485APOS 1 d485apos.htm 485APOS 485APOS
Table of Contents

As filed with the Securities and Exchange Commission on May 28, 2008

Securities Act File No. 33-51308

Investment Company Act File No. 811-7142

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM N-1A

REGISTRATION STATEMENT

UNDER

  THE SECURITIES ACT OF 1933   x
  Pre-Effective Amendment No.   ¨
  Post-Effective Amendment No. 47   x

and/or

REGISTRATION STATEMENT

UNDER

  THE INVESTMENT COMPANY ACT OF 1940   x
  Amendment No. 49   x
  (Check appropriate box or boxes)  

 

 

GE FUNDS

(Exact Name of Registrant as Specified in Charter)

3001 Summer Street

Stamford, Connecticut 06905

(Address of Principal Executive Office) (Zip Code)

Registrant’s Telephone Number, including Area Code: (203) 326-4040

Jeanne M. La Porta, Esq.

Senior Vice President, Deputy General Counsel

GE Asset Management Incorporated

3001 Summer Street

Stamford, Connecticut 06905

(Name and Address of Agent for Service)

Copies to:

David Hearth, Esq.

Paul, Hastings, Janofsky & Walker LLP

55 Second Street, 24th Floor

San Francisco, California 94105

 

 

Approximate Date of Proposed Public Offering: As soon as practicable after the effective date of this Registration Statement.

It is proposed that this filing will become effective (check appropriate box):

  ¨ immediately upon filing pursuant to paragraph (b) of Rule 485
  ¨ on (date) pursuant to paragraph (b) of Rule 485
  ¨ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
  ¨ on (date) pursuant to paragraph (a)(1) of Rule 485
  x 75 days after filing pursuant to paragraph (a)(2) of Rule 485
  ¨ on (date) pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:

  ¨ This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

GE International Fixed Income Fund and GE Small-Cap Growth Equity Fund, series of Registrant (the shares of) which are not currently being offered to the public, remain registered and unaffected by this post-effective amendment.

 

 

 


Table of Contents

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED MAY 27, 2008

(with respect to GE Emerging Markets Equity Fund and GE High Yield Fund only)

GE Funds

Prospectus

August     , 2008

 

 

Equity Funds

GE U.S. Equity Fund

GE Core Value Equity Fund (formerly GE Value Equity Fund)

GE Small-Cap Equity Fund

GE Global Equity Fund

GE International Equity Fund

GE Emerging Markets Equity Fund

GE Premier Growth Equity Fund

 

 

Income Funds

GE Fixed Income Fund

GE Government Securities Fund

GE Short-Term Government Fund

GE Tax-Exempt Fund

GE High Yield Fund

 

 

Asset Allocation Funds

GE Strategic Investment Fund

 

 

Money Market Funds

GE Money Market Fund

 

 

Like all mutual funds, the GE Funds’ shares have not been approved or disapproved by the Securities and Exchange Commission, nor has the Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

 

LOGO


Table of Contents

 

Contents

 

GE Funds

Prospectus

 

Equity Funds

  3

GE U.S. Equity Fund

  4

GE Core Value Equity Fund

  6

GE Small-Cap Equity Fund

  8

GE Global Equity Fund

  10

GE International Equity Fund

  12

GE Emerging Markets Equity Fund

  14

GE Premier Growth Equity Fund

  16

Income Funds

  19

GE Fixed Income Fund

  20

GE Government Securities Fund

  22

GE Short-Term Government Fund

  24

GE Tax-Exempt Fund

  26

GE High Yield Fund

  28

Asset Allocation Funds

  29

GE Strategic Investment Fund

  30

Money Market Funds

  33

GE Money Market Fund

  34

Fund Expenses

  36

More on Strategies, Risks and Disclosure of Portfolio Holdings

  44

Important Definitions

  44

More on Investment Strategies

  50

More on Risks

  56

Disclosure of Portfolio Holdings

  60

About the Investment Adviser

  61

Investment Adviser and Administrator

  61

Board of Trustee’s Approval of Investment Advisory Agreements

  62

About the Funds’ Portfolio Managers

  63

About the Sub-Adviser

  68

Prior Performance Information

  71

How to Invest

  73

How to Buy Shares

  73

Choosing a Share Class

  76

How to Redeem Shares

  84

How to Exchange Shares

  86

When We Receive Your Transaction Order

  86

Distribution and Shareholder Service Fees

  87

Networking and Sub-Transfer Agency Fees

  87

Other Compensation Arrangements

  87

Disruptive Trading Policy

  88

More on Redemption Fees

  90

Dividends, Capital Gains and Other Tax Information

  91

Taxes

  92

Distributions from GE Tax Exempt Fund

  92

Taxes on Transactions

  92

Tax Statement

  92

Backup Withholding

  92

Calculating Share Value

  93

Financial Highlights

  95

 

Additional information regarding the GE Funds (each a “Fund” and collectively the “Funds”) is contained in the Statement of Additional Information (SAI) dated August     , 2008, which is incorporated by reference into (legally forms a part of) this Prospectus.


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2

 

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3

 

Equity Funds     

GE Funds

Prospectus

 

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

Who may want to invest in a GE Equity Fund?

 

GE Equity Funds may be appropriate for your investment portfolio if you:

n have a long-term investment goal

n are willing to accept higher short-term risk for potential long-term returns

n want to diversify a portfolio composed mostly of other types of investments

 

GE Equity Funds may not be appropriate if you want:

n to avoid potentially significant changes in the value of your investment

n a short-term investment

n regular income

 

Equity funds generally invest in equity securities. Equity securities may include common stocks, preferred securities, depositary receipts, convertible securities, rights and warrants of U.S. and foreign companies. Stocks represent an ownership interest in a corporation. Equity funds have more potential for capital growth than other funds, but they have greater risk.

 

For a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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4

 

GE Funds

Prospectus

Equity Funds

 

GE U.S. Equity Fund

 

 

Investment Objective: Long term growth of capital

 

The Strategy

 

GE U.S. Equity Fund invests at least 80% of its net assets in equity securities of issuers that are tied economically to the U.S. under normal circumstances. The portfolio managers use a Multi-Style® investment strategy that combines growth and value investment management styles. As a result, the portfolio has characteristics similar to the Standard & Poor’s 500 IndexSM (S&P 500® Index), including average market capitalization and dividend yield potential. Stock selection is key to the performance of the Fund.

 

Through fundamental company research, the portfolio managers seek to identify securities of large companies with characteristics such as:

n attractive valuations

n financial strength

n high quality management focused on generating shareholder value

 

The Fund also may invest to a lesser extent in foreign securities and debt securities. The portfolio managers may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk and style risk (growth investing risk and value investing risk). To the extent that the portfolio managers invest in foreign securities or debt securities, the Fund would be subject to foreign exposure risk, bond market risk, interest rate risk and credit risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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5

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 19.82% for the quarter ended December 31, 1998. The lowest return before taxes for a quarter was -16.18% for the quarter ended September 30, 2002. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the S&P 500® Index. The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

 

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE U.S. Equity Fund                            

Class A Shares1

                           

Return Before Taxes

  1.69%       9.88%       5.58%       10.03%

Return After Taxes on Distributions3

  0.02%       8.90%       4.45%       8.62%

Return After Taxes on Distributions and Sale of Fund Shares3

  3.24%       8.53%       4.53%       8.39%

Return Before Taxes

                           

Class B

  3.27%       10.37%       5.74%       9.96%

Class C

  6.14%       10.42%       —           3.31%

Class Y

  8.16%       11.49%       6.48%       10.56%

S&P 500® Index4

  5.50%       12.84%       5.91%       10.46%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management Incorporated (GE Asset Management) may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A – 2/22/93; Class B – 12/22/93; Class C – 9/30/99; Class Y – 11/29/93.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the S&P 500® Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the S&P 500® Index are calculated from the month end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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6

 

GE Funds

Prospectus

Equity Funds

 

GE Core Value Equity Fund

 

 

Investment Objective: Long-term growth of capital and future income

The Strategy

 

GE Core Value Equity Fund (formerly GE Value Equity Fund) invests at least 80% of its net assets in equity securities under normal circumstances. The Fund invests primarily in U.S. companies that the portfolio manager believes are undervalued by the market but have solid growth prospects. The portfolio manager employs a relative value approach to identify companies across all economic sectors which are undervalued relative to the market, their peers, their historical valuation or their growth rate. This approach results in a portfolio more broadly diversified across economic sectors and contrasts with other value investing approaches that focus on low absolute valuations and often result in a portfolio concentrated in fewer sectors. A company may be undervalued for reasons such as market overreaction to recent company, industry or economic events. Stock selection is key to the performance of the Fund.

 

The portfolio manager seeks to identify securities of companies with characteristics such as:

n low valuations in relation to their peers and the overall market

n the potential for long-term earnings growth

n above-average dividend yields

n strong management

n financial strength

n attractive upside potential and limited downside risk

 

n a catalyst such as changing industry fundamentals, introduction of a new product, a company restructuring, or a change in management.

 

The Fund also may invest to a lesser extent in foreign securities and debt securities. The portfolio manager may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk and style risk (value investing risk). To the extent that the portfolio manager invests in foreign securities or debt securities, the Fund would be subject to foreign exposure risk, bond market risk, interest rate risk and credit risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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7

 

 

Fund Performance

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 19.92% for the quarter ended December 31, 1998. The lowest return before taxes for a quarter was -16.60% for the quarter ended September 30, 2002. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the S&P 500® Index. The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

 

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE Core Value Equity Fund                            

Class A Shares1

                           

Return Before Taxes

  3.31%       11.13%       6.43%       10.03%

Return After Taxes on Distributions3

  0.52%       9.81%       5.36%       8.20%

Return After Taxes on Distributions and Sale of Fund Shares3

  5.77%       9.60%       5.37%       8.09%

Return Before Taxes

                           

Class B

  5.28%       11.60%       6.45%       10.08%

Class C

  7.95%       11.63%       —           4.23%

Class Y

  10.37%       12.92%       —           7.44%

S&P 500® Index4

  5.50%       12.84%       5.91%       10.39%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns reflect the impact of Distribution and Service Fees imposed at the rate of 0.50% of average daily net assets for periods prior to September 17, 1999. Effective September 17, 1999, Distribution and Service Fees were reduced to 0.25% of average daily net assets.

 

2 Inception date: Class A and B – 9/8/93; Class C – 9/30/99; Class Y – 1/5/98.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the S&P 500® Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the S&P 500® Index are calculated from the month end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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8

 

GE Funds

Prospectus

Equity Funds

 

GE Small-Cap Equity Fund

 

 

Investment Objective:

Long-term growth of capital

The Strategy

 

GE Small-Cap Equity Fund invests at least 80% of its net assets in equity securities of small-cap companies under normal circumstances. The Fund uses a multi-subadviser investment strategy that combines both growth and value investment management styles. As a result, this orientation will typically produce a portfolio that favors neither value nor growth style investing, and allows the Fund to benefit from both value and growth cycles in the marketplace. The Fund invests primarily in small-cap companies that the portfolio managers believe are either undervalued by the market or have solid growth prospects. The Fund defines a small-cap company as one with a market capitalization within the capitalization range of the Russell 2000® Index (Russell 2000 Index)*. As of December 31, 2007 the market capitalization of companies in the Russell 2000 Index ranged from $27 million to $8.4 billion**. The portfolio managers will not sell a stock merely because the market capitalization of a company in the portfolio moves outside of the capitalization range of the Russell 2000 Index. Stock selection is key to the performance of the Fund.

 

The portfolio managers seek to identify securities of companies with characteristics such as:

n high quality management

n attractive products or services

n appropriate capital structure

n strong competitive positions in their industries

n management focused on generating shareholder value

n attractive valuation

n strong growth potential

 

The Fund also may invest to a lesser extent in securities with capitalizations outside the Fund’s small-cap range, debt securities and foreign securities. The portfolio managers may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk and style risk (small-cap company risk, growth investing risk and value investing risk. To the extent that the portfolio managers invest in foreign securities, debt securities or initial public offerings of equity securities, the Fund would be subject to foreign exposure risk, bond market risk, interest rate risk, credit risk and initial public offerings risk.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 

* Russell Investment Group owns the Russell Index data, including all applicable trademarks and copyrights, used by GE Asset Management 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 GE Asset Management’s presentation thereof.

 

** The Russell 2000 Index is constructed to provide a comprehensive and unbiased small-cap barometer and is reconstituted annually by the Russell Investment Group to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. The capitalization range of the Russell 2000 Index, however, may change significantly intra-year due to changes in the market capitalization of securities held in the Russell 2000 Index.

 


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9

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 22.64% for the quarter ended June 30, 1999. The lowest return before taxes for a quarter was -15.27% for the quarter ended September 30, 2002. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the Russell 2000 Index. The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       Since
Inception2
GE Small-Cap Equity Fund                    

Class A Shares1

                   

Return Before Taxes

  -3.94%       11.10%       11.47%

Return After Taxes on Distributions3

  -6.97%       9.05%       8.99%

Return After Taxes on Distributions and Sale of Fund Shares3

  0.89%       9.17%       8.93%

Return Before Taxes

                   

Class B

  -2.00%       11.58%       11.64%

Class C

  0.33%       11.56%       10.19%

Class Y

  2.13%       12.70%       12.46%

Russell 2000 Index4

  -1.59%       16.24%       9.78%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A, B and Y – 9/30/98; Class C – 9/30/99.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the Russell 2000 Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the Russell 2000 Index are calculated from the month-end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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10

 

GE Funds

Prospectus

Equity Funds

 

GE Global

Equity Fund

 

 

 

Investment

Objective:

Long-term

growth of

capital

 

The Strategy

 

GE Global Equity Fund invests at least 80% of its net assets in equity securities under normal circumstances. The Fund invests in companies in developed and developing countries, including the United States. The portfolio managers focus on companies that they expect will grow faster than relevant markets and whose security prices do not fully reflect their potential for growth. Under normal circumstances, the Fund’s assets are invested primarily in countries included in the Morgan Stanley Capital InternationalSM (MSCI®) World Index (MSCIW Index) and in no fewer than three different countries. Stock selection is key to the performance of the Fund.

 

The portfolio managers seek to identify securities of growth companies with characteristics such as:

n low prices relative to their long-term cash earnings potential

n potential for significant improvement in the company’s business

n financial strength

n sufficient liquidity

 

The Fund also may invest to a lesser extent in debt securities. The portfolio managers may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk, foreign exposure risk, style risk (growth investing risk and mid-cap company risk), and emerging markets risk. To the extent that the portfolio managers invest in debt securities, the Fund would be subject to bond market risk, interest rate risk and credit risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


Table of Contents

 

 

11

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 21.91% for the quarter ended December 31, 1998. The lowest return before taxes for a quarter was -18.81% for the quarter ended September 30, 1998. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the MSCIW Index. The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE Global Equity Fund                            

Class A Shares1

                           

Return Before Taxes

  12.72%       16.80%       7.48%       8.93%

Return After Taxes on Distributions3

  10.79%       16.34%       6.59%       7.87%

Return After Taxes on Distributions and Sale of Fund Shares3

  10.73%       14.80%       6.25%       7.50%

Return Before Taxes

                           

Class B

  14.73%       17.34%       7.63%       8.02%

Class C

  17.72%       17.50%       —           5.71%

Class Y

  19.91%       18.51%       8.38%       9.02%

MSCIW Index4

  9.04%       16.96%       6.99%       9.63%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A – 2/22/93; Class B – 12/22/93; Class C – 9/30/99; Class Y – 11/29/93.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the MSCIW Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the MSCIW Index are calculated from the month end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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12

 

GE Funds

Prospectus

Equity Funds

 

GE International Equity Fund

 

 

Investment Objective: Long-term growth of capital

 

The Strategy

 

GE International Equity Fund invests at least 80% of its net assets in equity securities under normal circumstances. The Fund invests primarily in companies in developed and developing countries outside the United States. The portfolio managers focus on companies that they expect will grow faster than relevant markets and whose security prices do not fully reflect their potential for growth. Under normal circumstances, the Fund’s assets are invested in foreign securities of companies representing at least three different countries. Stock selection is key to the performance of the Fund.

 

The portfolio managers seek to identify securities of growth companies with characteristics such as:

n low valuation relative to their long-term cash earnings growth potential

n potential for significant improvement in the company’s business

n financial strength

n sufficient liquidity

 

The Fund also may invest to a lesser extent in debt securities and may invest in securities of companies located in the United States. The portfolio managers may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk, foreign exposure risk, style risk (mid-cap company risk and growth investing risk), and emerging markets risk. To the extent that the portfolio managers invest in debt securities, the Fund would be subject to bond market risk, interest rate risk and credit risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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13

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 21.52% for the quarter ended December 31, 1999. The lowest return before taxes for a quarter was -22.81% for the quarter ended September 30, 2002. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the Morgan Stanley Capital InternationalSM Europe, Australasia and Far East (MSCI® EAFE®) Index (MSCI EAFE Index). The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE International Equity Fund                            

Class A Shares1

                           

Return Before Taxes

  15.76%       20.57%       6.93%       7.06%

Return After Taxes on Distributions3

  14.01%       20.24%       5.85%       6.16%

Return After Taxes on Distributions and Sale of Fund Shares3

  12.81%       18.39%       5.59%       5.85%

Return Before Taxes

                           

Class B

  17.99%       21.02%       7.05%       7.18%

Class C

  21.03%       21.18%       —           5.80%

Class Y

  23.19%       22.29%       7.84%       7.82%

MSCI EAFE Index4

  11.18%       21.59%       8.64%       7.55%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A, B and Y – 3/2/94; Class C – 9/30/99.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the MSCI EAFE Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the MSCI EAFE Index are calculated from the month end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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14

 

GE Funds

Prospectus

Equity Funds

 

Emerging Markets Equity Fund

 

 

Investment Objective: Long-term growth of capital.

The Strategy

 

The Emerging Markets Equity Fund invests at least 80% of its net assets in equity securities of issuers that are located in emerging market countries under normal circumstances. The portfolio managers focus on companies whose security valuation they believe do not fully reflect the long-term growth potential of the company. Under normal circumstances, the Fund’s assets are invested in foreign securities of companies representing at least three different countries.

 

The portfolio managers consider the following factors in determining whether an issuer is located in an emerging market country: country of organization, primary securities trading market, location of assets, or country where the issuer derives at least half of its revenues or profits.

 

An emerging market country is any country having an economy and market that are (or would be) considered by the World Bank to be emerging or developing, or listed in the Morgan Stanley Capital International Emerging Markets Free Index. Emerging market countries are located in regions such as Asia, Latin America, the Middle East, Southern Europe, Eastern Europe (including the former republics of the Soviet Union and the Eastern Bloc) and Africa.

 

The portfolio managers seek to identify securities of companies with characteristics such as:

n low valuation relative to their long-term cash earnings growth potential

n potential for significant improvement in the company’s business

n financial strength

n sufficient liquidity

 

The Fund may also invest to a lesser extent in securities of companies located in countries other than emerging market countries (including the United States) and debt securities. The portfolio managers may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk, foreign exposure risk, emerging markets risk and style risk mid-cap company risk and small-cap company risk). To the extent that the portfolio managers invest in debt securities, the Fund would be subject to bond market risk, interest rate risk and credit risk. The Fund may also invest in derivative instruments that carry derivative instruments risk.

 

The Fund may also be subject to valuation risk with respect to valuing certain Fund holdings.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 

Fund Background

No performance figures are shown because the Fund has no operating history as of the date of this Prospectus.

 


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15

 

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16

 

GE Funds

Prospectus

Equity Funds

 

GE Premier Growth Equity Fund

 

 

Investment Objective:

Long-term growth of capital and future income rather than current income

 

The Strategy

 

GE Premier Growth Equity Fund invests at least 80% of its net assets in equity securities under normal circumstances. The Fund invests primarily in a limited number of large- and medium-sized companies that the portfolio manager believes have above-average growth histories and/or growth potential. In recent periods, the Fund has tended to emphasize larger companies. The portfolio manager selects equity securities from a number of industries based on the merits of individual companies. Stock selection is key to the performance of the Fund.

 

The portfolio manager seeks to identify securities of companies with characteristics such as:

n above-average annual growth rates

n financial strength

n leadership in their respective industries

n high quality management focused on generating shareholder value

 

The Fund also may invest to a lesser extent in foreign securities and debt securities. The portfolio manager may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk, diversification risk and style risk (growth investing risk and mid-cap company risk). To the extent that the portfolio manager invests in foreign securities or debt securities, the Fund would be subject to foreign exposure risk, bond market risk, interest rate risk and credit risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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17

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 23.47% for the quarter ended December 31, 1998. The lowest return before taxes for a quarter was -17.00% for the quarter ended September 30, 2002. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the S&P 500® Index. The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE Premier Growth Equity Fund                            

Class A Shares1

                           

Return Before Taxes

  -1.04%       8.30%       6.30%       7.99%

Return After Taxes on Distributions3

  -2.49%       7.45%       5.56%       7.23%

Return After Taxes on Distributions and Sale of Fund Shares3

  1.24%       7.18%       5.40%       6.92%

Return Before Taxes

                           

Class B

  0.55%       8.78%       6.46%       8.14%

Class C

  3.29%       8.78%       —           2.33%

Class Y

  5.27%       9.86%       7.20%       8.85%

S&P 500® Index4

  5.50%       12.84%       5.91%       8.15%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A, B and Y – 12/31/96; Class C – 9/30/99.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the S&P 500® Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the S&P 500® Index are calculated from the month-end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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18

 

[This page intentionally left blank.]

 


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19

 

Income

Funds

    

 

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

Who may want to invest in a GE Income Fund?

 

GE Income Funds may be appropriate for your investment portfolio if you:

n seek regular income

n seek lower potential volatility than equity funds over the long term

n want to diversify a portfolio composed mostly of equity investments

 

GE Tax-Exempt Fund may be appropriate for your investment portfolio if you:

n are in a high tax bracket

n want income that is exempt from federal income tax

 

GE Income Funds may not be appropriate if you want:

n potential for high capital appreciation

n an investment that seeks to maintain a stable share price

 

Income funds generally invest in debt securities. Holders of debt securities typically have a higher priority claim to assets than do equity holders. Typically, the debt issuer pays the investor a fixed, variable or floating rate of interest and must repay the borrowed amount at maturity. Some debt securities, such as zero coupon obligations, are sold at a discount from their face values instead of paying interest. Income funds provide regular income and some provide federally tax-exempt income.

 

For a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


Table of Contents

 

 

20

 

GE Funds

Prospectus

Income Funds

 

GE Fixed

Income Fund

 

 

Investment Objective:

Maximum income consistent with prudent investment management and the preservation of capital

The Strategy

 

GE Fixed Income Fund invests at least 80% of its net assets in debt securities under normal circumstances. The Fund invests primarily in a variety of investment-grade debt securities, such as mortgage-backed securities, corporate bonds, U.S. Government securities and money market instruments. The Fund normally has a weighted average maturity of approximately five to ten years, but is subject to no limitation with respect to the maturities of the instruments in which it may invest.

 

U.S. Government securities are securities that are issued and guaranteed as to principal and interest by the U.S. Government or one of its agencies or instrumentalities. Some U.S. Government securities are backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills and notes and obligations of the Government National Mortgage Association (Ginnie Mae). Other U.S. Government securities are backed by the issuer’s right to borrow from the U.S. Treasury, such as Federal National Mortgage Association (Fannie Mae) securities, while some are backed only by the credit of the issuing organization, such as obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac). Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government.

 

The portfolio managers seek to identify debt securities with characteristics such as:

n attractive yields and prices

n the potential for capital appreciation

n reasonable credit quality

 

The Fund also may invest to a lesser extent in asset-backed securities, high yield securities (also known as “junk bonds”) and foreign debt securities. The portfolio managers may use various investment techniques, including investments in derivative instruments, such as interest rate, currency, index and credit default swaps, to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are bond market risk, interest rate risk, credit risk, prepayment risk and mortgage-backed securities risk. To the extent that the portfolio managers invest in asset-backed securities, foreign debt securities, high yield securities and companies that are located in developing countries outside the United States, the Fund would be subject to asset-backed securities risk, foreign exposure risk, high yield securities risk and emerging markets risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

The Fund may also be subject to valuation risk with respect to valuing certain Fund holdings.

 

The Fund’s investment strategy may result in a high portfolio turnover rate, which may cause the Fund to experience increased transaction costs and impact the Fund’s performance. Shareholders may also incur increased taxes on their investment in the Fund. For more information on the risks associated with high portfolio turnover, please refer to “More on Strategies, Risks and Disclosures of Portfolio Holdings — More on Risks” later in this Prospectus.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


Table of Contents

 

 

21

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 4.33% for the quarter ended September 30, 2001. The lowest return before taxes for a quarter was -2.56% for the quarter ended June 30, 2004. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the Lehman Brothers Aggregate Bond Index (LB Aggregate Bond Index). The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE Fixed Income Fund                            

Class A Shares1

                           

Return Before Taxes

  1.16%       2.82%       4.69%       5.20%

Return After Taxes on Distributions3

  -0.60%       1.18%       2.73%       3.09%

Return After Taxes on Distributions and Sale of Fund Shares3

  0.72%       1.46%       2.80%       3.13%

Return Before Taxes

                           

Class B

  1.86%       2.94%       4.67%       5.16%

Class C

  3.86%       2.97%       —           4.72%

Class Y

  5.92%       3.99%       5.41%       5.74%

LB Aggregate Bond Index4

  6.97%       4.42%       5.97%       6.29%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A – 2/22/93; Class B – 12/22/93; Class C – 9/30/99; Class Y – 11/29/93.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the LB Aggregate Bond Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the LB Aggregate Bond Index are calculated from the month end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


Table of Contents

 

 

22

 

GE Funds

Prospectus

Income Funds

 

GE Government Securities Fund

 

 

Investment Objective: High level of current income consistent with safety of principal

The Strategy

 

GE Government Securities Fund invests at least 80% of its net assets in U.S. Government securities under normal circumstances. The Fund’s investments may include mortgage-backed securities with remaining maturities of one year or more. The Fund normally has an average duration of approximately three to six years.

 

U.S. Government securities are securities that are issued and guaranteed as to principal and interest by the U.S. Government or one of its agencies or instrumentalities. Some U.S. Government securities are backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills and notes and obligations of the Government National Mortgage Association (Ginnie Mae). Other U.S. Government securities are backed by the issuer’s right to borrow from the U.S. Treasury, such as Federal National Mortgage Association (Fannie Mae) securities, while some are backed only by the credit of the issuing organization, such as obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac). Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government.

 

The Fund invests in securities issued by the:

n U.S. Treasury

n Government National Mortgage Association (Ginnie Mae)

 

n Federal National Mortgage Association (Fannie Mae)

n Federal Home Loan Mortgage Corporation (Freddie Mac)

n other U.S. Government agencies and instrumentalities

 

No more than 20% of the Fund’s assets may be invested in debt securities rated A or lower by Moody’s or S&P or comparably rated by another nationally recognized statistical rating organization, and no more than 10% of the Fund’s assets may be invested in debt securities rated Baa by Moody’s or BBB by S&P or comparably rated by another nationally recognized statistical rating organization.

 

The portfolio managers seek to identify debt securities with characteristics such as:

n attractive yields and prices

n the potential for capital appreciation

n reasonable credit quality

 

The Fund also may invest to a lesser extent in a variety of debt securities including corporate debt securities, asset-backed securities and foreign securities. The portfolio managers may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are bond market risk, interest rate risk, credit risk, prepayment risk and mortgage-backed securities risk. To the extent that the portfolio managers invest in asset-backed securities and foreign securities, the Fund also would be subject to asset-backed securities risk and foreign exposure risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

The Fund may also be subject to valuation risk with respect to valuing certain Fund holdings.

 

The Fund’s investment strategy may result in a high portfolio turnover rate, which may cause the Fund to experience increased transaction costs and impact the Fund’s performance. Shareholders may also incur increased taxes on their investment in the Fund. For more information on the risks associated with high portfolio turnover, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings — More on Risks” later in this Prospectus.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


Table of Contents

 

 

23

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class B’s highest return before taxes for a quarter was 5.69% for the quarter ended September 30, 2002. The lowest return before taxes for a quarter was -3.22% for the quarter ended June 30, 2004. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the Lehman Brothers Government Bond Index (LB Government Bond Index). The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

Calendar Year Total Returns

Class B Shares

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception1
GE Government Securities Fund                            

Class B Shares

                           

Return Before Taxes

  3.94%       2.47%       4.52%       —    

Return After Taxes on Distribution2

  2.72%       1.51%       2.91%       —    

Return After Taxes on Distribution and Sale of Fund Shares2

  2.53%       1.54%       2.86%       —    

Return Before Taxes

                           

Class A3

  3.29%       2.36%       4.66%       4.33%

Class C

  6.16%       2.51%       —           4.72%

LB Government Bond Index4

  8.66%       4.10%       5.92%       7.33%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Inception date: Class A – 9/8/93; Class B – 4/22/87 (inception date of predecessor fund which merged into GE Government Securities Fund on 9/25/97); Class C – 9/30/99.

 

2 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class B shares only and after-tax returns for other share classes will vary.

 

3 Returns reflect the impact of Distribution and Service Fees imposed at the rate of 0.50% of average daily net assets for periods prior to September 17, 1999. Effective September 17, 1999, Distribution and Service Fees were reduced to 0.25% of average daily net assets.

 

4 The returns of the LB Government Bond Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the LB Government Bond Index are calculated from the month end nearest Class B shares’ inception date.

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 

 

 


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24

 

GE Funds

Prospectus

Income Funds

 

GE Short-Term Government Fund

 

 

Investment Objective: High level of income consistent with prudent investment management and the preservation of capital

The Strategy

 

GE Short-Term Government Fund invests at least 80% of its net assets in U.S. Government securities under normal circumstances. The Fund’s investments may include mortgage-backed securities and repurchase agreements secured by U.S. Government securities. The Fund normally has a weighted average maturity of not more than three years.

 

U.S. Government securities are securities that are issued and guaranteed as to principal and interest by the U.S. Government or one of its agencies or instrumentalities. Some U.S. Government securities are backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills and notes and obligations of the Government National Mortgage Association (Ginnie Mae). Other U.S. Government securities are backed by the issuer’s right to borrow from the U.S. Treasury, such as Federal National Mortgage Association (Fannie Mae) securities, while some are backed only by the credit of the issuing organization, such as obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac). Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government.

 

The Fund invests in securities issued or secured by the:

n U.S. Treasury

 

n Government National Mortgage Association (Ginnie Mae)

n Federal National Mortgage Association (Fannie Mae)

n Federal Home Loan Mortgage Corporation (Freddie Mac)

n other U.S. Government agencies and instrumentalities

 

The portfolio manager seeks to identify debt securities with characteristics such as:

n attractive yields and prices

n the potential for capital appreciation

n reasonable credit quality

 

The Fund also may invest to a lesser extent in a variety of debt securities, including corporate bonds, privately issued mortgage-backed securities, asset-backed securities and foreign securities. The portfolio managers may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risks

 

The principal risks of investing in the Fund are bond market risk, interest rate risk, credit risk, prepayment risk and mortgage-backed securities risk. To the extent that the Fund invests in foreign securities and asset backed securities, the Fund would be subject to foreign exposure risk and asset-backed securities risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

The Fund may also be subject to valuation risk with respect to valuing certain Fund holdings.

 

The Fund’s investment strategy may result in a high portfolio turnover rate, which may cause the Fund to experience increased transaction costs and impact the Fund’s performance. Shareholders may also incur increased taxes on their investment in the Fund. For more information on the risks associated with high portfolio turnover, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings — More on Risks” later in this Prospectus.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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25

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 3.60% for the quarter ended September 30, 2001. The lowest return before taxes for a quarter was -1.13% for the quarter ended June 30, 2004. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the Lehman Brothers 1-3 Year Government Bond Index (LB 1-3 Year Government Bond Index). The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE Short-Term Government Fund                            

Class A Shares1

                           

Return Before Taxes

  2.50%       2.04%       4.06%       4.47%

Return After Taxes on Distributions3

  0.97%       0.64%       2.28%       2.52%

Return After Taxes on Distributions and Sale of Fund Shares3

  1.60%       0.92%       2.37%       2.60%

Return Before Taxes

                           

Class B

  1.62%       1.95%       3.96%       4.38%

Class C

  3.46%       1.80%       —           3.45%

Class Y

  5.51%       2.82%       4.57%       4.90%

LB 1-3 Year Government Bond Index4

  7.10%       3.19%       4.84%       5.15%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A, B and Y – 3/2/94; Class C – 9/30/99.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the LB 1-3 Year Government Bond Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the LB 1-3 Year Government Bond Index are calculated from the month end nearest Class A shares’ inception date.

 

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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26

 

GE Funds

Prospectus

Income Funds

 

GE Tax-Exempt Fund

 

 

Investment Objective: As high a level of income exempt from federal income taxation as is consistent with preservation of capital

 

The Strategy

 

GE Tax-Exempt Fund invests primarily in investment-grade municipal obligations. Under normal circumstances, the portfolio manager manages the Fund so that at least 80% of the Fund’s income is exempt from both regular federal income taxes and the federal alternative minimum tax.

 

The Fund generally will have an effective duration of 75% to 125% of the duration of the Lehman Brothers 10-Year Municipal Index (LB 10-Year Muni Index). As of December 31, 2007, the effective duration of the LB 10-Year Muni Index was 6.26 years.

 

The portfolio manager seeks to identify municipal obligations with characteristics such as:

n attractive yields and prices

n the potential for income generation

n the potential for capital appreciation

n reasonable credit quality

 

The Fund also may invest to a lesser extent in tax-free or taxable money market instruments and may hold cash and cash equivalents. The portfolio manager may use various investment techniques to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s policy that at least 80% of its income be exempt from both regular federal income taxes and the federal alternative minimum tax may be changed only by shareholder vote.

 

The Risks

 

The principal risks of investing in the Fund are municipal obligations risk, bond market risk, interest rate risk and credit risk.

 

The Fund may also be subject to valuation risk with respect to valuing certain Fund holdings.

 

The Fund’s income may be subject to state and local taxes. Capital gains, if any, will be subject to tax.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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27

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 4.67% for the quarter ended September 30, 2002. The lowest return before taxes for a quarter was -2.56% for the quarter ended June 30, 2004. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the LB 10-Year Muni Index. The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years         10 Years       Since
Inception2
 
GE Tax-Exempt Fund                                

Class A Shares1

                               

Return Before Taxes

  -1.66%       1.78%         3.51%       4.10%  

Return After Taxes on Distributions3

  -1.71%       1.74%         3.48%       4.05%  

Return After Taxes on Distributions and Sale of Fund Shares3

  0.20%       2.02%         3.56%       4.08%  

Return Before Taxes

                               

Class B

  -1.06%       1.92%         3.38%       4.17%  

Class C

  0.92%       1.91%         —           3.68%  

Class Y

  2.95%       3.74% 5       4.72%       4.77% 5

LB 10-Year Muni Index4

  4.29%       4.31%         5.22%       5.57%  

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns reflect the impact of Distribution and Service Fees imposed at the rate of 0.50% of average net assets for periods prior to September 17, 1999. Effective September 17, 1999, Distribution and Service Fees were reduced to 0.25% of average daily net assets.

 

2 Inception date: Class A and B – 9/8/93; Class C – 9/30/99; Class Y – 9/26/97.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the LB 10-Year Muni Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the LB 10-Year Muni Index are calculated from the month end nearest Class A shares’ inception date.

 

5 The Fund recorded an accounting adjustment for 2003 which enhanced performance due to the small size of this share class. Absent this adjustment, the performance for the Class Y shares would have been lower.

 

Tax Exempt Investing. Tax-exempt investing usually benefits investors in higher tax brackets.

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 

 

 


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28

 

GE Funds

Prospectus

Income Funds

 

GE High

Yield Fund

 

 

Investment Objective:

Above-average total return over a market cycle of three to five years, consistent with reasonable risk.

The Strategy

 

GE High Yield Fund invests at least 80% of its net assets in high yield securities (including bonds rated below investment grade, sometimes called “junk bonds”). The portfolio managers will not sell a particular security solely because it is no longer classified as high yield. The Fund may also invest in U.S. Government securities, mortgage-backed securities, investment grade securities, agency securities (securities that are not guaranteed by the U.S. Government, but which are issued, sponsored or guaranteed by a federal agency or federally sponsored agency), and short-term fixed income securities, such as certificates of deposit, treasury bills and commercial paper. The Fund seeks to achieve its objective by earning a high rate of current income, although the Fund may seek capital growth opportunities when consistent with its objective. The Fund’s weighted average maturity will generally be greater than five years, but is subject to no limitation with respect to the maturities of the instruments in which it may invest.

 

The portfolio management team uses analyses of economic and industry trends to determine the portfolio mix of “core” holdings and “opportunistic” holdings. A rigorous process utilizing fundamental, bottoms-up credit research underlies selection of each individual security holding. Individual securities are selected and monitored by an experienced team of fixed income portfolio managers and credit analysts who specialize in high yield corporate bonds. The team relies on the in-depth, fundamental analysis to uncover opportunities in undervalued issues.

 

The Fund also may invest to a lesser extent in foreign debt securities, including high yield securities of foreign issuers and emerging market securities. The Fund also may use derivative instruments to pursue its portfolio strategy. The portfolio management team may use various investment techniques, such as interest rate, currency, index and credit default swaps, to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Fund’s 80% investment policy may be changed by the Trustees on 60 days’ notice to shareholders.

 

The Risk

The principal risk of investing in the Fund is high yield securities risk. The Fund is also subject to bond market risk, interest rate risk, credit risk, prepayment risk, mortgage-backed securities risk and style risk (high yield investing risk). To the extent that the Fund invests in foreign debt securities, the Fund would be subject to foreign exposure risk and emerging markets risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

 

 

The Fund may also be subject to valuation risk with respect to valuing certain Fund holdings.

 

Because the Fund invests primarily in high yield securities that are considered speculative, investment in the Fund may not be suitable for all investors.

 

The Fund’s investment strategy may result in a high portfolio turnover rate, which may cause the Fund to experience increased transaction costs and impact the Fund’s performance. Shareholders may also incur increased taxes on their investment in the Fund. For more information on the risks associated with high portfolio turnover, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings — More on Risks” later in this Prospectus.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 

Fund Background

No performance figures are shown because the Fund has no operating history as of the date of this Prospectus.

 


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29

 

Asset

Allocation

Funds

    

 

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

Who may want to invest in the GE Strategic Investment Fund?

 

The GE Strategic Investment Fund may be appropriate for your investment portfolio if you:

n seek both capital appreciation and current income

n want a single diversified investment

 

The GE Strategic Investment Fund is designed to meet the needs of investors who prefer to have their asset allocation decisions made by professional money managers. They provide an investor with a means to diversify by investing in a core portfolio that typically holds both equity securities and debt securities. Although an investor may achieve the same level of diversification by buying individual GE Equity or Income Funds, the GE Strategic Investment Fund presents a diversification alternative within one fund. An investor should not expect capital appreciation or current income levels comparable to funds for which either capital appreciation or current income is their sole objective.

 

For a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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30

 

GE Funds

Prospectus

Asset Allocation

Funds

 

GE Strategic Investment Fund

 

 

Investment Objective:

Maximum total return

 

The Strategy

 

GE Strategic Investment Fund invests primarily in a combination of equity securities and investment-grade debt securities. The Fund’s asset allocation process utilizes information from GE Asset Management’s Asset Allocation Committee to diversify holdings across asset classes. The Fund adjusts its weightings among U.S. equity securities, debt securities, foreign securities and cash based on the relative attractiveness of the asset classes.

 

The Fund invests in equity securities principally for their capital appreciation potential and debt securities principally for their income potential. Within each asset class, the portfolio managers use active security selection to choose securities based on the merits of individual issuers.

 

The portfolio managers seek to identify equity securities of companies with characteristics such as:

n strong earnings growth

n favorable valuation

n attractive prices

n a presence in successful industries

n high quality management

 

The portfolio managers seek to identify debt securities with characteristics such as:

n attractive yields and prices

n the potential for capital appreciation

n reasonable credit quality

 

The portion of the Fund invested in debt securities normally has a weighted average maturity of approximately five to ten years, but is subject to no limitation with respect to the maturities of the instruments in which it may invest.

 

Under normal circumstances, the Fund may have a net cash level of up to 10% of its total assets.

 

The Fund may also invest to a lesser extent in high yield securities (also known as “junk bonds”). The portfolio managers may use various investment techniques, including investments in derivative instruments, such as interest rate, currency, index and credit default swaps, to adjust the Fund’s investment exposure, but there is no guarantee that these techniques will work.

 

The Risks

 

The principal risks of investing in the Fund are stock market risk, style risk (mid-cap company risk, growth investing risk and value investing risk), foreign exposure risk, bond market risk, interest rate risk, credit risk, municipal obligations risk and prepayment risk. To the extent the portfolio managers invest in high yield securities and equity securities of companies that are located in developing countries outside the United States, the Fund would be subject to high yield securities risk and emerging markets risk. The Fund may invest in derivative instruments that carry derivative instruments risk.

 

The Fund may also be subject to valuation risk with respect to valuing certain Fund holdings.

 

The Fund’s net cash position typically has less total return potential over time than the Fund’s other asset classes but at times may be relatively more attractive.

 

The Fund’s asset allocation process may result in a high portfolio turnover rate, which may cause the Fund to experience increased transaction costs and impact the Fund’s performance. Shareholders may also incur increased taxes on their investment in the Fund. For more information on the risks associated with high portfolio turnover, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings — More on Risks” later in this Prospectus.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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31

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. The bar chart does not reflect the impact of sales charges. If it did, the Fund’s total returns would have been lower. During the periods presented in the bar chart, Class A’s highest return before taxes for a quarter was 12.15% for the quarter ended June 30, 2003. The lowest return before taxes for a quarter was -9.30% for the quarter ended September 30, 2002. The Fund’s year-to-date return was     % as of June 30, 2008.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the return of the S&P 500® Index and the return of the LB Aggregate Bond Index. The table reflects the impact of the Fund’s expenses and sales charges for each share class. The table (other than “Return After Taxes on Distributions”) assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for Class R shares because Class R shares are new (inception date January 29, 2008) and have no performance history to date.

Calendar Year Total Returns

Class A Shares1

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10 Years       Since
Inception2
GE Strategic Investment Fund                            

Class A Shares1

                           

Return Before Taxes

  5.15%       10.06%       6.88%       8.93%

Return After Taxes on Distributions3

  3.31%       8.81%       5.31%       7.43%

Return After Taxes on Distributions and Sale of Fund Shares3

  5.25%       8.48%       5.32%       7.21%

Return Before Taxes

                           

Class B

  6.73%       10.56%       7.03%       8.95%

Class C

  9.77%       10.58%       —           5.97%

Class Y

  11.86%       11.81%       7.85%       9.65%

S&P 500® Index4

  5.50%       12.84%       5.91%       10.46%

LB Aggregate Bond Index4

  6.97%       4.42%       5.97%       6.29%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. Due to volatile market conditions, performance figures such as those shown in the bar chart and table may be significantly different if the bar chart and table covered more recent periods. As with all mutual funds, past performance (before and after taxes) is not an indication of future performance.

 

1 Returns include those of the predecessor Class C, which was combined with Class A as of the close of business on September 17, 1999. Average Annual Total Returns for periods prior to September 17, 1999 have been adjusted to reflect Class A expenses and sales charges.

 

2 Inception date: Class A – 2/22/93; Class B – 12/22/93; Class C – 9/30/99; Class Y – 11/29/93.

 

3 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and after-tax returns for other share classes will vary.

 

4 The returns of the S&P 500® Index and LB Aggregate Bond Index do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the S&P 500® Index and LB Aggregate Bond Index are calculated from the month end nearest Class A shares’ inception date.

 

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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33

 

Money

Market

Funds

    

 

Who may want to invest in the GE Money Market Fund?

 

The GE Money Market Fund may be appropriate for your portfolio if you:

n want an investment seeking modest but regular income, compared with other investments

n are investing for a short period of time

n want an investment that seeks to maintain a stable share price

 

The GE Money Market Fund may not be appropriate if you:

n want a potentially higher rate of income

n want a long-term investment

n seek capital appreciation

 

The GE Money Market Fund invests in short-term, high quality money market instruments. The GE Money Market Fund seeks to provide stability of principal and regular income. The income provided by the GE Money Market Fund varies with interest rate movements.

 

For a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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34

 

GE Funds

Prospectus

Money Market

Funds

 

GE Money Market Fund

 

 

Investment Objective: High level of current income consistent with the preservation of capital and maintenance of liquidity

The Strategy

 

GE Money Market Fund invests primarily in short-term, U.S. dollar denominated money market instruments. The Fund’s investments may include U.S. Government securities, repurchase agreements, commercial paper, certificates of deposit, variable rate securities, asset-backed securities, foreign debt securities, Eurodollar deposits and domestic and foreign bank deposits.

 

U.S. Government securities are securities that are issued and guaranteed as to principal and interest by the U.S. Government or one of its agencies or instrumentalities. Some U.S. Government securities are backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills and notes and obligations of the Government National Mortgage Association (Ginnie Mae). Other U.S. Government securities are backed by the issuer’s right to borrow from the U.S. Treasury, such as Federal National Mortgage Association (Fannie Mae) securities, while some are backed only by the credit of the issuing organization, such as obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac). Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government.

 

The Fund invests consistent with regulatory standards governing security quality, maturity and portfolio diversification. For example, the portfolio manager limits investments to high quality securities with remaining maturities of up to 13 months and limits the weighted average maturity of the Fund’s portfolio to 90 days or less. The Fund may invest more than 25% of its total assets in the domestic banking industry.

 

All of the Fund’s assets must be rated in the two highest short-term rating categories (or their unrated equivalents), and at least 95% of its assets must be rated in the highest rating category (or its unrated equivalent), by a nationally recognized statistical rating organization. Additional information about the money market instruments in which the Fund may invest, including rating categories, is contained in the SAI.

 

 

The Risks

 

The principal risks of investing in the Fund are bond market risk, interest rate risk, credit risk, asset-backed securities risk and foreign exposure risk. Changes in banking regulations or the economy can have a significant impact on the banking industry and, therefore, the Fund.

 

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the Fund seeks to maintain a net asset value of $1.00 per share, it is possible to lose money by investing in the Fund. The Fund’s yield will change due to movements in current short-term interest rates and market conditions. A change in interest rates or default on the Fund’s investments could cause the Fund’s share price to decline below $1.00.

 

If you would like additional information regarding the Fund’s investment strategies and risks, including a description of the terms in bold type, please refer to “More on Strategies, Risks and Disclosure of Portfolio Holdings” later in this Prospectus.

 


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35

 

Fund Performance

 

The bar chart and table opposite illustrate the short-term variability in the Fund’s performance and the Fund’s returns relative to a common measure of performance.

 

The bar chart illustrates how the Fund’s performance varies from year to year over the periods shown. During the periods presented in the bar chart, the Fund’s highest return for a quarter was 1.56% for the quarter ended December 31, 2000. The Fund’s lowest return for a quarter was 0.17% for the quarter ended March 31, 2004. The Fund’s seven day yield was     % and the effective seven day yield was     % as of June 30, 2008. “Effective yield” reflects the compounding effect of earnings on reinvested dividends.

 

The table opposite illustrates how the Fund’s average annual returns for different calendar periods compare to the returns of the 90 Day Treasury Bill Rate (90 Day T-Bill). The table reflects the impact of the Fund’s expenses. It assumes that you sold your shares at the end of each period.

 

The table does not provide performance information for the Institutional Class shares because the Institutional Class shares are new (inception date January 29, 2008) and have no performance history to date.

 

Calendar Year Total Returns

 

LOGO

Average Annual Total Returns

(as of December 31, 2007)

 

    1 Year       5 Years       10-Years       Since
Inception1
GE Money Market Fund                            

Retail Class

  4.94%       2.89%       3.56%       3.88%
90 Day T-Bill2   4.44%       2.97%       3.56%       3.94%

 

Both the bar chart and table assume reinvestment of dividends and distributions. GE Asset Management may have reimbursed certain expenses during the periods shown. Absent those reimbursements, the Fund’s total return would have been lower. As with all mutual funds, past performance is not an indication of future performance.

 

1 Inception date: Retail Class – 2/23/93; Institutional Class – 1/29/08.

 

2 The returns of the 90 Day T-Bill do not include the effect of sales charges (if any), operating expenses of a mutual fund or taxes. If included, returns shown would have been lower. Since Inception returns for the 90 Day T-Bill are calculated from the month end nearest the Fund’s inception date.

All mutual funds use a standard formula to calculate total return. Total return measures the price change in a share assuming the reinvestment of all dividend income and capital gain distributions.

 


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36

 

GE Funds

Prospectus

     Fund Expenses

 

The following tables describe the fees and expenses that you may pay if you buy and hold shares of a Fund.

           

Shareholder Fees

(paid directly from your investment,

not reflected in share price)1

 

  GE U.S. Equity Fund   GE Core Value Equity Fund   GE Small-Cap Equity Fund   GE Global Equity Fund     
Maximum Sales Charge (load) Imposed on Purchases
of Shares (as a percentage of offering price):
         
Class A   5.75%   5.75%   5.75%   5.75%  
Classes B, C, R and Y   None   None   None   None  

Retail Class and Institutional Class

  N/A   N/A   N/A   N/A    
Maximum Sales Charge (load) Imposed on Reinvested
Dividends (as a percentage of offering price):
         

All Classes

  None   None   None   None    
Maximum Contingent Deferred Sales Charge
(as a percentage of redemption proceeds):
         
Class A2   None   None   None   None  
Class B   4.0%   4.0%   4.0%   4.0%  
Class C3   1.0%   1.0%   1.0%   1.0%  
Class R   None   None   None   None  
Class Y   None   None   None   None  

Retail Class and Institutional Class

  N/A   N/A   N/A   N/A    
Redemption Fee:          

All Classes4

  None   None   None   2.0%    
Exchange Fee:          

All Classes4

  None   None   None   2.0%    

 

1 Certain broker-dealers and financial institutions also may charge their clients fees not reflected in the table above in connection with investments in the Funds.

 

2 A CDSC of 1% applies on redemptions of Class A shares made within one year following purchases of $1 million or more and made without an initial sales charge. However, a CDSC does not apply to investors purchasing $1 million or more of any Fund’s Class A shares if such investors are otherwise eligible to purchase Class A shares pursuant to another sales charge waiver. See “How to Invest — Choosing a Share Class” later in this Prospectus.

 

3 Class C shares are subject to a 1% CDSC for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.

 


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37

 

 

                     
     GE International Equity Fund   GE Emerging Markets Equity Fund5   GE Premier Growth Equity Fund   GE Fixed Income Fund   GE Government Securities Fund5   GE Short-Term Government Fund   GE Tax-Exempt Fund6   GE High Yield Fund5   GE Strategic Investment Fund   GE Money Market Fund7
                   
  5.75%   5.75%   5.75%   4.25%   4.25%   2.50%   4.25%   4.25%   5.75%   N/A
  None   None   None   None   None   None   None   None   None   N/A
    N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   None
                   
    None   None   None   None   None   None   None   None   None   None
                   
  None   None   None   None   None   None   None   None   None   N/A
  4.0%   N/A   4.0%   3.0%   3.0%   3.0%   3.0%   N/A   4.0%   N/A
  1.0%   1.0%   1.0%   1.0%   1.0%   1.0%   1.0%   1.0%   1.0%   N/A
  None   None   None   None   N/A   None   N/A   None   None   N/A
  None   None   None   None   N/A   None   None   None   None   N/A
    N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   None
                   
    2.0%   2.0%   None   None   None   None   None   None   None   None
                   
    2.0%   2.0%   None   None   None   None   None   None   None   None

 

4 A 2% redemption fee is charged on shares of GE International Equity Fund, GE Emerging Markets Equity Fund and GE Global Equity Fund that are redeemed (either by selling the shares or exchanging into another Fund) within 90 days of purchase, subject to certain exceptions. For additional information on this redemption fee and the exceptions that apply, please see “How to Invest — Redemption Fees” later in this Prospectus.

 

5 GE Emerging Markets Equity Fund and GE High Yield Fund do not offer Class B shares.

 

6 GE Government Securities Fund does not offer Class R or Class Y shares.

 

7 GE Tax-Exempt Fund does not offer Class R shares.

 

8 GE Money Market Fund currently offers Retail Class and Institutional Class shares only. No sales charges, redemption fees or exchange fees are assessed by this Fund.

 


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38

 

GE Funds

Prospectus

Fund Expenses

    

 

 

Annual fund operating expenses are deducted from a Fund’s assets and are reflected in the Fund’s share price and dividends.

 

             

Annual Fund

Operating

Expenses

(as a percentage of

average net assets)

 

  GE U.S. Equity Fund   GE Core Value Equity Fund   GE Small-Cap Equity Fund   GE Global Equity Fund   GE International Equity Fund  
Management Fees:1            

All Classes

  0.40%   0.55%   0.70%   0.75%   0.80%    
Distribution and Service (12b-1) Fees:2            
Class A   0.25%   0.25%   0.25%   0.25%   0.25%  
Class B   1.00%   1.00%   1.00%   1.00%   1.00%  
Class C   1.00%   1.00%   1.00%   1.00%   1.00%  
Class R   0.50%   0.50%   0.50%   0.50%   0.50%  

Class Y

  None   None   None   None   None    
Other Expenses:3,4            
Class A   0.13%   0.47%   0.37%   0.44%   0.49%  
Class B   0.13%   0.47%   0.37%   0.43%   0.49%  
Class C   0.13%   0.47%   0.37%   0.43%   0.49%  
Class R5   0.13%   0.47%   0.37%   0.43%   0.49%  

Class Y

  0.13%   0.47%   0.37%   0.43%   0.49%    
Acquired Fund Fees and Expenses:6            

All Classes

  0.02%   0.01%   0.01%   0.01%   0.01%    
Total Annual Fund Operating Expenses:            
Class A   0.80%   1.28%   1.33%   1.45%   1.55%  
Class B   1.55%   2.03%   2.08%   2.19%   2.30%  
Class C   1.55%   2.03%   2.08%   2.19%   2.30%  
Class R   1.05%   1.53%   1.58%   1.69%   1.80%  

Class Y

  0.55%   1.03%   1.08%   1.19%   1.30%    
Expense Reimbursed by (Reimbursed to) the Advisor:            
Class A   0.01%   0.10%       0.20%  
Class B   0.01%   0.10%       0.20%  
Class C   0.01%   0.10%       0.20%  
Class R   0.01%   0.10%       0.20%  

Class Y

  0.01%   0.10%       0.20%    
Net Annual Fund Operating Expenses:7            
Class A   0.79%   1.18%   1.33%   1.45%   1.35%  
Class B   1.54%   1.93%   2.08%   2.19%   2.10%  
Class C   1.54%   1.93%   2.08%   2.19%   2.10%  
Class R   1.04%   1.43%   1.58%   1.69%   1.60%  

Class Y

  0.54%   0.93%   1.08%   1.19%   1.10%    

 

1 The nature of the services provided to, and the advisory and administration fees paid by, each Fund are described under “About the Investment Adviser.” With respect to GE International Equity Fund, GE Premier Growth Equity Fund and GE Short-Term Government Fund, “Management Fees” also include administration fees (amounting to 0.05%) that are imposed pursuant to a separate contract.

2 Because these Funds pay distribution and service fees, long-term shareholders of Class A, Class B, Class C and Class R shares may pay more than the economic equivalent of the maximum front-end sales charge currently permitted by the Financial Industry Regulatory Authority (FINRA).

3 The expense information shown in the table has been restated for each Fund (other than GE Government Securities Fund, GE Emerging Markets Equity Fund and GE High Yield Fund) to reflect additional expenses that each share class (except Class R shares) is expected to incur in the current fiscal year. For the GE Government Securities Fund, the figures above show actual expenses of all classes for the most recent fiscal year. Because the GE Emerging Markets Equity Fund and the GE High Yield Fund are new, the expense information in the table for these Funds is estimated and reflects each Fund’s anticipated expenses for the current fiscal year.

4 “Other Expenses” include all operating expenses of the Fund except Management Fees and Distribution and Service (12b-1) Fees. Expenses, other than those incurred by a specific Fund, are allocated pro rata among the Funds and share classes based on net assets. Such expenses may include legal fees, printing costs and costs associated with the independent trustees. Fund specific expenses, such as custodial fees, registration fees, auditing fees and transfer agent fees, are allocated to the Fund that incurs such expense and pro rata based on assets across share classes. Fund specific expenses may also include networking fees and the costs of sub-transfer agent services provided by Authorized Firms. Other expense allocation methodologies may result in different expense ratios.

 


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39

 

 

                 
    GE Emerging Markets Equity Fund   GE Premier Growth Equity Fund   GE Fixed Income Fund   GE Government Securities Fund   GE Short-Term Government Fund   GE Tax-Exempt Fund   GE High Yield Fund   GE Strategic Investment Fund
               
    1.05%   0.60%   0.35%   0.40%   0.30%   0.35%   0.60%   0.35%
               
  0.25%   0.25%   0.25%   0.25%   0.25%   0.25%   0.25%   0.25%
  N/A   1.00%   1.00%   1.00%   0.85%   1.00%   N/A   1.00%
  1.00%   1.00%   1.00%   1.00%   1.00%   1.00%   1.00%   1.00%
  0.50%   0.50%   0.50%   N/A   0.50%   N/A   0.50%   0.50%
    None   None   None   N/A   None   None   N/A   None
               
  0.88%   0.20%   0.26%   0.25%   0.30%   0.57%   0.82%   0.31%
  N/A   0.20%   0.26%   0.25%   0.30%   0.57%   N/A   0.31%
  0.88%   0.20%   0.26%   0.24%   0.30%   0.57%   0.82%   0.31%
  0.88%   0.19%   0.26%   N/A   0.30%   N/A   0.82%   0.31%
    0.88%   0.19%   0.26%   N/A   0.30%   0.57%   0.82%   0.31%
               
    None     0.06%   0.06%   0.07%   0.01%   None   0.02%
               
  2.18%   1.05%   0.92%   0.96%   0.92%   1.18%   1.67%   0.93%
  N/A   1.80%   1.67%   1.71%   1.52%   1.93%   N/A   1.68%
  2.93%   1.80%   1.67%   1.70%   1.67%   1.93%   2.42%   1.68%
  2.43%   1.29%   1.17%   N/A   1.17%   N/A   1.92%   1.18%
    1.93%   0.79%   0.67%   N/A   0.67%   0.93%   1.42%   0.68%
               
  0.43%     0.04%   0.04%   0.05%   0.31%   0.57%   0.01%
  N/A     0.04%   0.04%   0.05%   0.31%   N/A   0.01%
  0.43%     0.04%   0.04%   0.05%   0.31%   0.57%   0.01%
  0.43%     0.04%   N/A   0.05%   N/A   0.57%   0.01%
    0.43%     0.04%   N/A   0.05%   0.31%   0.57%   0.01%
               
  1.75%   1.05%   0.88%   0.92%   0.87%   0.87%   1.10%   0.92%
  N/A   1.80%   1.63%   1.67%   1.47%   1.62%   N/A   1.67%
  2.50%   1.80%   1.63%   1.66%   1.62%   1.62%   1.85%   1.67%
  2.00%   1.29%   1.13%   N/A   1.12%   N/A   1.35%   1.17%
    1.50%   0.79%   0.63%   N/A   0.62%   0.62%   0.85%   0.67%

 

5 Because Class R is a new share class, the expense information in the table for Class R shares is estimated and reflects the Class R shares’ anticipated expenses for the current fiscal year.

 

6 “Acquired Fund Fees and Expenses” includes all fees and expenses associated with investments in investment companies, including ETFs and the GE Money Market Fund, which serves as the cash sweep vehicle for each Fund effective on or about March 17, 2008. The amounts shown in the table above have been restated from the fiscal year ended September 30, 2007 to reflect estimated fees anticipated to be incurred in connection with each Fund’s investment in the GE Money Market Fund and are based on each Fund’s average monthly cash positions during the most recent fiscal year. Amounts less than 0.01% are shown as dashes (—) in the above table but are included in “Other Expenses.”

 

7 GE Asset Management has entered into a contractual arrangement with each of the Funds to limit “Other Expenses” of each class of those Funds on an annualized basis at or below a specified amount and are given as follows: GE U.S. Equity Fund — 0.50%, GE Core Value Equity Fund — 0.37%, GE Small-Cap Equity Fund — 0.75%, GE Global Equity Fund — 0.75%, GE International Equity Fund — 0.29%, GE Premier Growth Equity Fund — 0.50%, GE Fixed Income Fund — 0.30%, GE Government Securities Fund — 0.30%, GE Short-Term Government Fund — 0.30%, GE Tax-Exempt Fund — 0.27% and GE Strategic Investment Fund — 0.40%, such limits to be effective through January 29, 2009; GE Emerging Markets Equity Fund — 0.45% and GE High Yield Fund — 0.25%, such limits to be effective through January 29, 2010. Expenses borne by GE Asset Management pursuant to the agreement may be reimbursed by the Funds up to three years from the date the expense was incurred. A reimbursement payment will not be made if it would cause a Fund to exceed its expense limit. This agreement can only be changed with the approval of the GE Funds’ Board of Trustees and GE Asset Management. In addition, GE Asset Management will waive a portion of its management fee for each affiliated non-money market Fund in an amount equal to the management fees paid to the GE Money Market Fund on its cash holdings invested in the GE Money Market Fund, if any. Amounts less than 0.01% are shown as dashes (—) in the table above.

 


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40

 

GE Funds

Prospectus

Fund Expenses

    

 

 

Annual fund operating expenses are deducted from a Fund’s assets and are reflected in the Fund’s share price and dividends.

 

The figures below show actual expenses for the Retail Class shares during the fiscal period ended September 30, 2007.

     

Annual Fund

Operating

Expenses

(as a percentage of

average net assets)

 

  GE Money Market Fund    
Management Fees:1    
Retail Class   0.25%  

Institutional Class

  0.25%    
Distribution and Service (12b-1) Fees:    
Retail Class   None  

Institutional Class

  None    
Other Expenses:2    
Retail Class   0.15%  

Institutional Class3

  0.15%    
Total Annual Fund Operating Expenses:    
Retail Class   0.40%  

Institutional Class

  0.40%    
Expenses Waived or Reimbursed by the Adviser:4    
Retail Class   None  

Institutional Class

  None    
Net Annual Fund Operating Expenses:    
Retail Class   0.40%  

Institutional Class

  0.40%    

 

1 The nature of the services provided to, and the advisory and administration fees paid by the Fund are described under “About the Investment Adviser.”

 

2 “Other Expenses” include all operating expenses of the Fund except Management Fees. Expenses, other than those incurred by the Fund, are allocated pro rata among the Funds and share classes based on net assets. Such expenses may include legal fees, printing costs and costs associated with the independent trustees. Fund specific expenses, such as custodial fees, registration fees and auditing fees, are allocated to the GE Money Market Fund and pro rata based on assets across share classes. Certain class specific expenses such as the transfer agent fees, are allocated to the specific share class that incurs such expense. Fund specific expenses may also include costs of sub-transfer agent or similar services provided by Authorized Firms and networking fees for Authorized Firms’ clients’ accounts. Other expense allocation methodologies may result in different expense ratios.

3 Because the Institutional Class is a new share class, the expense information in the table for the Institutional Class shares is estimated and reflects the Institutional Class shares’ anticipated expenses for the current fiscal year.

 

4 GE Asset Management has entered into a contractual arrangement with the GE Money Market Fund to limit “Other Expenses” of each class of the GE Money Market Fund on an annualized basis at or below 0.25% through January 29, 2009. Expenses borne by GE Asset Management pursuant to the agreement may be reimbursed by the GE Money Market Fund up to three years from the date the expense was incurred. A reimbursement payment will not be made if it would cause the GE Money Market Fund to exceed its expense limit. This agreement can only be changed with the approval of the GE Funds’ Board of Trustees and GE Asset Management. Amounts less than 0.01% are shown as dashes (—) in the table above.

 


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42

 

GE Funds

Prospectus

     Fund Expenses

 

The Impact of Fund Expenses

 

The following examples are intended to help you compare the cost of investing in a Fund with the cost of investing in

other mutual funds. Although actual costs may be higher or lower, you would pay the following expenses on a $10,000 investment, assuming a 5% annual return and that each Fund’s operating expenses remain the same.

 

Examples†

 

     You would pay the following
expenses on a $10,000 investment,
assuming redemption:
     You would pay the following
expenses on a $10,000 investment,
assuming no redemption:
      1 Year    3 Years    5 Years    10 Years*      1 Year    3 Years    5 Years    10 Years*

GE U.S. Equity Fund:

                         
Class A    $ 651    $ 814    $ 991    $ 1,503      $ 651    $ 814    $ 991    $ 1,503
Class B    $ 557    $ 688    $ 843    $ 1,454      $ 157    $ 488    $ 843    $ 1,454
Class C    $ 257    $ 488    $ 842    $ 1,841      $ 157    $ 488    $ 842    $ 1,841
Class R    $ 106    $ 333    $ 577    $ 1,278      $ 106    $ 333    $ 577    $ 1,278
Class Y    $ 55    $ 175    $ 305    $ 684      $ 55    $ 175    $ 305    $ 684

GE Core Value Equity Fund:

                         
Class A    $ 688    $ 948    $ 1,228    $ 2,023      $ 688    $ 948    $ 1,228    $ 2,023
Class B    $ 596    $ 827    $ 1,085    $ 1,982      $ 196    $ 627    $ 1,085    $ 1,982
Class C    $ 296    $ 627    $ 1,085    $ 2,352      $ 196    $ 627    $ 1,085    $ 2,352
Class R    $ 146    $ 474    $ 826    $ 1,819      $ 146    $ 474    $ 826    $ 1,819
Class Y    $ 95    $ 319    $ 561    $ 1,254      $ 95    $ 319    $ 561    $ 1,254

GE Small-Cap Equity Fund:

                         
Class A    $ 703    $ 973    $ 1,263    $ 2,087      $ 703    $ 973    $ 1,263    $ 2,087
Class B    $ 611    $ 852    $ 1,119    $ 2,045      $ 211    $ 652    $ 1,119    $ 2,045
Class C    $ 311    $ 652    $ 1,119    $ 2,412      $ 211    $ 652    $ 1,119    $ 2,412
Class R    $ 161    $ 499    $ 861    $ 1,880      $ 161    $ 499    $ 861    $ 1,880
Class Y    $ 110    $ 344    $ 596    $ 1,319      $ 110    $ 344    $ 596    $ 1,319

GE Global Equity Fund:

                         
Class A    $ 714    $ 1,008    $ 1,323    $ 2,214      $ 714    $ 1,008    $ 1,323    $ 2,214
Class B    $ 623    $ 888    $ 1,180    $ 2,173      $ 223    $ 688    $ 1,180    $ 2,173
Class C    $ 323    $ 688    $ 1,179    $ 2,533      $ 223    $ 688    $ 1,179    $ 2,533
Class R    $ 173    $ 536    $ 924    $ 2,011      $ 173    $ 536    $ 924    $ 2,011
Class Y    $ 122    $ 381    $ 661    $ 1,457      $ 122    $ 381    $ 661    $ 1,457

GE International Equity Fund:

                         
Class A    $ 705    $ 1,018    $ 1,354    $ 2,300      $ 705    $ 1,018    $ 1,354    $ 2,300
Class B    $ 613    $ 901    $ 1,215    $ 2,263      $ 213    $ 701    $ 1,215    $ 2,263
Class C    $ 313    $ 700    $ 1,214    $ 2,624      $ 213    $ 700    $ 1,214    $ 2,624
Class R    $ 163    $ 548    $ 957    $ 2,102      $ 163    $ 548    $ 957    $ 2,102
Class Y    $ 112    $ 393    $ 695    $ 1,553      $ 112    $ 393    $ 695    $ 1,553

GE Emerging Markets Equity Fund:

                         
Class A    $ 824    $ 1,256    $ 1,713    $ 2,974      $ 824    $ 1,256    $ 1,713    $ 2,974
Class C    $ 353    $ 866    $ 1,504    $ 3,220      $ 253    $ 866    $ 1,504    $ 3,220
Class R    $ 203    $ 716    $ 1,256    $ 2,732      $ 203    $ 716    $ 1,256    $ 2,732
Class Y    $ 153    $ 564    $ 1,001    $ 2,217      $ 153    $ 564    $ 1,001    $ 2,217

GE Premier Growth Equity Fund:

                         
Class A    $ 675    $ 888    $ 1,118    $ 1,779      $ 675    $ 888    $ 1,118    $ 1,779
Class B    $ 582    $ 764    $ 972    $ 1,732      $ 182    $ 564    $ 972    $ 1,732
Class C    $ 282    $ 565    $ 972    $ 2,111      $ 182    $ 565    $ 972    $ 2,111
Class R    $ 131    $ 408    $ 706    $ 1,555      $ 131    $ 408    $ 706    $ 1,555
Class Y    $ 80    $ 251    $ 438    $ 976      $ 80    $ 251    $ 438    $ 976

 

† The expenses shown above for each Fund reflect GE Asset Management’s contractual agreement to reduce or otherwise limit the Fund’s expenses for the first year of each period noted. For certain Class A share investors, expenses would be different in cases where the sales charge is waived and in cases where a 1% CDSC is imposed. For more information about sales charge waivers and the imposition of a 1% CDSC on Class A shares, please see “How to Invest — Choosing a Share Class” later in this Prospectus.

 


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43

 

 

The examples also assume that you either redeemed all of your shares at the end of each period shown or you did not redeem your shares.

 

 

     You would pay the following
expenses on a $10,000 investment,
assuming redemption:
     You would pay the following
expenses on a $10,000 investment,
assuming no redemption:
      1 Year    3 Years    5 Years    10 Years*      1 Year    3 Years    5 Years    10 Years*

GE Fixed Income Fund:

                         
Class A    $ 511    $ 702    $ 908    $ 1,502      $ 511    $ 702    $ 908    $ 1,502
Class B    $ 466    $ 723    $ 904    $ 1,588      $ 166    $ 523    $ 904    $ 1,588
Class C    $ 266    $ 523    $ 904    $ 1,973      $ 166    $ 523    $ 904    $ 1,973
Class R    $ 115    $ 367    $ 639    $ 1,414      $ 115    $ 367    $ 639    $ 1,414
Class Y    $ 65    $ 210    $ 368    $ 827      $ 65    $ 210    $ 368    $ 827

GE Government Securities Fund:

                         
Class A    $ 517    $ 714    $ 929    $ 1,547      $ 517    $ 714    $ 929    $ 1,547
Class B    $ 470    $ 735    $ 924    $ 1,633      $ 170    $ 535    $ 924    $ 1,633
Class C    $ 269    $ 533    $ 921    $ 2,009      $ 169    $ 533    $ 921    $ 2,009

GE Short-Term Government Fund:

                         
Class A    $ 337    $ 531    $ 742    $ 1,347      $ 337    $ 531    $ 742    $ 1,347
Class B    $ 450    $ 676    $ 825    $ 1,498      $ 150    $ 476    $ 825    $ 1,498
Class C    $ 265    $ 522    $ 903    $ 1,973      $ 165    $ 522    $ 903    $ 1,973
Class R    $ 115    $ 367    $ 638    $ 1,414      $ 115    $ 367    $ 638    $ 1,414
Class Y    $ 64    $ 209    $ 368    $ 828      $ 64    $ 209    $ 368    $ 828

GE Tax-Exempt Fund:

                         
Class A    $ 510    $ 755    $ 1,019    $ 1,773      $ 510    $ 755    $ 1,019    $ 1,773
Class B    $ 465    $ 778    $ 1,016    $ 1,858      $ 165    $ 578    $ 1,016    $ 1,858
Class C    $ 265    $ 578    $ 1,016    $ 2,235      $ 165    $ 578    $ 1,016    $ 2,235
Class Y    $ 64    $ 267    $ 486    $ 1,119      $ 64    $ 267    $ 486    $ 1,119

GE High Yield Fund:

                         
Class A    $ 789    $ 1,124    $ 1,482    $ 2,485      $ 789    $ 1,124    $ 1,482    $ 2,485
Class C    $ 288    $ 701    $ 1,240    $ 2,715      $ 188    $ 701    $ 1,240    $ 2,715
Class R    $ 137    $ 548    $ 985    $ 2,199      $ 137    $ 548    $ 985    $ 2,199
Class Y    $ 87    $ 394    $ 723    $ 1,655      $ 87    $ 394    $ 723    $ 1,655

GE Strategic Investment Fund:

                         
Class A    $ 665    $ 854    $ 1,059    $ 1,649      $ 665    $ 854    $ 1,059    $ 1,649
Class B    $ 570    $ 728    $ 910    $ 1,600      $ 170    $ 528    $ 910    $ 1,600
Class C    $ 270    $ 528    $ 910    $ 1,982      $ 170    $ 528    $ 910    $ 1,982
Class R    $ 119    $ 373    $ 647    $ 1,429      $ 119    $ 373    $ 647    $ 1,429
Class Y    $ 68    $ 216    $ 377    $ 843      $ 68    $ 216    $ 377    $ 843

GE Money Market Fund

                         
Retail Class    $ 40    $ 127    $ 222    $ 499      $ 40    $ 127    $ 222    $ 499
Institutional Class    $ 40    $ 127    $ 222    $ 499      $ 40    $ 127    $ 222    $ 499

 

* Expenses for Class B shares shown above reflect the conversion of Class B shares into Class A shares after six years (eight years for Class B shares originally purchased through the Investors Trust Funds).

 


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Risks and Disclosure

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Important Definitions

 

This section defines important terms that may be unfamiliar to an investor reading about the GE Funds:

 

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.

 

Asset-backed securities represent a participation in, or are secured by and payable from, a stream of payments generated by particular assets, such as commercial paper, credit card receivables, auto loans or home-equity loans.

 

Bank deposits are cash, checks or drafts deposited in a financial institution for credit to a customer’s account. Banks differentiate between demand deposits (checking accounts on which the customer may draw) and time deposits, which pay interest and have a specified maturity or require 30 days’ notice before withdrawal.

 

Cash and cash equivalents are highly liquid and highly rated instruments, such as commercial paper and bank deposits.

 

Certificates of deposit include short-term debt securities issued by banks.

 

Commercial paper includes short-term debt securities issued by banks, corporations and other borrowers.

 

Common stock is a class of security representing equity ownership in a corporation. Holders of common stock have the right to elect directors and collect dividends. Common stock claims are subordinate to bondholder claims, preferred stockholders, and general creditors.

 

Convertible securities may be debt or equity securities that pay interest or dividends or are sold at a discount and that may be converted on specified terms into the stock of the issuer.

 

Corporate bonds are debt securities issued by companies.

 

Debt obligations of supranational agencies are obligations of multi-jurisdictional agencies that operate across national borders (e.g., the World Bank).

 

Debt securities are bonds and other securities that are used by issuers to borrow money from investors. Holders of debt securities have a higher priority claim to assets than do equity holders. Typically, the debt issuer pays the investor a fixed, variable or floating rate of interest and must repay the borrowed amount at maturity. Some debt securities, such as zero coupon obligations, are sold at a discount from their face values instead of paying interest.

 

Depositary receipts represent interests in an account at a bank or trust company which holds equity securities. These interests may include American Depositary Receipts (held at U.S. banks and traded in the United States), European Depositary Receipts, Global Depositary Receipts or other similar instruments.

 

Derivative instruments are instruments or contracts whose values are based on the performance of an underlying financial asset, currency or index and include futures contracts (on single stocks, on indices, currencies or bonds), options (on stocks, indices, currencies, futures contracts or bonds), forward currency transactions, swaps (including interest rate, currency, index and credit default swaps), interest only and principal only debt securities, certain mortgage-backed securities like collateralized mortgage obligations (CMOs), and structured and indexed securities.

 

Duration represents a mathematical calculation of the average life of a bond (or portfolio of bonds) based on cash flows that serves as a useful measure of the security’s sensitivity to changes in interest rates. Each year of duration approximates an expected one percent change in the bond’s price for every one percent change in the interest rate.

 

Equitized cash: Is a technique that uses futures or other instruments to gain equity market exposure for holdings of cash and cash equiv-

 


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alents and/or money market instruments. The use of futures or other instruments would be subject to other applicable restrictions on the Fund’s investments.

 

Equity securities may include common stocks, preferred securities, depositary receipts, convertible securities and rights and warrants of U.S. and foreign companies. Stocks represent an ownership interest in a corporation.

 

Eurodollar deposits are deposits issued in U.S. dollars by foreign banks and foreign branches of U.S. banks.

 

Floating and variable rate instruments are securities with floating or variable rates of interest or dividend payments.

 

Foreign debt securities are issued by foreign corporations or governments. They may include the following:

n Eurodollar Bonds, which are dollar denominated securities issued outside the U.S. by foreign corporations and financial institutions and by foreign branches of U.S. corporations and financial institutions

n Yankee Bonds, which are dollar denominated securities issued by foreign issuers in the U.S.

n Debt securities denominated in currencies other than U.S. dollars.

 

Foreign securities include interests in or obligations of entities located outside the United States. The determination of where an issuer of a security is located will be made by reference to the country in which the issuer (a) is organized, (b) derives at least 50% of its revenues or profits from goods produced or sold, investments made or services performed, (c) has at least 50% of its assets situated, or (d) has the principal trading market for its securities. Foreign securities may be denominated in non-U.S. currencies and traded outside the United States or may be in the form of depositary receipts.

 

Forward currency transactions involve agreements to exchange one currency for another at a future date.

 

Futures contracts are agreements to buy or sell a specific amount of a commodity, financial instrument or index at a particular price and future date. Options on futures contracts give the purchaser the right, in return for the premium paid, to assume a position in a futures contract at a specified exercise price at any time prior to the expiration date of the option.

 

Government stripped mortgage-related securities are mortgage-backed securities that have been separated into their interest and principal components. They represent interests in distributions of interest on or principal underlying mortgage-backed securities.

 

Growth investing involves buying stocks with above-average growth rates. Typically, growth stocks are the stocks of faster growing companies in more rapidly growing sectors of the economy. Generally, growth stock valuation levels will be higher than those of value stocks and the market averages.

 

High yield securities are debt securities, preferred securities and convertible securities of corporations rated Ba through C by Moody’s or BB through D by S&P (or comparably rated by another nationally recognized statistical rating organization), or, if not rated by Moody’s or S&P, are considered by portfolio management to be of similar quality. High yield securities include bonds rated below investment-grade, sometimes called “junk bonds,” and are considered speculative with respect to capacity to pay interest and repay principal in accordance with its terms. High yield securities generally entail more credit risk than higher-rated securities.

 

Illiquid investments are securities or other instruments that cannot be sold within seven days for a price approximately equal to the value it currently has on a Fund’s books. Illiquid investments may include repurchase agreements maturing in more than seven days, swaps, time deposits with a notice or demand period of more than seven days, certain over-the-counter option contracts (and segregated

 


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assets used to cover such options), participation interests in loans, and certain restricted securities.

 

Industrial development bonds are considered municipal bonds if the interest paid is exempt from federal income tax. They are issued by or on behalf of public authorities to raise money to finance various privately operated facilities for business and manufacturing, housing, sports, and pollution control. These bonds may also be used to finance public facilities such as airports, mass transit systems, ports, and parking. The payment of the principal and interest on such bonds is dependent solely on the ability of the facility’s user to meet its financial obligations and the pledge, if any, of real and personal property financed by the bond as security for those payments.

 

Investment-grade debt securities are rated Baa or better by Moody’s and BBB or better by S&P (or comparably rated by another nationally recognized statistical rating organization), or, if not rated, are considered by portfolio management to be of similar quality to such securities. Securities rated in the fourth highest grade have some speculative elements.

 

LB 10-Year Muni Index is an unmanaged index comprised of investment-grade, fixed rate securities with maturities of at least eight years and less than twelve years.

 

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

 

LB Government Bond Index is a market value-weighted index of U.S. Government and government agency securities (other than mortgage securities) with maturities of one year or more.

 

LB 1-3 Year Government Bond Index is a market value-weighted performance benchmark for government and corporate fixed-rate debt issues with maturities between one and three years.

 

Lehman Brothers U.S. Corporate High-Yield — 3% Issuer Capped Index is an index that covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. No one issuer comprises more than 3% of this Index.

 

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

 

MSCI® Emerging Markets Free Index is a float-adjusted market capitalization index designed to measure equity market performance in global equity markets.

 

MSCIW 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.

 

Maturity represents the date on which a debt security matures or when the issuer must pay back the principal amount of the security.

 

Money market instruments are short-term debt securities of the U.S. Government, banks, corporations and other entities. Each Fund may invest in money market instruments either directly or indirectly through investments in the GE Money Market Fund.

 

Mortgage-backed securities include securities issued by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), other government agencies and private issuers. They may also include collateralized mortgage obligations (CMOs), which are derivative instruments that are fully collateralized by a portfolio of mortgages or mortgage-related securities.

 


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Mortgage dollar rolls are transactions involving the sale of a mortgage-backed security with a simultaneous contract (with the purchaser) to buy similar, but not identical, securities at a future date.

 

Municipal obligations are debt securities issued by or on behalf of states, territories and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, or multi-state agencies or authorities that pay interest exempt from regular federal income taxes and, in some cases, from federal alternative minimum taxes. They include: (i) municipal leases; (ii) participation interests in municipal obligations, which are proportionate, undivided interests in municipal obligations; (iii) municipal obligation components, which are municipal obligations that have been divided into two components (one component pays interest at a rate adjusted periodically through an auction process, the second pays the residual rate after the auction rate is deducted from total interest payable); (iv) custodial receipts on municipal obligations, which evidence ownership of future interest payments, principal payments, or both, on certain municipal obligations; (v) tender option bonds; and (vi) industrial development bonds.

 

 

 

Net cash takes into account a Fund’s holdings of cash and cash equivalents and money market instruments as well as any adjustments for equitized cash and other assets and liabilities, such as pending securities settlements and liabilities associated with loans of portfolio securities.

 

Preferred securities are classes of stock that pay dividends at a specified rate. Dividends are paid on preferred stocks before they are paid on common stocks. In addition, preferred stockholders have priority over common stockholders as to the proceeds from the liquidation of a company’s assets.

 

Purchasing and writing options are permitted investment strategies for certain Funds. An option is the right to buy (i.e., a call) or sell (i.e., a put) securities or other interests for a predetermined price on or before a fixed date. A securities index option represents the option holder’s right to obtain from the seller, in cash, a fixed multiple of the amount by which the exercise price exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the securities index on the exercise date. An option on a foreign currency represents the right to buy or sell a particular amount of that currency for a predetermined price on or before a fixed date.

 

Repurchase agreements (repos) are used to invest cash on a short-term basis. A seller (bank or broker-dealer) sells securities, usually government securities, to the Fund, agreeing to buy them back at a designated price and time — usually the next day.

 

Restricted securities (which include Rule 144A securities) may have contractual restrictions on resale, or cannot be sold publicly until registered. Certain restricted securities may be illiquid. Illiquid investments may be difficult or impossible to sell when a Fund wants to sell them at a price at which the Fund values them.

 

Reverse repurchase agreements involve selling securities held and concurrently agreeing to repurchase the same securities at a specified price and future date.

 

Rights represent a preemptive right of stockholders to purchase additional shares of a stock at the time of a new issuance, before the stock is offered to the general public, allowing the stockholder to retain the same ownership percentage after the new stock offering.

 

Rule 144A securities are restricted securities that may be sold to certain institutional purchasers under Rule 144A.

 

Russell 2000 Index is a market capitalization-weighted index consisting of 2,000 of the smallest U.S.-domiciled publicly traded common stocks that are included in the Russell

 


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3000® Index. The Russell 3000® Index comprises the 3,000 largest U.S. domiciled companies.

 

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

 

Short sales against the box involve selling short securities actually owned or otherwise covered at all times during the period the short position is open.

 

Structured and indexed securities are securities whose principal and/or interest rate is determined by reference to changes in the value of one or more specific currencies, interest rates, commodities, indices or other financial indicators, but do not include securities issued by other investment companies.

 

Tender option bonds are long-term municipal obligations sold by a bank or other financial institution subject to a demand feature that gives the purchaser the right to sell them to the bank or other financial institution at par plus accrued interest at designated times (tender option). The interest rate on the bonds is typically reset at the end of the applicable interval in an attempt to cause the bonds to have a market value that approximates their par value, plus accrued interest. The tender option may not be exercisable in the event of a default on, or significant downgrading of, the underlying municipal obligation, and may be subject to other conditions. Therefore, a fund’s ability to exercise the tender option will be affected by the credit standing of both the bank or other financial institution involved and the issuer of the underlying securities.

 

U.S. Government securities are securities that are issued and guaranteed as to principal and interest by the U.S. Government or one of its agencies or instrumentalities. Some U.S. Government securities are backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills and notes and obligations of the Government National Mortgage Association (Ginnie Mae). Other U.S. Government securities are backed by the issuer’s right to borrow from the U.S. Treasury, such as Federal National Mortgage Association (Fannie Mae) securities, while some are backed only by the credit of the issuing organization, such as obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac). All U.S. Government securities are considered highly creditworthy. Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government.

 

Value investing involves buying stocks that are out of favor and/or undervalued in comparison to their peers and/or their prospects for growth. Generally, prices of value stocks are lower than those of growth stocks.

 

Variable rate securities, which include floating and variable rate instruments, are securities that carry interest rates that fluctuate or may be adjusted periodically to market rates. Interest rate adjustments could increase or decrease the income generated by the securities.

 

Various investment techniques are utilized by a Fund to increase or decrease its exposure to changing security prices, interest rates, currency exchange rates, commodity prices or other factors that affect security values. For certain Funds, these techniques may involve derivative instruments and transactions such as buying and selling options and futures contracts, entering into forward currency transactions or swap agreements or contracts and purchasing indexed securities. These techniques are designed to adjust the risk and return characteristics of a Fund’s portfolio of investments and are not used for leverage. No Fund is under any obligation to use any of these techniques at any given time or under any particular economic condition. To the extent that a Fund employs these techniques, the Fund would be subject to derivative instruments risk.

 

Warrants are securities that are usually issued together with a bond or preferred securities, that permit the

 


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holder to buy a proportionate amount of common stock at a specified price that is usually higher than the stock price at the time of issue.

 

Weighted average maturity represents the length of time in days or years until the average security in a money market or income fund will mature or be redeemed by its issuer. The average maturity is weighted according to the dollar amounts invested in the various securities in the fund. This measure indicates a money market fund or an income fund’s sensitivity to changes in interest rates. In general, the longer a fund’s weighted average maturity, the more its share price will fluctuate in response to changing interest rates.

 

When-issued and delayed delivery securities are securities that are purchased or sold for delivery and payment at a future date, i.e., beyond the normal settlement date.

 

Zero coupon obligations are securities that pay no interest to their holders prior to maturity. Instead, interest is paid in a lump sum at maturity. They are purchased at a discount from par value, and generally are more volatile than other fixed income securities.

 


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More on Investment Strategies

 

In addition to each Fund’s principal investment strategies described earlier in this Prospectus, a Fund is permitted to use other securities, investment strategies and techniques in pursuit of its investment objective. No Fund is under any obligation to use any of these techniques or strategies at any given time or under any particular economic conditions. Certain instruments and investment strategies may expose the Funds to other risks and considerations, which are discussed later in this Prospectus and in the Funds’ SAI.

 

Cash and Temporary Defensive Positions: Under normal circumstances, each Fund may hold cash and cash equivalents and/or money market instruments, which may be considered on a net cash basis: (i) pending investment, (ii) for investment purposes, (iii) for cash management purposes, (iv) to meet redemptions, and (v) to meet operating expenses. A Fund that invests in equity securities may equitize cash in order to gain general equity market exposure with respect to such holdings of cash and cash equivalents and/or money market instruments.

 

A Fund may from time to time take temporary defensive positions when the portfolio manager believes that adverse market, economic, political or other conditions exist. In these circumstances, the portfolio manager may (x) without limit hold cash and cash equivalents and/or invest in money market instruments, or (y) restrict the securities markets in which a Fund’s assets are invested by investing those assets in securities markets deemed to be conservative in light of the Fund’s investment objective and strategies.

 

In addition, a Fund may hold cash and cash equivalents and/or invest in money market instruments under circumstances where the liquidation of a Fund has been approved by the Trustees, and therefore investments in accordance with the Fund’s investment objective and policies would no longer be appropriate.

 

Each Fund may invest in money market instruments either directly or indirectly through investment in the GE Money Market Fund. GE Asset Management will waive a portion of its management fee for each affiliated non-money market Fund in an amount equal to the management fees paid to the GE Money Market Fund on its cash holdings invested in the GE Money Market Fund, if any. Before using the GE Money Market Fund for this purpose, certain Funds may have invested a portion of their cash in the GEI Investment Fund (formerly GEI Short-Term Investment Fund), which is a privately offered pooled investment trust managed by GE Asset Management. GE Asset Management charges on advisory fee to the GEI Investment Fund. Those Funds may continue to hold a small interest in the GEI Investment Fund.

 

To the extent that a Fund, other than the GE Money Market Fund, holds cash and cash equivalents or investments in money market instruments, it may not achieve its investment objective.

 

The following tables summarize some of the investment techniques that may be employed by a Fund. Certain techniques and limitations may be changed at the discretion of GE Asset Management and subject to the approval of the Fund’s Board of Trustees. Percentage figures refer to the percentage of a Fund’s assets that may be invested in accordance with the indicated technique.

 


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    Borrowing    Repurchase

Agreements

   Reverse

Repurchase

Agreements

   Restricted and

Illiquid

Investments

   Structured and

Indexed

Securities

   Purchasing and

Writing

Securities

Options

   Purchasing and

Writing

Securities

Index

Options

GE U.S. Equity Fund

  33 1/3%    Yes    No    Yes    No    Yes    Yes

GE Core Value Equity Fund

  33 1/3%    Yes    Yes    Yes    No    Yes    Yes

GE Small-Cap Equity Fund

  33 1/3%    Yes    Yes    Yes    No    Yes    Yes

GE Global Equity Fund

  33 1/3%    Yes    No    Yes    No    Yes    Yes

GE International Equity Fund

  33 1/3%    Yes    No    Yes    No    Yes    Yes

GE Emerging Markets Equity Fund

  33 1/3%    Yes    Yes    Yes    Yes    Yes    Yes

GE Premier Growth Equity Fund

  33 1/3%    Yes    No    Yes    No    Yes    Yes

GE Fixed Income Fund

  33 1/3%    Yes    No    Yes    Yes    Yes    Yes

GE Government Securities Fund

  33 1/3%    Yes    Yes    Yes    Yes    Yes    Yes

GE Short-Term Government Fund

  33 1/3%    Yes    No    Yes    Yes    Yes    Yes

GE Tax-Exempt Fund

  10%    Yes    Yes    Yes    No    Yes    Yes

GE High Yield Fund

  33 1/3%    Yes    Yes    Yes    Yes    Yes    Yes

GE Strategic Investment Fund

  33 1/3%    Yes    No    Yes    Yes    Yes    Yes

GE Money Market Fund

  33 1/3%    Yes    Yes    No    No    No    No

 


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     Futures Contracts and Options on Futures Contracts    Forward Currency Transactions    Options on Foreign Currencies    Maximum Investment in Debt Securities    Maximum Investment in Below-Investment Grade Debt Securities (High Yield Securities)    Maximum Investment in Foreign Securities     When-Issued and Delayed Delivery Securities

GE U.S. Equity Fund

   Yes    Yes    Yes    20%    5%    15% *   Yes

GE Core Value Equity Fund

   Yes    Yes    Yes    20%    5%    25% *   Yes

GE Small-Cap Equity Fund

   No    No    No    20%    10%    10% *   Yes

GE Global Equity Fund

   Yes    Yes    Yes    20%    5%    100%     Yes

GE International Equity Fund

   Yes    Yes    Yes    20%    5%    100%     Yes

GE Emerging Markets Equity Fund

   Yes    Yes    Yes    20%    10%    100%     Yes

GE Premier Growth Equity Fund

   Yes    Yes    No    20%    5%    25% *   Yes

GE Fixed Income Fund

   Yes    Yes    Yes    100% (maximum of 25% in BBB by S&P or Baa by Moody’s or equivalent)    20% in BB or B by S&P or Ba or B by Moody’s or below or of similar quality    35% *   Yes

GE Government Securities Fund

   Yes    Yes    Yes    100% (maximum of 10% in BBB by S&P or Baa by Moody’s or equivalent; maximum of 25% in A or lower by S&P, Moody’s or equivalent)    None    35% *   Yes

GE Short-Term Government Fund

   Yes    Yes    Yes    100%    None    35% *   Yes

GE Tax-Exempt Fund

   Yes    No    No    100% (maximum of 10% in BBB by S&P or Baa by Moody’s or equivalent)    5% in debt downgraded below investment grade subsequent to purchase    None     Yes

GE High Yield Fund

   Yes    Yes    Yes    100%    100%    35%*     Yes

GE Strategic Investment Fund

   Yes    Yes    Yes    100% (maximum of 25% in BBB by S&P or Baa by Moody’s or equivalent)    20% in BB or B by S&P or Ba or B by Moody’s or below or of similar quality    30% *   Yes

GE Money Market Fund

   No    No    No    100%    None    25% *   Yes

 

* This limitation excludes American Depositary Receipts and securities of a foreign issuer with a class of securities registered with the Securities and Exchange Commission (SEC) and listed on a U.S. national securities exchange.

 


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    Lending Portfolio Securities    Rule 144A Securities    Debt Obligations of Supranational Agencies    Depositary Receipts    Securities of Other Investment Funds    Municipal Leases      Floating and Variable Rate Instruments     Participation Interests in Municipal Obligations

GE U.S. Equity Fund

  Yes    Yes    Yes    Yes    Yes    No      No *   No

GE Core Value Equity Fund

  Yes    Yes    Yes    Yes    Yes    No      No *   No

GE Small-Cap Equity Fund

  Yes    Yes    Yes    Yes    Yes    No      No *   No

GE Global Equity Fund

  Yes    Yes    Yes    Yes    Yes    No      No *   No

GE International Equity Fund

  Yes    Yes    Yes    Yes    Yes    No      No *   No

GE Emerging Markets Equity Fund

  Yes    Yes    Yes    Yes    Yes    No      No*     No

GE Premier Growth Equity Fund

  Yes    Yes    Yes    Yes    Yes    No      No *   No

GE Fixed Income Fund

  Yes    Yes    Yes    Yes    Yes    No      Yes     No

GE Government Securities Fund

  Yes    Yes    Yes    Yes    Yes    No      Yes     No

GE Short-Term Government Fund

  Yes    Yes    Yes    Yes    Yes    No      Yes     No

GE Tax-Exempt Fund

  Yes    Yes    Yes    No    Yes    Yes      Yes     Yes

GE High Yield Fund

  Yes    Yes    Yes    Yes    Yes    No      Yes     No

GE Strategic Investment Fund

  Yes    Yes    Yes    Yes    Yes    Yes      Yes     Yes

GE Money Market Fund

  Yes    Yes    Yes    No    No    No      Yes     No

 

* Excludes commercial paper and notes with variable and floating rates of interest.

 


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    Zero Coupon Obligations    Municipal Obligations Components    Custodial Receipts on Municipal Obligations    Mortgage Related Securities, including CMOs    Government Stripped Mortgage Related Securities    Asset Backed Securities and Receivable-Backed Securities    Mortgage Dollar Rolls    Short Sales Against the Box

GE U.S. Equity Fund

  Yes    No    No    Yes    No    No    No    No

GE Core Value Equity Fund

  No    No    No    Yes    No    No    No    Yes

GE Small-Cap Equity Fund

  No    No    No    Yes    No    No    Yes    Yes

GE Global Equity Fund

  No    No    No    Yes    No    No    No    Yes

GE International Equity Fund

  No    No    No    Yes    No    No    No    Yes

GE Emerging Markets Equity Fund

  No    No    No    Yes    No    No    No    Yes

GE Premier Growth Equity Fund

  No    No    No    Yes    No    No    No    No

GE Fixed Income Fund

  Yes    No    No    Yes    Yes    Yes    Yes    No

GE Government Securities Fund

  Yes    No    No    Yes    Yes    Yes    Yes    Yes

GE Short-Term Government Fund

  Yes    No    No    Yes    Yes    Yes    Yes    No

GE Tax-Exempt Fund

  Yes    Yes    Yes    Yes    No    No    No    Yes

GE High Yield Fund

  Yes    No    No    Yes    Yes    Yes    Yes    Yes

GE Strategic Investment Fund

  Yes    Yes    Yes    Yes    Yes    Yes    Yes    No

GE Money Market Fund

  No    No    No    Yes    No    Yes    No    No

 

 

 


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GE Funds

Prospectus

More on Strategies,

Risks and Disclosure

of Portfolio Holdings

 

More on Risks

 

Like all mutual funds, investing in the GE Funds involves risk factors and special considerations. A GE Fund’s risk is defined primarily by its principal investment strategies, which are described earlier in this Prospectus. Investments in a GE Fund are not insured against loss of principal. As with any mutual fund, there can be no assurance that a GE Fund will achieve its investment objective. Investing in shares of a GE Fund should not be considered a complete investment program. The share value of the GE Equity Funds, GE Income Funds and the GE Strategic Investment Fund will rise and fall. Although the GE Money Market 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.

 

One of your most important investment considerations should be balancing risk and return. Different types of investments tend to respond differently to shifts in the economic and financial environment. So, diversifying your investments among different asset classes — such as stocks, bonds and cash — and within an asset class — such as small-cap and large-cap stocks — may help you to manage risk and achieve the results you need to comfortably reach your financial goals.

 

The primary risks of particular investments are summarized below. For more information about the risks associated with the Funds, please see the SAI, which is incorporated by reference into this Prospectus.

 

Asset-Backed Securities Risk: Asset-backed securities often are subject to more rapid repayment than their stated maturity dates indicate, due to changing economic conditions. To maintain its position in such securities, a Fund may reinvest the reductions in principal amounts resulting from the prepayments. Yields on those reinvested amounts are subject to prevailing market rates. Because prepayments of principal generally increase when rates are falling, a Fund generally has to reinvest proceeds from prepayments at lower rates. Also, because asset-backed securities often are secured by the loans underlying the securities, a Fund may lose money if there are defaults on the loans underlying the securities. Such defaults have become an increasing risk for asset-backed securities that are secured by home-equity loans related to sub-prime mortgage loans, especially in a declining residential real estate market. Investments in asset-backed securities may also be subject to valuation risk.

 

Bond Market Risk: Bond market risk is the risk that the value of debt securities may decline. Bond prices can change daily, sometimes rapidly, in response to issuer activity and general economic and credit market conditions. Bond prices can be volatile and there can be severe limitations in the ability to sell certain bonds, including those that are of higher credit quality, during periods of reduced credit market liquidity such as the one that the market is currently experiencing.

 

Credit Risk: The price of a bond is affected by the issuer’s or counterparty’s credit quality. Changes in an entity’s financial condition and general economic conditions can affect its ability to honor financial obligations and therefore its credit quality. Lower quality bonds are generally more sensitive to these changes than higher quality bonds. Even within securities considered investment grade, differences exist in credit quality and some investment-grade debt securities may have speculative characteristics. A security’s price may be adversely affected by the market’s opinion of the security’s credit quality level even if the issuer or counterparty has suffered no degradation in ability to honor the obligation.

 

Derivative Instruments Risk: A Fund’s use of various investment techniques may involve derivative instruments, such as swaps, options, futures and options on futures. A Fund may, but is not required to, use derivatives as a substitute for taking a long or short position in an underlying asset, to increase returns, or as part of a hedging strategy. A small investment in derivatives could have a potentially

 


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large impact on a Fund’s performance and its rate of income distributions for a particular period of time. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid, subject to counterparty risk and difficult to value. There is also the risk that changes in the value of a derivative held by a Fund may not correlate with a Fund’s other investments, which could impact Fund performance. A Fund may choose not to invest in derivative instruments because they may not be available, may be too costly to be used effectively or may be unable to be used for other reasons.

 

Diversification Risk: Although the GE Premier Growth Equity Fund is a diversified fund, it may invest in securities of a limited number of issuers to achieve a potentially greater investment return than a fund that invests in a larger number of issuers. As a result, price movements of a single issuer’s securities will have a greater impact on this Fund’s net asset value causing it to fluctuate more than that of a more widely diversified fund.

 

Emerging Markets Risk: Emerging market securities bear most foreign exposure risks discussed below. In addition, there are greater risks involved in investing in emerging markets than in developed foreign markets. Specifically, the economic structures in emerging market countries are less diverse and mature than those in developed countries, and their political systems are less stable. Investments in emerging market countries may be affected by national policies that restrict foreign investment. Emerging market countries may have less developed legal structures, and the small size of their securities markets and low trading volumes can make investments illiquid and more volatile than investments in developed countries. As a result, a Fund investing in emerging market countries may be required to establish special custody or other arrangements before investing.

 

Foreign Exposure Risk: Investing in foreign securities, including depositary receipts, or securities of U.S. entities with significant foreign operations, involves additional risks which can affect a Fund’s performance. Foreign markets, particularly emerging markets, may be less liquid, more volatile and subject to less government supervision than U.S. markets. There may be difficulties in enforcing contractual obligations, and it may take more time for transactions to clear and settle in foreign countries than in the U.S. Less information may be available about foreign issuers. The costs of buying and selling foreign securities, including tax, brokerage and custody costs, generally are higher than those involving domestic transactions. The specific risks of investing in foreign securities include valuation risk and:

 

n Currency Risk: The values of foreign investments may be affected by changes in currency rates or exchange control regulations. If the local currency gains strength against the U.S. dollar, the value of the foreign security increases in U.S. dollar terms. Conversely, if the local currency weakens against the U.S. dollar, the value of the foreign security declines in U.S. dollar terms. U.S. dollar-denominated securities of foreign issuers, including depositary receipts, also are subject to currency risk based on their related investments.

n Political/Economic Risk: Changes in economic, tax or foreign investment policies, government stability, war or other political or economic actions may have an adverse effect on a Fund’s foreign investments.

n Regulatory Risk: Foreign companies often are not subject to uniform accounting, auditing and financial reporting standards or to other regulatory practices and requirements common to U.S. companies.

 

Government Stripped Mortgage-Related Securities Risk: In addition to prepayment risk, the yields on government stripped mortgage-related securities are extremely sensitive to prepayment on the underlying mortgage loans. A rapid rate of principal payments will reduce the yield to maturity on interest only mortgage-related securities and increase the yield to maturity on principal only mortgage-related

 


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GE Funds

Prospectus

More on Strategies, Risks and Disclosure of Portfolio Holdings

 

 

securities. If the underlying mortgage loans experience greater-than anticipated principal payments, a Fund may not recoup fully its initial investment in interest only mortgage-related securities. The market for such securities may be volatile and they are considered illiquid unless certain conditions are met. Investments in government stripped mortgage-related securities may also be subject to valuation risk.

 

High Yield Securities Risk: Below investment-grade securities, sometimes called “junk bonds,” are considered speculative. These securities have greater risk of default than higher rated securities. The market value of below investment-grade securities is more sensitive to individual corporate developments and economic changes than higher rated securities. Adverse publicity and investor perceptions, whether or not accurate, regarding below investment-grade securities may depress prices and diminish liquidity for such securities. The market for below investment-grade securities may be less active than for higher rated securities, which can adversely affect the price at which these securities may be sold. Less active markets may diminish a Fund’s ability to obtain accurate market quotations when valuing the portfolio securities and thereby give rise to valuation risk. In addition, a Fund may incur additional expenses if a holding defaults and a Fund has to seek recovery of its principal investment. Below investment-grade securities may also present risks based on payment expectations. For example, these securities may contain redemption or call provisions. If an issuer exercises these provisions in a declining interest rate market, the Fund would have to replace the security with a lower yielding security resulting in a decreased return for investors.

 

Illiquid Investments Risk: Illiquid investments may be difficult to resell at approximately the price they are valued in the ordinary course of business in seven days or less. When investments cannot be sold readily at the desired time or price, a Fund may have to accept a lower price, may not be able to sell the investment at all, or may be forced to forego other investment opportunities, all of which may have an impact on returns of the Fund. Illiquid investments also may be subject to valuation risk.

 

Initial Public Offerings Risk: Certain Funds may purchase shares issued as part of, or a short period after, a company’s initial public offering (IPOs), and may dispose of those shares shortly after their acquisition. The purchase of shares issued in IPOs exposes a Fund to the risks associated with organizations that have little operating history as public companies, as well as to the risks associated with the sectors of the market in which the issuer operates. The market for IPO shares has been volatile, and share prices of newly-public companies have fluctuated significantly over short periods of time.

 

Interest Rate Risk: Bond prices generally rise when interest rates decline and decline when interest rates rise. The longer the duration of a bond, the more a change in interest rates affects the bond’s price. Short-term and long-term interest rates may not move the same amount and may not move in the same direction.

 

Mortgage-Backed Securities Risk: Mortgage-backed securities that are collateralized by a portfolio of mortgages or mortgage-related securities depend on the payments of principal and interest made by or through the underlying assets, which may not be sufficient to meet the payment obligations of the mortgage-backed security. Prepayments of principal, which occur more frequently in falling interest rate conditions, may shorten the term and reduce the value of these securities. The quality and value of the underlying collateral may decline, or default, which has become an increasing risk for collateral related to sub prime mortgage loans, especially in a declining residential real estate market. Further, these securities generally are privately sold and may not be readily marketable, particularly after a rapid decrease in value. Investments in mortgage-backed securities may also be subject to valuation risk.

 

Municipal Obligations Risk: Municipal obligations are backed by the entities that issue them and/or other revenue streams. Like other debt securities, prices of municipal debt securities are

 


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affected inversely by changes in interest rates and by changes in the credit rating or financial condition of the issuer. Income derived from investments in municipal obligations typically is exempt from regular federal income tax but may be subject to state and local taxes. Capital gains from the disposition of municipal obligations are subject to tax. In addition, interest income on certain municipal obligations may be subject to federal corporate and individual alternative minimum taxes. The municipal obligations market is volatile and may be significantly affected by tax, legislative or political changes. Some municipal obligations are insured and guarantee the timely payment of interest and repayment of principal.

 

Portfolio Turnover Risk: Portfolio securities are sold whenever the portfolio manager believes it appropriate, regardless of how long the securities have been held. Each Income and Asset Allocation Fund’s investment program emphasizes active portfolio management with a sensitivity to short-term market trends and price changes in individual securities. Accordingly, the Income and Asset Allocation Funds expect to take frequent trading positions, resulting in portfolio turnover that may exceed those of most mutual funds of comparable size. Portfolio turnover generally involves some expense to the Funds, including brokerage commissions, dealer markups and other transaction costs, and may result in the recognition of capital gains that may be distributed to shareholders. Generally, portfolio turnover over 100% is considered high and increases these costs.

 

Prepayment Risk: Prices and yields of mortgage-backed securities assume the securities will be redeemed at a given time. When interest rates decline, mortgage-backed securities experience higher prepayments because the underlying mortgages are repaid earlier than expected. A Fund’s portfolio manager may be forced to invest the proceeds from prepaid mortgage-backed securities at lower rates, which results in a lower return for the Fund. When interest rates increase, mortgage-backed securities experience lower prepayments because the underlying mortgages may be repaid later than expected. This typically reduces the value of the underlying securities.

 

Repurchase and Reverse Repurchase Agreements Risk: A Fund entering into a repurchase agreement may suffer a loss if the other party to the transaction defaults on its obligations and could be delayed or prevented from exercising its rights to dispose of the underlying securities. The value of the underlying securities may decline while the Fund seeks to assert its rights. The Fund could incur additional expenses in asserting its rights or may lose all or part of the income from the agreement. A reverse repurchase agreement involves the risk that the market value of the securities retained by a Fund may decline below the price of the securities that the Fund has previously sold but is later obligated to repurchase at a higher price under the agreement.

 

Restricted Securities Risk: Restricted securities (including Rule 144A securities) may be subject to legal restraints on resale and, therefore, are typically less liquid than other securities. The prices received from selling restricted securities in privately negotiated transactions may be less than those originally paid by a Fund. Companies whose securities are restricted are not subject to the same investor protection requirements as publicly traded securities.

 

Stock Market Risk: Stock market risk is the risk that the value of equity securities may decline. Stock prices change daily, sometimes rapidly, in response to company activity and general economic and market conditions. Stock prices may decline in value even during periods when equity securities in general are rising, or may not perform as well as the market in general. Stock prices may also experience greater volatility during periods of challenging market conditions such as the one that the market is currently experiencing. Additional stock market risk may be introduced when a particular equity security is traded on a foreign market. For more detail on the related risks involved in foreign markets, see Foreign Exposure Risk above.

 

Style Risk: Securities with different characteristics tend to shift in and out

 


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GE Funds

Prospectus

More on Strategies,

Risks and Disclosure

of Portfolio Holdings

 

 

of favor depending upon market and economic conditions as well as investor sentiment. A Fund may underperform other funds that employ a different style. A Fund also may employ a combination of styles that impact its risk characteristics. Examples of different styles include growth and value investing, as well as those focusing on large, medium, or small company securities.

n Growth Investing Risk: Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company’s growth potential. Growth-oriented funds will typically underperform when value investing is in favor.

n High Yield Investing Risk: The GE High Yield Fund uses value-based criteria to select securities. Such securities may not realize their perceived value for extended periods of time or may never realize their perceived value.

n Value Investing Risk: Undervalued stocks may not realize their perceived value for extended periods of time or may never realize their perceived value. Value stocks may respond differently to market and other developments than other types of stocks. Value-oriented funds will typically underperform when growth investing is in favor.

n Mid-Cap Company Risk: Investments in securities of mid-cap companies entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.

n Small-Cap Company Risk: Investing in securities of small-cap companies may involve greater risks than investing in larger, more established companies. Smaller companies may have limited product lines, markets or financial resources. Their securities may trade less frequently and in more limited volume than securities of larger, more established companies. In addition, smaller companies are typically subject to greater changes in earnings and business prospects than are larger companies. Consequently, the prices of small company stocks tend to rise and fall in value more than other stocks. Although investing in small-cap companies may offer potential for above-average returns, the companies may not succeed and their stock prices could decline significantly. Investments in small-cap companies may also be subject to valuation risk.

 

Valuation Risk: Portfolio securities may be valued using techniques other than market quotations, under the circumstances described under “Calculating Share Value.” The value established for a portfolio security may be different than what would be produced through the use of another methodology or if it had been priced using market quotations. Portfolio securities that are valued using techniques other than market quotations, including “fair valued” securities,

 

Disclosure of Portfolio Holdings

 

may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. In addition, there is no assurance that a Fund could sell a portfolio security for the value established for it at any time and it is possible that a Fund would incur a loss because a portfolio security is sold at a discount to its established value.

GE Asset Management has adopted policies and procedures to protect the Funds’ portfolio information and to prevent the misuse of that information by a third party. GE Asset Management limits disclosure of portfolio information to situations it believes will not result in material harm or disadvantage to investors in the Funds. A description of the Funds’ policies and procedures relating to the disclosure of portfolio holdings is available in the Funds’ SAI.

 


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About the

Investment

Adviser

    

 

 

Investment Adviser and Administrator

 

GE Asset Management, located at 3001 Summer Street, P.O. Box 7900, Stamford, Connecticut 06904-7900, is the investment adviser and administrator of each Fund. GE Asset Management is a wholly-owned subsidiary of General Electric Company (GE) and a registered investment adviser. As of December 31, 2007, GE Asset Management had approximately $189 billion of assets under management, of which more than $24.3 billion was invested in mutual funds.

 

For many years, GE’s tradition of ingenuity and customer focus has included financial services. In the late 1920s, through a desire to promote the financial well-being of its employees, GE began managing assets for its employee pension plan. By the mid-1930s, GE pioneered some of the nation’s earliest mutual funds, the Elfun Funds — to be followed years later by the GE Savings and Security Program Funds. The success of these Funds spurred growth; eventually GE expanded its mutual fund offerings to include a wide variety of investment products called the GE Family of Funds, created specifically for the general public.

 

GE Asset Management bases its investment philosophy on two enduring principles. First, GE Asset Management believes that a disciplined, consistent approach to investing can add value to an investment portfolio over the long term. Its commitment to in-depth research, sound judgment and hard work provides investors with an opportunity to take advantage of attractive investments around the world. Second, GE Asset Management follows 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 pays GE Asset Management a fee for advisory and administrative services that is accrued daily and paid monthly. The advisory and administration fees for each Fund are stated in the schedule opposite (fees are expressed as an annual rate).

 

For its services, GE Asset Management pays Palisade Capital Management, L.L.C., Champlain Investment Partners, LLC, GlobeFlex Capital, LP and SouthernSun Asset Management, Inc., sub-advisers to the GE Small-Cap Equity Fund, monthly compensation in the form of an investment sub-advisory fee. The fee is paid by GE Asset Management monthly and is based upon the average daily net assets of the Fund that each sub-adviser manages.

 

Shareholders of the GE Small-Cap Equity Fund, GE Emerging Markets Equity Fund and GE High Yield Fund have approved a “manager of managers” arrangement that permits GE Asset Management, as each Fund’s investment adviser, to appoint and replace unaffiliated sub-advisers, and enter into and amend sub-advisory agreements with unaffiliated sub-advisers on behalf of the Fund without shareholder approval. The “manager of managers” arrangement is intended to enable the Fund to enhance performance by allowing GE Asset Management to employ sub-advisers best suited to the needs of the Fund without incurring the expense and delays associated with obtaining shareholder approval of sub-advisers and related sub-advisory agreements.

 

Employment of the “manager of managers” arrangement is contingent upon either (1) receipt of an exemptive order (Order) from the SEC permitting such an arrangement, or (2) the adoption by the SEC of proposed Rule 15a-5 under the 1940 Act which would permit such an arrangement (Rule). Under the “manager of managers” arrangement, shareholders would receive notice of, and information pertaining to, any new sub-advisory agreement and the fees payable thereunder, or any material change to an existing sub-advisory agreement. In particular, shareholders would receive the same information about a new sub-advisory agreement and a new sub-adviser that they would receive in a proxy statement related to their approval of a new sub-advisory agreement in the absence of a “manager of managers” arrangement. In each case, shareholders will receive such notice and information as required by the Order or the Rule, as applicable.

 

 


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GE Funds

Prospectus

About the

Investment

Adviser

 

 

Board of Trustee’s Approval of Investment Advisory Agreements

 

The Fund’s semi-annual report to shareholders for the period ended March 31, 2008, contains a discussion regarding the basis for the Funds’ Board of Trustees approval of all investment advisory contracts, including contracts with Palisade.

 

Investment Management Fee:

 

Each Fund pays GE Asset Management an investment management fee. The fee is accrued daily and paid monthly up to the following maximum annual fee rates:

 

GE U.S. Equity Fund

   0.40%

GE Core Value Equity Fund

   0.55%

GE Small-Cap Equity Fund

   0.70%

GE Global Equity Fund

   0.75%

GE International Equity Fund*

   0.80%

GE Emerging Markets Equity Fund

   1.05%

GE Premier Growth Equity Fund*

   0.60%

GE Fixed Income Fund

   0.35%

GE Government Securities Fund

   0.40%

GE Short-Term Government Fund*

   0.30%

GE Tax-Exempt Fund

   0.35%

GE High Yield Fund

   0.60%

GE Strategic Investment Fund

   0.35%

GE Money Market Fund

   0.25%

 

* With respect to these Funds, administration fees (amounting to 0.05%) are imposed pursuant to a separate contract.

 


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About the Funds’ Portfolio Managers

 

Each Fund is managed by either an individual portfolio manager who is primarily responsible for the day-to-day management of a Fund, or a team of portfolio managers, who are jointly and primarily responsible for the day-to-day management of a Fund. The portfolio managers of the Funds generally have final authority over all aspects of their portions of a Fund’s investment portfolio, including securities purchase and sale decisions, portfolio construction techniques and portfolio risk assessment. The following sets forth the roles of the primary portfolio managers of the specified Funds (except for the GE Money Market Fund) followed by biographical information for each portfolio manager.

 

Portfolio Management Teams

 

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. 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.

 

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.

 

The GE Small-Cap Equity Fund is managed by David Wiederecht 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. Mr. Wiederecht 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 LLC; Champlain Investment Partners, LLC, GlobeFlex Capital, LP; and SouthernSun Asset Management, Inc. Additional information about each sub-adviser can be found under the section entitled “About the Sub-Adviser — GE Small-Cap Equity Fund” later in this Prospectus.

 

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.

 

The GE International Equity Fund is managed by a team of portfolio managers that includes Brian Hopkinson, Ralph R. Layman, Paul Nestro, Jonathan L. Passmore, Michael J. Solecki and Makoto Sumino. As lead portfolio manager for the Fund, Mr. Layman oversees the entire team and assigns a portion of the Fund to each manager, including himself. Each portfolio manager is limited to the management of his or her portion of the Fund, the size of the portion 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.

 

The GE Emerging Markets Equity Fund is co-managed by Tory Brent Jones and Ping Zhou. Messrs. Jones and Zhou each independently manage approximately one-half of the portfolio; however, they operate as a collaborative team and inform each other of trades.

 

The GE Premier Growth Equity Fund is managed by David B. Carlson.

 

 

 


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GE Funds

Prospectus

About the

Investment

Adviser

 

 

The GE Fixed Income Fund is managed by a team of portfolio managers that includes Paul M. Colonna, William M. Healey, Mark H. Johnson, James F. Palmieri, Lewis Tatananni 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.

 

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.

 

The GE Short-Term Government Fund is managed by a team of portfolio managers that includes Paul M. Colonna, William M. Healey, Mark H. Johnson and Chitranjan Sinha. As lead portfolio manager for the Fund, Mr. Colonna chooses the portfolio managers for the team, oversees the entire team and assigns a portion of the Fund to each manager, including himself. Each portfolio manager has discretionary authority over his portion of the Fund.

 

The GE Tax-Exempt Fund is managed by Michael J. Caufield.

 

The GE High Yield Fund is managed by Vita Marie Pike.

 

The GE Strategic Investment Fund is managed by a team of portfolio managers that includes Paul M. Colonna, Ralph R. Layman, Thomas R. Lincoln, Judith A. Studer and Diane M. Wehner. Ms. Studer is vested with oversight authority for determining asset allocations for the Fund. Each of the foregoing portfolio managers is responsible for managing one of four sub-portfolios: U.S. equity, U.S. mid-cap equity, international equity and fixed income. Mr. Lincoln manages the U.S. equity 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. The sub-portfolios underlying the Fund are managed independently of each other and the portfolio managers have full discretion over their particular sub-portfolio; however, the portfolio management team is collaborative to ensure strict adherence to the Fund’s objective.

 

 

 

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. Except in the case of the GE Money Market Fund, the Statement of Additional Information (SAI) provides the following additional information about each portfolio manager (including those of Palisade): (i) portfolio manager’s compensation; (ii) other accounts managed be each portfolio manager; and (iii) each portfolio manager’s ownership of shares of the Fund he/she manages, if any.

 

George A. Bicher is a Senior Vice President of GE Asset Management. Mr. Bicher is 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 Manage- ment, he served in a number of positions at Deutsche Banc Alex Brown since 1994.

 

David B. Carlson is an Executive Vice President of GE Asset Management. He 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

 


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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 a Director and Executive Vice President in 2003.

 

Michael J. Caufield is a Senior Vice President of GE Asset Management. He is the 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.

 

Chitranjan Sinha is a portfolio manager and senior quant analyst at GE Asset Management. He has served on the portfolio management team for GE Government Securities Fund and GE Short-Term Government Fund since September 2007. Mr. Sinha joined GE Asset Management in 1997 and became a fixed income analyst in 1998. He became Vice President — Derivative Strategies in 2002, Senior Quant Analyst in 2003, and a Portfolio Manager and Senior Quant Analyst in 2005.

 

Paul M. Colonna is a Director and Executive Vice President of GE Asset Management and President — Fixed Income at GE Asset Management. Since January 2005, he has led the team of portfolio managers for the GE Fixed Income Fund and the GE Short-Term Government Fund and has been responsible for the fixed income portion of the GE Strategic Investment Fund. He has served on the portfolio management team for the GE Government Securities Fund since February 2000. 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.

 

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 Vice President of GE Asset Management. He has been a portfolio manager for the GE Global Equity Fund since September 2004. More recently, he was appointed co-manager for this Fund. Mr. Jasminski joined GE Asset Management in 1993 as a fixed income specialist and has been an International Equity analyst and an International Small-Cap portfolio manager since 1998.

 

Tory Brent Jones is a Vice President of GE Asset Management. He has been a portfolio manager for the GE Emerging Markets Equity Fund since its inception. Mr. Jones joined GE Asset Management in June 1989 as Manager of the GE Dividend Reinvestment Program. Prior to joining the International Equity team in June 2000, he was a portfolio manager with the Fixed Income team specializing in commercial mortgage-backed and asset-backed securities.

 


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GE Funds

Prospectus

About the

Investment

Adviser

 

 

Mark H. Johnson is a Senior Vice President of GE Asset Management and Senior Portfolio Manager of Structured Products. He has been a member of the portfolio management team for the GE Fixed Income Fund and GE Government Securities Fund since September 2007. Mr. Johnson joined GE in 1998 in its Employers Reinsurance Corporation as a taxable income portfolio manager. Mr. Johnson joined GE Asset Management as a Vice President and Portfolio Manager in 2002 and became a Senior Vice President and Senior Portfolio Manager of Structured Products in 2007.

 

Ralph R. Layman is a Director and Executive Vice President of GE Asset Management and President — International Equities at GE Asset Management. He manages the overall international equity investments for GE Asset Management. Mr. Layman has led the team of portfolio managers for the GE International Equity Fund since the Fund’s commencement and has been responsible for the international equity portion of the GE Strategic Investment Fund since September 1997. Mr. Layman joined GE Asset Management in 1991 as Senior Vice President for International Investments and became an Executive Vice President in 1992 and President — International Equities in March 2007.

 

Thomas R. Lincoln is a Senior Vice President of GE Asset Management. He has served on the portfolio management team for the GE U.S. Equity Fund and GE Strategic Investment Fund since May 2007. Mr. Lincoln joined GE Asset Management in 1994 as a financial analyst in 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.

 

Daizo Motoyoshi is a Senior Vice President of GE Asset Management. He has been a portfolio manager of the GE Global Equity Fund since September 2003. Mr. Motoyoshi joined GE Asset Management in 1994 as an International Equity analyst and portfolio manager and became a global equity portfolio manager in 2002. Prior to joining GE Asset Management, Mr. Motoyoshi held positions at Alliance Capital Management and Ernst & Young.

 

Paul Nestro is a Vice President of GE Asset Management. He has been a member of the portfolio management team for the GE International Equity Fund since February 2007. Mr. Nestro joined GE Asset Management in 1993 as a performance and attribution analyst in domestic 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 an Assistant Portfolio Manager of GE Asset Management. Since March 2006, he has managed the mortgage-backed securities sector for the GE Fixed Income Fund. Prior to joining GE Asset Management in March 2006, Mr. Palmieri was a Director of Investments for Constitution Corporate Federal Credit Union from February 2005 to March 2006 and a Portfolio Manager for CIGNA Investment Management from January 2000 to February 2005.

 

Jonathan L. Passmore is a Senior Vice President of GE Asset Management. He has served as a portfolio manager of the GE International Equity Fund since January 2002. Prior to joining GE Asset Management in January 2001, he was with Merrill Lynch for six years, most recently as Director, International Equity.

 

Vita Marie Pike is a Vice President of GE Asset Management. She has served on the portfolio management team for the GE Fixed Income Fund since June 2004 and GE High Yield Fund since its inception. Prior to joining GE Asset Management in January 2001, she was with Alliance Capital for over nine years serving in a number of different capacities including portfolio manager.

 

Paul C. Reinhardt is a Senior Vice President of GE Asset Management. He has been a portfolio manager for the GE U.S. Equity Fund since January 2001 and for the GE Core Value Equity Fund since April 2002. Mr. Reinhardt joined GE Asset Management in 1982 as an Equity Analyst and has been a portfolio manager since 1987.

 


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Michael J. Solecki is a Senior Vice President of GE Asset Management. He has served as a portfolio manager of the GE International Equity Fund since September 1997. He joined GE Asset Management in 1990 as an International Equity Analyst. He became a Vice President for International Equity Portfolios in 1996 and Senior Vice President in 2000.

 

Judith A. Studer is a Director and Executive Vice President of GE Asset Management and President — U.S. Equities at GE Asset Management. She has led the team of portfolio managers for the GE Strategic Investment Fund since July 2004. Ms. Studer joined GE Asset Management in August 1984. She became Senior Vice President — International Equities in 1995, Senior Vice President — U.S. Equities in 1991, President — Investment Strategies in July 2006 and President – U.S. Equities in June 2007.

 

Makoto Sumino is a Senior Vice President of GE Asset Management. He has been a member of the portfolio management team for the GE International Equity Fund since February 2007. Mr. Sumino joined GE Asset Management in September 1996 as a securities analyst and portfolio manager. He became Deputy Director of the International Equity Research Team in January 2001 and Director in April 2005.

 

Lewis Tatananni is a Senior Corporate Trader at GE Asset Management. He has been a member of the portfolio management team for the GE Fixed Income Fund since December 2007. Mr. Tatananni joined GE Asset Management in October 2002 and was responsible for executing the interest rate derivative hedging programs for GE Asset Management’s insurance clients. Mr. Tatananni joined GE in 1999 as an associate at GE Capital Treasury and was responsible for debt origination and derivative execution.

 

Diane M. Wehner is a Vice President of GE Asset Management. She has been a portfolio manager of the GE Strategic Investment Fund since January 2006. Before joining GE Asset Management, Ms. Wehner was a Vice President and Senior Portfolio Manager from January 1997 to June 2001, and associate portfolio manager from May 1995 to January 1997, with Benefit Capital Management Corporation. Ms. Wehner has served as an analyst/portfolio manager in the investment management industry since 1985.

 

David Wiederecht is an Executive Vice President — Investment Strategies at GE Asset Management since February 2008. He has been a portfolio manager of the GE Small-Cap Equity Fund since             , 2008. Mr. Wiederecht joined GE Asset Management in 1988 and has held various positions at GE Asset Management including Vice President — Alternative Investments/Private Equity/Hedge Fund from 1998 to 2004, and Managing Director — Alternative Investments from 2004 to 2008.

 

Ping Zhou is a Vice President of GE Asset Management. He has been a portfolio manager of the GE Emerging Markets Equity Fund since its inception. He joined GE Asset Management in December 1997 as an International Equity Analyst.

 


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GE Funds

Prospectus

About the

Investment

Adviser

 

About the Sub-Adviser

 

GE Asset Management seeks to make the best managers available to Fund shareholders, whether that means accessing GE Asset Management’s wealth of internal talent or using external talent (sub-advisers). When GE Asset Management feels the need to access specialists outside, it investigates and engages sub-advisers with strong performance records and styles that match the investment objectives of the Funds. GE Asset Management is proud to engage the following sub-advisers who are primarily responsible for the day-to-day management of the investment programs for the GE Small-Cap Equity Fund. The following sets forth biographical information for those individuals who are primarily responsible for managing the Fund’s investments. As with GE Asset Management’s portfolio managers, the sub-advisers may change the portfolio managers from time to time.

 

GE Small-Cap Equity Fund

 

The assets of the GE Small-Cap Equity Fund are allocated (Allocated Assets) and managed by each of the following sub-advisers: (i) Palisade Capital Management, LLC; (ii) Champlain Investment Partners, LLC; (iii) GlobeFlex Capital, LP; and (iv) SouthernSun Asset Management, Inc. The following sets forth the information for each sub-adviser:

 

Palisade Capital Management, L.L.C. (Palisade)

One Bridge Plaza

Fort Lee, NJ 07024

 

Palisade has a history of managing small-cap equity portfolios and for several years has provided pension fund services to GE. The company has managed various institutional and private accounts with total assets in excess of $2.5 billion as of December 31, 2007. Palisade translates its experience from various institutional and private accounts to mutual fund portfolios it sub-advises for GE Asset Management. Palisade has managed the GE Small-Cap Equity Fund since inception.

 

Palisade is managed by Jack Feiler, Jeffrey Schwartz and Dennison T. “Dan” Veru, members of Palisade’s Investment Policy Committee. Prior to 2005, the Fund was managed by the entire Investment Policy Committee. Mr. Feiler, Mr. Schwartz and Mr. Veru are jointly and primarily responsible for the strategy of their Allocated Assets and the day-to-day management of their Allocated Assets is executed by Mr. Schwartz.

 

Jack Feiler, President and Chief Investment Officer, has more than 35 years of investment experience and has served as the principal small-cap portfolio manager at Palisade since the commencement of Palisade’s operations in April 1995. He has served as a portfolio manager of the GE Small-Cap Equity Fund since its inception. Prior to joining Palisade, Mr. Feiler was a Senior Vice President-Investments at Smith Barney from 1990 to 1995.

 

Jeffrey Schwartz, CFA, Senior Portfolio Manager, joined Palisade in October 2004. Prior to joining Palisade, Mr. Schwartz was Vice President and Senior Portfolio Manager of Safeco Asset Management from September 2003 to September 2004. From June 2001 to August 2003, Mr. Schwartz founded Nantucket Investment Research in Farmington Hills, MI, conducted independent investment research and was a private investor. From June 1992 until May 2001, Mr. Schwartz was at Munder Capital Management, most recently as a Senior Portfolio Manager and Principal.

 


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Dennison T. (“Dan”) Veru is an Executive Vice-President and Co-Chief Investment Officer of 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. Since joining Palisade in March 2000, Mr. Veru has been a member of the Investment Policy Committee. Prior to joining Palisade, he was President and Director of Research of Awad Asset Management, a division of Raymond James & Associates. Mr. Veru has been a frequent guest on CNBC, CNN and Bloomberg television. Prior to Awad, Mr. Veru worked with the Palisade team from 1984 through 1992. Mr. Veru graduated from Franklin & Marshall College.

 

Champlain Investment Partners, LLC (Champlain)

346 Shelburne Road, 6th Floor

Burlington, Vermont 05401

 

Champlain is a registered investment adviser that was formed in 2004 to focus on managing core small and mid-cap strategies. As of March 31, 2008, Champlain had over $1.4 billion in assets under management. Champlain is managed by a team of investment professionals led by Scott T. Brayman, CFA, who is the co-founder of Champlain.

 

Scott T. Brayman, CFA, is the Managing Partner and Chief Investment Officer at Champlain and has more than 22 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 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.

 

GlobeFlex Capital, LP (GlobeFlex)

4365 Executive Drive, Suite 720

San Diego, California 92121

 

GlobeFlex is a registered investment adviser that was formed in 1994 to specialize in equity management for the institutional marketplace, with a focus on both U.S. and international growth small and mid-cap companies. As of March 31, 2008, GlobeFlex had over $7 billion in assets under management, and with over 70 clients. GlobeFlex is managed by a team of investment professionals led by Robert J. Anslow, Jr., who is the co-founder of GlobeFlex.

 

Robert J. Anslow, Jr., is the Managing Partner and Chief Investment Officer at GlobeFlex and has more than 26 year of investment management experience.

 


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GE Funds

Prospectus

About the

Investment

Adviser

 

 

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.

 

SouthernSun Asset Management, Inc. (SouthernSun)

6000 Poplar Avenue, Suite 220

Memphis, Tennessee 38119

 

SouthernSun is a registered investment adviser that was formed in 1989 to focus on both U.S. and international value small and mid-cap companies, serving the institutional marketplace. As of March 31, 2008, SouthernSun had over $1.275 billion in assets under management. SouthernSun is managed by a team of investment professionals led by Michael W. Cook, CFA, who is the founder of SouthernSun.

 

Michael W. Cook, CFA, is the Chief Executive Officer and Chief Investment Officer at SouthernSun and has more than 20 years of investment management experience. 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.

 


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Prior Performance Information of GE Asset Management

(Investment Adviser to GE Emerging Markets Equity Fund)

 

The bar chart and table opposite illustrate the performance of a composite of certain private (Accounts) managed by GE Asset Management, the investment adviser to the GE Emerging Markets Equity Fund. For more information about GE Asset Management, see “About the Investment Adviser.” Each of the Accounts included in the composite has objectives, policies and strategies substantially similar to those of the Fund.

 

Unlike management of the private accounts included in the composite, GE Asset Management’s management of the GE Emerging Markets Equity Fund is subject to certain regulatory restrictions (e.g., limits on percentage of assets invested in a single issuer and industry and requirements on distributing income to shareholders) that do not apply to the private accounts. In addition, the Fund generally experiences cash flows that are different from those of the private accounts, and may not initially invests in the same emerging market companies invested by the private accounts. All of these factors may adversely affect the performance of the Fund and cause it to differ from that of the composite described opposite.

 

Calendar Year Total Returns1

(as of December 31, 2007)

 

LOGO

Average Annual Total Return

(as of December 31, 2007)

 

 

Period

 
  Composite —
Class A2
      MSCI
Emerging
Markets
Free Index3
1 Year   42.10%       39.40%
3 Years   38.40%       35.20%
5 Years   36.50%       37.00%
10 Years   15.10%       14.30%

 

 

GE Asset Management has prepared and presented the performance information in the bar chart in compliance with the Global Investment Performance Standards (GIPS®). Rates of return (which includes reinvestment of capital gains and income) are time-weighted and are presented net of commissions and transaction costs. Composite returns are calculated monthly in U.S. dollars by asset weighting account returns using beginning of month market values plus weighted cash flows, and are geometrically linked for quarterly and annual results. Certain clients incur contingent performance-based fees that are assessed when the account’s return exceeds a predetermined benchmark. Such performance fees are not included in determining the gross rates of return on the Composite. The Emerging Markets Composite includes all discretionary accounts using an emerging markets investment style and investing in emerging market companies. Portfolios in the Emerging Markets Composite may invest in derivative instruments. Accounts are managed to the MSCI Emerging Markets Free (EMF) Index. The Emerging Markets Composite was created in July 1996. New accounts are included in the Emerging Markets Composite the first full month under management in this style. Closed accounts are included through the last full month of management. The Emerging Markets Composite includes a portion of the U.S. General Electric Pension Trust, a non-fee paying portfolio. Minimum account size for inclusion in the Emerging Markets Composite is $5 million. A complete list and description of GE Asset Management’s composites and performance results is available upon request. Past performance is not necessarily a guide to future performance. The value of your investment may fall as well as rise and the investor may not get back the amount invested.

 

1 The bar chart provides gross of fee investment performance and does not reflect the deduction of investment management fees, custodial fees or other expenses. Performance returns would have been lower if those fees and charges were included.

 

2 The Emerging Markets Composite performance returns shown in the table above reflect the deduction of the estimated net annual operating expenses of the GE Emerging Markets Equity Fund — Class A shares, but do not reflect the imposition of sales charges, if any. Actual fees and expenses of the Accounts within the Emerging Markets Composite may have been more or less than those of the Fund. The Emerging Markets Composite performance returns do not represent the performance of the GE Emerging Markets Equity Fund, and should not be considered an indication of future performance of the Fund.

 


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3 The MSCI EMF Index is an unmanaged equity index representing the investment opportunities available in emerging countries. It is provided to represent the investment environment existing for the time periods shown. For comparison purposes, the index is fully invested and dividends are reinvested. The index is presented net of foreign withholding taxes. Since withholding taxes vary according to the shareholder’s domicile, MSCI uses the most conservative rates applicable to foreigners in the calculation. Index performance has been linked in the same manner as the Emerging Markets Composite. The returns for this unmanaged index do not include any transaction costs, management fees or other costs. The returns for the MSCI EMF Index have been taken from Factset Research Systems. The index results have not been examined by the independent accountants.

 

Note: The composite results are not required to be, and were not calculated in accordance with, SEC mandated mutual fund performance calculation methodology. The use of such methodology could yield a different result. As of December 31, 2007, the total assets of the composite were $1.39 billion.


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GE Funds

Prospectus

About the

Investment

Adviser

 

Prior Performance Information of GE Asset Management

(Investment Adviser to GE High Yield Fund)

 

The bar chart and table opposite illustrate the performance of a composite of certain private accounts (Accounts) managed by GE Asset Management, the investment adviser to the GE High Yield Fund. For more information about GE Asset Management, see “About the Investment Adviser.” Each of the Accounts included in the composite has objectives, policies and strategies substantially similar to those of the Fund.

 

Unlike management of the private accounts included in the composite, GE Asset Management’s management of the GE High Yield Fund is subject to certain regulatory restrictions (e.g., limits on percentage of assets invested in a single issuer and industry and requirements on distributing income to shareholders) that do not apply to the private accounts. In addition, the Fund generally experiences cash flows that are different from those of the private accounts. All of these factors may adversely affect the performance of the Fund and cause it to differ from that of the composite described opposite.

 

 

 

Calendar Year Total Returns1

(as of December 31, 2007)

 

LOGO

Average Annual Total Return

(as of December 31, 2007)

 

Period

  Composite —
Class A2
      Lehman Brothers
U.S. Corporate
High Yield —
3% Issuer
Capped Index3
1 Year   2.87%       2.08%
3 Years   5.31%       5.27%
5 Years   9.23%       10.83%
10 Years   5.68%       5.48%

 

GE Asset Management has prepared and presented the performance information in the bar chart and table in compliance with the Global Investment Performance Standards (GIPS®). Rates of return are time-weighted and are presented net of commissions and transaction costs. Composite returns are calculated in U.S. dollars using the aggregate method which combines the positions and flows of all component Accounts and calculates the returns and all other statistics as though the aggregate was one large individual portfolio. Composite returns are geometrically linked to get quarterly and annual results. The High Yield Composite invests primarily in high yield securities (including bonds rated below investment grade, sometimes called “junk bonds”). The portfolio managers will not sell a particular security solely because it is no longer classified as high yield. The managers may sell the security if it has been upgraded to investment grade, fallen out of the Index (as defined below), or reached the set price target. The Composite may continue to hold the security if a better relative opportunity is not currently available. The Composite may also invest in investment grade securities and bank loans. The Composite seeks to achieve its objective by earning a high rate of current income, although the Composite may seek capital growth opportunities when consistent with its objective. The Index for this Composite is the Lehman High Yield 3% Issuer Capped Index. As of July 1, 2005, the Composite’s Index was changed to the Lehman High Yield 3% Issuer Capped Index from the Lehman High Yield Index. This change was made in order to utilize a benchmark that is more representative of the investment constraints of the High Yield Composite. The Composite was created in January 1993. New accounts are included in the Composite the first full month under management in this style. Closed accounts are included through the last full month of management. The Composite includes a portion of the U.S. GE Pension Trust, a non-fee paying portfolio. A complete list and description of GE Asset Management’s composites and performance results is available upon request. Past performance is not necessarily a guide to future performance. The value of your investment may fall as well as rise and the investor may not get back the amount invested.

 

1 The bar chart provides gross of fee investment performance and does not reflect the deduction of investment management fees, custodial fees or other expenses. Performance returns would have been lower if those fees and charges were included.

 

2 The High Yield Composite performance returns shown in the table above reflect the deduction of the estimated net annual operating expenses of the GE High Yield Fund – Class A shares, but do not reflect the imposition of sales charges, if any. Actual


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fees and expenses of the Accounts within the High Yield Composite may have been more or less than those of the Fund. The High Yield Composite performance returns do not represent the performance of the GE High Yield Fund, and should not be considered an indication of future performance of the Fund.

 

3 The Lehman High Yield 3% Issuer Capped Index is an unmanaged benchmark and does not reflect the actual cost of investing in high yield instruments. It is provided to represent the investment environment existing for the time periods shown. For comparison purposes, the index is fully invested and includes reinvestment of income. Index performance has been linked in the same manner as the High Yield Composite. The returns for this unmanaged index do not include any transaction costs, management fees or other costs. The returns for Lehman High Yield 3% Issuer Capped Index the have been taken from sources published by Lehman Brothers. The Lehman High Yield 3% Issuer Capped Index results have not been examined by the independent accountants.

 

Note: The composite results are not required to be, and were not calculated in accordance with, SEC mandated mutual fund performance calculation methodology. The use of such methodology could yield a different result. As of December 31, 2007, the total assets of the composite were $718.6 million.

 


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How to

Invest

    

 

How to Buy Shares

 

The Funds offer several ways to purchase shares. You may purchase shares by mail, bank wire, electronic funds transfer, or by telephone. You may obtain an application from your investment professional, from GE Investment Distributors, Inc. (Distributor) by calling 1-800-242-0134 or from the Funds’ website at http://www.gefunds.com.

 

In order to help the government combat the funding of terrorism and money laundering, federal law requires financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, social security or taxpayer identification number, and possibly other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. This information will be used only for the purpose of establishing and confirming your identity.

 

If you do not provide this information when requested, or do not permit us to see identifying documents, we may be unable to verify your identity. If a Fund is unable to verify your identity or the identity of any person authorized to act on your behalf, the Fund may be unable to open your account or, if the account has been opened, to maintain your account. If your account is closed, your Fund shares will be redeemed at a price reflecting the net asset value per share of the Fund next calculated after the determination that your account cannot be maintained.

 

To reduce expenses by eliminating duplicate mailings to the same address, the Funds may choose to mail only one report, prospectus or proxy statement to your household, even if more than one member of the household has an account with the Funds. If you would like to receive additional reports, prospectuses, or proxy statements, please contact your investment professional or call 1-800-242-0134.

 

The Funds and the Distributor may reject any purchase order or exchange request for any reason and without prior notice.

 

Minimum Investments

 

    By mail       By wire       Automatic

Initial Investment

  $500       $1,000       $25

Subsequent Investments

  $100       $1,000       $25

 

Minimums are reduced for accounts with active Direct Deposit, Automatic Investment and Payroll Savings Plans. Accounts that fall below the $500 account minimum may be automatically redeemed by a Fund on 30 days’ notice and will bear any associated transaction costs, market exposure risks and tax consequences.

 


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GE Funds

Prospectus

How to Invest

 

Investing through an Authorized Firm

 

You may invest through an authorized broker-dealer, investment adviser, financial adviser, retirement plan administrator, insurance company, or other financial intermediary that has entered into a distribution agreement, service agreement or other types of arrangement with GE Asset Management, the Distributor or the Funds (Authorized Firms).

 

If you invest through an Authorized Firm with an investment professional, that professional can provide investment advice, determine the suitability of a particular Fund or Funds, help you set up your new account and make subsequent investments for you. Your investment professional will forward your investment details and payment to the Fund. Your investment professional may charge fees not described in this Prospectus, such as transaction fees. They also may set different minimum investments or limitations on buying or selling shares. Investors are urged to consult their investment professional for more information.

 

If you invest through an Authorized Firm, your investment professional must receive your transaction order before the close of trading on the NYSE (normally 4:00 p.m., Eastern time) that day for your transaction to be effective at the net asset value per share determined on that day. Your investment professional may impose an earlier deadline for the receipt of transaction orders. If you do not submit your order before the deadline set by your Authorized Firm, your order will not be effective until the following business day.

 

Your investment professional may receive different compensation for selling one class of shares than for selling another class.

 

 

If You Work for GE

 

As a GE employee, or retiree, you and your family members may purchase Class A shares directly from the Distributor without paying the sales charge typically associated with buying Class A shares of a Fund through an investment professional. If you purchase Fund shares through an investment professional other than the Distributor, including those affiliated with GE, you may pay transaction fees, including any applicable sales charges.

 

Please call 1-800-242-0134 for details.

 

Opening an Account