GE Funds | Mutual Funds | GE Institutional Funds

Long-term growth of capital.

The Fund invests at least 80% of their net assets in equity securities under normal market conditions. 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:

Low valuation relative to their long-term cash earnings growth 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 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.

We believe that stocks are not fairly valued at all times and that certain stocks whose price to cash earnings ratios are low relative to their long term growth rates have the potential to produce superior investment returns.

The investment decision-making process is a disciplined, research driven, bottom-up process, which leverages the network of GE resources. Our investment process begins by screening the universe of non-U.S. developed and emerging markets companies with market capitalizations greater than $2 billion. We conduct quantitative analysis focused on Price/Cash Earnings Ratios, Cash Earnings Growth, and Yield. Detailed, fundamental company analysis, industry competitive analysis, and a macro-environment review further narrow 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. The 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.

¹ The 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 Brian Hopkinson, Ralph R. Layman, Jonathan L. Passmore and Michael J. Solecki. As lead portfolio manager for the Fund, Mr. Layman oversees the entire team and assigns a portion of theFund 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.

High Quality Companies

Undervalued based on cash earnings growth potential
Industry leadership
Strong financial characteristics
Good transparency and corporate governance
Management track record
Positive fundamental momentum
Porter competitive analysis

Research

Company visits/management meetings
Wall Street/proprietary modeling
GE Global Network^*

^*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

Price-to-cash earnings-to-growth
Fundamental analysis
Identifiable catalyst
Portfolio manager conviction
Liquidity

Sell Discipline

Valuation relative to target
Shift in fundamentals assessment
Management/strategic direction change

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 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.