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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
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Date of fiscal year end: 09/30
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Date of reporting period: 03/31/10
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ITEM 1. REPORTS TO STOCKHOLDERS
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GE Funds
Letter from the President
[PHOTO]
Michael J. Cosgrove
Chairman, GE Funds
Michael J. Cosgrove
Chairman, GE Funds
DEAR SHAREHOLDER:
Attached is the semi-annual report for the GE Funds for the six-month period
ended March 31, 2010. The report contains information about the performance of
each GE 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
Over the six-month period ended March 31, 2010, the sharp rise in global equity
markets slowed as market participants appeared to alternate between
risk-seeking activities based on improving economic indicators and risk
aversion due to concerns about the withdrawal of government stimulus measures.
U.S. equities (S&P 500 Index) gained 11.8% over the six-month period, while
international stocks (MSCI EAFE Index) rose 3.1%, illustrating lower gains
since the end of the third quarter of 2009.
As we began the final quarter of 2009, October brought mixed economic data and
the first monthly losses for most market indices since the rally began in
March. The S&P 500 Index and MSCI EAFE Index finished the month down 1.9% and
1.3%, respectively. Yet as the Thanksgiving holiday approached, many equity
indices had climbed to their highest levels in more than a year, aided by
improving economic data. In the final trading days of November, however,
markets grew turbulent as news of an unfolding debt crisis in Dubai caused a
global selloff in equities. There were few details at the onset of the
announcement, which caused considerable market volatility. But by December, the
markets had mostly shrugged off the matter, after the state-run company Dubai
World received a $10 billion bailout from Abu Dhabi to avoid defaulting on a
$4.1 billion bond payment. Dubai World also met with 90 banks to reschedule
another $22 billion in debt. Macro-economic data was largely encouraging in the
fourth quarter and corporate earnings reports had generally beaten analysts'
estimates with ease. In the United States, unemployment claims, manufacturing
surveys, home price indices and earnings revisions all strengthened, allowing
the S&P 500 Index to advance 6.0% during the quarter ended December 31, 2009.
Among non-U.S. equity markets, emerging markets took top honors, rising 8.6% in
the fourth quarter followed by the U.K. (+6.9%), the Pacific Rim (+5.2%) and
Canada (+5.0%). Japan remained at the bottom of the pack, down 2.7%.
U.S. Treasury yields rose in the fourth quarter and the yield curve steepened,
as is often the case when economic forecasts improve and expectations for Fed
rate hikes gain strength. The yield on the U.S. Treasury 10-year note ended the
year at 3.84%, up 73 basis points on the quarter and 163 basis points on the
year. But despite lower returns in the fourth quarter, U.S. fixed income
investments generally had a good year in 2009, overall. The Barclays U.S.
Aggregate Bond Index had a twelve-month return of nearly 6%, while the
Barclay's Capital Municipal Bond Index returned 12.9% for the year.
At the start of 2010, equity markets experienced a selloff in January and early
February as investors reacted negatively to signs that there was a lower
probability of a V-shaped recovery. Concerns about new global financial
regulation, policy tightening in China, and high levels of U.S. and European
debt, especially Greek sovereign debt, further fueled the volatility. Stocks
reversed these losses in the second half of the first quarter, rising steadily
as stronger than expected corporate earnings changed the tone in the market.
The S&P 500 Index advanced 5.4% for the first quarter of 2010 and indices
tracking smaller capitalization stocks enjoyed even greater gains with the
Russell 2000 Index and the Russell Mid Cap Index finishing the first quarter of
2010 8.8% and 8.7% higher, respectively. Gains were more subdued in non-U.S.
equity markets, with the MSCI EAFE Index advancing 0.9% during the same quarter
as fears of sovereign credit risk in Europe overshadowed stronger earnings
reports. Regionally, Japan took top honors, rising 8.2% based on relatively
attractive valuations combined with the prospects for a weaker yen to help spur
exports. Canada rose 6.0%, followed by the Pacific Rim (+3.1%), and Emerging
Markets (+2.4%). The U.K. fell 0.6% while Continental Europe dropped 2.4% as
Greece's situation raised concerns about other highly indebted Eurozone
countries, including Portugal, Italy, Ireland, Spain, and even the United
Kingdom. The U.S. bond market returned 1.8% (Barclays Capital U.S. Aggregate
Bond Index) in the first quarter helped by another solid
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THIS DOES NOT CONSTITUTE A PART OF THE FUNDS' SHAREHOLDER REPORT
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GE Funds
Letter from the President (continued)
performance by the credit related sectors. Fixed income securities outside the
U.S. performed similarly, however the Barclays Global Aggregate Un-hedged Bond
Index lost 0.3% (in U.S. dollar terms) due primarily to the strengthening
dollar versus other major currencies. U.S. interest rates ended the first
quarter little changed after trading lower in early February due to sovereign
debt worries in Greece. Interest rates in the U.K. and Eurozone fell in
general, except in Greece where rates jumped on default fears, while Japanese
government debt yields traded higher by quarter-end.
As U.S. and European economies continued to show signs of improvement,
financial markets posted positive results for the six- and 12-month periods
ended March 31, 2010.
TOTAL RETURNS AS OF MARCH 31, 2010 6-MONTH 12-MONTH
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U.S. equities (S&P 500 Index) 11.8 49.8
Global equities (MSCI World Index) 7.4 52.4
International equities (MSCI EAFE Index) 3.1 54.4
Emerging Markets equities (MSCI EM Index) 11.2 81.1
Small-cap U.S. equities (Russell 2000 Index) 13.1 62.8
Mid-cap U.S. equities (Russell Mid Cap Index) 15.1 67.7
U.S. fixed income (Barclays Capital U.S. Aggregate Bond
Index) 2.0 7.7
U.S. short-term government fixed income (Barclays Capital
1-3 Year U.S. Government Bond Index) 0.8 1.8
U.S. tax-exempt income (Barclays Capital U.S. Municipal
Bond Index 10 (8-12) Year Component) 0.1 7.7
OUTLOOK
Economies around the world are showing signs of improvement driven by
unprecedented global stimulus and supportive monetary policy. Corporate balance
sheets continue to improve, while consumers remain more conservative around
debt and spending levels. This suggests that the economic recovery will
potentially be driven by business investment as companies begin to spend cash
from flush balance sheets. We believe equities are likely to be stronger
earlier in 2010, driven by a rebuilding of companies' shriveled inventories, an
increase in corporate investment spending from historically depressed levels,
the delayed effect of government stimulus, and stronger end demand,
particularly from emerging markets. But many challenges remain on the horizon
including the risk of policy missteps. In our view, this may temper the
magnitude of growth we see over the year.
At GE Funds, we are fully committed to helping you achieve your goals with
smart proven strategies designed for long-term success. While the equity
markets appear to be recovering, the only certainty about their near-term
direction is continued uncertainty. We encourage long-term investors to
maintain a diversified investment approach that is consistent with their goals,
time horizon and risk tolerance. While diversified portfolios are not immune to
market downturns, history suggests they can put you in a position to benefit
from the inevitable return to better times.
Thank you for investing with GE Funds.
Sincerely,
/s/ Michael J. Cosgrove
Chairman, GE Funds
Michael J. Cosgrove
Chairman, GE Funds
April 2010
Mike Cosgrove is President and Chief Executive Officer-Mutual Funds &
Intermediary Business 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
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GE Funds
Semi-Annual Report
March 31, 2010
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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................. 13
GE Premier Growth Equity Fund............. 21
GE Small-Cap Equity Fund.................. 28
GE Global Equity Fund..................... 38
GE International Equity Fund.............. 46
GE Total Return Fund...................... 55
GE Government Securities Fund............. 79
GE Short-Term Government Fund............. 85
GE Tax-Exempt Fund........................ 91
GE Fixed Income Fund...................... 100
GE Money Market Fund...................... 114
NOTES TO SCHEDULES OF INVESTMENTS............ 120
FINANCIAL STATEMENTS
Financial Highlights...................... 122
Notes to Financial Highlights............. 143
Statements of Assets and Liabilities...... 144
Statements of Operations.................. 148
Statements of Changes in Net Assets....... 150
Notes to Financial Statements............. 154
ADVISORY AGREEMENT APPROVAL.................. 177
ADDITIONAL INFORMATION....................... 181
INVESTMENT TEAM.............................. 184
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, 2010 (unaudited)
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Notes to Performance
Total returns take into account changes in share price and assume reinvestment
of dividends and capital gains distributions, if any. Total returns shown are
net of Fund expenses. Total returns for Class A shares are shown for both with
and without the imposition of the maximum applicable front-end sales charge,
and the total returns for Class B and Class C shares are shown for both with
and without the imposition of the maximum applicable contingent deferred sales
charge (CDSC). Information on the maximum front-end sales charge and CDSC for
each Fund can be found in Note 1 of the Notes to Financial Statements in this
report.
The performance data quoted represent past performance; past performance does
not guarantee future results. Investment return and principal value will
fluctuate so your shares, when redeemed, may be worth more or less than their
original cost. Current performance may be higher or lower than the performance
data quoted. Periods less than one year are not annualized. Please call
toll-free (800) 242-0134 or visit the Fund's website at http://www.geam.com for
the most recent month-end performance data.
An investment in a Fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency. An investment in a Fund is subject to risk, including
possible loss of principal invested.
A portion of the GE Tax-Exempt Fund's income may be subject to state, federal
and/or alternative minimum tax. Capital gains, if any, are subject to capital
gains tax.
GE Asset Management Incorporated ("GEAM") has agreed in writing to limit other
operating expenses (exclusive of advisory, administration and distribution
fees) of each class of the GE Tax-Exempt Fund on an annualized basis through
January 29, 2011. Had these fees and expenses not been absorbed, the returns
(and/or yields) for the GE Tax-Exempt Fund would have been lower. Additional
information about the expense limitations is contained in Note 6 of 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 1000(R) Growth Index
measures the performance of the large-cap growth segment of the U.S. equity
universe. It includes those companies in the Russell 1000(R) Index with higher
price-to-book ratios and higher forecasted growth values. The Russell 1000(R)
Index measures the performance of the large-cap segment of the U.S. equity
universe. It is a subset of the Russell 3000(R) Index and includes
approximately 1000 of the largest securities based on a combination of their
market cap and current index membership. The Russell 2000(R) Index is a market
capitalization-weighted index consisting of approximately 2,000 of the smallest
U.S.-domiciled publicly traded common stocks that are included in the Russell
3000(R) Index. The MSCI World(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
throughout the world and excludes certain market segments unavailable to U.S.
based investors. The MSCI 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 Barclays Capital U.S. 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 Barclays Capital U.S. 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 Barclays Capital 1-3 Year U.S. 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 Barclays Capital
10-Year Municipal Bond 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.
The above indices/measures do not reflect the actual cost of investing in the
instruments that comprise each index.
The peer universe of the underlying funds used in our peer group average return
calculation is based on the blend of Morningstar peer categories, as shown.
1
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March 31, 2010 (unaudited)
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Notes to Performance
Morningstar is an independent mutual fund rating service. A Fund's performance
may be compared to or ranked within a universe of mutual funds with investment
objectives and policies similar but not necessarily identical to the Fund's.
(C)2009 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 damage or losses relating from any use of this information. Past
performance is no guarantee of future results.
Russell Investment Group owns the Russell Index data, including all applicable
trademarks and copyrights, used by GEAM in these materials. Any unauthorized
use or redistribution of such Russell Index data is strictly prohibited.
Russell Investment Group is not responsible for the configuration of this
material or for any inaccuracy in GEAM's presentation thereof.
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, the investment adviser of the GE Funds.
The views expressed in this document reflect our judgment as of the publication
date and are subject to change at any time without notice.
(a)Ending value of a $10,000 investment for the ten-year period or since
inception, whichever is less.
2
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GE U.S. Equity Fund
[PHOTO]
George A. Bicher
Senior Vice President
George A. Bicher
Senior Vice President
[PHOTO]
Stephen V. Gelhaus
Vice President
Stephen V. Gelhaus
Vice President
[PHOTO]
Thomas R. Lincoln
Senior Vice President
Thomas R. Lincoln
Senior Vice President
[PHOTO]
Paul C. Reinhardt
Senior Vice President
Paul C. Reinhardt
Senior Vice President
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-manages) one
of three sub-portfolios, which comprise the Fund. A sub-portfolio refers to the
portion of the Fund's assets that are allocated to, and managed by, a
particular portfolio manager on the Fund's portfolio management team. 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 184.
Q.HOW DID THE GE U.S. EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE U.S. Equity Fund
returned 9.41% for Class A shares, 9.03% for Class B shares, 9.00% for Class
C shares, 9.30% for Class R shares and 9.54% for Class Y shares. The S&P 500
Index, the Fund's benchmark, returned 11.75% and the Fund's Morningstar peer
group of 1,837 Large Growth Funds returned an average of 11.37% for the same
period.
Q.WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A.In the six-month period ended March 31 2010, the U.S. and global economies
continued a gradual recovery, which has, for the most part, been reflected by
further gains in U.S. stock prices. Each broad measure of U.S. Equity market
performance achieved double-digit returns during the period, with greater
breadth of performance across the market. In general, small and mid-cap
stocks outperformed large caps, and lower quality companies achieved greater
advances -- a headwind to portfolio managers that prioritize balance sheet
quality, strong capital management, experienced management and market
leadership.
In the second half of the period, as concerns about Greece's crumbling
balance sheet escalated, markets witnessed a rise in risk aversion benefiting
U.S. over non-U.S. stocks. Against this backdrop, the U.S. Dollar advanced
against the Euro. U.S. central bank reassurances that interest rates would
remain low also boosted investor confidence. At the same time, improving
corporate earnings bolstered equities, with revenues and earnings broadly
beating expectations in 4/th/ quarter 2009. Investors cheered as signs of
end-market demand re-emerged,
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GE U.S. Equity Fund
alongside cost-cutting measures. Financials and cyclical sectors put up the
best 4/th/ quarter 2009 earnings results, with greater earnings revisions
among cyclical sectors versus defensive sectors. Consistent with these
results, the cyclical sectors outperformed, while defensive sectors lagged.
Energy was the only cyclical sector to lag as tightening measures in Asian
central banks put a question mark around emerging market demand.
The unfolding corporate earnings recovery plants the seeds of hope for a
sustainable recovery. However, many questions remain about the durability of
the recovery. Investors may also be worried by the scope of government
intervention in the aftermath of the financial crisis and the ultimate cost
to taxpayers.
Q.WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A.After last year's significant outperformance, an investment environment
favoring small-cap, low quality companies challenged performance in the first
half of this year, as the Fund remained focused on large-cap, high quality
companies. Holdings in the financials and consumer discretionary sectors were
the key drivers of Fund underperformance. In financials, the Fund was light
on asset managers (levered to climbing equity markets) and REITs which
rallied. In general, custody banks like State Street (-14%) lagged as low
trading volumes and low interest rates dampened the industry's profit
outlook. However, we believed a reversal in these cyclical factors could
create tailwinds as activity returns, rates increase and market values rise.
Goldman Sachs (-7%) also took a breather as investor appetite increased for
financials further out on the risk spectrum. In consumer discretionary, the
Fund's emphasis on the less cyclical media stocks hurt as investors flocked
to industries more leveraged to the improving employment and consumer
spending trends (e.g., retail, autos and leisure).
Other key detractors included quality technology companies, Western Union
(-10% on concerns around high unemployment levels) and Qualcomm (-6% as it
struggled with guidance tied to the economy). Fortunately, by the end of
March, both Western Union and Qualcomm had rebounded amid improving
fundamentals. A final negative driver was Amgen (-1%) which lagged amid
persistent anemia franchise concerns and caution on the therapeutics
pipeline. We still maintained conviction in Amgen, believing that earnings
growth should re-accelerate in 2011, with a possible boost from a potential
blockbuster in bone health in late stage trials.
On the positive side, the Fund's telecom holdings (+21%) significantly
outperformed the S&P telecom sector (+3%) by over 18%. NII Holdings (Nextel
International +39%) was the Fund's top-contributing stock, as the company
announced the sale of a 30% stake in its Mexican wireless unit to Grupo
Televisa SA, the world's largest Spanish-language broadcaster, for $1.4
billion. Strong stock selection in utilities also helped Fund returns, driven
by Dominion Resources (+22%) and Northeast Utilities (+19%). In materials,
Allegheny Technologies increased 56% as the supply/demand situation in
titanium and other specialty metals improved.
Q.WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND DURING THE PERIOD?
A.No. Our process remained consistent as we continued to seek large cap, high
quality companies that we felt had the potential to survive and grow market
share during a slow, gradual recovery. We continued to emphasize companies
with strong balance sheets and earnings stability, over more cyclical or
leveraged opportunities. We reduced our financial sector overweight during
the period, and took advantage of relative weakness in energy to boost our
exposure to that sector, which we believe faces tremendous long-term
supply-demand imbalances. We also went from an underweight in materials to an
overweight position. At March 31, 2010, the Fund's largest overweights were
in technology and health care,
4
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GE U.S. Equity Fund
and the largest underweights were in consumer staples and industrials.
Valuations for many companies remain attractive, even after the strong
rebound that began a year ago in March 2009. While lower quality companies
have outperformed recently, we believe any future market rally will be
dominated by outperformance by market share winners with strong balance
sheets and management teams. Amid changing market conditions in the past six
months, we have maintained our bottom-up stock selection approach with focus
on a long-term investment horizon.
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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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
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ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
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ACTUAL FUND RETURN**
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Class A 1,000.00 1,094.11 4.12
Class B 1,000.00 1,090.32 8.08
Class C 1,000.00 1,090.04 8.08
Class R 1,000.00 1,093.01 5.32
Class Y 1,000.00 1,095.39 2.82
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HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.78 3.98
Class B 1,000.00 1,017.06 7.79
Class C 1,000.00 1,017.06 7.79
Class R 1,000.00 1,019.65 5.14
Class Y 1,000.00 1,022.00 2.72
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*Expenses are equal to the Fund's annualized expense ratio of 0.79% for
Class A Shares, 1.54% for Class B Shares, 1.54% for Class C Shares, 1.02% for
Class R Shares and 0.54% for Class Y Shares (for the period October 1, 2009
-- March 31, 2010), multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 9.41% for Class A shares, 9.03% for Class B shares, 9.00% for Class
C shares, 9.30% for Class R shares and 9.54% for Class Y shares.
6
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GE U.S. Equity Fund
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets under normal circumstances in common
and preferred stocks and other types of equity securities of issuers that are
tied economically to the U.S.
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TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
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Microsoft Corp. 3.22% Bank of America Corp. 2.31%
- ------------------------------------ --------------------------------------------
PepsiCo, Inc. 2.92% Schlumberger Ltd. 2.06%
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Amgen Inc. 2.73% QUALCOMM Inc. 2.02%
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Cisco Systems, Inc. 2.55% International Business Machines Corp. 1.96%
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The Goldman Sachs Group, Inc 2.33% The Procter & Gamble Co. 1.85%
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MORNINGSTAR PERFORMANCE COMPARISON
Large Growth Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- -----
Number of Funds in peer group 1837 1760 1265 715
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Peer group average annual total return* 11.37% 47.99% 2.38% (3.81)%
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Morningstar Category in peer group: Large Growth
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Large Growth peer group consisting of 1837, 1760, 1265 and 715 underlying
funds, respectively.
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CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE U.S. Equity S&P 500 Index With Load
-------------- ------------- ---------
03/00 10,000.00 10,000.00 9,425.00
09/00 9,821.43 9,618.91 9,256.70
09/01 8,082.25 7,054.65 7,617.52
09/02 6,645.02 5,609.16 6,262.93
09/03 7,980.22 6,980.03 7,521.36
09/04 8,767.51 7,948.37 8,263.38
09/05 9,591.87 8,922.16 9,040.34
09/06 10,659.09 9,885.37 10,046.19
09/07 12,427.45 11,510.75 11,712.87
09/08 10,208.17 8,981.17 9,621.20
09/09 9,835.79 8,360.79 9,270.23
03/10 10,761.47 9,343.22 10,142.68
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE U.S. Equity Fund 9.41% 48.58% 2.94% 0.74% 01/05/93 10,761
With Load 3.12% 40.04% 1.73% 0.14% 10,143
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
GE U.S. Equity S&P 500 Index
-------------- -------------
03/00 10,000.00 10,000.00
09/00 9,787.37 9,618.91
09/01 7,993.66 7,054.65
09/02 6,522.95 5,609.16
09/03 7,778.40 6,980.03
09/04 8,481.86 7,948.37
09/05 9,208.87 8,922.16
09/06 10,194.63 9,885.37
09/07 11,885.94 11,510.75
09/08 9,763.36 8,981.17
09/09 9,407.21 8,360.79
03/10 10,292.55 9,343.22
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE U.S. Equity Fund 9.03% 47.39% 2.17% 0.29% 12/22/93 10,293
With Load 5.03% 43.39% 2.17% 0.29%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
- --------------------------------------------------------------------------------
[GRAPHIC] 7
[GRAPHIC]
GE U.S. Equity Fund
CLASS C SHARES
[CHART]
GE U.S. Equity S&P 500 Index
-------------- -------------
03/00 10,000.00 10,000.00
09/00 9,782.75 9,618.91
09/01 7,992.36 7,054.65
09/02 6,520.84 5,609.16
09/03 7,790.09 6,980.03
09/04 8,495.08 7,948.37
09/05 9,224.30 8,922.16
09/06 10,173.13 9,885.37
09/07 11,771.52 11,510.75
09/08 9,596.97 8,981.17
09/09 9,178.65 8,360.79
09/10 10,005.08 9,343.22
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE U.S. Equity Fund 9.00% 47.47% 2.17% 0.01% 09/30/99 10,005
With Load 8.00% 46.47% 2.17% 0.01%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
GE U.S. Equity S&P 500 Index
-------------- -------------
01/08 10,000.00 10,000.00
03/08 9,703.79 9,633.37
06/08 9,660.35 9,370.68
09/08 8,969.19 8,586.36
12/08 6,836.55 6,702.23
03/09 6,354.02 5,964.19
06/09 7,546.16 6,914.23
09/09 8,616.65 7,993.26
12/09 8,997.08 8,475.94
03/10 9,418.11 8,932.50
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ----- --------- ------------ --------------
GE U.S. Equity Fund 9.30% 48.22% (2.37)% 01/29/08 9,418
S&P 500 Index 11.75% 49.77% (3.42)%* 8,932
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
GE U.S. Equity S&P 500 Index
-------------- -------------
03/00 10,000.00 10,000.00
03/00 9,835.97 9,618.91
03/01 8,114.73 7,054.65
03/02 6,688.08 5,609.16
03/03 8,056.97 6,980.03
03/04 8,873.42 7,948.37
03/05 9,732.36 8,922.16
03/06 10,842.08 9,885.37
03/07 12,671.40 11,510.75
03/08 10,435.14 8,981.17
03/09 10,076.26 8,360.79
03/10 11,037.47 9,343.22
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE U.S. Equity Fund 9.54% 48.87% 3.19% 0.99% 11/29/93 11,037
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
[CHART]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
8
[GRAPHIC]
GE U.S. EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE U.S. EQUITY FUND
Portfolio Composition as a % of Market Value of $324,857 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Information Technology 22.6%
Financials 16.0%
Healthcare 15.5%
Energy 10.8%
Consumer Staples 8.6%
Consumer Discretionary 8.1%
Industrials 8.0%
Materials 4.2%
Telecommunication Services 3.2%
Utilities 1.9%
Short Term 1.1%
Other Investments 0.0%*
* Less than 0.1%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 97.0%+
-----------------------------------------------------------
AEROSPACE & DEFENSE -- 2.9%
CAE, Inc..................... 150,859 $ 1,475,059
Hexcel Corp.................. 46,205 667,200 (a)
Honeywell International Inc.. 60,126 2,721,904
ITT Corp..................... 25,364 1,359,764
Rockwell Collins, Inc........ 23,080 1,444,577
United Technologies Corp..... 22,215 1,635,246
9,303,750
BEVERAGES -- 3.1%
Molson Coors Brewing Co.
(Class B)................... 17,467 734,662
PepsiCo, Inc................. 143,192 9,473,583
10,208,245
BIOTECHNOLOGY -- 4.5%
Amgen Inc.................... 148,137 8,852,667 (a,h)
Gilead Sciences, Inc......... 125,872 5,724,659 (a)
14,577,326
CAPITAL MARKETS -- 5.9%
Ameriprise Financial, Inc.... 36,892 1,673,421
Morgan Stanley............... 28,987 849,029
State Street Corp............ 125,754 5,676,536 (e,h)
The Bank of New York Mellon
Corp........................ 64,561 1,993,644
The Charles Schwab Corp...... 79,583 1,487,406
The Goldman Sachs Group, Inc. 44,351 7,567,611
19,247,647
NUMBER
OF SHARES VALUE
CHEMICALS -- 2.4%
Monsanto Co..................... 44,618 $ 3,186,618
Potash Corp of Saskatchewan
Inc............................ 11,199 1,336,601
Praxair, Inc.................... 35,283 2,928,489
The Mosaic Company.............. 8,159 495,822
7,947,530
COMMERCIAL BANKS -- 0.6%
Regions Financial Corp.......... 119,441 937,612
US Bancorp...................... 36,233 937,710
1,875,322
COMMERCIAL SERVICES & SUPPLIES -- 0.9%
Corrections Corporation of
America........................ 56,789 1,127,830 (a)
Iron Mountain Inc............... 70,566 1,933,508
3,061,338
COMMUNICATIONS EQUIPMENT -- 5.9%
Cisco Systems, Inc.............. 318,422 8,288,525 (a)
QUALCOMM Inc.................... 156,575 6,574,584
Research In Motion Ltd.......... 59,321 4,386,788 (a)
19,249,897
COMPUTERS & PERIPHERALS -- 4.5%
Apple Inc....................... 14,411 3,385,576 (a)
Hewlett-Packard Co.............. 91,562 4,866,520
International Business Machines
Corp........................... 49,550 6,354,787
14,606,883
CONSUMER FINANCE -- 0.4%
Capital One Financial Corp...... 32,153 1,331,456
DIVERSIFIED FINANCIAL SERVICES -- 5.5%
Bank of America Corp............ 420,819 7,511,619
CME Group Inc................... 14,377 4,544,713
JPMorgan Chase & Co............. 127,775 5,717,931
17,774,263
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.9%
AT&T Inc........................ 75,760 1,957,638
Verizon Communications Inc...... 32,939 1,021,768
2,979,406
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 9
GE U.S. EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
ELECTRIC UTILITIES -- 1.4%
Edison International........... 46,116 $ 1,575,784
Entergy Corp................... 9,881 803,819
FPL Group, Inc................. 12,820 619,591
Northeast Utilities............ 50,681 1,400,823
4,400,017
ELECTRICAL EQUIPMENT -- 0.5%
ABB Ltd. ADR................... 79,054 1,726,539
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.4%
Corning Inc.................... 60,278 1,218,218
ENERGY EQUIPMENT & SERVICES -- 4.0%
Halliburton Co................. 50,397 1,518,462
National Oilwell Varco, Inc.... 11,528 467,806
Schlumberger Ltd............... 105,606 6,701,757
Transocean Ltd................. 50,020 4,320,728 (a)
13,008,753
FOOD & STAPLES RETAILING -- 0.1%
Safeway Inc.................... 12,517 311,173
FOOD PRODUCTS -- 1.6%
Archer-Daniels-Midland Co...... 29,647 856,798
Kraft Foods Inc. (Class A)..... 68,049 2,057,802
McCormick & Company Inc........ 39,197 1,503,597
Nestle S.A. ADR................ 12,517 640,870
5,059,067
HEALTHCARE EQUIPMENT & SUPPLIES -- 4.8%
Baxter International Inc....... 64,456 3,751,339
Becton Dickinson & Co.......... 15,811 1,244,800
Covidien PLC................... 101,071 5,081,850
Hologic, Inc................... 56,245 1,042,782 (a)
Medtronic, Inc................. 48,506 2,184,225
ResMed, Inc.................... 34,022 2,165,500 (a)
15,470,496
HEALTHCARE PROVIDERS & SERVICES -- 2.5%
Cardinal Health, Inc........... 36,234 1,305,511
Express Scripts, Inc........... 39,457 4,015,144 (a)
McKesson Corp.................. 7,905 519,517
Omnicare, Inc.................. 29,646 838,685
UnitedHealth Group, Inc........ 46,834 1,530,067 (a)
8,208,924
NUMBER
OF SHARES VALUE
HOTELS RESTAURANTS & LEISURE -- 0.5%
Carnival Corp................... 38,787 $ 1,508,039
HOUSEHOLD DURABLES -- 0.1%
MDC Holdings, Inc............... 7,152 247,531
HOUSEHOLD PRODUCTS -- 2.5%
Clorox Co....................... 22,729 1,457,838
Kimberly-Clark Corp............. 11,529 724,944
The Procter & Gamble Co......... 94,963 6,008,309
8,191,091
INDUSTRIAL CONGLOMERATES -- 0.5%
Siemens AG ADR.................. 4,883 488,154
Textron, Inc.................... 57,354 1,217,625
1,705,779
INSURANCE -- 2.9%
ACE Ltd......................... 32,939 1,722,710
AFLAC Inc....................... 34,356 1,865,187
AON Corp........................ 21,740 928,515
MetLife, Inc.................... 12,187 528,185
PartnerRe Ltd................... 9,276 739,483
Principal Financial Group, Inc.. 37,551 1,096,865
Prudential Financial, Inc....... 43,276 2,618,198
9,499,143
INTERNET SOFTWARE & SERVICES -- 1.6%
Baidu, Inc ADR.................. 4,110 2,453,670 (a)
Google Inc. (Class A)........... 4,707 2,668,916 (a)
5,122,586
IT SERVICES -- 3.2%
Accenture PLC................... 9,902 415,389
Cognizant Technology Solutions
Corp. (Class A)................ 17,259 879,864 (a)
Paychex, Inc.................... 27,966 858,556
The Western Union Co............ 246,866 4,186,847
Visa, Inc. (Class A)............ 43,779 3,985,202
10,325,858
LIFE SCIENCES TOOLS & SERVICES -- 0.9%
Life Technologies Corp.......... 18,645 974,574 (a)
Thermo Fisher Scientific, Inc... 35,135 1,807,344 (a)
2,781,918
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
10
[GRAPHIC]
GE U.S. EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
MACHINERY -- 1.3%
Cummins Inc..................... 13,282 $ 822,820
Deere & Co...................... 25,692 1,527,646
Eaton Corp...................... 18,117 1,372,725
Navistar International Corp..... 12,380 553,757 (a)
4,276,948
MEDIA -- 3.8%
DIRECTV (Class A)............... 53,452 1,807,212 (a)
Liberty Global, Inc. (Series C). 49,016 1,416,072 (a)
Omnicom Group Inc............... 117,485 4,559,593
The Walt Disney Co.............. 36,233 1,264,894
Time Warner Inc................. 107,053 3,347,547
12,395,318
METALS & MINING -- 1.6%
Allegheny Technologies Inc...... 53,620 2,894,944
Barrick Gold Corp............... 19,764 757,752
Freeport-McMoRan Copper & Gold
Inc............................ 18,776 1,568,547
5,221,243
MULTILINE RETAIL -- 1.1%
Kohl's Corp..................... 11,414 625,259 (a)
Target Corp..................... 54,146 2,848,080
3,473,339
MULTI-UTILITIES -- 0.6%
Dominion Resources, Inc......... 46,115 1,895,788
OIL, GAS & CONSUMABLE FUELS -- 6.8%
Apache Corp..................... 21,694 2,201,941
Chesapeake Energy Corp.......... 10,541 249,189
Chevron Corp.................... 51,635 3,915,482
Devon Energy Corp............... 25,682 1,654,691
Exxon Mobil Corp................ 75,165 5,034,552 (h)
Hess Corp....................... 6,588 412,079
Marathon Oil Corp............... 71,485 2,261,785
Occidental Petroleum Corp....... 30,104 2,544,992
Southwestern Energy Co.......... 32,836 1,337,082 (a)
Suncor Energy Inc............... 80,415 2,616,704
22,228,497
PAPER & FOREST PRODUCTS -- 0.2%
Weyerhaeuser Co................. 13,176 596,478
NUMBER
OF SHARES VALUE
PERSONAL PRODUCTS -- 0.4%
Avon Products, Inc............... 39,162 $ 1,326,417
PHARMACEUTICALS -- 2.8%
Abbott Laboratories.............. 18,117 954,404
Bristol-Myers Squibb Co.......... 126,846 3,386,788
Johnson & Johnson................ 39,529 2,577,291
Merck & Company Inc.............. 4,941 184,546
Pfizer Inc....................... 115,288 1,977,189
9,080,218
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.4%
CB Richard Ellis Group, Inc.
(Class A)....................... 74,186 1,175,848 (a)
ROAD & RAIL -- 0.8%
Union Pacific Corp............... 36,187 2,652,507
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.3%
Intel Corp....................... 214,478 4,774,280
KLA-Tencor Corp.................. 5,929 183,325
Microchip Technology Inc......... 18,117 510,175
Nvidia Corp...................... 13,176 228,999 (a)
Taiwan Semiconductor
Manufacturing Company Ltd.
ADR............................. 75,761 794,733
Texas Instruments Inc............ 39,198 959,175
7,450,687
SOFTWARE -- 4.1%
Intuit, Inc...................... 40,675 1,396,779 (a)
Microsoft Corp................... 357,655 10,468,562
Oracle Corp...................... 59,620 1,531,638
13,396,979
SPECIALTY RETAIL -- 2.6%
Bed Bath & Beyond, Inc........... 68,930 3,016,377 (a)
Lowe's Companies, Inc............ 231,150 5,603,076
8,619,453
TEXTILES APPAREL & LUXURY GOODS -- 0.1%
NIKE, Inc. (Class B)............. 2,635 193,673
TOBACCO -- 0.9%
Altria Group, Inc................ 9,882 202,779
Philip Morris International Inc.. 51,102 2,665,480
2,868,259
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 11
GE U.S. EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
WIRELESS TELECOMMUNICATION SERVICES -- 2.2%
American Tower Corp. (Class A).. 40,403 $ 1,721,572 (a)
NII Holdings, Inc............... 133,610 5,566,193 (a)
7,287,765
TOTAL COMMON STOCK
(COST $276,104,341)............ 315,087,612
---------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 1.9%
---------------------------------------------------------------
Financial Select Sector SPDR
Fund........................... 69,831 1,115,201 (p)
Industrial Select Sector SPDR
Fund........................... 161,298 5,037,337 (p)
TOTAL EXCHANGE TRADED FUNDS
(COST $6,739,293).............. 6,152,538
---------------------------------------------------------------
OTHER INVESTMENTS -- 0.0%*
---------------------------------------------------------------
GEI Investment Fund
(COST $88,690)................. 73,613 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $282,932,324)............ 321,313,763
---------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.1%
---------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.0%
GE Money Market Fund
Institutional Class
0.00%.......................... 3,057,753 (d,k)
PRINCIPAL
AMOUNT VALUE
TIME DEPOSIT -- 0.1%
State Street Corp. 0.01%
04/01/10....................... $485,000 $ 485,000 (e)
TOTAL SHORT-TERM INVESTMENTS
(COST $3,542,753).............. 3,542,753
TOTAL INVESTMENTS
(COST $286,475,077)............ 324,856,516
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET -- 0.0%*........... (129,532)
------------
NET ASSETS -- 100.0%............ $324,726,984
============
OTHER INFORMATION
------------------------
The GE U.S. Equity Fund had the following long futures contracts open at
March 31, 2010 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
----------------------------------------------------------
S&P 500 EMini
Index Futures June 2010 3 $174,780 $763
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
12
[GRAPHIC]
[GRAPHIC]
GE Core Value Equity Fund
[PHOTO]
Stephen V. Gelhaus
Vice President
Stephen V. Gelhaus
Vice President
[PHOTO]
Paul C. Reinhardt
Senior Vice President
Paul C. Reinhardt
Senior Vice President
The GE Core 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 184.
Q.HOW DID THE GE CORE VALUE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Core Value Equity Fund
returned 9.33% for Class A shares, 8.78% for Class B shares, 8.84% for Class
C shares, 9.09% for Class R shares and 9.38% for Class Y shares. The S&P 500
Index, the Fund's benchmark, returned 11.75% and the Fund's Morningstar peer
group of 2,066 Large Blend Funds returned an average of 10.85% for the same
period.
Q.WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A.In the six-month period ended March 31 2010, the U.S. and global economies
continued a gradual recovery, which has, for the most part, been reflected by
further gains in U.S. stock prices. Each broad measure of U.S. Equity market
performance achieved double-digit returns during the period, with greater
breadth of performance across the market. In general, small and mid-cap
stocks outperformed large caps, and lower quality companies achieved greater
advances -- a headwind to portfolio managers that prioritize balance sheet
quality, strong capital management, experienced management and market
leadership.
In the second half of the period, as concerns about Greece's crumbling
balance sheet escalated, markets witnessed a rise in risk aversion benefiting
U.S. over non-U.S. stocks. Against this backdrop, the U.S. Dollar advanced
against the Euro. U.S. central bank reassurances that interest rates would
remain low also boosted investor confidence. At the same time, improving
corporate earnings bolstered equities, with revenues and earnings broadly
beating expectations in 4/th/ quarter 2009. Investors cheered as signs of
end-market demand re-emerged, alongside cost-cutting measures. Financials and
cyclical sectors put up the best 4/th/ quarter 2009 earnings results, with
greater earnings revisions among cyclical sectors versus defensive sectors.
Consistent with these results, the cyclical sectors outperformed, while
defensive sectors lagged. Energy was the only cyclical sector to lag as
tightening measures in Asian central banks put a question mark around
emerging market demand.
The unfolding corporate earnings recovery plants the seeds of hope for a
sustainable recovery. However, many questions remain about the durability of
the recovery. Investors may also be worried by the scope of government
intervention in the aftermath of the financial crisis and the ultimate cost
to taxpayers.
Q.WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A.Following last year's outperformance, the Fund struggled to keep pace in an
investing environment favoring small-cap, low quality companies during the
first half of the fiscal period. Although the Fund
[GRAPHIC] 13
[GRAPHIC]
GE Core Value Equity Fund
delivered strong absolute returns, it lagged during the period. The key
contributions came from strong stock selection among materials and utilities
stocks, although our consumer discretionary, financials, technology stock
selections weighed most on returns. The Fund's materials holdings delivered a
27% return versus a 10% return for the benchmark sector, driven by strength
in Allegheny Technologies (+56%) and Potash Corp (+32%). Both companies
benefited from strong fundamentals and improving end market demand, as global
economic activity picked up. Freeport McMoRan (+22%) also rallied along with
the prices of the gold and copper that it mines. Similarly, many of our
cyclically-oriented industrials also contributed nicely to Fund performance,
including agricultural equipment manufacturer, Deere (+40%) and Eaton
(+36%) in the trucking industry.
In terms of negative drivers, underweighting consumer discretionary hurt Fund
performance, as the sector's benchmark performance was 21%. In addition, the
Fund's emphasis on the less cyclical media stocks hurt Fund performance as
investors flocked to industries more leveraged to the improving employment
and consumer spending trends (e.g., retail, autos and leisure).
Global marketing giant Omnicom (+6%) was a relative underperformer, yet is
well-positioned for a rebound in global advertisement spending. Within
financials, Ace (-1%) and State Street (-14%) detracted most from returns. In
general, custody banks like State Street lagged as low trading volumes and
low interest rates dampened the industry profit outlook. However, we believe
a reversal in these cyclical factors could create tailwinds as activity
returns, rates increase and market values rise. Within technology, Western
Union (-10%) weighed most on returns. Despite disappointing margins in the
company's most recent quarterly earnings report, management has articulated a
credible strategy for growing Western Union's market share in a rebounding
global remittance market. Not owning Apple (+27%) also detracted from Fund
performance, although the Fund's relative value discipline made ownership in
this growth company unlikely during the period. Other holdings which dragged
on returns included Boston Scientific (-33%), Molson Coors (-13%) and Amgen
(-1%).
Q.WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND DURING THE PERIOD?
A.The Fund continued to emphasize financially strong companies that the
investment team believes can gain market share in a slow-growth economic
environment. The biggest change in positioning included initiating an
overweight in health care stocks, taking advantage of attractive valuations
in the sector, and with increasing confidence as the clouds of health care
reform parted. We also became overweight in utilities. We reduced our
financials exposure meaningfully, with an approximately market-weighted
position at the end of the period. As smaller-capitalized and more cyclical
stocks outperformed, the valuation of large cap, multinational companies
became even more compelling. This development presented us the opportunity to
add to consumer staple stocks. While these companies have minimal cyclical
leverage to a V-shaped recovery, they have above-average long-term growth
rates, business development opportunities, and strong management teams.
14
[GRAPHIC]
[GRAPHIC]
GE Core 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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,093.33 7.10
Class B 1,000.00 1,087.76 11.03
Class C 1,000.00 1,088.35 10.99
Class R 1,000.00 1,090.89 8.29
Class Y 1,000.00 1,093.82 5.79
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,017.99 6.84
Class B 1,000.00 1,014.26 10.65
Class C 1,000.00 1,014.31 10.60
Class R 1,000.00 1,016.86 8.00
Class Y 1,000.00 1,019.21 5.59
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 1.36% for Class A
Shares, 2.12% for Class B Shares, 2.11% for Class C Shares, 1.58% for Class R
Shares and 1.11% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 9.33% for Class A shares, 8.78% for Class B shares, 8.84% for Class
C shares, 9.09% for Class R shares and 9.38% for Class Y shares.
[GRAPHIC] 15
[GRAPHIC]
GE Core Value Equity Fund
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 under normal
circumstances in common and preferred stocks and other types of equity
securities. The Fund invests primarily in U.S. companies that the portfolio
manager believes are undervalued by the market but have solid growth prospects.
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
--------------------------------------------------------------------------
International Business Machines Corp. 3.48% PepsiCo, Inc. 2.32%
--------------------------------------------- ---------------------------
The Procter & Gamble Co. 2.87% Hewlett-Packard Co. 2.11%
--------------------------------------------- ---------------------------
Microsoft Corp. 2.57% Omnicom Group Inc. 2.00%
--------------------------------------------- ---------------------------
Time Warner Inc. 2.55% JPMorgan Chase & Co. 1.99%
--------------------------------------------- ---------------------------
Bank of America Corp. 2.46% Exxon Mobil Corp. 1.97%
--------------------------------------------- ---------------------------
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Large Blend Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- -----
Number of Funds in peer group 2066 1999 1387 724
--------------------------------------------------------------------
Peer group average annual total return* 10.85% 49.52% 1.76% (1.06)%
--------------------------------------------------------------------
Morningstar Category in peer group: Large Blend
* Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Large Blend peer group consisting of 2066, 1999, 1387 and 724 underlying
funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE Value Equity S&P 500 Index With Load
--------------- ------------- ---------
03/00 10,000.00 10,000.00 9,425.00
09/00 9,845.68 9,618.91 9,279.55
09/01 8,274.99 7,054.65 7,799.18
09/02 6,848.15 5,609.16 6,454.38
09/03 8,182.93 6,980.03 7,712.41
09/04 9,182.74 7,948.37 8,654.73
09/05 10,168.46 8,922.16 9,583.77
09/06 11,345.60 9,885.37 10,693.23
09/07 13,387.35 11,510.75 12,617.58
09/08 11,264.74 8,981.17 10,617.02
09/09 10,576.44 8,360.79 9,968.30
03/10 11,563.49 9,343.22 10,898.59
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Core Value Equity Fund 9.33% 46.08% 3.25% 1.46% 09/08/93 11,563
With Load 3.05% 37.68% 2.04% 0.86% 10,899
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
GE Core Value Equity S&P 500 Index
-------------------- -------------
03/00 10,000.00 10,000.00
09/00 9,802.22 9,618.91
09/01 8,180.64 7,054.65
09/02 6,717.59 5,609.16
09/03 7,954.38 6,980.03
09/04 8,869.26 7,948.37
09/05 9,745.16 8,922.16
09/06 10,784.27 9,885.37
09/07 12,632.30 11,510.75
09/08 10,595.77 8,981.17
09/09 9,948.34 8,360.79
03/10 10,876.78 9,343.22
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Core Value Equity Fund 8.78% 45.10% 2.48% 0.84% 09/08/93 10,877
With Load 4.78% 41.10% 2.48% 0.84%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
16
[GRAPHIC]
[GRAPHIC]
GE Core Value Equity Fund
- --------------------------------------------------------------------------------
CLASS C SHARES
[CHART]
GE Value Equity S&P 500 Index
--------------- -------------
03/00 10,000.00 10,000.00
09/00 9,802.37 9,618.91
09/01 8,165.29 7,054.65
09/02 6,703.48 5,609.16
09/03 7,955.89 6,980.03
09/04 8,864.96 7,948.37
09/05 9,738.50 8,922.16
09/06 10,782.17 9,885.37
09/07 12,634.74 11,510.75
09/08 10,555.89 8,981.17
09/09 9,842.41 8,360.79
09/10 10,711.99 9,343.22
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Core Value Equity Fund 8.84% 44.99% 2.48% 0.69% 09/30/99 10,712
With Load 7.84% 43.99% 2.48% 0.69%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
GE Value Equity S&P 500 Index
--------------- -------------
01/08 10,000.00 10,000.00
03/08 9,691.68 9,633.37
06/08 9,722.51 9,370.68
09/08 9,095.58 8,586.36
' 12/08 7,133.53 6,702.23
03/09 6,383.19 5,964.19
06/09 7,440.01 6,914.23
09/09 8,517.97 7,993.26
12/09 8,930.71 8,475.94
03/10 9,292.19 8,932.50
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ----- --------- ------------ --------------
GE Core Value Equity Fund 9.09% 45.57% (3.00)% 01/29/08 9,292
S&P 500 Index 11.75% 49.77% (3.42)%* 8,932
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
GE Value Equity S&P 500 Index
--------------- -------------
03/00 10,000.00 10,000.00
09/00 9,845.82 9,618.91
09/01 8,300.60 7,054.65
09/02 6,887.01 5,609.16
09/03 8,239.95 6,980.03
09/04 9,252.43 7,948.37
09/05 10,261.61 8,922.16
09/06 11,519.50 9,885.37
09/07 13,736.82 11,510.75
09/08 11,599.42 8,981.17
09/09 10,923.72 8,360.79
03/10 11,948.57 9,343.22
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Core Value Equity Fund 9.38% 46.39% 3.77% 1.80% 01/05/98 11,949
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
[GRAPHIC]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
[GRAPHIC] 17
GE CORE VALUE EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE CORE VALUE EQUITY FUND
Portfolio Composition as a % of Market Value of $41,951 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Financials 16.5%
Information Technology 16.1%
Healthcare 13.8%
Consumer Staples 13.1%
Energy 11.4%
Industrials 9.6%
Consumer Discretionary 7.4%
Materials 4.2%
Utilities 3.9%
Telecommunication Services 2.9%
Short Term 1.1%
Other Investments 0.0%*
* Less than 0.1%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 97.5%+
----------------------------------------------------------
AEROSPACE & DEFENSE -- 3.1%
Honeywell International Inc.. 12,630 $ 571,760
ITT Corp..................... 8,104 434,455
Rockwell Collins, Inc........ 4,420 276,648
1,282,863
BEVERAGES -- 2.9%
Molson Coors Brewing Co.
(Class B)................... 5,581 234,737
PepsiCo, Inc................. 14,735 974,868
1,209,605
BIOTECHNOLOGY -- 1.7%
Amgen Inc.................... 11,577 691,841 (a,h)
CAPITAL MARKETS -- 5.5%
Ameriprise Financial, Inc.... 11,788 534,704
Morgan Stanley............... 9,262 271,284
State Street Corp............ 5,788 261,270 (e)
The Bank of New York Mellon
Corp........................ 20,629 637,023
The Charles Schwab Corp...... 7,578 141,633
The Goldman Sachs Group, Inc. 2,631 448,928
2,294,842
CHEMICALS -- 1.0%
Potash Corp of Saskatchewan
Inc......................... 3,578 427,034
NUMBER
OF SHARES VALUE
COMMERCIAL BANKS -- 0.9%
Regions Financial Corp........... 11,367 $ 89,231
US Bancorp....................... 11,577 299,613
388,844
COMMUNICATIONS EQUIPMENT -- 0.9%
Cisco Systems, Inc............... 13,893 361,635 (a)
COMPUTERS & PERIPHERALS -- 5.6%
Hewlett-Packard Co............... 16,629 883,831
International Business Machines
Corp............................ 11,367 1,457,818
2,341,649
DIVERSIFIED FINANCIAL SERVICES -- 4.5%
Bank of America Corp............. 57,773 1,031,248
JPMorgan Chase & Co.............. 18,629 833,648
1,864,896
DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.3%
AT&T Inc......................... 24,207 625,509
Verizon Communications Inc....... 10,525 326,485 (h)
951,994
ELECTRIC UTILITIES -- 2.4%
Edison International............. 14,735 503,495
Entergy Corp..................... 3,157 256,822
Northeast Utilities.............. 8,946 247,267
1,007,584
ELECTRICAL EQUIPMENT -- 1.3%
ABB Ltd. ADR..................... 25,260 551,678
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.9%
Corning Inc...................... 19,261 389,265
ENERGY EQUIPMENT & SERVICES -- 2.4%
Halliburton Co................... 16,103 485,183
National Oilwell Varco, Inc...... 3,683 149,456
Schlumberger Ltd................. 5,789 367,370
1,002,009
FOOD & STAPLES RETAILING -- 0.2%
Safeway Inc...................... 3,999 99,415
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
18
[GRAPHIC]
GE CORE VALUE EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
FOOD PRODUCTS -- 3.4%
Archer-Daniels-Midland Co....... 9,472 $ 273,741
Kraft Foods Inc. (Class A)...... 15,577 471,048
McCormick & Company Inc......... 12,524 480,421
Nestle S.A. ADR................. 3,999 204,749
1,429,959
HEALTHCARE EQUIPMENT & SUPPLIES -- 3.1%
Baxter International Inc........ 7,894 459,431
Becton Dickinson & Co........... 5,052 397,744
Covidien PLC.................... 8,663 435,576
1,292,751
HEALTHCARE PROVIDERS & SERVICES -- 2.0%
Cardinal Health, Inc............ 11,577 417,119
McKesson Corp................... 2,526 166,009
Omnicare, Inc................... 9,472 267,963
851,091
HOUSEHOLD PRODUCTS -- 4.6%
Clorox Co....................... 7,262 465,785
Kimberly-Clark Corp............. 3,684 231,650
The Procter & Gamble Co......... 19,050 1,205,293
1,902,728
INDUSTRIAL CONGLOMERATES -- 0.4%
Siemens AG ADR.................. 1,633 163,251
INSURANCE -- 5.3%
ACE Ltd......................... 10,525 550,457
AON Corp........................ 6,946 296,664
MetLife, Inc.................... 3,894 168,766
PartnerRe Ltd................... 2,876 229,275
Principal Financial Group, Inc.. 11,998 350,462
Prudential Financial, Inc....... 10,525 636,762
2,232,386
IT SERVICES -- 1.6%
Accenture PLC................... 3,245 136,128
The Western Union Co............ 31,575 535,512
671,640
LIFE SCIENCES TOOLS & SERVICES -- 1.0%
Life Technologies Corp.......... 3,578 187,022 (a)
Thermo Fisher Scientific, Inc... 4,526 232,817 (a)
419,839
NUMBER
OF SHARES VALUE
MACHINERY -- 2.2%
Deere & Co..................... 8,209 $ 488,107
Eaton Corp..................... 5,789 438,633
926,740
MEDIA -- 5.5%
Omnicom Group Inc.............. 21,576 837,365
The Walt Disney Co............. 11,577 404,153
Time Warner Inc................ 34,206 1,069,622
2,311,140
METALS & MINING -- 2.8%
Allegheny Technologies Inc..... 7,788 420,474
Barrick Gold Corp.............. 6,315 242,117
Freeport-McMoRan Copper & Gold
Inc........................... 5,999 501,156
1,163,747
MULTILINE RETAIL -- 0.3%
Target Corp.................... 2,315 121,769
MULTI-UTILITIES -- 1.5%
Dominion Resources, Inc........ 14,735 605,756
OIL, GAS & CONSUMABLE FUELS -- 9.0%
Apache Corp.................... 4,210 427,315
Chesapeake Energy Corp......... 3,368 79,620
Chevron Corp................... 10,841 822,073
Devon Energy Corp.............. 6,315 406,875
Exxon Mobil Corp............... 12,314 824,792
Hess Corp...................... 2,105 131,668
Marathon Oil Corp.............. 18,945 599,420
Occidental Petroleum Corp...... 4,947 418,219
Suncor Energy Inc.............. 1,473 47,931
3,757,913
PAPER & FOREST PRODUCTS -- 0.5%
Weyerhaeuser Co................ 4,210 190,587
PERSONAL PRODUCTS -- 0.5%
Avon Products, Inc............. 5,893 199,596
PHARMACEUTICALS -- 6.1%
Abbott Laboratories............ 5,789 304,965
Bristol-Myers Squibb Co........ 27,049 722,208
Johnson & Johnson.............. 12,630 823,476
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 19
GE CORE VALUE EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
Merck & Company Inc.............. 1,579 $ 58,976
Pfizer Inc....................... 36,837 631,755
2,541,380
ROAD & RAIL -- 1.2%
Union Pacific Corp............... 6,736 493,749
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 3.4%
Intel Corp....................... 26,312 585,705
Kla-Tencor Corp.................. 1,894 58,562
Microchip Technology Inc......... 5,789 163,018
Nvidia Corp...................... 4,210 73,170 (a)
Taiwan Semiconductor
Manufacturing Company Ltd.
ADR............................. 24,207 253,931
Texas Instruments Inc............ 12,525 306,487
1,440,873
SOFTWARE -- 3.8%
Microsoft Corp................... 36,837 1,078,219
Oracle Corp...................... 19,050 489,394
1,567,613
SPECIALTY RETAIL -- 1.5%
Bed Bath & Beyond, Inc........... 5,789 253,327 (a)
Lowe's Companies, Inc............ 15,156 367,381
620,708
TEXTILES APPAREL & LUXURY GOODS -- 0.1%
NIKE, Inc. (Class B)............. 842 61,887
TOBACCO -- 1.5%
Altria Group, Inc................ 3,157 64,782
Philip Morris International Inc.. 11,051 576,420
641,202
WIRELESS TELECOMMUNICATION SERVICES -- 0.6%
American Tower Corp. (Class A)... 5,789 246,669 (a)
TOTAL COMMON STOCK
(COST $35,935,648).............. 40,720,128
NUMBER
OF SHARES VALUE
EXCHANGE TRADED FUNDS -- 1.9%
--------------------------------------------------------------
Financial Select Sector SPDR
Fund........................... 9,710 $ 155,069 (p)
Industrial Select Sector SPDR
Fund........................... 19,806 618,541 (h,p)
TOTAL EXCHANGE TRADED FUNDS
(COST $929,739)................ 773,610
--------------------------------------------------------------
OTHER INVESTMENTS -- 0.0%*
--------------------------------------------------------------
GEI Investment Fund
(COST $14,088)................. 11,693 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $36,879,475)............. 41,505,431
--------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.0%
--------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $445,115)................ 445,115 (d,k)
TOTAL INVESTMENTS
(COST $37,324,590)............. 41,950,546
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET -- (0.4)%.......... (181,595)
-----------
NET ASSETS -- 100%.............. $41,768,951
===========
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
20
[GRAPHIC]
[GRAPHIC]
GE Premier Growth Equity Fund
[GRAPHIC]
David B. Carlson
Chief Invesment Officer - U.S. Equities
David B. Carlson
Chief Investment Officer -- U.S. Equities
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 184.
Q.HOW DID THE GE PREMIER GROWTH EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
AND MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Premier Growth Equity
Fund returned 10.69% for Class A shares, 10.26% for Class B shares, 10.24%
for Class C shares, 10.53% for Class R shares and 10.81% for Class Y shares.
The Fund's broad based benchmarks, the S&P 500 and the Russell 1000 Growth
Index, returned 11.75% and 12.95% respectively, and the Fund's Morningstar
peer group of 1,837 Large Growth Funds returned an average of 11.37% for the
same period.
Q.WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A.In the six-month period ended March 31 2010, the U.S. and global economies
continued a gradual recovery, which has, for the most part, been reflected by
further gains in U.S. stock prices. Each broad measure of U.S. Equity market
performance achieved double-digit returns during the period, with greater
breadth of performance across the market. In general, small and mid-cap
stocks outperformed large caps, and lower quality companies achieved greater
advances -- a headwind to portfolio managers that prioritize balance sheet
quality, strong capital management, experienced management and market
leadership.
In the second half of the period, as concerns about Greece's crumbling
balance sheet escalated, markets witnessed a rise in risk aversion benefiting
U.S. over non-U.S. stocks. Against this backdrop, the U.S. Dollar advanced
against the Euro. U.S. central bank reassurances that interest rates would
remain low also boosted investor confidence. At the same time, improving
corporate earnings bolstered equities, with revenues and earnings broadly
beating expectations in 4/th/ quarter 2009. Investors cheered as signs of
end-market demand re-emerged, alongside cost-cutting measures. Financials and
cyclical sectors put up the best 4/th/ quarter 2009 earnings results, with
greater earnings revisions among cyclical sectors versus defensive sectors.
Consistent with these results, the cyclical sectors outperformed, while
defensive sectors lagged. Energy was the only cyclical sector to lag as
tightening measures in Asian central banks put a question mark around
emerging market demand.
The unfolding corporate earnings recovery plants the seeds of hope for a
sustainable recovery. However, many questions remain about the durability of
the recovery. Investors may also be worried by the scope of government
intervention in the aftermath of the financial crisis and the ultimate cost
to taxpayers.
Q.WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A.The cyclically-leveraged consumer discretionary stocks were the top
performers, with particular strength among the Fund's media and specialty
retail holdings. Liberty Global (+29%) was the top-contributing stock,
rallying sharply on the sale of its stake to Japanese broadband company,
Jupiter Telecommunications. The $4 billion cash sale represented a
substantial premium, and allows the company to potentially redirect its
capital to more strategic opportunities in core markets, while focusing on
stock buyback initiatives. Other strong stocks within consumer discretionary
included DirecTV (+16%) and Bed Bath & Beyond (+17%), and PepsiCo (+14%) put
in a strong showing in the consumer products space. A final global,
consumer-oriented stock that rallied was Baidu (+53%), the leader in Chinese
Internet search -- benefitting during the period from its rival's, Google,
[GRAPHIC] 21
[GRAPHIC]
GE Premier Growth Equity Fund
friction with the Chinese government over censorship.
The main detractors from Fund performance were financials stocks. In a
volatile six-month period for financials, the Fund was light on outperforming
asset managers (levered to rising markets), commercial banks and REITs. In
general, custody banks like State Street (-14%) lagged as low trading volumes
and low interest rates dampened the industry profit outlook. However, we
believed these temporary cyclical factors could reverse and create tailwinds
as activity returns, rates increase and market values rise. Goldman Sachs
(-7%) -- one of the top-performing holdings in calendar 2009 -- also took a
breather as investor appetite increased for financials further out on the
risk spectrum. Notwithstanding strong contributions from Visa (+32%) and
Baidu (+53%), the Fund's technology selections pressured returns, with the
greatest drags coming from Western Union (-10%) and Qualcomm (-6%). While
both technology companies provided disappointing outlooks over the period, by
the end of March 2010, Western Union and Qualcomm had rebounded amid
improving fundamentals. In materials, expectations got ahead of themselves
for Monsanto (-7%), pressuring the stock after a breathtaking +24% rally in
the first half of the period. While expectations reset in the last three
months, the company also encountered a tough seed-pricing environment
following 2009's ideal planting season. Additionally, it seemed steady growth
stocks like Monsanto became sources of cash to fund more cyclical positions,
as the economic recovery took hold. Despite these challenges, we held
Monsanto as long-term fundamentals remained intact in our view. One final
weak spot was biotech giant, Amgen (-1%).
Q.WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND DURING THE PERIOD?
A.We consistently employed our bottom-up process of seeking high quality stocks
that we believe can generate double-digit earnings growth. We ended the
period with 36 stocks in the portfolio, consistent with our history. The
portfolio's largest sector weighting remained technology at approximately 32%
of the portfolio -- as we continued to like the financial condition, global
business models and valuations in the tech sector. There were few changes in
the portfolio during the period, although we initiated a switch within
technology, beginning a position in Apple and eliminating Molex. During the
six-month period, DirecTV completed its merger transaction with Liberty Media
Entertainment, and we continued to hold the shares of DirecTV in lieu of our
position in Liberty Media at March 31, 2010. We continued to trade around
market volatility to add to core holdings when we believed they indicated
value (e.g., Goldman Sachs, CME, RIMM, Microsoft), and trimmed some positions
as they outperformed (Carnival, Lincare and Liberty Global). On the margin,
we modestly decreased our exposure within financials and consumer
discretionary, and added to our holdings within healthcare (e.g., Medtronic
and Gilead).
22
[GRAPHIC]
[GRAPHIC]
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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,106.89 5.52
Class B 1,000.00 1,102.56 9.49
Class C 1,000.00 1,102.41 9.43
Class R 1,000.00 1,105.30 6.77
Class Y 1,000.00 1,108.10 4.20
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,019.50 5.29
Class B 1,000.00 1,015.78 9.10
Class C 1,000.00 1,015.83 9.05
Class R 1,000.00 1,018.33 6.49
Class Y 1,000.00 1,020.73 4.03
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 1.05% for Class A
Shares, 1.81% for Class B Shares, 1.80% for Class C Shares, 1.29% for Class R
Shares and 0.80% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 10.69% for Class A shares, 10.26% for Class B shares, 10.24% for
Class C shares, 10.53% for Class R shares and 10.81% for Class Y shares.
[GRAPHIC] 23
[GRAPHIC]
GE Premier Growth Equity Fund
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 under normal circumstances in common and preferred stocks and other
types of equity securities. The Fund invests primarily in a limited number of
large- and medium-sized companies that the portfolio manager believes have
above-average growth histories and/or growth potential.
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
-----------------------------------------------------------------------
Liberty Global, Inc. (Series C) 4.03% Bed Bath & Beyond, Inc. 3.63%
--------------------------------------- ------------------------------
PepsiCo, Inc. 3.98% The Western Union Co. 3.63%
--------------------------------------- ------------------------------
Amgen Inc. 3.95% DIRECTV (Class A) 3.37%
--------------------------------------- ------------------------------
QUALCOMM Inc. 3.94% Schlumberger Ltd. 3.36%
--------------------------------------- ------------------------------
CME Group Inc. 3.65% Cisco Systems, Inc. 3.35%
--------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Large Growth Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- -----
Number of Funds in peer group 1837 1760 1265 715
--------------------------------------------------------------------
Peer group average annual total return* 11.37% 47.99% 2.38% (3.81)%
--------------------------------------------------------------------
Morningstar Category in peer group: Large Growth
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Large Growth peer group consisting of 1837, 1760, 1265 and 715 underlying
funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE Premier S&P 500 Russell 1000
Growth Equity Index Growth With Load
------------- --------- ------------ ---------
03/00 10,000.00 10,000.00 10,000.00 9,425.00
09/00 9,460.36 9,618.91 9,203.89 8,916.39
09/01 7,195.38 7,054.65 5,006.88 6,781.65
09/02 6,046.12 5,609.16 3,880.78 5,698.47
09/03 7,601.78 6,980.03 4,887.51 7,164.67
09/04 8,075.66 7,948.37 5,254.32 7,611.31
09/05 8,827.60 8,922.16 5,863.03 8,320.01
09/06 9,241.73 9,885.37 6,218.02 8,710.33
09/07 10,557.95 11,510.75 7,422.49 9,950.87
09/08 8,982.63 8,981.17 5,872.41 8,466.13
09/09 8,661.47 8,360.79 5,763.37 8,163.43
03/10 9,587.27 9,343.22 6,509.87 9,036.00
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Premier Growth Equity Fund 10.69% 50.16% 2.52% (0.42)% 12/31/96 9,587
With Load 4.32% 41.53% 1.31% (1.01)% 9,036
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Russell 1000 Growth Index 12.95% 49.74% 3.42% (4.20)% 6,510
- --------------------------------------------------------------------------------
24
[GRAPHIC]
[GRAPHIC]
GE Premier Growth Equity Fund
CLASS B SHARES
[CHART]
GE Premier Russell 1000
Growth Equity S&P 500 Index Growth
------------- ------------- ------------
03/00 10,000.00 10,000.00 10,000.00
09/00 9,426.10 9,618.91 9,203.89
09/01 7,118.17 7,054.65 5,006.88
09/02 5,935.87 5,609.16 3,880.78
09/03 7,408.10 6,980.03 4,887.51
09/04 7,810.53 7,948.37 5,254.32
09/05 8,474.55 8,922.16 5,863.03
09/06 8,840.27 9,885.37 6,218.02
09/07 10,099.32 11,510.75 7,422.49
09/08 8,592.43 8,981.17 5,872.41
09/09 8,285.22 8,360.79 5,763.37
03/10 9,170.81 9,343.22 6,509.87
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Premier Growth Equity Fund 10.26% 49.09% 1.75% (0.86)% 12/31/96 9,171
With Load 6.26% 45.09% 1.75% (0.86)%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Russell 1000 Growth Index 12.95% 49.74% 3.42% (4.20)% 6,510
- --------------------------------------------------------------------------------
CLASS C SHARES
[CHART]
GE Premier Russell 1000
Growth Equity S&P 500 Index Growth
------------- ------------- ------------
03/00 10,000.00 10,000.00 10,000.00
09/00 9,426.10 9,618.91 9,203.89
09/01 7,118.17 7,054.65 5,006.88
09/02 5,932.52 5,609.16 3,880.78
09/03 7,411.45 6,980.03 4,887.51
09/04 7,813.89 7,948.37 5,254.32
09/05 8,477.90 8,922.16 5,863.03
09/06 8,807.02 9,885.37 6,218.02
09/07 9,987.08 11,510.75 7,422.49
09/08 8,429.83 8,981.17 5,872.41
09/09 8,073.22 8,360.79 5,763.37
03/10 8,899.97 9,343.22 6,509.87
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Premier Growth Equity Fund 10.24% 49.04% 1.74% (1.16)% 09/30/99 8,900
With Load 9.24% 48.04% 1.74% (1.16)%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Russell 1000 Growth Index 12.95% 49.74% 3.42% (4.20)% 6,510
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
GE Premier
Growth Equity S&P 500 Index Russell 1000 Growth
------------- ------------- -------------------
01/29/08 10,000.00 10,000.00 10,000.00
03/08 9,852.81 9,633.37 9,741.63
06/08 9,866.19 9,370.68 9,862.93
09/08 9,277.43 8,586.36 8,646.92
12/08 6,743.89 6,702.23 6,676.55
03/09 6,583.67 5,964.19 6,401.43
06/09 7,909.14 6,914.23 7,446.15
09/09 8,928.73 7,993.26 8,486.37
12/09 9,313.87 8,475.94 9,160.29
03/10 9,868.91 8,932.50 9,585.55
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ----- --------- ------------ --------------
GE Premier Growth Equity
Fund 10.53% 49.90% (0.13)% 01/29/08 9,869
S&P 500 Index 11.75% 49.77% (3.42)%* 8,932
Russell 1000 Growth Index 12.95% 49.74% (0.74)%* 9,586
- --------------------------------------------------------------------------------
CLASS Y SHARES
[GRAPHIC]
GE Premier
Growth Equity S&P 500 Index Russell 1000 Growth
------------- ------------- -------------------
03/00 10,000.00 10,000.00 10,000.00
09/00 9,472.11 9,618.91 9,203.89
09/01 7,222.46 7,054.65 5,006.88
09/02 6,082.96 5,609.16 3,880.78
09/03 7,668.68 6,980.03 4,887.51
09/04 8,165.85 7,948.37 5,254.32
09/05 8,951.39 8,922.16 5,863.03
09/06 9,393.58 9,885.37 6,218.02
09/07 10,757.17 11,510.75 7,422.49
09/08 9,174.32 8,981.17 5,872.41
09/09 8,871.38 8,360.79 5,763.37
03/10 9,830.41 9,343.22 6,509.87
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Premier Growth Equity Fund 10.81% 50.58% 2.77% (0.17)% 12/31/96 9,830
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Russell 1000 Growth Index 12.95% 49.74% 3.42% (4.20)% 6,510
[GRAPHIC]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
[GRAPHIC] 25
GE PREMIER GROWTH EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE PREMIER GROWTH EQUITY FUND
Portfolio Composition as a % of Market Value of $208,022 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Information Technology 34.6%
Consumer Discretionary 16.7%
Healthcare 15.0%
Financials 13.9%
Energy 6.0%
Consumer Staples 4.0%
Telecommunication Services 2.9%
Industrials 2.7%
Materials 2.4%
Short Term 1.8%
Other Investments 0.0%*
* Less than 0.01%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 98.4%+
-----------------------------------------------------------
BEVERAGES -- 4.0%
PepsiCo, Inc................. 125,045 $ 8,272,977
BIOTECHNOLOGY -- 5.8%
Amgen Inc.................... 137,549 8,219,928 (a,h)
Gilead Sciences, Inc......... 85,031 3,867,210 (a)
12,087,138
CAPITAL MARKETS -- 6.5%
State Street Corp............ 150,054 6,773,438 (e)
The Goldman Sachs Group, Inc. 39,514 6,742,274
13,515,712
CHEMICALS -- 2.5%
Monsanto Co.................. 73,026 5,215,517
COMMERCIAL SERVICES & SUPPLIES -- 2.6%
Iron Mountain Inc............ 200,072 5,481,973
COMMUNICATIONS EQUIPMENT -- 9.7%
Cisco Systems, Inc........... 267,596 6,965,524 (a,h)
QUALCOMM Inc................. 195,070 8,190,989
Research In Motion Ltd....... 67,524 4,993,400 (a)
20,149,913
NUMBER
OF SHARES VALUE
COMPUTERS & PERIPHERALS -- 1.5%
Apple Inc................ 13,492 $ 3,169,676 (a)
DIVERSIFIED FINANCIAL SERVICES -- 3.7%
CME Group Inc............ 24,009 7,589,485
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 2.4%
Corning Inc.............. 242,587 4,902,683
ENERGY EQUIPMENT & SERVICES -- 6.0%
Schlumberger Ltd......... 110,039 6,983,075
Transocean Ltd........... 62,522 5,400,650 (a)
12,383,725
HEALTHCARE EQUIPMENT & SUPPLIES -- 2.9%
Medtronic, Inc........... 132,548 5,968,636
HEALTHCARE PROVIDERS & SERVICES -- 6.3%
Express Scripts, Inc..... 50,018 5,089,832 (a)
Lincare Holdings Inc..... 107,538 4,826,305 (a)
VCA Antech, Inc.......... 115,041 3,224,599 (a)
13,140,736
HOTELS RESTAURANTS & LEISURE -- 1.6%
Carnival Corp............ 85,030 3,305,966
INSURANCE -- 2.0%
AFLAC Inc................ 75,026 4,073,162 (h)
INTERNET SOFTWARE & SERVICES -- 4.0%
Baidu, Inc ADR........... 5,484 3,273,948 (a)
eBay Inc................. 190,068 5,122,333 (a,h)
8,396,281
IT SERVICES -- 8.9%
Paychex, Inc............. 132,548 4,069,224
The Western Union Co..... 445,159 7,549,897
Visa, Inc. (Class A)..... 76,027 6,920,738
18,539,859
MACHINERY -- 2.7%
Dover Corp............... 120,043 5,612,010
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
26
[GRAPHIC]
GE PREMIER GROWTH EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
MEDIA -- 8.7%
Comcast Corp. (Class A)......... 147,553 $ 2,651,527
DIRECTV (Class A)............... 207,574 7,018,077 (a)
Liberty Global, Inc. (Series C). 290,104 8,381,105 (a)
18,050,709
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 1.8%
CB Richard Ellis Group, Inc.
(Class A)...................... 237,585 3,765,722 (a)
SOFTWARE -- 5.5%
Intuit, Inc..................... 150,054 5,152,854 (a)
Microsoft Corp.................. 212,576 6,222,099
11,374,953
SPECIALTY RETAIL -- 6.4%
Bed Bath & Beyond, Inc.......... 172,562 7,551,313 (a,h)
Lowe's Companies, Inc........... 240,086 5,819,685
13,370,998
WIRELESS TELECOMMUNICATION SERVICES -- 2.9%
American Tower Corp. (Class A).. 140,051 5,967,573 (a)
TOTAL COMMON STOCK
(COST $184,510,115)............ 204,335,404
---------------------------------------------------------------
OTHER INVESTMENTS -- 0.0%*
---------------------------------------------------------------
GEI Investment Fund
(COST $15,011)................. 12,459 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $184,525,126)............ 204,347,863
---------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.8%
---------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $3,674,412).............. 3,674,412 (d,k)
TOTAL INVESTMENTS
(COST $188,199,538)............ 208,022,275
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET -- (0.2)%.......... (360,526)
------------
NET ASSETS -- 100.0%............ $207,661,749
============
OTHER INFORMATION
--------------------------
The GE Premier Growth Equity Fund had the following short futures contracts
open at March 31, 2010 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
--------------------------------------------------------------
S&P 500 Emini
Index Futures June 2010 11 $(640,860) $(1,845)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 27
[GRAPHIC]
GE Small-Cap Equity Fund
[PHOTO]
Judith A. Studer
Chief Market Strategist
Judith A. Studer
Chief Market Strategist
The GE Small-Cap Equity Fund is managed by Judith A. Studer, who is vested with
oversight authority over the Fund's sub-advisers that provide day-to-day
management of the assets of the Fund allocated to them. Ms. Studer has full
discretion in determining the assets that are allocated to each sub-adviser.
The current sub-advisers of the Fund are as follows: Palisade Capital
Management L.L.C.; Champlain Investment Partners, LLC; GlobeFlex Capital, LP;
and SouthernSun Asset Management, Inc. See portfolio managers' biographical
information beginning on page 184.
Q.HOW DID THE GE SMALL-CAP EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Small-Cap Equity Fund
returned 12.01% for Class A shares, 11.64% for Class B shares, 11.56% for
Class C shares, 11.82% for Class R shares and 12.13% for Class Y shares. The
Russell 2000 Index, the Fund's benchmark, returned 13.06% and the Fund's
Morningstar peer group of 648 Small Blend Funds returned an average of 12.97%
for the same period.
Q.WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A.U.S. equities extended their rally over the last six-month period, fighting
back from a sell-off in January and early February fueled by concerns over
Greece's sovereign debt, rising political/regulatory risk for financials and
policy tightening in Asia. Small cap stocks showed continued strength versus
large cap stocks, with the Russell 2000 Index outperforming both the S&P 500
and Russell 1000 indices. The small-cap equity market's recent advance has
been widespread, with every sector gaining ground during the period.
Over the last six-month period ending March 31, 2010, the Russell 2000 Value
outperformed the Russell 2000 Growth, returning 14.0% and 12.1% respectively.
Many companies that benefited from the abatement of the financial crisis
reside in the Russell 2000 Value, contributing to the outperformance.
Q.WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A.The Fund underperformed the Russell 2000 Index by 1.05% over the last
six-month period. The Fund returned 12.01% compared to the benchmark return
of 13.06%. The underperformance, spread across four sectors, was most
pronounced in the financial sector where the Fund had an underweighted
position (+9.9%), while financial stocks in the Russell 2000 Index returned
13.5%. Security selection in the materials and energy sectors within the Fund
were relatively small drags on Fund performance versus the benchmark.
Overweight positions in healthcare and consumer staples sectors, coupled with
strong stock selection provided the largest positive contributions to Fund
performance over the last six-month period.
Q.WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND DURING THE PERIOD?
A.There have been no significant changes to the Fund's position over the last
six-month period. The largest portfolio underweight continues to be in
financials with overweight positions in consumer staples and energy remaining
consistent over the last 6 months. We continue to believe the Fund's
multi-sub-adviser approach will enhance the Fund's performance over the
long-term by providing a set of managers with diversification in style as
well as those who may generate alpha. We remain confident in the
sub-advisers' abilities and the investment approaches which have brought them
success in the past.
28
[GRAPHIC]
[GRAPHIC]
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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,120.14 10.25
Class B 1,000.00 1,116.37 14.25
Class C 1,000.00 1,115.65 14.19
Class R 1,000.00 1,118.20 11.30
Class Y 1,000.00 1,121.32 8.99
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,015.14 9.75
Class B 1,000.00 1,011.40 13.54
Class C 1,000.00 1,011.45 13.49
Class R 1,000.00 1,014.16 10.75
Class Y 1,000.00 1,016.32 8.55
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 1.92% for Class A
Shares, 2.68% for Class B Shares, 2.67% for Class C Shares, 2.12% for Class R
Shares and 1.68% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 12.01% for Class A shares, 11.64% for Class B shares, 11.56% for
Class C shares, 11.82% for Class R shares and 12.13% for Class Y shares.
[GRAPHIC] 29
[GRAPHIC]
GE Small-Cap Equity Fund
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets under normal circumstances in common
and preferred stocks and other types of equity securities of small-cap
companies under normal circumstances. The Fund uses a multi sub-adviser
investment strategy that combines growth, value and core investment management
styles, which allows the Fund to benefit from both value and growth cycles in
the marketplace.
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
- -----------------------------------------------------------------------------------
Dril-Quip, Inc. 1.04% Mednax, Inc. 0.87%
- ----------------------------------- ----------------------------------------------
HMS Holdings Corp. 0.96% Raymond James Financial, Inc. 0.87%
- ----------------------------------- ----------------------------------------------
Aaron Rents, Inc. (Class B) 0.92% Waste Connections, Inc. 0.82%
- ----------------------------------- ----------------------------------------------
LKQ Corp. 0.91% Owens & Minor, Inc. 0.81%
- ----------------------------------- ----------------------------------------------
Jarden Corp. 0.90% Omega Healthcare Investors, Inc. (REIT) 0.81%
- ----------------------------------- ----------------------------------------------
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Small Blend Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- ----
Number of Funds in peer group 648 633 463 245
------------------------------------------------------------------
Peer group average annual total return* 13.07% 64.37% 3.36% 3.68%
------------------------------------------------------------------
Morningstar Category in peer group: Small Blend
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Small Blend peer group consisting of 648, 633, 463 and 245 underlying funds,
respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE Small-Cap Russell 2000
Equity Index With Load
------------- ------------- ------------
03/00 10,000.00 10,000.00 9,425.00
09/00 9,805.34 9,740.49 9,241.53
09/01 10,266.23 7,680.78 9,675.92
09/02 9,966.18 6,974.07 9,393.12
09/03 10,989.68 9,523.55 10,357.78
09/04 12,897.92 11,311.09 12,156.29
09/05 15,589.61 13,335.50 14,693.21
09/06 16,619.12 14,657.18 15,663.52
09/07 19,090.20 16,463.32 17,992.51
09/08 15,714.31 14,078.19 14,810.74
09/09 14,115.70 12,733.89 13,304.05
03/10 15,811.58 14,397.25 14,902.41
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Small-Cap Equity
Fund 12.01% 56.67% 2.02% 4.69% 09/30/98 15,812
With Load 5.57% 47.66% 0.82% 4.07% 14,902
Russell 2000 Index 13.06% 62.76% 3.34% 3.71% 14,397
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
GE Small-Cap Russell 2000
Equity Index
------------ ------------
03/00 10,000.00 10,000.00
09/00 9,766.76 9,740.49
09/01 10,150.17 7,680.78
09/02 9,787.24 6,974.07
09/03 10,716.85 9,523.55
09/04 12,470.84 11,311.09
09/05 14,970.24 13,335.50
09/06 15,834.54 14,657.18
09/07 18,067.68 16,463.32
09/08 14,768.73 14,078.19
09/09 13,151.83 12,733.89
03/10 14,682.36 14,397.25
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Small-Cap Equity
Fund 11.64% 55.37% 1.25% 4.23% 09/30/98 14,682
With Load 7.64% 51.37% 1.25% 4.23%
Russell 2000 Index 13.06% 62.76% 3.34% 3.71% 14,397
30
[GRAPHIC]
[GRAPHIC]
GE Small-Cap Equity Fund
- --------------------------------------------------------------------------------
CLASS C SHARES
[CHART]
GE Small-Cap Equity Russell 2000 Index
------------------- ------------------
03/00 10,000.00 10,000.00
09/00 9,766.76 9,740.49
09/01 10,150.17 7,680.78
09/02 9,782.09 6,974.07
09/03 10,713.71 9,523.55
09/04 12,471.50 11,311.09
09/05 14,967.95 13,335.50
09/06 15,834.52 14,657.18
09/07 18,049.62 16,463.32
09/08 14,750.43 14,078.19
09/09 13,142.48 12,733.89
03/10 14,662.35 14,397.25
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Small-Cap Equity
Fund 11.56% 55.30% 1.23% 3.90% 09/30/99 14,662
With Load 10.56% 54.30% 1.23% 3.90%
Russell 2000 Index 13.06% 62.76% 3.34% 3.71% 14,397
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
GE Small-Cap Equity Russell 2000 Index
------------------- ------------------
01/08 10,000.00 10,000.00
03/08 9,718.91 9,669.58
06/08 9,974.45 9,726.02
09/08 9,131.18 9,617.80
12/08 6,578.14 7,105.66
03/09 5,852.61 6,043.12
06/09 7,100.52 7,293.36
12/09 8,183.98 8,699.41
12/09 8,541.90 9,036.09
03/10 9,151.35 9,835.77
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ----- --------- ------------ --------------
GE Small-Cap Equity Fund 11.82% 56.36% (3.40)% 01/29/08 9,151
Russell 2000 Index 13.06% 62.76% 0.79%* 9,836
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
GE Small-Cap Equtiy Russell 2000 Index
------------------- ------------------
03/00 10,000.00 10,000.00
09/00 9,820.27 9,740.49
09/01 10,309.27 7,680.78
09/02 10,029.59 6,974.07
09/03 11,094.91 9,523.55
09/04 13,052.32 11,311.09
09/05 15,821.69 13,335.50
09/06 16,904.71 14,657.18
09/07 19,473.52 16,463.32
09/08 16,065.58 14,078.19
09/09 14,486.98 12,733.89
03/10 16,244.48 14,397.25
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Small-Cap Equity
Fund 12.13% 57.23% 2.29% 4.97% 09/30/98 16,244
Russell 2000 Index 13.06% 62.76% 3.34% 3.71% 14,397
[GRAPHIC]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
[GRAPHIC] 31
GE SMALL-CAP EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE SMALL-CAP EQUITY FUND
Portfolio Composition as a % of Market Value of $39,331 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Healthcare 16.6%
Information Technology 16.2%
Consumer Discretionary 15.8%
Industrials 15.5%
Financials 11.8%
Short Term 7.4%
Consumer Staples 6.7%
Energy 4.5%
Materials 4.2%
Utilities 1.2%
Telecommunication Services 0.1%
Other Investments 0.0%*
* Less than 0.1%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 93.1%+
----------------------------------------------------------
AEROSPACE & DEFENSE -- 1.2%
DynCorp International, Inc.
(Class A)..................... 2,200 $ 25,278 (a)
Esterline Technologies Corp.... 1,510 74,639 (a)
GenCorp Inc.................... 4,500 25,920 (a)
Stanley, Inc................... 1,400 39,606 (a)
Teledyne Technologies Inc...... 7,200 297,144 (a)
462,587
AIR FREIGHT & LOGISTICS -- 0.3%
Dynamex, Inc................... 1,500 25,800 (a)
UTi Worldwide, Inc............. 5,864 89,836
115,636
AIRLINES -- 0.2%
Alaska Air Group, Inc.......... 700 28,861 (a)
Hawaiian Holdings, Inc......... 4,600 33,902 (a)
62,763
AUTO COMPONENTS -- 0.3%
China Automotive Systems, Inc.. 1,600 36,976 (a)
Wonder Auto Technology, Inc.... 8,112 85,825 (a)
122,801
AUTOMOBILES -- 0.1%
Thor Industries Inc............ 1,300 39,273
NUMBER
OF SHARES VALUE
BEVERAGES -- 0.1%
Coca-Cola Bottling Company
Consolidated................... 600 $ 35,196
BIOTECHNOLOGY -- 1.5%
Alkermes, Inc................... 5,500 71,335 (a)
Cubist Pharmaceuticals, Inc..... 4,200 94,668 (a)
Emergent Biosolutions, Inc...... 2,100 35,259 (a)
Genomic Health Inc.............. 3,700 65,083 (a)
Martek Biosciences Corp......... 5,132 115,521 (a)
Myriad Genetics, Inc............ 6,900 165,945 (a)
PDL BioPharma, Inc.............. 5,820 36,142 (a)
583,953
BUILDING PRODUCTS -- 0.1%
Quanex Building Products Corp... 1,800 29,754
CAPITAL MARKETS -- 1.8%
Affiliated Managers Group Inc... 2,610 206,190 (a)
Epoch Holding Corp.............. 2,700 30,483
GFI Group Inc................... 23,400 135,252
Raymond James Financial, Inc.... 12,800 342,272
714,197
CHEMICALS -- 2.5%
Arch Chemicals, Inc............. 5,680 195,335
Koppers Holdings Inc............ 6,200 175,584
NewMarket Corp.................. 909 93,618
Sensient Technologies Corp...... 15,900 462,054
Stepan Co....................... 600 33,534
960,125
COMMERCIAL BANKS -- 2.9%
First Midwest Bancorp, Inc...... 4,400 59,620
Frost Bankers, Inc.............. 4,500 251,100
Fulton Financial Corp........... 8,000 81,520
Prosperity Bancshares, Inc...... 4,400 180,400
Sterling Bancorp................ 500 5,025
SVB Financial Group............. 4,600 214,636 (a)
UMB Financial Corp.............. 3,700 150,220
Westamerica Bancorporation...... 3,100 178,715
1,121,236
COMMERCIAL SERVICES & SUPPLIES -- 2.8%
ABM Industries Inc.............. 10,900 231,080
Copart, Inc..................... 3,700 131,720 (a)
Healthcare Services Group, Inc.. 8,500 190,315
Herman Miller, Inc.............. 2,900 52,374
Ritchie Bros Auctioneers Inc.... 5,900 127,027
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
32
[GRAPHIC]
GE SMALL-CAP EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
SYKES Enterprises, Inc.............. 2,100 $ 47,964 (a)
Waste Connections, Inc.............. 9,500 322,620 (a)
1,103,100
COMMUNICATIONS EQUIPMENT -- 1.3%
BigBand Networks, Inc............... 1,200 4,236 (a)
Cogo Group, Inc..................... 5,400 37,746 (a)
CommScope, Inc...................... 6,700 187,734 (a)
Comtech Telecommunications
Corp............................... 855 27,351 (a)
Ixia................................ 4,300 39,861 (a)
Loral Space & Communications,
Inc................................ 1,300 45,656 (a)
Netgear Inc......................... 1,500 39,150 (a)
Oplink Communications, Inc.......... 2,400 44,496 (a)
PC-Tel Inc.......................... 4,700 29,046 (a)
Plantronics Inc..................... 1,500 46,920
502,196
COMPUTERS & PERIPHERALS -- 0.2%
Cray Inc............................ 5,300 31,535 (a)
Super Micro Computer, Inc........... 1,800 31,104 (a)
62,639
CONSTRUCTION & ENGINEERING -- 1.2%
Chicago Bridge & Iron Company
N.V................................ 8,300 193,058 (a)
Great Lakes Dredge & Dock Corp...... 6,500 34,125
Quanta Services, Inc................ 2,600 49,816 (a)
URS Corp............................ 3,800 188,518 (a)
465,517
CONSUMER FINANCE -- 0.4%
Ezcorp, Inc. (Class A).............. 2,700 55,620 (a)
First Cash Financial Services, Inc.. 1,800 38,826 (a)
Nelnet, Inc. (Class A).............. 2,700 50,112
144,558
CONTAINERS & PACKAGING -- 1.8%
AEP Industries, Inc................. 1,100 28,622 (a)
Aptargroup, Inc..................... 6,600 259,710
Packaging Corporation of
America............................ 8,000 196,880
Rock-Tenn Co. (Class A)............. 1,000 45,570
Silgan Holdings, Inc................ 2,900 174,667
705,449
DISTRIBUTORS -- 0.9%
LKQ Corp............................ 17,600 357,280 (a)
NUMBER
OF SHARES VALUE
DIVERSIFIED CONSUMER SERVICES -- 1.7%
American Public Education, Inc.. 2,900 $ 135,140 (a)
Bridgepoint Education Inc....... 1,100 27,038 (a)
K12, Inc........................ 7,700 171,017 (a)
Lincoln Educational Services
Corp........................... 2,700 68,310 (a)
Matthews International Corp.
(Class A)...................... 7,200 255,600
Spectrum Group International
Inc............................ 9,651 17,854 (a)
674,959
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.1%
tw telecom inc. (Class A)....... 2,500 45,375 (a)
ELECTRIC UTILITIES -- 0.8%
IDACORP, Inc.................... 8,600 297,732
ELECTRICAL EQUIPMENT -- 1.3%
Baldor Electric Co.............. 4,400 164,560
Brady Corp. (Class A)........... 7,400 230,288
SunPower Corp. (Class A)........ 1,200 22,680 (a)
Woodward Governor Co............ 3,000 95,940
513,468
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 1.6%
Benchmark Electronics, Inc...... 4,191 86,921 (a)
CPI International, Inc.......... 3,230 42,830 (a)
FARO Technologies, Inc.......... 3,000 77,250 (a)
Methode Electronics, Inc........ 3,300 32,670
National Instruments Corp....... 5,870 195,765
Newport Corp.................... 9,500 118,750 (a)
Park Electrochemical Corp....... 1,600 45,984
Plexus Corp..................... 800 28,824 (a)
628,994
ENERGY EQUIPMENT & SERVICES -- 2.0%
Dril-Quip, Inc.................. 6,700 407,628 (a)
Geokinetics Inc................. 1,300 9,373 (a)
Gulf Island Fabrication, Inc.... 700 15,225
Lufkin Industries, Inc.......... 500 39,575
Oil States International, Inc... 2,500 113,350 (a)
Pioneer Drilling Co............. 7,908 55,672 (a)
Superior Energy Services, Inc... 7,400 155,548 (a)
796,371
FOOD & STAPLES RETAILING -- 0.8%
Ruddick Corp.................... 7,400 234,136
Spartan Stores, Inc............. 4,400 63,448
297,584
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 33
GE SMALL-CAP EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
FOOD PRODUCTS -- 3.8%
Darling International Inc,........ 22,150 $ 198,464 (a)
Del Monte Foods Co................ 25,975 379,235
Flowers Foods, Inc................ 7,300 180,602
Lancaster Colony Corp............. 1,100 64,856
Lance, Inc........................ 5,600 129,528
Smart Balance, Inc................ 13,300 86,184 (a)
Smithfield Foods, Inc............. 13,800 286,212 (a)
The Hain Celestial Group, Inc..... 8,800 152,680 (a)
1,477,761
HEALTHCARE EQUIPMENT & SUPPLIES -- 5.0%
Align Technology Inc.............. 3,600 69,624 (a)
American Medical Systems
Holdings, Inc.................... 8,900 165,362 (a)
Cantel Medical Corp. (Class B).... 1,400 27,790
ev3, Inc.......................... 5,200 82,472 (a)
Gen-Probe Inc..................... 3,700 185,000 (a)
Haemonetics Corp.................. 831 47,492 (a)
Immucor, Inc...................... 4,445 99,524 (a)
Integra LifeSciences Holdings
Corp............................. 5,300 232,299 (a)
Masimo Corp....................... 4,400 116,820
Medical Action Industries, Inc.... 14,300 175,461 (a)
Meridian Bioscience, Inc.......... 4,400 89,628
Natus Medical Inc................. 2,600 41,366 (a)
NuVasive, Inc..................... 3,230 145,996 (a)
SonoSite, Inc..................... 2,900 93,119 (a)
SurModics, Inc.................... 2,200 46,068 (a)
Teleflex Inc...................... 2,200 140,954
West Pharmaceutical Services,
Inc.............................. 4,700 197,165
Zoll Medical Corp................. 700 18,452 (a)
1,974,592
HEALTHCARE PROVIDERS & SERVICES -- 6.5%
Almost Family Inc................. 800 30,152 (a)
Amedisys, Inc..................... 1,742 96,193 (a)
AMERIGROUP Corp................... 1,500 49,860 (a)
Bio-Reference Laboratories, Inc... 6,600 290,202 (a)
Continucare Corp.................. 11,400 42,180 (a)
Corvel Corp....................... 400 14,300 (a)
Emergency Medical Services Corp.
(Class A)........................ 900 50,895 (a)
Genoptix, Inc..................... 900 31,941 (a)
Gentiva Health Services, Inc...... 1,400 39,592 (a)
Healthways, Inc................... 3,000 48,210 (a)
HMS Holdings Corp................. 8,300 423,217 (a)
inVentiv Health, Inc.............. 3,700 83,102 (a)
IPC The Hospitalist Company, Inc.. 1,500 52,665 (a)
Mednax, Inc....................... 7,300 424,787 (a)
Molina Healthcare, Inc............ 9,000 226,530 (a)
National Healthcare Corp.......... 600 21,228
Owens & Minor, Inc................ 6,900 320,091
NUMBER
OF SHARES VALUE
RehabCare Group, Inc.............. 1,500 $ 40,905 (a)
Sun Healthcare Group, Inc......... 12,893 122,999 (a)
VCA Antech, Inc................... 4,421 123,921 (a)
2,532,970
HEALTHCARE TECHNOLOGY -- 0.5%
Computer Programs & Systems,
Inc.............................. 900 35,172
Eclipsys Corp..................... 2,100 41,748 (a)
MedAssets, Inc.................... 5,900 123,900 (a)
200,820
HOTELS RESTAURANTS & LEISURE -- 1.5%
Arby's Group, Inc................. 15,600 78,000
Bally Technologies, Inc........... 900 36,486 (a)
Cracker Barrel Old Country Store,
Inc.............................. 5,300 245,814
Denny's Corp...................... 18,820 72,269 (a)
Domino's Pizza Inc................ 2,100 28,644 (a)
Einstein Noah Restaurant Group
Inc.............................. 2,700 32,805 (a)
Panera Bread Co. (Class A)........ 700 53,543 (a)
Shuffle Master, Inc............... 7,000 57,330 (a)
604,891
HOUSEHOLD DURABLES -- 1.2%
Jarden Corp....................... 10,600 352,874
National Presto Industries Inc.... 300 35,673
Tupperware Brands Corp............ 1,500 72,330
460,877
HOUSEHOLD PRODUCTS -- 0.2%
WD-40 Co.......................... 2,900 95,207
INSURANCE -- 4.0%
Alleghany Corp.................... 485 140,893 (a)
Allied World Assurance Company
Holdings Ltd..................... 4,400 197,340
Argo Group International Holdings
Ltd.............................. 4,700 153,173
Arthur J Gallagher & Co........... 4,400 108,020
Brown & Brown, Inc................ 7,400 132,608
First Mercury Financial Corp...... 7,738 100,826
HCC Insurance Holdings, Inc....... 13,800 380,880
National Interstate Corp.......... 3,100 64,201
Navigators Group, Inc............. 4,400 173,052 (a)
Symetra Financial Corp............ 6,900 90,942 (a)
Tower Group, Inc.................. 1,000 22,170
1,564,105
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
34
[GRAPHIC]
GE SMALL-CAP EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
INTERNET SOFTWARE & SERVICES -- 1.0%
Art Technology Group, Inc......... 30,100 $ 132,741 (a)
comScore, Inc..................... 5,200 86,788 (a)
Constant Contact, Inc............. 5,200 120,744 (a)
NIC Inc........................... 7,300 57,451
397,724
IT SERVICES -- 2.6%
CACI International Inc. (Class A). 700 34,195 (a)
CSG Systems International, Inc.... 1,100 23,056 (a)
Global Cash Access Holdings, Inc.. 20,100 164,217 (a)
iGate Corp........................ 8,300 80,759
NeuStar, Inc. (Class A)........... 5,200 131,040 (a)
RightNow Technologies, Inc........ 4,200 75,012 (a)
Sapient Corp...................... 4,300 39,302
SRA International Inc. (Class A).. 3,800 79,002 (a)
TeleTech Holdings Inc............. 2,200 37,576 (a)
VeriFone Holdings, Inc............ 9,000 181,890 (a)
Virtusa Corp...................... 5,791 59,705 (a)
Wright Express Corp............... 3,700 111,444 (a)
1,017,198
LEISURE EQUIPMENT & PRODUCTS -- 0.5%
Polaris Industries, Inc........... 3,825 195,687
LIFE SCIENCES TOOLS & SERVICES -- 2.9%
Accelrys, Inc..................... 7,300 44,968 (a)
Bio-Rad Laboratories, Inc
(Class A)........................ 2,100 217,392 (a)
Bruker Corp....................... 21,160 309,994 (a)
Cambrex Corp...................... 4,000 16,200 (a)
Dionex Corp....................... 500 37,390 (a)
ICON PLC ADR...................... 10,800 285,120 (a)
Luminex Corp...................... 7,347 123,650 (a)
Techne Corp....................... 1,900 121,011
1,155,725
MACHINERY -- 6.0%
AGCO Corp......................... 5,400 193,698 (a)
Cascade Corp...................... 4,575 147,361
Chart Industries, Inc............. 1,531 30,620 (a)
CLARCOR, Inc...................... 7,700 265,573
Flow International Corp........... 12,000 36,120 (a)
Flowserve Corp.................... 1,200 132,324
Gardner Denver, Inc............... 1,800 79,272
Graham Corp....................... 2,200 39,578
Harsco Corp....................... 3,700 118,178
IDEX Corp......................... 8,800 291,280
Middleby Corp..................... 2,825 162,692 (a)
Mueller Industries, Inc........... 3,300 88,407
Nordson Corp...................... 2,950 200,364
NUMBER
OF SHARES VALUE
Tennant Co.......................... 1,400 $ 38,346
Timken Co........................... 4,800 144,048
Trinity Industries, Inc............. 10,425 208,083
WABCO Holdings Inc.................. 1,500 44,880
Wabtec Corp......................... 3,400 143,208
2,364,032
MEDIA -- 3.2%
Arbitron, Inc....................... 9,700 258,602
Interactive Data Corp............... 10,800 345,600
John Wiley & Sons, Inc. (Class A)... 10,100 437,128
Morningstar, Inc.................... 3,800 182,742 (a)
National CineMedia Inc.............. 1,700 29,342
1,253,414
METALS & MINING -- 1.1%
Commercial Metals Co................ 11,603 174,741
Compass Minerals International,
Inc................................ 2,700 216,621
Worthington Industries, Inc......... 1,900 32,851
424,213
MULTI-UTILITIES -- 0.5%
OGE Energy Corp..................... 4,625 180,098
OFFICE ELECTRONICS -- 0.3%
Zebra Technologies Corp.
(Class A).......................... 3,900 115,440 (a)
OIL, GAS & CONSUMABLE FUELS -- 2.4%
Approach Resources Inc.............. 3,200 29,056 (a)
Arena Resources Inc................. 2,200 73,480 (a)
Comstock Resources, Inc............. 1,200 38,160 (a)
CVR Energy, Inc..................... 2,987 26,136 (a)
Gulfport Energy Corp................ 4,400 49,456 (a)
James River Coal Co................. 9,500 151,050 (a)
Penn Virginia Corp.................. 1,500 36,750
Resolute Energy Corp................ 5,900 71,449 (a)
Rosetta Resources, Inc.............. 2,700 63,585 (a)
SandRidge Energy, Inc............... 10,300 79,310 (a)
St Mary Land & Exploration Co....... 9,800 341,138
959,570
PERSONAL PRODUCTS -- 0.9%
Alberto-Culver Co................... 10,300 269,345
Revlon, Inc. (Class A).............. 2,400 35,640 (a)
Schiff Nutrition International Inc.
(Class A).......................... 3,600 29,448
334,433
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 35
GE SMALL-CAP EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
PHARMACEUTICALS -- 0.4%
Impax Laboratories, Inc............. 2,900 $ 51,852 (a)
Questcor Pharmaceuticals, Inc....... 6,200 51,026 (a)
Viropharma Inc...................... 5,100 69,513 (a)
172,391
PROFESSIONAL SERVICES -- 0.5%
CoStar Group, Inc................... 3,800 157,776 (a)
Resources Connection, Inc........... 400 7,668 (a)
VSE Corp............................ 800 32,928
198,372
REAL ESTATE INVESTMENT TRUSTS (REIT'S) -- 2.8%
BioMed Realty Trust, Inc. (REIT).... 17,400 287,796
Digital Realty Trust, Inc. (REIT)... 4,700 254,740
Healthcare Realty Trust Inc. (REIT). 10,300 239,887
Omega Healthcare Investors, Inc.
(REIT)............................. 16,400 319,636
1,102,059
ROAD & RAIL -- 1.9%
Genesee & Wyoming Inc.
(Class A).......................... 9,200 313,904 (a)
Landstar System, Inc................ 4,400 184,712
Old Dominion Freight Line, Inc...... 7,200 240,408 (a)
739,024
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.5%
Applied Micro Circuits Corp......... 4,600 39,698 (a)
Cabot Microelectronics Corp......... 900 34,047 (a)
Ceva, Inc........................... 2,400 27,984 (a)
Diodes Inc.......................... 1,900 42,560 (a)
FEI Co.............................. 3,200 73,312 (a)
IXYS Corp........................... 3,770 32,196 (a)
Microsemi Corp...................... 12,400 215,016 (a)
Rudolph Technologies, Inc........... 14,900 127,693 (a)
Semtech Corp........................ 10,700 186,501 (a)
Standard Microsystems Corp.......... 1,400 32,592 (a)
Tessera Technologies, Inc........... 1,100 22,308 (a)
Varian Semiconductor Equipment
Associates, Inc.................... 3,200 105,984 (a)
Zoran Corp.......................... 3,300 35,508 (a)
975,399
SOFTWARE -- 6.7%
ACI Worldwide, Inc.................. 2,800 57,708 (a)
Actuate Corp........................ 9,600 53,664 (a)
ArcSight, Inc....................... 1,900 53,485 (a)
Ariba, Inc.......................... 11,800 151,630 (a)
AsiaInfo Holdings, Inc.............. 1,700 45,016 (a)
NUMBER
OF SHARES VALUE
Blackbaud, Inc..................... 11,400 $ 287,166
Blackboard Inc..................... 4,400 183,304 (a)
Bottomline Technologies, Inc....... 4,400 74,052 (a)
Concur Technologies, Inc........... 1,800 73,818 (a)
Ebix, Inc.......................... 5,900 94,223 (a)
Informatica Corp................... 2,900 77,894 (a)
Interactive Intelligence, Inc...... 4,100 76,629 (a)
Jack Henry & Associates, Inc....... 4,400 105,864
Micros Systems Inc................. 9,300 305,784 (a)
MicroStrategy Inc. (Class A)....... 900 76,563 (a)
Parametric Technology Corp......... 17,000 306,850 (a)
Pegasystems Inc.................... 3,200 118,400
Progress Software Corp............. 2,900 91,147 (a)
QAD Inc............................ 4,700 24,675 (a)
Solera Holdings, Inc............... 4,600 177,790
Sourcefire, Inc.................... 2,200 50,490 (a)
SS&C Technologies Holdings, Inc.... 200 3,016 (a)
Ultimate Software Group, Inc....... 4,400 144,980 (a)
2,634,148
SPECIALTY RETAIL -- 4.2%
Aaron Rents, Inc. (Class B)........ 10,900 363,406
Aeropostale, Inc................... 9,300 268,119 (a)
American Eagle Outfitters, Inc..... 5,400 100,008
J Crew Group Inc................... 600 27,540 (a)
Jo-Ann Stores, Inc................. 4,200 176,316 (a)
JOS A Bank Clothiers, Inc.......... 1,000 54,650 (a)
The Buckle, Inc.................... 8,100 297,756
The Finish Line, Inc. (Class A).... 3,400 55,488
Tractor Supply Co.................. 4,175 242,359
Ulta Salon, Cosmetics & Fragrance,
Inc............................... 2,900 65,598 (a)
1,651,240
TEXTILES APPAREL & LUXURY GOODS -- 1.8%
Columbia Sportswear Co............. 3,550 186,482
CROCS Inc.......................... 3,800 33,326 (a)
Deckers Outdoor Corp............... 1,383 190,854 (a)
Fossil, Inc........................ 1,500 56,610 (a)
Maidenform Brands, Inc............. 2,500 54,625 (a)
Steven Madden Ltd.................. 1,000 48,800 (a)
The Timberland Co. (Class A)....... 2,200 46,948 (a)
True Religion Apparel, Inc......... 1,100 33,396 (a)
Wolverine World Wide Inc........... 1,500 43,740
694,781
TRADING COMPANIES & DISTRIBUTORS -- 0.3%
Applied Industrial Technologies,
Inc............................... 2,800 69,580
Watsco Inc......................... 700 39,816
109,396
TOTAL COMMON STOCK
(COST $33,067,220)................ 36,428,310
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
36
[GRAPHIC]
GE SMALL-CAP EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
OTHER INVESTMENTS -- 0.0%*
--------------------------------------------------------------
GEI Investment Fund
(COST $10,159)................. $ 8,432 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $33,077,379)............. 36,436,742
--------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.4%
--------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $2,893,997).............. 2,893,997 (d,k)
TOTAL INVESTMENTS
(COST $35,971,376)............. 39,330,739
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET -- (0.5)%.......... (176,900)
-----------
NET ASSETS -- 100.0%............ $39,153,839
===========
OTHER INFORMATION
----------------------------------------------------------
The GE Small Cap Equity Fund had the following long futures contracts open at
March 31, 2010 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
----------------------------------------------------------
Russell 2000
Mini Index
Futures June 2010 8 $541,680 $(2,544)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 37
[GRAPHIC]
GE Global Equity Fund
[PHOTO]
Robert A. Jaminski
Senior Vice President
Robert A. Jaminski
Senior Vice President
[PHOTO]
Daizo Motoyoshi
Senior Vice President
Daizo Motoyoshi
Senior Vice President
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. See portfolio managers'
biographical information beginning on page 184.
Q.HOW DID THE GE GLOBAL EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Global Equity Fund
returned 6.47% for Class A shares, 6.10% for Class B shares, 6.11% for Class
C shares, 6.38% for Class R shares and 6.58% for Class Y shares. The MSCI
World Index, the Fund's benchmark, returned 7.44% and the Fund's Morningstar
peer group of 824 World Stock Funds returned an average of 7.77% for the same
period.
Q.WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A.The Global economy continued to recover from the financial crisis during the
period with solid corporate earnings, interest rate policies remaining loose
and inflation under control. The environment was conducive for corporations
and global markets to continue to repair themselves after falling down
rapidly to extreme lows in early 2009.
Q.WHAT WORLD EVENTS HAD A MAJOR IMPACT ON FINANCIAL MARKETS?
A.Fears of sovereign credit risk in Europe that began in Greece continues to be
a challenge. Although Greece represents a very small portion of the European
economy, investors feared a possibility of the problems spreading to other
financially weak economies such as Portugal, Ireland, Italy and Spain and
hurt the overall European and global economies. In addition, financial
markets cautiously watched the developments of financial and health care
reforms in the U.S.
Q.WHAT STOCKS AND SECTORS SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE?
A.Two of the sectors that negatively impacted Fund performance were information
technology and materials. The key stocks that hurt Fund performance were
Monsanto and Qualcomm, which benefit from long-term positive trends in
agriculture and wireless communications but were hurt by short-term issues.
The key sectors that helped Fund performance were defensive sectors like
telecommunications and healthcare. At the stock level, the top contributors
were Baidu (IT), Fresenius (healthcare) and Jupiter Telecom.
Q.DID THE WEIGHTINGS/COUNTRY ALLOCATION OF THE FUND CHANGE? WHY?
A.We closed our underweight in industrials and went overweight as they benefit
from a recovering global economy and continued emerging markets growth. We
similarly added to our information technology positions. We continued to trim
our consumer staples positions
Q.WHAT WERE THE MAJOR BUYS AND SELLS FOR THE PERIOD AND WHY?
A.We initiated new positions in Kraft Foods and Keyence. Kraft's recent
acquisition of Cadbury strengthens its business portfolio and helps drive its
top line growth. Keyence is a high quality factory automation company that
should benefit from global economic recovery. We terminated our position in
Petrobras because of concerns over energy prices and also over volatility
that may come from Brazil's upcoming election and transition of power away
from a successful current administration.
38
[GRAPHIC]
[GRAPHIC]
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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,064.70 7.98
Class B 1,000.00 1,061.01 11.82
Class C 1,000.00 1,061.11 11.87
Class R 1,000.00 1,063.82 9.31
Class Y 1,000.00 1,065.84 6.70
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,017.06 7.79
Class B 1,000.00 1,013.37 11.55
Class C 1,000.00 1,013.32 11.60
Class R 1,000.00 1,015.78 9.10
Class Y 1,000.00 1,018.28 6.54
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 1.54% for Class A
Shares, 2.30% for Class B Shares, 2.30% for Class C Shares, 1.80% for Class R
Shares and 1.29% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 6.47% for Class A shares, 6.10% for Class B shares, 6.11% for Class
C shares, 6.38% for Class R shares and 6.58% for Class Y shares.
[GRAPHIC] 39
[GRAPHIC]
GE Global Equity Fund
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets under normal circumstances in common
and preferred stocks and other types of equity securities. The Fund invests in
companies in developed and developing countries, including the United States.
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
---------------------------------------------------------------------------
JPMorgan Chase & Co. 3.12% Monsanto Co. 2.02%
---------------------------------- ---------------------------------------
Occidental Petroleum Corp. 2.23% American Tower Corp. (Class A) 1.97%
---------------------------------- ---------------------------------------
Fresenius SE 2.21% Bank of America Corp. 1.92%
---------------------------------- ---------------------------------------
Schlumberger Ltd. 2.19% Nestle S.A. (Regd.) 1.90%
---------------------------------- ---------------------------------------
QUALCOMM Inc. 2.18% Potash Corp of Saskatchewan Inc. 1.88%
---------------------------------- ---------------------------------------
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
World Stock Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- ----
Number of Funds in peer group 824 766 456 256
------------------------------------------------------------------
Peer group average annual total return* 7.77% 52.96% 3.80% 0.35%
------------------------------------------------------------------
Morningstar Category in peer group: World Stock
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
World Stock peer group consisting of 824, 766, 456 and 256 underlying funds,
respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE Global Equity MSCIW Index With Load
----------------- ------------ ----------
03/00 10,000.00 10,000.00 9,425.00
09/00 9,075.13 9,160.88 8,553.31
09/01 6,653.20 6,577.14 6,270.64
09/02 5,396.25 5,315.54 5,085.96
09/03 6,505.65 6,665.49 6,131.57
09/04 7,353.17 7,805.03 6,930.36
09/05 8,579.12 9,282.20 8,085.82
09/06 10,110.27 10,598.73 9,528.93
09/07 13,221.96 12,834.17 12,461.70
09/08 9,891.03 9,491.94 9,322.29
09/09 9,099.42 9,274.36 8,576.21
03/10 9,688.18 9,964.48 9,131.11
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Global Equity Fund 6.47% 45.19% 3.81% (0.32)% 01/05/93 9,688
With Load 0.35% 36.85% 2.59% (0.90)% 9,131
MSCI World Index 7.44% 52.37% 2.89% (0.04)% 9,964
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
GE Global Equity MSCIW Index
---------------- -----------
03/00 10,000.00 10,000.00
09/00 9,040.14 9,160.88
09/01 6,577.71 6,577.14
09/02 5,296.11 5,315.54
09/03 6,340.06 6,665.49
09/04 7,112.40 7,805.03
09/05 8,236.98 9,282.20
09/06 9,673.88 10,598.73
09/07 12,651.26 12,834.17
09/08 9,464.10 9,491.94
09/09 8,706.67 9,274.36
03/10 9,270.01 9,964.48
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Global Equity Fund 6.10% 44.11% 3.03% (0.75)% 12/22/93 9,270
With Load 2.10% 40.11% 3.03% (0.75)%
MSCI World Index 7.44% 52.37% 2.89% (0.04)% 9,964
- --------------------------------------------------------------------------------
40
[GRAPHIC]
[GRAPHIC]
GE Global Equity Fund
CLASS C SHARES
[CHART]
GE Global Equity MSCIW Index
---------------- -----------
03/00 10,000.00 10,000.00
09/00 9,040.14 9,160.88
09/01 6,574.60 6,577.14
09/02 5,292.78 5,315.54
09/03 6,383.59 6,665.49
09/04 7,164.57 7,805.03
09/05 8,293.58 9,282.20
09/06 9,698.48 10,598.73
09/07 12,588.92 12,834.17
09/08 9,343.03 9,491.94
09/09 8,526.63 9,274.36
03/10 9,047.70 9,964.48
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Global Equity Fund 6.11% 44.09% 3.01% (1.00)% 09/30/99 9,048
With Load 5.11% 43.09% 3.01% (1.00)%
MSCI World Index 7.44% 52.37% 2.89% (0.04)% 9,964
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
GE Global Equity MSCIW Index
---------------- -----------
01/08 10,000.00 10,000.00
03/08 9,923.55 9,846.83
03/08 9,820.34 9,683.16
03/08 8,107.80 8,206.09
03/08 6,124.71 6,419.30
03/09 5,463.24 5,653.88
03/09 6,533.02 6,826.93
03/09 7,439.48 8,017.98
03/09 7,741.61 8,344.34
03/10 7,914.29 8,614.62
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ----- --------- ------------ --------------
GE Global Equity Fund 6.38% 44.86% (9.93)% 01/29/08 7,914
MSCI World Index 7.44% 52.37% (5.98)%* 8,615
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
GE Global Equity MSCIW Index
---------------- -----------
03/00 10,000.00 10,000.00
09/00 9,088.79 9,160.88
09/01 6,680.01 6,577.14
09/02 5,434.20 5,315.54
09/03 6,568.29 6,665.49
09/04 7,442.42 7,805.03
09/05 8,706.38 9,282.20
09/06 10,286.13 10,598.73
09/07 13,485.89 12,834.17
09/08 10,104.41 9,491.94
09/09 9,323.27 9,274.36
03/10 9,937.11 9,964.48
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Global Equity Fund 6.58% 45.61% 4.06% (0.06)% 11/29/93 9,937
MSCI World Index 7.44% 52.37% 2.89% (0.04)% 9,964
[CHART]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
[GRAPHIC] 41
GE GLOBAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE GLOBAL EQUITY FUND
Portfolio Composition as a % of Market Value of $47,667 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
United States 48.1%
Continental Europe 15.1%
Japan 12.6%
Emerging Asia 6.7%
United Kingdom 6.3%
Canada 4.5%
Pacific Rim 2.9%
Latin America 2.3%
Emerging Europe 1.5%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 94.8%+
--------------------------------------------------------------
AUSTRALIA -- 1.8%
Brambles Ltd....................... 97,993 $ 661,979
Paladin Energy Ltd................. 57,766 209,431 (a)
871,410
BRAZIL -- 1.4%
Banco Santander Brasil S.A......... 34,417 423,873
Rossi Residencial S.A.............. 34,620 240,344
664,217
CANADA -- 4.5%
CAE, Inc........................... 27,741 271,244
Potash Corp of Saskatchewan
Inc............................... 7,525 898,109
Research In Motion Ltd............. 5,538 409,535 (a)
Suncor Energy Inc.................. 17,844 580,644
2,159,532
CAYMAN ISLANDS -- 0.5%
Shanda Interactive Entertainment
Ltd. ADR.......................... 4,974 216,817 (a)
CHILE -- 1.0%
Sociedad Quimica y Minera de Chile
S.A. ADR (Series B)............... 12,183 455,522
NUMBER
OF SHARES VALUE
CHINA -- 3.9%
Baidu, Inc ADR..................... 1,175 $ 701,475 (a)
China South Locomotive and Rolling
Stock Corp........................ 383,000 298,421
Sinopharm Group Co................. 94,563 425,032 (a)
Zhuzhou CSR Times Electric
Company Ltd....................... 243,335 460,051
1,884,979
DENMARK -- 0.6%
A P Moller-Maersk A/S (Series B)... 35 267,180
FRANCE -- 3.4%
BNP Paribas........................ 6,535 502,785
Cie Generale de Geophysique-
Veritas........................... 5,626 159,901 (a)
Eutelsat Communications............ 9,527 339,291
Schneider Electric S.A............. 2,798 328,774
Vivendi............................ 10,578 283,614
1,614,365
GERMANY -- 3.9%
Adidas AG.......................... 8,939 478,976
Bayer AG........................... 3,917 265,429
Deutsche Boerse AG................. 5,078 377,083
Gerresheimer AG.................... 5,025 157,404
Siemens AG (Regd.)................. 4,273 428,720
ThyssenKrupp AG.................... 4,896 168,634
1,876,246
HONG KONG -- 1.1%
Esprit Holdings Ltd................ 36,889 291,228
Li & Fung Ltd...................... 44,865 220,433
511,661
ITALY -- 0.7%
UniCredit S.p.A.................... 118,997 352,220
JAPAN -- 12.5%
Hitachi Metals Ltd................. 11,000 115,721
Japan Tobacco Inc.................. 38 141,524
Jupiter Telecommunications
Company Ltd....................... 633 731,635
Keyence Corp....................... 2,700 645,527
Mitsubishi UFJ Financial Group
Inc............................... 98,555 516,823
Nomura Holdings Inc................ 113,634 837,905
Panasonic Corp..................... 13,500 206,603
Sumitomo Metal Industries Ltd...... 131,000 396,757
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
42
[GRAPHIC]
GE GLOBAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
Taiyo Nippon Sanso Corp.......... 47,985 $ 469,374
The Japan Steel Works Ltd........ 43,000 492,862
Toyota Motor Corp................ 13,500 541,069
Trend Micro Inc.................. 6,500 226,777 (a)
Yamada Denki Company Ltd......... 8,930 659,428
5,982,005
NETHERLANDS -- 0.3%
Heineken N.V..................... 2,996 154,250
RUSSIA -- 0.7%
Mobile Telesystems OJSC ADR...... 6,198 343,989
SOUTH AFRICA -- 0.8%
MTN Group Ltd.................... 16,509 251,773
Naspers Ltd...................... 2,891 124,593 (a)
376,366
SOUTH KOREA -- 1.3%
Doosan Heavy Industries and
Construction Company Ltd........ 4,060 325,101
Samsung SDI Company Ltd.......... 2,390 299,951
625,052
SWITZERLAND -- 3.9%
Nestle S.A. (Regd.).............. 17,673 906,695
Roche Holding AG................. 5,189 843,018 (a)
Transocean Ltd................... 1,270 109,703 (a)
1,859,416
TAIWAN -- 1.4%
Prime View International Company
Ltd............................. 140,000 253,479
Taiwan Semiconductor
Manufacturing Company Ltd.
ADR............................. 39,134 410,516
663,995
UNITED KINGDOM -- 6.3%
Aegis Group PLC.................. 139,800 269,744
BG Group PLC..................... 25,887 447,852
BHP Billiton PLC................. 25,202 863,974
British American Tobacco PLC..... 4,337 149,437
Cable & Wireless Communications
PLC............................. 55,709 46,774
Cable & Wireless Worldwide....... 55,709 77,745 (a)
HSBC Holdings PLC................ 18,482 187,276
Lloyds Banking Group PLC......... 402,418 383,166
NUMBER
OF SHARES VALUE
Prudential PLC.................. 32,464 $ 269,615
Tesco PLC....................... 48,995 323,629
3,019,212
UNITED STATES -- 44.8%
Alexion Pharmaceuticals, Inc.... 2,114 114,938 (a)
Allegheny Technologies Inc...... 6,445 347,966
American Tower Corp. (Class A).. 21,999 937,377 (a)
Amgen Inc....................... 11,391 680,726 (a)
Apple Inc....................... 1,195 280,741 (a)
Bank of America Corp............ 51,297 915,651
Bed Bath & Beyond, Inc.......... 7,662 335,289 (a)
Bucyrus International, Inc.
(Class A)...................... 4,670 308,173
Capital One Financial Corp...... 14,241 589,720
Cisco Systems, Inc.............. 12,388 322,460 (a,h)
CME Group Inc................... 1,424 450,141
Corning Inc..................... 8,346 168,673
Covidien PLC.................... 8,655 435,173
Cummins Inc..................... 6,010 372,320
Deere & Co...................... 5,423 322,452
DIRECTV (Class A)............... 5,869 198,431 (a)
eBay Inc........................ 6,903 186,036 (a)
Equinix, Inc.................... 4,950 481,833 (a)
Express Scripts, Inc............ 6,761 687,999 (a)
Freeport-McMoRan Copper & Gold
Inc............................ 5,161 431,150
Hewlett-Packard Co.............. 9,195 488,714
International Business Machines
Corp........................... 1,634 209,560
ITC Holdings Corp............... 6,582 362,010
JPMorgan Chase & Co............. 33,202 1,485,790 (h)
Kirby Corp...................... 5,054 192,810 (a)
Kraft Foods Inc. (Class A)...... 19,611 593,037
Lowe's Companies, Inc........... 14,214 344,547
Monsanto Co..................... 13,451 960,670
NII Holdings, Inc............... 12,091 503,711 (a)
Occidental Petroleum Corp....... 12,554 1,061,315
Oracle Corp..................... 7,207 185,148
PepsiCo, Inc.................... 7,174 474,632
Praxair, Inc.................... 7,240 600,920
QUALCOMM Inc.................... 24,798 1,041,268
Schlumberger Ltd................ 16,450 1,043,917
Southwestern Energy Co.......... 17,972 731,820 (a)
State Street Corp............... 5,462 246,555 (e)
The Charles Schwab Corp......... 22,029 411,722
The Goldman Sachs Group, Inc.... 913 155,785
The Walt Disney Co.............. 4,986 174,061
Time Warner Inc................. 5,623 175,831
Union Pacific Corp.............. 7,958 583,321
Visa, Inc. (Class A)............ 4,882 444,408
Yum! Brands, Inc................ 9,265 355,127
21,393,928
TOTAL COMMON STOCK
(COST $40,566,243)............. 45,292,362
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 43
GE GLOBAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
PREFERRED STOCK -- 2.2%
---------------------------------------------------------------
Fresenius SE...................... 13,931 $ 1,053,717
TOTAL PREFERRED STOCK
(COST $1,036,736)................ 1,053,717
---------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 0.8%
---------------------------------------------------------------
Financial Select Sector SPDR Fund. 4,604 73,526 (p)
Industrial Select Sector SPDR
Fund............................. 9,989 311,956 (h,p)
TOTAL EXCHANGE TRADED FUNDS
(COST $398,535).................. 385,482
---------------------------------------------------------------
OTHER INVESTMENTS -- 0.0%*
---------------------------------------------------------------
GEI Investment Fund
(COST $31,854)................... 26,439 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $42,033,368)............... 46,758,000
---------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.9%
---------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $909,299).................. 909,299 (d,k)
TOTAL INVESTMENTS
(COST $42,942,667)............... 47,667,299
OTHER ASSETS AND
LIABILITIES, NET -- 0.3%......... 130,914
-----------
NET ASSETS -- 100.0%.............. $47,798,213
===========
OTHER INFORMATION
------------------------------------------------------------------
The GE Global Equity Fund had the following long futures contracts open at
March 31, 2010 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
------------------------------------------------------------------
DJ Euro Stoxx 50 Index
Futures June 2010 1 $38,577 $262
S&P 500 E Mini Index
Futures June 2010 1 58,260 210
----
$472
====
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
44
[GRAPHIC]
GE GLOBAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
The GE Global Equity Fund was invested in the following categories at March 31,
2010 (unaudited):
PERCENTAGE (BASED
INDUSTRY ON MARKET VALUE)
-----------------------------------------------------------
Chemicals 7.10%
Diversified Financial Services 6.77%
Oil, Gas & Consumable Fuels 6.36%
Commercial Banks 4.96%
Metals & Mining 4.88%
Media 4.82%
Wireless Telecommunication Services 4.27%
Machinery 3.76%
Communications Equipment 3.72%
Capital Markets 3.47%
Specialty Retail 3.42%
Food Products 3.15%
Healthcare Equipment & Supplies 3.12%
Internet Software & Services 2.87%
Electronic Equipment, Instruments &
Components 2.87%
Energy Equipment & Services 2.76%
Healthcare Providers & Services 2.33%
Pharmaceuticals 2.33%
Computers & Peripherals 2.05%
Biotechnology 1.67%
Electrical Equipment 1.65%
Commercial Services & Supplies 1.39%
Beverages 1.32%
Software 1.32%
Consumer Finance 1.24%
Road & Rail 1.22%
Automobiles 1.14%
Textiles Apparel & Luxury Goods 1.00%
Marine 0.97%
Household Durables 0.94%
IT Services 0.93%
Industrial Conglomerates 0.90%
Semiconductors & Semiconductor Equipment 0.86%
Exchange Traded Funds 0.81%
Electric Utilities 0.76%
Hotels Restaurants & Leisure 0.74%
Construction & Engineering 0.68%
Food & Staples Retailing 0.68%
Tobacco 0.61%
Aerospace & Defense 0.57%
Insurance 0.57%
Distributors 0.46%
Life Sciences Tools & Services 0.33%
Diversified Telecommunication Services 0.26%
------
98.03%
------
PERCENTAGE (BASED
SHORT-TERM AND OTHER INVESTMENTS ON MARKET VALUE)
---------------------------------------------------
Short-Term 1.91%
Other Investments 0.06%
-------
1.97%
-------
100.00%
=======
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 45
[GRAPHIC]
GE International Equity Fund
[PHOTO]
Ralph R. Layman
President and Chief Investment
Officer - Public Equities
Ralph R. Layman
President and Chief Investment
Officer -- Public Equities
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 and Michael J. Solecki. 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 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 184.
Q.HOW DID THE GE INTERNATIONAL EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
AND MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE International Equity
Fund returned 3.39% for Class A shares, 3.00% for Class B shares, 3.26% for
Class C shares, 3.24% for Class R shares and 3.50% for Class Y shares. The
MSCI EAFE Index, the Fund's benchmark, returned 3.06% and the Fund's
Morningstar peer group of 832 Foreign Large Blend Funds returned an average
of 3.97% for the same period.
Q.WHAT MARKET CONDITIONS IMPACTED FUND PERFORMANCE?
A.In the aftermath of a substantial rally in the 6 months prior to October
2009, the markets entered a sustained period of reflection balancing
conflicting drivers of performance. Positives include signs of economic
recovery, attractive valuations, strong earnings, and plentiful cash.
Negatives include concerns about the removal of stimulus, lack of final
demand growth, high unemployment, and rising deficits.
Q.WHAT DOMESTIC OR WORLD EVENTS HAD A MAJOR IMPACT ON THE FINANCIAL MARKETS?
A.Despite enjoying a less-levered economy overall, Europe has underperformed
due to the unfolding debt crisis experienced by Greece, where fears of
contagion have knocked the Euro sharply. In addition, the over-leveraged UK
market has seen the Pound fall sharply, exacerbated by an impending election
where neither major party looks likely to win a large majority. Japan,
however, has rallied of late on expectations its currency will weaken, a
benefit for this export-led economy. Meanwhile, China continues to refocus on
domestic growth, reducing dependence on the now less reliable overseas
markets.
Q.WHICH STOCKS AND SECTORS SIGNIFICANTLY AFFECTED FUND PERFORMANCE?
A.Holdings in the materials sector made a substantial contribution to Fund
performance largely based on China's continued growth, including mining
companies (Rio Tinto & Vale, Brazil), fertilizers (Potash Corp.) and
specialty metals (Sumitomo Metal Industries). In addition, industrial stocks
performed well, driven by signs of economic recovery, and included Philips,
Siemens and China South Locomotive, a major provider of rolling stock for
China's fast-expanding rail system. Some negative attribution was seen from
holdings in consumer discretionary (Vivendi & Suzuki Motors) and IT (Taiwan
Semiconductor & Nintendo).
Q.DID THE WEIGHTINGS/COUNTRY ALLOCATION OF THE FUND CHANGE? WHY?
A.The most significant changes in the sector weightings of the Fund took place
as follows: reductions in utilities due to modest growth outlooks and high
regulations, consumer staples due to valuation and margin concerns, and
healthcare due to pipeline issues and the uncertainties surrounding US
healthcare reform. Increases were seen in materials due to the strong
economic growth in major consumer, China; in consumer discretionary and
industrials due to growing conviction concerning
46
[GRAPHIC]
[GRAPHIC]
GE International Equity Fund
the recovery; and in financials as the crisis moves steadily off-stage.
Q.WHAT WERE THE MAJOR BUYS AND SELLS FOR THE PERIOD, AND WHY?
A.Several holdings were increased in the financials sector reflecting growing
conviction that much of the crisis may be behind us. Names included Unicredit
SPA; Nomura Holdings; Santander Brasil (as a swap for a trim in the parent,
Santander Spain) and Deutsche Boerse. Japanese auto maker Suzuki was
increased in exchange for Toyota which has suffered image problems in the US
and elsewhere, and industrials, A P Moller Maersk (shipping) and Mitsubishi
Corp. were increased on economic recovery grounds. Several defensive stocks
including Roche, Shiseido (cosmetics), Danone (foods) and two utilities (E.On
and Veolia) were reduced on valuation and outlook grounds.
[GRAPHIC] 47
[GRAPHIC]
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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds. Please note that the expenses shown in the
table do not reflect any transaction costs, such as sales charges or redemption
fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,033.89 9.43
Class B 1,000.00 1,029.98 13.21
Class C 1,000.00 1,032.60 13.23
Class R 1,000.00 1,032.43 10.64
Class Y 1,000.00 1,035.02 8.17
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,015.54 9.35
Class B 1,000.00 1,011.85 13.09
Class C 1,000.00 1,011.85 13.09
Class R 1,000.00 1,014.36 10.55
Class Y 1,000.00 1,016.76 8.10
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 1.85% for Class A
Shares, 2.61% for Class B Shares, 2.61% for Class C Shares, 2.10% for Class R
Shares and 1.60% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 3.39% for Class A shares, 3.00% for Class B shares, 3.26% for Class
C shares, 3.24% for Class R shares and 3.50% for Class Y shares.
48
[GRAPHIC]
[GRAPHIC]
GE International Equity Fund
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing at least 80% of its net assets under normal circumstances in common
and preferred stocks and other types of equity securities. The Fund invests
primarily in companies in developed and emerging market countries outside the
United States.
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
-------------------------------------------------------------------------
Nestle S.A. (Regd.) 2.93% Siemens AG (Regd.) 2.27%
----------------------------- ------------------------------------------
Nomura Holdings Inc. 2.82% HSBC Holdings PLC 2.24%
----------------------------- ------------------------------------------
BNP Paribas 2.52% BHP Billiton PLC 2.16%
----------------------------- ------------------------------------------
Rio Tinto PLC (Regd.) 2.45% Mitsubishi UFJ Financial Group Inc. 2.08%
----------------------------- ------------------------------------------
Roche Holding AG 2.30% Reckitt Benckiser Group PLC 2.02%
----------------------------- ------------------------------------------
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Foreign Large Blend Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- ----
Number of Funds in peer group 832 815 465 255
------------------------------------------------------------------
Peer group average annual total return* 3.97% 52.99% 3.77% 0.19%
------------------------------------------------------------------
Morningstar Category in peer group: Foreign Large Blend
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Foreign Large Blend peer group consisting of 832, 815, 465 and 255 underlying
funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE International Equity MSCI EAFE Index With Load
------------------------ ----------------- -----------
03/00 10,000.00 10,000.00 9,425.00
09/00 8,765.94 8,829.27 8,261.90
09/01 6,018.33 6,296.13 5,672.28
09/02 4,797.70 5,318.41 4,521.83
09/03 5,430.09 6,701.64 5,117.86
09/04 6,563.72 8,181.43 6,186.31
09/05 8,225.98 10,291.81 7,752.98
09/06 9,819.78 12,263.79 9,255.14
09/07 13,207.31 15,313.17 12,447.89
09/08 9,594.50 10,643.24 9,042.81
09/09 9,253.64 10,987.44 8,721.56
03/10 9,567.24 11,323.92 9,017.12
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE International Equity
Fund 3.39% 52.98% 5.12% (0.44)% 03/02/94 9,567
With Load (2.56)% 44.18% 3.88% (1.03)% 9,017
MSCI EAFE Index 3.06% 54.44% 3.75% 1.25% 11,324
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
GE International Equity MSCI EAFE Index
------------------------ ----------------
03/00 10,000.00 10,000.00
09/00 8,735.14 8,829.27
09/01 5,946.99 6,296.13
09/02 4,707.59 5,318.41
09/03 5,276.76 6,701.64
09/04 6,330.38 8,181.43
09/05 7,874.37 10,291.81
09/06 9,358.57 12,263.79
09/07 12,586.99 15,313.17
09/08 9,143.87 10,643.24
09/09 8,819.02 10,987.44
03/10 9,117.89 11,323.92
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE International Equity
Fund 3.00% 51.89% 4.34% (0.92)% 03/02/94 9,118
With Load (1.00)% 47.89% 4.34% (0.92)%
MSCI EAFE Index 3.06% 54.44% 3.75% 1.25% 11,324
- --------------------------------------------------------------------------------
[GRAPHIC] 49
[GRAPHIC]
GE International Equity Fund
CLASS C SHARES
[CHART]
GE International Equity MSCI EAFE Index
----------------------- ---------------
03/00 10,000.00 10,000.00
09/00 8,730.99 8,829.27
09/01 5,949.48 6,296.13
09/02 4,705.36 5,318.41
09/03 5,299.12 6,701.64
09/04 6,362.88 8,181.43
09/05 7,913.63 10,291.81
09/06 9,376.37 12,263.79
09/07 12,520.62 15,313.17
09/08 9,032.71 10,643.24
09/09 8,645.22 10,987.44
03/10 8,927.01 11,323.92
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ----- ----- ------------ --------------
GE International Equity
Fund 3.26% 52.27% (5.95)% (1.13)% 09/30/99 8,927
With Load 2.26% 51.27% (5.95)% (1.13)%
MSCI EAFE Index 3.06% 54.44% 3.75% 1.25% 11,324
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
GE International Equity MSCI EAFE Index
----------------------- ---------------
01/08 10,000.00 10,000.00
03/08 10,019.23 10,036.54
06/08 9,802.88 9,810.49
09/08 7,774.04 7,793.49
12/08 5,973.29 6,238.45
03/09 5,065.21 5,369.03
06/09 6,327.08 6,734.48
09/09 7,482.82 8,045.53
12/09 7,713.35 8,220.79
03/10 7,725.46 8,291.92
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ----- --------- ------------ --------------
GE International Equity
Fund 3.24% 52.52% (10.88)% 01/29/08 7,725
MSCI EAFE Index 3.06% 54.44% (8.42)%* 8,292
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
GE International Equity MSCI EAFE Index
----------------------- ---------------
03/00 10,000.00 10,000.00
09/00 8,775.42 8,829.27
09/01 6,035.82 6,296.13
09/02 4,825.35 5,318.41
09/03 5,467.70 6,701.64
09/04 6,627.87 8,181.43
09/05 8,323.24 10,291.81
09/06 9,974.11 12,263.79
09/07 13,449.62 15,313.17
09/08 9,793.25 10,643.24
09/09 9,472.82 10,987.44
03/10 9,804.56 11,323.92
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE International Equity
Fund 3.50% 53.23% 5.41% (0.20)% 03/02/94 9,805
MSCI EAFE Index 3.06% 54.44% 3.75% 1.25% 11,324
[GRAPHIC]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
50
[GRAPHIC]
GE INTERNATIONAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE INTERNATIONAL EQUITY FUND
Portfolio Composition as a % of Market Value of $33,550 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Continental Europe 46.5%
United Kingdom 18.6%
Japan 15.7%
Emerging Asia 5.1%
Canada 3.9%
Pacific Rim 3.6%
Latin America 3.5%
United States 1.8%
Emerging Europe 1.3%
NUMBER
OF SHARES VALUE
COMMON STOCK -- 96.5%+
--------------------------------------------------------------
AUSTRALIA -- 2.3%
Brambles Ltd....................... 80,486 $ 543,713
Paladin Energy Ltd................. 50,239 182,142 (a)
Telstra Corporation Ltd............ 13,878 38,086
763,941
BRAZIL -- 2.7%
Banco Santander Brasil S.A......... 23,100 284,495
Petroleo Brasileiro S.A. ADR....... 7,015 277,724
Vale S.A. ADR...................... 12,607 349,970
912,189
CANADA -- 3.9%
Kinross Gold Corp.................. 5,192 88,892
Potash Corp of Saskatchewan
Inc............................... 5,469 653,768
Research In Motion Ltd............. 5,063 375,527 (a)
Suncor Energy Inc.................. 5,920 192,733
1,310,920
CHILE -- 0.4%
Sociedad Quimica y Minera de Chile
S.A. ADR (Series B)............... 3,229 120,732
CHINA -- 0.8%
China Mobile Ltd................... 8,999 86,575
China South Locomotive and Rolling
Stock Corp........................ 235,454 183,458
270,033
NUMBER
OF SHARES VALUE
DENMARK -- 1.1%
A P Moller-Maersk A/S (Series B). 38 $ 290,082
G4S PLC.......................... 22,299 88,760
378,842
FINLAND -- 0.5%
Nokia Oyj........................ 10,593 165,264 (a)
FRANCE -- 12.7%
AXA S.A.......................... 12,479 278,101
BNP Paribas...................... 10,983 845,002 (h)
Cie Generale d'Optique Essilor
International S.A............... 8,873 567,526
Credit Agricole S.A.............. 27,006 473,582
European Aeronautic Defence and
Space Company N.V............... 9,249 186,408
Groupe Danone.................... 3,338 201,442
Schneider Electric S.A........... 2,432 285,768
Total S.A........................ 9,248 537,829 (h)
Veolia Environnement............. 7,218 250,808
Vinci S.A........................ 4,497 265,514
Vivendi.......................... 15,863 425,313
4,317,293
GERMANY -- 9.8%
Adidas AG........................ 5,892 315,709
Bayer AG......................... 7,156 484,914
Daimler AG (Regd.)............... 5,190 244,772
Deutsche Boerse AG............... 6,647 493,594
E.ON AG.......................... 3,236 119,690
Linde AG......................... 4,021 480,641
Metro AG......................... 4,680 278,124
Siemens AG (Regd.)............... 7,579 760,419
ThyssenKrupp AG.................. 4,354 149,965
3,327,828
HONG KONG -- 1.3%
Esprit Holdings Ltd.............. 56,246 444,045
INDIA -- 0.3%
Larsen & Toubro Ltd.............. 2,973 108,027
IRELAND -- 0.8%
CRH PLC.......................... 10,915 272,933
ITALY -- 3.3%
ENI S.p.A........................ 12,897 303,123
Intesa Sanpaolo S.p.A............ 63,611 237,344 (a)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 51
GE INTERNATIONAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
Saipem S.p.A......................... 2,658 $ 103,041
UniCredit S.p.A...................... 165,214 489,018
1,132,526
JAPAN -- 15.6%
Daikin Industries Ltd................ 3,000 122,806
Mitsubishi Corp...................... 10,000 262,200
Mitsubishi Estate Company Ltd........ 19,982 327,188
Mitsubishi Heavy Industries Ltd...... 43,000 178,093
Mitsubishi UFJ Financial Group
Inc................................. 133,291 698,979 (h)
Nomura Holdings Inc.................. 128,329 946,262
Shiseido Company Ltd................. 3,998 86,857
Sony Financial Holdings Inc.......... 113 371,265 (a)
Sumitomo Metal Industries Ltd........ 213,005 645,124
Sumitomo Mitsui Financial
Group Inc........................... 2,516 83,202
Suzuki Motor Corp.................... 19,000 419,488
Taiyo Nippon Sanso Corp.............. 16,000 156,507
The Bank of Yokohama Ltd............. 53,369 261,590
Toyota Motor Corp.................... 5,824 233,421
Unicharm Corp........................ 162 15,656
Yamada Denki Company Ltd............. 6,210 458,572
5,267,210
MEXICO -- 0.3%
America Movil SAB de C.V. ADR
(Series L).......................... 2,225 112,006
NETHERLANDS -- 2.9%
Heineken N.V......................... 4,214 216,960
Koninklijke Ahold N.V................ 15,932 212,773
Koninklijke Philips Electronics N.V.. 17,273 554,853
984,586
RUSSIA -- 0.5%
Mobile Telesystems OJSC ADR.......... 2,824 156,732
SOUTH AFRICA -- 0.9%
MTN Group Ltd........................ 19,395 295,786
SOUTH KOREA -- 2.1%
KB Financial Group Inc............... 4,256 205,380
Samsung Electronics
Company Ltd......................... 690 498,847
704,227
NUMBER
OF SHARES VALUE
SPAIN -- 3.2%
Banco Santander S.A. (Regd.).... 48,594 $ 647,005 (h)
Iberdrola S.A................... 23,205 197,027
Telefonica S.A.................. 10,639 252,499
1,096,531
SWEDEN -- 0.8%
Hennes & Mauritz AB (Series B).. 2,032 132,446
Telefonaktiebolaget LM Ericsson
(Series B)..................... 14,374 151,989
284,435
SWITZERLAND -- 10.0%
ABB Ltd. (Regd.)................ 11,549 252,694 (a)
Credit Suisse Group AG (Regd.).. 7,935 409,736
Nestle S.A. (Regd.)............. 19,143 982,112 (h)
Novartis AG (Regd.)............. 6,643 359,431 (a)
Roche Holding AG................ 4,753 772,185 (a,h)
Syngenta AG..................... 1,230 342,163
Zurich Financial Services AG.... 1,018 261,427
3,379,748
TAIWAN -- 1.9%
Delta Electronics, Inc.......... 25,514 80,740
Taiwan Semiconductor
Manufacturing Company Ltd...... 250,037 484,202
Taiwan Semiconductor
Manufacturing Company Ltd.
ADR............................ 7,305 76,629
641,571
UNITED KINGDOM -- 18.4%
BG Group PLC.................... 21,961 379,931
BHP Billiton PLC................ 21,187 726,332
BP PLC.......................... 36,638 346,462
G4S PLC......................... 49,009 194,404
HSBC Holdings PLC............... 74,326 753,138
Lloyds Banking Group PLC........ 501,560 477,565 (h)
National Grid PLC............... 43,689 425,134
Prudential PLC.................. 51,159 424,877 (h)
Reckitt Benckiser Group PLC..... 12,368 678,586 (h)
Rio Tinto PLC (Regd.)........... 13,849 820,345
Tesco PLC....................... 72,911 481,602
The Capita Group PLC............ 21,503 246,755
Vodafone Group PLC.............. 120,199 277,141 (h)
6,232,272
TOTAL COMMON STOCK
(COST $29,677,309)............. 32,679,677
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
52
[GRAPHIC]
GE INTERNATIONAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
PREFERRED STOCK -- 0.8%
-------------------------------------------------------------
Fresenius SE.................... 1,480 $ 111,945
Volkswagen AG................... 1,018 93,529
Volkswagen AG................... 633 55,673 (a)
TOTAL PREFERRED STOCK
(COST $249,880)................ 261,147
-------------------------------------------------------------
RIGHT -- 0.0%*
-------------------------------------------------------------
Volkswagen AG
(COST $0)...................... 1,018 654 (a)
-------------------------------------------------------------
OTHER INVESTMENTS -- 0.0%*
-------------------------------------------------------------
GEI Investment Fund
(COST $19,294)................. 16,014 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $29,946,483)............. 32,957,492
-------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.7%
-------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $592,832)................ 592,832 (d,k)
TOTAL INVESTMENTS
(COST $30,539,315)............. 33,550,324
OTHER ASSETS AND LIABILITIES,
NET -- 1.0%.................... 322,269
-----------
NET ASSETS -- 100.0%............ $33,872,593
===========
OTHER INFORMATION
------------------------
The GE International Equity Fund had the following long futures contracts open
at March 31, 2010 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
-----------------------------------------------------------
DJ Euro Stoxx
50 Index
Futures June 2010 4 $154,307 $ (883)
FTSE 100
Index
Futures June 2010 1 85,106 (702)
-------
$(1,585)
=======
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 53
GE INTERNATIONAL EQUITY FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
The GE International Equity Fund was invested in the following categories at
March 31, 2010 (unaudited):
PERCENTAGE (BASED
INDUSTRY ON MARKET VALUE)
-----------------------------------------------------------
Commercial Banks 16.26%
Metals & Mining 8.29%
Oil, Gas & Consumable Fuels 6.62%
Chemicals 5.23%
Pharmaceuticals 4.82%
Capital Markets 4.04%
Insurance 3.98%
Industrial Conglomerates 3.92%
Food Products 3.53%
Semiconductors & Semiconductor Equipment 3.16%
Automobiles 3.12%
Specialty Retail 3.09%
Food & Staples Retailing 2.90%
Wireless Telecommunication Services 2.77%
Commercial Services & Supplies 2.46%
Household Products 2.07%
Communications Equipment 2.06%
Healthcare Equipment & Supplies 2.03%
Multi-Utilities 2.01%
Electrical Equipment 1.60%
Diversified Financial Services 1.47%
Media 1.27%
Construction & Engineering 1.11%
Machinery 1.08%
Real Estate Management & Development 0.98%
Electric Utilities 0.94%
Textiles Apparel & Luxury Goods 0.94%
Diversified Telecommunication Services 0.87%
Marine 0.86%
Construction Materials 0.81%
Trading Companies & Distributors 0.78%
Professional Services 0.74%
Beverages 0.64%
Aerospace & Defense 0.56%
Building Products 0.37%
Energy Equipment & Services 0.31%
Personal Products 0.26%
Electronic Equipment, Instruments &
Components 0.24%
------
98.19%
------
PERCENTAGE (BASED
SHORT-TERM AND OTHER INVESTMENTS ON MARKET VALUE)
---------------------------------------------------
Short-Term 1.77%
Other Investments 0.04%
-------
1.81%
-------
100.00%
=======
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
54
[GRAPHIC]
[GRAPHIC]
GE Total Return Fund (formerly GE Strategic Investment Fund)
[PHOTO]
Paul M. Colonna
President and Chief Investment
Officer - Fixed Income
Paul M. Colonna
President and Chief Investment
Officer -- Fixed Income
[PHOTO]
Ralph R. Layman
President and Chief Investment
Officer - Public Equities
Ralph R. Layman
President and Chief Investment
Officer -- Public Equities
[PHOTO]
Thomas R. Lincoln
Senior Vice President
Thomas R. Lincoln
Senior Vice President
[PHOTO]
Judith A. Studer
Chief Market Strategist
Judith A. Studer
Chief Market Strategist
[PHOTO]
Diane M. Wehner
Senior Vice President
Diane M. Wehner
Senior Vice President
The GE Total Return 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, including the full discretion to
allocate the GE Total Return Fund's assets to sub-adviser(s) retained by GEAM.
Each of the other portfolio managers is responsible for managing one of the
following sub-portfolios: U.S. equity, U.S. mid-cap equity, international
equity and fixed income. Mr. Lincoln manages the U.S. equity portion,
Ms. Wehner manages the U.S. mid-cap equity portion, Mr. Layman manages the
international equity portion and Mr. Colonna manages the fixed income portion,
each with a team of portfolio managers and analysts. GEAM has also retained
Urdang Securities Management, Inc. to act as sub-adviser to that portion of the
GE Total Return Fund's assets allocated to real estate-related investments. The
sub-portfolios underlying the Fund are managed independently of each other and
the portfolio managers and sub-adviser(s) have full discretion over their
particular sub-portfolio; however, the portfolio management team is
collaborative to ensure strict adherence to the Fund's objective. See Portfolio
managers' biographical information beginning on page 184.
Q.HOW DID THE GE TOTAL RETURN FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Total Return Fund
returned 6.17% for Class A shares, 5.79% for Class B shares, 5.71% for Class
C shares, 6.03% for Class R shares and 6.31% for Class Y shares. The Fund's
broad based benchmarks, the S&P 500 Index and the Barclays Capital U.S.
Aggregate Bond Index, returned 11.75% and 1.99%, respectively. The Fund's
Morningstar peer group of 1,205 U.S. Moderate Allocation Funds returned an
average of 7.75% for the same period.
Q.WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE AND WHAT MARKET CONDITIONS
IMPACTED THE PERFORMANCE OF THE FUND?
A.The performance of the GE Total Return Fund for the six-month period ended
March 31, 2010 was primarily driven by the Fund's equity overweight and
performance, its underweight position in fixed income, and an overweight in
cash.
Equity Market Overview
In the six-month period ended March 31, 2010, the U.S. and global economies
continued a gradual recovery which has, for the most part, been reflected by
further gains in U.S. stock prices. Each broad measure of U.S. equity market
performance achieved double-digit returns during the period with greater
breadth of performance across the market. In general, small and mid-cap
stocks outperformed large-caps, and lower quality companies outperformed
higher quality companies. This relative performance was a headwind for
portfolio managers that prioritize balance sheet quality, strong
[GRAPHIC] 55
[GRAPHIC]
GE Total Return Fund
capital management, experienced management, and market leadership. In the
second half of the period, as concerns about Greece's crumbling balance sheet
escalated, markets witnessed a rise in risk aversion which benefited U.S.
over non-U.S. stocks. Against this backdrop, the U.S. dollar advanced against
the euro. U.S. central bank reassurances that interest rates would remain low
also boosted investor confidence.
U.S. Equity
Improving corporate earnings bolstered equities, with revenues and earnings
broadly beating expectations in the fourth quarter of 2009. Investors cheered
as signs of end-market demand re-emerged, alongside cost-cutting measures.
The financial and cyclical sectors put up the best fourth quarter earnings
results, with greater earnings revisions among cyclical sectors versus
defensive sectors. Consistent with these results, the cyclical sectors
outperformed, while defensive sectors lagged. Energy was the only cyclical to
lag as tightening measures in Asian central banks put a question mark around
emerging market demand.
The unfolding corporate earnings recovery plants the seeds of hope for a
sustainable recovery. However, many questions remain about the durability of
the recovery. Investors may also be worried by the scope of government
intervention in the aftermath of the financial crisis and the ultimate cost
to taxpayers.
After last year's outperformance, an investment environment favoring
small-cap, low quality companies challenged performance in the first half of
this period since we generally focused on large-cap, high quality companies.
Holdings in the financials and consumer discretionary sectors were the key
drivers of underperformance. In consumer discretionary, the portfolio's
emphasis on the less cyclical media stocks hurt as investors flocked to
industries more leveraged to the improving employment and consumer spending
trends, e.g., retail, autos, and leisure. On the positive side, the
portfolio's telecom holdings significantly outperformed the S&P telecom
sector by over 18%.
Our process remained consistent as we continued to seek large-cap, high
quality companies that we felt had the potential to survive and grow market
share during a slow, gradual recovery. We continued to emphasize companies
with strong balance sheets and earnings stability over more cyclical or
leveraged opportunities. We reduced our financial sector overweight during
the period, and took advantage of relative weakness in energy to boost our
exposure to that sector, which we believe faces tremendous long-term
supply-demand imbalances. We also went from an underweight in materials to an
overweight position. At March 31, 2010, the Fund's largest overweights were
in technology and health care, and the largest underweights were in consumer
staples and industrials.
Valuations for many companies remain attractive, even after the strong
rebound that began a year ago in March 2009. While lower quality companies
have outperformed recently, we believe any future market rally will be
dominated by outperformance by market share winners with strong balance
sheets and management teams. Amid changing market conditions in the past six
months, we have maintained our bottom-up stock selection approach with focus
on a long-term investment horizon.
U.S. Mid-Cap Equity
Mid-cap equity performance in the fourth quarter of 2009 was dominated by
high quality growth stocks, during which the mid-cap equity portfolio
outperformed. However, the first quarter of 2010 saw a resurgence in stocks
of lower quality, more cyclical companies. Value style of investing
outperformed growth which was a disadvantage for the mid-cap equity portfolio
given its skew toward high quality growth-oriented companies. The portfolio
was underweight both the industrial and material sectors which outperformed
the market. In addition, the portfolio was invested in more defensive names
which underperformed their more
56
[GRAPHIC]
[GRAPHIC]
GE Total Return Fund
cyclical counterparts. The benefits of the overweight in the health care
sector, which was up nearly 20%, were more than offset by individual stock
performance. Despite an overweight in information technology, which
underperformed the market, stock selection in this sector benefitted
performance. The focus on secular growth companies in the utility sector also
contributed positively to performance.
International Equity
Following a substantial rally during the six months prior to October 2009,
the international equity markets entered a sustained period of reflection
balancing conflicting drivers of performance. Positives included signs of
economic recovery, attractive valuations, strong earnings, and plentiful
cash. Negatives included concerns about the removal of stimulus, lack of
final demand growth, high unemployment, and rising deficits.
Despite enjoying a less-levered economy overall, Europe has underperformed
due to the unfolding debt crisis experienced by Greece, where fears of
contagion have knocked the euro sharply. In addition, the overleveraged UK
market has seen the pound fall sharply, exacerbated by an impending election
where neither major party looks likely to win a large majority. Japan,
however, has rallied of late on expectations its currency will weaken, a
benefit for this export-led economy. Meanwhile, China continues to refocus on
domestic growth, reducing dependence on the now less reliable overseas
markets.
Holdings in the materials sector made a substantial contribution to
performance largely based on China's continued growth, including mining
companies, fertilizers, and specialty metals. In addition, industrial stocks
performed well, driven by signs of economic recovery. Some negative
attribution was seen from holdings in consumer discretionary and information
technology. The most significant changes in international equity sector
weightings were reductions in utilities due to modest growth outlooks and
high regulations, consumer staples due to valuation and margin concerns, and
health care due to pipeline issues and the uncertainties surrounding U.S.
health care reform. Several defensive stocks were also reduced on valuation
and outlook grounds. Increases were seen in materials due to the strong
economic growth in the major consumer, China, in consumer discretionary and
industrials due to growing conviction concerning the recovery, and in
financials reflecting growing conviction that much of the crisis may be
behind us.
U.S. Fixed Income
The U.S. economy and fixed income markets continued to improve over the six
months ending March 31, 2010 primarily from rebuilding of inventory and
public sector programs. Unemployment fell from its peak of 10.1% in October
2009 to 9.7% in March and inflation remained subdued posting a 1.3%
year-over-year year Personal Consumption Expenditures (PCE) Core Price Index
in February. The Federal Reserve kept its fed funds target at 0.0-0.25%
maintaining its intention to keep rates low for an extended period. In
February, however, the committee did raise the discount rate from 0.5% to
0.75%. Fed Chairman Bernanke explained the move was a "normalization" of bank
lending and should not be interpreted as a change in monetary policy.
Interest rates rose and the yield curve steepened during the period. U.S.
Treasury 2-year and 10-year note yields ended March at 1.02% and 3.83%,
respectively. Credit-related securities outperformed government securities,
including agency mortgage-backed bonds as yield spreads narrowed. Commercial
mortgage-backed securities performed best returning 12.68% followed by high
yield which returned 11.1%. U.S. Treasuries returned -0.2% due to the
increase in yields.
The primary drivers of fixed income performance relative to its benchmark
were duration positioning and sector allocation. Portfolio duration was held
shorter than the benchmark duration which contributed to positive excess
return as interest rates rose. In general, the
[GRAPHIC] 57
[GRAPHIC]
GE Total Return Fund
overweight allocation to investment grade corporate bonds and commercial
mortgage-backed securities plus the exposure to high yield and emerging
market debt added to the Fund's positive relative return. These sectors
outperformed government securities, which the portfolio was generally
underweight.
Interest rate futures were bought and sold for interest rate exposure and
duration management versus the index. Interest only (IO) collateralized
mortgage obligations (CMO), inverse interest only (IIO) CMO, and principal
only (PO) CMO securities were bought and sold for total return enhancement.
Q.WERE THERE ANY SIGNIFICANT CHANGES TO THE FUND DURING THE PERIOD?
A.During this period, we lowered the Fund's exposure to fixed income and cash
and increased its exposure to international equity, emerging markets equity,
and U.S. mid-cap equity. We reduced exposure to U.S. large-cap growth equity
and increased our allocation to U.S. core equity to increase diversification.
At the end of the period, the Fund was underweight in fixed income and
overweight in equities and cash.
58
[GRAPHIC]
[GRAPHIC]
GE Total Return 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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,061.72 6.01
Class B 1,000.00 1,057.85 9.90
Class C 1,000.00 1,057.06 9.85
Class R 1,000.00 1,060.27 7.35
Class Y 1,000.00 1,063.07 4.73
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,018.92 5.89
Class B 1,000.00 1,015.19 9.70
Class C 1,000.00 1,015.24 9.65
Class R 1,000.00 1,017.64 7.19
Class Y 1,000.00 1,020.14 4.63
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 1.13% for Class A
Shares, 1.89% for Class B Shares, 1.88% for Class C Shares, 1.39% for Class R
Shares and 0.88% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 6.17% for Class A shares, 5.79% for Class B shares, 5.71% for Class
C shares, 6.03% for Class R shares and 6.31% for Class Y shares,.
[GRAPHIC] 59
[GRAPHIC]
GE Total Return Fund
INVESTMENT PROFILE
A mutual fund designed for investors who seek to maximize total return by
investing primarily in a combination of U.S. and foreign equity and debt
securities and cash.
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
- --------------------------------------------------------------------------------------
Federal National Mortgage Assoc. 0.95% NII Holdings, Inc. 0.78%
5.50%, 03/01/14-12/01/38
- ---------------------------------------- --------------------------------------------
Microsoft Corp. 0.88% U.S. Treasury Notes 0.15%, 11/30/2011 0.78%
- ---------------------------------------- --------------------------------------------
Federal National Mortgage Assoc. 0.87% Cisco Systems, Inc. 0.76%
4.50%, 05/01/18-02/01/40
- ---------------------------------------- --------------------------------------------
Amgen Inc. 0.83% U.S. Treasury Bonds 4.38%, 11/15/2039 0.75%
- ---------------------------------------- --------------------------------------------
PepsiCo, Inc. 0.78% Nestle S.A. (Regd.) 0.67%
- ---------------------------------------- --------------------------------------------
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Moderate Allocation Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- ----
Number of Funds in peer group 1205 1163 771 440
------------------------------------------------------------------
Peer group average annual total return* 9.16% 45.69% 5.14% 3.97%
------------------------------------------------------------------
Morningstar Category in peer group: Moderate Allocation
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Moderate Allocation peer group consisting of 1205, 1163, 771 and 440
underlying funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
Barclays
Capital U.S.
GE Total Return S&P 500 Aggregate
Investment Index Bond Index With Load
--------------- --------- ------------- ----------
03/00 10,000.00 10,000.00 10,000.00 9,425.00
09/00 10,063.69 9,618.91 10,480.88 9,485.03
09/01 9,126.77 7,054.65 11,838.46 8,601.98
09/02 8,444.51 5,609.16 12,856.15 7,958.95
09/03 9,907.52 6,980.03 13,551.64 9,337.84
09/04 10,694.40 7,948.37 14,050.07 10,079.47
09/05 11,646.33 8,922.16 14,442.78 10,976.66
09/06 12,812.48 9,885.37 14,972.90 12,075.76
09/07 15,251.16 11,510.75 15,741.88 14,374.22
09/08 12,678.97 8,981.17 16,316.81 11,949.93
09/09 12,349.11 8,360.79 18,039.33 11,639.04
03/10 13,111.28 9,343.22 18,398.06 12,357.38
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Total Return Fund 6.17% 30.62% 3.10% 2.75% 01/05/93 13,111
With Load 0.07% 23.11% 1.89% 2.14% 12,357
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Barclays Capital U.S.
Aggregate Bond
Index 1.99% 7.69% 5.44% 6.29% 18,398
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
Barclays Capital
GE Total Return U.S. Aggregate
Investment S&P 500 Index Bond Index
----------------- --------------- -----------------
03/00 10,000.00 10,000.00 10,000.00
09/00 10,026.86 9,618.91 10,480.88
09/01 9,023.75 7,054.65 11,838.46
09/02 8,284.99 5,609.16 12,856.15
09/03 9,648.08 6,980.03 13,551.64
09/04 10,338.19 7,948.37 14,050.07
09/05 11,178.28 8,922.16 14,442.78
09/06 12,250.65 9,885.37 14,972.90
09/07 14,582.39 11,510.75 15,741.88
09/08 12,122.99 8,981.17 16,316.81
09/09 11,807.60 8,360.79 18,039.33
03/10 12,536.35 9,343.22 18,398.06
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Total Return Fund 5.79% 29.64% 2.33% 2.29% 12/22/93 12,536
With Load 1.79% 25.64% 2.33% 2.29%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Barclays Capital U.S.
Aggregate Bond
Index 1.99% 7.69% 5.44% 6.29% 18,398
- --------------------------------------------------------------------------------
60
[GRAPHIC]
[GRAPHIC]
GE Total Return Fund
CLASS C SHARES
[CHART]
Barclays Capital
GE Total Return U.S. Aggregate
Investment S&P 500 Index Bond Index
--------------- ------------- ----------------
03/00 10,000.00 10,000.00 10,000.00
09/00 10,027.09 9,618.91 10,480.88
09/01 9,023.98 7,054.65 11,838.46
09/02 8,282.69 5,609.16 12,856.15
09/03 9,659.56 6,980.03 13,551.64
09/04 10,348.83 7,948.37 14,050.07
09/05 11,189.03 8,922.16 14,442.78
09/06 12,215.99 9,885.37 14,972.90
09/07 14,434.70 11,510.75 15,741.88
09/08 11,910.87 8,981.17 16,316.81
09/09 11,514.51 8,360.79 18,039.33
03/10 12,171.57 9,343.22 18,398.06
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Total Return Fund 5.71% 29.61% 2.32% 1.98% 09/30/99 12,172
With Load 4.71% 28.61% 2.32% 1.98%
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Barclays Capital U.S.
Aggregate Bond Index 1.99% 7.69% 5.44% 6.29% 18,398
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
Barclays Capital
GE Total Return U.S. Aggregate
Investment S&P 500 Index Bond Index
--------------- ------------- ----------------
01/29/08 10,000.00 10,000.00 10,000.00
03/08 9,851.33 9,633.37 10,047.99
06/08 9,781.37 9,370.68 9,945.49
09/08 8,801.92 8,586.36 9,896.91
12/08 7,309.35 6,702.23 10,350.12
03/09 6,955.36 5,964.19 10,362.11
06/09 7,759.01 6,914.23 10,546.81
09/09 8,548.30 7,993.26 10,941.70
12/09 8,826.66 8,475.94 10,963.93
03/10 9,063.52 8,932.50 11,159.29
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ----- --------- ------------ --------------
GE Total Return Fund 6.03% 30.31% (4.14)% 01/29/08 9,064
S&P 500 Index 11.75% 49.77% (3.42)%* 8,932
Barclays Capital U.S.
Aggregate Bond Index 1.99% 7.69% 4.95%* 11,159
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
Barclays Capital
GE Total Return U.S. Aggregate
Investment S&P 500 Index Bond Index
--------------- ------------- ----------------
03/00 10,000.00 10,000.00 10,000.00
09/00 10,074.85 9,618.91 10,480.88
09/01 9,158.30 7,054.65 11,838.46
09/02 8,492.62 5,609.16 12,856.15
09/03 9,991.50 6,980.03 13,551.64
09/04 10,812.65 7,948.37 14,050.07
09/05 11,807.76 8,922.16 14,442.78
09/06 13,109.58 9,885.37 14,972.90
09/07 15,641.01 11,510.75 15,741.88
09/08 13,036.27 8,981.17 16,316.81
09/09 12,725.29 8,360.79 18,039.33
03/10 13,527.88 9,343.22 18,398.06
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ----- ------------ --------------
GE Total Return Fund 6.31% 30.89% 3.50% 3.07% 11/29/93 13,528
S&P 500 Index 11.75% 49.77% 1.92% (0.68)% 9,343
Barclays Capital U.S.
Aggregate Bond Index 1.99% 7.69% 5.44% 6.29% 18,398
[GRAPHIC]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
[GRAPHIC] 61
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE TOTAL RETURN FUND
Portfolio Composition as a % of Market Value of $132,518 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Domestic Equity 34.2%
Foreign Equity 29.4%
Bonds and Notes 20.2%
Short-Term 16.0%
Other Investments 0.2%
NUMBER
OF SHARES VALUE
DOMESTIC EQUITY -- 33.9%+
-------------------------------------------------------------
AEROSPACE & DEFENSE -- 0.8%
Alliant Techsystems, Inc....... 2,558 $ 207,965 (a)
Hexcel Corp.................... 15,513 224,007 (a,h)
Honeywell International Inc.... 4,442 201,089
ITT Corp....................... 5,631 301,878
Rockwell Collins, Inc.......... 1,555 97,327
1,032,266
BEVERAGES -- 1.0%
Coca-Cola Enterprises, Inc..... 6,375 176,333
Molson Coors Brewing Co.
(Class B)..................... 1,961 82,480
PepsiCo, Inc................... 15,675 1,037,058
1,295,871
BIOTECHNOLOGY -- 1.6%
Alexion Pharmaceuticals, Inc... 1,052 57,197 (a)
Amgen Inc...................... 18,378 1,098,269 (a,h)
Gilead Sciences, Inc........... 16,200 736,776 (a)
Vertex Pharmaceuticals Inc..... 4,234 173,044 (a)
2,065,286
CAPITAL MARKETS -- 2.0%
Affiliated Managers Group Inc.. 3,171 250,509 (a)
Ameriprise Financial, Inc...... 4,148 188,153
Invesco Ltd.................... 8,508 186,410
Morgan Stanley................. 3,256 95,368
State Street Corp.............. 17,087 771,307 (e)
NUMBER
OF SHARES VALUE
The Bank of New York Mellon
Corp........................... 7,255 $ 224,034
The Charles Schwab Corp......... 5,363 100,235
The Goldman Sachs Group, Inc.... 5,114 872,602
2,688,618
CHEMICALS -- 0.9%
Intrepid Potash, Inc............ 4,768 144,613 (a)
Monsanto Co..................... 6,987 499,011
Praxair, Inc.................... 6,565 544,895
1,188,519
COMMERCIAL BANKS -- 0.3%
Regions Financial Corp.......... 17,345 136,159
SunTrust Banks, Inc............. 3,262 87,389
US Bancorp...................... 4,071 105,357
Zion's Bancorporation........... 2,240 48,877
377,782
COMMERCIAL SERVICES & SUPPLIES -- 0.6%
Corrections Corporation of
America........................ 20,931 415,690 (a)
Iron Mountain Inc............... 8,786 240,736
Stericycle, Inc................. 1,275 69,487 (a)
725,913
COMMUNICATIONS EQUIPMENT -- 1.6%
Cisco Systems, Inc.............. 38,567 1,003,899 (a)
Juniper Networks, Inc........... 7,380 226,418 (a)
QUALCOMM Inc.................... 19,701 827,245
2,057,562
COMPUTERS & PERIPHERALS -- 1.0%
Apple Inc....................... 1,175 276,043 (a)
Hewlett-Packard Co.............. 5,848 310,821
International Business Machines
Corp........................... 3,997 512,615
Synaptics Inc................... 7,687 212,238 (a)
1,311,717
DIVERSIFIED FINANCIAL SERVICES -- 1.4%
Bank of America Corp............ 31,611 564,256
CME Group Inc................... 2,465 779,211
JPMorgan Chase & Co............. 9,092 406,867
MSCI Inc. (Class A)............. 3,266 117,903 (a)
1,868,237
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
62
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.3%
AT&T Inc....................... 8,515 $ 220,028
Verizon Communications Inc..... 3,702 114,836
334,864
ELECTRIC UTILITIES -- 0.6%
Edison International........... 5,183 177,103
Entergy Corp................... 1,111 90,380
ITC Holdings Corp.............. 5,504 302,720
Northeast Utilities............ 10,183 281,458
851,661
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.2%
Cogent, Inc.................... 9,896 100,939 (a)
Corning Inc.................... 6,774 136,903
237,842
ENERGY EQUIPMENT & SERVICES -- 1.1%
Dresser-Rand Group Inc......... 4,903 154,052 (a)
Halliburton Co................. 5,663 170,626
Nabors Industries Ltd.......... 1,606 31,526 (a)
National Oilwell Varco, Inc.... 1,296 52,592
Noble Corp..................... 3,825 159,962
Schlumberger Ltd............... 12,578 798,200
Weatherford International Ltd.. 8,699 137,966 (a)
1,504,924
FOOD & STAPLES RETAILING -- 0.0%*
Safeway Inc.................... 1,406 34,953
FOOD PRODUCTS -- 0.5%
Archer-Daniels-Midland Co...... 3,330 96,237
Kraft Foods Inc. (Class A)..... 5,477 165,624
McCormick & Company Inc........ 7,831 300,397 (h)
Mead Johnson Nutrition Co.
(Class A)..................... 2,650 137,879
700,137
GAS UTILITIES -- 0.1%
EQT CORP....................... 2,175 89,175
HEALTHCARE EQUIPMENT & SUPPLIES -- 1.7%
Baxter International Inc....... 7,148 416,014
Becton Dickinson & Co.......... 1,776 139,824
Covidien PLC................... 9,374 471,325
DENTSPLY International Inc..... 2,517 87,717
NUMBER
OF SHARES VALUE
Gen-Probe Inc................... 2,620 $ 131,000 (a)
Hologic, Inc.................... 9,333 173,034 (a)
Masimo Corp..................... 8,507 225,861
Medtronic, Inc.................. 6,019 271,036
ResMed, Inc..................... 5,645 359,304 (a)
2,275,115
HEALTHCARE PROVIDERS & SERVICES -- 1.1%
Cardinal Health, Inc............ 4,071 146,678
Catalyst Health Solutions, Inc.. 5,005 207,107 (a)
Express Scripts, Inc............ 6,547 666,223 (a)
McKesson Corp................... 890 58,491
Omnicare, Inc................... 3,330 94,206
Psychiatric Solutions, Inc...... 1,734 51,673 (a)
UnitedHealth Group, Inc......... 7,771 253,879 (a)
1,478,257
HOTELS RESTAURANTS & LEISURE -- 0.4%
Carnival Corp................... 6,436 250,232
Marriott International, Inc.
(Class A)...................... 1,511 47,627
Penn National Gaming, Inc....... 6,096 169,469 (a)
The Cheesecake Factory Inc...... 3,686 99,743 (a)
567,071
HOUSEHOLD DURABLES -- 0.1%
MDC Holdings, Inc............... 2,400 83,064
HOUSEHOLD PRODUCTS -- 0.5%
Clorox Co....................... 2,553 163,749
Kimberly-Clark Corp............. 1,296 81,492
The Procter & Gamble Co......... 6,697 423,719
668,960
INDUSTRIAL CONGLOMERATES -- 0.2%
McDermott International, Inc.... 2,895 77,933 (a)
Textron, Inc.................... 9,517 202,046
279,979
INSURANCE -- 1.3%
ACE Ltd......................... 8,178 427,710
AFLAC Inc....................... 5,701 309,507
AON Corp........................ 2,443 104,341
HCC Insurance Holdings, Inc..... 12,583 347,291
MetLife, Inc.................... 1,371 59,419
PartnerRe Ltd................... 1,036 82,590
Principal Financial Group, Inc.. 4,218 123,208
Prudential Financial, Inc....... 3,679 222,579
1,676,645
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 63
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
INTERNET SOFTWARE & SERVICES -- 0.5%
Equinix, Inc....................... 518 $ 50,422 (a)
Google Inc. (Class A).............. 781 442,835 (a)
MercadoLibre, Inc.................. 2,976 143,473 (a)
636,730
IT SERVICES -- 1.1%
Accenture PLC...................... 1,110 46,564
Cognizant Technology Solutions
Corp. (Class A)................... 2,864 146,007 (a)
Cybersource Corp................... 5,278 93,104 (a)
DST Systems, Inc................... 307 12,725
Paychex, Inc....................... 4,640 142,448
Telvent GIT S.A.................... 1,882 54,126
The Western Union Co............... 29,698 503,678
Visa, Inc. (Class A)............... 4,802 437,126
1,435,778
LIFE SCIENCES TOOLS & SERVICES -- 0.8%
Covance Inc........................ 3,899 239,360 (a)
Illumina, Inc...................... 4,630 180,107 (a)
Life Technologies Corp............. 1,258 65,756 (a)
Mettler-Toledo International, Inc.. 1,664 181,709 (a)
Thermo Fisher Scientific, Inc...... 6,405 329,473 (a)
996,405
MACHINERY -- 0.5%
Cummins Inc........................ 1,575 97,571
Deere & Co......................... 2,887 171,661
Eaton Corp......................... 2,036 154,268
Harsco Corp........................ 7,026 224,410
647,910
MEDIA -- 1.5%
DIRECTV (Class A).................. 12,266 414,714 (a)
Liberty Global, Inc. (Series C).... 12,547 362,482 (a)
Omnicom Group Inc.................. 12,392 480,933
Regal Entertainment Group
(Class A)......................... 11,660 204,866
The Walt Disney Co................. 4,071 142,119
Time Warner Inc.................... 12,027 376,084
1,981,198
METALS & MINING -- 0.5%
Allegheny Technologies Inc......... 5,890 318,001
Freeport-McMoRan Copper & Gold
Inc............................... 2,112 176,436
Steel Dynamics, Inc................ 7,649 133,628
628,065
NUMBER
OF SHARES VALUE
MULTILINE RETAIL -- 0.5%
Dollar General Corp........... 5,248 $ 132,512 (a)
Kohl's Corp................... 4,616 252,864 (a)
Target Corp................... 5,622 295,717
681,093
MULTI-UTILITIES -- 0.2%
Dominion Resources, Inc....... 5,182 213,032
SCANA Corp.................... 2,917 109,650
322,682
OIL, GAS & CONSUMABLE FUELS -- 1.6%
Apache Corp................... 2,893 293,639
Chesapeake Energy Corp........ 1,184 27,990
Chevron Corp.................. 3,811 288,988
Devon Energy Corp............. 2,221 143,099
Exxon Mobil Corp.............. 7,260 486,274 (h)
Hess Corp..................... 740 46,287
Marathon Oil Corp............. 8,686 274,825
Occidental Petroleum Corp..... 1,740 147,100
Peabody Energy Corp........... 2,546 116,352
Petrohawk Energy Corp......... 5,742 116,448 (a)
Pioneer Natural Resources Co.. 2,250 126,720
Southwestern Energy Co........ 2,186 89,014 (a)
2,156,736
PAPER & FOREST PRODUCTS -- 0.1%
Weyerhaeuser Co............... 1,480 67,000
PERSONAL PRODUCTS -- 0.1%
Alberto-Culver Co............. 3,466 90,636
Avon Products, Inc............ 2,072 70,179
160,815
PHARMACEUTICALS -- 0.7%
Abbott Laboratories........... 2,036 107,256
Bristol-Myers Squibb Co....... 9,513 253,997
Johnson & Johnson............. 4,440 289,488
Merck & Company Inc........... 556 20,767
Pfizer Inc.................... 12,954 222,161
893,669
PROFESSIONAL SERVICES -- 0.1%
HIS, Inc. (Class A)........... 3,122 166,933 (a)
REAL ESTATE INVESTMENT TRUSTS (REIT'S) -- 0.1%
Douglas Emmett, Inc. (REIT)... 5,291 81,323
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
64
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
SL Green Realty Corp. (REIT).... 1,575 $ 90,200
171,523
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.3%
CB Richard Ellis Group, Inc.
(Class A)...................... 28,623 453,674 (a,h)
ROAD & RAIL -- 0.1%
Union Pacific Corp.............. 2,368 173,574
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.9%
Hittite Microwave Corp.......... 5,081 223,412 (a)
Intel Corp...................... 21,005 467,572
KLA-Tencor Corp................. 668 20,655
Marvell Technology Group Ltd.... 13,374 272,562 (a)
Microchip Technology Inc........ 2,036 57,334
Nvidia Corp..................... 1,480 25,722 (a)
Texas Instruments Inc........... 4,405 107,790
1,175,047
SOFTWARE -- 2.0%
Activision Blizzard, Inc........ 18,203 219,528 (h)
ArcSight, Inc................... 1,245 35,047 (a)
Blackboard Inc.................. 3,101 129,188 (a)
Citrix Systems, Inc............. 3,917 185,940 (a)
Intuit, Inc..................... 6,749 231,761 (a)
Microsoft Corp.................. 39,650 1,160,555 (h)
Oracle Corp..................... 6,700 172,123
Rovi Corp....................... 14,057 521,936 (a)
2,656,078
SPECIALTY RETAIL -- 1.2%
Bed Bath & Beyond, Inc.......... 12,909 564,898 (a)
Lowe's Companies, Inc........... 27,523 667,158
O'Reilly Automotive, Inc........ 4,800 200,208 (a)
Urban Outfitters, Inc........... 2,648 100,703 (a)
1,532,967
TEXTILES APPAREL & LUXURY GOODS -- 0.2%
Coach, Inc...................... 5,518 218,071
NIKE, Inc. (Class B)............ 296 21,756
239,827
THRIFTS & MORTGAGE FINANCE -- 0.1%
People's United Financial, Inc.. 11,189 174,996
NUMBER
OF SHARES VALUE
TOBACCO -- 0.2%
Altria Group, Inc................ 1,112 $ 22,818
Philip Morris International Inc.. 3,885 202,642
225,460
TRADING COMPANIES & DISTRIBUTORS -- 0.1%
MSC Industrial Direct Co.
(Class A)....................... 1,725 87,492
WATER UTILITIES -- 0.1%
American Water Works Company,
Inc............................. 7,256 157,891
WIRELESS TELECOMMUNICATION SERVICES -- 1.1%
American Tower Corp. (Class A)... 7,207 307,090 (a)
NII Holdings, Inc................ 24,866 1,035,917 (a)
Syniverse Holdings, Inc.......... 6,696 130,371 (a)
1,473,378
TOTAL DOMESTIC EQUITY
(COST $39,738,370).............. 44,691,339
-------------------------------------------------------------
FOREIGN EQUITY -- 29.5%
-------------------------------------------------------------
COMMON STOCK -- 28.8%
AEROSPACE & DEFENSE -- 0.3%
CAE, Inc......................... 25,032 244,756
European Aeronautic Defence and
Space Company N.V............... 8,323 167,745
412,501
AUTOMOBILES -- 0.6%
Daimler AG (Regd.)............... 4,671 220,295
Maruti Suzuki India Ltd.......... 1,379 43,709
Suzuki Motor Corp................ 17,000 375,332
Toyota Motor Corp................ 5,206 208,652
847,988
BEVERAGES -- 0.2%
Anadolu Efes Biracilik Ve Malt
Sanayii AS...................... 512 5,382
Coca-Cola Icecek AS (Class C).... 5,593 47,398
Heineken N.V..................... 3,793 195,284
248,064
BUILDING PRODUCTS -- 0.1%
Daikin Industries Ltd............ 3,000 122,806
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 65
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
CAPITAL MARKETS -- 1.1%
Credit Suisse Group AG (Regd.)... 7,142 $ 368,788
Egyptian Financial Group-Hermes
Holding......................... 13,321 76,258
Mirae Asset Securities Company
Ltd............................. 1,025 51,637
Nomura Holdings Inc.............. 115,521 851,819
Yuanta Financial Holding
Company Ltd..................... 83,782 50,257
1,398,759
CHEMICALS -- 1.5%
Linde AG......................... 3,619 432,589
Potash Corp of Saskatchewan
Inc............................. 4,922 588,379
Potash Corp of Saskatchewan
Inc............................. 1,258 150,142
Sinofert Holdings Ltd............ 118,830 71,163
Sociedad Quimica y Minera de
Chile S.A. ADR (Series B)....... 4,447 166,273
SODIFF Advanced Materials
Company Ltd..................... 594 44,624
Syngenta AG...................... 1,107 307,947
Taiwan Fertilizer Company Ltd.... 23,998 76,699
Taiyo Nippon Sanso Corp.......... 15,000 146,725
1,984,541
COMMERCIAL BANKS -- 4.4%
Akbank TAS....................... 11,151 71,791
Axis Bank Ltd.................... 2,686 70,089 (a)
Banco Santander Brasil S.A....... 28,400 349,769
Banco Santander Chile ADR........ 465 31,722
Banco Santander S.A. (Regd.)..... 43,741 582,389
BNP Paribas...................... 9,886 760,601
China Construction Bank Corp..... 47,000 38,437
China Merchants Bank Company
Ltd............................. 24,125 65,247
Credit Agricole S.A.............. 24,307 426,252
Grupo Financiero Banorte SAB de
C.V. (Series O)................. 12,233 54,430
Halyk Savings Bank of Kazakhstan
JSC GDR......................... 1,605 17,494 (a)
HSBC Holdings PLC................ 66,899 677,881
Industrial & Commercial Bank of
China........................... 95,499 72,934
Intesa Sanpaolo S.p.A............ 57,260 213,647 (a)
Kasikornbank PCL................. 11,333 36,100
Kazkommertsbank GDR.............. 4,973 47,691 (a)
KB Financial Group Inc........... 5,985 288,817
Lloyds Banking Group PLC......... 421,951 401,764
Metropolitan Bank & Trust........ 48,900 54,105
Mitsubishi UFJ Financial Group
Inc............................. 119,441 626,349
NUMBER
OF SHARES VALUE
Raiffeisen International Bank
Holding AG (Regd.)............. 525 $ 25,005
Siam Commercial Bank PCL........ 11,778 32,782
Standard Bank Group Ltd......... 3,200 49,935
Sumitomo Mitsui Financial Group
Inc............................ 2,250 74,406
The Bank of Yokohama Ltd........ 46,702 228,912
UniCredit S.p.A................. 148,674 440,061
5,738,610
COMMERCIAL SERVICES & SUPPLIES -- 0.6%
Brambles Ltd.................... 72,444 489,386
G4S PLC......................... 44,111 174,975
G4S PLC......................... 20,071 79,891
744,252
COMMUNICATIONS EQUIPMENT -- 1.1%
Nokia Oyj....................... 9,535 148,758 (a)
Research In Motion Ltd.......... 9,844 727,964 (a)
Research In Motion Ltd.......... 4,558 338,071 (a)
Telefonaktiebolaget LM Ericsson
(Series B)..................... 12,936 136,783
ZTE Corp........................ 6,672 40,429
1,392,005
COMPUTERS & PERIPHERALS -- 0.1%
Asustek Computer Inc............ 22,262 38,765
HTC Corp........................ 7,143 83,445
122,210
CONSTRUCTION & ENGINEERING -- 0.5%
China Communications
Construction Company Ltd....... 14,148 13,374
China State Construction
International Holdings Ltd..... 86,023 33,569
Doosan Heavy Industries and
Construction Company Ltd....... 1,181 94,568
Empresas ICA SAB de C.V......... 18,678 47,963 (a)
Hyundai Development Co.......... 930 27,166
Larsen & Toubro Ltd............. 3,830 139,166
Murray & Roberts Holdings Ltd... 6,267 36,942
Vinci S.A....................... 4,048 239,004
631,752
CONSTRUCTION MATERIALS -- 0.2%
CRH PLC......................... 9,824 245,652
DIVERSIFIED CONSUMER SERVICES -- 0.0%
MegaStudy Company Ltd........... 38 6,264
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
66
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
DIVERSIFIED FINANCIAL SERVICES -- 0.4%
Deutsche Boerse AG............... 5,984 $ 444,360
Reliance Capital Ltd............. 1,400 23,575
467,935
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.2%
Telefonica S.A................... 9,576 227,271
Telekomunikasi Indonesia Tbk PT
(Series B)...................... 52,500 46,445
Telstra Corporation Ltd.......... 12,498 34,299
308,015
ELECTRIC UTILITIES -- 0.2%
E.ON AG.......................... 2,914 107,780
Iberdrola S.A.................... 20,887 177,345
285,125
ELECTRICAL EQUIPMENT -- 0.6%
ABB Ltd. (Regd.)................. 10,395 227,445 (a)
ABB Ltd. ADR..................... 8,886 194,070
Schneider Electric S.A........... 2,189 257,214
Wasion Group Holdings Ltd........ 29,973 21,308 (a)
Zhuzhou CSR Times Electric
Company Ltd..................... 21,375 40,412
740,449
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.2%
Delta Electronics, Inc........... 54,392 172,127
HON HAI Precision Industry
Company Ltd..................... 19,892 86,125
Prime View International Company
Ltd............................. 16,000 28,969
Samsung SDI Company Ltd.......... 240 30,121
317,342
ENERGY EQUIPMENT & SERVICES -- 0.7%
Saipem S.p.A..................... 2,393 92,768
Tesco Corp....................... 4,754 55,479 (a)
Transocean Ltd................... 8,300 716,954 (a)
865,201
FOOD & STAPLES RETAILING -- 0.7%
Alliance Global Group Inc........ 361,724 44,025 (a)
Koninklijke Ahold N.V............ 14,340 191,512
Metro AG......................... 4,213 250,371
Tesco PLC........................ 65,627 433,489
X5 Retail Group N.V. GDR......... 1,537 53,488 (a)
972,885
NUMBER
OF SHARES VALUE
FOOD PRODUCTS -- 1.0%
China Agri-Industries Holdings
Ltd............................ 30,000 $ 41,418
Cosan SA Industria e Comercio... 5,449 66,193 (a)
Groupe Danone................... 3,016 182,010
IOI Corp. Bhd................... 26,400 43,622 (a)
Nestle S.A. (Regd.)............. 17,230 883,968
Nestle S.A. ADR................. 1,407 72,038
Want Want China Holdings Ltd.... 37,679 26,689
1,315,938
HEALTHCARE EQUIPMENT & SUPPLIES -- 0.4%
Cie Generale d'Optique Essilor
International S.A.............. 7,986 510,793
HEALTHCARE PROVIDERS & SERVICES -- 0.0%*
Fleury S.A...................... 4,900 52,166 (a)
HOUSEHOLD DURABLES -- 0.1%
Desarrolladora Homex SAB de
C.V............................ 7,409 35,136 (a)
LG Electronics Inc.............. 1,070 108,754
Techtronic Industries Co........ 11,066 8,979
152,869
HOUSEHOLD PRODUCTS -- 0.5%
Reckitt Benckiser Group PLC..... 11,133 610,826
Unicharm Corp................... 162 15,656
626,482
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS -- 0.0%*
China WindPower Group Ltd....... 187,068 21,683 (a)
INDUSTRIAL CONGLOMERATES -- 1.0%
Chongqing Machinery & Electric
Company Ltd.................... 169,570 42,585 (a)
Koninklijke Philips Electronics
N.V............................ 15,548 499,442
MAX India Ltd................... 6,896 31,811 (a)
Siemens AG (Regd.).............. 6,822 684,467
Siemens AG ADR.................. 555 55,483
1,313,788
INSURANCE -- 1.0%
AXA S.A......................... 11,232 250,311
China Life Insurance Company
Ltd............................ 16,855 80,751
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 67
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
Prudential PLC................... 46,046 $ 382,413
Samsung Fire & Marine Insurance
Company Ltd..................... 280 44,916
Sony Financial Holdings Inc...... 101 331,839 (a)
Tong Yang Life Insurance......... 4,951 56,885 (a)
Zurich Financial Services AG..... 916 235,233
1,382,348
INTERNET SOFTWARE & SERVICES -- 0.4%
Baidu, Inc ADR................... 897 535,509 (a)
IT SERVICES -- 0.0%*
Infosys Technologies Ltd......... 510 29,706
Tata Consultancy Services Ltd.... 1,730 30,038
59,744
MACHINERY -- 0.3%
China South Locomotive and
Rolling Stock Corp.............. 291,686 227,273
Mitsubishi Heavy Industries Ltd.. 38,000 157,384
384,657
MARINE -- 0.2%
A P Moller-Maersk A/S (Series B). 35 267,180
MEDIA -- 0.4%
Focus Media Holding Ltd. ADR..... 3,948 72,090 (a)
Grupo Televisa S.A. ADR.......... 1,780 37,416
Vivendi.......................... 14,278 382,817
Zee Entertainment Enterprises
Ltd............................. 4,887 29,227
521,550
METALS & MINING -- 2.3%
Anglo American PLC............... 726 31,650 (a)
Antofagasta PLC.................. 4,973 78,453
Barrick Gold Corp................ 2,221 85,153
BHP Billiton PLC................. 19,070 653,757
China Molybdenum Company
Ltd............................. 27,000 22,707
Harmony Gold Mining Company
Ltd. ADR........................ 5,556 52,671
Hidili Industry International
Development Ltd................. 24,615 26,629 (a)
Impala Platinum Holdings Ltd..... 1,533 44,671
Kinross Gold Corp................ 4,673 80,006
Maanshan Iron & Steel............ 73,998 42,695 (a)
New World Resources N.V.
(Class A)....................... 8,721 102,590
NUMBER
OF SHARES VALUE
POSCO........................... 150 $ 69,999
Rio Tinto PLC (Regd.)........... 12,464 738,305
Sumitomo Metal Industries Ltd... 190,003 575,459
Tata Steel Ltd.................. 2,644 37,235
ThyssenKrupp AG................. 3,919 134,983
Vale S.A. ADR................... 11,343 314,882 (h)
3,091,845
MULTI-UTILITIES -- 0.5%
National Grid PLC............... 39,324 382,659
Veolia Environnement............ 6,498 225,790
608,449
OIL, GAS & CONSUMABLE FUELS -- 2.3%
BG Group PLC.................... 19,767 341,974
BP PLC.......................... 32,975 311,823
China Shenhua Energy Company
Ltd............................ 6,000 25,809
CNOOC Ltd....................... 37,000 60,708
ENI S.p.A....................... 11,608 272,827
Gazprom OAO ADR................. 6,795 159,479 (h)
LUKOIL ADR...................... 2,553 144,755
Paladin Energy Ltd.............. 45,219 163,942 (a)
PetroChina Company Ltd.......... 36,000 42,098
Petroleo Brasileiro S.A. ADR.... 10,844 429,314 (h)
Reliance Industries Ltd......... 1,140 27,284 (a)
Reliance Industries Ltd. GDR.... 1,320 63,624 (b)
Suncor Energy Inc............... 9,636 313,556
Suncor Energy Inc............... 5,328 173,460
Thai Oil PCL.................... 10,900 16,855
Total S.A....................... 8,324 484,092
3,031,600
PERSONAL PRODUCTS -- 0.0%*
Shiseido Company Ltd............ 2,647 57,507
PHARMACEUTICALS -- 1.1%
Bayer AG........................ 6,441 436,463
Novartis AG (Regd.)............. 5,979 323,504 (a)
Roche Holding AG................ 4,280 695,340 (a)
1,455,307
PROFESSIONAL SERVICES -- 0.2%
The Capita Group PLC............ 19,353 222,083
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.3%
Franshion Properties China Ltd.. 62,963 21,245
Glorious Property Holdings Ltd.
(REIT)......................... 56,218 23,748 (a)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
68
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
NUMBER
OF SHARES VALUE
Hung Poo Real Estate
Development Corp................ 13,909 $ 18,438
Mitsubishi Estate Company Ltd.... 16,982 278,066
Unitech Ltd...................... 17,694 29,086
370,583
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.1%
ASM Pacific Technology Ltd....... 4,183 39,434
Samsung Electronics Company
Ltd............................. 910 657,899
Taiwan Semiconductor
Manufacturing Company Ltd....... 277,483 537,352
Taiwan Semiconductor
Manufacturing Company Ltd.
ADR............................. 16,924 177,533
1,412,218
SOFTWARE -- 0.0%*
Shanda Interactive Entertainment
Ltd. ADR........................ 1,500 65,385 (a)
SPECIALTY RETAIL -- 0.7%
Esprit Holdings Ltd.............. 51,469 406,332
Hennes & Mauritz AB (Series B)... 1,794 116,933
Yamada Denki Company Ltd......... 5,590 412,789
936,054
TEXTILES APPAREL & LUXURY GOODS -- 0.2%
Adidas AG........................ 5,303 284,149
Ports Design Ltd................. 5,453 13,765
297,914
TRADING COMPANIES & DISTRIBUTORS -- 0.2%
Mitsubishi Corp.................. 10,000 262,200
TRANSPORTATION INFRASTRUCTURE -- 0.0%*
Dalian Port PDA Company Ltd...... 71,828 33,672
WIRELESS TELECOMMUNICATION SERVICES -- 0.9%
America Movil SAB de C.V. ADR
(Series L)...................... 1,985 99,925
China Mobile Ltd................. 16,996 163,509
Mobile Telesystems OJSC ADR...... 4,661 258,686
MTN Group Ltd.................... 23,484 358,147
Vodafone Group PLC............... 108,193 249,459
1,129,726
TOTAL COMMON STOCK
(COST $35,712,237).............. 37,971,606
NUMBER
OF SHARES VALUE
-----------------------------------------------------------
PREFERRED STOCK -- 0.7%
-----------------------------------------------------------
AUTOMOBILES -- 0.1%
Volkswagen AG.................. 569 $ 50,044 (a)
Volkswagen AG.................. 916 84,158
134,202
COMMERCIAL BANKS -- 0.1%
Itau Unibanco Banco Multiplo
S.A........................... 7,384 161,358
DIVERSIFIED FINANCIAL SERVICES -- 0.1%
Citigroup Capital XII.......... 2,025 51,982 (i)
ELECTRIC UTILITIES -- 0.0%*
Cia Energetica de Minas Gerais. 1,818 30,071
HEALTHCARE EQUIPMENT & SUPPLIES -- 0.1%
Fresenius SE................... 1,332 100,750
MEDIA -- 0.0%*
NET Servicos de Comunicacao
S.A........................... 2,536 33,109 (a)
METALS & MINING -- 0.2%
Cia Vale do Rio Doce........... 10,613 294,657
Usinas Siderurgicas de Minas
Gerais S.A.................... 492 16,794
311,451
OIL, GAS & CONSUMABLE FUELS -- 0.1%
Petroleo Brasileiro S.A........ 3,330 66,033
WIRELESS TELECOMMUNICATION SERVICES -- 0.0%*
Vivo Participacoes S.A......... 1,554 42,056
TOTAL PREFERRED STOCK
(COST $682,574)............... 931,012
-----------------------------------------------------------
RIGHTS -- 0.0%*
-----------------------------------------------------------
AUTOMOBILES -- 0.0%*
Volkswagen AG
(COST $0)..................... 916 589 (a)
TOTAL FOREIGN EQUITY
(COST $36,394,811)............ 38,903,207
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 69
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
BONDS AND NOTES -- 20.4%
--------------------------------------------------------------
U.S. TREASURIES -- 3.7%
U.S. Treasury Bonds
4.38% 11/15/39.............. $1,044,400 $ 987,611
4.50% 08/15/39.............. 129,400 124,952
U.S. Treasury Notes
0.05% 01/31/11.............. 136,000 136,552 (d)
0.15% 11/30/11.............. 1,032,600 1,031,188 (d)
1.00% 12/31/11.............. 719,100 720,532 (d)
1.13% 12/15/12.............. 498,500 494,177
1.25% 11/30/10.............. 41,100 41,352
2.25% 01/31/15.............. 289,500 286,356
3.38% 11/15/19.............. 811,700 783,227 (h)
3.63% 02/15/20.............. 94,000 92,399
4.50% 11/15/10.............. 13,000 13,339
4.63% 10/31/11.............. 191,000 202,594
4,914,279
AGENCY MORTGAGE BACKED -- 4.1%
Federal Home Loan Mortgage Corp.
4.50% 06/01/33 - 02/01/35... 17,149 17,313 (h)
5.00% 07/01/35.............. 55,801 57,847 (h)
5.50% 05/01/20 - 04/01/39... 472,245 500,779 (h)
6.00% 04/01/17 - 11/01/37... 360,535 388,898 (h)
6.50% 06/01/29.............. 12,874 14,209 (h)
7.00% 10/01/16 - 08/01/36... 33,529 37,465 (h)
7.50% 12/01/30 - 09/01/33... 12,573 14,364 (h)
8.00% 04/01/30 - 11/01/30... 2,994 3,458 (h)
9.00% 04/01/16 - 06/01/21... 2,395 2,680 (h)
Federal National Mortgage Assoc.
4.00% 05/01/19 - 06/01/19... 55,045 57,033 (h)
4.50% 05/01/18 - 02/01/40... 1,135,071 1,146,844 (h)
5.00% 07/01/20 - 04/01/39... 326,410 338,468 (h)
5.47% 04/01/37.............. 2,565 2,674 (i)
5.50% 03/01/14 - 12/01/38... 1,187,117 1,258,929 (h)
5.81% 03/01/37.............. 2,661 2,768 (i)
6.00% 07/01/14 - 08/01/35... 536,198 580,472 (h)
6.50% 01/01/15 - 08/01/34... 84,085 91,862 (h)
7.00% 10/01/16 - 12/01/33... 10,413 11,449 (h)
7.50% 09/01/13 - 03/01/34... 44,065 49,566 (h)
8.00% 12/01/11 - 11/01/33... 20,999 24,095 (h)
8.50% 07/01/30 - 05/01/31... 2,210 2,576 (h)
9.00% 04/01/16 - 12/01/22... 6,924 7,662 (h)
4.50% TBA................... 70,000 70,153 (c)
6.50% TBA................... 190,000 205,913 (c)
7.00% TBA................... 55,000 60,981 (c)
Government National Mortgage
Assoc.
4.50% 08/15/33 - 09/15/34... 87,717 89,591 (h)
5.00% 08/15/33.............. 24,850 26,038 (h)
6.00% 04/15/30 - 09/15/36... 41,201 44,491 (h)
6.50% 02/15/24 - 08/15/36... 130,139 141,831 (h)
7.00% 03/15/12 - 09/15/36... 43,742 47,990 (h)
8.00% 09/15/29 - 06/15/30... 264 305 (h)
PRINCIPAL
AMOUNT VALUE
8.50% 10/15/17............. $ 26,511 $ 29,091 (h)
9.00% 11/15/16 - 12/15/21.. 35,940 40,175 (h)
5,367,970
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.6%
Collateralized Mortgage Obligation
Trust (Class B)
0.85% 11/01/18............. 906 842 (d,f,h,r)
Federal Home Loan Mortgage Corp.
0.14% 09/25/43............. 280,591 1,697 (g,h,i,r)
0.63% 09/15/34............. 35,481 31,022 (d,f)
4.50% 10/15/16 - 03/15/19.. 99,855 6,726 (g,h,r)
5.00% 05/15/17 - 12/01/34.. 279,723 38,174 (g,h,r)
5.00% 05/15/38............. 32,601 32,578
5.50% 04/15/17 - 06/15/33.. 71,361 11,976 (g,h,r)
7.50% 01/15/16............. 2,119 2,152 (h)
7.50% 07/15/27............. 8,338 1,523 (g,h,r)
8.00% 04/15/20............. 397 429 (h)
8.00% 02/01/23 - 07/01/24.. 3,224 657 (g,h,r)
Federal Home Loan Mortgage STRIPS
11.36% 08/01/27............. 740 603 (d,f,h)
Federal National Mortgage Assoc.
1.20% 12/25/42............. 122,977 4,159 (g,h,i,r)
4.50% 05/25/18............. 12,150 435 (g,h,r)
5.00% 08/25/17 - 02/25/32.. 75,791 9,211 (g,h,r)
5.00% 10/25/35 - 08/25/38.. 85,091 82,339
5.50% 01/25/33............. 148,860 156,536
7.45% 08/25/16............. 13,106 564 (g,h,i,r)
16.07% 03/25/31............. 40,932 46,727 (h,i)
Federal National Mortgage Assoc.
(Class 1)
1.27% 11/01/34............. 57,243 48,527 (d,f,h)
4.50% 09/01/35 - 01/01/36.. 205,784 42,062 (g,r)
5.00% 05/25/38............. 74,920 14,732 (g,r)
Federal National Mortgage Assoc.
(Class 2)
4.50% 08/01/35............. 63,431 12,965 (g,r)
5.00% 03/25/38............. 73,739 13,564 (g,r)
5.50% 12/01/33............. 17,031 3,565 (g,r)
6.00% 05/25/36............. 52,109 9,448 (g,r)
7.50% 11/01/23............. 22,383 3,976 (g,h,r)
8.00% 08/01/23 - 07/01/24.. 7,236 1,527 (g,h,r)
8.50% 03/01/17 - 07/25/22.. 2,439 477 (g,h,r)
9.00% 05/25/22............. 1,182 275 (g,h,r)
Federal National Mortgage Assoc.
(Class B)
0.00% 12/25/22............. 1,171 1,037 (d,f,h)
Federal National Mortgage Assoc.
(Class H)
5.00% 10/25/22............. 22,591 2,048 (g,h,r)
Federal National Mortgage Assoc.
(Class K)
1008.00% 05/25/22............. 7 150 (g,h,r)
Federal National Mortgage Assoc.
REMIC
5.90% 11/25/39............. 212,926 21,262 (g,i,r)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
70
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Federal National Mortgage Assoc.
STRIPS
5.50% 11/25/39........ $ 531,197 $ 108,577 (g,r)
6.00% 09/01/35........ 87,776 14,959 (g,r)
727,501
ASSET BACKED -- 0.7%
Bear Stearns Asset Backed
Securities Trust (Class A)
0.62% 01/25/34........ 4,937 3,103 (h,i)
Chase Funding Mortgage Loan
Asset-Backed Certificates
0.75% 03/25/32........ 8,139 5,222 (h,i)
Countrywide Asset-Backed
Certificates
4.74% 10/25/35........ 27,626 23,400 (i)
5.31% 08/25/35........ 500,000 463,674 (h,i)
Mid-State Trust
7.54% 07/01/35........ 5,167 4,891 (h,q)
Popular ABS Mortgage Pass-
Through Trust
5.30% 11/25/35........ 25,000 19,712
Residential Asset Securities Corp.
0.75% 07/25/32........ 3,067 1,532 (h,i)
Saxon Asset Securities Trust
5.23% 08/25/35........ 484,880 423,013 (h,i)
Wells Fargo Home Equity Trust
3.97% 05/25/34........ 376 376 (h,i,q)
944,923
CORPORATE NOTES -- 8.3%
AES El Salvador Trust
6.75% 02/01/16........ 100,000 95,009 (b)
AES Panama S.A.
6.35% 12/21/16........ 10,000 10,084 (b)
Agilent Technologies Inc.
5.50% 09/14/15........ 24,000 25,727
Alliance One International, Inc.
10.00% 07/15/16........ 47,000 49,115 (b)
AMC Entertainment Inc.
8.75% 06/01/19........ 45,000 47,250 (h)
America Movil SAB de C.V.
5.00% 03/30/20........ 100,000 98,587 (b)
American Tower Corp.
4.63% 04/01/15........ 52,000 53,478
Amsted Industries Inc.
8.13% 03/15/18........ 46,000 46,000 (b)
Anadarko Petroleum Corp.
6.20% 03/15/40........ 32,000 31,485
Anheuser-Busch InBev
Worldwide Inc.
5.00% 04/15/20........ 68,000 68,209 (b)
5.38% 11/15/14........ 45,000 48,740 (b)
ARAMARK Corp.
8.50% 02/01/15........ 84,000 85,890
Arizona Public Service Co.
6.25% 08/01/16........ 20,000 21,552 (h)
PRINCIPAL
AMOUNT VALUE
AT&T Inc.
6.40% 05/15/38..... $ 136,000 $ 139,826 (h)
6.70% 11/15/13..... 50,000 57,054 (h)
Avis Budget Finance, Inc.
9.63% 03/15/18..... 34,000 35,530 (b)
Banco Mercantil del Norte S.A.
6.14% 10/13/16..... 8,000 7,922 (i)
Banco Nacional de
Desenvolvimento Economico e
Social
5.50% 07/12/20..... 100,000 99,000 (b)
Bank of America Corp.
4.50% 04/01/15..... 40,000 40,334
5.75% 12/01/17..... 180,000 184,549 (h)
6.50% 08/01/16..... 30,000 32,430
7.38% 05/15/14..... 15,000 16,868
BE Aerospace Inc.
8.50% 07/01/18..... 66,000 70,455
BlackRock, Inc.
5.00% 12/10/19..... 45,000 45,046
Boise Co-Issuer Co.
8.00% 04/01/20..... 32,000 32,000 (b)
Bombardier Inc.
7.75% 03/15/20..... 62,000 64,790 (b)
Boston Scientific Corp.
4.50% 01/15/15..... 20,000 19,167
6.00% 01/15/20..... 22,000 20,783
CA, Inc.
5.38% 12/01/19..... 56,000 56,604
6.13% 12/01/14..... 18,000 19,899
Calpine Corp.
7.25% 10/15/17..... 43,000 42,247 (b)
Cantor Fitzgerald LP
7.88% 10/15/19..... 36,000 36,077 (b)
Cargill Inc.
5.20% 01/22/13..... 62,000 65,955 (b,h)
6.00% 11/27/17..... 25,000 27,137 (b,h)
Case New Holland Inc.
7.75% 09/01/13..... 72,000 74,700 (b)
Cenovus Energy Inc.
4.50% 09/15/14..... 39,000 40,689 (b)
6.75% 11/15/39..... 35,000 37,960 (b)
Central American Bank for
Economic Integration
5.38% 09/24/14..... 40,000 40,000 (b)
Chesapeake Energy Corp.
7.25% 12/15/18..... 85,000 85,000
Cincinnati Bell Inc.
8.25% 10/15/17..... 64,000 64,800
8.75% 03/15/18..... 40,000 40,350
Citigroup, Inc.
5.00% 09/15/14..... 44,000 43,938
5.13% 05/05/14..... 43,000 43,935
6.38% 08/12/14..... 87,000 92,942
8.50% 05/22/19..... 139,000 162,239
City National Capital Trust I
9.63% 02/01/40..... 32,000 35,553
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 71
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Comcast Corp.
6.40% 03/01/40....... $ 34,000 $ 34,559
6.50% 01/15/15....... 35,000 39,398
Community Health Systems, Inc.
8.88% 07/15/15....... 66,000 68,310
Consolidated Edison Company of
New York Inc.
5.85% 04/01/18....... 18,000 19,700 (h)
6.65% 04/01/19....... 30,000 34,288
7.13% 12/01/18....... 78,000 92,026
Corp Nacional del Cobre de Chile
5.63% 09/21/35....... 6,000 5,771 (b)
Corp Pesquera Inca SAC
9.00% 02/10/17....... 5,000 5,050 (b)
COX Communications Inc.
6.25% 06/01/18....... 33,000 35,096 (b)
7.13% 10/01/12....... 9,000 10,059 (h)
Credit Suisse
6.00% 02/15/18....... 48,000 50,821 (h)
Credit Suisse AG
5.40% 01/14/20....... 48,000 48,375
Credit Suisse First Boston
International for CJSC The EXIM
of Ukraine
7.65% 09/07/11....... 100,000 99,250
Crown Castle Towers LLC
6.11% 01/15/40....... 32,000 33,473 (b)
CVS Caremark Corp.
5.75% 06/01/17....... 15,000 16,176
6.13% 09/15/39....... 54,000 53,669
DASA Finance Corp.
8.75% 05/29/18....... 68,000 72,760
Denbury Resources, Inc.
8.25% 02/15/20....... 32,000 33,920
DirecTV Financing Company Inc.
4.75% 10/01/14....... 28,000 29,252 (b)
5.88% 10/01/19....... 40,000 41,628 (b)
DIRECTV Holdings LLC
5.20% 03/15/20....... 40,000 39,380 (b)
DISH DBS Corp.
6.63% 10/01/14....... 39,000 39,293
Drummond Company Inc.
7.38% 02/15/16....... 24,000 23,400
Duke Energy Indiana Inc.
6.35% 08/15/38....... 38,000 40,518
El Paso Corp.
8.05% 10/15/30....... 33,000 32,943
Enel Finance International S.A.
5.13% 10/07/19....... 100,000 98,831 (b)
Exelon Corp.
4.90% 06/15/15....... 48,000 50,027
Exelon Generation Company LLC
5.20% 10/01/19....... 16,000 16,163
6.25% 10/01/39....... 44,000 44,493
Fibria Overseas Finance Ltd.
9.25% 10/30/19....... 100,000 114,000 (b)
Gaz Capital S.A.
9.25% 04/23/19....... 100,000 118,250
PRINCIPAL
AMOUNT VALUE
Genworth Financial Inc.
8.63% 12/15/16..... $ 32,000 $ 34,920
GlaxoSmithKline Capital Inc.
4.85% 05/15/13..... 42,000 45,524
Globo Comunicacao e
Participacoes S.A.
7.25% 04/26/22..... 100,000 105,250 (b,h)
Hartford Financial Services
Group Inc.
5.50% 03/30/20..... 68,000 66,974
HCA Inc.
8.50% 04/15/19..... 13,000 13,983 (b)
9.25% 11/15/16..... 74,000 78,671
Health Management Associates,
Inc.
6.13% 04/15/16..... 47,000 44,767
Holcim US Finance Sarl & Cie SCS
6.00% 12/30/19..... 65,000 67,502 (b)
Host Hotels & Resorts LP (REIT)
9.00% 05/15/17..... 65,000 70,200 (b)
HSBC Finance Corp.
5.00% 06/30/15..... 134,000 139,546 (h)
5.70% 06/01/11..... 100,000 104,184 (h)
6.75% 05/15/11..... 30,000 31,533
Icahn Enterprises LP
8.00% 01/15/18..... 42,000 40,477 (b)
IIRSA Norte Finance Ltd.
8.75% 05/30/24..... 114,663 125,556 (b,h)
Illinois Power Co.
9.75% 11/15/18..... 30,000 38,449
Ingles Markets Inc.
8.88% 05/15/17..... 74,000 77,330
Intelsat Subsidiary Holding
Company Ltd.
8.88% 01/15/15..... 34,000 35,105
Intergen N.V.
9.00% 06/30/17..... 75,000 77,250 (b)
International Paper Co.
7.50% 08/15/21..... 86,000 97,723
JP Morgan Chase Capital XXV
(Series Y)
6.80% 10/01/37..... 16,000 15,927 (h)
JPMorgan Chase & Co.
5.13% 09/15/14..... 66,000 69,722
JPMorgan Chase Bank
5.88% 06/13/16..... 22,000 23,668 (h)
JPMorgan Chase Capital XXVII
7.00% 11/01/39..... 51,000 52,046 (h)
KazMunaiGaz Finance Sub BV
11.75% 01/23/15..... 100,000 128,500 (b,h)
Kraft Foods Inc.
5.38% 02/10/20..... 55,000 55,900
Kreditanstalt fuer Wiederaufbau
3.50% 03/10/14..... 249,000 259,120 (h)
4.13% 10/15/14..... 61,000 64,001 (h)
4.50% 07/16/18..... 8,000 8,412
L-3 Communications Corp.
5.88% 01/15/15..... 40,000 40,700
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
72
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Lincoln National Corp.
8.75% 07/01/19..... $ 59,000 $ 72,144
Lloyds TSB Bank PLC
5.80% 01/13/20..... 100,000 97,569 (b)
Majapahit Holding BV
7.25% 10/17/11..... 100,000 105,875 (b,h)
7.75% 10/17/16..... 100,000 109,625 (b,h)
Merrill Lynch & Company Inc.
6.05% 08/15/12..... 31,000 33,108
6.88% 04/25/18..... 61,000 65,738
Midamerican Energy Holdings Co.
6.13% 04/01/36..... 40,000 40,301
Morgan Stanley
5.50% 01/26/20..... 100,000 97,814
5.63% 09/23/19..... 100,000 99,647 (h)
6.00% 04/28/15..... 67,000 71,771
7.30% 05/13/19..... 35,000 38,668
Motiva Enterprises LLC
6.85% 01/15/40..... 32,000 34,485 (b)
National Agricultural Cooperative
Federation
5.00% 09/30/14..... 33,000 34,191 (b)
Navistar International Corp.
8.25% 11/01/21..... 36,000 36,720
NET Servicos de Comunicacao S.A.
7.50% 01/27/20..... 100,000 105,500 (b)
New Communications Holdings Inc.
8.25% 04/15/17..... 20,000 20,350 (b)
Newfield Exploration Co.
6.88% 02/01/20..... 42,000 42,315
Newmont Mining Corp.
6.25% 10/01/39..... 55,000 54,998
News America Inc.
5.65% 08/15/20..... 25,000 26,341
6.65% 11/15/37..... 48,000 50,482
Nexen Inc.
6.20% 07/30/19..... 39,000 42,048
7.50% 07/30/39..... 42,000 47,909
Nextel Communications, Inc.
(series D)
7.38% 08/01/15..... 33,000 31,350
Nisource Finance Corp.
6.13% 03/01/22..... 32,000 33,387
Nomura Holdings Inc.
5.00% 03/04/15..... 16,000 16,355
6.70% 03/04/20..... 16,000 16,605
NRG Energy, Inc.
7.38% 02/01/16..... 75,000 74,437
Pacific Gas & Electric Co.
5.80% 03/01/37..... 30,000 29,768
Pacificorp
6.25% 10/15/37..... 2,000 2,124
PAETEC Holding Corp.
8.88% 06/30/17..... 13,000 13,357
8.88% 06/30/17..... 37,000 38,017 (b)
Pemex Finance Ltd.
9.03% 02/15/11..... 15,400 15,819 (h)
PRINCIPAL
AMOUNT VALUE
Pemex Project Funding Master Trust
6.63% 06/15/38......... $ 10,000 $ 9,695 (b)
Petroleos Mexicanos
4.88% 03/15/15......... 40,000 41,080 (b)
8.00% 05/03/19......... 10,000 11,725
Petroleum Company of Trinidad &
Tobago Ltd.
6.00% 05/08/22......... 100,000 94,000 (b)
Pioneer Natural Resources Co.
7.50% 01/15/20......... 66,000 67,907
Plains All American Pipeline LP
4.25% 09/01/12......... 53,000 55,064
Principal Financial Group, Inc.
8.88% 05/15/19......... 25,000 30,021
ProLogis (REIT)
6.88% 03/15/20......... 33,000 32,595
Prudential Financial, Inc.
3.63% 09/17/12......... 18,000 18,512
3.88% 01/14/15......... 49,000 48,908
5.15% 01/15/13......... 41,000 43,503
7.38% 06/15/19......... 35,000 40,138
QVC Inc.
7.50% 10/01/19......... 29,000 29,580 (b)
RailAmerica, Inc.
9.25% 07/01/17......... 68,000 72,505
Republic Services Inc.
5.00% 03/01/20......... 24,000 23,535 (b)
5.25% 11/15/21......... 32,000 31,634 (b)
5.50% 09/15/19......... 25,000 25,604 (b)
Roche Holdings Inc.
6.00% 03/01/19......... 34,000 37,574 (b)
Rockies Express Pipeline LLC
5.63% 04/15/20......... 94,000 92,544 (b)
RR Donnelley & Sons Co.
4.95% 04/01/14......... 49,000 49,246
RSHB Capital SA for OJSC Russian
Agricultural Bank
6.30% 05/15/17......... 100,000 103,740 (b)
SBA Telecommunications Inc.
8.00% 08/15/16......... 16,000 16,840 (b)
8.25% 08/15/19......... 22,000 23,430 (b)
Security Benefit Life Insurance
8.75% 05/15/16......... 25,000 15,000 (b)
Simon Property Group LP (REIT)
5.65% 02/01/20......... 64,000 62,441
6.75% 05/15/14......... 42,000 45,951
Solutia Inc.
7.88% 03/15/20......... 33,000 33,413
Southern Copper Corp.
7.50% 07/27/35......... 100,000 104,208
Talisman Energy Inc.
7.75% 06/01/19......... 40,000 47,662
Teachers Insurance & Annuity
Association of America
6.85% 12/16/39......... 39,000 42,305 (b)
Telecom Italia Capital S.A.
7.18% 06/18/19......... 86,000 92,846
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 73
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Tesoro Corp. (Series B)
6.63% 11/01/15............. $ 91,000 $ 87,133
The AES Corp.
8.00% 10/15/17 - 06/01/20.. 28,000 28,139
The Dow Chemical Co.
5.90% 02/15/15............. 38,000 41,140
8.55% 05/15/19............. 50,000 60,487
The Goldman Sachs Group Inc.
5.38% 03/15/20............. 34,000 33,686
The Kroger Co.
6.15% 01/15/20............. 60,000 65,133
The Travelers Companies, Inc.
5.80% 05/15/18............. 22,000 23,567
The Williams Companies, Inc.
7.88% 09/01/21............. 36,000 42,387
Ticketmaster Entertainment, Inc.
10.75% 08/01/16............. 250,000 278,750 (h)
Time Warner Cable Inc.
5.00% 02/01/20............. 38,000 37,467
6.75% 07/01/18............. 54,000 60,337
7.50% 04/01/14............. 32,000 36,943
Time Warner Inc.
5.88% 11/15/16............. 46,000 50,257
6.20% 03/15/40............. 34,000 33,565
Union Electric Co.
6.70% 02/01/19............. 48,000 53,098
USB Capital XIII Trust
6.63% 12/15/39............. 50,000 50,613
Vale Overseas Ltd.
6.88% 11/10/39............. 8,000 8,289
Valero Energy Corp.
6.13% 02/01/20............. 64,000 64,016
Vedanta Resources PLC
9.50% 07/18/18............. 100,000 110,500 (b)
Verizon Communications Inc.
6.35% 04/01/19............. 20,000 22,144 (h)
6.40% 02/15/38............. 20,000 20,751 (h)
6.90% 04/15/38............. 30,000 33,087 (h)
8.75% 11/01/18............. 46,000 57,707 (h)
Verizon Wireless Capital LLC
5.55% 02/01/14............. 12,000 13,114
7.38% 11/15/13............. 37,000 42,799
WEA Finance LLC
6.75% 09/02/19............. 36,000 38,415 (b,h)
7.50% 06/02/14............. 52,000 58,203 (b,h)
Williams Partners LP
5.25% 03/15/20............. 28,000 28,057 (b)
6.30% 04/15/40............. 49,000 48,692 (b)
Windstream Corp.
7.88% 11/01/17............. 14,000 13,790
Woodside Finance Ltd.
4.50% 11/10/14............. 77,000 78,891 (b)
Wyeth
5.50% 03/15/13............. 75,000 82,092
XL Capital Ltd.
5.25% 09/15/14............. 78,000 80,632
Xstrata Finance Canada Ltd.
5.80% 11/15/16............. 35,258 36,786 (b)
10,873,415
PRINCIPAL
AMOUNT VALUE
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.0%
Banc of America Commercial
Mortgage Inc.
5.63% 07/10/46..... $ 21,000 $ 21,291
Banc of America Commercial
Mortgage Inc. (Class A)
5.49% 02/10/51..... 15,625 14,835
5.66% 06/10/49..... 80,000 72,076
Banc of America Funding Corp.
5.48% 03/20/36..... 31,467 1,489 (h,i,q)
Banc of America Mortgage
Securities Inc. (Class B)
5.13% 01/25/36..... 31,486 1,864 (h,i,q)
Bear Stearns Commercial Mortgage
Securities
5.24% 12/11/38..... 35,000 30,595
5.33% 02/11/44..... 50,000 48,174
5.41% 03/11/39..... 35,000 35,700 (h,i)
5.46% 03/11/39..... 25,000 20,665 (i)
5.69% 06/11/50..... 60,000 59,381 (i)
5.72% 06/11/40..... 30,000 18,049 (i)
6.21% 11/11/17..... 40,000 22,609 (i)
Bear Stearns Commercial Mortgage
Securities (Class A)
5.46% 04/12/38..... 25,000 25,473 (i)
5.92% 06/11/50..... 30,000 25,377 (i)
Citigroup Commercial
Mortgage Trust
0.30% 04/15/22..... 106,072 93,512 (b,i)
Citigroup Commercial Mortgage
Trust. (Class A)
5.48% 10/15/49..... 30,000 18,855
Commercial Mortgage Pass
Through Certificates
0.33% 12/15/20..... 40,278 36,653 (b,i)
5.77% 06/10/46..... 80,000 82,583
Countrywide Commercial Mortgage
Trust
5.46% 07/12/46..... 70,000 58,650
Credit Suisse Mortgage Capital
Certificates (Class C)
5.65% 02/25/36..... 23,783 1,696 (h,i,q)
CS First Boston Mortgage Securities
Corp.
5.34% 10/25/35..... 38,606 4,247 (h,i,q)
Greenwich Capital Commercial
Funding Corp.
5.44% 03/10/39..... 151,000 146,847
5.60% 12/10/49..... 35,000 35,779
5.74% 12/10/49..... 158,000 153,584
GS Mortgage Securities Corp II
5.55% 04/10/38..... 120,000 120,604 (i)
Indymac INDA Mortgage Loan Trust
5.26% 01/25/36..... 53,148 404 (h,i,q)
Indymac INDA Mortgage Loan Trust
(Class B)
5.26% 01/25/36..... 63,511 3,100 (h,i,q)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
74
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
JP Morgan Chase Commercial
Mortgage Securities Corp.
5.34% 08/12/37..... $ 140,000 $ 145,552 (h,i)
5.50% 06/12/47..... 20,000 10,400 (h,i)
5.79% 02/12/51..... 20,000 19,953 (h,i)
6.07% 02/12/51..... 90,000 80,647 (h)
6.20% 02/12/51..... 15,000 2,723 (h,i,q)
JP Morgan Chase Commercial
Mortgage Securities Corp.
(Class A)
5.82% 06/15/49..... 186,000 178,355
5.90% 02/12/51..... 70,000 58,568 (h,i)
LB-UBS Commercial Mortgage
Trust
1.00% 01/15/36..... 513,219 23,960 (d,h,q)
1.99% 04/15/41..... 10,000 6,332 (d)
4.95% 09/15/30..... 30,000 30,430
5.66% 03/15/39..... 122,000 124,924 (i)
5.87% 09/15/45..... 80,000 78,750 (i)
LB-UBS Commercial Mortgage
Trust (Class B)
6.65% 07/14/16..... 28,000 28,860 (h,q)
LB-UBS Commercial Mortgage
Trust (Class F)
6.24% 07/15/40..... 30,000 4,271 (i,q)
LB-UBS Commercial Mortgage
Trust (Class X)
0.47% 12/15/39..... 661,447 8,171 (h,i,q)
Lehman Brothers Floating Rate
Commercial Mortgage Trust
0.53% 06/15/22..... 48,356 44,709 (b,i)
MASTR Alternative Loans Trust
5.00% 08/25/18..... 38,390 3,681 (g,h,q,r)
Morgan Stanley Capital I
5.16% 10/12/52..... 20,000 20,515 (i)
5.28% 12/15/43..... 31,000 32,112
5.36% 11/12/41..... 158,000 141,583 (h)
5.39% 11/12/41..... 88,000 54,373 (h,i)
5.45% 02/12/44..... 70,000 66,785 (i)
5.69% 04/15/49..... 100,000 91,710 (i)
5.71% 07/12/44..... 100,000 104,662 (h)
Puma Finance Ltd. (Class A)
0.63% 10/11/34..... 9,942 9,638 (h,i)
Residential Accredit Loans Inc.
6.00% 01/25/36..... 73,717 1,330 (h,q)
Structured Asset Securities Corp.
(Class X)
2.19% 02/25/28..... 26,357 -- **(i,q)
Wachovia Bank Commercial
Mortgage Trust
5.25% 12/15/43..... 60,000 59,854 (h)
Wachovia Bank Commercial
Mortgage Trust (Class A)
6.00% 06/15/45..... 20,000 13,179 (h,i)
Wells Fargo Mortgage Backed
Securities Trust
5.50% 01/25/36..... 63,996 9,092 (h,q)
PRINCIPAL
AMOUNT VALUE
Wells Fargo Mortgage Backed
Securities Trust (Class B)
5.50% 03/25/36..... $ 240,397 $ 49,789 (h,q)
2,659,000
SOVEREIGN BONDS -- 0.9%
Government of Argentina
2.50% 12/31/38..... 26,874 9,648
8.28% 12/31/33..... 8,722 6,542
Government of Belize
6.00% 02/20/29..... 10,200 7,038 (j)
Government of Brazil
8.00% 01/15/18..... 26,667 31,080 (h)
8.25% 01/20/34..... 33,000 42,075
Government of Dominican
9.04% 01/23/18..... 27,325 30,057
9.50% 09/27/11..... 21,408 22,371
Government of El Salvador
7.65% 06/15/35..... 10,000 10,525 (b)
Government of Hellenic Republic
6.25% 06/19/20..... 48,000 62,368
Government of Indonesia
11.63% 03/04/19..... 100,000 143,750 (b,h)
Government of Lebanon
4.00% 12/31/17..... 16,800 16,044
Government of Manitoba Canada
4.90% 12/06/16..... 35,000 37,846
Government of Panama
6.70% 01/26/36..... 30,000 31,875
Government of Peruvian
6.55% 03/14/37..... 23,000 24,610
Government of Philippines
6.50% 01/20/20..... 100,000 107,750 (h)
Government of Poland
6.38% 07/15/19..... 11,000 12,051
Government of Quebec Canada
7.50% 09/15/29..... 50,000 65,078
Government of South Africa
5.50% 03/09/20..... 100,000 100,875
Government of Turkey
5.63% 03/30/21..... 100,000 98,250
Government of Uruguay
6.88% 09/28/25..... 11,363 12,329
Government of Venezuela
1.25% 04/20/11..... 7,000 6,510 (i)
5.38% 08/07/10..... 44,000 43,780
10.75% 09/19/13..... 19,000 18,573
Hellenic Republic Government Bond
6.10% 08/20/15..... 149,000 200,932
Russian Foreign Bond - Eurobond
7.50% 03/31/30..... 18,566 21,399 (j)
United Mexican States
5.13% 01/15/20..... 20,000 20,200
1,183,556
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 75
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
MUNICIPAL BONDS AND NOTES -- 0.1%
American Municipal
Power-Ohio Inc.
6.05% 02/15/43...... $ 28,000 $ 26,918
Municipal Electric Authority
of Georgia
6.64% 04/01/57...... 51,000 50,585
New Jersey State Turnpike
Authority
7.41% 01/01/40...... 10,000 11,644
New Jersey Transportation Trust
Fund Authority
6.88% 12/15/39...... 10,000 10,280
99,427
TOTAL BONDS AND NOTES
(COST $26,784,605)............ 26,770,071
NUMBER
OF SHARES VALUE
--------------------------------------------------------------
EXCHANGE TRADED FUNDS -- 0.5%
--------------------------------------------------------------
Financial Select Sector SPDR
Fund........................... 8,946 $ 142,868 (p)
Industrial Select Sector SPDR
Fund........................... 17,434 544,464 (h,p)
TOTAL EXCHANGE TRADED FUNDS
(COST $766,864)................ 687,332
--------------------------------------------------------------
OTHER INVESTMENTS -- 0.2%
--------------------------------------------------------------
GEI Investment Fund
(COST $281,775)................ 233,873 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $103,966,425)............ 111,285,822
VALUE
---------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 16.1%
---------------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $21,232,447)........................... $ 21,232,447 (d,k)
TOTAL INVESTMENTS (COST $125,198,872)......... 132,518,269
LIABILITIES IN EXCESS OF OTHER ASSETS, NET --
(0.6)%....................................... (770,336)
------------
NET ASSETS -- 100.0%.......................... $131,747,933
============
OTHER INFORMATION
---------------------------------------------------------------------
The GE Total Return Fund had the following long futures contracts open at
March 31, 2010 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
--------------------------------------------------------------------
Russell 2000 Mini
Index Futures June 2010 43 $2,911,530 $(13,674)
S&P 500 Emini
Index Futures June 2010 130 7,573,800 27,523
S&P Mid Cap 400
Emini Index Futures June 2010 2 157,620 (1,056)
The GE Total Return Fund had the following short futures contracts open at
March 31, 2010 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
---------------------------------------------------------------------------
DJ Euro Stoxx 50
Index Futures June 2010 2 $ (77,154) $ (539)
German Euro Bobl Futures June 2010 1 (158,421) (437)
UK Long Gilt Bond Futures June 2010 2 (348,129) (585)
2 Yr. U.S.Treasury
Notes Futures June 2010 4 (867,813) (250)
5 Yr. U.S.Treasury
Notes Futures June 2010 7 (803,906) 2,817
10 Yr. U.S.Treasury Notes
Futures June 2010 42 (4,882,500) 16,107
-------
$29,906
=======
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
76
[GRAPHIC]
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
The GE Total Return Fund was invested in the following countries at March 31,
2010 (unaudited):
PERCENTAGE (BASED
COUNTRY ON MARKET VALUE)
-------------------------------------
United States 67.67%
United Kingdom 4.44%
Japan 3.59%
Switzerland 3.08%
France 2.93%
Germany 2.73%
Canada 2.25%
Brazil 1.69%
China 1.41%
South Korea 1.14%
Taiwan 0.96%
Italy 0.77%
Spain 0.74%
Netherlands 0.67%
Australia 0.58%
Russia 0.56%
India 0.50%
South Africa 0.49%
Hong Kong 0.41%
Mexico 0.34%
Indonesia 0.31%
Luxembourg 0.28%
Denmark 0.26%
Cayman Islands 0.23%
Greece 0.20%
Ireland 0.19%
Peru 0.19%
Sweden 0.19%
Turkey 0.17%
Philippines 0.16%
Chile 0.15%
Finland 0.11%
Czech Republic 0.08%
El Salvador 0.08%
Egypt 0.06%
Thailand 0.06%
Kazakhstan 0.05%
Venezuela 0.05%
Bermuda 0.04%
Dominican Republic 0.04%
Honduras 0.03%
Malaysia 0.03%
Panama 0.03%
Austria 0.02%
Argentina 0.01%
Belize 0.01%
Lebanon 0.01%
Poland 0.01%
-------
100.00%
=======
The GE Total Return Fund was invested in the following categories at March 31,
2010 (unaudited):
DOMESTIC FOREIGN TOTAL
PERCENTAGE PERCENTAGE PERCENTAGE
(BASED ON (BASED ON (BASED ON
INDUSTRY MARKET VALUE) MARKET VALUE) MARKET VALUE)
----------------------------------------------------------------
Commercial Banks 0.29% 4.45% 4.74%
Oil, Gas & Consumable
Fuels 1.63% 2.34% 3.97%
Capital Markets 2.03% 1.06% 3.09%
Metals & Mining 0.47% 2.57% 3.04%
Communications
Equipment 1.55% 1.05% 2.60%
Chemicals 0.90% 1.50% 2.40%
Insurance 1.27% 1.04% 2.31%
Healthcare
Equipment &
Supplies 1.72% 0.46% 2.18%
Software 2.00% 0.05% 2.05%
Wireless
Telecommunication
Services 1.11% 0.89% 2.00%
Semiconductors &
Semiconductor
Equipment 0.89% 1.06% 1.95%
Media 1.50% 0.41% 1.91%
Specialty Retail 1.16% 0.70% 1.86%
Diversified Financial
Services 1.45% 0.35% 1.80%
Energy Equipment &
Services 1.14% 0.65% 1.79%
Pharmaceuticals 0.67% 1.10% 1.77%
Biotechnology 1.56% 0.00% 1.56%
Food Products 0.53% 0.99% 1.52%
Industrial
Conglomerates 0.21% 0.99% 1.20%
Beverages 0.98% 0.19% 1.17%
Healthcare
Providers &
Services 1.12% 0.04% 1.16%
IT Services 1.08% 0.05% 1.13%
Commercial
Services & Supplies 0.55% 0.56% 1.11%
Aerospace & Defense 0.78% 0.31% 1.09%
Computers &
Peripherals 0.99% 0.09% 1.08%
Household Products 0.50% 0.47% 0.97%
Electric Utilities 0.64% 0.24% 0.88%
Internet Software &
Services 0.48% 0.40% 0.88%
Machinery 0.49% 0.29% 0.78%
Food & Staples
Retailing 0.03% 0.73% 0.76%
Life Sciences Tools &
Services 0.75% 0.00% 0.75%
Automobiles 0.00% 0.74% 0.74%
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 77
GE TOTAL RETURN FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
DOMESTIC FOREIGN TOTAL
PERCENTAGE PERCENTAGE PERCENTAGE
(BASED ON (BASED ON (BASED ON
INDUSTRY MARKET VALUE) MARKET VALUE) MARKET VALUE)
-----------------------------------------------------------------
Multi-Utilities 0.24% 0.46% 0.70%
Real Estate
Management &
Development 0.34% 0.28% 0.62%
Electrical Equipment 0.00% 0.56% 0.56%
Exchange Trade Fund 0.52% 0.00% 0.52%
Multiline Retail 0.51% 0.00% 0.51%
Diversified
Telecommunication
Services 0.25% 0.23% 0.48%
Construction &
Engineering 0.00% 0.48% 0.48%
Hotels Restaurants &
Leisure 0.43% 0.00% 0.43%
Electronic Equipment,
Instruments &
Components 0.18% 0.24% 0.42%
Textiles Apparel &
Luxury Goods 0.18% 0.22% 0.40%
Professional Services 0.13% 0.16% 0.29%
Trading Companies &
Distributors 0.07% 0.20% 0.27%
Marine 0.00% 0.20% 0.20%
Construction Materials 0.00% 0.19% 0.19%
Household Durables 0.06% 0.12% 0.18%
Tobacco 0.17% 0.00% 0.17%
Personal Products 0.12% 0.04% 0.16%
Real Estate
Investment Trusts
(REIT's) 0.13% 0.00% 0.13%
Road & Rail 0.13% 0.00% 0.13%
Thrifts & Mortgage
Finance 0.13% 0.00% 0.13%
Water Utilities 0.12% 0.00% 0.12%
Building Products 0.00% 0.09% 0.09%
Gas Utilities 0.07% 0.00% 0.07%
Paper & Forest
Products 0.05% 0.00% 0.05%
Transportation
Infrastructure 0.00% 0.03% 0.03%
Independent Power
Producers & Energy
Traders 0.00% 0.02% 0.02%
Diversified Consumer
Services 0.00% 0.00% 0.00%
----- ----- -----
34.30% 29.29% 63.59%
----- ----- -----
TOTAL PERCENTAGE
(BASED ON
SECTOR MARKET VALUE)
----------------------------------------------------------------
Corporate Notes 8.21%
Agency Mortgage Backed 4.05%
U.S. Treasuries 3.71%
Non-Agency Collateralized Mortgage Obligations 2.01%
Sovereign Bonds 0.89%
Asset Backed 0.71%
Agency Collateralized Mortgage Obligations 0.55%
Municipal Bonds and Notes 0.08%
-----
20.21%
-----
TOTAL PERCENTAGE
(BASED ON
SHORT-TERM AND OTHER INVESTMENTS MARKET VALUE)
--------------------------------------------------
Short-Term 16.02%
Other Investments 0.18%
-------
16.20%
-------
100.00%
=======
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
78
[GRAPHIC]
[GRAPHIC]
GE Government Securities Fund
[PHOTO]
William M. Healey
Senior Vice President
William M. Healey
Senior Vice President
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 184.
Q.HOW DID THE GE GOVERNMENT SECURITIES FUND PERFORM COMPARED TO ITS BENCHMARK
AND MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Government Securities
Fund returned 0.05% for Class A shares, -0.32% for Class B shares and -0.31%
for Class C shares. The Barclays Capital U.S. Government Bond Index, the
Fund's benchmark, returned 0.10% and the Fund's Morningstar peer group of 364
Intermediate Government Bond Funds returned an average of 1.72% for the same
period.
Q.DESCRIBE WHAT HAPPENED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDING MARCH 31, 2010.
A.The US economy and fixed income markets continued to improve over the
six-month period ending March 31, 2010, primarily from rebuilding of
inventory and public sector programs. Unemployment fell from its peak of
10.1% in October 2009 to 9.7% in March of 2010 and inflation remained subdued
posting 1.3% (year-over-year Personal Consumption Expenditures (PCE) Core
Price Index) in February of 2010. The Federal Reserve kept its fed funds
target at 0.0-0.25% maintaining its intention to keep interest rates low "for
an extended period." In February, however, the committee did raise the
discount rate from 0.5% to 0.75%. Fed Chairman Bernanke explained the move
was a "normalization" of bank lending and should not be interpreted as a
change in monetary policy. Interest rates rose and the yield curve steepened
during the period. US Treasury 2-year and 10-year note yields ended March at
1.02% and 3.83% respectively, up 7 and 52 basis points. Credit-related
securities outperformed government securities, including agency
mortgage-backed bonds as yield spreads narrowed. Commercial mortgaged-backed
securities performed best, returning 12.68% followed by high yield which
returned 11.1%. US treasuries lost -0.2% due to the increase in yields.
Q.WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A.The main driver behind Fund performance for the period was duration
management, more specifically, by positioning the Fund's duration short
relative to the benchmark as interest rates rose. The Fund also benefited
from exposure to investment grade credit securities, which provided higher
yield and better price performance.
[GRAPHIC] 79
[GRAPHIC]
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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,000.50 4.34
Class B 1,000.00 996.81 8.11
Class C 1,000.00 996.89 8.07
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.38 4.38
Class B 1,000.00 1,016.66 8.20
Class C 1,000.00 1,016.71 8.15
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 0.84% for Class A
Shares, 1.60% for Class B Shares and 1.59% for Class C Shares, (for the period
October 1, 2009 -- March 31, 2010), multiplied by the average account value
over the period, multiplied by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 0.05% for Class A shares, (0.32)% for Class B shares and (0.31)% for
Class C shares.
80
[GRAPHIC]
[GRAPHIC]
GE Government Securities Fund
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
under normal circumstances in U.S. Government securities.
- --------------------------------------------------------------------------------
FIVE YEAR TREASURY NOTE YIELD HISTORY
04/01/09 - 03/31/10
[CHART]
3/31/2009 1.66% High 2.92%
4/1/2009 1.64% Low 1.64%
4/2/2009 1.75% Average 2.34%
4/3/2009 1.85%
4/6/2009 1.89%
4/7/2009 1.85%
4/8/2009 1.83%
4/9/2009 1.89%
4/10/2009 1.89%
4/13/2009 1.80%
4/14/2009 1.72%
4/15/2009 1.70%
4/16/2009 1.77%
4/17/2009 1.89%
4/20/2009 1.80%
4/21/2009 1.86%
4/22/2009 1.89%
4/23/2009 1.88%
4/24/2009 1.94%
4/27/2009 1.84%
4/28/2009 1.94%
4/29/2009 2.03%
4/30/2009 2.01%
5/1/2009 2.01%
5/4/2009 2.02%
5/5/2009 2.05%
5/6/2009 2.05%
5/7/2009 2.17%
5/8/2009 2.14%
5/11/2009 2.02%
5/12/2009 2.01%
5/13/2009 1.98%
5/14/2009 1.96%
5/15/2009 2.00%
5/18/2009 2.10%
5/19/2009 2.10%
5/20/2009 2.03%
5/21/2009 2.14%
5/22/2009 2.20%
5/25/2009 2.20%
5/26/2009 2.30%
5/27/2009 2.44%
5/28/2009 2.44%
5/29/2009 2.34%
6/1/2009 2.52%
6/2/2009 2.49%
6/3/2009 2.42%
6/4/2009 2.59%
6/5/2009 2.83%
6/8/2009 2.92%
6/9/2009 2.87%
6/10/2009 2.92%
6/11/2009 2.85%
6/12/2009 2.78%
6/15/2009 2.72%
6/16/2009 2.67%
6/17/2009 2.68%
6/18/2009 2.84%
6/19/2009 2.80%
6/22/2009 2.70%
6/23/2009 2.67%
6/24/2009 2.71%
6/25/2009 2.58%
6/26/2009 2.56%
6/29/2009 2.52%
6/30/2009 2.55%
7/1/2009 2.51%
7/2/2009 2.42%
7/3/2009 2.42%
7/6/2009 2.39%
7/7/2009 2.35%
7/8/2009 2.23%
7/9/2009 2.32%
7/10/2009 2.22%
7/13/2009 2.26%
7/14/2009 2.35%
7/15/2009 2.51%
7/16/2009 2.45%
7/17/2009 2.50%
7/20/2009 2.46%
7/21/2009 2.34%
7/22/2009 2.40%
7/23/2009 2.53%
7/24/2009 2.53%
7/27/2009 2.59%
7/28/2009 2.60%
7/29/2009 2.63%
7/30/2009 2.63%
7/31/2009 2.51%
8/3/2009 2.66%
8/4/2009 2.70%
8/5/2009 2.72%
8/6/2009 2.71%
8/7/2009 2.82%
8/10/2009 2.75%
8/11/2009 2.67%
8/12/2009 2.68%
8/13/2009 2.55%
8/14/2009 2.51%
8/17/2009 2.41%
8/18/2009 2.46%
8/19/2009 2.41%
8/20/2009 2.41%
8/21/2009 2.56%
8/24/2009 2.48%
8/25/2009 2.44%
8/26/2009 2.44%
8/27/2009 2.47%
8/28/2009 2.45%
8/31/2009 2.39%
9/1/2009 2.32%
9/2/2009 2.27%
9/3/2009 2.30%
9/4/2009 2.35%
9/7/2009 2.35%
9/8/2009 2.39%
9/9/2009 2.36%
9/10/2009 2.28%
9/11/2009 2.30%
9/14/2009 2.37%
9/15/2009 2.40%
9/16/2009 2.44%
9/17/2009 2.36%
9/18/2009 2.45%
9/21/2009 2.45%
9/22/2009 2.42%
9/23/2009 2.37%
9/24/2009 2.37%
9/25/2009 2.37%
9/28/2009 2.33%
9/29/2009 2.34%
9/30/2009 2.31%
10/1/2009 2.18%
10/2/2009 2.21%
10/5/2009 2.21%
10/6/2009 2.24%
10/7/2009 2.17%
10/8/2009 2.22%
10/9/2009 2.35%
10/12/2009 2.35%
10/13/2009 2.29%
10/14/2009 2.33%
10/15/2009 2.38%
10/16/2009 2.35%
10/19/2009 2.34%
10/20/2009 2.29%
10/21/2009 2.34%
10/22/2009 2.36%
10/23/2009 2.45%
10/26/2009 2.49%
10/27/2009 2.37%
10/28/2009 2.34%
10/29/2009 2.44%
10/30/2009 2.31%
11/2/2009 2.33%
11/3/2009 2.35%
11/4/2009 2.38%
11/5/2009 2.34%
11/6/2009 2.30%
11/9/2009 2.30%
11/10/2009 2.29%
11/11/2009 2.29%
11/12/2009 2.26%
11/13/2009 2.26%
11/16/2009 2.19%
11/17/2009 2.17%
11/18/2009 2.19%
11/19/2009 2.15%
11/20/2009 2.18%
11/23/2009 2.17%
11/24/2009 2.09%
11/25/2009 2.11%
11/26/2009 2.11%
11/27/2009 2.04%
11/30/2009 2.00%
12/1/2009 2.04%
12/2/2009 2.09%
12/3/2009 2.12%
12/4/2009 2.24%
12/7/2009 2.17%
12/8/2009 2.11%
12/9/2009 2.15%
12/10/2009 2.19%
12/11/2009 2.25%
12/14/2009 2.29%
12/15/2009 2.33%
12/16/2009 2.34%
12/17/2009 2.21%
12/18/2009 2.27%
12/21/2009 2.40%
12/22/2009 2.47%
12/23/2009 2.48%
12/24/2009 2.54%
12/25/2009 2.54%
12/28/2009 2.60%
12/29/2009 2.57%
12/30/2009 2.62%
12/31/2009 2.68%
1/1/2010 2.68%
1/4/2010 2.64%
1/5/2010 2.56%
1/6/2010 2.59%
1/7/2010 2.61%
1/8/2010 2.59%
1/11/2010 2.56%
1/12/2010 2.48%
1/13/2010 2.54%
1/14/2010 2.50%
1/15/2010 2.42%
1/18/2010 2.42%
1/19/2010 2.45%
1/20/2010 2.41%
1/21/2010 2.34%
1/22/2010 2.34%
1/25/2010 2.36%
1/26/2010 2.34%
1/27/2010 2.39%
1/28/2010 2.39%
1/29/2010 2.33%
2/1/2010 2.38%
2/2/2010 2.36%
2/3/2010 2.41%
2/4/2010 2.30%
2/5/2010 2.24%
2/8/2010 2.23%
2/9/2010 2.32%
2/10/2010 2.37%
2/11/2010 2.37%
2/12/2010 2.33%
2/15/2010 2.33%
2/16/2010 2.30%
2/17/2010 2.39%
2/18/2010 2.47%
2/19/2010 2.45%
2/22/2010 2.44%
2/23/2010 2.34%
2/24/2010 2.35%
2/25/2010 2.33%
2/26/2010 2.30%
3/1/2010 2.28%
3/2/2010 2.27%
3/3/2010 2.27%
3/4/2010 2.27%
3/5/2010 2.34%
3/8/2010 2.37%
3/9/2010 2.34%
3/10/2010 2.38%
3/11/2010 2.42%
3/12/2010 2.41%
3/15/2010 2.40%
3/16/2010 2.35%
3/17/2010 2.36%
3/18/2010 2.42%
3/19/2010 2.46%
3/22/2010 2.41%
3/23/2010 2.42%
3/24/2010 2.59%
3/25/2010 2.64%
3/26/2010 2.59%
3/29/2010 2.60%
3/30/2010 2.60%
3/31/2010 2.55%
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Intermediate Government Bond Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ----- -----
Number of Funds in
peer group 364 363 310 232
-----------------------------------------------
Peer group average
annual total return* 1.72% 4.76% 4.52% 5.16%
-----------------------------------------------
Morningstar Category in peer group: Intermediate Government Bond
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Intermediate Government Bond peer group consisting of 364, 363, 310 and 232
underlying funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE Government Barclays Capital
Securities U.S. Government Bond Index With Load
---------- -------------------------- ---------
03/00 10,000.00 10,000.00 9,575.00
09/00 10,371.99 10,436.37 9,931.18
09/01 11,643.85 11,820.15 11,148.98
09/02 12,735.99 13,006.43 12,194.71
09/03 13,111.97 13,468.04 12,554.71
09/04 13,321.94 13,808.05 12,755.75
09/05 13,599.01 14,148.54 13,021.05
09/06 13,907.06 14,615.51 13,316.01
09/07 14,542.65 15,438.92 13,924.59
09/08 15,506.80 16,658.13 14,847.76
09/09 16,196.78 17,781.05 15,508.42
03/10 16,204.97 17,797.96 15,516.25
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Government Securities Fund 0.05% (0.86)% 3.99% 4.94% 09/08/93 16,205
With Load (4.20)% (5.07)% 3.09% 4.49% 15,516
Barclays Capital U.S.
Government Bond Index 0.10% (0.13)% 5.19% 5.94% 17,798
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
GE Government Barclays Capital
Securities U.S. Government Bond Index
---------- --------------------------
03/00 10,000.00 10,000.00
09/00 10,326.49 10,436.37
09/01 11,524.94 11,820.15
09/02 12,493.64 13,006.43
09/03 12,781.93 13,468.04
09/04 12,876.23 13,808.05
09/05 13,061.85 14,148.54
09/06 13,244.69 14,615.51
09/07 13,762.15 15,438.92
09/08 14,596.66 16,658.13
09/09 15,246.14 17,781.05
03/10 15,253.85 17,797.96
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Government Securities Fund (0.32)% (1.58)% 3.21% 4.33% 04/22/87 15,254
With Load (3.32)% (4.58)% 3.21% 4.33%
Barclays Capital U.S.
Government Bond Index 0.10% (0.13)% 5.19% 5.94% 17,798
- --------------------------------------------------------------------------------
[GRAPHIC] 81
[GRAPHIC]
GE Government Securities Fund
CLASS C SHARES
[CHART]
Barclays Capital
GE Government Securities U.S. Government Bond Index
------------------------ --------------------------
03/00 10,000.00 10,000.00
09/00 10,325.80 10,436.37
09/01 11,536.06 11,820.15
09/02 12,503.20 13,006.43
09/03 12,777.31 13,468.04
09/04 12,886.38 13,808.05
09/05 13,072.22 14,148.54
09/06 13,256.02 14,615.51
09/07 13,772.82 15,438.92
09/08 14,601.34 16,658.13
09/09 15,132.78 17,781.05
03/10 15,085.76 17,797.96
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Government Securities Fund (0.31)% (1.56)% 3.25% 4.20% 09/30/99 15,086
With Load (1.31)% (2.56)% 3.25% 4.20%
Barclays Capital U.S.
Government Bond Index 0.10% (0.13)% 5.19% 5.94% 17,798
[GRAPHIC]
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.
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.
- --------------------------------------------------------------------------------
82
[GRAPHIC]
GE GOVERNMENT SECURITIES FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE GOVERNMENT SECURITIES FUND
Portfolio Composition as a % of Market Value of $102,802 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
U.S. Treasuries 79.6%
Corporate Notes 18.8%
Mortgage Backed 0.7%
Short-Term & Other 0.6%
Other Investments 0.3%
PRINCIPAL
AMOUNT VALUE
-----------------------------------------------------------
BONDS AND NOTES -- 87.5%+
-----------------------------------------------------------
U.S. TREASURIES -- 67.6%
U.S. Treasury Bonds
4.38% 11/15/39............ $ 5,943,500 $ 5,620,322 (h)
4.50% 08/15/39............ 1,806,500 1,744,402
U.S. Treasury Notes
0.05% 01/31/11............ 30,000 30,122 (d)
0.15% 11/30/11............ 6,050,000 6,041,730 (d)
1.00% 09/30/11 - 12/31/11. 13,193,200 13,232,016 (d)
1.13% 12/15/11 - 12/15/12. 9,683,000 9,690,904
2.25% 01/31/15............ 25,592,300 25,314,393
3.38% 11/15/19............ 6,600,200 6,368,678 (h)
4.75% 05/31/12............ 1,000,000 1,077,891 (h)
4.88% 02/15/12............ 500,000 536,602 (h)
69,657,060
AGENCY MORTGAGE BACKED -- 0.6%
Federal Home Loan Mortgage Corp.
6.50% 04/01/31............ 1,751 1,932 (h)
7.00% 12/01/26 - 02/01/30. 864 974 (h)
7.50% 06/01/10 - 04/01/12. 29,588 30,753 (h)
Federal National Mortgage Assoc.
6.00% 06/01/35............ 53,675 57,441 (h)
7.50% 12/01/23............ 52,545 59,044 (h)
9.00% 05/01/21 - 07/01/21. 10,655 12,360 (h)
5.00% TBA................. 158,000 166,641 (c)
Government National Mortgage Assoc.
8.50% 05/15/21 - 10/15/22. 3,386 3,902 (h)
9.00% 07/15/16............ 216,490 241,782 (h)
574,829
PRINCIPAL
AMOUNT VALUE
ASSET BACKED -- 0.3%
Bear Stearns Asset Backed
Securities Trust (Class A)
0.62% 01/25/34...... $ 3,206 $ 2,015 (i)
Option One Mortgage Loan
Trust (Class A)
1.09% 02/25/33...... 261,029 210,389 (i)
Residential Asset Securities
Corp. (Class A)
0.89% 11/25/33...... 375,358 125,478 (h,i)
337,882
CORPORATE NOTES -- 18.8%
Bank of America Corp.
7.63% 06/01/19...... 7,500,000 8,578,973 (h)
Citigroup, Inc.
8.50% 05/22/19...... 5,000,000 5,835,930 (h)
The Goldman Sachs Group Inc.
5.38% 03/15/20...... 5,000,000 4,953,755 (h)
19,368,658
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.2%
Residential Accredit Loans Inc.
0.55% 03/25/34...... 90,471 69,070 (i)
Thornburg Mortgage
Securities Trust (Class A)
0.93% 04/25/43...... 87,094 74,658 (i)
143,728
TOTAL BONDS AND NOTES
(COST $90,633,683)........... 90,082,157
-------------------------------------------------------------
OTHER INVESTMENTS -- 0.3%
-------------------------------------------------------------
GEI Investment Fund
(COST $429,321).............. 356,336 (k)
TOTAL INVESTMENT IN SECURITIES
(COST $91,063,004)........... 90,438,493
-------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 12.0%
-------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.1%
GE Money Market Fund
Institutional Class
0.00% 164,178 (d,k)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 83
GE GOVERNMENT SECURITIES FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
U.S. TREASURIES -- 11.9%
U.S Cash Management Bill
0.01% 04/01/10...... $7,900,000 $ 7,900,000 (d)
U.S. Treasury Bill
0.08% 04/22/10...... 4,300,000 4,299,762 (d)
TOTAL SHORT-TERM INVESTMENTS
(COST $12,363,940).......... 12,363,940
TOTAL INVESTMENTS
(COST $103,426,944)......... 102,802,433
OTHER ASSETS AND LIABILITIES,
NET -- 0.2%................. 206,837
------------
NET ASSETS -- 100.0%......... $103,009,270
============
------------------------
OTHER INFORMATION
------------------------
The GE Government Securities Fund had the following short futures contracts
open at March 31, 2010 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
----------------------------------------------------------------------
UK Long Gilt Bond
Futures June 2010 7 $ (1,218,450) $(2,031)
5 Yr. U.S.Treasury
Notes Futures June 2010 21 (2,411,719) 9,739
10 Yr. U.S.Treasury
Notes Futures June 2010 118 (13,717,500) 17,136
The GE Government Securities Fund had the following long futures contracts open
at March 31, 2010 (unaudited):
NUMBER CURRENT UNREALIZED
EXPIRATION OF NOTIONAL APPRECIATION/
DESCRIPTION DATE CONTRACTS VALUE (DEPRECIATION)
------------------------------------------------------------------
2 Yr. U.S.Treasury
Notes Futures June 2010 14 $3,037,344 $ 1,540
-------
$26,384
=======
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
84
[GRAPHIC]
[GRAPHIC]
GE Short-Term Government Fund
[PHOTO]
Paul M. Colonna
President and Chief Investment
Officer - Fixed Income
Paul M. Colonna
President and Chief Investment Officer -- Fixed Income
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 James F.
Palmieri. 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 184.
Q.HOW DID THE GE SHORT-TERM GOVERNMENT FUND PERFORM COMPARED TO ITS BENCHMARK
AND MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Short-Term Government
Fund returned 0.94% for Class A shares, 0.72% for Class B shares, 0.56% for
Class C shares, 0.82% for Class R shares and 1.15% for Class Y shares. The
Barclays Capital 1-3-Year U.S. Government Bond Index, the Fund's benchmark,
returned 0.81% and the Fund's Morningstar peer group of 163 Short-Term U.S.
Government Bond Funds returned an average of 1.15% for the same period.
Q.DESCRIBE WHAT HAPPENED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDING MARCH 31, 2010.
A.The US economy and fixed income markets continued to improve over the
six-month period ending March 31, 2010, primarily from rebuilding of
inventory and public sector programs. Unemployment fell from its peak of
10.1% in October 2009 to 9.7% in March of 2010 and inflation remained subdued
posting 1.3% (year-over-year Personal Consumption Expenditures (PCE) Core
Price Index) in February of 2010. The Federal Reserve kept its fed funds
target at 0.0-0.25% maintaining its intention to keep interest rates low "for
an extended period." In February, however, the committee did raise the
discount rate from 0.5% to 0.75%. Fed Chairman Bernanke explained the move
was a "normalization" of bank lending and should not be interpreted as a
change in monetary policy. Interest rates rose and the yield curve steepened
during the period. US Treasury 2-year and 10-year note yields ended March at
1.02% and 3.83% respectively, up 7 and 52 basis points. Credit-related
securities outperformed government securities, including agency
mortgage-backed bonds as yield spreads narrowed. Commercial mortgaged-backed
securities performed best, returning 12.68% followed by high yield which
returned 11.1%. US treasuries lost -0.2% due to the increase in yields.
Q.WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A.The primary drivers of Fund performance for the period was security selection
in commercial mortgage-backed securities (MBS) and asset-backed securities,
which provided an increase in portfolio yield above those provided by US
Treasury and agency bonds. The commercial MBS securities also enjoyed price
appreciation as their yield spreads narrowed during the period. Duration
positioning also contributed positively to Fund's return relative to the
benchmark.
[GRAPHIC] 85
[GRAPHIC]
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, 2010.
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
$1,000 = 8.6), then multiply the result by the number given for your class
under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,009.36 3.76
Class B 1,000.00 1,007.24 6.81
Class C 1,000.00 1,005.59 7.50
Class R 1,000.00 1,008.19 4.96
Class Y 1,000.00 1,011.50 2.56
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,020.97 3.78
Class B 1,000.00 1,017.99 6.84
Class C 1,000.00 1,017.30 7.54
Class R 1,000.00 1,019.80 4.99
Class Y 1,000.00 1,022.14 2.57
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 0.73% for Class A
Shares, 1.34% for Class B Shares, 1.48% for Class C Shares, 0.97% for Class R
Shares and 0.49% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 0.94% for Class A shares, 0.72% for Class B shares, 0.56% for Class
C shares, 0.82% for Class R shares and 1.15% for Class Y shares.
86
[GRAPHIC]
[GRAPHIC]
GE Short-Term Government Fund
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 under normal circumstances in U.S. Government
securities.
- --------------------------------------------------------------------------------
TWO YEAR TREASURY NOTE YIELD HISTORY
04/01/09 - 03/31/10
[CHART]
3/31/2009 0.80% High 1.40%
4/1/2009 0.80% Low 0.67%
4/2/2009 0.88% Average 0.94%
4/3/2009 0.95%
4/6/2009 0.94%
4/7/2009 0.91%
4/8/2009 0.92%
4/9/2009 0.95%
4/10/2009 0.95%
4/13/2009 0.87%
4/14/2009 0.84%
4/15/2009 0.85%
4/16/2009 0.90%
4/17/2009 0.96%
4/20/2009 0.91%
4/21/2009 0.93%
4/22/2009 0.96%
4/23/2009 0.92%
4/24/2009 0.96%
4/27/2009 0.87%
4/28/2009 0.95%
4/29/2009 0.95%
4/30/2009 0.90%
5/1/2009 0.91%
5/4/2009 0.94%
5/5/2009 0.96%
5/6/2009 0.96%
5/7/2009 0.99%
5/8/2009 0.98%
5/11/2009 0.89%
5/12/2009 0.88%
5/13/2009 0.87%
5/14/2009 0.84%
5/15/2009 0.85%
5/18/2009 0.91%
5/19/2009 0.88%
5/20/2009 0.83%
5/21/2009 0.86%
5/22/2009 0.88%
5/25/2009 0.88%
5/26/2009 0.92%
5/27/2009 0.98%
5/28/2009 0.96%
5/29/2009 0.91%
6/1/2009 0.95%
6/2/2009 0.95%
6/3/2009 0.91%
6/4/2009 0.95%
6/5/2009 1.29%
6/8/2009 1.40%
6/9/2009 1.30%
6/10/2009 1.35%
6/11/2009 1.32%
6/12/2009 1.26%
6/15/2009 1.22%
6/16/2009 1.18%
6/17/2009 1.16%
6/18/2009 1.25%
6/19/2009 1.20%
6/22/2009 1.13%
6/23/2009 1.10%
6/24/2009 1.20%
6/25/2009 1.13%
6/26/2009 1.11%
6/29/2009 1.09%
6/30/2009 1.11%
7/1/2009 1.04%
7/2/2009 0.98%
7/3/2009 0.98%
7/6/2009 0.94%
7/7/2009 0.97%
7/8/2009 0.91%
7/9/2009 0.92%
7/10/2009 0.90%
7/13/2009 0.90%
7/14/2009 0.94%
7/15/2009 1.01%
7/16/2009 0.98%
7/17/2009 0.99%
7/20/2009 0.97%
7/21/2009 0.92%
7/22/2009 0.94%
7/23/2009 1.01%
7/24/2009 0.99%
7/27/2009 1.03%
7/28/2009 1.08%
7/29/2009 1.16%
7/30/2009 1.17%
7/31/2009 1.11%
8/3/2009 1.18%
8/4/2009 1.20%
8/5/2009 1.21%
8/6/2009 1.20%
8/7/2009 1.30%
8/10/2009 1.23%
8/11/2009 1.17%
8/12/2009 1.15%
8/13/2009 1.09%
8/14/2009 1.05%
8/17/2009 1.01%
8/18/2009 1.02%
8/19/2009 0.98%
8/20/2009 0.98%
8/21/2009 1.09%
8/24/2009 1.02%
8/25/2009 1.01%
8/26/2009 1.05%
8/27/2009 1.04%
8/28/2009 1.02%
8/31/2009 0.97%
9/1/2009 0.90%
9/2/2009 0.90%
9/3/2009 0.91%
9/4/2009 0.93%
9/7/2009 0.93%
9/8/2009 0.94%
9/9/2009 0.92%
9/10/2009 0.88%
9/11/2009 0.90%
9/14/2009 0.92%
9/15/2009 0.94%
9/16/2009 0.98%
9/17/2009 0.94%
9/18/2009 0.99%
9/21/2009 0.98%
9/22/2009 0.95%
9/23/2009 0.96%
9/24/2009 0.94%
9/25/2009 0.98%
9/28/2009 0.97%
9/29/2009 0.99%
9/30/2009 0.94%
10/1/2009 0.87%
10/2/2009 0.87%
10/5/2009 0.88%
10/6/2009 0.91%
10/7/2009 0.86%
10/8/2009 0.88%
10/9/2009 0.96%
10/12/2009 0.96%
10/13/2009 0.91%
10/14/2009 0.92%
10/15/2009 0.95%
10/16/2009 0.96%
10/19/2009 0.96%
10/20/2009 0.92%
10/21/2009 0.96%
10/22/2009 0.94%
10/23/2009 1.00%
10/26/2009 1.03%
10/27/2009 0.93%
10/28/2009 0.94%
10/29/2009 0.98%
10/30/2009 0.89%
11/2/2009 0.92%
11/3/2009 0.92%
11/4/2009 0.90%
11/5/2009 0.88%
11/6/2009 0.84%
11/9/2009 0.85%
11/10/2009 0.83%
11/11/2009 0.83%
11/12/2009 0.81%
11/13/2009 0.81%
11/16/2009 0.77%
11/17/2009 0.76%
11/18/2009 0.75%
11/19/2009 0.70%
11/20/2009 0.73%
11/23/2009 0.73%
11/24/2009 0.73%
11/25/2009 0.75%
11/26/2009 0.75%
11/27/2009 0.68%
11/30/2009 0.67%
12/1/2009 0.68%
12/2/2009 0.72%
12/3/2009 0.72%
12/4/2009 0.83%
12/7/2009 0.76%
12/8/2009 0.72%
12/9/2009 0.75%
12/10/2009 0.77%
12/11/2009 0.80%
12/14/2009 0.85%
12/15/2009 0.85%
12/16/2009 0.84%
12/17/2009 0.75%
12/18/2009 0.80%
12/21/2009 0.86%
12/22/2009 0.91%
12/23/2009 0.93%
12/24/2009 0.97%
12/25/2009 0.97%
12/28/2009 1.04%
12/29/2009 1.08%
12/30/2009 1.08%
12/31/2009 1.14%
1/1/2010 1.14%
1/4/2010 1.07%
1/5/2010 1.01%
1/6/2010 1.00%
1/7/2010 1.03%
1/8/2010 0.98%
1/11/2010 0.94%
1/12/2010 0.91%
1/13/2010 0.96%
1/14/2010 0.92%
1/15/2010 0.87%
1/18/2010 0.87%
1/19/2010 0.89%
1/20/2010 0.87%
1/21/2010 0.83%
1/22/2010 0.79%
1/25/2010 0.82%
1/26/2010 0.81%
1/27/2010 0.92%
1/28/2010 0.86%
1/29/2010 0.82%
2/1/2010 0.86%
2/2/2010 0.86%
2/3/2010 0.88%
2/4/2010 0.81%
2/5/2010 0.77%
2/8/2010 0.77%
2/9/2010 0.83%
2/10/2010 0.88%
2/11/2010 0.87%
2/12/2010 0.83%
2/15/2010 0.83%
2/16/2010 0.81%
2/17/2010 0.85%
2/18/2010 0.93%
2/19/2010 0.92%
2/22/2010 0.89%
2/23/2010 0.83%
2/24/2010 0.86%
2/25/2010 0.82%
2/26/2010 0.82%
3/1/2010 0.80%
3/2/2010 0.79%
3/3/2010 0.81%
3/4/2010 0.86%
3/5/2010 0.90%
3/8/2010 0.90%
3/9/2010 0.87%
3/10/2010 0.90%
3/11/2010 0.95%
3/12/2010 0.95%
3/15/2010 0.94%
3/16/2010 0.91%
3/17/2010 0.92%
3/18/2010 0.96%
3/19/2010 0.99%
3/22/2010 0.97%
3/23/2010 0.98%
3/24/2010 1.09%
3/25/2010 1.08%
3/26/2010 1.04%
3/29/2010 1.04%
3/30/2010 1.06%
3/31/2010 1.02%
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Short-Term Government Bond Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds in peer group 163 160 146 113
-----------------------------------------------------------------
Peer group average annual total return* 1.15% 3.25% 3.93% 4.31%
-----------------------------------------------------------------
Morningstar Category in peer group: Short-Term Government Bond
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Short-Term Government Bond peer group consisting of 163, 160, 146 and 113
underlying funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
GE Short-Term Barclays Capital U.S.
Government Treasury Bond Index 1-3 Year With Load
---------- ---------------------------- ---------
03/00 10,000.00 10,000.00 9,750.00
09/00 10,403.50 10,394.94 10,143.41
09/01 11,454.63 11,504.01 11,168.26
09/02 12,112.16 12,177.74 11,809.35
09/03 12,361.18 12,518.62 12,052.15
09/04 12,473.18 12,664.86 12,161.35
09/05 12,607.76 12,803.17 12,292.57
09/06 13,050.03 13,292.50 12,723.78
09/07 13,696.03 14,053.27 13,353.63
09/08 14,214.09 14,881.74 13,858.73
09/09 14,836.11 15,536.87 14,465.21
03/10 14,974.97 15,662.08 14,600.60
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Short-Term Government Fund 0.94% 2.26% 3.77% 4.12% 03/02/94 14,975
With Load (1.59)% (0.30)% 3.24% 3.86% 14,601
Barclays Capital U.S. Treasury
Bond Index 1-3 Year 0.81% 1.81% 4.38% 4.59% 15,662
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
Barclays Capital U.S. Treasury
GE Short-Term Government Bond Index 1-3 Year
------------------------ -------------------
03/00 10,000.00 10,000.00
09/00 10,363.81 10,394.94
09/01 11,353.46 11,504.01
09/02 11,924.22 12,177.74
09/03 12,096.56 12,518.62
09/04 12,132.64 12,664.86
09/05 12,189.55 12,803.17
09/06 12,579.36 13,292.50
09/07 13,202.06 14,053.27
09/08 13,701.43 14,881.74
09/09 14,301.02 15,536.87
03/10 14,434.87 15,662.08
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Short-Term Government Fund 0.72% 1.74% 3.17% 3.74% 03/02/94 14,435
With Load (2.28)% (1.26)% 3.17% 3.74%
Barclays Capital U.S. Treasury
Bond Index 1-3 Year 0.81% 1.81% 4.38% 4.59% 15,662
[GRAPHIC] 87
[GRAPHIC]
GE Short-Term Government Fund
- --------------------------------------------------------------------------------
CLASS C SHARES
[CHART]
Barclays Capital
GE Short-Term U.S. Treasury
Government Bond Index 1-3 Year
------------- -------------------
03/00 10,000.00 10,000.00
09/00 10,356.15 10,394.94
09/01 11,328.03 11,504.01
09/02 11,879.50 12,177.74
09/03 12,032.24 12,518.62
09/04 12,048.94 12,664.86
09/05 12,087.24 12,803.17
09/06 12,429.09 13,292.50
09/07 12,935.98 14,053.27
09/08 13,335.84 14,881.74
09/09 13,814.00 15,536.87
03/10 13,891.16 15,662.08
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Short-Term Government
Fund 0.56% 1.58% 3.01% 3.34% 09/30/99 13,891
With Load (0.44)% 0.58% 3.01% 3.34%
Barclays Capital U.S. Treasury
Bond Index 1-3 Year 0.81% 1.81% 4.38% 4.59% 15,662
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
Barclays Capital
GE Short-Term U.S. Treasury
Government Bond Index 1-3 Year
------------- -------------------
1/29/2008 10,000.00 10,000.00
03/08 10,070.52 10,124.75
06/08 10,031.56 10,039.96
09/08 10,096.39 10,178.11
12/08 10,330.58 10,487.38
03/09 10,389.36 10,521.32
06/09 10,413.25 10,536.24
09/09 10,513.22 10,626.17
12/09 10,516.30 10,635.70
03/10 10,599.33 10,711.80
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ---- --------- ------------ --------------
GE Short-Term Government
Fund 0.82% 2.02% 2.77% 01/29/08 10,599
Barclays Capital U.S. Treasury
Bond Index 1-3 Year 0.81% 1.81% 2.63%* 10,712
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
Barclays Capital
GE Short-Term U.S. Treasury
Government Bond Index 1-3 Year
------------- -------------------
03/00 10,000.00 10,000.00
09/00 10,407.67 10,394.94
09/01 11,460.38 11,504.01
09/02 12,149.40 12,177.74
09/03 12,431.11 12,518.62
09/04 12,574.70 12,664.86
09/05 12,740.50 12,803.17
09/06 13,229.93 13,292.50
09/07 13,907.26 14,053.27
09/08 14,482.44 14,881.74
09/09 15,142.03 15,536.87
03/10 15,316.19 15,662.08
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Short-Term Government
Fund 1.15% 2.61% 4.04% 4.36% 03/02/94 15,316
Barclays Capital U.S. Treasury
Bond Index 1-3 Year 0.81% 1.81% 4.38% 4.59% 15,662
[GRAPHIC]
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.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
88
[GRAPHIC]
GE SHORT-TERM GOVERNMENT FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE SHORT-TERM GOVERNMENT FUND
Portfolio Composition as a % of Market Value of $128,269 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Agency Mortgage Backed 41.3%
U.S. Treasuries 27.0%
Short term 23.2%
Asset Backed 5.0%
Agency Collateralized Mortgage Obligations 1.8%
Non-Agency Collateralized Mortgage Obligations 1.6%
Other Investments 0.1%
PRINCIPAL
AMOUNT VALUE
BONDS AND NOTES -- 96.7%+
-------------------------------------------------------------
U.S. TREASURIES -- 34.0%
U.S. Treasury Notes
0.15% 11/30/11............ $ 2,031,000 $ 2,028,224 (d,h)
1.38% 02/15/12 - 01/15/13. 22,688,200 22,737,836 (h)
2.25% 01/31/15............ 9,967,600 9,859,362 (h)
34,625,422
AGENCY MORTGAGE BACKED -- 52.1%
Federal Home Loan
Mortgage Corp.
6.00% 08/01/34 - 03/01/38. 6,054,568 6,568,863 (h)
7.00% 11/01/31 - 04/01/36. 173,743 193,873 (h)
7.50% 01/01/16 - 08/01/30. 117,925 133,578 (h)
8.50% 05/01/20 - 11/01/20. 88,205 96,350 (h)
Federal National Mortgage Assoc.
2.41% 05/01/33............ 219,772 224,232 (h,i)
2.71% 06/01/33............ 21,592 22,315 (h,i)
2.82% 12/01/32............ 62,076 64,275 (h,i)
3.27% 07/01/33............ 156,033 160,829 (h,i)
3.29% 06/01/33............ 163,603 167,424 (h,i)
3.52% 07/01/33............ 22,249 23,143 (h,i)
3.56% 06/01/33............ 36,710 38,188 (h,i)
3.79% 06/01/33............ 52,276 53,852 (h,i)
6.00% 10/01/33 - 03/01/34. 38,371,730 41,670,412 (h)
7.00% 03/01/17 - 04/01/36. 966,207 1,076,752 (h)
7.50% 04/01/16 - 05/01/34. 715,703 810,112 (h)
8.00% 03/01/22 - 11/01/33. 162,556 185,743 (h)
8.50% 02/01/18 - 07/01/31. 393,899 451,537 (h)
9.00% 03/01/11 - 03/01/31. 391,848 454,610 (h)
9.50% 09/01/21............ 38,429 44,486 (h)
9.75% 02/01/21............ 82,980 90,357 (h)
PRINCIPAL
AMOUNT VALUE
Government National Mortgage Assoc.
7.00% 12/15/18 - 05/15/32.... $ 191,851 $ 214,411 (h)
7.50% 12/15/12 - 01/15/25.... 181,767 201,816 (h)
8.00% 07/15/17............... 82,501 92,141 (h)
53,039,299
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.2%
Federal Home Loan
Mortgage Corp.
6.50% 02/15/14............... 261,242 19,771 (g,h,r)
8.00% 01/15/34............... 185,140 186,174 (h)
Federal Home Loan
Mortgage Corp. REMIC
1.18% 12/15/31............... 366,608 372,300 (i)
Federal National
Mortgage Assoc.
0.10% 05/25/18............... 10,926,846 23,602 (g,h,i,r)
1.41% 07/25/44............... 2,800,493 86,609 (g,h,r)
5.50% 06/25/25............... 26,597 26,694 (h)
5.95% 07/25/38............... 1,645,548 164,555 (g,h,i,r)
Federal National
Mortgage Assoc. REMIC
4.50% 02/25/40............... 1,237,347 1,295,359 (h)
5.00% 02/25/40............... 742,408 121,013 (g,r)
2,296,077
ASSET BACKED -- 6.4%
Bank of America Auto Trust
2.67% 12/15/16............... 1,000,000 1,015,688 (b,h)
Ford Credit Auto Owner Trust
4.50% 07/15/14............... 100,000 106,519 (h)
GSAMP Trust
0.36% 05/25/46............... 178,504 160,654 (b,h,i)
0.40% 12/25/35............... 18,299 18,151 (i)
Hertz Vehicle Financing LLC
5.29% 03/25/16............... 2,575,000 2,687,470 (b,h)
Honda Auto Receivables
Owner Trust
3.30% 09/15/15............... 400,000 414,197
Nissan Master Owner Trust
Receivables
1.38% 01/15/15............... 1,000,000 1,002,775 (b,h,i)
Residential Asset Securities Corp.
(Class A)
0.89% 11/25/33............... 75,072 25,096 (h,i)
Volkswagen Auto Lease Trust
4.59% 03/17/14............... 1,000,000 1,045,737 (h)
6,476,287
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.0%
Bear Stearns Commercial
Mortgage Securities (Class A)
5.46% 04/12/38............... 144,000 146,724 (h,i)
6.46% 10/15/36............... 500,000 532,067 (h)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 89
GE SHORT-TERM GOVERNMENT FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Commercial Mortgage Pass
Through Certificates
0.33% 12/15/20.... $ 472,007 $ 429,523 (b,h,i)
Greenwich Capital Commercial
Funding Corp.
5.60% 12/10/49.... 735,000 751,357 (h)
Morgan Stanley Capital I
5.28% 12/15/43.... 150,000 155,382
Residential Accredit Loans Inc.
0.55% 03/25/34.... 37,481 28,615 (i)
2,043,668
TOTAL BONDS AND NOTES
(COST $98,746,773)......... 98,480,753
--------------------------------------------------------------
OTHER INVESTMENTS -- 0.1%
--------------------------------------------------------------
GEI Investment Fund
(COST $99,737)............. 82,782 (k)
TOTAL INVESTMENT IN SECURITIES
(COST $98,846,510) 98,563,535
--------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 29.2%
--------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 24.3%
GE Money Market Fund
Institutional Class
0.00%...................... 24,705,216 (d,k)
TIME DEPOSIT -- 4.9%
State Street Corp.
0.01% 04/01/10.... 5,000,000 5,000,000 (e)
TOTAL SHORT-TERM INVESTMENTS
(COST $29,705,216)......... 29,705,216
TOTAL INVESTMENTS
(COST $128,551,726)........ 128,268,751
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET -- (26.0)% (26,498,931)
------------
NET ASSETS -- 100.0%........ $101,769,820
============
OTHER INFORMATION
--------------------------
The GE Short-Term Government Fund had the following short futures contracts
open at March 31, 2010 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
--------------------------------------------------------------------
2 Yr. U.S. Treasury
Notes Futures June 2010 282 $(61,180,782) $37,958
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
90
[GRAPHIC]
[GRAPHIC]
GE Tax-Exempt Fund
[PHOTO]
Michael J. Caufield
Senior Vice President
Michael J. Caufield
Senior Vice President
The GE Tax-Exempt Fund is managed by Michael J. Caufield. See portfolio
managers' biographical information beginning on page 184.
Q.HOW DID THE GE TAX-EXEMPT FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Tax-Exempt Fund
returned 0.25% for Class A shares, -0.12% for Class B shares, -0.06% for
Class C shares and 0.41% for Class Y shares. The Barclays Capital 10 Year
Municipal Bond Index, the Fund's benchmark, returned 0.11%, and the
Morningstar peer group consisting of 247 Intermediate Municipal Bond Funds
returned an average of 0.10% for the same period.
Q.WHAT WERE THE PRIMARY DRIVERS BEHIND FUND PERFORMANCE?
A.While the municipal bond market experienced a dramatic turnaround during
2009, the last six months has allowed the market to clearly define its range
of rate tolerance. Driven by historically attractive relative value spreads,
and strong fundamentals, the municipal securities market could not sustain
the record pace of the first nine months through the fourth quarter of 2010.
The market suffered from a classic overbought condition, which drove spreads
to unsustainable levels and slowed the flow of funds into open-end mutual
funds. The yield curve remained at historically steep levels throughout the
fourth quarter and continued to reward those investors willing to assume
additional risk. As investors in search of higher yields began to migrate out
the yield curve, intermediate demand slowed and yields sharply increased.
As we entered the first quarter of 2010, the municipal market once again
offered extremely attractive alternatives to taxable investments as
institutional investors approached the market with a clean slate. The ten
year sector attracted considerable attention of both taxable and tax-exempt
investors alike. Retail investors re-emerged as a factor and rates began to
sharply trend lower. Once again overwhelming demand pushed the market towards
unsustainable levels and the market quickly corrected moving back to the
higher end of the established trading range by quarter-end.
The Fund, with the majority of its assets conservatively invested inside of
ten years, ably navigated through the most volatile periods and avoided a
great deal of the back-up in rates, which severely impacted assets between
10-15 years.
Q.WHAT HAPPENED IN THE U.S. ECONOMY DURING THE SIX-MONTH PERIOD ENDED MARCH 31,
2010 AND HOW WAS THE FUND POSITIONED WITH RESPECT TO SUCH ECONOMIC CONDITIONS?
A.The overriding factor impacting the U.S. economy over the last six months has
been the efforts of the federal government to fund an aggressive response to
the nation's employment, health care and housing dilemmas. The expectation of
increased federal deficits and growing social spending needs will require
extensive borrowing as well as the necessity of increased revenue generation.
Both will impact the investor class, and the supply demand dynamic of the
tax-exempt market over the last six months has reflected increased investor
awareness of the potential impact.
In an effort to manage long-term deficits, the federal government transferred
the costs of many programs to the State and local level. State and local
entities in turn continued to struggle to balance their budgets, given lower
than expected tax revenues and years of unconstrained spending. The ability
of several large municipal entities to provide essential services was
seriously challenged. The federal government, as a result, focused a
significant part of its economic stimulus efforts on municipalities.
[GRAPHIC] 91
[GRAPHIC]
GE Tax-Exempt Fund
The American Reinvestment and Recovery Act passed in early 2009 created the
Build America Bond (BAB) program providing federal subsidies to
municipalities issuing bonds in the taxable market. This Act allowed states
and municipalities to issue federally taxable municipal bonds with 35% of the
interest cost directly subsidized by a rebate from the federal government.
This new source of financing for issuers translated into significant
borrowing cost savings while introducing municipal debt to a new class of
investor, both domestic and foreign. However the diversion of new issue
product away from traditional tax-exempt investors, when combined with the
reality of significantly higher taxes from both the expiration of the Bush
tax cuts and new taxes attributable to the Health Care Reform Act of 2010,
magnified the benefits of tax-exempt investing. The resultant supply/demand
imbalance has clearly been a key determinant in the direction of rates.
While fundamentals have been strong over the last six-month period, the
market has experienced several short-term bouts of acute volatility. We have
seen large swings in yields as technical factors have tested both ends of a
well defined trading range. The Fund with its conservative curve positioning
and income driven investment bias, has consistently performed well during the
most volatile periods, with returns exceeding both the market benchmark and
the average returns of its peer group.
92
[GRAPHIC]
[GRAPHIC]
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, 2010.
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 $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- ----------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ----------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- ----------------------------------------------------------------------------------------------
Class A 1,000.00 1,002.47 4.84
Class B 1,000.00 998.77 8.62
Class C 1,000.00 999.43 8.47
Class Y 1,000.00 1,004.05 3.60
- ----------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ----------------------------------------------------------------------------------------------
Class A 1,000.00 1,019.90 4.88
Class B 1,000.00 1,016.17 8.70
Class C 1,000.00 1,016.32 8.55
Class Y 1,000.00 1,021.12 3.63
- ----------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 0.86% for Class A
Shares, 1.61% for Class B Shares, 1.59% for Class C Shares and 0.60% for Class
Y Shares (for the period October 1, 2009 -- March 31, 2010), multiplied by the
average account value over the period, multiplied by 182/365 (to reflect the
six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 0.25% for Class A shares, (0.12)% for Class B shares, (0.06)% for
Class C shares, and 0.41% for Class Y shares.
[GRAPHIC] 93
[GRAPHIC]
GE Tax-Exempt Fund
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.
- --------------------------------------------------------------------------------
QUALITY RATINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
--------------------------------------------
PERCENTAGE OF
MOODY'S / S&P / FITCH RATING* MARKET VALUE
----------------------------- -------------
Aaa/AAA 37.27%
--------------------------------------------
Aa/AA 32.79%
--------------------------------------------
A/A 20.60%
--------------------------------------------
Baa/BBB 4.88%
--------------------------------------------
Ba/BB and lower 1.19%
--------------------------------------------
NR/Other 3.27%
--------------------------------------------
100.00%
--------------------------------------------
* Moody's Investors Services Inc, Standard & Poor's and Fitch are nationally
recognized statistical rating organizations.
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Intermediate Municipal Bond Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds in peer group 247 240 188 121
------------------------------------------------------------------
Peer group average annual total return** 0.10% 9.72% 3.82% 4.52%
------------------------------------------------------------------
Morningstar Category in peer group: Intermediate Municipal Bond
**Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Intermediate Municipal Bond peer group consisting of 247, 240, 188 and 121
underlying funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
Barclays Capital
U.S. Municipal
GE Tax-Exempt Bond Index 10 Year With Load
------------- ------------------ ---------
03/00 10,000.00 10,000.00 9,575.00
09/00 10,372.61 10,411.59 9,931.77
09/01 11,438.12 11,453.01 10,952.00
09/02 12,385.84 12,537.83 11,859.44
09/03 12,823.89 13,009.82 12,278.88
09/04 13,128.31 13,621.87 12,570.35
09/05 13,325.86 14,003.30 12,759.51
09/06 13,701.04 14,640.81 13,118.74
09/07 13,990.16 15,145.70 13,395.58
09/08 13,873.26 15,228.50 13,283.64
09/09 15,550.99 17,406.12 14,890.07
03/10 15,589.47 17,425.24 14,926.92
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Tax-Exempt Fund 0.25% 6.73% 3.61% 4.54% 09/08/93 15,589
With Load (4.01)% 2.20% 2.72% 4.09% 14,927
Barclays Capital U.S. Municipal
Bond Index 10 Year 0.11% 7.72% 5.02% 5.71% 17,425
- --------------------------------------------------------------------------------
94
[GRAPHIC]
[GRAPHIC]
GE Tax-Exempt Fund
CLASS B SHARES
[CHART]
Barclays Capital U.S.
GE Tax-Exempt Municipal Bond Index 10 Year
------------- ----------------------------
03/00 10,000.00 10,000.00
09/00 10,343.52 10,411.59
09/01 11,319.77 11,453.01
09/02 12,166.56 12,537.83
09/03 12,493.43 13,009.82
09/04 12,704.62 13,621.87
09/05 12,799.40 14,003.30
09/06 13,062.14 14,640.81
09/07 13,238.82 15,145.70
09/08 13,067.11 15,228.50
09/09 14,647.35 17,406.12
03/10 14,683.60 17,425.24
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Tax-Exempt Fund (0.12)% 6.04% 2.84% 3.93% 09/08/93 14,684
With Load (3.12)% 3.04% 2.84% 3.93%
Barclays Capital U.S. Municipal
Bond Index 10 Year 0.11% 7.72% 5.02% 5.71% 17,425
- --------------------------------------------------------------------------------
CLASS C SHARES
[CHART]
Barclays Capital U.S.
GE Tax-Exempt Municipal Bond Index 10 Year
------------- ----------------------------
03/00 10,000.00 10,000.00
09/00 10,343.87 10,411.59
09/01 11,320.58 11,453.01
09/02 12,155.04 12,537.83
09/03 12,492.21 13,009.82
09/04 12,703.88 13,621.87
09/05 12,788.34 14,003.30
09/06 13,051.57 14,640.81
09/07 13,239.94 15,145.70
09/08 13,017.72 15,228.50
09/09 14,481.13 17,406.12
03/10 14,472.82 17,425.24
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Tax-Exempt Fund (0.06)% 6.00% 2.84% 3.77% 09/30/99 14,473
With Load (1.06)% 5.00% 2.84% 3.77%
Barclays Capital U.S. Municipal
Bond Index 10 Year 0.11% 7.72% 5.02% 5.71% 17,425
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
Barclays Capital U.S.
GE Tax-Exempt Municipal Bond Index 10 Year
------------- ----------------------------
03/00 10,000.00 10,000.00
09/00 10,399.00 10,411.59
09/01 11,491.13 11,453.01
09/02 12,475.43 12,537.83
09/03 13,457.91 13,009.82
09/04 13,835.69 13,621.87
09/05 14,049.28 14,003.30
09/06 14,483.70 14,640.81
09/07 14,835.18 15,145.70
09/08 14,739.38 15,228.50
09/09 16,557.72 17,406.12
03/10 16,624.85 17,425.24
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Tax-Exempt Fund 0.41% 7.00% 3.83% 5.21% 09/26/97 16,625
Barclays Capital U.S. Municipal
Bond Index 10 Year 0.11% 7.72% 5.02% 5.71% 17,425
[GRAPHIC]
See Notes to Performance beginning on page 1 for further information.
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.
- --------------------------------------------------------------------------------
[GRAPHIC] 95
GE TAX-EXEMPT FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE TAX-EXEMPT FUND
Portfolio Composition as a % of Market Value of $43,869 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Transportation 29.8%
General Obligation 17.0%
Education 15.4%
Water & Sewer 8.2%
Hospital 8.1%
Electricity 7.7%
Lease/Other 4.1%
Housing 3.7%
Utilities 2.5%
Industrial Development 2.1%
Short-Term 1.4%
Other Investments 0.0%*
* Less than 0.1%
PRINCIPAL
AMOUNT VALUE
MUNICIPAL BONDS AND NOTES -- 101.9%+
-----------------------------------------------------------------
ARIZONA -- 1.2%
Pima County Industrial Development
Authority
5.75% 09/01/29......... $ 500,000 $ 502,865
ARKANSAS -- 0.8%
Arkansas Housing Development
Agency
8.38% 07/01/11......... 315,000 345,568 (l)
CALIFORNIA -- 4.0%
City of San Diego CA
8.88% 02/01/11......... 40,000 41,071 (l)
Los Angeles Harbor Department
5.00% 08/01/26......... 1,160,000 1,229,055
Sacramento Municipal Utility District
6.80% 10/01/19......... 43,000 51,501 (l)
9.00% 04/01/13......... 340,000 380,032 (l)
1,701,659
COLORADO -- 0.4%
City of Colorado Springs Co.
8.50% 11/15/11......... 45,000 49,232 (l)
Denver City & County Co.
7.00% 08/01/10......... 130,000 132,709 (l)
181,941
PRINCIPAL
AMOUNT VALUE
CONNECTICUT -- 8.4%
City of New Haven (AMBAC Insured)
5.38% 12/01/12...... $1,000,000 $ 1,092,450 (n)
Connecticut State Health &
Educational Facility Authority
4.75% 07/01/30...... 1,100,000 1,081,663
7.00% 07/01/12...... 200,000 208,244 (l)
Town of Fairfield CT
5.00% 01/01/21...... 1,000,000 1,163,400
3,545,757
FLORIDA -- 4.9%
City of Gainesville
8.13% 10/01/14...... 110,000 128,638 (l)
City of Tampa
5.00% 10/01/26...... 615,000 632,368
Jacksonville Health Facilities
Authority
11.50% 10/01/12...... 200,000 250,984 (l)
North Broward Hospital District
5.25% 01/15/12...... 740,000 775,180 (m)
State of Florida
10.00% 07/01/14...... 235,000 276,304 (l)
2,063,474
GEORGIA -- 5.5%
Columbus Medical Center Hospital
Authority
7.75% 07/01/10...... 50,000 50,889 (l)
Metropolitan Atlanta Rapid Transit
Authority
7.00% 07/01/11...... 390,000 407,441 (l)
Municipal Electric Authority of
Georgia
5.25% 01/01/19...... 1,000,000 1,119,500
Private Colleges & Universities
Authority
6.00% 06/01/11...... 225,000 226,411
State of Georgia
4.50% 01/01/29...... 500,000 525,405
2,329,646
HAWAII -- 4.7%
State of Hawaii
5.25% 07/01/24...... 1,335,000 1,421,949
State of Hawaii (AGM Insured)
5.75% 02/01/14...... 500,000 576,970 (n)
1,998,919
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
96
[GRAPHIC]
GE TAX-EXEMPT FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
IDAHO -- 2.7%
Idaho Housing & Finance Assoc.
5.00% 07/15/17...... $1,000,000 $ 1,125,630
ILLINOIS -- 1.2%
Chicago Metropolitan Water
Reclamation District-Greater Chicago
5.00% 12/01/10...... 500,000 515,445
INDIANA -- 3.4%
Indiana Municipal Power Agency/IN
5.50% 01/01/27...... 500,000 539,500
Indiana Toll Road Commission
9.00% 01/01/15...... 580,000 696,661 (l)
Purdue University
5.25% 07/01/11...... 200,000 211,178
1,447,339
IOWA -- 0.8%
Muscatine IA
9.70% 01/01/13...... 310,000 355,347 (l)
KENTUCKY -- 2.4%
Kentucky Economic Development
Finance Authority
6.00% 06/01/30...... 500,000 490,225
Kentucky State Property & Buildings
Commission
5.25% 02/01/27...... 500,000 542,165
1,032,390
MAINE -- 1.3%
University of Maine (AGM Insured)
5.38% 03/01/12...... 500,000 541,715 (n)
MARYLAND -- 2.5%
County of Prince Georges MD
(AGM Insured)
5.50% 05/15/12...... 500,000 548,805 (n)
Maryland Health & Higher
Educational Facilities Authority
5.13% 07/01/39...... 500,000 500,505
1,049,310
PRINCIPAL
AMOUNT VALUE
MASSACHUSETTS -- 1.7%
Commonwealth of Massachusetts
(AGM Insured)
5.25% 12/15/12...... $ 500,000 $ 553,610 (n)
Massachusetts Port Authority
13.00% 07/01/13...... 150,000 179,997 (l)
733,607
MICHIGAN -- 1.2%
Detroit MI (AGM Insured)
5.25% 07/01/22...... 500,000 522,485 (n)
MINNESOTA -- 2.6%
City of Rochester MN
5.00% 11/15/38...... 500,000 509,515
City of St Cloud MN
5.13% 05/01/30...... 500,000 496,575
Western Minnesota Municipal Power
Agency
6.63% 01/01/16...... 100,000 115,534 (l)
1,121,624
MISSISSIPPI -- 1.4%
State of Mississippi
5.50% 09/01/14...... 500,000 578,190
MISSOURI -- 5.3%
Missouri Highway & Transportation
Commission
5.00% 05/01/21...... 1,500,000 1,714,155
Missouri Joint Municipal Electric
Utility Commission
5.75% 01/01/29...... 500,000 530,215
2,244,370
NEW JERSEY -- 7.6%
Atlantic County Improvement
Authority
7.40% 07/01/16...... 175,000 206,902 (l)
Atlantic County Improvement
Authority (AMBAC Insured)
7.40% 03/01/12...... 125,000 135,907 (l,n)
New Jersey Economic Development
Authority
4.50% 09/01/26...... 500,000 495,970
New Jersey St. Transit Corp. (AMBAC
Insured)
5.50% 09/15/11...... 500,000 525,985 (n)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 97
GE TAX-EXEMPT FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
New Jersey State Turnpike Authority
(AMBAC Insured)
6.50% 01/01/16.......... $ 210,000 $ 242,482 (l,n)
6.50% 01/01/16.......... 40,000 45,554 (n)
New Jersey Transportation Trust
Fund Authority (AGM Insured)
5.75% 12/15/12.......... 500,000 554,720 (n)
State of New Jersey
5.00% 06/15/23.......... 1,000,000 1,027,670
3,235,190
NEW MEXICO -- 0.6%
New Mexico Finance Authority
5.00% 12/15/26.......... 250,000 266,500
NEW YORK -- 6.7%
Brooklyn Arena Local Development
Corp.
6.00% 07/15/30.......... 500,000 508,120
New York State Dormitory Authority
6.50% 12/01/21.......... 500,000 522,120
7.38% 07/01/16.......... 490,000 575,123 (l)
7.50% 05/15/11.......... 30,000 30,230 (m)
7.50% 05/15/11.......... 50,000 53,167
New York State Urban Development
Corp.
5.50% 01/01/19.......... 1,000,000 1,133,260
2,822,020
NORTH CAROLINA -- 2.6%
City of Charlotte NC
5.00% 06/01/23.......... 500,000 565,885
State of North Carolina
4.63% 05/01/29.......... 500,000 515,495
1,081,380
OHIO -- 3.0%
City of Cleveland
5.00% 01/01/27.......... 1,000,000 1,012,640
Kent State University Revenues
5.00% 05/01/30.......... 250,000 258,087
1,270,727
PENNSYLVANIA -- 5.8%
Allegheny County Hospital
Development Authority
7.38% 07/01/12.......... 205,000 221,308 (l)
City of Philadelphia
6.25% 08/01/12.......... 250,000 276,360
7.00% 05/15/20.......... 320,000 380,214 (l)
PRINCIPAL
AMOUNT VALUE
Delaware River Port Authority
Pa & N J
6.50% 01/15/11....... $ 60,000 $ 62,858 (l)
Pennsylvania Higher Educational
Facilties Authority
5.50% 08/15/18....... 500,000 569,185
Philadelphia Authority for Industrial
Development
5.25% 09/01/36....... 500,000 412,345
Pittsburgh Urban Redevelopment
Authority (FGIC Insured)
7.25% 09/01/14....... 485,000 549,544 (l,n)
2,471,814
RHODE ISLAND -- 1.3%
Rhode Island Health & Educational
Building Corp.
6.25% 09/15/34....... 500,000 537,250
SOUTH CAROLINA -- 2.5%
Charleston Educational Excellence
Finance Corp.
5.25% 12/01/27....... 500,000 521,545
Grand Strand Water & Sewer
Authority (AGM Insured)
5.38% 06/01/13....... 500,000 543,220 (n)
1,064,765
TEXAS -- 7.0%
North Texas Tollway Authority
5.63% 01/01/33....... 500,000 519,155
State of Texas
5.00% 04/01/28....... 750,000 794,482
University of Texas
5.00% 08/15/24....... 1,500,000 1,671,600
2,985,237
VIRGINIA -- 3.0%
Chesterfield County Economic
Development Authority
5.00% 05/01/23....... 250,000 267,087
Virginia Public School Authority
4.50% 08/01/28....... 1,000,000 1,027,190
1,294,277
WISCONSIN -- 5.4%
State of Wisconsin
6.60% 07/01/11....... 525,000 561,424 (l)
State of Wisconsin (FGIC Insured)
5.25% 07/01/16....... 1,500,000 1,724,670 (m,n)
2,286,094
TOTAL MUNICIPAL BONDS AND NOTES
(COST $41,626,474)................. 43,252,535
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
98
[GRAPHIC]
GE TAX-EXEMPT FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------
OTHER INVESTMENTS -- 0.0%*
----------------------------------------------------------------
GEI Investment Fund
(COST $3,864).................... $ 3,207 (k)
TOTAL INVESTMENTS IN SECURITIES
(COST $41,630,338)............... 43,255,742
----------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.4%
----------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $612,983).................. 612,983 (d,k)
TOTAL INVESTMENTS
(COST $42,243,321)............... 43,868,725
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (3.3)%.... (1,418,947)
-----------
NET ASSETS -- 100.0%.............. $42,449,778
===========
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 99
[GRAPHIC]
GE Fixed Income Fund
[PHOTO]
Paul M. Colonna
President and Chief Investment
Officer - Fixed Income
Paul M. Colonna
President and Chief Investment Officer -- Fixed Income
The GE Fixed Income Fund is managed by a team of portfolio managers that
includes Paul M. Colonna, William M. Healey, Mark H. Johnson and Vita Marie
Pike. The team is led 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 184.
Q.HOW DID THE GE FIXED INCOME FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Fixed Income Fund
returned 3.68% for Class A shares, 3.29% for Class B shares, 3.38% for Class
C shares, 3.64% for Class R shares and 3.70% for Class Y shares. The Barclays
Capital U.S. Aggregate Bond Index, the Fund's benchmark, returned 1.99% and
the Fund's Morningstar peer group of 1,162 Intermediate Term Bond Funds
returned an average of 3.64% for the same period.
Q.DESCRIBE WHAT HAPPENED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDED MARCH 31, 2010?
A.The US economy and fixed income markets continued to improve over the
six-month period ending March 31, 2010, primarily from rebuilding of
inventory and public sector programs. Unemployment fell from its peak of
10.1% in October 2009 to 9.7% in March of 2010 and inflation remained subdued
posting 1.3% (year-over-year Personal Consumption Expenditures (PCE) Core
Price Index) in February of 2010. The Federal Reserve kept its fed funds
target at 0.0-0.25% maintaining its intention to keep interest rates low "for
an extended period." In February, however, the committee did raise the
discount rate from 0.5% to 0.75%. Fed Chairman Bernanke explained the move
was a "normalization" of bank lending and should not be interpreted as a
change in monetary policy. Interest rates rose and the yield curve steepened
during the period. US Treasury 2-year and 10-year note yields ended March at
1.02% and 3.83% respectively, up 7 and 52 basis points. Credit-related
securities outperformed government securities, including agency
mortgage-backed bonds as yield spreads narrowed. Commercial mortgaged-backed
securities performed best, returning 12.68% followed by high yield which
returned 11.1%. US treasuries lost -0.2% due to the increase in yields.
Q.WHAT WERE THE PRIMARY DRIVERS BEHIND FUND PERFORMANCE?
A.The main drivers of Fund performance relative to its benchmark was duration
positioning and sector allocation. The Fund's duration was held shorter than
the benchmark duration, which contributed positively to excess returns as
interest rates rose. In general, the Fund's overweight allocation to
investment grade corporate bonds and commercial mortgage-backed securities,
in addition to the Fund's exposure to high yield and emerging market debt
securities also contributed positively to the Fund's return relative to the
benchmark, as these sectors outperformed government securities, which the
Fund was generally underweight.
100
[GRAPHIC]
[GRAPHIC]
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, 2010.
ACTUAL EXPENSES
The first section of the table provides information about actual account values
and actual expenses. You may use the information in this section, together with
the amount you invested, to estimate the expenses that you paid over the
period. To do so, simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number given for your class under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
OCTOBER 1, 2009 - MARCH 31, 2010
- --------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- --------------------------------------------------------------------------------------------
ACTUAL FUND RETURN**
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,036.79 4.82
Class B 1,000.00 1,032.95 8.62
Class C 1,000.00 1,033.80 8.57
Class R 1,000.00 1,036.35 6.09
Class Y 1,000.00 1,037.01 3.66
- --------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- --------------------------------------------------------------------------------------------
Class A 1,000.00 1,019.99 4.78
Class B 1,000.00 1,016.32 8.55
Class C 1,000.00 1,016.37 8.50
Class R 1,000.00 1,018.77 6.04
Class Y 1,000.00 1,021.12 3.63
- --------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 0.92% for Class A
Shares, 1.67% for Class B Shares, 1.67% for Class C Shares, 1.18% for Class R
Shares and 0.70% for Class Y Shares (for the period October 1, 2009 -- March
31, 2010), multiplied by the average account value over the period, multiplied
by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 3.68% for Class A shares, 3.29% for Class B shares, 3.38% for Class
C shares, 3.64% for Class R shares and 3.70% for Class Y shares.
[GRAPHIC] 101
[GRAPHIC]
GE Fixed Income Fund
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 under normal circumstances in debt securities. The
Fund invests primarily in a variety of investment grade debt securities such as
mortgage-backed securities, corporate bonds, U.S. Government securities, and
money market instruments.
- --------------------------------------------------------------------------------
QUALITY RATINGS AS OF MARCH 31, 2010 (UNAUDITED)
as a % of Market Value
----------------------------------------
PERCENTAGE OF
MARKET VALUE
MOODY'S/S&P/FITCH RATING* -------------
Aaa/AAA 59.05%
----------------------------------------
Aa/AA 2.50%
----------------------------------------
A/A 13.35%
----------------------------------------
Baa/BBB 12.66%
----------------------------------------
Ba/BB and lower 10.88%
----------------------------------------
NR/Other 1.56%
----------------------------------------
100.00%
----------------------------------------
*Moody's Investors Services Inc, Standard & Poor's and Fitch are nationally
recognized statistical rating organizations.
- --------------------------------------------------------------------------------
MORNINGSTAR PERFORMANCE COMPARISON
Intermediate-Term Bond Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ----- ---- ----
Number of Funds in peer group 1162 1130 863 499
-------------------------------------------------------------------
Peer group average annual total return** 3.64% 16.14% 4.25% 5.24%
-------------------------------------------------------------------
Morningstar Category in peer group: Intermediate-Term Bond
**Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Intermediate-Term Bond peer group consisting of 1162, 1130, 863 and 499
underlying funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[CHART]
Barclays Capital
U.S. Aggregate
GE Fixed Income Bond Index With Load
--------------- ---------------- ---------
03/00 10,000.00 10,000.00 9,575.00
09/00 10,422.08 10,480.88 9,979.14
09/01 11,684.75 11,838.46 11,188.15
09/02 12,575.39 12,856.15 12,040.94
09/03 13,151.03 13,551.64 12,592.11
09/04 13,543.99 14,050.07 12,968.37
09/05 13,828.44 14,442.78 13,240.73
09/06 14,261.55 14,972.90 13,655.43
09/07 14,941.23 15,741.88 14,306.23
09/08 15,050.23 16,316.81 14,410.59
09/09 16,007.18 18,039.33 15,326.87
03/10 16,596.04 18,398.06 15,890.71
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Fixed Income Fund 3.68% 10.12% 4.15% 5.20% 01/05/93 16,596
With Load (0.73)% 5.44% 3.25% 4.74% 15,891
Barclays Capital U.S.
Aggregate Bond Index 1.99% 7.69% 5.44% 6.29% 18,398
- --------------------------------------------------------------------------------
CLASS B SHARES
[CHART]
Barclays Capital
U.S. Aggregate
GE Fixed Income Bond Index
--------------- ----------------
03/00 10,000.00 10,000.00
09/00 10,383.23 10,480.88
09/01 11,552.78 11,838.46
09/02 12,330.82 12,856.15
09/03 12,798.80 13,551.64
09/04 13,082.74 14,050.07
09/05 13,257.98 14,442.78
09/06 13,622.05 14,972.90
09/07 14,271.26 15,741.88
09/08 14,375.37 16,316.81
09/09 15,289.41 18,039.33
03/10 15,851.87 18,398.06
AVERAGE ANNUAL TOTAL RETURN FOR THE
PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Fixed Income Fund 3.29% 9.30% 3.37% 4.71% 12/22/93 15,852
With Load 0.29% 6.30% 3.37% 4.71%
Barclays Capital U.S.
Aggregate Bond Index 1.99% 7.69% 5.44% 6.29% 18,398
- --------------------------------------------------------------------------------
102
[GRAPHIC]
[GRAPHIC]
GE Fixed Income Fund
CLASS C SHARES
[CHART]
Barclays Capital
GE Fixed Income U.S. Aggregate Bond Index
--------------- -------------------------
03/00 10,000.00 10,000.00
09/00 10,383.29 10,480.88
09/01 11,554.24 11,838.46
09/02 12,342.32 12,856.15
09/03 12,809.31 13,551.64
09/04 13,093.53 14,050.07
09/05 13,280.23 14,442.78
09/06 13,594.63 14,972.90
09/07 14,136.61 15,741.88
09/08 14,133.84 16,316.81
09/09 14,907.21 18,039.33
03/10 15,411.08 18,398.06
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Fixed Income Fund 3.38% 9.29% 3.39% 4.42% 09/30/99 15,411
With Load 2.28% 8.29% 3.39% 4.42%
Barclays Capital U.S.
Aggregate Bond Index 1.99% 7.69% 5.44% 6.29% 18,398
- --------------------------------------------------------------------------------
CLASS R SHARES
[CHART]
Barclays Capital
GE Fixed Income U.S. Aggregate Bond Index
--------------- -------------------------
01/29/08 10,000.00 10,000.00
03/08 9,973.24 10,047.99
06/08 9,814.26 9,945.49
09/08 9,648.08 9,896.91
12/08 9,674.58 10,350.12
03/09 9,649.29 10,362.11
06/09 9,805.21 10,546.81
09/09 10,226.46 10,941.70
12/09 10,349.60 10,963.93
03/10 10,598.22 11,159.29
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ---- --------- ------------ --------------
GE Fixed Income Fund.. 3.64% 9.83% 2.76% 01/29/08 10,598
Barclays Capital U.S.
Aggregate Bond Index. 1.99% 7.69% 4.95%* 11,159
- --------------------------------------------------------------------------------
CLASS Y SHARES
[CHART]
Barclays Capital
GE Fixed Income U.S. Aggregate Bond Index
--------------- -------------------------
03/00 10,000.00 10,000.00
09/00 10,426.30 10,480.88
09/01 11,728.70 11,838.46
09/02 12,644.54 12,856.15
09/03 13,256.44 13,551.64
09/04 13,686.59 14,050.07
09/05 14,008.93 14,442.78
09/06 14,496.01 14,972.90
09/07 15,224.74 15,741.88
09/08 15,360.95 16,316.81
09/09 16,378.73 18,039.33
03/10 16,984.90 18,398.06
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ----- ---- ---- ------------ --------------
GE Fixed Income Fund 3.70% 10.28% 4.39% 5.44% 11/29/93 16,985
Barclays Capital U.S.
Aggregate Bond Index 1.99% 7.69% 5.44% 6.29% 18,398
[GRAPHIC]
See Notes to Performance beginning on page 1 for further information.
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.
* Index returns are not available from the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
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.
- --------------------------------------------------------------------------------
[GRAPHIC] 103
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE FIXED INCOME FUND
Portfolio Composition as a % of Market Value of $103,937 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Corporate Notes 34.9%
Mortgage Backed 30.4%
Asset Backed & Others 18.3%
U.S. Treasuries 15.9%
Other Investments 0.5%
PRINCIPAL
AMOUNT VALUE
BONDS AND NOTES -- 89.7%+
----------------------------------------------------------------
U.S. TREASURIES -- 16.3%
U.S. Treasury Bonds
4.38% 11/15/39.............. $3,518,000 $ 3,326,709 (h)
4.50% 08/15/39.............. 390,100 376,690
U.S. Treasury Notes
0.05% 01/31/11.............. 636,800 639,387 (d)
0.15% 11/30/11.............. 2,247,000 2,243,928 (d,h)
1.00% 12/31/11.............. 4,165,600 4,173,898 (d)
1.13% 12/15/12.............. 1,665,900 1,651,453
1.25% 11/30/10.............. 157,500 158,466
2.25% 01/31/15.............. 1,217,100 1,203,884
3.38% 11/15/19.............. 2,156,600 2,080,951 (h)
3.63% 02/15/20.............. 619,000 608,458
4.50% 11/15/10.............. 27,000 27,705
16,491,529
AGENCY MORTGAGE BACKED -- 18.8%
Federal Home Loan Mortgage Corp.
4.50% 06/01/33 - 02/01/35... 53,306 53,756 (h)
5.00% 07/01/35.............. 247,585 256,635 (h)
5.50% 05/01/20 - 04/01/39... 1,844,002 1,955,796 (h)
6.00% 04/01/17 - 11/01/37... 1,388,181 1,497,873 (h)
6.50% 07/01/29 - 08/01/29... 7,423 8,194 (h)
7.00% 10/01/16 - 08/01/36... 113,168 126,177 (h)
7.50% 01/01/30 - 09/01/33... 25,783 29,457 (h)
8.00% 11/01/30.............. 16,474 19,028 (h)
8.50% 04/01/30 - 05/01/30... 34,063 40,134 (h)
9.00% 12/01/16.............. 7,122 7,980 (h)
9.50% 04/01/21.............. 617 697 (h)
Federal National Mortgage Assoc.
4.00% 05/01/19 - 06/01/19... 217,604 225,464 (h)
PRINCIPAL
AMOUNT VALUE
4.50% 05/01/18 - 02/01/40... $2,331,845 $ 2,363,943 (h)
5.00% 07/01/20 - 05/01/39... 1,006,351 1,044,090 (h)
5.47% 04/01/37.............. 9,758 10,171 (i)
5.50% 03/01/14 - 12/01/38... 3,697,948 3,920,806 (h)
5.81% 03/01/37.............. 10,117 10,523 (i)
6.00% 09/01/14 - 07/01/35... 2,233,660 2,419,048 (h)
6.50% 08/01/17 - 08/01/36... 404,375 440,477 (h)
7.00% 08/01/13 - 02/01/34... 86,064 95,104 (h)
7.50% 08/01/13 - 03/01/34... 163,124 184,270 (h)
8.00% 12/01/12 - 11/01/33... 73,843 85,223 (h)
8.50% 05/01/31.............. 5,336 6,222 (h)
9.00% 04/01/16 - 12/01/22... 16,493 18,246 (h)
4.50% TBA................... 245,000 245,536 (c)
6.00% TBA................... 2,469,000 2,660,348 (c)
Government National Mortgage
Assoc.
4.50% 08/15/33 - 09/15/34... 317,707 324,529 (h)
6.00% 04/15/27 - 09/15/36... 214,398 231,557 (h)
6.50% 04/15/19 - 08/15/36... 418,796 456,415 (h)
7.00% 03/15/12 - 10/15/36... 144,712 158,676 (h)
7.50% 01/15/23 - 10/15/33... 75,579 85,381 (h)
8.00% 12/15/29 - 02/15/30... 1,466 1,690 (h)
9.00% 11/15/16 - 12/15/21... 54,622 61,068 (h)
19,044,514
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 2.2%
Collateralized Mortgage Obligation
Trust (Class B)
0.85% 11/01/18.............. 2,815 2,617 (d,f,h,r)
Federal Home Loan Mortgage Corp.
0.14% 09/25/43.............. 1,243,252 7,519 (g,h,i,r)
0.63% 09/15/34.............. 102,538 89,653 (d,f)
4.50% 10/15/16 - 03/15/19... 271,414 19,402 (g,h,r)
5.00% 05/15/17 - 12/01/34... 677,598 84,529 (g,h,r)
5.00% 05/15/38.............. 119,539 119,451
5.50% 04/15/17 - 06/15/33... 289,532 55,035 (g,h,r)
7.50% 01/15/16.............. 7,579 7,696 (h)
7.50% 07/15/27.............. 2,610 477 (g,h,r)
8.00% 04/15/20.............. 1,028 1,111 (h)
8.00% 02/01/23 - 07/01/24... 7,126 1,451 (g,h,r)
Federal Home Loan Mortgage STRIPS
11.36% 08/01/27.............. 1,702 1,388 (d,f,h)
Federal National Mortgage Assoc.
1.20% 12/25/42.............. 277,801 9,395 (g,h,i,r)
4.50% 05/25/18.............. 48,422 1,735 (g,h,r)
5.00% 08/25/17 - 02/25/32... 307,372 36,730 (g,h,r)
5.00% 10/25/35 - 08/25/38... 325,082 314,586
5.50% 01/25/33.............. 156,303 164,362
7.45% 08/25/16.............. 77,263 3,324 (g,h,i,r)
16.07% 03/25/31.............. 221,728 253,118 (h,i)
Federal National Mortgage Assoc.
(Class 1)
1.27% 11/01/34.............. 287,234 243,498 (d,f,h)
4.50% 09/01/35 - 01/01/36... 787,829 161,032 (g,r)
5.00% 05/25/38.............. 230,747 45,372 (g,r)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
104
[GRAPHIC]
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Federal National Mortgage Assoc.
(Class 2)
4.50% 08/01/35.............. $ 240,531 $ 49,164 (g,r)
5.00% 03/25/38.............. 216,716 39,864 (g,r)
5.50% 12/01/33.............. 63,478 13,286 (g,r)
6.00% 05/25/36.............. 304,835 55,272 (g,r)
7.50% 11/01/23.............. 34,597 6,145 (g,h,r)
8.00% 08/01/23 - 07/01/24... 15,415 3,242 (g,h,r)
8.50% 03/01/17 - 07/25/22... 7,203 1,398 (g,h,r)
9.00% 05/25/22.............. 2,462 572 (g,h,r)
Federal National Mortgage Assoc.
(Class B)
0.00% 12/25/22.............. 2,438 2,159 (d,f,h)
Federal National Mortgage Assoc.
(Class H)
5.00% 10/25/22.............. 87,889 7,969 (g,h,r)
Federal National Mortgage Assoc.
(Class K)
1008.00% 05/25/22.............. 12 267 (g,h,r)
Federal National Mortgage Assoc.
REMIC
5.00% 02/25/40.............. 98,986 20,622 (g,r)
5.90% 11/25/39.............. 728,491 72,744 (g,i,r)
Federal National Mortgage Assoc.
STRIPS
5.50% 11/25/39.............. 1,252,740 256,060 (g,r)
6.00% 01/01/35 - 09/01/35... 441,749 72,684 (g,r)
Government National Mortgage Assoc.
4.50% 05/20/38.............. 135,898 20,921 (g,r)
2,245,850
ASSET BACKED -- 2.3%
Bear Stearns Asset Backed Securities
Trust (Class A)
0.62% 01/25/34.............. 20,900 13,139 (h,i)
Chase Funding Mortgage Loan Asset-
Backed Certificates
0.75% 03/25/32.............. 28,941 18,569 (h,i)
5.75% 05/25/32.............. 31,758 15,962 (h,i,r)
Countrywide Asset-Backed
Certificates
1.11% 05/25/33.............. 3,256 1,924 (i)
4.74% 10/25/35.............. 92,086 78,000 (i)
5.31% 08/25/35.............. 2,000,000 1,854,698 (h,i)
Countrywide Asset-Backed
Certificates (Class 2)
0.85% 06/25/33.............. 1,457 1,243 (i)
Countrywide Asset-Backed
Certificates (Class A)
0.81% 08/25/32.............. 18,645 11,339 (h,i)
1.05% 03/25/33.............. 97,818 78,822 (h,i)
PRINCIPAL
AMOUNT VALUE
GSAMP Trust
0.40% 12/25/35........ $ 26,497 $ 26,283 (i)
Mid-State Trust
7.54% 07/01/35........ 11,318 10,714 (h,q)
Popular ABS Mortgage Pass-Through
Trust
5.30% 11/25/35........ 100,000 78,849
Residential Asset Mortgage Products
Inc. (Class A)
0.81% 06/25/32........ 14,310 11,142 (i)
Residential Asset Securities Corp.
0.75% 07/25/32........ 6,071 3,032 (h,i)
Residential Asset Securities Corp.
(Class A)
0.83% 06/25/33........ 25,556 12,771 (i)
Saxon Asset Securities Trust
5.23% 08/25/35........ 109,906 95,883 (i)
Wachovia Asset Securitization Inc.
(Class A)
0.47% 06/25/34........ 41,512 21,399 (i,q)
Wells Fargo Home Equity Trust
3.97% 05/25/34........ 905 903 (h,i,r)
2,334,672
CORPORATE NOTES -- 35.8%
Abbey National Treasury Services
PLC
3.88% 11/10/14........ 124,000 123,300 (b)
Abu Dhabi National Energy Co.
6.25% 09/16/19........ 100,000 100,540 (b)
AES El Salvador Trust
6.75% 02/01/16........ 100,000 95,009 (b)
AES Panama S.A.
6.35% 12/21/16........ 40,000 40,336 (b)
Agilent Technologies Inc.
5.50% 09/14/15........ 80,000 85,757
Air Jamaica Ltd.
9.38% 07/08/15........ 7,857 7,936
Alliance One International, Inc.
10.00% 07/15/16........ 155,000 161,975 (b)
America Movil SAB de C.V.
5.00% 03/30/20........ 200,000 197,173 (b)
American Tower Corp.
4.63% 04/01/15........ 166,000 170,717
Amsted Industries Inc.
8.13% 03/15/18........ 156,000 156,000 (b)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 105
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Anadarko Petroleum Corp.
6.20% 03/15/40...... $ 112,000 $ 110,198
Anheuser-Busch InBev Worldwide
Inc.
5.00% 04/15/20...... 232,000 232,714 (b)
5.38% 11/15/14...... 145,000 157,050 (b)
ARAMARK Corp.
8.50% 02/01/15...... 334,000 341,515 (h)
Arizona Public Service Co.
6.25% 08/01/16...... 95,000 102,371 (h)
AT&T Inc.
6.40% 05/15/38...... 222,000 228,246 (h)
6.70% 11/15/13...... 184,000 209,960
Avis Budget Finance, Inc.
9.63% 03/15/18...... 112,000 117,040 (b)
Banco do Brasil S.A.
8.50% 10/29/49...... 200,000 222,000 (b)
Banco Mercantil del Norte S.A.
6.14% 10/13/16...... 24,000 23,766 (i)
Banco Nacional de Desenvolvimento
Economico e Social
5.50% 07/12/20...... 200,000 198,000 (b)
Bank of America Corp.
4.50% 04/01/15...... 135,000 136,126
5.75% 12/01/17...... 390,000 399,857 (h)
6.50% 08/01/16...... 240,000 259,439
7.38% 05/15/14...... 65,000 73,095
BE Aerospace Inc.
8.50% 07/01/18...... 223,000 238,053 (h)
BES Investimento do Brasil S.A.
5.63% 03/25/15...... 100,000 98,930 (b)
BlackRock, Inc.
5.00% 12/10/19...... 144,000 144,148
Boise Co-Issuer Co.
8.00% 04/01/20...... 112,000 112,000 (b)
Bombardier Inc.
7.75% 03/15/20...... 210,000 219,450 (b)
Boston Scientific Corp.
4.50% 01/15/15...... 70,000 67,086
6.00% 01/15/20...... 74,000 69,907
CA, Inc.
5.38% 12/01/19...... 186,000 188,006
6.13% 12/01/14...... 59,000 65,225
Calpine Corp.
7.25% 10/15/17...... 114,000 112,005 (b)
PRINCIPAL
AMOUNT VALUE
Cargill Inc.
5.20% 01/22/13........ $ 240,000 $ 255,311 (b,h)
6.00% 11/27/17........ 96,000 104,205 (b,h)
Case New Holland Inc.
7.75% 09/01/13........ 238,000 246,925 (b)
Cenovus Energy Inc.
4.50% 09/15/14........ 128,000 133,542 (b)
6.75% 11/15/39........ 118,000 127,979 (b)
Centrais Eletricas Brasileiras S.A.
6.88% 07/30/19........ 100,000 109,000 (b)
Central American Bank for Economic
Integration
5.38% 09/24/14........ 140,000 140,000 (b)
CFG Investment SAC
9.25% 12/19/13........ 100,000 104,750
Chesapeake Energy Corp.
7.25% 12/15/18........ 333,000 333,000 (h)
Cincinnati Bell Inc.
8.25% 10/15/17........ 210,000 212,625
8.75% 03/15/18........ 134,000 135,173
Citigroup, Inc.
5.00% 09/15/14........ 147,000 146,793
5.13% 05/05/14........ 165,000 168,590
6.38% 08/12/14........ 61,000 65,166
8.50% 05/22/19........ 609,000 710,816 (h)
City National Capital Trust I
9.63% 02/01/40........ 105,000 116,658
Clarendon Alumina Production Ltd.
8.50% 11/16/21........ 100,000 99,000 (b,h)
Comcast Corp.
6.40% 03/01/40........ 116,000 117,906
6.50% 01/15/15........ 117,000 131,701
Community Health Systems, Inc.
8.88% 07/15/15........ 66,000 68,310
Consolidated Edison Company of
New York Inc.
5.85% 04/01/18........ 12,000 13,133
6.65% 04/01/19........ 121,000 138,294
Corp Nacional del Cobre de Chile
5.63% 09/21/35........ 22,000 21,160 (b)
Corp Pesquera Inca SAC
9.00% 02/10/17........ 15,000 15,150 (b)
COX Communications Inc.
6.25% 06/01/18........ 127,000 135,065 (b,h)
7.13% 10/01/12........ 100,000 111,766 (h)
Credit Suisse
6.00% 02/15/18........ 213,000 225,520 (h)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
106
[GRAPHIC]
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Credit Suisse AG
5.40% 01/14/20.......... $ 166,000 $ 167,298
Credit Suisse First Boston
International for CJSC The EXIM of
Ukraine
7.65% 09/07/11.......... 100,000 99,250
Crown Castle Towers LLC
6.11% 01/15/40.......... 110,000 115,064 (b)
CVS Caremark Corp.
5.75% 06/01/17.......... 58,000 62,547
6.13% 09/15/39.......... 174,000 172,935
DASA Finance Corp.
8.75% 05/29/18.......... 222,000 237,540
Denbury Resources, Inc.
8.25% 02/15/20.......... 112,000 118,720
DirecTV Financing Company Inc.
4.75% 10/01/14.......... 50,000 52,236 (b)
5.88% 10/01/19.......... 134,000 139,452 (b)
DIRECTV Holdings LLC
5.20% 03/15/20.......... 134,000 131,924 (b)
DISH DBS Corp.
6.63% 10/01/14.......... 132,000 132,990
Dolphin Energy Ltd.
5.89% 06/15/19.......... 99,000 101,723 (b)
Drummond Company Inc.
7.38% 02/15/16.......... 30,000 29,250
Duke Energy Indiana Inc.
6.35% 08/15/38.......... 79,000 84,235
Dynegy Holdings Inc.
7.50% 06/01/15.......... 212,000 175,960 (h)
EDP Finance BV
4.90% 10/01/19.......... 165,000 156,088 (b)
El Paso Corp.
8.05% 10/15/30.......... 112,000 111,806
Empresa Nacional del Petroleo
6.25% 07/08/19.......... 100,000 101,228 (b)
Enel Finance International S.A.
5.13% 10/07/19.......... 164,000 162,083 (b)
European Investment Bank
4.88% 01/17/17.......... 200,000 216,964 (h)
Exelon Corp.
4.90% 06/15/15.......... 166,000 173,011
Exelon Generation Company LLC
5.20% 10/01/19.......... 20,000 20,204
6.25% 10/01/39.......... 146,000 147,635
PRINCIPAL
AMOUNT VALUE
Export-Import Bank of Korea
5.88% 01/14/15......... $ 100,000 $ 107,795
Fibria Overseas Finance Ltd.
9.25% 10/30/19......... 100,000 114,000 (b)
Gaz Capital S.A.
9.25% 04/23/19......... 125,000 147,813
Genworth Financial Inc.
8.63% 12/15/16......... 104,000 113,491
GlaxoSmithKline Capital Inc.
4.85% 05/15/13......... 33,000 35,769
Globo Comunicacao e Participacoes
S.A.
7.25% 04/26/22......... 100,000 105,250 (b)
Hartford Financial Services Group
Inc.
5.50% 03/30/20......... 232,000 228,499
HCA Inc.
7.88% 02/15/20......... 264,000 276,375 (b)
8.50% 04/15/19......... 45,000 48,403 (b)
9.25% 11/15/16......... 296,000 314,685
Health Management Associates, Inc.
6.13% 04/15/16......... 159,000 151,448
Holcim US Finance Sarl & Cie SCS
6.00% 12/30/19......... 222,000 230,546 (b)
Host Hotels & Resorts LP (REIT)
9.00% 05/15/17......... 237,000 255,960 (b)
HSBC Finance Corp.
5.00% 06/30/15......... 287,000 298,878
5.70% 06/01/11......... 251,000 261,503
6.75% 05/15/11......... 125,000 131,388
HSBC Holdings PLC
6.80% 06/01/38......... 150,000 160,849
Hutchison Whampoa International
09/16 Ltd.
4.63% 09/11/15......... 100,000 102,775 (b)
Icahn Enterprises LP
8.00% 01/15/18......... 144,000 138,780 (b)
IIRSA Norte Finance Ltd.
8.75% 05/30/24......... 286,657 313,889 (b,h)
Illinois Power Co.
9.75% 11/15/18......... 178,000 228,133
Ingles Markets Inc.
8.88% 05/15/17......... 264,000 275,880
Intelsat Subsidiary Holding Company
Ltd.
8.88% 01/15/15......... 111,000 114,608
Intergen N.V.
9.00% 06/30/17......... 308,000 317,240 (b)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 107
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
International Paper Co.
7.50% 08/15/21..... $ 284,000 $ 322,713
JP Morgan Chase Capital XXV
(Series Y)
6.80% 10/01/37..... 55,000 54,748
JPMorgan Chase & Co.
5.13% 09/15/14..... 152,000 160,573
JPMorgan Chase Capital XXVII
7.00% 11/01/39..... 154,000 157,158
Kazakhstan Temir Zholy Finance BV
6.50% 05/11/11..... 100,000 101,000
KazMunaiGaz Finance Sub BV
11.75% 01/23/15..... 100,000 128,500 (b)
Korea Hydro & Nuclear Power
Company Ltd.
6.25% 06/17/14..... 100,000 109,578 (b)
Korea National Oil Corp.
5.38% 07/30/14..... 200,000 212,339 (b)
Kraft Foods Inc.
5.38% 02/10/20..... 188,000 191,075
Kreditanstalt fuer Wiederaufbau
3.50% 03/10/14..... 624,000 649,360
4.13% 10/15/14..... 312,000 327,348
4.50% 07/16/18..... 179,000 188,208
L-3 Communications Corp.
5.88% 01/15/15..... 132,000 134,310
Lincoln National Corp.
8.75% 07/01/19..... 195,000 238,441
Lloyds TSB Bank PLC
4.38% 01/12/15..... 100,000 98,578 (b)
5.80% 01/13/20..... 398,000 388,324 (b)
Majapahit Holding BV
7.25% 10/17/11..... 200,000 211,750 (b)
7.75% 10/17/16..... 211,000 231,309 (b)
7.75% 01/20/20..... 100,000 108,500
Merrill Lynch & Company Inc.
6.05% 08/15/12..... 119,000 127,093
6.88% 04/25/18..... 209,000 225,233
Midamerican Energy Holdings Co.
6.13% 04/01/36..... 9,000 9,068
Morgan Stanley
5.50% 01/26/20..... 165,000 161,393
5.63% 09/23/19..... 233,000 232,178
6.00% 04/28/15..... 133,000 142,472
7.30% 05/13/19..... 343,000 378,949
Motiva Enterprises LLC
6.85% 01/15/40..... 110,000 118,541 (b)
PRINCIPAL
AMOUNT VALUE
Naftogaz Ukraine
9.50% 09/30/14......... $ 100,000 $ 104,053 (o)
National Agricultural Cooperative
Federation
5.00% 09/30/14......... 108,000 111,898 (b)
Navistar International Corp.
8.25% 11/01/21......... 118,000 120,360
NET Servicos de Comunicacao S.A.
7.50% 01/27/20......... 100,000 105,500 (b)
New Communications Holdings Inc.
8.25% 04/15/17......... 68,000 69,190 (b)
Newmont Mining Corp.
6.25% 10/01/39......... 262,000 261,992
News America Inc.
5.65% 08/15/20......... 82,000 86,398
6.65% 11/15/37......... 156,000 164,066
Nexen Inc.
6.20% 07/30/19......... 210,000 226,410
7.50% 07/30/39......... 140,000 159,695
Nextel Communications, Inc.
(series D)
7.38% 08/01/15......... 112,000 106,400
Nisource Finance Corp.
6.13% 03/01/22......... 100,000 104,334
Noble Group Ltd.
6.75% 01/29/20......... 100,000 103,375 (b)
Nomura Holdings Inc.
5.00% 03/04/15......... 58,000 59,288
6.70% 03/04/20......... 58,000 60,193
NRG Energy, Inc.
7.38% 02/01/16......... 300,000 297,750
Pacific Gas & Electric Co.
5.80% 03/01/37......... 120,000 119,071
Pacificorp
6.00% 01/15/39......... 500,000 514,075
6.25% 10/15/37......... 6,000 6,371
PAETEC Holding Corp.
8.88% 06/30/17......... 19,000 19,523
8.88% 06/30/17......... 137,000 140,768 (b)
Pemex Finance Ltd.
9.03% 02/15/11......... 60,600 62,248 (h)
Pemex Project Funding Master Trust
6.63% 06/15/38......... 30,000 29,085 (b)
Petrobras International Finance Co.
5.75% 01/20/20......... 110,000 112,694
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
108
[GRAPHIC]
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Petroleos Mexicanos
4.88% 03/15/15....... $ 200,000 $ 205,400 (b)
6.00% 03/05/20....... 40,000 41,000 (b)
8.00% 05/03/19....... 20,000 23,450
Petroleum Company of Trinidad &
Tobago Ltd.
6.00% 05/08/22....... 100,000 94,000 (b)
Petronas Capital Ltd.
5.25% 08/12/19....... 100,000 101,372 (b)
Pioneer Natural Resources Co.
7.50% 01/15/20....... 229,000 235,617
Plains All American Pipeline LP
4.25% 09/01/12....... 178,000 184,931
Principal Financial Group, Inc.
8.88% 05/15/19....... 87,000 104,474
ProLogis (REIT)
6.88% 03/15/20....... 112,000 110,626
Prudential Financial, Inc.
3.63% 09/17/12....... 58,000 59,649
3.88% 01/14/15....... 166,000 165,688
5.15% 01/15/13....... 60,000 63,662
7.38% 06/15/19....... 130,000 149,082
QVC Inc.
7.50% 10/01/19....... 97,000 98,940 (b)
RailAmerica, Inc.
9.25% 07/01/17....... 94,000 100,228
Republic Services Inc.
5.00% 03/01/20....... 82,000 80,410 (b)
5.25% 11/15/21....... 104,000 102,811 (b)
5.50% 09/15/19....... 82,000 83,980 (b)
Reynolds Group DL Escrow Inc.
7.75% 10/15/16....... 100,000 102,750 (b)
Rockies Express Pipeline LLC
5.63% 04/15/20....... 326,000 320,952 (b)
RR Donnelley & Sons Co.
4.95% 04/01/14....... 167,000 167,838
RSHB Capital SA for OJSC Russian
Agricultural Bank
6.30% 05/15/17....... 100,000 103,740 (b)
Sabine Pass LNG LP
7.25% 11/30/13....... 110,000 103,400
7.50% 11/30/16....... 75,000 66,188
SBA Telecommunications Inc.
8.00% 08/15/16....... 50,000 52,625 (b)
8.25% 08/15/19....... 76,000 80,940 (b)
Security Benefit Life Insurance
8.75% 05/15/16....... 25,000 15,000 (b)
PRINCIPAL
AMOUNT VALUE
Simon Property Group LP (REIT)
5.65% 02/01/20.............. $ 220,000 $ 214,641
6.75% 05/15/14.............. 146,000 159,733
Solutia Inc.
7.88% 03/15/20.............. 112,000 113,400
Southern Copper Corp.
7.50% 07/27/35.............. 100,000 104,208
Star Energy Geothermal Wayang
Windu Ltd.
11.50% 02/12/15.............. 100,000 105,250 (b)
Talecris Biotherapeutics Holdings
Corp.
7.75% 11/15/16.............. 400,000 402,000 (b)
Talisman Energy Inc.
7.75% 06/01/19.............. 36,000 42,896
Teachers Insurance & Annuity
Association of America
6.85% 12/16/39.............. 126,000 136,676 (b)
Telecom Italia Capital S.A.
7.18% 06/18/19.............. 302,000 326,041
Tesoro Corp. (Series B)
6.63% 11/01/15.............. 304,000 291,080
The AES Corp.
8.00% 10/15/17 - 06/01/20... 95,000 95,488
The Dow Chemical Co.
5.90% 02/15/15.............. 166,000 179,716
8.55% 05/15/19.............. 170,000 205,656
The Goldman Sachs Group Inc.
5.38% 03/15/20.............. 116,000 114,927
The Kroger Co.
6.15% 01/15/20.............. 240,000 260,534
The Potomac Edison Co.
5.35% 11/15/14.............. 112,000 117,532 (h)
The Travelers Companies, Inc.
5.80% 05/15/18.............. 120,000 128,547
The Williams Companies, Inc.
7.88% 09/01/21.............. 116,000 136,581
Time Warner Cable Inc.
5.00% 02/01/20.............. 128,000 126,206
6.75% 07/01/18.............. 144,000 160,900
7.50% 04/01/14.............. 108,000 124,681
Time Warner Inc.
5.88% 11/15/16.............. 154,000 168,251
6.20% 03/15/40.............. 116,000 114,517
TNK-BP Finance S.A.
6.25% 02/02/15.............. 40,000 42,000 (b)
7.25% 02/02/20.............. 25,000 26,063 (b)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 109
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Union Electric Co.
6.70% 02/01/19...... $ 68,000 $ 75,222
UPC Germany GmbH
8.13% 12/01/17...... 100,000 103,125 (b)
USB Capital XIII Trust
6.63% 12/15/39...... 163,000 164,998
Vale Overseas Ltd.
6.88% 11/10/39...... 22,000 22,795
Valero Energy Corp.
6.13% 02/01/20...... 222,000 222,056
Vedanta Resources PLC
9.50% 07/18/18...... 100,000 110,500 (b)
Verizon Communications Inc.
6.35% 04/01/19...... 152,000 168,296
6.40% 02/15/38...... 80,000 83,003
6.90% 04/15/38...... 120,000 132,347
8.75% 11/01/18...... 136,000 170,613
Verizon Wireless Capital LLC
5.55% 02/01/14...... 238,000 260,096
7.38% 11/15/13...... 137,000 158,471
VIP Finance Ireland Ltd. for OJSC
Vimpel Communications (Class A)
8.38% 04/30/13...... 100,000 108,250 (b)
Virgin Media Finance PLC
8.38% 10/15/19...... 100,000 102,750
Voto-Votorantim Ltd.
6.75% 04/05/21...... 100,000 98,750 (b)
VTB Capital S.A.
6.47% 03/04/15...... 100,000 102,250 (b)
WEA Finance LLC
6.75% 09/02/19...... 118,000 125,916 (b)
7.50% 06/02/14...... 194,000 217,144 (b)
Williams Partners LP
5.25% 03/15/20...... 94,000 94,192 (b)
6.30% 04/15/40...... 166,000 164,955 (b)
Windstream Corp.
7.88% 11/01/17...... 311,000 306,335
Woodside Finance Ltd.
4.50% 11/10/14...... 269,000 275,607 (b)
Woori Bank
4.50% 10/07/15...... 100,000 99,423 (b)
Wyeth
5.50% 03/15/13...... 219,000 239,709
XL Capital Ltd.
5.25% 09/15/14...... 256,000 264,637
Xstrata Finance Canada Ltd.
5.80% 11/15/16...... 116,325 121,367 (b)
36,299,128
PRINCIPAL
AMOUNT VALUE
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 10.2%
Banc of America Commercial
Mortgage Inc.
5.63% 07/10/46...... $ 249,000 $ 252,452
Banc of America Commercial
Mortgage Inc. (Class A)
5.49% 02/10/51...... 158,750 150,721
5.66% 06/10/49...... 280,000 252,267 (h)
Banc of America Commercial
Mortgage Inc. (Class C)
5.70% 04/10/49...... 100,000 22,357 (h,i,q)
Banc of America Funding Corp.
5.26% 02/20/36...... 78,542 2,086 (h,i,q)
5.48% 03/20/36...... 110,180 5,215 (h,i,q)
Banc of America Mortgage Securities
Inc. (Class B)
5.13% 01/25/36...... 106,686 8,959 (h,i,q)
5.32% 02/25/36...... 87,943 16,478 (h,i,q)
Bear Stearns Commercial Mortgage
Securities
5.24% 12/11/38...... 100,000 87,413
5.33% 02/11/44...... 180,000 173,428
5.41% 03/11/39...... 93,396 95,263 (h,i)
5.46% 03/11/39...... 100,000 82,660 (i)
5.69% 06/11/50...... 230,000 227,626 (i)
5.72% 06/11/40...... 110,000 66,180 (i)
6.21% 11/11/17...... 140,000 79,130 (i)
Bear Stearns Commercial Mortgage
Securities (Class A)
5.46% 04/12/38...... 52,000 52,984 (i)
5.92% 06/11/50...... 120,000 101,507 (i)
Bear Stearns Commercial Mortgage
Securities (Class D)
5.99% 09/11/42...... 40,000 14,018 (h,i,q)
Citigroup Commercial Mortgage
Trust
0.30% 04/15/22...... 368,264 324,659 (b,h,i)
Citigroup Commercial Mortgage
Trust. (Class A)
5.48% 10/15/49...... 110,000 69,135
Commercial Mortgage Pass Through
Certificates
0.33% 12/15/20...... 139,714 127,139 (b,h,i)
5.77% 06/10/46...... 260,000 268,394 (h)
Countrywide Alternative Loan Trust
(Class B)
6.00% 08/25/36...... 1,998 -- **(h,q)
Countrywide Asset-Backed
Certificates
0.53% 11/25/35...... 450,806 412,531 (h,i)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
110
[GRAPHIC]
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Countrywide Commercial Mortgage
Trust
5.46% 07/12/46........ $ 250,000 $ 209,465
Credit Suisse Mortgage Capital
Certificates (Class C)
5.65% 02/25/36........ 80,863 5,766 (h,i,q)
CS First Boston Mortgage Securities
Corp.
1.40% 03/15/35........ 3,424,184 -- **(h,i,q)
5.34% 10/25/35........ 101,322 11,145 (h,i,q)
Greenwich Capital Commercial
Funding Corp.
5.44% 03/10/39........ 350,000 340,374 (h)
5.60% 12/10/49........ 605,000 618,464 (h)
5.74% 12/10/49........ 548,000 532,685 (h)
GS Mortgage Securities Corp II
5.55% 04/10/38........ 400,000 402,013 (i)
Impac CMB Trust (Class A)
0.51% 10/25/35........ 824,224 451,222 (h,i)
Indymac INDA Mortgage Loan Trust
5.26% 01/25/36........ 59,792 454 (h,i,q)
Indymac INDA Mortgage Loan Trust
(Class B)
5.26% 01/25/36........ 71,450 3,488 (h,i,q)
Interstar Millennium Trust (Class A)
0.66% 03/14/36........ 12,755 12,181 (i)
JP Morgan Chase Commercial
Mortgage Securities Corp.
5.34% 08/12/37........ 490,000 509,430 (i)
5.50% 06/12/47........ 60,000 31,200 (i)
6.07% 02/12/51........ 330,000 295,706
6.20% 02/12/51........ 60,000 10,892 (i,q)
JP Morgan Chase Commercial
Mortgage Securities Corp. (Class A)
5.82% 06/15/49........ 646,000 619,448
5.90% 02/12/51........ 220,000 184,070 (i)
LB-UBS Commercial Mortgage Trust
1.00% 01/15/36........ 1,363,051 63,635 (d,h,q)
1.99% 04/15/41........ 50,000 31,660 (d)
4.95% 09/15/30........ 120,000 121,721
5.66% 03/15/39........ 429,000 439,283 (i)
5.87% 09/15/45........ 280,000 275,625 (i)
LB-UBS Commercial Mortgage Trust
(Class B)
6.65% 07/14/16........ 66,000 68,028 (h,q)
LB-UBS Commercial Mortgage Trust
(Class F)
6.24% 07/15/40........ 105,000 14,949 (i,q)
PRINCIPAL
AMOUNT VALUE
Lehman Brothers Floating Rate
Commercial Mortgage Trust
0.53% 06/15/22....... $ 167,387 $ 154,762 (b,i)
MASTR Alternative Loans Trust
5.00% 08/25/18....... 101,912 9,772 (g,h,q,r)
Morgan Stanley Capital I
5.16% 10/12/52....... 150,000 153,862 (i)
5.28% 12/15/43....... 117,000 121,198
5.36% 11/12/41....... 385,000 344,997
5.39% 11/12/41....... 341,000 210,697 (h,i)
5.45% 02/12/44....... 243,000 231,839 (i)
5.69% 04/15/49....... 300,000 275,130 (h,i)
Puma Finance Ltd. (Class A)
0.63% 10/11/34....... 36,013 34,911 (i)
Residential Accredit Loans Inc.
6.00% 01/25/36....... 83,262 1,502 (h,q)
Residential Funding Mortgage
Securities I
5.75% 01/25/36....... 171,642 11,428 (h,q)
Structured Asset Securities Corp.
(Class X)
2.19% 02/25/28....... 60,968 -- **(i,q)
Thornburg Mortgage Securities Trust
(Class A)
0.93% 04/25/43....... 63,056 54,052 (i)
Wachovia Bank Commercial
Mortgage Trust
5.25% 12/15/43....... 230,000 229,441
5.52% 01/15/45....... 160,000 107,539 (i)
Wachovia Bank Commercial
Mortgage Trust (Class A)
6.00% 06/15/45....... 60,000 39,537 (i)
WaMu Mortgage Pass Through
Certificates
0.59% 01/25/45....... 132,602 91,708 (i)
Wells Fargo Mortgage Backed
Securities Trust
5.50% 01/25/36....... 102,993 14,633 (h,q)
Wells Fargo Mortgage Backed
Securities Trust (Class B)
5.50% 03/25/36....... 224,433 46,483 (h,q)
10,278,997
SOVEREIGN BONDS -- 3.7%
Government of Argentina
2.50% 12/31/38....... 112,155 40,264
8.28% 12/31/33....... 57,297 42,973
Government of Belize
6.00% 02/20/29....... 45,100 31,119 (j)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 111
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL
AMOUNT VALUE
Government of Brazil
5.63% 01/07/41..... $ 200,000 $ 188,300
8.00% 01/15/18..... 104,000 121,212 (h)
8.25% 01/20/34..... 112,000 142,800
Government of Colombia
6.13% 01/18/41..... 100,000 95,500
Government of Dominican
9.04% 01/23/18..... 106,019 116,621
9.50% 09/27/11..... 77,728 81,225
Government of El Salvador
7.65% 06/15/35..... 40,000 42,100 (b)
Government of Hellenic Republic
6.25% 06/19/20..... 164,000 213,089
Government of Lebanon
4.00% 12/31/17..... 72,800 69,524
Government of Manitoba Canada
4.90% 12/06/16..... 130,000 140,572
Government of Panama
5.20% 01/30/20..... 100,000 100,750
6.70% 01/26/36..... 115,000 122,188
Government of Peruvian
6.55% 03/14/37..... 146,000 156,220
Government of Philippines
6.50% 01/20/20..... 100,000 107,750
Government of Poland
6.38% 07/15/19..... 38,000 41,630
Government of Quebec Canada
7.50% 09/15/29..... 185,000 240,789
Government of South Africa
5.50% 03/09/20..... 100,000 100,875
Government of Turkey
5.63% 03/30/21..... 200,000 196,500
Government of Uruguay
6.88% 09/28/25..... 37,560 40,753
Government of Venezuela
1.25% 04/20/11..... 22,000 20,460 (i)
5.38% 08/07/10..... 174,000 173,130
10.75% 09/19/13..... 64,000 62,560
Hellenic Republic Government Bond
6.10% 08/20/15..... 498,000 671,573
Korea Expressway Corp.
4.50% 03/23/15..... 100,000 101,509 (b)
Republic of Indonesia
5.88% 03/13/20..... 100,000 103,750 (b)
Russian Foreign Bond - Eurobond
7.50% 03/31/30..... 124,759 143,797 (j)
PRINCIPAL
AMOUNT VALUE
United Mexican States
5.13% 01/15/20....... $ 67,000 $ 67,670
3,777,203
MUNICIPAL BONDS AND NOTES -- 0.4%
American Municipal Power-Ohio Inc.
6.05% 02/15/43....... 94,000 90,367
Municipal Electric Authority of
Georgia
6.64% 04/01/57....... 174,000 172,585
New Jersey State Turnpike Authority
7.41% 01/01/40....... 80,000 93,154
New Jersey Transportation Trust
Fund Authority
6.88% 12/15/39....... 50,000 51,400
407,506
TOTAL BONDS AND NOTES
(COST $91,192,856)................ 90,879,399
NUMBER
OF SHARES VALUE
PREFERRED STOCK -- 0.2%
-------------------------------------------------------------------
Citigroup Capital XII
(COST $173,750)................... 6,950 178,407 (i)
-------------------------------------------------------------------
OTHER INVESTMENTS -- 0.4%
-------------------------------------------------------------------
GEI Investment Fund
(COST $477,239)................... 396,108 (k)
TOTAL INVESTMENT IN SECURITIES
(COST $91,843,845)................ 91,453,914
-------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 12.3%
-------------------------------------------------------------------
GE Money Market Fund
Institutional Class
0.00%
(COST $12,482,685)................ 12,482,685 (d,k)
TOTAL INVESTMENTS
(COST $104,326,530)............... 103,936,599
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET -- (2.6)%.... (2,597,595)
------------
NET ASSETS -- 100.0%............... $101,339,004
============
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
112
[GRAPHIC]
GE FIXED INCOME FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
OTHER INFORMATION
------------------------
The GE Fixed Income Fund had the following short futures contracts open at
March 31, 2010 (unaudited):
NUMBER UNREALIZED
EXPIRATION OF CURRENT APPRECIATION/
DESCRIPTION DATE CONTRACTS NOTIONAL VALUE (DEPRECIATION)
------------------------------------------------------------------------
German Euro Bobl
Futures June 2010 4 $ (633,684) $(1,666)
German Euro Bund
Futures June 2010 1 (166,905) 416
UK Long Gilt Bond
Futures June 2010 7 (1,218,450) (2,031)
5 Yr. U.S. Treasury
Notes Futures June 2010 37 (4,249,219) 10,234
10 Yr. U.S. Treasury
Notes Futures June 2010 125 (14,531,250) 42,829
The GE Fixed Income Fund had the following long futures contracts open at March
31, 2010 (unaudited):
NUMBER CURRENT
EXPIRATION OF NOTIONAL UNREALIZED
DESCRIPTION DATE CONTRACTS VALUE APPRECIATION
-----------------------------------------------------------------
2 Yr. U.S. Treasury
Notes Futures June 2010 10 $2,169,531 $ 1,129
-------
$50,911
=======
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 113
[GRAPHIC]
GE Money Market Fund
[PHOTO]
Michael E. Martini
Vice President
Michael E. Martini
Vice President
The GE Money Market Fund is managed by a team of portfolio managers that
includes Adam W. Ackermann, James C. Gannon and Michael E. Martini. As lead
portfolio manager for the GE Money Market Fund, Mr. Martini has oversight
responsibility over the Fund. See portfolio managers' biographical information
beginning on page 184.
Q.HOW DID THE GE MONEY MARKET FUND PERFORM COMPARED TO ITS BENCHMARK AND
MORNINGSTAR PEER GROUP FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 2010?
A.For the six-month period ended March 31, 2010, the GE Money Market Fund
returned 0.00% for Retail Class shares and 0.01% for Institutional Class
shares. The 90-day U.S. Treasury Bill, the Fund's benchmark, returned 0.04%
and the Fund's Morningstar peer group of 809 Money Market Taxable Funds
returned an average of 0.02% for the same period.
Q.DESCRIBE WHAT HAPPENED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDED MARCH 31, 2010.
A.The US economy and fixed income markets continued to improve over the
six-month period ending March 31, 2010, primarily from rebuilding of
inventory and public sector programs. Unemployment fell from its peak of
10.1% in October 2009 to 9.7% in March of 2010 and inflation remained subdued
posting 1.3% (year-over-year Personal Consumption Expenditures (PCE) Core
Price Index) in February of 2010. The Federal Reserve kept its fed funds
target at 0.0-0.25% maintaining its intention to keep interest rates low "for
an extended period." In February, however, the committee did raise the
discount rate from 0.5% to 0.75%. Fed Chairman Bernanke explained the move
was a "normalization" of bank lending and should not be interpreted as a
change in monetary policy. Interest rates rose and the yield curve steepened
during the period. US Treasury 2-year and 10-year note yields ended March at
1.02% and 3.83% respectively, up 7 and 52 basis points. Credit-related
securities outperformed government securities, including agency
mortgage-backed bonds as yield spreads narrowed. Commercial mortgaged-backed
securities performed best, returning 12.68% followed by high yield which
returned 11.1%. US treasuries lost -0.2% due to the increase in yields.
Q.WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A.The primary driver of Fund performance was maturity management. As global
central banks extended easy monetary policies into the beginning of 2009,
rates continued to decline, in many cases reaching all-time historic lows.
Since forward market expectations priced in the anticipation that the Federal
Reserve will continue to keep rates "low for long", supported by continued
official rhetoric to that extent, the Fund's average days to maturity
remained within a range of 45-55 days. It was only toward the end of the
first quarter of 2010 that the Fund's average days to maturity began
shortening, as the Fed started normalizing financial conditions through the
termination of liquidity facilities created during 2008 as well as increasing
the discount rate.
114
[GRAPHIC]
[GRAPHIC]
GE Money Market Fund
Understanding Your Fund's Expenses
As a shareholder of the Fund you incur transaction and ongoing expenses.
Transaction expenses including sales charges on purchase payments, reinvested
dividends (or other distributions), and redemption fees directly reduce the
investment return of the Fund. Ongoing costs include portfolio management fees,
distribution and service fees, professional fees, administrative fees and other
Fund expenses. The following example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated
the expenses paid by investors in each share class of the Fund during the
period. The information in the following table is based on an investment of
$1,000, which is invested at the beginning of the period and held for the
entire six-month period ended March 31, 2010.
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
$1,000 = 8.6), then multiply the result by the number given for your class
under the heading "Expenses paid during the period."
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table provides information about hypothetical account
values and hypothetical expenses based on the Fund's actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholders reports of other funds.
Please note that the expenses shown in the table do not reflect any transaction
costs, such as sales charges or redemption fees.
OCTOBER 1, 2009 - MARCH 31, 2010
- ----------------------------------------------------------------------------------------------------
ACCOUNT VALUE AT THE ACCOUNT VALUE AT THE EXPENSES PAID
BEGINNING OF THE PERIOD ($) END OF THE PERIOD ($) DURING THE PERIOD ($)*
- ----------------------------------------------------------------------------------------------------
ACTUAL RETURN
- ----------------------------------------------------------------------------------------------------
Retail Class $1,000.00 $1,000.01 1.99
Institutional Class $1,000.00 $1,000.06 1.40
- ----------------------------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN (2.5% FOR THE PERIOD)
- ----------------------------------------------------------------------------------------------------
Retail Class $1,000.00 $1,022.68 2.02
Institutional Class $1,000.00 $1,023.26 1.41
- ----------------------------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio of 0.25% for Retail
Class Shares and 0.24% for for Institutional Class Shares, (for the period
October 1, 2009 -- March 31, 2010) multiplied by the average account value
over the period, multiplied by 182/365 (to reflect the six month period).
**Actual Fund Returns for the six-month period ended March 31, 2010 were as
follows: 0.00% for Retail Class shares and 0.01% for Institutional Class
shares.
[GRAPHIC] 115
[GRAPHIC]
GE Money Market Fund
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.
MORNINGSTAR PERFORMANCE COMPARISON
Money Market Taxable Peer Group
Based on average annual returns for periods ended 3/31/10
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds in peer group 809 773 659 478
-----------------------------------------------------------------
Peer group average annual total return* 0.02% 0.08% 2.67% 2.45%
-----------------------------------------------------------------
Morningstar Category in peer group: Money Market Taxable
*Morningstar performance comparisons are based on average annual total returns
for the six-months, one-year, five-year and ten-year periods indicated in the
Money Market Taxable peer group consisting of 809, 773, 659 and 478 underlying
funds, respectively.
- --------------------------------------------------------------------------------
CHANGE IN VALUE OF A $10,000 INVESTMENT
RETAIL SHARES
[CHART]
GE Money Market 90 Day T-Bill
---------------- ---------------
03/00 10,000.00 10,000.00
09/00 10,303.69 10,298.47
09/01 10,804.88 10,764.92
09/02 10,986.68 10,956.30
09/03 11,092.40 11,080.60
09/04 11,191.33 11,204.64
09/05 11,455.56 11,511.93
09/06 11,957.69 12,037.61
09/07 12,566.49 12,620.56
09/08 12,949.67 12,896.78
09/09 13,035.71 12,923.57
03/10 13,035.85 12,928.90
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2010
ENDING
VALUE OF A
SIX ONE FIVE TEN $10,000
MONTHS YEAR YEAR YEAR COMMENCEMENT INVESTMENT (A)
------ ---- ---- ---- ------------ --------------
GE Money Market Fund 0.00% 0.09% 2.91% 2.69% 01/05/93 13,036
90 Day T-Bill 0.04% 0.12% 2.67% 2.60% 12,929
[GRAPHIC]
- --------------------------------------------------------------------------------
INSTITUTIONAL SHARES
[CHART]
GE Money Market 90 Day T-Bill
--------------- -------------
03/17/08 10,000.00 10,000.00
06/08 10,048.34 10,041.84
09/08 10,100.95 10,078.68
12/08 10,141.59 10,086.13
03/09 10,159.87 10,091.26
06/09 10,169.83 10,095.58
09/09 10,176.51 10,099.62
12/09 10,177.12 10,101.12
03/10 10,177.15 10,103.79
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIODS ENDED MARCH 31, 2009
ENDING
VALUE OF A
SIX ONE SINCE $10,000
MONTHS YEAR INCEPTION COMMENCEMENT INVESTMENT (A)
------ ---- --------- ------------ --------------
GE Money Market Fund 0.01% 0.17% 0.91% 03/17/08 10,177
90 Day T-Bill 0.04% 0.12% 1.00%** 10,104
[GRAPHIC]
**Index returns are not available for the Fund's inception date and therefore
are calculated from the month end nearest to the class shares' inception date.
- --------------------------------------------------------------------------------
116
[GRAPHIC]
[GRAPHIC]
GE Money Market Fund
FUND YIELD
AT MARCH 31, 2010 (UNAUDITED)
- --------------------------------------------------------------------------------
Fund
--------------------
Retail Institutional
Class++ Class++ IBC Money Fund*
------- ------------- ---------------
7-day current+ 0.00% 0.00% 0.05%
7-day effective 0.00% 0.00% 0.05%
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, 2010.
++GEAM has voluntarily undertaken to reduce its management fee and/or subsidize
certain expenses of the Fund to the extent necessary to maintain a minimum
annualized net yield of 0.00% for all share classes. This voluntary
management fee reduction and/or expense subsidy may be modified or
discontinued by GEAM at any time without prior notice. There can be no
assurance that this fee reduction will be sufficient to avoid any loss.
*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.
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.
[GRAPHIC] 117
GE MONEY MARKET FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
GE MONEY MARKET FUND
Portfolio Composition as a % of Market Value of $817,058 (in thousands) as of
March 31, 2010 (unaudited)
[CHART]
Certificates of Deposit 28.3%
Commercial Paper 24.2%
Corporate Notes 19.2%
Agency 15.7%
Repurchase Agreements 8.2%
Time Deposit 4.4%
PRINCIPAL AMORTIZED
AMOUNT COST
SHORT-TERM INVESTMENTS -- 99.4%+
-----------------------------------------------------------
AGENCY -- 15.7%
FHLB Disc Corp
0.14% 04/09/10............ $11,750,000 $ 11,749,634 (d)
0.15% 05/21/10............ 18,300,000 18,296,187 (d)
FNMA Discount Note
0.18% 06/14/10 - 06/16/10. 43,150,000 43,133,823 (d)
Freddie Discount
0.20% 09/02/10............ 16,600,000 16,585,798 (d)
Freddie Mac
0.15% 07/12/10............ 14,550,000 14,549,784 (d)
2.38% 05/28/10............ 24,200,000 24,280,455
128,595,681
COMMERCIAL PAPER -- 24.1%
Allied Irish Banks NA
0.55% 06/03/10............ 31,200,000 31,169,970 (d)
Banco Bilbao Viz London
0.31% 07/16/10............ 17,650,000 17,633,889 (d)
Bank of America Corp.
0.17% 04/16/10............ 22,300,000 22,298,420 (d)
Danske Corp.
0.20% 04/20/10 - 05/17/10. 29,450,000 29,445,249 (d)
IBRD Discount Note
0.17% 04/13/10............ 14,150,000 14,149,198 (d)
Nordea North America
0.19% 05/04/10 - 05/19/10. 22,450,000 22,445,150 (d)
Royal Bank of Canada
0.22% 06/15/10............ 5,500,000 5,497,479 (d)
Societe Generale N Amer
0.23% 06/03/10............ 14,000,000 13,994,365 (d)
0.29% 05/17/10............ 18,893,000 18,885,999 (d)
PRINCIPAL AMORTIZED
AMOUNT COST
Toyota Motor Credit
0.21% 05/06/10...... $22,500,000 $ 22,495,406 (d)
198,015,125
REPURCHASE AGREEMENTS -- 8.1%
Deutsche Bank Gov Agcy Repo
0.02% dated 03/31/10, to be
repurchased at $23,800,013
on 04/01/09 collateralized by
$24,279,227 U.S.
Government Agency Bonds,
1.84%, maturing on 02/01/13.
04/01/10...................... 23,800,000 23,800,000 (d)
Goldman Sachs Gov Agcy Repo
0.01% dated 03/31/10, to be
repurchased at $12,600,002
on 04/01/09 collateralized
by $12,852,000 U.S.
Government Agency Bonds,
0.00% maturing on 04/14/10.
04/01/10...................... 12,600,000 12,600,000 (d)
HSBC Gov Agcy Repo
0.01% dated 03/31/10, to be
repurchased at $12,880,000
on 04/01/09 collateralized
by $131,141,140 U.S.
Government Agency Bonds,
8.50% maturing on 02/15/20.
04/01/10...................... 12,880,000 12,880,000 (d)
JPM Chase Gov Agcy Repo
0.01% dated 03/31/10, to be
repurchased at $17,4000,000
on 04/01/09 collateralized
by $17,752,009 U.S.
Government Agency Bonds,
0.00% maturing on 07/15/10.
04/01/10...................... 17,400,000 17,400,000 (d)
66,680,000
CORPORATE NOTES -- 19.1%
Abbey National Treasury Services
0.33% 02/25/11...... 34,900,000 34,900,000 (d)
Bank of Nova Scotia Houston
0.23% 12/17/10...... 21,000,000 21,000,000 (d)
Credit Agricole (London)
0.30% 05/28/10...... 2,290,000 2,288,744 (b,d)
Credit Agricole Corp
1.00% 05/04/10...... 15,000,000 15,010,387 (d)
Deutsche Bank Ag NY
0.86% 06/18/10...... 11,800,000 11,816,427 (d)
Glaxosmithline Cap Inc
0.88% 05/13/10...... 3,775,000 3,777,984 (d)
Goldman Sachs Group Inc FDIC
0.75% 12/03/10...... 17,350,000 17,414,997 (d)
Procter & Gamble
International Fn
0.26% 05/07/10...... 9,170,000 9,170,641 (d)
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
118
[GRAPHIC]
GE MONEY MARKET FUND March 31, 2010 (unaudited)
[GRAPHIC]
Schedule of Investments
PRINCIPAL AMORTIZED
AMOUNT COST
Rabobank Nederland NY
0.22% 07/23/10.... $11,150,000 $ 11,149,598 (d)
0.35% 04/26/10.... 6,270,000 6,270,000 (d)
Royal Bank of Canada NY
0.25% 02/24/11.... 13,000,000 13,000,000 (d)
Westpac Banking Corp NY
0.27% 10/06/10.... 11,150,000 11,149,942 (d)
156,948,720
CERTIFICATES OF DEPOSIT -- 28.1%
Australia & NZ Banking Group
0.35% 05/25/10.... 17,600,000 17,600,790 (d)
Banco Bilbao Viz Arg NY
0.31% 07/26/10.... 18,900,000 18,898,476 (d)
Bank of Montreal Chicago
0.19% 04/23/10.... 26,600,000 26,600,000 (d)
Barclays Bank PLC NY
0.44% 05/03/10.... 14,750,000 14,750,000 (d)
0.70% 04/15/10.... 22,870,000 22,870,000 (d)
BNP Paribas NY
0.22% 06/01/10.... 25,900,000 25,900,000 (d)
0.24% 07/01/10.... 11,250,000 11,250,000 (d)
Calyon NY
0.33% 07/07/10.... 18,200,000 18,200,000 (d)
Deutsche Bank Ag NY
0.19% 04/08/10.... 27,000,000 27,000,000 (d)
PRINCIPAL AMORTIZED
AMOUNT COST
Royal Bank Of Scotland CT
0.22% 04/19/10..... $17,000,000 $ 17,000,000 (d)
Svenska Handelsbanken NY
0.21% 05/19/10..... 16,500,000 16,500,110 (d)
Toronto-Dominion Bank NY
0.33% 05/17/10..... 14,650,000 14,650,187 (d)
231,219,563
TIME DEPOSIT -- 4.3%
Bank of Ireland
0.15% 04/01/10..... 25,910,000 25,910,000 (d)
State Street Corp.
0.01% 04/01/10..... 9,689,130 9,689,130 (e)
35,599,130
TOTAL SHORT TERM INVESTMENTS
(COST $817,058,219)........ 817,058,219
OTHER ASSETS AND LIABILITIES,
NET -- 0.6%..... 5,086,648
------------
NET ASSETS -- 100.0%........ $822,144,867
============
See Notes to Schedules of Investments on page 120 and Notes to Financial
Statements on page 154.
[GRAPHIC] 119
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Schedules of Investments
The views expressed in this document reflect our judgment as of the publication
date and are subject to change at any time without notice. The securities
information regarding holdings, allocations and other characteristics are
presented to illustrate examples of securities that the Fund has bought and the
diversity of areas in which the Fund may invest as of a particular date. It may
not be representative of the Fund's current or future investments and should
not be construed as a recommendation to purchase or sell a particular security.
Please see the Funds' prospectus for complete descriptions of investment
objectives, policies, risks and permissible investments.
(a)Non-income producing security.
(b)Pursuant to Rule 144A of the Securities Act of 1933, these securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At March 31, 2010, these securities amounted to
$3,967,518, $5,596,110, $13,323,917 and $2,288,744 or 3.01%, 5.20%, 13.15%
and 0.28% of the net assets of the GE Total Return Fund, GE Short-Term
Government Fund, GE Fixed Income Fund and the GE Money Market 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, 2010, 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, 2010.
(j)Step coupon bond. Security becomes interest bearing at a future date.
(k)GEAM, the investment adviser of the Fund, also serves as investment adviser
of the GEI Investment Fund and of the GE Money Market 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)Pre refunded 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, AGM, FSA, MBIA and FGIC. The GE Tax-Exempt
Fund had insurance concentrations of 5% or greater as of March 31, 2010 (as
a percentage of net assets) as follows:
AGM 9.05%
FGIC 5.36%
(o)Securities in default.
(p)Sponsored by SSgA Funds Management, Inc., an affiliate of State Street
Bank & Trust Co., the Fund's custodian and accounting agent.
(q)Illiquid securities. At March 31, 2010, these securities amounted to
$150,786 and $382,883 or 0.11% and 0.38% of net assets for the GE Total
Return Fund and GE Fixed Income Fund, respectively. These securities have
been determined to be illiquid using procedures established by the Board of
Trustees.
(r)Coupon amount represents the coupon of the underlying mortgage securities on
which monthly interest payments are based.
120
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Schedules of Investments
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.
* Less than 0.1%.
**Amount is less than $1.00.
+ Percentages are based on net assets as of March 31, 2010.
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 & Poor's Depository Receipts
STRIPS Separate Trading of Registered Interest and
Principal of Security
NVDR Non-Voting Depository Receipt
TBA To be announced
[GRAPHIC] 121
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE U.S. EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 03/31/10+ 9/30/09 9/30/08
- ---------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/5/93
Net asset value, beginning of
period.......................... $21.28 $22.74 $31.03 $30.00 $28.69 $26.41 $20.25 $21.52 $29.49
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b)...... 0.09 0.23 0.22 0.34 0.29 0.36 -- 0.10 0.02
Net realized and unrealized
gains (losses) on
investments................... 1.90 (1.22) (5.27) 4.27 2.76 2.11 1.82 (1.13) (5.00)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........... 1.99 (0.99) (5.05) 4.61 3.05 2.47 1.82 (1.03) (4.98)
- ---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.22 0.23 0.25 0.42 0.46 0.19 0.19 0.00 0.00(c)
Net realized gains............. -- 0.24 2.99 3.16 1.28 -- -- 0.24 2.99
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 0.22 0.47 3.24 3.58 1.74 0.19 0.19 0.24 2.99
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD... $23.05 $21.28 $22.74 $31.03 $30.00 $28.69 $21.88 $20.25 $21.52
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................. 9.41% (3.65%) (17.86%) 16.59% 11.13% 9.40% 9.03% (4.40%) (18.48%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).................... $199,982 $200,909 $236,786 $316,324 $298,764 $339,327 $645 $988 $2,222
Ratios to average net assets:
Net investment income*........ 0.81% 1.32% 0.85% 1.15% 1.00% 1.28% 0.05% 0.59% 0.09%
Net expenses*................. 0.79%(e) 0.81%(e) 0.79%(e) 0.76% 0.80% 0.78% 1.54%(e) 1.56%(e) 1.54%(e)
Gross expenses*............... 0.79% 0.81% 0.79% 0.76% 0.80% 0.78% 1.55% 1.56% 1.54%
Portfolio turnover rate........ 17% 49% 55% 53% 46% 36% 17% 49% 55%
- ---------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------
9/30/07 9/30/06 9/30/05
- ----------------------------------------------------------
INCEPTION DATE 12/22/93
Net asset value, beginning of
period.......................... $28.62 $27.36 $25.20
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b)...... 0.12 0.06 0.16
Net realized and unrealized
gains (losses) on
investments................... 4.06 2.64 2.00
- ----------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........... 4.18 2.70 2.16
- ----------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.15 0.16 --
Net realized gains............. 3.16 1.28 --
- ----------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 3.31 1.44 --
- ----------------------------------------------------------
NET ASSET VALUE, END OF PERIOD... $29.49 $28.62 $27.36
- ----------------------------------------------------------
TOTAL RETURN (A)................. 15.72% 10.28% 8.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).................... $4,910 $6,738 $12,406
Ratios to average net assets:
Net investment income*........ 0.43% 0.23% 0.58%
Net expenses*................. 1.51% 1.55% 1.53%
Gross expenses*............... 1.51% 1.55% 1.53%
Portfolio turnover rate........ 53% 46% 36%
- ----------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 03/31/10+ 9/30/09
- -------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $19.82 $21.10 $29.00 $28.24 $27.07 $24.93 $21.25 $22.71
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.01 0.09 0.02 0.12 0.07 0.15 0.06 0.19
Net realized and unrealized gains (losses) on
investments................................... 1.77 (1.10) (4.90) 4.00 2.60 1.99 1.91 (1.23)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS...................................... 1.78 (1.01) (4.88) 4.12 2.67 2.14 1.97 (1.04)
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.13 0.03 0.03 0.20 0.22 -- 0.18 0.18
Net realized gains............................. -- 0.24 2.99 3.16 1.28 -- -- 0.24
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.13 0.27 3.02 3.36 1.50 -- 0.18 0.42
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $21.47 $19.82 $21.10 $29.00 $28.24 $27.07 $23.04 $21.25
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 9.00% (4.36%) (18.47%) 15.71% 10.29% 8.58% 9.30% (3.93%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $3,031 $3,209 $4,658 $6,892 $7,649 $9,306 $9 $9
Ratios to average net assets:
Net investment income*........................ 0.06% 0.57% 0.10% 0.42% 0.25% 0.57% 0.59% 1.06%
Net expenses*................................. 1.54%(e) 1.56%(e) 1.54%(e) 1.51% 1.55% 1.53% 1.02%(e) 1.06%(e)
Gross expenses*............................... 1.55% 1.56% 1.54% 1.51% 1.55% 1.53% 1.02% 1.06%
Portfolio turnover rate........................ 17% 49% 55% 53% 46% 36% 17% 49%(d)
- -------------------------------------------------------------------------------------------------------------------------------
9/30/08
- ------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $25.12
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.11
Net realized and unrealized gains (losses) on
investments................................... (2.52)
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS...................................... (2.41)
- ------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00(d)
Net realized gains............................. 0.00(d)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.00(d)
- ------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $22.71
- ------------------------------------------------------------
TOTAL RETURN (A)................................. (9.59%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $9
Ratios to average net assets:
Net investment income*........................ 0.65%
Net expenses*................................. 1.04%(e)
Gross expenses*............................... 1.04%
Portfolio turnover rate........................ 55%(d)
- ------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
122
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE U.S. EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ---------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/29/93
Net asset value, beginning of period........................ $21.16 $22.65 $30.93 $29.92 $28.62 $26.35
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)................................. 0.12 0.28 0.29 0.41 0.37 0.44
Net realized and unrealized gains (losses) on investments. 1.89 (1.24) (5.25) 4.26 2.75 2.10
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 2.01 (0.96) (4.96) 4.67 3.12 2.54
- ---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.27 0.29 0.33 0.50 0.54 0.27
Net realized gains........................................ -- 0.24 2.99 3.16 1.28 --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.27 0.53 3.32 3.66 1.82 0.27
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $22.90 $21.16 $22.65 $30.93 $29.92 $28.62
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 9.54% (3.44%) (17.65%) 16.87% 11.40% 9.68%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $121,059 $110,137 $113,123 $136,756 $115,005 $306,532
Ratios to average net assets:
Net investment income*................................... 1.07% 1.56% 1.10% 1.39% 1.27% 1.56%
Net expenses*............................................ 0.54%(e) 0.56%(e) 0.54%(e) 0.51% 0.54% 0.53%
Gross expenses*.......................................... 0.54% 0.56% 0.54% 0.51% 0.54% 0.53%
Portfolio turnover rate................................... 17% 49% 55% 53% 46% 36%
- ---------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 123
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE CORE VALUE EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- -------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/8/93
Net asset value, beginning of period. $8.07 $8.86 $12.82 $11.93 $11.65 $10.94 $7.67 $8.36
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... 0.03 0.10 0.08 0.12 0.09 0.11 -- 0.04
Net realized and unrealized gains
(losses) on investments........... 0.72 (0.69) (1.80) 1.91 1.17 1.04 0.67 (0.63)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... 0.75 (0.59) (1.72) 2.03 1.26 1.15 0.67 (0.59)
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.08 0.10 0.08 0.14 0.10 0.09 0.05 0.00
Net realized gains................. -- 0.10 2.16 1.00 0.88 0.35 -- 0.10
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.08 0.20 2.24 1.14 0.98 0.44 0.05 0.10
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $8.74 $8.07 $8.86 $12.82 $11.93 $11.65 $8.29 $7.67
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... 9.33% (6.11%) (15.86%) 18.00% 11.58% 10.73% 8.78% (6.75%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $38,786 $34,466 $42,078 $56,907 $58,024 $47,633 $450 $626
Ratios to average net assets:
Net investment income (loss)*..... 0.78% 1.39% 0.76% 1.02% 0.80% 1.00% 0.01% 0.68%
Net expenses*..................... 1.36%(e) 1.33%(e) 1.17%(e) 1.20% 1.20% 1.20% 2.12%(e) 2.08%(e)
Gross expenses*................... 1.36% 1.52% 1.35% 1.20% 1.19% 1.21% 2.12% 2.27%
Portfolio turnover rate............ 19% 69% 67% 59% 52% 35% 19% 69%
- -------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- ----------------------------------------------------------------------------
INCEPTION DATE 9/8/93
Net asset value, beginning of period. $12.21 $11.38 $11.15 $10.47
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... (0.00)(c) 0.04 (0.00)(c) 0.03
Net realized and unrealized gains
(losses) on investments........... (1.69) 1.81 1.11 1.00
- ----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... (1.69) 1.85 1.11 1.03
- ----------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.00(c) 0.02 -- --
Net realized gains................. 2.16 1.00 0.88 0.35
- ----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 2.16 1.02 0.88 0.35
- ----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $8.36 $12.21 $11.38 $11.15
- ----------------------------------------------------------------------------
TOTAL RETURN (A)..................... (16.42%) 17.14% 10.66% 9.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $1,509 $2,967 $4,201 $6,342
Ratios to average net assets:
Net investment income (loss)*..... (0.01%) 0.33% 0.04% 0.29%
Net expenses*..................... 1.92%(e) 1.95% 1.95% 1.95%
Gross expenses*................... 2.10% 1.95% 1.95% 1.96%
Portfolio turnover rate............ 67% 59% 52% 35%
- ----------------------------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $7.54 $8.28 $12.12 $11.32 $11.10 $10.43 $8.06 $8.85
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... -- 0.04 (0.00)(c) 0.03 (0.00)(c) 0.03 0.02 0.08
Net realized and unrealized gains (losses) on
investments................................... 0.66 (0.64) (1.68) 1.81 1.11 0.99 0.72 (0.69)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... 0.66 (0.60) (1.68) 1.84 1.11 1.02 0.74 (0.61)
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.04 0.04 0.00(c) 0.04 0.01 -- 0.05 0.08
Net realized gains............................. -- 0.10 2.16 1.00 0.88 0.35 -- 0.10
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.04 0.14 2.16 1.04 0.89 0.35 0.05 0.18
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $8.16 $7.54 $8.28 $12.12 $11.32 $11.10 $8.75 $8.06
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 8.84% (6.76%) (16.45%) 17.18% 10.72% 9.85% 9.09% (6.35%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $2,261 $1,852 $1,098 $1,535 $1,625 $1,695 $9 $9
Ratios to average net assets:
Net investment income (loss)*................. 0.03% 0.60% 0.00% 0.29% 0.05% 0.24% 0.56% 1.11%
Net expenses*................................. 2.11%(e) 2.08%(e) 1.92%(e) 1.95% 1.95% 1.95% 1.58%(e) 1.58%(e)
Gross expenses*............................... 2.11% 2.27% 2.10% 1.95% 1.94% 1.96% 1.59% 1.77%
Portfolio turnover rate........................ 19% 69% 67% 59% 52% 35% 19% 69%
- ----------------------------------------------------------------------------------------------------------------------------------
9/30/08
- ------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $9.66
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... 0.04
Net realized and unrealized gains (losses) on
investments................................... (0.85)
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... (0.81)
- ------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00(c)
Net realized gains............................. 0.00(c)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.00(c)
- ------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $8.85
- ------------------------------------------------------------
TOTAL RETURN (A)................................. (8.39%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $9
Ratios to average net assets:
Net investment income (loss)*................. 0.59%
Net expenses*................................. 1.42%(e)
Gross expenses*............................... 1.60%
Portfolio turnover rate........................ 67%(d)
- ------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
124
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE CORE VALUE EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ---------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/5/98
Net asset value, beginning of period........................ $8.94 $9.79 $13.91 $12.71 $12.31 $11.54
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b).......................... 0.05 0.12 0.13 0.17 0.14 0.15
Net realized and unrealized gains (losses) on investments. 0.79 (0.75) (1.98) 2.15 1.27 1.10
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 0.84 (0.63) (1.85) 2.32 1.41 1.25
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.10 0.12 0.11 0.12 0.13 0.13
Net realized gains........................................ -- 0.10 2.16 1.00 0.88 0.35
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.10 0.22 2.27 1.12 1.01 0.48
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $9.68 $8.94 $9.79 $13.91 $12.71 $12.31
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 9.38% (5.83%) (15.56%) 19.25% 12.26% 10.91%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $263 $294 $9 $-- $-- $56
Ratios to average net assets:
Net investment income (loss)*............................ 1.03% 1.48% 1.13% 1.28% 1.11% 1.26%
Net expenses*............................................ 1.11%(e) 1.01%(e) 0.92%(e) 0.95% 0.95% 0.95%
Gross expenses*.......................................... 1.11% 1.07% 1.10% 0.95% 0.95% 0.96%
Portfolio turnover rate................................... 19% 69% 67% 59% 52% 35%
- ---------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 125
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE PREMIER GROWTH EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- -----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 12/31/96
Net asset value, beginning of
period.......................... $18.45 $20.84 $27.15 $27.64 $26.96 $24.71 $16.20 $18.62
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment loss (b)........ (0.02) 0.06 0.01 (0.02) 0.03 0.11 (0.06) (0.06)
Net realized and unrealized
gains (losses) on
investments................... 1.99 (1.27) (3.76) 3.64 1.23 2.19 1.72 (1.19)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........... 1.97 (1.21) (3.75) 3.62 1.26 2.30 1.66 (1.25)
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.05 0.01 0.00(c) -- -- 0.05 0.02 0.00
Net realized gains............. -- 1.17 2.56 4.11 0.58 -- -- 1.17
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 0.05 1.18 2.56 4.11 0.58 0.05 0.02 1.17
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD.......................... $20.37 $18.45 $20.84 $27.15 $27.64 $26.96 $17.84 $16.20
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................. 10.69% (3.58%) (14.92%) 14.24% 4.69% 9.31% 10.26% (4.29%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)................ $156,182 $149,681 $162,122 $215,568 $224,381 $358,382 $1,196 $2,474
Ratios to average net assets:
Net investment income
(loss)*...................... (0.17%) 0.36% 0.06% (0.07%) 0.12% 0.43% (0.94%) (0.46%)
Net expenses*................. 1.05%(e) 1.10%(e) 1.07%(e) 1.01% 1.02% 0.97% 1.81%(e) 1.85%(e)
Gross expenses*............... 1.05% 1.10% 1.07% 1.01% 1.02% 0.97% 1.81% 1.85%
Portfolio turnover rate........ 12% 27% 30% 28% 25% 34% 12% 27%
- -----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- ------------------------------------------------------------------------
INCEPTION DATE 12/31/96
Net asset value, beginning of
period.......................... $24.71 $25.67 $25.27 $23.29
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment loss (b)........ (0.15) (0.20) (0.16) (0.07)
Net realized and unrealized
gains (losses) on
investments................... (3.38) 3.35 1.14 2.05
- ------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........... (3.53) 3.15 0.98 1.98
- ------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.00(c) -- -- --
Net realized gains............. 2.56 4.11 0.58 --
- ------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 2.56 4.11 0.58 --
- ------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD.......................... $18.62 $24.71 $25.67 $25.27
- ------------------------------------------------------------------------
TOTAL RETURN (A)................. (15.55%) 13.40% 3.88% 8.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands)................ $6,115 $12,542 $16,432 $27,629
Ratios to average net assets:
Net investment income
(loss)*...................... (0.71%) (0.82%) (0.64%) (0.29%)
Net expenses*................. 1.82%(e) 1.76% 1.77% 1.72%
Gross expenses*............... 1.82% 1.76% 1.77% 1.72%
Portfolio turnover rate........ 30% 28% 25% 34%
- ------------------------------------------------------------------------
CLASS C
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+
- -------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $16.21 $18.62 $24.72 $25.68 $25.28 $23.30 $18.39
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... (0.07) (0.06) (0.15) (0.20) (0.16) (0.08) (0.05)
Net realized and unrealized gains (losses) on
investments................................... 1.73 (1.18) (3.39) 3.35 1.14 2.06 1.98
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... 1.66 (1.24) (3.54) 3.15 0.98 1.98 1.93
- -------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00 0.00 0.00(c) -- -- -- 0.05
Net realized gains............................. -- 1.17 2.56 4.11 0.58 -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.00 1.17 2.56 4.11 0.58 -- 0.05
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $17.87 $16.21 $18.62 $24.72 $25.68 $25.28 $20.27
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 10.24% (4.23%) (15.59%) 13.40% 3.88% 8.50% 10.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $15,331 $14,378 $19,630 $31,467 $39,838 $63,433 $96
Ratios to average net assets:
Net investment income (loss)*................. (0.92%) (0.41%) (0.70%) (0.82%) (0.63%) (0.32%) (0.43%)
Net expenses*................................. 1.80%(e) 1.85%(e) 1.82%(e) 1.76% 1.78% 1.72% 1.29%(e)
Gross expenses*............................... 1.80% 1.85% 1.82% 1.76% 1.78% 1.72% 1.29%
Portfolio turnover rate........................ 12% 27% 30% 28% 25% 34% 12%
- -------------------------------------------------------------------------------------------------------------------------
CLASS R
9/30/09 9/30/08
- ----------------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $20.80 $22.19
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... 0.02 (0.02)
Net realized and unrealized gains (losses) on
investments................................... (1.26) (1.37)
- ----------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... (1.24) (1.39)
- ----------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00 0.00(c)
Net realized gains............................. 1.17 0.00(c)
- ----------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.17 0.00(c)
- ----------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $18.39 $20.80
- ----------------------------------------------------------------------
TOTAL RETURN (A)................................. (3.76%) (6.26%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $9 $9
Ratios to average net assets:
Net investment income (loss)*................. 0.10% (0.16%)
Net expenses*................................. 1.35%(e) 1.35%(e)
Gross expenses*............................... 1.35% 1.35%
Portfolio turnover rate........................ 27%(d) 30%(d)
- ----------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
126
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE PREMIER GROWTH EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 12/31/96
Net asset value, beginning of period........................ $18.78 $21.25 $27.57 $28.11 $27.40 $25.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b).......................... 0.01 0.11 0.07 0.04 0.10 0.16
Net realized and unrealized gains (losses) on investments. 2.02 (1.31) (3.83) 3.70 1.25 2.26
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 2.03 (1.20) (3.76) 3.74 1.35 2.42
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.09 0.10 0.00(c) 0.17 0.06 0.15
Net realized gains........................................ -- 1.17 2.56 4.11 0.58 --
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.09 1.27 2.56 4.28 0.64 0.15
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $20.72 $18.78 $21.25 $27.57 $28.11 $27.40
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 10.81% (3.30%) (14.71%) 14.52% 4.94% 9.62%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $34,858 $22,971 $5,531 $16,826 $66,149 $209,902
Ratios to average net assets:
Net investment income (loss)*............................ 0.08% 0.70% 0.29% 0.17% 0.34% 0.58%
Net expenses*............................................ 0.80%(e) 0.85%(e) 0.82%(e) 0.75% 0.76% 0.72%
Gross expenses*.......................................... 0.80% 0.85% 0.82% 0.75% 0.76% 0.72%
Portfolio turnover rate................................... 12% 27% 30% 28% 25% 34%
- ----------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 127
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE SMALL-CAP EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- ------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/98
Net asset value, beginning of period. $8.49 $10.73 $16.13 $16.16 $15.70 $14.87 $7.39 $9.58
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... -- (0.04) (0.00)(c) (0.01) (0.02) 0.04 (0.02) (0.08)
Net realized and unrealized gains
(losses) on investments........... 1.02 (1.34) (2.43) 2.24 1.03 2.89 0.88 (1.25)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... 1.02 (1.38) (2.43) 2.23 1.01 2.93 0.86 (1.33)
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. -- 0.00 0.00(c) -- 0.02 -- -- 0.00
Net realized gains................. -- 0.86 2.97 2.26 0.53 2.10 -- 0.86
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. -- 0.86 2.97 2.26 0.55 2.10 -- 0.86
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $9.51 $8.49 $10.73 $16.13 $16.16 $15.70 $8.25 $7.39
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... 12.01% (10.17%) (17.68%) 14.87% 6.60% 20.87% 11.64% (10.95%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $35,150 $32,456 $42,271 $58,523 $59,397 $56,235 $728 $1,055
Ratios to average net assets:
Net investment income (loss)*..... 0.08% (0.56%) 0.03% (0.03%) (0.13%) 0.26% (0.65%) (1.23%)
Net expenses*..................... 1.92%(e) 2.14%(e) 1.37%(e) 1.24% 1.21% 1.21% 2.68%(e) 2.89%(e)
Gross expenses*................... 1.94% 2.20% 1.38% 1.24% 1.21% 1.21% 2.70% 2.95%
Portfolio turnover rate............ 22% 51% 60% 37% 38% 34% 22% 51%
- ------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- --------------------------------------------------------------------------
INCEPTION DATE 9/30/98
Net asset value, beginning of period. $14.82 $15.11 $14.81 $14.22
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... (0.08) (0.12) (0.14) (0.06)
Net realized and unrealized gains
(losses) on investments........... (2.19) 2.09 0.97 2.75
- --------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... (2.27) 1.97 0.83 2.69
- --------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.00(c) -- -- --
Net realized gains................. 2.97 2.26 0.53 2.10
- --------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 2.97 2.26 0.53 2.10
- --------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $9.58 $14.82 $15.11 $14.81
- --------------------------------------------------------------------------
TOTAL RETURN (A)..................... (18.26%) 14.10% 5.77% 20.04%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $2,957 $7,716 $10,583 $11,567
Ratios to average net assets:
Net investment income (loss)*..... (0.69%) (0.78%) (0.88%) (0.46%)
Net expenses*..................... 2.12%(e) 1.98% 1.96% 1.95%
Gross expenses*................... 2.13% 1.98% 1.96% 1.96%
Portfolio turnover rate............ 60% 37% 38% 34%
- --------------------------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $7.35 $9.53 $14.76 $15.07 $14.77 $14.19 $8.46 $10.72
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... (0.02) (0.08) (0.08) (0.12) (0.13) (0.06) (0.01) (0.06)
Net realized and unrealized gains (losses) on
investments................................... 0.87 (1.24) (2.18) 2.07 0.96 2.74 1.01 (1.34)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... 0.85 (1.32) (2.26) 1.95 0.83 2.68 1.00 (1.40)
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... -- 0.00 0.00(c) -- -- -- -- 0.00
Net realized gains............................. -- 0.86 2.97 2.26 0.53 2.10 -- 0.86
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. -- 0.86 2.97 2.26 0.53 2.10 -- 0.86
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $8.20 $7.35 $9.53 $14.76 $15.07 $14.77 $9.46 $8.46
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 11.56% (10.90%) (18.28%) 13.99% 5.79% 20.02% 11.82% (10.37%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $3,077 $2,839 $4,797 $7,428 $7,668 $8,391 $9 $8
Ratios to average net assets:
Net investment income (loss)*................. (0.69%) (1.30%) (0.72%) (0.78%) (0.88%) (0.44%) (0.12%) (0.84%)
Net expenses*................................. 2.67%(e) 2.89%(e) 2.12%(e) 1.99% 1.96% 1.95% 2.12%(e) 2.39%(e)
Gross expenses*............................... 2.69% 2.95% 2.14% 1.99% 1.96% 1.96% 2.14% 2.45%
Portfolio turnover rate........................ 22% 51% 60% 37% 38% 34% 22% 51%(d)
- ----------------------------------------------------------------------------------------------------------------------------------
9/30/08
- ------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $11.58
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... (0.03)
Net realized and unrealized gains (losses) on
investments................................... (0.83)
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... (0.86)
- ------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00(c)
Net realized gains............................. 0.00
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.00
- ------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $10.72
- ------------------------------------------------------------
TOTAL RETURN (A)................................. (7.43%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $9
Ratios to average net assets:
Net investment income (loss)*................. (0.34%)
Net expenses*................................. 1.62%(e)
Gross expenses*............................... 1.63%
Portfolio turnover rate........................ 60%(d)
- ------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
128
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE SMALL-CAP EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- --------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/98
Net asset value, beginning of period........................ $8.82 $11.06 $16.50 $16.44 $15.99 $15.07
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b).......................... 0.01 (0.01) 0.04 0.04 0.02 0.08
Net realized and unrealized gains (losses) on investments. 1.06 (1.37) (2.51) 2.28 1.04 2.94
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 1.07 (1.38) (2.47) 2.32 1.06 3.02
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... -- 0.00 0.00(c) -- 0.08 --
Net realized gains........................................ -- 0.86 2.97 2.26 0.53 2.10
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... -- 0.86 2.97 2.26 0.61 2.10
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $9.89 $8.82 $11.06 $16.50 $16.44 $15.99
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 12.13% (9.83%) (17.50%) 15.20% 6.85% 21.22%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $189 $1,035 $3,694 $8,053 $11,990 $24,385
Ratios to average net assets:
Net investment income (loss)*............................ 0.29% (0.18%) 0.36% 0.23% 0.10% 0.54%
Net expenses*............................................ 1.68%(e) 1.89%(e) 1.12%(e) 0.99% 0.95% 0.96%
Gross expenses*.......................................... 1.70% 1.95% 1.12% 0.99% 0.95% 0.96%
Portfolio turnover rate................................... 22% 51% 60% 37% 38% 34%
- --------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 129
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE GLOBAL EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09 9/30/08
- -------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/5/93
Net asset value, beginning of
period.............................. $18.26 $21.26 $32.08 $24.66 $21.05 $18.13 $16.57 $19.25 $29.48
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... (0.03) 0.17 0.28 0.18 0.10 0.19 (0.07) -- 0.06
Net realized and unrealized gains
(losses) on investments........... 1.21 (2.15) (7.54) 7.38 3.64 2.83 1.08 (1.89) (6.85)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... 1.18 (1.98) (7.26) 7.56 3.74 3.02 1.01 (1.89) (6.79)
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.20 0.31 0.12 0.14 0.13 0.10 0.21 0.08 0.00(c)
Net realized gains................. -- 0.71 3.44 -- -- -- -- 0.71 3.44
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.20 1.02 3.56 0.14 0.13 0.10 0.21 0.79 3.44
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $19.24 $18.26 $21.26 $32.08 $24.66 $21.05 $17.37 $16.57 $19.25
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... 6.47% (8.00%) (25.19%) 30.78% 17.85% 16.67% 6.10% (8.72%) (25.79%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $31,310 $30,544 $36,560 $50,051 $37,653 $32,038 $70 $86 $222
Ratios to average net assets:
Net investment income (loss)*..... (0.31%) 1.12% 1.04% 0.64% 0.43% 0.95% (1.08%) 0.05% 0.24%
Net expenses*..................... 1.54%(e) 1.70%(e) 1.41%(e) 1.36% 1.46% 1.49% 2.30%(e) 2.45%(e) 2.16%(e)
Gross expenses*................... 1.55% 1.70% 1.41% 1.36% 1.46% 1.50% 2.30% 2.45% 2.16%
Portfolio turnover rate............ 36% 60% 57% 66% 57% 61% 36% 60% 57%
- -------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------
9/30/07 9/30/06 9/30/05
- --------------------------------------------------------------
INCEPTION DATE 12/22/93
Net asset value, beginning of
period.............................. $22.71 $19.41 $16.76
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... (0.03) (0.07) 0.04
Net realized and unrealized gains
(losses) on investments........... 6.80 3.37 2.61
- --------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... 6.77 3.30 2.65
- --------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. -- -- --
Net realized gains................. -- -- --
- --------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. -- -- --
- --------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $29.48 $22.71 $19.41
- --------------------------------------------------------------
TOTAL RETURN (A)..................... 29.81% 17.00% 15.81%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $457 $542 $826
Ratios to average net assets:
Net investment income (loss)*..... (0.12%) (0.33%) 0.21%
Net expenses*..................... 2.10% 2.21% 2.24%
Gross expenses*................... 2.10% 2.21% 2.25%
Portfolio turnover rate............ 66% 57% 61%
- --------------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $16.58 $19.38 $29.66 $22.85 $19.54 $16.88 $18.22 $21.21
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... (0.07) 0.01 0.10 (0.00)(c) (0.06) 0.04 (0.05) 0.14
Net realized and unrealized gains (losses) on
investments................................... 1.08 (1.93) (6.93) 6.81 3.37 2.62 1.21 (2.15)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... 1.01 (1.92) (6.83) 6.81 3.31 2.66 1.16 (2.01)
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.02 0.17 0.01 -- -- -- 0.13 0.27
Net realized gains............................. -- 0.71 3.44 -- -- -- -- 0.71
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.02 0.88 3.45 -- -- -- 0.13 0.98
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $17.57 $16.58 $19.38 $29.66 $22.85 $19.54 $19.25 $18.22
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 6.11% (8.74%) (25.78%) 29.80% 16.94% 15.76% 6.38% (8.24%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $127 $195 $489 $467 $318 $272 $8 $7
Ratios to average net assets:
Net investment income (loss)*................. (1.10%) 0.05% 0.39% (0.01%) (0.30%) 0.20% (0.56%) 0.92%
Net expenses*................................. 2.30%(e) 2.45%(e) 2.16%(e) 2.10% 2.21% 2.24% 1.80%(e) 1.95%(e)
Gross expenses*............................... 2.31% 2.45% 2.16% 2.10% 2.21% 2.25% 1.81% 1.95%
Portfolio turnover rate........................ 36% 60% 57% 66% 57% 61% 36% 60%(d)
- ----------------------------------------------------------------------------------------------------------------------------------
9/30/08
- ------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $25.98
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... 0.28
Net realized and unrealized gains (losses) on
investments................................... (5.05)
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... (4.77)
- ------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00(c)
Net realized gains............................. 0.00(c)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.00(c)
- ------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $21.21
- ------------------------------------------------------------
TOTAL RETURN (A)................................. (18.36%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $8
Ratios to average net assets:
Net investment income (loss)*................. 1.65%
Net expenses*................................. 1.66%(e)
Gross expenses*............................... 1.66%
Portfolio turnover rate........................ 57%(d)
- ------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
130
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE GLOBAL EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/29/93
Net asset value, beginning of period........................ $18.32 $21.35 $32.23 $24.77 $21.14 $18.21
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b).......................... (0.01) 0.21 0.35 0.26 0.16 0.24
Net realized and unrealized gains (losses) on investments. 1.21 (2.16) (7.59) 7.40 3.66 2.84
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 1.20 (1.95) (7.24) 7.66 3.82 3.08
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.23 0.37 0.20 0.20 0.19 0.15
Net realized gains........................................ -- 0.71 3.44 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.23 1.08 3.64 0.20 0.19 0.15
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $19.29 $18.32 $21.35 $32.23 $24.77 $21.14
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 6.58% (7.73%) (25.07%) 31.11% 18.14% 16.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $16,283 $15,435 $18,339 $25,544 $20,643 $18,183
Ratios to average net assets:
Net investment income (loss)*............................ (0.06%) 1.38% 1.28% 0.91% 0.69% 1.19%
Net expenses*............................................ 1.29%(e) 1.45%(e) 1.16%(e) 1.10% 1.21% 1.24%
Gross expenses*.......................................... 1.30% 1.45% 1.16% 1.10% 1.21% 1.25%
Portfolio turnover rate................................... 36% 60% 57% 66% 57% 61%
- ----------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 131
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09 9/30/08
- -------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 3/2/94
Net asset value, beginning of period. $12.71 $16.20 $25.05 $18.79 $15.87 $12.73 $11.65 $14.97 $23.29
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... 0.06 0.23 0.43 0.23 0.16 0.14 -- 0.13 0.19
Net realized and unrealized gains
(losses) on investments........... 0.36 (1.47) (6.59) 6.21 2.90 3.07 0.34 (1.37) (6.03)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... 0.42 (1.24) (6.16) 6.44 3.06 3.21 0.34 (1.24) (5.84)
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.37 0.39 0.23 0.16 0.14 0.07 0.35 0.22 0.02
Net realized gains................. -- 1.86 2.46 0.02 -- -- -- 1.86 2.46
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.37 2.25 2.69 0.18 0.14 0.07 0.35 2.08 2.48
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $12.76 $12.71 $16.20 $25.05 $18.79 $15.87 $11.64 $11.65 $14.97
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... 3.39% (3.55%) (27.35%) 34.50% 19.38% 25.32% 3.00% (4.28%) (27.86%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $26,763 $33,160 $48,250 $56,956 $40,564 $28,881 $278 $399 $651
Ratios to average net assets:
Net investment income (loss)*..... 0.93% 2.17% 2.02% 1.06% 0.90% 0.97% 0.02% 1.27% 0.95%
Net expenses*..................... 1.85%(e) 1.53%(e) 1.37%(e) 1.45% 1.58% 1.42% 2.61%(e) 2.28%(e) 2.12%(e)
Gross expenses*................... 1.86% 1.77% 1.51% 1.45% 1.58% 1.43% 2.61% 2.52% 2.25%
Portfolio turnover rate............ 22% 60% 39% 38% 39% 66% 22% 60% 39%
- -------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------
9/30/07 9/30/06 9/30/05
- -------------------------------------------------------------
INCEPTION DATE 3/2/94
Net asset value, beginning of period. $17.48 $14.79 $11.89
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) (b)... 0.04 0.02 0.02
Net realized and unrealized gains
(losses) on investments........... 5.82 2.70 2.88
- -------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.......................... 5.86 2.72 2.90
- -------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.03 0.03 --
Net realized gains................. 0.02 -- --
- -------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.05 0.03 --
- -------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $23.29 $17.48 $14.79
- -------------------------------------------------------------
TOTAL RETURN (A)..................... 33.54% 18.41% 24.39%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $1,449 $1,473 $1,249
Ratios to average net assets:
Net investment income (loss)*..... 0.22% 0.13% 0.12%
Net expenses*..................... 2.20% 2.32% 2.18%
Gross expenses*................... 2.20% 2.32% 2.18%
Portfolio turnover rate............ 38% 39% 66%
- -------------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- -------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $11.62 $15.04 $23.44 $17.58 $14.85 $11.94 $12.68 $16.17
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... 0.02 0.14 0.22 0.05 0.02 0.03 0.05 0.21
Net realized and unrealized gains (losses) on
investments................................... 0.35 (1.40) (6.09) 5.84 2.72 2.88 0.37 (1.47)
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS...................................... 0.37 (1.26) (5.87) 5.89 2.74 2.91 0.42 (1.26)
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.29 0.30 0.07 0.01 0.01 -- 0.34 0.37
Net realized gains............................. -- 1.86 2.46 0.02 -- -- -- 1.86
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.29 2.16 2.53 0.03 0.01 -- 0.34 2.23
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $11.70 $11.62 $15.04 $23.44 $17.58 $14.85 $12.76 $12.68
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 3.26% (4.29%) (27.86%) 33.53% 18.48% 24.37% 3.24% (3.75%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $1,265 $1,194 $1,462 $1,259 $1,031 $1,196 $8 $8
Ratios to average net assets:
Net investment income (loss)*................. 0.32% 1.41% 1.10% 0.25% 0.12% 0.19% 0.74% 2.00%
Net expenses*................................. 2.61%(e) 2.28%(e) 2.12%(e) 2.20% 2.31% 2.17% 2.10%(e) 1.78%(e)
Gross expenses*............................... 2.61% 2.52% 2.27% 2.20% 2.31% 2.18% 2.10% 2.02%
Portfolio turnover rate........................ 22% 60% 39% 38% 39% 66% 22% 60%(d)
- -------------------------------------------------------------------------------------------------------------------------------
9/30/08
- ------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $20.63
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b)............... 0.38
Net realized and unrealized gains (losses) on
investments................................... (4.84)
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS...................................... (4.46)
- ------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00(c)
Net realized gains............................. 0.00(c)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.00(c)
- ------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $16.17
- ------------------------------------------------------------
TOTAL RETURN (A)................................. (21.62%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $8
Ratios to average net assets:
Net investment income (loss)*................. 2.79%
Net expenses*................................. 1.62%(e)
Gross expenses*............................... 1.77%
Portfolio turnover rate........................ 39%(d)
- ------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
132
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- --------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 3/2/94
Net asset value, beginning of period........................ $12.88 $16.40 $25.33 $18.99 $16.01 $12.85
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (b).......................... 0.06 0.34 0.46 0.28 0.09 0.18
Net realized and unrealized gains (losses) on investments. 0.38 (1.56) (6.64) 6.29 3.06 3.09
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 0.44 (1.22) (6.18) 6.57 3.15 3.27
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.40 0.44 0.29 0.21 0.17 0.11
Net realized gains........................................ -- 1.86 2.46 0.02 -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.40 2.30 2.75 0.23 0.17 0.11
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $12.92 $12.88 $16.40 $25.33 $18.99 $16.01
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 3.50% (3.27%) (27.19%) 34.85% 19.83% 25.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $5,559 $8,220 $8,872 $10,354 $7,679 $69,794
Ratios to average net assets:
Net investment income (loss)*............................ 1.10% 3.10% 2.13% 1.29% 0.51% 1.26%
Net expenses*............................................ 1.60%(e) 1.38%(e) 1.12%(e) 1.20% 1.17% 1.17%
Gross expenses*.......................................... 1.61% 1.52% 1.26% 1.20% 1.17% 1.17%
Portfolio turnover rate................................... 22% 60% 39% 38% 39% 66%
- --------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 133
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE TOTAL RETURN FUND
- -------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- --------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/5/93
Net asset value, beginning of
period.............................. $17.90 $20.16 $27.03 $25.10 $24.94 $23.67 $17.23 $19.36
INCOME (LOSS) FROM INVESTMENT
OPERATIONS
Net investment income (b).......... 0.07 0.26 0.40 0.46 0.44 0.43 -- 0.14
Net realized and unrealized gains
(losses) on investments........... 1.02 (1.08) (4.54) 4.01 1.91 1.67 0.99 (1.03)
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS............... 1.09 (0.82) (4.14) 4.47 2.35 2.10 0.99 (0.89)
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.26 0.39 0.44 0.53 0.42 0.39 0.14 0.19
Net realized gains................. -- 1.05 2.29 2.01 1.77 0.44 -- 1.05
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.26 1.44 2.73 2.54 2.19 0.83 0.14 1.24
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $18.73 $17.90 $20.16 $27.03 $25.10 $24.94 $18.08 $17.23
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... 6.17% (2.60%) (16.87%) 19.03% 10.01% 8.90% 5.79% (3.37%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $110,998 $105,256 $116,282 $147,927 $133,003 $129,971 $2,527 $4,772
Ratios to average net assets
Net investment income*............ 0.81% 1.66% 1.68% 1.82% 1.81% 1.74% 0.01% 0.91%
Net expenses*..................... 1.13%(e) 1.08%(e) 0.90%(e) 0.87% 0.89% 0.80% 1.89%(e) 1.83%(e)
Gross expenses*................... 1.17% 1.13% 0.90% 0.87% 0.89% 0.81% 1.93% 1.88%
Portfolio turnover rat............. 54% 144% 156% 133% 118% 119% 54% 144%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- -------------------------------------------------------------------------
INCEPTION DATE 12/22/93
Net asset value, beginning of
period.............................. $26.02 $24.23 $24.13 $22.91
INCOME (LOSS) FROM INVESTMENT
OPERATIONS
Net investment income (b).......... 0.21 0.26 0.25 0.24
Net realized and unrealized gains
(losses) on investments........... (4.36) 3.87 1.84 1.61
- -------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS............... (4.15) 4.13 2.09 1.85
- -------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.22 0.33 0.22 0.19
Net realized gains................. 2.29 2.01 1.77 0.44
- -------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 2.51 2.34 1.99 0.63
- -------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $19.36 $26.02 $24.23 $24.13
- -------------------------------------------------------------------------
TOTAL RETURN (A)..................... (17.47%) 18.15% 9.18% 8.13%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $8,222 $13,980 $14,942 $17,746
Ratios to average net assets
Net investment income*............ 0.91% 1.07% 1.04% 0.99%
Net expenses*..................... 1.65%(e) 1.62% 1.64% 1.55%
Gross expenses*................... 1.66% 1.62% 1.64% 1.56%
Portfolio turnover rat............. 156% 133% 118% 119%
- -------------------------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- --------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $16.59 $18.76 $25.36 $23.67 $23.62 $22.51 $17.87 $20.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.01 0.13 0.21 0.26 0.24 0.23 0.05 0.23
Net realized and unrealized gains (losses) on
investments................................... 0.93 (1.01) (4.24) 3.77 1.80 1.58 1.02 (1.09)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... 0.94 (0.88) (4.03) 4.03 2.04 1.81 1.07 (0.86)
- --------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.16 0.24 0.28 0.33 0.22 0.26 0.19 0.35
Net realized gains............................. -- 1.05 2.29 2.01 1.77 0.44 -- 1.05
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.16 1.29 2.57 2.34 1.99 0.70 0.19 1.40
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $17.37 $16.59 $18.76 $25.36 $23.67 $23.62 $18.75 $17.87
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 5.71% (3.33%) (17.48%) 18.16% 9.18% 8.12% 6.03% (2.88%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $12,825 $10,841 $13,674 $14,462 $12,759 $15,975 $9 $9
Ratios to average net assets:
Net investment income*........................ 0.07% 0.90% 0.93% 1.07% 1.04% 0.99% 0.55% 1.40%
Net expenses*................................. 1.88%(e) 1.83%(e) 1.65%(e) 1.62% 1.64% 1.55% 1.39%(e) 1.33%(e)
Gross expenses*............................... 1.92% 1.88% 1.66% 1.62% 1.64% 1.56% 1.43% 1.38%
Portfolio turnover rate........................ 54% 144% 156% 133% 118% 119% 54% 144%(d)
- --------------------------------------------------------------------------------------------------------------------------------
9/30/08
- ------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $22.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.25
Net realized and unrealized gains (losses) on
investments................................... (2.84)
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS... (2.59)
- ------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.00(c)
Net realized gains............................. 0.00(c)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.00(c)
- ------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $20.13
- ------------------------------------------------------------
TOTAL RETURN (A)................................. (11.40%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $9
Ratios to average net assets:
Net investment income*........................ 1.67%
Net expenses*................................. 1.15%(e)
Gross expenses*............................... 1.15%
Portfolio turnover rate........................ 156%(d)
- ------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
134
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE TOTAL RETURN FUND
- ---------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ---------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/29/93
Net asset value, beginning of period........................ $18.10 $20.39 $27.31 $25.34 $25.01 $23.74
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)................................. 0.10 0.31 0.47 0.53 0.47 0.50
Net realized and unrealized gains (losses) on investments. 1.03 (1.10) (4.59) 4.04 2.11 1.66
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 1.13 (0.79) (4.12) 4.57 2.58 2.16
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.29 0.45 0.51 0.59 0.48 0.45
Net realized gains........................................ -- 1.05 2.29 2.01 1.77 0.44
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.29 1.50 2.80 2.60 2.25 0.89
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $18.94 $18.10 $20.39 $27.31 $25.34 $25.01
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 6.31% (2.39%) (16.65%) 19.31% 11.03% 9.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $5,389 $7,788 $5,571 $5,670 $3,161 $94,317
Ratios to average net assets:
Net investment income *.................................. 1.05% 1.90% 1.96% 2.07% 1.82% 2.01%
Net expenses *........................................... 0.88%(e) 0.83%(e) 0.65%(e) 0.62% 0.56% 0.55%
Gross expenses *......................................... 0.92% 0.88% 0.65% 0.62% 0.56% 0.56%
Portfolio turnover rate................................... 54% 144% 156% 133% 118% 119%
- ---------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 135
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE GOVERNMENT SECURITIES FUND
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- ------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/8/93
Net asset value, beginning of
period.......................... $8.99 $8.85 $8.60 $8.56 $8.69 $8.79 $9.07 $8.93
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b)...... 0.08 0.26 0.31 0.34 0.32 0.28 0.04 0.19
Net realized and unrealized
gains (losses) on
investments................... (0.10) 0.13 0.26 0.04 (0.13) (0.10) (0.09) 0.14
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........... (0.02) 0.39 0.57 0.38 0.19 0.18 (0.05) 0.33
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.08 0.25 0.32 0.34 0.32 0.28 0.05 0.19
Net realized gains............. -- -- 0.00(c) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 0.08 0.25 0.32 0.34 0.32 0.28 0.05 0.19
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD... $8.89 $8.99 $8.85 $8.60 $8.56 $8.69 $8.97 $9.07
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................. 0.05% 4.45% 6.63% 4.57% 2.27% 2.08% (0.32%) 3.66%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).................... $102,116 $108,777 $114,342 $119,640 $132,535 $154,259 $252 $450
Ratios to average net assets:
Net investment income*........ 1.83% 2.85% 3.57% 4.01% 3.76% 3.21% 1.05% 2.14%
Net expenses*................. 0.84%(e) 0.84%(e) 0.92%(e) 0.89% 0.88% 0.86% 1.60%(e) 1.59%(e)
Gross expenses*............... 0.87% 0.84% 0.94% 0.90% 0.88% 0.86% 1.63% 1.59%
Portfolio turnover rate........ 241% 157% 279% 323% 275% 148% 241% 157%
- ------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- --------------------------------------------------------------------
INCEPTION DATE 4/22/87
Net asset value, beginning of
period.......................... $8.68 $8.63 $8.77 $8.86
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b)...... 0.25 0.28 0.26 0.21
Net realized and unrealized
gains (losses) on
investments................... 0.25 0.05 (0.14) (0.08)
- --------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS........... 0.50 0.33 0.12 0.13
- --------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.25 0.28 0.26 0.22
Net realized gains............. 0.00(c) -- -- --
- --------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 0.25 0.28 0.26 0.22
- --------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD... $8.93 $8.68 $8.63 $8.77
- --------------------------------------------------------------------
TOTAL RETURN (A)................. 5.80% 3.91% 1.40% 1.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).................... $590 $896 $1,468 $2,327
Ratios to average net assets:
Net investment income*........ 2.83% 3.24% 3.01% 2.43%
Net expenses*................. 1.67%(e) 1.64% 1.63% 1.61%
Gross expenses*............... 1.70% 1.65% 1.63% 1.62%
Portfolio turnover rate........ 279% 323% 275% 148%
- --------------------------------------------------------------------
CLASS C
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- -------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period.......... $9.12 $8.98 $8.71 $8.66 $8.80 $8.89
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)................... 0.05 0.20 0.25 0.28 0.26 0.22
Net realized and unrealized gains (losses)
on investments............................. (0.10) 0.13 0.27 0.05 (0.14) (0.09)
- -------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS................................... (0.05) 0.33 0.52 0.33 0.12 0.13
- -------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income....................... 0.05 0.19 0.25 0.28 0.26 0.22
Net realized gains.......................... -- -- 0.00(c) -- -- --
-----------
- ----------------------------------------------- ---------------------------------------------
TOTAL DISTRIBUTIONS........................... 0.05 0.19 0.25 0.28 0.26 0.22
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................ $9.02 $9.12 $8.98 $8.71 $8.66 $8.80
- -------------------------------------------------------------------------------------------------------
TOTAL RETURN (A).............................. (0.31%) 3.64% 6.02% 3.90% 1.41% 1.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).... $641 $634 $409 $294 $418 $543
Ratios to average net assets:
Net investment income*..................... 1.08% 2.07% 2.77% 3.24% 3.01% 2.40%
Net expenses*.............................. 1.59%(e) 1.59%(e) 1.67%(e) 1.64% 1.63% 1.61%
Gross expenses*............................ 1.62% 1.59% 1.68% 1.64% 1.63% 1.62%
Portfolio turnover rate..................... 241% 157% 279% 323% 275% 148%
- -------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
136
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE SHORT-TERM GOVERNMENT FUND
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 3/2/94
Net asset value, beginning of period............. $11.58 $11.31 $11.29 $11.23 $11.31 $11.67 $11.56 $11.30
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.09 0.22 0.40 0.49 0.48 0.48 0.04 0.17
Net realized and unrealized gains (losses) on
investments................................... 0.02 0.27 0.02 0.05 (0.09) (0.36) 0.04 0.24
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS.......... 0.11 0.49 0.42 0.54 0.39 0.12 0.08 0.41
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.09 0.22 0.40 0.48 0.47 0.48 0.05 0.15
Net realized gains............................. -- -- 0.00(c) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.09 0.22 0.40 0.48 0.47 0.48 0.05 0.15
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $11.60 $11.58 $11.31 $11.29 $11.23 $11.31 $11.59 $11.56
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 0.94% 4.38% 3.78% 4.95% 3.51% 1.08% 0.72% 3.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $47,613 $47,802 $41,040 $38,705 $37,676 $43,909 $383 $636
Ratios to average net assets:
Net investment income *....................... 1.51% 1.95% 3.54% 4.34% 4.27% 4.15% 0.89% 1.56%
Net expenses *................................ 0.73%(e) 0.77%(e) 0.80%(e) 0.80% 0.79% 0.78% 1.34%(e) 1.37%(e)
Gross expenses *.............................. 0.75% 0.77% 0.80% 0.80% 0.80% 0.86% 1.36% 1.37%
Portfolio turnover rate........................ 192% 212% 263% 114% 222% 91% 192% 212%
- ----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- -----------------------------------------------------------------------------------
INCEPTION DATE 3/2/94
Net asset value, beginning of period............. $11.27 $11.22 $11.29 $11.65
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.34 0.42 0.41 0.41
Net realized and unrealized gains (losses) on
investments................................... 0.02 0.05 (0.08) (0.36)
- -----------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS.......... 0.36 0.47 0.33 0.05
- -----------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.33 0.42 0.40 0.41
Net realized gains............................. 0.00(c) -- -- --
- -----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.33 0.42 0.40 0.41
- -----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $11.30 $11.27 $11.22 $11.29
- -----------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 3.25% 4.23% 2.98% 0.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $1,750 $3,219 $4,543 $4,243
Ratios to average net assets:
Net investment income *....................... 3.09% 3.75% 3.67% 3.55%
Net expenses *................................ 1.40%(e) 1.40% 1.39% 1.38%
Gross expenses *.............................. 1.41% 1.40% 1.40% 1.46%
Portfolio turnover rate........................ 263% 114% 222% 91%
- -----------------------------------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- -------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period............. $11.57 $11.30 $11.27 $11.22 $11.29 $11.65 $11.58 $11.31
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.05 0.13 0.32 0.40 0.39 0.39 0.07 0.20
Net realized and unrealized gains (losses) on
investments................................... 0.01 0.27 0.03 0.05 (0.08) (0.35) 0.02 0.26
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS.......... 0.06 0.40 0.35 0.45 0.31 0.04 0.09 0.46
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.04 0.13 0.32 0.40 0.38 0.40 0.07 0.19
Net realized gains............................. -- -- 0.00(c) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.04 0.13 0.32 0.40 0.38 0.40 0.07 0.19
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $11.59 $11.57 $11.30 $11.27 $11.22 $11.29 $11.60 $11.58
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................................. 0.56% 3.59% 3.09% 4.08% 2.83% 0.32% 0.82% 4.13%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $6,526 $5,847 $3,311 $3,039 $4,007 $5,322 $11 $11
Ratios to average net assets:
Net investment income *....................... 0.76% 1.09% 2.83% 3.60% 3.53% 3.38% 1.28% 1.72%
Net expenses *................................ 1.48%(e) 1.52%(e) 1.55%(e) 1.55% 1.55% 1.53% 0.97%(e) 1.02%(e)
Gross expenses *.............................. 1.50% 1.52% 1.55% 1.55% 1.56% 1.61% 0.99% 1.02%
Portfolio turnover rate........................ 192% 212% 263% 114% 222% 91% 192% 212%(d)
- -------------------------------------------------------------------------------------------------------------------------------
9/30/08
- ------------------------------------------------------------
INCEPTION DATE 1/29/08
Net asset value, beginning of period............. $11.42
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)...................... 0.23
Net realized and unrealized gains (losses) on
investments................................... (0.11)
- ------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS.......... 0.12
- ------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......................... 0.23
Net realized gains............................. 0.00(c)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. 0.23
- ------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................... $11.31
- ------------------------------------------------------------
TOTAL RETURN (A)................................. 1.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)....... $10
Ratios to average net assets:
Net investment income *....................... 3.07%
Net expenses *................................ 1.05%(e)
Gross expenses *.............................. 1.05%
Portfolio turnover rate........................ 263%(d)
- ------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 137
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE SHORT-TERM GOVERNMENT FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 3/2/94
Net asset value, beginning of period........................ $11.54 $11.28 $11.25 $11.20 $11.27 $11.63
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)................................. 0.10 0.25 0.43 0.51 0.49 0.52
Net realized and unrealized gains (losses) on investments. 0.03 0.23 0.03 0.05 (0.07) (0.37)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS..................... 0.13 0.48 0.46 0.56 0.42 0.15
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.10 0.22 0.43 0.51 0.49 0.51
Net realized gains........................................ -- 0.00 0.00(c) -- -- --
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.10 0.22 0.43 0.51 0.49 0.51
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $11.57 $11.54 $11.28 $11.25 $11.20 $11.27
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 1.15% 4.55% 4.14% 5.12% 3.84% 1.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $47,237 $61,991 $57,131 $54,444 $50,153 $7,302
Ratios to average net assets:
Net investment income *.................................. 1.76% 2.21% 3.80% 4.59% 4.39% 4.41%
Net expenses *........................................... 0.49%(e) 0.52%(e) 0.55%(e) 0.55% 0.54% 0.53%
Gross expenses *......................................... 0.51% 0.52% 0.55% 0.55% 0.55% 0.61%
Portfolio turnover rate................................... 192% 212% 263% 114% 222% 91%
- ----------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
138
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE TAX-EXEMPT FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- -----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/8/93
Net asset value, beginning of period. $11.79 $10.90 $11.41 $11.63 $11.77 $12.04 $11.79 $10.89
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).......... 0.21 0.41 0.43 0.46 0.46 0.45 0.10 0.32
Net realized and unrealized gains
(losses) on investments........... (0.18) 0.88 (0.52) (0.22) (0.14) (0.27) (0.12) 0.90
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS.......................... 0.03 1.29 (0.09) 0.24 0.32 0.18 (0.02) 1.22
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.21 0.40 0.42 0.46 0.46 0.45 0.16 0.32
Net realized gains................. -- -- 0.00(c) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.21 0.40 0.42 0.46 0.46 0.45 0.16 0.32
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $11.61 $11.79 $10.90 $11.41 $11.63 $11.77 $11.61 $11.79
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... 0.25% 12.09% (0.84%) 2.11% 2.82% 1.50% (0.12%) 11.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $39,850 $36,260 $30,972 $29,433 $26,327 $29,685 $53 $86
Ratios to average net assets:
Net investment income *........... 3.57% 3.58% 3.72% 4.00% 3.98% 3.77% 2.84% 2.86%
Net expenses *.................... 0.86%(e) 0.86%(e) 0.87%(e) 0.87% 0.87% 0.87% 1.61%(e) 1.61%(e)
Gross expenses *.................. 0.97% 1.14% 1.12% 1.12% 1.04% 0.96% 1.73% 1.89%
Portfolio turnover rate............ 17% 24% 28% 40% 43% 39% 17% 24%
- -----------------------------------------------------------------------------------------------------------------------
CLASS C
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- -----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period. $11.78 $10.89 $11.41 $11.62 $11.76 $12.04 $12.74 $11.78
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).......... (0.11) 0.31 0.34 0.37 0.38 0.36 0.78 0.45
Net realized and unrealized gains
(losses) on investments........... 0.10 0.90 (0.52) (0.21) (0.14) (0.28) (0.73) 0.97
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS.......................... (0.01) 1.21 (0.18) 0.16 0.24 0.08 0.05 1.42
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.16 0.32 0.34 0.37 0.38 0.36 0.24 0.46
Net realized gains................. -- -- 0.00(c) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.16 0.32 0.34 0.37 0.38 0.36 0.24 0.46
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $11.61 $11.78 $10.89 $11.41 $11.62 $11.76 $12.55 $12.74
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... (0.06%) 11.24% (1.68%) 1.44% 2.06% 0.66% 0.41% 12.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $1,952 $945 $208 $228 $364 $956 $595 $507
Ratios to average net assets:
Net investment income *........... (1.59%) 2.72% 2.96% 3.27% 3.27% 3.03% 10.68% 3.63%
Net expenses *.................... 1.59%(e) 1.61%(e) 1.62%(e) 1.62% 1.63% 1.63% 0.60%(e) 0.61%(e)
Gross expenses *.................. 1.70% 1.89% 1.88% 1.87% 1.79% 1.71% 0.72% 0.71%
Portfolio turnover rate............ 17% 24% 28% 40% 43% 39% 17% 24%
- -----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- ------------------------------------------------------------------------
INCEPTION DATE 9/8/93
Net asset value, beginning of period. $11.41 $11.63 $11.77 $12.04
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).......... 0.33 0.38 0.37 0.36
Net realized and unrealized gains
(losses) on investments........... (0.51) (0.23) (0.14) (0.27)
- ------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS.......................... (0.18) 0.15 0.23 0.09
- ------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.34 0.37 0.37 0.36
Net realized gains................. 0.00(c) -- -- --
- ------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.34 0.37 0.37 0.36
- ------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $10.89 $11.41 $11.63 $11.77
- ------------------------------------------------------------------------
TOTAL RETURN (A)..................... (1.67%) 1.35% 2.05% 0.75%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $158 $484 $849 $1,630
Ratios to average net assets:
Net investment income *........... 2.99% 3.27% 3.24% 3.02%
Net expenses *.................... 1.62%(e) 1.62% 1.62% 1.62%
Gross expenses *.................. 1.89% 1.87% 1.79% 1.71%
Portfolio turnover rate............ 28% 40% 43% 39%
- ------------------------------------------------------------------------
CLASS Y
9/30/08 9/30/07 9/30/06 9/30/05
- ------------------------------------------------------------------------
INCEPTION DATE 9/26/97
Net asset value, beginning of period. $12.34 $12.57 $12.72 $13.04
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).......... 0.49 0.53 0.53 0.51
Net realized and unrealized gains
(losses) on investments........... (0.56) (0.23) (0.15) (0.31)
- ------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS.......................... (0.07) 0.30 0.38 0.20
- ------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.49 0.53 0.53 0.52
Net realized gains................. 0.00(c) -- -- --
- ------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.49 0.53 0.53 0.52
- ------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $11.78 $12.34 $12.57 $12.72
- ------------------------------------------------------------------------
TOTAL RETURN (A)..................... (0.65%) 2.43% 3.09% 1.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $36 $36 $35 $34
Ratios to average net assets:
Net investment income *........... 3.99% 4.25% 4.24% 3.98%
Net expenses *.................... 0.62%(e) 0.62% 0.61% 0.62%
Gross expenses *.................. 0.86% 0.87% 0.77% 0.71%
Portfolio turnover rate............ 28% 40% 43% 39%
- ------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 139
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE FIXED INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09
- ------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/5/93
Net asset value, beginning of
period.......................... $11.71 $11.44 $11.84 $11.90 $12.12 $12.56 $11.71 $11.44
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b)...... 0.22 0.44 0.50 0.61 0.57 0.48 0.14 0.35
Net realized and unrealized
gains (losses) on
investments................... 0.21 0.26 (0.40) (0.07) (0.20) (0.22) 0.24 0.27
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS...................... 0.43 0.70 0.10 0.54 0.37 0.26 0.38 0.62
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.23 0.43 0.50 0.60 0.56 0.47 0.18 0.35
Net realized gains............. -- -- 0.00(c) -- 0.03 0.23 -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 0.23 0.43 0.50 0.60 0.59 0.70 0.18 0.35
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD.......................... $11.91 $11.71 $11.44 $11.84 $11.90 $12.12 $11.91 $11.71
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)................. 3.68% 6.36% 0.73% 4.77% 3.13% 2.11% 3.29% 5.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).................... $97,808 $103,525 $115,933 $121,475 $130,779 $142,688 $290 $375
Ratios to average net assets:
Net investment income*........ 3.91% 3.90% 4.19% 5.10% 4.84% 3.85% 3.17% 3.21%
Net expenses*................. 0.92%(e) 0.85%(e) 0.84%(e) 0.82% 0.80% 0.80% 1.67%(e) 1.60%(e)
Gross expenses*............... 0.95% 0.88% 0.85% 0.83% 0.86% 0.81% 1.70% 1.63%
Portfolio turnover rate........ 297% 341% 467% 385% 337% 311% 297% 341%
- ------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------
CLASS B
9/30/08 9/30/07 9/30/06 9/30/05
- ---------------------------------------------------------------------
INCEPTION DATE 12/22/93
Net asset value, beginning of
period.......................... $11.84 $11.90 $12.12 $12.56
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b)...... 0.41 0.52 0.48 0.38
Net realized and unrealized
gains (losses) on
investments................... (0.40) (0.06) (0.19) (0.21)
- ---------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS...................... 0.01 0.46 0.29 0.17
- ---------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.......... 0.41 0.52 0.48 0.38
Net realized gains............. 0.00(c) -- 0.03 0.23
- ---------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............. 0.41 0.52 0.51 0.61
- ---------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD.......................... $11.44 $11.84 $11.90 $12.12
- ---------------------------------------------------------------------
TOTAL RETURN (A)................. (0.11%) 3.99% 2.45% 1.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands).................... $803 $1,472 $2,078 $2,728
Ratios to average net assets:
Net investment income*........ 3.50% 4.34% 4.08% 3.09%
Net expenses*................. 1.59%(e) 1.57% 1.55% 1.55%
Gross expenses*............... 1.60% 1.58% 1.61% 1.56%
Portfolio turnover rate........ 467% 385% 337% 311%
- ---------------------------------------------------------------------
CLASS C CLASS R
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05 3/31/10+ 9/30/09 9/30/08
- -----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 1/29/08
Net asset value, beginning of period. $11.72 $11.46 $11.86 $11.91 $12.14 $12.57 $11.71 $11.45 $12.15
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (b).......... 0.18 0.35 0.41 0.52 0.49 0.38 0.22 0.41 0.29
Net realized and unrealized gains
(losses) on investments........... 0.21 0.26 (0.40) (0.05) (0.21) (0.20) 0.20 0.25 (0.70)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS.......................... 0.39 0.61 0.01 0.47 0.28 0.18 0.42 0.66 (0.41)
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income.............. 0.18 0.35 0.41 0.52 0.48 0.38 0.21 0.40 0.29
Net realized gains................. -- -- 0.00(c) -- 0.03 0.23 -- -- 0.00(c)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.................. 0.18 0.35 0.41 0.52 0.51 0.61 0.21 0.40 0.29
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $11.93 $11.72 $11.46 $11.86 $11.91 $12.14 $11.92 $11.71 $11.45
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)..................... 3.38% 5.47% (0.02%) 3.99% 2.37% 1.43% 3.64% 5.99% (3.43%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................ $878 $915 $922 $1,108 $1,237 $1,731 $11 $10 $10
Ratios to average net assets:
Net investment income*............ 3.17% 3.12% 3.44% 4.34% 4.09% 3.10% 3.66% 3.61% 3.70%
Net expenses*..................... 1.67%(e) 1.60%(e) 1.59%(e) 1.57% 1.55% 1.55% 1.18%(e) 1.10%(e) 1.09%(e)
Gross expenses*................... 1.69% 1.63% 1.60% 1.58% 1.61% 1.56% 1.20% 1.13% 1.11%
Portfolio turnover rate............ 297% 341% 467% 385% 337% 311% 297% 341%(d) 467%(d)
- -----------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
140
[GRAPHIC]
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE FIXED INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------
CLASS Y
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 11/29/93
Net asset value, beginning of period........................ $11.70 $11.43 $11.84 $11.89 $12.11 $12.55
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (b)................................. 0.14 0.46 0.53 0.64 0.61 0.51
Net realized and unrealized gains (losses) on investments. 0.29 0.27 (0.41) (0.06) (0.21) (0.22)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS..................... 0.43 0.73 0.12 0.58 0.40 0.29
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.24 0.46 0.53 0.63 0.59 0.50
Net realized gains........................................ -- -- 0.00(c) -- 0.03 0.23
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.24 0.46 0.53 0.63 0.62 0.73
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $11.89 $11.70 $11.43 $11.84 $11.89 $12.11
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 3.70% 6.63% 0.89% 5.03% 3.48% 2.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $2,353 $8,545 $12,944 $14,221 $14,900 $87,216
Ratios to average net assets:
Net investment income*................................... 4.33% 4.15% 4.45% 5.35% 4.99% 4.10%
Net expenses*............................................ 0.70%(e) 0.60%(e) 0.59%(e) 0.57% 0.55% 0.55%
Gross expenses*.......................................... 0.72% 0.63% 0.60% 0.58% 0.58% 0.56%
Portfolio turnover rate................................... 297% 341% 467% 385% 337% 311%
- ------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
[GRAPHIC] 141
[GRAPHIC]
Financial Highlights
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIODS INDICATED
GE MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------------------
RETAIL CLASS
3/31/10+ 9/30/09 9/30/08 9/30/07 9/30/06 9/30/05
- ------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/5/1993
Net asset value, beginning of period........................ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b)................................. -- 0.01 0.03 0.05 0.04 0.02
Net realized and unrealized gains (losses) in investments. -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS..................... 0.00 0.01 0.03 0.05 0.04 0.02
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (loss).............................. 0.00(c) 0.01 0.03 0.05 0.04 0.02
Net realized gains........................................ -- -- 0.00(c) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.00 0.01 0.03 0.05 0.04 0.02
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 0.00% 0.66% 3.05% 5.09% 4.38% 2.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $125,849 $164,512 $203,595 $265,440 $214,333 $214,638
Ratios to average net assets:
Net investment income*................................... 0.00% 0.69% 3.07% 4.97% 4.29% 2.32%
Net expenses*............................................ 0.25% 0.37% 0.41% 0.39% 0.41% 0.40%
Gross expenses*.......................................... 0.40% 0.37% 0.41% 0.39% 0.41% 0.40%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
3/31/10+ 9/30/09 9/30/08
- -----------------------------------------------------------------------------------------------
INCEPTION DATE 3/17/2008
Net asset value, beginning of period........................ $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (b)................................. -- 0.01 0.01
Net realized and unrealized gains (losses) in investments. -- -- --
- -----------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS..................... 0.00 0.01 0.01
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income (loss).............................. 0.00(c) 0.01 0.01
Net realized gains........................................ -- -- 0.00(c)
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS......................................... 0.00 0.01 0.01
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.............................. $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------
TOTAL RETURN (A)............................................ 0.01% 0.75% 1.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $696,296 $895,432 $682,828
Ratios to average net assets:
Net investment income*................................... 0.01% 0.72% 2.04%
Net expenses*............................................ 0.24% 0.29% 0.29%
Gross expenses*.......................................... 0.28% 0.29% 0.29%
- -----------------------------------------------------------------------------------------------
See Notes to Financial Highlights and Notes to Financial Statements.
142
[GRAPHIC]
[GRAPHIC]
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 $0.005 per share.
(d)Less than $1,000 of asset in share class.
(e)Includes waiver of management fee with respect to the Fund's investment in
the GE Money Market Fund.
+ Unaudited
* Annualized for periods less than one year.
[GRAPHIC] 143
See Notes to Financial Highlights and Notes to Financial Statements.
Statements of Assets GE GE GE GE
and Liabilities March 31, 2010 (unaudited) U.S. CORE VALUE PREMIER SMALL-CAP
EQUITY EQUITY GROWTH EQUITY EQUITY
FUND FUND FUND FUND
ASSETS
Investments in securities, at market (cost $282,843,634;
$36,865,387; $184,510,115; $33,067,220; $42,001,514;
$29,927,189; $103,684,650; $90,633,683; $98,746,773;
$41,626,474; $91,366,606 and $0, respectively).................. $321,240,150 $41,493,738 $204,335,404 $ 36,428,310
Investments in affiliated securities, at market (cost $88,690;
$14,088; $15,011; $10,159; $31,854; $19,294; $281,775;
$429,321; $99,737; $3,864; $477,239 and $0, respectively)....... 73,613 11,693 12,459 8,432
Short-term Investments (at amortized cost)....................... 485,000 -- -- --
Short-term Investments, at market (cost $0, $0, $0, $0, $0, $0,
$0, $4,300,000, $0, $0, $0 and $0 respectively)................. -- -- -- --
Repurchase Agreements............................................ -- -- -- --
Short-term affiliated investments (at amortized cost)............ 3,057,753 445,115 3,674,412 2,893,997
Foreign currency (cost $3,774; $0; $0; $0; $21,690; $15,981;
$13,353; $0; $0; $0; $0 and $0, respectively)................... 3,792 -- -- --
Receivable for investments sold.................................. 497,391 81,115 269,144 177,283
Income receivables............................................... 251,912 51,751 36,492 25,450
Receivable for fund shares sold.................................. 132,268 52,707 331,078 6,898
Receivable from GEAM............................................. -- -- -- --
Variation margin receivable...................................... -- -- 2,619 --
Other assets..................................................... -- -- -- 72,000
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS................................................... 325,741,879 42,136,119 208,661,608 39,612,370
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distribution Payable to Shareholders............................. -- -- -- --
Payable for investments purchased................................ 419,987 95,187 341,883 209,487
Payable for fund shares redeemed................................. 94,312 20,368 154,515 64,566
Payable to GEAM.................................................. 107,567 18,999 102,315 12,490
Accrued other expenses........................................... 369,678 229,060 385,240 163,454
Variation margin payable......................................... 630 161 -- 4,160
Other liabilities................................................ 22,721 3,393 15,906 4,374
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES.............................................. 1,014,895 367,168 999,859 458,531
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS......................................................... 324,726,984 41,768,951 207,661,749 39,153,839
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in.................................................. 349,014,373 46,189,602 209,622,679 46,136,419
Undistributed (distribution in excess of) net investment
income.......................................................... 741,137 45,118 (200,306) 1,026
Accumulated net realized gain (loss)............................. (63,410,745) (9,091,725) (21,581,516) (10,340,425)
Net unrealized appreciation/(depreciation) on:
Investments.................................................... 38,381,439 4,625,956 19,822,737 3,359,363
Futures........................................................ 763 -- (1,845) (2,544)
Foreign currency related transaction........................... 17 -- -- --
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS......................................................... $324,726,984 $41,768,951 $207,661,749 $ 39,153,839
- --------------------------------------------------------------------------------------------------------------------------
144
[GRAPHIC]
GE GE GE GE GE GE GE
GLOBAL INTERNATIONAL TOTAL GOVERNMENT SHORT-TERM GE FIXED MONEY
EQUITY EQUITY RETURN SECURITIES GOVERNMENT TAX-EXEMPT INCOME MARKET
FUND FUND FUND FUND FUND FUND FUND FUND
$ 46,731,561 $ 32,941,478 $111,051,949 $ 90,082,157 $ 98,480,753 $43,252,535 $ 91,057,806 $ --
26,439 16,014 233,873 356,336 82,782 3,207 396,108 --
-- -- -- 7,900,000 5,000,000 -- -- 750,378,219
-- -- -- 4,299,762 -- -- -- --
-- -- -- -- -- -- -- 66,680,000
909,299 592,832 21,232,447 164,178 24,705,216 612,983 12,482,685 --
21,771 16,088 13,464 -- -- -- -- --
1,772,009 350,783 950,790 -- 4,288,197 115,000 2,339,165 --
87,284 141,789 442,116 735,468 352,015 516,162 934,584 487,268
5,006 16,017 71,132 884 402,732 73,539 8,928 10,245,093
12,375 -- -- -- -- -- -- --
-- -- 702 -- -- -- -- --
12,212 363,927 855,500 -- 1,900 -- 407 --
- ----------------------------------------------------------------------------------------------------------------
49,577,956 34,438,928 134,851,973 103,538,785 133,313,595 44,573,426 107,219,683 827,790,580
- ----------------------------------------------------------------------------------------------------------------
-- -- -- 37,362 7,684 31,412 36,311 50
1,425,338 202,973 1,283,595 167,208 30,912,095 1,931,722 5,475,034 --
58,802 19,941 1,291,003 47,331 366,968 884 29,958 5,576,872
29,738 22,357 51,407 32,993 25,061 41,703 27,571 151,444
260,060 315,019 401,639 191,297 181,471 116,616 250,851 176,031
561 2,282 67,527 45,749 44,063 -- 53,193 --
5,244 3,763 8,869 7,575 6,433 1,311 7,761 (258,684)
- ----------------------------------------------------------------------------------------------------------------
1,779,743 566,335 3,104,040 529,515 31,543,775 2,123,648 5,880,679 5,645,713
- ----------------------------------------------------------------------------------------------------------------
47,798,213 33,872,593 131,747,933 103,009,270 101,769,820 42,449,778 101,339,004 822,144,867
- ----------------------------------------------------------------------------------------------------------------
54,999,694 46,568,779 145,129,430 104,867,552 102,669,279 41,687,840 108,758,544 822,146,158
(62,827) 80,714 16,423 (42,639) 79,708 50,586 839,693 (2,842)
(11,867,072) (15,789,899) (20,749,326) (1,217,516) (734,150) (914,052) (7,920,186) 1,551
4,724,632 3,011,009 7,319,397 (624,511) (282,975) 1,625,404 (389,931) --
472 (1,585) 29,906 26,384 37,958 -- 50,911 --
3,314 3,575 2,103 -- -- -- (27) --
- ----------------------------------------------------------------------------------------------------------------
$ 47,798,213 $ 33,872,593 $131,747,933 $103,009,270 $101,769,820 $42,449,778 $101,339,004 $822,144,867
- ----------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
[GRAPHIC] 145
Statements of Assets GE GE GE GE
and Liabilities (continued) March 31, 2010 (unaudited) U.S. CORE VALUE PREMIER SMALL-CAP
EQUITY EQUITY GROWTH EQUITY EQUITY
FUND FUND FUND FUND
CLASS A:
Net assets........................................................ 199,982,113 38,786,458 156,181,907 35,150,144
Shares outstanding ($.001 par value; unlimited shares authorized). 8,677,375 4,439,022 7,667,553 3,697,541
Net asset value per share......................................... 23.05 8.74 20.37 9.51
- ------------------------------------------------------------------------------------------------------------------
Maximum offering price per share.................................. 24.46 9.27 21.61 10.09
- ------------------------------------------------------------------------------------------------------------------
CLASS B:
Net assets........................................................ 645,308 449,577 1,195,575 727,924
Shares outstanding ($.001 par value; unlimited shares authorized). 29,499 54,229 67,016 88,270
- ------------------------------------------------------------------------------------------------------------------
Net asset value per share*........................................ 21.88 8.29 17.84 8.25
- ------------------------------------------------------------------------------------------------------------------
CLASS C: (LEVEL LOAD)
Net assets........................................................ 3,030,645 2,260,965 15,330,559 3,077,376
Shares outstanding ($.001 par value; unlimited shares authorized). 141,173 277,169 857,967 375,222
- ------------------------------------------------------------------------------------------------------------------
Net asset value per share*........................................ 21.47 8.16 17.87 8.20
- ------------------------------------------------------------------------------------------------------------------
CLASS R:
Net assets........................................................ 9,491 9,363 95,525 9,275
Shares outstanding ($.001 par value; unlimited shares authorized). 412 1,070 4,714 981
- ------------------------------------------------------------------------------------------------------------------
Net asset value per share......................................... 23.04 8.75 20.27 9.46
- ------------------------------------------------------------------------------------------------------------------
CLASS Y:
Net assets........................................................ 121,059,427 262,588 34,858,183 189,120
Shares outstanding ($.001 par value; unlimited shares authorized). 5,286,179 27,128 1,682,547 19,129
- ------------------------------------------------------------------------------------------------------------------
Net asset value per share......................................... 22.90 9.68 20.72 9.89
- ------------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Net assets........................................................ -- -- -- --
Shares outstanding ($.001 par value; unlimited shares authorized). -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Net asset value per share......................................... -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS:
Net assets........................................................ -- -- -- --
Shares outstanding ($.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.
146
[GRAPHIC]
GE GE GE GE GE GE GE
GLOBAL INTERNATIONAL TOTAL GOVERNMENT SHORT-TERM GE FIXED MONEY
EQUITY EQUITY RETURN SECURITIES GOVERNMENT TAX-EXEMPT INCOME MARKET
FUND FUND FUND FUND FUND FUND FUND FUND
31,310,274 26,763,063 110,997,790 102,116,171 47,613,419 39,850,109 97,807,537 --
1,627,222 2,096,992 5,924,622 11,482,528 4,103,499 3,431,731 8,211,984 --
19.24 12.76 18.73 8.89 11.60 11.61 11.91 --
- ----------------------------------------------------------------------------------------------
20.41 13.54 19.87 9.28 11.90 12.13 12.44 --
- ----------------------------------------------------------------------------------------------
69,511 278,115 2,526,901 251,687 382,583 53,008 290,034 --
4,002 23,890 139,789 28,061 33,021 4,566 24,348 --
- ----------------------------------------------------------------------------------------------
17.37 11.64 18.08 8.97 11.59 11.61 11.91 --
- ----------------------------------------------------------------------------------------------
127,288 1,264,555 12,825,352 641,412 6,526,180 1,952,154 877,797 --
7,246 108,084 738,221 71,105 563,042 168,185 73,610 --
- ----------------------------------------------------------------------------------------------
17.57 11.70 17.37 9.02 11.59 11.61 11.93 --
- ----------------------------------------------------------------------------------------------
7,969 7,789 9,122 -- 10,615 -- 10,606 --
414 611 487 -- 915 -- 890 --
- ----------------------------------------------------------------------------------------------
19.25 12.76 18.75 -- 11.60 -- 11.92 --
- ----------------------------------------------------------------------------------------------
16,283,171 5,559,071 5,388,768 -- 47,237,023 594,507 2,353,030 --
843,978 430,174 284,497 -- 4,084,290 47,361 197,851 --
- ----------------------------------------------------------------------------------------------
19.29 12.92 18.94 -- 11.57 12.55 11.89 --
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- 125,848,673
-- -- -- -- -- -- -- 125,925,688
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- 1.00
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- 696,296,194
-- -- -- -- -- -- -- 696,310,056
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- 1.00
- ----------------------------------------------------------------------------------------------
See Notes to Financial Statements.
[GRAPHIC] 147
GE GE GE GE
U.S. CORE VALUE PREMIER SMALL-CAP
Statements of Operations EQUITY EQUITY GROWTH EQUITY EQUITY
For the six months ended March 31, 2010 (unaudited) FUND FUND FUND FUND
INVESTMENT INCOME
INCOME:
Dividends.................................................... $ 2,301,476 $ 405,812 $ 817,661 $ 228,039
Interest..................................................... 172,947 8,778 9,888 136,966
Interest from affliated investments.......................... 303 42 248 147
Less: Foreign taxes withheld................................. (7,029) (1,282) -- (147)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME.................................................. 2,467,697 413,350 827,797 365,005
- -------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees............................. 619,135 106,590 570,209 173,802
Distributors Fees (Note 6)
Class A..................................................... 239,283 44,774 182,438 40,681
Class B..................................................... 4,180 2,571 8,596 4,154
Class C..................................................... 15,435 9,996 72,775 14,462
Class R..................................................... 22 22 185 22
Blue sky fees................................................ 28,502 25,972 25,822 15,402
Transfer agent fees.......................................... 89,726 32,654 73,883 31,560
Trustees fees................................................ 5,154 609 3,025 615
Custody and accounting expenses.............................. 37,417 31,634 30,421 65,141
Professional fees............................................ 20,616 9,400 19,571 10,806
Registration and other expenses.............................. 36,183 8,583 36,601 10,631
- -------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER AND REIMBURSEMENT*............... 1,095,653 272,805 1,023,526 367,276
Less: Expenses waived or borne by the adviser................ -- -- -- --
Less: Expenses reimbursed by the adviser**................... (6,164) (1,263) (5,423) (3,297)
- -------------------------------------------------------------------------------------------------------------------
Net expenses................................................. 1,089,489 271,542 1,018,103 363,979
- -------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS).................................. 1,378,208 141,808 (190,306) 1,026
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments.................................................. (1,932,142) (66,626) (2,249,368) 417,328
Futures...................................................... 478,270 119,624 158,269 95,016
Written options.............................................. -- -- -- 2,770
Foreign currency related transactions........................ 1,088 1 -- --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/(DEPRECIATION)
ON:
Investments.................................................. 28,874,719 3,325,305 22,229,278 3,657,353
Futures...................................................... 1,108 (1,295) (3,477) 23,899
Written options.............................................. -- -- -- 2,730
Foreign currency related transactions........................ (41) -- -- --
- -------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments....... 27,423,002 3,377,009 20,134,702 4,199,096
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... $28,801,210 $3,518,817 $19,944,396 $4,200,122
- -------------------------------------------------------------------------------------------------------------------
* For more information regarding expense limits that were in effect for the
Funds, please refer to Note 6 of the Notes to Financial Statements.
**Relates to GEAM's voluntary management fee waiver with respect to a Fund's
Investment in the GE Money Market Fund.
***Relates to GEAM's subsidizing of certain class specific expenses of the GE
Money Market Fund -- Retail Class.
See Notes to Financial Statements.
148
[GRAPHIC]
GE GE GE GE GE GE GE
GLOBAL INTERNATIONAL TOTAL GOVERNMENT SHORT-TERM GE FIXED MONEY
EQUITY EQUITY RETURN SECURITIES GOVERNMENT TAX-EXEMPT INCOME MARKET
FUND FUND FUND FUND FUND FUND FUND FUND
$ 275,751 $ 309,718 $ 605,258 $ -- $ -- $ -- $ -- $ --
26,959 190,098 682,974 1,411,725 1,254,423 873,789 2,429,747 1,201,900
80 43 -- 1,253 345 56 601 --
(16,147) (25,869) (26,758) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------
286,643 473,990 1,261,474 1,412,978 1,254,768 873,845 2,430,348 1,201,900
- ----------------------------------------------------------------------------------------------------
174,436 137,906 326,098 212,775 168,925 69,418 177,126 1,210,326
38,089 33,728 134,521 131,024 59,722 46,826 120,713 --
370 1,638 18,477 1,907 2,064 309 1,595 --
677 5,873 58,566 3,214 29,712 7,052 4,450 --
19 19 22 -- 26 -- 26 --
21,436 26,608 16,919 25,400 29,865 26,821 27,556 25,961
42,704 34,688 50,322 37,777 22,175 5,632 33,411 83,886
759 702 2,137 2,028 2,092 657 2,012 15,198
39,566 52,723 163,234 27,462 36,752 26,708 82,892 38,044
9,418 11,172 13,306 10,328 9,849 9,209 13,029 12,120
13,587 11,373 26,102 14,094 12,575 4,262 13,318 58,356
- ----------------------------------------------------------------------------------------------------
341,061 316,430 809,704 466,009 373,757 196,894 476,128 1,443,891
-- -- -- -- -- (21,706) -- (79,250)***
(1,591) (852) (25,918) (15,486) (11,048) (1,408) (12,395) (215,816)
- ----------------------------------------------------------------------------------------------------
339,470 315,578 783,786 450,523 362,709 173,780 463,733 1,148,825
- ----------------------------------------------------------------------------------------------------
(52,827) 158,412 477,688 962,455 892,059 700,065 1,966,615 53,075
- ----------------------------------------------------------------------------------------------------
(64,452) (1,311,545) (285,095) 1,089,960 817,918 (150,349) 1,549,702 1,551
497 86,653 1,004,170 260,305 (28,311) -- (163) --
-- -- -- -- -- -- -- --
(22,376) (25,334) (31,821) (614) -- -- 86 --
3,084,629 2,546,273 6,549,864 (2,197,776) (555,013) (448,409) (58,823) --
(339) 6,592 43,873 (2,787) 12,078 -- 197,427 --
-- -- -- -- -- -- -- --
(359) (1,790) 1,099 1 -- -- (23) --
- ----------------------------------------------------------------------------------------------------
2,997,600 1,300,849 7,282,090 (850,911) 246,672 (598,758) 1,688,206 1,551
- ----------------------------------------------------------------------------------------------------
$2,944,773 $ 1,459,261 $7,759,778 $ 111,544 $1,138,731 $ 101,307 $3,654,821 $ 54,626
- ----------------------------------------------------------------------------------------------------
[GRAPHIC] 149
Statements of Changes in Net Assets GE
GE CORE
U.S. VALUE
EQUITY EQUITY
FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010
(UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS :
Net investments income (loss)................... $ 1,378,208 $ 3,788,905 $ 141,808 $ 431,999 $ (190,306)
Net realized gain (loss) on investments,
futures, written options, and foreign
currency transactions......................... (1,452,784) (55,099,252) 52,999 (8,831,668) (2,091,099)
Net increase (decrease) in unrealized
appreciation / (depreciation) on investments,
futures, written options, and foreign
currency transactions......................... 28,875,786 33,594,167 3,324,010 4,781,550 22,225,801
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations......... 28,801,210 (17,716,180) 3,518,817 (3,618,119) 19,944,396
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM :
Net investment income
Class A....................................... (1,922,066) (2,380,878) (339,748) (430,102) (374,221)
Class B....................................... (8,091) -- (3,207) -- (1,996)
Class C....................................... (19,644) (5,269) (11,361) (6,820) --
Class R....................................... (73) (73) (54) (84) (213)
Class Y....................................... (1,373,258) (1,435,307) (3,399) (1,062) (116,967)
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Net realized gains
Class A....................................... -- (2,534,174) -- (442,670) --
Class B....................................... -- (22,296) -- (14,373) --
Class C....................................... -- (45,841) -- (15,590) --
Class R....................................... -- (97) -- (104) --
Class Y....................................... -- (1,212,981) -- (877) --
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. (3,323,132) (7,636,916) (357,769) (911,682) (493,397)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations
and distributions................................ 25,478,078 (25,353,096) 3,161,048 (4,529,801) 19,451,999
- ----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS :
Proceeds from sale of shares
Class A....................................... 11,965,603 20,750,407 3,233,826 3,986,518 11,097,855
Class B....................................... 1,002 7,429 -- 13,965 877
Class C....................................... 119,706 432,971 401,360 1,016,604 1,581,947
Class R....................................... -- -- -- -- 78,419
Class Y....................................... 5,633,057 13,191,210 48,880 274,951 12,503,751
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Value of distributions reinvested
Class A....................................... 1,854,565 4,789,290 321,634 835,601 345,643
Class B....................................... 7,798 21,299 2,952 14,052 1,966
Class C....................................... 17,943 48,063 10,733 20,912 --
Class R....................................... 73 170 54 188 213
Class Y....................................... 1,372,958 2,648,274 254 210 66,496
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Proceeds from short-term trading fees
Class A....................................... -- -- -- -- --
Class B....................................... -- -- -- -- --
Class C....................................... -- -- -- -- --
Class R....................................... -- -- -- -- --
Class Y....................................... -- -- -- -- --
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Cost of shares redeemed
Class A....................................... (30,763,196) (43,195,737) (2,172,883) (8,093,915) (19,859,533)
Class B....................................... (412,036) (942,140) (220,950) (669,453) (1,437,140)
Class C....................................... (557,828) (1,389,075) (161,937) (292,497) (2,058,205)
Class R....................................... -- -- -- -- --
Class Y....................................... (5,242,693) (12,554,626) (101,995) (34,907) (3,625,056)
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from shares transactions (16,003,048) (16,192,465) 1,361,928 (2,927,771) (1,302,767)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.......... 9,475,030 (41,545,561) 4,522,976 (7,457,572) 18,148,232
NET ASSETS
Beginning of period............................. 315,251,954 356,797,515 37,245,975 44,703,547 189,513,517
- ----------------------------------------------------------------------------------------------------------------------------------
End of period................................... $324,726,984 $315,251,954 $41,768,951 $37,245,975 $207,661,749
- ----------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET
INVESTMENTS INCOME, END OF PERIOD................ $ 741,137 $ 2,686,061 $ 45,118 $ 261,079 $ (200,306)
Statements of Changes in Net Assets GE
PREMIER GE GE
GROWTH SMALL-CAP GLOBAL
EQUITY EQUITY EQUITY
FUND FUND FUND
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30,
2009 (UNAUDITED) 2009 (UNAUDITED) 2009
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS :
Net investments income (loss)................... $ 452,066 $ 1,026 $ (237,957) $ (52,827) $ 480,369
Net realized gain (loss) on investments,
futures, written options, and foreign
currency transactions......................... (15,105,458) 515,114 (10,909,568) (86,331) (11,287,987)
Net increase (decrease) in unrealized
appreciation / (depreciation) on investments,
futures, written options, and foreign
currency transactions......................... 6,682,741 3,683,982 3,763,035 3,083,931 5,474,504
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations......... (7,970,651) 4,200,122 (7,384,490) 2,944,773 (5,333,114)
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM :
Net investment income
Class A....................................... (68,831) -- -- (318,924) (521,383)
Class B....................................... -- -- -- (887) (847)
Class C....................................... -- -- -- (162) (4,183)
Class R....................................... -- -- -- (53) (103)
Class Y....................................... (50,398) -- -- (192,134) (302,409)
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Net realized gains
Class A....................................... (8,122,680) -- (3,318,394) -- (1,192,250)
Class B....................................... (292,942) -- (201,617) -- (7,342)
Class C....................................... (1,097,710) -- (403,002) -- (17,939)
Class R....................................... (526) -- (744) -- (273)
Class Y....................................... (614,258) -- (299,367) -- (577,044)
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS.............................. (10,247,345) -- (4,223,124) (512,160) (2,623,773)
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations
and distributions................................ (18,217,996) 4,200,122 (11,607,614) 2,432,613 (7,956,887)
- ------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS :
Proceeds from sale of shares
Class A....................................... 30,965,430 1,688,545 4,680,103 945,916 1,733,594
Class B....................................... 2 5,997 2 2,164 10,647
Class C....................................... 1,717,474 417,810 197,640 11,991 35,995
Class R....................................... -- -- -- -- --
Class Y....................................... 17,634,950 -- 651,048 899,199 1,358,911
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Value of distributions reinvested
Class A....................................... 7,763,121 -- 3,222,193 300,058 1,604,404
Class B....................................... 285,273 -- 197,332 887 8,189
Class C....................................... 1,049,377 -- 389,417 130 19,342
Class R....................................... 526 -- 744 53 376
Class Y....................................... 507,671 -- 299,367 192,137 875,388
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Proceeds from short-term trading fees
Class A....................................... -- -- 35 -- --
Class B....................................... -- -- 2 -- --
Class C....................................... -- -- 4 -- --
Class R....................................... -- -- -- -- --
Class Y....................................... -- -- 3 -- --
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
Cost of shares redeemed
Class A....................................... (34,846,226) (2,736,592) (8,979,942) (2,086,172) (4,139,654)
Class B....................................... (2,633,384) (422,465) (1,267,882) (23,877) (96,061)
Class C....................................... (5,059,185) (498,032) (1,440,505) (87,123) (235,919)
Class R....................................... -- -- -- -- --
Class Y....................................... (3,060,696) (895,367) (2,676,935) (1,057,179) (2,568,804)
Retail Class.................................. -- -- -- -- --
Institutional Class........................... -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from shares transactions 14,324,333 (2,440,104) (4,727,374) (901,816) (1,393,592)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.......... (3,893,663) 1,760,018 (16,334,988) 1,530,797 (9,350,479)
NET ASSETS
Beginning of period............................. 193,407,180 37,393,821 53,728,809 46,267,416 55,617,895
- ------------------------------------------------------------------------------------------------------------------------------
End of period................................... $189,513,517 $39,153,839 $ 37,393,821 $47,798,213 $ 46,267,416
- ------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (DISTRIBUTION IN EXCESS OF) NET
INVESTMENTS INCOME, END OF PERIOD................ $ 483,397 $ 1,026 $ -- $ (62,827) $ 502,160
See Notes to Financial Statements.
150
[GRAPHIC]
GE GE GE GE
INTERNATIONAL TOTAL GOVERNMENT SHORT-TERM
EQUITY RETURN SECURITIES GOVERNMENT
FUND FUND FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30,
(UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED) 2009
- -----------------------------------------------------------------------------------------------------------------------------
$ 158,412 $ 962,049 $ 477,688 $ 1,794,688 $ 962,455 $ 3,299,303 $ 892,059 $ 2,259,392
(1,250,226) (14,374,864) 687,254 (20,682,000) 1,349,651 (124,678) 789,607 739,909
2,551,075 8,989,199 6,594,836 12,977,426 (2,200,562) 1,947,873 (542,935) 1,826,564
- -----------------------------------------------------------------------------------------------------------------------------
1,459,261 (4,423,616) 7,759,778 (5,909,886) 111,544 5,122,498 1,138,731 4,825,865
- -----------------------------------------------------------------------------------------------------------------------------
(765,322) (1,107,156) (1,518,961) (2,194,034) (958,252) (3,273,269) (363,532) (863,012)
(9,237) (8,931) (30,971) (70,116) (1,989) (11,358) (2,149) (19,093)
(27,137) (27,976) (114,513) (160,017) (3,468) (14,453) (22,929) (56,117)
(200) (178) (92) (154) -- -- (68) (178)
(170,748) (233,020) (108,741) (151,580) -- -- (508,753) (1,348,725)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- (5,219,970) -- (5,859,806) (268,605) -- -- --
-- (74,187) -- (394,414) (1,011) -- -- --
-- (175,247) -- (692,554) (1,574) -- -- --
-- (902) -- (462) -- -- -- --
-- (978,770) -- (355,151) -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
(972,644) (7,826,337) (1,773,278) (9,878,288) (1,234,899) (3,299,080) (897,431) (2,287,125)
- -----------------------------------------------------------------------------------------------------------------------------
486,617 (12,249,953) 5,986,500 (15,788,174) (1,123,355) 1,823,418 241,300 2,538,740
- -----------------------------------------------------------------------------------------------------------------------------
1,606,474 8,863,733 7,392,718 12,419,201 526,916 6,521,674 4,612,018 14,230,839
1,279 55,217 1 34,136 -- 34,018 -- 112,346
215,393 179,025 3,232,646 2,582,452 111,127 571,813 2,197,315 4,635,407
-- 1 -- -- -- -- -- --
234,839 4,847,905 652,051 3,297,556 -- -- 843,323 8,101,252
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
709,817 6,040,642 1,404,981 7,496,713 971,101 2,494,843 338,943 807,821
9,053 77,830 30,249 452,681 2,092 7,315 2,111 18,057
26,851 199,186 85,039 764,132 2,913 7,947 18,670 37,445
200 1,080 92 616 -- -- 68 174
159,478 1,203,587 103,417 491,411 -- -- 495,587 1,270,933
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- 430 -- 185
-- -- -- -- -- 2 -- 7
-- -- -- -- -- -- -- 18
-- -- -- -- -- -- -- --
-- -- -- -- -- 3 -- 257
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
(9,071,878) (18,569,656) (7,999,031) (18,327,360) (7,047,506) (16,387,528) (5,243,151) (9,291,086)
(132,114) (215,218) (2,445,712) (2,819,342) (195,280) (192,462) (257,445) (1,273,956)
(187,304) (325,264) (1,894,377) (4,419,016) (99,085) (362,751) (1,547,128) (2,259,785)
-- -- -- -- -- -- -- --
(3,166,406) (6,370,659) (3,467,249) (1,276,812) -- -- (16,219,188) (5,878,120)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
(9,594,318) (4,012,591) (2,905,175) 696,368 (5,727,722) (7,304,696) (14,758,877) 10,511,794
- -----------------------------------------------------------------------------------------------------------------------------
(9,107,701) (16,262,544) 3,081,325 (15,091,806) (6,851,077) (5,481,278) (14,517,577) 13,050,534
42,980,294 59,242,838 128,666,608 143,758,414 109,860,347 115,341,625 116,287,397 103,236,863
- -----------------------------------------------------------------------------------------------------------------------------
$33,872,593 $ 42,980,294 $131,747,933 $128,666,608 $103,009,270 $109,860,347 $101,769,820 $116,287,397
- -----------------------------------------------------------------------------------------------------------------------------
$ 80,714 $ 894,946 $ 16,423 $ 1,312,013 $ (42,639) $ (41,385) $ 79,708 $ 85,080
GE GE
GE FIXED MONEY
TAX-EXEMPT INCOME MARKET
FUND FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30,
(UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED) 2009
- -----------------------------------------------------------------------------------------------
$ 700,065 $ 1,223,593 $ 1,966,615 $ 4,587,643 $ 53,075 $ 5,810,139
(150,349) (177,601) 1,549,625 (5,803,426) 1,551 179,004
(448,409) 2,919,832 138,581 8,027,457 -- --
- -----------------------------------------------------------------------------------------------
101,307 3,965,824 3,654,821 6,811,674 54,626 5,989,143
- -----------------------------------------------------------------------------------------------
(669,276) (1,204,416) (1,859,059) (4,121,427) -- --
(875) (3,396) (4,938) (17,877) -- --
(19,547) (10,239) (13,851) (31,173) -- --
-- -- (187) (352) -- --
(10,367) (5,543) (57,659) (446,896) -- --
-- -- -- -- (1,496) (1,273,633)
-- -- -- -- (51,579) (4,566,829)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
- -----------------------------------------------------------------------------------------------
(700,065) (1,223,594) (1,935,694) (4,617,725) (53,075) (5,840,462)
- -----------------------------------------------------------------------------------------------
(598,758) 2,742,230 1,719,127 2,193,949 1,551 148,681
- -----------------------------------------------------------------------------------------------
4,847,724 4,378,693 4,384,905 7,784,821 -- --
-- -- -- 32,479 -- --
1,097,907 765,620 137,025 562,147 -- --
-- -- -- -- -- --
345,581 453,816 122,206 2,366,692 -- --
-- -- -- -- 10,536,467 43,686,435
-- -- -- -- 2,145,314,082 4,296,642,539
522,069 962,793 1,624,043 3,609,725 -- --
664 2,677 3,307 13,967 -- --
9,548 3,659 12,766 27,223 -- --
-- -- 187 347 -- --
95 1,441 44,419 435,229 -- --
-- -- -- -- 1,367 1,208,865
-- -- -- -- 50,640 4,489,334
-- -- -- --
-- -- -- -- -- --
-- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(1,210,278) (2,736,098) (13,381,690) (25,886,964) -- --
(32,483) (83,572) (94,210) (476,830) -- --
(80,214) (65,255) (202,122) (622,361) -- --
-- -- -- -- -- --
(249,412) (2,010) (6,401,748) (7,281,137) -- --
-- -- -- -- (49,200,875) (84,015,799)
-- -- -- -- (2,344,501,823) (4,088,639,418)
- -----------------------------------------------------------------------------------------------
5,251,201 3,681,764 (13,750,912) (19,434,662) (237,800,142) 173,371,956
- -----------------------------------------------------------------------------------------------
4,652,443 6,423,994 (12,031,785) (17,240,713) (237,798,591) 173,520,637
37,797,335 31,373,341 113,370,789 130,611,502 1,059,943,458 886,422,821
- -----------------------------------------------------------------------------------------------
$42,449,778 $37,797,335 $101,339,004 $113,370,789 $ 822,144,867 $ 1,059,943,458
- -----------------------------------------------------------------------------------------------
$ 50,586 $ 50,586 $ 839,693 $ 808,772 $ (2,842) $ (2,842)
[GRAPHIC] 151
Statements of
Changes in Net GE GE
Assets (continued) U.S. CORE VALUE
Changes in Fund EQUITY EQUITY
Shares FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010
(UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold............................ 545,596 1,209,570 390,839 583,234 581,008
Issued for distribution reinvested..... 84,107 298,770 38,199 130,359 17,965
Shares redeemed........................ (1,395,344) (2,477,585) (259,608) (1,193,608) (1,042,182)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. (765,641) (969,245) 169,430 (480,015) (443,209)
- -----------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold............................ 51 449 -- 1,714 55
Issued for distribution reinvested..... 372 1,388 369 2,296 116
Shares redeemed........................ (19,730) (56,267) (27,824) (102,927) (85,865)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. (19,307) (54,430) (27,455) (98,917) (85,694)
- -----------------------------------------------------------------------------------------------------------------------
CLASS C:
Shares sold............................ 5,838 26,197 51,115 155,224 94,191
Issued for distribution reinvested..... 872 3,200 1,362 3,474 --
Shares redeemed........................ (27,443) (88,208) (21,016) (45,696) (123,330)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. (20,733) (58,811) 31,461 113,002 (29,139)
- -----------------------------------------------------------------------------------------------------------------------
CLASS R:
Shares sold............................ -- -- -- -- 4,212
Issued for distribution reinvested..... 3 11 6 29 11
Shares redeemed........................ -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. 3 11 6 29 4,223
- -----------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold............................ 259,055 761,557 5,250 36,359 643,950
Issued for distribution reinvested..... 62,692 166,453 27 30 3,400
Shares redeemed........................ (240,891) (717,865) (11,018) (4,470) (187,937)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. 80,856 210,145 (5,741) 31,919 459,413
- -----------------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold............................ -- -- -- -- --
Issued for distribution reinvested..... -- -- -- -- --
Shares redeemed........................ -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS:
Shares sold............................ -- -- -- -- --
Issued for distribution................ -- -- -- -- --
Shares redeemed........................ -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Statements of GE
Changes in Net PREMIER GE
Assets (continued) GROWTH GLOBAL
Changes in Fund EQUITY GE SMALL-CAP EQUITY
Shares FUND EQUITY FUND FUND
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30,
2009 (UNAUDITED) 2009 (UNAUDITED) 2009
- -------------------------------------------------------------------------------------------------------------------
CLASS A:
Shares sold............................ 655,758 189,551 111,853 50,414 852,613
Issued for distribution reinvested..... 505,839 -- 111,961 16,080 613,886
Shares redeemed........................ (1,278,941) (313,800) (271,292) (112,283) (1,836,645)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. (117,344) (124,249) (47,478) (45,789) (370,146)
- -------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold............................ -- 785 632 135 4,742
Issued for distribution reinvested..... 35,364 -- 626 53 8,581
Shares redeemed........................ (201,544) (55,167) (7,570) (1,390) (22,628)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. (166,180) (54,382) (6,312) (1,202) (9,305)
- -------------------------------------------------------------------------------------------------------------------
CLASS C:
Shares sold............................ 31,761 55,037 2,425 703 17,810
Issued for distribution reinvested..... 70,165 -- 1,477 8 22,034
Shares redeemed........................ (219,388) (65,872) (17,409) (5,219) (34,271)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. (117,462) (10,835) (13,507) (4,508) 5,573
- -------------------------------------------------------------------------------------------------------------------
CLASS R:
Shares sold............................ -- -- -- -- --
Issued for distribution reinvested..... 117 -- 26 3 110
Shares redeemed........................ -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. 117 -- 26 3 110
- -------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold............................ 92,404 -- 88,333 47,718 531,022
Issued for distribution reinvested..... 45,427 -- 61,003 10,275 120,964
Shares redeemed........................ (354,287) (98,284) (165,649) (56,769) (554,613)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. (216,456) (98,284) (16,313) 1,224 97,373
- -------------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold............................ -- -- -- -- --
Issued for distribution reinvested..... -- -- -- -- --
Shares redeemed........................ -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS:
Shares sold............................ -- -- -- -- --
Issued for distribution................ -- -- -- -- --
Shares redeemed........................ -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares. -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
152
[GRAPHIC]
GE GE
GE GE GOVERN- SHORT-TERM
INTERNATIONAL TOTAL MENT GOVERN-
EQUITY RETURN SECURITIES MENT
FUND FUND FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30,
(UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED) 2009
- ----------------------------------------------------------------------------------------------------------------------------
127,061 2,061,947 405,443 770,882 59,015 719,169 397,741 1,241,768
56,514 588,115 77,409 504,150 108,923 276,093 29,211 70,647
(695,573) (2,318,922) (439,248) (1,162,434) (788,864) (1,813,921) (451,738) (811,309)
- ----------------------------------------------------------------------------------------------------------------------------
(511,998) 331,140 43,604 112,598 (620,926) (818,659) (24,786) 501,106
- ----------------------------------------------------------------------------------------------------------------------------
117 -- -- 2,210 -- 3,725 -- 9,911
789 24,466 1,724 31,436 233 803 182 1,587
(11,240) (200,163) (138,903) (181,487) (21,769) (21,028) (22,214) (111,395)
- ----------------------------------------------------------------------------------------------------------------------------
(10,334) (175,697) (137,179) (147,841) (21,536) (16,500) (22,032) (99,897)
- ----------------------------------------------------------------------------------------------------------------------------
18,886 125,021 191,873 170,808 12,232 62,469 189,498 405,493
2,333 89,998 5,041 55,132 322 867 1,611 3,284
(15,929) (381,920) (112,375) (301,302) (10,952) (39,441) (133,578) (196,338)
- ----------------------------------------------------------------------------------------------------------------------------
5,290 (166,901) 84,539 (75,362) 1,602 23,895 57,531 212,439
- ----------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
16 40 5 41 -- -- 6 15
-- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
16 40 5 41 -- -- 6 15
- ----------------------------------------------------------------------------------------------------------------------------
18,366 1,129,676 35,351 204,690 -- -- 72,903 712,582
12,547 37,858 5,639 32,717 -- -- 42,854 111,471
(238,941) (204,660) (186,667) (80,470) -- -- (1,402,486) (519,254)
- ----------------------------------------------------------------------------------------------------------------------------
(208,028) 962,874 (145,677) 156,937 -- -- (1,286,729) 304,799
- ----------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
GE GE
GE FIXED MONEY
TAX-EXEMPT INCOME MARKET
FUND FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30, MARCH 31, 2010 SEPTEMBER 30,
(UNAUDITED) 2009 (UNAUDITED) 2009 (UNAUDITED) 2009
- ----------------------------------------------------------------------------------------------
415,026 389,352 370,986 692,504 -- --
44,842 85,316 137,378 320,294 -- --
(103,807) (240,787) (1,139,364) (2,304,056) -- --
- ----------------------------------------------------------------------------------------------
356,061 233,881 (631,000) (1,291,258) -- --
- ----------------------------------------------------------------------------------------------
-- -- -- 2,925 -- --
57 238 280 1,245 -- --
(2,801) (7,418) (8,002) (42,303) -- --
- ----------------------------------------------------------------------------------------------
(2,744) (7,180) (7,722) (38,133) -- --
- ----------------------------------------------------------------------------------------------
94,049 66,533 11,601 50,135 -- --
820 323 1,079 2,412 -- --
(6,850) (5,760) (17,109) (54,962) -- --
- ----------------------------------------------------------------------------------------------
88,019 61,096 (4,429) (2,415) -- --
- ----------------------------------------------------------------------------------------------
-- -- -- -- -- --
-- -- 16 31 -- --
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------------
-- -- 16 31 -- --
- ----------------------------------------------------------------------------------------------
27,361 36,782 10,356 211,622 -- --
8 118 3,764 38,728 -- --
(19,766) (160) (546,641) (652,283) -- --
- ----------------------------------------------------------------------------------------------
7,603 36,740 (532,521) (401,933) -- --
- ----------------------------------------------------------------------------------------------
-- -- -- -- 10,535,990 43,686,407
-- -- -- -- 1,367 1,208,865
-- -- -- -- (49,200,874) (84,015,799)
- ----------------------------------------------------------------------------------------------
-- -- -- -- (38,663,517) (39,120,527)
- ----------------------------------------------------------------------------------------------
-- -- -- -- 2,145,311,490 4,296,642,443
-- -- -- -- 50,640 4,489,334
-- -- -- -- (2,344,501,823) (4,088,639,418)
- ----------------------------------------------------------------------------------------------
-- -- -- -- (199,139,693) 212,492,359
- ----------------------------------------------------------------------------------------------
[GRAPHIC] 153
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[GRAPHIC]
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 sixteen
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 Premier Growth Equity Fund, GE Small-Cap Equity Fund, GE
Global Equity Fund, GE International Equity Fund, GE Total Return 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 Premier Growth Equity Fund GE Fixed Income Fund
GE Small-Cap Equity Fund
GE Global Equity Fund
GE International Equity Fund
GE Total Return Fund
There is no front-end sales charge 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 GE Funds' prospectus. 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.
154
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[GRAPHIC]
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 Premier Growth Equity Fund GE Tax-Exempt Fund
GE Small-Cap Equity Fund GE Fixed Income Fund
GE Global Equity Fund
GE International Equity Fund
GE Total Return Fund
The contingent deferred sales charge for redemptions of Class B shares 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 redemptions of Class C
shares for all Funds is 1.00% within the first year of purchase and 0.00%
thereafter.
No front-end or contingent deferred sales charges are assessed by the Trust
with respect to the Retail Class and Institutional Class shares of the 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 U.S. generally
accepted accounting principles (GAAP) requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results may differ from
those estimates.
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.
If prices are not readily available for a portfolio security, or if it is
believed that a price for a portfolio security does not represent its fair
value, the security may be valued using procedures approved by the Funds' Board
of Trustees that are designed to establish its "fair" value. 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.
[GRAPHIC] 155
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[GRAPHIC]
Notes to Financial Statements
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 model to identify
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 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.
All portfolio securities of the GE Money Market Fund and any short-term
securities of sufficient credit quality 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.
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 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.
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 each
Fund's respective share classes based upon the relative net assets of each
class share.
FAIR VALUE MEASUREMENTS
The Funds adopted ASC 820, Fair Valuation Measurements and Disclosures
effective October 2008, for all financial instruments accounted for at fair
value.
For financial assets and liabilities, fair value is the price the Funds would
receive to sell an asset or pay to transfer a liability in an orderly
transaction with a market participant at the measurement date. In the absence
of active markets for the identical assets or liabilities, such measurements
involve developing assumptions based on market observable data and, in the
absence of such data, internal information that is consistent with what market
participants would use in a hypothetical transaction that occurs at the
measurement date.
Observable inputs reflect market data obtained from independent sources, while
unobservable inputs reflect our market assumptions. Preference is given to
observable inputs. These two types of inputs create the following fair value
hierarchy:
Level 1 -- Quoted prices for identical investments in active markets.
Level 2 -- Quoted prices for similar investments in active markets; quoted
prices for identical or similar investments in markets that are not active; and
model-derived valuations whose inputs are observable or whose significant value
drivers are observable.
Level 3 -- Significant inputs to the valuation model are unobservable.
Policies and procedures are maintained to value investments using the best and
most relevant data available. In addition, pricing vendors are utilized to
assist in valuing investments. GEAM performs periodic reviews of the
methodologies used by independent pricing services including price validation
of individual securities.
The following section describes the valuation methodologies the Funds use to
measure different financial investments at fair value.
156
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[GRAPHIC]
Notes to Financial Statements
When available, the Funds use quoted market prices to determine the fair value
of investment securities, and they are included in Level 1. Level 1 securities
primarily include publicly-traded equity securities.
When quoted market prices are unobservable, pricing information is obtained
from an independent pricing vendor. The pricing vendor uses various pricing
models for each asset class that are consistent with what other market
participants would use. The inputs and assumptions to the model of the pricing
vendor are derived from market observable sources including: benchmark yields,
reported trades, broker/dealer quotes, issuer spreads, benchmark securities,
bids, offers, and other market related data. Since many fixed income securities
do not trade on a daily basis, the methodology of the pricing vendor uses
available information as applicable such as benchmark curves, benchmarking of
like securities, sector groupings, and matrix pricing. The pricing vendor
considers available market observable inputs in determining the evaluation for
a security. Thus, certain securities may not be priced using quoted prices, but
rather determined from market observable information. These investments are
included in Level 2 and primarily comprise our portfolio of corporate fixed
income, government, mortgage and asset-backed securities. In infrequent
circumstances, pricing vendors may provide the Funds with valuations that are
based on significant unobservable inputs, and in those circumstances we
classify the investment securities in Level 3.
The Funds use non-binding broker quotes as the primary basis for valuation when
there is limited, or no, relevant market activity for a specific investment or
for other investments that share similar characteristics. The Funds have not
adjusted the prices obtained. Investment securities priced using non-binding
broker quotes are included in Level 3. As is the case with the primary pricing
vendor, third-party brokers do not provide access to their proprietary
valuation models, inputs and assumptions. Accordingly, GEAM conducts internal
reviews of pricing for all such investment securities periodically to ensure
reasonableness of valuations used in the Funds' financial statements. These
reviews are designed to identify prices that appear stale, those that have
changed significantly from prior valuations, and other anomalies that may
indicate that a price may not be accurate. Based on the information available,
GEAM believes that the fair values provided by the brokers are representative
of prices that would be received to sell the assets at the measurement date
(exit prices).
Other financial investments are derivative instruments that are not reflected
in Total Investments, such as futures, forwards, swaps, and written options
contracts, which are valued based on the unrealized appreciation/depreciation
of the instrument.
The Funds use closing prices for derivatives included in Level 1, which are
traded either on exchanges or liquid over-the counter markets. Derivative
assets and liabilities included in Level 2 primarily represent interest rate
swaps, cross-currency swaps and foreign currency and commodity forward and
option contracts. Derivative assets and liabilities included in Level 3
primarily represent interest rate products that contain embedded optionality or
prepayment features.
Transfers in and out of Level 3 are considered to occur at the beginning of the
period.
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. For example, money
market securities are valued using amortized cost, in accordance with the
Investment Company Act of 1940. Generally, amortized cost reflects the current
fair value of a security, but since the value is not obtained from a quoted
price in an active market, such securities are reflected as Level 2. Fair value
determinations are required for securities whose value is affected by a
significant event that will materially affect the value of a domestic or
foreign security and which occurs subsequent to the time of the close of the
principal market on which such domestic or foreign security trades but prior to
the calculation of the Fund's NAV.
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,
[GRAPHIC] 157
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
including accrued interest, is at least equal to 102% for domestic securities
and 105% for international securities of the repurchase price. In the event the
seller defaults and the value of the security declines, or if the seller enters
an insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
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 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.
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. For the period ended March 31, 2010, the Funds did not participate
in the securities lending program and no fees were paid to GEAM during the
period.
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
(including foreign currencies and open foreign currency contracts) as a result
of changes in foreign exchange rates are included as increases or decreases in
unrealized appreciation/depreciation on foreign currency related transactions.
DERIVATIVES The Funds are subject to equity price risk, interest rate risk,
and foreign currency exchange rate risk in the normal course of pursuing their
investment objectives. The Funds enter into derivative transactions for the
purpose of hedging against the effects of changes in the value of portfolio
securities due to anticipated changes in market conditions, to gain market
exposure for residual and accumulating cash positions, and for managing the
duration of fixed-income investments. A futures contract represents a
commitment for the future purchase or sale of an asset at a specified price on
a specified date. Upon entering into such contracts, the Funds are required to
deposit with the broker, either in cash or securities, an initial margin in an
amount equal to a certain percentage of the contract amount. Subsequent
payments (variation margin) are made or received by the Funds each day,
depending on the daily fluctuations in the value of the contract, and are
recorded for financial statement purposes as unrealized gains or losses by the
Funds. Upon entering into such contracts, the Funds bear the risk of interest
or exchange rates or securities prices moving unexpectedly, in which case, the
Funds may not achieve the anticipated benefits of the futures contracts and may
realize a loss. With futures contracts, there is
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[GRAPHIC]
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[GRAPHIC]
Notes to Financial Statements
minimal counterparty credit risk to the Funds since futures contracts are
exchange traded and the exchange's clearinghouse, as counterparty to all traded
futures, guarantees the futures against default.
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 Funds 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 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
[GRAPHIC] 159
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[GRAPHIC]
Notes to Financial Statements
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. 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 Funds' 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 Funds'
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 Funds' risks in using these contracts include changes in the value of
foreign currency or the possibility that the counterparties do not perform
under the contracts' terms. When a Fund enters into a forward foreign currency
exchange contract, it is required to segregate cash or liquid securities with
its custodian in an amount equal to the value of the Fund's total assets
committed to the consummation of the forward contract. If the value of the
segregated securities declines, additional cash or securities is segregated so
that the value of the account will equal the amount of the Fund's commitment
with respect to the contract.
INVESTMENTS IN FOREIGN MARKETS Investments in foreign markets may involve
special risks and considerations not typically associated with investing in the
United States. These risks include revaluation of currencies, high rates of
inflation, restrictions on repatriation of income and capital, and adverse
political and economic developments. Moreover, securities issued in these
markets may be less liquid, subject to government ownership controls, tariffs
and taxes, subject to delays in settlements, and their prices may be more
volatile.
The Funds may be subject to capital gains and repatriation taxes imposed by
certain countries in which they invest. Such taxes are generally based on
income and/or capital gains earned or repatriated. Taxes are accrued based upon
net investment income, net realized gains and net unrealized appreciation as
income and/or capital gains are earned.
INCOME TAXES The Funds intend to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies, including the
distribution of substantially all of their taxable net investment income,
tax-exempt income, and net realized capital gains to their shareholders.
Therefore, no provision for federal income tax has been made. Each Fund is
treated as a separate taxpayer for federal income tax purposes.
The Funds are subject to ASC 740, Income Taxes. ASC 740 provides guidance for
financial accounting and reporting for the effects of income taxes that result
from an entity's activities during the year. ASC 740 also provides guidance
regarding how certain uncertain tax position should be recognized, measured,
presented and
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[GRAPHIC]
Notes to Financial Statements
disclosed in the financial statements. ASC 740 requires evaluation of tax
positions taken or expected to be taken in the course of preparing the Funds'
tax returns to determine whether the tax positions are "more likely than not"
of being sustained by the applicable tax authority. There are no adjustments to
the Funds' net assets required under ASC 740. The Funds' 2006, 2007, 2008 and
2009 fiscal years tax returns are still open to examination by the Federal and
applicable state tax authorities.
At March 31, 2010, information on the tax cost of investments and distributable
earnings on a tax basis is as follows:
NET TAX
UNREALIZED
COST OF GROSS TAX GROSS TAX APPREC./
INVESTMENTS UNREALIZED UNREALIZED (DEPREC.) ON
FUND FOR TAX PURPOSES APPREC. DEPREC. INVESTMENTS
- --------------------------------------------------------------------------------------
GE U.S. Equity Fund $296,714,229 $44,654,509 $(16,508,431) $28,146,078
GE Core-Value Equity Fund 38,857,933 5,607,270 (2,514,657) 3,092,614
GE Premier Growth Equity 195,894,883 24,080,562 (11,953,169) 12,127,393
GE Small-Cap Equity Fund 36,259,563 5,536,211 (2,491,478) 3,044,733
GE Global Equity Fund 43,611,578 6,690,286 (2,612,713) 4,077,573
GE International Equity Fund 33,637,994 3,935,289 (4,025,522) (90,233)
GE Total Return Fund 128,635,985 11,931,661 (8,049,266) 3,882,395
GE Government Securities Fund 103,632,711 188,188 (1,017,926) (829,738)
GE Short-Term Government Fund 128,553,808 520,333 (805,391) (285,058)
GE Tax-Exempt Fund 42,256,542 1,836,903 (224,721) 1,612,183
GE Fixed Income Fund 104,402,846 2,908,071 (3,374,318) (466,247)
GE Money Market Fund 817,058,219 -- -- --
As of September 30, 2009, 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, 2009, there was $115,020 capital
loss carryover expirations for the GE Tax-Exempt Fund. During the year
ended September 30, 2009, GE Government Securities Fund, GE Short-Term
Government Fund and the GE Money Market Fund utilized capital loss carryovers
in the amounts of $2,107,598, $2,093,313 and $120, respectively.
FUND AMOUNT EXPIRES
--------------------------------------------------
GE U.S. Equity Fund $5,061,505 09/30/17
GE Core-Value Equity Fund 1,258,562 09/30/17
GE Premier Growth Equity Fund 4,473,747 09/30/17
GE Small-Cap Equity Fund 2,288,244 09/30/17
GE Global Equity Fund 2,207,588 09/30/17
GE International Equity Fund 1,321,379 09/30/17
GE Total ReturnFund 2,200,580 09/30/17
GE Short-Term Government Fund 170,353 09/30/15
GE Tax -Exempt Fund 5,270 09/30/11
GE Tax -Exempt Fund 14,537 09/30/12
GE Tax -Exempt Fund 47,679 09/30/14
GE Tax -Exempt Fund 38,829 09/30/15
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[GRAPHIC]
Notes to Financial Statements
FUND AMOUNT EXPIRES
-----------------------------------------
GE Tax -Exempt Fund $ 289,216 09/30/16
GE Tax -Exempt Fund 291,901 09/30/17
GE Fixed Income Fund 2,454,522 09/30/15
GE Fixed Income Fund 1,535,679 09/30/17
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, 2008 as follows:
FUND CAPITAL CURRENCY
---------------------------------------------------
GE U.S. Equity Fund $45,218,182 $ --
GE Core Value Equity Fund 6,169,745 --
GE Premier Growth Equity Fund 7,727,780 --
GE Small-Cap Equity Fund 8,318,919 --
GE Global Equity Fund 9,047,100 --
GE International Equity Fund 9,908,976 7,382
GE Total Return Fund 15,849,165 21,882
GE Government Securities Fund 1,955,114 240
GE Short-Term Government Fund 1,325,442 --
GE Tax-Exempt Fund 63,050 --
GE Fixed Income Fund 5,471,242 240
GE Money Market Fund -- --
The tax composition of distributions paid during the years ended September 30,
2009 and September 30, 2008 were as follows:
YEAR ENDED SEPTEMBER 30, 2009 YEAR ENDED SEPTEMBER 30, 2008
----------------------------------- ------------------------------------
EXEMPT ORDINARY LONG-TERM EXEMPT ORDINARY LONG-TERM
FUND INTEREST INCOME CAPITAL GAINS INTEREST INCOME CAPITAL GAINS
- -------------------------------------------------------------------------------------------------------
GE U.S. Equity Fund $ -- $3,821,527 $3,815,389 $ -- $ 7,637,700 $40,124,310
GE Core-Value Equity Fund -- 443,258 468,424 -- 1,455,388 8,561,862
GE Premier Growth Equity Fund -- 370,828 9,876,517 -- 1,144,716 23,850,564
GE Small-Cap Equity Fund -- 87,873 4,135,251 -- 1,904,931 12,965,990
GE Global Equity Fund -- 828,925 1,794,848 -- 517,395 8,022,740
GE International Equity Fund -- 1,377,261 6,449,076 -- 735,051 6,703,833
GE Total Return Fund -- 2,575,252 7,303,036 -- 3,866,099 14,007,456
GE Government Securities Fund -- 3,299,080 -- -- 4,241,668 --
GE Short-Term Government Fund -- 2,287,125 -- -- 3,657,561 --
GE Tax-Exempt Fund 1,204,775 18,819 -- 1,138,472 50,486 --
GE Fixed Income Fund -- 4,617,725 -- -- 5,823,791 --
GE Money Market Fund -- 5,840,462 -- -- 14,583,617 --
162
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
DISTRIBUTIONS TO SHAREHOLDERS GE Government Securities Fund, GE Short-Term
Government Fund, GE Tax-Exempt Fund, GE Fixed Income Fund, and GE Money Market
Fund declare investment income dividends daily and pay them monthly. All other
Funds declare and pay dividends from investment income annually. All Funds
declare and pay net realized capital gains in excess of capital loss
carryforwards distributions annually. The character of income and gains to be
distributed is determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences include
(but are not limited to) treatment of realized and unrealized gains and losses
on forward foreign currency contracts, paydown gains and losses on
mortgage-backed securities, and losses deferred due to wash sale transactions.
Reclassifications are made to the Funds' capital accounts to reflect income and
gains available for distribution (or available capital loss carryovers) under
income tax regulations. These reclassifications have no impact on net
investment income, realized gains or losses, or net asset value of the Funds.
The calculation of net investment income per share in the Financial Highlights
table excludes these adjustments.
INVESTMENT INCOME Corporate actions (including cash dividends) are recorded on
the ex-dividend date, net of applicable withholding taxes, except for certain
foreign corporate actions, which are recorded as soon after ex-dividend date as
such information becomes available. Interest income is recorded on the accrual
basis.
Accretion of discount and amortization of premium on taxable bonds to the 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. Certain class specific expenses (such as transfer
agency fees or distribution fees) are allocated to the class that incurs such
expense.
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. The redemption fee has currently been suspended. It may be reinstated
at any time without prior notice.
NEW ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board (FASB) issued FASB Accounting
Standards Codification (ASC) effective for financial statements issued for
interim and annual periods ending after September 15, 2009. The ASC is an
aggregation of previously issued authoritative U.S. generally accepted
accounting principles (GAAP) in one comprehensive set of guidance organized by
subject area. In accordance with the ASC, references to previously issued
accounting standards have been replaced by ASC references. Subsequent revisions
to GAAP will be incorporated into the ASC through Accounting Standards Updates
(ASU).
The Funds adopted ASC 855, Subsequent Events effective October 2009. ASC 855
establishes principles and requirements for subsequent events, in particular
(a) the period after the balance sheet date during which management of a
reporting entity shall evaluate events or transactions that may occur for
potential recognition or disclosure in the financial statements; (b) the
circumstances under which an entity shall recognize events or transactions
occurring after the balance sheet date in its financial statements; and (c) the
disclosures that an entity shall make about events or transactions that
occurred after the balance sheet date.
In January 2010, FASB issued ASU 2010-06, Improving Disclosures about Fair
Value Measurements. ASU 2010-06 requires reporting entities to make new
disclosures about the amounts and reasons for significant transfers in and out
of Level 1 and Level 2 fair value measurements and inputs and valuation
techniques used to measure fair value for both recurring and nonrecurring fair
value measurements that fall in either Level 2 or Level 3, and
[GRAPHIC] 163
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
information on purchases, sales, issuances, and settlements in the roll forward
of activity in Level 3 fair value measures. The new disclosures are effective
for interim and annual reporting periods beginning after December 15, 2009,
except for the disclosures about purchases, sales, issuances, and settlements
in the roll forward of activity in Level 3 fair value measurements. Those
disclosures are effect for fiscal years beginning after December 15, 2010, and
for interim periods within those fiscal years. GEAM does not believe the
adoption of ASU 2010-06 will materially impact the financial statement amounts.
3. FAIR VALUE MEASUREMENTS
The Funds adopted ASC 820, Fair Valuation Measurements and Disclosures
effective October 2008. This guidance establishes a new framework for measuring
fair value and expands related disclosures. Broadly, the framework requires
fair value to be determined based on the exchange price that would be received
for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly
transaction between market participants. It also establishes a three-level
valuation hierarchy based upon observable and non-observable inputs.
The following tables present the Funds' investments measured at fair value on a
recurring basis at March 31, 2010:
GE U.S. EQUITY FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Common Stock $315,087,612 $ -- $ -- $315,087,612
Exchange Traded Funds 6,152,538 -- -- 6,152,538
Other Investments -- 73,613 -- 73,613
Short-Term Investments 3,057,753 485,000 -- 3,542,753
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $324,297,903 $558,613 $ -- $324,856,516
- --------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Appreciation $ 763 $ -- $ -- $ 763
GE CORE VALUE EQUITY FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Common Stock $ 40,720,128 $ -- $ -- $ 40,720,128
Exchanged Traded Funds 773,610 -- 773,610
Other Investments -- 11,693 -- 11,693
Short-Term Investments 445,115 -- 445,115
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $ 41,938,853 $ 11,693 $ -- $ 41,950,546
- --------------------------------------------------------------------------------------------
GE PREMIER GROWTH EQUITY FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Common Stock $204,335,404 $ -- $ -- $204,335,404
Other Investments -- 12,459 -- 12,459
Short-Term Investments 3,674,412 -- -- 3,674,412
- --------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $208,009,816 $ 12,459 $ -- $208,022,275
- --------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Depreciation $ (1,845) $ -- $ -- $ (1,845)
164
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
GE SMALL-CAP EQUITY FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Common Stock $36,428,310 $ -- $ -- $36,428,310
Other Investments -- 8,432 -- 8,432
Short-Term Investments 2,893,997 -- -- 2,893,997
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $39,322,307 $ 8,432 $ -- $39,330,739
- ------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Depreciation $ (2,544) $ -- $ -- $ (2,544)
GE GLOBAL EQUITY FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Common Stock $45,292,362 $ -- $ -- $45,292,362
Preferred Stock 1,053,717 -- -- 1,053,717
Exchanged Traded Funds 385,482 -- -- 385,482
Other Investments -- 26,439 -- 26,439
Short-Term Investments 909,299 -- -- 909,299
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $47,640,860 $ 26,439 $ -- $47,667,299
- ------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Appreciation $ 472 $ -- $ -- $ 472
GE INTERNATIONAL EQUITY FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Common Stock $32,679,677 $ -- $ -- $32,679,677
Preferred Stock 261,147 -- -- 261,147
Rights 654 -- -- 654
Other Investments -- 16,014 -- 16,014
Short-Term Investments 592,832 -- -- 592,832
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $33,534,310 $ 16,014 $ -- $33,550,324
- ------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Depreciation $ (1,585) $ -- $ -- $ (1,585)
[GRAPHIC] 165
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
GE TOTAL RETURN FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Domestic Equity $ 44,691,339 $ -- $ -- $ 44,691,339
Foreign Equity 38,903,207 -- -- 38,903,207
Bonds and Notes -- U.S. Treasuries -- 4,914,279 -- 4,914,279
Bonds and Notes -- Agency Mortgage Backed -- 5,345,700 22,270 5,367,970
Bonds and Notes -- Agency Collateralized Mortgage
Obligations -- 516,804 210,697 727,501
Bonds and Notes -- Asset Backed -- 944,923 -- 944,923
Bonds and Notes -- Corporate Notes -- 10,798,516 74,899 10,873,415
Bonds and Notes -- Non-Agency Collateralized Mortgage
Obligations -- 2,634,077 24,923 2,659,000
Bonds and Notes -- Sovereign Bonds -- 1,183,556 1,183,556
Bonds and Notes -- Municipal Notes and Bonds -- 99,427 99,427
Exchange Traded Funds 687,332 -- -- 687,332
Other Investments -- 233,873 -- 233,873
Short-Term Investments 21,232,447 -- -- 21,232,447
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $105,514,325 $26,671,155 $332,789 $132,518,269
- --------------------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Appreciation $ 46,447 $ -- $ -- $ 46,447
Futures Contracts -- Unrealized Depreciation (16,541) -- -- (16,541)
- --------------------------------------------------------------------------------------------------------
TOTAL OTHER FINANCIAL INSTRUMENTS $ 29,906 $ -- $ -- $ 29,906
- --------------------------------------------------------------------------------------------------------
The following table presents the changes in Level 3 investments measured on a
recurring basis for the period ended March 31, 2010:
BONDS AND
BONDS AND NOTES --
NOTES -- AGENCY BONDS AND NON-AGENCY
BONDS AND COLLATERALIZED NOTES -- COLLATERALIZED
NOTES -- AGENCY MORTGAGE CORPORATE MORTGAGE
MORTGAGE BACKED OBLIGATIONS NOTES OBLIGATIONS TOTAL
- ------------------------------------------------------------------------------------------------------------------
Balance at 9/30/2009 $ -- $ 75,892 $ 106,162 $ 15,766 $197,820
Accrued discounts/premiums -- (59,596) (344) -- (59,940)
Realized gain (loss) (86) (20,488) (33,664) (9,502) (63,740)
Change in unrealized gain (loss) 53 96,977 54,714 10,856 162,600
Net purchases (sales) 22,303 20,199 (51,969) (3,020) (12,487)
Net transfers in and out of Level 3 -- 97,713 -- 10,823 108,536
-------------------------------------------------------------------------
Balance at 3/31/2010 $ 22,270 $ 210,697 $ 74,899 $ 24,923 $332,789
Change in unrealized gain (loss)
relating to securities still held at
3/31/10 $ 53 $ 95,036 $ 8,481 $ 10,856 $114,426
166
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
GE GOVERNMENT SECURITIES FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Bonds and Notes -- U.S. Treasuries $ -- $ 69,657,060 $ -- $ 69,657,060
Bonds and Notes -- Agency Mortgage Backed -- 574,829 -- 574,829
Bonds and Notes -- Asset Backed -- 337,882 -- 337,882
Bonds and Notes -- Corporate Notes -- 19,368,658 -- 19,368,658
Bonds and Notes -- Non-Agency Collateralized Mortgage
Obligations -- 143,728 -- 143,728
Other Investments -- 356,336 -- 356,336
Short-Term Investments 164,178 12,199,762 -- 12,363,940
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $ 164,178 $102,638,255 $ -- $102,802,433
- --------------------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Appreciation $ 28,415 $ -- $ -- $ 28,415
Futures Contracts -- Unrealized Depreciation (2,031) -- -- (2,031)
- --------------------------------------------------------------------------------------------------------
TOTAL OTHER FINANCIAL INSTRUMENTS $ 26,384 $ -- $ -- $ 26,384
- --------------------------------------------------------------------------------------------------------
GE SHORT-TERM GOVERNMENT FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Bonds and Notes -- U.S. Treasuries $ -- $ 34,625,422 $ -- $ 34,625,422
Bonds and Notes -- Agency Mortgage Backed -- 53,039,299 -- 53,039,299
Bonds and Notes -- Agency Collateralized Mortgage
Obligations -- 2,107,920 188,157 2,296,077
Bonds and Notes - Asset Backed -- 6,315,633 160,654 6,476,287
Bonds and Notes - Non-Agency Collateralized Mortgage
Obligations -- 2,043,668 -- 2,043,668
Other Investments -- 82,782 -- 82,782
Short-Term Investments 24,705,216 5,000,000 -- 29,705,216
- --------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $24,705,216 $103,214,724 $348,811 $128,268,751
- --------------------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Appreciation $ 37,958 $ -- $ -- $ 37,958
[GRAPHIC] 167
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
The following table presents the changes in Level 3 investments measured on a
recurring basis for the period ended March 31, 2010:
BONDS AND
NOTES -- AGENCY BONDS AND
COLLATERALIZED NOTES --ASSET
MORTGAGE OBLIGATIONS BACKED TOTAL
- -----------------------------------------------------------------------------------------------------------------------
Balance at 9/30/2009 $ 25,464 $ 176,238 $201,702
Accrued discounts/premiums 7,930 -- 7,930
Realized gain (loss) (16,743) -- (16,743)
Change in unrealized gain (loss) 14,259 55,894 70,153
Net purchases (sales) -- (71,478) (71,478)
Net transfers in and out of Level 3 157,247 -- 157,247
-----------------------------------------------
Balance at 3/31/2010 $ 188,157 $ 160,654 $348,811
Change in unrealized gain (loss) relating to securities still held at
3/31/10 $ 14,259 $ 55,894 $ 70,153
GE TAX-EXEMPT FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ---------------------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Municipal Bonds and Notes $ -- $43,252,535 $ -- $ 43,252,535
Other Investments -- 3,207 -- 3,207
Short-Term Investments 612,983 -- -- 612,983
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $ 612,983 $43,255,742 $ -- $ 43,868,725
- ---------------------------------------------------------------------------------------------------------
GE FIXED INCOME FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ---------------------------------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES
Bonds and Notes -- U.S. Treasuries $ -- $16,491,529 $ -- $ 16,491,529
Bonds and Notes -- Agency Mortgage Backed -- 19,044,514 -- 19,044,514
Bonds and Notes -- Agency Collateralized Mortgage
Obligations -- 1,653,502 592,348 2,245,850
Bonds and Notes -- Asset Backed -- 2,318,710 15,962 2,334,672
Bonds and Notes -- Corporate Notes -- 35,973,653 325,475 36,299,128
Bonds and Notes -- Non-Agency Collateralized Mortgage
Obligations -- 10,188,755 90,242 10,278,997
Bonds and Notes -- Sovereign Bonds -- 3,777,203 -- 3,777,203
Bonds and Notes -- Municipal Notes and Bonds -- 407,506 -- 407,506
Preferred Stock 178,407 -- -- 178,407
Other Investments -- 396,108 -- 396,108
Short-Term Investments 12,482,685 -- -- 12,482,685
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES $12,661,092 $90,251,480 $1,024,027 $103,936,599
- ---------------------------------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS
Futures Contracts -- Unrealized Appreciation $ 54,608 $ -- $ -- $ 54,608
Futures Contracts -- Unrealized Depreciation (3,697) -- -- (3,697)
- ---------------------------------------------------------------------------------------------------------
TOTAL OTHER FINANCIAL INSTRUMENTS $ 50,911 $ -- $ -- $ 50,911
- ---------------------------------------------------------------------------------------------------------
168
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
The following table presents the changes in Level 3 investments measured on a
recurring basis for the period ended March 31, 2010:
BONDS AND BONDS AND NOTES --
NOTES -- AGENCY BONDS AND NON-AGENCY
COLLATERALIZED BONDS AND NOTES -- COLLATERALIZED
MORTGAGE NOTES -- CORPORATE MORTGAGE
OBLIGATIONS ASSET BACKED NOTES OBLIGATIONS TOTAL
- ---------------------------------------------------------------------------------------------------------------------
Balance at 9/30/2009 $ 246,774 $ 15,750 $ 547,436 $ 83,059 $ 893,019
Accrued discounts/premiums 4,753 -- (677) -- 4,076
Realized gain (loss) (90,027) 39 (59,749) (251,749) (401,486)
Change in unrealized gain (loss) 135,898 1,886 95,304 307,366 540,454
Net purchases (sales) (67,679) (1,713) (52,718) (80,904) (203,014)
Net transfers in and out of
Level 3 362,629 -- (204,121) 32,470 190,978
----------------------------------------------------------------------------
Balance at 3/31/2010 $ 592,348 $ 15,962 $ 325,475 $ 90,242 $1,024,027
Change in unrealized gain (loss)
relating to securities still held at
3/31/10 $ 128,610 $ 1,886 $ 8,273 $ 18,474 $ 157,243
GE MONEY MARKET FUND
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
Agency $ -- $128,595,681 $ -- $128,595,681
Commercial Paper -- 198,015,125 -- 198,015,125
Repurchase Agreements -- 66,680,000 -- 66,680,000
Corporate Notes -- 156,948,720 -- 156,948,720
Time Deposit -- 35,599,130 -- 35,599,130
Certificates of Deposit -- 231,219,563 -- 231,219,563
-------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS $ -- $817,058,219 $ -- $817,058,219
-------------------------------------------------------------------------
[GRAPHIC] 169
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
4. DERIVATIVES TRANSACTIONS
Shown below are the derivative contracts entered into by the Funds, summarized
by primary risk exposure.
ASSET DERIVATIVES MARCH 31, 2010
------------------------------------------------------------
DERIVATIVES NOT ACCOUNTED LOCATION IN THE NOTIONAL VALUE/
FOR AS HEDGING INSTRUMENTS STATEMENTS OF NO. OF CONTRACTS
UNDER ASC 815 ASSETS AND LIABILITIES LONG/(SHORT) FAIR VALUE
- ------------------------------------------------------------------------------------------
GE U.S. EQUITY FUND
- ------------------------------------------------------------------------------------------
Equity Contracts Receivables, Net Assets -- $ 174,780/3 763*
Net unrealized appreciation/
(depreciation) on Futures
GE PREMIER GROWTH EQUITY FUND
- ------------------------------------------------------------------------------------------
Equity Contracts Receivables, Net Assets -- -- --
Net unrealized appreciation/
(depreciation) on Futures
GE SMALL-CAP EQUITY FUND
- ------------------------------------------------------------------------------------------
Equity Contracts Receivables, Net Assets -- -- --
Net unrealized appreciation/
(depreciation) on Futures
GE GLOBAL EQUITY FUND
- ------------------------------------------------------------------------------------------
Equity Contracts Receivables, Net Assets -- $ 96,837/2 472*
Net unrealized appreciation/
(depreciation) on Futures
GE INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------------------------------
Equity Contracts Receivables, Net Assets -- -- --
Net unrealized appreciation/
(depreciation) on Futures
GE TOTAL RETURN FUND
- ------------------------------------------------------------------------------------------
Equity Contracts Receivables, Net Assets -- $ 7,573,800/130 27,523*
Net unrealized appreciation/
(depreciation) on Futures
- ------------------------------------------------------------------------------------------
Interest Rate Contracts Receivables, Net Assets -- $ (5,686,406)/(49) 18,924*
Net unrealized appreciation/
(depreciation) on Futures
GE GOVERNMENT SECURITIES FUND
- ------------------------------------------------------------------------------------------
Interest Rate Contracts Receivables, Net Assets -- $(13,091,875)/(153) 28,415*
Net unrealized appreciation/
(depreciation) on Futures
GE SHORT-TERM GOVERNMENT FUND
- ------------------------------------------------------------------------------------------
Interest Rate Contracts Receivables, Net Assets -- $(161,180,782)/(282) 37,958*
Net unrealized appreciation/
(depreciation) on Futures
GE FIXED INCOME FUND
- ------------------------------------------------------------------------------------------
Interest Rate Contracts Receivables, Net Assets -- $(16,777,843)/(173) 54,608*
Net unrealized appreciation/
(depreciation) on Futures
LIABILITY DERIVATIVES MARCH 31, 2010
----------------------------------------------------------
LOCATION IN THE
DERIVATIVES NOT ACCOUNTED STATEMENTS OF NOTIONAL VALUE/
FOR AS HEDGING INSTRUMENTS ASSETS AND LIABILITIES NO. OF CONTRACTS
UNDER ASC 815 ------------------------------- LONG/(SHORT) FAIR VALUE
- ---------------------------- ----------------------------
GE U.S. EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
Equity Contracts Liabilities, Net Assets -- Net -- --
unrealized appreciation/
(depreciation) on Futures
GE PREMIER GROWTH EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
Equity Contracts Liabilities, Net Assets -- Net $ (640,860)/(11) (1,845)*
unrealized appreciation/
(depreciation) on Futures
GE SMALL-CAP EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
Equity Contracts Liabilities, Net Assets -- Net $ 541,680/8 (2,544)*
unrealized appreciation/
(depreciation) on Futures
GE GLOBAL EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
Equity Contracts Liabilities, Net Assets -- Net -- --
unrealized appreciation/
(depreciation) on Futures
GE INTERNATIONAL EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
Equity Contracts Liabilities, Net Assets -- Net $ 239,413/5 (1,585)*
unrealized appreciation/
(depreciation) on Futures
GE TOTAL RETURN FUND
- ----------------------------------------------------------------------------------------------------------------------
Equity Contracts Liabilities, Net Assets -- Net $(3,652,854)/(50) (16,291)*
unrealized appreciation/
(depreciation) on Futures
- ----------------------------------------------------------------------------------------
Interest Rate Contracts Liabilities, Net Assets -- Net $ (867,813)/(4) (250)*
unrealized appreciation/
(depreciation) on Futures
GE GOVERNMENT SECURITIES FUND
- ----------------------------------------------------------------------------------------------------------------------
Interest Rate Contracts Liabilities, Net Assets -- Net $ (1,218,450)/(7) (2,031)*
unrealized appreciation/
(depreciation) on Futures
GE SHORT-TERM GOVERNMENT FUND
- ----------------------------------------------------------------------------------------------------------------------
Interest Rate Contracts Liabilities, Net Assets -- Net -- --
unrealized appreciation/
(depreciation) on Futures
GE FIXED INCOME FUND
- ----------------------------------------------------------------------------------------------------------------------
Interest Rate Contracts Liabilities, Net Assets -- Net $(1,852,134)/(11) (3,697)*
unrealized appreciation/
(depreciation) on Futures
*Includes cumulative appreciation/depreciation of futures contracts as reported
in the Schedule of Investments and within the components of net assets section
of the Statements of Assets and Liabilities. Only the current day's variation
margin is reported within the receivables and/or payables of the Statements of
Assets and Liabilities.
170
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
Shown below are the effects of derivative instruments on the Funds' Statements
of Operations, summarized by primary risk exposure.
TOTAL NUMBER OF
DERIVATIVES NOT ACCOUNTED LOCATION IN THE FUTURES/OPTIONS REALIZED GAIN OR
FOR AS HEDGING INSTRUMENTS STATEMENTS OF CONTRACTS PURCHASED (LOSS) ON DERIVATIVES
UNDER ASC 815 OPERATIONS /(SOLD) RECOGNIZED IN INCOME
- ---------------------------------------------------------------------------------------------------------
GE U.S. EQUITY FUND
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Futures, 511/(507) 478,270
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
GE CORE VALUE EQUITY FUND
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Futures, 80/(86) 119,624
Increase/(decrease) in unrealized
appreciation/(depreciation) on
futures
GE PREMIER GROWTH EQUITY FUND
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Futures, 314/(320) 158,269
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
GE SMALL-CAP EQUITY FUND
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Futures, 59/(51) 95,016
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Written * 2,770
options, Increase/ (decrease) in
unrealized
appreciation/(depreciation) on
Written options
GE GLOBAL EQUITY FUND
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Futures, 49/(52) 497
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
GE INTERNATIONAL EQUITY FUND
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Futures, 163/(169) 86,653
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
GE TOTAL RETURN FUND
- ---------------------------------------------------------------------------------------------------------
Equity Contracts Realized gain/(loss) on Futures, 450/(383) 1,023,539
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------------------------------------------------------------------------------------
Interest Rate Contracts Realized gain/(loss) on Futures, 202/(233) (19,369)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
GE GOVERNMENT SECURITIES FUND
- ---------------------------------------------------------------------------------------------------------
Interest Rate Contracts Realized gain/(loss) on Futures, 892/(1,032) 260,305
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
GE SHORT-TERM GOVERNMENT FUND
- ---------------------------------------------------------------------------------------------------------
Interest Rate Contracts Realized gain/(loss) on Futures, 457/(769) (28,311)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
GE FIXED INCOME FUND
- ---------------------------------------------------------------------------------------------------------
Interest Rate Contracts Realized gain/(loss) on Futures, 774/(842) (163)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
CHANGE IN UNREALIZED
LOCATION IN THE APPRECIATION/(DEPRECIATION)
STATEMENTS OF ON DERIVATIVES
OPERATIONS RECOGNIZED IN INCOME
- --------------------------------------------------------------
- ---------------------------
Realized gain/(loss) on Futures, 1,108
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------
Realized gain/(loss) on Futures, (1,295)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
futures
- ---------------------------
Realized gain/(loss) on Futures, (3,477)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------
Realized gain/(loss) on Futures, 23,899
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- --------------------------------------------------------------
Realized gain/(loss) on Written 2,730
options, Increase/ (decrease) in
unrealized
appreciation/(depreciation) on
Written options
- ---------------------------
Realized gain/(loss) on Futures, (339)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------
Realized gain/(loss) on Futures, 6,592
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------
Realized gain/(loss) on Futures, (17,180)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- --------------------------------------------------------------
Realized gain/(loss) on Futures, 61,053
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------
Realized gain/(loss) on Futures, (2,787)
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------
Realized gain/(loss) on Futures, 12,078
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
- ---------------------------
Realized gain/(loss) on Futures, 197,427
Increase/(decrease) in unrealized
appreciation/(depreciation) on
Futures
*Volume for GE Small-Cap Equity Fund written options is disclosed in Note 8.
[GRAPHIC] 171
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
5. 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 ("State Street"). The current 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. 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, 2010.
6. 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
the GE Tax-Exempt Fund on an annualized basis to the level stated in the
schedule below through January 29, 2010. Had these fees and expenses not been
absorbed, the returns (and/or yields) would have been lower. The expense
limitation agreement for the GE Tax-Exempt Fund was renewed for another year
until January 29, 2011.
ANNUALIZED BASED ON AVERAGE DAILY NET ASSET
------------------------------------------
ADVISORY AND OTHER OPERATING
FUND ADMINISTRATION FEES EXPENSE LIMITS
----------------------------------------------------------------------------
GE U.S. Equity Fund 0.40%
GE Core Value Equity Fund 0.55%
GE Premier Growth Equity Fund** 0.60%
GE Small-Cap Equity Fund 0.95%
GE Global Equity Fund 0.75%
GE International Equity Fund** 0.80%
GE Total Return Fund 0.50%
GE Government Securities Fund 0.40%
GE Short-Term Government Fund** 0.30%
GE Tax-Exempt Fund* 0.35% 0.27%
GE Fixed Income Fund 0.35%
GE Money Market Fund*** 0.25%
*GEAM had agreed to assume certain other operating expenses of the GE
Tax-Exempt Fund to maintain expense levels at or below predetermined limits
for the period between January 29, 2010 -- January 29, 2011.
**With respect to these Funds, administration fees (amounting to .05%) are
imposed pursuant to a separate agreement.
***GEAM has voluntarily undertaken to reduce its management fee and/or
subsidize certain expenses of the Fund to the extent necessary to maintain a
minimum annualized net yield of 0.00% for all share classes. This voluntary
management fee reduction and/or expense subsidy may be modified or
discontinued by GEAM at any time without prior notice. There can be no
assurance that this fee reduction will be sufficient to avoid any loss.
Management fee reduced by GEAM may be recouped by GEAM for up to three years
from the date reduced, provided that the total operating expense ratio for
the Fund's Retail Class, after giving effect to the recoupment, would not
exceed 0.60% for the fiscal year in which the recoupment is made.
172
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
GEAM is entitled to seek reimbursement of operating expenses absorbed by GEAM,
up to 3 years from the date the expenses were incurred for the GE Tax-Exempt
Fund (as long as these reimbursements do not cause the Fund's expenses to
exceed the limit). As of March 31, 2010, the following Fund 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, 2010
- ----------------------------------------------------------------------------------------
GE Tax Exempt Fund $224,833 $21,706 $-- $(32,614) 213,925
The expenses eligible for recoupment at March 31, 2010 are set to expire as
follows:
Expires
Fund Amounts September 30,
-----------------------------------------
GE Tax Exempt Fund $34,879 2010
81,387 2011
75,953 2012
21,706 2013
There were no expenses eligible for recoupment for the GE Money Market Fund as
of March 31, 2010.
The Funds paid the following fees to GEAM for advisory and administrative
services for the six-month period ended March 31, 2010. 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 $616,568
GE Core Value Equity Fund 106,288
GE Premier Growth Equity Fund 568,763
GE Small-Cap Equity Fund 68,068
GE Global Equity Fund 174,063
GE International Equity Fund 137,538
GE Total Return Fund 325,017
GE Government Securities Fund 211,687
GE Short-Term Government Fund 167,850
GE Tax-Exempt Fund 69,084
GE Fixed Income Fund 176,036
GE Money Market Fund 907,549
[GRAPHIC] 173
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
GENPACT performs certain accounting and certain administration services not
provided by GEAM. For the six-month period ended March 31, 2010, $17,753 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 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 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 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.)
OTHER For the period ended March 31, 2010, GEID acting as underwriter received
net commissions of $0 from the sale of Class A shares and $12,146 in contingent
deferred sales charges from redemptions of Class B and Class C shares.
7. SUB-ADVISORY FEES
For certain Funds that have retained sub-advisers to manage all or a portion of
the respective Fund's assets, GEAM pays each sub-adviser an investment sub-
advisory fee out of the management fee that it receives from the respective
Fund. The investment sub-advisory fee is paid by GEAM monthly and is based upon
the average daily net assets of the respective Fund's assets that are allocated
to and managed by the sub-adviser. Each such sub-adviser is responsible for the
day-to-day management of those assets of the Fund that is allocated to the
sub-adviser, including the responsibility for making decisions to buy, sell or
hold a particular security with respect to those assets. For their services,
GEAM pays an investment sub-advisory fee to each of Palisade Capital
Management, L.L.C. (Palisade), Champlain Investment Partners, LLC (Champlain),
GlobeFlex Capital, LP (GlobeFlex) and SouthernSun Asset Management, Inc.
(SouthernSun), sub-advisers to the GE Small-Cap Equity Fund, and Urdang
Securities Management, Inc. (Urdang), sub-adviser to the GE Total Return Fund.
For the period ended March 31, 2010, GEAM did not pay a sub-advisory fee to
Urdang because Urdang did not commence managing any portion of the GE Total
Return Fund during this period.
174
[GRAPHIC]
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
8. 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, 2010, were as follows:
U.S. GOVERNMENT SECURITIES OTHER SECURITIES
------------------------- - ------------------------
FUND PURCHASES SALES PURCHASES SALES
- --------------------------------------------------------------------------------------
GE U.S. Equity Fund $ -- $ -- $ 49,862,954 $65,854,622
GE Core Value Equity Fund -- -- 8,845,036 7,310,583
GE Premier Growth Equity Fund -- -- 22,924,479 24,210,538
GE Small-Cap Equity Fund -- -- 7,479,580 10,949,562
GE Global Equity Fund -- -- 16,297,259 17,843,623
GE International Equity Fund -- -- 7,441,865 17,329,464
GE Total Return Fund 18,837,050 24,627,967 39,778,863 35,605,196
GE Government Securities Fund 120,324,665 139,408,005 102,175,805 81,057,969
GE Short-Term Government Fund 146,698,626 166,502,318 57,715,295 49,150,271
GE Tax-Exempt Fund -- -- 13,347,353 6,636,119
GE Fixed Income Fund 71,284,418 87,357,473 61,590,332 54,961,856
OPTIONS During the period ended March 31, 2010, the following option contracts
were written.
GE SMALL- CAP
EQUITY FUND
-----------------
NUMBER OF
CONTRACTS PREMIUM
----------------------------------------------------
Balance as of September 30, 2009 10 $ 2,770
Written -- --
Closed and expired (10) $(2,770)
----------------------------------------------------
Balance as of March 31, 2010 -- --
----------------------------------------------------
9. BENEFICIAL INTEREST
The number of shareholders each owning 5% or more of a Fund are listed below.
The total percentage of a Fund held by such shareholders as well as percentage
of a Fund held by certain directly and indirectly wholly-owned subsidiaries of
General Electric Company and their respective investment plans ("GE
Affiliates") at March 31, 2010 were:
5% OR GREATER SHAREHOLDERS % OF FUND HELD BY
------------------------- GE AFFILIATES*
FUND NUMBER % OF FUND HELD -----------------
----------------------------------------------------------
GE U.S. Equity Fund 3 49% 0%
GE Core Value Equity Fund 1 8% 0%
GE Premier Growth Equity Fund 1 6% 0%
GE Small-Cap Equity Fund 2 27% 0%
[GRAPHIC] 175
March 31, 2010 (unaudited)
[GRAPHIC]
Notes to Financial Statements
5% OR GREATER SHAREHOLDERS % OF FUND HELD BY
------------------------- GE AFFILIATES*
FUND NUMBER % OF FUND HELD -----------------
----------------------------------------------------------
GE Global Equity Fund 1 34% 34%
GE International Equity Fund 3 21% 0%
GE Total Return Fund 1 7% 0%
GE Short-Term Government Fund 3 57% 34%
GE Tax Exempt Fund 2 25% 0%
GE Fixed Income Fund 1 27% 0%
GE Money Market Fund 5 37% 37%
Investment activities of these shareholders could have a material impact on the
Funds.
*Included in the 5% or Greater Shareholder Percentage.
10. SUBSEQUENT EVENTS
Subsequent events after the balance sheet date through the date that the
financial statements were issued, have been evaluated in the preparation of the
Financial Statement. There were no items to report.
176
[GRAPHIC]
(unaudited)
[GRAPHIC]
Advisory Agreement Approval
The Board of Directors of the GE Funds (the "Board"), including the independent
Board members, considered and all those that were present 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 GE Small-Cap Equity Fund, the Investment Sub-Advisory Agreements with each
of the Fund's sub-advisers, Palisade Capital Management, L.L.C. ("Palisade"),
Champlain Investment Partners, LLC ("Champlain"), GlobeFlex Partners, LP
("GlobeFlex") and SouthernSun Asset Management, Inc. ("SouthernSun"), at
meetings held on December 4 and December 11, 2009.
The Board was not asked to consider for renewal the Investment Sub-Advisory
Agreement with Urdang Securities Management Inc. ("Urdang") with respect to the
GE Total Return Fund, due to the fact that this agreement was approved by the
Board on February 25, 2009 and has an initial term of two years; thus, it did
not require renewal at this time and will be reviewed during next year's
contract renewal process/1/.
In considering all of these approvals, the Board members considered and
discussed a substantial amount of information and analyses provided, at the
Board's request, by GEAM and each of the sub-advisers. The Board also
considered detailed information regarding performance and expenses of other
investment companies, including those with similar investment objectives and
sizes, which was prepared by independent third party providers, Lipper
Analytical Services Inc. ("Lipper") and Morningstar, Inc. ("Morningstar"). The
Board members reviewed the fees charged by GEAM for other mutual funds and
investment products other than mutual funds that employ the same investment
strategy as any of the Funds. The Board had the opportunity to ask questions
and request additional information in connection with its considerations.
Before approving each Fund's advisory and sub-advisory agreements, as
applicable, the Board members reviewed the information provided with management
of GEAM and 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 private sessions
with their independent legal counsel at which no representatives of GEAM or the
sub-advisers were present. The independent Board members and their independent
legal counsel requested, and received and considered, additional information
from GEAM following these sessions.
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 each of the sub-advisers 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 each sub-adviser's business and the
services it provides to the GE Small-Cap Equity Fund. The Board members took
into account their multi-year experience as Board members and particularly
their consideration of these types of agreements in recent years. The
information was presented in a manner to facilitate comparison to prior periods
and to reflect certain enhancements. To focus their review, the Board members
asked GEAM management, in its oral presentations, to highlight material
differences from the information presented in recent years.
During the meetings, the Board members also had an opportunity to discuss this
information with GEAM managers (including senior executives and representatives
from the legal, compliance and finance departments, and investment personnel).
With respect to the GE Small-Cap Equity Fund, the Board members had the
opportunity to hear presentations by representatives
- --------------
/1/Urdang provided updated performance and other relevant information to
supplement the basis of the Board's previous approval of its Investment
Sub-Advisory Agreement. Although no assets had been allocated to Urdang in
respect of the GE Total Return Fund at the time of the December 2009 Board
meetings, a portion of the GE Total Return Fund's assets was allocated to
Urdang in April 2010 to be invested in real estate related investments.
[GRAPHIC] 177
(unaudited)
[GRAPHIC]
Advisory Agreement Approval
of each of the sub-advisers during the past year (GlobeFlex and SouthernSun at
the September 9, 2009 Board meeting, Champlain at the March 11, 2009 Board
meeting and Palisade at the June 10, 2009 Board meeting). The Board members
posed questions to these representatives and engaged in substantive discussions
with them concerning each of their investment processes.
In reaching their determinations relating to the continuance of the Funds'
investment advisory and sub-advisory agreements, as applicable, the Board,
including the independent Board members, considered all factors that it deemed
relevant including the factors discussed below. In their deliberations, the
Board members did not identify any particular information that was
all-important or controlling, and each Board member may have attributed
different weights to the various factors. The Board members evaluated this
information, and all other information available to them, for each Fund 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 the sub-advisers,
in particular taking into account their extensive past experiences with GEAM
and Palisade. In connection with their consideration of GEAM's services, the
Board members focused on the favorable attributes of GEAM, including (i) an
investment philosophy oriented toward long-term performance; (ii) effective
processes used for selecting investments and brokers or, with respect to the GE
Small-Cap Equity Fund, effective processes used for overseeing multiple
sub-advisers; (iii) effective processes used for providing Fund administration,
including controllership and compliance functions and oversight of the
performance of other companies that provide services to the Funds; (iv) highly
skilled professionals including analysts, research professionals, traders and
portfolio managers with a depth of experience involving the types of Funds they
oversee; (v) access to significant technological resources from which the Funds
may benefit; and (vi) 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. The Board members noted that the Funds represent only a
small portion of the assets managed by GEAM, but benefit from a full array of
services and resources provided by GEAM.
In connection with their consideration of the services provided by each of the
sub-advisers, the Board members focused on the favorable attributes of the
sub-advisers relating to their respective investment philosophies and
disciplines, experienced investment and trading personnel, systems and other
resources, including research capabilities, and satisfactory histories and
reputations.
In light of the foregoing, the Board, including the independent Board members,
concluded that the services provided by GEAM and each of the sub-advisers
continue to be satisfactory.
Investment Performance of the Funds and Sub-Advisers
The Board members considered the investment performance of each of the Funds
for various periods. The Board members reviewed detailed comparisons of the
performance of the Funds with the relevant securities indices and peer
groupings of mutual funds prepared by Lipper and Morningstar with respect to
various periods. The Board members also engaged in detailed discussions with
GEAM management and, in connection with the GE Small-Cap Equity Fund,
representatives of each of the sub-advisers at meetings held throughout the
year, about each of their respective investment processes and performance
results. These discussions focused on each Fund's investment objective, the
number and experience of portfolio management and supporting research
personnel, the investment style and approach employed, the likely market cycles
for the investment style and, in some instances, relative underperformance in
certain periods. The Board also considered the GE Small-Cap Equity Fund's
multi-manager structure and how each sub-adviser's approach to small cap
investing fits within the Fund's overall strategy. The Board members discussed
GEAM's investment approach with respect to each of the Funds, and that the
performance of the Funds is consistent with GEAM's articulated long-term
approach and overall investment philosophy.
178
[GRAPHIC]
(unaudited)
[GRAPHIC]
Advisory Agreement Approval
The Board, including the independent Board members, concluded that each Fund's
performance was acceptable overall taking into consideration the factors
discussed above.
Cost of the Services Provided and Profits Realized from the Relationships with
the Funds
The Board members considered the fees paid to GEAM by the Funds, as well as the
fees paid to each of the sub-advisers by GEAM, and the cost of the services
provided to the Funds by GEAM and each of the sub-advisers. The Board members
reviewed the information they had requested from GEAM and each of the
sub-advisers concerning their profitability.
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 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 for each area of its business. The
Board members also reviewed the assumptions and cost allocation methods used by
each of the GE Small-Cap Equity Fund's sub-advisers in preparing their
respective profitability data. .
With respect to the Tax-Exempt Fund, GEAM bore a substantial portion of the
Fund's operating expenses payable during the fiscal year ended September 30,
2009 pursuant to an expense limitation agreement. The term of this agreement
expires January 2010 and GEAM has agreed to extend its term for an additional
one-year period. With respect to the Money Market Fund, in September 2009 GEAM
voluntarily undertook a class-specific expense waiver. This waiver is expected
to continue to the extent necessary to maintain a minimum annualized net yield
of 0.00% for all share classes.
Information was presented regarding the financial condition of GEAM and each of
the sub-advisers for various past periods. The Board members noted and
discussed the additional services provided by GEAM to the Funds compared to
other investment products managed by GEAM, and were provided a study conducted
by the Investment Company Institute that discusses and compares advisory fees
and services for mutual funds and institutional separate accounts. In
connection with the GE Small-Cap Equity Fund, GEAM reviewed the services
related to the allocation of assets among, and oversight of, multiple
sub-advisers as a result of the Fund's multi-manager structure. The Board noted
that GEAM, and not the Fund, pays the sub-advisory fees to the GE Small-Cap
Equity Fund sub-advisers out of its advisory fee. The Board members determined
that GEAM and each of the sub-advisers 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. The Board also considered that, in
the face of overall declining assets and revenues over the course of the past
fiscal year, GEAM continues to make a substantial investment in fulfilling its
obligations to the Fund and supporting its Fund-related activities.
Based on their review, the Board, including the independent Board members,
concluded that they were satisfied that the level of profitability achieved by
GEAM and each of the sub-advisers from their relationship with the Funds was
not unreasonable or excessive.
The Extent to Which Economies of Scale Would be Realized as each Fund Grows and
Whether Fee Levels Would Reflect Such Economies of Scale
Although the Board noted that most of the Funds did not experience significant
growth in assets over the past year, 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. 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 the Funds of GEAM's past investment in its
operations through the expenditure of significant sums to support its
substantial infrastructure, generally lower Fund fees and subsidies of Fund
operating expenses and that, with respect to all GEAM managed mutual funds,
GEAM has not yet fully recouped
[GRAPHIC] 179
(unaudited)
[GRAPHIC]
Advisory Agreement Approval
that investment. The Board members also recognized the benefits to the Funds of
being able to leverage a favorable cost structure achieved with respect to the
Funds' other operating expenses as a result of GEAM's large overall base of
assets under management and its vendor management practices.
Comparison of Services to be Rendered and Fees to be Paid
The Board members discussed the services to be provided to the Funds by GEAM
and the fees charged to the Funds for those services. The Board members
reviewed information regarding the fee and expense ratio for each Fund and
comparative information with respect to similar products. They discussed that
most of the Funds' figures were generally within applicable peer group ranges
and, therefore, the Funds are generally charged a competitive rate in
comparison to their peers. The Board also considered GEAM's comparatively lower
historical fee structure overall relative to advisers of other comparable
industry peer group funds and noted that GEAM has generally foregone a higher
rate of management fee for most of the Funds since the inception of its
relationship with the Funds.
In connection with the GE Small-Cap Equity Fund, the Board members reviewed the
services provided to the Fund by each of the sub-advisers and the fees charged
to GEAM for those services. They reviewed comparative fee information with
respect to any comparable mutual fund or other client accounts managed by each
of the sub-advisers.
The Board, including the independent Board members, concluded that, based on
this information, each Fund's advisory fee and, in connection with the GE
Small-Cap Equity Fund, the sub-advisory fees paid to each of the sub-advisers,
were reasonable in relation to the services provided to the Fund.
Fall-Out Benefits
The Board members considered actual and potential financial benefits that GEAM
and each of the sub-advisers may derive from their respective relationships
with the Funds, including where applicable soft dollar commission benefits
generated through Fund portfolio transactions. The Board noted, however, that
each Fund benefits from the vast array of resources 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's decision. Based on their
discussion and such other matters as were deemed relevant, the Board, including
the independent Board members, concluded that renewal of each Fund's advisory
agreement and, to the extent applicable, each subadvisory agreement was in the
best interests of the Fund and its shareholders.
180
[GRAPHIC]
(unaudited)
[GRAPHIC]
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 60
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 -- 15 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS President and Chief Executive
Officer -- Mutual Funds & Intermediary Business at GEAM since March 2007;
Executive Vice President of GEAM from February 1997 to 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 49
OTHER DIRECTORSHIPS HELD BY TRUSTEE Chairman of the Board and President of GE
Institutional Funds and GE Investments Funds, Inc. since 1997; Trustee of Elfun
Funds, GE Savings & Security Funds, General Relief and Loan Fund, and General
Electric Pension Trust since 1988; Trustee of Fordham University since 2003;
Trustee, GE volunteers since 1993, Director, GE Asset Management (Ireland)
Limited, since February 1999; Director, GE Asset Management Funds Plc since
1998, GE Asset Management Canada Company since 1998, GE Asset Management
Limited since 1998.
- --------------------------------------------------------------------------------
MATTHEW J. SIMPSON
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 49
POSITION(S) HELD WITH FUND Trustee and Executive Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- two years
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.
[GRAPHIC] 181
(unaudited)
[GRAPHIC]
Additional Information
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 49
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee and Executive Vice President of GE
Institutional Funds, Elfun Funds, GE Savings & Security Funds and General
Electric Pension Trust since July 2007. Director of GE Investment Funds, Inc.
since July 2007.
- --------------------------------------------------------------------------------
JEANNE M. LA PORTA
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 44
POSITION(S) HELD WITH FUND Vice President and Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- five years; Secretary -- three years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Commercial Administrative Officer
of GEAM since April 2010; Senior Vice President and Deputy General Counsel at
GE Asset Management from October 2007 to April 2010; 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 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
- --------------------------------------------------------------------------------
ROBERT HERLIHY
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 42
POSITION(S) HELD WITH FUND Senior Vice President and Chief Compliance Officer
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- four years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Chief Compliance Officer of GEAM,
GE Funds, GE Institutional Funds, Elfun Funds, and GE Savings and Security
Funds since July 2005; Manager of Fund Administration at GEAM from 2002-2005.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD BY TRUSTEE N/A
- --------------------------------------------------------------------------------
EUNICE TSANG
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 50
POSITION(S) HELD WITH FUND Treasurer
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- less than one year
PRINCIPAL OCCUPATIONS(S) DURING PAST 5 YEARS Treasurer of GE Funds, GE
Institutional Funds, Elfun Funds and GE Savings and Security Funds since
January 2010; GEAM Operational Controllership and Technical Accounting Manager
since December 2007; Financial Planning & Analysis Manager -- Performance
Leader from June 2005 to December 2007; GEAM Quality Black Belt from 2001 to
June 2005; Financial Planning & Analysis Manager from 2000 to 2001; and Mutual
Fund Assistant Controller from October 1997 to 2000.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD BY TRUSTEE N/A
182
[GRAPHIC]
(unaudited)
[GRAPHIC]
Additional Information
NON-INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
JOHN R. COSTANTINO
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 63
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- 15 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS General Partner, NGN Capital since
2006; Managing Director, Vice President of Walden Capital Management since 1996.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 41
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee of GE Institutional Funds since
1997; Director of GE Investments Funds, Inc. since 1997; Trustee of Fordham
University from 1989-1995 and 2001-2007 and Trustee emeritus since
2007; Trustee of Neuroscience Research Institute since 1986; Trustee of
Gregorian University Foundation from 1992-2007; Director of Artes Medical from
2006-2008.
- --------------------------------------------------------------------------------
WILLIAM J. LUCAS
- --------------------------------------------------------------------------------
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 -- 15 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Vice President and Treasurer of
Fairfield University since 1983.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 41
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee of GE Institutional Funds since
1997; Director of GE Investments Funds, Inc. since 1997.
- --------------------------------------------------------------------------------
ROBERT P. QUINN
- --------------------------------------------------------------------------------
ADDRESS c/o GEAM 3001 Summer St. Stamford, CT 06905
AGE 74
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Until successor is elected and
qualified -- 15 years
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS Retired since 1983 from Salomon
Brothers Inc.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE 41
OTHER DIRECTORSHIPS HELD BY TRUSTEE Trustee of GE Institutional 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.
[GRAPHIC] 183
(unaudited)
[GRAPHIC]
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.
ADAM W. ACKERMANN is an assistant portfolio manager at GE Asset Management. He
has served on the portfolio management team for the GE MONEY MARKET FUND since
June 2009. His responsibilities include cash management, including daily money
market trade execution, and technical projects. Mr. Ackermann joined GE Asset
Management in 2005 through the summer internship program working with the U.S.
equity mid-cap portfolio management team. Adam then joined the fixed income
team as an analyst, and in 2007 became manager of the global fixed income
trading operations until June 2009.
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 the Chief Investment Officer -- U.S. Equities at GE Asset
Management. He co-manages the overall U.S. equity investments for GE Asset
Management. Mr. Carlson is the 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 the President and Chief Investment Officer -- Fixed Income
and a Director 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
TOTAL RETURN FUND. He has served on the portfolio management team for the GE
GOVERNMENT SECURITIES FUND since February 2000. Mr. Colonna became President --
Fixed Income in March 2007. Prior to joining GE Asset Management in February
2000. 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. Equities group
from 1995 through 2001 and became an associate portfolio manager for the GE
CORE 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. 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 Senior 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
184
[GRAPHIC]
(unaudited)
[GRAPHIC]
Investment Team
PORTFOLIO MANAGER BIOGRAPHIES (continued)
fixed income specialist and has been an international equity analyst and an
International Small-Cap portfolio manager since 1998.
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 the President and Chief Investment Officer -- Public
Equities and a Director at GE Asset Management. He co-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 TOTAL RETURN 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
TOTAL RETURN FUND since May 2007. Mr. Lincoln joined GE Asset Management in
1994 as a financial analyst in U.S. equities. Mr. Lincoln became part of the
investment management team for U.S. equities at GE Asset Management in 1997 and
a portfolio manager for U.S. equities in 2003.
MICHAEL E. MARTINI is a Vice President of 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.
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 Senior 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 Vice President of GE Asset Management. Since March 2006,
he has managed the mortgage-backed securities sector for the GE SHORT-TERM
GOVERNMENT 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 Senior Vice President of GE Asset Management. She has
served on the portfolio 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
[GRAPHIC] 185
(unaudited)
[GRAPHIC]
Investment Team
PORTFOLIO MANAGER BIOGRAPHIES (continued)
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 Vice President and senior quant analyst at GE Asset
Management. He has served on the portfolio management team for GE GOVERNMENT
SECURITIES FUND since September 2007. Mr. Sinha joined GE Asset Management in
1997 and became a fixed income analyst in 1998. He became Vice President
- --Derivative Strategies in 2002, senior quant analyst in 2003 and a portfolio
manager in 2005.
MICHAEL J. SOLECKI is the Chief Investment Officer --International Equities at
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 the Chief Market Strategist and a Director at GE Asset
Management. She has led the team of portfolio managers for the GE TOTAL RETURN
FUND since July 2004, and the GE SMALL-CAP EQUITY FUND since October 2009.
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.
DIANE M. WEHNER is a Senior Vice President of GE Asset Management. She has been
a portfolio manager of the GE TOTAL RETURN 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.
SUB-ADVISERS TO GE SMALL-CAP EQUITY FUND
JACK FEILER is a portfolio manager and President and Chief Investment Officer
at Palisade Capital Management, L.L.C. (Palisade). Mr. Feiler has over 40 years
of investment experience and has served as the Chief Investment Officer 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 senior portfolio manager at Palisade. 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, where he
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.
DENNISON T. ("DAN") VERU is a managing member and Co-Investment Officer at
Palisade. 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 Financial Mr. Veru has
been a frequent guest on CNBC, CNN, Fox and Bloomberg television. Prior to
Awad, Mr. Veru worked with the Palisade team from 1986 through 1992. Mr. Veru
graduated from Franklin Marshall College.
SCOTT T. BRAYMAN, CFA, is a portfolio manager at Champlain Investment partners,
LLC ("Champlain"). Mr. Brayman is the Managing Partner and Chief Investment
Officer at Champlain and has more than 24 years of investment management
experience. Mr. Brayman leads the investment team for both the small and
mid-cap strategies at Champlain. Prior to joining Champlain in 2004,
Mr. Brayman was a Senior Vice President and served as a portfolio manager at NL
Capital Management, Inc. from 2003 to 2004, and served as a portfolio manager
with Sentinel Advisers, Inc. from 1996 to 2004, where he was responsible for
managing the small-cap and core mid-cap strategies. Mr. Brayman began his
career as a credit analyst with the First National Bank of Maryland.
186
[GRAPHIC]
(unaudited)
[GRAPHIC]
Investment Team
PORTFOLIO MANAGER BIOGRAPHIES (continued)
ROBERT J. ANSLOW, JR., is a portfolio manager at GlobeFlex Capital, LP
("GlobeFlex"). Mr. Anslow is the Managing Partner and Chief Investment Officer
responsible for all portfolio management and research activities at GlobeFlex
and has more than 29 years of investment management experience. Prior to
co-founding GlobeFlex in 1994, Mr. Anslow was a Director of the Systematic and
Global Portfolio Management/ Research Group at Nichlolas-Applegate Capital
Management ("Nicholas-Applegate") from 1986 to 1994, where he built the first
systematic process for international investing. Prior to Nicholas-Applegate,
Mr. Anslow was responsible for systematic portfolio management and research
processes at two major investment institutions: the California Public
Employee's Retirement System (CalPERS) and BayBanks Investment Management of
Boston.
MICHAEL W. COOK, CFA, is a portfolio manager at SouthernSun Asset Management,
Inc. ("SouthernSun"). Mr. Cook, who has more than 20 years of investment
management experience, is the Chief Executive Officer and Chief Investment
Officer at SouthernSun and is responsible for all portfolio management
activities for the firm. Prior to founding SouthernSun in 1989, Mr. Cook was a
portfolio manager/analyst at Street Capital Management from 1986 to 1988, and
was an account executive at Merrill Lynch from 1985 to 1986.
SUB-ADVISER TO GE TOTAL RETURN FUND
DEAN FRANKEL is a senior portfolio manager, North America Real Estate
Securities, at Urdang Securities Management, Inc. ("Urdang"). Mr. Frankel
joined Urdang in 1997 and has over 11 years of real estate securities
investment experience. Mr. Frankel is responsible for management of Urdang's
proprietary research process including the firm's Relative Value Model. In
addition, Mr. Frankel analyzes and interprets implications of major events and
economic trends while managing the daily operations of the North American Real
Estate Securities investment team.
ERIC ROTHMAN is a portfolio manager at Urdang, where he helps direct Urdang's
U.S. Real Estate Securities strategy. As portfolio manager, Mr. Rothman is
responsible for will support market research, sector allocations, and real
estate securities analysis. Additionally he has primary coverage responsibility
for the lodging, self-storage and retail sectors. Mr. Rothman joined Urdang in
2006 and has over 14 years of real estate securities and real estate investment
experience, including being a sell-side REIT analyst at Wachovia Securities
from 2001 to 2006 and an analyst at AEW Capital Management, LP from 1997 to
2000.
[GRAPHIC] 187
(unaudited)
[GRAPHIC]
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
Eunice Tsang
ASSISTANT TREASURER
Scott R. Fuchs
OFFICERS OF THE INVESTMENT ADVISER
James W. Ireland III, President & Chief Executive Officer
Daniel O. Colao, EVP, Chief Financial Officer
Paul M. Colonna, President & Chief Investment Officer --Fixed Income
Michael J. Cosgrove, President and Chief Executive Officer -- Mutual Funds &
Intermediary Business
Robert Herlihy, Senior Vice President and Chief Compliance Officer
Ralph R. Layman, President & Chief Investment Officer -- Public Equities
Maureen B. Mitchell, President -- Institutional Sales and Marketing
Matthew J. Simpson, EVP, General Counsel and Secretary
Judith M. Studer, Chief Market Strategist
Donald W. Torey, President -- Alternative Investments
John J. Walker, EVP, Chief Operating Officer
David Wiederecht, President -- Investment Strategies
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
PNC Global Investment Servicing
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.
188
[GRAPHIC]
(unaudited)
[GRAPHIC]
GE Fund's Brightest Stars
AVERAGE ANNUAL TOTAL RETURN**
---------------------------------------
INCEPTION ONE THREE FIVE TEN SINCE MORNINGSTAR(TM)***
AS OF 3/31/10 DATE* YEAR YEARS YEARS YEARS INCEPTION OVERALL RATING
- ----------------------------------------------------------------------------------------------------------
DOMESTIC EQUITY FUNDS
- ----------------------------------------------------------------------------------------------------------
GE U.S. Equity Fund Class Y 11/29/93 48.87% (1.32)% 3.19% 0.99% 8.27% ****
- ----------------------------------------------------------------------------------------------------------
GE Core Value Equity Fund Class A 9/8/93 46.08% (1.68)% 3.25% 1.46% 8.11% ****
- ----------------------------------------------------------------------------------------------------------
GE Core Value Equity Fund Class B 9/8/93 45.10% 2.42% 2.48% 0.84% 7.77% ****
- ----------------------------------------------------------------------------------------------------------
GE Core Value Equity Fund Class C 9/30/99 44.99% (2.39)% 2.48% 0.69% 1.81% ****
- ----------------------------------------------------------------------------------------------------------
GE Core Value Equity Fund Class R 1/29/08 45.57% -- -- -- (3.00)% ****
- ----------------------------------------------------------------------------------------------------------
GE Core Value Equity Fund Class Y 1/5/98 46.39% (1.34)% 3.77% 1.80% 4.91% ****
- ----------------------------------------------------------------------------------------------------------
GE Premier Growth Equity Fund Class R 1/29/08 49.90% -- -- -- (0.13)% ****
- ----------------------------------------------------------------------------------------------------------
GE Premier Growth Equity Fund Class Y 12/31/96 50.58% (0.11)% 2.77% (0.17)% 6.79% ****
- ----------------------------------------------------------------------------------------------------------
FIXED INCOME FUNDS
- ----------------------------------------------------------------------------------------------------------
GE Tax Exempt Fund Class Y 9/26/97 7.00% 4.24% 3.83% 5.21% 4.75% ****
- ----------------------------------------------------------------------------------------------------------
*Commencement of operations
**These returns do not reflect the impact of any loads or redemption fees,
which are reflected in the Manager Reviews.
***The GE U.S. Equity Fund Class Y was rated among 1,536, 1,265 and 715 Large
Growth Funds for the three, five and ten-year periods, respectively.
The GE Core Value Equity Fund Class A was rated among 1,764, 1,387 and 724
Large Blend Funds for the three, five and ten-year periods, respectively.
The GE Core Value Equity Fund Class B was rated among 1,764, 1,387 and 724
Large Blend Funds for the three, five and ten-year periods, respectively.
The GE Core Value Equity Fund Class C was rated among 1,764, 1,387 and 724
Large Blend Funds for the three, five and ten-year periods, respectively.
The GE Core Value Equity Fund Class R was rated among 1,764, 1,387 and 724
Large Blend Funds for the three, five and ten-year periods, respectively.
The GE Core Value Equity Fund Class Y was rated among 1,764, 1,387 and 724
Large Blend Funds for the three, five and ten-year periods, respectively.
The GE Premier Growth Equity Fund Class R was rated among 1,536, 1,265 and
715 Large Growth Funds for the three, five and ten-year periods,
respectively.
The GE Premier Growth Equity Fund Class Y was rated among 1,536, 1,265 and
715 Large Growth Funds for the three, five and ten-year periods,
respectively.
The GE Tax-Exempt Fund Class Y was rated among 209, 188 and 121 Muni
National Interm Funds for the three, five and ten-year periods,
respectively.
Past performance is no guarantee of future results. (C)2010 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.
(unaudited)
[GRAPHIC]
GE Fund's Brightest Stars
The GE U.S. Equity 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.
The GE Core Value Equity Fund Class A 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 B received four stars for the three year
period, four stars for the five year period and three stars for the ten year
period.
The GE Core Value Equity Fund Class C received four stars for the three year
period, four stars for the five year period and three stars for the ten year
period.
The GE Core Value Equity Fund Class R received four stars for the three year
period, four stars for the five year period and three 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 R 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 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 Tax Exempt 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.
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 Overall Morning Rating(TM) 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.geam.com
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Presort Standard
U.S. Postage
PAID
Lancaster, PA
Permit No. 1793
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SHAREHOLDER INQUIRIES
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Please contact your financial advisor, or if you receive account
statements directly from GE Funds, call (800) 242-0134. Telephone Y SHARE CLASS INVESTORS:
representatives are available from 8:30 am to 8:00 pm. Contact your designated
Correspondence can be mailed to: GE Asset Management
account representative.
GE MUTUAL FUNDS
P.O. BOX 9838 401(K) PLAN INVESTORS:
PROVIDENCE, RI 02940 Call your company's
designated plan number.
Also, visit us on the web at geam.com.
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 Fund's 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 Fund's website at http://www.geam.com;
and (iii) on the Commission's website at http://www.sec.gov. The Fund's Forms
N-Q may be reviewed and copied at the Commission's Public Reference Room in
Washington, DC - information on the operation of the Public Reference Room may
be obtained by calling 1-800-SEC-0330.
[LOGO] GEF-2 (3/10) 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 Eunice Tsang as principal executive officer and
principal financial officer, respectively, as required by Rule 30a-2 under
the Act (17 CFR 270.30a-2(a)).
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 09, 2010
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 09, 2010
By: /S/EUNICE TSANG
Eunice Tsang
TREASURER, GE FUNDS
Date: June 09, 2010
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.