GE Funds | Mutual Funds | GE Funds | GE Fixed Income Fund

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

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

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

Attractive yields and prices
The potential for capital appreciation
Reasonable credit quality

The Fund also may invest to a lesser extent in asset-backed securities, high yield securities 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.

Emphasize a fundamental, bottom-up research process to identify relative value opportunities and enhance total return, while limiting volatility. Our fundamental analysis incorporates several proprietary quantitative investment management tools. We seek to add value through active management of sector allocation, security selection, and tactical allocation to the high yield and emerging markets debt sectors, while controlling duration to within +/- 15% of the benchmark.

The strategy is managed using a team approach. On a monthly basis, the investment team determines portfolio positioning with respect to (1) the interest rate risk (duration and yield curve positioning), (2) sector weighting relative to the benchmark, and (3) tactical allocations to the high yield and emerging markets debt sectors. Duration and yield curve positioning are based primarily on our analysis of macroeconomic fundamentals, monetary policy, and expectations implied by current market pricing. Sector allocation relative to the benchmark is determined by fundamental and technical drivers of sector performance on scorecards generated each month by the sector portfolio managers. Allocations to the high yield and emerging debt asset classes are based on our credit outlook for those sectors and the relative value opportunities present. Sector portfolio managers are responsible for selecting individual securities within their respective sectors. Fundamental and relative value analysis enhanced by quantitative tools form the basis for security selection and ongoing monitoring. GE Asset Management's broad-based credit research infrastructure performs in-house analysis leveraging our equity analysts and the GE global network. GE Asset Management's rigorous risk management and compliance processes support the investment process.

¹The investment process is fluid and may change from time to time without prior public notice as market conditions and portfolio managers change.

The Fund is managed by a team of portfolio managers that includes Paul M. Colonna, William M. Healey, Mark Johnson, James F.Palmieri, Lewis Tatananni and Vita Marie Pike. The team is lead by Mr. Colonna, who is vested with oversight authority, although each portfolio manager manages his or her asset class independent of the other team members, the team is highly collaborative and communicative. 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.

High Credit Quality and "Plus"Asset Classes

All sectors within the Lehman Brothers
Aggregate Bond Index
Collateralized Mortgage Obligations
Inflation Indexed Securities
Interest Rate Futures and Options
Non-Investment Grade Credit Markets
Emerging Markets Debt
Select Non-U.S. Corporate and
Sovereign Debt

Research

Direct with company or government officials
GE Global Network^*
Street research
Relative value of sectors
Collateral and structure of structured finance securities

^*In no case would GEAM seek to obtain inside information from the GE Network or any other source and trading would be appropriately restricted were such information to become available to GEAM.

Buy Decision

Attractive valuation
Solid management
Consistent execution
Strategic direction
Internal analyst's opinion

Sell Decision

Achieves price target
Management changes
Fundamentals deteriorate
Change in strategic direction
Change in analyst's opinion

The principal risks of investing in the Fund are interest rate risk, credit risk and prepayment risk. To the extent that the portfolio managers invest in asset-backed securities, foreign debt securities and high yield securities, the Fund would be subject to asset-backed securities risk, foreign exposure risk and high yield securities risk. The Fund may invest in derivative instruments that carry derivative instruments risk. The Fund may also invest in U.S. Government 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). Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government.

The Fund's investment strategy may result in a high portfolio turnover rate, which may cause the Fund to experience increased transaction costs and shareholders to incur increased taxes on their investment in the Fund.

Please read the prospectus carefully for a complete description of the fund. Before investing in a mutual fund, you should carefully consider the Investment objectives, risks and charges and expenses of the fund.