
5.25% 07/01/11 ........... 200,000 218,018
Richland-Bean Blossom School
Building Corp. (FGIC Insured)
5.00% 07/15/11 ........... 500,000 539,640(m,o)
............................... 1,532,921
IOWA -- 2.3%
Muscatine IA
9.70% 01/01/13 ........... 695,000 872,663(m)
MAINE -- 1.5%
University of Maine (FSA Insured)
5.38% 03/01/12 ........... 500,000 552,255(o)
MARYLAND -- 1.5%
County of Prince Georges MD
(FSA Insured)
5.50% 05/15/12 ........... 500,000 559,130(o)
MASSACHUSETTS -- 2.4%
Commonwealth of Massachusetts
(Series A) (FSA Insured)
5.25% 12/15/12 ........... 500,000 550,430(o)
Massachusetts State Port Authority
13.00% 07/01/13 ........... 255,000 360,527(m)
910,957
MICHIGAN -- 5.5%
Michigan State Hospital
Finance Authority
9.00% 05/01/08 ........... 610,000 668,517(m)
University of Michigan
5.25% 12/01/12 ........... 545,000 591,745
Wayne County MI (Series A)
5.25% 10/01/12 ........... 750,000 802,987
2,063,249
MINNESOTA -- 0.3%
Western Minnesota Municipal
Power Agency
6.63% 01/01/16 ........... 100,000 117,367(m)
PRINCIPAL
AMOUNT VALUE
MISSISSIPPI -- 1.5%
State of Mississippi
5.50% 09/01/14 ........... $500,000 $ 563,285
NEW JERSEY -- 5.3%
Atlantic County Improvement
Authority (MBIA Insured)
7.40% 07/01/16 ........... 175,000 217,782(m,o)
Atlantic County Improvement
Authority (Series A)
(AMBAC Insured)
7.40% 03/01/12 ........... 325,000 377,247(m,o)
New Jersey State Transit Corp.
(AMBAC Insured)
5.50% 09/15/11 ........... 500,000 551,980(o)
New Jersey State Turnpike
Authority (AMBAC Insured)
6.50% 01/01/16 ........... 55,000 65,006(o)
6.50% 01/01/16 ........... 195,000 230,605(m,o)
New Jersey Transportation Trust
Fund Authority (Series C)
(FSA Insured)
5.75% 12/15/12 ........... 500,000 563,465(o)
2,006,085
NEW YORK -- 7.2%
Erie County Water Authority
(Series A) (AMBAC Insured)
6.00% 12/01/08 ........... 400,000 425,716(m,o)
New York State Dormitory Authority
5.20% 02/15/16 ........... 200,000 207,708
7.38% 07/01/16 ........... 685,000 824,343(m)
7.50% 05/15/11 ........... 110,000 124,545
New York State Dormitory
Authority (Series B)
5.38% 07/01/18 ........... 500,000 544,670
7.50% 05/15/11 ........... 55,000 64,721(n)
New York State Thruway
Authority (Series A)
5.25% 03/15/10 ........... 500,000 542,445
2,734,148
NORTH CAROLINA -- 2.6%
North Carolina Municipal Power
Agency No 1 Catawba
10.50% 01/01/10 ........... 375,000 448,301(m)
University of North Carolina
5.00% 12/01/15 ........... 500,000 540,090
988,391
OHIO -- 4.2%
County of Hamilton OH
7.00% 01/01/12 ........... 620,000 628,196
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
70
March 31, 2005 (unaudited)
GE TAX-EXEMPT FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Ohio State Water Development
Authority (Series I)
(AMBAC Insured)
7.00% 12/01/09 ........... $ 385,000 $ 420,859(m,o)
Steubenville OH
5.75% 10/01/11 ........... 500,000 542,690
1,591,745
PENNSYLVANIA -- 8.7%
Allegheny County Hospital
Development Authority
7.38% 07/01/12 ........... 455,000 520,616(m)
City of Philadelphia (MBIA Insured)
6.25% 08/01/12 ........... 250,000 289,332(o)
City of Philadelphia (Series B)
(MBIA Insured)
7.00% 05/15/20 ........... 415,000 504,192(m,o)
Commonwealth of Pennsylvania
5.25% 02/01/10 ........... 545,000 591,232
Delaware River Port
Authority PA & NJ
6.50% 01/15/11 ........... 210,000 232,779(m)
Philadelphia Hospitals & Higher
Education Facilities Authority
6.00% 06/01/23 ........... 165,000 165,907(m)
Pittsburgh Urban Redevelopment
Authority (FGIC Insured)
7.25% 09/01/14 ........... 830,000 973,283(m,o)
3,277,341
PUERTO RICO -- 1.3%
Puerto Rico Aqueduct &
Sewer Authority
10.25% 07/01/09 ........... 425,000 499,511(m)
SOUTH CAROLINA -- 2.8%
Berkeley County School District
5.25% 12/01/16 ........... 500,000 527,735
Grand Strand Water & Sewer
Authority (FSA Insured)
5.38% 06/01/13 ........... 500,000 548,975(o)
1,076,710
TEXAS -- 1.5%
City of Houston TX (Series B)
(AMBAC Insured)
5.75% 12/01/14 ........... 500,000 565,785(n,o)
UTAH -- 2.8%
Metropolitan Water District of
Salt Lake & Sandy (Series A)
(AMBAC Insured)
5.00% 07/01/21 ........... 1,000,000 1,051,540(o)
PRINCIPAL
AMOUNT VALUE
VIRGINIA -- 0.9%
Virginia Housing Development
Authority (Series D)
4.45% 07/01/11 ........... $320,000 $ 335,197
WISCONSIN -- 4.7%
City of Milwaukee WI (Series W)
(FSA Insured)
5.25% 03/15/14 ........... 575,000 626,670(o)
State of Wisconsin (Series A)
6.60% 07/01/11 ........... 525,000 604,285(m)
Wisconsin State Health &
Educational Facilities Authority
5.50% 08/15/14 ........... 500,000 538,505
1,769,460
TOTAL INVESTMENTS IN SECURITIES
(COST $33,669,183) .......... 34,744,042
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.8%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.9%
GEI Short Term Investment Fund
2.70% ....................... 1,863,160 1,863,160(d,l)
PRINCIPAL
AMOUNT
- -------------------------------------------
COMMERCIAL PAPER -- 1.9%
Harwood Street Funding
2.87% 04/01/05 ........... $720,000 720,000
TOTAL SHORT-TERM INVESTMENTS
(COST $2,583,160) ........... 2,583,160
TOTAL INVESTMENTS
(COST $36,252,343) .......... 37,327,202
OTHER ASSETS AND LIABILITIES,
NET -- 1.3% ................. 484,328
-----------
NET ASSETS -- 100.0% ........... $37,811,530
===========
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
71
GE Fixed Income Fund
PAUL M. COLONNA HAS BEEN THE PORTFOLIO MANAGER OF THE GE FIXED INCOME FUND SINCE
JANUARY 2005 AND HAS SERVED ON THE FUND'S PORTFOLIO MANAGEMENT TEAM SINCE 2000.
HE LEADS A TEAM THAT MANAGES THE OVERALL FIXED INCOME INVESTMENTS FOR GE ASSET
MANAGEMENT, WHICH INCLUDES BILL HEALEY AND MARK DELANEY. SEE PAGE 38 FOR PAUL'S
BIOGRAPHICAL INFORMATION.
BILL HEALEY HAS SERVED ON THE FUND'S PORTFOLIO MANAGEMENT TEAM SINCE 1996. SEE
PAGE 54 FOR BILL'S BIOGRAPHICAL INFORMATION.
MARK DELANEY IS A VICE PRESIDENT FOR GEASSET MANAGEMENT. HE HAS SERVED ON THE
FUND'S PORTFOLIO MANAGEMENT TEAM SINCE JOINING GE ASSET MANAGEMENT IN 2002.
PRIOR TO JOINING GE ASSET MANAGEMENT, MR. DELANEY WAS THE ASSISTANT INVESTMENT
OFFICER FOR FIXED INCOME AT PERS OF OHIO. MARK ALSO WAS A SENIOR FIXED INCOME
PORTFOLIO MANAGER WITH CRITERION INVESTMENT MANAGEMENT COMPANY AND SMITH GRAHAM
AND CO.
Q. HOW DID THE GE FIXED INCOME FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Fixed Income Fund
returned 0.00% for Class A shares, (0.37)% for Class B shares, (0.37)% for
Class C shares, and 0.12% for Class Y shares. The Lehman Brothers Aggregate
Bond Index, the Fund's benchmark, returned 0.47% and the Fund's Lipper
peer group of 470 Intermediate Investment Grade Debt Funds returned an
average of 0.39% for the same period.
Q. DESCRIBE WHAT HAPPENED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDED MARCH 31, 2005?
A. Interest rates rose across most of the maturity spectrum resulting in price
declines for most fixed income assets. The income portion of total bond
returns, however, lifted the total return for the broad market into
moderately positive territory. The Federal Reserve methodically raised its
Fed Funds target 100 basis points (bps) during the period in 25 bps
increments at each of its four scheduled meetings between October 2004 and
March 2005. This policy action pushed the
PICTURED BY ROW FROM LEFT TO RIGHT:
PAUL M. COLONNA, MARK DELANEY
AND BILL HEALEY.
72
Q&A
yield on the U.S. Treasury 2-year note up 117 bps to 3.78%. The U.S.
Treasury 10-year note yield began the period at roughly 4.2% then traded
in a range between 3.97% and 4.4%, until breaking out to higher levels upon
investor reaction to comments from the Fed chairman regarding longer bond
yields and language from the FOMC citing inflationary pressures. The 10-year
yield peaked at 4.65% before slipping back to end March at 4.48%. The
30-year Treasury bond yield fell 14 bps to 4.76%. Of the major fixed income
sectors, mortgage-backed securities performed the best, 1.14% return,
followed by the government-related sector, 0.24% return. Commercial MBS
lagged with (0.22)% return. In general, lower quality underperformed higher
quality.
Q. WHAT WERE THE PRIMARY DRIVERS BEHIND FUND PERFORMANCE?
A. Fund performance for the period benefited from security selection. Although
MBS performance lagged in December, it rebounded over the last three months.
Investment grade corporate security holdings also performed well despite the
emphasis in lower quality. The Fund's exposure in Treasury inflation-indexed
securities and yield curve positioning added relative return as well. The
Fund's exposure to high yield and emerging markets caused a drag on
performance in March, due to spread widening in those two sectors.
73
GE Fixed Income Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution fees, professional fees, and administrative fees. 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 each share class 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 March 31, 2005.
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 $1,000=8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.00 3.99
Class B 1,000.00 996.26 7.74
Class C 1,000.00 996.30 7.76
Class Y 1,000.00 1,001.23 2.74
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ---------------------------------------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.74 4.01
Class B 1,000.00 1,017.07 7.78
Class C 1,000.00 1,017.05 7.80
Class Y 1,000.00 1,021.96 2.76
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.80% FOR CLASS
A, 1.55% FOR CLASS B, 1.55% FOR CLASS C, AND 0.55% FOR CLASS Y, (FROM PERIOD
OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT VALUE
OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WERE AS
FOLLOWS: 0.00% FOR CLASS A SHARES, (0.37)% FOR CLASS B SHARES, (0.37)% FOR
CLASS C SHARES, AND 0.12% FOR CLASS Y SHARES.
74
GE Fixed Income Fund
QUALITY RATINGS
AS OF MARCH 31, 2005
as a % of Market Value
- --------------------------------------------------------------------------------
Moody's/S&P/ Percentage of
Fitch Rating * Market Value
- --------------------------------------------------------------------------------
Aaa/AAA 74.59%
Aa/AA 3.92%
A/A 6.45%
Baa/BBB 10.16%
Ba/BB and lower 4.86%
NR/Other 0.02%
- --------------------------------------------------------------------------------
100.00%
INVESTMENT PROFILE
A mutual fund designed for investors who seek maximum income consistent with
prudent investment management and the preservation of capital by investing at
least 80% of its net assets in debt securities under normal market conditions.
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.
LIPPER PERFORMANCE COMPARISON
Intermediate Investment Grade Debt
Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
--------- -------- -------- --------
Number of
Funds in
peer group: 470 459 267 136
- --------------------------------------------------------------------------------
Peer group
average annual
total return: 0.39% 0.81% 6.38% 6.34%
- --------------------------------------------------------------------------------
Lipper categories in peer group:
Intermediate Investment Grade Debt
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[Line chart omitted -- plot points are as follows:]
GE Fixed Income Fund GE Fixed Income Fund w/load LB Aggregate
- ---------------------------------------------------------------------------------------------------------------------------
3/95 10,000.00 9,575.00 10,000.00
9/95 10,765.14 10,307.62 10,817.56
9/96 11,206.17 10,729.91 11,347.57
9/97 12,264.74 11,743.49 12,449.95
9/98 13,498.25 12,924.57 13,882.94
9/99 13,336.29 12,769.50 13,832.13
9/00 14,127.94 13,527.50 14,799.07
9/01 15,839.58 15,166.40 16,715.98
9/02 17,046.92 16,322.42 18,152.96
9/03 17,827.24 17,069.58 19,134.99
9/04 18,359.93 17,579.63 19,838.78
3/05 18,359.80 17,579.51 19,932.00
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- --------- -------
GE Fixed Income 0.00% 0.19% 6.26% 6.26%
GE Fixed Income
W/LOAD -4.25% -4.07% 5.34% 5.80%
MAXIMUM LOAD
OF 4.25%
LB Aggregate 0.47% 1.15% 7.14% 7.14%
CLASS B SHARES
[Line chart omitted -- plot points are as follows:]
GE Fixed Income Fund LB Aggregate
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,725.85 10,817.56
9/96 11,091.53 11,347.57
9/97 12,050.30 12,449.95
9/98 13,163.63 13,882.94
9/99 12,920.38 13,832.13
9/00 13,585.42 14,799.07
9/01 15,182.35 16,715.98
9/02 16,339.58 18,152.96
9/03 17,087.52 19,134.99
9/04 17,598.11 19,838.78
3/05 17,597.99 19,932.00
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- -------- -------- --------
GE Fixed Income -0.37% -0.56% 5.44% 5.80%
LB Aggregate 0.47% 1.15% 7.14% 7.14%
CLASS C SHARES
[Line chart omitted -- plot points are as follows:]
GE Fixed Income Fund LB Aggregate
- --------------------------------------------------------------------------------
9/30/99 10,000.00 10,000.00
3/00 10,126.79 10,208.16
9/00 10,514.93 10,699.05
3/01 11,214.34 11,487.32
9/01 11,700.73 12,084.89
3/02 11,610.47 12,101.67
9/02 12,498.80 13,123.76
3/03 12,783.53 13,515.85
9/03 12,971.71 13,833.73
3/04 13,284.87 14,246.39
9/04 13,259.54 14,342.54
3/05 13,210.39 14,409.93
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
-------- -------- -------- -----------
GE Fixed Income -0.37% -0.56% 5.46% 5.19%
LB Aggregate 0.47% 1.15% 7.14% 6.86%
CLASS Y SHARES
[Line chart omitted -- plot points are as follows:]
GE Fixed Income Fund LB Aggregate
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,778.76 10,817.56
9/96 11,244.62 11,347.57
9/97 12,339.41 12,449.95
9/98 13,614.51 13,882.94
9/99 13,495.44 13,832.13
9/00 14,320.15 14,799.07
9/01 16,108.95 16,715.98
9/02 17,366.82 18,152.96
9/03 18,207.23 19,134.99
9/04 18,798.03 19,838.78
3/05 18,821.01 19,932.00
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ------- -------- --------
GE Fixed Income 0.12% 0.44% 6.51% 6.53%
LB Aggregate 0.47% 1.15% 7.14% 7.14%
AN INVESTMENT IN THE GE FIXED INCOME FUND IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
* MOODY'S INVESTORS SERVICES, INC., STANDARD & POOR'S AND FITCH ARE NATIONALLY
RECOGNIZED STATISTICAL RATING ORGANIZATIONS.
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
75
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
GE FIXED INCOME FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $293,847
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Mortgage Backed 34.4%
Corporate Notes 23.4%
Asset Backed & Others 22.9%
U.S. Treasuries 12.7%
Federal Agencies 6.6%
PRINCIPAL
AMOUNT VALUE
BONDS AND NOTES -- 107.2%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 15.9%
U.S. Treasury Bonds
5.38% 02/15/31 ........... $4,000,000 $ 4,362,480(j)
7.13% 02/15/23 ........... 1,015,000 1,286,695(h)
7.25% 05/15/16 ........... 2,875,000 3,526,733(h)
8.13% 08/15/19 - 08/15/21 3,760,000 5,105,999(h)
U.S. Treasury Inflation
Indexed Bonds
2.00% 01/15/14 ........... 3,070,200 3,142,165(h,p)
2.38% 01/15/25 ........... 617,088 663,802(p)
3.88% 04/15/29 ........... 440,777 606,412(p)
4.53% 04/15/10 ........... 1,726,250 1,689,032(d,j,p)
U.S. Treasury Notes
2.88% 11/30/06 ........... 1,905,000 1,879,035(j)
3.13% 05/15/07 ........... 6,125,000 6,038,454(j)
3.38% 02/15/08 - 09/15/09 2,765,000 2,717,446(j)
3.50% 12/15/09 - 02/15/10 2,045,000 1,986,166(j)
3.75% 03/31/07 ........... 2,000,000 1,998,359
3.88% 05/15/09 ........... 875,000 867,799(j)
4.00% 02/15/15 ........... 1,460,000 1,402,972(j)
4.25% 11/15/13 ........... 155,000 152,625
37,426,174
FEDERAL AGENCIES -- 8.2%
Federal Farm Credit Bank
3.75% 01/15/09 ........... 1,200,000 1,177,722(j)
PRINCIPAL
AMOUNT VALUE
Federal Home Loan Bank
2.38% 02/15/06 ........... $4,970,000 $ 4,915,444(h)
2.63% 10/16/06 ........... 2,525,000 2,477,591(j)
3.75% 08/18/09 ........... 200,000 195,288(j)
Federal Home Loan
Mortgage Corp.
3.00% 09/29/06 ........... 2,540,000 2,504,633
3.63% 09/15/08 ........... 2,825,000 2,766,528(j)
4.50% 01/15/14 ........... 1,495,000 1,463,195(j)
4.63% 07/18/07 ........... 745,000 748,008(h)
4.75% 12/08/10 ........... 1,515,000 1,507,676(h)
6.75% 03/15/31 ........... 1,205,000 1,469,039(h)
19,225,124
AGENCY MORTGAGE BACKED -- 26.2%
Federal Home Loan
Mortgage Corp.
4.50% 06/01/33 - 02/01/35 595,338 565,710
5.00% 04/01/13 ........... 551,457 552,463
6.00% 04/01/17 - 12/01/34 1,427,727 1,462,894
6.50% 01/01/27 - 12/01/34 1,301,097 1,350,418
7.00% 10/01/16 - 12/01/34 329,064 346,422
7.50% 01/01/08 - 09/01/33 264,131 279,263
8.00% 11/01/30 ........... 53,987 58,173
8.50% 04/01/30 - 05/01/30 92,003 99,531
9.00% 12/01/16 ........... 32,264 35,033
9.50% 04/01/21 ........... 3,152 3,469(h)
Federal National
Mortgage Assoc.
4.00% 05/01/19 - 06/01/19 648,175 621,224
4.50% 05/01/18 - 04/01/34 2,818,446 2,722,174
5.00% 11/01/32 - 10/01/34 782,186 767,690
5.50% 03/01/14 - 08/01/33 1,225,425 1,243,219
6.00% 09/01/14 - 02/01/35 5,627,859 5,764,178
6.50% 06/01/17 - 02/01/35 7,266,997 7,546,455
7.00% 08/01/13 - 10/01/34 2,338,476 2,462,316
7.50% 12/01/09 - 03/01/34 987,414 1,053,965
8.00% 12/01/12 - 11/01/33 475,108 510,930
8.50% 05/01/31 ........... 17,265 18,676
9.00% 06/01/09 - 12/01/22 367,9833 90,117
4.50% TBA ................ 2,725,000 2,663,688(c)
5.00% TBA ................ 18,740,000 18,564,131(c)
5.50% TBA ................ 6,795,000 6,785,439(c)
6.00% TBA ................ 2,325,000 2,375,859(c)
Government National
Mortgage Assoc.
4.50% 08/15/33 - 09/15/34 1,318,516 1,263,987
6.00% 04/15/33 - 04/15/34 424,630 436,229
6.50% 04/15/19 - 08/15/34 970,153 1,013,418
7.00% 03/15/12 - 06/15/34 294,574 309,354
7.50% 01/15/23 - 10/15/33 241,987 259,915
8.00% 12/15/29 - 02/15/30 8,004 8,639
9.00% 11/15/16 - 12/15/21 210,216 231,976
61,766,955
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
76
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 5.6%
Collateralized Mortgage
Obligation Trust (Class B)
4.06% 11/01/18 ........... $ 14,417 $ 12,541(d,f)
Federal Home Loan Mortgage Corp.
3.84% 10/15/18 ........... 994,233 82,956(g,i)
4.34% 12/15/30 ........... 2,610,653 171,324(g,i)
4.50% 04/15/13 - 03/15/19 1,976,341 239,007(g)
4.50% 11/15/19 ........... 300,000 280,406
5.00% 01/15/11 - 12/01/34 8,331,498 1,264,920(g)
5.00% 02/15/34 - 11/15/34 2,845,000 2,695,183
5.48% 10/15/33 ........... 340,000 253,265(i)
5.50% 04/15/17 - 06/15/33 1,213,980 236,075(g)
6.25% 01/15/23 ........... 8,912 8,946
6.77% 12/15/33 ........... 205,000 166,557(i)
7.50% 01/15/16 ........... 115,870 121,700
7.50% 07/15/27 ........... 7,314 1,324(g)
8.00% 04/15/20 ........... 4,921 4,934
9.70% 06/15/33 ........... 746,172 743,650(i)
15.97% 09/25/43 ........... 4,611,122 44,670(d,g,i)
Federal Home Loan Mortgage
Corp. STRIPS
8.00% 02/01/23 - 07/01/24 28,533 6,068(g)
Federal Home Loan
Mortgage STRIPS
4.96% 08/01/27 ........... 6,548 5,621(d,f)
Federal National Mortgage Assoc.
1.16% 12/25/42 ........... 1,216,776 34,222(g,i)
2.22% 06/25/43 ........... 4,383,873 205,494(g,i)
4.00% 08/25/17 - 02/25/28 1,183,057 1,158,777
4.15% 10/25/29 ........... 919,414 80,161(g,i)
4.25% 12/25/30 ........... 1,167,125 77,687(g,i)
4.50% 05/25/18 ........... 370,376 45,603(g)
4.50% 12/25/19 ........... 225,000 208,660
4.75% 11/25/14 ........... 237,356 22,148(g)
4.75% 09/25/42 ........... 2,814,295 222,505(g,i)
4.80% 04/25/17 - 10/25/17 1,983,273 180,721(g,i)
4.85% 08/25/16 ........... 669,961 48,143(g,i)
5.00% 02/25/11 - 02/25/32 795,754 71,316(g)
5.00% 01/15/35 ........... 300,000 286,125
5.25% 06/25/42 ........... 974,175 85,240(g,i)
5.50% 01/25/27 ........... 609,042 84,505(g)
5.50% 07/25/34 ........... 498,329 508,970
6.00% 12/25/34 ........... 325,000 339,930
7.50% 07/25/41 ........... 122,679 130,078
8.00% 07/25/14 ........... 409,296 425,412
8.50% 09/25/31 ........... 589,640 555,389(i)
9.63% 05/25/17 ........... 38,227 38,821(i)
13.65% 04/25/32 ........... 174,534 188,129(i)
Federal National Mortgage
Assoc. (Class S)
4.25% 02/25/31 ........... 926,264 72,075(g,i)
PRINCIPAL
AMOUNT VALUE
Federal National Mortgage
Assoc. REMIC
4.50% 11/25/13 ........... $1,356,568 $ 77,974(g)
5.00% 10/25/22 ........... 353,382 61,179(g)
5.50% 08/25/33 ........... 1,237,669 313,672(g)
10.34% 03/25/31 ........... 926,915 934,998(i)
Federal National Mortgage Assoc.
REMIC (Class B)
6.03% 12/25/22 ........... 10,157 8,051(d,f)
Federal National Mortgage Assoc.
REMIC (Class J)
1080.91% 03/25/22 .......... 29 433(g)
Federal National Mortgage Assoc.
REMIC (Class K)
1008.00% 05/25/22 .......... 48 1,227(g)
Federal National Mortgage
Assoc. STRIPS
7.50% 11/01/23 ........... 103,847 23,593(g)
8.00% 08/01/23 - 07/01/24 60,022 12,872(g)
8.50% 03/01/17 - 07/25/22 32,622 6,069(g)
9.00% 05/25/22 ........... 10,363 2,214(g)
Government National
Mortgage Assoc.
5.00% 02/16/34 ........... 335,000 318,041
Vendee Mortgage Trust
12.25% 05/15/33 ........... 2,804,027 99,017(d,g,i)
13,268,598
ASSET BACKED -- 11.1%
Accredited Mortgage Loan
Trust (Class A)
3.15% 07/25/34 ........... 818,522 818,514(i)
American Express Credit Account
Master Trust (Class A)
1.69% 01/15/09 ........... 247,000 240,729
2.93% 12/15/08 ........... 500,000 500,604(i)
Bank One Issuance Trust
3.59% 05/17/10 ........... 115,000 113,297
3.76% 08/15/08 ........... 366,000 366,176
Bank One Issuance Trust (Class A)
2.92% 12/15/10 ........... 1,000,000 1,002,336(i)
Bear Stearns Asset Backed
Securities, Inc. (Class A)
3.22% 01/25/34 ........... 301,927 303,222(i)
BMW Vehicle Owner Trust (Class B)
2.93% 03/25/09 ........... 251,000 247,258
Capital Auto Receivables Asset
Trust (Class A)
2.90% 04/17/06 ........... 35,810 35,812(i)
Capital Auto Receivables Asset
Trust (Class B)
3.92% 11/16/09 ........... 354,000 347,377
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
77
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Capital One Master Trust (Class C)
6.70% 06/15/11 ........... $ 378,000 $ 395,365(b)
Capital One Prime Auto
Receivables Trust (Class A)
2.89% 09/17/07 ........... 368,065 368,209(i)
Centex Home Equity
3.10% 06/25/34 ........... 282,805 283,216(i)
Chase Credit Card Master
Trust (Class A)
2.92% 07/15/10 ........... 1,780,000 1,784,053(i)
Chase Funding Mortgage Loan
Asset-Backed Certificates
3.10% 03/25/32 ........... 114,732 115,167(i)
5.75% 05/25/32 ........... 45,000 44,255
Citibank Credit Card Issuance
Trust
2.89% 02/07/08 ........... 1,200,000 1,200,894(i)
3.05% 12/17/07 ........... 800,000 800,279(i)
3.25% 03/07/08 ........... 613,000 614,648(i)
4.45% 04/07/10 ........... 316,000 314,174
6.65% 05/15/08 ........... 80,000 82,202
CNH Equipment Trust (Class A)
2.97% 12/15/10 ........... 1,000,000 1,000,000(b,i)
Countrywide Asset-Backed
Certificates
2.95% 11/25/23 ........... 246,427 246,449(i)
Countrywide Asset-Backed
Certificates (Class A)
3.12% 05/25/36 ........... 500,000 500,937(i)
3.13% 08/25/32 ........... 67,297 67,350(i)
Daimler Chrysler Auto Trust
(Class B)
2.85% 08/08/10 ........... 97,000 93,744
Discover Card Master Trust I
(Class A)
2.99% 11/15/07 ........... 1,500,000 1,500,330(i)
Federal National Mortgage Assoc.
3.95% 12/26/31 ........... 400,000 398,506
First Franklin Mtg Loan Asset
Backed Certificates
3.13% 01/25/35 ........... 500,000 501,718(i)
Fleet Credit Card Master Trust II
(Class A)
5.60% 12/15/08 ........... 500,000 509,190
Fleet Home Equity Loan Trust
(Class A)
3.10% 01/20/33 ........... 640,732 641,392(i)
Ford Credit Auto Owner Trust
(Class B)
3.88% 01/15/10 ........... 202,000 199,014
4.79% 11/15/06 ........... 307,000 308,430
Household Automotive Trust
(Class A)
3.13% 07/17/09 ........... 500,000 501,139(i)
3.17% 05/18/09 ........... 4,000,000 4,012,454(i)
PRINCIPAL
AMOUNT VALUE
MBNA Credit Card Master Note
Trust (Class C)
4.05% 01/15/08 ........... $ 165,000 $ 165,421
Merrill Lynch Home Equity Loan
3.03% 09/25/27 ........... 27,804 27,805(i)
Mid-State Trust
7.54% 07/01/35 ........... 27,873 29,372
Peco Energy Transition Trust
6.52% 12/31/10 ........... 250,000 271,255
Residential Asset Mortgage
Products, Inc.
3.09% 03/25/34 ........... 198,782 198,879(i)
Residential Asset Mortgage
Products, Inc. (Class A)
3.13% 06/25/32 ........... 223,524 223,792(i)
Residential Asset Securities Corp.
3.10% 07/25/32 ........... 92,301 92,492(i)
Residential Asset Securities
Corp. (Class A)
3.14% 06/25/33 ........... 475,059 475,756(i)
3.22% 01/25/33 ........... 305,116 306,060(i)
4.16% 07/25/30 ........... 212,000 210,122(i)
Saxon Asset Securities Trust
(Class A)
3.25% 12/25/32 ........... 122,369 122,499(i)
Sears Credit Account Master
Trust (Class A)
2.94% 08/18/09 ........... 3,000,000 3,001,409(i)
Wachovia Asset Securitization,
Inc. (Class A)
3.07% 06/25/34 ........... 409,640 410,024(i)
Wells Fargo Home Equity Trust
3.97% 09/25/24 ........... 138,000 135,874(i)
26,129,200
CORPORATE NOTES -- 28.8%
Abbey National PLC
7.95% 10/26/29 ........... 325,000 415,287
Ainsworth Lumber Co. Ltd.
6.75% 03/15/14 ........... 595,000 557,812
Alberta Energy Co. Ltd.
7.38% 11/01/31 ........... 105,000 125,458
Allegiance Corp.
7.00% 10/15/26 ........... 200,000 218,115
Allied Waste North America
7.25% 03/15/15 ........... 650,000 617,500(b)
Allstate Financial Global Funding
5.25% 02/01/07 ........... 360,000 366,404(b)
Allstate Life Global Funding Trusts
3.85% 01/25/08 ........... 305,000 300,130
Alltel Corp.
4.66% 05/17/07 ........... 405,000 407,462
Ameren Corp.
4.26% 05/15/07 ........... 285,000 284,094
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
78
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
America Movil S.A. de C.V.
5.75% 01/15/15 ........... $260,000 $ 251,304
6.38% 03/01/35 ........... 300,000 271,027
American Electric Power Co., Inc.
(Series D)
5.25% 06/01/15 ........... 250,000 246,240
American Greetings
6.10% 08/01/28 ........... 105,000 109,463
Appalachian Power Co. (Series G)
3.60% 05/15/08 ........... 165,000 160,117
Argentine Beverages
Financial Trust
7.38% 03/22/12 ........... 150,000 146,250(b)
Assurant, Inc.
6.75% 02/15/34 ........... 215,000 233,484
AT&T Wireless Services, Inc.
7.35% 03/01/06 ........... 185,000 190,798
8.75% 03/01/31 ........... 370,000 487,833
Banco Santander Chile
5.38% 12/09/14 ........... 275,000 272,505(b)
Bank of America Corp.
3.88% 01/15/08 ........... 115,000 113,522
7.40% 01/15/11 ........... 245,000 276,568
Bank One Corp.
6.50% 02/01/06 ........... 15,000 15,330
Bavaria S.A.
8.88% 11/01/10 ........... 210,000 227,850(b)
BB&T Corp.
4.75% 10/01/12 ........... 110,000 108,004
BBVA Bancomer Capital Trust I
10.50% 02/16/11 ........... 370,000 386,650(b)
BellSouth Corp.
6.00% 11/15/34 ........... 325,000 324,002
Belo Corp.
8.00% 11/01/08 ........... 245,000 268,232
Boeing Co.
8.75% 08/15/21 ........... 180,000 242,313
British Aerospace Finance, Inc.
7.50% 07/01/27 ........... 230,000 269,013(b)
British Telecommunications PLC
8.38% 12/15/10 ........... 180,000 209,128
Burlington Northern
Santa Fe Corp.
8.13% 04/15/20 ........... 360,000 454,447
Campbell Soup Co.
5.50% 03/15/07 ........... 225,000 230,031
Carolina Power & Light Co.
5.15% 04/01/15 ........... 140,000 139,287
6.13% 09/15/33 ........... 250,000 263,188
Case New Holland, Inc.
6.00% 06/01/09 ........... 895,000 850,250(b)
Charter One Bank FSB
6.38% 05/15/12 ........... 195,000 210,360
PRINCIPAL
AMOUNT VALUE
Citigroup Inc.
5.85% 12/11/34 ........... $475,000 $ 483,724
Clear Channel
Communications, Inc.
4.63% 01/15/08 ........... 360,000 357,631
CNA Financial Corp.
5.85% 12/15/14 ........... 430,000 427,020
CNF Inc.
6.70% 05/01/34 ........... 50,000 53,617
Comcast Cable Communications
Holdings, Inc.
9.46% 11/15/22 ........... 300,000 408,062
ConAgra Foods, Inc.
6.00% 09/15/06 ........... 350,000 359,123
Consolidated Natural Gas Co.
5.38% 11/01/06 ........... 420,000 426,987
Consumers Energy Co.
5.15% 02/15/17 ........... 210,000 203,739
Consumers Energy Co. (Series L)
5.00% 02/15/12 ........... 230,000 227,151
Countrywide Home Loans, Inc.
5.63% 05/15/07 ........... 190,000 194,291
COX Communications, Inc.
5.45% 12/15/14 ........... 330,000 321,258(b)
CSX Transportation, Inc.
9.75% 06/15/20 ........... 113,000 155,693
DBS Bank Ltd.
5.00% 11/15/19 ........... 390,000 377,662(b)
Deutsche Telekom International
Finance BV
5.25% 07/22/13 ........... 325,000 325,982
Dominion Resources, Inc. (Series B)
4.13% 02/15/08 ........... 535,000 529,236
Dominion Resources, Inc. (Series G)
3.66% 11/15/06 ........... 535,000 530,821
Duke Capital LLC
4.30% 05/18/06 ........... 235,000 235,353
4.33% 11/16/06 ........... 410,000 410,276
5.50% 03/01/14 ........... 205,000 205,081
6.25% 02/15/13 ........... 235,000 246,985
Duke Energy Corp.
4.50% 04/01/10 ........... 180,000 178,131
El Paso Production Holding Co.
7.75% 06/01/13 - 07/15/08 755,000 772,929
Enterprise Products Operating LP
4.00% 10/15/07 ........... 525,000 513,988
EOP Operating LP (REIT)
7.75% 11/15/07 ........... 455,000 489,669
European Investment Bank
4.63% 03/01/07 ........... 65,000 65,781
FirstEnergy Corp. (Series B)
6.45% 11/15/11 ........... 670,000 706,880
Flextronics International Ltd.
6.25% 11/15/14 ........... 890,000 845,500
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
79
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Ford Motor Co.
7.45% 07/16/31 ........... $ 10,000 $ 9,034
Ford Motor Credit Co.
5.63% 10/01/08 ........... 545,000 523,381
5.80% 01/12/09 ........... 300,000 289,428
6.50% 01/25/07 ........... 45,000 45,543
7.38% 02/01/11 ........... 450,000 450,027
FPL Group Capital, Inc. (Series A)
4.09% 02/16/07 ........... 300,000 299,263
General Mills, Inc.
3.88% 11/30/07 ........... 295,000 291,005
5.13% 02/15/07 ........... 205,000 208,242
General Motors Acceptance Corp.
6.13% 09/15/06 ........... 585,000 580,189
6.88% 09/15/11 ........... 565,000 510,442
8.00% 11/01/31 ........... 153,000 132,946
General Motors Corp.
8.38% 07/15/33 ........... 25,000 21,431
Georgia Power Co.
4.88% 07/15/07 ........... 295,000 298,144
Georgia-Pacific Corp.
8.13% 05/15/11 ........... 200,000 220,500
Goldman Sachs Group, Inc.
5.25% 10/15/13 ........... 760,000 757,730
6.60% 01/15/12 ........... 365,000 395,754
Goodrich Corp.
7.10% 11/15/27 ........... 255,000 290,479
GTE Corp.
6.94% 04/15/28 ........... 520,000 562,698
Halliburton Co.
8.75% 02/15/21 ........... 155,000 203,378
Hertz Corp.
6.35% 06/15/10 ........... 220,000 212,241
Household Finance Corp.
6.38% 11/27/12 ........... 215,000 231,562
6.50% 11/15/08 ........... 330,000 350,447
HSBC Bank USA NA
3.88% 09/15/09 ........... 670,000 648,246
HSBC Capital Funding LP
4.61% 12/29/49 ........... 410,000 389,464(b,i)
HSBC Capital Funding LP
(Series 1)
9.55% 12/31/49 ........... 355,000 428,218(b,i)
HSBC Finance Corp.
6.75% 05/15/11 ........... 555,000 605,837
Huntington National Bank
2.75% 10/16/06 ........... 300,000 293,899
Hydro Quebec
8.25% 04/15/26 ........... 90,000 124,044
Intelsat Bermuda Ltd.
8.63% 01/15/15 ........... 590,000 601,800(b)
International Business
Machines Corp.
3.80% 02/01/08 ........... 200,000 197,415
PRINCIPAL
AMOUNT VALUE
iStar Financial Inc.
6.00% 12/15/10 ........... $345,000 $ 351,517
7.00% 03/15/08 ........... 290,000 307,273
Jersey Central Power & Light
5.63% 05/01/16 ........... 175,000 179,070
John Hancock Funds
6.50% 03/01/11 ........... 245,000 264,802(b)
JPMorgan Chase Capital XV
(Series O)
5.88% 03/15/35 ........... 300,000 289,713
Kerr-McGee Corp.
5.88% 09/15/06 ........... 230,000 234,160
KeySpan Corp.
5.80% 04/01/35 305,000 306,351
KFW International Finance
4.75% 01/24/07 ........... 5,000 5,078
Kinder Morgan Energy
Partners LP
5.13% 11/15/14 ........... 255,000 248,031
Kinder Morgan, Inc.
6.50% 09/01/12 ........... 230,000 246,826
Kraft Foods Inc.
4.13% 11/12/09 ........... 670,000 651,707
Liberty Media Corp.
5.70% 05/15/13 ........... 595,000 560,854
Lockheed Martin Corp.
8.50% 12/01/29 ........... 55,000 73,972
Masco Corp.
6.75% 03/15/06 ........... 365,000 374,052
May Department Stores Co.
6.70% 07/15/34 ........... 260,000 268,065
Medco Health Solutions, Inc.
7.25% 08/15/13 ........... 260,000 287,393
Meritage Homes Corp.
6.25% 03/15/15 ........... 895,000 841,300(b)
MGM Mirage
5.88% 02/27/14 ........... 925,000 872,969
Midamerican Energy Holdings Co.
3.50% 05/15/08 ........... 350,000 336,667
Monumental Global Funding III
(Series A)
5.20% 01/30/07 ........... 125,000 127,038(b)
Morgan Stanley
4.00% 01/15/10 ........... 770,000 741,277
4.25% 05/15/10 ........... 55,000 53,442
Morgan Stanley Bank AG for
OAO Gazprom
9.63% 03/01/13 ........... 250,000 285,625(b)
Motorola, Inc.
4.61% 11/16/07 ........... 380,000 380,991
Nationwide Mutual Insurance Co.
7.88% 04/01/33 ........... 110,000 132,320(b)
Navistar International Corp.
6.25% 03/01/12 ........... 925,000 878,750(b)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
80
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
NB Capital Trust IV
8.25% 04/15/27 ........... $220,000 $ 240,628
News America, Inc.
6.20% 12/15/34 ........... 260,000 257,079(b)
Nexstar Finance, Inc.
7.00% 01/15/14 ........... 595,000 562,275(b)
Noble Energy, Inc.
8.00% 04/01/27 ........... 270,000 338,903
Nordea Bank Sweden AB
5.25% 11/30/12 ........... 230,000 235,129(b)
Norfolk Southern Corp.
7.05% 05/01/37 ........... 400,000 463,179
Norfolk Southern Railway Co.
9.75% 06/15/20 ........... 157,000 218,527
Northeast Utilities (Series B)
3.30% 06/01/08 ........... 235,000 226,239
Northrop Grumman Corp.
4.08% 11/16/06 ........... 315,000 314,593
NorthWestern Corp.
5.88% 11/01/14 ........... 205,000 203,938(b)
Novelis Inc.
7.25% 02/15/15 ........... 600,000 588,000(b)
Ocean Energy, Inc.
4.38% 10/01/07 ........... 95,000 94,373
Ohio Power Co. (Series E)
6.60% 02/15/33 ........... 95,000 105,267
Pacific Gas & Electric Co.
6.05% 03/01/34 ........... 180,000 184,175
PanAmSat Corp.
9.00% 08/15/14 ........... 595,000 627,725
Pemex Finance Ltd.
9.03% 02/15/11 ........... 260,000 291,229
9.69% 08/15/09 ........... 945,000 1,043,380
Pemex Project Funding
Master Trust
7.38% 12/15/14 ........... 235,000 250,040
Pepco Holdings, Inc.
5.50% 08/15/07 ........... 365,000 371,235
Petrobras International
Finance Co.
9.75% 07/06/11 ........... 150,000 170,625
Pioneer Natural Resources Co.
6.50% 01/15/08 ........... 395,000 417,284
Potomac Edison Co.
5.35% 11/15/14 ........... 155,000 153,888(b)
Principal Life Global Funding I
5.25% 01/15/13 ........... 235,000 238,955(b)
Procter & Gamble - ESOP
(Series A)
9.36% 01/01/21 ........... 255,000 330,239
Protective Life Secured Trust
4.00% 10/07/09 ........... 75,000 72,824
PSI Energy, Inc.
6.65% 06/15/06 ........... 185,000 189,832
PRINCIPAL
AMOUNT VALUE
Public Service Company of
New Mexico
4.40% 09/15/08 ........... $370,000 $ 364,862
Puget Energy, Inc.
3.36% 06/01/08 ........... 225,000 217,171
Quest Diagnostics
6.75% 07/12/06 ........... 200,000 206,089
Rabobank Capital Funding Trust
5.25% 12/29/49 ........... 215,000 212,939(b,i)
Raytheon Co.
4.85% 01/15/11 ........... 215,000 214,379
6.40% 12/15/18 ........... 480,000 514,280
RBS Capital Trust I
5.51% 09/29/49 ........... 320,000 320,431(i)
Reckson Operating
Partnership LP
5.88% 08/15/14 ........... 65,000 66,820
Rogers Wireless
Communications, Inc.
7.50% 03/15/15 ........... 480,000 495,600
Royal Bank of Canada
4.13% 01/26/10 ........... 230,000 225,113
Royal Bank of Scotland
Group PLC
7.65% 08/31/49 ........... 110,000 134,044(i)
Royal Bank of Scotland Group
PLC ADR
9.12% 03/31/49 ........... 265,000 313,197
SBC Communications, Inc.
5.10% 09/15/14 ........... 280,000 272,955
Scottish Power PLC
4.91% 03/15/10 ........... 295,000 295,042
Shurgard Storage Centers, Inc.
(REIT)
5.88% 03/15/13 ........... 160,000 163,111
Simon Property Group LP
4.88% 08/15/10 ........... 365,000 360,211
Sinclair Broadcast Group, Inc.
8.00% 03/15/12 ........... 600,000 612,000
SLM Corp.
4.00% 01/15/09 ........... 215,000 210,545
Southern California Edison Co.
8.00% 02/15/07 ........... 77,000 81,913
Sprint Capital Corp.
4.78% 08/17/06 ........... 530,000 533,260(k)
6.00% 01/15/07 ........... 300,000 307,484
6.13% 11/15/08 ........... 330,000 344,910
7.63% 01/30/11 ........... 265,000 296,176
8.38% 03/15/12 ........... 715,000 835,896
8.75% 03/15/32 ........... 285,000 369,955
State of Illinois
4.95% 06/01/23 ........... 320,000 309,555
5.10% 06/01/33 ........... 210,000 200,401
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
81
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Stewart Enterprises, Inc.
6.25% 02/15/13 ........... $ 645,000 $ 625,650(b)
Telecom Italia Capital S.A.
(Series B)
5.25% 11/15/13 ........... 325,000 320,695
Telefonos de Mexico
S.A. de C.V.
4.50% 11/19/08 ........... 230,000 226,400
4.75% 01/27/10 ........... 400,000 390,404(b)
TELUS Corp.
7.50% 06/01/07 ........... 375,000 398,945
Tenet Healthcare Corp.
6.38% 12/01/11 ........... 595,000 548,888
Time Warner, Inc.
6.88% 05/01/12 ........... 75,000 81,972
9.13% 01/15/13 ........... 325,000 402,423
Toyota Motor Credit Corp.
2.89% 09/15/06 ........... 3,000,000 2,997,924(i)
TXU Electric Delivery Co.
6.38% 05/01/12 ........... 315,000 336,804
Tyco International Group S.A.
5.80% 08/01/06 ........... 350,000 357,053
6.75% 02/15/11 ........... 170,000 185,019
Tyson Foods, Inc.
7.25% 10/01/06 ........... 220,000 229,328
UBS Preferred
Funding Trust I
8.62% 10/29/49 ........... 215,000 252,603(i)
UFJ Bank Ltd.
7.40% 06/15/11 ........... 300,000 333,407
Union Pacific Corp.
6.65% 01/15/11 ........... 235,000 255,439
United Rentals North
America, Inc.
7.75% 11/15/13 ........... 625,000 606,250
United Utilities PLC
6.45% 04/01/08 ........... 225,000 235,722
US Bank National Assoc.
2.85% 11/15/06 ........... 400,000 392,375
Valero Energy Corp.
6.88% 04/15/12 ........... 90,000 99,662
7.50% 04/15/32 ........... 65,000 78,343
Verizon
6.50% 09/15/11 ........... 220,000 237,965
Verizon Global Funding Corp.
7.75% 06/15/32 ........... 295,000 366,016
VTB Capital S.A.
4.43% 07/30/07 ........... 186,000 192,863(d,i)
Washington Mutual, Inc.
5.63% 01/15/07 ........... 10,000 10,229
Wells Fargo & Co.
5.25% 12/01/07 ........... 150,000 153,440
Westar Energy, Inc.
5.15% 01/01/17 ........... 145,000 141,915
PRINCIPAL
AMOUNT VALUE
Weyerhaeuser Co.
6.13% 03/15/07 ........... $ 176,000 $ 181,200
Wisconsin Electric Power
3.50% 12/01/07 ........... 265,000 259,520
Wisconsin Energy Corp.
5.88% 04/01/06 ........... 193,000 196,561
Yara International ASA
5.25% 12/15/14 ........... 220,000 217,092(b)
67,754,065
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 9.8%
Bear Stearns Commercial
Mortgage Securities
3.88% 08/13/39 ........... 695,000 672,536
4.68% 08/13/39 ........... 632,000 617,871
6.02% 02/14/31 ........... 600,000 628,312
Bear Stearns Commercial
Mortgage Securities (Class B)
6.20% 02/14/31 ........... 36,000 38,385
Bear Stearns Commercial Mortgage
Securities (Class C)
3.38% 01/14/16 ........... 700,000 701,882(b,i)
CalSTRS Trust
4.13% 11/20/12 ........... 598,000 593,908(b)
Crusade Global Trust (Class A)
3.23% 09/18/34 ........... 136,861 137,214(i)
CS First Boston Mortgage
Securities Corp.
1.58% 03/15/35 ........... 6,895,595 391,607(b,i)
4.60% 03/15/35 ........... 425,000 414,452
6.13% 04/15/37 ........... 310,000 330,679
6.67% 01/15/37 ........... 1,766,535 45,290(b,d,i)
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 ........... 900,000 945,150
First Union-Lehman Brothers-
Bank of America
6.56% 11/18/35 ........... 250,000 263,017
GMAC Commercial Mortgage
Securities, Inc.
7.00% 12/10/41 ........... 17,495,729 295,904(b,d,i)
GMAC Commercial Mortgage
Securities, Inc. (Class A)
4.92% 12/10/41 ........... 560,000 549,236(i)
GMAC Commercial Mortgage
Securities, Inc. (Class X)
4.56% 12/10/41 ........... 8,358,000 267,697(d,i)
Granite Mortgages PLC
2.26% 01/20/43 ........... 704,357 704,968(i)
Homeside Mortgage Securities
Trust (Class A)
2.86% 01/20/27 ........... 247,538 247,785(i)
Impac CMB Trust (Class A)
3.23% 12/25/33 ........... 707,974 709,647(i)
3.28% 11/25/32 ........... 229,975 230,381(i)
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
82
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
JPMorgan Chase Commercial
Mortgage Securities Corp.
1.22% 01/12/39 ........... $5,040,000 $ 249,017(b,i)
6.47% 11/15/35 ........... 298,000 322,552
JPMorgan Chase Commercial
Mortgage Securities Corp.
(Class A)
4.92% 10/15/37 ........... 422,000 417,901(i)
LB-UBS Commercial
Mortgage Trust
4.06% 09/15/27 ........... 695,000 679,152(i)
4.20% 12/15/29 ........... 298,000 292,517
4.38% 03/15/34 ........... 1,204,267 24,462(b,d,i)
4.49% 01/18/12 ........... 6,468,000 248,715(d)
4.51% 12/15/29 ........... 298,000 292,082
4.53% 01/15/36 ........... 2,130,784 158,477(b,d)
4.56% 07/15/37 ........... 11,002,000 199,411(b,d,i)
6.23% 03/15/26 ........... 229,000 242,021
6.27% 02/15/40 ........... 5,039,242 111,808(b,d)
8.21% 09/15/37 ........... 4,721,329 75,246(b,d,i)
8.71% 03/15/36 ........... 5,370,216 144,325(b,d,i)
LB-UBS Commercial Mortgage
Trust (Class A)
4.31% 02/15/30 ........... 516,000 507,017
6.13% 12/15/30 ........... 400,000 426,660
6.65% 11/15/27 ........... 2,251,000 2,456,740
LB-UBS Commercial Mortgage
Trust (Class B)
6.65% 07/14/16 ........... 66,000 72,043(b)
Master Alternative Loans Trust
5.00% 08/25/18 ........... 372,337 50,149(g)
6.50% 08/25/34 - 01/25/35 1,002,0271,037,099
6.50%
Morgan Stanley Capital I
5.17% 01/14/42 ........... 481,000 483,381(i)
7.11% 04/15/33 ........... 707,000 769,514
Morgan Stanley Capital I
(Class A)
4.66% 09/13/45 ........... 427,000 415,398
Morgan Stanley Capital I
(Class D)
6.58% 07/15/30 ........... 179,000 196,182(i)
Morgan Stanley Dean Witter
Capital I
4.36% 10/15/35 ........... 2,374,000 66,645(b,d,i)
6.46% 02/15/33 ........... 100,000 104,254
7.07% 04/15/34 ........... 1,406,000 27,038(b,d,i)
7.20% 10/15/33 ........... 72,000 79,495
Morgan Stanley Dean Witter
Capital I (Class A)
5.98% 02/15/31 ........... 39,057 39,403
6.39% 10/15/35 ........... 550,000 594,255
6.54% 02/15/31 ........... 125,000 131,642
PRINCIPAL
AMOUNT VALUE
Morgan Stanley Dean Witter
Capital I (Class X)
1.50% 02/01/31 ........... $614,569$ 28,128(b,i)
Puma Finance Ltd. (Class A)
2.80% 10/11/34 ........... 336,791 336,808(i)
3.25% 03/25/34 ........... 596,082 596,440(i)
Structured Asset Securities Corp.
(Class X)
2.07% 02/25/28 ........... 266,330 13,982(d,i)
Wachovia Bank Commercial
Mortgage Trust
3.71% 03/15/15 ........... 130,000 130,550(b,i)
4.38% 10/15/41 ........... 487,000 480,170
Wachovia Bank Commercial
Mortgage Trust (Class B)
4.89% 10/15/41 ........... 300,000 292,946
4.95% 10/15/41 ........... 563,000 551,444
Washington Mutual
3.03% 01/25/45 ........... 989,438 991,829(i)
23,122,819
SOVEREIGN BONDS -- 1.6%
Government of Bahamas
6.63% 05/15/33 ........... 230,000 263,671(b)
Government of Brazil
11.00% 08/17/40 ........... 485,000 539,805
Government of Finland
4.75% 03/06/07 ........... 105,000 106,569
Government of Guatemala
10.25% 11/08/11 ........... 185,000 214,831(b)
Government of Italy
4.50% 01/21/15 ........... 170,000 165,004
Government of Jamaica
10.63% 06/20/17 ........... 185,000 195,175
Government of Mexico
6.75% 09/27/34 ........... 340,000 331,500
Government of Panama
7.25% 03/15/15 ........... 285,000 282,863
Government of Philippines
10.63% 03/16/25 ........... 205,000 219,350
Government of Russia
5.00% 03/31/30 ........... 750,000 770,625(b,k)
Government of Turkey
7.25% 03/15/15 ........... 270,000 263,925
Ontario Electricity
Financial Corp.
7.45% 03/31/13 ........... 80,000 94,563
Province of New Brunswick
3.50% 10/23/07 ........... 230,000 226,247
Province of Ontario
5.13% 07/17/12 ........... 40,000 41,177
3,715,305
TOTAL BONDS AND NOTES
(COST $255,747,938) ......... 252,408,240
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
83
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
PREFERRED STOCK -- 0.2%
- --------------------------------------------------------------------------------
Zurich Regcaps Funding Trust I
(COST $454,300) ............. 440 $ 446,556(b,i)
NUMBER OF
CONTRACTS
- ---------------------------------------------
PURCHASED OPTIONS -- 0.0%*
- ---------------------------------------------
CALL OPTIONS
U S Treasury Notes
5 Yr. Futures ............... 108 10,449
PUT OPTIONS
U S Treasury Notes
5 Yr. Futures ............... 108 44,199
TOTAL PURCHASED OPTIONS
(COST $54,648) .............. 54,648
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SECURITIES PURCHASED WITH COLLATERAL FROM
SECURITIES ON LOAN -- 6.2%
- --------------------------------------------------------------------------------
ASSET BACKED -- 4.6%
American Express Credit Account
Master Trust (Class A)
2.85% 02/15/08 ........... $ 760,000 760,117(i)
American Express Credit Account
Master Trust (Class A)
2.95% 04/15/08 ........... 100,000 100,067(i)
CDC Mortgage Capital Trust (Class A)
3.18% 08/25/33 ........... 137,066 137,155(i)
3.34% 03/25/33 ........... 29,521 29,592(i)
Countrywide Asset-Backed
Certificates
3.10% 07/25/31 ........... 28,442 28,445(i)
3.15% 06/25/33 ........... 104,929 105,244(i)
3.28% 05/25/33 ........... 31,479 31,559(i)
PRINCIPAL
AMOUNT VALUE
Countrywide Asset-Backed
Certificates (Class A)
3.25% 03/25/33 ........... $ 645,086 $ 645,936(i)
Ford Credit Floorplan Master
Owner Trust (Class A)
2.85% 07/15/09 ........... 5,000,000 5,002,132(i)
GMAC Mortgage Corp. Loan Trust
(Class A)
2.93% 06/25/34 ........... 500,000 500,169(i)
National City Credit Card Master
Trust (Class A)
2.96% 08/15/07 ........... 1,000,000 1,000,583(i)
Residential Asset Mortgage
Products, Inc.
3.12% 12/25/33 ........... 2,000,000 2,008,024(i)
Sears Credit Account Master
Trust (Class A)
3.19% 11/17/09 ........... 500,000 501,217(i)
10,850,240
CORPORATE NOTES -- 0.4%
International Lease Finance Corp.
3.96% 07/15/05 ........... 1,000,000 1,003,519(i)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.2%
Interstar Millennium Trust (Class A)
3.21% 03/14/36 ........... 87,210 87,233(i)
Lehman Brothers Floating Rate
Commercial Mortgage Trust
2.98% 10/15/17 ........... 2,100,000 2,101,579(b,i)
Thornburg Mortgage Securities
Trust (Class A)
3.19% 04/25/43 ........... 494,792 495,825(i)
Wachovia Bank Commercial
Mortgage Trust
3.33% 03/15/15 ........... 187,637 188,021(b,i)
2,872,658
TOTAL SECURITIES PURCHASED WITH COLLATERAL
FROM SECURITIES ON LOAN
(COST $14,711,715) .......... 14,726,417
TOTAL INVESTMENTS IN SECURITIES
(COST $270,968,601) ......... 267,635,861
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
84
March 31, 2005 (unaudited)
GE FIXED INCOME FUND
Schedule of Investments
NUMBER
OF SHARES VALUE
SHORT-TERM INVESTMENTS -- 11.1%
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.0%
GEI Short Term Investment Fund
2.70% ....................... 16,574,513 $ 16,574,513(d,l)
SHORT-TERM SECURITIES PURCHASED WITH
COLLATERAL FROM SECURITIES ON LOAN -- 4.1%
GEI Short Term Investment Fund
2.70% ....................... 9,636,381 9,636,381(d,l)
TOTAL SHORT-TERM INVESTMENTS
(COST $26,210,894) .......... 26,210,894
TOTAL INVESTMENTS
(COST $297,179,495) ......... 293,846,755
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (24.7)% .............. (58,225,529)
------------
NET ASSETS-- 100.0% ............ $235,621,226
============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Fixed Income Fund had the following written option contracts open at
March 31, 2005:
EXPIRATION DATE/ NUMBER OF
CALL OPTIONS STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
U.S. Treasury Notes
5 Yr. Futures
(Written Option
Premium $23,301) April 2005/107.50 108 $(23,301)
EXPIRATION DATE/ NUMBER OF
PUT OPTIONS STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
U.S. Treasury Notes
5 Yr. Futures
(Written Option
Premium $21,614) April 2005/106.50 108 $(21,614)
--------
$(44,915)
========
The GE Fixed Income Fund had the following long futures contracts open at March
31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
U.S. Treasury
Notes 5 Yrs. June 2005 130 $13,922,188 $(61,006)
The GE Fixed Income Fund had the following short futures contracts open at March
31, 2005:
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE DEPRECIATION
- --------------------------------------------------------------------------------
U.S. Treasury
Notes 10 Yrs. June 2005 56 $(6,118,875) $(35,567)
--------
$(96,573)
=========
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
85
GE Money Market Fund
Q&A
DONALD J. DUNCAN IS A VICE PRESIDENT OF GE ASSET MANAGEMENT. HE IS PORTFOLIO
MANAGER OF GE MONEY MARKET FUND AND HAS SERVED ON THE FUND'S PORTFOLIO
MANAGEMENT TEAM SINCE THE FUND'S INCEPTION. MR. DUNCAN JOINED GE ASSET
MANAGEMENT IN 1988 IN TRADE SUPPORT AND HELD SEVERAL POSITIONS INCLUDING MUTUAL
FUND CONTROLLER. HE WAS APPOINTED INVESTMENT MANAGER - SHORT TERM SECURITIES IN
1990 AND VICE PRESIDENT - MONEY MARKETS IN 2002. MR. DUNCAN HOLDS A B.S. FROM
THE UNIVERSITY OF RHODE ISLAND.
Q. HOW DID THE GE MONEY MARKET FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2005?
A. For the six-month period ended March 31, 2005, the GE Money Market Fund
returned 0.91%. By comparison, the 90-day Treasury Bill returned 1.20% and
the Lipper peer group of 391 Money Market Funds returned an average of 0.66%
for the same period.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. The Fund's return for the period compared favorably versus its peer group.
Active management of the Fund's average maturity reflecting our view on
monetary policy and its subsequent impact on short rates was the key driver
of Fund performance. As the Federal Reserve continued its "measured" pace of
raising the federal funds target, the Fund's average maturity was kept short
to take advantage of reinvesting in higher rates.
PICTURED TO THE RIGHT:
DONALD J. DUNCAN
86
GE Money Market Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service 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 each share class 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 March 31, 2005.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2004 - MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ---------------------------------------------------------------------------------------------------------------------------
ACTUAL RETURN** 1,000.00 1,009.13 1.99
- ---------------------------------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN
(2.5% FOR THE PERIOD) 1,000.00 1,022.69 2.01
- ---------------------------------------------------------------------------------------------------------------------------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.40%, (FROM
PERIOD OCTOBER 1, 2004 - MARCH 31, 2005), MULTIPLIED BY THE AVERAGE ACCOUNT
VALUE OVER THE PERIOD, MULTIPLIED BY 182/365 (TO REFLECT THE SIX-MONTH
PERIOD).
** ACTUAL FUND RETURNS FOR SIX-MONTH PERIOD ENDED MARCH 31, 2005 WAS 0.91%.
87
GE Money Market Fund
CHANGE IN VALUE OF A $10,000 INVESTMENT
[Line chart omitted -- plot points are as follows:]
GE Money Market Fund 90 Day T-Bill
- --------------------------------------------------------------------------------
3/95 10,000.00 10,000.00
9/95 10,279.21 10,278.78
9/96 10,811.91 10,815.49
9/97 11,368.03 11,374.65
9/98 11,962.98 11,957.30
9/99 12,522.97 12,503.53
9/00 13,250.09 13,222.08
9/01 13,894.60 13,818.57
9/02 14,128.39 14,063.74
9/03 14,264.33 14,220.65
9/04 14,391.56 14,381.24
3/05 14,523.03 14,553.22
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2005
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
-------- ------- -------- --------
GE Money Market 0.91% 1.41% 2.46% 3.80%
90 Day T-Bill 1.20% 1.85% 2.54% 3.82%
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level of current income
consistent with the preservation of capital and maintenance of liquidity by
investing primarily in short-term, U.S. dollar-denominated money market
instruments.
LIPPER PERFORMANCE COMPARISON
Money Market Peer Group
Based on average annual total returns for the periods ended 3/31/05
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
--------- ------- ------- -------
Number of
Funds in
peer group: 391 383 302 181
- --------------------------------------------------------------------------------
Peer group
average annual
total return: 0.66% 0.91% 2.05% 3.53%
- --------------------------------------------------------------------------------
Lipper categories
in peer group: Money Market
FUND YIELD
AT MARCH 31, 2005
- --------------------------------------------------------------------------------
FUND IBC MONEY FUND
---- --------------
7-day current 2.30%+ 2.11%
7-day effective 2.33% 2.11%
CURRENT YIELD REPRESENTS INCOME EARNED ON AN INVESTMENT
IN THE MONEY MARKET FUND FOR A SEVEN DAY PERIOD AND
THEN ANNUALIZED.
EFFECTIVE YIELD IS CALCULATED SIMILARLY BUT IS SLIGHTLY HIGHER BECAUSE IT
REFLECTS THE COMPOUNDING EFFECT OF EARNINGS ON REINVESTED DIVIDENDS.
+ THE SEVEN DAY CURRENT YIELD, RATHER THAN THE TOTAL RETURN, MORE CLOSELY
REFLECTS THE CURRENT EARNINGS OF THE GE MONEY MARKET FUND AT MARCH 31, 2005.
AN INVESTMENT IN THE GE MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
SEE NOTES TO PERFORMANCE BEGINNING ON PAGE 90 FOR FURTHER INFORMATION, INCLUDING
AN EXPLANATION OF LIPPER PEER CATEGORIES. PAST PERFORMANCE DOES NOT PREDICT
FUTURE PERFORMANCE AND THE GRAPH AND TABLE DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
88
March 31, 2005 (unaudited)
GE MONEY MARKET FUND
Schedule of Investments
GE MONEY MARKET FUND
PORTFOLIO COMPOSITION AS A % OF THE MARKET VALUE OF $217,515
(IN THOUSANDS) AS OF MARCH 31, 2005
[Pie chart omitted -- plot points are as follows:]
Commercial Papers 34.3%
Certificates of Deposit 28.3%
U.S. Governments 21.3%
Corporate Notes 6.3%
Repurchase Agreements 5.3%
Bank Notes 4.0%
Time Deposits 0.5%
PRINCIPAL AMORTIZED
AMOUNT COST
SHORT-TERM INVESTMENTS -- 99.9%
- --------------------------------------------------------------------------------
U.S. GOVERNMENTS -- 21.3%
U.S. AGENCIES
Federal Agricultural
Mortgage Corp.
1.43% 04/01/05 ........... $5,840,000 $ 5,840,000
Federal Home Loan Bank
1.78% 05/27/05 ........... 4,870,000 4,870,000
Federal Home Loan Bank
Discount Notes
2.86% 06/10/05 ........... 4,380,000 4,355,813(d)
Federal Home Loan Mortgage Corp.
2.58% 04/19/05 ........... 8,820,000 8,808,710(d)
Federal National Mortgage Assoc.
2.82% 05/31/05 ........... 3,560,000 3,543,387(d)
2.97% 06/22/05 ........... 9,880,000 9,813,612(d)
2.38% 07/15/05 ........... 9,090,000 9,208,517
46,440,039
COMMERCIAL PAPER -- 34.3%
Barclays PLC
2.75% 04/28/05 ........... 8,770,000 8,751,978
Canadian Imperial Holdings Inc.
2.67% 05/02/05 ........... 8,730,000 8,710,041
Ciesco L P
3.00% 06/23/05 ........... 5,200,000 5,164,273
Citibank Credit Card Issuance Trust
2.63% 04/05/05 ........... 8,800,000 8,797,438
Credit Suisse First Boston
2.60% 04/07/05 ........... 8,730,000 8,726,231
HBOS PLC
2.76% 05/18/05 ........... 8,780,000 8,748,535
ING Group
2.69% 05/05/05 ........... 8,660,000 8,638,162
Preferred Receivables
Funding Corp.
2.71% 04/08/05 ........... 8,375,000 8,370,603
PRINCIPAL AMORTIZED
AMOUNT COST
Windmill Funding Corp.
2.73% 05/16/05 ........... $8,800,000 $ 8,770,190
74,677,451
REPURCHASE AGREEMENTS -- 5.3%
Bank of America Corp.
2.85% date 03/31/05,
to be repurchased at
$950,075 on 04/01/05
collateralized by $969,770
U.S. Government Agency
Bond, Zero Coupon, maturing
6/29/05 ..................... 950,000 950,000
Barclays PLC
2.85% dated 03/31/05, to be
repurchased at $10,500,831
on 04/01/05 collateralized by
$10,602,996 U.S. Government
Agency Bond, 3.02%, maturing
6/01/06 ..................... 10,500,000 10,500,000
11,450,000
BANK NOTES -- 4.0%
Bank of America Inc.
2.68% 05/03/05 ........... 8,730,000 8,730,000
CORPORATE NOTES -- 6.3%
American Express Credit Corp.
2.83% 08/05/05 ........... 4,680,000 4,685,079
Morgan Stanley
2.71% 02/03/06 ........... 9,060,000 9,060,000(i)
13,745,079
CERTIFICATES OF DEPOSIT -- 28.2%
Bank of Montreal
2.80% 05/25/05 ........... 8,780,000 8,780,000
BNP Paribas
2.78% 05/09/05 ........... 8,770,000 8,770,000
Calyon
2.73% 05/17/05 ........... 8,800,000 8,800,000
Deutsche Bank A.G.
2.91% 06/13/05 ........... 8,760,000 8,760,000
Dexia Credit Local S.A.
2.60% 04/20/05 ........... 8,830,000 8,830,000
Toronto-Dominion Bank
2.94% 06/16/05 ........... 8,770,000 8,770,000
UBS AG
2.90% 06/10/05 ........... 8,760,000 8,760,000
61,470,000
TIME DEPOSITS -- 0.5%
State Street Corp.
2.75% 04/01/05 ........... 1,002,609 1,002,609(e)
TOTAL SHORT-TERM INVESTMENTS
(COST $217,515,178) ......... 217,515,178
OTHER ASSETS AND LIABILITIES,
NET-- 0.1% .................. 269,759
------------
NET ASSETS-- 100.0% ............ $217,784,937
============
See Notes to Schedules of Investments on page 92 and Notes to Financial
Statements on page 122.
89
March 31, 2005 (unaudited)
Notes to Performance
Total returns take into account changes in share price and assume reinvestment
of dividends and capital gains distributions, if any. Investment returns and net
asset value on an investment will fluctuate and you may have a gain or loss when
you sell your shares. Classes A and B are shown both without the imposition of
the sales charge and also assuming the deduction of the current maximum
applicable sales charges as described in Note 1 of the Notes to Financial
Statements. Periods less than one year are not annualized.
Current performance may be lower or higher than that shown. You may call
toll-free (800) 242-0134 for performance information as of the most recent month
end.
The performance data relating to Class A and B shares of GE Value Equity Fund,
GE Tax-Exempt Fund and GE Government Securities Fund, for all periods prior to
September 26, 1997, reflect the performance and expense ratios (adjusted to
reflect GE Funds current sales charges) of Investors Trust Value Fund, Investors
Trust Tax Free Fund and Investors Trust Government Fund, respectively, each a
series of Investors Trust (collectively, the "Investors Trust Funds"), the
assets of which were acquired by the corresponding GE Fund on September 26, 1997
(the "Merger Date"). Because the Investors Trust Funds did not offer Class Y
shares, performance data relating to the Class Y shares of GE Value Equity Fund
and GE Tax-Exempt Fund is limited to the period from the Merger Date to March
31, 2005.
Shares of the GE Funds are neither insured nor guaranteed by the U.S.
Government, and their prices will fluctuate with market conditions.
A portion of the GE Tax-Exempt Fund's income may be subject to state, federal
and/or alternative minimum tax. Capital gains, if any, are subject to capital
gains tax.
GE Asset Management Incorporated ("GEAM") agreed in writing to limit other
operating expenses (exclusive of advisory, administration and distribution fees)
of each class of certain funds on an annualized basis through January 29, 2006.
Had these fees and expenses not been absorbed, the returns (and/or yields) would
have been lower. These agreements may be renewed or discontinued at the end of
their terms without notice in the future. Additional information about the
expense limitations is contained in Footnote 4 to the Notes to the Financial
Statements.
The 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 stock U.S. market performance. The Russell 2000 Index is a market
capitalization-weighted index consisting of approximately 2,000 of the smallest
U.S.-domiciled publicly traded common stocks that are included in the Russell
3000(R) Index. The MSCI World 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 throughout the
world and excludes certain market segments unavailable to U.S. based investors.
The MSCI(R) EAFE(R) 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. The LB
Aggregate Bond Index is a market value-weighted index of investment-grade debt
issues, including government, corporate, asset-backed and mortgage-backed
securities, with maturities of one year or more. The LB Government Bond Index is
a market value-weighted index of U.S. Government and government agency
securities (other than mortgage securities) with maturities of one year or more.
The LB 1-3 Year Government Bond Index is a market value-weighted performance
benchmark for government and corporate fixed-rate debt issues with maturities
between one and three years. The LB 10-Year Muni 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 T-Bill is an unmanaged measure/index of the performance of U.S.
Treasury bills currently available in the marketplace having a remaining
maturity of 90 days.
The above indices/measures do not reflect the actual cost of investing in the
instruments that comprise each index.
A number of the broad market returns are not available from the Funds'
commencement of investment operations through March 31, 2005 and therefore are
calculated from the month end nearest to the Funds' commencement of operation
date.
90
March 31, 2005 (unaudited)
Notes to Performance
The peer universe of funds used in our peer ranking calculation is based on the
blend of Lipper peer categories, as shown. This blend is the same as the
category blend used by the Wall Street Journal (except for the GE Strategic
Investment Fund for which we use the specific Lipper peer group and the GE Money
Market Fund, which is not in the Wall Street Journal). The actual number of
funds and numerical rankings in the Lipper and Wall Street Journal universes
could differ since the Wall Street Journal excludes certain funds which do not
meet their net asset or number of shareholder publication thresholds. A Fund's
performance may be compared to or ranked within a universe of mutual funds with
investment objectives and policies similar but not necessarily identical to the
Fund's. Such comparisons or rankings are made on the basis of several factors,
including the Fund's objectives and policies, management style and strategy, and
portfolio composition, and may change over time if any of those factors change.
Lipper is an independent mutual fund rating service.
The views expressed in this document reflect our judgment as of the publication
date and one subject to change at any time without notice.
+ Returns are those of the predecessor Class C, which was combined with Class
A as of the close of business on September 17, 1999. The Average Annual
Total Return figures for Class A with load have been adjusted to reflect
Class A sales charges. See Footnote 8 in the Notes to the Financial
Statements.
++ Effective as of the close of business on September 17, 1999, the
distribution and service fees were reduced on Class A shares. Had the
distribution and service fees not been reduced, the Class A performance
results would have been lower.
91
March 31, 2005 (unaudited)
Notes to Schedules of Investments
The views expressed in this document reflect our judgment as of the publication
date and are subject to change at any time without notice. The securities cited
may not represent future holdings and should not be considered as a
recommendation to purchase or sell a particular security. See the 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, these securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At March 31, 2005, these securities amounted to
$20,166,397; $237,933; $600,207; $5,141,409 and $2,056,279 or 8.56%, 0.48%,
0.64%, 1.94% and 1.26% of the GE Fixed Income Fund, GE Global Equity Fund,
GE International Equity Fund, GE Strategic Investment Fund and GE Government
Securities Fund respectively. These securities have been determined to be
liquid using procedures established by the Board of Trustees.
(c) Settlement is on a delayed delivery or when-issued basis with final maturity
to be announced (TBA) in the future.
(d) Coupon amount represents effective yield.
(e) State Street Corp. is the parent company of State Street Bank & Trust Co.,
the Fund's custodian and accounting agent.
(f) Principal only securities represent the right to receive the monthly
principal payments on an underlying pool of mortgages. No payments of
interest on the pool are passed through to the "principal only" holder.
(g) Interest only securities represent the right to receive the monthly interest
payments on an underlying pool of mortgages. Payments of principal on the
pool reduce the value of the "interest only" holding.
(h) At March 31, 2005, all or a portion of this security was pledged to cover
collateral requirements for futures, options, forward foreign currency
contracts and/or TBA's.
(i) Variable or floating rate security. The stated rate represents the rate at
March 31, 2005.
(j) All or a portion of the security out on loan.
(k) Step coupon bond. Security becomes interest bearing at a future date.
(l) GEAM, the investment adviser of the Fund, also serves as investment adviser
of the Trust.
(m) Escrowed to maturity. Bonds are collateralized by U.S. Treasury securities
that are held in escrow by a trustee and used to pay principal and interest
on such bonds.
(n) Prerefunded. Bonds are collateralized by U.S. Treasury securities that are
held in escrow and are used to pay principal and interest on the tax-exempt
issue and to retire the bonds at the earliest refunding date.
(o) The security is insured by FSA, AMBAC, MBIA and FGIC. The GE Tax-Exempt Fund
had insurance concentrations of 5% or greater as of March 31, 2005 (as a
percentage of net assets) as follows:
FSA 10.50%
AMBAC 15.74%
MBIA 6.38%
(p) Treasury Inflated Securities.
*Less than 0.1%
Abbreviations:
ADR American Depositary Receipt
AMBAC AMBAC Indemnity Corporation
FGIC Financial Guaranty Insurance Corporation
FHA Federal Housing Administration
FSA Financial Security Assurance
GDR Global Depositary Receipt
MBIA Municipal Bond Investors Assurance Corporation
REGD. Registered
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
SPDR Standard & Poors Depository Receipts
STRIPS Separate Trading of Registered Interest
and Principal of Security
92
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE U.S. EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of period .......... $26.41 $24.19 $20.31 $25.00 $32.45 $32.53
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ 0.23 0.20 0.16 0.13 0.13 0.15
Net realized and unrealized
gains (losses) on investments .............. 1.40 2.19 3.91 (4.49) (5.52) 3.63
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 1.63 2.39 4.07 (4.36) (5.39) 3.78
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... 0.19 0.17 0.19 0.09 0.12 0.14
Net realized gains .......................... -- -- -- 0.24 1.94 3.72
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 0.19 0.17 0.19 0.33 2.06 3.86
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $27.85 $26.41 $24.19 $20.31 $25.00 $32.45
===================================================================================================================================
TOTAL RETURN (A) .............................. 6.20% 9.87% 20.09% (17.78%) (17.71%) 12.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $350,452 $337,920 $315,980 $251,251 $285,417 $385,111
Ratios to average net assets:
Net investment income (loss)* .............. 1.62% 0.77% 0.72% 0.53% 0.43% 0.46%
Net expenses* .............................. 0.78% 0.78% 0.83% 0.87% 0.87% 0.83%
Gross expenses* ............................ 0.78% 0.78% 0.83% 0.87% 0.88% 0.83%
Portfolio turnover rate ..................... 19% 29% 26% 41% 53% 48%
- -----------------------------------------------------------------------------------------------------------------------------------
GE U.S. EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period .......... $25.20 $23.11 $19.38 $23.97 $31.30 $31.58
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ 0.12 0.00(d) (0.01) (0.06) (0.09) (0.09)
Net realized and unrealized
gains (losses) on investments .............. 1.33 2.09 3.74 (4.29) (5.30) 3.53
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 1.45 2.09 3.73 (4.35) (5.39) 3.44
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... -- -- -- -- -- --
Net realized gains .......................... -- -- -- 0.24 1.94 3.72
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... -- -- -- 0.24 1.94 3.72
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $26.65 $25.20 $23.11 $19.38 $23.97 $31.30
=================================================================================================================================
TOTAL RETURN (A) .............................. 5.75% 9.04% 19.25% (18.40%) (18.33%) 11.29%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $16,230 $19,373 $22,447 $22,806 $35,163 $46,577
Ratios to average net assets:
Net investment income (loss)* .............. 0.91% 0.02% (0.03%) (0.23%) (0.32%) (0.29%)
Net expenses* .............................. 1.53% 1.53% 1.58% 1.62% 1.62% 1.58%
Gross expenses* ............................ 1.54% 1.53% 1.58% 1.62% 1.63% 1.58%
Portfolio turnover rate ..................... 19% 29% 26% 41% 53% 48%
- ---------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ......... $24.93 $22.93 $19.23 $23.79 $31.08 $31.58
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ........... 0.12 0.00(d) (0.01) (0.05) (0.09) (0.10)
Net realized and unrealized
gains (losses) on investments ............. 1.32 2.07 3.75 (4.27) (5.26) 3.53
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ...................... 1.44 2.07 3.74 (4.32) (5.35) 3.43
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... -- 0.07 0.04 -- -- 0.21
Net realized gains ......................... -- -- -- 0.24 1.94 3.72
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... -- 0.07 0.04 0.24 1.94 3.93
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $26.37 $24.93 $22.93 $19.23 $23.79 $31.08
=================================================================================================================================
TOTAL RETURN (A) ............................. 5.78% 9.05% 19.46% (18.41%) (18.30%) 11.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $10,684 $12,355 $10,137 $4,851 $5,129 $4,811
Ratios to average net assets:
Net investment income (loss)* ............. 0.90% 0.01% (0.04%) (0.22%) (0.33%) (0.32%)
Net expenses* ............................. 1.53% 1.53% 1.57% 1.62% 1.62% 1.57%
Gross expenses* ........................... 1.54% 1.53% 1.57% 1.62% 1.64% 1.57%
Portfolio turnover rate .................... 19% 29% 26% 41% 53% 48%
- ---------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 11/29/93
Net asset value, beginning of period ......... $26.35 $24.14 $20.26 $24.94 $32.38 $32.48
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ........... 0.27 0.27 0.22 0.20 0.20 0.23
Net realized and unrealized
gains (losses) on investments ............. 1.40 2.17 3.91 (4.49) (5.50) 3.62
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ...................... 1.67 2.44 4.13 (4.29) (5.30) 3.85
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... 0.27 0.23 0.25 0.15 0.20 0.23
Net realized gains ......................... -- -- -- 0.24 1.94 3.72
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... 0.27 0.23 0.25 0.39 2.14 3.95
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $27.75 $26.35 $24.14 $20.26 $24.94 $32.38
==================================================================================================================================
TOTAL RETURN (A) ............................. 6.31% 10.13% 20.47% (17.58%) (17.50%) 12.38%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $305,524 $346,807 $307,727 $243,957 $288,666 $377,913
Ratios to average net assets:
Net investment income (loss)* ............. 1.91% 1.02% 0.97% 0.78% 0.68% 0.71%
Net expenses* ............................. 0.53% 0.53% 0.58% 0.62% 0.62% 0.58%
Gross expenses* ........................... 0.53% 0.53% 0.58% 0.62% 0.63% 0.58%
Portfolio turnover rate .................... 19% 29% 26% 41% 53% 48%
- ----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
93
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE VALUE EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/0 9/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE ................................... -- -- -- -- -- 9/8/93
Net asset value, beginning of period $10.94 $9.81 $8.29 $10.07 $12.76 $12.18
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............... 0.07 0.07 0.07 0.07 0.05 0.05
Net realized and unrealized
gains (losses) on investments ................. 0.72 1.13 1.54 (1.79) (1.96) 1.31
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 0.79 1.20 1.61 (1.72) (1.91) 1.36
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... 0.09 0.07 0.09 0.02 -- --
Net realized gains ............................. 0.35 -- -- 0.04 0.78 0.78
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 0.44 0.07 0.09 0.06 0.78 0.78
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $11.29 $10.94 $9.81 $8.29 $10.07 $12.76
===================================================================================================================================
TOTAL RETURN (A) ................................. 7.31% 12.32% 19.49% (17.24%) (15.95%) 11.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $49,606 $48,065 $48,400 $43,157 $46,045 $43,283
Ratios to average net assets:
Net investment income (loss)* ................ 1.31% 0.61% 0.73% 0.66% 0.42% 0.38%
Net expenses* ................................ 1.18% 1.20% 1.13% 1.01% 1.08% 1.05%
Gross expenses* .............................. 1.20% 1.31% 1.18% 1.01% 1.09% 1.05%
Portfolio turnover rate ........................ 16% 32% 29% 39% 52% 49%
- -----------------------------------------------------------------------------------------------------------------------------------
GE VALUE EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE ................................... -- -- -- -- -- 9/8/93
Net asset value, beginning of period $10.47 $9.39 $7.93 $9.69 $12.39 $11.94
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............... 0.03 (0.01) (0.00)(d) (0.01) (0.04) (0.04)
Net realized and unrealized
gains (losses) on investments ................. 0.69 1.09 1.46 (1.71) (1.88) 1.27
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 0.72 1.08 1.46 (1.72) (1.92) 1.23
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... -- -- -- -- -- --
Net realized gains ............................. 0.35 -- -- 0.04 0.78 0.78
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 0.35 -- -- 0.04 0.78 0.78
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $10.84 $10.47 $9.39 $7.93 $9.69 $12.39
==================================================================================================================================
TOTAL RETURN (A) ................................. 6.82% 11.50% 18.41% (17.88%) (16.54%) 10.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $8,420 $9,734 $13,568 $14,437 $28,131 $45,675
Ratios to average net assets:
Net investment income (loss)* ................ 0.59% (0.13%) (0.02%) (0.09%) (0.32%) (0.36%)
Net expenses* ................................ 1.93% 1.95% 1.87% 1.78% 1.83% 1.80%
Gross expenses* .............................. 1.96% 2.05% 1.92% 1.78% 1.83% 1.80%
Portfolio turnover rate ........................ 16% 32% 29% 39% 52% 49%
- ----------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE ................................ -- -- -- -- -- 9/30/99
Net asset value, beginning of period .......... $10.43 $9.37 $7.92 $9.68 $12.40 $11.94
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ 0.03 (0.01) (0.00)(d) (0.01) (0.04) (0.05)
Net realized and unrealized
gains (losses) on investments .............. 0.69 1.08 1.48 (1.71) (1.90) 1.29
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 0.72 1.07 1.48 (1.72) (1.94) 1.24
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... -- 0.01 0.03 -- -- --
Net realized gains .......................... 0.35 -- -- 0.04 0.78 0.78
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 0.35 0.01 0.03 0.04 0.78 0.78
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $10.80 $10.43 $9.37 $7.92 $9.68 $12.40
===============================================================================================================================
TOTAL RETURN (A) .............................. 6.88% 11.43% 18.68% (17.90%) (16.70%) 10.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $1,794 $1,690 $1,783 $1,097 $982 $847
Ratios to average net assets:
Net investment income (loss)* ............. 0.56% (0.14%) (0.04%) (0.08%) (0.34%) (0.41%)
Net expenses* ............................. 1.93% 1.95% 1.88% 1.76% 1.83% 1.80%
Gross expenses* ........................... 1.96% 2.05% 1.94% 1.76% 1.84% 1.80%
Portfolio turnover rate ..................... 16% 32% 29% 39% 52% 49%
- -------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE ................................ -- -- -- -- -- 1/5/98
Net asset value, beginning of period .......... $11.54 $10.37 $8.77 $10.65 $13.41 $12.74
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ 0.09 0.10 0.09 0.10 0.08 0.08
Net realized and unrealized
gains (losses) on investments .............. 0.76 1.17 1.62 (1.89) (2.06) 1.37
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 0.85 1.27 1.71 (1.79) (1.98) 1.45
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... 0.13 0.10 0.11 0.05 -- --
Net realized gains .......................... 0.35 -- -- 0.04 0.78 0.78
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 0.48 0.10 0.11 0.09 0.78 0.78
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $11.91 $11.54 $10.37 $8.77 $10.65 $13.41
==============================================================================================================================
TOTAL RETURN (A) .............................. 7.30% 12.29% 19.64% (17.03%) (15.69%) 11.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $46 $42 $5,993 $4,227 $5,686 $3,769
Ratios to average net assets:
Net investment income (loss)* ............. 1.59% 0.93% 0.96% 0.91% 0.67% 0.61%
Net expenses* ............................. 0.93% 0.95% 0.88% 0.77% 0.83% 0.80%
Gross expenses* ........................... 0.94% 0.99% 0.94% 0.77% 0.84% 0.80%
Portfolio turnover rate ..................... 16% 32% 29% 39% 52% 49%
- ------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
94
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE SMALL-CAP VALUE EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/98
Net asset value, beginning of period .......... $14.87 $12.67 $11.49 $13.74 $13.60 $12.16
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ 0.07 (0.06) (0.01) (0.01) 0.05 0.00(d)
Net realized and unrealized
gains (losses) on investments ............. 1.57 2.26 1.19 (0.11) 0.56 3.10
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 1.64 2.20 1.18 (0.12) 0.61 3.10
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... -- -- -- 0.05 -- --
Net realized gains .......................... 2.10 -- -- 2.08 0.47 1.66
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 2.10 -- -- 2.13 0.47 1.66
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $14.41 $14.87 $12.67 $11.49 $13.74 $13.60
===================================================================================================================================
TOTAL RETURN (A) .............................. 10.94% 17.36% 10.27% (2.92%) 4.70% 27.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $51,148 $48,852 $51,902 $44,547 $32,918 $29,228
Ratios to average net assets:
Net investment income (loss)* .............. 0.93% (0.38%) (0.06%) (0.05%) 0.36% 0.02%
Net expenses* .............................. 1.19% 1.24% 1.24% 1.15% 1.12% 1.10%
Gross expenses* ............................ 1.20% 1.25% 1.24% 1.17% 1.17% 1.11%
Portfolio turnover rate ..................... 24% 93% 122% 138% 146% 219%
- -----------------------------------------------------------------------------------------------------------------------------------
GE SMALL-CAP VALUE EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- --------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/98
Net asset value, beginning of period .......... $14.22 $12.22 $11.16 $13.44 $13.41 $12.09
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ 0.02 (0.16) (0.09) (0.10) (0.05) (0.10)
Net realized and unrealized
gains (losses) on investments ............. 1.51 2.16 1.15 (0.10) 0.55 3.08
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 1.53 2.00 1.06 (0.20) 0.50 2.98
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... -- -- -- -- -- --
Net realized gains .......................... 2.10 -- -- 2.08 0.47 1.66
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 2.10 -- -- 2.08 0.47 1.66
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $13.65 $14.22 $12.22 $11.16 $13.44 $13.41
===================================================================================================================================
TOTAL RETURN (A) .............................. 10.64% 16.37% 9.50% (3.58%) 4.00% 26.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $11,659 $11,885 $18,694 $15,984 $13,320 $11,853
Ratios to average net assets:
Net investment income (loss)* .............. 0.23% (1.15%) (0.81%) (0.80%) (0.40%) (0.75%)
Net expenses* .............................. 1.94% 1.99% 1.99% 1.90% 1.88% 1.85%
Gross expenses* ............................ 1.95% 2.00% 1.99% 1.92% 1.92% 1.86%
Portfolio turnover rate ..................... 24% 93% 122% 138% 146% 219%
- --------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ......... $14.19 $12.19 $11.14 $13.44 $13.41 $12.09
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ........... 0.02 (0.16) (0.09) (0.10) (0.06) (0.10)
Net realized and unrealized
gains (losses) on investments ............ 1.50 2.16 1.14 (0.09) 0.56 3.08
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ...................... 1.52 2.00 1.05 (0.19) 0.50 2.98
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... -- -- -- 0.03 -- --
Net realized gains ......................... 2.10 -- -- 2.08 0.47 1.66
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... 2.10 -- -- 2.11 0.47 1.66
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $13.61 $14.19 $12.19 $11.14 $13.44 $13.41
==============================================================================================================================
TOTAL RETURN (A) ............................. 10.59% 16.41% 9.43% (3.63%) 4.00% 26.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $9,215 $9,615 $8,945 $5,002 $455 $159
Ratios to average net assets:
Net investment income (loss)* ............. 0.23% (1.12%) (0.83%) (0.79%) (0.45%) (0.76%)
Net expenses* ............................. 1.94% 1.99% 2.01% 1.90% 1.88% 1.85%
Gross expenses* ........................... 1.95% 2.00% 2.01% 1.97% 1.94% 1.86%
Portfolio turnover rate .................... 24% 93% 122% 138% 146% 219%
- ------------------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/98
Net asset value, beginning of period ......... $15.07 $12.81 $11.59 $13.85 $13.66 $12.18
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ........... 0.09 (0.02) 0.02 0.03 0.09 0.05
Net realized and unrealized
gains (losses) on investments ............ 1.60 2.28 1.20 (0.12) 0.57 3.09
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ...................... 1.69 2.26 1.22 (0.09) 0.66 3.14
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... -- -- -- 0.09 -- --
Net realized gains ......................... 2.10 -- -- 2.08 0.47 1.66
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... 2.10 -- -- 2.17 0.47 1.66
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $14.66 $15.07 $12.81 $11.59 $13.85 $13.66
==================================================================================================================================
TOTAL RETURN (A) ............................. 11.13% 17.64% 10.53% (2.71%) 5.06% 28.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $22,014 $23,144 $19,715 $8,759 $5,892 $10,934
Ratios to average net assets:
Net investment income (loss)* ............. 1.23% (0.12%) 0.18% 0.22% 0.65% 0.35%
Net expenses* ............................. 0.95% 0.99% 1.01% 0.90% 0.87% 0.83%
Gross expenses* ........................... 0.95% 1.00% 1.01% 0.94% 0.91% 0.83%
Portfolio turnover rate .................... 24% 93% 122% 138% 146% 219%
- ----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
95
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE GLOBAL EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of period ............ $18.13 $16.07 $13.39 $16.58 $27.18 $25.86
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) .............. 0.08 0.04 0.04 0.05 0.08 0.03
Net realized and unrealized
gains (losses) on investments ................ 1.61 2.05 2.71 (3.16) (6.26) 3.61
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 1.69 2.09 2.75 (3.11) (6.18) 3.64
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... 0.10 0.03 0.07 0.06 -- --
Net realized gains -- -- -- 0.02 4.42 2.32
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. 0.10 0.03 0.07 0.08 4.42 2.32
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $19.72 $18.13 $16.07 $13.39 $16.58 $27.18
====================================================================================================================================
TOTAL RETURN (A) ................................ 9.30% 13.03% 20.56% (18.89%) (26.69%) 14.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................... $31,079 $30,324 $27,864 $25,641 $42,200 $49,784
Ratios to average net assets:
Net investment income (loss)* ................ 0.80% 0.22% 0.26% 0.30% 0.39% 0.11%
Net expenses* ................................ 1.47% 1.65% 1.50% 1.27% 1.34% 1.31%
Gross expenses* .............................. 1.49% 1.67% 1.57% 1.27% 1.35% 1.31%
Portfolio turnover rate ....................... 25% 28% 64% 51% 62% 77%
- ------------------------------------------------------------------------------------------------------------------------------------
GE GLOBAL EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period ............ $16.76 $14.94 $12.48 $15.52 $25.90 $24.92
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) .............. -- (0.09) (0.07) (0.07) (0.08) (0.16)
Net realized and unrealized
gains (losses) on investments ................ 1.49 1.91 2.53 (2.95) (5.88) 3.46
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 1.49 1.82 2.46 (3.02) (5.96) 3.30
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... -- -- -- -- -- --
Net realized gains -- -- -- 0.02 4.42 2.32
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. -- -- -- 0.02 4.42 2.32
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $18.25 $16.76 $14.94 $12.48 $15.52 $25.90
=================================================================================================================================
TOTAL RETURN (A) ................................ 8.89% 12.18% 19.71% (19.48%) (27.24%) 13.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................... $921 $1,047 $1,503 $906 $1,327 $2,384
Ratios to average net assets:
Net investment income (loss)* ................ 0.06% (0.51%) (0.51%) (0.46%) (0.42%) (0.60%)
Net expenses* ................................ 2.22% 2.40% 2.27% 2.03% 2.09% 2.06%
Gross expenses* .............................. 2.25% 2.42% 2.36% 2.03% 2.10% 2.06%
Portfolio turnover rate ....................... 25% 28% 64% 51% 62% 77%
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ............ $16.88 $15.04 $12.47 $15.51 $25.90 $24.92
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) .............. -- (0.09) (0.07) (0.06) (0.07) (0.13)
Net realized and unrealized
gains (losses) on investments ................ 1.50 1.93 2.64 (2.96) (5.90) 3.43
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 1.50 1.84 2.57 (3.02) (5.97) 3.30
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... -- -- -- -- -- --
Net realized gains ............................ -- -- -- 0.02 4.42 2.32
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. -- -- -- 0.02 4.42 2.32
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $18.38 $16.88 $15.04 $12.47 $15.51 $25.90
====================================================================================================================================
TOTAL RETURN (A) ................................ 8.89% 12.23% 20.61% (19.50%) (27.27%) 13.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................... $349 $423 $326 $293 $279 $180
Ratios to average net assets:
Net investment income (loss)* ................ 0.05% (0.51%) (0.47%) (0.39%) (0.36%) (0.49%)
Net expenses* ................................ 2.22% 2.40% 2.26% 2.02% 2.09% 2.05%
Gross expenses* .............................. 2.25% 2.42% 2.33% 2.02% 2.10% 2.05%
Portfolio turnover rate ....................... 25% 28% 64% 51% 62% 77%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS Y
- -----------------------------------------------------------------------------------------------------------------------------------
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
INCEPTION DATE -- -- -- -- -- 11/29/93
Net asset value, beginning of period ............ $18.21 $16.14 $13.45 $16.66 $27.22 $25.84
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) .............. 0.10 0.09 0.08 0.09 0.10 0.11
Net realized and unrealized
gains (losses) on investments ................ 1.61 2.05 2.72 (3.16) (6.24) 3.59
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 1.71 2.14 2.80 (3.07) (6.14) 3.70
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... 0.15 0.07 0.11 0.12 -- --
Net realized gains ............................ -- -- -- 0.02 4.42 2.32
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. 0.15 0.07 0.11 0.14 4.42 2.32
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $19.77 $18.21 $16.14 $13.45 $16.66 $27.22
===================================================================================================================================
TOTAL RETURN (A) ................................ 9.40% 13.31% 20.87% (18.65%) (26.50%) 14.75%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................... $17,451 $16,596 $13,548 $10,516 $13,068 $30,956
Ratios to average net assets:
Net investment income (loss)* ................ 1.04% 0.49% 0.51% 0.56% 0.48% 0.38%
Net expenses* ................................ 1.22% 1.40% 1.26% 1.02% 1.09% 1.06%
Gross expenses* .............................. 1.24% 1.42% 1.34% 1.02% 1.10% 1.06%
Portfolio turnover rate ....................... 25% 28% 64% 51% 62% 77%
- -----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
96
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE INTERNATIONAL EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of period ............ $12.73 $10.58 $9.41 $11.87 $19.24 $18.33
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) .............. 0.01 0.09 0.07 0.06 0.11 0.07
Net realized and unrealized
gains (losses) on investments ................ 1.71 2.11 1.17 (2.44) (5.64) 1.83
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 1.72 2.20 1.24 (2.38) (5.53) 1.90
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... 0.07 0.05 0.07 0.08 -- --
Net realized gains ............................ -- -- -- -- 1.84 0.99
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. 0.07 0.05 0.07 0.08 1.84 0.99
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $14.38 $12.73 $10.58 $9.41 $11.87 $19.24
=================================================================================================================================
TOTAL RETURN (A) ................................ 13.56% 20.88% 13.18% (20.28%) (31.34%) 10.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................... $26,507 $23,144 $19,694 $19,773 $33,328 $40,282
Ratios to average net assets:
Net investment income (loss)* ................ 0.08% 0.69% 0.75% 0.50% 0.71% 0.33%
Net expenses* ................................ 1.44% 1.58% 1.51% 1.35% 1.34% 1.33%
Gross expenses* .............................. 1.44% 1.58% 1.51% 1.38% 1.34% 1.33%
Portfolio turnover rate ....................... 36% 31% 68% 53% 68% 76%
- ---------------------------------------------------------------------------------------------------------------------------------
GE INTERNATIONAL EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of period ............ $11.89 $9.92 $8.86 $11.18 $18.36 $17.66
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) .............. (0.05) (0.00)(d) (0.01) (0.03) (0.02) (0.08)
Net realized and unrealized
gains (losses) on investments ................ 1.61 1.98 1.07 (2.29) (5.32) 1.77
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ......................... 1.56 1.98 1.06 (2.32) (5.34) 1.69
- -----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... -- 0.01 -- -- -- --
Net realized gains ............................ -- -- -- -- 1.84 0.99
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. -- 0.01 -- -- 1.84 0.99
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $13.45 $11.89 $9.92 $8.86 $11.18 $18.36
===================================================================================================================================
TOTAL RETURN (A) ................................ 13.12% 19.97% 11.96% (20.84%) (31.92%) 9.68%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................... $1,185 $1,286 $954 $784 $1,166 $1,828
Ratios to average net assets:
Net investment income (loss)* ................ (0.73%) (0.02%) (0.09%) (0.24%) (0.13%) (0.39%)
Net expenses* ................................ 2.19% 2.33% 2.25% 2.10% 2.09% 2.08%
Gross expenses* .............................. 2.20% 2.33% 2.25% 2.14% 2.09% 2.08%
Portfolio turnover rate ....................... 36% 31% 68% 53% 68% 76%
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date -- -- -- -- -- 9/30/99
Net asset value, beginning of period .......... $11.94 $9.95 $8.85 $11.18 $18.37 $17.66
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ (0.04) (0.01) 0.00(d) (0.01) (0.01) (0.06)
Net realized and unrealized
gains (losses) on investments .............. 1.61 2.01 1.12 (2.32) (5.34) 1.76
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 1.57 2.00 1.12 (2.33) (5.35) 1.70
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... -- 0.01 0.02 -- -- --
Net realized gains .......................... -- -- -- -- 1.84 0.99
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... -- 0.01 0.02 -- 1.84 0.99
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $13.51 $11.94 $9.95 $8.85 $11.18 $18.37
====================================================================================================================================
TOTAL RETURN (A) .............................. 13.15% 20.07% 12.62% (20.91%) (31.86%) 9.68%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................. $1,178 $1,081 $1,200 $394 $246 $283
Ratios to average net assets:
Net investment income (loss)* .............. (0.68%) (0.09%) 0.05% (0.12%) (0.06%) (0.29%)
Net expenses* .............................. 2.18% 2.32% 2.27% 2.10% 2.09% 2.07%
Gross expenses* ............................ 2.19% 2.33% 2.28% 2.15% 2.09% 2.07%
Portfolio turnover rate ..................... 36% 31% 68% 53% 68% 76%
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS Y
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date -- -- -- -- -- 3/2/94
Net asset value, beginning of period .......... $12.85 $10.68 $9.53 $12.02 $19.42 $18.44
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ............ 0.03 0.12 0.09 0.09 0.16 0.16
Net realized and unrealized
gains (losses) on investments .............. 1.72 2.14 1.16 (2.46) (5.72) 1.81
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ....................... 1.75 2.26 1.25 (2.37) (5.56) 1.97
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... 0.11 0.09 0.10 0.12 -- --
Net realized gains .......................... -- -- -- -- 1.84 0.99
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 0.11 0.09 0.10 0.12 1.84 0.99
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $14.49 $12.85 $10.68 $9.53 $12.02 $19.42
====================================================================================================================================
TOTAL RETURN (A) .............................. 13.66% 21.22% 13.19% (20.05%) (31.22%) 10.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............................. $65,256 $46,942 $37,413 $24,997 $31,781 $38,241
Ratios to average net assets:
Net investment income (loss)* .............. 0.36% 0.95% 0.91% 0.75% 1.03% 0.75%
Net expenses* .............................. 1.18% 1.33% 1.25% 1.10% 1.09% 1.08%
Gross expenses* ............................ 1.18% 1.33% 1.26% 1.14% 1.09% 1.08%
Portfolio turnover rate ..................... 36% 31% 68% 53% 68% 76%
- ------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
97
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE PREMIER GROWTH EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/31/96
Net asset value, beginning of period ......... $24.71 $23.26 $18.50 $22.63 $31.38 $27.50
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss (b) .................... 0.11 (0.01) (0.05) (0.08) (0.09) (0.07)
Net realized and unrealized
gains (losses) on investments ............ 1.09 1.46 4.81 (3.32) (7.06) 5.10
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ...................... 1.20 1.45 4.76 (3.40) (7.15) 5.03
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... 0.05 -- -- -- -- --
Net realized gains -- -- -- 0.73 1.60 1.15
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... 0.05 -- -- 0.73 1.60 1.15
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $25.86 $24.71 $23.26 $18.50 $22.63 $31.38
===========================================================================================================================
TOTAL RETURN (A) ............................. 4.85% 6.23% 25.73% (15.97%) (23.94%) 18.61%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...$360,180 $378,947 $243,274 $127,446 $104,215 $128,255
Ratios to average net assets:
Net investment loss* ...................... 0.81% (0.04%) (0.23%) (0.36%) (0.32%) (0.24%)
Net expenses* ............................. 0.96% 1.00% 1.07% 1.05% 1.08% 1.01%
Gross expenses* ........................... 0.96% 1.00% 1.08% 1.05% 1.10% 1.01%
Portfolio turnover rate .................... 17% 21% 17% 19% 20% 22%
- ---------------------------------------------------------------------------------------------------------------------------
GE PREMIER GROWTH EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/31/96
Net asset value, beginning of period ......... $23.29 $22.09 $17.70 $21.84 $30.55 $27.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss (b) .................... 0.01 (0.19) (0.20) (0.26) (0.29) (0.30)
Net realized and unrealized
gains (losses) on investments ............ 1.03 1.39 4.59 (3.15) (6.82) 5.00
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ...................... 1.04 1.20 4.39 (3.41) (7.11) 4.70
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... -- -- -- -- -- --
Net realized gains -- -- -- 0.73 1.60 1.15
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... -- -- -- 0.73 1.60 1.15
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $24.33 $23.29 $22.09 $17.70 $21.84 $30.55
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................. 4.47% 5.43% 24.80% (16.61%) (24.48%) 17.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $33,443 $35,377 $34,657 $25,900 $32,761 $41,795
Ratios to average net assets:
Net investment loss* ...................... 0.07% (0.78%) (0.98%) (1.13%) (1.07%) (0.98%)
Net expenses* ............................. 1.71% 1.75% 1.82% 1.81% 1.83% 1.75%
Gross expenses* ........................... 1.71% 1.75% 1.82% 1.81% 1.85% 1.75%
Portfolio turnover rate .................... 17% 21% 17% 19% 20% 22%
- -------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ....... $23.30 $22.10 $17.69 $21.84 $30.55 $27.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ......... 0.01 (0.19) (0.20) (0.23) (0.29) (0.31)
Net realized and unrealized
gains (losses) on investments ........ 1.03 1.39 4.61 (3.19) (6.82) 5.01
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... 1.04 1.20 4.41 (3.42) (7.11) 4.70
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... -- -- -- -- -- --
Net realized gains ....................... -- -- -- 0.73 1.60 1.15
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ -- -- -- 0.73 1.60 1.15
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $24.34 $23.30 $22.10 $17.69 $21.84 $30.55
=====================================================================================================================
TOTAL RETURN (A) ........................... 4.46% 5.43% 24.93% (16.66%) (24.48%) 17.66%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) . $68,285 $68,744 $47,482 $14,003 $3,933 $3,134
Ratios to average net assets:
Net investment income (loss)* ........... 0.06% (0.79%) (0.99%) (1.04%) (1.08%) (0.98%)
Net expenses* ........................... 1.71% 1.75% 1.83% 1.77% 1.84% 1.75%
Gross expenses* ......................... 1.71% 1.75% 1.84% 1.77% 1.87% 1.75%
Portfolio turnover rate .................. 17% 21% 17% 19% 20% 22%
- ---------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/31/96
Net asset value, beginning of period ....... $25.13 $23.60 $18.72 $22.84 $31.58 $27.60
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b) ......... 0.13 0.05 0.00(d) (0.03) (0.02) 0.00(d)
Net realized and unrealized
gains (losses) on investments ........ 1.14 1.48 4.88 (3.36) (7.12) 5.13
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... 1.27 1.53 4.88 (3.39) (7.14) 5.13
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.15 -- -- -- -- --
Net realized gains ....................... -- -- -- 0.73 1.60 1.15
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.15 -- -- 0.73 1.60 1.15
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $26.25 $25.13 $23.60 $18.72 $22.84 $31.58
=======================================================================================================================
TOTAL RETURN (A) ........................... 5.02% 6.48% 26.07% (15.78%) (23.75%) 18.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) . $200,864 $139,864 $93,875 $47,446 $47,064 $33,089
Ratios to average net assets:
Net investment income (loss)* ........... 0.93% 0.21% 0.02% (0.11%) (0.09%) 0.01%
Net expenses* ........................... 0.71% 0.75% 0.82% 0.80% 0.84% 0.76%
Gross expenses* ......................... 0.71% 0.75% 0.83% 0.80% 0.87% 0.76%
Portfolio turnover rate .................. 17% 21% 17% 19% 20% 22%
- -----------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
98
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE STRATEGIC INVESTMENT FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- --------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of period ....... $23.67 $22.19 $19.30 $22.20 $26.86 $25.04
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ................ 0.21 0.30 0.31 0.43 0.58 0.64
Net realized and unrealized
gains (losses) on investments .......... 1.05 1.45 2.99 (1.88) (2.85) 2.69
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... 1.26 1.75 3.30 (1.45) (2.27) 3.33
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.39 0.27 0.41 0.54 0.64 0.50
Net realized gains ....................... 0.44 -- -- 0.91 1.75 1.01
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.83 0.27 0.41 1.45 2.39 1.51
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $24.10 $23.67 $22.19 $19.30 $22.20 $26.86
====================================================================================================================
TOTAL RETURN (A) ........................... 5.23% 7.94% 17.33% (7.48%) (9.31%) 13.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .......................... $132,795 $128,471 $113,033 $96,111 $104,421 $128,847
Ratios to average net assets:
Net investment income* .................. 1.73% 1.28% 1.50% 1.97% 2.35% 2.44%
Net expenses* ........................... 0.79% 0.81% 0.84% 0.86% 0.86% 0.84%
Gross expenses* ......................... 0.79% 0.81% 0.84% 0.86% 0.86% 0.84%
Portfolio turnover rate .................. 67% 135% 134% 115% 121% 103%
- --------------------------------------------------------------------------------------------------------------------
GE STRATEGIC INVESTMENT FUND
- ------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period ....... $22.91 $21.50 $18.69 $21.53 $26.13 $24.45
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ................ 0.12 0.12 0.15 0.26 0.38 0.43
Net realized and unrealized
gains (losses) on investments .......... 1.00 1.42 2.90 (1.84) (2.77) 2.63
- ------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... 1.12 1.54 3.05 (1.58) (2.39) 3.06
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.19 0.13 0.24 0.35 0.46 0.37
Net realized gains ....................... 0.44 -- -- 0.91 1.75 1.01
- ------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.63 0.13 0.24 1.26 2.21 1.38
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $23.40 $22.91 $21.50 $18.69 $21.53 $26.13
==================================================================================================================
TOTAL RETURN (A) ........................... 4.86% 7.15% 16.45% (8.19%) (10.00%) 12.94%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .......................... $18,874 $20,077 $17,297 $15,215 $19,353 $21,225
Ratios to average net assets:
Net investment income* .................. 0.98% 0.53% 0.75% 1.20% 1.60% 1.69%
Net expenses* ........................... 1.54% 1.56% 1.59% 1.61% 1.61% 1.59%
Gross expenses* ......................... 1.55% 1.56% 1.59% 1.61% 1.61% 1.59%
Portfolio turnover rate .................. 67% 135% 134% 115% 121% 103%
- ------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ....... $22.51 $21.18 $18.44 $21.31 $25.91 $24.45
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ................ 0.11 0.13 0.15 0.26 0.37 0.46
Net realized and unrealized
gains (losses) on investments ........... 0.99 1.39 2.89 (1.84) (2.71) 2.55
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... 1.10 1.52 3.04 (1.58) (2.34) 3.01
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.26 0.19 0.30 0.38 0.51 0.54
Net realized gains ....................... 0.44 -- -- 0.91 1.75 1.01
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.70 0.19 0.30 1.29 2.26 1.55
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $22.91 $22.51 $21.18 $18.44 $21.31 $25.91
===================================================================================================================
TOTAL RETURN (A) ........................... 4.87% 7.14% 16.62% (8.21%) (10.00%) 12.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ..........................$16,734 $15,743 $5,355 $2,904 $2,778 $2,271
Ratios to average net assets:
Net investment income* .................. 0.97% 0.57% 0.74% 1.23% 1.59% 1.80%
Net expenses* ........................... 1.54% 1.55% 1.58% 1.61% 1.61% 1.59%
Gross expenses* ......................... 1.55% 1.56% 1.58% 1.61% 1.61% 1.59%
Portfolio turnover rate .................. 67% 135% 134% 115% 121% 103%
- -------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 11/29/93
Net asset value, beginning of period ....... $23.74 $22.24 $19.34 $22.25 $26.92 $25.10
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ................ 0.25 0.36 0.36 0.49 0.63 0.70
Net realized and unrealized
gains (losses) on investments ........... 1.03 1.47 3.01 (1.90) (2.85) 2.70
- ---------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... 1.28 1.83 3.37 (1.41) (2.22) 3.40
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.45 0.33 0.47 0.59 0.70 0.57
Net realized gains ....................... 0.44 -- -- 0.91 1.75 1.01
- ---------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.89 0.33 0.47 1.50 2.45 1.58
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $24.13 $23.74 $22.24 $19.34 $22.25 $26.92
===============================================================================================================
TOTAL RETURN (A) ........................... 5.36% 8.22% 17.65% (7.27%) (9.10%) 14.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .......................... $96,887 $107,340 $103,532 $78,294 $82,850 $70,334
Ratios to average net assets:
Net investment income* .................. 2.01% 1.52% 1.75% 2.22% 2.59% 2.69%
Net expenses* ........................... 0.54% 0.56% 0.59% 0.61% 0.62% 0.59%
Gross expenses* ......................... 0.54% 0.56% 0.59% 0.61% 0.62% 0.59%
Portfolio turnover rate .................. 67% 135% 134% 115% 121% 103%
- ---------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
99
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE GOVERNMENT SECURITIES FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of period ....... $8.79 $8.90 $8.94 $8.54 $8.06 $8.14
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ................ 0.13 0.25 0.30 0.35 0.46 0.52
Net realized and unrealized
gains (losses) on investments ........... (0.13) (0.11) (0.04) 0.42 0.50 (0.02)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... -- 0.14 0.26 0.77 0.96 0.50
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.13 0.25 0.30 0.37 0.48(c) 0.58
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.13 0.25 0.30 0.37 0.48 0.58
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $8.66 $8.79 $8.90 $8.94 $8.54 $8.06
======================================================================================================================
TOTAL RETURN (A) ........................... 0.02% 1.60% 2.95% 9.38% 12.16% 6.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ..........................$160,338 $169,373 $194,705 $204,181 $174,496 $102,907
Ratios to average net assets:
Net investment income* .................. 3.05% 2.80% 3.36% 4.13% 5.59% 6.53%
Net expenses* ........................... 0.86% 0.95% 0.87% 0.85% 0.85% 0.85%
Gross expenses* ......................... 0.87% 0.96% 0.87% 0.85% 0.92% 0.99%
Portfolio turnover rate .................. 64% 217% 151% 182% 189% 79%
- ----------------------------------------------------------------------------------------------------------------------
GE GOVERNMENT SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -----------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 4/22/87
Net asset value, beginning of period ....... $8.86 $8.98 $9.01 $8.61 $8.12 $8.20
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ................ 0.10 0.18 0.24 0.28 0.41 0.47
Net realized and unrealized
gains (losses) on investments ........... (0.12) (0.12) (0.04) 0.43 0.50 (0.03)
- -----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... (0.02) 0.06 0.20 0.71 0.91 0.44
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.10 0.18 0.23 0.31 0.42(c) 0.52
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.10 0.18 0.23 0.31 0.42 0.52
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $8.74 $8.86 $8.98 $9.01 $8.61 $8.12
=================================================================================================================
TOTAL RETURN (A) ........................... (0.23%) 0.74% 2.31% 8.41% 11.52% 5.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .......................... $2,692 $5,159 $8,366 $16,462 $58,838 $135,488
Ratios to average net assets:
Net investment income* .................. 2.28% 2.04% 2.68% 3.31% 4.90% 5.83%
Net expenses* ........................... 1.62% 1.70% 1.62% 1.60% 1.60% 1.60%
Gross expenses* ......................... 1.64% 1.71% 1.62% 1.64% 1.70% 1.72%
Portfolio turnover rate .................. 64% 217% 151% 182% 189% 79%
- -----------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -----------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ....... $8.89 $9.00 $9.04 $8.64 $8.14 $8.20
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ................ 0.10 0.18 0.24 0.30 0.41 0.47
Net realized and unrealized
gains (losses) on investments ........... (0.12) (0.11) (0.05) 0.41 0.51 0.01
- -----------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
INVESTMENT OPERATIONS .................... (0.02) 0.07 0.19 0.71 0.92 0.48
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.10 0.18 0.23 0.31 0.42(c) 0.54
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 0.10 0.18 0.23 0.31 0.42 0.54
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $8.77 $8.89 $9.00 $9.04 $8.64 $8.14
===========================================================================================================
TOTAL RETURN (A) ...........................(0.22)% 0.85% 2.19% 8.38% 11.63% 6.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .......................... $578 $777 $1,047 $1,142 $122 $10
Ratios to average net assets:
Net investment income* .................. 2.28% 2.04% 2.61% 3.40% 4.91% 5.95%
Net expenses* ........................... 1.61% 1.70% 1.62% 1.57% 1.60% 1.60%
Gross expenses* ......................... 1.64% 1.71% 1.62% 1.57% 1.64% 1.71%
Portfolio turnover rate .................. 64% 217% 151% 182% 189% 79%
- -----------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
100
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE SHORT-TERM GOVERNMENT FUND
- -------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of period ...... $11.67 $12.04 $12.21 $12.17 $11.68 $11.71
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.23 0.36 0.34 0.57 0.65 0.65
Net realized and unrealized
gains (losses) on investments .......... (0.25) (0.25) (0.09) 0.11 0.50 (0.01)(e)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
INVESTMENT OPERATIONS ................... (0.02) 0.11 0.25 0.68 1.15 0.64
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.21 0.36 0.41 0.59 0.66 0.66
Net realized gains ...................... -- 0.09 0.01 0.05 -- 0.01
Return of capital ....................... -- 0.03 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.21 0.48 0.42 0.64 0.66 0.67
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $11.44 $11.67 $12.04 $12.21 $12.17 $11.68
===================================================================================================================
TOTAL RETURN (A) .......................... (0.20)% 0.91% 2.06% 5.65% 10.10% 5.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .........................$46,228 $53,825 $64,054 $54,089 $27,798 $22,016
Ratios to average net assets:
Net investment income* ................. 3.87% 3.02% 2.82% 4.70% 5.50% 5.63%
Net expenses* .......................... 0.77% 0.75% 0.73% 0.70% 0.70% 0.68%
Gross expenses* ........................ 0.85% 0.86% 0.80% 0.78% 0.88% 0.74%
Portfolio turnover rate ................. 27% 89% 110% 42% 79% 170%
- -------------------------------------------------------------------------------------------------------------------
GE SHORT-TERM GOVERNMENT FUND
- ------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of period ...... $11.65 $12.02 $12.19 $12.16 $11.66 $11.70
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.19 0.29 0.27 0.50 0.56 0.57
Net realized and unrealized
gains (losses) on investments .......... (0.25) (0.25) (0.10) 0.10 0.52 (0.01)(e)
- ------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
INVESTMENT OPERATIONS ................... (0.06) 0.04 0.17 0.60 1.08 0.56
- ------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.17 0.29 0.33 0.52 0.58 0.59
Net realized gains ...................... -- 0.09 0.01 0.05 -- 0.01
Return of capital ....................... -- 0.03 -- -- -- --
- ------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.17 0.41 0.34 0.57 0.58 0.60
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $11.42 $11.65 $12.02 $12.19 $12.16 $11.66
============================================================================================================
TOTAL RETURN (A) .......................... (0.50)% 0.30% 1.45% 4.94% 9.55% 4.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $4,669 $5,044 $5,206 $3,399 $972 $347
Ratios to average net assets:
Net investment income* ................. 3.27% 2.44% 2.20% 4.11% 4.77% 4.94%
Net expenses* .......................... 1.37% 1.35% 1.32% 1.30% 1.30% 1.28%
Gross expenses* ........................ 1.45% 1.46% 1.40% 1.41% 1.44% 1.35%
Portfolio turnover rate ................. 27% 89% 110% 42% 79% 170%
- ------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ...... $11.65 $12.02 $12.19 $12.16 $11.66 $11.70
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.18 0.26 0.24 0.48 0.52 0.56
Net realized and unrealized
gains (losses) on investments .......... (0.25) (0.24) (0.09) 0.10 0.55 (0.02)(e)
- ---------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
INVESTMENT OPERATIONS ................... (0.07) 0.02 0.15 0.58 1.07 0.54
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.16 0.27 0.31 0.50 0.57 0.57
Net realized gains ...................... -- 0.09 0.01 0.05 -- 0.01
Return of capital ....................... -- 0.03 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.16 0.39 0.32 0.55 0.57 0.58
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $11.42 $11.65 $12.02 $12.19 $12.16 $11.66
===============================================================================================================
TOTAL RETURN (A) .......................... (0.58)% 0.14% 1.29% 4.78% 9.38% 4.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $6,389 $7,591 $8,281 $3,762 $767 $121
Ratios to average net assets:
Net investment income* ................. 3.11% 2.24% 1.99% 3.94% 4.41% 4.93%
Net expenses* .......................... 1.52% 1.50% 1.47% 1.44% 1.45% 1.43%
Gross expenses* ........................ 1.61% 1.61% 1.55% 1.57% 1.62% 1.48%
Portfolio turnover rate ................. 27% 89% 110% 42% 79% 170%
- ---------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ---------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of period ...... $11.63 $12.00 $12.17 $12.13 $11.67 $11.71
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.25 0.38 0.40 0.59 0.75 0.74
Net realized and unrealized
gains (losses) on investments .......... (0.26) (0.23) (0.12) 0.12 0.40 (0.08)(e)
- ---------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
INVESTMENT OPERATIONS ................... (0.01) 0.15 0.28 0.71 1.15 0.66
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.22 0.40 0.44 0.62 0.69 0.69
Net realized gains ...................... -- 0.09 0.01 0.05 -- 0.01
Return of capital ....................... -- 0.03 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.22 0.52 0.45 0.67 0.69 0.70
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $11.40 $11.63 $12.00 $12.17 $12.13 $11.67
===============================================================================================================
TOTAL RETURN (A) .......................... (0.08)% 1.26% 2.32% 6.06% 10.11% 5.85%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $8,081 $7,821 $1,160 $3,272 $2,194 $49,358
Ratios to average net assets:
Net investment income* ................. 4.12% 3.41% 3.33% 4.95% 6.36% 6.34%
Net expenses* .......................... 0.52% 0.50% 0.47% 0.45% 0.42% 0.42%
Gross expenses* ........................ 0.60% 0.62% 0.52% 0.54% 0.44% 0.42%
Portfolio turnover rate ................. 27% 89% 110% 42% 79% 170%
- ---------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
101
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE TAX-EXEMPT FUND
- ----------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ----------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of period ...... $12.04 $12.19 $12.21 $11.75 $11.16 $11.14
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.23 0.43 0.44 0.47 0.53 0.53
Net realized and unrealized
gains (losses) on investments .......... (0.30) (0.15) (0.02) 0.47 0.59 0.02
- ----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... (0.07) 0.28 0.42 0.94 1.12 0.55
- ----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.22 0.43 0.44 0.48 0.53 0.53
- ----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.22 0.43 0.44 0.48 0.53 0.53
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $11.75 $12.04 $12.19 $12.21 $11.75 $11.16
================================================================================================================
TOTAL RETURN (A) .......................... (0.57%) 2.37% 3.54% 8.29% 10.27% 5.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $34,252 $40,638 $41,541 $36,512 $26,304 $19,543
Ratios to average net assets:
Net investment income* ................. 3.75% 3.58% 3.59% 4.03% 4.62% 4.81%
Net expenses* .......................... 0.87% 0.87% 0.85% 0.85% 0.80% 0.85%
Gross expenses* ........................ 0.97% 0.90% 0.86% 0.86% 0.83% 0.99%
Portfolio turnover rate ................. 9% 17% 30% 32% 12% 45%
- ----------------------------------------------------------------------------------------------------------------
GE TAX-EXEMPT FUND
- -------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of period ...... $12.04 $12.18 $12.21 $11.75 $11.16 $11.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.18 0.34 0.35 0.39 0.45 0.45
Net realized and unrealized
gains (losses) on investments .......... (0.29) (0.14) (0.03) 0.47 0.59 0.03
- -------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... (0.11) 0.20 0.32 0.86 1.04 0.48
- -------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.18 0.34 0.35 0.40 0.45 0.45
- -------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.18 0.34 0.35 0.40 0.45 0.45
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $11.75 $12.04 $12.18 $12.21 $11.75 $11.16
=============================================================================================================
TOTAL RETURN (A) .......................... (0.94%) 1.69% 2.69% 7.49% 9.44% 4.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $2,102 $2,582 $3,779 $4,108 $4,739 $5,397
Ratios to average net assets:
Net investment income* ................. 2.99% 2.82% 2.89% 3.31% 3.88% 4.07%
Net expenses* .......................... 1.62% 1.62% 1.60% 1.59% 1.55% 1.60%
Gross expenses* ........................ 1.72% 1.66% 1.61% 1.60% 1.59% 1.74%
Portfolio turnover rate ................. 9% 17% 30% 32% 12% 45%
- -------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -----------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ...... $12.04 $12.18 $12.21 $11.75 $11.16 $11.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.18 0.34 0.35 0.35 0.45 0.44
Net realized and unrealized gains
(losses) on investments ................ (0.29) (0.14) (0.03) 0.50 0.59 0.04
- -----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... (0.11) 0.20 0.32 0.85 1.04 0.48
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.18 0.34 0.35 0.39 0.45 0.45
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.18 0.34 0.35 0.39 0.45 0.45
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $11.75 $12.04 $12.18 $12.21 $11.75 $11.16
=================================================================================================================
TOTAL RETURN (A) .......................... (0.94%) 1.69% 2.77% 7.37% 9.44% 4.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $1,424 $1,771 $2,711 $3,364 $115 $105
Ratios to average net assets:
Net investment income* ................. 3.00% 2.83% 2.90% 2.92% 3.88% 4.06%
Net expenses* .......................... 1.62% 1.62% 1.60% 1.60% 1.55% 1.60%
Gross expenses* ........................ 1.73% 1.66% 1.60% 1.69% 1.59% 1.73%
Portfolio turnover rate ................. 9% 17% 30% 32% 12% 45%
- -----------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- --------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/26/97
Net asset value, beginning of period ...... $13.04 $13.18 $12.70 $12.22 $11.61 $11.58
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.26 0.50 0.48 0.53 0.58 0.58
Net realized and unrealized gains
(losses) on investments ................ (0.31) (0.14) 0.50** 0.48 0.61 0.03
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... (0.05) 0.36 0.98 1.01 1.19 0.61
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.26 0.50 0.50** 0.53 0.58 0.58
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.26 0.50 0.50 0.53 0.58 0.58
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $12.73 $13.04 $13.18 $12.70 $12.22 $11.61
====================================================================================================================
TOTAL RETURN (A) .......................... (0.41%) 2.81% 7.88%** 8.56% 10.50% 5.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $33 $33 $287 $30 $28 $25
Ratios to average net assets:
Net investment income* ................. 3.99% 3.81% 3.70% 4.31% 4.88% 5.07%
Net expenses* .......................... 0.61% 0.62% 0.62% 0.60% 0.55% 0.59%
Gross expenses* ........................ 0.71% 0.66% 0.63% 0.61% 0.58% 0.73%
Portfolio turnover rate ................. 9% 17% 30% 32% 12% 45%
- --------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
102
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE FIXED INCOME FUND
- -------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of period ...... $12.56 $12.78 $12.75 $12.41 $11.72 $11.76
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.22 0.41 0.41 0.55 0.67 0.70
Net realized and unrealized
gains (losses) on investments .......... (0.21) (0.04) 0.16 0.35 0.72 (0.03)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... 0.01 0.37 0.57 0.90 1.39 0.67
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.22 0.42 0.44 0.56 0.70 0.71
Net realized gains ...................... 0.23 0.17 0.10 -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.45 0.59 0.54 0.56 0.70 0.71
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $12.12 $12.56 $12.78 $12.75 $12.41 $11.72
===================================================================================================================
TOTAL RETURN (A) .......................... 0.00% 2.99% 4.58% 7.62% 12.12% 5.94%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $146,297 $153,014 $167,091 $143,442 $129,413 $100,745
Ratios to average net assets:
Net investment income* ................. 3.56% 3.30% 3.20% 4.45% 5.54% 6.04%
Net expenses* .......................... 0.80% 0.78% 0.78% 0.80% 0.80% 0.80%
Gross expenses* ........................ 0.81% 0.79% 0.78% 0.82% 0.81% 0.80%
Portfolio turnover rate ................. 158% 363% 381% 308% 270% 219%
- -------------------------------------------------------------------------------------------------------------------
GE FIXED INCOME FUND
- ----------------------------------------------------------------------------------------------------------------
CLASS B
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ----------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period ...... $12.56 $12.78 $12.76 $12.41 $11.73 $11.77
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.17 0.32 0.31 0.46 0.58 0.61
Net realized and unrealized
gains (losses) on investments .......... (0.21) (0.04) 0.15 0.36 0.71 (0.03)
- ----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... (0.04) 0.28 0.46 0.82 1.29 0.58
- ----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.17 0.33 0.34 0.47 0.61 0.62
Net realized gains ...................... 0.23 0.17 0.10 -- -- --
- ----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.40 0.50 0.44 0.47 0.61 0.62
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $12.12 $12.56 $12.78 $12.76 $12.41 $11.73
================================================================================================================
TOTAL RETURN (A) .......................... (0.37%) 2.22% 3.71% 6.73% 11.26% 5.15%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,955 $3,208 $3,555 $3,242 $2,501 $2,042
Ratios to average net assets:
Net investment income* ................. 2.81% 2.55% 2.45% 3.72% 4.78% 5.24%
Net expenses* .......................... 1.55% 1.53% 1.53% 1.55% 1.55% 1.55%
Gross expenses* ........................ 1.56% 1.54% 1.54% 1.57% 1.56% 1.55%
Portfolio turnover rate ................. 158% 363% 381% 308% 270% 219%
- ----------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/30/99
Net asset value, beginning of period ...... $12.57 $12.79 $12.76 $12.41 $11.73 $11.77
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.17 0.32 0.30 0.46 0.58 0.62
Net realized and unrealized
gains (losses) on investments .......... (0.21) (0.04) 0.17 0.36 0.71 (0.04)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... (0.04) 0.28 0.47 0.82 1.29 0.58
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.17 0.33 0.34 0.47 0.61 0.62
Net realized gains ...................... 0.23 0.17 0.10 -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.40 0.50 0.44 0.47 0.61 0.62
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $12.13 $12.57 $12.79 $12.76 $12.41 $11.73
===================================================================================================================
TOTAL RETURN (A) .......................... (0.37%) 2.22% 3.78% 6.82% 11.28% 5.15%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $1,695 $2,681 $3,274 $1,712 $305 $298
Ratios to average net assets:
Net investment income* ................. 2.82% 2.55% 2.36% 3.64% 4.82% 5.40%
Net expenses* .......................... 1.55% 1.53% 1.52% 1.54% 1.55% 1.55%
Gross expenses* ........................ 1.57% 1.54% 1.53% 1.58% 1.56% 1.55%
Portfolio turnover rate ................. 158% 363% 381% 308% 270% 219%
- -------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- -------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 11/29/93
Net asset value, beginning of period ...... $12.55 $12.77 $12.75 $12.40 $11.71 $11.76
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b) ............... 0.24 0.44 0.44 0.59 0.70 0.74
Net realized and unrealized
gains (losses) on investments .......... (0.22) (0.04) 0.15 0.35 0.72 (0.05)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................... 0.02 0.40 0.59 0.94 1.42 0.69
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.23 0.45 0.47 0.59 0.73 0.74
Net realized gains ...................... 0.23 0.17 0.10 -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.46 0.62 0.57 0.59 0.73 0.74
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $12.11 $12.55 $12.77 $12.75 $12.40 $11.71
===================================================================================================================
TOTAL RETURN (A) .......................... 0.12% 3.24% 4.75% 7.81% 12.49% 6.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................... $84,675 $94,622 $110,539 $86,653 $78,626 $59,259
Ratios to average net assets:
Net investment income* ................. 3.81% 3.55% 3.45% 4.75% 5.77% 6.34%
Net expenses* .......................... 0.55% 0.53% 0.53% 0.55% 0.55% 0.55%
Gross expenses* ........................ 0.56% 0.54% 0.53% 0.57% 0.56% 0.55%
Portfolio turnover rate ................. 158% 363% 381% 308% 270% 219%
- -------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
103
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------
3/31/05+ 9/30/04 9/30/03 9/30/02 9/30/01 9/30/00
- ------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of period ...... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ..................... 0.01 0.01 0.01(b) 0.02(b) 0.05 0.06
- ------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS ... 0.01 0.01 0.01 0.02 0.05 0.06
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.01 0.01 0.01 0.02 0.05 0.06
- ------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.01 0.01 0.01 0.02 0.05 0.06
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==================================================================================================================
TOTAL RETURN (A) .......................... 0.91% 0.89% 0.96% 1.68% 4.86% 5.81%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $217,785 $234,979 $269,533 $255,169 $278,435 $268,886
Ratios to average net assets:
Net investment income* ................. 1.82% 0.85% 0.94% 1.69% 4.75% 5.69%
Net expenses* .......................... 0.40% 0.35% 0.41% 0.45% 0.49% 0.50%
Gross expenses* ....................... 0.41% 0.35% 0.41% 0.45% 0.50% 0.50%
- ------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
104
Notes to Financial Highlights
(a) Total returns are historical and assume changes in share price, reinvestment
of dividends and capital gains distributions, and assume no sales charge.
Had the adviser not absorbed a portion of expenses, total returns would have
been lower. Periods less than one year are not annualized.
(b) Net investment income per share is based on average shares outstanding
during the period.
(c) Certain reclassifications were made to the prior periods' Financial
Highlights of GE Government Securities Fund relating to distributions for
presentation purposes only. These reclassifications had no effect on the net
assets or net asset value per share.
(d) Less than $0.01 per share.
* Annualized for periods less than one year.
** The Fund recorded an accounting adjustment for $1,100 in 2003 which enhanced
performance due to the small size of this share class. Absent this
adjustment, the performance for the Class Y Shares would have been 3.80%.
The Fund's net realized and unrealized gains (losses) on investments and
distributions from net investment income would have been (0.01) per share
without this adjustment.
+ Unaudited.
See Notes to Financial Statements.
105
Statements of Assets
and Liabilities MARCH 31, 2005 (UNAUDITED)
GE GE
U.S. VALUE
EQUITY EQUITY
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market** (cost $611,987,465;
$51,075,900; $76,933,962; $43,383,700; $77,064,484; and
$596,053,053, respectively) ........................................... $675,992,388 $58,706,098
Short-term investments (at amortized cost) ............................... 11,774,239 35,808
Short-term affiliated investments (at amortized cost) .................... 11,951,894 1,131,989
Restricted cash*** ....................................................... -- --
Foreign currency (cost $0; $0; $0; $51,580; $506,842;
and $0, respectively) ................................................. -- --
Receivable for investments sold .......................................... 26,266,941 555,201
Income receivables ....................................................... 740,772 81,646
Receivable for fund shares sold .......................................... 431,358 9,350
Variation margin receivable .............................................. -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS .......................................................... 727,157,592 60,520,092
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable upon return of securities loaned ................................. 11,289,239 35,808
Payable for investments purchased ........................................ 4,140,373 504,122
Payable for fund shares redeemed ......................................... 28,510,805 56,364
Payable to GEAM .......................................................... 322,331 57,591
Variation margin payable ................................................. 4,921 375
Options written, at market (premium received $0;
$0; $37,073; $0; $0; and $0, respectively) ............................ -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ..................................................... 44,267,669 654,260
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ................................................................. 682,889,923 59,865,832
=================================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in .......................................................... 623,372,546 51,174,718
Undistributed net investment income ...................................... 5,264,828 154,928
Accumulated net realized gain (loss) ..................................... (9,769,257) 907,313
NET UNREALIZED APPRECIATION/(DEPRECIATION) ON:
Investments ........................................................... 64,004,923 7,630,198
Futures ............................................................... 16,883 (1,325)
Written options ....................................................... -- --
Foreign currency related transactions ................................. -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................................. $682,889,923 $59,865,832
=================================================================================================================================
CLASS A:
Net assets .................................................................. $350,452,123 $49,606,431
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 12,584,153 4,395,415
Net asset value per share ................................................... $27.85 $11.29
Maximum offering price per share ............................................ $29.55 $11.98
CLASS B:
Net assets .................................................................. $16,229,792 $8,419,812
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 608,924 776,755
Net asset value per share* .................................................. $26.65 $10.84
CLASS C: (LEVEL LOAD)
Net assets .................................................................. $10,684,120 $1,793,698
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 405,145 166,130
Net asset value per share* .................................................. $26.37 $10.80
CLASS Y:
Net assets .................................................................. $305,523,888 $45,891
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 11,011,090 3,852
Net asset value per share ................................................... $27.75 $11.91
GE GE
SMALL-CAP GLOBAL
VALUE EQUITY EQUITY
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market** (cost $611,987,465;
$51,075,900; $76,933,962; $43,383,700; $77,064,484; and
$596,053,053, respectively) ........................................... $93,472,745 $50,221,196
Short-term investments (at amortized cost) ............................... 12,909,915 7,682,014
Short-term affiliated investments (at amortized cost) .................... 814,858 494,281
Restricted cash*** ....................................................... -- --
Foreign currency (cost $0; $0; $0; $51,580; $506,842;
and $0, respectively) ................................................. -- 51,744
Receivable for investments sold .......................................... 311,635 195,476
Income receivables ....................................................... 78,641 122,101
Receivable for fund shares sold .......................................... 57,773 7,454
Variation margin receivable .............................................. -- 134
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS .......................................................... 107,645,567 58,774,400
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable upon return of securities loaned ................................. 12,909,915 7,682,014
Payable for investments purchased ........................................ 469,121 205,418
Payable for fund shares redeemed ......................................... 152,806 1,033,274
Payable to GEAM .......................................................... 75,817 54,753
Variation margin payable ................................................. -- --
Options written, at market (premium received $0;
$0; $37,073; $0; $0; and $0, respectively) ............................ 1,905 --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ..................................................... 13,609,564 8,975,459
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ................................................................. 94,036,003 49,798,941
=================================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in .......................................................... 75,871,844 53,377,396
Undistributed net investment income ...................................... 458,078 72,161
Accumulated net realized gain (loss) ..................................... 1,132,130 (10,487,295)
NET UNREALIZED APPRECIATION/(DEPRECIATION) ON:
Investments ........................................................... 16,538,783 6,837,496
Futures ............................................................... -- (1,654)
Written options ....................................................... 35,168 --
Foreign currency related transactions ................................. -- 837
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................................. $94,036,003 $49,798,941
=================================================================================================================================
CLASS A:
Net assets .................................................................. $51,147,504 $31,079,021
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 3,548,433 1,576,363
Net asset value per share ................................................... $14.41 $19.72
Maximum offering price per share ............................................ $15.29 $20.92
CLASS B:
Net assets .................................................................. 11,658,959 $920,638
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 854,425 50,434
Net asset value per share* .................................................. $13.65 $18.25
CLASS C: (LEVEL LOAD)
Net assets .................................................................. $9,215,436 $348,613
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 677,187 18,967
Net asset value per share* .................................................. $13.61 $18.38
CLASS Y:
Net assets .................................................................. $22,014,104 $17,450,669
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 1,501,660 882,551
Net asset value per share ................................................... $14.66 $19.77
GE GE
INTERNATIONAL PREMIER
EQUITY GROWTH
FUND EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market** (cost $611,987,465;
$51,075,900; $76,933,962; $43,383,700; $77,064,484; and
$596,053,053, respectively) ........................................... $92,022,117 $640,554,089
Short-term investments (at amortized cost) ............................... 26,864,721 6,082,786
Short-term affiliated investments (at amortized cost) .................... 613,114 24,323,939
Restricted cash*** ....................................................... 151,758 --
Foreign currency (cost $0; $0; $0; $51,580; $506,842;
and $0, respectively) ................................................. 507,777 --
Receivable for investments sold .......................................... 693,619 3,739,348
Income receivables ....................................................... 291,284 356,790
Receivable for fund shares sold .......................................... 457,542 1,576,532
Variation margin receivable .............................................. -- 3,860
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS .......................................................... 121,601,932 676,637,344
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable upon return of securities loaned ................................. 26,864,721 6,082,786
Payable for investments purchased ........................................ 354,063 3,660,836
Payable for fund shares redeemed ......................................... 163,267 3,717,181
Payable to GEAM .......................................................... 93,254 405,042
Variation margin payable ................................................. 668 --
Options written, at market (premium received $0;
$0; $37,073; $0; $0; and $0, respectively) ............................ -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ..................................................... 27,475,973 13,865,845
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ................................................................. 94,125,959 662,771,499
===============================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in .......................................................... 92,541,901 631,570,865
Undistributed net investment income ...................................... 91,336 781,677
Accumulated net realized gain (loss) ..................................... (13,460,448) (14,074,847)
NET UNREALIZED APPRECIATION/(DEPRECIATION) ON:
Investments ........................................................... 14,957,633 44,501,036
Futures ............................................................... (3,817) (7,232)
Written options ....................................................... -- --
Foreign currency related transactions ................................. (646) --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................................. $94,125,959 $662,771,499
===============================================================================================================================
CLASS A:
Net assets .................................................................. $26,506,767 $360,180,053
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 1,842,919 13,928,661
Net asset value per share ................................................... $14.38 $25.86
Maximum offering price per share ............................................ $15.26 $27.44
CLASS B:
Net assets .................................................................. $1,184,885 $33,442,895
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 88,105 1,374,750
Net asset value per share* .................................................. $13.45 $24.33
CLASS C: (LEVEL LOAD)
Net assets .................................................................. $1,178,133 $68,284,519
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 87,204 2,805,975
Net asset value per share* .................................................. $13.51 $24.34
CLASS Y:
Net assets .................................................................. $65,256,174 $200,864,032
Shares outstanding ($.001 par value; unlimited shares authorized) ........... 4,502,970 7,653,197
Net asset value per share ................................................... $14.49 $26.25
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
** Includes $10,796,270; $35,569; $12,629,320; $7,336,442; $25,619,486 and
$5,939,758 of securities on loan in the GE U.S. Equity Fund, GE Value
Equity, GE Small-Cap Value Equity Fund, GE Global Equity Fund, GE
International Equity Fund, GE Premier Growth Equity Fund, respectively.
*** Cash on deposit with a broker as collateral for international futures
contracts.
See Notes to Financial Statements.
106 & 107
Statements of Assets
and Liabilities MARCH 31, 2005 (UNAUDITED)
GE GE
STRATEGIC GOVERNMENT
INVESTMENT SECURITIES
FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market*** (cost $250,717,244;
$187,277,789; $76,599,506; $33,669,183; $270,968,601;
and $0, respectively) .............................................. $271,162,495 $187,409,797
Short-term investments (at amortized cost) ............................ 16,173,886 --
Short-term affiliated investments (at amortized cost) ................. 5,870,512 21,463,249
Foreign currency (cost $250,325; $0; $0; $0; $0;
and $0, respectively) .............................................. 254,634 --
Receivable for investments sold ....................................... 11,843,009 24,953
Income receivables .................................................... 809,801 1,423,965
Receivable for fund shares sold ....................................... 282,349 5,327
Variation margin receivable ........................................... 3,252 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................................................... 306,399,938 210,327,291
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distribution payable to shareholders .................................. -- 121,522
Payable upon return of securities loaned .............................. 16,173,886 45,248,597
Payable for investments purchased ..................................... 23,134,628 1,136,452
Payable for fund shares redeemed ...................................... 1,661,736 51,916
Payable to GEAM ....................................................... 127,604 84,294
Variation margin payable .............................................. -- 51,662
Options written, at market (premium received $13,308; $24,953;
$0; $0; $44,915; and $0, respectively) ............................. 13,308 24,953
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................................................. 41,111,162 46,719,396
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .............................................................. 265,288,776 163,607,895
==============================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in ....................................................... 235,601,823 176,750,456
Undistributed (distribution in excess of) net investment income ....... 903,548 (60,276)
Accumulated net realized gain (loss) .................................. 8,352,437 (13,142,047)
NET UNREALIZED APPRECIATION/(DEPRECIATION) ON:
Investments ........................................................ 20,445,251 132,008
Futures ............................................................ (17,684) (72,246)
Written options .................................................... -- --
Foreign currency related transactions .............................. 3,401 --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................................................... $265,288,776 $163,607,895
==============================================================================================================================
CLASS A:
Net assets ............................................................... $132,794,734 $160,337,698
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 5,511,162 18,512,518
Net asset value per share ................................................ $24.10 $8.66
Maximum offering price per share ......................................... $25.57 $9.04
CLASS B:
Net assets ............................................................... $18,873,699 $2,692,116
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 806,580 308,111
Net asset value per share* ............................................... $23.40 $8.74
CLASS C: (LEVEL LOAD)
Net assets ............................................................... $16,733,726 $578,081
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 730,544 65,944
Net asset value per share* ............................................... $22.91 $8.77
CLASS Y:
Net assets ............................................................... $96,886,617 --
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 4,014,932 --
Net asset value per share ................................................ $24.13 --
GE
SHORT-TERM GE
GOVERNMENT TAX-EXEMPT
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market*** (cost $250,717,244;
$187,277,789; $76,599,506; $33,669,183; $270,968,601;
and $0, respectively) .............................................. $74,159,273 $34,744,042
Short-term investments (at amortized cost) ............................ -- 720,000
Short-term affiliated investments (at amortized cost) ................. 10,113,527 1,863,160
Foreign currency (cost $250,325; $0; $0; $0; $0;
and $0, respectively) .............................................. -- --
Receivable for investments sold ....................................... 2,991,128 --
Income receivables .................................................... 453,940 557,246
Receivable for fund shares sold ....................................... 26,412 15,664
Variation margin receivable ........................................... -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................................................... 87,744,280 37,900,112
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distribution payable to shareholders .................................. 17,827 28,848
Payable upon return of securities loaned .............................. 18,504,938 --
Payable for investments purchased ..................................... 3,732,132 --
Payable for fund shares redeemed ...................................... 90,103 39,656
Payable to GEAM ....................................................... 31,476 20,078
Variation margin payable .............................................. -- --
Options written, at market (premium received $13,308; $24,953;
$0; $0; $44,915; and $0, respectively) ............................. -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................................................. 22,376,476 88,582
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .............................................................. 65,367,804 37,811,530
=================================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in ....................................................... 68,544,313 37,062,592
Undistributed (distribution in excess of) net investment income ....... 93,882 50,899
Accumulated net realized gain (loss) .................................. (830,158) (376,820)
NET UNREALIZED APPRECIATION/(DEPRECIATION) ON:
Investments ........................................................ (2,440,233) 1,074,859
Futures ............................................................ -- --
Written options .................................................... -- --
Foreign currency related transactions .............................. -- --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................................................... $65,367,804 $37,811,530
=================================================================================================================================
CLASS A:
Net assets ............................................................... $46,228,165 $34,251,698
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 4,041,971 2,914,843
Net asset value per share ................................................ $11.44 $11.75
Maximum offering price per share ......................................... $11.73 $12.27
CLASS B:
Net assets ............................................................... $4,669,267 $2,102,212
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 408,899 178,946
Net asset value per share* ............................................... $11.42 $11.75
CLASS C: (LEVEL LOAD)
Net assets ............................................................... 6,388,905 $1,424,392
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 559,441 121,264
Net asset value per share* ............................................... $11.42 $11.75
CLASS Y:
Net assets ............................................................... $8,081,467 $33,228
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 708,950 2,611
Net asset value per share ................................................ $11.40 $12.73
GE GE
FIXED MONEY
INCOME MARKET
FUND FUND**
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market*** (cost $250,717,244;
$187,277,789; $76,599,506; $33,669,183; $270,968,601;
and $0, respectively) .............................................. $ $267,635,861 $ --
Short-term investments (at amortized cost) ............................ -- 217,515,178
Short-term affiliated investments (at amortized cost) ................. 26,210,894 --
Foreign currency (cost $250,325; $0; $0; $0; $0;
and $0, respectively) .............................................. -- --
Receivable for investments sold ....................................... 30,598,342 --
Income receivables .................................................... 2,026,553 400,532
Receivable for fund shares sold ....................................... 162,685 483,622
Variation margin receivable ........................................... -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................................................... 326,634,335 218,399,332
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distribution payable to shareholders .................................. 65,259 12,117
Payable upon return of securities loaned .............................. 23,689,153 --
Payable for investments purchased ..................................... 65,620,951 --
Payable for fund shares redeemed ...................................... 1,474,832 529,881
Payable to GEAM ....................................................... 110,819 72,397
Variation margin payable .............................................. 7,180 --
Options written, at market (premium received $13,308; $24,953;
$0; $0; $44,915; and $0, respectively) ............................. 44,915 --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................................................. 91,013,109 614,395
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .............................................................. 235,621,226 217,784,937
==============================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in ....................................................... 238,800,931 217,796,329
Undistributed (distribution in excess of) net investment income ....... 628,876 (5,584)
Accumulated net realized gain (loss) .................................. (379,268) (5,808)
NET UNREALIZED APPRECIATION/(DEPRECIATION) ON:
Investments ........................................................ (3,332,740) --
Futures ............................................................ (96,573) --
Written options .................................................... -- --
Foreign currency related transactions .............................. -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................................................... $ $235,621,226 $217,784,937
==============================================================================================================================
CLASS A:
Net assets ............................................................... $ $146,296,972 $217,784,937
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 12,074,750 217,860,276
Net asset value per share ................................................ $12.12 $1.00
Maximum offering price per share ......................................... $12.66 --
CLASS B:
Net assets ............................................................... $2,954,618 --
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 243,847 --
Net asset value per share* ............................................... $12.12 --
CLASS C: (LEVEL LOAD)
Net assets ............................................................... $1,695,013 --
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 139,722 --
Net asset value per share* ............................................... $12.13 --
CLASS Y:
Net assets ............................................................... $84,674,623 --
Shares outstanding ($.001 par value; unlimited shares authorized) ........ 6,994,045 --
Net asset value per share ................................................ $12.11 --
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
** GE Money Market Fund is no load fund offering only one class of share to
all investors.
*** Includes $23,247,827; $44,450,295; $18,146,826 and $15,428,680 of
securities on loan in the GE Fixed Income Fund, GE Government Securities
Fund, GE Short-Term Government Fund and GE Strategic Investment Fund,
respectively.
See Notes to Financial Statements.
108 & 109
Statements of Operations
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
GE GE
U.S. VALUE
EQUITY EQUITY
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividends ................................................. $ 8,707,969 $ 752,086
Interest* ................................................. 10,888 207
Interest from affliated investments ....................... 136,827 7,058
Less: Foreign taxes withheld .............................. (31,359) (2,104)
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................................. 8,824,325 757,247
- ---------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees .......................... 1,466,115 170,414
Distributors fees (Notes 4 & 8)
Class A ................................................ 449,133 61,785
Class B ................................................ 91,166 46,670
Class C ................................................ 60,281 8,869
Blue Sky fees ............................................. 25,174 18,966
Transfer agent fees ....................................... 263,681 45,652
Trustees fees ............................................. 10,840 985
Custody and accounting expenses ........................... 39,528 32,120
Professional fees ......................................... 69,492 6,314
Registration and other expenses ........................... 63,604 9,176
- ---------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER AND REIMBURSEMENT ............... 2,539,014 400,951
Less: Fee reimbursed from transfer agent
(See Note 2) ........................................... (17,563) (5,959)
Less: Expenses waived or borne by the adviser ............. -- (795)
Add: Expenses reimbursed to the adviser ................... -- 5,450
- ---------------------------------------------------------------------------------------------------------------------
Net expenses .............................................. 2,521,451 399,647
- ---------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME ........................................ 6,302,874 357,600
=====================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ............................................ 26,688,318 2,092,482
Futures ................................................ 300,847 39,493
Written options ........................................ -- --
Foreign currency related transactions .................. -- --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON:
Investments ............................................ 11,344,163 1,677,486
Futures ................................................ 20,283 (1,325)
Written options ........................................ -- --
Foreign currency related transactions .................. -- --
- ---------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments ......................................... 38,353,611 3,808,136
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................... $44,656,485 $4,165,736
=====================================================================================================================
GE GE
SMALL-CAP GLOBAL
VALUE EQUITY EQUITY
FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividends ................................................. $1,005,817 $ 589,286
Interest* ................................................. 7,788 6,023
Interest from affliated investments ....................... 12,983 5,194
Less: Foreign taxes withheld .............................. (547) (27,900)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................................. 1,026,041 572,603
- ------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees .......................... 335,216 193,413
Distributors fees (Notes 4 & 8)
Class A ................................................ 63,400 39,641
Class B ................................................ 59,140 5,167
Class C ................................................ 48,225 2,085
Blue Sky fees ............................................. 20,277 19,900
Transfer agent fees ....................................... 44,056 52,952
Trustees fees ............................................. 1,561 735
Custody and accounting expenses ........................... 29,108 33,890
Professional fees ......................................... 10,007 4,712
Registration and other expenses ........................... 14,799 7,932
- ------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER AND REIMBURSEMENT ............... 625,789 360,427
Less: Fee reimbursed from transfer agent
(See Note 2) ........................................... (3,516) (5,343)
Less: Expenses waived or borne by the adviser ............. -- --
Add: Expenses reimbursed to the adviser ................... -- --
- ------------------------------------------------------------------------------------------------------------------------
Net expenses .............................................. 622,273 355,084
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME ........................................ 403,768 217,519
========================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ............................................ 1,749,172 2,394,396
Futures ................................................ -- (5,798)
Written options ........................................ 76,304 --
Foreign currency related transactions .................. -- 16,019
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON:
Investments ............................................ 7,714,062 1,848,217
Futures ................................................ -- (4,543)
Written options ........................................ 35,168 --
Foreign currency related transactions .................. -- (520)
- ------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments ......................................... 9,574,706 4,247,771
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................... $9,978,474 $4,465,290
========================================================================================================================
GE GE
INTERNATIONAL PREMIER
EQUITY GROWTH
FUND EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividends ................................................. $ 691,543 $ 5,584,456
Interest* ................................................. 20,528 5,518
Interest from affliated investments ....................... 19,197 271,197
Less: Foreign taxes withheld .............................. (73,515) (42,445)
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................................. 657,753 5,818,726
- ---------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees .......................... 347,423 2,022,486
Distributors fees (Notes 4 & 8)
Class A ................................................ 31,140 487,689
Class B ................................................ 6,702 179,056
Class C ................................................ 5,932 354,828
Blue Sky fees ............................................. 23,932 28,054
Transfer agent fees ....................................... 75,744 166,673
Trustees fees ............................................. 1,047 8,470
Custody and accounting expenses ........................... 50,937 32,258
Professional fees ......................................... 6,712 54,299
Registration and other expenses ........................... 4,874 74,346
- ---------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER AND REIMBURSEMENT ............... 554,443 3,408,159
Less: Fee reimbursed from transfer agent
(See Note 2) ........................................... (2,369) (13,227)
Less: Expenses waived or borne by the adviser ............. -- --
Add: Expenses reimbursed to the adviser ................... -- --
- ---------------------------------------------------------------------------------------------------------------------
Net expenses .............................................. 552,074 3,394,932
- ---------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME ........................................ 105,679 2,423,794
=====================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ............................................ 7,556,028 5,781,083
Futures ................................................ 79,140 (56,311)
Written options ........................................ -- --
Foreign currency related transactions .................. (22,570) --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON:
Investments ............................................ 2,631,046 20,945,256
Futures ................................................ 200 (5,675)
Written options ........................................ -- --
Foreign currency related transactions .................. 3,814 --
- ---------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments ......................................... 10,247,658 26,664,353
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................... $10,353,337 $29,088,147
=====================================================================================================================
* Income attributable to security lending activity, net of rebate expenses,
for the GE U.S. Equity Fund, GE Value Equity Fund, GE Small-Cap Value
Equity Fund, GE Global Equity Fund, GE International Equity Fund and GE
Premier Growth Equity Fund was $5,661, $172, $7,376, $5,876, $18,229 and
$5,483, respectively.
See Notes to Financial Statements.
110 & 111
Statements of Operations
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
GE GE
STRATEGIC GOVERNMENT
INVESTMENT SECURITIES
FUND FUND
- -----------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividends .............................................. $ 2,065,427 $ --
Interest* .............................................. 1,343,896 3,181,770
Interest from affliated investments** .................. 134,331 132,303
Less: Foreign taxes withheld ........................... (46,961) --
- -----------------------------------------------------------------------------------------------------------------
TOTAL INCOME .............................................. 3,496,693 3,314,073
- -----------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ....................... 488,507 342,806
Distributors fees (Notes 4 & 8)
Class A ............................................. 167,173 206,390
Class B ............................................. 99,412 16,458
Class C ............................................. 84,503 4,905
Blue Sky fees .......................................... 20,226 21,278
Transfer agent fees .................................... 124,378 85,317
Trustees fees .......................................... 3,984 2,801
Custody and accounting expenses ........................ 63,848 43,148
Professional fees ...................................... 25,541 17,957
Registration and other expenses ........................ 26,721 15,070
- -----------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER AND REIMBURSEMENT ............ 1,104,293 756,130
Less: Fee reimbursed from transfer agent
(See Note 2) ........................................ (7,629) (11,108)
Less: Expenses waived or borne by the adviser .......... -- --
Add: Expenses reimbursed to the adviser ................ -- --
- -----------------------------------------------------------------------------------------------------------------
Net expenses ........................................... 1,096,664 745,022
- -----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .............................. 2,400,029 2,569,051
=================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ......................................... 10,605,916 414,435
Futures ............................................. (108,998) 63,149
Written options ..................................... 9,337 18,870
Foreign currency related transactions ............... 1,177 17,667
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON:
Investments ......................................... 1,435,492 (2,769,521)
Futures ............................................. (55,767) (144,500)
Written options ..................................... (6,276) (15,690)
Foreign currency related transactions ............... 7,104 --
- -----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain(loss)
on investments ...................................... 11,887,985 (2,415,590)
- -----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $14,288,014 $ 153,461
=================================================================================================================
GE
SHORT-TERM GE
GOVERNMENT TAX-EXEMPT
FUND FUND
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividends .............................................. $ -- $ --
Interest* .............................................. 1,584,809 918,597
Interest from affliated investments** .................. 59,172 13,539
Less: Foreign taxes withheld ........................... -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME .............................................. 1,643,981 932,136
- ------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ....................... 110,382 74,331
Distributors fees (Notes 4 & 8)
Class A ............................................. 63,667 45,564
Class B ............................................. 21,049 11,576
Class C ............................................. 35,761 7,854
Blue Sky fees .......................................... 20,667 20,548
Transfer agent fees .................................... 20,915 11,298
Trustees fees .......................................... 1,103 755
Custody and accounting expenses ........................ 43,109 27,659
Professional fees ...................................... 7,069 4,845
Registration and other expenses ........................ 9,627 5,840
- ------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER AND REIMBURSEMENT ............ 333,349 210,270
Less: Fee reimbursed from transfer agent
(See Note 2) ........................................ (2,369) (1,284)
Less: Expenses waived or borne by the adviser .......... (27,062) (18,548)
Add: Expenses reimbursed to the adviser ................ -- --
- ------------------------------------------------------------------------------------------------------------------------
Net expenses ........................................... 303,918 190,438
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .............................. 1,340,063 741,698
========================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ......................................... (276,577) 208,267
Futures ............................................. -- --
Written options ..................................... -- --
Foreign currency related transactions ............... -- --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON:
Investments ......................................... (1,256,954) (1,155,988)
Futures ............................................. -- --
Written options ..................................... -- --
Foreign currency related transactions ............... -- --
- ------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain(loss)
on investments ...................................... (1,533,531) (947,721)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $ (193,468) $ (206,023)
========================================================================================================================
GE GE
FIXED MONEY
INCOME MARKET
FUND FUND**
- -------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividends .............................................. $ 13,222 $ --
Interest* .............................................. 4,986,812 --
Interest from affliated investments** .................. 319,841 2,500,041
Less: Foreign taxes withheld ........................... -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME .............................................. 5,319,875 2,500,041
- -------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ....................... 432,225 285,640
Distributors fees (Notes 4 & 8)
Class A ............................................. 187,943 --
Class B ............................................. 15,526 --
Class C ............................................. 9,990 --
Blue Sky fees .......................................... 20,697 9,628
Transfer agent fees .................................... 107,931 87,114
Trustees fees .......................................... 3,935 3,668
Custody and accounting expenses ........................ 64,803 29,091
Professional fees ...................................... 25,229 23,514
Registration and other expenses ........................ 22,799 19,799
- -------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER AND REIMBURSEMENT ............ 891,078 458,454
Less: Fee reimbursed from transfer agent
(See Note 2) ........................................ (4,530) (9,664)
Less: Expenses waived or borne by the adviser .......... (6,097) --
Add: Expenses reimbursed to the adviser ................ 4,182 --
- -------------------------------------------------------------------------------------------------------------------
Net expenses ........................................... 884,633 448,790
- -------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .............................. 4,435,242 2,051,251
===================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ......................................... 41,162 --
Futures ............................................. 12,544 --
Written options ..................................... 32,069 --
Foreign currency related transactions ............... 25,981 --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON:
Investments ......................................... (4,119,470) --
Futures ............................................. (223,410) --
Written options ..................................... (21,182) --
Foreign currency related transactions ............... -- --
- -------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain(loss)
on investments ...................................... (4,252,306) --
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................ $ 182,936 $2,051,251
===================================================================================================================
* Income attributable to security lending activity, net of rebate expenses,
for the GE Strategic Investment Fund, GE Government Securities Fund, GE
Short-Term Government Fund and GE Fixed Income Fund was $13,792, $67,652,
$34,767, and $39,098, respectively.
** Income attributable to security lending activity, net of rebate expenses,
for the GE Government Securities Fund, GE Short-Term Government Fund, and
GE Fixed Income Fund was $58,656, $21,629, and $23,796, respectively.
See Notes to Financial Statements.
112 & 113
Statements of Changes
in Net Assets
GE
U.S.
EQUITY
FUND
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ............................................ $ 6,302,874 $ 6,145,759
Net realized gain on investments, futures, written options,
and foreign currency transactions ..................................... 26,989,165 17,522,116
Net increase in unrealized appreciation
on investments, futures, written options,
and foreign currency translations ..................................... 11,364,446 41,904,717
- -----------------------------------------------------------------------------------------------------------------------------
Net increase from operations ............................................ 44,656,485 65,572,592
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (2,489,403) (2,238,458)
Class B ............................................................... -- --
Class C ............................................................... -- (38,922)
Class Y ............................................................... (3,181,867) (2,903,268)
Net realized gains
Class A ............................................................... -- --
Class B ............................................................... -- --
Class C ............................................................... -- --
Class Y ............................................................... -- --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................................................... (5,671,270) (5,180,648)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions .......... 38,985,215 60,391,944
- -----------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ............................................................... 34,966,158 54,261,520
Class B ............................................................... 246,506 2,150,391
Class C ............................................................... 461,912 5,074,294
Class Y ............................................................... 31,354,362 45,293,875
Value of distributions reinvested
Class A ............................................................... 2,394,020 2,144,765
Class B ............................................................... -- --
Class C ............................................................... -- 35,812
Class Y ............................................................... 2,840,665 2,628,089
Proceeds from short-term trading fees
Class A ............................................................... -- --
Class B ............................................................... -- --
Class C ............................................................... -- --
Class Y ............................................................... -- --
Cost of shares redeemed
Class A ............................................................... (43,665,550) (63,599,170)
Class B ............................................................... (4,491,121) (7,272,981)
Class C ............................................................... (2,848,915) (3,880,705)
Class Y ............................................................... (93,809,003) (37,062,980)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ......................... (72,550,966) (227,090)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................................... (33,565,751) 60,164,854
NET ASSETS
Beginning of period ..................................................... 716,455,674 656,290,820
- -----------------------------------------------------------------------------------------------------------------------------
End of period ........................................................... $682,889,923 $716,455,674
=============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ............................................................. $ 5,264,828 $ 4,633,224
GE
VALUE
EQUITY
FUND
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ............................................ $ 357,600 $ 303,328
Net realized gain on investments, futures, written options,
and foreign currency transactions ..................................... 2,131,975 2,867,006
Net increase in unrealized appreciation
on investments, futures, written options,
and foreign currency translations ..................................... 1,676,161 4,995,305
- -----------------------------------------------------------------------------------------------------------------------------
Net increase from operations ............................................ 4,165,736 8,165,639
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (408,983) (364,130)
Class B ............................................................... -- --
Class C ............................................................... (641) (1,914)
Class Y ............................................................... (539) (41,197)
Net realized gains
Class A ............................................................... (1,493,549) --
Class B ............................................................... (298,376) --
Class C ............................................................... (55,797) --
Class Y ............................................................... (1,454) --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................................................... (2,259,339) (407,241)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions .......... 1,906,397 7,758,398
- -----------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ............................................................... 2,863,835 7,646,621
Class B ............................................................... 293,004 958,338
Class C ............................................................... 153,062 1,009,644
Class Y ............................................................... 9,261 30,560
Value of distributions reinvested
Class A ............................................................... 1,815,276 345,092
Class B ............................................................... 290,260 --
Class C ............................................................... 53,772 1,771
Class Y ............................................................... 1,993 41,195
Proceeds from short-term trading fees
Class A ............................................................... -- --
Class B ............................................................... -- --
Class C ............................................................... -- --
Class Y ............................................................... -- --
Cost of shares redeemed
Class A ............................................................... (4,641,018) (13,744,165)
Class B ............................................................... (2,240,415) (6,289,910)
Class C ............................................................... (162,286) (1,306,969)
Class Y ............................................................... (9,350) (6,663,244)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ......................... (1,572,606) (17,971,067)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................................... 333,791 (10,212,669)
NET ASSETS
Beginning of period ..................................................... 59,532,041 69,744,710
- -----------------------------------------------------------------------------------------------------------------------------
End of period ........................................................... $59,865,832 $ 59,532,041
=============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ............................................................. $ 154,928 $ 207,491
GE
SMALL-CAP
VALUE EQUITY
FUND
- ---------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ............................................ $ 403,768 $ (536,122)
Net realized gain on investments, futures, written options,
and foreign currency transactions ..................................... 1,825,476 16,708,049
Net increase in unrealized appreciation
on investments, futures, written options,
and foreign currency translations ..................................... 7,749,230 1,325,443
- ---------------------------------------------------------------------------------------------------------------------------
Net increase from operations ............................................ 9,978,474 17,497,370
- ---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... -- --
Class B ............................................................... -- --
Class C ............................................................... -- --
Class Y ............................................................... -- --
Net realized gains
Class A ............................................................... (6,729,169) --
Class B ............................................................... (1,614,581) --
Class C ............................................................... (1,323,648) --
Class Y ............................................................... (3,124,371) --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................................................... (12,791,769) --
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions .......... (2,813,295) 17,497,370
- ---------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ............................................................... 5,433,463 18,250,049
Class B ............................................................... 273,792 1,636,364
Class C ............................................................... 1,031,913 3,203,463
Class Y ............................................................... 2,068,829 8,824,956
Value of distributions reinvested
Class A ............................................................... 6,458,374 --
Class B ............................................................... 1,517,034 --
Class C ............................................................... 1,201,989 --
Class Y ............................................................... 2,895,763 --
Proceeds from short-term trading fees
Class A ............................................................... -- --
Class B ............................................................... -- --
Class C ............................................................... -- --
Class Y ............................................................... -- --
Cost of shares redeemed
Class A ............................................................... (8,086,792) (30,487,569)
Class B ............................................................... (1,628,104) (11,779,778)
Class C ............................................................... (2,311,832) (4,025,972)
Class Y ............................................................... (5,500,808) (8,879,304)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ......................... 3,353,621 (23,257,791)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................................... 540,326 (5,760,421)
NET ASSETS
Beginning of period ..................................................... 93,495,677 99,256,098
- ---------------------------------------------------------------------------------------------------------------------------
End of period ........................................................... $94,036,003 $ 93,495,677
===========================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ............................................................. $ 458,078 $ 54,310
GE
GLOBAL
EQUITY
FUND
- ---------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ................................................ $ 217,519 $ 137,403
Net realized gain on investments, futures, written options,
and foreign currency transactions ......................................... 2,404,617 1,014,460
Net increase in unrealized appreciation
on investments, futures, written options,
and foreign currency translations ......................................... 1,843,154 4,526,755
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ................................................ 4,465,290 5,678,618
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................... (156,397) (56,043)
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... (136,513) (64,306)
Net realized gains
Class A ................................................................... -- --
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................................... (292,910) (120,349)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions .............. 4,172,380 5,558,269
- ---------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................................................... 1,115,946 3,177,116
Class B ................................................................... 16,966 297,988
Class C ................................................................... 39,778 95,836
Class Y ................................................................... 1,509,245 4,189,334
Value of distributions reinvested
Class A ................................................................... 149,520 53,153
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... 136,513 64,308
Proceeds from short-term trading fees
Class A ................................................................... 1,022 1,491
Class B ................................................................... 31 51
Class C ................................................................... 12 21
Class Y ................................................................... 553 816
Cost of shares redeemed
Class A ................................................................... (3,135,168) (4,355,476)
Class B ................................................................... (236,605) (934,630)
Class C ................................................................... (152,545) (39,687)
Class Y ................................................................... (2,208,740) (2,960,178)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ............................. (2,763,472) (409,857)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....................................... 1,408,908 5,148,412
NET ASSETS
Beginning of period ......................................................... 48,390,033 43,241,621
- ---------------------------------------------------------------------------------------------------------------------------------
End of period ............................................................... $49,798,941 $48,390,033
=================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ................................................................. $ 72,161 $ 147,552
GE
INTERNATIONAL
EQUITY
FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ................................................ $ 105,679 $ 582,246
Net realized gain on investments, futures, written options,
and foreign currency transactions ......................................... 7,612,598 2,750,245
Net increase in unrealized appreciation
on investments, futures, written options,
and foreign currency translations ......................................... 2,635,060 8,891,451
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase from operations ................................................ 10,353,337 12,223,942
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................... (132,384) (96,612)
Class B ................................................................... -- (1,071)
Class C ................................................................... -- (842)
Class Y ................................................................... (512,215) (311,437)
Net realized gains
Class A ................................................................... -- --
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................................... (644,599) (409,962)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions .............. 9,708,738 11,813,980
- ------------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................................................... 3,843,601 6,219,571
Class B ................................................................... 59,477 384,929
Class C ................................................................... 200,298 495,859
Class Y ................................................................... 30,021,623 11,867,074
Value of distributions reinvested
Class A ................................................................... 125,751 94,426
Class B ................................................................... -- 1,039
Class C ................................................................... -- 793
Class Y ................................................................... 511,975 311,422
Proceeds from short-term trading fees
Class A ................................................................... 605 5,513
Class B ................................................................... 32 295
Class C ................................................................... 29 249
Class Y ................................................................... 1,580 10,752
Cost of shares redeemed
Class A ................................................................... (3,542,866) (6,746,249)
Class B ................................................................... (331,439) (251,129)
Class C ................................................................... (249,566) (848,372)
Class Y ................................................................... (18,676,853) (10,167,743)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ............................. 11,964,247 1,378,429
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....................................... 21,672,985 13,192,409
NET ASSETS
Beginning of period ......................................................... 72,452,974 59,260,565
- ------------------------------------------------------------------------------------------------------------------------------------
End of period ............................................................... $ 94,125,959 $ 72,452,974
====================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ................................................................. $ 91,336 $ 630,256
GE
PREMIER
GROWTH
EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss) ................................................ $ 2,423,794 $ (674,971)
Net realized gain on investments, futures, written options,
and foreign currency transactions ......................................... 5,724,772 9,101,933
Net increase in unrealized appreciation
on investments, futures, written options,
and foreign currency translations ......................................... 20,939,581 14,646,958
- -----------------------------------------------------------------------------------------------------------------------------
Net increase from operations ................................................ 29,088,147 23,073,920
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................... (774,763) --
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... (1,063,861) --
Net realized gains
Class A ................................................................... -- --
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... -- --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................................... (1,838,624) --
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions .............. 27,249,523 23,073,920
- -----------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................................................... 56,736,285 221,211,958
Class B ................................................................... 1,200,498 6,673,322
Class C ................................................................... 6,986,562 31,152,544
Class Y ................................................................... 75,706,327 65,051,966
Value of distributions reinvested
Class A ................................................................... 741,612 --
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... 918,799 --
Proceeds from short-term trading fees
Class A ................................................................... -- --
Class B ................................................................... -- --
Class C ................................................................... -- --
Class Y ................................................................... -- --
Cost of shares redeemed
Class A ................................................................... (94,081,607) (99,205,169)
Class B ................................................................... (4,770,650) (7,847,160)
Class C ................................................................... (10,563,657) (12,020,751)
Class Y ................................................................... (20,283,708) (24,447,127)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ............................. 12,590,461 180,569,583
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....................................... 39,839,984 203,643,503
NET ASSETS
Beginning of period ......................................................... 622,931,515 419,288,012
- -----------------------------------------------------------------------------------------------------------------------------
End of period ............................................................... $662,771,499 $622,931,515
=============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ................................................................. $ 781,677 $ 196,507
See Notes to Financial Statements.
114 & 115
Statements of Changes
in Net Assets (continued)
Changes in Fund Shares
GE
U.S.
EQUITY
FUND
- ------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................ 1,272,209 2,066,279
Issued for distribution reinvested ......................................... 84,535 84,471
Shares redeemed ............................................................ (1,569,083) (2,414,051)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (212,339) (263,301)
==============================================================================================================================
CLASS B:
Shares sold ................................................................ 9,298 85,964
Issued for distribution reinvested ......................................... -- --
Shares redeemed ............................................................ (169,158) (288,570)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (159,860) (202,606)
==============================================================================================================================
CLASS C:
Shares sold ................................................................ 17,672 207,124
Issued for distribution reinvested ......................................... -- 1,485
Shares redeemed ............................................................ (108,070) (155,116)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (90,398) 53,493
==============================================================================================================================
CLASS Y:
Shares sold ................................................................ 1,123,989 1,721,428
Issued for distribution reinvested ......................................... 100,733 103,959
Shares redeemed ............................................................ (3,375,411) (1,413,188)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (2,150,689) 412,199
==============================================================================================================================
GE
VALUE
EQUITY
FUND
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................ 252,451 710,069
Issued for distribution reinvested ......................................... 160,077 33,278
Shares redeemed ............................................................ (411,870) (1,284,394)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 658 (541,047)
=============================================================================================================================
CLASS B:
Shares sold ................................................................ 27,393 93,006
Issued for distribution reinvested ......................................... 26,605 --
Shares redeemed ............................................................ (206,912) (608,226)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (152,914) (515,220)
=============================================================================================================================
CLASS C:
Shares sold ................................................................ 14,169 100,680
Issued for distribution reinvested ......................................... 4,947 178
Shares redeemed ............................................................ (14,970) (129,285)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 4,146 (28,427)
=============================================================================================================================
CLASS Y:
Shares sold ................................................................ 800 2,646
Issued for distribution reinvested ......................................... 167 3,759
Shares redeemed ............................................................ (785) (580,466)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 182 (574,061)
=============================================================================================================================
GE
SMALL-CAP
VALUE EQUITY
FUND
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................ 362,534 1,226,672
Issued for distribution reinvested ......................................... 446,329 --
Shares redeemed ............................................................ (546,414) (2,036,608)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 262,449 (809,936)
================================================================================================================================
CLASS B:
Shares sold ................................................................ 19,491 117,750
Issued for distribution reinvested ......................................... 110,490 --
Shares redeemed ............................................................ (111,119) (812,491)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 18,862 (694,741)
================================================================================================================================
CLASS C:
Shares sold ................................................................ 73,369 229,122
Issued for distribution reinvested ......................................... 87,800 --
Shares redeemed ............................................................ (161,530) (285,681)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (361) (56,559)
================================================================================================================================
CLASS Y:
Shares sold ................................................................ 136,353 590,694
Issued for distribution reinvested ......................................... 196,857 --
Shares redeemed ............................................................ (367,286) (594,047)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (34,076) (3,353)
================================================================================================================================
GE
GLOBAL
EQUITY
FUND
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................ 56,858 178,274
Issued for distribution reinvested ......................................... 7,598 3,072
Shares redeemed ............................................................ (161,020) (242,784)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (96,564) (61,438)
================================================================================================================================
CLASS B:
Shares sold ................................................................ 945 17,605
Issued for distribution reinvested ......................................... -- --
Shares redeemed ............................................................ (12,984) (55,753)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (12,039) (38,148)
================================================================================================================================
CLASS C:
Shares sold ................................................................ 2,169 5,742
Issued for distribution reinvested ......................................... -- --
Shares redeemed ............................................................ (8,233) (2,363)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (6,064) 3,379
================================================================================================================================
CLASS Y:
Shares sold ................................................................ 77,224 231,409
Issued for distribution reinvested ......................................... 6,922 3,709
Shares redeemed ............................................................ (113,106) (163,265)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (28,960) 71,853
================================================================================================================================
GE
INTERNATIONAL
EQUITY
FUND
- -----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................ 270,998 512,181
Issued for distribution reinvested ......................................... 8,957 7,968
Shares redeemed ............................................................ (254,975) (563,759)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 24,980 (43,610)
===================================================================================================================================
CLASS B:
Shares sold ................................................................ 4,536 33,784
Issued for distribution reinvested ......................................... -- 93
Shares redeemed ............................................................ (24,625) (21,852)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (20,089) 12,025
===================================================================================================================================
CLASS C:
Shares sold ................................................................ 15,349 42,923
Issued for distribution reinvested ......................................... -- 71
Shares redeemed ............................................................ (18,690) (73,058)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (3,341) (30,064)
===================================================================================================================================
CLASS Y:
Shares sold ................................................................ 2,124,211 953,626
Issued for distribution reinvested ......................................... 36,208 26,104
Shares redeemed ............................................................ (1,311,778) (828,502)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 848,641 151,228
===================================================================================================================================
GE
PREMIER
GROWTH
EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................ 2,175,771 8,846,718
Issued for distribution reinvested ......................................... 27,450 --
Shares redeemed ............................................................ (3,611,203) (3,966,899)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (1,407,982) 4,879,819
===========================================================================================================================
CLASS B:
Shares sold ................................................................ 49,005 281,381
Issued for distribution reinvested ......................................... -- --
Shares redeemed ............................................................ (193,441) (331,198)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (144,436) (49,817)
===========================================================================================================================
CLASS C:
Shares sold ................................................................ 285,226 1,309,579
Issued for distribution reinvested ......................................... -- --
Shares redeemed ............................................................ (430,122) (507,465)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... (144,896) 802,114
===========================================================================================================================
CLASS Y:
Shares sold ................................................................ 2,821,107 2,548,984
Issued for distribution reinvested ......................................... 33,521 --
Shares redeemed ............................................................ (766,196) (961,359)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ..................................... 2,088,432 1,587,625
===========================================================================================================================
See Notes to Financial Statements.
116 & 117
Statements of Changes
in Net Assets
GE
STRATEGIC
INVESTMENT
FUND
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .................................................. $ 2,400,029 $ 3,451,060
Net realized gain (loss) on investments, futures, written options,
and foreign currency transactions .................................... 10,507,432 8,505,258
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments, futures, written options,
and foreign currency translations .................................... 1,380,553 7,224,780
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations ................................ 14,288,014 19,181,098
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (2,077,827) (1,405,793)
Class B .............................................................. (154,774) (115,057)
Class C .............................................................. (188,175) (58,721)
Class Y .............................................................. (1,872,781) (1,515,929)
Net realized gains
Class A .............................................................. (2,366,820) --
Class B .............................................................. (365,199) --
Class C .............................................................. (316,121) --
Class Y .............................................................. (1,828,429) --
Return of capital
Class A .............................................................. -- --
Class B .............................................................. -- --
Class C .............................................................. -- --
Class Y .............................................................. -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................................................... (9,170,126) (3,095,500)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions ......... 5,117,888 16,085,598
- ----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A .............................................................. 7,814,496 25,926,820
Class B .............................................................. 1,173,698 9,137,169
Class C .............................................................. 1,851,589 11,607,135
Class Y .............................................................. 20,453,764 14,057,686
Value of distributions reinvested
Class A .............................................................. 4,239,962 1,345,927
Class B .............................................................. 489,879 107,885
Class C .............................................................. 462,087 50,851
Class Y .............................................................. 3,701,185 1,515,938
Cost of shares redeemed
Class A .............................................................. (10,008,713) (19,445,886)
Class B .............................................................. (3,298,274) (7,619,792)
Class C .............................................................. (1,586,331) (1,612,721)
Class Y .............................................................. (36,753,254) (18,743,317)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ........................ (11,459,912) 16,327,695
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................................. (6,342,024) 32,413,293
NET ASSETS
Beginning of period .................................................... 271,630,800 239,217,507
- ----------------------------------------------------------------------------------------------------------------------------------
End of period .......................................................... $265,288,776 $271,630,800
==================================================================================================================================
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET INVESTMENTS INCOME,
END OF PERIOD ............................................................ $ 903,548 $ 2,797,076
GE
GOVERNMENT
SECURITIES
FUND
- -----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .................................................. $ 2,569,051 $ 5,184,031
Net realized gain (loss) on investments, futures, written options,
and foreign currency transactions .................................... 514,121 404,675
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments, futures, written options,
and foreign currency translations .................................... (2,929,711) (3,066,079)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations ................................ 153,461 2,522,627
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (2,503,817) (5,073,492)
Class B .............................................................. (37,137) (133,848)
Class C .............................................................. (11,090) (18,871)
Class Y .............................................................. -- --
Net realized gains
Class A .............................................................. -- --
Class B .............................................................. -- --
Class C .............................................................. -- --
Class Y .............................................................. -- --
Return of capital
Class A .............................................................. -- --
Class B .............................................................. -- --
Class C .............................................................. -- --
Class Y .............................................................. -- --
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................................................... (2,552,044) (5,226,211)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions ......... (2,398,583) (2,703,584)
- -----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A .............................................................. 4,459,449 4,548,736
Class B .............................................................. 87,914 296,073
Class C .............................................................. 1,488,447 164,446
Class Y .............................................................. -- --
Value of distributions reinvested
Class A .............................................................. 1,785,928 3,576,330
Class B .............................................................. 28,612 106,634
Class C .............................................................. 8,736 16,627
Class Y .............................................................. -- --
Cost of shares redeemed
Class A .............................................................. (12,949,313) (30,869,671)
Class B .............................................................. (2,545,950) (3,504,223)
Class C .............................................................. (1,666,848) (440,709)
Class Y .............................................................. -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ........................ (9,303,025) (26,105,757)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................................. (11,701,608) (28,809,341)
NET ASSETS
Beginning of period .................................................... 175,309,503 204,118,844
- -----------------------------------------------------------------------------------------------------------------------------------
End of period .......................................................... $163,607,895 $175,309,503
===================================================================================================================================
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET INVESTMENTS INCOME,
END OF PERIOD ............................................................ $ (60,276) $ (77,283)
GE
SHORT-TERM
GOVERNMENT
FUND
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .................................................. $ 1,340,063 $ 2,138,524
Net realized gain (loss) on investments, futures, written options,
and foreign currency transactions .................................... (276,577) (552,013)
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments, futures, written options,
and foreign currency translations .................................... (1,256,954) (1,009,323)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations ................................ (193,468) 577,188
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (906,426) (1,806,951)
Class B .............................................................. (73,464) (126,116)
Class C .............................................................. (100,115) (189,049)
Class Y .............................................................. (153,434) (53,320)
Net realized gains
Class A .............................................................. -- (450,247)
Class B .............................................................. -- (36,702)
Class C .............................................................. -- (61,070)
Class Y .............................................................. -- (8,355)
Return of capital
Class A .............................................................. -- (142,625)
Class B .............................................................. -- (12,399)
Class C .............................................................. -- (19,821)
Class Y .............................................................. -- (4,104)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................................................... (1,233,439) (2,910,759)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions ......... (1,426,907) (2,333,571)
- ----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A .............................................................. 1,868,773 8,343,920
Class B .............................................................. 272,059 1,009,315
Class C .............................................................. 621,636 2,480,795
Class Y .............................................................. 350,823 6,675,208
Value of distributions reinvested
Class A .............................................................. 819,966 2,183,855
Class B .............................................................. 63,836 152,752
Class C .............................................................. 88,778 240,557
Class Y .............................................................. 153,439 65,774
Cost of shares redeemed
Class A .............................................................. (9,264,636) (18,904,202)
Class B .............................................................. (610,575) (1,165,417)
Class C .............................................................. (1,769,124) (3,158,101)
Class Y .............................................................. (81,616) (10,448)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions ........................ (7,486,641) (2,085,992)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................................. (8,913,548) (4,419,563)
NET ASSETS
Beginning of period .................................................... 74,281,352 78,700,915
- ----------------------------------------------------------------------------------------------------------------------------------
End of period .......................................................... $65,367,804 $ 74,281,352
==================================================================================================================================
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET INVESTMENTS INCOME,
END OF PERIOD ............................................................ $ 93,882 $ (12,742)
GE
TAX-EXEMPT
FUND
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .................................................... $ 741,698 $ 1,644,652
Net realized gain (loss) on investments, futures, written options,
and foreign currency transactions ...................................... 208,267 41,708
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments, futures, written options,
and foreign currency translations ...................................... (1,155,988) (638,766)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations .................................. (206,023) 1,047,594
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................ (682,914) (1,484,001)
Class B ................................................................ (34,616) (84,468)
Class C ................................................................ (23,501) (68,855)
Class Y ................................................................ (667) (6,513)
Net realized gains
Class A ................................................................ -- --
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
Return of capital
Class A ................................................................ -- --
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................................ (741,698) (1,643,837)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions ........... (947,721) (596,243)
- ----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................................................ 4,065,897 9,937,945
Class B ................................................................ 16,050 103,600
Class C ................................................................ 86,174 506,373
Class Y ................................................................ -- --
Value of distributions reinvested
Class A ................................................................ 518,987 926,678
Class B ................................................................ 24,669 55,467
Class C ................................................................ 15,572 51,647
Class Y ................................................................ 666 6,125
Cost of shares redeemed
Class A ................................................................ (10,113,532) (11,261,034)
Class B ................................................................ (466,866) (1,309,565)
Class C ................................................................ (412,563) (1,460,772)
Class Y ................................................................ -- (255,206)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions .......................... (6,264,946) (2,698,742)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................................... (7,212,667) (3,294,985)
NET ASSETS
Beginning of period ...................................................... 45,024,197 48,319,182
- ----------------------------------------------------------------------------------------------------------------------------------
End of period ............................................................ $ 37,811,530 $ 45,024,197
==================================================================================================================================
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET INVESTMENTS INCOME,
END OF PERIOD .............................................................. $ 50,899 $ (50,899)
GE
FIXED
INCOME
FUND
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .................................................... $ 4,435,242 $ 8,872,784
Net realized gain (loss) on investments, futures, written options,
and foreign currency transactions ...................................... 111,756 4,227,474
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments, futures, written options,
and foreign currency translations ...................................... (4,364,062) (5,462,157)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations .................................. 182,936 7,638,101
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................ (2,642,245) (5,322,234)
Class B ................................................................ (42,911) (86,019)
Class C ................................................................ (27,579) (75,621)
Class Y ................................................................ (1,666,254) (3,515,895)
Net realized gains
Class A ................................................................ (2,715,714) (2,140,690)
Class B ................................................................ (56,002) (45,587)
Class C ................................................................ (37,910) (40,217)
Class Y ................................................................ (1,572,611) (1,366,035)
Return of capital
Class A ................................................................ -- --
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................................ (8,761,226) (12,592,298)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions ........... (8,578,290) (4,954,197)
- ----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................................................ 5,641,294 14,843,108
Class B ................................................................ 207,945 535,459
Class C ................................................................ 162,804 576,241
Class Y ................................................................ 15,184,992 19,517,916
Value of distributions reinvested
Class A ................................................................ 4,700,172 6,545,160
Class B ................................................................ 91,151 122,242
Class C ................................................................ 59,469 110,136
Class Y ................................................................ 3,230,838 4,882,664
Cost of shares redeemed
Class A ................................................................ (11,746,023) (32,506,050)
Class B ................................................................ (443,210) (943,761)
Class C ................................................................ (1,137,116) (1,226,588)
Class Y ................................................................ (25,278,006) (38,436,100)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions .......................... (9,325,690) (25,979,573)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................................... (17,903,980) (30,933,770)
NET ASSETS
Beginning of period ...................................................... 253,525,206 284,458,976
- ----------------------------------------------------------------------------------------------------------------------------------
End of period ............................................................ $235,621,226 $253,525,206
==================================================================================================================================
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET INVESTMENTS INCOME,
END OF PERIOD .............................................................. $ 628,876 $ 572,623
GE
MONEY
MARKET
FUND
- ---------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income .................................................... $ 2,051,251 $ 2,087,664
Net realized gain (loss) on investments, futures, written options,
and foreign currency transactions ...................................... -- --
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments, futures, written options,
and foreign currency translations ...................................... -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations .................................. 2,051,251 2,087,664
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................ (2,051,251) (2,173,915)
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
Net realized gains
Class A ................................................................ -- --
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
Return of capital
Class A ................................................................ -- --
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................................ (2,051,251) (2,173,915)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions ........... -- (86,251)
- ---------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................................................ 33,796,610 52,030,599
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
Value of distributions reinvested
Class A ................................................................ 1,978,644 2,095,181
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
Cost of shares redeemed
Class A ................................................................ (52,969,676) (88,592,948)
Class B ................................................................ -- --
Class C ................................................................ -- --
Class Y ................................................................ -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions .......................... (17,194,422) (34,467,168)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................................... (17,194,422) (34,553,419)
NET ASSETS
Beginning of period ...................................................... 234,979,359 269,532,778
- ---------------------------------------------------------------------------------------------------------------------------------
End of period ............................................................ $217,784,937 $234,979,359
=================================================================================================================================
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET INVESTMENTS INCOME,
END OF PERIOD .............................................................. $ (5,584) $ (5,584)
See Notes to Financial Statements.
118 & 119
Statements of Changes
in Net Assets (continued)
Changes in Fund Shares
GE
STRATEGIC
INVESTMENT
FUND
- ---------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................. 321,039 1,099,017
Issued for distribution reinvested .......................................... 172,707 58,954
Shares redeemed ............................................................. (409,833) (825,185)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... 83,913 332,786
=================================================================================================================================
CLASS B:
Shares sold ................................................................. 49,544 400,317
Issued for distribution reinvested .......................................... 20,506 4,853
Shares redeemed ............................................................. (139,898) (333,112)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (69,848) 72,058
=================================================================================================================================
CLASS C:
Shares sold ................................................................. 79,797 515,963
Issued for distribution reinvested .......................................... 19,756 2,328
Shares redeemed ............................................................. (68,466) (71,681)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... 31,087 446,610
=================================================================================================================================
CLASS Y:
Shares sold ................................................................. 825,272 596,242
Issued for distribution reinvested .......................................... 150,638 66,343
Shares redeemed ............................................................. (1,483,134) (795,022)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (507,224) (132,437)
=================================================================================================================================
GE
GOVERNMENT
SECURITIES
FUND
- ---------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................. 509,711 517,666
Issued for distribution reinvested .......................................... 204,195 408,364
Shares redeemed ............................................................. (1,478,494) (3,526,308)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (764,588) (2,600,278)
=================================================================================================================================
CLASS B:
Shares sold ................................................................. 9,948 33,512
Issued for distribution reinvested .......................................... 3,242 12,072
Shares redeemed ............................................................. (287,143) (395,346)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (273,953) (349,762)
=================================================================================================================================
CLASS C:
Shares sold ................................................................. 167,071 18,496
Issued for distribution reinvested .......................................... 987 1,876
Shares redeemed ............................................................. (189,537) (49,263)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (21,479) (28,891)
=================================================================================================================================
CLASS Y:
Shares sold ................................................................. -- --
Issued for distribution reinvested .......................................... -- --
Shares redeemed ............................................................. -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... -- --
=================================================================================================================================
GE
SHORT-TERM
GOVERNMENT
FUND
- -----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ................................................................. 161,457 703,685
Issued for distribution reinvested .......................................... 71,012 184,526
Shares redeemed ............................................................. (802,318) (1,596,326)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (569,849) (708,115)
===================================================================================================================================
CLASS B:
Shares sold ................................................................. 23,503 85,302
Issued for distribution reinvested .......................................... 5,538 12,931
Shares redeemed ............................................................. (52,957) (98,463)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (23,916) (230)
===================================================================================================================================
CLASS C:
Shares sold ................................................................. 53,772 209,017
Issued for distribution reinvested .......................................... 7,702 20,352
Shares redeemed ............................................................. (153,397) (266,764)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... (91,921) (37,395)
===================================================================================================================================
CLASS Y:
Shares sold ................................................................. 30,330 571,001
Issued for distribution reinvested .......................................... 13,337 5,599
Shares redeemed ............................................................. (7,094) (886)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ...................................... 36,573 575,714
===================================================================================================================================
GE
TAX-EXEMPT
FUND
- ----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ............................................................... 338,720 825,705
Issued for distribution reinvested ........................................ 43,429 77,015
Shares redeemed ........................................................... (842,394) (936,205)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (460,245) (33,485)
============================================================================================================================
CLASS B:
Shares sold ............................................................... 1,364 8,726
Issued for distribution reinvested ........................................ 2,065 4,604
Shares redeemed ........................................................... (38,947) (109,042)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (35,518) (95,712)
============================================================================================================================
CLASS C:
Shares sold ............................................................... 7,187 41,949
Issued for distribution reinvested ........................................ 1,304 4,281
Shares redeemed ........................................................... (34,410) (121,634)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (25,919) (75,404)
============================================================================================================================
CLASS Y:
Shares sold ............................................................... -- --
Issued for distribution reinvested ........................................ 52 466
Shares redeemed ........................................................... -- (19,707)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... 52 (19,241)
============================================================================================================================
GE
FIXED
INCOME
FUND
- ------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ............................................................... 456,050 1,181,403
Issued for distribution reinvested ........................................ 381,100 523,362
Shares redeemed ........................................................... (949,342) (2,593,303)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (112,192) (888,538)
==============================================================================================================================
CLASS B:
Shares sold ............................................................... 16,686 42,636
Issued for distribution reinvested ........................................ 7,391 9,778
Shares redeemed ........................................................... (35,723) (75,061)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (11,646) (22,647)
==============================================================================================================================
CLASS C:
Shares sold ............................................................... 13,081 45,832
Issued for distribution reinvested ........................................ 4,813 8,799
Shares redeemed ........................................................... (91,425) (97,288)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (73,531) (42,657)
==============================================================================================================================
CLASS Y:
Shares sold ............................................................... 1,220,127 1,557,172
Issued for distribution reinvested ........................................ 262,094 390,681
Shares redeemed ........................................................... (2,029,634) (3,062,375)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (547,413) (1,114,522)
==============================================================================================================================
GE
MONEY
MARKET
FUND*
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER
2005 (UNAUDITED) 30, 2004
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold ............................................................... 33,796,626 52,030,599
Issued for distribution reinvested ........................................ 1,978,644 2,095,181
Shares redeemed ........................................................... (52,969,676) (88,592,948)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... (17,194,406) (34,467,168)
================================================================================================================================
CLASS B:
Shares sold ............................................................... -- --
Issued for distribution reinvested ........................................ -- --
Shares redeemed ........................................................... -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... -- --
================================================================================================================================
CLASS C:
Shares sold ............................................................... -- --
Issued for distribution reinvested ........................................ -- --
Shares redeemed ........................................................... -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... -- --
================================================================================================================================
CLASS Y:
Shares sold ............................................................... -- --
Issued for distribution reinvested ........................................ -- --
Shares redeemed ........................................................... -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .................................... -- --
================================================================================================================================
* GE Money Market Fund is a no load fund offering only one class of shares to
all investors
See Notes to Financial Statements.
120 & 121
March 31, 2005 (unaudited)
Notes to Financial Statements
1. ORGANIZATION OF THE FUNDS
GE Funds (the "Trust") is registered under the Investment Company Act of 1940,
as amended, (the "1940 Act") as an open-end management investment company. The
Trust was organized as a Massachusetts business trust on August 10, 1992, and is
authorized to issue an unlimited number of shares. It is comprised of fourteen
portfolios (each a "Fund" and collectively the "Funds"), although only the
following twelve are currently being offered: GE U.S. Equity Fund, GE Small-Cap
Value Equity Fund, GE Global Equity Fund, GE Value Equity Fund, GE International
Equity Fund, GE Premier Growth Equity Fund, GE Fixed Income Fund, GE Government
Securities Fund, GE Short-Term Government Fund, GE Tax-Exempt Fund, GE Strategic
Investment Fund and GE Money Market Fund. The Funds (except GE Money Market
Fund) are presently authorized to issue four classes of shares. As of March 31,
2005, each Fund had four share classes active, except for GE Government
Securities Fund, which had only three classes active and GE Money Market Fund,
which had only one active class.
Maximum Sales Load Imposed on Purchases of Class A Shares (as a percentage of
offering price):
5.75% 4.25% 2.50%
- ------------------------------------------------------------------------------------------------------------------------
GE U.S. Equity Fund GE Fixed Income Fund GE Short-Term Government Fund
GE Value Equity Fund GE Government Securities Fund
GE Small-Cap Value Equity Fund GE Tax-Exempt Fund
GE Global Equity Fund
GE International Equity Fund
GE Premier Growth Equity Fund
GE Strategic Investment Fund
There is no front-end sales load imposed on individual purchases of Class A
shares of $1 million or more. The front-end sales charge is also waived in other
instances as described in the Funds' prospectus.
Maximum Contingent Deferred Sales Charges imposed on redemptions of Class B
shares (as a percentage of redemption proceeds) within the first year are:
4.00% 3.00%
- --------------------------------------------------------------------------------
GE U.S. Equity Fund GE Fixed Income Fund
GE Value Equity Fund GE Government Securities Fund
GE Small-Cap Value Equity Fund GE Short-Term Government Fund
GE Global Equity Fund GE Tax-Exempt Fund
GE International Equity Fund
GE Premier Growth Equity Fund
GE Strategic Investment Fund
122
March 31, 2005 (unaudited)
Notes to Financial Statements
The contingent deferred sales charge for Class B redemptions for all Funds are
as follows: within the second year -- 3.00%; within the third year -- 2.00%;
within the fourth year -- 1.00% and within the fifth year and thereafter --
0.00%.
The maximum contingent deferred sales charge imposed on Class C (level load)
redemptions for all Funds is 1.00% within the first year of purchase and 0.00%
thereafter.
Purchases of $1 million or more of Class A shares at net asset value are subject
to a 1.00% contingent deferred sales charge if redeemed within one year of
purchase.
No front-end or contingent deferred sales charges are assessed by the Trust with
respect to shares of GE Money Market Fund or Class Y share of all Funds.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions at the date of the financial statements. Actual
results may differ from those estimates.
The following summarizes the significant accounting policies of the Trust:
SECURITY VALUATION AND TRANSACTIONS SECURITIES for which exchange quotations are
readily available are valued at the last sale price, or if no sales occurred on
that day, at the last quoted bid price. Securities listed on the NASDAQ will be
valued at the NASDAQ's official close price. Certain fixed income securities are
valued by a dealer or by a pricing service based upon a matrix system, which
considers market transactions as well as dealer supplied valuations. Short-term
investments maturing within sixty days are valued at amortized cost. If
quotations are not readily available for a portfolio security, or if it is
believed that a quotation or other market 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 procedures require that the fair value of a security be
established by the valuation committee. The fair value committee follows
different protocols for different types of investments and 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 occuring after the close of the
portfolio security's primary market and before the close of regular trading on
the NYSE. This independent fair value pricing service uses a computerized system
to appraise affected securities and portfolios 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. GE Asset Management may also
separately monitor portfolio securities and, consistent with the Funds' fair
value procedures, apply a different value to a porfolio security than would be
applied had it been priced using market quotations or by an independent fair
value pricing service.
Determining the fair value of securities involves the application of both
subjective and objective considerations. Security values may differ depending on
the methodology used to determine their values, and may differ from the last
quoted sale or closing price. No assurance can be given that use of these fair
value procedures will always better represent the price at which a Fund could
sell the affected portfolio security.
In accordance with Rule 2a-7 of the 1940 Act, GE Money Market Fund values
securities initially at cost and, thereafter, securities are assumed to have a
constant amortization to maturity of any discount or premium. Amortized cost
approximates fair value.
Security transactions are accounted for as of the trade date. Realized gains and
losses on investments sold are recorded on the basis of identified cost for both
financial statement and federal tax purposes.
Each Fund's income, expenses (other than distribution fees) and realized and
unrealized gains and losses are allocated proportionally each day among the
classes based upon the relative net assets of each class.
REPURCHASE AGREEMENTS Each of the Funds may enter into repurchase agreements.
The Funds' custodian takes possession of the collateral pledged for investments
in repurchase agreements on behalf of the Funds. The Funds value the underlying
collateral daily on a mark-to-market basis to determine that the value,
including accrued interest, is at least equal to 102% of the
123
March 31, 2005 (unaudited)
Notes to Financial Statements
repurchase price. In the event the seller defaults and the value of the security
declines, or if the seller enters an insolvency proceeding, realization of the
collateral by the Funds may be delayed or limited.
SECURITY LENDING Each of the Funds may loan securities to brokers, dealers, and
financial institutions determined by GE Asset Management Incorporated ("GEAM")
to be creditworthy, subject to certain limitations. The Funds continue to
receive the interest and dividends on the loaned securities during the term of
the loan. The loans of securities are secured by collateral in the form of cash
or other liquid assets, which are segregated and maintained with the custodian
in an amount at least equal to 102% of the current market value of the loaned
securities. During the term of the loan, the Funds will record any gain or loss
in the market value of its loaned securities and of securities in which cash
collateral is invested. A Fund will also earn interest, net of any rebate, from
securities in which cash collateral is invested. In the event the counterparty
(borrower) does not meet its contracted obligation to return the securities, the
Funds may be exposed to the risk of loss of reacquiring the loaned securities at
prevailing market prices using the proceeds of the sale of the collateral.
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.
The Funds do not isolate the portion of the results of operations resulting from
changes in foreign exchange rates from the fluctuations arising from changes in
market prices of securities during the period. Such fluctuations are included in
net realized or unrealized gain or loss from investments. Net realized gains or
losses on foreign currency transactions represent net gains or losses on sales
and maturities of foreign currency contracts, disposition of foreign currencies,
the difference between the amount of net investment income and withholding taxes
accrued and the U.S. dollar amount actually received or paid, and gains or
losses between the trade and settlement date on purchases and sales of
securities. Net unrealized foreign exchange gains and losses arising from
changes in the value of other assets and liabilities as a result of changes in
foreign exchange rates are included as increases or decreases in unrealized
appreciation/depreciation on foreign currency related transactions.
FUTURES CONTRACTS Certain Funds may invest in interest rate, financial and stock
or bond index futures contracts subject to certain limitations. The Funds may
invest in futures contracts to manage their exposure to the stock and bond
markets and fluctuations in currency values. Buying futures tends to increase a
Fund's exposure to the underlying instrument while selling futures tends to
decrease a Fund's exposure to the underlying instrument, or hedge other Fund
investments. A Fund will not enter into a transaction involving futures for
speculative purposes. 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, the Funds are required to
pledge to the broker an amount of cash and/or other assets equal to a certain
percentage of the contract amount, known as initial margin deposit. Subsequent
payments, known as variation margins, are made or received by the Funds each
day, depending on the daily fluctuation in the fair value of the underlying
security. The Funds record an unrealized gain or loss equal to the daily
variation margin. Should market conditions move unexpectedly, the Fund may not
achieve the anticipated benefits of the futures contracts and may incur a loss.
The Funds recognize a realized gain or loss on the expiration or closing of a
futures contract.
OPTIONS Certain Funds may purchase and write options, subject to certain
limitations. The Funds may invest in options contracts to manage their exposure
to the stock and bond markets and fluctuations in foreign currency
124
March 31, 2005 (unaudited)
Notes to Financial Statements
values. Writing puts and buying calls tend to increase a Fund's exposure to the
underlying instrument while buying puts and writing calls tend to decrease a
Fund's exposure to the underlying instrument, or hedge other Fund investments. A
Fund will not enter into a transaction involving options for speculative
purposes. 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. Options are valued at the last sale price, or if no sales occurred on
that day, at the last quoted bid price.
When a Fund writes an option, the amount of the premium received is recorded as
a liability and is subsequently adjusted to the current fair value of the option
written. Premiums received from writing options that expire unexercised are
treated by the Funds on the expiration date as realized gains from investments.
The difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or if the premium is less than the amount paid for the closing
purchase, as a realized loss. When an option is exercised, the proceeds from the
sale of the underlying security or the cost basis of the securities purchased is
adjusted by the original premium received or paid.
SWAP CONTRACTS As part of their investment strategies, certain Funds may invest
in swap agreements which are agreements to exchange the return generated by one
instrument for the return generated by another instrument. Total return swap
agreements involve commitments to pay interest in exchange for a market linked
return based upon a notional principal amount. To the extent the total return of
the security or index underlying the agreement exceeds or falls short of the
offsetting interest rate obligation, the Funds will receive a payment from or
make a payment to the counterparty. Swaps are marked to market daily based upon
the underlying security or index. Payments received or made are recorded as
realized gain or loss in the Statement of Operations. Entering into swap
agreements involves, to varying degrees, elements of credit and market risk in
excess of the amounts recognized on the Statement of Assets and Liabilities.
Such risks involve the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreements may default on its
obligation to perform and that there may be unfavorable changes in the value of
the index or securities underlying the agreement. Notional principal amounts are
used to express the extent of involvement in these transactions, but the amounts
potentially subject to credit risk are much smaller.
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS Each of the Funds may purchase or
sell securities on a when-issued or forward commitment basis. These transactions
are arrangements in which the Funds purchase and sell securities with payment
and delivery scheduled a month or more after entering into the transactions. The
price of the underlying securities and the date when these securities will be
delivered and paid for are fixed at the time the transaction is negotiated.
Losses may arise due to changes in the market value of the underlying securities
or if the counterparty does not perform under the contract. In connection with
such purchases, the Funds maintain cash or liquid assets in an amount equal to
purchase commitments for such underlying securities until settlement date and
for sales commitments the Funds maintain equivalent deliverable securities as
"cover" for the transaction. Unsettled commitments are valued at current market
value of the underlying security. Daily fluctuations in the value of such
contracts are recorded as unrealized gains or losses. The Funds will not enter
into such commitments for the purpose of investment leverage.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS Certain Funds may enter into forward
foreign currency exchange contracts to facilitate transactions in foreign
denominated securities and to manage the Fund's currency exposure. Forward
foreign currency exchange contracts are valued at the mean between the bid and
the offered forward rates as last quoted by a recognized dealer. The aggregate
principal amounts of the contracts are not recorded in the Fund's financial
statements. Such amounts appear under the caption forward foreign currency
contracts in the Schedule of Investments. Fluctuations in the value of the
contracts are recorded in the Statement of Assets and Liabilities as an asset
(or liability) and in the Statement of Operations as unrealized
125
March 31, 2005 (unaudited)
Notes to Financial Statements
appreciation (depreciation) until the contracts are closed, when they are
recorded as realized gains or losses on foreign currency related transactions.
The Fund's risks in using these contracts include changes in the value of
foreign currency or the possibility that the counterparties do not perform under
the contracts' terms. When a Fund enters into a forward foreign currency
exchange contract, it is required to segregate cash or liquid securities with
its custodian in an amount equal to the value of the Fund's total assets
committed to the consummation of the forward contract. If the value of the
segregated securities declines, additional cash or securities is segregated so
that the value of the account will equal the amount of the Fund's commitment
with respect to the contract.
INVESTMENTS IN FOREIGN MARKETS Investments in foreign markets may involve
special risks and considerations not typically associated with investing in the
United States. These risks include revaluation of currencies, high rates of
inflation, 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.
The Funds may be subject to capital gains and repatriation taxes imposed by
certain countries in which they invest. Such taxes are generally based on income
and/or capital gains earned or repatriated. Taxes are accrued based upon net
investment income, net realized gains and net unrealized appreciation as income
and/or capital gains are earned.
INCOME TAXES The Funds intend to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies including the
distribution of substantially all of their taxable net investment income 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.
At March 31, 2005 information on the tax cost of investments is as follows:
Net Tax Unrealized
Appreciation/
Cost of Investments Gross Tax Unrealized Gross Tax Unrealized (Depreciation) on
for Tax Purposes Appreciation Depreciation Investments
- ---------------------------------------------------------------------------------------------------------------------------------
GE U.S. Equity Fund $645,283,578 $77,648,025 $(23,213,082) $54,434,943
GE Value Equity Fund 53,073,629 8,578,059 (1,777,793) 6,800,266
GE Small-Cap Value Equity Fund 90,741,529 18,669,275 (2,213,286) 16,455,989
GE Global Equity Fund 51,987,311 8,011,988 (1,601,808) 6,410,180
GE International Equity Fund 106,479,824 13,689,294 (669,166) 13,020,128
GE Tax-Exempt Fund 36,265,564 1,236,096 (174,458) 1,061,638
GE Premier Growth Equity Fund 634,220,622 58,572,284 (21,832,092) 36,740,192
GE Fixed Income Fund 297,226,949 1,503,801 (4,883,995) (3,380,194)
GE Government Securities Fund 208,900,456 1,621,656 (1,649,066) (27,410)
GE Short-Term Government Fund 86,713,033 170,443 (2,610,676) (2,440,233)
GE Strategic Investment Fund 273,969,212 26,631,101 (7,393,420) 19,237,681
126
March 31, 2005 (unaudited)
Notes to Financial Statements
As of September 30, 2004, 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 so offset will not be
distributed to shareholders because they would be taxable as ordinary income.
During the year ended September 30, 2004, capital loss carryovers expired in the
GE Tax-Exempt Fund and the GE Government Securities Fund in the amounts of
$305,442 and $1,748,819, respectively. During the year ended September 30, 2004,
GE Premier Growth Equity Fund, GE US Equity Fund, GE Value Equity Fund, GE
Strategic Investment Fund, GE Government Securities Fund and GE Small Cap Value
Equity Fund utilized capital loss carryovers in the amounts of $4,591,192;
$3,874,959; $728,070; $2,648,632; $538,152 and $575,665, respectively.
Fund Amount Expires
- --------------------------------------------------------------------------------
GE U.S. Equity Fund $27,191,842 09/30/11
GE Global Equity Fund 2,791,977 09/30/10
6,115,121 09/30/11
3,554,609 09/30/12
GE International Equity Fund 3,826,285 09/30/10
11,642,185 09/30/11
3,671,088 09/30/12
GE Premier Growth Equity Fund 12,040,332 09/30/11
GE Government Securities Fund 13,392,153 09/30/08
GE Tax-Exempt Fund 437,039 09/30/08
115,020 09/30/09
5,270 09/30/11
14,537 09/30/12
GE Money Market Fund 5,688 09/30/05
120 09/30/10
127
March 31, 2005 (unaudited)
Notes to Financial Statements
Any net capital and currency losses incurred after October 31, within each
Fund's tax year, are deemed to arise on the first day of the Fund's next tax
year if the Fund so elects to defer such losses. The Funds elected to defer
losses incurred after October 31, 2002 as follows:
Fund Capital Currency
- --------------------------------------------------------------------------------
GE U.S. Equity Fund $ -- $ --
GE Value Equity Fund -- --
GE Small-Cap Value Equity Fund -- --
GE Global Equity Fund -- 11,628
GE International Equity Fund -- 1,625
GE Premier Growth Equity Fund -- --
GE Strategic Investment Fund -- 6,603
GE Government Securities Fund 32,343 193
GE Short-Term Government Fund 553,550 --
GE Tax-Exempt Fund -- --
GE Fixed Income Fund -- 292
GE Money Market Fund -- --
The tax composition of distributions paid during the years ended September 30,
2004 and September 30, 2003 were as follows:
Year ended September 30, 2004 Year ended September 30, 2003
------------------------------------------- -------------------------------------------
Exempt Ordinary Long-Term Exempt Ordinary Long-Term
Interest Income Capital Gains Interest Income Capital Gains
- -----------------------------------------------------------------------------------------------------------------------------
GE U.S. Equity Fund $ -- $5,180,648 $ -- $ -- $5,426,935 $ --
GE Value Equity Fund -- 407,241 -- -- 515,935 --
GE Small-Cap Value
Equity Fund -- -- -- -- -- --
GE Global Equity Fund -- 120,349 -- -- 211,939 --
GE International
Equity Fund -- 409,962 -- -- 399,415 --
GE Premier Growth
Equity Fund -- -- -- -- -- --
GE Strategic
Investment Fund -- 3,095,500 -- -- 4,261,916 --
GE Government
Securities Fund -- 5,226,211 -- -- 7,159,920 --
GE Short-Term
Government Fund -- 2,344,249 387,561 -- 2,399,471 37,482
GE Tax-Exempt Fund 1,628,711 15,126 -- 1,617,618 27,676 --
GE Fixed Income Fund -- 10,693,233 1,899,065 -- 11,195,887 177,376
GE Money Market Fund -- 2,173,915 -- -- 2,475,351 --
During the year ended September 30, 2004, GE Short-Term Government Fund also
distributed a return of capital in the amount of $178,949.
128
March 31, 2005 (unaudited)
Notes to Financial Statements
DISTRIBUTIONS TO SHAREHOLDERS GE Government Securities Fund, GE Short-Term
Government Fund, GE Tax-Exempt Fund, GE Fixed Income Fund, and GE Money Market
Fund declare investment income dividends daily and pay them monthly. All other
Funds declare and pay dividends from investment income annually. All Funds
declare and pay net realized capital gains in excess of capital loss
carryforwards distributions annually. The character of income and gains to be
distributed is determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences include
(but are not limited to) swaps, treatment of realized and unrealized gains and
losses on forward foreign currency contracts, paydown gains and losses on
mortgage-backed securities, and losses deferred due to wash sale transactions.
Reclassifications are made to the Funds' capital accounts to reflect income and
gains available for distribution (or available capital loss carryovers) under
income tax regulations. These reclassifications have no impact on net investment
income, realized gains or losses, or net asset value of the Funds. The
calculation of net investment income per share in the Financial Highlights table
excludes these adjustments.
INVESTMENT INCOME Corporate actions (including cash dividends) are recorded on
the ex-dividend date, net of applicable withholding taxes, except for certain
foreign corporate actions which are recorded as soon after ex-dividend date as
such information becomes available. Interest income is recorded on the accrual
basis. All discounts and premiums on taxable bonds and tax-exempt bonds are
accreted to call or maturity date, whichever is shorter, using the effective
yield method. For tax-exempt bonds purchased on or after May 1, 1993, both
market discount and original issue discount are amortized.
EXPENSES Fund specific expenses are allocated to the Fund that incurs such
expense and pro rata across share classes. Expenses, other than those incurred
by a specific Fund, are allocated pro rata among Funds and share classes. Such
expenses may include custodial fees, legal and accounting fees, printing costs
and registration fees. All expenses of the Funds are paid by GEAM and reimbursed
by the Funds.
SHORT-TERM TRADING (REDEMPTION) FEES Shares held in the GE Global Equity Fund
and GE International Equity Fund less than 90 days are subject to a short-term
trading fee equal to 2.00% of the proceeds of the redeemed shares. These fees,
which are retained by a Fund, are accounted for as an addition to paid-in
capital.
TRANSFER AGENT CONVERSION EXPENSES On September 18, 2004, the Funds changed its
Transfer Agent from Boston Financial Data Services (BFDS) to PFPC Inc. (PFPC).
PFPC has agreed to pay for certain conversion expenses incurred by GEAM for the
entire GEAM Mutual Fund complex. For the six-month period ended March 31, 2005,
PFPC paid $84,561 of those conversion expenses related to the Funds.
3. LINE OF CREDIT
Effective December 15, 2004 and expiring December 14, 2005, the Trust shares a
revolving credit facility of up to $25 million with a number of its affiliates.
The credit facility is with its custodian bank, State Street Bank and Trust
Company. The revolving credit facility requires the payment of a commitment fee
equal to 0.09% per annum on the daily unused portion of the credit facility,
payable quarterly. The portion borne by the Funds generally is borne
proportionally based upon net assets. Generally, borrowings under the credit
facility would accrue interest at the Federal Funds Rate plus 50 basis points
and would be borne by the borrowing Fund. The maximum amount allowed to be
borrowed by any one Fund is the lesser of its prospectus limitation, 20% of its
net assets, or $25 million. The credit facility was not utilized by the Trust
during the period ended March 31, 2005.
4. FEES AND COMPENSATION PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION AND OTHER OPERATING FEES Compensation of GEAM, a
wholly-owned subsidiary of General Electric Company, for investment advisory and
administrative services is paid monthly based on the average daily net assets of
each Fund. GEAM agreed in writing to limit other operating expenses (exclusive
of advisory, administration and distribution fees) of each class of certain
funds on an annualized basis to the levels stated in the schedule below through
January 29, 2006. Had these fees and expenses not been absorbed, the returns
(and/or yields) would have been lower. These agreements may be renewed or
discontinued without notice in the future.
129
March 31, 2005 (unaudited)
Notes to Financial Statements
Annualized based on average daily net assets
----------------------------------------------------------------
Advisory and Other
Administration Fees Operating Expense Limits*
----------------------------------------------------------------
From April 1, 2003
------------------------
GE U.S. Equity Fund .40% .30%
GE Value Equity Fund .55% .40%
GE Small-Cap Value Equity Fund .70% .39%
GE Global Equity Fund .75% .71%
GE International Equity Fund .80% .70%
GE Premier Growth Equity Fund .60% .30%
GE Strategic Investment Fund .35% .35%
GE Government Securities Fund .40% .30%
GE Short-Term Government Fund .30% .25%**
GE Tax-Exempt Fund .35% .27%
GE Fixed Income Fund .35% .20%
GE Money Market Fund .25% .25%
* OTHER OPERATING EXPENSES, AFTER REIMBURSEMENT (IF ANY), WILL NOT EXCEED THE
LIMITS SHOWN IN THE TABLE ABOVE FOR THE PERIOD ENDING MARCH 31, 2005.
ACTUAL EXPENSES DURING THAT PERIOD MAY BE LESS THAN THAT SHOWN.
** EFFECTIVE JANUARY 29, 2005, GEAM INCREASED THE FUND'S EXPENSE LIMIT FROM
.20% TO .25%
GEAM is entitled to seek reimbursement of operating expenses absorbed by GEAM,
up to 5 years from the date the expenses were incurred (as long as these
reimbursements do not cause the Fund's expenses to exceed the limit). As of
March 31, 2005, the following Funds have expenses eligible for reimbursement as
detailed below:
Expenses Total Expenses
Eligible for Expenses Expenses Eligible for
Recoupment - Waived - Recouped - Recoupment -
Fund Beginning of Year Current Year Current Year March 31, 2005
- --------------------------------------------------------------------------------------------------------------------------
GE U.S. Equity Fund $ -- $ -- $ -- $ --
GE Value Equity Fund 68,713 795 5,450 64,058
GE Small-Cap Value Equity Fund -- -- -- --
GE Global Equity Fund -- -- -- --
GE International Equity Fund -- -- -- --
GE Premier Growth Equity Fund -- -- -- --
GE Strategic Investment Fund -- -- -- --
GE Government Securities Fund -- -- -- --
GE Short-Term Government Fund 205,327 27,062 -- 232,389
GE Tax-Exempt Fund 24,581 18,548 -- 43,129
GE Fixed Income Fund -- 6,097 4,182 1,915
GE Money Market Fund 23,803 -- -- 23,803
130
March 31, 2005 (unaudited)
Notes to Financial Statements
As of March 31, 2005, there were no expirations of expenses eligible for
recoupment. The expenses eligible for recoupment at March 31, 2005 are set to
expire as follows:
Fund Amount Expires
- ---------------------------------------------------------------
GE Value Equity Fund $63,263 2009
795 2010
GE Short-Term Government Fund 34,137 2006
39,107 2007
53,372 2008
78,711 2009
27,062 2010
GE Tax-Exempt Fund 5,111 2007
4,330 2008
15,140 2009
18,548 2010
GE Fixed Income 1,915 2010
GE Money Market Fund 23,803 2006
The Funds paid the following fees to GEAM for advisory and administrative
services for the period ended March 31, 2005.
Advisory and
Fund Administrative Fees
- ----------------------------------------------------------------------------
GE U.S. Equity Fund $1,458,282
GE Value Equity Fund 166,607
GE Small-Cap Value Equity Fund 333,729
GE Global Equity Fund 189,736
GE International Equity Fund 343,612
GE Premier Growth Equity Fund 2,015,637
GE Strategic Investment Fund 483,505
GE Government Securities Fund 338,769
GE Short-Term Government Fund 106,535
GE Tax-Exempt Fund 70,649
GE Fixed Income Fund 427,205
GE Money Market Fund 282,224
131
March 31, 2005 (unaudited)
Notes to Financial Statements
Effective January 1, 2002, GECIS (General Electric Capital International
Services) began performing certain accounting and certain administration
services not provided by GEAM. For the period ended March 31, 2005, $32,701 was
charged to the Funds and was allocated pro rata across funds and share classes
based upon relative net assets. Administrative services not performed by GEAM or
GECIS were provided by an unaffiliated service provider.
ADVISORY AND ADMINISTRATION AGREEMENT RENEWAL The Board of Trustees, including
the independent trustees, of the GE Funds unanimously approved the continuance
of the investment advisory agreement between each Fund and GE Asset Management
Incorporated ("GEAM") at a meeting held on December 3, 2004. The Board,
including the independent trustees, also at that meeting unanimously approved
the sub-advisory agreement between Palisade Capital Management, L.L.C. and GEAM
on behalf of the GE Small-Cap Value Equity Fund.
In considering whether to approve the investment advisory and sub-advisory
agreements, the Board (including the independent trustees) considered and
discussed a substantial amount of information and analysis prepared by GEAM and
the sub-adviser at the Board's request. The Board also considered detailed
information regarding performance and expenses of other investment companies
with similar investment objectives and sizes, which was prepared by an
independent third party provider, Lipper Inc. The Board reviewed the fees
charged by GEAM for investment products other than mutual funds that employ the
same investment strategies as the Funds. Before approving the Funds' advisory
agreements and the related sub-advisory agreement for the GE Small-Cap Value
Equity Fund, the independent trustees reviewed the proposed continuance of the
agreements with management of GEAM and with experienced legal counsel who is
independent of GEAM and the GE Funds. That legal counsel prepared a memorandum
discussing the legal standards for the consideration of the proposed
continuances. The independent trustees also discussed the proposed continuances
in a private session with their independent legal counsel at which no
representatives of GEAM or the sub-adviser were present. In reaching their
determinations relating to continuance of the agreements with respect to each
Fund, the trustees considered all factors they believed relevant, including the
factors discussed below.
In their deliberations, the trustees did not identify any particular information
that was all-important or controlling, and each trustee attributed different
weights to the various factors. The trustees evaluated all information available
to them on a Fund-by-Fund basis, and their determinations were made separately
in respect of each Fund.
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY THE MANAGER The Board
reviewed the services provided by GEAM and the sub-adviser, and the independent
trustees concurred that GEAM and the sub-adviser provide high quality advisory
and administrative services because of the level of research, analysis,
investment discipline and other services, such as securities trading, provided
to the Funds. The independent trustees specifically considered the favorable
attributes of GEAM, including an investment philosophy oriented toward long-term
performance, the processes used for selecting investments, selecting brokers and
for compliance activities, and the quality of the investment professionals
employed by GEAM. The Board also recognized GEAM's responsibility for
supervising the sub-adviser's services. The Board noted that the Funds represent
only a small portion of the assets managed by GEAM, but the Funds benefit from a
full array of services and resources provided by GEAM.
INVESTMENT PERFORMANCE The Board reviewed detailed performance information for
each Fund for various periods, which it also monitors as part of its regular
quarterly Board meetings. The Board also reviewed detailed comparisons of the
performance of the Funds with relevant securities indexes and various peer
groups of mutual funds prepared by Lipper with respect to various periods. GEAM
and, where relevant, representatives of the sub-adviser, discussed in detail
their investment process, focusing on the relevant Fund's investment objective,
the number and experience of portfolio management personnel, the investment
style and approach employed, the likely market cycles for the investment style,
and, in some instances, recent relative underperformance in light of GEAM's
commitment to long-term satisfactory performance with respect to the
132
March 31, 2005 (unaudited)
Notes to Financial Statements
Fund's investment objective and investment approach. The Board and the
independent trustees concluded that each Fund's performance was acceptable over
the relevant periods, particularly from a longer-term perspective, which the
Board believes is most relevant.
COSTS OF SERVICES PROVIDED AND PROFITABILITY At the request of the independent
trustees, GEAM provided information concerning the profitability of GEAM's
investment advisory and investment company activities and its financial
condition for various past periods. The trustees considered the profit margin
information for GEAM's investment company business as a whole, as well as GEAM's
profitability data for each Fund. The trustees reviewed GEAM's assumptions and
the methods of cost allocation used by GEAM in preparing Fund-specific
profitability data. GEAM stated its belief that the methods of allocation used
were reasonable and consistent across its business.
The trustees also examined the fee and expense ratios for the Funds and observed
that GEAM's figures were mostly at or below the applicable peer group. The
trustees noted the additional services provided by GEAM to the Funds compared to
other investment products managed by GEAM.
The trustees reviewed comparative fee information for the sub-adviser, as well
as an analysis of the profitability to the sub-adviser of the sub-advisory
agreement, and did not find the subadvisory fee to be excessive on the basis of
this information.
The trustees recognized that GEAM should be entitled to earn a reasonable level
of profits for the services it provides to each Fund and, based on their review,
concluded that they were satisfied that GEAM's level of profitability from its
relationship with each Fund was not unreasonable or excessive.
ECONOMIES OF SCALE The Board considered the extent to which economies of scale
would be realized as the Funds grow, and whether fee levels reflect these
economies of scale for the benefit of Fund investors. The independent trustees
did not disagree with GEAM's assertion that the comparatively lower fees it has
charged to the Funds since inception (and the expenses it absorbed or
subsidized) means that GEAM is already sharing the low-fee benefits of larger
asset sizes compared to having charged higher fees on lower asset levels for the
Funds when newer. The Board recognized the benefits to the Funds of GEAM's past
investment in the Funds' operations (through those lower fees and through
subsidies of operating expenses) and that GEAM has not yet fully recouped that
investment. The Board considered the potential institution of breakpoints but
concluded, in light of these unrecouped investments, that GEAM had already
appropriately shared the economies of scale.
FALL-OUT FINANCIAL BENEFITS The Board and the independent trustees considered
other actual and potential financial benefits to GEAM and the sub-adviser in
concluding that the contractual advisory and sub-advisory fees are reasonable
for the Funds. An example of those benefits would be the soft dollars generated
by portfolio transactions by the Funds. The Board noted, however, that the Funds
benefit from the vast array of resources available through GEAM and that the
Funds represent only a small portion of the assets managed by GEAM.
CONCLUSION The Board and the independent trustees separately concluded that the
renewal of each advisory and sub-advisory agreement was in the best interest of
the shareholders of each affected Fund.
DISTRIBUTION AND SHAREHOLDER SERVICING FEES The Funds have adopted a Shareholder
Servicing and Distribution Plan ("the Plan") pursuant to Rule 12b-1 under the
1940 Act with respect to each Fund except the GE Money Market Fund. Each Fund
pays GE Investment Distributors, Inc. ("GEID"), a wholly-owned subsidiary of GE
Financial Assurance Holdings, Inc. (an indirect wholly-owned subsidiary of
General Electric Company) and the Funds' principal underwriter, a monthly fee
for distribution and/or shareholder services provided, at an annual rate of the
average daily net assets attributable to each applicable class of shares. The
annual rates applicable are 0.25% for Class A shares, 1.00% for Class B shares
(except GE Short-Term Government Fund which is .85%) and 1.00% for Class C
(level load) shares. Currently, Class Y shares are not subject to a 12b-1 fee.
Prior to September 18, 1999, the annual rates applicable were .50% for Class A
shares, 1.00% for Class B shares (except GE Short-Term Government Fund which was
..85%) and .25% for Class C shares (see Note 8 for additional information).
GEID has agreed that once Class B shares automatically convert to Class A
shares, six years after the date of purchase (eight years in the case of shares
acquired
133
March 31, 2005 (unaudited)
Notes to Financial Statements
or exchanged from shares of Investors Trust Funds), such shareholders will
become subject to the .25% distribution and/or shareholder services fees
attributable to Class A shares.
TRUSTEES COMPENSATION The Funds pay no compensation to their Trustees who are
officers or employees of GEAM or its affiliates. Trustees who are not such
officers or employees also serve in a similar capacity for other Funds advised
by GEAM. Compensation paid to unaffiliated Trustees is reflected on the
Statement of Operations. These fees are allocated pro rata across funds and
share classes served by the Trustees and are based upon the relative net assets
of each Fund. (For additional information about Trustees compensation please
refer to the Statement of Additional Information.)
SECURITIES LENDING PROGRAM GEAM administers the security lending program for the
following funds: GE Government Securities Fund, GE Short-Term Government Fund
and GE Fixed Income Fund. The security lending fee is based on the number and
duration of lending transactions. State Street Global Securities Lending acts as
the lending agent for all other funds participating in the securities lending
program.
For the period ended March 31, 2005, the GE Government Securities Fund, GE
Short-Term Government Fund and
GE Fixed Income Fund paid $440,656, $168,733 and $259,718 respectively to GEAM.
GEAM paid all fees received to third-party brokers.
OTHER For the period ended March 31, 2005, GEID acting as underwriter received
net commissions of $35,416 from the sale of Class A shares and $108,920 in
contingent deferred sales charges from redemptions of Class A, Class B and Class
C shares.
5. SUB-ADVISORY FEES
Pursuant to an investment sub-advisory agreement with GEAM, Palisade Capital
Management, LLC ("Palisade") is the Sub-Adviser to the GE Small-Cap Value Equity
Fund. Palisade is responsible for the day-to-day portfolio management of the
assets of the fund, including the responsibility for making decisions to buy,
sell or hold a particular security, under the general supervision of GEAM and
the Board of Trustees.
For their services, GEAM pays Palisade a monthly sub-advisory fee, which is
calculated as a percentage of the average daily net assets of the Fund.
6. INVESTMENT TRANSACTIONS
PURCHASES AND SALES OF SECURITIES The cost of purchases and the proceeds from
sales of investments, other than short-term securities and options, for the
period ended March 31, 2005, were as follows:
Purchases Sales
- ----------------------------------------------------------------------------
GE U.S. Equity Fund $138,204,051 $202,220,906
GE Value Equity Fund 9,437,558 13,091,886
GE Small-Cap Value Equity Fund 23,168,340 30,542,321
GE Global Equity Fund 12,625,184 15,024,431
GE International Equity Fund 40,062,991 30,127,940
GE Premier Growth Equity Fund 124,040,013 111,506,321
GE Strategic Investment Fund 187,941,153 201,760,324
GE Government Securities Fund 120,540,750 119,737,677
GE Short-Term Government Fund 28,435,123 20,707,838
GE Tax-Exempt Fund 3,349,550 11,286,691
GE Fixed Income Fund 441,709,545 453,177,483
134
March 31, 2005 (unaudited)
Notes to Financial Statements
OPTIONS During the period ended March 31, 2005, the following option contracts
were written:
GE Government GE Strategic GE Small-Cap
GE Fixed Income Securities Investment Value Equity
------------------------ ----------------------- ----------------------- ------------------------
Number Number Number Number
of Contracts Premium of Contracts Premium of Contracts Premium of Contracts Premium
- ----------------------------------------------------------------------------------------------------------------------------
Balance as of
September 30, 2004 216 $ 51,557 160 $ 38,190 64 $15,276 -- $ --
Written 1,185 286,268 675 159,188 350 84,810 366 113,377
Closed and Expired (1,185) (292,910) (715) (172,425) (350) (86,778) (239) (76,304)
- ----------------------------------------------------------------------------------------------------------------------------
Balance as of
March 31, 2005 216 $ 44,915 120 $ 24,953 64 $13,308 127 $37,073
- ----------------------------------------------------------------------------------------------------------------------------
SECURITY LENDING At March 31, 2005, the following Funds participated in
securities lending:
Loaned securities
(including accrued interest) Cash Collateral
- ---------------------------------------------------------------------------------------------------------------------
GE U.S. Equity Fund $10,796,270 $11,068,921
GE Value Equity Fund 35,569 37,300
GE Small-Cap Value Equity Fund 12,629,320 12,986,654
GE Global Equity Fund 7,336,442 7,700,854
GE International Equity Fund 25,619,486 26,935,064
GE Premier Growth Equity Fund 5,939,758 6,085,486
GE Strategic Investment Fund 15,428,680 16,215,908
GE Government Securities Fund 44,450,295 45,248,597
GE Short-Term Government Fund 18,146,826 18,504,938
GE Fixed Income Fund 23,247,827 23,689,153
135
March 31, 2005 (unaudited)
Notes to Financial Statements
7. BENEFICIAL INTEREST
The number of shareholders each owning 5% or more of a Fund are listed below.
The total percentage of a Fund held by such shareholders as well as percentage
of a Fund held by certain directly and indirectly wholly-owned subsidiaries of
General Electric Company and their respective investment plans ("GE Affiliates")
at March 31, 2005 are:
5% or Greater Shareholders
-------------------------- % of Fund Held by
Number % of Fund Held GE Affiliates*
- -----------------------------------------------------------------------------------------------------
GE U.S. Equity Fund 3 32% 32%
GE Global Equity Fund 1 32% 32%
GE International Equity Fund 3 52% 52%
GE Premier Growth Equity Fund 1 10% 10%
GE Strategic Investment Fund 2 25% 25%
GE Short-Term Government Fund 1 11% 0%
GE Fixed Income Fund 1 13% 13%
GE Money Market Fund 1 5% 5%
Investment activities of these shareholders could have a material impact
on the Funds.
* INCLUDED IN THE 5% OR GREATER SHAREHOLDER PERCENTAGE.
8. CAPITAL STOCK
On June 11, 1999, the Board of Trustees of GE Funds approved a share class
redesignation (the "Redesignation") for each of the Funds, except the GE Money
Market Fund, effective at the close of business September 17, 1999. The
Redesignation combined each Fund's respective Class A and Class C shares into a
single class designated as Class A. For each of the Funds effected by the
Redesignation, except the GE Value Equity Fund, GE Government Securities Fund
and GE Tax-Exempt Fund, Class A shares were merged into Class C shares and Class
C shares were renamed Class A shares. For the GE Value Equity Fund, GE
Government Securities Fund and GE Tax-Exempt Fund, Class C shares were merged
into Class A shares. The Redesignation was completed to simplify the structure
and increase the operating efficiencies of the Funds. For tax purposes, the
Redesignation resulted in a non-taxable exchange of shares. Additionally, Class
D shares were renamed Class Y shares.
On September 30, 1999 a new class of C shares was created and offered for public
sale effective October 1, 1999 by each of the Funds then being offered (except
the GE Money Market Fund).
136
(unaudited)
Additional Information
INFORMATION ABOUT DIRECTORS AND EXECUTIVE OFFICERS:
The business and affairs of the Company are managed under the direction of the
Company's Board of Directors. Information pertaining to the Directors and
officers of the Company is set forth below.
INTERESTED TRUSTEES AND EXECUTIVE OFFICERS
- --------------------------------------------------------------------------------
MICHAEL J. COSGROVE
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 55
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 - 11 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Executive Vice President - Chief
Commercial Officer of GEAM (formerly President, GE Asset Management Services
division ("GEAMS") of GE Financial Assurance Holdings, Inc., an indirect
wholly-owned subsidiary of General Electric Company ("GE")), since February
1997; Vice President, GE Capital Corporation, an indirect wholly-owned
subsidiary of GE, since December 1999; Executive Vice President - Sales and
Marketing of GEAM, a wholly-owned subsidiary of GE that is registered as an
investment adviser under the Investment Advisers Act of 1940, as amended, since
March 1993; Director of GEAM since 1988.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 49
OTHER DIRECTORSHIPS HELD BY TRUSTEE Chairman of the Board and President of GE
Institutional Funds, GE LifeStyle Funds and GE Investments Funds, Inc. since
1997; Trustee of Elfun Funds, GE Savings & Security Funds and General Electric
Pension Trust since 1988; Trustee of Fordham University since 2003 and Marymount
College from 1994 through 2002.
- --------------------------------------------------------------------------------
ALAN M. LEWIS
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 58
POSITION(S) HELD WITH FUND Trustee and Executive Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified - 11 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Executive Vice President, General
Counsel and Secretary of GEAM since 1987
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 49
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee and Executive Vice President of GE
Institutional Funds and GE LifeStyle Funds since 1997. Director of GE
Investments Funds, Inc. since 2001; Trustee of Elfun Funds, GE Savings &
Security Funds and General Electric Pension Trust since 1987.
137
(unaudited)
Additional Information
- --------------------------------------------------------------------------------
ROBERT HERLIHY
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 37
POSITION(S) HELD WITH FUND Treasurer
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified - 3 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Manager of Mutual Fund Operations
at GEAM since March 2002; from August 1999 to March 2002, Mr. Herlihy was a
manager in the Investment Company Services Group of PricewaterhouseCoopers LLP,
New York; from September 1998 to August 1999 a Supervisor in the Investment
Company Group at McGladrey & Pullen LLP (Acquired by PricewaterhouseCoopers LLP
in August 1999); from June 1996 to September 1998 a Manager of Audit Services at
Condon O'Meara McGinty & Donnelly LLP. Treasurer of GE Institutional Funds, GE
Lifestyle Funds, GE Investment Funds Inc., Elfun Funds, and GE Savings &
Security Funds since September 2002.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD BY TRUSTEE N/A
- --------------------------------------------------------------------------------
MATTHEW J. SIMPSON
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 44
POSITION(S) HELD WITH FUND Vice President and Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified - 11 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Senior Vice President and General
Counsel - Marketing and Client Services (formerly Asset Management Services) at
GEAM and Senior Vice President and General Counsel of GEAMS since February 1997;
from October 1992 to February 1997, Vice President and Associate General Counsel
of GEAM; Secretary of GE Institutional Funds, GE LifeStyle Funds and GE
Investments Funds, Inc. since 1997 and Vice President since September 2003;
Assistant Secretary of Elfun Funds and GE Savings & Security Funds since 1998
and Vice President since October 2003.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD BY TRUSTEE N/A
- --------------------------------------------------------------------------------
JEANNE M. LAPORTA
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 39
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified - one year
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Vice President and Associate
General Counsel - Marketing and Client Services (formerly Asset Management
Services) at GEAM since May 1997, Vice President and Assistant Secretary of GE
Institutional Funds, GE LifeStyle Funds and GE Investments Funds, Inc. since
September 2003; Vice President and Assistant Secretary of Elfun Funds and GE
Savings & Security Funds since October 2003.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD BY TRUSTEE N/A
138
(unaudited)
Additional Information
NON-INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
JOHN R. COSTANTINO
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 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 - 11 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Managing Director, Walden
Partners, Ltd., consultants and investors, since August 1992.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 41
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee of GE Institutional Funds and GE
LifeStyle Funds since 1997; Director of GE Investments Funds, Inc. since 1997;
Trustee of Fordham University since 2002 and Marymount College from 2001 through
2002; Neuroscience Research Institute since 1986; Diocesan Finance Counsel of
the Dioceses of Brooklyn &Queens since 2001; Gregorian University Foundation
since 1994.
- --------------------------------------------------------------------------------
WILLIAM J. LUCAS
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 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 - 11 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Vice President and Treasurer of
Fairfield University since 1983.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 41
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee of GE Institutional Funds and GE
LifeStyle Funds since 1997; Director of GE Investments Funds, Inc. since 1997.
- --------------------------------------------------------------------------------
ROBERT P. QUINN
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 69
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified - 11 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Retired since 1983 from Salomon
Brothers Inc.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 41
OTHER DIRECTORSHIPS HELD BY TRUSTEE GP Financial Corp, holding company; The
Greenpoint Savings Bank, a financial institution. Trustee of GE Institutional
Funds and GE LifeStyle Funds since 1997; Director of GE Investments Funds, Inc.
since 1997.
- --------------------------------------------------------------------------------
PROXY VOTING POLICIES AND PROCEDURES
You may request without charge a description of the Trust's policies and
procedures for voting proxies related to the Funds' portfolio securities by
calling 1-800-242-0134. You may also view a description of those policies and
procedures on the Funds' website at http://www.gefunds.com or on the SEC's
website at http://www.sec.gov.
139
Investment Team
TRUSTEES
Michael J. Cosgrove
John R. Costantino
Alan M. Lewis
William J. Lucas
Robert P. Quinn
SECRETARY
Matthew J. Simpson
TREASURER
Robert Herlihy
ASSISTANT TREASURER
Christopher M. Isaacs
OFFICERS OF THE INVESTMENT ADVISER
John H. Myers, CHIEF EXECUTIVE OFFICER
David B. Carlson, EVP, DOMESTIC EQUITIES
Michael J. Cosgrove, EVP, CHIEF COMMERCIAL OFFICER
John J. Walker, EVP, CHIEF FINANCIAL OFFICER
Ralph R. Layman, EVP, INTERNATIONAL EQUITIES
Alan M. Lewis, EVP, GENERAL COUNSEL AND SECRETARY
Robert A. MacDougall, EVP, FIXED INCOME
Don W. Torey, EVP, ALTERNATIVE INVESTMENTS AND REAL ESTATE
Kathryn Karlic, EVP, FIXED INCOME
INVESTMENT ADVISER AND ADMINISTRATOR
GE Asset Management Incorporated
3001 Summer Street
P.O. Box 7900
Stamford, CT 06904-7900
DISTRIBUTOR
GE Investment Distributors, Inc
Member NASD and SIPC
SHAREHOLDER SERVICING AGENT
AND TRANSFER AGENT
PFPC
GE Mutual Funds
P.O. Box 9838
Providence, RI 02940
CUSTODIAN
State Street Bank & Trust Company
At GE, we're dedicated to providing the investment options you'll need to tailor
your financial portfolio to every stage of your life. Each member of the GE
Family of Funds is managed according to the same principles of integrity and
quality that have guided GE over the past century, and have made it the
world-class company that it is today. Each fund draws strength from a tradition
of investment management that spans more than 70 years. Whether you're creating
a new investment portfolio or adding to an established one, the GE Family of
Funds offers an array of professionally managed investment options that will
help you meet a lifetime of financial needs.
140
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142
ITEM 2. CODE OF ETHICS.
Applicable only to an annual filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Applicable only to an annual filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Applicable only to an annual filing.
ITEM 5. Audit Committee of Listed Registrants
Applicable only to Closed-End Management Investment Companies.
ITEM 6. Schedule of Investments.
Attached as part of ITEM 1.
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. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
Applicable only to Closed-End Management Investment Companies.
ITEM 9. Submission of Matters to a Vote of Security Holders.
No material changes.
ITEM 10. CONTROLS AND PROCEDURES.
The officers providing the certifications in this report in accordance
with Rule 30a-3 under the Investment Company Act of 1940 have concluded,
based on their evaluation of the registrant's disclosure controls and
procedures (as such term is defined in such rule), that such controls and
procedures are adequate and reasonably designed to achieve the purpose
described in paragraph (c) of such rule.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent
to the date of their last evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
ITEM 11. EXHIBITS.
(a) Not applicable.
(b) Attached hereto as Exhibit 1 and Exhibit 2 are the Certifications of
Michael J. Cosgrove and Robert Herlihy as principal executive officer and
principal financial officer, respectively, as required by Rule 30a-2 under
the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the Registrant has duly
caused this Report to be signed on its behalf by the undersigned,
thereunto duly authorized.
GENERAL ELECTRIC FUNDS
By: /S/MICHAEL J. COSGROVE
Michael J. Cosgrove
Chairman, GE FUNDS
Date: June 07, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on
the dates indicated.
By: /S/MICHAEL J. COSGROVE
Michael J. Cosgrove
Chairman, GE FUNDS
Date: June 07, 2005
By: /S/ROBERT HERLIHY
Robert Herlihy
TREASURER, GE FUNDS
Date: June 07, 2005
EXHIBIT INDEX
(b)(1) Certifications of principal executive officer and
principal financial officer as required by Rule 30a-2 under the
Investment Company Act of 1940.
(b)(2) Certification of principal executive officer and
principal financial officer as required by Section 906 of the
Sarbanes-Oxley Act of 2002.