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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
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GENERAL ELECTRIC FUNDS
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(Exact name of registrant as specified in charter)
3001, SUMMER STREET,STAMFORD, CONNECTICUT, 06905
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(Address of principal executive offices) (Zip code)
GE ASSET MANAGEMENT,3001, SUMMER STREET,STAMFORD,CONNECTICUT,06905
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(Name and address of agent for service)
Registrant"s telephone number, including area code: 800-242-0134
----------------------------
Date of fiscal year end: 09/30
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Date of reporting period: 03/31/08
-------------------------
ITEM 1. REPORTS TO STOCKHOLDERS
GE Funds
Letter from the President
DEAR SHAREHOLDER:
Attached is the semi-annual report for the GE Funds for the six-month period
ended March 31, 2008. The report contains information about the performance of
your fund, and other fund specific data, along with portfolio manager
commentary. We have provided you with an overview of the investment markets,
along with our investment outlook for the coming months.
MARKET OVERVIEW
Investor confidence began to wane in the fourth quarter as housing woes and
troubles with mortgage-backed securities spilled over into the broader credit
markets and the economy in general. Despite the uncertainty, the blue-chip Dow
Jones Industrial Average finished 2007 with a gain of 6.4%, while the broader
S&P 500 Index was up only 3.5% for the year. However, both indexes declined in
the fourth quarter, reflecting investors' concerns about the year ahead.
The New Year dumped cold water on stock market participants as the debate about
the "R" word -- recession -- shifted from wondering if it would occur to
predicting its probable length and depth. The subprime downturn severely hurt
many large banks and investment firms around the globe, which took billions of
dollars in write-downs and losses on the mortgage-related securities they held.
The ensuing liquidity crunch in the credit and money markets created problems
for other financial institutions and lenders, which found it more difficult and
costly to raise the short-term debt needed to fund their operations. The outlook
for 2008 was further dimmed by continued housing weakness, record commodity
prices, waning consumer confidence and evidence of slower job growth. With the
United States clearly in an economic slump, market observers expected more
volatility in the coming months and seemed to agree that 2008 would be a
stockpicker's market.
U.S. MARKETS
In early January, Federal Reserve Chairman Ben Bernanke noted that "additional
easing may well be necessary" to offset "downside risks" and former Fed Chairman
Alan Greenspan chimed in with 50% odds on a short, shallow recession. The Fed
cut rates twice in January, lowering the target rate by an astonishing 125 basis
points from 4.25% to 3.00%. In mid-February, Mr. Bernanke announced that the Fed
would respond quickly to "provide insurance against downside risks" and
President Bush, with unusually prompt support from Congress, signed a $152
billion fiscal stimulus package with payments to individuals slated to begin in
May. Spurred by continued weak economic data, the Fed took emergency action in
mid-March, lowering the federal funds rate a further 75 basis points to 2.25%.
On the previous day, the collapse of Bear Stearns was averted, as JPMorgan Chase
made a bid for the troubled investment bank with the financial backing of the
Fed. Days later, the Fed opened the discount window to investment banks for the
first time. Treasury Secretary Paulson swiftly followed by proposing a wide-
reaching set of new rules that would represent the most radical change in the
oversight of financial markets and institutions since the 1930s. The Secretary's
so-called restructuring blueprint, if implemented over the next several years,
empowers regulators to anticipate problems and initiate solutions more
effectively, including those involving investment banks.
Against a backdrop of worrisome financial and economic news, the U.S. equity
market suffered a record-setting poor start in the first quarter, with the Dow
losing 7.0% and declining by over 1000 points, its largest first-quarter point
loss ever. By the end of March, the Dow had fallen 13% from its 14,164.53 record
close set in October, the last month in which the Dow produced a positive
return. Similarly, the S&P 500 Index dropped 9.4% in the first quarter and was
down 16% from its October highs. All sectors within the S&P 500 Index lost
ground during the quarter, led by declines in technology and financial stocks.
The technology-laden NASDAQ Index suffered the most during the first quarter,
tumbling 14.1% as concerns about weak consumer spending drove down consumer-
oriented technology stocks such as Apple and Google.
U.S. bond investors took positive note of the Fed's actions to alleviate the
liquidity crisis, including the creation of a new Term Securities Lending
Facility to lend primary dealers up to $200 billion in Treasury securities in
exchange for their less liquid securities. In addition, the Term Auction
Facility, which provides term financing to depository institutions, was raised
to $100 billion. Capital requirements for Freddie Mac and Fannie Mae were also
eased, allowing them to increase their
[PHOTO OF CHAIRMAN]
[GE LOGO]
THIS DOES NOT CONSTITUTE A PART OF THE FUNDS' SHAREHOLDER REPORT
GE Funds
Letter from the President (continued)
mortgage portfolios and thereby help stabilize the housing market. Although the
effectiveness of these actions remains to be seen, the lower federal funds rate
and a flight to quality caused interest rates to decline and lifted the Lehman
Brothers Aggregate Bond Index to a positive 2.2% return for the quarter. U.S.
Treasurys dominated sector performance with a positive total return of 4.4% for
the quarter as interest rates fell across the yield curve, especially at the
short end.
INTERNATIONAL MARKETS
The problems confronting the U.S. economy are clearly weighing on the global
community, and April's G-7 meeting of international finance ministers directly
addressed the issue of U.S. dollar weakness, but failed to make tangible
progress. The finance ministers called for greater oversight of financial firms
worldwide and announced plans to strengthen regulatory powers to deal with
global financial stresses. In early April, the International Monetary Fund (IMF)
declared that the market crisis had developed into the "largest financial shock
since the Great Depression" and predicted a one-in-four chance of a global
recession. The IMF forecast a "mild recession" for the U.S. economy, with growth
projected at a lackluster 0.5% this year, the worst pace in 17 years, and just
0.6% for 2009. The IMF expects the world economy, which grew by a hardy 4.9%
last year, will see slower growth of 3.7% for 2008 and 3.8% for 2009.
During the first quarter, international equity markets echoed the dismal
performance of U.S. equities, with the MSCI EAFE Index losing 8.8% in U.S.
dollar terms. In the United Kingdom, the FTSE 100 Index lost over 10%,
reflecting a slowing economy and, as house prices began to slide and consumers
felt stressed, the Bank of England cut its short-term benchmark rate 25 basis
points to 5.00%. Stocks also finished the quarter lower in continental Europe,
with the DJ Euro Stoxx 50 Index, a barometer of blue-chip eurozone companies,
also lower by more than 10.0%. In Japan, where the strengthening yen is
worrisome for earnings because many Japanese companies rely heavily on exports,
the Nikkei 225 stock average lost over 18%. In addition, the MSCI Emerging
Markets Index finished the quarter lower by more than 10%, but the economies of
China and India remain strong as their insatiable infrastructure spending
exceeds $3 billion on a daily basis.
OUTLOOK
We believe that the Federal Reserve intends to take necessary actions to avoid a
major recession and the steps taken by the Fed so far, in conjunction with the
government's stimulus package, have improved investor confidence by returning
some sense of stability to the U.S. financial system. Although we are not out of
the woods yet, equity valuations remain low by historic standards, earnings
deterioration appears to be contained within the financials sector and credit
conditions are improving. Interest rates remain benign, and there is the
encouraging prospect of a coordinated global response to bolster growth and
anticipate, rather than simply react to, financial market problems. We expect
U.S. stocks to continue to experience heightened volatility as many issues
remain a concern, including oil exceeding $100 a barrel, the weak dollar and
mounting inflation pressures. We are closely monitoring credit conditions,
employment trends and other key economic variables to determine if the Fed's
actions are having a positive impact. We believe that at current valuation
levels, there are plenty of opportunities for the bottom-up stock investor.
International stock market valuations look even more attractive after the first-
quarter pullback. With first quarter earnings announcements now underway, we
will be analyzing corporate earnings results and stock valuations carefully to
determine when the time has come to invest more vigorously.
The Federal Reserve cut short-term interest rates by an additional 25 basis
points during the second quarter, dropping the Fed Funds rate to 2%. At this
point we expect the Fed to stop easing. Given the current environment, we do not
expect to increase our exposure to corporate, high yield and emerging markets
debt, as superior returns are more likely to be realized from U.S. Treasury and
agency instruments.
At GE Funds, we are fully committed to helping you achieve your goals with
smart, proven investment strategies designed for long-term success. I encourage
you to continue paying close attention to your portfolio.
Sincerely,
/s/ Michael J. Cosgrove
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Michael J. Cosgrove
Chairman, GE Funds
May 2008
Mike Cosgrove is an Executive Vice President of GE Asset Management and
President and Chief Executive Officer-Mutual Funds at GE Asset Management. Mr.
Cosgrove also serves as a Trustee of the GE Pension Trust and GE's employee
savings program. Previously Chief Financial Officer of GE Asset Management and
Assistant Treasurer-GE Company, Mike joined GE in 1970 and held a number of
managerial positions in finance and sales in the International Operation and in
GE Trading Company. He has a B.S. in Economics from Fordham University and an
M.B.A. from St. John's University.
THIS DOES NOT CONSTITUTE A PART OF THE FUNDS' SHAREHOLDER REPORT
GE Funds
Semi-Annual Report
March 31, 2008
[GE LOGO]
GE Funds
Table of Contents
FINANCIAL INFORMATION
NOTES TO PERFORMANCE............................................................ 1
MANAGER REVIEWS AND SCHEDULES OF INVESTMENTS
GE U.S. Equity Fund........................................................ 3
GE Core Value Equity Fund.................................................. 12
GE Small-Cap Equity Fund................................................... 20
GE Global Equity Fund...................................................... 27
GE International Equity Fund............................................... 34
GE Premier Growth Equity Fund.............................................. 42
GE Strategic Investment Fund............................................... 49
GE Government Securities Fund.............................................. 66
GE Short-Term Government Fund.............................................. 72
GE Tax-Exempt Fund......................................................... 78
GE Fixed Income Fund....................................................... 85
GE Money Market Fund....................................................... 97
NOTES TO SCHEDULES OF INVESTMENTS............................................... 103
FINANCIAL STATEMENTS
Financial Highlights....................................................... 104
Notes to Financial Highlights.............................................. 116
Statements of Assets and Liabilities....................................... 118
Statements of Operations................................................... 122
Statements of Changes in Net Assets........................................ 124
Notes to Financial Statements.............................................. 128
ADVISORY AGREEMENT RENEWAL...................................................... 141
ADDITIONAL INFORMATION.......................................................... 145
INVESTMENT TEAM................................................................. 148
This report has been prepared for shareholders and may be distributed to others
only if preceded by or accompanied with a current prospectus.
March 31, 2008 (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, B and C 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 Core Value Equity
Fund (formerly 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, 2008.
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 the GE Funds on an annualized basis through January 29, 2009.
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(R) 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 2,000 of the smallest U.S.-domiciled
publicly traded common stocks that are included in the Russell 3000(R) Index.
The Russell 3000(R) Index is comprised of the 3,000 largest U.S. domiciled
companies. The results shown for the foregoing index assume the reinvestment of
net dividends or interest. The MSCI World 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
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
index is designed to represent performance of the U.S. investment-grade fixed-
rate bond market. 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 composed 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.
1
March 31, 2008 (unaudited)
Notes to Performance
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, 2008 and therefore are
calculated from the month end nearest to the Funds' commencement of operation
date.
The peer universe of funds used in our peer ranking calculation is based on the
blend of Lipper peer categories, as shown. This blend is the same as the
category blend used by the Wall Street Journal (except for the GE Strategic
Investment Fund for which we use the specific Lipper peer group and the GE Money
Market Fund, which is not in the Wall Street Journal). The actual number of
funds and numerical rankings in the Lipper and Wall Street Journal universes
could differ since the Wall Street Journal excludes certain funds which do not
meet their net asset or number of shareholder publication thresholds. A Fund's
performance may be compared to or ranked within a universe of mutual funds with
investment objectives and policies similar but not necessarily identical to the
Fund's. Such comparisons or rankings are made on the basis of several factors,
including the Fund's objectives and policies, management style and strategy, and
portfolio composition, and may change over time if any of those factors change.
Lipper is an independent mutual fund rating service.
The views expressed in this document reflect our judgment as of the publication
date and are subject to change at any time without notice.
+ 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.
++ 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.
(a) Ending value of a $10,000 investment for the ten-year period or since
inception, whichever is less.
GE Investment Distributors, Inc., Member of FINRA & SIPC, is the principal
underwriter and distributor of the GE Funds and a wholly owned subsidiary of GE
Asset Management Incorporated, the investment adviser of the Funds.
2
GE U.S. Equity Fund
The GE U.S. Equity Fund is managed by a team of portfolio managers that includes
George A. Bicher, Stephen V. Gelhaus, Thomas R. Lincoln and Paul C. Reinhardt.
Each of the foregoing portfolio managers manages (or co-manager) one of three
sub-portfolios, which comprise the Fund. The three sub-portfolios are managed
independently of each other and the portfolio managers have full discretion over
their sub-portfolio. The weightings to each sub-portfolio in the Fund, which can
be changed at any time but generally remain stable for 18 to 24 months, are
driven by the objective of keeping the Fund "style neutral" such that it
combines growth and value investment management styles and does not tend to
favor either style. See portfolio managers' biographical information beginning
on page 148.
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, 2008?
A. For the six-month period ended March 31, 2008, the GE U.S. Equity Fund
returned -11.21% for the Class A shares, -11.58% for the Class B shares,
-11.56% for the Class C shares, -2.19% for the Class R shares and -11.14%
for the Class Y shares. The S&P 500 Index, the Fund's benchmark, returned
-12.46% and the Fund's Lipper peer group of 848 Large-Cap Core Funds
returned an average of -12.95% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. The past six-month period was a challenge for U.S. Equity investors, as the
housing recession, skyrocketing commodity prices and tight credit
conditions threatened the outlook for economic growth and corporate
profits. During the period, the Fed addressed the risks to growth by easing
monetary policy, lowering its benchmark rate by 250 basis points to 2.25%
at March 31, 2008. Despite this injection of liquidity, and other
supportive measures by the Fed, credit conditions remained tight throughout
the period, and volatility remained high.
Financials (-26.3%) was the worst-performing S&P 500 sector during the
period, reflecting locked-up credit markets, huge write-downs of mortgage-
related securities at banks and brokerages and the collapse of Bear
Stearns, one of Wall Street's largest and oldest investment banks. Other
sectors that performed poorly included telecom (-18.1%) and consumer
Pictured from left to right: Thomas R. Lincoln, Paul C. Reinhardt, Stephen V.
Gelhaus and George A. Bicher
[PHOTO OF PORTFOLIO MANAGERS]
3
GE U.S. Equity Fund
discretionary (-15.3%). Given concerns that the U.S. has entered an
economic recession, the only sector generating a positive return was the
relatively defensive consumer staples sector, rising 1.5%. Energy,
utilities and materials, each down approximately 3%, performed well on a
relative basis reflecting continued bullishness regarding global
infrastructure development and the commodity outlook. Higher-quality
companies were favored amid the period's flight to quality and weak-dollar
environment.
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A. Recession fears compounded by the financial crisis negatively affected the
equity markets, and the Fund's high quality, large cap holdings generated
strong relative performance in this environment. We had positive stock
selection within technology, as we overweighted high-quality, global
players like Western Union (+1.6%) and QUALCOMM (+4.5%). Emphasizing
outperforming software companies -- the period's best-performing tech
industry group -- bolstered returns, with relative strength in Microsoft
(-3%) and Salesforce.com (+13%). Owning Yahoo (+8%) upon the announcement
of Microsoft's $44 billion takeover bid also helped.
Underweighting financials benefited the Fund, as we avoided the stocks most
exposed to seizing credit markets. We underweighted commercial banks and
investment banks and focused primarily on companies with fee-driven
business models like State Street (+17%). This positioning more than offset
lagging performances in AIG (-36%), Freddie Mac (-56%) and Citigroup
(-53%). Also contributing to performance were key cyclicals and commodity
oriented stocks benefiting from the economic development in emerging
markets. Top performers included Transocean (+13%), Hess (+33%), Barrick
Gold (+8%) and Monsanto (+31%). Overweighting consumer staples companies
also drove returns, with key contributions from Colgate-Palmolive (+10%)
and General Mills (+5%).
Partially offsetting the above, an underweight in industrials had a drag on
returns. In addition, as telecommunications companies struggled amid price
competition in the wireless space, NII Holdings (-61%) -- a wireless player
in Latin America -- was the Fund's most challenging stock. Within media,
Comcast was down 21%, but rebounded +5% in the second half of the period on
dividend and share buyback announcements that boosted its free cash flow
outlook. Weakness among the Fund's healthcare holdings also detracted from
returns, driven by pullbacks in Amgen (-26%) and UnitedHealth (-29%).
Amgen, retreated on safety concerns regarding its anemia drugs, and
increased FDA scrutiny. However, we continued to like the strength in
Amgen's pipeline of therapeutics, and its long-term prospects. UnitedHealth
fell along with other health insurers as costlier medical claims prompted
downward earnings revisions in the HMO group.
Q. WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND OVER THE PERIOD?
A. There were no significant changes in the Fund as we have remained committed
to investing in high quality large-cap stocks with predictable and steady
earnings growth at compelling valuations. We continued to be relatively
defensively positioned, although at March 31st, our largest overweight was
in technology -- an area that we believe could benefit from multiple
expansion in the months to come due to the large international component of
tech earnings, and its above average growth prospects. Our tech holdings
tend to be less economically sensitive, with high recurring revenues and
ample free cash flow.
The period was marked by a credit crisis and liquidity impasse culminating
in the near-collapse of Bear Stearns (not owned by
4
GE U.S. Equity Fund
Fund). In this environment, the portfolio's underweight in financials
benefited performance. The odds of a recession increased during the
quarter, and we remained comfortable with our positioning in this
environment. We have expected our large cap, high quality companies to
demonstrate the financial flexibility and balance sheet strength to weather
an economic slowdown, and to benefit from a flight to quality in skittish
markets. Valuations of many of our holdings remain below historical
averages, despite strong relative earnings performance. In addition, we
believe many of our multinationals will likely benefit from growth
prospects outside of North America. We remain focused on a long-term
investment horizon and continue to utilize a bottom-up, research-driven,
fundamental approach to stock selection.
5
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 01, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE END OF THE PERIOD DURING THE PERIOD
PERIOD ($) ($) ($)*
-------------------- -------------------- --------------------
ACTUAL FUND RETURN**
Class A 1,000.00 887.89 3.76
Class B 1,000.00 884.19 7.32
Class C 1,000.00 884.43 7.32
Class R 1,000.00 972.93 5.20
Class Y 1,000.00 879.24 2.56
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
Class A 1,000.00 1,020.83 3.99
Class B 1,000.00 1,017.15 7.77
Class C 1,000.00 1,017.15 7.77
Class R 1,000.00 1,006.58 5.26
Class Y 1,000.00 1,022.06 2.73
* 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, 1.05% for Class R and 0.54%
for Class Y (from period October 01, 2007 -- March 31, 2008), multiplied by
the average account value over the period, multiplied by 183/366 (to
reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 was as
follows: (11.21)% for Class A shares, (11.58)% for Class B shares, (11.56)%
for Class C shares, since inception of (2.19)% for Class R shares and
(11.14)% for Class Y shares.
6
GE U.S. Equity Fund
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2008
as a % of Market Value
Cisco Systems, Inc. 2.89%
Microsoft Corp. 2.77%
PepsiCo, Inc. 2.62%
Industrial Select Sector
SPDR Fund 2.50%
Exxon Mobil Corp. 2.28%
Transocean, Inc. 2.18%
Intel Corp. 2.07%
Amgen, Inc. 2.02%
QUALCOMM, Inc. 1.96%
Oracle Corp. 1.88%
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 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ------ ------
Number of
Funds in
peer group: 848 825 567 295
Peer group
average annual
total return: (12.95)% (5.54)% 10.13% 2.74%
Lipper categories in peer group: Large Cap Core
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ----- ----------
GE U.S. Equity (11.21)% (2.20)% 9.85% 4.01% 14,816
W/load (16.32)% (7.82)% 8.56% 3.40% 13,964
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE U.S. Equity (11.58)% (2.96)% 9.03% 3.55% 14,167
W/load (15.58)% (6.96)% 9.03% 3.55%
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ----- ----- --------- ----------
GE U.S. Equity (11.56)% (2.96)% 9.03% 2.01% 11,840
W/load (12.56)% (3.96)% 9.03% 2.01%
S&P 500 Index (12.46)% (5.07)% 11.32% 2.03% 11,863
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
----- --------- ------------ ----------
GE U.S. Equity (1.05)% (2.19)% 01/29/08 9,704
S&P 500 Index (0.43)% (3.67)% 9,633
7
GE U.S. Equity Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE U.S. Equity (11.14)% (1.98)% 10.12% 4.27% 15,194
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
8
GE U.S. EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
GE U.S. EQUITY FUND
Portfolio Composition as a % of Market Value of $393,276
(in thousands) as of March 31, 2008
[PIE CHART]
NUMBER
OF SHARES VALUE
----------- -----------
COMMON STOCK -- 95.5%
CONSUMER DISCRETIONARY -- 9.0%
Bed Bath & Beyond, Inc. ......................... 152,521 $ 4,499,370(a)
Cablevision Systems Corp. ....................... 41,869 897,253(a)
Carnival Corp. .................................. 69,303 2,805,385
Comcast Corp. (Class A) ......................... 356,691 6,766,428
Darden Restaurants, Inc. ........................ 7,675 249,821
Kohl's Corp. .................................... 17,997 771,891(a)
Liberty Global, Inc. (Series C) ................. 35,528 1,153,949(a)
Liberty Media Entertainment Corp. (Series A) .... 75,076 1,699,721(a)
Lowe's Companies, Inc. .......................... 103,973 2,385,141
News Corp. (Class A) ............................ 76,750 1,439,062
Omnicom Group, Inc. ............................. 151,487 6,692,696
Staples, Inc. ................................... 46,031 1,017,745
The Cheesecake Factory .......................... 18,446 401,938(a)
The Walt Disney Co. ............................. 24,769 777,251
Time Warner, Inc. ............................... 204,083 2,861,244
Viacom Inc. (Class B) ........................... 25,815 1,022,790(a)
35,441,685
CONSUMER STAPLES -- 11.0%
Alberto-Culver Co. .............................. 50,889 1,394,867
Clorox Co. ...................................... 29,654 1,679,603
Colgate-Palmolive Co. ........................... 53,180 4,143,254
Diageo PLC ADR .................................. 9,236 751,071
General Mills, Inc. ............................. 67,773 4,058,247
Kimberly-Clark Corp. ............................ 80,605 5,203,053
McCormick & Company, Inc. ....................... 64,697 2,391,848
Nestle S.A. ADR ................................. 12,411 1,551,375
PepsiCo, Inc. ................................... 142,679 10,301,424
Procter & Gamble Co. ............................ 58,599 4,106,032
Sara Lee Corp. .................................. 55,818 780,336
The Coca-Cola Co. ............................... 9,070 552,091
The Estee Lauder Companies Inc. (Class A) ....... 41,166 1,887,461
Wal-Mart Stores, Inc. ........................... 86,385 4,550,762
43,351,424
ENERGY -- 10.9%
Apache Corp. .................................... 17,445 2,107,705
Devon Energy Corp. .............................. 27,272 2,845,288
Exxon Mobil Corp. ............................... 105,825 8,950,679(h)
Halliburton Co. ................................. 51,981 2,044,413
Hess Corp. ...................................... 46,629 4,111,745
Marathon Oil Corp. .............................. 63,622 2,901,163
Nabors Industries Ltd. .......................... 20,932 706,874(a)
National Oilwell Varco, Inc ..................... 5,233 305,503(a)
Schlumberger Ltd. ............................... 81,103 7,055,961
Suncor Energy, Inc. ............................. 31,860 3,069,711
Transocean, Inc. ................................ 63,471 8,581,279
42,680,321
FINANCIALS -- 12.6%
ACE Ltd. ........................................ 37,177 2,046,966
Allstate Corp. .................................. 29,248 1,405,659(h)
American Express Co. ............................ 29,652 1,296,385
American International Group, Inc. .............. 130,221 5,632,058
Ameriprise Financial, Inc ....................... 23,605 1,223,919
AON Corp. ....................................... 38,049 1,529,570
Bank of America Corp. ........................... 27,908 1,057,992
Bank of New York Mellon Corp .................... 52,329 2,183,689
Berkshire Hathaway, Inc. (Class B) .............. 81 362,305(a)
BlackRock, Inc. ................................. 3,489 712,384
CB Richard Ellis Group, Inc. (Class A) .......... 84,911 1,837,474(a)
Chubb Corp. ..................................... 35,933 1,777,965
Citigroup, Inc. ................................. 161,334 3,455,774
Federal Home Loan Mortgage Corp ................. 45,352 1,148,313
Federal National Mortgage Assoc ................. 72,981 1,920,860
Goldman Sachs Group, Inc. ....................... 16,427 2,716,862
HCC Insurance Holdings, Inc ..................... 23,845 541,043
JP Morgan Chase & Co. ........................... 82,718 3,552,738
Marsh & McLennan Companies, Inc ................. 24,419 594,603
Metlife, Inc. ................................... 79,272 4,776,931
State Street Corp. .............................. 75,982 6,002,578(e)
SunTrust Banks, Inc. ............................ 33,136 1,827,119
US Bancorp ...................................... 39,421 1,275,664
Wachovia Corp. .................................. 17,499 472,473
49,351,324
HEALTHCARE -- 12.8%
Abbott Laboratories ............................. 76,872 4,239,491
Aetna, Inc. ..................................... 64,433 2,711,985
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
9
GE U.S. EQUITY FUND March 31, 2008 (unaudited)
SCHEDULE OF INVESTMENTS
NUMBER
OF SHARES VALUE
----------- -----------
Amgen, Inc. ..................................... 190,039 $ 7,939,829(a)
Baxter International, Inc ....................... 40,773 2,357,495
Boston Scientific Corp. ......................... 170,130 2,189,573(a)
Bristol-Myers Squibb Co. ........................ 59,305 1,263,197
Covidien Ltd. ................................... 52,218 2,310,647
DaVita, Inc. .................................... 25,110 1,199,254(a)
Genentech Inc. .................................. 51,899 4,213,161(a)
Gilead Sciences, Inc. ........................... 44,947 2,316,119(a)
GlaxoSmithKline PLC ADR ......................... 6,979 296,119
Hologic, Inc. ................................... 13,955 775,898(a)
Johnson & Johnson ............................... 16,746 1,086,313
McKesson Corp. .................................. 27,909 1,461,594
Medtronic, Inc. ................................. 64,227 3,106,660
Merck & Company, Inc. ........................... 55,165 2,093,512
Resmed, Inc. .................................... 43,865 1,850,226(a)
Thermo Fisher Scientific, Inc ................... 10,679 606,994(a)
UnitedHealth Group, Inc. ........................ 141,510 4,862,284
Wyeth ........................................... 86,778 3,623,849(h)
50,504,200
INDUSTRIALS -- 7.4%
ABB Ltd. ADR .................................... 46,179 1,243,139
CAE, Inc. ....................................... 195,012 2,210,408
Cooper Industries Ltd. .......................... 34,886 1,400,673
Deere & Co. ..................................... 12,907 1,038,239
Dover Corp. ..................................... 49,928 2,085,992(h)
Eaton Corp. ..................................... 14,304 1,139,600
Emerson Electric Co. ............................ 34,542 1,777,531
General Dynamics Corp. .......................... 41,370 3,449,017
Hexcel Corp. .................................... 47,027 898,686(a)
ITT Corp. ....................................... 23,026 1,192,977
Koninklijke Philips Electronics N.V ............. 13,550 519,507
Monster Worldwide, Inc. ......................... 48,299 1,169,319(a)
Rockwell Collins, Inc. .......................... 4,618 263,919
Siemens AG ADR .................................. 3,488 379,983
Suntech Power Holdings Company Ltd. ADR ......... 11,163 452,771(a)
Textron, Inc. ................................... 103,815 5,753,427
3M Co. .......................................... 11,512 911,175
United Technologies Corp. ....................... 45,787 3,151,061
29,037,424
INFORMATION TECHNOLOGY -- 23.4%
Affiliated Computer Services, Inc. (Class A) .... 20,583 1,031,414(a)
Analog Devices, Inc. ............................ 47,623 1,405,831
Apple Computer, Inc. ............................ 4,535 650,773(a)
Automatic Data Processing, Inc .................. 43,704 1,852,613
Cisco Systems, Inc. ............................. 472,370 11,379,393(a)
Corning Incorporated ............................ 86,578 2,081,335
Dell, Inc. ...................................... 12,988 258,721(a)
Fidelity National Information Services, Inc ..... 48,952 1,867,029
Google, Inc. (Class A) .......................... 2,442 1,075,628(a)
Hewlett-Packard Co. ............................. 91,144 4,161,635
Intel Corp. ..................................... 384,565 8,145,087
International Business Machines Corp. ........... 34,327 3,952,411
Intuit Inc. ..................................... 113,224 3,058,180(a)
Iron Mountain Incorporated ...................... 41,862 1,106,831(a)
Lam Research Corp. .............................. 17,792 680,010(a)
Maxim Integrated Products, Inc .................. 53,684 1,094,617
Microchip Technology Inc. ....................... 29,076 951,657
Microsoft Corp. ................................. 383,485 10,883,304(h)
Molex, Inc. (Class A) ........................... 76,170 1,665,076
National Semiconductor Corp ..................... 53,106 972,902
Oracle Corp. .................................... 377,156 7,377,171(a)
Paychex, Inc. ................................... 115,449 3,955,283
QUALCOMM, Inc. .................................. 188,204 7,716,364
Research In Motion Ltd. ......................... 25,009 2,806,760(a)
Salesforce.com, Inc. ............................ 6,584 381,016(a)
Taiwan Semiconductor Manufacturing Company
Ltd. ADR ...................................... 111,635 1,146,493
Texas Instruments Incorporated .................. 61,051 1,725,912
Western Union Co. ............................... 272,325 5,792,353
Yahoo! Inc. ..................................... 94,629 2,737,617(a)
91,913,416
MATERIALS -- 3.9%
Alcoa, Inc. ..................................... 31,047 1,119,555
Allegheny Technologies Incorporated ............. 50,917 3,633,437
Barrick Gold Corp. .............................. 63,742 2,769,590
Freeport-McMoRan Copper & Gold, Inc. ............ 18,218 1,752,936
Monsanto Co. .................................... 36,004 4,014,446
Praxair, Inc. ................................... 16,951 1,427,783
Vulcan Materials Co. ............................ 11,166 741,422
15,459,169
TELECOMMUNICATION SERVICES -- 2.1%
AT&T, Inc. ...................................... 21,978 841,757
NII Holdings Inc. (Class B) ..................... 107,390 3,412,854(a)
Verizon Communications, Inc ..................... 89,667 3,268,362
Vodafone Group, PLC ADR ......................... 20,931 617,674
8,140,647
UTILITIES -- 2.4%
American Electric Power Company, Inc. ........... 18,490 769,739
Constellation Energy Group, Inc ................. 7,676 677,560
Dominion Resources, Inc. ........................ 91,229 3,725,792
Edison International ............................ 24,420 1,197,068
Entergy Corp. ................................... 9,767 1,065,384
FPL Group, Inc. ................................. 18,895 1,185,472
PG&E Corp. ...................................... 18,348 675,573
9,296,588
TOTAL COMMON STOCK (COST $374,588,272) .......... 375,176,198
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
10
GE U.S. EQUITY FUND March 31, 2008 (unaudited)
SCHEDULE OF INVESTMENTS
NUMBER
OF SHARES VALUE
--------- -----------
EXCHANGE TRADED FUNDS -- 3.1%
Financial Select Sector SPDR Fund .......... 94,913 $ 2,360,486(o)
Industrial Select Sector SPDR Fund ......... 262,411 9,814,171(o)
TOTAL EXCHANGE TRADED FUNDS
(COST $9,987,090) ........................ 12,174,657
OTHER INVESTMENTS -- 0.0%*
GEI Investment Fund
(COST $170,548) .......................... 133,028(k)
TOTAL INVESTMENTS IN SECURITIES
(COST $384,745,910) ...................... 387,483,883
SHORT-TERM INVESTMENTS -- 1.5%
SHORT-TERM INVESTMENTS -- 1.4%
GE Money Market Fund Institutional Class
2.08% .................................... 5,306,898(d,p)
PRINCIPAL
AMOUNT
---------
TIME DEPOSIT -- 0.1%
State Street Corp. 1.75%
04/01/08...................... $485,000 485,000(e)
TOTAL SHORT-TERM INVESTMENTS
(COST $5,791,898)............. 5,791,898
TOTAL INVESTMENTS
(COST $390,537,808)........... 393,275,781
LIABILITIES IN EXCESS OF
OTHER ASSETS,
NET -- (0.1)%................. (228,735)
------------
NET ASSETS -- 100.0%............ $393,047,046
============
OTHER INFORMATION
The GE U.S. Equity Fund had the following long futures contracts open at March
31, 2008 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
- ----------- ---------- --------- -------- ------------
S&P 500 Index
Futures June 2008 2 $662,000 $11,009
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
11
[Q&A LOGO]
GE U.S. Equity Fund
The GE Core Value Equity Fund (formerly GE Value Equity fund) is co-managed by
Paul C. Reinhardt and Stephen V. Gelhaus. Messrs. Reinhardt and Gelhaus both
manage the Fund as a collaborative team. Both portfolio managers have the
authority to increase or decrease existing positions in the Fund; however, Mr.
Reinhardt, as lead manager, is vested with the authority to purchase securities
that are new to the Fund or to divest the Fund of its entire position in a
security. Mr. Reinhardt also has veto authority over Mr. Gelhaus' trade
decisions. See portfolio managers' biographical information beginning on page
148.
Q. HOW DID THE GE CORE VALUE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2008?
A. For the six-month period ended March 31, 2008, the GE Core Value Equity
Fund returned -10.44% for the Class A shares, -10.73% for the Class B
shares, -10.70% for the Class C shares, -2.38% for the Class R shares and
-10.21% for the Class Y shares. The S&P 500 Index, the Fund's benchmark,
returned -12.46% and the Fund's Lipper peer group of 848 Large-Cap Core
Funds returned an average of -12.95% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. The past six-month period was a challenge for U.S. Equity investors, as the
housing recession, skyrocketing commodity prices and tight credit
conditions threatened the outlook for economic growth and corporate
profits. During the period, the Fed addressed the risks to growth by easing
monetary policy, lowering its benchmark rate by 250 basis points to 2.25%
at March 31, 2008. Despite this injection of liquidity, and other
supportive measures by the Fed, credit conditions remained tight throughout
the period, and volatility remained high.
Financials (-26.3%) was the worst-performing S&P 500 sector during the
period, reflecting locked-up credit markets, huge write-downs of mortgage-
related securities at banks and brokerages and the collapse of Bear
Stearns, one of Wall Street's largest and oldest investment banks. Other
sectors that performed poorly included telecom (-18.1%) and consumer
discretionary (-15.3%). Given concerns that the U.S. has entered an
economic recession, the only sector generating a positive return was the
relatively defensive consumer staples sector, rising 1.5%. Energy,
utilities and materials, each down approximately 3%, performed well on a
relative basis reflecting continued bullishness regarding global
infrastructure development and the commodity outlook. Higher-quality
companies were favored amid the period's flight to quality and weak-dollar
environment.
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A. The Fund performed well relative to the market partly because of an
overweight in higher quality large-cap companies in the consumer staples
sector. In addition, the Fund sidestepped the worst of the fallout from the
sub-prime debacle by underweighting financials, especially commercial and
investment banks. As oil surpassed $100 per barrel for the first time in
history, our energy holdings also benefited the Fund, driven by strength in
Hess (+33%), Transocean (+13%) and Apache Corp. (+35%). We had positive
stock selection within technology as we overweighted high-quality, global
players like Western Union (+2%), Taiwan
[PHOTO OF PAUL C. REINHARDT]
Pictured to the left:
Paul C. Reinhardt
12
GE Value Equity Fund
Semiconductor (+1%), IBM (-2%) and Microsoft (-3%). Each of these
multinational players has been well positioned to benefit from growth in
emerging markets.
The Fund's positioning within industrials penalized performance, as we
missed commodity-cost driven rallies in the road/rail and air
freight/logistics industries. Furthermore, while Freddie Mac (-56%) and AIG
(-36%) pulled back in the credit turmoil, their negative contributions were
more than offset by the balance of the Fund's high-quality financials.
Amgen's weakness (-26%) drove the Fund's lagging performance in the health
care sector. The biotech company languished amid safety concerns regarding
its anemia drugs, and increased FDA scrutiny. However, we continued to like
both Amgen's pipeline of new products and its low stock valuation. In
consumer discretionary, disappointing results in media detracted from
relative returns (e.g., Time Warner -23% and Cablevision -19%), and
underweighting the outperforming hospitality and leisure stocks also
detracted from returns.
Q. WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND OVER THE PERIOD?
A. There were no significant changes to the Fund over the period. Our process
has remained consistent, and we continued to employ a bottom-up relative
value discipline to seek out underappreciated stocks with catalysts for
growth or improving fundamentals. The Fund remained positioned for an
economic slowdown.
We have increased technology and consumer staples as a percentage of
portfolio holdings. We believe companies in these sectors will show strong
earnings growth despite a slowing economy. The Fund also continues to
emphasize larger companies that can compete globally. Over the past six
months, many of these holdings were selling at discounts or on par with
smaller, more U.S.-centric companies. Thus, the holdings include dominant
competitors in the household products, semiconductor and software
industries. Our objective for many of our holdings is for both valuation
improvement and earnings growth to drive relative stock appreciation.
13
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE END OF THE PERIOD DURING THE PERIOD
PERIOD ($) ($) ($)*
------------------- -------------------- --------------------
ACTUAL FUND RETURN**
Class A 1,000.00 895.58 5.75
Class B 1,000.00 892.75 9.34
Class C 1,000.00 892.98 9.33
Class R 1,000.00 976.19 7.29
Class Y 1,000.00 897.88 4.37
HYPOTHETICAL 5% RETURN
(2.5% FOR THE PERIOD)
Class A 1,000.00 1,018.82 6.06
Class B 1,000.00 1,015.14 9.82
Class C 1,000.00 1,015.14 9.82
Class R 1,000.00 1,017.50 7.45
Class Y 1,000.00 1,020.25 4.60
* Expenses are equal to the Fund's annualized expense ratio of 1.20% for
Class A, 1.95% for Class B, 1.95% for Class C, 1.47% for Class R and 0.91%
for Class Y, (from period October 01, 2007 -- March 31, 2008), multiplied
by the average account value over the period, multiplied by 183/366 (to
reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: (10.44)% for Class A shares, (10.73)% for Class B shares, (10.70)%
for Class C shares, since inception of (2.38)% for Class R shares and
(10.21)% for Class Y shares.
14
GE Core Value Equity Fund
TEN LARGEST HOLDINGS AS OF MARCH 31, 2008
as a % of Market Value
Exxon Mobil Corp. 3.38%
Microsoft Corp. 3.06%
Industrial Select Sector
SPDR Fund 2.60%
Oracle Corp. 2.49%
International Business
Machines Corp. 2.48%
Procter & Gamble Co. 2.38%
PepsiCo, Inc. 2.33%
Omnicom Group, Inc. 2.26%
Kimberly-Clark Corp. 1.98%
Cisco Systems, Inc. 1.95%
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 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ------ ------
Number of
Funds in
peer group: 848 825 567 295
Peer group
average annual
total return: (12.95)% (5.54)% 10.13% 2.74%
Lipper categories in peer group: Large Cap Core
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Core Value
Equity (10.44)% (1.45)% 11.10% 4.75% 15,905
W/load (15.59)% (7.11)% 9.80% 4.13% 14,991
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Core Value
Equity (10.73)% (2.15)% 10.28% 4.14% 15,019
W/load (14.73)% (6.15)% 10.28% 4.14%
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ----- ----- --------- ----------
GE Core Value
Equity (10.70)% (2.06)% 10.30% 2.87% 12,722
W/load (11.70)% (3.06)% 10.30% 2.87%
S&P 500 Index (12.46)% (5.07)% 11.32% 2.03% 11,863
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
----- --------- ------------ ----------
GE Core Value
Equity (0.95)% (2.38)% 01/29/08 9,692
S&P 500 Index (0.43)% (3.67)% 9,633
15
GE Core Value Equity Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Core Value
Equity (10.21)% (0.88)% 11.59% 5.14% 16,500
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
16
GE CORE VALUE EQUITY FUND March 31, 2008 (unaudited)
SCHEDULE OF INVESTMENTS
GE CORE VALUE EQUITY FUND
Portfolio Composition as a % of Market Value of $47,527
(in thousands) as of March 31, 2008
[PIE CHART]
NUMBER
OF SHARES VALUE
--------- -----------
COMMON STOCK -- 94.9%
CONSUMER DISCRETIONARY -- 8.0%
Bed Bath & Beyond, Inc. ........ 5,210 $ 153,695(a)
Cablevision Systems Corp. ...... 12,505 267,982(a)
Comcast Corp. (Class A)......... 20,841 395,354
Darden Restaurants, Inc. ....... 2,293 74,637
News Corp. (Class A)............ 22,925 429,844
Omnicom Group, Inc. ............ 24,280 1,072,690
The Walt Disney Co. ............ 7,399 232,181
Time Warner, Inc. .............. 60,961 854,673
Viacom Inc. (Class B)........... 7,711 305,510(a)
3,786,566
CONSUMER STAPLES -- 14.9%
Clorox Co. ..................... 8,858 501,717
Diageo PLC ADR.................. 2,759 224,362
General Mills, Inc. ............ 14,172 848,619
Kimberly-Clark Corp. ........... 14,589 941,720
McCormick & Company, Inc. ...... 12,505 462,310
Nestle S.A. ADR................. 3,707 463,375
PepsiCo, Inc. .................. 15,318 1,105,960(h)
Procter & Gamble Co. ........... 16,152 1,131,771
Sara Lee Corp. ................. 16,673 233,089
The Coca-Cola Co. .............. 2,709 164,897
The Estee Lauder Companies
Inc. (Class A)................ 8,649 396,557
Wal-Mart Stores, Inc. .......... 11,462 603,818
7,078,195
ENERGY -- 10.1%
Apache Corp. ................... 3,126 377,683
Devon Energy Corp. ............. 2,710 282,734
Exxon Mobil Corp. .............. 18,965 1,604,060(h)
Halliburton Co. ................ 15,527 610,677
Hess Corp. ..................... 7,920 698,386
Marathon Oil Corp. ............. 4,689 213,818
Nabors Industries Ltd. ......... 6,252 211,130(a)
National Oilwell Varco, Inc. ... 1,563 91,248(a)
Suncor Energy, Inc. ............ 1,563 150,595
Transocean, Inc. ............... 4,041 546,343
4,786,674
FINANCIALS -- 12.6%
ACE Ltd. ....................... 6,878 378,703
Allstate Corp. ................. 8,736 419,852(h)
American Express Co. ........... 8,857 387,228
American International
Group, Inc. .................. 6,774 292,976(h)
AON Corp. ...................... 11,358 456,592
Bank of America Corp. .......... 8,336 316,018
Bank of New York Mellon Corp. .. 15,631 652,282
BlackRock, Inc. ................ 1,042 212,756
Chubb Corp. .................... 10,733 531,069
Citigroup, Inc. ................ 11,150 238,833
Federal Home Loan Mortgage
Corp. ........................ 13,547 343,010
JP Morgan Chase & Co. .......... 11,045 474,383
Marsh & McLennan Companies,
Inc. ......................... 7,294 177,609
Metlife, Inc. .................. 11,880 715,889
US Bancorp...................... 11,775 381,039
5,978,239
HEALTHCARE -- 11.3%
Abbott Laboratories............. 5,431 299,520
Aetna, Inc. .................... 7,294 307,004
Amgen, Inc. .................... 19,398 810,448(a)
Baxter International, Inc. ..... 6,252 361,491
Boston Scientific Corp. ........ 30,220 388,931(a)
Bristol-Myers Squibb Co. ....... 17,715 377,329
Covidien Ltd. .................. 3,830 169,477
DaVita, Inc. ................... 7,501 358,248(a)
GlaxoSmithKline PLC ADR......... 2,114 89,697
Johnson & Johnson............... 5,002 324,480
McKesson Corp. ................. 8,337 436,609
Merck & Company, Inc. .......... 5,509 209,067
Thermo Fisher Scientific,
Inc. ......................... 3,190 181,320(a)
UnitedHealth Group, Inc. ....... 7,711 264,950
Wyeth........................... 19,070 796,363
5,374,934
INDUSTRIALS -- 6.7%
ABB Ltd. ADR.................... 13,794 371,334
Cooper Industries Ltd. ......... 10,421 418,403
Deere & Co. .................... 3,855 310,096
Eaton Corp. .................... 4,273 340,430
General Dynamics Corp. ......... 9,066 755,832
ITT Corp. ...................... 6,878 356,349
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
17
GE CORE VALUE EQUITY FUND March 31, 2008 (unaudited)
SCHEDULE OF INVESTMENTS
NUMBER
OF SHARES VALUE
--------- -----------
Koninklijke Philips
Electronics N.V. ............... 4,067 $ 155,929
Rockwell Collins, Inc. ........... 1,379 78,810
Siemens AG ADR.................... 1,068 116,348
3M Co. ........................... 3,438 272,118
3,175,649
INFORMATION TECHNOLOGY -- 21.4%
Affiliated Computer
Services, Inc. (Class A)........ 6,148 308,076(a)
Analog Devices, Inc. ............. 14,225 419,922
Apple Computer, Inc. ............. 1,389 199,321(a)
Cisco Systems, Inc. .............. 38,556 928,814(a,h)
Corning Incorporated.............. 10,942 263,046
Dell, Inc. ....................... 3,880 77,290(a)
Fidelity National
Information Services,
Inc. ........................... 6,252 238,451
Hewlett-Packard Co. .............. 14,693 670,882
Intel Corp. ...................... 39,598 838,686
International Business
Machines Corp. ................. 10,254 1,180,646
Intuit Inc. ...................... 3,577 96,615(a)
Lam Research Corp. ............... 5,315 203,139(a)
Maxim Integrated Products,
Inc. ........................... 16,036 326,974
Microchip Technology Inc. ........ 5,210 170,523
Microsoft Corp. .................. 51,297 1,455,809
National Semiconductor
Corp. .......................... 15,863 290,610
Oracle Corp. ..................... 60,440 1,182,206(a)
Taiwan Semiconductor
Manufacturing Company
Ltd. ADR........................ 33,347 342,469
Texas Instruments
Incorporated.................... 18,236 515,532
Western Union Co. ................ 20,841 443,288
10,152,299
MATERIALS -- 3.7%
Alcoa, Inc. ...................... 9,274 334,420
Allegheny Technologies
Incorporated.................... 3,126 223,071
Barrick Gold Corp. ............... 14,172 615,773
Freeport-McMoRan Copper &
Gold, Inc. ..................... 3,335 320,894
Praxair, Inc. .................... 729 61,404
Vulcan Materials Co. ............. 3,335 221,444
1,777,006
TELECOMMUNICATION
SERVICES -- 2.2%
AT&T, Inc. ....................... 6,565 251,439
Verizon Communications,
Inc. ........................... 16,465 600,149(h)
Vodafone Group, PLC ADR........... 6,252 184,497
1,036,085
UTILITIES -- 4.0%
American Electric Power
Company, Inc. .................. 5,523 229,922
Constellation Energy Group,
Inc. ........................... 2,293 202,403
Dominion Resources, Inc. ......... 20,529 838,404
Edison International.............. 7,294 357,552
Entergy Corp. .................... 2,918 318,295
1,946,576
TOTAL COMMON STOCK
(COST $45,752,793).............. 45,092,223
EXCHANGE TRADED FUNDS -- 3.2%
Financial Select Sector SPDR
Fund............................ 12,162 302,469(o)
Industrial Select Sector
SPDR Fund....................... 33,068 1,236,743(h,o)
TOTAL EXCHANGE TRADED FUNDS
(COST $1,452,117)............... 1,539,212
OTHER INVESTMENTS -- 0.1%
GEI Investment Fund
(COST $27,091).................. 21,131(k)
TOTAL INVESTMENTS IN
SECURITIES
(COST $47,232,001).............. 46,652,566
SHORT-TERM INVESTMENTS -- 1.8%
GE Money Market Fund
Institutional Class
2.08%
(COST $874,368)................. 874,368(d,p)
TOTAL INVESTMENTS
(COST $48,106,369).............. 47,526,934
LIABILITIES IN EXCESS OF
OTHER ASSETS,
NET -- 0.0%*.................... 119
-----------
NET ASSETS -- 100.0%.............. $47,527,053
===========
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
18
GE CORE VALUE EQUITY FUND March 31, 2008 (unaudited)
SCHEDULE OF INVESTMENTS
OTHER INFORMATION
The GE Core Value Equity Fund had the following long futures contracts open at
March 31, 2008 (unaudited);
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
- ----------- ---------- --------- -------- ------------
S&P 500 Index
Futures June 2008 1 $331,000 $3,750
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
19
[Q&A LOGO]
GE Samll Cap Equity Fund
GE Small-Cap Equity Fund is managed by Jack Feiler, Jeffrey Schwartz and
Dennison T. "Dan" Veru, members of the Palisade Capital Management, LLC
("Palisade") Investment Policy Committee.
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
portfolios it sub-advises for GE Asset Management. Palisade has managed the
Small-Cap Equity Fund since its inception. See portfolio managers' biographical
information beginning on page 148.
Q. HOW DID THE GE SMALL-CAP EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2008?
A. For the six-month period ended March 31, 2008, the GE Small-Cap Equity Fund
returned -12.47% for the Class A shares, -12.80% for the Class B shares,
-12.80% for the Class C shares, -1.47% for the Class R shares and -12.35%
for the Class Y shares. The Russell 2000 Index, the Fund's benchmark,
returned -14.03% and the Fund's Lipper peer group of 832 Small-Cap Core
Funds returned an average of -14.93% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. During the past six-month period, stocks declined significantly amid a
subprime-induced credit crisis, sharply declining home values, and
increasing evidence of a domestic economy heading for recession. The
decline in stocks occurred despite aggressive Fed easing as a confidence
crisis took hold and credit markets ground to a virtual halt, culminating
in the collapse of brokerage giant Bear Stearns.
Energy was the only sector in the Russell 2000 that posted a gain for the
period. All other sectors registered losses with the worst performers being
Telecom (-25%), Technology (-22%), and Consumer Discretionary (-22%).
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A. The main source of the Fund's strong performance relative to the market
came from strong stock selection in the Consumer Discretionary sector. The
standout performers were Aeropostale (+42%) and LKQ Corp. (+29%). While
much of the retail industry experienced weak sales results, Aeropostale
continued to post better than expected sales and earnings. In the fourth
quarter of 2007, Aeropostale grew sales by 17% and saw a 38% increase in
earnings per share. LKQ continues to benefit from an improved market
position as the nationwide leader in aftermarket collision products and
recycled OEM collision parts. Several recent acquisitions have enabled the
company to expand margins and gain market share.
The Fund was hindered by weak results in the Healthcare sector. Healthways
(-41%) and Molina Healthcare (-33%) were the largest detractors from
results. Molina declined over concerns about Medicaid reimbursements, while
Healthways was under pressure from concerns about future growth prospects.
Both stocks were hampered by industry-specific issues in managed care.
Q. WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND DURING THE PERIOD?
A. There were no significant changes to the Fund during the most recent six-
month period. We slightly reduced our Consumer Discretionary allocation,
while increasing our Technology holdings. The Fund's Healthcare holdings
also increased as we are finding more opportunities in the sector based on
favorable valuations.
Although the market may appear to be bottoming, we are cautiously
optimistic and believe the process of rebuilding confidence will take time.
We take a bottom-up approach and look for companies with modest valuations
that are capable of growing earnings regardless of the economic
environment. Stocks that are candidates for our portfolio demonstrate
20
GE Small-Cap Equity Fund
characteristics such as increasing net income, improving free cash flow,
and increasing return on invested capital. As a result of our quality
focus, we believe the portfolio is well positioned for periods where
economic activity slows and earnings growth becomes more challenging.
21
GE Small-Cap 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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE END OF THE PERIOD DURING THE PERIOD
PERIOD ($) ($) ($)*
-------------------- -------------------- --------------------
ACTUAL FUND RETURN**
Class A 1,000.00 875.33 6.25
Class B 1,000.00 872.02 9.76
Class C 1,000.00 872.10 9.76
Class R 1,000.00 985.32 7.88
Class Y 1,000.00 876.47 5.08
HYPOTHETICAL 5% RETURN
(2.5% FOR THE PERIOD)
Class A 1,000.00 1,018.18 6.71
Class B 1,000.00 1,014.49 10.48
Class C 1,000.00 1,014.49 10.48
Class R 1,000.00 1,016.96 8.01
Class Y 1,000.00 1,019.41 5.45
* Expenses are equal to the Fund's annualized expense ratio of 1.33% for
Class A, 2.08% for Class B, 2.08% for Class C, 1.58% for Class R, and 1.08%
for Class Y (from period October 01, 2007 -- March 31, 2008), multiplied by
the average account value over the period, multiplied by 183/366 (to
reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: (12.47)% for Class A shares, (12.80)% for Class B shares, (12.80)%
for Class C shares, since inception of (1.47)% for Class R shares and
(12.35)% for Class Y shares.
22
GE Small-Cap Equity Fund
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2008
as a % of Market Value
DRS Technologies, Inc. 3.28%
Central European
Distribution Corp. 3.24%
Harsco Corp. 2.90%
Varian, Inc. 2.74%
Interactive Data Corp. 2.72%
Teledyne Technologies
Inc. 2.70%
Oil States International,
Inc. 2.67%
Omega Healthcare
Investors, Inc. (REIT) 2.54%
Commercial Metals Co. 2.54%
Arbitron, Inc. 2.51%
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 3/31/08
SIX ONE FIVE
MONTHS YEAR YEAR
------ ------ ------
Number of
Funds in
peer group: 832 795 485
Peer group
average annual
total return: (14.98)% (13.30)% 14.26%
Lipper categories in peer group: Small Cap Core
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ------ ----- --------- ----------
GE Small-Cap
Equity (12.47)% (9.38)% 12.73% 10.86% 26,631
W/load (17.50)% (14.59)% 11.41% 10.16% 25,099
Russell 2000
Index (14.03)% (12.99)% 14.88% 8.32% 21,360
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ------ ----- --------- ----------
GE Small-Cap
Equity (12.80)% (10.00)% 11.90% 10.33% 25,452
W/load (16.80)% (14.00)% 11.90% 10.33%
Russell 2000
Index (14.03)% (12.99)% 14.88% 8.32% 21,360
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ------ ----- --------- ----------
GE Small-Cap
Equity (12.80)% (10.05)% 11.90% 8.77% 20,431
W/load (13.80)% (11.05)% 11.90% 8.77%
Russell 2000
Index (14.03)% (12.99)% 14.88% 7.13% 17,952
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
----- --------- ------------ ----------
GE Small-Cap
Equity (0.44)% (1.47)% 01/29/08 9,719
Russell 2000
Index 0.42% (3.30)% 9,670
23
GE Small-Cap Equity Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ------ ----- --------- ----------
GE Small-Cap
Equity (12.35)% (9.10)% 13.03% 11.14% 27,282
Russell 2000
Index (14.03)% (12.99)% 14.88% 8.32% 21,360
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
24
GE SMALL-CAP EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
GE SMALL-CAP EQUITY FUND
Portfolio Composition as a % of Market Value of $62,223
(in thousands) as of March 31, 2008
[PIE CHART]
NUMBER
OF SHARES VALUE
----------- -----------
COMMON STOCK -- 100.1%
CONSUMER DISCRETIONARY -- 14.2%
Aaron Rents, Inc. ............................... 49,500 $ 1,066,230
Aeropostale, Inc. ............................... 55,400 1,501,894(a)
American Eagle Outfitters, Inc. ................. 13,800 241,638(h)
Arbitron, Inc. .................................. 36,200 1,562,392
CBRL Group, Inc. ................................ 15,800 565,166
Interactive Data Corp. .......................... 59,400 1,691,118
Jarden Corp. .................................... 29,300 636,982(a)
LKQ Corp. ....................................... 51,400 1,154,958(a)
Triarc Companies, Inc. ..........................
(Class B) (Series 1) .......................... 57,400 396,634
8,817,012
CONSUMER STAPLES -- 4.8%
Central European Distribution Corp. ............. 34,700 2,019,193(a)
Smithfield Foods, Inc. .......................... 37,000 953,120(a)
2,972,313
ENERGY -- 6.4%
Dril-Quip Inc. .................................. 25,200 1,171,044(a)
NATCO Group, Inc. (Class A) ..................... 13,200 617,100(a)
Oil States International, Inc. .................. 37,100 1,662,451(a)
St. Mary Land & Exploration Co. ................. 14,200 546,700
3,997,295
FINANCIALS -- 18.5%
BioMed Realty Trust, Inc. (REIT) ................ 62,700 1,497,903
Cullen/Frost Bankers, Inc. ...................... 10,800 572,832
DCT Industrial Trust, Inc. (REIT) ............... 58,900 586,644
Deerfield Capital Corp. (REIT) .................. 6,086 8,581
Digital Realty Trust, Inc. (REIT) ............... 2,400 85,200
Federal Realty Investment Trust (REIT) .......... 7,900 615,805
GFI Group, Inc. ................................. 16,800 962,640(a)
Global Cash Access Holdings, Inc. ............... 79,400 465,284(a)
HCC Insurance Holdings, Inc. .................... 52,600 1,193,494
Hilb Rogal & Hobbs Co. .......................... 39,700 1,249,359
Jones Lang LaSalle Inc. ......................... 5,800 448,572
Omega Healthcare Investors, Inc. (REIT) ......... 91,200 1,583,232
Raymond James Financial, Inc. ................... 51,300 1,178,874
Sandy Spring Bancorp, Inc. ...................... 10,500 288,960
Sterling Bancorp ................................ 14,800 229,844
Westamerica Bancorporation ...................... 9,600 504,960
11,472,184
HEALTHCARE -- 13.6%
AMN Healthcare Services, Inc. ................... 34,900 538,158(a)
Computer Programs and Systems, Inc. ............. 26,100 545,490
Cubist Pharmaceuticals, Inc. .................... 18,300 337,086(a)
Healthways, Inc. ................................ 23,400 826,956(a)
HMS Holdings Corp. .............................. 16,600 473,930(a)
inVentiv Health, Inc. ........................... 26,500 763,465(a)
KV Pharmaceutical Co. (Class A) ................. 47,600 1,188,096(a)
Medical Action Industries Inc. .................. 57,200 939,796(a)
Molina Healthcare, Inc. ......................... 34,400 840,048(a)
Thoratec Corp. .................................. 22,300 318,667(a)
Varian, Inc. .................................... 29,400 1,702,848(a)
8,474,540
INDUSTRIALS -- 25.5%
Applied Industrial Technologies, Inc. ........... 22,000 657,580
Baldor Electric Co. ............................. 24,700 691,600
Comfort Systems USA, Inc. ....................... 33,600 437,136
DRS Technologies, Inc. .......................... 35,000 2,039,800
Genesee & Wyoming Inc. (Class A) ................ 40,700 1,400,080(a)
Harsco Corp. .................................... 32,600 1,805,388
Healthcare Services Group ....................... 17,200 355,008
Herman Miller Inc. .............................. 34,900 857,493
Mueller Industries, Inc. ........................ 38,000 1,096,300
NCI Building Systems, Inc. ...................... 10,800 261,360(a)
Old Dominion Freight Line, Inc. ................. 27,000 859,410(a)
Oshkosh Corp. ................................... 32,300 1,171,844
Quanta Services, Inc. ........................... 45,800 1,061,186(a)
Teledyne Technologies Inc. ...................... 35,700 1,677,900(a)
Universal Technical Institute, Inc. ............. 4,600 53,958(a)
Woodward Governor Co. ........................... 53,700 1,434,864
15,860,907
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
25
GE SMALL-CAP EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
---------- ------------
INFORMATION TECHNOLOGY -- 10.7%
ACI Worldwide, Inc. ........................... 19,000 $ 378,480(a)
BigBand Networks, Inc. ........................ 16,600 95,118(a)
Blackbaud, Inc. ............................... 45,400 1,102,312
CommScope, Inc. ............................... 24,200 842,886(a)
Micros Systems, Inc. .......................... 36,800 1,238,688(a)
Microsemi Corp. ............................... 8,800 200,640(a)
Parametric Technology Corp. ................... 55,600 888,488(a)
Rudolph Technologies, Inc. .................... 46,700 456,259(a)
Semtech Corp. ................................. 49,200 705,036(a)
SRA International, Inc. (Class A) ............. 5,300 128,843(a)
Varian Semiconductor Equipment Associates, Inc. 3,900 109,785(a)
Zebra Technologies Corp. (Class A) ............ 15,000 499,800(a)
6,646,335
MATERIALS -- 4.6%
Commercial Metals Co. ......................... 52,800 1,582,416(h)
Packaging Corporation of America .............. 46,500 1,038,345
Pioneer Drilling Co. .......................... 13,700 218,241(a)
2,839,002
UTILITIES -- 1.8%
IDACORP, Inc. ................................. 35,100 $ 1,127,061
TOTAL COMMON STOCK
(COST $59,617,583) .......................... 62,206,649
OTHER INVESTMENTS -- 0.0%*
GEI Investment Fund
(COST $19,536) .............................. 15,238(k)
TOTAL INVESTMENTS IN SECURITIES
(COST $59,637,119) .......................... 62,221,887
SHORT-TERM INVESTMENTS -- 0.0%*
GE Money Market Fund
Institutional Class 2.08%
(COST $1,000) ............................... 1,000(d,p)
TOTAL INVESTMENTS
(COST $59,638,119) .......................... 62,222,887
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (0.1)% ............................... (81,561)
------------
NET ASSETS -- 100.0% .......................... $ 62,141,326
============
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
26
GE Global Equity Fund
The GE Global Equity Fund is co-managed by Robert A. Jasminski and Daizo
Motoyoshi. Messrs. Jasminski and Motoyoshi each independently manage
approximately one-half of the portfolio; however, they operate as a
collaborative team and inform each other of trades. Mr. Motoyoshi has oversight
authority over Mr. Jasminski's portion of the portfolio. See portfolio managers'
biographical information beginning on page 148.
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, 2008?
A. For the six-month period ended March 31, 2008, the GE Global Equity Fund
returned -8.55% for the Class A shares, -8.94% for the Class B shares,
-8.93% for the Class C shares, -0.08% for the Class R shares and -8.47% for
the Class Y shares. The MSCI World Index, the Fund's benchmark, returned
-11.25% and the Fund's Lipper peer group of 106 Global Large-Cap Core Funds
returned an average of -11.37% for the same period.
Q. WHAT WORLD EVENTS HAD A MAJOR IMPACT ON FINANCIAL MARKETS?
A. The credit crunch and the decline in US housing prices have had a
significant influence on the financial markets over the past six months.
The increased concerns that a US recession will cause a slow down in global
GDP growth have also weighed on the world equity markets.
Q. WHAT STOCKS AND SECTORS SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE?
A. The largest contribution to Fund performance came from the material and
healthcare sectors. The top performers included Monsanto (US, agricultural
commodity), Potash (Canada, agricultural commodity), and Transocean (US,
Energy). On the negative side, the industrial sector had a negative impact
on performance. Ibiden (Japan) and Sandvik (Sweden) were the largest
individual negative contributors.
Q. DID THE WEIGHTINGS/COUNTRY ALLOCATION OF THE FUND CHANGE? WHY?
A. The two key changes were in the financial sector and the US allocation. At
the beginning of the period the Fund was significantly underweight in both
financials and the US market. The weaker dollar and the credit/housing
concerns caused both segments to underperform the broader market. As the
period progressed, valuations began to look more attractive as the market
priced in the negative impact. The Fund has selectively added to
compellingly valued names in both the financial sector as well as in the US
market. However, the Fund still remains marginally underweight in both
segments.
Q. WHAT WERE THE MAJOR BUYS AND SELLS FOR THE PERIOD AND WHY?
A. A few key buys during the period were JP Morgan (US, Financial) and Wal-
Mart (US, Retail). JP Morgan was added to the Fund based on the attractive
valuation and solid financial condition. In addition, the acquisition of
Bear Sterns was accomplished at a very reasonable price. A position in Wal-
Mart was established based on their dominant position in the economic
retail segment. The company is poised to benefit as consumers look to
receive more value for their dollar. A key sell during the period was
Sandvik (Sweden, Industrial). After a multi year cycle of robust growth and
record margins, the growth has begun to decelerate in many of Sandvik's end
markets.
[PHOTO OF ROBERT A. JAMINSKI & DAIZO MOTOYOSHI]
Pictured from left to right:
Robert A. Jaminski and Daizo Motoyoshi
27
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE END OF THE PERIOD DURING THE PERIOD
PERIOD ($) ($) ($)*
-------------------- -------------------- --------------------
ACTUAL FUND RETURN**
Class A 1,000.00 914.51 6.90
Class B 1,000.00 910.55 10.57
Class C 1,000.00 910.66 10.53
Class R 1,000.00 999.23 8.34
Class Y 1,000.00 915.25 5.69
HYPOTHETICAL 5% RETURN
(2.5% FOR THE PERIOD)
Class A 1,000.00 1,017.74 7.16
Class B 1,000.00 1,014.00 10.98
Class C 1,000.00 1,014.05 10.93
Class R 1,000.00 1,016.56 8.41
Class Y 1,000.00 1,018.97 5.91
* Expenses are equal to the Fund's annualized expense ratio of 1.42% for
Class A, 2.18% for Class B, 2.17% for Class C, 1.66% for Class R, and 1.17%
for Class Y (from period October 01, 2007 - March 31, 2008), multiplied by
the average account value over the period, multiplied by 183/366 (to
reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: (8.55)% for Class A shares, (8.94)% for Class B shares, (8.93)%
for Class C shares, since inception of (0.08)% for Class R shares and
(8.47)% for Class Y shares.
28
GE Global Equity Fund
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2008
as a % of Market Value
Monsanto Co. 2.70%
Roche Holding AG 2.19%
Transocean, Inc. 2.17%
Nestle S.A. (Regd.) 1.92%
Potash Corporation of
Saskatchewan 1.85%
Schlumberger Ltd. 1.84%
Occidental Petroleum
Corp. 1.68%
Koninklijke Philips
Electronics N.V. 1.68%
Corning Incorporated 1.65%
BHP Billiton PLC 1.63%
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
Based on average annual total returns for the periods ended 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ------ ------
Number of
Funds in
peer group: 109 107 59 30
Peer group
average annual
total return: (11.22)% (0.35)% 15.86% 4.85%
Lipper categories in peer group: Global Funds
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Global Equity (8.55)% 5.61% 17.37% 5.54% 17,152
W/load (13.81)% (0.47)% 15.99% 4.92% 16,166
MSCIW Index (11.25)% (3.24)% 15.95% 4.57% 15,635
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Global Equity (8.94)% 4.77% 16.50% 5.08% 16,415
W/load (12.94)% 0.77% 16.50% 5.08%
MSCIW Index (11.25)% (3.24)% 15.95% 4.57% 15,635
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ----- ----- --------- ----------
GE Global Equity (8.93)% 4.77% 16.47% 4.38% 14,402
W/load (9.93)% 3.77% 16.47% 4.38%
MSCIW Index (11.25)% (3.24)% 15.95% 3.55% 13,448
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
----- --------- ------------ ----------
GE Global Equity (1.55)% (0.08)% 1/29/08 9,924
MSCIW Index (0.96)% (1.53)% 9,847
29
GE Global Equity Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Global Equity (8.47)% 5.84% 17.66% 5.81% 17,589
MSCIW Index (11.25)% (3.24)% 15.95% 4.57% 15,635
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
30
GE GLOBAL EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
GE GLOBAL EQUITY FUND
Portfolio Composition as a % of Market Value of $70,679
(in thousands) as of March 31, 2008
[PIE CHART]
NUMBER
OF SHARES VALUE
--------- ----------
COMMON STOCK -- 93.8%
AUSTRALIA -- 1.4%
Brambles Ltd. ................................ 81,924 $ 746,348
Paladin Energy Ltd. .......................... 56,859 264,190(a)
1,010,538
BRAZIL -- 0.7%
Petroleo Brasileiro S.A. ADR ................. 5,728 485,104
CANADA -- 4.0%
CAE, Inc. .................................... 51,217 580,531
Potash Corporation of Saskatchewan ........... 8,407 1,304,850
Suncor Energy, Inc. .......................... 3,883 374,127
Suncor Energy, Inc. .......................... 5,736 554,621
2,814,129
CHINA -- 1.0%
China Communications Construction Company Ltd. 232,000 514,506
China COSCO Holdings Company Ltd. ............ 63,464 154,117
668,623
EGYPT -- 0.7%
Orascom Construction Industries .............. 3,964 298,305
Orascom Construction Industries GDR .......... 923 138,219
Orascom Construction Industries GDR .......... 243 36,389(b)
472,913
FINLAND -- 1.2%
Nokia Oyj .................................... 26,025 826,408
FRANCE -- 3.5%
BNP Paribas .................................. 2,354 238,312
Groupe Danone ................................ 10,299 924,324
Unibail-Rodamco (REIT) ....................... 1,246 321,839
Veolia Environnement ......................... 8,800 615,769
Vinci S.A .................................... 4,456 323,312
2,423,556
GERMANY -- 4.3%
Bayer AG ..................................... 12,798 1,029,366
E.ON AG ...................................... 3,528 655,518
Gerresheimer AG .............................. 13,506 682,048(a)
Linde AG ..................................... 4,546 644,629
3,011,561
GREECE -- 0.7%
Hellenic Telecommunications Organization S.A . 17,574 500,687
HONG KONG -- 1.2%
China Travel International Inv ............... 788,000 317,919
Esprit Holdings Ltd. ......................... 46,000 552,330
870,249
INDIA -- 1.1%
ITC Ltd. ..................................... 127,465 648,762
IVRCL Infrastructures & Projects Ltd. ........ 15,523 154,011
802,773
ITALY -- 3.7%
Banca Intesa S.p.A ........................... 92,568 654,920
Saipem S.p.A ................................. 22,107 898,160
UniCredit S.p.A .............................. 157,442 1,057,773
2,610,853
JAPAN -- 9.9%
East Japan Railway Co. ....................... 31 258,190
Ibiden Company Ltd. .......................... 13,600 535,611
Japan Steel Works Ltd. ....................... 19,000 324,318
Japan Tobacco, Inc. .......................... 129 646,717
Jupiter Telecommunications Company Ltd. ...... 1,192 1,116,134(a)
Mitsubishi Estate Company Ltd. ............... 45,000 1,094,087
Mitsubishi UFJ Financial Group, Inc. ......... 79,255 684,777
Nintendo Company Ltd. ........................ 1,400 722,962
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
31
GE GLOBAL EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- ----------
Nomura Holdings, Inc. ............................. 54,700 $ 818,838
Toyota Motor Corp. ................................ 15,400 768,956
6,970,590
MALAYSIA -- 0.2%
IOI Corp. ......................................... 78,200 173,588
MEXICO -- 0.7%
America Movil S.A. de C.V. ADR (Series L) ......... 8,005 509,838
NETHERLANDS -- 1.7%
Koninklijke Philips Electronics N.V ............... 30,902 1,186,440
NORWAY -- 1.5%
Telenor ASA ....................................... 55,610 1,066,950
RUSSIA -- 1.9%
Gazprom OAO ADR ................................... 11,315 577,065
MMC Norilsk Nickel ADR ............................ 27,590 776,659
1,353,724
SINGAPORE -- 1.3%
CapitaLand Ltd. ................................... 131,073 603,935
Singapore Telecommunications Ltd. ................. 106,000 300,736
904,671
SOUTH AFRICA -- 0.4%
MTN Group Limited ................................. 17,009 257,442
SPAIN -- 0.9%
Acciona S.A ....................................... 693 186,292
Banco Santander S.A. (Regd.) ...................... 20,832 416,578
602,870
SWITZERLAND -- 5.1%
Nestle S.A. (Regd.) ............................... 2,701 1,355,211
Roche Holding AG .................................. 8,200 1,549,547
Swatch Group AG ................................... 2,436 653,918
3,558,676
TAIWAN -- 0.9%
Taiwan Semiconductor Manufacturing Company
Ltd. ADR ........................................ 60,992 626,388
UNITED KINGDOM -- 8.1%
Aegis Group PLC ................................... 222,220 548,765
BG Group PLC ...................................... 11,238 260,655
BHP Billiton PLC .................................. 38,767 1,151,888
Cadbury Schweppes PLC ............................. 68,660 755,315
Diageo PLC ........................................ 43,378 875,927
Prudential PLC .................................... 45,294 599,095
Royal Bank of Scotland Group PLC .................. 87,606 587,209
Tesco PLC ......................................... 58,818 443,054
Vodafone Group, PLC ADR ........................... 17,087 504,237
5,726,145
UNITED STATES -- 37.7%
Alberto-Culver Co. ................................ 9,646 264,397
Allegheny Technologies Incorporated ............... 5,618 400,900
Alliant Techsystems, Inc. ......................... 1,691 175,069(a)
Amazon.Com, Inc. .................................. 2,698 192,367(a)
American International Group, Inc. ................ 12,071 522,071
American Tower Corp. (Class A) .................... 21,911 859,130(a)
Amgen, Inc. ....................................... 13,941 582,455(a)
Bed Bath & Beyond, Inc. ........................... 7,352 216,884(a)
Charles Schwab Corp. .............................. 24,548 462,239
Cisco Systems, Inc. ............................... 24,551 591,434(a)
Citigroup, Inc. ................................... 26,135 559,812
CME Group Inc. .................................... 814 381,847
Comcast Corp. (Class A) ........................... 10,733 203,605
Corning Incorporated .............................. 48,468 1,165,171
Covidien Ltd. ..................................... 11,856 524,628
Ecolab Inc. ....................................... 5,941 258,018
Emerson Electric Co. .............................. 16,934 871,424
FPL Group, Inc. ................................... 6,347 398,211
Goldman Sachs Group, Inc. ......................... 1,240 205,084
Intel Corp. ....................................... 23,576 499,340
Intuit Inc. ....................................... 18,414 497,362(a)
ITT Corp. ......................................... 10,127 524,680
JP Morgan Chase & Co. ............................. 25,462 1,093,593
Kimberly-Clark Corp. .............................. 13,928 899,052
McCormick & Company, Inc. ......................... 19,865 734,409
Monsanto Co. ...................................... 17,140 1,911,110(h)
Occidental Petroleum Corp. ........................ 16,260 1,189,744
Oracle Corp. ...................................... 34,081 666,624(a,h)
Paychex, Inc. ..................................... 18,920 648,199
Praxair, Inc. ..................................... 12,959 1,091,536
QUALCOMM, Inc. .................................... 14,949 612,909
Quanta Services, Inc. ............................. 9,498 220,069(a)
Schlumberger Ltd. ................................. 14,976 1,302,912
State Street Corp. ................................ 6,603 521,637(e)
Textron, Inc. ..................................... 6,104 338,284
Transocean, Inc. .................................. 11,363 1,536,278
United Technologies Corp. ......................... 15,717 1,081,644
Verizon Communications, Inc. ...................... 6,866 250,266
Wachovia Corp. .................................... 21,194 572,238
Wal-Mart Stores, Inc. ............................. 6,723 354,168
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
32
GE GLOBAL EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- ------------
Yahoo! Inc. ........................................ 31,894 $ 922,693(a)
Yum! Brands, Inc. .................................. 4,753 176,859
26,480,352
TOTAL COMMON STOCK
(COST $57,595,707) ............................... 65,915,068
PREFERRED STOCK -- 3.5%
All America Latina Logistica S.A ................... 48,100 486,915
Cia Vale do Rio Doce ADR ........................... 21,882 637,860(h)
Fresenius SE ....................................... 11,220 937,824
NET Servicos de Comunicacao S.A .................... 37,804 405,390(a)
TOTAL PREFERRED STOCK
(COST $2,306,558) ................................ 2,467,989
EXCHANGE TRADED FUNDS -- 1.3%
Financial Select Sector SPDR Fund .................. 5,841 145,266(o)
Industrial Select Sector SPDR Fund ................. 19,637 734,424(h,o)
TOTAL EXCHANGE TRADED FUNDS
(COST $706,090) .................................. 879,690
OTHER INVESTMENTS -- 0.1%
GEI Investment Fund
(COST $61,254) ................................... 47,778(k)
TOTAL INVESTMENTS IN SECURITIES
(COST $60,669,609) ............................... 69,310,525
SHORT-TERM INVESTMENTS -- 1.9%
SHORT-TERM INVESTMENTS -- 1.9%
GE Money Market Fund Institutional Class 2.08%
(COST $1,368,535) ................................ 1,368,535(d,p)
TOTAL INVESTMENTS
(COST $62,038,144) ............................... 70,679,060
LIABILITIES IN EXCESS OF OTHER ASSETS, NET -- (0.5)% (381,161)
------------
NET ASSETS -- 100.0% ............................... $ 70,297,899
============
The GE Global Equity Fund was invested in the following sectors at March 31,
2008 (unaudited):
PERCENTAGE (BASED
SECTOR ON MARKET VALUE)
- ------ -----------------
Financials 16.33%
Materials 13.03%
Information Technology 11.76%
Industrials 11.53%
Consumer Staples 11.42%
Energy 10.53%
Consumer Discretionary 8.97%
Healthcare 6.05%
Telecommunication Services 6.01%
Utilities 2.36%
Short-Term 1.94%
Other Investment 0.07%
------
100.00%
======
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
33
[Q&A LOGO]
GE International Equity Fund
The GE International Equity Fund is managed by a team of portfolio managers that
includes Brian Hopkinson, Ralph R. Layman, Paul Nestro, Jonathan L. Passmore,
Michael J. Solecki and Makoto Sumino. As lead portfolio manager for the Fund,
Mr. Layman oversees the entire team and assigns a portion of the Fund to each
manager, including himself. Each portfolio manager is limited to the management
of his or her portion of the Fund, the size of which portions Mr. Layman
determines on an annual basis. The portfolio managers do not operate
independently of each other, rather, the team operates collaboratively,
communicating purchases or sales of securities on behalf of the Fund. See
portfolio managers' biographical information beginning on page 148.
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, 2008?
A. For the six-month-period ended March 31, 2008, the GE International Equity
Fund returned -6.50% for the Class A shares, -6.80% for the Class B shares,
-6.80% for the Class C shares, 1.02% for the Class R shares and -6.36% for
the Class Y shares. The MSCI EAFE Index, the Fund's benchmark, returned
-10.49% and the Fund's Lipper peer group of 218 International Large-Cap
Core Funds returned an average of -10.67% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. Disarray in the credit markets and growing concern that the US and global
economies would be adversely affected by reduced availability of credit for
consumers and businesses and rising prices across most commodities and
services.
Q. WHAT DOMESTIC OR WORLD EVENTS HAD A MAJOR IMPACT ON THE FINANCIAL MARKETS?
A. Years of profligate lending and inadequate risk consideration had resulted
in an explosion of volume in various derivative markets. A basic lack of
capital backing the massive expansion of credit, inevitably led to an
equally rapid contraction of liquidity in the system.
Q. WHICH STOCKS AND SECTORS SIGNIFICANTLY AFFECTED FUND PERFORMANCE?
A. Holdings in the materials, energy, industrial and telecom services sectors
all made strong contributions. Specifically, holdings in metals and mining
and agricultural chemicals attempting to satisfy massive global demand;
rising energy costs spurred interest in owners of oil and gas assets
especially where reserve replacement ratios were high. Stocks with
defensive characteristics in foods and healthcare also did well in an
increasingly challenging economic environment.
Q. DID THE WEIGHTINGS/COUNTRY ALLOCATION OF THE FUND CHANGE? WHY?
A. In the early part of the period, the Fund's weighting in financial stocks
was further reduced as the full extent of the credit crisis became clearer.
However, this posture was partially reversed toward the end of the period
after a massive downgrading of financial stock prices. Cash was generally
at a higher level throughout the period due to uncertainty about current
and future prospects at the company level.
Q. WHAT WERE THE MAJOR BUYS AND SELLS FOR THE PERIOD, AND WHY?
A. Underperforming financial holdings such as ING Groep were
[PHOTO OF RALPH R. LAYMAN]
Pictured to the right: Ralph R. Layman
34
GE International Equity Fund
sold early in the period, but banks and insurance holdings with improving
prospects such as BNP Paribas, Royal Bank of Scotland and Sony Financial
Holdings were bought back later. Suncor, a Canadian oil sands play was
bought for its long duration assets and Essilor, a French ophthalmic
company was added for its outstanding market share and margin performance.
Reed, a European media company was sold in conjunction of the company's
disposal of key assets that limited future growth.
35
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds. Please note that the expenses shown in the table do not
reflect any transaction costs, such as sales charges or redemption fees.
OCTOBER 1, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE END OF THE PERIOD DURING THE PERIOD
PERIOD ($) ($) ($)*
-------------------- -------------------- --------------------
ACTUAL FUND RETURN**
Class A 1,000.00 934.97 7.25
Class B 1,000.00 931.98 10.93
Class C 1,000.00 932.00 10.93
Class R 1,000.00 1,010.18 8.99
Class Y 1,000.00 936.37 6.02
HYPOTHETICAL 5% RETURN
(2.5% FOR THE PERIOD)
Class A 1,000.00 1,017.50 7.41
Class B 1,000.00 1,013.80 11.18
Class C 1,000.00 1,013.80 11.18
Class R 1,000.00 1,015.97 9.01
Class Y 1,000.00 1,018.72 6.16
* 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, 1.78% for Class R, and 1.22%
for Class Y (from period October 01, 2007 -- March 31, 2008), multiplied by
the average account value over the period, multiplied by 183/366 (to
reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: (6.50)% for Class A shares, (6.80)% for Class B shares, (6.80)%
for Class C shares, since inception 1.02% for Class R shares and of (6.36)%
for Class Y shares.
36
GE International Equity Fund
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2008
as a % of Market Value
Nestle S.A. (Regd.) 3.22%
Roche Holding AG 3.18%
Telenor ASA 2.43%
Saipem S.p.A. 2.31%
BHP Billiton PLC 2.27%
Cia Vale do Rio Doce ADR 2.18%
Groupe Danone 2.18%
Nokia Oyj 2.15%
Vodafone Group Public
Limited Co. 2.04%
Koninklijke Philips
Electronics N.V. 1.99%
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 Large-Cap Core
Based on average annual total returns for the periods ended 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ------ ------
Number of
Funds in
peer group: 218 206 168 92
Peer group
average annual
total return: (10.67)% (1.34)% 19.35% 5.22%
Lipper categories in peer group: International Funds
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE International
Equity (6.50)% 9.50% 22.59% 4.98% 16,261
W/load (11.88)% 3.20% 21.15% 4.36% 15,326
MSCI EAFE Index (10.49)% (2.68)% 21.40% 6.16% 18,185
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE International
Equity (6.80)% 8.69% 21.62% 4.47% 15,484
W/load (9.80)% 5.69% 21.62% 4.47%
MSCI EAFE Index (10.49)% (2.68)% 21.40% 6.16% 18,185
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ----- ----- --------- ----------
GE International
Equity (6.80)% 8.74% 21.63% 4.60% 14,658
W/load (7.80)% 7.74% 21.63% 4.60%
MSCI EAFE Index (10.49)% (2.68)% 21.40% 5.70% 16,018
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
----- --------- ------------ ----------
GE International
Equity (0.95)% 1.02% 01/29/08 10,019
MSCI EAFE Index (1.05)% 0.37% 10,037
37
GE International Equity Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE International
Equity (6.36)% 9.76% 22.85% 5.24% 16,661
MSCI EAFE Index (10.49)% (2.68)% 21.40% 6.16% 18,185
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
38
GE INTERNATIONAL EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
GE INTERNATIONAL EQUITY FUND
Portfolio Composition as a % of Market Value of $76,084
(in thousands) as of March 31, 2008
[PIE CHART]
NUMBER
OF SHARES VALUE
--------- -----------
COMMON STOCK -- 95.5%
AUSTRALIA -- 0.9%
Brambles Ltd. .................................. 33,018 $ 300,802
Paladin Energy Ltd. ............................ 89,892 417,675(a)
718,477
BRAZIL -- 1.2%
Petroleo Brasileiro S.A. ADR ................... 10,929 925,577
CANADA -- 3.0%
Cameco Corp. ................................... 5,593 184,462
Canadian National Railway Co. .................. 8,447 409,734
Potash Corporation of Saskatchewan ............. 8,943 1,390,283
Suncor Energy, Inc. ............................ 3,227 312,022
2,296,501
CHINA -- 0.3%
China COSCO Holdings Company Ltd. .............. 106,500 258,626
DENMARK -- 1.3%
Group 4 Securicor PLC .......................... 75,969 340,599
Novozymes (Series B) ........................... 6,969 654,512
995,111
EGYPT -- 0.6%
Orascom Construction Industries ................ 6,029 453,703
FINLAND -- 2.1%
Nokia Oyj ...................................... 51,581 1,637,923
FRANCE -- 13.6%
Accor S.A ...................................... 955 70,003(h)
Alstom ......................................... 3,709 807,043
AXA S.A ........................................ 13,977 509,165
BNP Paribas .................................... 14,903 1,508,733
Cie Generale d'Optique Essilor International S.A 5,268 345,499
Credit Agricole S.A ............................ 14,504 450,453
Groupe Danone .................................. 18,460 1,656,765
LVMH Moet Hennessy Louis Vuitton S.A ........... 3,346 373,784
Renault S.A .................................... 2,346 260,587
Schneider Electric S.A ......................... 1,477 191,818
Suez S.A ....................................... 12,924 851,301
Total S.A ...................................... 17,083 1,273,320
Unibail-Rodamco (REIT) ......................... 1,873 483,791
Veolia Environnement ........................... 14,975 1,047,857
Vinci S.A ...................................... 8,312 603,090
10,433,209
GERMANY -- 8.5%
Allianz AG (Regd.) ............................. 689 136,993
Bayer AG ....................................... 16,147 1,298,732
Daimler AG (Regd.) ............................. 5,657 485,390
E.ON AG ........................................ 7,349 1,365,476
Linde AG ....................................... 7,852 1,113,424
Metro AG ....................................... 6,557 531,755
RWE AG ......................................... 2,003 247,116
Siemens AG (Regd.) ............................. 12,200 1,327,108
6,505,994
GREECE -- 1.0%
Hellenic Telecommunications Organization S.A ... 27,954 796,415
HONG KONG -- 0.7%
Esprit Holdings Ltd. ........................... 20,000 240,143
Sun Hung Kai Properties Ltd. ................... 17,455 270,252
510,395
INDIA -- 0.5%
Larsen & Toubro Ltd. ........................... 4,621 345,999
ITALY -- 4.9%
Banca Intesa S.p.A ............................. 126,079 892,011
Saipem S.p.A ................................... 43,186 1,754,555
UniCredit S.p.A ................................ 162,624 1,092,588
3,739,154
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
39
GE INTERNATIONAL EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- -----------
JAPAN -- 15.9%
Asahi Glass Company Ltd. ...................... 42,005 $ 463,792(h)
Bank of Yokohama Ltd. ......................... 60,308 410,193
East Japan Railway Co. ........................ 119 991,119
Ibiden Company Ltd. ........................... 16,799 661,597
Komatsu Ltd. .................................. 18,169 504,720
Mitsubishi Estate Company Ltd. ................ 52,982 1,288,154
Mitsubishi Heavy Industries Ltd. .............. 144,000 616,306
Mitsubishi UFJ Financial Group, Inc. .......... 144,333 1,247,063
Nidec Corp. ................................... 3,051 187,900
Nintendo Company Ltd. ......................... 500 258,201
Nomura Holdings, Inc. ......................... 96,798 1,449,028
Shiseido Company Ltd. ......................... 39,000 1,032,451
Sony Financial Holdings, Inc. ................. 176 712,594
Sumitomo Realty & Development Company Ltd. .... 9,000 158,869
Toray Industries Inc. ......................... 206,999 1,345,540
Toyota Motor Corp. ............................ 17,443 870,967
12,198,494
MEXICO -- 1.2%
America Movil S.A. de C.V. ADR (Series L) ..... 14,225 905,990(h)
NETHERLANDS -- 2.0%
Koninklijke Philips Electronics N.V ........... 39,523 1,517,432
NORWAY -- 3.8%
Acergy S.A .................................... 35,550 767,769
Orkla ASA ..................................... 25,043 317,858
Telenor ASA ................................... 96,371 1,849,003
2,934,630
RUSSIA -- 1.2%
Gazprom OAO ADR ............................... 16,394 836,094
Mobile Telesystems OJSC ADR ................... 1,353 102,625
938,719
SINGAPORE -- 1.4%
CapitaLand Ltd. ............................... 87,000 400,863
Singapore Telecommunications Ltd. ............. 223,174 633,175
1,034,038
SOUTH AFRICA -- 1.4%
Anglo Platinum Ltd. ........................... 2,273 332,846
MTN Group Limited ............................. 48,376 732,203
1,065,049
SOUTH KOREA -- 1.3%
Kookmin Bank .................................. 7,656 428,275
Samsung Electronics Company Ltd. .............. 960 603,908
1,032,183
SPAIN -- 2.0%
ACS Actividades de
Construccion y Servicios S.A ................ 4,089 233,706
Banco Santander S.A. (Regd.) .................. 65,364 1,307,085(h)
1,540,791
SWEDEN -- 1.0%
Sandvik AB .................................... 41,806 727,910
SWITZERLAND -- 9.5%
ABB Ltd. (Regd.) .............................. 42,428 1,143,653
Nestle S.A. (Regd.) ........................... 4,878 2,447,508
Roche Holding AG .............................. 12,808 2,420,318
Swatch Group AG ............................... 1,905 511,377
Swiss Reinsurance ............................. 1,345 117,970
Syngenta AG ................................... 2,092 615,512
7,256,338
TAIWAN -- 1.0%
Taiwan Semiconductor Manufacturing
Company Ltd. ................................ 369,780 768,055
UNITED KINGDOM -- 15.2%
BG Group PLC .................................. 58,336 1,353,052
BHP Billiton PLC .............................. 58,189 1,728,976
British American Tobacco PLC .................. 7,290 273,984
Diageo PLC .................................... 57,777 1,166,683
Group 4 Securicor PLC ......................... 70,884 320,858
Lloyds TSB Group, PLC ......................... 118,227 1,059,742(h)
National Grid PLC ............................. 38,528 529,512
Prudential PLC ................................ 59,642 788,873(h)
Rio Tinto PLC (Regd.) ......................... 9,301 967,358
Royal Bank of Scotland Group PLC .............. 176,475 1,182,883(h)
Tesco PLC ..................................... 95,329 718,077
Vodafone Group Public Limited Co. ............. 517,355 1,551,618
11,641,616
TOTAL COMMON STOCK
(COST $61,497,619) .......................... 73,178,329
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
40
GE INTERNATIONAL EQUITY FUND March 31, 2008 (unaudited)
SCHEDULE OF INVESTMENTS
NUMBER
OF SHARES VALUE
--------- -----------
PREFERRED STOCK -- 2.5%
All America Latina Logistica S.A ............. 26,000 $ 263,197
Cia Vale do Rio Doce ADR ..................... 57,017 1,662,046(h)
TOTAL PREFERRED STOCK
(COST $1,118,949) .......................... 1,925,243
OTHER INVESTMENTS -- 0.0%*
GEI Investment Fund
(COST $37,103) ............................. 28,940(k)
TOTAL INVESTMENTS IN SECURITIES
(COST $62,653,671) ......................... 75,132,512
SHORT-TERM INVESTMENTS -- 1.2%
GE Money Market Fund Institutional
Class 2.08%
(COST $951,492) ............................ 951,492(d,p)
TOTAL INVESTMENTS
(COST $63,605,163) ......................... 76,084,004
OTHER ASSETS AND LIABILITIES, NET -- 0.8% .... 605,895
-----------
NET ASSETS -- 100.0% ......................... $76,689,899
===========
* Less than 0.05%
OTHER INFORMATION
The GE International Equity Fund had the following short futures contracts open
at March 31, 2008 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- ----------- ---------- --------- --------- --------------
DJ Euro Stoxx Index
Futures June 2008 4 $(224,943) $ (942)
FTSE 100 Index
Futures June 2008 1 (113,456) (792)
Topix Index Futures June 2008 1 (122,118) 2,622
------
$ 888
======
The GE International Equity Fund was invested in the following sectors at March
31, 2008 (unaudited):
PERCENTAGE (BASED
SECTOR ON MARKET VALUE)
- ------ -----------------
Financials 20.89%
Materials 14.84%
Industrials 13.96%
Consumer Staples 10.29%
Energy 10.04%
Telecommunication Services 8.64%
Consumer Discretionary 5.69%
Information Technology 5.41%
Utilities 5.31%
Healthcare 3.64%
Short-Term 1.25%
Other Investments 0.04%
------
100.00%
======
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
41
GE Premier Growth Equity Fund
[Q&A LOGO]
David B. Carlson has been the portfolio manager of the GE Premier Growth Equity
Fund since its inception in 1996. See portfolio managers' biographical
information beginning on page 148.
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, 2008?
A. For the six-month period ended March 31, 2008, the GE Premier Growth Equity
Fund returned -9.78% for the Class A shares, -10.11% for the Class B
shares, -10.15% for the Class C shares, -0.45% for the Class R shares and
-9.66% for the Class Y shares. The S&P 500 Index, the Fund's benchmark,
returned -12.46% and the Fund's Lipper peer group of 766 Large-Cap Growth
Funds returned an average of -11.66% for the same period.
Q. WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A. The past six-month period was a challenge for U.S. Equity investors, as the
housing recession, skyrocketing commodity prices and tight credit
conditions threatened the outlook for economic growth and corporate
profits. During the period, the Fed addressed the risks to growth by easing
monetary policy, lowering its benchmark rate by 250 basis points to 2.25%
at March 31, 2008. Despite this injection of liquidity, and other
supportive measures by the Fed, credit conditions remained tight throughout
the period, and volatility remained high.
Financials (-26.3%) was the worst-performing S&P 500 sector during the
period, reflecting locked-up credit markets, huge write-downs of mortgage-
related securities at banks and brokerages and the collapse of Bear
Stearns, one of Wall Street's largest and oldest investment banks. Other
sectors that performed poorly included telecom (-18.1%) and consumer
discretionary (-15.3%). Given concerns that the U.S. has entered an
economic recession, the only sector generating a positive return was the
relatively defensive consumer staples sector, rising 1.5%. Energy,
utilities and materials, each down approximately 3%, performed well on a
relative basis reflecting continued bullishness regarding global
infrastructure development and the commodity outlook. Higher-quality
companies were favored amid the period's flight to quality and weak-dollar
environment.
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A. The Fund's high quality holdings, and strong stock selection within the
financial, technology and materials sectors, drove returns in a volatile
investment environment. The Fund benefited tremendously from its
underweight in financials, and strong stock selection. Our financial
holdings declined 1.8% in the period, outperforming the sector and the
market. Two notable gainers were State Street (+17%) and Aflac (+15%).
Our technology holdings outperformed the sector with strength in Yahoo
(+8%) and Western Union (+2%). Smaller holdings in Research in Motion (+2%)
and Corning (+5%) also helped sector performance. Within materials,
agricultural bioengineering company Monsanto (+31%) was the single best-
performing holding during the period. Global oil services giant, Transocean
(+15%) also soared as oil prices topped $100 per barrel.
Partially offsetting these positive contributions were negative
performances from our industrials, consumer staples and healthcare
holdings.
[PHOTO OF DAVID B. CORLSON]
Pictured to the left:
David B. Carlson
42
GE Premier Growth Equity Fund
Underweighting industrials and staples hurt, as both of these sectors
outperformed within the S&P 500 during the six-month period. Our bottom-up
process has not traditionally led us to sustainable growth companies at
reasonable valuations in these two sectors, resulting in underweight
positions during this time. Two of our bottom-five performers this quarter
were in healthcare. UnitedHealth (-29%) fell along with other health
insurers as costlier medical claims prompted downward earnings revisions in
the group. Weakness in Amgen (-26%) was attributable to continued safety
concerns regarding its anemia drugs, and increased FDA scrutiny.
Q. WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND OVER THE PERIOD?
A. There were no significant changes in the Fund during the period, and we
ended the period with 36 holdings in the portfolio. We continued to favor
companies we believe can weather an economic slowdown -- high quality
leaders with double-digit earnings growth prospects. Our bottom-up process
has led us to overweights in technology, consumer discretionary (with a
focus in media and specialty retail) and healthcare. Technology stocks make
up about 35% of the portfolio, with consumer discretionary and healthcare
at about 15% each. In the past six months we initiated positions in
Corning, Research in Motion and specialty metals company, Allegheny
Technologies. During the period we eliminated Liberty Media/Interactive and
Fannie Mae.
With economic growth slowing, the forecast for corporate profits has slowed
significantly. This deterioration in the macro environment may lead to a
change in stock market leadership where the more cyclically tied companies
cool off, and the steady growers start to outperform. Our stock selection
continues to be focused on industry leaders, with financial strength and
above-average long-term growth prospects. We believe these characteristics
will lead to strong performance over the long term.
43
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE END OF THE PERIOD DURING THE PERIOD
PERIOD ($) ($) ($)*
-------------------- -------------------- --------------------
ACTUAL FUND RETURN**
Class A 1,000.00 902.23 5.06
Class B 1,000.00 898.88 8.63
Class C 1,000.00 898.47 8.63
Class R 1,000.00 995.49 6.71
Class Y 1,000.00 903.43 3.87
HYPOTHETICAL 5% RETURN
(2.5% FOR THE PERIOD)
Class A 1,000.00 1,019.51 5.35
Class B 1,000.00 1,015.82 9.12
Class C 1,000.00 1,015.82 9.12
Class R 1,000.00 1,018.14 6.80
Class Y 1,000.00 1,020.74 4.09
* Expenses are equal to the Fund's annualized expense ratio of 1.06% for
Class A, 1.81% for Class B, 1.81% for Class C, 1.34% for Class R, and 0.81%
for Class Y (from period October 01, 2007 -- March 31, 2008), multiplied by
the average account value over the period, multiplied by 183/366 (to
reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: (9.78)% for Class A shares, (10.11)% for Class B shares, (10.15)%
for Class C shares, since inception of (0.45)% for Class R shares and
(9.66)% for Class Y shares.
44
GE Premier Growth Equity Fund
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2008
as a % of Market Value
Transocean, Inc. 4.06%
QUALCOMM, Inc. 3.96%
AFLAC Incorporated 3.95%
PepsiCo, Inc. 3.85%
State Street Corp. 3.76%
Western Union Co. 3.72%
Cisco Systems, Inc. 3.71%
Dover Corp. 3.67%
Schlumberger Ltd. 3.51%
Carnival Corp. 3.46%
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 under normal market conditions. 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. In recent periods, the Fund has tended to emphasize larger companies.
LIPPER PERFORMANCE COMPARISON
Large Cap Growth Peer Group
Based on average annual total returns for the periods ended 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEARS
------ ------ ------ ------
Number of
Funds in
peer group: 766 739 521 247
Peer group
average annual
total return: (11.66)% (0.12)% 9.31% 2.29%
Lipper categories in peer group: Large Cap Growth
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Premier Growth
Equity (9.78)% (1.74)% 8.54% 4.85% 16,050
W/load (14.96)% (7.39)% 7.26% 4.23% 15,127
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Premier Growth
Equity (10.11)% (2.45)% 7.73% 4.38% 15,344
W/load (14.11)% (6.45)% 7.73% 4.38%
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ----- ----- --------- ----------
GE Premier Growth
Equity (10.15)% (2.50)% 7.72% 1.34% 11,200
W/load (11.15)% (3.50)% 7.72% 1.34%
S&P 500 Index (12.46)% (5.07)% 11.32% 2.03% 11,863
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
----- --------- ------------ ----------
GE Premier Growth
Equity (0.50)% (0.45)% 01/29/08 9,853
S&P 500 Index (0.43)% (3.67)% 9,633
45
GE Premier Growth Equity Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ---- ----------
GE Premier Growth
Equity (9.66)% (1.47)% 8.81% 5.11% 16,460
S&P 500 Index (12.46)% (5.07)% 11.32% 3.51% 14,114
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
46
GE PREMIER GROWTH EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
GE PREMIER GROWTH EQUITY FUND
Portfolio Composition as a % of the Market Value of $222,893 (in thousands) as
of March 31, 2008
[PIE CHART]
NUMBER
OF SHARES VALUE
----------- ------------
COMMON STOCK -- 97.0%
CONSUMER DISCRETIONARY -- 16.8%
Bed Bath & Beyond, Inc. ....................................................................... 206,923 $ 6,104,230(a,h)
Carnival Corp. ................................................................................ 190,587 7,714,962
Comcast Corp. (Class A)........................................................................ 321,275 6,094,587
Liberty Global, Inc. (Series C)................................................................ 187,319 6,084,121(a)
Liberty Media Entertainment Corp. (Series A)................................................... 326,720 7,396,941(a)
Lowe's Companies, Inc. ........................................................................ 176,973 4,059,760
37,454,601
CONSUMER STAPLES -- 3.8%
PepsiCo, Inc. ................................................................................. 118,708 8,570,718
ENERGY -- 7.5%
Schlumberger Ltd. ............................................................................. 89,848 7,816,776
Transocean, Inc. .............................................................................. 66,978 9,055,426
16,872,202
FINANCIALS -- 11.2%
AFLAC Incorporated............................................................................. 135,589 8,806,505(h)
CB Richard Ellis Group, Inc. (Class A)......................................................... 245,040 5,302,666(a)
Goldman Sachs Group, Inc. ..................................................................... 15,247 2,521,701
State Street Corp. ............................................................................ 106,184 8,388,536(e)
25,019,408
HEALTHCARE -- 12.8%
Amgen, Inc..................................................................................... 111,629 4,663,859(a)
Johnson & Johnson.............................................................................. 76,235 4,945,364
Lincare Holdings Inc........................................................................... 130,688 3,673,640(a)
Medtronic, Inc. ............................................................................... 125,243 6,058,004
UnitedHealth Group, Inc. ...................................................................... 151,380 5,201,417
Zimmer Holdings, Inc. ......................................................................... 51,186 3,985,342(a)
28,527,626
INDUSTRIALS -- 3.7%
Dover Corp. 196,032 8,190,217
INFORMATION TECHNOLOGY -- 35.1%
Analog Devices, Inc. .......................................................................... 127,965 3,777,527
Cisco Systems, Inc. ........................................................................... 343,056 8,264,219(a,h)
Corning Incorporated........................................................................... 217,813 5,236,224
eBay, Inc. .................................................................................... 187,864 5,605,862(a,h)
Intuit Inc. ................................................................................... 283,157 7,648,070(a)
Iron Mountain Incorporated..................................................................... 95,293 2,519,547(a)
Microsoft Corp. ............................................................................... 266,821 7,572,380
Molex, Inc. (Class A).......................................................................... 221,625 4,844,722(h)
Paychex, Inc. ................................................................................. 212,368 7,275,727
QUALCOMM, Inc. ................................................................................ 215,091 8,818,731
Research In Motion Ltd......................................................................... 35,939 4,033,434(a)
Western Union Co. ............................................................................. 389,341 8,281,283
Yahoo! Inc. ................................................................................... 149,747 4,332,181(a)
78,209,907
MATERIALS -- 4.0%
Allegheny Technologies Incorporated............................................................ 32,672 2,331,474
Monsanto Co. .................................................................................. 59,898 6,678,627(h)
9,010,101
TELECOMMUNICATION SERVICES -- 2.1%
American Tower Corp. (Class A)................................................................. 117,075 4,590,511(a)
TOTAL COMMON STOCK (COST $211,150,957)......................................................... 216,445,291
OTHER INVESTMENTS -- 0.0%*
GEI Investment Fund
(COST $28,866) .............................................................................. 22,516(k)
TOTAL INVESTMENTS IN SECURITIES
(COST $211,179,823).......................................................................... 216,467,807
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
47
GE PREMIER GROWTH EQUITY FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- ------------
SHORT-TERM INVESTMENTS -- 2.9%
GE Money Market Fund Institutional Class 2.08%
(COST $6,424,793)............................................................................ $ 6,424,793(d,p)
TOTAL INVESTMENTS
(COST $217,604,616).......................................................................... 222,892,600
OTHER ASSETS AND LIABILITIES, NET -- 0.1%..................................................... 177,911
-------------
NET ASSETS -- 100.0%........................................................................... $ 223,070,511
=============
OTHER INFORMATION
The GE Premier Growth Equity Fund had the following long futures contracts open
at March 31, 2008 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
- ----------- ---------- --------- ------------ ------------
S&P 500 Index Futures........................................................... June 2008 5 $ 1,655,000 $ 22,659
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
48
GE Strategic Investment Fund [Q&A LOGO]
The GE STRATEGIC INVESTMENT FUND is managed by a team of portfolio managers that
includes Paul M. Colonna, Ralph R. Layman, Thomas R. Lincoln, Judith A. Studer,
and Diane M. Wehner. Ms. Studer is vested with oversight authority for
determining asset allocations for the Fund.
Each of the foregoing portfolio managers is responsible for managing one of four
sub-portfolios: U.S. equity, U.S. mid-cap equity, international equity, and
fixed income. Mr. Lincoln manages the U.S. equity sub-portfolio, Ms. Wehner
manages the U.S. mid-cap equity sub-portfolio, Mr. Layman manages the
international equity sub-portfolio, and Mr. Colonna manages the fixed income
sub-portfolio, each with a team of portfolio managers and analysts. The
sub-portfolios underlying the Fund are managed independently of each other and
the portfolio managers have full discretion over their particular sub-portfolio.
However, the portfolio management team is collaborative to ensure strict
adherence to the Fund's objectives. See portfolio managers' biographical
information beginning on page 148.
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, 2008?
A. For the six-month period ended March 31, 2008, the GE Strategic Investment
Fund returned -7.05% for Class A shares, -7.37% for Class B shares, -7.41%
for Class C shares, -0.84% for Class R shares and -6.92% for Class Y
shares. The Fund's broad based benchmarks, the S&P 500 Index and the
Lehman Brothers Aggregate Bond Index, returned -12.46% and 5.23%,
respectively. The Fund's Lipper peer group of 692 Mixed-Asset Target
Allocation Growth Funds returned an average of -8.26% for the same period.
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE AND WHAT MARKET
CONDITIONS IMPACTED THE PERFORMANCE OF THE FUND?
A. On an absolute basis, the performance of the GE Strategic Investment Fund
for the past six-month period was driven by the decline in equity markets
across the globe. High quality fixed income and cash investments provided
some diversification and performance cushion to the Fund. The Fund
benefited from the decision of GE Asset Management's Tactical Asset
Allocation Committee to
Pictured from left to right: Diane M. Wehner, Ralph R. Layman,
Judith A. Studer, Thomas R. Lincoln and Paul M. Colonna.
(PORTFOLIO MANAGERS PHOTO)
49
GE Strategic Investment Fund
maintain, and slightly increase, a higher-than-average cash balance
through the period, with an underweight in U.S. equities. The Fund was
also impacted favorably by relative outperformance of its international
equity holdings, helping to offset relative weakness in U.S. equities and
bonds.
The U.S. equity market declined significantly over the last six months as
the housing recession, skyrocketing commodity prices and tight credit
conditions threatened the outlook for economic growth and corporate
profits. During the period, the Federal Reserve addressed the risks to
growth by easing monetary policy and injecting liquidity. The Fed
demonstrated its resolve to ensure the functioning of the financial
markets by both old and new methods, perhaps most notably by providing
capital to smooth the acquisition of the near-collapsed investment bank
Bear Stearns by JPMorgan. Despite these measures, credit conditions
remained tight, investor risk aversion and volatility high, as shown by
the S&P 500's decline of 20% from its record high in October 2007 through
its recent low in March 2008. Financial stocks, the largest component in
the S&P 500, fell 26%, the worst return of all ten sectors as writedowns
and credit losses abounded and forced capital raising.
For the period, the Fund's U.S. large-capitalization equity performance
modestly lagged its benchmark, but the mid-capitalization segment
outperformed. The large-cap growth performance in the Fund was helped by
underweighting the weak financial sector overall, coupled with a tilt away
from the most credit sensitive names. Strong stock selection in the
information technology and materials sectors also added to relative
performance. Unfortunately these positive notes were not sufficient to
offset the poor stock selection within telecommunications services and
industrials and our underweights in the better-performing energy and
utility sectors. The mid-cap portfolio outperformed, helped by superior
stock selection in the consumer staples and energy arenas.
International equity markets did not escape the turmoil that started in
the U.S. Disarray in the credit markets and growing concern that global
economies would be adversely affected by reduced availability of credit
for consumers and businesses, coupled with rising prices across many
commodities and services led the MSCI EAFE index to decline over 10%,
nearly as much as its U.S. counterpart in U.S. dollar terms. The Fund's
international equity and emerging markets holdings, while down during the
period, substantially outperformed their market benchmarks, each by about
4%, adding to Fund performance. The driver of this solid outperformance
was stock selection, with substantial contributions from holdings in
materials, energy, industrials and telecommunications. Specifically,
holdings in metals and mining and agricultural chemicals attempting to
satisfy massive global demand performed positively, and rising energy
costs spurred interest in oil and gas assets. Stocks with defensive
characteristics in foods and healthcare also did well in an increasingly
challenging environment. The underweighting of financial stocks also added
to relative performance.
During this period the fixed income markets provided an overall positive
return, helping somewhat to stabilize the Fund. Propelled by a flight to
quality and, triggered by troubled sub-prime mortgages, the overall fixed
income market, led by high quality Treasuries, held up better than
equities. However, rising consumer delinquencies and the prospects for
weaker economic growth significantly increased the risk of default on
commercial mortgage, home-equity, automobile and credit card debt, and
even prices of investment grade corporate bonds were
50
GE Strategic Investment Fund
negatively impacted by increased market perceptions of risk.
Against this backdrop of a flight to quality, the fixed income portion of
the Fund provided a positive return, but significantly underperformed its
benchmark. Duration and yield curve positioning within the treasury market
benefitted the Fund, as did underweighting investment grade credits. These
out-performing allocations, however, were not sufficient to offset the
price deterioration on short- term, asset backed securities (ABS) backed
by subprime collateral as well as on high yield and emerging markets debt
securities.
Q. WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND DURING THE PERIOD?
A. During the six-month period, we remained underweight in domestic equity
and maintained higher cash weighting to dampen volatility and preserve
capital. During the period we increased diversification within the U.S.
equity segment of the Fund by starting an allocation to our core value
strategy.
51
GE Strategic Investment Fund
Understanding Years 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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 01, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD (DURING THE PERIOD ($)*
--------------------------- -------------------- -----------------------
ACTUAL FUND RETURN**
Class A.......................................... 1,000.00 929.49 4.39
Class B.......................................... 1,000.00 926.29 8.03
Class C.......................................... 1,000.00 925.88 8.03
Class R.......................................... 1,000.00 991.64 5.40
Class Y.......................................... 1,000.00 930.75 3.17
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
Class A.......................................... 1,000.00 1,020.29 4.55
Class B.......................................... 1,000.00 1,016.61 8.32
Class C.......................................... 1,000.00 1,016.61 8.32
Class R.......................................... 1,000.00 1,019.41 5.48
Class Y.......................................... 1,000.00 1,021.52 3.28
- ----------
* Expenses are equal to the Funds annualized expense ratio of 0.90% for
Class A, 1.65% for Class B, 1.65% for Class C, 1.08% for Class R, and
0.65% for Class Y (from period October 01, 2007 -- March 31, 2008),
multiplied by the average account value over the period, multiplied by
183/366 (to reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: (7.05)% for Class A shares, (7.37)% for Class B shares, (7.41)%
for Class C shares, since inception of (0.84)% for Class R shares and
(6.92)% for Class Y shares.
52
GE Strategic Investment Fund
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2008
as a % of Market Value
U.S. Treasury Notes 3.63%, 10/31/09 -- 12/31/12....................... 2.50%
Federal National Mortgage Assoc. TBA 5.50%........................... 1.81%
U.S. Treasuries Notes 4.25%, 11/15/17................................ 1.43%
Cisco Systems, Inc. ................................................. 1.21%
QUALCOMM, Inc. ...................................................... 1.16%
Schlumberger Ltd. ................................................... 1.10%
Transocean, Inc. .................................................... 1.08%
State Street Corp. .................................................. 1.03%
Textron, Inc. ....................................................... 1.02%
PepsiCo, Inc. ....................................................... 0.97%
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
Mixed-Asset Target Alloc Growth Peer Group
Based on average annual total returns for the periods ended 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------- ------ ------ -----
Number of Funds in peer group:............................................. 692 667 425 228
Peer group average annual total return:..................................... (8.26)% (2.32)% 9.63% 4.24%
Lipper categories in peer group: Flexible
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
-------- ------- ------ ----- ----------
GE Strategic Investment...................................................... (7.05)% 2.63% 10.33% 5.94% 17,812
W/load....................................................................... (12.40)% (3.27)% 9.03% 5.32% 16,788
S&P 500 Index................................................................ (12.46)% (5.07)% 11.32% 3.51% 14,114
LB Aggregate Bond Index...................................................... 5.23% 7.65% 4.58% 6.04% 17,971
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
-------- ------- ------ ----- ----------
GE Strategic Investment...................................................... (7.37)% 1.91% 9.51% 5.47% 17,028
W/load....................................................................... (11.37)% (2.09)% 9.51% 5.47%
S&P 500 Index................................................................ (12.46)% (5.07)% 11.32% 3.51% 14,114
LB Aggregate Bond Index...................................................... 5.23% 7.65% 4.58% 6.04% 17,971
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
-------- ------- ------ --------- ----------
GE Strategic Investment...................................................... (7.41)% 1.87% 9.51% 4.91% 15,030
W/load....................................................................... (8.41)% 0.87% 9.51% 4.91%
S&P 500 Index................................................................ (12.46)% (5.07)% 11.32% 2.03% 11,863
LB Aggregate Bond Index...................................................... 5.23% 7.65% 4.58% 6.38% 16,911
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
CURRENT SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
------- --------- ------------ ----------
GE Strategic Investment........................................................ (1.01)% (0.84)% 01/29/08 9,851
S&P 500 Index.................................................................. (0.03)% (3.67)% 9,633
LB Aggregate Bond Index........................................................ (0.03)% 0.48% 10,048
53
GE Strategic Investment Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
-------- ------- ------ ----- ----------
GE Strategic Investment...................................................... (6.92)% 2.91% 10.75% 6.28% 18,385
S&P 500 Index................................................................ (12.46)% (5.07)% 11.32% 3.51% 14,114
LB Aggregate Bond Index...................................................... 5.23% 7.65% 4.58% 6.04% 17,971
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
54
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
GE STRATEGIC INVESTMENT FUND
Portfolio Composition as a % of the Market Value of $168,633 (in thousands) as
of March 31, 2008
[PIE CHART]
NUMBER
OF SHARES VALUE
--------- ---------------
DOMESTIC EQUITY -- 40.3%
CONSUMER DISCRETIONARY -- 4.8%
Bed Bath & Beyond, Inc. ....................................................................... 44,648 $ 1,317,116(a)
Cablevision Systems Corp. ..................................................................... 1,494 32,016(a)
Carnival Corp. ................................................................................ 23,101 935,128
Coach, Inc. ................................................................................... 4,307 129,856(a)
Comcast Corp. (Class A)........................................................................ 77,928 1,478,294(h)
Darden Restaurants, Inc. ...................................................................... 279 9,081
DISH Network Corp. (Class A)................................................................... 753 21,634(a)
Kohl's Corp. .................................................................................. 5,999 257,297(a)
Liberty Global, Inc. (Series C)................................................................ 18,308 594,644(a)
Liberty Media Entertainment Corp. (Series A)................................................... 25,025 566,566(a)
Life Time Fitness, Inc. ....................................................................... 4,458 139,134(a)
Lowe's Companies, Inc. ........................................................................ 25,864 593,320
News Corp. (Class A)........................................................................... 2,738 51,338
Omnicom Group, Inc. ........................................................................... 14,346 633,806
O'Reilly Automotive, Inc. ..................................................................... 7,092 202,264(a)
Penn National Gaming, Inc. .................................................................... 1,492 65,245(a)
Regal Entertainment Group, (Class A)........................................................... 7,388 142,515
Starwood Hotels & Resorts Worldwide, Inc. ..................................................... 1,864 96,462
The Cheesecake Factory......................................................................... 11,373 247,818(a)
The Walt Disney Co. ........................................................................... 884 27,740
Time Warner, Inc. ............................................................................. 7,281 102,080
Viacom Inc. (Class B).......................................................................... 921 36,490(a)
7,679,844
CONSUMER STAPLES -- 3.3%
Alberto-Culver Co. ............................................................................ 22,387 613,628
Clorox Co. .................................................................................... 1,058 59,925
Colgate-Palmolive Co. ......................................................................... 17,727 1,381,111
General Mills, Inc. ........................................................................... 5,397 323,173
Kimberly-Clark Corp. .......................................................................... 4,135 266,914
McCormick & Company, Inc. ..................................................................... 9,782 361,640
PepsiCo, Inc. ................................................................................. 22,642 1,634,752
Procter & Gamble Co. .......................................................................... 3,435 240,690
Sara Lee Corp. ................................................................................ 1,991 27,834
The Coca-Cola Co. ............................................................................. 330 20,087
The Estee Lauder Companies Inc. (Class A)...................................................... 6,359 291,560
Wal-Mart Stores, Inc. ......................................................................... 1,369 72,119
5,293,433
ENERGY -- 4.1%
Apache Corp. .................................................................................. 2,700 326,214
Devon Energy Corp. ............................................................................ 324 33,803
Dresser-Rand Group, Inc. ...................................................................... 5,718 175,828(a)
EOG Resources, Inc. ........................................................................... 478 57,360
Exxon Mobil Corp. ............................................................................. 9,243 781,773(h)
Halliburton Co. ............................................................................... 1,854 72,918
Hess Corp. .................................................................................... 3,709 327,059
Marathon Oil Corp. ............................................................................ 9,873 450,208
Nabors Industries Ltd. ........................................................................ 759 25,631(a)
National Oilwell Varco, Inc. .................................................................. 187 10,917(a)
Peabody Energy Corp. .......................................................................... 3,145 160,395
Schlumberger Ltd. ............................................................................. 21,264 1,849,968
Southwestern Energy Co. ....................................................................... 7,660 258,065(a)
Sunoco, Inc. .................................................................................. 1,067 55,985
Transocean, Inc. .............................................................................. 13,449 1,818,305
Weatherford International Ltd. ................................................................ 4,160 301,475(a)
6,705,904
FINANCIALS -- 5.1%
ACE Ltd. ...................................................................................... 821 45,204
Affiliated Managers Group, Inc. ............................................................... 1,279 116,056(a)
Allstate Corp. ................................................................................ 1,043 50,127
American Express Co. .......................................................................... 1,057 46,212
American International Group, Inc. ............................................................ 30,949 1,338,544
AON Corp. ..................................................................................... 1,357 54,551
Bank of America Corp. ......................................................................... 996 37,758
Bank of New York Mellon Corp. ................................................................. 1,867 77,910
BlackRock, Inc. ............................................................................... 124 25,318
CB Richard Ellis Group, Inc. (Class A)......................................................... 37,136 803,623(a,h)
Chubb Corp. ................................................................................... 1,282 63,433
Citigroup, Inc. ............................................................................... 33,882 725,752
CVB Financial Corp. ........................................................................... 9,381 97,656
Douglas Emmett, Inc. (REIT).................................................................... 3,923 86,541
DuPont Fabros Technology, Inc. (REIT).......................................................... 6,479 106,839
Federal Home Loan Mortgage Corp. .............................................................. 1,617 40,942
Federal National Mortgage Assoc................................................................ 16,260 427,963
Fortress Investment Group LLC (Class A)........................................................ 9,291 114,093
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
55
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- ---------------
Goldman Sachs Group, Inc. ..................................................................... 2,511 $ 415,294
Greenhill & Company, Inc. ..................................................................... 2,088 145,241
HCC Insurance Holdings, Inc. .................................................................. 18,928 429,476
JP Morgan Chase & Co. ......................................................................... 1,320 56,694
Legg Mason, Inc. .............................................................................. 2,049 114,703
Marsh & McLennan Companies, Inc. .............................................................. 871 21,209
Metlife, Inc. ................................................................................. 6,414 386,508
Nymex Holdings, Inc. .......................................................................... 1,381 125,160
Prologis (REIT)................................................................................ 1,570 92,410
SL Green Realty Corp. (REIT)................................................................... 691 56,296
State Street Corp. ............................................................................ 22,024 1,739,896(e)
SunTrust Banks, Inc. .......................................................................... 6,035 332,770
US Bancorp..................................................................................... 1,406 45,498
Zions Bancorporation........................................................................... 1,645 74,930
8,294,607
HEALTHCARE -- 6.6%
Abbott Laboratories............................................................................ 20,212 1,114,691(h)
Aetna, Inc. ................................................................................... 14,209 598,056
Alcon, Inc. ................................................................................... 1,030 146,518
Amgen, Inc. ................................................................................... 35,333 1,476,212(a)
Amylin Pharmaceuticals, Inc. .................................................................. 5,834 170,411(a)
Arthrocare Corp. .............................................................................. 3,816 127,264(a)
Barr Pharmaceuticals, Inc. .................................................................... 3,480 168,119(a)
Baxter International, Inc. .................................................................... 747 43,192
Boston Scientific Corp. ....................................................................... 3,609 46,448(a)
Bristol-Myers Squibb Co. ...................................................................... 2,116 45,071
Covidien Ltd. ................................................................................. 443 19,603
DaVita, Inc. .................................................................................. 896 42,793(a)
DENTSPLY International, Inc. .................................................................. 3,456 133,402
Genentech Inc. ................................................................................ 12,066 979,518(a)
Gen-Probe Incorporated......................................................................... 3,347 161,325(a)
Gilead Sciences, Inc. ......................................................................... 14,983 772,074(a)
Hologic, Inc. ................................................................................. 9,081 504,904(a)
Johnson & Johnson.............................................................................. 597 38,727
Lifecell Corp. ................................................................................ 4,897 205,821(a)
Masimo Corp. .................................................................................. 9,065 235,690(a)
McKesson Corp. ................................................................................ 996 52,161
Medtronic, Inc. ............................................................................... 21,409 1,035,553
Merck & Company, Inc. ......................................................................... 668 25,351
Psychiatric Solutions, Inc..................................................................... 7,561 256,469(a)
Resmed, Inc. .................................................................................. 14,622 616,756(a)
Thermo Fisher Scientific, Inc. ................................................................ 6,163 350,305(a)
UnitedHealth Group, Inc. ...................................................................... 35,062 1,204,731
Wyeth.......................................................................................... 2,278 95,129
10,666,294
INDUSTRIALS -- 2.9%
Cooper Industries Ltd. ........................................................................ 3,191 128,119
Deere & Co. ................................................................................... 461 37,083
Dover Corp. ................................................................................... 18,606 777,359
Eaton Corp. ................................................................................... 510 40,632
General Dynamics Corp. ........................................................................ 1,083 90,290
Harsco Corp. .................................................................................. 5,524 305,919
Hexcel Corp. .................................................................................. 23,821 455,219(a,h)
ITT Corp. ..................................................................................... 3,710 192,215
Joy Global, Inc. .............................................................................. 3,062 199,520
Monster Worldwide, Inc. ....................................................................... 11,772 285,000(a)
Rockwell Collins, Inc. ........................................................................ 168 9,601
Textron, Inc. ................................................................................. 30,916 1,713,365
3M Co. ........................................................................................ 411 32,531
United Technologies Corp. ..................................................................... 5,510 379,198
4,646,051
INFORMATION TECHNOLOGY -- 10.4%
Activision, Inc. .............................................................................. 8,129 222,003(a,h)
Affiliated Computer Services, Inc. (Class A)................................................... 3,057 153,187(a)
Analog Devices, Inc. .......................................................................... 1,699 50,154
Apple Computer, Inc. .......................................................................... 138 19,803(a)
Automatic Data Processing, Inc. ............................................................... 14,568 617,538
Blackboard, Inc. .............................................................................. 2,780 92,657(a)
Cisco Systems, Inc. ........................................................................... 84,845 2,043,916(a)
Citrix Systems, Inc. .......................................................................... 4,709 138,115(a)
Cogent, Inc. .................................................................................. 8,716 82,192(a)
Corning Incorporated........................................................................... 17,956 431,662
Dell, Inc. .................................................................................... 472 9,402(a)
DST Systems, Inc. ............................................................................. 2,137 140,486(a)
Fidelity National Information Services, Inc. .................................................. 5,079 193,713
Google, Inc. (Class A)......................................................................... 814 358,543(a)
Harris Corp. .................................................................................. 1,482 71,921
Hewlett-Packard Co. ........................................................................... 1,755 80,133
Hittite Microwave Corp. ....................................................................... 5,274 197,353(a)
Intel Corp. ................................................................................... 58,117 1,230,918
International Business Machines Corp. ......................................................... 1,225 141,047
Intuit Inc. ................................................................................... 34,216 924,174(a)
Iron Mountain Incorporated..................................................................... 13,956 368,997(a)
Juniper Networks, Inc. ........................................................................ 7,909 197,725(a)
Lam Research Corp. ............................................................................ 645 24,652(a)
Macrovision Corp. ............................................................................. 11,796 159,246(a)
Marvell Technology Group Ltd. ................................................................. 8,954 97,420(a)
Maxim Integrated Products, Inc. ............................................................... 1,915 39,047
Mercadolibre, Inc. ............................................................................ 1,946 77,373(a)
Mettler Toledo International Inc. ............................................................. 1,476 143,349(a)
Microchip Technology Inc. ..................................................................... 4,114 134,651
Microsoft Corp. ............................................................................... 45,669 1,296,086(h)
Molex, Inc. (Class A).......................................................................... 25,390 555,025
National Semiconductor Corp. .................................................................. 1,895 34,716
Neustar, Inc. (Class A)........................................................................ 10,530 278,834(a)
Oracle Corp. .................................................................................. 65,492 1,281,024(a)
Paychex, Inc. ................................................................................. 29,724 1,018,344
QUALCOMM, Inc. ................................................................................ 47,550 1,949,550
Salesforce.com, Inc. .......................................................................... 1,971 114,062(a)
Texas Instruments Incorporated................................................................. 2,178 61,572
THQ, Inc. ..................................................................................... 6,906 150,551(a)
Western Union Co. ............................................................................. 53,165 1,130,820
Yahoo! Inc. ................................................................................... 17,091 494,443(a)
16,806,404
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
56
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- ---------------
MATERIALS -- 1.6%
Alcoa, Inc. ................................................................................... 1,108 $ 39,954
Allegheny Technologies Incorporated............................................................ 12,825 915,192
Cabot Corp. ................................................................................... 3,017 84,476
Freeport-McMoRan Copper & Gold, Inc. .......................................................... 398 38,296
Martin Marietta Materials, Inc. ............................................................... 1,306 138,658
Monsanto Co. .................................................................................. 10,448 1,164,952
Praxair, Inc. ................................................................................. 2,592 218,324
Vulcan Materials Co. .......................................................................... 398 26,427
2,626,279
TELECOMMUNICATION SERVICES -- 1.0%
American Tower Corp. (Class A)................................................................. 3,592 140,842(a)
AT&T, Inc. .................................................................................... 784 30,027
NII Holdings Inc. (Class B).................................................................... 39,691 1,261,380(a)
Syniverse Holdings, Inc. ...................................................................... 6,951 115,804(a)
Verizon Communications, Inc. .................................................................. 1,966 71,661
1,619,714
UTILITIES -- 0.5%
American Electric Power Company, Inc. ......................................................... 672 27,975
Constellation Energy Group, Inc. .............................................................. 277 24,451
Dominion Resources, Inc. ...................................................................... 2,452 100,140
DTE Energy Co. ................................................................................ 2,482 96,525
Edison International........................................................................... 871 42,696
Entergy Corp. ................................................................................. 348 37,960
ITC Holdings Corp. ............................................................................ 5,714 297,471
PPL Corp. ..................................................................................... 2,611 119,897
SCANA Corp. ................................................................................... 3,028 110,764
857,879
TOTAL DOMESTIC EQUITY (COST $66,011,577)....................................................... 65,196,409
FOREIGN EQUITY -- 28.7%
COMMON STOCK -- 27.9%
CONSUMER DISCRETIONARY -- 1.5%
Accor S.A. .................................................................................... 484 35,478
AGTech Holdings Ltd. .......................................................................... 164,195 13,502(a)
China Travel International Inv. ............................................................... 115,777 46,710
Daimler AG (Regd.)............................................................................. 2,873 246,513
Esprit Holdings Ltd. .......................................................................... 10,000 120,072
Gafisa S.A. ................................................................................... 2,382 39,521(a)
Koninklijke Philips Electronics N.V. .......................................................... 20,070 770,560
LVMH Moet Hennessy Louis Vuitton S.A. ......................................................... 1,699 189,797
Prajay Engineers Syndicate Ltd. ............................................................... 4,761 33,227
Renault S.A. .................................................................................. 1,191 132,293
Swatch Group AG................................................................................ 967 259,581
Toyota Motor Corp. ............................................................................ 8,916 445,195
Urbi Desarrollos Urbanos S.A. de C.V. ......................................................... 11,655 38,243(a)
2,370,692
CONSUMER STAPLES -- 2.7%
British American Tobacco PLC................................................................... 3,702 139,134
China Mengniu Dairy Company Ltd. .............................................................. 20,000 58,076
Diageo PLC..................................................................................... 29,340 592,461
Diageo PLC ADR................................................................................. 336 27,324
Groupe Danone.................................................................................. 9,375 841,396
IOI Corp. ..................................................................................... 26,750 59,379
ITC Ltd. ...................................................................................... 12,408 63,153
Metro AG....................................................................................... 3,329 269,973
Nestle S.A. (Regd.)............................................................................ 2,477 1,242,820
Nestle S.A. ADR................................................................................ 443 55,375
Shinsegae Company Ltd. ........................................................................ 40 25,203
Shiseido Company Ltd. ......................................................................... 20,000 529,462
Tesco PLC...................................................................................... 48,409 364,647
Uni-President Enterprises Corp. ............................................................... 40,000 59,316
4,327,719
ENERGY -- 3.3%
Acergy S.A. ................................................................................... 18,093 390,753
BG Group PLC................................................................................... 29,623 687,079
CAT Oil AG..................................................................................... 1,907 32,363(a)
China Shenhua Energy Company Ltd. ............................................................. 6,000 23,937
Gazprom OAO ADR................................................................................ 14,295 729,045(h)
LUKOIL ADR..................................................................................... 1,003 86,057
Paladin Energy Ltd. ........................................................................... 45,648 212,099(a)
Petroleo Brasileiro S.A. ADR................................................................... 8,739 740,106(h)
Saipem S.p.A. ................................................................................. 21,930 890,969
Suncor Energy, Inc. ........................................................................... 6,003 578,389
Suncor Energy, Inc. ........................................................................... 1,639 158,477
Tesco Corp. ................................................................................... 6,020 144,179(a)
TMK OAO GDR.................................................................................... 2,343 76,148(b)
Total S.A. .................................................................................... 8,675 646,610
Zhaikmunai LP GDR.............................................................................. 796 8,334(a,b)
5,404,545
FINANCIALS -- 5.6%
Allianz AG (Regd.)............................................................................. 349 69,391
AXA S.A. ...................................................................................... 7,098 258,572
Banca Intesa S.p.A. ........................................................................... 64,024 452,971
Banco do Brasil S.A. .......................................................................... 2,895 38,263
Banco Santander S.A. (Regd.)................................................................... 33,196 663,821
Bank of Yokohama Ltd. ......................................................................... 30,704 208,837
BNP Paribas.................................................................................... 7,558 765,148
CapitaLand Ltd. ............................................................................... 44,000 202,736
China Vanke Company Ltd. ...................................................................... 9,450 21,006
Chinatrust Financial Holding Company Ltd. ..................................................... 124,000 119,798(a)
Credit Agricole S.A. .......................................................................... 7,365 228,736
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
57
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- ---------------
Dubai Islamic Bank............................................................................. 31,229 $ 79,505
Egyptian Financial Group-Hermes Holding........................................................ 7,934 81,579
Emaar Properties............................................................................... 17,939 53,486
Hung Poo Real Estate Development Corp. ........................................................ 38,500 69,068
Kookmin Bank................................................................................... 5,022 280,930
Lloyds TSB Group, PLC.......................................................................... 60,057 538,328
Megaworld Corp. ............................................................................... 316,030 18,612
Metropolitan Bank & Trust...................................................................... 21,000 20,110
Mitsubishi Estate Company Ltd. ................................................................ 26,982 656,015
Mitsubishi UFJ Financial Group, Inc. .......................................................... 73,289 633,230
Nomura Holdings, Inc. ......................................................................... 49,199 736,490
Plaza Centers N.V. ............................................................................ 6,583 27,836 (a)
Prudential PLC................................................................................. 30,287 400,600
PT Bank Niaga.................................................................................. 497,747 40,555
Royal Bank of Scotland Group PLC............................................................... 89,488 599,824
Samsung Fire & Marine Insurance Company Ltd. .................................................. 230 47,493(a)
Shenzhen Investment Ltd. ...................................................................... 53,997 22,826
Siam Commercial Bank PCL....................................................................... 24,100 69,273
Sony Financial Holdings, Inc. ................................................................. 90 364,394
Standard Bank Group Ltd. ...................................................................... 2,600 28,219
State Bank of India Ltd. GDR................................................................... 496 43,896
Sumitomo Realty & Development Company Ltd. .................................................... 4,000 70,608
Sun Hung Kai Properties Ltd. .................................................................. 10,048 155,571
Swiss Reinsurance.............................................................................. 682 59,819
Tisco Bank PCL................................................................................. 31,043 30,072(a)
Tisco Bank PCL NVDR............................................................................ 452 420(a)
Unibail-Rodamco (REIT)......................................................................... 951 245,641
UniCredit S.p.A................................................................................ 82,582 554,827
Woori Investment & Securities Company Ltd. .................................................... 2,140 45,378(a)
9,003,884
HEALTHCARE -- 1.0%
Cie Generale d'Optique Essilor International S.A. ............................................. 2,676 175,504
GlaxoSmithKline PLC ADR........................................................................ 223 9,462
Ranbaxy Laboratories Ltd. ..................................................................... 2,958 32,293
Roche Holding AG............................................................................... 6,504 1,229,056
Teva Pharmaceutical Industries Ltd. ADR........................................................ 1,564 72,241
Yuhan Corp. ................................................................................... 221 41,507
1,560,063
INDUSTRIALS -- 4.3%
ABB Ltd. (Regd.)............................................................................... 21,545 580,749
ABB Ltd. ADR................................................................................... 1,648 44,364
ACS Actividades de Construccion y Servicios S.A. .............................................. 2,077 118,710
Alstom......................................................................................... 1,883 409,723
Asahi Glass Company Ltd. ...................................................................... 21,003 231,901
Brambles Ltd. ................................................................................. 16,767 152,751
CAE, Inc. ..................................................................................... 65,004 736,803
Canadian National Railway Co. ................................................................. 4,289 208,044
China Communications Construction Company Ltd. ................................................ 32,898 72,958
China COSCO Holdings Company Ltd. ............................................................. 54,500 132,349
China High Speed Transmission Equipment Group Company Ltd. .................................... 23,000 33,512(a)
Doosan Heavy Industries and Construction Company Ltd. ......................................... 870 116,398
East Japan Railway Co. ........................................................................ 60 499,724
Elbit Systems Ltd. ............................................................................ 509 27,874
Empresas ICA Sociedad Controladora S.A. de C.V. ............................................... 9,415 56,040(a)
Enka Insaat ve Sanayi AS....................................................................... 4,482 55,019
Gamuda Bhd..................................................................................... 43,700 45,087
Group 4 Securicor PLC.......................................................................... 35,995 162,932
Group 4 Securicor PLC.......................................................................... 38,574 172,943
Hyundai Development Co. ....................................................................... 765 52,218
Hyunjin Materials Company Ltd. ................................................................ 1,396 47,292
Italian-Thai Development PCL................................................................... 194,578 48,822(a)
IVRCL Infrastructures & Projects Ltd. ......................................................... 3,281 32,552
Komatsu Ltd. .................................................................................. 8,811 244,762
Koninklijke Philips Electronics N.V. .......................................................... 509 19,515
Larsen & Toubro Ltd. .......................................................................... 2,347 175,733
Mitsubishi Heavy Industries Ltd. .............................................................. 73,000 312,433
Murray & Roberts Holdings Ltd. ................................................................ 4,617 54,257
Orascom Construction Industries................................................................ 3,862 290,629
Orkla ASA...................................................................................... 12,717 161,410
Pacific Basin Shipping Ltd. ................................................................... 28,607 47,048
Sandvik AB..................................................................................... 21,074 366,932
Schneider Electric S.A. ....................................................................... 749 97,272
Siemens AG (Regd.)............................................................................. 6,196 673,997
Siemens AG ADR................................................................................. 100 10,894
Suntech Power Holdings Company Ltd. ADR........................................................ 3,671 148,896(a)
United Tractors Tbk PT......................................................................... 37,500 51,127
Vinci S.A. .................................................................................... 4,221 306,261
6,999,931
INFORMATION TECHNOLOGY -- 2.2%
Alibaba.com Ltd. .............................................................................. 26,860 56,461(a)
Delta Electronics Inc. ........................................................................ 18,011 53,239
HON HAI Precision Industry Company Ltd. ....................................................... 7,480 42,842
Ibiden Company Ltd. ........................................................................... 8,500 334,757
Kingdee International Software Group Company Ltd. ............................................. 24 19
MediaTek Inc. ................................................................................. 4,030 53,062
Nidec Corp. ................................................................................... 1,611 99,216
Nintendo Company Ltd. ......................................................................... 300 154,920
Nokia Oyj...................................................................................... 26,222 832,663
Research In Motion Ltd. ....................................................................... 8,336 935,549(a)
Richtek Technology Corp. ...................................................................... 3,000 23,898
Samsung Electronics Company Ltd. .............................................................. 720 452,931
Sohu.com Inc. ................................................................................. 787 35,517(a)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
58
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
NUMBER
OF SHARES VALUE
--------- ---------------
Taiwan Semiconductor Manufacturing Company Ltd. ............................................... 199,693 $ 414,774
Taiwan Semiconductor Manufacturing Company Ltd. ADR............................................ 3,983 40,905
3,530,753
MATERIALS -- 3.5%
Anglo Platinum Ltd. ........................................................................... 1,663 243,520
Barrick Gold Corp. ............................................................................ 1,693 73,561
Bayer AG....................................................................................... 8,199 659,460
BHP Billiton PLC............................................................................... 29,547 877,933
Cameco Corp. .................................................................................. 2,842 93,732
China Grand Forestry Resources Group Ltd. ..................................................... 286,242 31,262(a)
Eurasian Natural Resources Corp. .............................................................. 2,510 49,138(a)
Evraz Group S.A. GDR........................................................................... 95 8,198(b)
Impala Platinum Holdings Ltd. ................................................................. 739 28,463
Israel Chemicals Ltd. ......................................................................... 5,263 73,469
Linde AG....................................................................................... 3,987 565,362
Makhteshim-Agan Industries Ltd. ............................................................... 5,075 37,003
MMC Norilsk Nickel ADR......................................................................... 2,500 70,375
Novozymes (Series B)........................................................................... 3,539 332,375
Polymetal GDR.................................................................................. 6,513 54,709(a,b)
POSCO.......................................................................................... 140 67,289
Potash Corporation of Saskatchewan............................................................. 4,541 705,900
Rio Tinto PLC (Regd.).......................................................................... 4,723 491,219
Sinofert Holdings Ltd. ........................................................................ 81,693 76,835
Syngenta AG.................................................................................... 1,061 312,169
Taiwan Fertilizer Company Ltd. ................................................................ 12,000 52,338
Toray Industries Inc. ......................................................................... 104,999 682,517
Vedanta Resources PLC.......................................................................... 1,377 57,363
5,644,190
TELECOMMUNICATION SERVICES -- 2.5%
America Movil S.A. de C.V. ADR (Series L)...................................................... 9,016 574,229(h)
Bharti Airtel Ltd. ............................................................................ 3,695 75,263(a)
China Mobile Ltd. ............................................................................. 7,997 118,986
Hellenic Telecommunications Organization S.A. ................................................. 14,195 404,419
Mobile Telesystems OJSC ADR.................................................................... 1,226 92,992
MTN Group Limited.............................................................................. 30,323 458,959
Orascom Telecom Holding SAE.................................................................... 1,407 19,072
Orascom Telecom Holding SAE GDR................................................................ 731 49,708
Philippine Long Distance Telephone Co. ........................................................ 206 13,883
Singapore Telecommunications Ltd. ............................................................. 112,622 319,524
Telekom Malaysia Bhd........................................................................... 16,300 54,019
Telekomunikasi Indonesia Tbk PT (Series B)..................................................... 43,000 45,079
Telenor ASA.................................................................................... 48,996 940,052
Turkcell Iletisim Hizmet AS ADR................................................................ 1,259 26,301
Vodafone Group Public Limited Co. ............................................................. 263,272 789,588
Vodafone Group, PLC ADR........................................................................ 761 22,457
4,004,531
UTILITIES -- 1.3%
CEZ............................................................................................ 1,009 77,247
E.ON AG........................................................................................ 3,732 693,422
First Philippine Holdings Corp. ............................................................... 14 14
National Grid PLC.............................................................................. 19,565 268,893
Pan Asia Environmental Protection Group Ltd. .................................................. 82,000 22,126(a)
PNOC Energy Development Corp. ................................................................. 388,192 54,832
RWE AG......................................................................................... 1,016 125,347
Suez S.A. ..................................................................................... 6,563 432,303
Veolia Environnement........................................................................... 7,604 532,080
2,206,264
TOTAL COMMON STOCK (COST $37,365,387).......................................................... 45,052,572
PREFERRED STOCK -- 0.8%
All America Latina Logistica S.A. ............................................................. 16,800 170,066
Cia Vale do Rio Doce........................................................................... 6,119 177,743
Cia Vale do Rio Doce ADR....................................................................... 30,298 883,187(h)
NET Servicos de Comunicacao S.A. .............................................................. 2,733 29,307(a)
Petroleo Brasileiro S.A. ...................................................................... 900 38,085
TOTAL PREFERRED STOCK (COST $631,905).......................................................... 1,298,388
TOTAL FOREIGN EQUITY (COST $37,997,292)........................................................ 46,350,960
PRINCIPAL
AMOUNT
----------
BONDS AND NOTES -- 20.6%
U.S. TREASURIES -- 5.3%
U.S. Treasury Bonds
4.50% 02/15/36.............................................................................. $ 35,000 $ 36,087
4.75% 02/15/37.............................................................................. 830,000 890,839
U.S. Treasury Notes
3.63% 10/31/09 - 12/31/12................................................................... 4,012,000 4,217,278
4.25% 11/15/17.............................................................................. 2,265,000 2,415,418
4.50% 11/15/10.............................................................................. 13,000 13,949
4.63% 11/15/09 - 10/31/11................................................................... 221,000 239,628
4.75% 08/15/17.............................................................................. 660,000 729,868
8,543,067
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
59
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
SCHEDULE OF INVESTMENTS
PRINCIPAL
AMOUNT VALUE
---------- ------------
FEDERAL AGENCIES -- 0.5%
Federal Home Loan Mortgage Corp.
4.13% 12/21/12.............................................................................. $ 400,000 $ 415,755
4.88% 02/09/10.............................................................................. 335,000 350,808
766,563
AGENCY MORTGAGE BACKED -- 7.5%
Federal Home Loan Mortgage Corp.
4.50% 06/01/33 - 02/01/35................................................................... 96,125 92,709(h)
5.00% 07/01/35 - 10/01/35................................................................... 189,519 187,833(h)
5.50% 05/01/20 - 05/01/36................................................................... 314,609 317,367(h)
6.00% 04/01/17 - 06/01/37................................................................... 348,387 358,229(h)
6.50% 01/01/27 - 07/01/36................................................................... 178,864 186,136(h)
7.00% 10/01/16 - 08/01/36................................................................... 46,790 49,380(h)
7.50% 11/01/09 - 09/01/33................................................................... 22,812 24,246(h)
8.00% 04/01/30 - 11/01/30................................................................... 4,194 4,539(h)
9.00% 04/01/16 - 06/01/21................................................................... 4,121 4,506(h)
6.00% TBA................................................................................... 135,000 138,417(c)
Federal National Mortgage Assoc.
4.00% 05/01/19 - 06/01/19................................................................... 80,560 78,647(h)
4.50% 05/01/18 - 02/01/35................................................................... 383,971 378,604(h)
5.00% 07/01/20 - 08/01/35................................................................... 382,288 379,597(h)
5.26% 04/01/37.............................................................................. 41,720 42,533(i)
5.44% 04/01/37.............................................................................. 3,047 3,151(i)
5.50% 03/01/14 - 04/01/38................................................................... 976,989 990,599(h)
5.52% 04/01/37.............................................................................. 35,933 36,805(i)
5.53% 04/01/37.............................................................................. 16,052 16,458(i)
5.56% 04/01/37.............................................................................. 41,508 42,556(i)
5.59% 04/01/37.............................................................................. 45,274 46,500(i)
5.62% 03/01/37 - 06/01/37................................................................... 65,347 66,825(i)
5.66% 05/01/37.............................................................................. 28,351 29,098(i)
5.68% 04/01/37.............................................................................. 34,126 35,056(i)
5.70% 04/01/37.............................................................................. 65,769 67,535(i)
5.71% 04/01/37.............................................................................. 72,078 74,040(i)
5.84% 06/01/37.............................................................................. 83,327 85,451(i)
6.00% 07/01/14 - 03/01/38................................................................... 1,188,634 1,219,281(h)
6.04% 10/01/37.............................................................................. 59,382 61,193(i)
6.50% 01/01/15 - 02/01/35................................................................... 658,503 684,546(h)
7.00% 10/01/16 - 06/01/36................................................................... 164,029 173,142(h)
7.50% 12/01/09 - 03/01/34................................................................... 64,246 68,239(h)
8.00% 12/01/11 - 11/01/33................................................................... 30,803 33,010(h)
8.50% 07/01/30 - 05/01/31................................................................... 2,962 3,264(h)
9.00% 06/01/09 - 12/01/22................................................................... 16,821 17,971(h)
5.00% TBA................................................................................... 1,263,000 1,256,263(c)
5.50% TBA................................................................................... 3,020,000 3,043,863(c)
6.00% TBA................................................................................... 698,000 715,014(c)
6.50% TBA................................................................................... 190,000 196,769(c)
Government National Mortgage Assoc.
4.50% 08/15/33 - 09/15/34................................................................... 169,636 165,436(h)
5.00% 08/15/33.............................................................................. 33,379 33,490(h)
6.00% 04/15/30 - 09/15/36................................................................... 83,709 86,642(h)
6.50% 02/15/24 - 08/15/36................................................................... 181,240 188,932(h)
7.00% 03/15/12 - 09/15/36................................................................... 69,279 72,968(h)
8.00% 09/15/29 - 06/15/30................................................................... 276 302(h)
8.50% 10/15/17.............................................................................. 41,076 44,882(h)
9.00% 11/15/16 - 12/15/21................................................................... 48,626 52,366(h)
5.50% TBA................................................................................... 300,000 305,390(c)
12,159,780
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.0%
Collateralized Mortgage Obligation Trust (Class B)
2.40% 11/01/18.............................................................................. 1,501 1,411(d,f,h)
Federal Home Loan Mortgage
4.96% 08/01/35.............................................................................. 148,639 115,245(d,f)
Federal Home Loan Mortgage Corp.
4.50% 04/15/13 - 03/15/19................................................................... 243,602 19,356(d,g,h)
5.00% 04/15/14 - 12/01/34................................................................... 1,215,418 219,195(d,g,h)
5.50% 04/15/17 - 06/15/33................................................................... 155,002 20,149(d,g,h)
5.50% 04/15/26.............................................................................. 32,241 33,140
6.76% 12/15/33.............................................................................. 35,255 32,855(h,i)
7.50% 01/15/16.............................................................................. 9,135 9,521(h)
7.50% 07/15/27.............................................................................. 12,039 2,635(d,g,h)
8.00% 04/15/20.............................................................................. 624 658(h)
8.00% 02/01/23 - 07/01/24................................................................... 4,595 1,139(d,g,h)
11.64% 11/15/37............................................................................. 96,671 75,512(d,f)
44.12% 09/25/43............................................................................. 356,491 2,226(d,g,h)
Federal Home Loan Mortgage STRIPS
4.98% 08/01/27.............................................................................. 1,014 854(d,f,h)
Federal National Mortgage Assoc.
3.07% 05/25/37.............................................................................. 2,191 210(d,g,i)
3.62% 10/25/29.............................................................................. 62,474 5,525(d,g,h,i)
4.22% 09/25/42.............................................................................. 219,255 28,846(d,g,h,i)
4.32% 08/25/16.............................................................................. 35,394 2,357(d,g,h,i)
4.50% 05/25/18.............................................................................. 29,460 2,035(d,g,h)
4.75% 11/25/14.............................................................................. 16,453 677(d,g,h)
5.00% 08/25/17 - 02/25/32................................................................... 46,761 3,616(d,g,h)
5.00% 10/25/35.............................................................................. 25,104 21,923
5.50% 03/25/29 - 01/25/33................................................................... 239,022 236,161
8.00% 07/25/14.............................................................................. 7,611 7,685(h)
36.54% 12/25/42............................................................................. 166,926 5,216(d,g,h)
Federal National Mortgage Assoc. (Class 1)
4.50% 09/01/35 - 01/01/36................................................................... 260,089 57,658(d,g)
4.90% 07/01/34.............................................................................. 97,954 74,758(d,f)
5.30% 11/01/34.............................................................................. 83,357 66,151(d,f,h)
Federal National Mortgage Assoc. (Class 2)
5.00% 09/01/33.............................................................................. 83,648 19,221(d,g)
5.50% 12/01/33.............................................................................. 24,532 5,239(d,g)
Federal National Mortgage Assoc. REMIC
4.50% 11/25/13.............................................................................. 28,622 659(d,g,h)
5.00% 10/25/22.............................................................................. 38,343 5,102(d,g,h)
9.18% 03/25/31.............................................................................. 64,006 68,995(h,i)
Federal National Mortgage Assoc. REMIC (Class B)
3.52% 12/25/22.............................................................................. 1,724 1,545(d,f,h)
Federal National Mortgage Assoc. REMIC (Class J)
1080.91% 03/25/22........................................................................... 3 9(d,g,h)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
60
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
---------- ------------
Federal National Mortgage Assoc. REMIC (Class K)
1008.00% 05/25/22........................................................................... $ 10 $ 200(d,g,h)
Federal National Mortgage Assoc. STRIPS (Class 1)
5.02% 10/01/36.............................................................................. 466,978 359,691(d,f)
Federal National Mortgage Assoc. STRIPS (Class 2)
5.00% 08/01/34.............................................................................. 428,970 104,494(d,g)
7.50% 11/01/23.............................................................................. 31,445 9,365(d,g,h)
8.00% 08/01/23 - 07/01/24................................................................... 10,188 2,477(d,g,h)
8.50% 03/01/17 - 07/25/22................................................................... 3,735 825(d,g,h)
9.00% 05/25/22.............................................................................. 1,744 454(d,g,h)
1,624,990
ASSET BACKED -- 0.8%
Bear Stearns Asset Backed Securities Trust (Class A)
2.97% 01/25/34.............................................................................. 8,643 7,762(h,i)
Capital Auto Receivables Asset Trust (Class A)
4.10% 01/15/10.............................................................................. 90,000 89,100(b,d,i)
Capital One Master Trust (Class C)
6.70% 06/15/11.............................................................................. 64,000 64,717(b,h,q)
Carmax Auto Owner Trust
4.35% 03/15/10.............................................................................. 36,488 36,619(h)
Chase Funding Mortgage Loan Asset-Backed Certificates
3.10% 03/25/32.............................................................................. 10,056 9,264(h,i)
Citibank Credit Card Issuance Trust
4.45% 04/07/10.............................................................................. 40,000 40,008(h,q)
Fleet Home Equity Loan Trust (Class A)
2.79% 01/20/33.............................................................................. 15,426 12,870(h,i)
Honda Auto Receivables Owner Trust (Class A)
4.15% 10/15/10.............................................................................. 43,583 43,748(h)
Mid-State Trust
7.54% 07/01/35.............................................................................. 6,280 6,530(h,q)
Peco Energy Transition Trust
6.52% 12/31/10.............................................................................. 29,000 30,982(h)
Residential Asset Mortgage Products, Inc.
2.84% 03/25/34.............................................................................. 3,204 3,084(h,i)
Residential Asset Securities Corp.
3.10% 07/25/32.............................................................................. 4,889 4,447(h,i)
Residential Asset Securities Corp. (Class A)
4.16% 07/25/30.............................................................................. 21,125 21,095(h)
Swift Master Auto Receivables Trust (Class A)
2.92% 06/15/12.............................................................................. 1,000,000 935,000(i)
Wells Fargo Home Equity Trust
3.97% 05/25/34.............................................................................. 17,056 16,418(h)
1,321,644
CORPORATE NOTES -- 3.2%
Abbey National PLC
7.95% 10/26/29.............................................................................. 37,000 40,899(h)
AES Ironwood LLC
8.86% 11/30/25.............................................................................. 109,100 118,373
American Electric Power Company, Inc. (Series D)
5.25% 06/01/15.............................................................................. 64,000 60,405(h)
American International Group, Inc.
5.85% 01/16/18.............................................................................. 45,000 43,585
American Railcar Industries, Inc.
7.50% 03/01/14.............................................................................. 30,000 26,400
Amgen, Inc.
5.85% 06/01/17.............................................................................. 45,000 45,052
Archer-Daniels-Midland Co.
6.45% 01/15/38.............................................................................. 44,000 44,306
Arizona Public Service Co.
6.25% 08/01/16.............................................................................. 20,000 19,267(h)
BAC Capital Trust VI
5.63% 03/08/35.............................................................................. 58,000 48,415(h)
Banco Santander Chile
5.38% 12/09/14.............................................................................. 53,000 51,682(b,h)
Bank of America Corp.
8.00% 12/29/49.............................................................................. 45,000 45,054
Bear Stearns Companies Inc.
5.85% 07/19/10.............................................................................. 30,000 28,950
6.95% 08/10/12.............................................................................. 105,000 105,052
BellSouth Corp.
4.20% 09/15/09.............................................................................. 50,000 50,441(h)
6.55% 06/15/34.............................................................................. 11,000 10,670(h)
Bristol-Myers Squibb Co.
5.88% 11/15/36.............................................................................. 30,000 28,832
British Telecommunications PLC
8.63% 12/15/10.............................................................................. 35,000 38,288(h)
Cadbury Schweppes US Finance LLC
3.88% 10/01/08.............................................................................. 54,000 53,884(b,h)
Capital One Bank
6.50% 06/13/13.............................................................................. 29,000 29,043(h)
Cargill Inc.
5.20% 01/22/13.............................................................................. 64,000 64,563(b)
6.00% 11/27/17.............................................................................. 75,000 75,649(b)
Carolina Power & Light Co.
5.15% 04/01/15.............................................................................. 26,000 26,473(h)
5.70% 04/01/35.............................................................................. 13,000 12,377(h)
6.13% 09/15/33.............................................................................. 13,000 13,103(h)
Chubb Corp.
6.00% 05/11/37.............................................................................. 40,000 35,982
Citigroup Capital
8.30% 12/21/57.............................................................................. 15,000 14,760
Citigroup, Inc.
5.13% 02/14/11.............................................................................. 70,000 70,295
COX Communications, Inc.
7.13% 10/01/12.............................................................................. 20,000 21,147
7.75% 11/01/10.............................................................................. 35,000 37,415
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
61
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
---------- ------------
Credit Suisse
6.00% 02/15/18.............................................................................. 48,000 47,883
CSX Transportation, Inc.
9.75% 06/15/20.............................................................................. 5,000 6,009(h)
CVS Caremark Corp.
5.75% 06/01/17.............................................................................. 61,000 61,722
Daimler Finance North America LLC
4.05% 06/04/08.............................................................................. 38,000 38,014(h)
Diageo Capital PLC
5.20% 01/30/13.............................................................................. 30,000 30,943
Dominion Resources, Inc. (Series B)
6.30% 09/30/66.............................................................................. 120,000 107,998
Dover Corp.
6.50% 02/15/11.............................................................................. 30,000 32,087
DP World Ltd.
6.85% 07/02/37.............................................................................. 100,000 83,156(b)
Duke Energy Carolinas LLC
5.38% 01/01/09.............................................................................. 15,000 15,201
EI Du Pont de Nemours & Co.
4.88% 04/30/14.............................................................................. 30,000 29,988
El Paso Electric Co.
6.00% 05/15/35.............................................................................. 25,000 22,267
Empresa Energetica de Sergipe and Sociedade Anonima de Eletrificaao da Paraiba
10.50% 07/19/13............................................................................. 30,000 32,550(b,h)
Goldman Sachs Group, Inc.
5.95% 01/18/18.............................................................................. 30,000 29,599
6.60% 01/15/12.............................................................................. 110,000 116,723(h)
6.88% 01/15/11.............................................................................. 35,000 37,093
GTE Corp.
7.51% 04/01/09.............................................................................. 38,000 39,268(h)
Hewlett-Packard Co.
5.50% 03/01/18.............................................................................. 44,000 44,901
HSBC Bank USA NA
4.63% 04/01/14.............................................................................. 100,000 96,162
HSBC Capital Funding LP (Series 1)
9.55% 12/31/49.............................................................................. 48,000 51,591(b,h,q)
HSBC Finance Corp.
6.75% 05/15/11.............................................................................. 30,000 31,797
Hydro Quebec
8.50% 12/01/29.............................................................................. 25,000 35,705
IIRSA Norte Finance Ltd.
8.75% 05/30/24.............................................................................. 111,706 124,273(b,h)
ING Capital Funding TR III
8.44% 12/29/49.............................................................................. 50,000 49,174
ING Groep N.V.
5.78% 12/29/49.............................................................................. 50,000 41,106
International Steel Group Inc.
6.50% 04/15/14.............................................................................. 40,000 41,138
John Deere Capital Corp.
4.50% 04/03/13.............................................................................. 15,000 15,083
JP Morgan Chase & Co.
7.00% 11/15/09.............................................................................. 60,000 62,439
JP Morgan Chase Bank
5.88% 06/13/16.............................................................................. 30,000 31,068
Kansas Gas & Electric
5.65% 03/29/21.............................................................................. 18,680 18,070(h)
Lehman Brothers Holdings, Inc.
2.65% 12/23/08.............................................................................. 8,000 7,778(i)
3.98% 10/22/08.............................................................................. 17,000 16,554(i)
5.63% 01/24/13.............................................................................. 30,000 28,970
Marfrig Overseas Ltd.
9.63% 11/16/16.............................................................................. 100,000 95,500(b)
Markel Corp.
7.35% 08/15/34.............................................................................. 18,000 18,568(q)
McDonald's Corp.
5.80% 10/15/17.............................................................................. 30,000 31,220
6.30% 03/01/38.............................................................................. 44,000 44,498
Mediacom LLC/Mediacom Capital Corp.
9.50% 01/15/13.............................................................................. 135,000 124,200(h)
Merck & Company, Inc.
5.75% 11/15/36.............................................................................. 5,000 5,042
Metropolitan Life Global Funding I
4.25% 07/30/09.............................................................................. 60,000 60,614(b)
Midamerican Energy Holdings Co.
6.13% 04/01/36.............................................................................. 50,000 48,327
Mizuho Financial Group Cayman Ltd.
8.38% 12/29/49.............................................................................. 40,000 39,769(q)
Munich Re America Corp. (Series B)
7.45% 12/15/26.............................................................................. 30,000 32,898
Nelnet, Inc.
5.13% 06/01/10.............................................................................. 71,000 68,880(h,q)
NGPL PipeCo LLC
7.12% 12/15/17.............................................................................. 32,000 33,102(b)
Norfolk Southern Corp.
6.00% 04/30/08.............................................................................. 35,000 35,056(h)
Norfolk Southern Railway Co.
9.75% 06/15/20.............................................................................. 17,000 22,580(h)
Northeast Utilities (Series B)
3.30% 06/01/08.............................................................................. 22,000 21,992(h)
NorthWestern Corp.
5.88% 11/01/14.............................................................................. 88,000 88,686(h)
OPTI Canada Inc.
8.25% 12/15/14.............................................................................. 42,000 41,580
Pacific Gas & Electric Co.
5.80% 03/01/37.............................................................................. 30,000 28,219
PanAmSat Corp.
9.00% 08/15/14.............................................................................. 82,000 82,615(h)
Pemex Finance Ltd.
9.03% 02/15/11.............................................................................. 46,200 49,791(h)
Pemex Project Funding Master Trust
6.13% 08/15/08.............................................................................. 2,000 2,013
7.88% 02/01/09.............................................................................. 16,000 16,571
Petrobras International Finance Co.
5.88% 03/01/18.............................................................................. 16,000 15,446
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
62
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
---------- ------------
PNC Preferred Funding Trust I
6.52% 12/31/49.............................................................................. $ 140,000 $ 100,818(b,q)
Public Service Company of Colorado
7.88% 10/01/12.............................................................................. 50,000 56,995
Puget Sound Energy, Inc.
3.36% 06/01/08.............................................................................. 22,000 21,979(h)
5.48% 06/01/35.............................................................................. 38,000 31,850(h)
Puget Sound Energy, Inc. (Series A)
6.97% 06/01/67.............................................................................. 60,000 53,244(q)
Rabobank Capital Funding Trust
5.25% 12/29/49.............................................................................. 60,000 49,834(b,h,q)
Rock-Tenn Co.
8.20% 08/15/11.............................................................................. 80,000 82,000
Royal Bank of Scotland Group PLC
5.00% 10/01/14.............................................................................. 20,000 18,801
Sabine Pass LNG LP
7.50% 11/30/16.............................................................................. 100,000 96,500
Security Benefit Life Insurance
8.75% 05/15/16.............................................................................. 25,000 26,981(b,q)
Sierra Pacific Resources
8.63% 03/15/14.............................................................................. 40,000 42,002
Southern Copper Corp.
7.50% 07/27/35.............................................................................. 20,000 20,478
Sovereign Capital Trust VI
7.91% 06/13/36.............................................................................. 62,000 50,412(q)
Sprint Capital Corp.
7.63% 01/30/11.............................................................................. 94,000 86,950
Standard Chartered Bank Hong Kong Ltd.
4.38% 12/03/14.............................................................................. 70,000 70,129(q)
Stewart Enterprises, Inc.
6.25% 02/15/13.............................................................................. 50,000 46,750(h)
Telecom Italia Capital S.A.
6.20% 07/18/11.............................................................................. 21,000 20,897
Telefonica Emisiones SAU
5.86% 02/04/13.............................................................................. 75,000 75,737
TNK-BP Finance S.A.
6.63% 03/20/17.............................................................................. 100,000 86,500(b)
Transocean, Inc.
6.00% 03/15/18.............................................................................. 45,000 46,075
Tronox Worldwide LLC
9.50% 12/01/12.............................................................................. 65,000 55,575
UBS Preferred Funding Trust I
8.62% 10/29/49.............................................................................. 40,000 39,780
Valspar Corp.
5.63% 05/01/12.............................................................................. 30,000 30,166(q)
Verizon Global Funding Corp.
7.25% 12/01/10.............................................................................. 61,000 65,448
Verizon Pennsylvania, Inc.
8.35% 12/15/30.............................................................................. 20,000 23,037
Wachovia Corp. (Series K)
7.98% 12/31/49.............................................................................. 29,000 28,493
Wal-Mart Stores, Inc.
5.80% 02/15/18.............................................................................. 30,000 31,299
Weatherford International, Inc.
5.95% 06/15/12.............................................................................. 45,000 47,185
Wells Fargo & Co.
5.63% 12/11/17.............................................................................. 15,000 15,385
Westar Energy, Inc.
7.13% 08/01/09.............................................................................. 34,000 35,473(h)
Westlake Chemical Corp.
6.63% 01/15/16.............................................................................. 80,000 70,000
5,220,612
NON-Agency COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.2%
Banc of America Alternative Loan Trust
6.50% 07/25/35.............................................................................. 43,970 41,439(h)
Banc of America Funding Corp.
5.74% 03/20/36.............................................................................. 31,833 33,686(h,i,q)
5.82% 02/20/36.............................................................................. 63,803 60,375(h,q)
Banc of America Mortgage Securities Inc. (Class B)
5.38% 01/25/36.............................................................................. 31,796 23,887(h,i)
Bear Stearns Commercial Mortgage Securities
5.41% 03/11/39.............................................................................. 35,000 34,769(h)
5.48% 10/12/41.............................................................................. 79,000 77,412
5.53% 10/12/41.............................................................................. 79,000 74,869
6.02% 02/14/31.............................................................................. 92,037 92,287(h)
Countrywide Alternative Loan Trust
6.00% 03/25/36.............................................................................. 19,956 1,017(h,q)
Countrywide Alternative Loan Trust (Class B)
6.00% 05/25/36 - 08/25/36................................................................... 34,486 10,354(h,q)
Credit Suisse Mortgage Capital Certificates (Class C)
5.65% 02/25/36.............................................................................. 24,406 15,725(h,q)
Crusade Global Trust (Class A)
2.95% 09/18/34................................................................................ 14,895 14,875(h,i)
CS First Boston Mortgage Securities Corp.
5.25% 08/25/34.............................................................................. 18,435 17,813
5.33% 10/25/35.............................................................................. 39,269 26,318(h,q)
6.84% 07/15/37.............................................................................. 789,596 15,467(b,d,h,q)
DLJ Commercial Mortgage Corp.
6.24% 11/12/31.............................................................................. 169,170 169,487(h)
First Union-Lehman Brothers-Bank of America
6.56% 11/18/35.............................................................................. 4,553 4,541(h)
GMAC Commercial Mortgage Securities, Inc.
6.42% 05/15/35.............................................................................. 249,451 249,344(h)
6.47% 04/15/34.............................................................................. 49,657 50,131(h)
GMAC Commercial Mortgage Securities, Inc. (Class X)
6.73% 12/10/41.............................................................................. 1,236,445 20,050(d,h,q)
Greenwich Capital Commercial Funding Corp.
5.12% 04/10/37.............................................................................. 62,818 62,430(h)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
63
GE STRATEGIC INVESTMENT FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
---------- ------------
GS Mortgage Securities Corp II (Class A)
5.80% 08/10/45.............................................................................. 150,000 150,671
Indymac INDA Mortgage Loan Trust
5.16% 01/25/36.............................................................................. 63,829 41,170(h,q)
Indymac INDA Mortgage Loan Trust (Class B)
5.16% 01/25/36.............................................................................. 63,829 54,696(h,q)
JP Morgan Chase Commercial Mortgage Securities Corp.
1.11% 01/12/39.............................................................................. 1,006,451 26,233(b,h,q)
6.06% 02/15/51.............................................................................. 100,000 92,552
6.20% 02/12/51.............................................................................. 15,000 9,140(b,q)
6.47% 11/15/35.............................................................................. 45,511 47,121(h)
LB-UBS Commercial Mortgage Trust
4.06% 09/15/27.............................................................................. 74,022 72,411(h)
6.71% 01/18/12.............................................................................. 973,238 20,143(d,h,q)
10.04% 01/15/36............................................................................. 542,790 27,728(b,d,h,q)
10.43% 10/15/35............................................................................. 431,075 16,001(b,d,h,q)
11.38% 03/15/36............................................................................. 905,520 21,363(b,d,h,q)
11.58% 02/15/40............................................................................. 879,212 15,751(b,d,h,q)
LB-UBS Commercial Mortgage Trust (Class B)
6.65% 07/14/16.............................................................................. 28,000 28,925(b,h)
LB-UBS Commercial Mortgage Trust (Class F)
6.24% 07/15/40.............................................................................. 30,000 17,551(q)
LB-UBS Commercial Mortgage Trust (Class X)
11.38% 12/15/39............................................................................. 786,149 11,576(b,d,h,q)
MASTR Alternative Loans Trust
5.00% 08/25/18.............................................................................. 56,625 8,644(d,g,h)
6.50% 08/25/34 - 05/25/35................................................................... 136,489 129,527(h)
Merrill Lynch Mortgage Trust (Class A)
5.61% 05/12/39.............................................................................. 80,000 79,697(h)
Merrill Lynch/Countrywide Commercial Mortgage Trust
5.42% 08/12/48.............................................................................. 100,000 87,841
Merrill Lynch/Countrywide Commercial Mortgage Trust (Class A)
5.49% 03/12/51.............................................................................. 200,000 195,663
MLCC Mortgage Investors, Inc.
5.37% 02/25/36................................................................................ 49,996 41,746(h)
Morgan Stanley Capital I
5.28% 12/15/43.............................................................................. 31,000 30,145
5.33% 12/15/43.............................................................................. 31,000 30,154
5.39% 11/12/41.............................................................................. 88,000 70,297
5.69% 04/15/49.............................................................................. 200,000 196,931
5.71% 07/12/44.............................................................................. 100,000 98,485(h)
5.11% 04/15/33.............................................................................. 67,692 68,483(h)
Morgan Stanley Dean Witter Capital I
7.20% 10/15/33.............................................................................. 19,757 20,230(h)
Morgan Stanley Dean Witter Capital I (Class A)
6.54% 02/15/31.............................................................................. 15,297 15,657(h)
Nomura Asset Securities Corp. (Class A)
6.59% 03/15/30.............................................................................. 20,383 20,425(h)
Puma Finance Ltd. (Class A)
2.76% 03/25/34.............................................................................. 39,463 37,352(h,i)
4.63% 10/11/34.............................................................................. 22,345 21,572(h,i)
Residential Accredit Loans, Inc.
6.00% 01/25/36.............................................................................. 155,335 106,139(h,q)
Residential Asset Securitization Trust (Class A)
3.00% 05/25/35.............................................................................. 195,836 143,916(h,i)
Structured Asset Securities Corp. (Class X)
2.16% 02/25/28.............................................................................. 46,908 235
Wachovia Bank Commercial Mortgage Trust
5.74% 06/15/49.............................................................................. 150,000 149,524
Wachovia Bank Commercial Mortgage Trust (Class E)
5.90% 02/15/51.............................................................................. 90,000 56,125(q)
Wells Fargo Mortgage Backed Securities Trust
5.50% 01/25/36.............................................................................. 63,997 43,947(h)
Wells Fargo Mortgage Backed Securities Trust (Class B)
5.50% 03/25/36.............................................................................. 249,197 178,039(h)
3,580,082
Sovereign BONDS - 0.1%
Government of Bahamas
6.63% 05/15/33.............................................................................. 26,000 30,417(b,h,q)
Government of Canada
7.50% 09/15/29.............................................................................. 50,000 66,207
Government of Manitoba Canada
4.90% 12/06/16.............................................................................. 35,000 37,390
Government of Panama
6.70% 01/26/36.............................................................................. 30,000 30,525
164,539
TOTAL BONDS AND NOTES (COST $34,164,560)...................................................... 33,381,277
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
64
NUMBER
OF SHARES VALUE
--------- --------------
EXCHANGE TRADED FUNDS -- 1.1%
Financial Select Sector SPDR Fund............................................................. 13,138 $ 326,742(o)
Industrial Select Sector SPDR Fund............................................................ 36,671 1,371,496(h,o)
TOTAL EXCHANGE TRADED FUNDS (COST $1,482,417)................................................. 1,698,238
OTHER INVESTMENTS -- 0.3%
GEI Investment Fund (COST $541,846)........................................................... 422,640(k)
TOTAL INVESTMENTS IN SECURITIES (COST $140,197,692)........................................... 147,049,524
SHORT-TERM INVESTMENTS -- 13.4%*
GE Money Market Fund Institutional Class 2.08% (COST $21,583,709)............................ 21,583,709(d,p)
TOTAL INVESTMENTS (COST $161,781,401)......................................................... 168,633,233
LIABILITIES IN EXCESS OF OTHER ASSETS, NET -- (4.4)%........................................... (6,969,865)
---------------
NET ASSETS -- 100.0%........................................................................... $ 161,663,368
===============
- ----------
* The financial statement figure presented above for Short-Term Investments
includes collateral received from transactions such as loans of portfolio
securities and amounts held pending settlement of securities transactions.
In evaluating the GE Strategic Investment Fund's net cash level, portfolio
management takes into account certain of the Fund's liabilities in excess
of other assets, such as liabilities associated with loans of portfolio
securities and securities pending settlement, and equitized cash. The
Fund's net cash level is not expected to exceed 10%.
OTHER INFORMATION
The GE Strategic Investment Fund had the following long futures contracts open
at March 31, 2008 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- ----------- ----------- ---------- ------------ --------------
Euro Schatz Fut........................................................... June 2008 29 $ 4,802,209 $ (35,010)
S&P 500 Index Futures..................................................... June 2008 2 662,000 15,739
U.S. Treasury Notes 5Yr. Futures.......................................... June 2008 16 1,827,750 4,948
The GE Strategic Investment Fund had the following short futures contracts open
at March 31, 2008 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- ----------- ---------- ---------- ------------ --------------
DJ Euro Stoxx 50 Index Futures............................................ June 2008 2 $ (112,471) $ (127)
Topix Index Futures....................................................... June 2008 1 (122,118) 301
U.S. Treasury Notes 10 Yr. Futures........................................ June 2008 7 (832,672) 137
-----------
$ (14,012)
===========
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
65
GE Government Securities Fund
(Q & A LOGO)
The GE Government Securities Fund is managed by a team of portfolio managers
that includes Paul M. Colonna, William M. Healey and Chitranjan Sinha. As lead
portfolio manager for the Fund, Mr. Healey chooses the portfolio managers for
the team, oversees the entire team and assigns a portion of the Fund to each
manager, including himself. Each portfolio manager has discretionary authority
over his portion of the Fund. See portfolio managers' biographical information
beginning on page 148.
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,
2008?
A. For the six-month period ended March 31, 2008 the GE Government Securities
Fund returned 7.30% for the Class A shares, 6.73% for the Class B shares,
and 6.93% for the Class C shares. The Lehman Brothers Government Bond
Index, the Fund's benchmark, returned 7.93% and the Fund's Lipper group of
85 Intermediate U.S Government Funds returned an average of 5.83% for the
same period.
Q. REVIEW WHAT HAPPENED IN THE FIXED INCOME MARKET OVER THE SIX-MONTH PERIOD
ENDING MARCH 31, 2008.
A. In a flight to quality set off by the troubled sub-prime mortgage market,
U.S. Treasury yields fell dramatically over the last six-months. The
2-year note yield fell 242 bps to 1.58%, reflecting the Federal Reserves
250 bps reduction in the fed funds rate to 2.25%. The 10-year note yield
dropped 114 bps, muted somewhat by inflation concerns resulting in a yield
curve steepening between 2 and 10-year maturities of 128 bps. Weaker
economic growth, slumping equity prices and fears of impending recession
put pressure on all non-treasury security yield spreads. The yield spread
for the Lehman Brothers Aggregate Bond Index widened by 64 bps as
commercial mortgage-backed securities (CMBS), asset-backed securities
(ABS) and credit sector spreads widened by 229, 258 and 129 bps
respectively. High yield debt spreads widened 380 bps in general while
emerging market debt spreads increased by 130 bps. Away from cutting the
fed funds rate, the Fed took various measures for providing liquidity to
the financial system still reeling from the sub-prime fallout in hopes of
averting a financial collapse and propping up an ailing economy.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. The Fund was well positioned versus the benchmark regarding duration,
yield curve and sector allocation. Fund duration and yield curve
positioning were set up to take advantage of lower rates and a steeper
yield curve, which did occur. Underweighting in agency debt vis-a-vis U.S.
treasuries took advantage of spread widening, which positively impacted
relative return.
[PHOTO OF WILLIAM M. HEALEY]
Pictured to the right:
William M. Healey
66
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 01, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
--------------------------- --------------------- ----------------------
ACTUAL FUND RETURN**
Class A.......................................... 1,000.00 1,072.96 4.94
Class B.......................................... 1,000.00 1,067.26 8.82
Class C.......................................... 1,000.00 1,069.29 8.78
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
Class A.......................................... 1,000.00 1,020.05 4.80
Class B.......................................... 1,000.00 1,016.37 8.57
Class C.......................................... 1,000.00 1,016.42 8.52
- ------------
* Expenses are equal to the Fund's annualized expense ratio of 0.95% for
Class A, 1.70% for Class B and 1.69% for Class C, (from period October 01,
2007 -- March 31, 2008), multiplied by the average account value over the
period, multiplied by 183/366 (to reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: 7.30% for Class A shares, 6.73% for Class B shares and 6.93% for
Class C shares.
67
GE Government Securities Fund
FIVE YEAR TREASURY NOTE YIELD HISTORY
4/1/07 - 3/31/08
[PERFORMANCE GRAPH]
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 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ----- ------
Number of Funds in peer group:............................................................. 85 83 72 54
Peer group average annual total return:..................................................... 5.83% 8.05% 3.64% 5.17%
Lipper categories in peer group: Intermediate U.S. Government
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ------- ------ ------ -----------
GE Government Securities......................................................... 7.30% 10.22% 3.78% 5.35% 16,837
W/load........................................................................... 2.74% 5.54% 2.89% 4.89% 16,121
LB Government Bond Index......................................................... 7.93% 11.43% 4.70% 6.18% 18,218
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ------- ------ ------ -----------
GE Government Securities......................................................... 6.73% 9.35% 2.98% 4.77% 15,934
W/load........................................................................... 3.73% 6.35% 2.98% 4.77%
LB Government Bond Index......................................................... 7.93% 11.43% 4.70% 6.18% 18,218
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ------ ----- --------- ----------
GE Government Securities........................................................ 6.93% 9.55% 3.05% 4.99% 15,129
W/load.......................................................................... 5.93% 8.55% 3.05% 4.99%
LB Government Bond Index........................................................ 7.93% 11.43% 4.70% 6.18% 17,113
[PERFORMANCE LEGEND]
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 1 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
GE GOVERNMENT SECURITIES FUND March 31, 2008 (unaudited)
Schedule of Investments
GE GOVERNMENT SECURITIES FUND
Portfolio Composition as a % of the Market Value of $163,097 (in thousands) as
of March 31, 2008
[PIE CHART]
PRINCIPAL
AMOUNT VALUE
-------------- -------------
BONDS AND NOTES -- 100.0%
U.S. TREASURIES -- 64.3%
U.S. Treasury Bonds
4.75% 02/15/37.......................................................................... $ 7,822,000 $ 8,395,353 (h)
U.S. Treasury Notes
3.63% 12/31/12.......................................................................... 9,562,000 10,081,789 (j)
4.25% 11/15/17.......................................................................... 8,188,000 8,731,764 (j)
4.50% 03/31/09.......................................................................... 8,465,000 8,714,633 (h)
4.63% 11/15/09.......................................................................... 12,596,000 13,213,960 (h,j)
4.75% 05/31/12 - 08/15/17............................................................... 7,063,000 7,802,319 (h,j)
4.88% 05/31/09 - 02/15/12............................................................... 20,760,000 21,586,507 (h)
78,526,325
FEDERAL AGENCIES -- 18.3%
Federal Home Loan Mortgage Corp.
4.13% 12/21/12.......................................................................... 5,300,000 5,508,757
4.88% 02/09/10.......................................................................... 3,040,000 3,183,452 (h)
5.00% 04/18/17.......................................................................... 2,500,000 2,669,178
5.25% 07/18/11.......................................................................... 10,150,000 10,936,806 (h)
22,298,193
AGENCY MORTGAGE BACKED -- 17.3%
Federal Home Loan Mortgage Corp.
6.50% 04/01/31.......................................................................... 2,671 2,789 (h)
7.00% 12/01/26 - 02/01/30............................................................... 3,139 3,321 (h)
7.50% 02/01/09 - 04/01/12............................................................... 191,701 198,493 (h)
Federal National Mortgage Assoc.
5.50% 04/01/38.......................................................................... 20,000,000 20,196,875
6.00% 06/01/35.......................................................................... 70,476 72,323 (h)
7.50% 12/01/23.......................................................................... 78,097 82,919 (h)
9.00% 06/01/09 - 07/01/21............................................................... 20,656 22,249 (h)
5.00% TBA............................................................................... 158,000 159,481 (c)
Government National Mortgage Assoc.
8.50% 05/15/21 - 03/15/23............................................................... 12,593 13,906 (h)
9.00% 07/15/16.......................................................................... 301,351 324,397 (h)
21,076,753
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1%
Morgan Stanley Dean Witter Capital I (Class A)
6.54% 02/15/31.......................................................................... 119,324 122,128 (h)
TOTAL BONDS AND NOTES (COST $118,106,029) 122,023,399
SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 10.2%
ASSET BACKED -- 4.5%
Accredited Mortgage Loan Trust (Class A)
2.90% 07/25/34.......................................................................... 231,061 145,018 (i)
Bear Stearns Asset Backed Securities Trust (Class A)
2.97% 01/25/34.......................................................................... 5,612 5,040 (i)
Option One Mortgage Loan Trust (Class A)
3.44% 02/25/33.......................................................................... 371,544 304,066 (i)
Providian Gateway Master Trust (Class A)
3.18% 07/15/11.......................................................................... 800,000 799,000 (b,i,q)
Residential Asset Mortgage Products, Inc.
3.26% 12/25/33......................................................................... 5,677 5,671 (i)
Residential Asset Securities Corp. (Class A)
3.24% 11/25/33......................................................................... 557,035 460,100 (i)
Swift Master Auto Receivables Trust (Class A)
2.92% 06/15/12......................................................................... 4,000,000 3,740,000 (i)
5,458,895
CORPORATE NOTES -- 1.6%
Prudential Financial, Inc.
3.02% 06/13/08......................................................................... 2,000,000 1,997,824 (i)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 4.1%
Banc of America Large Loan Inc.
3.03% 03/15/22......................................................................... 1,500,000 1,402,663 (b,d,i)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
69
GE GOVERNMENT SECURITIES FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
-------------- -------------
Bear Stearns Asset Backed Securities Trust (Class A)
3.39% 07/25/36......................................................................... 1,418,267 1,326,578 (i)
Crusade Global Trust (Class A)
2.95% 09/18/34......................................................................... 373,844 373,347 (i)
Lehman Brothers Floating Rate Commercial Mortgage Trust
2.99% 10/15/17......................................................................... 186,356 174,498 (b,i)
Nomura Asset Acceptance Corp.
2.73% 03/25/37......................................................................... 1,538,413 1,401,890 (i)
Residential Accredit Loans, Inc.
2.90% 03/25/34......................................................................... 243,239 232,186 (i)
Thornburg Mortgage Securities Trust (Class A)
3.28% 04/25/43......................................................................... 153,225 149,270 (i)
5,060,432
TOTAL SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN
(COST $13,391,580) 12,517,151
OTHER INVESTMENTS -- 0.5%
OTHER INVESTMENTS -- 0.3%
GEI Investment Fund...................................................................... 404,216 (k)
OTHER INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 0.2%
GEI Investment Fund...................................................................... 239,731 (k)
TOTAL OTHER INVESTMENTS (COST $825,573).................................................. 643,947
TOTAL INVESTMENTS IN SECURITIES (COST $132,323,182)...................................... 135,184,497
SHORT-TERM INVESTMENTS -- 22.9%
SHORT-TERM INVESTMENTS -- 16.1%
GE Money Market Fund Institutional Class 2.08%......................................... 19,651,748 (d,p)
SHORT-TERM SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN - 6.8%
GE Money Market Fund Institutional Class 2.08%......................................... 8,260,554 (d,p)
TOTAL SHORT-TERM INVESTMENTS (COST $27,912,302).......................................... 27,912,302
TOTAL INVESTMENTS (COST $160,235,484).................................................... 163,096,799
LIABILITIES IN EXCESS OF OTHER ASSETS, NET -- (33.6)%..................................... (40,975,801)
-------------
NET ASSETS -- 100.0%...................................................................... $ 122,120,998
=============
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
70
GE GOVERNMENT SECURITIES FUND March 31, 2008 (unaudited)
Schedule of Investments
OTHER INFORMATION
The GE Government Securities Fund had the following long futures contracts open
at March 31, 2008 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- ----------- ---------- --------- ------------ --------------
Euro Schatz Future............................................... June 2008 90 $ 14,903,406 $ (108,482)
U.S. Treasury Notes 5 Yr. Futures................................ June 2008 113 12,908,484 8,275
U.S. Treasury Notes 10 Yr. Futures............................... June 2008 47 5,590,797 21,261
The GE Government Securities Fund had the following short futures contracts open
at March 31, 2008 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- ----------- --------------- --------- ------------ --------------
U.S. Treasury Notes 2 Yr. Futures............................... June 2008 66 $(14,167,313) $ 15,864
------------
$ (63,082)
============
See Notes to Schedules of Investments on page xxx and Notes to Financial
Statements on page xxx.
71
GE Short-Term Government Fund
[Q&A LOGO]
The GE Short-Term Government Fund is managed by a team of portfolio managers
that includes Paul M. Colonna, William M. Healey, Mark H. Johnson and Chitranjan
Sinha. As lead portfolio manager for the Fund, Mr. Colonna chooses the portfolio
managers for the team, oversees the entire team and assigns a portion of the
Fund to each manager, including himself. Each portfolio manager has
discretionary authority over his portion of the Fund. See portfolio managers'
biographical information beginning on page 148.
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,
2008?
A. For the six-month period ended March 31, 2008, the GE Short-Term
Government Fund returned 3.50% for the Class A shares, 3.19% for the Class
B shares, 3.12% for the Class C shares, 0.82% for the Class R shares and
3.64% for the Class Y shares. The Lehman Brothers 1-3 Year Government Bond
Index, the Fund's benchmark, returned 5.34% and the Fund's Lipper peer
group of 87 Short Term U.S. Government Funds returned an average of 3.26%
for the same period
Q. REVIEW WHAT HAPPENED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDING MARCH 31, 2008.
A. In a flight to quality set off by the troubled sub-prime mortgage market,
U.S. Treasury yields fell dramatically over the last six-months. The
2-year note yield fell 242 bps to 1.58%, reflecting the Federal Reserves
250 bps reduction in the fed funds rate to 2.25%. The 10-year note yield
dropped 114 bps, muted somewhat by inflation concerns resulting in a yield
curve steepening between 2 and 10-year maturities of 128 bps. Weaker
economic growth, slumping equity prices and fears of impending recession
put pressure on all non-treasury security yield spreads. The yield spread
for the Lehman Brothers Aggregate Bond Index widened by 64 bps as
commercial mortgage-backed securities (CMBS), asset-backed securities
(ABS) and credit sector spreads widened by 229, 258 and 129 bps
respectively. High yield debt spreads widened 380 bps in general while
emerging market debt spreads increased by 130 bps. Away from cutting the
fed funds rate, the Fed took various measures for providing liquidity to
the financial system still reeling from the sub-prime fallout in hopes of
averting a financial collapse and propping up an ailing economy.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. The exposure to mortgage-backed securities hurt relative performance
during the period as yield spreads versus government securities widened.
Short-term holdings in predominantly AAA-rated ABS securities backed by
sub-prime collateral experienced unexpected price deterioration, which
lowered relative return versus the benchmark.
[PHOTO OF PAUL COLONNA]
Pictured to the right: Paul M. Colonna
72
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 01, 2007 -- MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD (DURING THE PERIOD ($)*
--------------------------- -------------------- -----------------------
ACTUAL FUND RETURN**
Class A............................................ 1,000.00 1,035.11 4.07
Class B............................................ 1,000.00 1,032.03 7.11
Class C............................................ 1,000.00 1,031.24 7.87
Class R............................................ 1,000.00 1008.15 5.17
Class Y............................................ 1,000.00 1,036.46 2.80
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
Class A............................................ 1,000.00 1,020.78 4.04
Class B............................................ 1,000.00 1,017.84 7.06
Class C............................................ 1,000.00 1,017.10 7.82
Class R............................................ 1,000.00 1,019.66 5.23
Class Y............................................ 1,000.00 1,022.01 2.78
- ------------
* Expenses are equal to the Fund's annualized expense ratio of 0.80% for
Class A, 1.40% for Class B, 1.55% for Class C, 1.03% for Class R, and
0.55% for Class Y (from period October 01, 2007 -- March 31, 2008),
multiplied by the average account value over the period, multiplied by
183/366 (to reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: 3.50% for Class A shares, 3.19% for Class B shares, 3.12% for
Class C shares, since inception of 0.82% for Class R shares and 3.64% for
Class Y shares.
73
GE Short-Term Government Fund
TWO YEAR TREASURY NOTE YIELD HISTORY
4/1/07 - 3/31/08
[PERFORMANCE GRAPH]
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 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ----- -----
Number of Funds in peer group:.............................................................. 87 86 74 50
Peer group average annual total return:...................................................... 3.26% 5.64% 2.76% 4.23%
Lipper categories in peer group: Short term U.S. Government Bond
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ----- ----------
GE Short-Term Government........................................................... 3.50% 6.06% 2.97% 4.43% 15,417
W/load............................................................................. 0.92% 3.41% 2.44% 4.16% 15,031
LB 1-3 Year Government Bond Index.................................................. 5.34% 8.74% 3.65% 4.99% 16,278
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ----- ----------
GE Short-Term Government........................................................... 3.19% 5.43% 2.35% 4.05% 14,867
W/load............................................................................. 0.19% 2.43% 2.35% 4.05%
LB 1-3 Year Government Bond Index.................................................. 5.34% 8.74% 3.65% 4.99% 16,278
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ----- ----- --------- ----------
GE Short-Term Government.......................................................... 3.12% 5.27% 2.20% 3.59% 13,499
W/load............................................................................ 2.12% 4.27% 2.20% 3.59%
LB 1-3 Year Government Bond Index................................................. 5.34% 8.74% 3.65% 4.95% 15,074
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
----- --------- ------------ ----------
GE Short-Term Government.......................................................... 0.10% 0.82% 01/29/08 10,071
LB 1-3 Year Government Bond Index................................................. 0.30% 1.25% 10,125
74
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ------ ----- ---- ----------
GE Short-Term Government............................................................ 3.64% 6.33% 3.22% 4.66% 15,767
LB 1-3 Year Government Bond Index................................................... 5.34% 8.74% 3.65% 4.99% 16,278
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 1 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
GE SHORT-TERM GOVERNMENT FUND March 31, 2008 (unaudited)
GE Short-Term Government Fund
Portfolio Composition as a % of Market Value of $114,140 (in thousands) as of
March 31, 2008
[PIE CHART]
PRINCIPAL
AMOUNT VALUE
-------------- --------------
BONDS AND NOTES -- 92.9%
U.S. TREASURIES -- 13.5%
U.S. Treasury Notes
3.63% 01/15/10........................................................................... $ 1,000,000 $ 1,036,040(j)
4.63% 10/31/11........................................................................... 3,080,000 3,356,646(j)
4.75% 02/15/10........................................................................... 910,000 963,089
4.88% 05/31/08 - 08/15/09................................................................ 8,270,000 8,321,749(j)
13,677,524
FEDERAL AGENCIES -- 38.2%
Federal Home Loan Mortgage Corp
3.25% 02/25/11........................................................................... 38,000,000 38,723,877
AGENCY MORTGAGE BACKED -- 12.2%
Federal Home Loan Mortgage Corp.
6.00% 12/01/08 - 11/01/21................................................................ 619,141 637,097(h)
6.50% 05/01/13........................................................................... 47,638 49,242(h)
7.00% 02/01/12 - 04/01/36................................................................ 258,518 272,232(h)
7.50% 01/01/16 - 08/01/30................................................................ 276,793 293,827(h)
8.50% 10/01/10 - 11/01/20................................................................ 113,489 122,245(h)
8.75% 08/01/08........................................................................... 1,762 1,782(h)
Federal National Mortgage Assoc.
4.03% 06/01/33........................................................................... 315,996 319,807(h,i)
4.12% 07/01/33........................................................................... 419,637 421,617(h,i)
4.41% 05/01/33........................................................................... 273,940 274,403(h,i)
5.66% 05/01/37........................................................................... 1,889,912 1,939,662(h,i)
6.00% 01/01/12 - 04/01/33................................................................ 488,447 503,789(h)
6.25% 06/01/33........................................................................... 63,928 65,167(h,i)
6.50% 05/01/17 - 05/01/33................................................................ 459,742 479,130(h)
6.63% 12/01/32........................................................................... 74,399 75,658(h,i)
6.91% 06/01/33........................................................................... 70,502 71,658(h,i)
7.00% 03/01/17 - 04/01/36................................................................ 1,162,040 1,224,900(h)
7.02% 07/01/33........................................................................... 23,182 23,739(h,i)
7.50% 06/01/11 - 05/01/34................................................................ 1,317,188 1,412,582(h)
8.00% 03/01/22 - 11/01/33................................................................ 191,418 204,201(h)
8.50% 02/01/18 - 07/01/31................................................................ 467,066 509,826(h)
9.00% 08/01/10 - 03/01/31................................................................ 560,132 617,643(h)
9.50% 09/01/21........................................................................... 63,735 71,005(h)
9.75% 02/01/21........................................................................... 94,049 109,604(h)
Government National Mortgage Assoc.
6.00% 06/15/25 - 07/15/35................................................................ 490,520 507,669(h)
6.50% 09/15/16 - 09/15/35................................................................ 1,353,216 1,411,631(h)
7.00% 12/15/18 - 05/15/32................................................................ 268,572 284,461(h)
7.50% 02/15/09 - 01/15/25................................................................ 308,345 326,101(h)
8.00% 07/15/17........................................................................... 97,545 106,184(h)
9.00% 08/15/09 - 12/15/09................................................................ 37,810 37,996(h)
9.50% 12/15/09........................................................................... 4,783 4,918(h)
12,379,776
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 28.1%
Federal Home Loan Mortgage Corp.
3.25% 07/15/23........................................................................... 240,780 240,472(h)
5.00% 11/15/12........................................................................... 61,147 210(d,g,h)
5.00% 12/15/20 - 11/15/22................................................................ 914,894 920,249(h)
5.50% 04/15/26 - 10/15/29................................................................ 13,455,997 13,767,512(h)
6.00% 02/15/27........................................................................... 2,637,456 2,709,790
6.50% 02/15/14........................................................................... 606,599 72,901(d,g,h)
8.00% 01/15/34........................................................................... 185,140 190,264(h)
Federal National Mortgage Assoc.
5.00% 08/25/29........................................................................... 282,922 282,609(h)
5.50% 06/25/25 - 12/25/29................................................................ 7,793,693 7,995,327(h)
6.25% 04/25/33........................................................................... 1,319,192 1,354,103(h)
16.58% 07/25/44.......................................................................... 3,781,904 100,661(d,g,h)
23.67% 05/25/18.......................................................................... 17,318,415 61,138(d,g,h,i)
Federal National Mortgage Assoc. REMIC
5.50% 02/25/31........................................................................... 829,060 830,508(h)
28,525,744
ASSET BACKED -- 0.1%
Security National Asset Sec Series Trust (Class A)
6.36% 12/25/35........................................................................... 81,255 79,223(b,h,q)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.8%
Bank of America Alternative Loan Trust (Class 4)
6.50% 06/25/35........................................................................... 313,424 288,182(h)
LB Commercial Conduit Mortgage Trust (Class B)
6.36% 10/15/35........................................................................... 500,000 501,811(h)
789,993
TOTAL BONDS AND NOTES (COST $93,355,419).... 94,176,137
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
76
GE SHORT-TERM GOVERNMENT FUND March 31, 2008 (unaudited)
GE Short-Term Government Fund
PRINCIPAL
AMOUNT VALUE
------------ -------------
SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 11.5%
ASSET BACKED -- 6.9%
Countrywide Asset-Backed Certificates
2.71% 06/25/35............................................................................ $ 410,686 $ 360,528 (i)
Discover Card Master Trust I (Class A)
2.84% 05/15/11............................................................................ 500,000 497,190 (i)
GSAMP Trust
2.71% 05/25/36............................................................................ 661,913 595,721 (b,i)
2.75% 12/25/35............................................................................ 436,399 426,430 (i)
Nissan Auto Lease Trust
2.89% 02/15/13............................................................................ 1,000,000 972,188 (i)
Providian Master Note Trust (Class A)
2.85% 01/15/13............................................................................ 2,000,000 1,987,812 (b,i)
Residential Asset Securities Corp.
2.85% 01/25/36............................................................................ 1,284,621 1,123,040 (i)
Residential Asset Securities Corp. (Class A)
3.24% 11/25/33............................................................................ 111,407 92,020 (i)
Superior Wholesale Inventory Financing Trust (Class A)
3.00% 06/15/10............................................................................ 1,000,000 996,847 (i)
7,051,776
CORPORATE NOTES -- 1.9%
Countrywide Financial Corp.
3.24% 09/02/08............................................................................ 2,000,000 1,937,566 (i)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.7%
Banc of America Large Loan Inc.
3.03% 03/15/22............................................................................ 500,000 467,554 (b,d,i)
Crusade Global Trust (Class A)
2.95% 09/18/34............................................................................ 157,419 157,209 (i)
JP Morgan Alternative Loan Trust
2.66% 08/25/36............................................................................ 456,341 453,808 (i)
Nomura Asset Acceptance Corp.
2.73% 03/25/37............................................................................ 769,206 700,945 (i)
Residential Accredit Loans, Inc.
2.78% 07/25/36............................................................................ 1,293,150 831,721 (i)
2.90% 03/25/34............................................................................ 100,770 96,191 (i)
2,707,428
TOTAL SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN
(COST $12,685,136)....................................................................... 11,696,770
OTHER INVESTMENTS -- 0.1%
OTHER INVESTMENTS -- 0.1%
GEI Investment Fund........................................................................ 114,342 (k)
OTHER INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 0.0%*
GEI Investment Fund ....................................................................... 35,256 (k)
TOTAL OTHER INVESTMENTS (COST $191,792).................................................... 149,598
TOTAL INVESTMENT IN SECURITIES (COST $106,232,347)......................................... 106,022,505
SHORT-TERM INVESTMENTS -- 8.0%
SHORT-TERM INVESTMENTS -- 7.0%
GE Money Market Fund Institutional Class 2.08%............................................. 7,110,458 (d,p)
SHORT-TERM SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 1.0%
GE Money Market Fund Institutional Class 2.08%............................................. 1,007,092 (d,p)
TOTAL SHORT-TERM INVESTMENTS (COST $8,117,551)............................................. 8,117,550
TOTAL INVESTMENTS (COST $114,349,898)...................................................... 114,140,055
LIABILITIES IN EXCESS OF OTHER ASSETS, NET -- (12.5)%...................................... (12,641,352)
-------------
NET ASSETS -- 100.0%....................................................................... $ 101,498,703
=============
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
77
GE TAX-EXEMPT FUND
[Q&A LOGO]
The GE Tax-Exempt Fund is managed by Michael J. Caufield. See portfolio
managers' biographical information beginning on page 148.
Q. HOW DID THE GE TAX-EXEMPT INCOME FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2008?
A. For the six-month period ended March 31, 2008, the GE Tax-Exempt Fund
returned 1.56% for the Class A shares, 1.08% for the Class B shares, 1.08%
for the Class C shares and 1.63% for the Class Y shares. The Lehman
Brothers 10 year Municipal Bond Index, the Fund's benchmark, returned
2.06%, and the Lipper peer group consisting of 164 Intermediate Municipal
Bond Funds gained an average of 1.38% for the same period.
Q. WHAT WERE THE PRIMARY DRIVERS BEHIND FUND PERFORMANCE?
A. Over the past six-months, municipal market performance was driven by
unprecedented interest rate volatility related to the collapse of the
sub-prime mortgage sector. Municipal values were adversely affected by a
variety of factors, which were more technical rather than fundamental in
nature, as the unraveling of the short-term municipal auction rate and the
variable rate demand markets in mid- February, caused a shift in dealer
capital from the fixed rate market to support the floating rate market. As
levered investors sought liquidity to unwind uneconomic trades, there was
insufficient liquidity to meet the selling needs of such investors, which
caused prices to be driven lower. The forced liquidation by several
one-strategy hedge funds also drove bid ask spreads to all time wide
relationships. The uncertainty as to the extent of hedge fund liquidation
as well as a growing new issue calendar, kept many traditional investors
on the sideline.
The Fund was able to provide relatively stable returns throughout this
most turbulent period. The Fund's shorter duration and defensive coupon
structure served it well during the first quarter of 2008. During the
market's free fall in February, the Fund outperformed the benchmark by
approximately 100 basis points. For the quarter, the Fund returned 0.42%,
outperforming the Lehman 10 year Index by over 10 bps.
Q. WHAT HAPPENED IN THE U.S. ECONOMY DURING THE SIX-MONTH PERIOD ENDED MARCH
31, 2008 AND HOW WAS THE PORTFOLIO POSITIONED WITH RESPECT TO SUCH
ECONOMIC CONDITIONS?
A. An element of uncertainty that contributed to a volatile interest rate
environment throughout 2007, continued to plague the market through the
first quarter of 2008. Inflationary concerns fueled by rising commodity
and energy prices as well a slowdown in the housing sector, contributed to
a steeper municipal curve, widening credit spreads and several Federal
Reserve rate cuts. In addition, the municipal market suffered, with other
markets, the contagion of the sub prime housing market. The exposure of
municipal bond insurers in the asset backed market led to concerns
regarding the claims paying ability of monoline bond insurers, who
guarantee about one-half of the $2.5 trillion outstanding municipal debt.
When the rating agencies acted to reassess the capital adequacy of all
monoline insurers, a temporary loss of confidence occurred in the sector,
having a dramatic affect on trading relationships between the insured
credits and the benchmark yield curve. The Fund, with a significant market
underweight
[PHOTO OF MICHAEL J. CAUFIELD]
Pictured to the right: Michael J. Caufield
78
GE Tax-Exempt Fund
(-14%) in the insured sector, performed well during this unstable period.
The Fund's moderate duration, high credit quality and a strong income
component were all notable return contributors during the past six-months
of unprecedented volatility. The Fund lagged the benchmark index primarily
due to its healthcare component, which performed poorly during the fourth
quarter of 2007, but turned in a strong quarter during early 2008 to
narrow the Fund's variance with its benchmark index.
Q. WHAT HAS BEEN THE INVESTMENT STRATEGY OF THE FUND OVER THE PAST
SIX-MONTHS?
A. On balance, our strategy remained consistent with our long-term
philosophy, which is the reliance on a strong income component, high
credit quality and the maximization of income exempt from federal taxes.
Sound credit principles continue to form the foundation of our process,
the average credit quality of the Fund portfolio as a result, remained at
the Aa1 level. While we have utilized our in-house research expertise to
enhance income, we have limited our high yield credit exposure to less
than 5% of our holdings. Fund duration continued to be managed within a
narrow band, ranging from 4.75 -- 5.25 years, insulating the Fund to some
degree from the significant interest rate volatility experienced in the
last three months.
Our long-term strategy continue to emphasize current income to rank it
favorably among its peer group in terms of income. The Fund's adherence to
a disciplined investment process, emphasizing credit quality, maximization
of tax-exempt income and capital preservation, while limiting capital
gains, has contributed to consistent returns over several interest rate
cycles.
79
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
--------------------------- ---------------------- ----------------------
ACTUAL FUND RETURN**
Class A............................................ 1,000.00 1,015.56 4.39
Class B............................................ 1,000.00 1,010.83 8.16
Class C............................................ 1,000.00 1,010.81 8.15
Class Y............................................ 1,000.00 1,016.34 3.08
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
Class A............................................ 1,000.00 1,020.44 4.39
Class B............................................ 1,000.00 1,016.76 8.17
Class C............................................ 1,000.00 1,016.76 8.17
Class Y............................................ 1,000.00 1,021.71 3.08
- ------------
* 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 01, 2007 -- March 31, 2008), multiplied by the
average account value over the period, multiplied by 183/366 (to reflect
the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: 1.56% for Class A shares, 1.08% for Class B shares, 1.08% for
Class C shares, and 1.63% for Class Y shares.
80
GE Tax-Exempt Fund
QUALITY RATINGS AS OF MARCH 31, 2008
as a % of Market Value
MOODY'S/S&P/ PERCENTAGE OF
FITCH RATING* MARKET VALUE
- ------------- -------------
Aaa/AAA..................................................... 69.00%
Aa/AA....................................................... 22.43%
A/A......................................................... 4.35%
Below A..................................................... 2.87%
Ba/BB and lower............................................. 1.35%
----------
Peer group average annual total return:..................... 100.00%
----------
- ------------
* Moody's Investors Services Inc, Standard & Poor's and Fitch are nationally
recognized statistical rating organizations.
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 obligations.
LIPPER PERFORMANCE COMPARISON
Intermediate Municipal Debt Peer Group
Based on average annual total returns for the periods ended 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds in peer group:................................................................ 164 158 120 76
----- ----- ----- -----
Peer group average annual total return:........................................................ 1.39% 2.61% 2.87% 4.04%
----- ----- ----- -----
Lipper categories in peer group: Intermediate Municipal Debt
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------- ------ ----- ----- ----------
GE Tax-Exempt..................................................................... 1.56% 2.44% 2.56% 3.91% 14,670
W/load............................................................................ (2.76)% (1.91)% 1.67% 3.46% 14,047
LB 10-Year Muni Index............................................................. 2.06% 3.83% 4.12% 5.14% 16,506
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------- ------ ----- ----- ----------
GE Tax-Exempt..................................................................... 1.08% 1.67% 1.77% 3.32% 13,864
W/load............................................................................ (1.92)% (1.33)% 1.77% 3.32%
LB 10-Year Muni Index............................................................. 2.06% 3.83% 4.12% 5.14% 16,506
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
------ ------ ----- --------- ----------
GE Tax-Exempt....................................................................... 1.08% 1.67% 1.79% 3.60% 13,511
W/load.............................................................................. 0.08% 0.67% 1.79% 3.60%
LB 10-Year Muni Index............................................................... 2.06% 3.83% 4.12% 5.52% 15,795
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ------ ----- ----- -----------
GE Tax-Exempt........................................................................ 1.63% 2.73% 2.81% 4.64% 15,746
LB 10-Year Muni Index................................................................ 2.06% 3.83% 4.12% 5.14% 16,506
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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.
81
GE TAX-EXEMPT FUND March 31, 2008 (unaudited)
Schedule of Investments
GE TAX-EXEMPT FUND
Portfolio Composition as a % of Market Value of $29,908
(in thousands) as of March 31, 2008
[PIE CHART]
PRINCIPAL
AMOUNT VALUE
------------ --------------
MUNICIPAL BONDS AND NOTES -- 99.2%
ARIZONA -- 2.6%
City of Scottsdale AZ
4.00% 07/01/14.............................................................................. $ 750,000 $ 785,018
ARKANSAS -- 1.2%
Arkansas Housing Development Agency
8.38% 07/01/11.............................................................................. 315,000 369,986(l)
CALIFORNIA -- 6.2%
City of San Diego CA
8.88% 02/01/11.............................................................................. 110,000 121,305(l)
Los Angeles Department of Water & Power (Series A) (AMBAC Insured)
5.00% 07/01/37.............................................................................. 1,000,000 1,000,660(n)
Sacramento Municipal Utility District
6.80% 10/01/19.............................................................................. 48,000 55,913(l)
9.00% 04/01/13.............................................................................. 600,000 688,716(l)
1,866,594
COLORADO -- 1.0%
City of Colorado Springs Co.
8.50% 11/15/11.............................................................................. 65,000 73,466(l)
Denver City & County CO
7.00% 08/01/10.............................................................................. 210,000 224,144(l)
297,610
CONNECTICUT -- 10.0%
City of New Haven CT (AMBAC Insured)
5.38% 12/01/12.............................................................................. 1,000,000 1,089,790(n)
Connecticut State Health & Educational Facility Authority
7.00% 07/01/12.............................................................................. 330,000 358,185(l)
South Central Regional Water Authority Water System Revenue (Series A) (MBIA Insured)
5.00% 08/01/26.............................................................................. 1,500,000 1,522,365(n)
2,970,340
FLORIDA -- 6.8%
City of Gainesville FL
8.13% 10/01/14.............................................................................. 145,000 165,745(l)
County of Sarasota FL (Series A) (FGIC Insured)
5.00% 10/01/24.............................................................................. 500,000 510,025(n)
Jacksonville Health Facilities Authority
11.50% 10/01/12............................................................................. 200,000 271,256(l)
North Broward Hospital District
5.25% 01/15/12.............................................................................. 740,000 799,570(m)
State of Florida
10.00% 07/01/14............................................................................. 235,000 295,129(l)
2,041,725
GEORGIA -- 3.5%
Columbus Medical Center Hospital Authority
7.75% 07/01/10.............................................................................. 140,000 149,295(l)
Metropolitan Atlanta Rapid Transit Authority
7.00% 07/01/11.............................................................................. 435,000 477,774(l)
Private Colleges & Universities Authority (Series A) 6.00% 06/01/11.......................... 390,000 407,550
1,034,619
HAWAII -- 1.9%
State of Hawaii (FSA Insured)
5.75% 02/01/14.............................................................................. 500,000 566,335(n)
ILLINOIS -- 1.8%
Chicago Metropolitan Water Reclamation District-Greater Chicago (Series D)
5.00% 12/01/10.............................................................................. 500,000 532,035
INDIANA -- 3.1%
Indiana Toll Road Commission
9.00% 01/01/15.............................................................................. 580,000 719,647(l)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
82
GE TAX EXEMPT FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
------------ --------------
Purdue University (Series P)
5.25% 07/01/11.............................................................................. $ 200,000 $ 215,564
935,211
IOWA -- 1.8%
Muscatine IA
9.70% 01/01/13.............................................................................. 485,000 546,479(l)
MAINE -- 1.8%
University of Maine (FSA Insured)
5.38% 03/01/12.............................................................................. 500,000 547,685(n)
MARYLAND -- 1.9%
County of Prince Georges MD (FSA Insured)
5.50% 05/15/12.............................................................................. 500,000 552,300(n)
MASSACHUSETTS -- 2.7%
Commonwealth of Massachusetts (Series A) (FSA Insured)
5.25% 12/15/12.............................................................................. 500,000 551,615(n)
Massachusetts Port Authority
13.00% 07/01/13............................................................................. 200,000 255,316(l)
806,931
MICHIGAN -- 2.4%
Detroit MI (Series A) (FSA Insured)
5.25% 07/01/22.............................................................................. 500,000 538,550(n)
Michigan State Hospital Finance Authority
9.00% 05/01/08.............................................................................. 175,000 176,036(l)
714,586
MINNESOTA -- 2.0%
State of Minnesota
5.00% 08/01/18.............................................................................. 450,000 493,079
Western Minnesota Municipal Power Agency
6.63% 01/01/16.............................................................................. 100,000 114,773(l)
607,852
MISSISSIPPI -- 1.9%
State of Mississippi
5.50% 09/01/14.............................................................................. 500,000 562,820
NEW JERSEY -- 6.2%
Atlantic County Improvement Authority (MBIA Insured)
7.40% 07/01/16.............................................................................. 175,000 208,705(l,n)
Atlantic County Improvement Authority (Series A) (AMBAC Insured)
7.40% 03/01/12.............................................................................. 235,000 258,874(l,n)
New Jersey St. Transit Corporation (AMBAC Insured)
5.50% 09/15/11.............................................................................. 500,000 539,915(n)
New Jersey State Turnpike Authority (AMBAC Insured)
6.50% 01/01/16.............................................................................. 40,000 46,642(n)
6.50% 01/01/16.............................................................................. 210,000 241,668(l,n)
New Jersey Transportation Trust Fund Authority (Series C) (FSA Insured)
5.75% 12/15/12.............................................................................. 500,000 561,110(n)
1,856,914
NEW YORK -- 6.7%
City of New York
5.13% 12/01/22.............................................................................. 1,000,000 1,037,370
Erie County Water Authority (Series A) (AMBAC Insured)
6.00% 12/01/08.............................................................................. 135,000 138,190(l,n)
New York State Dormitory Authority
7.38% 07/01/16.............................................................................. 580,000 678,629(l)
New York State Dormitory Authority (Series B)
7.50% 05/15/11.............................................................................. 65,000 71,764
7.50% 05/15/11.............................................................................. 55,000 59,378(m)
1,985,331
NORTH CAROLINA -- 2.5%
City of Greensboro
5.25% 06/01/23.............................................................................. 500,000 543,170
North Carolina Municipal Power Agency No 1 Catawba
10.50% 01/01/10............................................................................. 175,000 191,781(l)
734,951
OHIO -- 0.6%
Ohio State Water Development Authority (Series I) (AMBAC Insured)
7.00% 12/01/09.............................................................................. 160,000 166,230(l,n)
PENNSYLVANIA -- 9.3%
Allegheny County Hospital Development Authority
5.00% 11/15/28.............................................................................. 500,000 403,540
7.38% 07/01/12.............................................................................. 315,000 345,158(l)
City of Philadelphia (MBIA Insured)
6.25% 08/01/12.............................................................................. 250,000 277,970(n)
City of Philadelphia (Series B) (MBIA Insured)
7.00% 05/15/20.............................................................................. 380,000 449,354(l,n)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
83
GE TAX EXEMPT FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
------------ --------------
Delaware River Port Authority
6.50% 01/15/11.............................................................................. 120,000 128,052 (l)
Philadelphia Authority for Industrial Development
5.25% 09/01/36.............................................................................. 500,000 450,690
Pittsburgh Urban Redevelopment Authority (FGIC Insured)
7.25% 09/01/14.............................................................................. 635,000 722,528 (l,n)
2,777,292
PUERTO RICO -- 0.6%
Puerto Rico Aqueduct & Sewer Authority
10.25% 07/01/09............................................................................. 170,000 180,202 (l)
SOUTH CAROLINA -- 5.2%
Charleston Educational Excellence Finance Corp.
5.25% 12/01/27.............................................................................. 1,000,000 1,002,430
Grand Strand Water & Sewer Authority (FSA Insured)
5.38% 06/01/13.............................................................................. 500,000 544,690 (n)
1,547,120
TEXAS -- 6.9%
North Texas Tollway Authority (Series A)
5.63% 01/01/33.............................................................................. 500,000 500,880
Texas Municipal Gas Acquisition & Supply Corp. II
4.18% 09/15/17.............................................................................. 1,680,000 1,571,035 (i)
2,071,915
VIRGINIA -- 1.0%
Virginia Housing Development Authority (Series D)
4.45% 07/01/11.............................................................................. 295,000 306,664
WISCONSIN -- 7.6%
State of Wisconsin (Series A)
6.60% 07/01/11.............................................................................. 525,000 583,637 (l)
State of Wisconsin (Series A) (FGIC Insured)
5.25% 07/01/16.............................................................................. 1,500,000 1,679,625 (m,n)
2,263,262
TOTAL BONDS AND NOTES
(COST $29,244,162).......................................................................... 29,628,007
OTHER INVESTMENTS -- 0.0%*
GEI Investment Fund
(COST $7,430)............................................................................... 5,795 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $29,251,592).......................................................................... 29,633,802
SHORT-TERM INVESTMENTS -- 0.9%
GE Money Market Fund Institutional Class 2.08%
(COST $273,757)............................................................................. 273,757 (d,p)
TOTAL INVESTMENTS
(COST $29,525,349).......................................................................... 29,907,559
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET -- (0.1)%........................................................................ (41,870)
--------------
NET ASSETS -- 100.0%........................................................................... $ 29,865,689
==============
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
84
GE Fixed Income Fund
[Q&A LOGO]
The GE Fixed Income Fund is managed by a team of portfolio managers that
includes Paul M. Colonna, William M. Healey, Mark H. Johnson, James F. Palmieri
and Vita Marie Pike. The team is lead by Mr. Colonna who is vested with
oversight authority. Each portfolio manager is assigned a class of assets, the
size of which are determined by team consensus and adjusted on a monthly basis,
if necessary. Although each portfolio manager manages his or her asset class
independent of the other team members, the team is highly collaborative and
communicative. See portfolio managers' biographical information beginning on
page 148.
Q. HOW DID THE GE FIXED INCOME FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2008?
A. For the six-month period ended March 31, 2008, the GE Fixed Income Fund
returned 4.07% for the Class A shares, 3.60% for the Class B shares, 3.68%
for the Class C shares, -0.17% for the Class R shares and 4.12% for the
Class Y shares. The Lehman Brothers Aggregate Index, the Fund's benchmark,
returned 5.23% and the Fund's Lipper peer group of 586 Intermediate
Investment Grade Debt Funds returned an average of 2.29% for the same
period.
Q. REVIEW WHAT HAPPENED IN THE FIXED INCOME MARKETS OVER THE SIX-MONTH PERIOD
ENDED MARCH 31, 2008.
A. In a flight to quality set off by the troubled sub-prime mortgage market,
U.S. Treasury yields fell dramatically over the last six-months. The
2-year note yield fell 242 bps to 1.58%, reflecting the Federal Reserves
250 bps reduction in the fed funds rate to 2.25%. The 10-year note yield
dropped 114 bps, muted somewhat by inflation concerns resulting in a yield
curve steepening between 2 and 10-year maturities of 128 bps. Weaker
economic growth, slumping equity prices and fears of impending recession
put pressure on all non-treasury security yield spreads. The yield spread
for the Lehman Brothers Aggregate Bond Index widened by 64 bps as
commercial mortgage-backed securities (CMBS), asset-backed securities
(ABS) and credit sector spreads widened by 229, 258 and 129 bps
respectively. High yield debt spreads widened 380 bps in general while
emerging market debt spreads increased by 130 bps. Away from cutting the
fed funds rate, the Fed took various measures for providing liquidity to
the financial system still reeling from the sub-prime fallout in hopes of
averting a financial collapse and propping up an ailing economy.
Q. WHAT WERE THE PRIMARY DRIVERS BEHIND FUND PERFORMANCE?
A. The Fund was well positioned versus the benchmark with respect to
duration, yield curve and sector allocation. The Fund duration and yield
curve positioning were set up to take advantage of lower rates and a
steeper yield curve, which did occur. Underweighting in investment grade
corporate and mortgaged-backed securities (MBS) sectors took advantage of
spread widening helped Fund performance. However, the Fund's exposure to
high yield and emerging markets, albeit small, had a negative impact on
performance. Further, short-term holdings in predominantly AAA-rated ABS
securities backed by sub-prime collateral experienced unexpected price
deterioration, which lowered relative return versus the benchmark.
[PHOTO OF PAUL M. COLONNA]
Pictured to the right:
Paul M. Colonna
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
OCTOBER 01, 2007 - MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD (DURING THE PERIOD ($)*
-------------------------- -------------------- -----------------------
ACTUAL FUND RETURN**
Class A............................................. 1,000.00 1,040.73 4.36
Class B............................................. 1,000.00 1,035.95 8.19
Class C............................................. 1,000.00 1,036.79 8.19
Class R............................................. 1,000.00 998.29 5.45
Class Y............................................. 1,000.00 1,041.18 3.08
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
Class A............................................. 1,000.00 1,020.54 4.29
Class B............................................. 1,000.00 1,016.86 8.07
Class C............................................. 1,000.00 1,016.86 8.07
Class R............................................. 1,000.00 1,019.36 5.53
Class Y............................................. 1,000.00 1,021.76 3.03
- ------------
* Expenses are equal to the Fund's annualized expense ratio of 0.85% for
Class A, 1.60% for Class B, 1.60% for Class C, 1.09% for Class R, and
0.60% for Class Y (from period October 01, 2007 -- March 31, 2008),
multiplied by the average account value over the period, multiplied by
183/366 (to reflect the six month period).
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: 4.07% for Class A shares, 3.60% for Class B shares, 3.68% for
Class C shares, since inception of (0.17)% for Class R shares and 4.12%
for Class Y shares.
86
GE Fixed Income Fund
QUALITY RATINGS AS OF MARCH 31, 2008
as a % of Market Value
MOODY'S/S&P/ PERCENTAGE OF
FITCH RATING* MARKET VALUE
- ------------- ------------
Aaa/AAA.............................................................. 85.45%
Aa/AA................................................................ 4.52%
A/A.................................................................. 3.94%
Baa/BBB.............................................................. 3.05%
Ba/BB and lower...................................................... 3.04%
------
100.00%
------
- ------------
* Moody's Investors Services Inc, Standard & Poor's and Fitch are nationally
recognized statistical rating organizations.
INVESTMENT PROFILE
A mutual fund designed for investors who seek maximum income consistent with
prudent investment management and the preservation of capital by investing at
least 80% of its net assets in debt securities under normal circumstances. 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 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ------ ------
Number of Funds in peer group:............................................................ 586 552 396 192
Peer group average annual total return:.................................................... 2.29% 3.73% 3.58% 5.08%
Lipper categories in peer group: Intermediate U.S. Government
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
-------- ----- ----- ------ ----------
GE Fixed Income................................................................. 4.07% 5.71% 3.81% 5.15% 16,523
W/load.......................................................................... (0.35)% 1.21% 2.91% 4.69% 15,821
LB Aggregate Bond Index......................................................... 5.23% 7.65% 4.58% 6.04% 17,971
CLASS B SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ------ ----------
GE Fixed Income.................................................................. 3.60% 4.92% 3.03% 4.67% 15,784
W/load........................................................................... 0.60% 1.92% 3.03% 4.67%
LB Aggregate Bond Index.......................................................... 5.23% 7.65% 4.58% 6.04% 17,971
CLASS C SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE SINCE $10,000
MONTHS YEAR YEAR INCEPTION INVESTMENT
----- ------ ----- --------- ----------
GE Fixed Income................................................................. 3.68% 5.00% 3.03% 4.75% 14,842
W/load.......................................................................... 2.68% 4.00% 3.03% 4.75%
LB Aggregate Bond Index......................................................... 5.23% 7.65% 4.58% 6.38% 16,911
CLASS R SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
ONE SINCE $10,000
MONTH INCEPTION COMMENCEMENT INVESTMENT
------ --------- ------------- ----------
GE Fixed Income............................................................... (0.35)% (0.17)% 01/29/08 9,973
LB Aggregate Bond Index....................................................... 0.34% 0.48% 10,048
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.
See Notes to Performance beginning on page 1 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.
87
GE Fixed Income Fund
CLASS Y SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ------ ------ ----------
GE Fixed Income............................................... 4.12% 5.88% 4.07% 5.40% 16,928
LB Aggregate Bond Index....................................... 5.23% 7.65% 4.58% 6.04% 17,971
[PERFORMANCE LEGEND]
See Notes to Performance beginning on page 1 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
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
GE FIXED INCOME FUND
Portfolio Composition as a % of Market Value of $195,653
(in thousands) as of March 31, 2008
[PIE CHART]
PRINCIPAL
AMOUNT VALUE
-------------- -------------
BONDS AND NOTES -- 92.4%
U.S. TREASURIES -- 23.0%
U.S. Treasury Bonds
4.50% 02/15/36......................................................................... $ 165,000 $ 170,123
4.75% 02/15/37......................................................................... 3,797,000 4,075,320
U.S. Treasury Notes
3.63% 10/31/09 - 12/31/12 16,296,000 17,134,095(j)
4.25% 11/15/17......................................................................... 7,215,000 7,694,148(j)
4.50% 11/15/10......................................................................... 27,000 28,970
4.63% 11/15/09......................................................................... 120,000 125,887(j)
4.75% 08/15/17......................................................................... 2,909,000 3,216,947(j)
32,445,490
FEDERAL AGENCIES -- 2.9%
Federal Home Loan Mortgage Corp.
4.13% 12/21/12......................................................................... 1,625,000 1,689,006
4.88% 02/09/10......................................................................... 2,280,000 2,387,589
4,076,595
AGENCY MORTGAGE BACKED -- 33.4%
Federal Home Loan Mortgage Corp.
4.50% 06/01/33 - 02/01/35 332,650 320,815(h)
5.00% 07/01/35 - 10/01/35 527,569 522,917(h)
5.50% 05/01/20 - 05/01/36 1,239,272 1,250,560(h)
6.00% 04/01/17 - 06/01/37 1,426,767 1,467,296(h)
6.50% 01/01/27 - 08/01/36 624,035 649,131(h)
7.00% 10/01/16 - 08/01/36 188,046 198,245(h)
7.50% 11/01/09 - 09/01/33 52,341 55,509(h)
8.00% 11/01/30......................................................................... 21,979 23,854(h)
8.50% 04/01/30 - 05/01/30 41,184 45,712(h)
9.00% 12/01/16......................................................................... 10,859 11,896(h)
9.50% 04/01/21......................................................................... 962 1,064(h)
6.00% TBA.............................................................................. 490,000 502,403(c)
Federal National Mortgage Assoc
4.00% 05/01/19 - 06/01/19 318,469 310,907(h)
4.50% 05/01/18 - 02/01/35 990,691 981,462(h)
5.00% 07/01/20 - 08/01/35 1,113,229 1,106,259(h)
5.00% 07/01/35......................................................................... 545,653 554,128(h,i)
5.10% 08/01/35......................................................................... 359,215 367,007(h,i)
5.26% 04/01/37......................................................................... 159,043 162,141(i)
5.44% 04/01/37......................................................................... 11,589 11,984(i)
5.50% 03/01/14 - 04/01/38 3,522,660 3,569,779(h)
5.52% 04/01/37......................................................................... 136,981 140,304(i)
5.53% 04/01/37......................................................................... 61,071 62,615(i)
5.56% 04/01/37......................................................................... 158,237 162,233(i)
5.59% 04/01/37......................................................................... 172,578 177,253(i)
5.62% 03/01/37 - 06/01/37 256,301 262,100(i)
5.66% 05/01/37......................................................................... 99,220 101,832(i)
5.68% 04/01/37......................................................................... 129,821 133,362(i)
5.70% 04/01/37......................................................................... 249,919 256,629(i)
5.71% 04/01/37......................................................................... 273,245 280,687(i)
5.84% 06/01/37......................................................................... 323,505 331,753(i)
6.00% 09/01/14 - 03/01/38 4,699,415 4,821,404(h)
6.04% 10/01/37......................................................................... 218,925 225,599(i)
6.50% 08/01/17 - 08/01/36 2,707,169 2,812,550(h)
7.00% 08/01/13 - 06/01/36 771,970 816,183(h)
7.50% 12/01/09 - 03/01/34 234,142 249,736(h)
8.00% 12/01/12 - 11/01/33 95,945 103,803(h)
8.50% 05/01/31......................................................................... 7,322 8,067(h)
9.00% 06/01/09 - 12/01/22 44,983 47,828(h)
5.00% TBA.............................................................................. 4,511,000 4,477,585(c)
5.50% TBA.............................................................................. 10,413,000 10,495,552(c)
6.00% TBA.............................................................................. 5,199,000 5,337,298(c)
6.50% TBA.............................................................................. 101,000 104,598(c)
Government National Mortgage Assoc.
4.50% 08/15/33 - 09/15/34 619,679 604,306(h)
6.00% 04/15/27 - 09/15/36 309,837 320,829(h)
6.50% 04/15/19 - 08/15/36 631,901 658,882(h)
7.00% 03/15/12 - 10/15/36 249,418 262,091(h)
7.50% 01/15/23 - 10/15/33 89,787 95,196(h)
8.00% 12/15/29 - 02/15/30 2,131 2,332(h)
9.00% 11/15/16 - 12/15/21 74,510 80,269(h)
5.50% TBA.............................................................................. 1,400,000 1,425,550(c)
46,971,495
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 4.5%
Collateralized Mortgage Obligation Trust (Class B)
2.40% 11/01/18......................................................................... 4,665 4,384(d,f,h)
Federal Home Loan Mortgage
4.96% 08/01/35......................................................................... 571,085 442,785(d,f)
Federal Home Loan Mortgage Corp.
4.50% 04/15/13 - 03/15/19 651,039 51,217(d,g,h)
5.00% 04/15/14 - 08/01/35 3,832,234 712,872(d,g,h)
5.50% 04/15/17 - 06/15/33 502,924 83,644(d,g,h)
5.50% 04/15/26......................................................................... 124,359 127,825
6.76% 12/15/33......................................................................... 148,420 138,318(h,i)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
89
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
-------------- -------------
7.50% 01/15/16......................................................................... $ 32,673 $ 34,053(h)
7.50% 07/15/27......................................................................... 3,769 825(d,g,h)
8.00% 04/15/20......................................................................... 1,645 1,735(h)
8.00% 02/01/23 - 07/01/24 10,157 2,517(d,g,h)
9.68% 06/15/33......................................................................... 352,648 382,722(h,i)
11.64%11/15/37.......................................................................... 323,849 252,967(d,f)
44.12%09/25/43.......................................................................... 1,579,552 9,864(d,g,h)
Federal Home Loan Mortgage STRIPS
4.98% 08/01/27......................................................................... 2,332 1,965(d,f,h)
Federal National Mortgage Assoc.
3.85% 05/25/37......................................................................... 8,393 805(d,g,i)
4.00% 02/25/28......................................................................... 16,681 16,638(h)
4.40% 10/25/29......................................................................... 386,421 34,173(d,g,h,i)
4.50% 05/25/18......................................................................... 126,445 8,733(d,g,h)
4.75% 11/25/14......................................................................... 61,943 2,548(d,g,h)
5.00% 08/25/17 - 02/25/32 164,485 14,913(d,g,h)
5.00% 09/25/42......................................................................... 851,279 111,996(d,g,h,i)
5.00% 10/25/35......................................................................... 95,396 83,309
5.10% 08/25/16......................................................................... 208,659 13,893(d,g,h,i)
5.50% 03/25/29 - 01/25/33 547,596 551,223
8.00% 07/25/14......................................................................... 46,294 46,744(h)
36.54%12/25/42.......................................................................... 377,082 11,784(d,g,h)
Federal National Mortgage Assoc.
(Class 1)
4.50% 09/01/35 - 01/01/36 995,728 220,737(d,g)
4.90% 07/01/34......................................................................... 378,304 288,720(d,f)
5.30% 11/01/34......................................................................... 418,267 331,931(d,f,h)
Federal National Mortgage Assoc. (Class 2)
5.00% 09/01/33......................................................................... 320,171 73,569(d,g)
5.50% 12/01/33......................................................................... 91,437 19,528(d,g)
Federal National Mortgage Assoc. REMIC
4.50% 11/25/13......................................................................... 111,111 2,566(d,g,h)
5.00% 10/25/22......................................................................... 149,171 19,849(d,g,h)
10.89% 03/25/31......................................................................... 346,717 373,740(h,i)
Federal National Mortgage Assoc. REMIC (Class B)
3.52% 12/25/22......................................................................... 3,527 3,161(d,f,h)
Federal National Mortgage Assoc. REMIC (Class J)
1080.91% 03/25/22....................................................................... 3 9(d,g,h)
Federal National Mortgage Assoc. REMIC (Class K)
1008.00% 05/25/22....................................................................... 17 357(d,g,h)
Federal National Mortgage Assoc. STRIPS (Class 1)
5.02% 10/01/36......................................................................... 1,796,754 1,383,953(d,f)
Federal National Mortgage Assoc. STRIPS (Class 2)
5.00% 08/01/34......................................................................... 2,107,694 513,421(d,g)
7.50% 11/01/23......................................................................... 37,284 11,104(d,g,h)
8.00% 08/01/23 - 07/01/24 21,701 5,310(d,g,h)
8.50% 03/01/17 - 07/25/22 11,052 2,437(d,g,h)
9.00% 05/25/22......................................................................... 3,633 945(d,g,h)
6,395,789
ASSET BACKED -- 3.3%
Accredited Mortgage Loan Trust (Class A)
2.90% 07/25/34......................................................................... 167,288 104,993(h,i)
Bear Stearns Asset Backed Securities Trust (Class A)
2.97% 01/25/34......................................................................... 36,593 32,861(h,i)
Capital Auto Receivables Asset Trust (Class A)
4.10% 01/15/10......................................................................... 335,000 331,650(b,d,i)
Capital One Master Trust (Class C)
6.70% 06/15/11......................................................................... 274,000 277,072(b,h,q)
Carmax Auto Owner Trust
4.35% 03/15/10......................................................................... 143,464 143,980(h)
Chase Funding Mortgage Loan Asset-Backed Certificates
3.10% 03/25/32......................................................................... 35,757 32,940(h,i)
5.75% 05/25/32......................................................................... 40,663 24,398(h)
Citibank Credit Card Issuance Trust
4.45% 04/07/10......................................................................... 229,000 229,044(h,q)
Countrywide Asset-Backed Certificates (Class A)
2.87% 05/25/36......................................................................... 3,707 3,699(h,i)
3.16% 08/25/32......................................................................... 22,654 20,545(h,i)
Discover Card Master Trust I (Class A)
2.84% 05/15/11......................................................................... 1,000,000 994,379(h,i)
2.85% 04/17/12......................................................................... 1,000,000 987,069(h,i)
Honda Auto Receivables Owner Trust (Class A)
4.15% 10/15/10......................................................................... 170,350 170,995(h)
Mid-State Trust
7.54% 07/01/35......................................................................... 13,756 14,304(h,q)
Peco Energy Transition Trust
6.52% 12/31/10......................................................................... 181,000 193,369(h)
Residential Asset Mortgage Products, Inc.
2.84% 03/25/34......................................................................... 4,825 4,644(h,i)
Residential Asset Securities Corp.
3.10% 07/25/32......................................................................... 9,676 8,803(h,i)
Residential Asset Securities Corp. (Class A)
3.18% 06/25/33......................................................................... 37,465 32,695(h,i)
4.16% 07/25/30......................................................................... 33,723 33,675(h)
Swift Master Auto Receivables Trust (Class A)
2.92% 06/15/12......................................................................... 1,000,000 935,000(h,i)
Wachovia Asset Securitization Inc. (Class A)
2.82% 06/25/34......................................................................... 65,563 60,399(h,i)
Wells Fargo Home Equity Trust
3.97% 05/25/34......................................................................... 65,058 62,624(h)
4,699,138
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
90
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
-------------- -------------
CORPORATE NOTES -- 15.4%
Abbey National PLC
7.95% 10/26/29......................................................................... $ 152,000 $ 168,016 (h)
AES Ironwood LLC
8.86% 11/30/25......................................................................... 336,027 364,589 (h)
American Electric Power Company, Inc. (Series D)
5.25% 06/01/15......................................................................... 181,000 170,834 (h)
American International Group, Inc.
5.85% 01/16/18......................................................................... 173,000 167,559
American Railcar Industries, Inc.
7.50% 03/01/14......................................................................... 100,000 88,000 (h)
Amgen, Inc.
5.85% 06/01/17......................................................................... 165,000 165,192
Archer-Daniels-Midland Co.
6.45% 01/15/38......................................................................... 174,000 175,209
Arizona Public Service Co.
6.25% 08/01/16......................................................................... 95,000 91,519 (h)
BAC Capital Trust VI
5.63% 03/08/35......................................................................... 224,000 186,983 (h)
Banco Santander Chile
5.38% 12/09/14......................................................................... 174,000 169,672 (b,h)
Bank of America Corp.
8.00% 12/29/49......................................................................... 171,000 171,205
Bear Stearns Companies Inc.
5.85% 07/19/10......................................................................... 115,000 110,975
6.95% 08/10/12......................................................................... 405,000 405,200
BellSouth Corp.
4.20% 09/15/09......................................................................... 280,000 282,467 (h)
6.55% 06/15/34......................................................................... 24,000 23,280 (h)
Bristol-Myers Squibb Co.
5.88% 11/15/36......................................................................... 85,000 81,689 (h)
British Telecommunications PLC
8.63% 12/15/10......................................................................... 120,000 131,272 (h)
Cadbury Schweppes US Finance LLC
3.88% 10/01/08......................................................................... 214,000 213,539 (b,h)
Capital One Bank
6.50% 06/13/13......................................................................... 76,000 76,112 (h)
Cargill Inc.
5.20% 01/22/13......................................................................... 248,000 250,181 (b)
6.00% 11/27/17......................................................................... 290,000 292,509 (b)
Carolina Power & Light Co.
5.15% 04/01/15......................................................................... 101,000 102,839 (h)
5.70% 04/01/35......................................................................... 58,000 55,220 (h)
6.13% 09/15/33......................................................................... 64,000 64,509 (h)
Chubb Corp.
6.00% 05/11/37......................................................................... 155,000 139,431 (h)
Citigroup Capital
8.30% 12/21/57......................................................................... 58,000 57,072
Citigroup, Inc.
5.13% 02/14/11......................................................................... 275,000 276,160
Clarendon Alumina Production Ltd.
8.50% 11/16/21......................................................................... 100,000 101,000 (b,h)
COX Communications, Inc.
7.13% 10/01/12......................................................................... 210,000 222,045
7.75% 11/01/10......................................................................... 145,000 155,005
Credit Suisse
6.00% 02/15/18......................................................................... 196,000 195,524
CSX Transportation, Inc.
9.75% 06/15/20......................................................................... 82,000 98,548 (h)
CVS Caremark Corp.
5.75% 06/01/17......................................................................... 240,000 242,840
Daimler Finance North America LLC
4.05% 06/04/08......................................................................... 145,000 145,054 (h)
Diageo Capital PLC
5.20% 01/30/13......................................................................... 117,000 120,678
Dominion Resources, Inc. (Series B)
6.30% 09/30/66......................................................................... 470,000 422,990 (h)
Dover Corp.
6.50% 02/15/11......................................................................... 80,000 85,566 (h)
DP World Ltd.
6.85% 07/02/37......................................................................... 100,000 83,156 (b)
Duke Energy Carolinas LLC
5.38% 01/01/09......................................................................... 60,000 60,805 (h)
EI Du Pont de Nemours & Co.
4.88% 04/30/14......................................................................... 125,000 124,949 (h)
El Paso Electric Co.
6.00% 05/15/35......................................................................... 100,000 89,066 (h)
Empresa Energetica de Sergipe and Sociedade Anonima de Eletrificaao da Paraiba
10.50% 07/19/13........................................................................ 103,000 111,755 (b,h)
Globo Comunicacoe e Participacoes S.A.
7.25% 04/26/22......................................................................... 100,000 97,500 (b)
Goldman Sachs Group, Inc.
5.95% 01/18/18......................................................................... 114,000 112,476
6.60% 01/15/12......................................................................... 385,000 408,532 (h)
6.88% 01/15/11......................................................................... 175,000 185,466
GTE Corp.
7.51% 04/01/09......................................................................... 145,000 149,837 (h)
Hewlett-Packard Co.
5.50% 03/01/18......................................................................... 172,000 175,523
Hexion US Finance Corp/Hexion Nova Scotia Finance ULC
9.75% 11/15/14......................................................................... 325,000 348,563
HSBC Bank USA NA
4.63% 04/01/14......................................................................... 75,000 72,121
HSBC Capital Funding LP (Series 1)
9.55% 12/31/49......................................................................... 257,000 276,224 (b,h,q)
HSBC Finance Corp.
6.75% 05/15/11......................................................................... 125,000 132,489
Hydro Quebec
8.50% 12/01/29......................................................................... 90,000 128,538
IIRSA Norte Finance Ltd.
8.75% 05/30/24......................................................................... 279,265 310,682 (b,h)
ING Capital Funding TR III
8.44% 12/29/49......................................................................... 190,000 186,862
ING Groep N.V.
5.78% 12/29/49......................................................................... 190,000 156,202
Intergen N.V.
9.00% 06/30/17......................................................................... 202,000 211,090 (b)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
91
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
-------------- -------------
International Steel Group Inc.
6.50% 04/15/14......................................................................... 160,000 164,551
Interoceanica IV Finance Ltd.
4.14% 11/30/18......................................................................... 160,000 103,392(b,d)
4.43% 11/30/25......................................................................... 160,000 73,760(b,d)
JBS S.A.
9.38% 02/07/11......................................................................... 150,000 149,625
John Deere Capital Corp.
4.50% 04/03/13......................................................................... 58,000 58,322
JP Morgan Chase & Co.
7.00% 11/15/09......................................................................... 235,000 244,553(h)
Kansas Gas & Electric
5.65% 03/29/21......................................................................... 73,736 71,328(h)
Lehman Brothers Holdings, Inc.
2.65% 12/23/08......................................................................... 30,000 29,166(i)
3.98% 10/22/08......................................................................... 66,000 64,270(i)
5.63% 01/24/13......................................................................... 114,000 110,088
Lippo Karawaci Finance BV
8.88% 03/09/11......................................................................... 175,000 164,258
Lukoil International Finance BV
6.36% 06/07/17......................................................................... 10,000 9,263(b)
LyondellBasell Industries AF SCA
8.38% 08/15/15......................................................................... 310,000 226,300(b)
Marfrig Overseas Ltd.
9.63% 11/16/16......................................................................... 250,000 238,750(b)
Markel Corp.
7.35% 08/15/34......................................................................... 64,000 66,020(q)
McDonald's Corp.
5.80% 10/15/17......................................................................... 116,000 120,718
6.30% 03/01/38......................................................................... 172,000 173,945
Mediacom LLC/Mediacom Capital Corp.
9.50% 01/15/13......................................................................... 480,000 441,600(h)
Merck & Company, Inc.
5.75% 11/15/36......................................................................... 60,000 60,501
Metropolitan Life Global Funding I
4.25% 07/30/09......................................................................... 155,000 156,585(b)
Midamerican Energy Holdings Co.
6.13% 04/01/36......................................................................... 135,000 130,482
Mizuho Financial Group Cayman Ltd.
8.38% 12/29/49......................................................................... 100,000 99,422(q)
Morgan Stanley (Series F)
6.63% 04/01/18......................................................................... 200,000 201,787
Munich Re America Corp. (Series B)
7.45% 12/15/26......................................................................... 115,000 126,108(h)
NAK Naftogaz Ukrainy
8.13% 09/30/09......................................................................... 300,000 290,670
Nakilat Inc.
6.07% 12/31/33......................................................................... 100,000 90,871(b,h,q)
6.27% 12/31/33......................................................................... 160,000 142,720(b,q)
Nelnet, Inc.
5.13% 06/01/10......................................................................... 264,000 256,117(h,q)
NGPL PipeCo LLC
7.12% 12/15/17......................................................................... 121,000 125,167(b)
Norfolk Southern Corp.
8.63% 05/15/10......................................................................... 185,000 202,537(h)
Norfolk Southern Railway Co.
9.75% 06/15/20......................................................................... 146,000 193,922(h)
Northeast Utilities (Series B)
3.30% 06/01/08......................................................................... 170,000 169,942(h)
Northern States Power
6.25% 06/01/36......................................................................... 115,000 116,584(h)
NorthWestern Corp.
5.88% 11/01/14......................................................................... 298,000 300,324(h)
OPTI Canada Inc.
8.25% 12/15/14......................................................................... 160,000 158,400
Pacific Bell Telephone Co.
7.13% 03/15/26......................................................................... 99,000 101,828(h)
Pacific Gas & Electric Co.
5.80% 03/01/37......................................................................... 120,000 112,875
PanAmSat Corp.
9.00% 08/15/14......................................................................... 321,000 323,408(h)
Pemex Finance Ltd.
9.03% 02/15/11......................................................................... 181,800 195,930(h)
Pemex Project Funding Master Trust
6.13% 08/15/08......................................................................... 3,000 3,020
7.88% 02/01/09......................................................................... 61,000 63,177
Petrobras International Finance Co.
5.88% 03/01/18......................................................................... 58,000 55,993
PNC Preferred Funding Trust I
6.52% 12/31/49......................................................................... 250,000 180,031(b,q)
Potomac Edison Co.
5.35% 11/15/14......................................................................... 112,000 113,048(h)
Public Service Company of Colorado
7.88% 10/01/12......................................................................... 200,000 227,979(h)
Puget Sound Energy, Inc.
3.36% 06/01/08......................................................................... 163,000 162,845(h)
5.48% 06/01/35......................................................................... 145,000 121,534(h)
Puget Sound Energy, Inc. (Series A)
6.97% 06/01/67......................................................................... 215,000 190,789(q)
Rede Empresas de Energia Eletrica S.A.
11.13% 04/02/49........................................................................ 175,000 158,813(b)
Rock-Tenn Co.
8.20% 08/15/11......................................................................... 315,000 322,875
Royal Bank of Scotland Group PLC
5.00% 10/01/14......................................................................... 45,000 42,303
Sabine Pass LNG LP
7.25% 11/30/13......................................................................... 200,000 193,000
7.50% 11/30/16......................................................................... 275,000 265,375
Security Benefit Life Insurance
8.75% 05/15/16......................................................................... 25,000 26,981(b,q)
Sierra Pacific Resources
8.63% 03/15/14......................................................................... 153,000 160,659
Skandinaviska Enskilda Banken AB
7.50% 03/29/49......................................................................... 250,000 257,501(b,h,q)
Southern Copper Corp.
7.50% 07/27/35......................................................................... 30,000 30,717
Sovereign Capital Trust VI
7.91% 06/13/36......................................................................... 237,000 192,705(h,q)
Sprint Capital Corp.
7.63% 01/30/11......................................................................... 350,000 323,750(h)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
92
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
-------------- -------------
Standard Chartered Bank Hong Kong Ltd.
4.38% 12/03/14......................................................................... $ 210,000 $ 210,389(q)
Stewart Enterprises, Inc.
6.25% 02/15/13......................................................................... 185,000 172,975(h)
Telecom Italia Capital S.A.
6.20% 07/18/11......................................................................... 189,000 188,073
Telefonica Emisiones SAU
5.86% 02/04/13......................................................................... 150,000 151,474
Tesco PLC
5.50% 11/15/17......................................................................... 100,000 102,014(b)
Titan Petrochemicals Group Ltd.
8.50% 03/18/12......................................................................... 100,000 72,000(b)
TNK-BP Finance S.A.
6.63% 03/20/17......................................................................... 100,000 86,500(b)
Transocean, Inc.
6.00% 03/15/18......................................................................... 171,000 175,085
Tronox Worldwide LLC
9.50% 12/01/12......................................................................... 230,000 196,650(h)
UBS Preferred Funding Trust I
8.62% 10/29/49......................................................................... 150,000 149,175
Valspar Corp.
5.63% 05/01/12......................................................................... 125,000 125,693(q)
Verizon Global Funding Corp.
7.25% 12/01/10......................................................................... 241,000 258,572
Verizon Pennsylvania, Inc.
8.35% 12/15/30......................................................................... 80,000 92,148(h)
VTB Capital S.A.
3.84% 08/01/08......................................................................... 205,000 202,694(b,h,i)
Wachovia Corp. (Series K)
7.98% 12/31/49......................................................................... 115,000 112,988
Wal-Mart Stores, Inc.
5.80% 02/15/18......................................................................... 114,000 118,935
Wells Fargo & Co.
5.63% 12/11/17......................................................................... 55,000 56,412
Westar Energy, Inc.
7.13% 08/01/09......................................................................... 140,000 146,067(h)
Westlake Chemical Corp.
6.63% 01/15/16......................................................................... 310,000 271,250(h)
21,740,597
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 9.4%
Banc of America Alternative Loan Trust
6.50% 07/25/35......................................................................... 136,574 128,713(h)
Banc of America Commercial Mortgage Inc.
5.32% 09/10/47......................................................................... 50,000 48,767(h)
Banc of America Commercial Mortgage Inc. (Class C)
5.70% 04/10/17......................................................................... 100,000 68,469(h,q)
Banc of America Funding Corp.
5.74% 03/20/36......................................................................... 111,461 117,949(h,i,q)
5.82% 02/20/36......................................................................... 188,473 181,775(h,q)
Banc of America Mortgage Securities Inc. (Class B)
5.38% 01/25/36......................................................................... 107,742 84,524(h,i)
5.55% 02/25/36......................................................................... 88,954 73,483(h,i)
Bear Stearns Commercial Mortgage Securities
5.41% 03/11/39......................................................................... 93,396 92,781(h)
5.48% 10/12/41......................................................................... 305,000 298,871(h)
5.53% 10/12/41......................................................................... 305,000 289,051(h)
6.02% 02/14/31......................................................................... 416,085 417,213(h)
Bear Stearns Commercial Mortgage Securities (Class A)
5.66% 06/11/40......................................................................... 300,000 294,013
Bear Stearns Commercial Mortgage Securities (Class D)
5.99% 09/11/42......................................................................... 40,000 23,809(b,q)
Countrywide Alternative Loan Trust
5.98% 05/25/36......................................................................... 39,142 23,320(h,q)
6.00% 03/25/36 - 08/25/36 192,199 31,987(h,q)
Countrywide Alternative Loan Trust (Class B)
6.00% 05/25/36 - 08/25/36 132,985 37,420(h,q)
Countrywide Asset-Backed Certificates
3.42% 11/25/35......................................................................... 520,865 474,966(h,i)
Credit Suisse Mortgage Capital Certificates (Class C)
5.65% 02/25/36......................................................................... 82,981 53,466(h,q)
Crusade Global Trust (Class A)
2.95% 09/18/34......................................................................... 36,576 36,527(h,i)
CS First Boston Mortgage Securities Corp.
1.40% 03/15/35......................................................................... 3,800,361 94,701(b,h,q)
5.25% 08/25/34......................................................................... 71,516 69,106(h)
5.33% 10/25/35......................................................................... 103,062 69,072(h,q)
6.13% 04/15/37......................................................................... 224,440 230,262(h)
6.84% 07/15/37......................................................................... 3,162,902 61,956(b,d,h,q)
DLJ Commercial Mortgage Corp.
6.24% 11/12/31......................................................................... 429,919 430,726(h)
First Union-Lehman Brothers-Bank of America
6.56% 11/18/35......................................................................... 25,714 25,646(h)
GMAC Commercial Mortgage Securities, Inc.
6.47% 04/15/34......................................................................... 128,689 129,918(h)
GMAC Commercial Mortgage Securities, Inc. (Class X)
6.73% 12/10/41......................................................................... 4,865,501 78,899(d,h,q)
Greenwich Capital Commercial Funding Corp.
5.12% 04/10/37......................................................................... 305,528 303,641(h)
GS Mortgage Securities Corp II
(Class A)
5.80% 08/10/45......................................................................... 550,000 552,462
Impac CMB Trust (Class A)
2.86% 10/25/35......................................................................... 1,142,893 815,457(h,i)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
93
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
-------------- -------------
Indymac INDA Mortgage Loan Trust
5.16% 01/25/36......................................................................... $ 71,808 $ 46,316(h,q)
Indymac INDA Mortgage Loan Trust (Class B)
5.16% 01/25/36......................................................................... 71,808 61,533(h,q)
JP Morgan Chase Commercial Mortgage Securities Corp.
1.11% 01/12/39......................................................................... 2,690,476 70,126(b,h,q)
6.06% 02/15/51......................................................................... 390,000 360,954
6.20% 02/12/51......................................................................... 60,000 36,561(b,q)
6.47% 11/15/35......................................................................... 215,752 223,383(h)
LB-UBS Commercial Mortgage Trust
4.06% 09/15/27......................................................................... 367,764 359,758(h)
6.23% 03/15/26......................................................................... 165,796 167,065(h)
6.71% 01/18/12......................................................................... 3,954,392 81,846(d,h,q)
10.04% 01/15/36........................................................................ 1,441,587 73,642(b,d,h,q)
10.43% 10/15/35........................................................................ 1,042,408 38,693(b,d,h,q)
11.38% 03/15/36........................................................................ 3,778,377 89,138(b,d,h,q)
11.58% 02/15/40........................................................................ 3,570,615 63,968(b,d,h,q)
LB-UBS Commercial Mortgage Trust (Class A)
6.13% 12/15/30......................................................................... 289,600 297,588(h)
LB-UBS Commercial Mortgage Trust (Class B)
6.65% 07/14/16......................................................................... 66,000 68,181(b,h)
LB-UBS Commercial Mortgage Trust (Class F)
6.24% 07/15/40......................................................................... 105,000 61,429(q)
MASTR Alternative Loans Trust
5.00% 08/25/18......................................................................... 150,321 22,947(d,g,h)
6.50% 08/25/34 - 05/25/35 685,900 646,776(h)
Merrill Lynch Mortgage Trust (Class A)
5.61% 05/12/39......................................................................... 319,000 317,792(h)
Merrill Lynch/Countrywide Commercial Mortgage Trust
5.42% 08/12/48......................................................................... 175,000 153,721
MLCC Mortgage Investors, Inc.
5.37% 02/25/36......................................................................... 94,112 78,583(h)
Morgan Stanley Capital I
5.28% 12/15/43......................................................................... 117,000 113,774
5.33% 12/15/43......................................................................... 117,000 113,808
5.39% 11/12/41......................................................................... 341,000 272,399(h)
5.44% 02/12/44......................................................................... 119,000 116,092(b)
5.69% 04/15/49......................................................................... 600,000 590,792(h)
7.11% 04/15/33......................................................................... 454,242 459,552(h)
Morgan Stanley Capital I (Class A)
5.36% 02/12/44......................................................................... 225,000 219,927
Morgan Stanley Dean Witter Capital I
7.20% 10/15/33......................................................................... 56,900 58,262(h)
Morgan Stanley Dean Witter Capital I (Class A)
6.54% 02/15/31......................................................................... 21,598 22,105(h)
Puma Finance Ltd. (Class A)
2.76% 03/25/34......................................................................... 124,998 118,312(h,i)
4.63% 10/11/34......................................................................... 80,941 78,138(h,i)
Residential Accredit Loans, Inc.
6.00% 01/25/36......................................................................... 175,449 119,882(h,q)
6.04% 01/25/36......................................................................... 98,397 74,282(h,q)
Residential Funding Mortgage Securities I
5.75% 01/25/36......................................................................... 97,745 67,033(h)
5.75% 01/25/36......................................................................... 97,745 71,155(h,q)
Structured Asset Securities Corp. (Class X)
2.16% 02/25/28......................................................................... 108,505 543
Wachovia Bank Commercial Mortgage Trust
5.42% 04/15/47......................................................................... 500,000 487,895(h)
5.74% 06/15/49......................................................................... 550,000 548,255
Wachovia Bank Commercial Mortgage Trust (Class E)
5.90% 02/15/51......................................................................... 335,000 208,910(q)
Wells Fargo Mortgage Backed Securities Trust
5.39% 08/25/35......................................................................... 262,524 230,935(h,i)
5.50% 01/25/36......................................................................... 102,994 70,728(h)
Wells Fargo Mortgage Backed Securities Trust (Class B)
5.50% 03/25/36......................................................................... 232,649 166,216(h)
13,167,945
SOVEREIGN BONDS -- 0.5%
Government of Bahamas
6.63% 05/15/33......................................................................... 152,000 177,822(b,h,q)
Government of Canada
7.50% 09/15/29......................................................................... 185,000 244,968
Government of Manitoba Canada
4.90% 12/06/16......................................................................... 130,000 138,875
Government of Panama
6.70% 01/26/36......................................................................... 115,000 117,013
678,678
TOTAL BONDS AND NOTES
(COST $132,590,752)...................................................................... 130,175,727
SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 8.0%
ASSET BACKED -- 5.0%
American Express Credit Account Master Trust (Class B)
2.93% 08/15/11......................................................................... 2,000,000 1,953,126(b,i)
Countrywide Asset-Backed Certificates
3.46% 05/25/33......................................................................... 4,961 4,805(i)
Countrywide Asset-Backed Certificates (Class 2)
3.20% 06/25/33......................................................................... 1,457 1,331(i)
Countrywide Asset-Backed Certificates (Class A)
3.40% 03/25/33......................................................................... 141,059 129,543(i)
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
94
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
-------------- -------------
Discover Card Master Trust I (Class A)
2.84% 05/15/11......................................................................... 1,172,000 1,165,413 (h,i)
Fleet Home Equity Loan Trust (Class A)
2.79% 01/20/33......................................................................... 151,153 126,113 (i)
GSAMP Trust
2.75% 12/25/35......................................................................... 631,905 617,471 (i)
Long Beach Mortgage Loan Trust
2.88% 09/25/35......................................................................... 1,793,635 1,721,401 (i)
Nissan Auto Lease Trust
2.89% 02/15/13......................................................................... 1,300,000 1,263,844 (i)
Residential Asset Mortgage Products, Inc. (Class A)
3.16% 06/25/32......................................................................... 21,966 21,608 (i)
7,004,655
CORPORATE NOTES -- 0.9%
Morgan Stanley
3.21% 05/07/09......................................................................... 550,000 540,802 (i)
Prudential Financial, Inc.
3.02% 06/13/08......................................................................... 724,000 723,212 (i)
1,264,014
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.1%
Banc of America Large Loan Inc.
3.03% 03/15/22......................................................................... 1,086,000 1,015,528 (b,d,i)
Countrywide Asset-Backed Certificates
3.42% 11/25/35......................................................................... 520,865 474,966 (h,i)
Interstar Millennium Trust (Class A)
3.05% 03/14/36......................................................................... 25,204 24,147 (i)
Lehman Brothers Floating Rate Commercial Mortgage Trust
2.99% 10/15/17......................................................................... 283,335 265,307 (b,i)
MortgageIT Trust (Class 1)
2.86% 05/25/35......................................................................... 1,038,092 903,018 (i)
Thornburg Mortgage Securities Trust
(Class A)
3.28% 04/25/43......................................................................... 110,935 108,071 (i)
WaMu Mortgage Pass Through Certificates
2.94% 01/25/45......................................................................... 167,525 130,261 (i)
2,921,298
TOTAL SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN
(COST $11,725,888)..................................................................... 11,189,967
OTHER INVESTMENTS -- 0.5%
OTHER INVESTMENTS -- 0.1%
GEI Investment Fund...................................................................... 197,338 (k)
OTHER INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 0.4%
GEI Investment Fund...................................................................... 518,482 (k)
TOTAL OTHER INVESTMENTS
(COST $917,718)........................................................................ 715,820
TOTAL INVESTMENT IN SECURITIES
(COST $145,234,358).................................................................... 142,081,514
SHORT-TERM INVESTMENTS -- 38.0%*
SHORT-TERM INVESTMENTS -- 12.7%
GE Money Market Fund Institutional Class
2.08%................................................................................... 17,867,651 (d,p)
U.S. GOVERNMENTS -- 12.8%
Federal Home Loan Bank Discount Notes
1.82% 04/15/08......................................................................... 8,000,000 7,994,338 (d)
U.S. Treasury Bill
1.70% 04/03/08......................................................................... 10,000,000 9,999,058 (d)
17,993,396
TIME DEPOSITS
State Street Corp.
1.75% 04/01/08......................................................................... 1,000,000 1,000,000 (e)
SHORT-TERM SECURITIES PURCHASED WITH COLLATERAL FROM SECURITIES ON LOAN -- 11.8%
GE Money Market Fund Institutional Class
2.08%................................................................................... 16,710,799 (d,p)
TOTAL SHORT-TERM INVESTMENTS
(COST $53,571,846)..................................................................... 53,571,846
TOTAL INVESTMENTS
(COST $198,806,204).................................................................... 195,653,360
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (38.9)%.......................................................................... (54,799,470)
---------------
NET ASSETS -- 100.0%...................................................................... $ 140,853,890
===============
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
95
GE FIXED INCOME FUND March 31, 2008 (unaudited)
Schedule of Investments
OTHER INFORMATION
The GE Fixed Income Fund had the following long futures contracts open at
March 31, 2008 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- ----------- --------------- ---------- ------------- --------------
Euro Schatz Futures................................................. June 2008 108 $ 17,884,087 $ (130,253)
U.S. Treasury Notes 5 Yr. Futures................................... June 2008 59 6,739,828 18,978
The GE Fixed Income Fund had the following short futures contracts open at
March 31, 2008 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
- ----------- ---------- --------- -------------- --------------
U.S. Treasury Notes 2 Yr. Futures..................................... June 2008 2 $ (429,313) $ 870
U.S. Treasury Notes 10 Yr. Futures.................................... June 2008 17 (2,022,203) 302
------------
$ (110,103)
============
- ----------
* The financial statement figure presented above for Short-Term Investments
includes collateral received from transactions such as loans of portfolio
securities and amounts held pending settlement of securities transactions.
In evaluating the GE Fixed Income Fund's net cash level, portfolio
management takes into account certain of the Fund's liabilities in excess
of other assets, such as liabilities associated with loans of portfolio
securities and securities pending settlement, and equitized cash. The
Fund's net cash level is not expected to exceed 5%.
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
96
GE U.S. Equity Fund [Q&A LOGO]
The GE Money Market Fund is managed by a team of portfolio managers that
includes James C. Gannon, William M. Healey, Michael E. Martini and Andrew A.
Maselli. As lead portfolio manager for the GE Money Market Fund, Mr. Healey
(pictured below) has oversight responsibility over the Fund. See portfolio
managers' biographical information beginning on page 148.
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, 2008?
A. For the six-month period ended March 31, 2008, the GE Money Market Fund
returned 2.05% for the Retail Class shares and 0.09% for the Institutional
Class shares. The 90-day U.S. Treasury Bill, the Fund's benchmark,
returned 1.41% and the Fund's Lipper peer group of 338 Money Market Funds
returned an average of 1.84% for the same period.
Q. REVIEW WHAT HAPPENED IN THE FIXED INCOME MARKET OVER SIX-MONTH PERIOD
ENDED MARCH 31, 2008.
A. In a flight to quality set off by the troubled sub-prime mortgage market,
U.S. Treasury yields fell dramatically over the last six-months. The
2-year note yield fell 242 bps to 1.58%, reflecting the Federal Reserves
250 bps reduction in the fed funds rate to 2.25%. The 10-year note yield
dropped 114 bps, muted somewhat by inflation concerns resulting in a yield
curve steepening between 2 and 10-year maturities of 128 bps. Weaker
economic growth, slumping equity prices and fears of impending recession
put pressure on all non-treasury security yield spreads. The yield spread
for the Lehman Brothers Aggregate Bond Index widened by 64 bps as
commercial mortgage-backed securities (CMBS), asset-backed securities
(ABS) and credit sector spreads widened by 229, 258 and 129 bps
respectively. High yield debt spreads widened 380 bps in general while
emerging market debt spreads increased by 130 bps. Away from cutting the
fed funds rate, the Fed took various measures for providing liquidity to
the financial system still reeling from the sub-prime fallout in hopes of
averting a financial collapse and propping up an ailing economy.
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A. A key strategy for the Fund has been to position the average maturity
given our outlook for the Fed's monetary policy. Against the backdrop of
aggressive Fed easing, the average portfolio maturity was extended to take
advantage of higher rates as the Fed lowered overnight fed funds rate.
[PHOTO OF WILLIAM M. HEALEY]
Pictured to the right:
William M. Healey
97
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, 2008.
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 $1,000 = 8.6), then multiply the result by the number
given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholders
reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2007 -- MARCH 31, 2008
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE END OF THE PERIOD DURING THE PERIOD
PERIOD ($) ($) ($)*
-------------------- -------------------- -----------------
ACTUAL RETURN
Retail Class................ 1,000.00 1,020.49 2.43
Institutional Class......... 1,000.00 1,000.90 1.40
-------- -------- ----
HYPOTHETICAL 5% RETURN
(2.5% FOR THE PERIOD)............
Retail Class................ 1,000.00 1,022.35 2.43
Institutional Class......... 1,000.00 1,021.49 1.43
-------- -------- ----
- -----------
* Expenses are equal to the Fund's annualized expense ratio of 0.48% for the
Retail Class and 0.28% for the Institutional Class (from period October 1,
2007 -- March 31, 2008), multiplied by the average account value over the
period, multiplied by 183/366 (to reflect the six-month period)
** Actual Fund Returns for six-month period ended March 31, 2008 were as
follows: 2.05% for Retail Class shares and since inception of 0.09% for
Institutional Class shares.
98
GE Money Market Fund
CHANGE IN VALUE OF A $10,000 INVESTMENT
RETAIL SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR INVESTMENT
------ ----- ----- ----- ----------
GE Money Market...
Retail Class.... 2.05% 4.63% 3.03% 3.52% 14,140
90 Day T-Bill..... 1.39% 3.72% 3.02% 3.48% 14,083
[PERFORMANCE LEGEND]
INSTITUTIONAL SHARES
[PERFORMANCE GRAPH]
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2008
ENDING
VALUE OF A
$10,000
SINCE INCEPTION COMMENCEMENT INVESTMENT
--------------- ------------ ----------
GE Money Market
Institutional
Class.......... 0.09% 03/17/08 10,009
90 Day T-Bill.... 0.05% 10,005
[PERFORMANCE LEGEND]
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.
99
GE Money Market Fund
LIPPER PERFORMANCE COMPARISON
Money Market Peer Group
Based on average annual total returns for the periods ended 3/31/08
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ------ ------
Number of Funds
in peer group: 338 335 290 190
------ ------ ------ ------
Peer group
average
annual total
return: 1.84% 4.14% 2.53% 3.14%
------ ------ ------ ------
Lipper categories in peer group: Money Market
FUND YIELD AT MARCH 31, 2008
Fund
---------------------
Retail Institutional
Class Class IBC Money Fund*
------ ------------- ---------------
7-day current..... 1.96%+ 2.06%+ 2.17%
7-day effective... 1.98% 2.08% 2.19%
- ---------------
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,
2008.
* IBC's Money Fund report provides average yield of all major money market
funds.
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 1 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.
100
GE MONEY MARKET FUND March 31, 2008 (unaudited)
Schedule of Investments
GE MONEY MARKET FUND
Portfolio Composition as a % of Market Value of $1,244,981 (in thousands) as of
March 31, 2008
[PIE CHART]
PRINCIPAL AMORTIZED
AMOUNT COST
SHORT-TERM INVESTMENTS -- 95.9%
U.S. GOVERNMENTS -- 33.7%
Federal Home Loan Bank
2.03%................ 04/23/09 $ 26,700,000 $ 26,700,000
Federal Home Loan Bank.
1.50%................ 04/01/08 110,500,000 110,500,000(d)
2.74%................ 05/21/08 7,080,000 7,053,253(d)
2.77%................ 04/25/08 6,680,000 6,667,709(d)
Federal Home Loan Mortgage
2.06%................ 03/24/09 41,070,000 41,070,000
2.11%................ 06/23/08 26,390,000 26,262,533(d)
2.13%................ 05/09/08 69,170,000 69,014,483(d)
3.93%................ 06/13/08 3,480,000 3,452,761(d)
Federal National Mortgage Assoc.
2.06%................ 07/09/08 26,390,000 26,241,226(d)
2.09%................ 09/10/08 7,520,000 7,449,951(d)
2.12%................ 08/06/08
-09/24/08 113,553,000 112,497,379(d)
436,909,295
COMMERCIAL PAPER -- 1.9%
Bank of America Corp.
4.87%................ 04/15/08 10,640,000 10,619,870
ING
2.96%................ 05/08/08 4,080,000 4,067,588
JP Morgan
4.95%................ 04/01/08 10,610,000 10,610,000
25,297,458
REPURCHASE AGREEMENTS -- 51.1%
Barclays Bank
2.29% dated 03/31/08,
to be repurchased at
$192,012,213 on
04/01/08
collateralized by
$195,841,544 U.S.
Government Agency
Bond, 0.00% maturing
07/10/09............. 192,000,000 192,000,000
Deutsche Bank
2.25% dated 03/31/08,
to be repurchased at
$194,912,181 on
04/01/08
collateralized by
$198,798,000 U.S.
Government Agency
Bond, 5.20%, 5.38%,
6.50%, 5.00%, 5.00%,
6.50%, 6.50%, 5.00%,
6.50%, 5.00%, 5.00%,
5.00% and 5.27%
maturing 04/01/38,
08/01/34, 12/01/47,
08/01/35, 11/01/37,
02/01/38, 09/01/37,
09/01/37, 08/01/37,
03/01/37, 01/01/37,
01/01/37 and 03/01/38
respectively......... 194,900,000 194,900,000
Goldman Sachs
2.25% dated 03/31/08,
to be repurchased at
$250,015,625 on
04/01/08
collateralized by
$255,000,514 U.S.
Government Agency
Bond, 4.88% and 2.50%
maturing 12/15/16 and
04/09/10
respectively......... 250,000,000 250,000,000
UBS Finance
1.35% dated 03/31/08,
to be repurchased at
$26,001,950 on
04/01/08
collateralized by
$26,522,158 U.S.
Government Agency
Bond, 4.50% maturing
02/15/36............. 26,000,000 26,000,000
662,900,000
CORPORATE NOTES -- 1.5%
Merrill Lynch &
Company, Inc.
3.06%................ 08/22/08 10,000,000 10,000,000(i)
Morgan Stanley Group
Inc.
3.27%................ 03/02/09 9,060,000 9,060,000
19,060,000
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
101
GE MONEY MARKET FUND March 31, 2008 (unaudited)
Schedule of Investments
PRINCIPAL AMORTIZED
AMOUNT COST
CERTIFICATES OF DEPOSIT -- 6.0%
Bank of Montreal
3.02%................ 06/06/08 12,000,000 $ 12,000,000
Bank Scotland
4.53%................ 05/05/08 9,400,000 9,400,000
BNP Paribas
4.68%................ 04/28/08 6,340,000 6,340,000
Canadian Imperial Bank
2.61%................ 10/22/08 8,470,000 8,470,000(i)
Citibank
4.68%................ 04/24/08 5,680,000 5,680,000
Clayon
2.98%................ 06/12/08 4,500,000 4,500,000
Credit Suisse
2.91%................ 04/14/08 9,480,000 9,480,000
Fortis Bank
3.00%................ 06/04/08 5,130,000 5,130,000
Rabobank Nederland
4.50%................ 05/09/08 3,820,000 3,820,000
4.59%................ 04/09/08 3,820,000 3,820,000
Royal Bank of Scotland
3.80%................ 05/19/08 6,000,000 6,000,000
Toronto-Dominion
4.70%................ 05/13/08 3,780,000 3,780,000
78,420,000
TIME DEPOSIT -- 1.7%
State Street Corp.
1.75%................ 04/01/08 22,393,942 22,393,942(e)
TOTAL SHORT TERM
INVESTMENTS (COST
$1,244,980,695)...... 1,244,980,695
OTHER ASSETS AND
LIABILITIES,
NET -- 4.1%.......... 52,870,023
--------------
NET ASSETS -- 100.0%... $1,297,850,718
==============
See Notes to Schedules of Investments on page 103 and Notes to Financial
Statements on page 128.
102
March 31, 2008 (unaudited)
Notes to Schedule of 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 31,2008, these securities amounted to
$36,389; $1,494,504; $9,128,022; $3,130,310; and $2,376,161; or 0.05%,
0.92%, 6.48%, 3.08% and 1.95% of net assets for the GE Global Equity Fund,
GE Strategic Investment Fund, GE Fixed Income Fund, GE Short-Term
Government 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 31,2008, 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 31,2008.
(j) All or a portion of the security out on loan.
(k) GEAM, the investment adviser of the GEI Investment Fund, also serves as
investment adviser of the Fund.
(l) Escrowed to maturity. Bonds are collateralized by U.S. Treasury
securities, which are held in escrow by a trustee and used to pay
principal and interest on such bonds.
(m) Prerefunded. Bonds are collateralized by U.S. Treasury securities, which
are held in escrow and are used to pay principal and interest on the tax-
exempt issue and to retire the bonds at the earliest refunding date.
(n) The security is insured by AMBAC, FSA, MBIA and FGIC. The GE Tax-Exempt
Fund had insurance concentrations of 5% or greater as of March 31, 2008
(as a percentage of net assets) as follows:
FSA................ 12.93%
AMBAC.............. 11.66%
FGIC............... 9.75%
MBIA............... 8.23%
(o) Sponsored by SSgA Funds Management, Inc., an affiliate of State Street
Bank & Trust Co., the Fund's custodian and accounting agent.
(p) GEAM, the investment adviser of the GE Money Market Fund, also serves as
investment adviser of the Fund.
(q) Illiquid securities.
- ---------
* Less than 0.1%.
** Denominated in USD unless otherwise indicated.
The maturity date disclosed for fixed income securities represents the earlier
of the first call date, the next interest reset date or the ultimate maturity
date.
Abbreviations:
ADR...... American Depository Receipt
AMBAC.... AMBAC Indemnity Corporation
FGIC..... Financial Guaranty Insurance Corporation
FSA...... Financial Security Assurance
GDR...... Global Depository 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
NVDR..... Non-Voting Depository Receipt
103
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE U.S. EQUITY FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- -------- -------- -------- -------- --------- ---------- ------- -------
INCEPTION DATE 1/5/93
Net asset value, beginning
of period................. $ 31.03 $ 30.00 $ 28.69 $ 26.41 $ 24.19 $ 20.31 $ 29.49 $ 28.62 $ 27.36
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)............. 0.11 0.34 0.29 0.36 0.20 0.16 0.01 0.12 0.06
Net realized and
unrealized gains
(losses) on
investments............ (3.32) 4.27 2.76 2.11 2.19 3.91 (3.17) 4.06 2.64
-------- -------- -------- -------- -------- --------- ---------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... (3.21) 4.61 3.05 2.47 2.39 4.07 (3.16) 4.18 2.70
-------- -------- -------- -------- -------- --------- ---------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.25 0.42 0.46 0.19 0.17 0.19 0.00 0.15 0.16
Net realized gains........ 2.99 3.16 1.28 -- -- -- 2.99 3.16 1.28
-------- -------- -------- -------- -------- --------- ---------- ------- -------
TOTAL DISTRIBUTIONS......... 3.24 3.58 1.74 0.19 0.17 0.19 2.99 3.31 1.44
-------- -------- -------- -------- -------- --------- ---------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 24.58 $ 31.03 $ 30.00 $ 28.69 $ 26.41 $ 24.19 $ 23.34 $ 29.49 $ 28.62
======== ======== ======== ======== ======== ========= ========== ======= =======
TOTAL RETURN (A)............ (11.21%) 16.59% 11.13% 9.40% 9.87% 20.09% (11.58%) 15.72% 10.28%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $263,651 $316,324 $298,764 $339,327 $337,920 $ 315,980 $ 3,318 $ 4,910 $ 6,738
Ratios to average net
assets:
Net investment income
(loss)*.............. 0.82% 1.15% 1.00% 1.28% 0.77% 0.72% 0.07% 0.43% 0.23%
Net expenses*.......... 0.79% 0.76% 0.80% 0.78% 0.78% 0.83% 1.54% 1.51% 1.55%
Gross expenses*........ 0.79% 0.76% 0.80% 0.78% 0.78% 0.83% 1.54% 1.51% 1.55%
Portfolio turnover rate... 57% 53% 46% 36% 29% 26% 57% 53% 46%
-------- -------- -------- -------- -------- --------- ---------- ------- -------
CLASS B
9/30/05 9/30/04 9/30/03
------- ---------- --------
INCEPTION DATE 12/22/93
Net asset value, beginning
of period................. $ 25.20 $ 23.11 $ 19.38
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)............. 0.16 0.00(c) (0.01)
Net realized and
unrealized gains
(losses) on
investments............ 2.00 2.09 3.74
------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... 2.16 2.09 3.73
------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income..... -- -- --
Net realized gains........ -- -- --
------- -------- --------
TOTAL DISTRIBUTIONS......... -- -- --
------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................... $ 27.36 $ 25.20 $ 23.11
======= ======= ========
TOTAL RETURN (A)............ 8.57% 9.04% 19.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $12,406 $ 19,373 $ 22,447
Ratios to average net
assets:
Net investment income
(loss)*.............. 0.58% 0.02% (0.03%)
Net expenses*.......... 1.53% 1.53% 1.58%
Gross expenses*........ 1.53% 1.53% 1.58%
Portfolio turnover rate... 36% 29% 26%
------- -------- --------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08(+) 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07 9/30/06
--------- ------- ------- ------- ------- ------- ---------- ---------- -------- --------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning
of period............... $ 29.00 $ 28.24 $ 27.07 $ 24.93 $ 22.93 $ 19.23 $ 25.12 $ 30.93 $ 29.92 $ 28.62
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)........... 0.01 0.12 0.07 0.15 -- (0.01) 0.03 0.15 0.41 0.37
Net realized and
unrealized gains
(losses) on
investments.......... (3.10) 4.00 2.60 1.99 2.07 3.75 (0.58) (3.32) 4.26 2.75
--------- ------- ------- ------- ------- ------- ---------- ---------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS... (3.09) 4.12 2.67 2.14 2.07 3.74 (0.55) (3.17) 4.67 3.12
--------- ------- ------- ------- ------- ------- ---------- ---------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income... 0.03 0.20 0.22 -- 0.07 0.04 0.00 0.33 0.50 0.54
Net realized gains...... 2.99 3.16 1.28 -- -- -- 0.00 2.99 3.16 1.28
--------- ------- ------- ------- ------- ------- ---------- ---------- -------- --------
TOTAL DISTRIBUTIONS....... 3.02 3.36 1.50 -- 0.07 0.04 0.00 3.32 3.66 1.82
--------- ------- ------- ------- ------- ------- ---------- ---------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 22.89 $ 29.00 $ 28.24 $ 27.07 $ 24.93 $ 22.93 $ 24.57 $ 24.44 $ 30.93 $ 29.92
========== ======= ======= ======= ======= ======= ========== ========== ======== ========
TOTAL RETURN (A).......... (11.56%) 15.71% 10.29% 8.58% 9.05% 19.46% (2.19%) (11.14%) 16.87% 11.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in
thousands)........... $ 5,283 $ 6,892 $ 7,649 $ 9,306 $12,355 $10,137 $ 10 $ 120,785 $136,756 $115,005
Ratios to average net
assets:
Net investment income
(loss)*............ 0.07% 0.42% 0.25% 0.57% 0.01% (0.04%) 0.77% 1.07% 1.39% 1.27%
Net expenses*........ 1.54% 1.51% 1.55% 1.53% 1.53% 1.57% 1.05% 0.54% 0.51% 0.54%
Gross expenses*...... 1.54% 1.51% 1.55% 1.53% 1.53% 1.57% 1.05% 0.54% 0.51% 0.54%
Portfolio turnover
rate................. 57% 53% 46% 36% 29% 26% 57% 57% 53% 46%
--------- ------- ------- ------- ------- ------- ---------- ---------- -------- --------
CLASS Y
9/30/05 9/30/04 9/30/03
-------- -------- --------
INCEPTION DATE 11/29/93
Net asset value, beginning
of period............... $ 26.35 $ 24.14 $ 20.26
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)........... 0.44 0.27 0.22
Net realized and
unrealized gains
(losses) on
investments.......... 2.10 2.17 3.91
-------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS... 2.54 2.44 4.13
-------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income... 0.27 0.23 0.25
Net realized gains...... -- -- --
-------- -------- --------
TOTAL DISTRIBUTIONS....... 0.27 0.23 0.25
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 28.62 $ 26.35 $ 24.14
======== ======== ========
TOTAL RETURN (A).......... 9.68% 10.13% 20.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in
thousands)........... $306,532 $346,807 $307,727
Ratios to average net
assets:
Net investment income
(loss)*............ 1.56% 1.02% 0.97%
Net expenses*........ 0.53% 0.53% 0.58%
Gross expenses*...... 0.53% 0.53% 0.58%
Portfolio turnover
rate................. 36% 29% 26%
-------- -------- --------
See Notes to Financial Highlights and Notes to Financial Statements.
104
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE CORE VALUE EQUITY FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- ---------- ------- -------
INCEPTION DATE 9/8/93
Net asset value, beginning of
period....................... $ 13.00 $ 11.93 $ 11.65 $ 10.94 $ 9.81 $ 8.29 $ 12.00 $ 11.38 $ 11.15
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)....................... 0.03 0.12 0.09 0.11 0.07 0.07 (0.01) 0.04 --
Net realized and unrealized
gains (losses) on
investments .............. (1.36) 1.91 1.17 1.04 1.13 1.54 (0.90) 1.81 1.11
-------- ------- ------- ------- ------- ------- ---------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........ (1.33) 2.03 1.26 1.15 1.20 1.61 (0.91) 1.85 1.11
-------- ------- ------- ------- ------- ------- ---------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.08 0.14 0.10 0.09 0.07 0.09 0.00 0.02 --
Net realized gains........... 2.16 1.00 0.88 0.35 -- -- 2.16 1.00 0.88
-------- ------- ------- ------- ------- ------- ---------- ------- -------
TOTAL DISTRIBUTIONS............ 2.24 1.14 0.98 0.44 0.07 0.09 2.16 1.02 0.88
-------- ------- ------- ------- ------- ------- ---------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 9.43 $ 12.82 $ 11.93 $ 11.65 $ 10.94 $ 9.81 $ 8.93 $ 12.21 $ 11.38
======== ======= ======= ======= ======= ======= ========== ======= =======
TOTAL RETURN (A)............... (10.44%) 18.00% 11.58% 10.73% 12.32% 19.49% (10.73%) 17.14% 10.66%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 44,112 $56,907 $58,024 $47,633 $48,065 $48,400 $ 2,088 $ 2,967 $ 4,201
Ratios to average net assets:
Net investment income
(loss)*................. 0.63% 1.02% 0.80% 1.00% 0.61% 0.73% (0.12%) 0.33% 0.04%
Net expenses*............. 1.19% 1.20% 1.20% 1.20% 1.20% 1.13% 1.94% 1.95% 1.95%
Gross expenses*........... 1.33% 1.20% 1.19% 1.21% 1.31% 1.18% 2.08% 1.95% 1.95%
Portfolio turnover rate...... 66% 59% 52% 35% 32% 29% 66% 59% 52%
-------- ------- ------- ------- ------- ------- ---------- ------- -------
CLASS B
9/30/05 9/30/04 9/30/03
------- ------- -------
INCEPTION DATE 9/8/93
Net asset value, beginning of
period....................... $ 10.47 $ 9.39 $ 7.93
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)....................... 0.03 (0.01) (0.00)(c)
Net realized and unrealized
gains (losses) on
investments .............. 1.00 1.09 1.46
------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........ 1.03 1.08 1.46
------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ -- -- --
Net realized gains........... 0.35 -- --
------- ------- -------
TOTAL DISTRIBUTIONS............ 0.35 -- --
------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 11.15 $ 10.47 $ 9.39
======= ======= =======
TOTAL RETURN (A)............... 9.88% 11.50% 18.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 6,342 $ 9,734 $13,568
Ratios to average net assets:
Net investment income
(loss)*................. 0.29% (0.13%) (0.02%)
Net expenses*............. 1.95% 1.95% 1.87%
Gross expenses*........... 1.96% 2.05% 1.92%
Portfolio turnover rate...... 35% 32% 29%
------- ------- -------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08(+) 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07 9/30/06
--------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning of
period..................... $ 12.00 $ 11.32 $ 11.10 $ 10.43 $ 9.37 $ 7.92 $ 9.66 $ 14.00 $ 12.71 $ 12.31
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (b).............. (0.01) 0.03 -- 0.03 (0.01) -- 0.01 0.06 0.17 0.14
Net realized and unrealized
gains (losses) on
investments............. (0.98) 1.81 1.11 0.99 1.08 1.48 (0.24) (1.38) 2.15 1.27
--------- ------- ------- ------- ------ ------- ---------- --------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS...... (0.99) 1.84 1.11 1.02 1.07 1.48 (0.23) (1.32) 2.32 1.41
--------- ------- ------- ------- ------ ------- ---------- --------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income...... 0.00 0.04 0.01 -- 0.01 0.03 0.00 0.11 0.12 0.13
Net realized gains......... 2.16 1.00 0.88 0.35 -- -- 0.00 2.16 1.00 0.88
--------- ------- ------- ------- ------ ------- ---------- --------- ------- -------
TOTAL DISTRIBUTIONS.......... 2.16 1.04 0.89 0.35 0.01 0.03 0.00 2.27 1.12 1.01
--------- ------- ------- ------- ------ ------- ---------- --------- ------- -------
NET ASSET VALUE, END OF
PERIOD..................... $ 8.85 $ 12.12 $ 11.32 $ 11.10 $10.43 $ 9.37 $ 9.43 $ 10.41 $ 13.91 $ 12.71
========= ======= ======= ======= ====== ======= ========= ========= ======= =======
TOTAL RETURN (A)............. 10.70%) 17.18% 10.72% 9.85% 11.43% 18.68% (2.38%) (10.21%) 19.25% 12.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands).......... $ 1,307 $ 1,535 $ 1,625 $ 1,695 $1,690 $ 1,783 $ 10 $ 10 $ $
Ratios to average net
assets:
Net investment income
(loss)*............... (0.12%) 0.29% 0.05% 0.24% (0.14%) (0.04%) 0.51% 1.05% 1.28% 1.11%
Net expenses*........... 1.94% 1.95% 1.95% 1.95% 1.95% 1.88% 1.46% 0.90% 0.95% 0.95%
Gross expenses*......... 2.08% 1.95% 1.94% 1.96% 2.05% 1.94% 1.62% 1.05% 0.95% 0.95%
Portfolio turnover rate.... 66% 59% 52% 35% 32% 29% 66% 66% 59% 52%
--------- ------- ------- ------- ------ ------- ---------- --------- ------- -------
CLASS Y
9/30/05 9/30/04 9/30/03
------- ------- -------
INCEPTION DATE 1/5/98
Net asset value, beginning of
period..................... $ 11.54 $ 10.37 $ 8.77
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (b).............. 0.15 0.10 0.09
Net realized and unrealized
gains (losses) on
investments............. 1.10 1.17 1.62
------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS...... 1.25 1.27 1.71
------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income...... 0.13 0.10 0.11
Net realized gains......... 0.35 -- --
------- ------- -------
TOTAL DISTRIBUTIONS.......... 0.48 0.10 0.11
------- ------- -------
NET ASSET VALUE, END OF
PERIOD..................... $ 12.31 $ 11.54 $ 10.37
======= ======= =======
TOTAL RETURN (A)............. 10.91% 12.29% 19.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands).......... $ 56 $ 42 $ 5,993
Ratios to average net
assets:
Net investment income
(loss)*............... 1.26% 0.93% 0.96%
Net expenses*........... 0.95% 0.95% 0.88%
Gross expenses*......... 0.96% 0.99% 0.94%
Portfolio turnover rate.... 35% 32% 29%
------- ------- -------
See Notes to Financial Highlights and Notes to Financial Statements.
105
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE SMALL-CAP EQUITY FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- ---------- ------- -------
INCEPTION DATE 9/30/98
Net asset value, beginning of
period....................... $ 16.13 $ 16.16 $ 15.70 $ 14.87 $ 12.67 $ 11.49 $ 14.82 $ 15.11 $ 14.81
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)....................... 0.01 (0.01) (0.02) 0.04 (0.06) (0.01) (0.03) (0.12) (0.14)
Net realized and unrealized
gains (losses) on
investments............... (1.76) 2.24 1.03 2.89 2.26 1.19 (1.60) 2.09 0.97
-------- ------- ------- ------- ------- ------- --------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........ (1.75) 2.23 1.01 2.93 2.20 1.18 (1.63) 1.97 0.83
-------- ------- ------- ------- ------- ------- --------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.00 -- 0.02 -- -- -- 0.00 -- --
Net realized gains........... 2.97 2.26 0.53 2.10 -- -- 2.97 2.26 0.53
-------- ------- ------- ------- ------- ------- --------- ------- -------
TOTAL DISTRIBUTIONS............ 2.97 2.26 0.55 2.10 -- -- 2.97 2.26 0.53
-------- ------- ------- ------- ------- ------- --------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 11.41 $ 16.13 $ 16.16 $ 15.70 $ 14.87 $ 12.67 $ 10.22 $ 14.82 $ 15.11
======== ======= ======= ======= ======= ======= ========= ======= =======
TOTAL RETURN (A)............... (12.47%) 14.87% 6.60% 20.87% 17.36% 10.27% (12.80%) 14.10% 5.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 47,270 $58,523 $59,397 $56,235 $48,852 $51,902 $ 5,238 $ 7,716 $10,583
Ratios to average net assets:
Net investment income
(loss)*................. 0.21% (0.03%) (0.13%) 0.26% (0.38%) (0.06%) (0.54%) (0.78%) (0.88%)
Net expenses*............. 1.33% 1.24% 1.21% 1.21% 1.24% 1.24% 2.08% 1.98% 1.96%
Gross expenses*........... 1.35% 1.24% 1.21% 1.21% 1.25% 1.24% 2.10% 1.98% 1.96%
Portfolio turnover rate...... 17% 37% 38% 34% 93% 122% 17% 37% 38%
-------- ------- ------- ------- ------- ------- --------- ------- -------
CLASS B
9/30/05 9/30/04 9/30/03
------- ------- -------
INCEPTION DATE 9/30/98
Net asset value, beginning of
period....................... $ 14.22 $ 12.22 $ 11.16
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)....................... (0.06) (0.16) (0.09)
Net realized and unrealized
gains (losses) on
investments............... 2.75 2.16 1.15
------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........ 2.69 2.00 1.06
------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ -- -- --
Net realized gains........... 2.10 -- --
------- ------- -------
TOTAL DISTRIBUTIONS............ 2.10 -- --
------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 14.81 $ 14.22 $ 12.22
======= ======= =======
TOTAL RETURN (A)............... 20.04% 16.37% 9.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $11,567 $11,885 $18,694
Ratios to average net assets:
Net investment income
(loss)*................. (0.46%) (1.15%) (0.81%)
Net expenses*............. 1.95% 1.99% 1.99%
Gross expenses*........... 1.96% 2.00% 1.99%
Portfolio turnover rate...... 34% 93% 122%
------- ------- -------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08(+) 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07 9/30/06
--------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning
of period................. $ 14.76 $ 15.07 $ 14.77 $ 14.19 $ 12.19 $ 11.14 $ 11.58 $ 16.50 $ 16.44 $ 15.99
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (b)............. (0.03) (0.12) (0.13) (0.06) (0.16) (0.09) -- 0.02 0.04 0.02
Net realized and
unrealized gains
(losses) on
investments............ (1.59) 2.07 0.96 2.74 2.16 1.14 (0.17) (1.80) 2.28 1.04
--------- ------- ------- ------- ------- ------- -------- --------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... (1.62) 1.95 0.83 2.68 2.00 1.05 (0.17) (1.78) 2.32 1.06
--------- ------- ------- ------- ------- ------- -------- --------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.00 -- -- -- -- -- 0.00 0.00 -- 0.08
Net realized gains........ 2.97 2.26 0.53 2.10 -- -- 0.00 2.97 2.26 0.53
--------- ------- ------- ------- ------- ------- -------- --------- ------- -------
TOTAL DISTRIBUTIONS......... 2.97 2.26 0.53 2.10 -- -- 0.00 2.97 2.26 0.61
--------- ------- ------- ------- ------- ------- -------- --------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 10.17 $ 14.76 $ 15.07 $ 14.77 $ 14.19 $ 12.19 $ 11.41 $ 11.75 $ 16.50 $ 16.44
========= ======= ======= ======= ======= ======= ======== ========= ======= =======
TOTAL RETURN (A)............ (12.80%) 13.99% 5.79% 20.02% 16.41% 9.43% (1.47%) (12.35%) 15.20% 6.85%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $ 5,659 $ 7,428 $ 7,668 $ 8,391 $ 9,615 $ 8,945 $ 10 $ 3,964 $ 8,053 $11,990
Ratios to average net
assets:
Net investment income
(loss)*.............. (0.54%) (0.78%) (0.88%) (0.44%) (1.12%) (0.83%) (0.08%) 0.47% 0.23% 0.10%
Net expenses*.......... 2.08% 1.99% 1.96% 1.95% 1.99% 2.01% 1.58% 1.08% 0.99% 0.95%
Gross expenses*........ 2.10% 1.99% 1.96% 1.96% 2.00% 2.01% 1.58% 1.09% 0.99% 0.95%
Portfolio turnover rate... 17% 37% 38% 34% 93% 122% 17% 17% 37% 38%
--------- ------- ------- ------- ------- ------- -------- --------- ------- -------
CLASS Y
9/30/05 9/30/04 9/30/03
------- ------- -------
INCEPTION DATE 9/30/98
Net asset value, beginning
of period................. $ 15.07 $ 12.81 $ 11.59
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(loss) (b)............. 0.08 (0.02) 0.02
Net realized and
unrealized gains
(losses) on
investments............ 2.94 2.28 1.20
------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... 3.02 2.26 1.22
------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... -- -- --
Net realized gains........ 2.10 -- --
------- ------- -------
TOTAL DISTRIBUTIONS......... 2.10 -- --
------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 15.99 $ 15.07 $ 12.81
======= ======= =======
TOTAL RETURN (A)............ 21.22% 17.64% 10.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $24,385 $23,144 $19,715
Ratios to average net
assets:
Net investment income
(loss)*.............. 0.54% (0.12%) 0.18%
Net expenses*.......... 0.96% 0.99% 1.01%
Gross expenses*........ 0.96% 1.00% 1.01%
Portfolio turnover rate... 34% 93% 122%
------- ------- -------
See Notes to Financial Highlights and Notes to Financial Statements.
106
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE GLOBAL EQUITY FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- ---------- ------- -------
INCEPTION DATE 1/5/93
Net asset value, beginning of
period...................... $ 32.08 $ 24.66 $ 21.05 $ 18.13 $ 16.07 $ 13.39 $ 29.48 $ 22.71 $ 19.41
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)...................... 0.11 0.18 0.10 0.19 0.04 0.04 (0.01) (0.03) (0.07)
Net realized and unrealized
gains (losses) on
investments ............. (2.64) 7.38 3.64 2.83 2.05 2.71 (2.41) 6.80 3.37
-------- ------- ------- ------- ------- ------- -------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS....... (2.53) 7.56 3.74 3.02 2.09 2.75 (2.42) 6.77 3.30
-------- ------- ------- ------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income....... 0.12 0.14 0.13 0.10 0.03 0.07 0.00 -- --
Net realized gains.......... 3.44 -- -- -- -- -- 3.44 -- --
-------- ------- ------- ------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS........... 3.56 0.14 0.13 0.10 0.03 0.07 3.44 -- --
-------- ------- ------- ------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD...................... $ 25.99 $ 32.08 $ 24.66 $ 21.05 $ 18.13 $ 16.07 $ 23.62 $ 29.48 $ 22.71
======== ======= ======= ======= ======= ======= ======== ======= =======
TOTAL RETURN (A).............. (8.55%) 30.78% 17.85% 16.67% 13.03% 20.56% (8.94%) 29.81% 17.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)........... $ 46,047 $50,051 $37,653 $32,038 $30,324 $27,864 $ 371 $ 457 $ 542
Ratios to average net
assets:
Net investment income
(loss)*................ 0.76% 0.64% 0.43% 0.95% 0.22% 0.26% (0.08%) (0.12%) (0.33%)
Net expenses*............ 1.42% 1.36% 1.46% 1.49% 1.65% 1.50% 2.18% 2.10% 2.21%
Gross expenses*.......... 1.42% 1.36% 1.46% 1.50% 1.67% 1.57% 2.18% 2.10% 2.21%
Portfolio turnover rate..... 64% 66% 57% 61% 28% 64% 64% 66% 57%
-------- ------- ------- ------- ------- ------- -------- ------- -------
CLASS B
9/30/05 9/30/04 9/30/03
------- ------- --------
INCEPTION DATE 12/22/93
Net asset value, beginning of
period...................... $ 16.76 $ 14.94 $ 12.48
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)...................... 0.04 (0.09) (0.07)
Net realized and unrealized
gains (losses) on
investments ............. 2.61 1.91 2.53
------- ------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS....... 2.65 1.82 2.46
------- ------- --------
LESS DISTRIBUTIONS FROM:
Net investment income....... -- -- --
Net realized gains.......... -- -- --
------- ------- --------
TOTAL DISTRIBUTIONS........... -- -- --
------- ------- --------
NET ASSET VALUE, END OF
PERIOD...................... $ 19.41 $ 16.76 $ 14.94
======= ======= ========
TOTAL RETURN (A).............. 15.81% 12.18% 19.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)........... $ 826 $ 1,047 $ 1,503
Ratios to average net
assets:
Net investment income
(loss)*................ 0.21% (0.51%) (0.51%)
Net expenses*............ 2.24% 2.40% 2.27%
Gross expenses*.......... 2.25% 2.42% 2.36%
Portfolio turnover rate..... 61% 28% 64%
------- ------- --------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08(+) 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07
-------- ------- ------- ------- ------- ------- ---------- ---------- -------
INCEPTION DATE 9/30/99 1/29/08
Net asset value,
beginning of period.... $ 29.66 $ 22.85 $ 19.54 $ 16.88 $ 15.04 $ 12.47 $ 25.98 $ 32.23 $ 24.77
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b).......... 0.03 -- (0.06) 0.04 (0.09) (0.07) 0.15 0.15 0.26
Net realized and
unrealized gains
(losses) on
investments......... (2.46) 6.81 3.37 2.62 1.93 2.64 (0.17) (2.67) 7.40
-------- ------- ------- ------- ------- ------- -------- --------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS.. (2.43) 6.81 3.31 2.66 1.84 2.57 (0.02) (2.52) 7.66
-------- ------- ------- ------- ------- ------- -------- --------- -------
LESS DISTRIBUTIONS FROM:
Net investment income.. 0.01 -- -- -- -- -- 0.00 0.20 0.20
Net realized gains..... 3.44 -- -- -- -- -- 0.00 3.44 --
-------- ------- ------- ------- ------- ------- -------- --------- -------
TOTAL DISTRIBUTIONS...... 3.45 -- -- -- -- -- 0.00 3.64 0.20
-------- ------- ------- ------- ------- ------- -------- --------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 23.78 $ 29.66 $ 22.85 $ 19.54 $ 16.88 $ 15.04 $ 25.96 $ 26.07 $ 32.23
======== ======= ======= ======= ======= ======= ======== ========= =======
TOTAL RETURN (A)......... (8.93%) 29.80% 16.94% 15.76% 12.23% 20.61% (0.08%) (8.47%) 31.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in
thousands).......... $ 548 $ 467 $ 318 $ 272 $ 423 $ 326 $ 10 $ 23,322 $25,544
Ratios to average net
assets:
Net investment
income (loss)*.... 0.20% (0.01%) (0.30%) 0.20% (0.51%) (0.47%) 3.32% 1.01% 0.91%
Net expenses*....... 2.17% 2.10% 2.21% 2.24% 2.40% 2.26% 1.66% 1.17% 1.10%
Gross expenses*..... 2.17% 2.10% 2.21% 2.25% 2.42% 2.33% 1.66% 1.17% 1.10%
Portfolio turnover
rate................ 64% 66% 57% 61% 28% 64% 64% 64% 66%
-------- ------- ------- ------- ------- ------- -------- --------- -------
CLASS Y
9/30/06 9/30/05 9/30/04 9/30/03
------- ------- ------- --------
INCEPTION DATE 11/29/93
Net asset value,
beginning of period.... $ 21.14 $ 18.21 $ 16.14 $ 13.45
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b).......... 0.16 0.24 0.09 0.08
Net realized and
unrealized gains
(losses) on
investments......... 3.66 2.84 2.05 2.72
------- ------- ------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS.. 3.82 3.08 2.14 2.80
------- ------- ------- --------
LESS DISTRIBUTIONS FROM:
Net investment income.. 0.19 0.15 0.07 0.11
Net realized gains..... -- -- -- --
------- ------- ------- --------
TOTAL DISTRIBUTIONS...... 0.19 0.15 0.07 0.11
------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 24.77 $ 21.14 $ 18.21 $ 16.14
======= ======= ======= ========
TOTAL RETURN (A)......... 18.14% 16.98% 13.31% 20.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in
thousands).......... $20,643 $18,183 $16,596 $ 13,548
Ratios to average net
assets:
Net investment
income (loss)*.... 0.69% 1.19% 0.49% 0.51%
Net expenses*....... 1.21% 1.24% 1.40% 1.26%
Gross expenses*..... 1.21% 1.25% 1.42% 1.34%
Portfolio turnover
rate................ 57% 61% 28% 64%
------- ------- ------- --------
See Notes to Financial Highlights and Notes to Financial Statements.
107
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE INTERNATIONAL EQUITY FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- ---------- ------- -------
INCEPTION DATE 3/2/94
Net asset value, beginning of
period....................... $ 25.05 $ 18.79 $ 15.87 $ 12.73 $ 10.58 $ 9.41 $ 23.29 $ 17.48 $ 14.79
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)....................... 0.15 0.23 0.16 0.14 0.09 0.07 0.02 0.04 0.02
Net realized and unrealized
gains (losses) on
investments............... (1.66) 6.21 2.90 3.07 2.11 1.17 (1.49) 5.82 2.70
-------- ------- ------- ------- ------- ------- -------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........ (1.51) 6.44 3.06 3.21 2.20 1.24 (1.47) 5.86 2.72
-------- ------- ------- ------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.23 0.16 0.14 0.07 0.05 0.07 0.02 0.03 0.03
Net realized gains........... 2.46 0.02 -- -- -- -- 2.46 0.02 --
-------- ------- ------- ------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS............ 2.69 0.18 0.14 0.07 0.05 0.07 2.48 0.05 0.03
-------- ------- ------- ------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 20.85 $ 25.05 $ 18.79 $ 15.87 $ 12.73 $ 10.58 $ 19.34 $ 23.29 $ 17.48
======== ======= ======= ======= ======= ======= ======== ======= =======
TOTAL RETURN (A)............... (6.50%) 34.50% 19.38% 25.32% 20.88% 13.18% (6.80%) 33.54% 18.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 64,107 $56,956 $40,564 $28,881 $23,144 $19,694 $ 1,080 $ 1,449 $ 1,473
Ratios to average net assets:
Net investment income
(loss)*................. 1.28% 1.06% 0.90% 0.97% 0.69% 0.75% 0.20% 0.22% 0.13%
Net expenses*............. 1.40% 1.45% 1.58% 1.42% 1.58% 1.51% 2.15% 2.20% 2.32%
Gross expenses*........... 1.47% 1.45% 1.58% 1.43% 1.58% 1.51% 2.22% 2.20% 2.32%
Portfolio turnover rate...... 37% 38% 39% 66% 31% 68% 37% 38% 39%
-------- ------- ------- ------- ------- ------- -------- ------- -------
CLASS B
9/30/05 9/30/04 9/30/03
------- ------------ -------
INCEPTION DATE 3/2/94
Net asset value, beginning of
period....................... $ 11.89 $ 9.92 $ 8.86
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)
(b)....................... 0.02 (0.00)(c) (0.01)
Net realized and unrealized
gains (losses) on
investments............... 2.88 1.98 1.07
------- -------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........ 2.90 1.98 1.06
------- -------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ -- 0.01 --
Net realized gains........... -- -- --
------- -------- -------
TOTAL DISTRIBUTIONS............ -- 0.01 --
------- -------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 14.79 $ 11.89 $ 9.92
======= ======== =======
TOTAL RETURN (A)............... 24.39% 19.97% 11.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 1,249 $ 1,286 $ 954
Ratios to average net assets:
Net investment income
(loss)*................. 0.12% (0.02%) (0.09%)
Net expenses*............. 2.18% 2.33% 2.25%
Gross expenses*........... 2.18% 2.33% 2.25%
Portfolio turnover rate...... 66% 31% 68%
------- -------- -------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07
-------- ------- ------- ------- ------- ----------- ---------- ---------- -------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning
of period............... $ 23.44 $ 17.58 $ 14.85 $ 11.94 $ 9.95 $ 8.85 $ 20.63 $ 25.33 $ 18.99
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)........... 0.05 0.05 0.02 0.03 (0.01) 0.00(c) 0.13 0.16 0.28
Net realized and
unrealized gains
(losses) on
investments.......... (1.53) 5.84 2.72 2.88 2.01 1.12 0.08 (1.65) 6.29
-------- ------- ------- ------- ------- -------- -------- --------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS... (1.48) 5.89 2.74 2.91 2.00 1.12 0.21 (1.49) 6.57
-------- ------- ------- ------- ------- -------- -------- --------- -------
LESS DISTRIBUTIONS FROM:
Net investment income... 0.07 0.01 0.01 -- 0.01 0.02 0.00 0.29 0.21
Net realized gains...... 2.46 0.02 -- -- -- -- 0.00 2.46 0.02
-------- ------- ------- ------- ------- -------- -------- --------- -------
TOTAL DISTRIBUTIONS....... 2.53 0.03 0.01 -- 0.01 0.02 0.00 2.75 0.23
-------- ------- ------- ------- ------- -------- -------- --------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 19.43 $ 23.44 $ 17.58 $ 14.85 $ 11.94 $ 9.95 $ 20.84 $ 21.09 $ 25.33
======== ======= ======= ======= ======= ======== ======== ========= =======
TOTAL RETURN (A).......... (6.80%) 33.53% 18.48% 24.37% 20.07% 12.62% 1.02% (6.36%) 34.85%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in
thousands)........... $ 1,289 $ 1,259 $ 1,031 $ 1,196 $ 1,081 $ 1,200 $ 10 $ 10,204 $10,354
Ratios to average net
assets:
Net investment income
(loss)*............ 0.43% 0.25% 0.12% 0.19% (0.09%) 0.05% 3.63% 1.40% 1.29%
Net expenses*........ 2.15% 2.20% 2.31% 2.17% 2.32% 2.27% 1.71% 1.15% 1.20%
Gross expenses*...... 2.22% 2.20% 2.31% 2.18% 2.33% 2.28% 1.78% 1.22% 1.20%
Portfolio turnover
rate................. 37% 38% 39% 66% 31% 68% 37% 37% 38%
-------- ------- ------- ------- ------- -------- -------- --------- -------
CLASS Y
9/30/06 9/30/05 9/30/04 9/30/03
------- ------- ------- -------
INCEPTION DATE 3/2/94
Net asset value, beginning
of period............... $ 16.01 $ 12.85 $ 10.68 $ 9.53
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)........... 0.09 0.18 0.12 0.09
Net realized and
unrealized gains
(losses) on
investments.......... 3.06 3.09 2.14 1.16
------- ------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS... 3.15 3.27 2.26 1.25
------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income... 0.17 0.11 0.09 0.10
Net realized gains...... -- -- -- --
------- ------- ------- -------
TOTAL DISTRIBUTIONS....... 0.17 0.11 0.09 0.10
------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 18.99 $ 16.01 $ 12.85 $ 10.68
======= ======= ======= =======
TOTAL RETURN (A).......... 19.83% 25.58% 21.22% 13.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in
thousands)........... $ 7,679 $69,794 $46,942 $37,413
Ratios to average net
assets:
Net investment income
(loss)*............ 0.51% 1.26% 0.95% 0.91%
Net expenses*........ 1.17% 1.17% 1.33% 1.25%
Gross expenses*...... 1.17% 1.17% 1.33% 1.26%
Portfolio turnover
rate................. 39% 66% 31% 68%
------- ------- ------- -------
See Notes to Financial Highlights and Notes to Financial Statements.
108
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE PREMIER GROWTH EQUITY FUND
CLASS A CLASS B
3/31/08 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- -------- -------- -------- -------- -------- ---------- -------- ---------
INCEPTION DATE ............ 12/31/96
Net asset value, beginning
of period ............... $ 27.15 $ 27.64 $ 26.96 $ 24.71 $ 23.26 $ 18.50 $ 24.71 $ 25.67 $ 25.27
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment loss (b).. 0.01 (0.02) 0.03 0.11 (0.01) (0.05) (0.08) (0.20) (0.16)
Net realized and
unrealized gains
(losses) on
investments .......... (2.50) 3.64 1.23 2.19 1.46 4.81 (2.25) 3.35 1.14
-------- -------- -------- -------- -------- -------- ---------- -------- ---------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ... (2.49) 3.62 1.26 2.30 1.45 4.76 (2.33) 3.15 0.98
-------- -------- -------- -------- -------- -------- ---------- -------- ---------
LESS DISTRIBUTIONS FROM:
Net investment income ... 0.00 -- -- 0.05 -- -- 0.00 -- --
Net realized gains ...... 2.56 4.11 0.58 -- -- -- 2.56 4.11 0.58
-------- -------- -------- -------- -------- -------- ---------- -------- ---------
TOTAL DISTRIBUTIONS ....... 2.56 4.11 0.58 0.05 -- -- 2.56 4.11 0.58
-------- -------- -------- -------- -------- -------- ---------- -------- ---------
NET ASSET VALUE, END OF
PERIOD .................. $ 22.10 $ 27.15 $ 27.64 $ 26.96 $ 24.71 $ 23.26 $ 19.82 $ 24.71 $ 25.67
-------- -------- -------- -------- -------- -------- ---------- -------- ---------
TOTAL RETURN (A) .......... (9.78%) 14.24% 4.69% 9.31% 6.23% 25.73% (10.11%) 13.40% 3.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ....... $184,501 $215,568 $224,381 $358,382 $378,947 $243,274 $ 8,831 $ 12,542 $ 16,432
Ratios to average net
assets:
Net investment income
(loss)* ............ 0.07% (0.07%) 0.12% 0.43% (0.04%) (0.23%) (0.68%) (0.82%) (0.64%)
Net expenses* ........ 1.06% 1.01% 1.02% 0.97% 1.00% 1.07% 1.81% 1.76% 1.77%
Gross expenses* ...... 1.06% 1.01% 1.02% 0.97% 1.00% 1.08% 1.81% 1.76% 1.77%
Portfolio turnover rate.. 29% 28% 25% 34% 21% 17% 29% 28% 25%
-------- -------- -------- -------- -------- -------- ---------- -------- ---------
CLASS B
9/30/05 9/30/04 9/30/03
-------- -------- --------
INCEPTION DATE 12/31/96
Net asset value, beginning
of period................. $ 23.29 $ 22.09 $ 17.70
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment loss (b)... (0.07) (0.19) (0.20)
Net realized and
unrealized gains
(losses) on
investments............ 2.05 1.39 4.59
-------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... 1.98 1.20 4.39
-------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income..... -- -- --
Net realized gains........ -- -- --
-------- -------- --------
TOTAL DISTRIBUTIONS......... -- -- --
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................... $ 25.27 $ 23.29 $ 22.09
-------- -------- --------
TOTAL RETURN (A)............ 8.50% 5.43% 24.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $ 27,629 $ 35,377 $ 34,657
Ratios to average net
assets:
Net investment income
(loss)*.............. (0.29%) (0.78%) (0.98%)
Net expenses*.......... 1.72% 1.75% 1.82%
Gross expenses*........ 1.72% 1.75% 1.82%
Portfolio turnover rate... 34% 21% 17%
-------- -------- --------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07 9/30/06
-------- ------- -------- ------- ------- ------- ---------- ---------- ------- -------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning
of period................ $ 24.72 $ 25.68 $ 25.28 $ 23.30 $ 22.10 $ 17.69 $ 22.19 $ 27.57 $ 28.11 $ 27.40
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)............ (0.07) (0.20) (0.16) (0.08) (0.19) (0.20) -- 0.04 0.04 0.10
Net realized and
unrealized gains
(losses) on
investments........... (2.27) 3.35 1.14 2.06 1.39 4.61 (0.10) (2.60) 3.70 1.25
-------- ------- -------- ------- ------- ------- ---------- ---------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS.... (2.34) 3.15 0.98 1.98 1.20 4.41 (0.10) (2.56) 3.74 1.35
-------- ------- -------- ------- ------- ------- ---------- ---------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income.... 0.00 -- -- -- -- -- 0.00 0.00 0.17 0.06
Net realized gains....... 2.56 4.11 0.58 -- -- -- 0.00 2.56 4.11 0.58
-------- ------- -------- ------- ------- ------- ---------- ---------- ------- -------
TOTAL DISTRIBUTIONS........ 2.56 4.11 0.58 -- -- -- 0.00 2.56 4.28 0.64
-------- ------- -------- ------- ------- ------- ---------- ---------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 19.82 $ 24.72 $ 25.68 $ 25.28 $ 23.30 $ 22.10 $ 22.09 $ 22.45 $ 27.57 $ 28.11
-------- ------- -------- ------- ------- ------- ---------- ---------- ------- -------
TOTAL RETURN (A)........... (10.15%) 13.40% 3.88% 8.50% 5.43% 24.93% (0.45%) (9.66%) 14.52% 4.94%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)........ $ 23,520 $31,467 $39,838 $63,433 $68,744 $47,482 $ 10 $ 6,208 $16,826 $66,149
Ratios to average net
assets:
Net investment income
(loss)*............. (0.68%) (0.82%) (0.63%) (0.32%) (0.79%) (0.99%) 0.01% 0.29% 0.17% 0.34%
Net expenses*......... 1.81% 1.76% 1.78% 1.72% 1.75% 1.83% 1.34% 0.81% 0.75% 0.76%
Gross expenses*....... 1.81% 1.76% 1.78% 1.72% 1.75% 1.84% 1.34% 0.81% 0.75% 0.76%
Portfolio turnover rate.. 29% 28% 25% 34% 21% 17% 29% 29% 28% 25%
-------- ------- -------- ------- ------- ------- ---------- ---------- ------- -------
CLASS Y
9/30/05 9/30/04 9/30/03
------- ------- --------
INCEPTION DATE 12/31/96
Net asset value, beginning
of period................ $25.13 $23.60 $18.72
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(loss) (b)............ 0.16 0.05 0.00(c)
Net realized and
unrealized gains
(losses) on
investments........... 2.26 1.48 4.88
------- ------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS.... 2.42 1.53 4.88
------- ------- --------
LESS DISTRIBUTIONS FROM:
Net investment income.... 0.15 -- --
Net realized gains....... -- -- --
------- ------- --------
TOTAL DISTRIBUTIONS........ 0.15 -- --
------- ------- --------
NET ASSET VALUE, END OF
PERIOD................... $27.40 $25.13 $23.60
TOTAL RETURN (A)........... 9.62% 6.48% 26.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)........ $209,902 $139,864 $93,875
Ratios to average net
assets:
Net investment income
(loss)*............. 0.58% 0.21% 0.02%
Net expenses*......... 0.72% 0.75% 0.82%
Gross expenses*....... 0.72% 0.75% 0.83%
Portfolio turnover rate.. 34% 21% 17%
------- ------- --------
See Notes to Financial Highlights and Notes to Financial Statements.
109
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE STRATEGIC INVESTMENT FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- -------- -------- -------- -------- -------- ---------- -------- --------
INCEPTION DATE 1/5/93
Net asset value, beginning
of period................. $27.03 $ 25.10 $ 24.94 $ 23.67 $ 22.19 $ 19.30 $ 26.02 $ 24.23 $ 24.13
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.20 0.46 0.44 0.43 0.30 0.31 0.10 0.26 0.25
Net realized and
unrealized gains
(losses) on
investments............ (1.96) 4.01 1.91 1.67 1.45 2.99 (1.88) 3.87 1.84
-------- -------- -------- -------- -------- -------- ---------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... (1.76) 4.47 2.35 2.10 1.75 3.30 (1.78) 4.13 2.09
-------- -------- -------- -------- -------- -------- ---------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.44 0.53 0.42 0.39 0.27 0.41 0.22 0.33 0.22
Net realized gains........ 2.29 2.01 1.77 0.44 -- -- 2.29 2.01 1.77
-------- -------- -------- -------- -------- -------- ---------- -------- --------
TOTAL DISTRIBUTIONS......... 2.73 2.54 2.19 0.83 0.27 0.41 2.51 2.34 1.99
-------- -------- -------- -------- -------- -------- ---------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................... $22.54 $ 27.03 $ 25.10 $ 24.94 $ 23.67 $ 22.19 $ 21.73 $ 26.02 $24.23
-------- -------- -------- -------- -------- -------- ---------- -------- --------
TOTAL RETURN (A)............ (7.05%) 19.03% 10.01% 8.90% 7.94% 17.33% (7.37%) 18.15% 9.18%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $130,368 $147,927 $133,003 $129,971 $128,471 $113,033 $ 11,340 $ 13,980 $14,942
Ratios to average net
assets:
Net investment
income*.............. 1.60% 1.82% 1.81% 1.74% 1.28% 1.50% 0.84% 1.07% 1.04%
Net expenses*.......... 0.90% 0.87% 0.89% 0.80% 0.81% 0.84% 1.65% 1.62% 1.64%
Gross expenses*........ 0.90% 0.87% 0.89% 0.81% 0.81% 0.84% 1.65% 1.62% 1.64%
Portfolio turnover rate... 144% 133% 118% 119% 135% 134% 144% 133% 118%
-------- -------- -------- -------- -------- -------- ---------- -------- --------
CLASS B
9/30/05 9/30/04 9/30/03
-------- -------- --------
INCEPTION DATE 12/22/93
Net asset value, beginning
of period................. $ 22.91 $ 21.50 $ 18.69
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.24 0.12 0.15
Net realized and
unrealized gains
(losses) on
investments............ 1.61 1.42 2.90
------- ------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... 1.85 1.54 3.05
------- ------- --------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.19 0.13 0.24
Net realized gains........ 0.44 -- --
------- ------- --------
TOTAL DISTRIBUTIONS......... 0.63 0.13 0.24
------- ------- --------
NET ASSET VALUE, END OF
PERIOD.................... $ 24.13 $ 22.91 $ 21.50
------- ------- --------
TOTAL RETURN (A)............ 8.13% 7.15% 16.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $17,746 $20,077 $ 17,297
Ratios to average net
assets:
Net investment
income*.............. 0.99% 0.53% 0.75%
Net expenses*.......... 1.55% 1.56% 1.59%
Gross expenses*........ 1.56% 1.56% 1.59%
Portfolio turnover rate... 119% 135% 134%
------- ------- --------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning
of period................. $ 25.36 $ 23.67 $ 23.62 $ 22.51 $ 21.18 $ 18.44 $ 22.72 $ 27.31 $ 25.34 $ 25.01
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.10 0.26 0.24 0.23 0.13 0.15 0.08 0.23 0.53 0.47
Net realized and
unrealized gains
(losses) on
investments............ (1.84) 3.77 1.80 1.58 1.39 2.89 (0.27) (1.97) 4.04 2.11
-------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... (1.74) 4.03 2.04 1.81 1.52 3.04 (0.19) (1.74) 4.57 2.58
-------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.28 0.33 0.22 0.26 0.19 0.30 0.00 0.51 0.59 0.48
Net realized gains........ 2.29 2.01 1.77 0.44 -- -- 0.00 2.29 2.01 1.77
-------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
TOTAL DISTRIBUTIONS......... 2.57 2.34 1.99 0.70 0.19 0.30 0.00 2.80 2.60 2.25
-------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 21.05 $ 25.36 $ 23.67 $ 23.62 $ 22.51 $ 21.18 $ 22.53 $ 22.77 $ 27.31 $ 25.34
-------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
TOTAL RETURN (A)............ (7.41%) 18.16% 9.18% 8.12% 7.14% 16.62%) (0.84% (6.92%) 19.31% 11.03%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $ 13,961 $14,462 $12,759 $15,975 $15,743 $ 5,355 $ 10 $ 5,985 $ 5,670 $ 3,161
Ratios to average net
assets:
Net investment
income*.............. 0.86% 1.07% 1.04% 0.99% 0.57% 0.74% 2.19% 1.89% 2.07% 1.82%
Net expenses*.......... 1.65% 1.62% 1.64% 1.55% 1.55% 1.58% 1.08% 0.65% 0.62% 0.56%
Gross expenses*........ 1.65% 1.62% 1.64% 1.56% 1.56% 1.58% 1.08% 0.65% 0.62% 0.56%
Portfolio turnover rate... 144% 133% 118% 119% 135% 134% 144% 144% 133% 118%
-------- ------- ------- ------- ------- ------- ---------- ---------- ------- -------
CLASS Y
9/30/05 9/30/04 9/30/03
-------- -------- ---------
INCEPTION DATE 11/29/93
Net asset value, beginning
of period................. $ 23.74 $ 22.24 $ 19.34
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.50 0.36 0.36
Net realized and
unrealized gains
(losses) on
investments............ 1.66 1.47 3.01
-------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... 2.16 1.83 3.37
-------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.45 0.33 0.47
Net realized gains........ 0.44 -- --
-------- -------- --------
TOTAL DISTRIBUTIONS......... 0.89 0.33 0.47
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................... $ 25.01 $ 23.74 $ 22.24
-------- -------- --------
TOTAL RETURN (A)............ 9.20% 8.22% 17.65%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $ 94,317 $107,340 $ 103,532
Ratios to average net
assets:
Net investment
income*.............. 2.01% 1.52% 1.75%
Net expenses*.......... 0.55% 0.56% 0.59%
Gross expenses*........ 0.56% 0.56% 0.59%
Portfolio turnover rate... 119% 135% 134%
-------- -------- --------
See Notes to Financial Highlights and Notes to Financial Statements.
110
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE GOVERNMENT SECURITIES FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- -------- -------- -------- -------- -------- ---------- ---------- -------
INCEPTION DATE 9/8/93
Net asset value, beginning
of period................. $ 8.60 $ 8.56 $ 8.69 $ 8.79 $ 8.90 $ 8.94 $ 8.68 $ 8.63 $ 8.77
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.16 0.34 0.32 0.28 0.25 0.30 0.13 0.28 0.26
Net realized and
unrealized gains
(losses) on
investments............ 0.45 0.04 (0.13) (0.10) (0.11) (0.04) 0.45 0.05 (0.14)
-------- -------- -------- -------- -------- -------- ---------- ---------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... 0.61 0.38 0.19 0.18 0.14 0.26 0.58 0.33 0.12
-------- -------- -------- -------- -------- -------- ---------- ---------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.16 0.34 0.32 0.28 0.25 0.30 0.13 0.28 0.26
Net realized gains........ 0.00 -- -- -- -- -- 0.00 -- --
-------- -------- -------- -------- -------- -------- ---------- ---------- -------
TOTAL DISTRIBUTIONS......... 0.16 0.34 0.32 0.28 0.25 0.30 0.13 0.28 0.26
-------- -------- -------- -------- -------- -------- ---------- ---------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 9.05 $ 8.60 $8.56 $ 8.69 $ 8.79 $ 8.90 $ 9.13 $ 8.68 $ 8.63
-------- -------- -------- -------- -------- -------- ---------- ---------- -------
TOTAL RETURN (A)............ 7.30% 4.57% 2.27% 2.08% 1.60% 2.95% 6.73% 3.91% 1.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $120,774 $119,640 $132,535 $154,259 $169,373 $194,705 $ 809 $ 896 $ 1,468
Ratios to average net
assets:
Net investment
income*.............. 3.68% 4.01% 3.76% 3.21% 2.80% 3.36% 2.93% 3.24% 3.01%
Net expenses*.......... 0.95% 0.89% 0.88% 0.86% 0.95% 0.87% 1.70% 1.64% 1.63%
Gross expenses*........ 0.98% 0.90% 0.88% 0.86% 0.96% 0.87% 1.73% 1.65% 1.63%
Portfolio turnover rate... 312% 323% 275% 148% 217% 151% 312% 323% 275%
-------- -------- -------- -------- -------- -------- ---------- ---------- -------
CLASS B
9/30/05 9/30/04 9/30/03
-------- -------- --------
INCEPTION DATE 4/22/87
Net asset value, beginning
of period................. $ 8.86 $ 8.98 $ 9.01
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.21 0.18 0.24
Net realized and
unrealized gains
(losses) on
investments............ (0.08) (0.12) (0.04)
-------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS..... 0.13 0.06 0.20
-------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.22 0.18 0.23
Net realized gains........ -- -- --
-------- -------- --------
TOTAL DISTRIBUTIONS......... 0.22 0.18 0.23
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................... $ 8.77 $ 8.86 $ 8.98
-------- -------- --------
TOTAL RETURN (A)............ 1.44% 0.74% 2.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $ 2,327 $ 5,159 $ 8,366
Ratios to average net
assets:
Net investment
income*.............. 2.43% 2.04% 2.68%
Net expenses*.......... 1.61% 1.70% 1.62%
Gross expenses*........ 1.62% 1.71% 1.62%
Portfolio turnover rate... 148% 217% 151%
-------- -------- --------
CLASS C (LEVEL LOAD)
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03
---------- ---------- ---------- ---------- ---------- ----------
INCEPTION DATE ......................... 9/30/99
Net asset value,
beginning of
period ............................... $ 8.71 $ 8.66 $ 8.80 $ 8.89 $ 9.00 $ 9.04
INCOME (LOSS) FROM
INVESTMENT
OPERATIONS:
Net investment
income (b) ........................ 0.13 0.28 0.26 0.22 0.18 0.24
Net realized and
unrealized
gains (losses)
on
investments ....................... 0.47 0.05 (0.14) (0.09) (0.11) (0.05)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL INCOME FROM
INVESTMENT
OPERATIONS ........................... 0.60 0.33 0.12 0.13 0.07 0.19
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
FROM:
Net investment
income ............................ 0.13 0.28 0.26 0.22 0.18 0.23
Net realized
gains ............................. 0.00 -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL
DISTRIBUTIONS ........................ 0.13 0.28 0.26 0.22 0.18 0.23
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END
OF PERIOD ............................ $ 9.18 $ 8.71 $ 8.66 $ 8.80 $ 8.89 $ 9.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN (A) ....................... 6.93% 3.90% 1.41% 1.44% 0.85% 2.19%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (in
thousands) ........................ $ 538 $ 294 $ 418 $ 543 $ 777 $ 1,047
Ratios to average
net assets:
Net investment
income* ......................... 2.84% 3.24% 3.01% 2.40% 2.04% 2.61%
Net expenses* ..................... 1.69% 1.64% 1.63% 1.61% 1.70% 1.62%
Gross
expenses* ....................... 1.71% 1.64% 1.63% 1.62% 1.71% 1.62%
Portfolio turnover
rate .............................. 312% 323% 275% 148% 217% 151%
---------- ---------- ---------- ---------- ---------- ----------
See Notes to Financial Highlights and Notes to Financial Statements.
111
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE SHORT-TERM GOVERNMENT FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- --------- ------- --------
INCEPTION DATE ............... 3/2/94
Net asset value, beginning of
period ..................... $ 11.29 $ 11.23 $ 11.31 $ 11.67 $ 12.04 $ 12.21 $ 11.27 $ 11.22 $ 11.29
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b)... 0.24 0.49 0.48 0.48 0.36 0.34 0.21 0.42 0.41
Net realized and unrealized
gains (losses) on
investments ............. 0.15 0.05 (0.09) (0.36) (0.25) (0.09) 0.15 0.05 (0.08)
-------- ------- ------- ------- ------- ------- --------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS ................. 0.39 0.54 0.39 0.12 0.11 0.25 0.36 0.47 0.33
-------- ------- ------- ------- ------- ------- --------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income ...... 0.24 0.48 0.47 0.48 0.36 0.41 0.21 0.42 0.40
Net realized gains ......... 0.00 -- -- -- 0.09 0.01 0.00 -- --
Return of capital .......... -- -- -- -- 0.03 -- -- -- --
-------- ------- ------- ------- ------- ------- --------- ------- -------
TOTAL DISTRIBUTIONS .......... 0.24 0.48 0.47 0.48 0.48 0.42 0.21 0.42 0.40
-------- ------- ------- ------- ------- ------- --------- ------- -------
NET ASSET VALUE, END OF
PERIOD ..................... $ 11.44 $ 11.29 $ 11.23 $ 11.31 $ 11.67 $ 12.04 $ 11.42 $ 11.27 $ 11.22
-------- ------- ------- ------- ------- ------- --------- ------- -------
TOTAL RETURN (A) ............. 3.50% 4.95% 3.51% 1.08% 0.91% 2.06% 3.19% 4.23% 2.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) .............. $39,869 $38,705 $37,676 $43,909 $53,825 $64,054 $ 2,318 $ 3,219 $ 4,543
Ratios to average net assets:
Net investment income* .. 4.25% 4.34% 4.27% 4.15% 3.02% 2.82% 3.67% 3.75% 3.67%
Net expenses* ........... 0.80% 0.80% 0.79% 0.78% 0.75% 0.73% 1.40% 1.40% 1.39%
Gross expenses* ......... 0.80% 0.80% 0.80% 0.86% 0.86% 0.80% 141% 1.40% 1.40%
Portfolio turnover rate .... 100% 114% 222% 91% 89% 110% 100% 114% 222%
-------- ------- ------- ------- ------- ------- --------- ------- -------
CLASS B
9/30/05 9/30/04 9/30/03
-------- -------- --------
INCEPTION DATE 3/2/94
Net asset value, beginning of
period....................... $ 11.65 $ 12.02 $ 12.19
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).... 0.41 0.29 0.27
Net realized and unrealized
gains (losses) on
investments............... (0.36) (0.25) (0.10)
-------- -------- --------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................... 0.05 0.04 0.17
-------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.41 0.29 0.33
Net realized gains........... -- 0.09 0.01
Return of capital............ -- 0.03 --
-------- -------- --------
TOTAL DISTRIBUTIONS............ 0.41 0.41 0.34
-------- -------- --------
NET ASSET VALUE, END OF
PERIOD....................... $ 11.29 $ 11.65 $ 12.02
-------- -------- --------
TOTAL RETURN (A)............... 0.47% 0.30% 1.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 4,243 $ 5,044 $5,206
Ratios to average net assets:
Net investment income*.... 3.55% 2.44% 2.20%
Net expenses*............. 1.38% 1.35% 1.32%
Gross expenses*........... 1.46% 1.46% 1.40%
Portfolio turnover rate...... 91% 89% 110%
-------- -------- --------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08(+) 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07 9/30/06
---------- ------- ------- ------- ------- ------- --------- ---------- ------- --------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning of
period..................... $ 11.27 $ 11.22 $ 11.29 $ 11.65 $ 12.02 12.19 $ 11.42 $ 11.25 $ 11.20 $ 11.27
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).. 0.20 0.40 0.39 0.39 0.26 0.24 0.07 0.25 0.51 0.49
Net realized and unrealized
gains (losses) on
investments............. 0.15 0.05 (0.08) (0.35) (0.24) (0.09) 0.02 0.16 0.05 (0.07)
---------- ------- ------- ------- ------- ------- --------- ---------- ------- --------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................. 0.35 0.45 0.31 0.04 0.02 0.15 0.09 0.41 0.56 0.42
---------- ------- ------- ------- ------- ------- --------- ---------- ------- --------
LESS DISTRIBUTIONS FROM:
Net investment income...... 0.20 0.40 0.38 0.40 0.27 0.31 0.07 0.26 0.51 0.49
Net realized gains......... -- -- -- -- 0.09 0.01 0.00 0.00 -- --
Return of capital.......... -- -- -- -- 0.03 -- -- -- -- --
---------- ------- ------- ------- ------- ------- --------- ---------- ------- --------
TOTAL DISTRIBUTIONS.......... 0.20 0.40 0.38 0.40 0.39 0.32 0.07 0.26 0.51 0.49
---------- ------- ------- ------- ------- ------- --------- ---------- ------- --------
NET ASSET VALUE, END OF
PERIOD..................... $ 11.42 $ 11.27 $ 11.22 $ 11.29 $ 11.65 $12.02 $ 11.44 $ 11.40 $ 11.25 $ 11.20
---------- ------- ------- ------- ------- ------- --------- ---------- ------- --------
TOTAL RETURN (A)............. 3.12% 4.08% 2.83% 0.32% 0.14% 1.29% 0.82% 3.64% 5.12% 3.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands).......... $ 2,824 $ 3,039 $ 4,007 $ 5,322 $ 7,591 8,281 $ 10 $ 56,478 $54,444 $ 50,153
Ratios to average net
assets:
Net investment income*.. 3.50% 3.60% 3.53% 3.38% 2.24% 1.99% 3.74% 4.50% 4.59% 4.39%
Net expenses*........... 1.55% 1.55% 1.55% 1.53% 1.50% 1.47% 1.03% 0.55% 0.55% 0.54%
Gross expenses*......... 1.55% 1.55% 1.56% 1.61% 1.61% 1.55% 1.03% 0.55% 0.55% 0.55%
Portfolio turnover rate.... 100% 114% 222% 91% 89% 110% 100% 100% 114% 222%
---------- ------- ------- ------- ------- ------- --------- ---------- ------- --------
CLASS Y
9/30/05 9/30/04 9/30/03
---------- ------- -------
INCEPTION DATE 3/2/94
Net asset value, beginning of
period..................... $ 11.63 $ 12.00 $ 12.17
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).. 0.52 0.38 0.40
Net realized and unrealized
gains (losses) on
investments............. (0.37) (0.23) (0.12)
---------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................. 0.15 0.15 0.28
---------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income...... 0.51 0.40 0.44
Net realized gains......... -- 0.09 0.01
Return of capital.......... -- 0.03 --
---------- ------- -------
TOTAL DISTRIBUTIONS.......... 0.51 0.52 0.45
---------- ------- -------
NET ASSET VALUE, END OF
PERIOD..................... $ 11.27 $ 11.63 $ 12.00
---------- ------- -------
TOTAL RETURN (A)............. 1.32% 1.26% 2.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands).......... $ 7,302 $ 7,821 $ 1,160
Ratios to average net
assets:
Net investment income*.. 4.41% 3.41% 3.33%
Net expenses*........... 0.53% 0.50% 0.47%
Gross expenses*......... 0.61% 0.62% 0.52%
Portfolio turnover rate.... 91% 89% 110%
---------- ------- -------
See Notes to Financial Highlights and Notes to Financial Statements.
112
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE TAX-EXEMPT FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- ---------- -------- -------
INCEPTION DATE 9/8/93
Net asset value, beginning of
period....................... $ 11.41 $ 11.63 $ 11.77 $ 12.04 $ 12.19 $ 12.21 $ 11.41 $ 11.63 $ 11.77
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).... 0.22 0.46 0.46 0.45 0.43 0.44 0.17 0.38 0.37
Net realized and unrealized
gains (losses) on
investments............... (0.04) (0.22) (0.14) (0.27) (0.15) (0.02) (0.05) (0.23) (0.14)
-------- ------- ------- ------- ------- ------- -------- -------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................... 0.18 0.24 0.32 0.18 0.28 0.42 0.12 0.15 0.23
-------- ------- ------- ------- ------- ------- -------- -------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.22 0.46 0.46 0.45 0.43 0.44 0.17 0.37 0.37
Net realized gains........... 0.00 -- -- -- -- 0.00 0.00 -- --
-------- ------- ------- ------- ------- ------- -------- -------- -------
TOTAL DISTRIBUTIONS............ 0.22 0.46 0.46 0.45 0.43 0.44 0.17 0.37 0.37
-------- ------- ------- ------- ------- ------- -------- -------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 11.37 $ 11.41 $ 11.63 $ 11.77 $ 12.04 $ 12.19 $ 11.36 $ 11.41 $ 11.63
======== ======= ======= ======= ======= ======= ======== ======== =======
TOTAL RETURN (A)............... 1.56% 2.11% 2.82% 1.50% 2.37% 3.54% 1.08% 1.35% 2.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 29,229 $29,433 $26,327 $29,685 $40,638 $41,541 $ 414 $ 484 $ 849
Ratios to average net assets:
Net investment income*.... 3.78% 4.00% 3.98% 3.77% 3.58% 3.59% 3.03% 3.27% 3.24%
Net expenses*............. 0.87% 0.87% 0.87% 0.87% 0.87% 0.85% 1.62% 1.62% 1.62%
Gross expenses*........... 1.14% 1.12% 1.04% 0.96% 0.90% 0.86% 1.89% 1.87% 1.79%
Portfolio turnover rate...... 47% 40% 43% 39% 17% 30% 47% 40% 43%
-------- ------- ------- ------- ------- ------- -------- -------- -------
CLASS B
9/30/05 9/30/04 9/30/03
-------- ------- -------
INCEPTION DATE 9/8/93
Net asset value, beginning of
period....................... $ 12.04 $ 12.18 $ 12.21
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).... 0.36 0.34 0.35
Net realized and unrealized
gains (losses) on
investments............... (0.27) (0.14) (0.03)
------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................... 0.09 0.20 0.32
------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.36 0.34 0.35
Net realized gains........... -- -- --
------- ------- -------
TOTAL DISTRIBUTIONS............ 0.36 0.34 0.35
------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 11.77 $ 12.04 $ 12.18
======= ======= =======
TOTAL RETURN (A)............... 0.75% 1.69% 2.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 1,630 $ 2,582 $ 3,779
Ratios to average net assets:
Net investment income*.... 3.02% 2.82% 2.89%
Net expenses*............. 1.62% 1.62% 1.60%
Gross expenses*........... 1.71% 1.66% 1.61%
Portfolio turnover rate...... 39% 17% 30%
------- ------- -------
CLASS C (LEVEL LOAD) CLASS Y
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- ------- ------- ------- ------- ------- --------- -------- -------
INCEPTION DATE 9/30/99
Net asset value, beginning of
period....................... $ 11.41 $ 11.62 $ 11.76 $ 12.04 $ 12.18 $ 12.21 $ 12.34 $ 12.57 $ 12.72
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).... 0.17 0.37 0.38 0.36 0.34 0.35 0.25 0.53 0.53
Net realized and unrealized
gains (losses) on
investments............... (0.05) (0.21) (0.14) (0.28) (0.14) (0.03) (0.05) (0.23) (0.15)
------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................... 0.12 0.16 0.24 0.08 0.20 0.32 0.20 0.30 0.38
------- ------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.17 0.37 0.38 0.36 0.34 0.35 0.25 0.53 0.53
Net realized gains........... 0.00 -- -- -- -- -- 0.00 -- --
------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS............ 0.17 0.37 0.38 0.36 0.34 0.35 0.25 0.53 0.53
------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 11.36 $ 11.41 $ 11.62 $ 11.76 $ 12.04 $ 12.18 $ 12.29 $ 12.34 $ 12.57
======= ======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN (A)............... 1.08% 1.44% 2.06% 0.66% 1.69% 2.77% 1.63% 2.43% 3.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 187 $ 228 $ 364 $ 956 $ 1,771 $ 2,711 $ 36 $ 36 $ 35
Ratios to average net assets:
Net investment income*.... 3.02% 3.27% 3.27% 3.03% 2.83% 2.90% 4.04% 4.25% 4.24%
Net expenses*............. 1.62% 1.62% 1.63% 1.63% 1.62% 1.60% 0.61% 0.62% 0.61%
Gross expenses*........... 1.89% 1.87% 1.79% 1.71% 1.66% 1.60% 0.88% 0.87% 0.77%
Portfolio turnover rate...... 47% 40% 43% 39% 17% 30% 47% 40% 43%
------- ------- ------- ------- ------- ------- ------- ------- -------
CLASS Y
9/30/05 9/30/04 9/30/03
-------- ------- -------
INCEPTION DATE 9/26/97
Net asset value, beginning of
period....................... $ 13.04 $ 13.18 $ 12.70
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).... 0.51 0.50 0.48
Net realized and unrealized
gains (losses) on
investments............... (0.31) (0.14) 0.50**
------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................... 0.20 0.36 0.98
------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income........ 0.52 0.50 0.50**
Net realized gains........... -- -- --
------- ------- -------
TOTAL DISTRIBUTIONS............ 0.52 0.50 0.50
------- ------- -------
NET ASSET VALUE, END OF
PERIOD....................... $ 12.72 $ 13.04 $ 13.18
======= ======= =======
TOTAL RETURN (A)............... 1.54% 2.81% 7.88%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)................ $ 34 $ 33 $ 287
Ratios to average net assets:
Net investment income*.... 3.98% 3.81% 3.70%
Net expenses*............. 0.62% 0.62% 0.62%
Gross expenses*........... 0.71% 0.66% 0.63%
Portfolio turnover rate...... 39% 17% 30%
------- ------- -------
See Notes to Financial Highlights and Notes to Financial Statements.
113
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE FIXED INCOME FUND
CLASS A CLASS B
3/31/08+ 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 9/30/07 9/30/06
-------- -------- -------- -------- -------- -------- --------- ------- -------
INCEPTION DATE 1/5/93
Net asset value, beginning
of period................. $ 11.84 $ 11.90 $ 12.12 $ 12.56 $ 12.78 $ 12.75 $ 11.84 $ 11.90 $ 12.12
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment
income (b)............. 0.27 0.61 0.57 0.48 0.41 0.41 0.22 0.52 0.48
Net realized and
unrealized gains
(losses) on
investments............ 0.21 (0.07) (0.20) (0.22) (0.04) 0.16 0.21 (0.06) (0.19)
-------- -------- -------- -------- -------- -------- ------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................ 0.48 0.54 0.37 0.26 0.37 0.57 0.43 0.46 0.29
-------- -------- -------- -------- -------- -------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.27 0.60 0.56 0.47 0.42 0.44 0.22 0.52 0.48
Net realized gains........ 0.00 -- 0.03 0.23 0.17 0.10 0.00 -- 0.03
-------- -------- -------- -------- -------- -------- ------- ------- -------
TOTAL DISTRIBUTIONS......... 0.27 0.60 0.59 0.70 0.59 0.54 0.22 0.52 0.51
-------- -------- -------- -------- -------- -------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 12.05 $ 11.84 $ 11.90 $ 12.12 $ 12.56 $ 12.78 $ 12.05 $ 11.84 $ 11.90
======== ======== ======== ======== ======== ======== ======= ======= =======
TOTAL RETURN (A)............ 4.07% 4.77% 3.13% 2.11% 2.99% 4.58% 3.60% 3.99% 2.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $123,397 $121,475 $130,779 $142,688 $153,014 $167,091 $ 1,074 $ 1,472 $ 2,078
Ratios to average net
assets:
Net investment
income*.............. 4.46% 5.10% 4.84% 3.85% 3.30% 3.20% 3.74% 4.34% 4.08%
Net expenses*.......... 0.85% 0.82% 0.80% 0.80% 0.78% 0.78% 1.60% 1.57% 1.55%
Gross expenses*........ 0.85% 0.83% 0.86% 0.81% 0.79% 0.78% 1.60% 1.58% 1.61%
Portfolio turnover rate... 431% 385% 337% 311% 363% 381% 431% 385% 337%
-------- -------- -------- -------- -------- -------- ------- ------- -------
CLASS B
9/30/05 9/30/04 9/30/03
------- ------- -------
INCEPTION DATE 12/22/93
Net asset value, beginning
of period................. $ 12.56 $ 12.78 $ 12.76
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income (b) 0.38 0.32 0.31
Net realized and
unrealized gains
(losses) on
investments............ (0.21) (0.04) 0.15
------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................ 0.17 0.28 0.46
------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.38 0.33 0.34
Net realized gains........ 0.23 0.17 0.10
------- ------- -------
TOTAL DISTRIBUTIONS......... 0.61 0.50 0.44
------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 12.12 $ 12.56 $ 12.78
======= ======= =======
TOTAL RETURN (A)............ 1.34% 2.22% 3.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $ 2,728 $ 3,208 $ 3,555
Ratios to average net
assets:
Net investment
income*.............. 3.09% 2.55% 2.45%
Net expenses*.......... 1.55% 1.53% 1.53%
Gross expenses*........ 1.56% 1.54% 1.54%
Portfolio turnover rate... 311% 363% 381%
------- ------- -------
CLASS C (LEVEL LOAD) CLASS R CLASS Y
3/31/08(+) 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03 3/31/08(+) 3/31/08(+) 9/30/07 9/30/06
--------- ------- ------- ------- ------- ------- --------- --------- ------- -------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning
of period................. $ 11.86 $ 11.91 $ 12.14 $ 12.57 $ 12.79 $ 12.76 $ 12.15 $ 11.84 $ 11.89 $ 12.11
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.22 0.52 0.49 0.38 0.32 0.30 0.08 0.28 0.64 0.61
Net realized and
unrealized gains
(losses) on
investments............ 0.21 (0.05) (0.21) (0.20) (0.04) 0.17 (0.10) 0.20 (0.06) (0.21)
------- ------- ------- ------- ------- ------- ------- -------- ------- -------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................ 0.43 0.47 0.28 0.18 0.28 0.47 (0.02) 0.48 0.58 0.40
------- ------- ------- ------- ------- ------- ------- -------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.22 0.52 0.48 0.38 0.33 0.34 0.08 0.28 0.63 0.59
Net realized gains........ 0.00 -- 0.03 0.23 0.17 0.10 0.00 0.00 -- 0.03
------- ------- ------- ------- ------- ------- ------- -------- ------- -------
TOTAL DISTRIBUTIONS......... 0.22 0.52 0.51 0.61 0.50 0.44 0.08 0.28 0.63 0.62
------- ------- ------- ------- ------- ------- ------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................... $ 12.07 $ 11.86 $ 11.91 $ 12.14 $ 12.57 $ 12.79 $ 12.05 $ 12.04 $ 11.84 $ 11.89
======= ======= ======= ======= ======= ======= ======= ======== ======= =======
TOTAL RETURN (A)............ 3.68% 3.99% 2.37% 1.43% 2.22% 3.78% (0.17%) 4.12% 5.03% 3.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $ 1,076 $ 1,108 $ 1,237 $ 1,731 $ 2,681 $ 3,274 $ 10 $ 15,297 $14,221 $14,900
Ratios to average net
assets:
Net investment
income*.............. 3.71% 4.34% 4.09% 3.10% 2.55% 2.36% 3.92% 4.72% 5.35% 4.99%
Net expenses*.......... 1.60% 1.57% 1.55% 1.55% 1.53% 1.52% 1.09% 0.60% 0.57% 0.55%
Gross expenses*........ 1.60% 1.58% 1.61% 1.56% 1.54% 1.53% 1.09% 0.60% 0.58% 0.58%
Portfolio turnover rate... 431% 385% 337% 311% 363% 381% 431% 431% 385% 337%
------- ------- ------- ------- ------- ------- ------- -------- ------- -------
CLASS Y
9/30/05 9/30/04 9/30/03
------- ------- --------
INCEPTION DATE 11/29/93
Net asset value, beginning
of period................. $ 12.55 $ 12.77 $ 12.75
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income
(b).................... 0.51 0.44 0.44
Net realized and
unrealized gains
(losses) on
investments............ (0.22) (0.04) 0.15
------- ------- --------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................ 0.29 0.40 0.59
------- ------- --------
LESS DISTRIBUTIONS FROM:
Net investment income..... 0.50 0.45 0.47
Net realized gains........ 0.23 0.17 0.10
------- ------- --------
TOTAL DISTRIBUTIONS......... 0.73 0.62 0.57
------- ------- --------
NET ASSET VALUE, END OF
PERIOD.................... $ 12.11 $ 12.55 $ 12.77
======= ======= ========
TOTAL RETURN (A)............ 2.36% 3.24% 4.75%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)......... $87,216 $94,622 $110,539
Ratios to average net
assets:
Net investment
income*.............. 4.10% 3.55% 3.45%
Net expenses*.......... 0.55% 0.53% 0.53%
Gross expenses*........ 0.56% 0.54% 0.53%
Portfolio turnover rate... 311% 363% 381%
------- ------- --------
See Notes to Financial Highlights and Notes to Financial Statements.
114
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE MONEY MARKET FUND
RETAIL CLASS
3/31/08 9/30/07 9/30/06 9/30/05 9/30/04 9/30/03
--------- --------- --------- --------- --------- ---------
INCEPTION DATE 1/5/93
Net asset value,
beginning of
period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.0
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (b) ....... 0.02 0.05 0.04 0.02 0.01 0.01(b)
Net realized and
unrealized gains
(losses) in
investments.......
--------- --------- --------- --------- --------- ---------
TOTAL INCOME FROM
INVESTMENT
OPERATIONS ....... 0.02 0.05 0.04 0.02 0.01 0.01
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
FROM:
Net investment
income (loss).. 0.02 0.05 0.04 0.02 0.01 0.01
Net realized
gains..........
--------- --------- --------- --------- --------- ---------
TOTAL
DISTRIBUTIONS .... 0.02 0.05 0.04 0.02 0.01 0.0
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END
OF PERIOD ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.01
========= ========= ========= ========= ========= =========
TOTAL RETURN (A) ... 2.05% 5.09% 4.38% 2.36% 0.89% 0.96%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (in
thousands) .... $ 212,012 $ 265,440 $ 214,333 $ 214,638 $ 234,979 $ 269,533
Ratios to average
net assets:
Net investment
income* ..... 4.09% 4.97% 4.29% 2.32% 0.85% 0.94%
Net expenses*.. 0.48% 0.39% 0.41% 0.40% 0.35% 0.41%
Gross
expenses* ... 0.48% 0.39% 0.41% 0.40% 0.35% 0.41%
--------- --------- --------- --------- --------- ---------
INSTITUTIONAL CLASS
3/31/08
-------------------
INCEPTION DATE 3/17/08
Net asset value, beginning of
period......................... $ 1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (b)....... --
Net realized and unrealized gains
(losses) in investments....... --
-----------
TOTAL INCOME FROM INVESTMENT
OPERATIONS..................... --
-----------
LESS DISTRIBUTIONS FROM:
Net investment income (loss)... 0.00
Net realized gains............. --
-----------
TOTAL DISTRIBUTIONS.............. 0.00
-----------
NET ASSET VALUE, END
OF PERIOD...................... $ 1.00
===========
TOTAL RETURN (A)................. 0.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands)....... $ 1,085,838
Ratios to average net assets:
Net investment income*...... 2.37%
Net expenses*............... 0.28%
Gross expenses*............. 0.28%
-----------
See Notes to Financial Highlights and Notes to Financial Statements.
115
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.
(b) Net investment income per share is based on average shares outstanding
during the period.
(c) Less than $0.01 per share.
(d) Less than $1,000 of asset in share class.
* Annualized for periods lees 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 Highlights and Notes to Financial Statements.
116
[This page intentionally left blank.]
GE GE GE GE
U.S. CORE VALUE SMALL-CAP GLOBAL
Statements of Assets EQUITY EQUITY EQUITY EQUITY
and Liabilities March 31, 2008 FUND FUND FUND FUND
- -------------------------------------------- ------------ ----------- ----------- -----------
ASSETS
Investments in securities, at market**
(cost $384,575,362; $47,204,910;
$59,617,583; $60,608,355; $62,616,568;
$211,150,957; $139,655,846
$131,497,609; $106,040,554;
$29,244,162; $144,316,640 and $0
respectively).......................... $387,350,855 $46,631,435 $62,206,649 $69,262,747
Investments in affiliated securities (at
cost $170,548; $27,091; $19,536,
$61,254;$37,103; $28,866; $541,846;
$825,573; $191,793; $7,430; and
$917,718 and $0 respectively), at
market................................. 133,028 21,131 15,238 47,778
Short-term Investments (at amortized
cost).................................. 485,000 -- -- --
Repurchase Agreements..................... -- -- -- --
Short-term affiliated investments (at
amortized cost)........................ 5,306,898 874,368 1,000 1,368,535
Cash...................................... -- -- -- --
Restricted cash........................... -- -- -- --
Foreign currency (cost $0; $0; $0;
$184,034; $297,216; $0; $32,095;
$12,086; $0; $0; $14,503 and $0
respectively).......................... -- -- -- 185,603
Receivable for investments sold........... 3,407,597 563,850 358,693 770,145
Income receivables........................ 466,417 69,139 69,436 490,193
Receivable for fund shares sold........... 199,517 26,392 18,636 88,072
Variation margin receivable............... 3,330 1,275 -- --
Other assets.............................. -- -- -- 12,198
------------ ----------- ----------- -----------
TOTAL ASSETS........................... 397,352,642 48,187,590 62,669,652 72,225,271
------------ ----------- ----------- -----------
LIABILITIES
Distribution payable to shareholders...... -- -- 2,737 --
Foreign currency overdraft (cost $
(1,518); $(106); $0; $0; $0; $0; $0;
$0; $0; $0; $0; and $0 respectively)... 1,501 106 -- --
Payable upon return of securities loaned.. -- -- -- --
Payable for investments purchased......... 3,485,478 345,922 52,148 1,607,701
Payable for fund shares redeemed.......... 190,212 49,644 88,000 30,983
Payable to GEAM........................... 592,632 28,408 243,105 216,848
Accrued other expenses.................... 34,238 236,252 48,137 71,578
Variation margin payable.................. -- -- -- --
Interest/dividend payable................. -- -- -- 68
Other liabilities......................... 1,535 205 283 194
Payable to custodian...................... -- -- 93,916 --
------------ ----------- ----------- -----------
TOTAL LIABILITIES...................... 4,305,596 660,537 528,326 1,927,372
------------ ----------- ----------- -----------
NET ASSETS.................................. 393,047,046 47,527,053 62,141,326 70,297,899
============ =========== =========== ===========
NET ASSETS CONSIST OF:
Capital paid in........................... 388,828,227 47,490,023 58,818,840 59,299,382
Undistributed (distribution in excess of)
net investment income.................. 852,095 63,032 74,900 360,834
Accumulated net realized gain (loss)...... 617,725 549,683 522,927 1,991,500
Net unrealized appreciation/
(depreciation) on:
Investments............................ 2,737,973 (579,435) 2,724,659 8,640,916
Futures................................ 11,009 3,750 -- 45
Written Options........................ -- -- -- --
Foreign currency related transaction... 17 -- -- 5,222
------------ ----------- ----------- -----------
NET ASSETS.................................. $393,047,046 $47,527,053 $62,141,326 $70,297,899
============ =========== =========== ===========
118
GE GE GE GE GE GE GE
INTERNATIONAL PREMIER STRATEGIC GOVERNMENT SHORT-TERM GE FIXED MONEY
EQUITY GROWTH EQUITY INVESTMENT SECURITIES GOVERNMENT TAX-EXEMPT INCOME MARKET
FUND FUND FUND FUND FUND FUND FUND FUND
- ----------- ------------ ------------ ------------ ------------ ----------- ------------ -------------
$75,103,572 $216,445,291 $146,626,884 $134,540,550 $105,872,907 $29,628,006 $141,365,694 $ --
28,940 22,516 422,640 643,947 149,598 5,796 715,820 --
-- -- -- -- -- -- 18,993,396 582,080,695
-- -- -- -- -- -- -- 662,900,000
951,492 6,424,793 21,583,709 27,912,302 8,117,550 273,757 34,578,450 --
1,440 -- 1,639 -- -- -- 15,713 --
-- -- -- -- -- -- -- --
297,240 -- 31,940 12,122 -- -- 14,546 --
38,794 499,799 7,153,860 21,073,157 -- 200,361 24,855,942 --
597,444 101,921 741,995 1,275,860 712,221 424,772 1,114,692 768,944
226,381 722,684 137,867 -- 10,964 185 47,479 59,593,508
3,006 6,375 7,672 16,885 -- -- 4,909 --
361,664 -- 20,000 -- 1,900 -- 408 --
- ----------- ------------ ------------ ------------ ------------ ----------- ------------ -------------
77,609,973 224,223,379 176,728,206 23 114,865,140 30,532,877 221,707,049 1,305,343,147
- ----------- ------------ ------------ ------------ ------------ ----------- ------------ -------------
-- 4,844 -- 73,988 4,945 17,880 45,674 24,097
-- -- -- -- -- -- -- --
-- -- -- 21,999,664 13,076,691 -- 27,585,253 --
609,235 197,429 14,403,999 40,838,459 -- 489,170 52,801,278 --
23,243 392,720 173,480 80,834 26,682 7,544 81,354 6,963,205
190,433 514,112 266,311 359,325 2,226 130,137 339,115 143,941
96,997 42,539 220,507 1,194 255,587 22,245 -- 359,991
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
166 1,224 541 361 306 212 485 1,195
-- -- -- -- -- -- -- --
- ----------- ------------ ------------ ------------ ------------ ----------- ------------ -------------
920,074 1,152,868 15,064,838 63,353,825 13,366,437 667,188 80,853,159 7,492,429
- ----------- ------------ ------------ ------------ ------------ ----------- ------------ -------------
76,689,899 223,070,511 161,663,368 122,120,998 101,498,703 29,865,689 140,853,890 1,297,850,718
=========== ============ ============ ============ ============ =========== ============ =============
60,157,862 214,655,053 148,036,016 130,899,411 104,089,877 30,025,074 145,063,662 1,297,850,717
496,764 (80,744) 805,390 (37,304) 92,200 50,588 785,131 121
3,552,201 3,185,559 5,983,254 (11,539,378) (2,473,532) (592,183) (1,731,996) (120)
12,478,841 5,287,984 6,851,832 2,861,315 (209,842) 382,210 (3,152,844) --
888 22,659 (14,012) (63,082) -- -- (110,103) --
-- -- -- -- -- -- -- --
3,343 -- 888 36 -- -- 40 --
- ----------- ------------ ------------ ------------ ------------ ----------- ------------ -------------
76,689,899 $223,070,511 $161,663,368 $122,120,998 $101,498,703 $29,865,689 $140,853,890 $1,297,850,718
=========== ============ ============ ============ ============ =========== ============ =============
See Notes to Financial Statements.
119
GE GE GE GE
U.S. CORE VALUE SMALL-CAP GLOBAL
Statements of Assets EQUITY EQUITY EQUITY EQUITY
and Liabilities (continued) March 31, 2008 FUND FUND FUND FUND
- --------------------------------------------- ----------- ---------- ---------- ----------
CLASS A:
Net assets................................... 263,651,389 44,112,461 47,269,507 46,046,635
Shares outstanding ($.001 par value;
unlimited shares authorized)............... 10,728,033 4,675,870 4,141,517 1,771,840
Net asset value per share.................... 24.58 9.43 11.41 25.99
----------- ---------- ---------- ----------
Maximum offering price per share............. 26.08 10.01 12.11 27.58
=========== ========== ========== ==========
CLASS B:
Net assets................................... 3,318,010 2,087,627 5,238,473 370,988
Shares outstanding ($.001 par value;
unlimited shares authorized)............... 142,133 233,762 512,473 15,708
----------- ---------- ---------- ----------
Net asset value per share*................... 23.34 8.93 10.22 23.62
=========== ========== ========== ==========
CLASS C: (LEVEL LOAD)
Net assets................................... 5,283,269 1,307,317 5,659,012 548,441
Shares outstanding ($.001 par value;
unlimited shares authorized)............... 230,790 147,794 556,356 23,066
----------- ---------- ---------- ----------
Net asset value per share*................... 22.89 8.85 10.17 23.78
=========== ========== ========== ==========
CLASS R:
Net assets................................... 9,781 9,763 9,856 9,993
Shares outstanding ($.001 par value;
unlimited shares authorized)............... 398 1,035 864 385
----------- ---------- ---------- ----------
Net asset value per share.................... 24.57 9.43 11.41 25.96
=========== ========== ========== ==========
CLASS Y:
Net assets................................... 120,784,597 9,885 3,964,478 23,321,842
Shares outstanding ($.001 par value;
unlimited shares authorized)............... 4,941,512 950 337,529 894,417
----------- ---------- ---------- ----------
Net asset value per share.................... 24.44 10.41 11.75 26.07
=========== ========== ========== ==========
INSTITUTIONAL CLASS:
Net assets................................... -- -- -- --
Shares outstanding ($.001 par value;
unlimited shares authorized)............... -- -- -- --
----------- ---------- ---------- ----------
Net asset value per share....................
=========== ========== ========== ==========
- ----------
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
** Includes $21,731,568; $12,885,819; $27,124,603 of securities on loan in the
GE Government Securities Fund, GE Short-Term Government Fund and GE Fixed
Income Fund respectively,
120
GE
INTERNA- GE GE GE GE GE GE
TIONAL PREMIER STRATEGIC GOVERNMENT SHORT-TERM GE FIXED MONEY
EQUITY GROWTH EQUITY INVESTMENT SECURITIES GOVERNMENT TAX-EXEMPT INCOME MARKET
FUND FUND FUND FUND FUND FUND FUND FUND
- ---------- ------------- ----------- ----------- ---------- ---------- ----------- -------------
64,106,831 184,501,468 130,368,138 120,773,895 39,868,840 29,228,994 123,396,837 212,012,370
3,073,937 8,349,608 5,783,902 13,337,873 3,486,379 2,571,826 10,240,422 212,082,361
20.85 22.10 22.54 9.05 11.44 11.37 12.05 1.00
- ---------- ------------- ----------- ----------- ---------- ---------- ----------- -------------
22.12 23.45 23.92 9.45 11.73 11.87 12.58 --
========== ============= =========== =========== ========== ========== =========== =============
1,080,097 8,831,265 11,339,929 809,015 2,318,053 413,740 1,073,730 --
55,859 445,607 521,927 88,567 203,022 36,412 89,103 --
- ---------- ------------- ----------- ----------- ---------- ---------- ----------- -------------
19.34 19.82 21.73 9.13 11.42 11.36 12.05 --
========== ============= =========== =========== ========== ========== =========== =============
1,288,738 23,519,902 13,960,877 538,088 2,823,589 186,596 1,076,281 --
66,337 1,186,480 663,157 58,600 247,254 16,427 89,201 --
- ---------- ------------- ----------- ----------- ---------- ---------- ----------- -------------
19.43 19.82 21.05 9.18 11.42 11.36 12.07 --
========== ============= =========== =========== ========== ========== =========== =============
10,100.86 9,953.18 9,918.50 -- 10,079 -- 9,988 --
484.73 450.65 440.14 -- 881 -- 829 --
- ---------- ------------- ----------- ----------- ---------- ---------- ----------- -------------
20.84 22.09 22.53 -- 11.44 -- 12.05 --
========== ============= =========== =========== ========== ========== =========== =============
10,204,132 6,207,923 5,984,505 -- 56,478,142 36,359 15,297,054 --
483,866 276,476 262,796 -- 4,954,676 2,959 1,270,411 --
- ---------- ------------- ----------- ----------- ---------- ---------- ----------- -------------
21.09 22.45 22.77 -- 11.40 12.29 12.04 --
========== ============= =========== =========== ========== ========== =========== =============
-- -- -- -- -- -- -- 1,085,838,348
-- -- -- -- -- -- -- 1,085,838,347
- ---------- ------------- ----------- ----------- ---------- ---------- ----------- -------------
-- -- -- -- -- -- -- 1.00
========== ============= =========== =========== ========== ========== =========== =============
See Notes to Financial Statements.
121
GE GE GE GE
U.S. CORE VALUE SMALL-CAP GLOBAL
Statements of Operations EQUITY EQUITY EQUITY EQUITY
For the six months ended March 31, 2008 FUND FUND FUND FUND
INVESTMENT INCOME
INCOME:
Dividends.............................. $ 3,121,265 $ 436,594 $ 451,830 $ 776,826
Interest*.............................. 205,275 34,778 85,482 12,285
Interest from affiliated
investments**........................ 124,087 26,995 17,267 35,781
Less: Foreign taxes withheld........... (5,453) (1,075) -- (20,710)
------------ ----------- ------------ -----------
TOTAL INCOME.............................. 3,445,174 497,292 554,579 804,182
------------ ----------- ------------ -----------
EXPENSES:
Advisory and administration fees....... 868,776 149,577 254,004 275,940
Distributors Fees (Notes 4 & 8)
Class A.............................. 359,737 62,934 65,826 60,013
Class B.............................. 20,663 12,659 33,118 2,128
Class C.............................. 30,837 7,129 33,028 2,497
Class R.............................. 8 8 8 8
Blue sky fees.......................... 31,830 34,071 30,397 24,803
Transfer agent fees.................... 154,342 55,037 48,149 62,061
Trustees fees.......................... 4,908 1,020 675 813
Custody and accounting expenses........ 46,358 31,945 30,888 40,547
Professional fees...................... 8,932 7,330 11,128 6,578
Registration and other expenses........ 42,990 14,824 19,916 21,273
------------ ----------- ------------ -----------
TOTAL EXPENSES BEFORE WAIVER AND
REIMBURSEMENT.......................... 1,569,381 376,534 527,137 496,661
Less : Expenses Waived or borne by the
adviser.............................. -- (38,360) (6,927) --
Less : Expenses Waived or borne by the
adviser***........................... (563) (56) (33) (162)
Add: Expenses reimbursed to the
adviser.............................. -- -- 920 --
------------ ----------- ------------ -----------
Net expenses........................... 1,568,818 338,118 521,097 496,499
------------ ----------- ------------ -----------
NET INVESTMENT INCOME (LOSS).............. 1,876,356 159,174 33,482 307,683
============ =========== ============ ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments............................ 10,711,903 1,759,573 525,000 2,693,976
Futures................................ (183,470) (57,780) -- 17,831
Written options........................ -- -- -- --
Foreign currency related transactions.. 3,692 (2) -- 15,351
INCREASE (DECREASE) IN UNREALIZED
APPRECIATION/ (DEPRECIATION) ON:
Investments............................ (62,819,089) (7,810,137) (10,174,751) (9,651,454)
Futures................................ 6,700 3,750 -- 45
Written options........................ -- -- -- --
Foreign currency related transactions.. 12 -- -- 748
------------ ----------- ------------ -----------
Net realized and unrealized gain(loss)
on investments....................... (52,280,252) (6,104,596) (9,649,751) (6,923,503)
------------ ----------- ------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS............................. $(50,403,896) $(5,945,422) $ (9,616,269) $(6,615,820)
============ =========== ============ ===========
- ----------
* 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 $300; $112,642;
$74,470; and $83,025 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 $112,490; $42,279 and $121,553 respectively.
*** Waiver related to Fund of Fund Investment
See Notes to Financial Statements.
122
GE GE GE GE GE GE GE
INTERNATIONAL PREMIER STRATEGIC GOVERNMENT SHORT-TERM GE FIXED MONEY
EQUITY GROWTH EQUITY INVESTMENT SECURITIES GOVERNMENT TAX-EXEMPT INCOME MARKET
FUND FUND FUND FUND FUND FUND FUND FUND
- -------------- -------------- ------------ ----------- ----------- ---------- ----------- ----------
$ 915,118 $ 1,150,015 $ 1,072,624 $ -- $ -- $ -- $ -- $ --
26,496 168,998 794,808 2,507,531 2,371,139 687,642 3,409,856 6,102,508
42,971 109,036 306,689 300,693 144,266 14,299 308,214 --
(40,533) -- (30,656) -- -- -- -- --
- --------------- ------------- ------------- ----------- ----------- ---------- ----------- ----------
944,052 1,428,049 2,143,465 2,808,224 2,515,405 701,941 3,718,070 6,102,508
- --------------- ------------- ------------- ----------- ----------- ---------- ----------- ----------
281,552 741,930 303,925 243,094 150,000 52,971 245,413 380,840
70,540 257,289 173,603 150,049 48,239 36,854 152,659 --
6,334 53,912 62,990 4,371 11,693 2,279 6,695 --
6,280 137,117 72,372 2,072 14,958 1,103 5,503 --
8 8 8 9 -- 8 --
30,534 37,490 22,263 35,099 30,254 29,061 29,868 25,588
40,167 149,878 79,487 87,138 24,828 12,067 51,975 132,068
885 2,020 1,907 728 843 207 955 7,271
43,692 35,573 107,841 48,251 46,541 25,757 70,701 17,822
12,288 13,150 8,554 6,226 6,262 8,467 8,630 14,082
15,347 44,974 32,815 13,695 16,917 5,540 14,323 64,057
- --------------- ------------- ------------- ----------- ----------- ---------- ----------- ----------
507,627 1,473,341 865,765 590,723 350,544 174,306 586,730 641,728
(23,385) -- -- (19,278) (793) (40,462) -- --
(231) (591) (1,955) (2,456) (725) (28) (2,937) --
-- -- -- 9,438 3 -- -- --
- --------------- ------------- ------------- ----------- ----------- ---------- ----------- ----------
484,011 1,472,750 863,810 578,427 349,029 133,816 583,793 641,728
- --------------- ------------- ------------- ----------- ----------- ---------- ----------- ----------
460,041 (44,701) 1,279,655 2,229,797 2,166,376 568,125 3,134,277 5,460,780
=============== ============= ============= =========== =========== ========== =========== ==========
3,980,582 9,711,932 6,797,987 2,931,029 1,094,011 (32,079) 2,337,972 --
(4,300) (40,760) (13,151) 1,429,612 -- -- 427,881 --
-- -- -- -- -- -- -- --
39,406 -- 18,745 3,145 -- -- 32,524 --
(8,715,918) (36,717,881) (20,639,111) 1,868,842 211,748 (103,459) (297,238) --
5,952 50,905 (11,032) (63,169) -- -- (90,247) --
-- -- -- -- -- -- -- --
1,528 -- (3,629) (182) -- -- (6,183) --
- --------------- ------------- ------------- ----------- ----------- ---------- ----------- ----------
(4,692,750) (26,995,804) (13,850,191) 6,169,277 1,305,759 (135,538) 2,404,709 --
- --------------- ------------- ------------- ----------- ----------- ---------- ----------- ----------
$(4,232,709) $(27,040,505) $(12,570,536) $8,399,074 $3,472,135 $ 432,587 $5,538,986 $5,460,780
=============== ============= ============= =========== =========== ========== =========== ==========
123
GE GE GE
Statements of U.S. CORE VALUE SMALL-CAP
Changes in EQUITY EQUITY EQUITY
Net Assets FUND FUND FUND
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
March 31, September 30, March 31, September 30, March 31, September 30,
2008 2007 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited)
- ------------------------- ---------------- ------------- ---------------- ------------- ---------------- -------------
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investments
income (loss)...... $ 1,876,356 $ 5,371,682 $ 159,174 $ 606,175 $ 33,482 $ (199,639)
Net realized gain
(loss) on
investments,
futures, written
options, foreign
currency
transactions and
swaps.............. 10,532,125 43,223,738 1,701,791 9,657,543 525,000 17,548,571
Net increase
(decrease) in
unrealized
appreciation /
(depreciation) on
investments,
futures, written
options and foreign
currency
translations....... (62,812,377) 19,736,958 (7,806,387) (253,956) (10,174,751) (4,947,901)
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase
(decrease) from
operations......... (50,403,896) 68,332,378 (5,945,422) 10,009,762 (9,616,269) 12,401,031
---------------- ------------- ---------------- ------------- ---------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A............ (2,468,147) (4,119,575) (349,894) (657,021) -- --
Class B............ -- (34,041) -- (6,150) -- --
Class C............ (5,828) (51,687) -- (5,495) -- --
Class R............ -- -- --
Class Y............ (1,455,222) (1,929,563) (1) (1) -- --
Institutional
Class...........
Net realized gains
Class A............ (29,487,664) (30,921,699) (8,930,716) (4,825,196) (10,516,186) (8,113,193)
Class B............ (441,957) (703,596) (467,725) (323,973) (1,454,001) (1,521,433)
Class C............ (691,607) (835,550) (268,894) (134,646) (1,455,178) (1,064,839)
Class R............ -- -- --
Class Y............ (13,211,585) (12,261,075) (20) (8) (1,445,556) (1,068,383)
Institutional
Class........... -- -- -- -- -- --
---------------- ------------- ---------------- ------------- ---------------- -------------
TOTAL DISTRIBUTIONS..... (47,762,010) (50,856,786) (10,017,250) (5,952,490) (14,870,921) (11,767,848)
---------------- ------------- ---------------- ------------- ---------------- -------------
Increase (decrease) in net
assets from operations
and distributions....... (98,165,906) 17,475,592 (15,962,672) 4,057,272 (24,487,190) 633,183
---------------- ------------- ---------------- ------------- ---------------- -------------
SHARE TRANSACTIONS:
Proceeds from sale of
shares
Class A............ 8,026,838 30,713,097 1,847,784 18,978,347 2,873,953 7,435,889
Class B............ 1,000 118,118 300 158,474 3,200 331,337
Class C............ 77,690 256,964 14,276 100,986 281,168 1,206,898
Class R............ 10,000 10,000 10,000
Class Y............ 8,092,138 13,990,769 10,000 -- 572,395 313,444
Institutional
Class...........
Value of
distributions
reinvested
Class A............ 31,218,707 33,887,243 8,942,609 5,313,836 10,175,485 7,764,302
Class B............ 422,358 699,656 457,363 320,309 1,416,184 1,442,210
Class C............ 622,622 809,302 264,768 133,466 1,413,257 997,632
Class R............ -- -- --
Class Y............ 14,664,373 14,188,136 20 9 1,445,553 1,068,383
Institutional
Class...........
Proceeds from short-
term trading fees
Class A............ -- -- -- -- -- --
Class B............ -- -- -- -- -- --
Class C............ -- -- -- -- -- --
Class R............ -- -- -- --
Class Y............ -- -- -- -- -- --
Institutional
Class........... -- -- -- -- -- --
Cost of shares
redeemed
Class A............ (25,914,151) (58,976,827) (8,804,219) (29,112,097) (6,751,006) (16,495,204)
Class B............ (1,059,247) (2,789,556) (585,075) (1,954,097) (1,497,245) (4,506,189)
Class C............ (855,989) (2,011,606) (76,497) (438,740) (1,084,774) (2,401,579)
Class R............ -- -- -- -- -- --
Class Y............ (8,975,577) (11,635,025) -- -- (3,949,509) (5,708,142)
Institutional
Class........... -- -- -- -- -- --
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase
(decrease) from
shares
transactions....... 26,330,762 19,250,271 2,081,329 (6,499,507) 4,908,661 (8,551,019)
---------------- ------------- ---------------- ------------- ---------------- -------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS............... (71,835,144) 36,725,863 (13,881,343) (2,442,235) (19,578,529) (7,917,836)
NET ASSETS
Beginning of period.. 464,882,190 428,156,327 61,408,396 63,850,631 81,719,855 89,637,691
---------------- ------------- ---------------- ------------- ---------------- -------------
End of period........ $393,047,046 $464,882,190 $ 47,527,053 $ 61,408,396 $ 62,141,326 $ 81,719,855
================ ============= ================ ============= ================ =============
UNDISTRIBUTED
(DISTRIBUTION IN EXCESS
OF) NET INVESTMENTS
INCOME, (END OF
PERIOD)................. $ 852,095 $ 2,904,936 $ 63,032 $ 253,753 $ 74,900 $ 41,418
GE GE
Statements of GLOBAL INTERNATIONAL
Changes in EQUITY EQUITY
Net Assets FUND FUND
Six Months Ended Year Ended Six Months Ended Year Ended
March 31, September 30, March 31, September 30,
2008 2007 2008 2007
(unaudited) (unaudited)
- -------------------------- ---------------- ------------- ---------------- -------------
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investments
income (loss)...... $ 307,683 $ 488,849 $ 460,041 $ 645,703
Net realized gain
(loss) on
investments,
futures, written
options, foreign
currency
transactions and
swaps.............. 2,727,158 9,306,358 4,015,688 7,194,574
Net increase
(decrease) in
unrealized
appreciation /
(depreciation) on
investments,
futures, written
options and foreign
currency
translations....... (9,650,661) 8,337,936 (8,708,438) 9,948,263
---------------- ------------- ---------------- -------------
Net increase
(decrease) from
operations......... (6,615,820) 18,133,143 (4,232,709) 17,788,540
---------------- ------------- ---------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A............ (192,320) (216,574) (521,319) (363,030)
Class B............ -- -- (1,102) (2,208)
Class C............ (131) -- (3,970) (687)
Class R............ -- --
Class Y............ (157,768) (167,253) (111,079) (84,013)
Institutional
Class...........
Net realized gains
Class A............ (5,345,540) -- (5,581,952) (37,356)
Class B............ (52,733) -- (136,327) (1,386)
Class C............ (60,378) -- (135,332) (965)
Class R............ -- --
Class Y............ (2,731,265) -- (947,803) (6,800)
Institutional
Class........... -- -- -- --
---------------- ------------- ---------------- -------------
TOTAL DISTRIBUTIONS..... (8,540,135) (383,827) (7,438,884) (496,445)
---------------- ------------- ---------------- -------------
Increase (decrease) in net
assets from operations
and distributions....... (15,155,955) 17,749,316 (11,671,593) 17,292,095
---------------- ------------- ---------------- -------------
SHARE TRANSACTIONS:
Proceeds from sale of
shares
Class A............ 3,589,536 5,963,077 17,927,816 13,394,568
Class B............ 500 28,416 24,767 230,038
Class C............ 173,864 256,180 219,018 203,782
Class R............ 10,000 10,000
Class Y............ 1,897,993 2,358,802 1,951,008 861,027
Institutional
Class...........
Value of
distributions
reinvested
Class A............ 5,249,160 206,409 5,972,176 387,653
Class B............ 51,935 -- 131,139 3,329
Class C............ 60,509 -- 139,270 1,464
Class R............ -- --
Class Y............ 2,889,030 167,253 1,058,881 90,813
Institutional
Class...........
Proceeds from short-
term trading fees
Class A............ -- -- -- 6,855
Class B............ -- -- -- 227
Class C............ -- -- -- 160
Class R............ -- --
Class Y............ -- -- -- 1,249
Institutional
Class........... -- -- -- --
Cost of shares
redeemed
Class A............ (2,966,354) (5,172,945) (7,250,857) (11,338,452)
Class B............ (45,325) (247,430) (296,734) (688,697)
Class C............ (44,289) (189,871) (99,604) (303,187)
Class R............ -- -- -- --
Class Y............ (1,931,323) (3,755,886) (1,443,270) (872,273)
Institutional
Class........... -- -- -- --
---------------- ------------- ---------------- -------------
Net increase
(decrease) from
shares
transactions....... 8,935,236 (385,995) 18,343,610 1,978,556
---------------- ------------- ---------------- -------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS............... (6,220,719) 17,363,321 6,672,017 19,270,651
NET ASSETS
Beginning of period.. 76,518,618 59,155,297 70,017,882 50,747,231
---------------- ------------- ---------------- -------------
End of period........ $ 70,297,899 $76,518,618 $ 76,689,899 $ 70,017,882
================ ============= ================ =============
UNDISTRIBUTED
(DISTRIBUTION IN EXCESS
OF) NET INVESTMENTS
INCOME, (END OF
PERIOD)................. $ 360,834 $ 403,370 $ 496,764 $ 674,193
See Notes to Financial Statements.
124
GE GE GE GE
PREMIER STRATEGIC GOVERNMENT SHORT-TERM
GROWTH EQUITY INVESTMENT SECURITIES GOVERNMENT
FUND FUND FUND FUND
Six Months Six Months Year Ended Six Months Six Months
Ended Year Ended Ended September Ended Year Ended Ended Year Ended
March 31, September 30, March 31, 30, March 31, September 30, March 31, September 30,
2008 2007 2008 2007 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
$ (44,701) $ (465,719) $ 1,279,655 $ 2,902,503 $ 2,229,797 $ 5,022,764 $ 2,166,376 $ 4,283,000
9,671,172 29,500,022 6,803,581 15,616,280 4,363,786 155,038 1,094,011 198,274
(36,666,976) 13,198,572 (20,653,772) 11,353,343 1,805,491 425,220 211,748 231,222
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
(27,040,505) 42,232,875 (12,570,536) 29,872,126 8,399,074 5,603,022 3,472,135 4,712,496
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
-- -- (2,338,076) (2,745,839) (2,212,537) (4,971,204) (824,599) (1,610,600)
-- -- (109,989) (193,949) (12,828) (38,802) (50,741) (148,915)
-- -- (168,905) (167,965) (5,921) (12,403) (52,740) (122,269)
-- -- -- -- -- -- (64) --
-- (321,790) (104,868) (97,556) -- (1,251,861) (2,366,785)
(10,479,8-
(19,864,337) (31,401,919) (12,164,635) 07) -- -- -- --
(1,213,763) (2,416,931) (1,144,862) (1,192,689) -- -- -- --
(3,053,551) (5,643,591) (1,368,616) (1,031,189) -- -- -- --
-- -- -- -- -- -- -- --
(863,629) (7,698,309) (473,604) (332,456) -- -- -- --
-- -- -- -- -- -- -- --
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
(24,995,280) (47,482,540) (17,873,555) (16,241,450) (2,231,286) (5,022,409) (2,180,005) (4,248,569)
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
(52,035,785) (5,249,665) (30,444,091) 13,630,676 6,167,788 580,613 1,292,130 463,927
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
41,235,458 31,641,630 7,180,661 9,377,893 1,488,839 2,169,917 3,735,800 7,081,974
6,672 106,443 16,048 343,958 -- 38,489 8,841 105,213
1,199,877 3,132,945 2,073,445 2,679,185 243,616 89,334 60,107 151,997
10,000 -- 10,000 -- -- -- 10,000 --
843,386 4,868,128 1,236,748 2,820,789 -- -- 139,817 1,693,557
19,278,496 30,623,910 13,441,108 12,251,366 1,675,281 3,700,931 779,008 1,419,895
1,166,244 2,235,118 1,218,681 1,314,234 11,128 33,465 47,951 113,174
2,857,072 15,482,707 1,480,572 1,113,153 5,347 10,382 49,053 102,914
-- -- -- -- -- -- 64 --
813,874 7,641,629 578,472 430,012 -- -- 1,251,717 2,366,752
-- -- -- -- -- -- -- --
-- -- -- -- 106 --
157 -- -- -- 28 --
67 -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- -- -- --
(17,857,7-
(49,741,195) (69,135,738) (13,594,896) 63) (8,131,095) (19,342,859) (3,846,319) (7,650,468)
(2,473,162) (5,678,389) (1,661,416) (3,687,100) (142,676) (647,312) (994,010) (1,558,069)
(5,980,877) (15,761,186) (1,382,638) (3,059,536) (27,213) (223,495) (364,158) (1,238,947)
-- -- -- -- -- -- -- --
(10,513,329) (60,304,280) (527,129) (1,184,154) -- -- (78,558) (23,809)
-- -- -- -- -- -- -- --
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
(1,297,484) (65,147,083) 10,069,880 4,542,037 (4,876,773) (14,171,148) 799,447 2,564,183
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
(53,333,269) (70,396,748) (20,374,211) 18,172,713 1,291,015 (13,590,535) 2,091,577 3,028,110
276,403,780 346,800,528 182,037,579 163,864,866 120,829,983 134,420,518 99,407,126 96,379,016
- -------------- ------------- ------------ ----------- ------------ ------------- ------------ -------------
$223,070,511 $276,403,780 $161,663,368 $182,037,579 $122,120,998 $120,829,983 $101,498,703 $99,407,126
============== ============= ============ ============ ============ ============= ============ =============
$ (80,744) $ 257,348 $ 805,390 $ 2,247,573 $ (37,304) $ (56,378) $ 92,200 $ 105,829
GE GE
GE FIXED MONEY
TAX-EXEMPT NCOME MARKET
FUND FUND FUND
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
March 31, September 30, March 31, September 30, March 31, September 30,
2008 2007 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited)
- ------------- ------------ ------------ ------------- -------------- -------------
$ 568,125 $ 1,065,550 $ 3,134,277 $ 7,318,019 $ 5,460,780 $ 11,692,667
(32,079) (293,625) 2,798,377 15,815 -- --
(103,459) (208,971) (393,668) (616,502) -- --
- ------------- ------------ ------------ ------------- -------------- -------------
432,587 562,954 5,538,986 6,717,332 5,460,780 11,692,667
- ------------- ------------ ------------ ------------- -------------- -------------
(557,171) (1,032,016) (2,740,172) (6,377,711) (4,525,249) (11,692,547)
(6,895) (23,379) (25,076) (79,569) --
(3,326) (8,658) (20,524) (50,127) -- --
-- -- (67) -- -- --
(732) (1,497) (363,741) (803,508) -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- (935,530) --
- ------------- ------------ ------------ ------------- -------------- -------------
(568,124) (1,065,550) (3,149,580) (7,310,915) (5,460,779) (11,692,547)
- ------------- ------------ ------------ ------------- -------------- -------------
(135,537) (502,596) 2,389,406 (593,583) 1 120
- ------------- ------------ ------------ ------------- -------------- -------------
552,407 8,355,236 6,453,584 7,020,720 60,995,999 118,407,016
-- 2,525 7,642 180,400 --
100 22,977 49,765 135,598 -- --
-- -- 10,000 -- -- --
-- -- 2,233,867 1,927,947 -- --
-- -- 1,346,211,152
438,935 753,176 2,421,791 5,439,459 4,227,584 11,042,955
5,260 15,923 22,096 68,649 --
2,200 5,094 17,970 42,737 -- --
-- -- 67 -- -- --
732 1,497 363,739 803,508 -- --
-- -- -- -- 935,530 --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(1,061,999) (5,519,244) (9,031,712) (21,261,004) (118,650,963) (78,343,049)
(74,517) (368,828) (453,045) (847,658) --
(43,046) (159,545) (118,540) (302,842) -- --
-- -- -- -- -- --
-- -- (1,788,656) (3,331,532) -- --
-- -- -- -- (261,308,335) --
- ------------- ------------ ------------ ------------- -------------- -------------
(179,928) 3,108,811 188,568 (10,124,018) 1,032,410,967 51,106,922
- ------------- ------------ ------------ ------------- -------------- -------------
(315,465) 2,606,215 2,577,974 (10,717,601) 1,032,410,968 51,107,042
30,181,154 27,574,939 138,275,916 148,993,517 265,439,750 214,332,708
- ------------- ------------ ------------ ------------- -------------- -------------
$ 29,865,689 $30,181,154 $140,853,890 $138,275,916 $1,297,850,718 $265,439,750
============= ============ ============ ============= ============== =============
$ 50,588 $ 50,587 $ 785,131 $ 800,434 $ 121 $ 120
125
GE GE GE
Statements of Changes U.S. CORE VALUE SMALL-CAP
in Net Assets (continued) EQUITY EQUITY EQUITY
Changes in Fund Shares FUND FUND FUND
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
March 31, September 30, March 31, September 30, March 31, September 30,
2008 2007 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited)
- ------------------------------ ---------------- ------------- ---------------- ------------- ---------------- -------------
CLASS A:
Shares sold................... 298,747 1,023,263 165,708 1,539,003 222,299 465,647
Issued for distribution
reinvested.................. 1,162,708 1,202,528 865,693 459,277 814,056 517,965
Shares redeemed............... (926,043) (1,991,504) (793,946) (2,424,626) (522,718) (1,032,082)
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 535,412 234,287 237,455 (426,346) 513,637 (48,470)
================ ============= ================ ============= ================ =============
CLASS B:
Shares sold................... 35 4,046 25 13,752 218 22,100
Issued for distribution
reinvested.................. 16,524 25,970 46,670 28,883 126,220 104,206
Shares redeemed............... (40,910) (98,976) (55,826) (168,800) (134,778) (305,915)
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. (24,351) (68,960) (9,131) (126,165) (8,340) (179,609)
================ ============= ================ ============= ================ =============
CLASS C:
Shares sold................... 3,166 9,214 1,425 8,739 23,235 81,573
Issued for distribution
reinvested.................. 24,845 30,551 27,295 12,133 126,745 72,292
Shares redeemed............... (34,843) (73,004) (7,570) (37,754) (96,767) (159,649)
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. (6,832) (33,239) 21,150 (16,882) 53,213 (5,784)
================ ============= ================ ============= ================ =============
CLASS R:
Shares sold................... 398 -- 1,035 -- 864 --
Issued for distribution
reinvested.................. -- -- -- -- -- --
Shares redeemed............... -- -- -- -- -- --
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 398 -- 1,035 -- 864 --
================ ============= ================ ============= ================ =============
CLASS Y:
Shares sold................... 298,626 473,518 939 -- 39,574 19,561
Issued for distribution
reinvested.................. 549,433 505,996 2 1 112,407 69,829
Shares redeemed............... (327,910) (402,441) -- -- (302,676) (330,573)
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 520,149 577,073 941 1 (150,695) (241,183)
================ ============= ================ ============= ================ =============
INSTITUTIONAL CLASS:
Shares sold................... -- -- -- -- -- --
Issued for distribution
reinvested.................. -- -- -- -- -- --
Shares redeemed............... -- -- -- -- -- --
---------------- ------------- ---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. -- -- -- -- -- --
================ ============= ================ ============= ================ =============
GE GE
Statements of Changes GLOBAL INTERNATIONAL
in Net Assets (continued) EQUITY EQUITY
Changes in Fund Shares FUND FUND
Six Months Ended Year Ended Six Months Ended Year Ended
March 31, September 30, March 31, September 30,
2008 2007 2008 2007
(unaudited) (unaudited)
- ------------------------------ ---------------- ------------- ---------------- -------------
CLASS A:
Shares sold................... 126,348 209,123 849,337 620,443
Issued for distribution
reinvested.................. 189,706 7,757 273,702 18,956
Shares redeemed............... (104,361) (183,590) (323,160) (524,650)
---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 211,693 33,290 799,879 114,749
================ ============= ================ =============
CLASS B:
Shares sold................... 21 1,160 1,119 12,253
Issued for distribution
reinvested.................. 2,060 -- 6,467 174
Shares redeemed............... (1,873) (9,504) (13,950) (34,435)
---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 208 (8,344) (6,364) (22,008)
================ ============= ================ =============
CLASS C:
Shares sold................... 6,507 8,968 10,743 10,141
Issued for distribution
reinvested.................. 2,384 -- 6,837 76
Shares redeemed............... (1,563) (7,153) (4,961) (15,148)
---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 7,328 1,815 12,619 (4,931)
================ ============= ================ =============
CLASS R:
Shares sold................... 385 -- 485 --
Issued for distribution
reinvested.................. -- -- -- --
Shares redeemed............... -- -- -- --
---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 385 -- 485 --
================ ============= ================ =============
CLASS Y:
Shares sold................... 66,998 85,107 85,937 39,341
Issued for distribution
reinvested.................. 104,071 6,269 48,000 4,400
Shares redeemed............... (69,193) (132,192) (58,836) (39,427)
---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. 101,876 (40,816) 75,101 4,314
================ ============= ================ =============
INSTITUTIONAL CLASS:
Shares sold................... -- -- -- --
Issued for distribution
reinvested.................. -- -- -- --
Shares redeemed............... -- -- -- --
---------------- ------------- ---------------- -------------
Net increase (decrease) in
fund shares................. -- -- -- --
================ ============= ================ =============
</Table>
See Notes to Financial Statements.
126
GE GE GE GE
PREMIER STRATEGIC GOVERNMENT SHORT-TERM
GROWTH EQUITY INVESTMENT SECURITIES GOVERNMENT
FUND FUND FUND FUND
Six Months Six Months Year Ended Six Months Six Months
Ended Year Ended Ended September Ended Year Ended Ended Year Ended
March 31, September 30, March 31, 30, March 31, September 30, March 31, September 30,
2008 2007 2008 2007 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) unaudited)
- ------------- ------------ ------------ ----------- ----------- -------------- ---------- --------------
1,676,441 1,202,547 292,526 369,034 166,146 254,047 327,980 629,670
816,036 1,216,200 564,990 508,778 188,339 433,814 68,519 126,270
(2,081,469) (2,598,626) (546,907) (703,904) (920,176) (2,269,762) (339,034) (680,703)
- ------------- ------------ ------------ ----------- ----------- -------------- ---------- --------------
411,008 (179,879) 310,609 173,908 (565,691) (1,581,901) 57,465 75,237
============= ============ ============ =========== =========== ============== ========== ==============
274 4,313 739 14,333 -- 4,478 775 9,380
54,934 96,968 53,055 56,357 1,241 3,889 4,225 10,082
(117,108) (233,905) (69,186) (150,055) (15,862) (75,219) (87,645) (138,779)
- ------------- ------------ ------------ ----------- ----------- -------------- ---------- --------------
(61,900) (132,624) (15,392) (79,365) (14,621) (66,852) (82,645) (119,317)
============= ============ ============ =========== =========== ============== ========== ==============
53,322 129,239 87,137 110,933 27,255 10,326 5,284 13,545
134,517 237,758 66,513 48,994 591 1,203 4,321 9,166
(274,182) (645,478) (60,840) (128,616) (3,034) (25,951) (31,956) (110,313)
- ------------- ------------ ------------ ----------- ----------- -------------- ---------- --------------
(86,343) (278,481) 92,810 31,311 24,812 (14,422) (22,351) (87,602)
============= ============ ============ =========== =========== ============== ========== ==============
451 -- 440 -- -- -- 876 --
-- -- -- -- -- -- 5 --
-- -- -- -- -- -- -- --
- ------------- ------------ ------------ ----------- ----------- -------------- ---------- --------------
451 -- 440 -- -- -- 881 --
============= ============ ============ =========== =========== ============== ========== ==============
34,959 183,467 52,250 112,119 -- -- 12,289 151,078
33,841 299,437 24,083 17,703 -- -- 110,462 211,164
(402,539) (2,226,209) (21,117) (47,001) -- -- (6,916) (2,127)
- ------------- ------------ ------------ ----------- ----------- -------------- ---------- --------------
(333,739) (1,743,305) 55,216 82,821 -- -- 115,835 360,115
============= ============ ============ =========== =========== ============== ========== ==============
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ------------- ------------ ------------ ----------- ----------- -------------- ---------- --------------
-- -- -- -- -- -- -- --
============= ============ ============ =========== =========== ============== ========== ==============
GE GE
GE FIXED MONEY
TAX-EXEMPT INCOME MARKET
FUND FUND FUND
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
March 31, September 30, March 31, September 30, March 31, September 30,
2008 2007 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited)
- ------------ -------------- ------------ -------------- ------------ --------------
48,153 728,965 534,656 590,429 60,991,970 118,407,016
38,503 65,546 201,259 457,463 4,227,583 11,042,955
(93,444) (479,825) (751,300) (1,786,489) (118,650,962) (78,343,049)
- ------------ -------------- ------------ -------------- ------------ --------------
(6,788) 314,686 (15,385) (738,597) (53,431,409) 51,106,922
============ ============== ============ ============== ============= ==============
-- 217 634 15,228 --
461 1,384 1,837 5,770 --
(6,477) (32,217) (37,627) (71,446) --
- ------------ -------------- ------------ -------------- ------------- --------------
(6,016) (30,616) (35,156) (50,448) --
============ ============== ============ ============== ============= ==============
9 1,986 4,122 11,388 -- --
193 444 1,491 3,590 -- --
(3,767) (13,773) (9,825) (25,418) -- --
- ------------ -------------- ------------ -------------- ------------- --------------
(3,565) (11,343) (4,212) (10,440) -- --
============ ============== ============ ============== ============= ==============
-- -- 823 -- -- --
-- -- 6 -- -- --
-- -- -- -- -- --
- ------------ -------------- ------------ -------------- ------------- --------------
-- -- 829 -- -- --
============ ============== ============ ============== ============= ==============
-- -- 187,689 162,565 -- --
60 120 30,243 67,594 -- --
-- -- (148,302) (282,094) -- --
- ------------ -------------- ------------ -------------- ------------- --------------
60 120 69,630 (51,935) -- --
============ ============== ============ ============== ============= ==============
-- -- -- -- 1,346,211,152* --
-- -- -- -- 935,530 --
-- -- -- -- (261,308,335) --
- ------------ -------------- ------------ -------------- ------------- --------------
-- -- -- -- 1,085,838,347 --
============ ============== ============ ============== ============= ==============
* For period March 17, 2008 through March 31, 2008.
127
March 31, 2008 (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 comprises fourteen
portfolios (each a "Fund" and collectively the "Funds"), although only the
following twelve are currently being offered: GE U.S. Equity Fund, GE Core Value
Equity Fund, GE Small-Cap 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, GE Tax-Exempt Fund,
GE Fixed Income Fund and GE Money Market Fund. Each GE Fund (other than the GE
Government Securities Fund, GE Tax-Exempt Fund and the GE Money Market Fund)
currently offers four share classes to investors, namely Class A, Class C, Class
R and Class Y shares. The GE Tax-Exempt Fund currently offers three share
classes to investors, namely Class A, Class C and Class Y shares, the GE
Government Securities Fund currently offers two share classes to investors,
namely Class A and Class C shares, and the GE Money Market Fund currently offers
two share classes to investors, namely the Retail Class and the Institutional
Class shares. As of January 29, 2007, Class B shares of all Funds were closed to
new investments.
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 Government Securities Fund GE Short-Term Government Fund
GE Core Value Equity Fund GE Tax-Exempt Fund
GE Small-Cap Equity Fund GE Fixed Income 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.
128
March 31, 2008 (unaudited)
Notes to Financial Statements
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 Government Securities Fund
GE Core Value Equity Fund GE Short-Term Government Fund
GE Small-Cap Equity Fund GE Tax-Exempt Fund
GE Global Equity Fund GE Fixed Income Fund
GE International Equity Fund
GE Premier Growth Equity Fund
GE Strategic Investment Fund
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 R and Class Y shares 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. A Fund's portfolio securities are valued
generally on the basis of market quotations. Equity securities generally are
valued at the last reported sales price on the primary market in which they are
traded. Portfolio securities listed on NASDAQ are valued using the NASDAQ
Official Closing Price, which may not necessarily represent the last sale price.
If no sales occurred on the exchange or NASDAQ that day, the portfolio security
generally is valued using the last reported bid price.
Debt securities (other than short-term securities described below) generally are
valued at an evaluated bid as reported by an independent pricing service. Values
obtained from pricing services are based on various factors such as market
transactions, dealer supplied valuations, security characteristics and other
market data. In the absence of a reliable price from such a pricing service,
debt securities may be valued based on dealer supplied valuations or quotations.
Municipal obligations are valued at the quoted bid prices.
A Fund's written or purchased options are valued at the last sales price, or if
no sales occurred that day, at the last reported bid price.
All portfolio securities of the GE Money Market Fund and any short-term
securities held by any other Fund with remaining maturities of sixty days or
less at the time of purchase are valued on the basis of amortized cost.
All assets and liabilities of the Funds initially expressed in foreign currency
values will be converted into U.S. dollars at the WM/Reuter exchange rate
computed at 11:00 a.m., Eastern time.
If prices are not readily available for a portfolio security, or if it is
believed that a price for a portfolio security does not represent its fair
value, the security may be
129
March 31, 2008 (unaudited)
Notes to Financial Statements
valued using procedures approved by the Funds' Board of Trustees that are
designed to establish its "fair" value. Those procedures require that the fair
value of a security be established by the fair valuation committee. The fair
valuation committee follows different protocols for different types of
investments and circumstances. The fair value procedures may be used to value
any investment of any Fund in the appropriate circumstances. Examples of the
types of securities that may be fair valued include: thinly traded or illiquid
investments, high-yield securities or foreign securities.
Foreign securities may be valued with the assistance of an independent fair
value pricing service in circumstances where it is believed that they have been
or would be materially affected by events occurring after the close of the
portfolio security's primary market and before the close of regular trading on
the 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.
GEAM may also separately monitor portfolio securities and, consistent with the
Funds' fair value procedures, apply a different value to a portfolio 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 valuation procedures will always better represent
the price at which a Fund could sell the affected portfolio security.
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.
In September 2006, FASB issued Statement of Financial Accounting Standards No.
157, Fair Value Measurements ("FAS 157"). FAS 157 establishes a single
authoritative definition of fair value, establishes a framework for measuring
fair value and expands disclosures about fair value measurements. FAS 157
applies to fair value measurements already required or permitted by existing
standards. The change to current generally accepted accounting principles from
the application of FAS 157 relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. Management of the Fund does not believe the adoption of FAS 157
will materially impact the financial statement amounts, however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements on changes in net assets for the
period. FAS 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
REPURCHASE AGREEMENTS Each of the Funds may engage in repurchase agreement
transactions with respect to instruments that are consistent with the Fund's
investment objective or policies. The Funds' custodian takes possession of the
collateral pledged for investments in repurchase agreements on behalf of the
Funds. The Funds value the underlying collateral daily on a mark-to-market basis
to determine that the value, including accrued interest, is at least equal to
102% of the repurchase price. In the event the seller defaults and the value of
the security declines, or if the seller enters an insolvency proceeding,
realization of the collateral by the Funds may be delayed or limited.
SECURITY LENDING Each of the Funds may loan securities to brokers, dealers, and
financial institutions determined by GEAM to be creditworthy, subject to certain
limitations. The Funds continue to receive the interest and dividends on the
loaned securities during the term of the loan. The loans of securities are
secured by collateral in the form of cash or other liquid assets, which are
segregated and maintained with the custodian in an amount at least equal to 102%
of the current market value of the loaned securities. During the term of the
loan, the Funds will 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
130
March 31, 2008 (unaudited)
Notes to Financial Statements
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 foreign
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 economically 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 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 economically 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
131
March 31, 2008 (unaudited)
Notes to Financial Statements
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 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.
132
March 31, 2008 (unaudited)
Notes to Financial Statements
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, 2008 information on the tax cost of investments is as follows:
COST OF GROSS TAX GROSS TAX NET TAX APPRECIATION/
INVESTMENTS UNREALIZED UNREALIZED (DEPRECIATION) ON
FOR TAX PURPOSE APPRECIATION DEPRECIATION INVESTMENTS
--------------- ------------ ------------ ------------
GE U.S. Equity Fund...................................... 396,007,047 36,938,512 (39,840,326) (2,901,814)
GE Core Value Equity Fund................................ 48,485,929 3,273,022 (4,259,108) (986,086)
GE Small-Cap Equity Fund................................. 59,618,656 9,966,861 (7,242,275) 2,724,586
GE Global Equity Fund.................................... 62,010,217 12,671,420 (4,063,831) 8,607,589
GE International Equity Fund............................. 63,642,775 14,892,175 (2,488,050) 12,404,125
GE Premier Growth Equity Fund............................ 221,999,789 23,606,253 (22,742,309) 863,944
GE Strategic Investment Fund............................. 161,757,967 17,767,061 (11,433,641) 6,333,420
GE Government Securities Fund............................ 159,484,673 3,936,173 (1,149,621) 2,786,552
GE Short-Term Government Fund............................ 114,158,815 1,471,838 (1,682,390) (210,552)
GE Tax-Exempt Fund....................................... 29,517,919 835,505 (453,296) 382,209
GE Fixed Income Fund..................................... 198,015,315 1,566,852 (4,846,524) (3,279,672)
GE Money Market Fund..................................... 1,244,980,695 -- -- --
As of March 31, 2008, 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, 2007, there were no capital loss carryover
expirations. During the year ended September 30, 2007, GE Global Equity Fund and
GE International Equity Fund utilized capital loss carryovers in the amounts of
$1,752,492 and $712,185 respectively.
FUND AMOUNT EXPIRES
- ---- -------------- --------
GE Government Securities Fund........................................................... $ 13,720,717 9/30/08
357,554 9/30/14
1,750,044 9/30/15
GE Short-Term Government Fund........................................................... 31 9/30/12
543,478 9/30/13
804,966 9/30/14
2,034,611 9/30/15
GE Tax-Exempt Fund...................................................................... 33,942 9/30/08
115,020 9/30/09
5,270 9/30/11
14,537 9/30/12
47,679 9/30/14
38,829 9/30/15
GE Fixed Income Fund.................................................................... 1,344,013 9/30/14
3,021,600 9/30/15
GE Money Market Fund.................................................................... 120 9/30/10
133
March 31, 2008 (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, 2006 as follows:
FUND CAPITAL CURRENCY
- ---- ----------- ------------
GE U.S. Equity Fund............................................................................... $ -- $ 2,858
GE Core Value Equity Fund......................................................................... -- --
GE Small-Cap Equity Fund.......................................................................... -- --
GE Global Equity Fund............................................................................. -- 2,326
GE International Equity Fund...................................................................... -- 9,874
GE Premier Growth Equity Fund..................................................................... -- --
GE Strategic Investment Fund...................................................................... -- --
GE Government Securities Fund..................................................................... -- --
GE Short-Term Government Fund..................................................................... 183,746 --
GE Tax-Exempt Fund................................................................................ 291,606 --
GE Fixed Income Fund.............................................................................. 57,787 --
GE Money Market Fund.............................................................................. -- --
The tax composition of distributions paid during the years ended September 30,
2007 and September 30, 2006 were as follows:
YEAR ENDED SEPTEMBER 30, 2007 YEAR ENDED SEPTEMBER 30, 2006
---------------------------------- --------------------------------------
EXEMPT ORDINARY LONG-TERM EXEMPT ORDINARY LONG-TERM
INTEREST INCOME CAPITAL GAINS INTEREST INCOME CAPITAL GAINS
---------- ----------------------- --------- ---------- -------------
GE U.S. Equity Fund................................ $ -- $10,697,226 $40,159,560 $ -- $10,798,894 $27,586,189
GE Core Value Equity Fund.......................... -- 762,774 5,189,716 -- 447,277 4,057,740
GE Small-Cap Equity Fund........................... -- 603,584 11,164,264 -- 972,418 2,614,423
GE Global Equity Fund.............................. -- 383,827 -- -- 360,574 --
GE International Equity Fund....................... -- 449,938 46,507 -- 1,038,797 --
GE Premier Growth Equity Fund...................... -- 2,037,265 45,445,275 -- 978,986 12,799,573
GE Strategic Investment Fund....................... -- 3,348,885 12,892,565 -- 5,533,017 16,767,751
GE Government Securities Fund...................... -- 5,022,409 -- -- 5,387,445 --
GE Short-Term Government Fund...................... -- 4,248,569 -- -- 3,752,930 --
GE Tax-Exempt Fund................................. 1,026,789 38,761 -- 1,101,228 49,980 --
GE Fixed Income Fund............................... -- 7,310,915 -- -- 9,390,998
GE Money Market Fund............................... -- 11,692,547 -- -- 8,910,335 --
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) 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
134
March 31, 2008 (unaudited)
Notes to Financial Statements
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.
On October 1, 2007, the Fund adopted FIN 48, "Accounting for Uncertainty in
Income Taxes." FIN 48 provides guidance for how certain uncertain tax positions
should be recognized, measured, presented and disclosed in the financial
statements. FIN 48 requires evaluation of tax positions taken or expected to be
taken in the course of preparing the Fund's tax returns to determine whether the
tax positions are "more likely than not" of being sustained by the applicable
tax authority. The adoption of FIN 48 did not have an impact on the Fund's net
assets and financial statements. The Funds' 2004, 2005, 2006 and 2007 calendar
years tax returns are still open to examination by the Federal and applicable
state tax authorities.
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 and includes accretion of discount and amortization of premium on bonds to
call or maturity date, whichever is shorter, using the effective yield method.
Withholding taxes on foreign dividends have been provided for in accordance with
the Funds' understanding of the applicable country's tax rules and rates.
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.
3. LINE OF CREDIT
The Trust shares a revolving credit facility of up to $150 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. In addition, the Trust has a $100
million uncommitted, unsecured line of credit with State Street, which was
established November 7, 2007. Generally, borrowings under the credit facilities
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 (i) its prospectus limitation or (ii) 20% of its net
assets. The credit facilities were not utilized by the Trust during the period
ended March 31, 2008.
4. FEES AND COMPENSATION PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION AND OTHER OPERATING FEES Compensation to 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, 2009. 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.
135
March 31, 2008 (unaudited)
Notes to Financial Statements
ANNUALIZED BASED ON AVERAGE DAILY NET ASSET
-------------------------------------------
ADVISORY AND OTHER OPERATING
ADMINISTRATION FEES EXPENSE LIMITS*
-------------------- ----------------
GE U.S. Equity Fund................................................................. 0.40% 0.50%
GE Core Value Equity Fund........................................................... 0.55% 0.37%
GE Small-Cap Equity Fund............................................................ 0.70% 0.75%
GE Global Equity Fund............................................................... 0.75% 0.75%
GE International Equity Fund........................................................ 0.80%** 0.29%
GE Premier Growth Equity Fund....................................................... 0.60%** 0.50%
GE Strategic Investment Fund........................................................ 0.35% 0.40%
GE Government Securities Fund....................................................... 0.40% 0.30%
GE Short-Term Government Fund....................................................... 0.30%** 0.30%
GE Tax-Exempt Fund.................................................................. 0.35% 0.27%
GE Fixed Income Fund................................................................ 0.35% 0.30%
GE Money Market Fund................................................................ 0.25% 0.25%
- ------------
* GEAM has agreed to assume certain other operating expenses of the Fund to
maintain expense levels at or below predetermined limits. These expense
limitations for each fund will remain in effect through January 29, 2009.
** With respect to these Funds, administration fees (amounting to .05%) are
imposed pursuant to a separate agreement.
GEAM is entitled to seek reimbursement of operating expenses absorbed by GEAM,
up to 3 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, 2008, the following Funds have expenses eligible for reimbursement as
detailed below:
EXPENSES TOTAL EXPENSES
ELIGIBLE FOR EXPENSES EXPENSES ELIGIBLE FOR
RECOUPMENT -- WAIVED -- RECOUPED -- EXPENSES RECOUPMENT --
FUND BEGINNING OF YEAR CURRENT YEAR CURRENT YEAR EXPIRED MARCH 31, 2008
- ---- ----------- ------------------- ------------- --------- --------------
GE Core Value.............................. 6,590 38,360 -- (795) 44,155
GE Small Cap............................... -- 6,927 (887) -- 6,040
GE Intl Equity............................. -- 23,385 -- -- 23,385
GE Govt Sec................................ 8,313 19,278 (9,438) -- 18,153
GE Short Term.............................. 65,299 793 (3) (27,059) 39,030
GE Tax Exempt.............................. 147,523 40,462 -- (18,548) 169,437
GE Fixed Income............................ 127,865 -- -- (6,097) 121,768
136
March 31, 2008 (unaudited)
Notes to Financial Statements
The expenses eligible for recoupment at March 31, 2008 are set to expire as
follows:
EXPIRES
FUND AMOUNTS SEPTEMBER 30
- ---- --------- ------------
GE Core Value............................................................................................ 114 2008
2,264 2009
3,417 2010
38,360 2011
GE Small Cap............................................................................................. 6,040 2011
GE Intl Equity........................................................................................... 23,385 2011
GE Govt Sec.............................................................................................. 18,153 2011
GE Short Term............................................................................................ 22,492 2008
15,385 2009
360 2010
739 2011
GE Tax Exempt............................................................................................ 13,155 2008
48,327 2009
67,493 2010
40,462 2011
GE Fixed Income.......................................................................................... 9,668 2008
97,022 2009
15,078 2010
137
March 31, 2008 (unaudited)
Notes to Financial Statements
The Funds paid the following fees to GEAM for advisory and administrative
services for the period ended March 31, 2008. All other administrative fees were
paid to either GENPACT as noted below, or State Street Bank & Trust Co.
ADVISORY AND
FUND ADMINISTRATIVE FEES
- ---- -------------------
GE U.S. Equity Fund......................................................................... $ 852,821
GE Core Value Equity Fund................................................................... 149,357
GE Small-Cap Equity Fund.................................................................... 101,909
GE Global Equity Fund....................................................................... 275,563
GE International Equity Fund................................................................ 276,660
GE Premier Growth Equity Fund............................................................... 758,781
GE Strategic Investment Fund................................................................ 300,237
GE Government Securities Fund............................................................... 242,655
GE Short-Term Government Fund............................................................... 149,471
GE Tax-Exempt Fund.......................................................................... 52,843
GE Fixed Income Fund........................................................................ 244,789
GE Money Market Fund........................................................................ 376,118
Effective January 1, 2002, GENPACT began performing certain accounting and
certain administration services not provided by GEAM. For the period ended March
31, 2008, $33,873 was charged to the Funds and was allocated pro rata across
funds and share classes based upon relative net assets.
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
effective January 1, 2006 of GEAM 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 0.85%), 1.00% for
Class C (level load) shares and 0.50% for class R shares. Currently, Class Y
shares and the GE Money Market Fund's Retail Class and Institutional Class
shares are not subject to a 12b-1 fee.
GEID has agreed that once Class B shares automatically convert to Class A
shares, six years after the date of purchase (eight years in the case of shares
acquired or exchanged from shares of Investors Trust Funds), such shareholders
will become subject to the 0.25% 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.)
138
March 31, 2008 (unaudited)
Notes to Financial Statements
SECURITY 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. The participation of all the other Funds in
the securities lending program administered by State Street Bank and Trust
Company was effectively terminated on September 21, 2007.
For the period ended March 31, 2008, the GE Government Securities Fund, GE
Short-Term Government Fund and GE Fixed Income Fund paid $534,873; $419,107; and
$625,695 respectively to GEAM. GEAM paid all fees received to third-party
brokers.
OTHER For the period ended March 31, 2008, GEID acting as underwriter received
net commissions of $55,128 from the sale of Class A shares and $82,740 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 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 short-term options,
for the period ended March 31, 2008, were as follows:
PURCHASES SALES
--------------- ---------------
GE U.S. Equity Fund............................................................................ $ 245,934,094 $ 271,843,405
GE Core Value Equity Fund...................................................................... 38,235,606 45,242,669
GE Small-Cap Equity Fund....................................................................... 13,050,394 29,881,481
GE Global Equity Fund.......................................................................... 46,046,900 45,388,091
GE International Equity Fund................................................................... 35,844,075 24,466,234
GE Premier Growth Equity Fund.................................................................. 79,437,204 160,531,140
GE Strategic Investment Fund................................................................... 240,816,380 262,850,952
GE Government Securities Fund.................................................................. 400,924,646 407,346,930
GE Short-Term Government Fund.................................................................. 117,136,526 106,674,541
GE Tax-Exempt Fund............................................................................. 17,136,526 12,832,175
GE Fixed Income Fund........................................................................... 670,764,593 685,245,662
139
March 31, 2008 (unaudited)
Notes to Financial Statements
OPTIONS During the period ended March 31, 2008, there were no option contracts
written.
SECURITY LENDING At March 31, 2008, the following Funds participated in security
lending:
LOANED SECURITIES
(INCLUDING ACCRUED INTERE CASH COLLATERAL*
------------------------- -------------
GE Government Securities Fund................................................ $ 21,731,568 $ 21,999,664
GE Short-Term Government Fund................................................ 12,885,819 13,076,691
GE Fixed Income Fund......................................................... 27,124,603 27,585,253
- ------------
* Collateral was adjusted on April 1, 2008 to reflect the March 31, 2008
change in value of securities on loan.
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, 2008 were:
5% OR GREATER SHAREHOLDERS
--------------------------- % OF FUND HELD BY
NUMBER % OF FUND HELD GE AFFILIATES*
------------- -------------- ------------------
GE U.S. Equity Fund............................................................ 3 38% 0%
GE Core Value Equity Fund...................................................... 1 11% 0%
GE Global Equity Fund.......................................................... 1 33% 33%
GE International Equity Fund................................................... 3 25% 5%
GE Premier Growth Equity Fund.................................................. 2 11% 0%
GE Strategic Investment Fund................................................... 1 7% 0%
GE Short-Term Government Fund.................................................. 3 74% 45%
GE Fixed Income Fund........................................................... 2 30% 0%
GE Small-Cap Equity Fund....................................................... 2 23% 0%
GE Tax Exempt Fund............................................................. 2 23% 0%
GE Money Market Fund........................................................... 5 60% 42%
Investment activities of these shareholders could have a material impact on the
Funds.
- ------------
* Included in the 5% or Greater Shareholder Percentage.
140
(unaudited)
Advisory Agreement Renewal
The Fund Board, including the independent Board members, considered and
unanimously approved the continuance of each of the Funds investment advisory
and administration agreements with GE Asset Management Incorporated ("GEAM")
and, with respect to the Small-Cap Equity Fund, the sub-advisory agreement with
the Fund's sub-adviser, Palisade Capital Management, L.L.C. ("Palisade"), at
meetings held on December 5 and December 12, 2007.
During the Fund Board meeting on December 12, 2007 and at prior 2007 Board
meetings, GEAM explained to the Board that it continues to evaluate whether to
restructure the Small-Cap Equity Fund by adding one or more additional
sub-advisers principally to address potential investment capacity constraints. A
small decrease in the total assets managed by Palisade in GEAM sponsored mutual
funds during 2007 alleviated the more immediate concern regarding anticipated
investment capacity constraints. This small decrease in small-cap assets overall
allowed GEAM to continue to monitor the Small-Cap Equity Fund and analyze the
various options, in light of current investment conditions. GEAM advised the
Board that it expected to complete the analysis and to report further to the
Board during the first half of 2008 as to whether to add additional
sub-advisers. GEAM also advised the Board that were one or more additional
sub-advisers added, GEAM still may limit the aggregate assets a sub-adviser
manages within its investment discipline even if Small-Cap Equity Fund assets
grow.
In considering whether to approve the Funds' investment advisory and
sub-advisory agreements, the Board members, including the independent members,
considered and discussed a substantial amount of information and analysis
provided, at the Board's request, by GEAM and Palisade. The Board members also
considered detailed information regarding performance and expenses of other
investment companies, including those with similar investment objectives and
sizes, which was prepared by an independent third party provider, Lipper Inc.
("Lipper"). The Board members reviewed the fees charged by GEAM for other mutual
funds and investment products other than mutual funds that employ the same
investment strategies as the Funds.
Before approving the Funds' advisory and sub-advisory agreements, the Board
members reviewed the proposed continuance of the agreements with management of
GEAM and with independent legal counsel. The Board members also reviewed a
memorandum prepared by independent legal counsel discussing the legal standards
for the consideration of the proposed continuances. The independent Board
members discussed the proposed continuances in detail during a private session
with their independent legal counsel at which no representatives of GEAM or
Palisade were present. The independent Board members and their independent legal
counsel requested, and received and considered, additional information from GEAM
following this session.
In advance of the meetings, and in response to their request, the Board members
received from GEAM written responses to their inquiries, which included
substantial exhibits and other materials related to GEAM's business and the
services it provides to each Fund. Also in advance of the meetings, the Board
members received from Palisade a written response to a letter of inquiry
prepared by GEAM at the Board's request, which included substantial exhibits and
other materials related to the business of, and services provided to, the
Small-Cap Equity Fund by Palisade. The Board members took into account their
multi-year experience as Board members and particularly their consideration of
these agreements in recent years, noting that the information was presented in a
similar manner and format. To focus their review, the Board members asked GEAM
management and Palisades, in their oral presentations, to highlight material
differences from the information presented in recent years. During the meetings,
the Board members had an opportunity to discuss this information with GEAM
managers, including senior executives, representatives from the legal,
compliance and finance departments, and investment personnel. The Board members
also had an opportunity to hear presentations by representatives of Palisade.
The Board members posed questions to these representatives and engaged in
substantive discussions with them concerning GEAM's and Palisade's investment
processes.
In reaching their determinations relating to continuance of the Funds'
investment advisory and sub-advisory agreements, the Board members considered
all factors
141
(unaudited)
Advisory Agreement Renewal
they believed relevant, including the factors discussed below. In
their deliberations, the Board members did not identify any particular
information that was all-important or controlling, and each Board member
attributed different weights to the various factors. The Board members evaluated
this information, and all other information available to them, for each Fund on
a fund-by-fund basis, and their determinations were made separately in respect
of each Fund. In particular, the Board members focused on the following with
respect to each Fund:
The nature, extent and quality of services provided. The Board members reviewed
the services provided by GEAM and, with respect to the Small-Cap Equity Fund,
the services provided by Palisade, and the Board members, including the
independent members found that the high quality of advisory and administrative
services performed by GEAM, and the improving quality of the advisory and
administrative services performed by Palisade, continue to be satisfactory.
In connection with their consideration of GEAM's services specifically, the
Board members focused on the favorable attributes of GEAM, including (i) an
investment philosophy oriented toward long-term performance; (ii) effective
processes used for selecting investments, selecting brokers and with respect to
Fund administration, controllership and compliance activities; (iii) highly
skilled professionals, including analysts, research professionals and portfolio
managers with a depth of experience involving the types of Funds they oversee;
(iv) access to significant technological resources from which the Funds may
benefit; and (v) a favorable history and reputation. The Board members discussed
with senior officers of GEAM the personnel changes made, and proposed to be
made, by GEAM. With respect to the Small-Cap Equity Fund, the Board members also
recognized GEAM's responsibility for supervising Palisade's services. The Board
members noted that each Fund represents only a small portion of the assets
managed by GEAM, but benefits from a full array of services and resources
provided by GEAM.
In connection with their consideration of the services provided to the Small-Cap
Equity Fund by Palisade, the Board members focused on Palisade's favorable
attributes relating to its investment philosophy and discipline, its experienced
investment and trading personnel, its systems and other resources, including
research capabilities, and its satisfactory history and reputation. The Board
members also considered Palisade's ability to effectively manage the respective
Fund in conformity with its investment objective and strategies, given the asset
size.
In light of the foregoing, the Board members, including the independent members,
concluded that the high quality of advisory and administrative services provided
by GEAM, and the improving quality of the advisory and administrative services
provided by Palisade, continue to be satisfactory.
Investment performance of the funds. The Board members considered the investment
performance of the Funds for various periods. The Board members reviewed
detailed comparisons of the performance of the Funds with the relevant
securities indexes and peer groupings of mutual funds prepared by Lipper with
respect to various periods. The Board members also engaged in detailed
discussions with GEAM management and, for the Small-Cap Equity Fund,
representatives of Palisade, about each of their respective investment
processes, focusing on each Fund's investment objective, the number and
experience of portfolio management and supporting research personnel, the
investment style and approach employed, the likely market cycles for the
investment style, and, in some instances, relative underperformance in certain
periods in light of their commitment to long-term satisfactory performance with
respect to each Fund's investment objective and investment approach. With
respect to the Small-Cap Equity Fund, the Board members, including the
independent members, having been concerned about the performance in prior years,
in particular the underperformance that occurred in 2003, noted that more recent
performance has shown improvement. The Board members look forward to having the
opportunity to review GEAM's ongoing reports and recommendations relating to the
Small-Cap Equity Fund's portfolio management. Taking these factors into
consideration, the Board members, including the independent members, concluded
that each of the Fund's performance was acceptable overall.
Cost of the services to be provided and profits to be realized from the
relationship with the Funds. The Board members considered the cost of the
services provided
142
(unaudited)
Advisory Agreement Renewal
by GEAM and, where applicable, Palisade. The Board members reviewed the
information they had requested from GEAM and Palisade concerning their
profitability from the fees and services they provide to the Funds and the
financial condition of GEAM and Palisade for various past periods. The Board
members 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
Board members also considered GEAM's agreement to voluntarily limit Fund
operating expenses for those Funds whose expenses exceed the applicable expense
limits. The Board members reviewed GEAM's assumptions and the methods of cost
allocation used by GEAM in preparing Fund-specific profitability data. The Board
members also discussed with GEAM the basis for its belief that the methods of
allocation used were reasonable and consistent across its business. For the
Small-Cap Equity Fund, the Board members reviewed the assumptions and cost
allocation methods used by Palisade in preparing its profitability data.
The Board members noted and discussed the additional services provided by GEAM
to the Funds compared to other investment products managed by GEAM, and noted
that, with respect to the Small-Cap Equity Fund, and not Fund, pays the
sub-advisory fees to Palisade. The Board members determined that GEAM and
Palisade should be entitled to earn a reasonable level of profits for the
services they provide to the Funds. The Board members also recognized that GEAM
had made significant investments in its business and had not fully recovered the
sums invested. Based on their review, the Board members, including the
independent members, concluded that they were satisfied that the level of
profitability achieved by GEAM and Palisade from their relationship with the
Funds was not unreasonable or excessive.
The extent to which economies of scale would be realized as the Funds grow and
whether fee levels would reflect such economies of scale. The Board members
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. GEAM asserted, and the Board members agreed, that because GEAM
generally charged comparatively lower fees to the Funds since inception, GEAM is
already sharing the low-fee benefits of larger asset sizes. The Board members
also considered the substantial infrastructure investments that GEAM has made
with respect to its operations and its commitment to continue investing
resources to enhance services to Fund shareholders. The Board members recognized
the benefits to each of the Funds of GEAM's past investment in its operations
through the expenditure of sums to support its substantial infrastructure, lower
Fund fees and with respect to all GEAM managed mutual funds, GEAM has not yet
fully recouped that investment.
Comparison of services to be rendered and fees to be paid. The Board members
discussed the services provided to the Funds by GEAM and Palisade, and the fees
charged for those services. The Board members reviewed information concerning
the fee and expense ratios for the Funds, and comparative information with
respect to similar products. They discussed that the Fund's figures were within
the applicable peer group ranges and in general charged a competitive rate in
comparison to their peers. In addition, the Board members considered their
discussion with representatives of GEAM and Palisade about the fees being
charged to the Funds and, to the extent applicable, the effect, if any, of the
Securities and Exchange Commission staff's interpretive guidance concerning soft
dollars. In light of the foregoing, the Board members, including the independent
members, determined that the advisory fees were reasonable in relation to the
services provided to the Funds.
For the Small-Cap Equity Fund, the Board members reviewed comparative fee
information with respect to any comparable mutual fund client accounts managed
by Palisade, if any, and with respect to any other client accounts managed by
Palisade in a similar style to that of the Small-Cap Equity Fund. The Board
members, including the independent members, concluded that, based on this
information, the sub-advisory fees were reasonable in light of the services
provided to the Small-Cap Equity Fund.
Fall-Out Benefits. The Board members considered other actual and potential
financial benefits that GEAM and Palisade may derive from their relationship
with the Funds, including, to the extent applicable, soft dollar commission
benefits generated through Fund portfolio transactions. The Board members noted,
however, that the Funds benefit from the vast array of resources
143
(unaudited)
Advisory Agreement Renewal
available through GEAM, and that each Fund represents only a small portion of
the assets managed by GEAM.
Conclusion. No single factor was determinative to the Board members' decision.
Based on their discussion and such other matters as were deemed relevant, the
Board members, including the independent members, concluded that the proposed
advisory fee rates and projected total expense ratios are reasonable in relation
to the services provided to the Funds. In view of these facts, the Board
members, including the independent members, concluded that the renewal of each
advisory agreement was in the best interests of the Funds and their
shareholders, and that the renewal of the Small-Cap Equity Fund's sub-advisory
agreement was in the best interests of the shareholders of that Fund.
144
(unaudited)
Additional Information
INFORMATION ABOUT DIRECTORS AND EXECUTIVE OFFICERS:
The business and affairs of the Funds are managed under the direction of the
Funds' Board of Trustees. Information pertaining to the Trustees and officers of
the Funds is set forth below.
INTERESTED TRUSTEES AND EXECUTIVE OFFICERS
MICHAEL J. COSGROVE
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 58
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 -- 13 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Executive Vice President -- GEAM
since February 1997; President and Chief Executive Officer -- Mutual Funds at
GEAM since March 2007; 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 48
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; Trustee of
Elfun Foundation; Treasurer, GE Foundation; Director, GE Asset Management
(Ireland) Limited, since February 1999; Director, GE Asset Management Funds Plc,
GE Asset Management Canada Company, GE Asset Management Limited, and GE
Volunteers.
MATTHEW J. SIMPSON
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 47
POSITION(S) HELD WITH FUND Trustee and Executive Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- less than one year
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Executive Vice President, General
Counsel and Secretary of GEAM since July 2007; 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 from February 1997
to July 2007; from October 1992 to February 1997, Vice President and Associate
General Counsel of GEAM; Secretary of GE Funds, GE Institutional Funds, GE
LifeStyle Funds and GE Investments Funds, Inc. from 1997 to July 2007 and Vice
President from September 2003 to July 2007; Assistant Secretary of Elfun Funds
and GE Savings & Security Funds since 1998 and Vice President from October 2003
to July 2007.
145
(unaudited)
Additional Information
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 48
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee and Executive Vice President of GE
Institutional Funds, GE LifeStyle Funds, Elfun Funds, GE Savings & Security
Funds and General Electric Pension Trust since July 2007. Director of GE
Investment Funds, Inc. since July 2007.
SCOTT H. RHODES
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 48
POSITION(S) HELD WITH FUND Treasurer
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- two years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS GEAM Mutual Funds Operations Manager
since September 2005; Treasurer of GE Institutional Funds, GE LifeStyle Funds
and GE Investments Funds since November 2005 and Elfun Funds and GE Savings &
Security Funds since September 2005; from August 2004 to September 2005 Vice
President, U.S. Trust Company, N.A. and Assistant Treasurer of Excelsior Funds,
Inc., Excelsior Funds Trust, and Excelsior Tax Exempt Funds, Inc.; from January
2004 to August 2004, Vice President BlackRock Financial Management, Inc.; from
December 1996 to November 2003, Controller -- Mutual Funds, American Skandia
Investment Services, Inc. and Assistant Treasurer of American Skandia Trust and
American Skandia Advisor Funds, Inc.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD BY TRUSTEE N/A
JEANNE M. LA PORTA
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 42
POSITION(S) HELD WITH FUND Vice President and Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- three years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Senior Vice President and Deputy
General Counsel at GE Asset Management since October 2007; Vice President and
Associate General Counsel -- Marketing and Client Services (formerly Asset
Management Services) at GEAM from May 1997 to October 2007, 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
146
(unaudited)
Additional Information
NON-INTERESTED TRUSTEES
JOHN R. COSTANTINO
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 61
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- 13 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS General Partner, NGN Capital since
2006; Managing Director, Walden Partners, Ltd., consultants and investors, since
August 1992.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 40
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; Neuroscience Research Institute since
1986; Diocesan Finance Counsel of the Diocesan of Brooklyn & Queens since 2001;
Gregorian University Foundation Since 1994.
WILLIAM J. LUCAS
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 60
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- 13 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 40
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 71
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- 13 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Retired since 1983 from Salomon
Brothers Inc.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 40
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee of GE Institutional Funds and GE
LifeStyle Funds since 1997; Director of GE Investments Funds, Inc. since 1997.
- ----------
The Statement of Additional Information for the Funds includes additional
information about the Trustees and Officers and is available, without charge,
upon request by calling 1-800-242-0134.
147
(unaudited)
Investment Team
PORTFOLIO MANAGER BIOGRAPHIES
The following sets forth biographical information for those individuals who are
primarily responsible for managing the specified Fund's investments. The
portfolio managers may change from time to time.
GEORGE A. BICHER is a Senior Vice President of GE Asset Management. Mr. Bicher
is the Director of the U.S. Equity Research Team and a portfolio manager for the
GE U.S. EQUITY FUND. Mr. Bicher has held the position of equity research analyst
since joining GE Asset Management in June 2002. Prior to joining GE Asset
Management, he served in a number of positions at Deutsche Banc Alex Brown since
1994.
DAVID B. CARLSON is an Executive Vice President of GE Asset Management and Chief
Investment Officer -- U.S. Equities at GE Asset Management. He manages the
overall U.S. equity investments for GE Asset Management. Mr. Carlson is a
portfolio manager for the GE PREMIER GROWTH EQUITY FUND and has served in this
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, a Senior Vice President in 1989
and an Executive Vice President in 2003.
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 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.
PAUL M. COLONNA is a Director and Executive Vice President of GE Asset
Management and President-Fixed Income at GE Asset Management. Since January
2005, he has led the team of portfolio managers for the GE FIXED INCOME FUND and
the GE SHORT-TERM GOVERNMENT FUND and has been responsible for the fixed income
portion of the GE STRATEGIC INVESTMENT FUND. He has served on the portfolio
management team for the GE GOVERNMENT SECURITIES FUND since February 2000. Prior
to joining GE Asset Management in February 2000, Mr. Colonna became President --
Fixed Income in March 2007. Mr. Colonna was a senior portfolio manager with the
Federal Home Loan Mortgage Corporation, overseeing the Mortgage Investment
Group.
JAMES C. GANNON is an Assistant Portfolio Manager at GE Asset Management. He has
served on the portfolio management team for the GE MONEY MARKET FUND since
December 2000. Since joining GE Asset Management in 1995, Mr. Gannon served in
various positions at GE Asset Management including Trade Operations Specialist
in fixed income, and became an Assistant Portfolio Manager in February 2003.
STEPHEN V. GELHAUS is a Vice President of GE Asset Management. He has been a
member of the portfolio management teams for the GE U.S. EQUITY FUND and the GE
CORE VALUE EQUITY FUND since January 2002. Mr. Gelhaus joined GE Asset
Management in June 1991 and was a Research Analyst in the U.S. Equity Department
from 1995 through 2001 and became an associate portfolio manager for the GE
Value Equity Fund in August 1999.
WILLIAM M. HEALEY is a Senior Vice President of GE Asset Management. He has
served on the portfolio management teams for the GE FIXED INCOME FUND, GE
GOVERNMENT SECURITIES FUND and GE SHORT-TERM GOVERNMENT FUND since joining GE
Asset Management in 1996, and the GE MONEY MARKET FUND since January of 2008.
Prior to joining GE Asset Management, Mr. Healey spent over 10 years in the
Fixed Income Group at MetLife.
BRIAN HOPKINSON is a Senior Vice President of GE Asset Management. He has been a
portfolio manager for the GE INTERNATIONAL EQUITY FUND since October 1996. Prior
to joining GE Asset Management, Mr. Hopkinson worked for Fiduciary Trust
International in both London and New York.
ROBERT JASMINSKI is a Vice President of GE Asset Management. He has been a
portfolio manager for the GE GLOBAL EQUITY FUND since September 2004. More
recently, he was appointed co-manager for this Fund. Mr. Jasminski joined GE
Asset Management in 1993 as a Fixed Income Specialist and has been an
International Equity Analyst and an International Small-Cap portfolio manager
since 1998.
148
(unaudited)
Investment Team
PORTFOLIO MANAGER BIOGRAPHIES (Continued)
MARK H. JOHNSON is a Senior Vice President of GE Asset Management and Senior
Portfolio Manager of Structured Products. He has been a member of the portfolio
management team for the GE FIXED INCOME FUND and GE GOVERNMENT SECURITIES FUND
since September 2007. Mr. Johnson joined GE in 1998 in its Employers Reinsurance
Corporation as a taxable income portfolio manager. Mr. Johnson joined GE Asset
Management as a Vice President and Portfolio Manager in 2002 and became a Senior
Vice President and Senior Portfolio Manager of Structured Products in 2007.
RALPH R. LAYMAN is a Director and Executive Vice President of GE Asset
Management and President -- International Equities at GE Asset Management. He
manages the overall international equity investments for GE Asset Management.
Mr. Layman has led the team of portfolio managers for the GE INTERNATIONAL
EQUITY FUND since the Fund's commencement and has been responsible for the
international equity portion of the GE STRATEGIC INVESTMENT FUND since September
1997. Mr. Layman joined GE Asset Management in 1991 as Senior Vice President for
International Investments and became and Executive Vice President in 1992 and
President -- International Equities in March 2007.
THOMAS LINCOLN is a Senior Vice President of GE Asset Management. Mr. Lincoln
has served on the portfolio management teams for the GE U.S. EQUITY FUND and GE
STRATEGIC INVESTMENT FUND since May 2007. Mr. Lincoln joined GE Asset Management
in 1994 as a financial analyst in domestic equities. Mr. Lincoln became part of
the investment management team for domestic equities at GEAM in 1997 and a
portfolio manager for domestic equities in 2003.
MICHAEL E. MARTINI is a Portfolio Manager at GE Asset Management. He has served
on the portfolio management team for the GE MONEY MARKET FUND since joining GE
Asset Management in March of 2008. Prior to joining GE Asset Management, Mr.
Martini was a Vice President at Ceres Capital Partners LLC, where he worked at
the firm's treasury desk from March 2006 to January 2008, and a Senior Vice
President at Pacific Investment Management Company (PIMCO) from 1996 to 2004,
where he was a portfolio manager at the firm's money market/short-term desk.
ANDREW A. MASELLI is an Assistant Portfolio Manager at GE Asset Management. He
has served on the portfolio management team for the GE MONEY MARKET FUND since
April 2003. Mr. Maselli joined GE Asset Management in 1998 as a data integrity
analyst in trade operations, where he held various positions both in equities
and fixed income support. In 2002, he was promoted to Senior Trade Support
Specialist working on the short-term desk and became an Assistant Portfolio
Manager in June 2005.
DAIZO MOTOYOSHI is a Senior Vice President of GE Asset Management. He has been a
portfolio manager of the GE GLOBAL EQUITY FUND 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 GE Asset Management, Mr. Motoyoshi held positions at Alliance
Capital Management and Ernst & Young.
PAUL NESTRO is a Vice President of GE Asset Management. He has been a portfolio
manager for the GE INTERNATIONAL EQUITY FUND since February 2007. Mr. Nestro
joined GE Asset Management in 1993 as a performance and attribution analyst in
U.S. Equities. He became a senior performance and attribution analyst in 1994
and since 1996 has been an analyst and portfolio manager in the International
Equities group.
JAMES F. PALMIERI is a Portfolio Manager of GE Asset Management. Since March
2006, he has managed the mortgage-backed securities sector for the GE FIXED
INCOME FUND. Prior to joining GE Asset Management in March 2006, Mr. Palmieri
was a Director of Investments for Constitution Corporate Federal Credit Union
from February 2005 to March 2006 and a Portfolio Manager for CIGNA Investment
Management from January 2000 to February 2005.
JONATHAN L. PASSMORE is a Senior Vice President of GE Asset Management. He has
served as a portfolio manager of the GE INTERNATIONAL EQUITY FUND since January
2002. Prior to joining GE Asset Management in January 2001, he was with Merrill
Lynch for six years, most recently as Director, International Equity.
VITA MARIE PIKE is a Vice President of GE Asset Management. She has served on
the portfolio
149
(unaudited)
Investment Team
PORTFOLIO MANAGER BIOGRAPHIES (Continued)
management team for the GE FIXED INCOME FUND since June 2004. Prior to joining
GE Asset Management in January 2001, she was with Alliance Capital for over nine
years serving in a number of different capacities including portfolio manager.
PAUL C. REINHARDT is a Senior Vice President of GE Asset Management. He has been
a portfolio manager for the GE U.S. EQUITY FUND since January 2001 and for the
GE CORE VALUE EQUITY FUND since April 2002. Mr. Reinhardt joined GE Asset
Management in 1982 as an Equity Analyst and has been a portfolio manager since
1987.
CHITRANJAN SINHA is a portfolio manager and senior quant analyst at GE Asset
Management. He has served on the portfolio management team for GE GOVERNMENT
SECURITIES FUND and GE SHORT-TERM GOVERNMENT FUND since September 2007. Mr.
Sinha joined GE Asset Management in 1997 and has held a variety of research and
strategy positions at GE Asset Management.
MICHAEL J. SOLECKI is a Senior Vice President of GE Asset Management. He has
served as a portfolio manager of the GE INTERNATIONAL EQUITY FUND since
September 1997. He joined GE Asset Management in 1990 as an International Equity
Analyst. He became a Vice President for International Equity Portfolios in 1996
and Senior Vice President in 2000.
JUDITH A. STUDER is a Director and Executive Vice President of GE Asset
Management and President -- U.S. Equities at GE Asset Management. She is vested
with Oversight Authority for determining Asset Allocations for the GE STRATEGIC
INVESTMENT FUND since July 2004. Ms. Studer joined GE Asset Management in August
1984. She became Senior Vice President -- U.S. Equities in 1991, Senior Vice
President -- International Equities in 1995, President -- Investment Strategies
in July 2006 and President -- U.S. Equities in June 2007.
MAKOTO SUMINO is a Senior Vice President of GE Asset Management. He has served
on the portfolio management team for the GE INTERNATIONAL EQUITY FUND since
February 2007. Mr. Sumino joined GE Asset Management in September 1996 as a
securities analyst and portfolio manager. He became Deputy Director of the
International Equity Research Team in January 2001 and Director in April 2005.
LEWIS TATANANNI is a Senior Corporate Trader at GE Asset Management. He has been
a member of the portfolio management team for the GE FIXED INCOME FUND since
December 2007. Mr. Tatananni joined GE Asset Management in October 2002 and was
responsible for executing the interest rate derivative hedging programs for GE
Asset Management's insurance clients. Mr. Tatananni joined GE in 1999 as an
associate at GE Capital Treasury and was responsible for debt origination and
derivative execution.
DIANE M. WEHNER is a Vice President of GE Asset Management. She has been a
portfolio manager of the GE STRATEGIC INVESTMENT FUND since January 2006. Before
joining GE Asset Management, Ms. Wehner was a Vice President and Senior
Portfolio Manager from January 1997 to June 2001, and associate portfolio
manager from May 1995 to January 1997, with Benefit Capital Management
Corporation. Ms. Wehner has served as an analyst/portfolio manager in the
investment management industry since 1985.
JACK FEILER is a portfolio manager of GE SMALL-CAP EQUITY FUND and President and
Chief Investment Officer of Palisade Capital Management, L.L.C. (Palisade). 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. He has served as a portfolio manager of the
GE SMALL-CAP EQUITY FUND since its inception. Prior to joining Palisade, Mr.
Feiler was a Senior Vice President -- Investments at Smith Barney from 1990 to
1995.
JEFFREY SCHWARTZ, CFA, is a portfolio manager of GE SMALL-CAP EQUITY FUND. Mr.
Schwartz is a Senior Portfolio Manager at Palisade Capital Management L.L.C.
(sub-adviser). Mr. Schwartz joined Palisade in October 2004. Prior to joining
Palisade, Mr. Schwartz was Vice President and Senior Portfolio Manager of Safeco
Asset Management from September 2003 to September 2004. From June 2001 to August
2003, Mr. Schwartz founded Nantucket Investment Research in Farmington Hills,
MI, conducted independent investment research and was a private investor. From
June 1992 until May 2001, Mr. Schwartz was at Munder Capital Management, most
recently as a Senior Portfolio Manager and Principal.
150
(unaudited)
Investment Team
PORTFOLIO MANAGER BIOGRAPHIES (Continued)
DENNISON T. ("DAN") VERU is a portfolio manager of GE SMALL-CAP EQUITY FUND. Mr.
Veru is a managing member and Co-Investment Officer of Palisade Capital
Management L.L.C (sub-adviser). Since joining Palisade in March 2000, Mr. Veru
has been a member of the Investment Policy Committee. Mr. Veru became a
principal of Palisade in July 2004. Prior to joining Palisade, he was President
and Director of Research of Awad Asset Management, a division of Raymond James &
Associates. Mr. Veru has been a frequent guest on CNBC, CNN and Bloomberg
television. Prior to Awad, Mr. Veru worked with the Palisade team from 1986
through 1992. Mr. Veru graduated from Franklin Marshall College.
151
(unaudited)
Investment Team
TRUSTEES
Michael J. Cosgrove
John R. Costantino
William J. Lucas
Matthew J. Simpson
Robert P. Quinn
SECRETARY
Jeanne M. La Porta
ASSISTANT SECRETARY
Joseph A. Carucci
Joon Won Choe
TREASURER
Scott H. Rhodes
ASSISTANT TREASURER
Scott R. Fuchs
Christopher M. Isaacs
OFFICERS OF THE INVESTMENT ADVISER
James W. Ireland III, Chief Executive Officer
Paul M. Colonna, EVP, President -- Fixed Income
Michael J. Cosgrove, EVP, President and Chief Executive
Officer -- Mutual Funds
Kathryn D. Karlic, EVP, President -- Institutional Sales and Marketing
Ralph R. Layman, EVP, President -- International Equities
Matthew J. Simpson, EVP, General Counsel and Secretary
Judith M. Studer, EVP, President -- U.S. Equities
Donald W. Torey, EVP, President -- Alternative Investments and Real Estate
John J. Walker, EVP, Chief Operating Officer
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 FINRA and SIPC
SHAREHOLDER SERVICING AGENT AND TRANSFER AGENT
PFPC Inc.
GE Mutual Funds
P.O. Box 9838
Providence, RI 02940
CUSTODIAN
State Street Bank & Trust Company
At GE Asset Management, 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
heritage of investment management experience 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.
152
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154
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155
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156
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157
(unaudited)
GE Fund's Brightest Stars
AVERAGE ANNUAL TOTAL RETURNS**
---------------------------------------------
INCEPTION ONE THREE FIVE TEN SINCE MORNINGSTAR(TM)***
AS OF 3/31/08 DATE* YEAR YEARS YEARS YEARS INCEPTION OVERALL RATING
- ------------- --------- ----- ----- ----- ----- --------- ------------------
DOMESTIC EQUITY FUNDS
GE Strategic Investment Fund Class A........ 1/5/93 2.63% 8.00% 10.33% 5.94% 8.71% ****
GE Strategic Investment Fund Class B........ 12/22/93 1.91% 7.21% 9.51% 5.47% 8.26% ****
GE Strategic Investment Fund Class R........ 1/29/08 -- -- -- -- (.84)% ****
GE Strategic Investment Fund Class Y****.... 1/29/93 2.91% 8.52% 10.75% 6.28% 8.96% ****
GE U.S. Equity Fund Class Y****............. 11/29/93 (1.98)% 6.08% 10.12% 4.27% 9.63% ****
GE Core Value Equity Fund Class R........... 1/29/08 -- -- -- -- (2.38)% ****
GE Core Value Equity Fund Class Y****....... 1/5/98 (.88)% 7.50% 11.59% 5.14% 6.22% ****
GE Premier Growth Equity Fund Class Y****... 12/31/96 (1.47)% 4.26% 8.81% 5.11% 7.93% ****
GE International Equity Fund Class C........ 9/30/99 8.74% 17.47% 21.63% -- 4.60% ****
FIXED INCOME FUNDS
GE Tax-Exempt Fund Class Y****.............. 9/26/97 2.73% 3.05% 2.81% 4.64% 4.70% ****
GE Short-Term Government Fund Class Y****... 3/2/94 6.33% 4.69% 3.22% 4.86% 4.98% ****
- ------------
* Commencement of operations
** These returns do not reflect the impact of any loads or redemption fees,
which are reflected in the MD&A.
*** The GE Strategic Investment Fund Class A was rated among 905,712 and 416
Moderate Allocation Funds for the three, five and ten-year periods,
respectively.
The GE Strategic Investment Fund Class B was rated among 905,712 and 416
Moderate Allocation Funds for the three, five and ten-year periods,
respectively.
The GE Strategic Investment Fund Class R was rated among 905,712 and 416
Moderate Allocation Funds for the three, five and ten-year periods,
respectively.
The GE Strategic Investment Fund Class Y was rated among 905,712 and 416
Moderate Allocation Funds for the three, five and ten-year periods,
respectively.
The GE U.S. Equity Fund Class Y was rated among 1664, 1314 and 621 Large
Blend Funds for the three, five and ten-year periods, respectively.
The GE Core Value Equity Fund Class R was rated among 1664, 1314 and 621
Large Blend Funds for the three, five and ten-year periods, respectively.
The GE Core Value Equity Fund Class Y was rated among 1664, 1314 and 621
Large Blend Funds for the three, five and ten-year periods, respectively.
The GE Premier Growth Equity Fund Class Y was rated among 1442, 1207 and
564 Large Growth Funds for the three, five and ten-year periods,
respectively.
The GE International Equity Fund Class C was rated among 557, 459 and 231
Foreign Large Blend Funds for the three, five and ten-year periods,
respectively.
The GE Tax-Exempt Fund Class Y was rated among 241, 217 and 130 Muni
National Intermediate Funds for the three, five and ten-year periods,
respectively.
The GE Short-Term Government Fund Class Y was rated among 140, 131 and 102
Short Government Funds for the three, five and ten-year periods,
respectively.
**** As of January 26, 2006, Class Y shares were closed to new investors and may
be purchased only by existing Class Y shareholders of record that still
hold Class Y shares of any Fund.
(unaudited)
GE Fund's Brightest Stars
Past performance is no guarantee of future results. (C)2008 Morningstar, Inc.
All Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or distributed;
and (3) is not warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses arising from
any use of this information. For each fund with at least a three-year history,
Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted
Return measure that accounts for variation in a fund's monthly performance
(including the effects of sales charges, loads, and redemption fees), placing
more emphasis on downward variations and rewarding consistent performance. The
Overall Morningstar Rating for a fund is derived from a weighted average of the
performance figures associated with its three-, five- and ten-year (if
applicable) Morning Rating metrics. The GE Strategic Investment Fund Class A
received three stars for the three year period, three stars for the five year
period and four stars for the ten-year period. The GE Strategic Investment Fund
Class B received four stars for the three year period, three stars for the five
year period and four stars for the ten-year period. The GE Strategic Investment
Fund Class R received four stars for the three year period, four stars for the
five year period and four stars for the ten-year period. The GE Strategic
Investment Fund Class Y received five stars for the three year period, four
stars for the five year period and four stars for the ten-year period. The GE
U.S. Equity Fund Class Y received four stars for the three year period three
stars for the five year period and four stars for the ten-year period. The GE
Core Value Equity Fund Class R received four stars for the three year period,
three stars for the five year period and four stars for the ten-year period. The
GE Core Value Equity Fund Class Y received four stars for the three year period,
four stars for the five year period and four stars for the ten-year period. The
GE Premier Growth Equity Fund Class Y received three stars for the three year
period, three stars for the five year period and four stars for the ten-year
period. The GE International Equity Fund Class C received five stars for the
three year period, three stars for the five year period and two stars for the
ten-year period. The GE Tax-Exempt Fund Class Y received three stars for the
three year period, three stars for the five year period and four stars for the
ten-year period. The GE Short-Term Government Fund Class Y received three stars
for the three year period, four stars for the five year period and four stars
for the ten-year period. RATINGS FOR OTHER GE FUNDS OR OTHER CLASSES OF SHARES
MAY BE DIFFERENT. The top 10% of funds in each category receive 5 stars, the
next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive
2 stars and the bottom 10% receive 1 star. (Each share class is counted as a
fraction of one fund within this scale and rated separately, which may cause
slight variations in the distribution percentages.) The l Morning RatingTM for a
fund is derived from a weighted average of the performance figures associated
with its three-, five- and 10-year (if applicable) Morningstar Rating metrics.
BEFORE INVESTING IN A GE FUND, YOU SHOULD CAREFULLY CONSIDER THE INVESTMENT
OBJECTIVES, RISKS AND CHARGES AND EXPENSES OF THE FUND. FOR A FREE COPY OF A
FUND'S PROSPECTUS, WHICH CONTAINS THIS AND OTHER INFORMATION, PLEASE VISIT OUR
WEBSITE AT WWW.GEFUNDS.COM OR CALL 1-800-242-0134. PLEASE READ THE FUND
PROSPECTUS CAREFULLY BEFORE YOU INVEST.
GE Investment Distributors, Inc., Member FINRA and SIPC, is a wholly owned
subsidiary of GE Asset Management Incorporated, the investment adviser of the GE
Funds.
THIS DOES NOT CONSTITUTE A PART OF THE FUNDS' SHAREHOLDER REPORT
INVESTMENT ADVISER
GE ASSET MANAGEMENT INCORPORATED
3001 Summer Street
P.O. Box 7900
Stamford, CT 06904-7900
DISTRIBUTOR
GE INVESTMENT DISTRIBUTORS, INC.
member FINRA and SIPC
3001 Summer Street
P.O. Box 7900
Stamford, CT 06904-7900
www.gefunds.com
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Newark NJ
Permit 744
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SHAREHOLDER INQUIRIES
Please contact your financial advisor, or if you receive account statements
directly from GE Funds, call (800) 242-0134. Telephone representatives are
available from 8:30 am to 8:00 pm. Correspondence can be mailed to:
GE MUTUAL FUNDS
C/O PFPC INC.
P.O. BOX 9838
PROVIDENCE, RI 02940
Also, visit us on the web at http://www.gefunds.com.
Y SHARE CLASS INVESTORS:
Contact your designated
GE Asset Management
account representative.
401(K) PLAN INVESTORS: Call your company's designated plan number.
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Funds Forms N-Q, as well as a description of the policies and
procedures that the Fund uses to determine how to vote proxies (if any) relating
to portfolio securities is available without charge (i) upon request, by calling
1-800-242-0134; (ii) on the Funds website at http://www.gefunds.com; and (iii)
on the Commissions website at http://www.sec.gov. The Funds Forms N-Q may be
reviewed and copied at the Commissions Public Reference Room in Washington, DC -
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
[LOGO]
GEF-2 (3/08) 903105
THIS DOES NOT CONSTITUTE A PART OF THE FUNDS' SHAREHOLDER REPORT
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Applicable only to Closed-End Management Investment Companies.
ITEM 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
Applicable only to Closed-End Management Investment Companies.
ITEM 10. Submission of Matters to a Vote of Security Holders.
No material changes.
ITEM 11. 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 12. 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 06, 2008
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 06, 2008
By: /S/SCOTT RHODES
Scott Rhodes
TREASURER, GE FUNDS
Date: June 06, 2008
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.