Long-term growth of capital
GE Global Equity Fund invests at least 80% of its net assets in equity securities under normal market conditions. The Fund invests in companies in developed and developing countries, including the United States. 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 International (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:
- Low prices relative to their long-term cash earnings potential
- Potential for significant improvement in the company's business
- Financial strength
- 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.
We believe that stocks are not fairly valued at all times and that certain stocks whose valuations are low relative to their long-term growth rates will produce superior investment returns. We believe a portfolio should be well- diversified among sectors and regions to ensure risk is controlled.
The investment decision-making process is a disciplined, research-driven, bottom-up process, which leverages the network of GE resources. The process begins by screening the universe of all large-cap stocks available with market capitalizations greater than $1.5 billion. Our analysts perform detailed company analysis focused on valuations and company fundamentals. We conduct quantitative analysis focused on Price/Cash Earnings Ratios, Cash Earnings Growth and Yield. Detailed, fundamental company analysis, industry competitive analysis and a macroenvironment review further narrows the list of buy candidates. Our analysts then seek a catalyst for change in each stock that will unlock the future potential of the company. Final portfolio construction is driven by our level of conviction in each stock based on thorough discussions among the portfolio managers and an overall risk assessment.
1The investment process is fluid and may change from time to time without prior public notice as market conditions and portfolio managers change.
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 interest rate risk and credit risk. The Fund may invest in derivative instruments that carry derivative instruments risk.
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.
