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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-08257
GE INSTITUTIONAL FUNDS
(Exact name of registrant as specified in charter)
1600 Summer Street
Stamford, Connecticut 06905
(Address of principal executive offices)(Zip code)
GE Asset Management, Inc.
1600 Summer Street
Stamford, Connecticut 06905
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: 800-242-0134
Date of fiscal year end: 09/30
Date of reporting period: 09/30/14
Table of Contents
Item 1. | Reports to Stockholders |
Table of Contents
GE Institutional Funds
Annual Report
September 30, 2014
Table of Contents
GE Institutional Funds
1 | ||||
Manager Reviews and Schedules of Investments | ||||
2 | ||||
9 | ||||
20 | ||||
27 | ||||
33 | ||||
43 | ||||
49 | ||||
70 | ||||
83 | ||||
Financial Statements | ||||
84 | ||||
92 | ||||
94 | ||||
96 | ||||
98 | ||||
102 | ||||
116 | ||||
117 | ||||
118 | ||||
121 |
This report has been prepared for shareholders and may be distributed to others only if preceded by or accompanied with a current prospectus and/or summary prospectus.
Table of Contents
Notes to Performance | September 30, 2014 (Unaudited) |
The information provided on the following performance pages relates to the GE Institutional Funds (the “Funds”, and individually, the “Fund”).
Total returns take into account changes in share price and assume reinvestment of dividends and capital gains distributions, if any. Total returns shown are net of Fund expenses.
The performance data quoted represents past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Periods less than one year are not annualized. Please call toll-free (800) 493-3042 or visit the Fund’s website at http://www.geam.com for the most recent month-end performance data.
An investment in a Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. An investment in a Fund is subject to risk, including possible loss of principal invested.
The Standard & Poor’s (“S&P”) 500® Composite Price Index of stocks (“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.
The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes companies in the Russell 1000® Index with higher price-to-book ratios and higher forecasted growth values. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership.
The 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 3000® Index. The Russell 3000® Index is comprised of the 3,000 largest U.S.-domiciled companies.
The Morgan Stanley Capital International Europe, Australasia, and Far East Index (MSCI® EAFE®) is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of developed stock markets outside the U.S. and Canada and excludes certain market segments unavailable to U.S. based investors.
The Morgan Stanley Capital International All Country World Index Ex-U.S. (MSCI® ACWI Ex-U.S.) is a market-capitalization-weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. The MSCI ACWI Ex-U.S. Index includes both developed and emerging markets.
The Barclays U.S. Aggregate Bond Index is an unmanaged 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. The index is designed to represent performance of the U.S. investment-grade fixed rate bond market.
The 90 Day U.S. T-Bill is an unmanaged measure/index of the performance of the most recently auctioned 90 day U.S. Treasury bills (i.e., having a total maturity of 90 days) currently available in the marketplace.
The results shown for the foregoing indices assume the reinvestment of net dividends or interest and do not reflect fees, expenses, or taxes. As such, index returns do not reflect the actual cost of investing in the instruments that comprise an index.
The peer universe of the underlying open end funds used for the peer group average annual total return calculation is based on a blend of Morningstar peer categories, as shown. Morningstar is an independent mutual fund rating service. A Fund’s performance may be compared to or ranked within a universe of mutual funds with investment objectives and policies similar but not necessarily identical to that of the Fund.
©2014 Morningstar, Inc. All Rights Reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damage or losses relating from any use of this information. Past performance does not guarantee future results.
The S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation or warranty, express or implied, to the investors of the Fund or any member of the public regarding the advisability of investing in the securities generally or in this Fund particularly or the ability of the S&P 500 Index Fund to track general stock market performance.
Russell Investment Group owns the Russell Index data, including all applicable trademarks and copyrights, used by GE Asset Management Incorporated 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 Incorporated’s presentation thereof.
The views, expressed in this document, reflect our judgment as of the publication date and are subject to change at any time without notice.
GE Investment Distributors, Inc., member of FINRA, is the principal underwriter and distributor of the GE Institutional Funds and a wholly owned subsidiary of GE Asset Management Incorporated, the investment adviser of the Funds.
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U.S. Equity Fund | (Unaudited) |
David B. Carlson
Chief Investment Officer – U.S. Equities
Stephen V. Gelhaus
Senior Vice President
Paul C. Reinhardt
Senior Vice President
The U.S. Equity Fund is managed by a team of portfolio managers that includes David B. Carlson, Stephen V. Gelhaus and Paul C. Reinhardt. Each of the foregoing portfolio managers manages one of three sub-portfolios, which comprise the Fund. A sub-portfolio refers to the portion of the Fund’s assets that are allocated to, and managed by, a particular portfolio manager on the Fund’s portfolio management team. The three sub-portfolios are managed independently of each other and the portfolio managers have full discretion over their sub-portfolio. However, as lead portfolio manager for the Fund, Mr. Carlson is vested with the authority to adjust the allocation of assets to each sub-portfolio. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional U.S. Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional U.S. Equity Fund returned 18.88% for the Investment Class shares and 18.55% for the Service Class shares. The Fund’s benchmark, the S&P 500® Index returned 19.73% and the Fund’s Morningstar peer group of 1,714 US Large Growth funds returned an average of 16.29% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | Investor confidence in the U.S. economy drove equities higher in the last twelve months. Each sector within the S&P 500 achieved double-digit advances as employment, housing and manufacturing sectors improved. S&P 500 stocks ended the year up almost 20% and just 2% shy of all-time highs. Stocks scaled a wall of geopolitical worry, including Mid-East tensions and Russia’s assertive actions in Crimea and the Ukraine. Meanwhile, Chinese growth concerns added a cautious note to global equity investing; and in this environment the U.S. was the best performing major equity market on the global stage. |
Large cap stocks significantly outperformed smaller-cap indices, and within large caps, there was no clear style leadership. Energy prices were whipsawed during the year, and oil prices weakened to the lowest levels of the year at September 30, 2014. The energy sector lagged as commodity prices dropped, while the consumer discretionary sector — one of the prior year’s leading sectors — also underperformed. Health care and information technology were among the top-performing sectors in the S&P 500. However, as 10-year treasury yields declined to 2.49% by year-end — in response to slowing global growth and declining European bond yields — selected higher yielding areas of the market outperformed, including pharmaceuticals companies while performance was mixed among financials. |
Q. | What were the primary drivers behind Fund performance? |
A. | The Fund benefited from strong rallies among its biotechnology holdings due to innovative therapies and pipelines. The biotechnology stocks traded at attractive valuations during the year. One of the Fund’s health care devices holdings received a take-out offer, sending its shares higher. The year’s commodity weakness was a benefit to one of the Fund’s specialty chemicals holdings, as falling chemical feedstock prices raised its profit outlook. Several consumer staples stocks also bolstered relative returns, including: 1) an integrated retail pharmacy/health care provider that rallied over 42% due to its stability and premium earnings growth; 2) a food company enjoyed strong underlying fundamentals in its agricultural business and an outlook for bumper crops; and 3) a consumer packaged goods company soared as it announced the split of its household and personal care businesses — a catalyst to unlock value. |
Mixed stock selection within the technology sector was the greatest detractor from |
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(Unaudited)
performance, as the Fund’s semiconductor, communications equipment, storage and software holdings failed to keep pace with the benchmark. Underweight positions in two companies in particular — a leading smartphone handset manufacturer and a mega-cap software company undergoing a management change, weighed on returns. We are comfortable with our underweight positioning in these companies, given their uncertain long-term growth outlooks. Within industrials, an electrical equipment holding lagged due to its exposure to a slowing Europe, and one of the Fund’s railroad stocks underperformed peers. Other difficult holdings included a sporting-goods specialty retailer with slowing sales, a medical device company, a lagging auto manufacturer and a bank. |
Q. | Were there any significant changes in the Fund during the period? |
A. | During the twelve-month period the Fund continued to reduce its exposure to some of the more cyclical areas of the market, taking profits in the consumer discretionary and information technology sectors. The Fund went from a modest overweight to an underweight in technology. The Fund reduced its underweight to the consumer staples sector, although it remained the largest sector underweight at September 30, 2014. We also added to financials and energy. At year-end, the Fund’s largest sector overweights remained financials and health care. Despite any changes in positioning, the Fund maintained its bottom-up stock selection approach with a focus on the long-term investment horizon. We believe the Fund is well-positioned to add value through active stock selection going into the next year. |
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U.S. Equity Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given
for your class under the heading “Expenses paid during the period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return |
| |||||||||||
Investment Class | 1,000.00 | 1,063.20 | 1.86 | |||||||||
Service Class | 1,000.00 | 1,062.10 | 3.15 | |||||||||
Hypothetical 5% Return (2.5% for the period) |
| |||||||||||
Investment Class | 1,000.00 | 1,023.26 | 1.83 | |||||||||
Service Class | 1,000.00 | 1,022.01 | 3.09 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.36% for Investment Class shares and 0.61% for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
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U.S. Equity Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities of U.S. companies, such as common and preferred stocks.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 1,714 | 1,341 | 920 | |||
Peer group average annual total return | 16.29% | 14.30% | 7.59% |
Morningstar Category in peer group: Large Growth
Top Ten Largest Holdings as of September 30, 2014
(as a % of Fair Value) (b)(c)
Amgen Inc. | 2.81% | |||
Actavis PLC | 2.68% | |||
EMC Corp. | 2.43% | |||
Apple Inc. | 2.26% | |||
JPMorgan Chase & Co. | 2.15% | |||
QUALCOMM Inc. | 2.09% | |||
Exxon Mobil Corp. | 2.00% | |||
PepsiCo Inc. | 1.94% | |||
Pfizer Inc. | 1.93% | |||
Schlumberger Ltd. | 1.90% |
Sector Allocation as of September 30, 2014
Portfolio composition as a % of Fair Value of $835,806 (in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 11/25/97)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
U.S. Equity Fund | 18.88% | 13.91% | 8.17% | $ | 21,939 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 8.11% | $ | 21,804 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 1/3/01)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
U.S. Equity Fund | 18.55% | 13.79% | 8.05% | $ | 21,695 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 8.11% | $ | 21,804 |
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
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U.S. Equity Fund
Schedule of Investments | September 30, 2014 |
U.S. Equity Fund |
Number of Shares | Fair Value | |||||||||
Common Stock — 97.6%† |
| |||||||||
Aerospace & Defense — 3.5% |
| |||||||||
General Dynamics Corp. | 88,115 | $ | 11,198,535 | |||||||
Hexcel Corp. | 39,040 | 1,549,888 | (a) | |||||||
Honeywell International Inc. | 139,048 | 12,948,150 | ||||||||
The Boeing Co. | 31,602 | 4,025,463 | ||||||||
29,722,036 | ||||||||||
Agricultural Products — 1.3% |
| |||||||||
Archer-Daniels-Midland Co. | 205,968 | 10,524,965 | ||||||||
Air Freight & Logistics — 0.4% |
| |||||||||
United Parcel Service Inc., Class B | 37,179 | 3,654,324 | ||||||||
Airlines — 0.4% |
| |||||||||
Delta Air Lines Inc. | 92,946 | 3,359,998 | ||||||||
Application Software — 0.7% |
| |||||||||
Intuit Inc. | 66,921 | 5,865,626 | ||||||||
Asset Management & Custody Banks — 4.7% |
| |||||||||
Ameriprise Financial Inc. | 98,523 | 12,155,768 | ||||||||
Invesco Ltd. | 340,184 | 13,430,464 | ||||||||
State Street Corp. | 188,136 | 13,848,691 | (e) | |||||||
39,434,923 | ||||||||||
Auto Parts & Equipment — 0.2% |
| |||||||||
TRW Automotive Holdings Corp. | 14,869 | 1,505,486 | (a) | |||||||
Automobile Manufacturers — 0.5% |
| |||||||||
Ford Motor Co. | 282,555 | 4,178,988 | ||||||||
Automotive Retail — 0.3% |
| |||||||||
AutoZone Inc. | 4,831 | 2,462,167 | (a) | |||||||
Biotechnology — 4.9% |
| |||||||||
Alexion Pharmaceuticals Inc. | 31,231 | 5,178,724 | (a) | |||||||
Amgen Inc. | 167,302 | 23,499,239 | (h) | |||||||
Gilead Sciences Inc. | 118,224 | 12,584,945 | (a) | |||||||
41,262,908 | ||||||||||
Broadcasting — 1.0% |
| |||||||||
CBS Corp., Class B | 59,494 | 3,182,929 | ||||||||
Discovery Communications Inc., | 128,638 | 4,795,625 | (a) | |||||||
7,978,554 | ||||||||||
Cable & Satellite — 2.8% |
| |||||||||
Comcast Corp., Class A | 141,278 | 7,597,931 |
Number of Shares | Fair Value | |||||||||
Comcast Corp., Special Class A | 124,920 | $ | 6,683,220 | |||||||
Liberty Global PLC, Class C | 217,123 | 8,905,300 | (a) | |||||||
23,186,451 | ||||||||||
Casinos & Gaming — 0.5% |
| |||||||||
Las Vegas Sands Corp. | 66,921 | 4,163,155 | ||||||||
Commodity Chemicals — 1.6% |
| |||||||||
LyondellBasell Industries N.V., Class A | 120,832 | 13,129,605 | ||||||||
Communications Equipment — 3.9% |
| |||||||||
Cisco Systems Inc. | 618,649 | 15,571,395 | ||||||||
QUALCOMM Inc. | 233,108 | 17,429,485 | ||||||||
33,000,880 | ||||||||||
Consumer Finance — 1.3% |
| |||||||||
American Express Co. | 128,267 | 11,228,493 | ||||||||
Data Processing & Outsourced Services — 1.1% |
| |||||||||
Visa Inc., Class A | 41,641 | 8,884,940 | ||||||||
Department Stores — 0.4% |
| |||||||||
Macy’s Inc. | 55,025 | 3,201,354 | ||||||||
Diversified Banks — 5.6% |
| |||||||||
Bank of America Corp. | 263,926 | 4,499,938 | ||||||||
Citigroup Inc. | 286,286 | 14,835,341 | ||||||||
JPMorgan Chase & Co. | 298,933 | 18,007,724 | ||||||||
Wells Fargo & Co. | 189,609 | 9,835,019 | ||||||||
47,178,022 | ||||||||||
Drug Retail — 0.8% |
| |||||||||
CVS Health Corp. | 85,511 | 6,805,820 | ||||||||
Electric Utilities — 0.3% |
| |||||||||
NextEra Energy Inc. | 29,743 | 2,792,273 | ||||||||
Electrical Components & Equipment — 1.3% |
| |||||||||
Eaton Corp. PLC | 169,537 | 10,743,560 | ||||||||
Fertilizers & Agricultural Chemicals — 1.0% |
| |||||||||
Monsanto Co. | 78,075 | 8,784,218 | ||||||||
General Merchandise Stores — 1.4% |
| |||||||||
Dollar General Corp. | 92,948 | 5,680,052 | (a) | |||||||
Target Corp. | 92,948 | 5,825,981 | ||||||||
11,506,033 | ||||||||||
Healthcare Distributors — 0.5% |
| |||||||||
Cardinal Health Inc. | 57,626 | 4,317,340 | ||||||||
Healthcare Equipment — 3.6% |
| |||||||||
Abbott Laboratories | 133,844 | 5,566,572 | ||||||||
Boston Scientific Corp. | 879,484 | 10,386,706 | (a) |
See Notes to Schedules of Investments and Notes to Financial Statements.
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U.S. Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Covidien PLC | 139,790 | $ | 12,093,233 | |||||||
Stryker Corp. | 22,308 | 1,801,371 | ||||||||
29,847,882 | ||||||||||
Healthcare Services — 0.6% |
| |||||||||
Express Scripts Holding Co. | 74,352 | 5,251,482 | (a) | |||||||
Healthcare Supplies — 0.5% | ||||||||||
The Cooper Companies Inc. | 28,256 | 4,400,872 | ||||||||
Home Improvement Retail — 1.7% |
| |||||||||
Lowe’s Companies Inc. | 265,823 | 14,067,353 | ||||||||
Household Products — 0.2% |
| |||||||||
Energizer Holdings Inc. | 14,871 | 1,832,256 | ||||||||
Independent Power Producers & Energy Traders — 1.4% |
| |||||||||
AES Corp. | 381,079 | 5,403,700 | ||||||||
Calpine Corp. | 159,868 | 3,469,136 | (a) | |||||||
NRG Energy Inc. | 98,896 | 3,014,350 | ||||||||
11,887,186 | ||||||||||
Industrial Machinery — 0.5% |
| |||||||||
Dover Corp. | 52,048 | 4,181,016 | ||||||||
Integrated Oil & Gas — 6.4% |
| |||||||||
Cenovus Energy Inc. | 211,918 | 5,696,356 | ||||||||
Chevron Corp. | 78,818 | 9,404,564 | ||||||||
Exxon Mobil Corp. | 177,343 | 16,679,109 | ||||||||
Hess Corp. | 107,074 | 10,099,219 | ||||||||
Occidental Petroleum Corp. | 118,599 | 11,403,294 | ||||||||
53,282,542 | ||||||||||
Integrated Telecommunication Services — 1.1% |
| |||||||||
Verizon Communications Inc. | 178,457 | 8,921,065 | ||||||||
Internet Retail — 0.7% |
| |||||||||
Amazon.com Inc. | 18,590 | 5,994,160 | (a) | |||||||
Internet Software & Services — 4.1% |
| |||||||||
Baidu Inc. ADR | 41,639 | 9,086,879 | (a) | |||||||
eBay Inc. | 124,919 | 7,074,163 | (a) | |||||||
Facebook Inc., Class A | 39,410 | 3,114,966 | (a) | |||||||
Google Inc., Class A | 17,994 | 10,587,850 | (a) | |||||||
Google Inc., Class C | 8,179 | 4,722,227 | (a) | |||||||
34,586,085 | ||||||||||
Investment Banking & Brokerage — 0.6% |
| |||||||||
The Charles Schwab Corp. | 171,023 | 5,026,366 | ||||||||
Life & Health Insurance — 0.5% |
| |||||||||
MetLife Inc. | 74,357 | 3,994,458 | ||||||||
Life Sciences Tools & Services — 0.2% |
| |||||||||
PerkinElmer Inc. | 44,614 | 1,945,170 |
Number of Shares | Fair Value | |||||||||
Movies & Entertainment — 1.7% |
| |||||||||
The Walt Disney Co. | 63,205 | $ | 5,627,141 | |||||||
Time Warner Inc. | 113,756 | 8,555,589 | ||||||||
14,182,730 | ||||||||||
Multi-Line Insurance — 3.6% |
| |||||||||
American International Group Inc. | 273,633 | 14,781,654 | ||||||||
Genworth Financial Inc., Class A | 111,537 | 1,461,135 | (a) | |||||||
The Hartford Financial Services Group Inc. | 366,212 | 13,641,397 | ||||||||
29,884,186 | ||||||||||
Oil & Gas Equipment & Services — 3.7% |
| |||||||||
Cameron International Corp. | 61,344 | 4,072,015 | (a) | |||||||
Halliburton Co. | 158,008 | 10,193,096 | ||||||||
Schlumberger Ltd. | 156,147 | 15,878,588 | ||||||||
Weatherford International PLC | 37,179 | 773,323 | (a) | |||||||
30,917,022 | ||||||||||
Oil & Gas Exploration & Production — 1.0% |
| |||||||||
Anadarko Petroleum Corp. | 25,279 | 2,564,302 | ||||||||
Marathon Oil Corp. | 144,996 | 5,450,399 | ||||||||
8,014,701 | ||||||||||
Packaged Foods & Meats — 1.1% |
| |||||||||
Mondelez International Inc., Class A | 271,422 | 9,300,275 | ||||||||
Pharmaceuticals — 7.7% |
| |||||||||
Actavis PLC | 92,949 | 22,426,735 | (a) | |||||||
GlaxoSmithKline PLC ADR | 33,460 | 1,538,156 | ||||||||
Johnson & Johnson | 136,072 | 14,503,915 | ||||||||
Merck & Company Inc. | 169,536 | 10,050,094 | ||||||||
Pfizer Inc. | 546,525 | 16,160,744 | ||||||||
64,679,644 | ||||||||||
Publishing — 0.1% |
| |||||||||
Tribune Media Co., Class A | 7,436 | 489,289 | (a) | |||||||
Railroads — 0.1% |
| |||||||||
CSX Corp. | 37,177 | 1,191,895 | ||||||||
Regional Banks — 1.1% |
| |||||||||
Regions Financial Corp. | 899,717 | 9,033,159 | ||||||||
Research & Consulting Services — 0.3% |
| |||||||||
Nielsen N.V. | 52,050 | 2,307,377 | ||||||||
Semiconductor Equipment — 0.3% |
| |||||||||
Applied Materials Inc. | 130,124 | 2,811,980 | ||||||||
Semiconductors — 0.1% |
| |||||||||
Analog Devices Inc. | 20,447 | 1,011,922 |
See Notes to Schedules of Investments and Notes to Financial Statements.
7
Table of Contents
U.S. Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Soft Drinks — 3.3% |
| |||||||||
Coca-Cola Enterprises Inc. | 247,990 | $ | 11,000,836 | |||||||
PepsiCo Inc. | 174,367 | 16,231,824 | ||||||||
27,232,660 | ||||||||||
Specialized Finance — 1.8% |
| |||||||||
CME Group Inc. | 116,740 | 9,333,947 | ||||||||
McGraw Hill Financial Inc. | 70,640 | 5,965,548 | ||||||||
15,299,495 | ||||||||||
Specialized REITs — 1.6% |
| |||||||||
American Tower Corp. | 143,139 | 13,402,105 | ||||||||
Specialty Chemicals — 0.2% |
| |||||||||
PPG Industries Inc. | 6,692 | 1,316,584 | ||||||||
Specialty Stores — 0.6% |
| |||||||||
Dick’s Sporting Goods Inc. | 115,253 | 5,057,302 | ||||||||
Systems Software — 0.5% |
| |||||||||
Microsoft Corp. | 39,037 | 1,809,755 | ||||||||
Oracle Corp. | 59,478 | 2,276,818 | ||||||||
4,086,573 | ||||||||||
Technology Hardware, Storage & Peripherals — 6.3% |
| |||||||||
Apple Inc. | 187,376 | 18,878,132 | ||||||||
EMC Corp. | 695,238 | 20,342,664 | ||||||||
Hewlett-Packard Co. | 382,958 | 13,583,520 | ||||||||
52,804,316 | ||||||||||
Total Common Stock | 817,113,227 | |||||||||
Exchange Traded Funds — 1.4% | ||||||||||
Financial Select Sector SPDR Fund | 110,027 | 2,549,326 | (m) | |||||||
Industrial Select Sector SPDR Fund | 167,900 | 8,923,885 | (m) | |||||||
Total Exchange Traded Funds | 11,473,211 | |||||||||
Total Investments in Securities | 828,586,438 |
Fair Value | ||||||||
Short-Term Investments — 0.9% | ||||||||
State Street Institutional U.S. | $ | 7,219,575 | (d,m) | |||||
Total Investments | 835,806,013 | |||||||
Other Assets and Liabilities, | 1,062,279 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 836,868,292 | ||||||
|
| |||||||
Other Information: |
The Fund had the following short futures contracts open at September 30, 2014:
Description | Expiration Date | Number of | Current Notional Value | Unre alized Appre ciation | ||||||||||||||||
S&P 500 Emini Index Futures | December 2014 | 65 | $ | (6,387,875 | ) | $ | 39,862 |
See Notes to Schedules of Investments and Notes to Financial Statements.
8
Table of Contents
SSgA Funds Management, Inc. (“SSgA FM”) is the sub-adviser to the S&P 500 Index Fund. SSgA FM is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended, and is a wholly owned subsidiary of State Street Corporation (“State Street”), a publicly held bank holding company. SSgA FM, State Street and other advisory affiliates of State Street make up State Street Global Advisors (“SSgA”), the investment management arm of State Street.
SSgA FM manages portfolios using a team of investment professionals. The team approach is used to create an environment that encourages the flow of investment ideas. The portfolio managers within the team work together in a cohesive manner to develop and enhance techniques that drive the investment process for the respective investment strategy. This approach requires portfolio managers to share a variety of responsibilities including investment strategy and analysis while retaining responsibility for the implementation of the strategy within any particular portfolio. The approach also enables the team to draw upon the resources of other groups within the firm. Each portfolio management team is overseen by the SSgA FM Investment Committee. Key professionals involved in the day-to-day portfolio management for the Fund include Karl A. Schneider, CAIA and John Tucker, CFA. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional S&P 500 Index Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional S&P 500 Index Fund returned 19.54% for the Investment Class shares and 19.28% for the Service Class shares. The Fund’s benchmark, the S&P 500® Index returned 19.73% and the Fund’s Morningstar peer group of 1,577 U.S. Large Blend funds returned an average of 16.62% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | After a strong fourth quarter of 2013 markets started 2014 with mixed results. Positive earnings news from the U.S. provided some relief from the gloom, as did comments from Fed Chair, Janet Yellen, in testimony |
before the U.S. Senate. But despite stronger than expected economic data in the U.S. raising fears of imminent interest rate increases, investors had plenty of reasons to be worried which contributed to increased market volatility. |
In the U.S., given the continuing accommodative monetary policy backdrop, the S&P 500 crossed 2,000 for the first time ever on August 25th. As investors cheered, their confidence was further buoyed in the next few days by the report of a robust, revised 4.2% 2Q GDP growth rate and a positive jump in consumer confidence. Indeed, August’s consumer confidence print was the strongest since October 2007. Equity markets stumbled in September as the S&P 500 was down 1.40%, but large caps had a positive quarter (+1.13%) while small caps continued to struggle. Net profit margins for large-cap stocks continue to be near all-time highs, but concern is rising about how a strengthening dollar might impact large multinational companies. |
Q. | What were the primary drivers behind Fund performance? |
A. | Sector performance within the S&P 500 was mixed. The top two performing sectors in the twelve month period were information technology (+28.6%) and health care (+28.4%) sectors. Utilities (+16.5%) and telecommunication services (+13%) lagged the broader index and were the weakest contributors to the index return. |
9
Table of Contents
S&P 500 Index Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given
for your class under the heading “Expenses paid during the period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return |
| |||||||||||
Investment Class | 1,000.00 | 1,063.20 | 1.19 | |||||||||
Service Class | 1,000.00 | 1,061.90 | 2.48 | |||||||||
Hypothetical 5% Return (2.5% for the period) |
| |||||||||||
Investment Class | 1,000.00 | 1,023.92 | 1.17 | |||||||||
Service Class | 1,000.00 | 1,022.66 | 2.43 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.23%** for Investment Class shares and 0.48%** for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
** | May differ from expense ratio disclosed in the financial highlights, which is calculated based on the entire fiscal year’s data. |
10
Table of Contents
S&P 500 Index Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek growth of capital and accumulation of income that corresponds to the investment return of the S&P 500® Composite Stock Index (S&P 500® Index). The Fund seeks to replicate the return of the S&P 500® Index while holding transaction costs low and minimizing portfolio turnover.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 1,577 | 1,216 | 816 | |||
Peer group average annual total return | 16.62% | 13.75% | 7.24% |
Morningstar Category in peer group: Large Blend
Top Ten Largest Holdings as of September 30, 2014
(as a % of Fair Value) (b)(c)
Apple Inc. | 3.28% | |||
Exxon Mobil Corp. | 2.19% | |||
Microsoft Corp. | 2.08% | |||
Johnson & Johnson | 1.64% | |||
General Electric Co. | 1.40% | |||
Berkshire Hathaway Inc., Class B | 1.38% | |||
Wells Fargo & Co. | 1.35% | |||
The Procter & Gamble Co. | 1.23% | |||
JPMorgan Chase & Co. | 1.23% | |||
Chevron Corp. | 1.23% |
Sector Allocation as of September 30, 2014
Portfolio composition as a % of Fair Value of $39,356 (in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 11/25/97)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
S&P 500 Index Fund | 19.54% | 15.53% | 8.01% | $ | 21,600 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 8.11% | $ | 21,804 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 9/30/05)
One Year | Five Year | Since Inception | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
S&P 500 Index Fund | 19.28% | 15.23% | 7.28% | $ | 18,832 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 7.66% | $ | 19,424 |
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
11
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
S&P 500 Index Fund |
Number of Shares | Fair Value | |||||||||
Common Stock — 95.3%† |
| |||||||||
Advertising — 0.1% |
| |||||||||
Omnicom Group Inc. | 518 | $ | 35,669 | |||||||
The Interpublic Group of | 978 | 17,917 | ||||||||
53,586 | ||||||||||
Aerospace & Defense — 2.5% |
| |||||||||
General Dynamics Corp. | 697 | 88,582 | ||||||||
Honeywell International Inc. | 1,619 | 150,761 | ||||||||
L-3 Communications Holdings Inc. | 171 | 20,335 | ||||||||
Lockheed Martin Corp. | 584 | 106,744 | ||||||||
Northrop Grumman Corp. | 451 | 59,424 | ||||||||
Precision Castparts Corp. | 312 | 73,907 | ||||||||
Raytheon Co. | 694 | 70,524 | ||||||||
Rockwell Collins Inc. | 293 | 23,000 | ||||||||
Textron Inc. | 550 | 19,794 | ||||||||
The Boeing Co. | 1,470 | 187,249 | ||||||||
United Technologies Corp. | 1,844 | 194,726 | ||||||||
995,046 | ||||||||||
Agricultural & Farm Machinery — 0.2% |
| |||||||||
Deere & Co. | 765 | 62,722 | ||||||||
Agricultural Products — 0.2% |
| |||||||||
Archer-Daniels-Midland Co. | 1,347 | 68,832 | ||||||||
Air Freight & Logistics — 0.7% |
| |||||||||
CH Robinson Worldwide Inc. | 340 | 22,549 | ||||||||
Expeditors International of | 442 | 17,936 | ||||||||
FedEx Corp. | 605 | 97,677 | ||||||||
United Parcel Service Inc., Class B | 1,530 | 150,384 | ||||||||
288,546 | ||||||||||
Airlines — 0.3% |
| |||||||||
Delta Air Lines Inc. | 1,800 | 65,070 | ||||||||
Southwest Airlines Co. | 1,443 | 48,730 | ||||||||
113,800 | ||||||||||
Aluminum — 0.1% |
| |||||||||
Alcoa Inc. | 2,585 | 41,593 | ||||||||
Apparel Retail — 0.5% |
| |||||||||
L Brands Inc. | 502 | 33,624 | ||||||||
Ross Stores Inc. | 475 | 35,900 | ||||||||
The Gap Inc. | 538 | 22,429 | ||||||||
The TJX Companies Inc. | 1,475 | 87,276 | ||||||||
Urban Outfitters Inc. | 218 | 8,001 | (a) | |||||||
187,230 |
Number of Shares | Fair Value | |||||||||
Apparel, Accessories & Luxury Goods — 0.4% |
| |||||||||
Coach Inc. | 543 | $ | 19,336 | |||||||
Fossil Group Inc. | 40 | 3,756 | (a) | |||||||
Michael Kors Holdings Ltd. | 400 | 28,556 | (a) | |||||||
PVH Corp. | 166 | 20,111 | ||||||||
Ralph Lauren Corp. | 124 | 20,427 | ||||||||
Under Armour Inc., Class A | 369 | 25,498 | (a) | |||||||
VF Corp. | 770 | 50,843 | ||||||||
168,527 | ||||||||||
Application Software — 0.6% |
| |||||||||
Adobe Systems Inc. | 998 | 69,052 | (a) | |||||||
Autodesk Inc. | 490 | 26,999 | (a) | |||||||
Citrix Systems Inc. | 314 | 22,401 | (a) | |||||||
Intuit Inc. | 628 | 55,044 | ||||||||
Salesforce.com Inc. | 1,218 | 70,071 | (a) | |||||||
243,567 | ||||||||||
Asset Management & Custody Banks — 1.3% |
| |||||||||
Affiliated Managers Group Inc. | 126 | 25,245 | (a) | |||||||
Ameriprise Financial Inc. | 423 | 52,190 | ||||||||
BlackRock Inc. | 275 | 90,288 | ||||||||
Franklin Resources Inc. | 883 | 48,221 | ||||||||
Invesco Ltd. | 880 | 34,742 | ||||||||
Legg Mason Inc. | 199 | 10,181 | ||||||||
Northern Trust Corp. | 482 | 32,790 | ||||||||
State Street Corp. | 920 | 67,721 | (e) | |||||||
T Rowe Price Group Inc. | 587 | 46,021 | ||||||||
The Bank of New York Mellon Corp. | 2,408 | 93,262 | ||||||||
500,661 | ||||||||||
Auto Parts & Equipment — 0.3% |
| |||||||||
BorgWarner Inc. | 502 | 26,410 | ||||||||
Delphi Automotive PLC | 600 | 36,804 | ||||||||
Johnson Controls Inc. | 1,442 | 63,448 | ||||||||
126,662 | ||||||||||
Automobile Manufacturers — 0.5% |
| |||||||||
Ford Motor Co. | 8,251 | 122,032 | ||||||||
General Motors Co. | 2,892 | 92,371 | ||||||||
214,403 | ||||||||||
Automotive Retail — 0.3% |
| |||||||||
AutoNation Inc. | 103 | 5,182 | (a) | |||||||
AutoZone Inc. | 76 | 38,734 | (a) | |||||||
CarMax Inc. | 482 | 22,389 | (a) | |||||||
O’Reilly Automotive Inc. | 218 | 32,778 | (a) | |||||||
99,083 | ||||||||||
Biotechnology — 2.8% |
| |||||||||
Alexion Pharmaceuticals Inc. | 430 | 71,303 | (a) | |||||||
Amgen Inc. | 1,654 | 232,321 | ||||||||
Biogen Idec Inc. | 519 | 171,690 | (a) | |||||||
Celgene Corp. | 1,750 | 165,865 | (a) | |||||||
Gilead Sciences Inc. | 3,250 | 345,963 | (a) | |||||||
Regeneron Pharmaceuticals Inc. | 172 | 62,009 | (a) |
See Notes to Schedules of Investments and Notes to Financial Statements.
12
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Vertex Pharmaceuticals Inc. | 500 | $ | 56,155 | (a) | ||||||
1,105,306 | ||||||||||
Brewers — 0.1% |
| |||||||||
Molson Coors Brewing Co., Class B | 362 | 26,947 | ||||||||
Broadcasting — 0.3% |
| |||||||||
CBS Corp., Class B | 1,041 | 55,694 | ||||||||
Discovery Communications Inc., Class A | 240 | 9,072 | (a) | |||||||
Discovery Communications Inc., Class C | 640 | 23,859 | (a) | |||||||
Scripps Networks Interactive Inc., Class A | 232 | 18,117 | ||||||||
106,742 | ||||||||||
Building Products — 0.1% |
| |||||||||
Allegion PLC | 177 | 8,432 | ||||||||
Masco Corp. | 714 | 17,079 | ||||||||
25,511 | ||||||||||
Cable & Satellite — 1.2% |
| |||||||||
Cablevision Systems Corp., Class A | 388 | 6,794 | ||||||||
Comcast Corp., Class A | 5,572 | 299,662 | ||||||||
DIRECTV | 1,024 | 88,597 | (a) | |||||||
Time Warner Cable Inc. | 605 | 86,811 | ||||||||
481,864 | ||||||||||
Casinos & Gaming — 0.1% |
| |||||||||
Wynn Resorts Ltd. | 163 | 30,494 | ||||||||
Coal & Consumable Fuels — 0.0%* |
| |||||||||
CONSOL Energy Inc. | 460 | 17,416 | ||||||||
Commodity Chemicals — 0.3% |
| |||||||||
LyondellBasell Industries N.V., Class A | 940 | 102,140 | ||||||||
Communications Equipment — 1.6% |
| |||||||||
Cisco Systems Inc. | 10,880 | 273,850 | ||||||||
F5 Networks Inc. | 167 | 19,830 | (a) | |||||||
Harris Corp. | 225 | 14,940 | ||||||||
Juniper Networks Inc. | 961 | 21,286 | ||||||||
Motorola Solutions Inc. | 502 | 31,766 | ||||||||
QUALCOMM Inc. | 3,584 | 267,976 | ||||||||
629,648 | ||||||||||
Computer & Electronics Retail — 0.1% |
| |||||||||
Best Buy Company Inc. | 550 | 18,475 | ||||||||
GameStop Corp., Class A | 261 | 10,753 | ||||||||
29,228 | ||||||||||
Construction & Engineering — 0.1% |
| |||||||||
Fluor Corp. | 314 | 20,972 | ||||||||
Jacobs Engineering Group Inc. | 283 | 13,816 | (a) | |||||||
Quanta Services Inc. | 452 | 16,403 | (a) | |||||||
51,191 |
Number of Shares | Fair Value | |||||||||
Construction Machinery & Heavy Trucks — 0.6% |
| |||||||||
Caterpillar Inc. | 1,374 | $ | 136,067 | |||||||
Cummins Inc. | 381 | 50,285 | ||||||||
Joy Global Inc. | 151 | 8,236 | ||||||||
PACCAR Inc. | 789 | 44,874 | ||||||||
239,462 | ||||||||||
Construction Materials — 0.1% |
| |||||||||
Martin Marietta Materials Inc. | 141 | 18,181 | ||||||||
Vulcan Materials Co. | 302 | 18,189 | ||||||||
36,370 | ||||||||||
Consumer Electronics — 0.1% |
| |||||||||
Garmin Ltd. | 300 | 15,597 | ||||||||
Harman International Industries Inc. | 178 | 17,451 | ||||||||
33,048 | ||||||||||
Consumer Finance — 0.9% |
| |||||||||
American Express Co. | 1,892 | 165,626 | ||||||||
Capital One Financial Corp. | 1,234 | 100,719 | ||||||||
Discover Financial Services, Class A | 974 | 62,716 | ||||||||
Navient Corp. | 846 | 14,982 | ||||||||
344,043 | ||||||||||
Data Processing & Outsourced Services — 1.7% |
| |||||||||
Alliance Data Systems Corp. | 118 | 29,296 | (a) | |||||||
Automatic Data Processing Inc. | 1,041 | 86,486 | ||||||||
Computer Sciences Corp. | 282 | 17,244 | ||||||||
Fidelity National Information | 584 | 32,879 | ||||||||
Fiserv Inc. | 546 | 35,291 | (a) | |||||||
Mastercard Inc., Class A | 2,099 | 155,158 | ||||||||
Paychex Inc. | 719 | 31,780 | ||||||||
The Western Union Co. | 1,241 | 19,906 | ||||||||
Total System Services Inc. | 413 | 12,787 | ||||||||
Visa Inc., Class A | 1,101 | 234,920 | ||||||||
Xerox Corp. | 2,465 | 32,612 | ||||||||
688,359 | ||||||||||
Department Stores — 0.2% |
| |||||||||
Kohl’s Corp. | 415 | 25,328 | ||||||||
Macy’s Inc. | 790 | 45,962 | ||||||||
Nordstrom Inc. | 328 | 22,425 | ||||||||
93,715 | ||||||||||
Distillers & Vintners — 0.2% |
| |||||||||
Brown-Forman Corp., Class B | 339 | 30,585 | ||||||||
Constellation Brands Inc., Class A | 357 | 31,116 | (a) | |||||||
61,701 | ||||||||||
Distributors — 0.1% |
| |||||||||
Genuine Parts Co. | 362 | 31,751 | ||||||||
Diversified Banks — 4.9% |
| |||||||||
Bank of America Corp. | 22,562 | 384,682 |
See Notes to Schedules of Investments and Notes to Financial Statements.
13
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Citigroup Inc. | 6,527 | $ | 338,229 | |||||||
Comerica Inc. | 413 | 20,592 | ||||||||
JPMorgan Chase & Co. | 8,017 | 482,944 | ||||||||
U.S. Bancorp | 3,893 | 162,844 | ||||||||
Wells Fargo & Co. | 10,219 | 530,060 | ||||||||
1,919,351 | ||||||||||
Diversified Chemicals — 0.8% |
| |||||||||
Eastman Chemical Co. | 339 | 27,422 | ||||||||
EI du Pont de Nemours & Co. | 1,986 | 142,515 | ||||||||
FMC Corp. | 316 | 18,072 | ||||||||
The Dow Chemical Co. | 2,420 | 126,905 | ||||||||
314,914 | ||||||||||
Diversified Metals & Mining — 0.2% |
| |||||||||
Freeport-McMoRan Inc. | 2,288 | 74,703 | ||||||||
Diversified REITs — 0.1% |
| |||||||||
Vornado Realty Trust | 387 | 38,685 | ||||||||
Diversified Support Services — 0.0%* |
| |||||||||
Cintas Corp. | 188 | 13,271 | ||||||||
Drug Retail — 0.8% |
| |||||||||
CVS Health Corp. | 2,441 | 194,279 | ||||||||
Walgreen Co. | 1,875 | 111,131 | ||||||||
305,410 | ||||||||||
Electric Utilities — 1.6% |
| |||||||||
American Electric Power | 1,064 | 55,551 | ||||||||
Duke Energy Corp. | 1,524 | 113,949 | ||||||||
Edison International | 705 | 39,424 | ||||||||
Entergy Corp. | 390 | 30,159 | ||||||||
Exelon Corp. | 1,861 | 63,442 | ||||||||
FirstEnergy Corp. | 929 | 31,187 | ||||||||
NextEra Energy Inc. | 939 | 88,153 | ||||||||
Northeast Utilities | 698 | 30,921 | ||||||||
Pepco Holdings Inc. | 476 | 12,738 | ||||||||
Pinnacle West Capital Corp. | 255 | 13,933 | ||||||||
PPL Corp. | 1,381 | 45,352 | ||||||||
The Southern Co. | 1,923 | 83,939 | ||||||||
Xcel Energy Inc. | 1,101 | 33,470 | ||||||||
642,218 | ||||||||||
Electrical Components & Equipment — 0.6% |
| |||||||||
AMETEK Inc. | 500 | 25,105 | ||||||||
Eaton Corp. PLC | 1,012 | 64,130 | ||||||||
Emerson Electric Co. | 1,519 | 95,059 | ||||||||
Rockwell Automation Inc. | 326 | 35,821 | ||||||||
220,115 | ||||||||||
Electronic Components — 0.2% |
| |||||||||
Amphenol Corp., Class A | 361 | 36,049 | ||||||||
Corning Inc. | 2,722 | 52,644 | ||||||||
88,693 |
Number of Shares | Fair Value | |||||||||
Electronic Equipment & Instruments — 0.0%* |
| |||||||||
FLIR Systems Inc. | 308 | $ | 9,653 | |||||||
Electronic Manufacturing Services — 0.2% |
| |||||||||
Jabil Circuit Inc. | 502 | 10,125 | ||||||||
TE Connectivity Ltd. | 897 | 49,595 | ||||||||
59,720 | ||||||||||
Environmental & Facilities Services — 0.2% |
| |||||||||
Republic Services Inc. | 511 | 19,939 | ||||||||
Stericycle Inc. | 192 | 22,380 | (a) | |||||||
Waste Management Inc. | 921 | 43,775 | ||||||||
86,094 | ||||||||||
Fertilizers & Agricultural Chemicals — 0.5% |
| |||||||||
CF Industries Holdings Inc. | 116 | 32,389 | ||||||||
Monsanto Co. | 1,131 | 127,249 | ||||||||
The Mosaic Co. | 670 | 29,755 | ||||||||
189,393 | ||||||||||
Food Distributors — 0.1% |
| |||||||||
Sysco Corp. | 1,280 | 48,576 | ||||||||
Food Retail — 0.3% |
| |||||||||
Safeway Inc. | 443 | 15,195 | ||||||||
The Kroger Co. | 1,048 | 54,496 | ||||||||
Whole Foods Market Inc. | 750 | 28,582 | ||||||||
98,273 | ||||||||||
Footwear — 0.3% |
| |||||||||
NIKE Inc., Class B | 1,504 | 134,157 | ||||||||
Gas Utilities — 0.0%* |
| |||||||||
AGL Resources Inc. | 300 | 15,402 | ||||||||
General Merchandise Stores — 0.4% |
| |||||||||
Dollar General Corp. | 600 | 36,666 | (a) | |||||||
Dollar Tree Inc. | 472 | 26,465 | (a) | |||||||
Family Dollar Stores Inc. | 212 | 16,375 | ||||||||
Target Corp. | 1,357 | 85,057 | ||||||||
164,563 | ||||||||||
Gold — 0.1% |
| |||||||||
Newmont Mining Corp. | 1,110 | 25,585 | ||||||||
Health Care REITs — 0.3% |
| |||||||||
HCP Inc. | 961 | 38,161 | ||||||||
Health Care REIT Inc. | 681 | 42,474 | ||||||||
Ventas Inc. | 616 | 38,161 | ||||||||
118,796 | ||||||||||
Healthcare Distributors — 0.5% |
| |||||||||
AmerisourceBergen Corp. | 399 | 30,843 | ||||||||
Cardinal Health Inc. | 711 | 53,268 |
See Notes to Schedules of Investments and Notes to Financial Statements.
14
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
McKesson Corp. | 498 | $ | 96,946 | |||||||
Patterson Companies Inc. | 145 | 6,007 | ||||||||
187,064 | ||||||||||
Healthcare Equipment — 1.9% |
| |||||||||
Abbott Laboratories | 3,225 | 134,128 | ||||||||
Baxter International Inc. | 1,195 | 85,765 | ||||||||
Becton Dickinson and Co. | 422 | 48,028 | ||||||||
Boston Scientific Corp. | 2,915 | 34,426 | (a) | |||||||
CareFusion Corp. | 470 | 21,268 | (a) | |||||||
Covidien PLC | 979 | 84,693 | ||||||||
CR Bard Inc. | 161 | 22,976 | ||||||||
Edwards Lifesciences Corp. | 218 | 22,269 | (a) | |||||||
Intuitive Surgical Inc. | 85 | 39,255 | (a) | |||||||
Medtronic Inc. | 2,045 | 126,688 | ||||||||
St Jude Medical Inc. | 640 | 38,483 | ||||||||
Stryker Corp. | 636 | 51,357 | ||||||||
Varian Medical Systems Inc. | 199 | 15,944 | (a) | |||||||
Zimmer Holdings Inc. | 390 | 39,214 | ||||||||
764,494 | ||||||||||
Healthcare Facilities — 0.1% | ||||||||||
Tenet Healthcare Corp. | 212 | 12,591 | (a) | |||||||
Universal Health Services Inc., Class B | 200 | 20,900 | ||||||||
33,491 | ||||||||||
Healthcare Services — 0.5% | ||||||||||
DaVita Healthcare Partners Inc. | 388 | 28,378 | (a) | |||||||
Express Scripts Holding Co. | 1,540 | 108,770 | (a) | |||||||
Laboratory Corporation of America Holdings | 196 | 19,943 | (a) | |||||||
Quest Diagnostics Inc. | 327 | 19,843 | ||||||||
176,934 | ||||||||||
Healthcare Supplies — 0.0%* |
| |||||||||
DENTSPLY International Inc. | 259 | 11,810 | ||||||||
Healthcare Technology — 0.1% |
| |||||||||
Cerner Corp. | 624 | 37,172 | (a) | |||||||
Home Building — 0.1% | ||||||||||
DR Horton Inc. | 717 | 14,713 | ||||||||
Lennar Corp., Class A | 413 | 16,037 | ||||||||
PulteGroup Inc. | 660 | 11,655 | ||||||||
42,405 | ||||||||||
Home Entertainment Software — 0.1% | ||||||||||
Electronic Arts Inc. | 693 | 24,678 | (a) | |||||||
Home Furnishing Retail — 0.1% |
| |||||||||
Bed Bath & Beyond Inc. | 467 | 30,743 | (a) | |||||||
Home Furnishings — 0.1% | ||||||||||
Leggett & Platt Inc. | 265 | 9,254 | ||||||||
Mohawk Industries Inc. | 150 | 20,223 | (a) | |||||||
29,477 |
Number of Shares | Fair Value | |||||||||
Home Improvement Retail — 1.0% | ||||||||||
Lowe’s Companies Inc. | 2,147 | $ | 113,619 | |||||||
The Home Depot Inc. | 2,888 | 264,945 | ||||||||
378,564 | ||||||||||
Hotel & Resort REITs — 0.1% | ||||||||||
Host Hotels & Resorts Inc. | 1,688 | 36,005 | ||||||||
Hotels, Resorts & Cruise Lines — 0.3% | ||||||||||
Carnival Corp. | 986 | 39,608 | ||||||||
Marriott International Inc., Class A | 450 | 31,455 | ||||||||
Starwood Hotels & Resorts Worldwide Inc. | 418 | 34,782 | ||||||||
Wyndham Worldwide Corp. | 216 | 17,552 | ||||||||
123,397 | ||||||||||
Household Appliances — 0.1% | ||||||||||
Whirlpool Corp. | 155 | 22,576 | ||||||||
Household Products — 1.8% | ||||||||||
Colgate-Palmolive Co. | 1,782 | 116,222 | ||||||||
Kimberly-Clark Corp. | 818 | 87,992 | ||||||||
The Clorox Co. | 277 | 26,603 | ||||||||
The Procter & Gamble Co. | 5,796 | 485,357 | ||||||||
716,174 | ||||||||||
Housewares & Specialties — 0.0%* | ||||||||||
Newell Rubbermaid Inc. | 543 | 18,685 | ||||||||
Human Resource & Employment Services — 0.0%* | ||||||||||
Robert Half International Inc. | 275 | 13,475 | ||||||||
Hypermarkets & Super Centers — 1.0% |
| |||||||||
Costco Wholesale Corp. | 949 | 118,929 | ||||||||
Wal-Mart Stores Inc. | 3,419 | 261,451 | ||||||||
380,380 | ||||||||||
Independent Power Producers & Energy Traders — 0.1% | ||||||||||
AES Corp. | 1,488 | 21,100 | ||||||||
NRG Energy Inc. | 727 | 22,159 | ||||||||
43,259 | ||||||||||
Industrial Conglomerates — 2.2% | ||||||||||
3M Co. | 1,353 | 191,693 | ||||||||
Danaher Corp. | 1,323 | 100,521 | ||||||||
General Electric Co. | 21,502 | 550,881 | (k) | |||||||
Roper Industries Inc. | 223 | 32,623 | ||||||||
875,718 | ||||||||||
Industrial Gases — 0.4% | ||||||||||
Air Products & Chemicals Inc. | 370 | 48,167 | ||||||||
Airgas Inc. | 139 | 15,380 | ||||||||
Praxair Inc. | 635 | 81,915 | ||||||||
145,462 |
See Notes to Schedules of Investments and Notes to Financial Statements.
15
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Industrial Machinery — 0.7% | ||||||||||
Dover Corp. | 340 | $ | 27,312 | |||||||
Flowserve Corp. | 229 | 16,149 | ||||||||
Illinois Tool Works Inc. | 767 | 64,750 | ||||||||
Ingersoll-Rand PLC | 531 | 29,927 | ||||||||
Pall Corp. | 258 | 21,595 | ||||||||
Parker-Hannifin Corp. | 303 | 34,588 | ||||||||
Pentair PLC | 388 | 25,410 | ||||||||
Snap-on Inc. | 149 | 18,041 | ||||||||
Stanley Black & Decker Inc. | 362 | 32,142 | ||||||||
Xylem Inc. | 370 | 13,131 | ||||||||
283,045 | ||||||||||
Industrial REITs — 0.1% | ||||||||||
Prologis Inc. | 1,094 | 41,244 | ||||||||
Insurance Brokers — 0.3% | ||||||||||
Aon PLC | 656 | 57,511 | ||||||||
Marsh & McLennan Companies Inc. | 1,149 | 60,139 | ||||||||
117,650 | ||||||||||
Integrated Oil & Gas — 4.0% |
| |||||||||
Chevron Corp. | 4,047 | 482,888 | ||||||||
Exxon Mobil Corp. | 9,144 | 859,993 | ||||||||
Hess Corp. | 596 | 56,215 | ||||||||
Occidental Petroleum Corp. | 1,710 | 164,416 | ||||||||
1,563,512 | ||||||||||
Integrated Telecommunication Services — 2.3% | ||||||||||
AT&T Inc. | 11,114 | 391,657 | ||||||||
CenturyLink Inc. | 1,277 | 52,217 | ||||||||
Frontier Communications Corp. | 1,941 | 12,636 | ||||||||
Verizon Communications Inc. | 8,897 | 444,761 | ||||||||
Windstream Holdings Inc. | 1,095 | 11,804 | ||||||||
913,075 | ||||||||||
Internet Retail — 1.2% | ||||||||||
Amazon.com Inc. | 814 | 262,466 | (a) | |||||||
Expedia Inc. | 154 | 13,493 | ||||||||
Netflix Inc. | 131 | 59,105 | (a) | |||||||
The Priceline Group Inc. | 115 | 133,237 | (a) | |||||||
TripAdvisor Inc. | 254 | 23,221 | (a) | |||||||
491,522 | ||||||||||
Internet Software & Services — 3.3% | ||||||||||
Akamai Technologies Inc. | 368 | 22,006 | (a) | |||||||
eBay Inc. | 2,394 | 135,572 | (a) | |||||||
Facebook Inc., Class A | 4,153 | 328,253 | (a) | |||||||
Google Inc., Class A | 618 | 363,637 | (a) | |||||||
Google Inc., Class C | 618 | 356,809 | (a) | |||||||
VeriSign Inc. | 230 | 12,678 | (a) | |||||||
Yahoo! Inc. | 1,967 | 80,155 | (a) | |||||||
1,299,110 | ||||||||||
Investment Banking & Brokerage — 0.9% | ||||||||||
E*TRADE Financial Corp. | 511 | 11,543 | (a) |
Number of Shares | Fair Value | |||||||||
Morgan Stanley | 3,321 | $ | 114,807 | |||||||
The Charles Schwab Corp. | 2,386 | 70,125 | ||||||||
The Goldman Sachs Group Inc. | 901 | 165,397 | ||||||||
361,872 | ||||||||||
IT Consulting & Other Services — 1.4% | ||||||||||
Accenture PLC, Class A | 1,368 | 111,246 | ||||||||
Cognizant Technology Solutions Corp., Class A | 1,321 | 59,141 | (a) | |||||||
International Business Machines Corp. | 2,028 | 384,975 | ||||||||
Teradata Corp. | 366 | 15,343 | (a) | |||||||
570,705 | ||||||||||
Leisure Products — 0.1% | ||||||||||
Hasbro Inc. | 232 | 12,759 | ||||||||
Mattel Inc. | 756 | 23,171 | ||||||||
35,930 | ||||||||||
Life & Health Insurance — 0.9% | ||||||||||
Aflac Inc. | 912 | 53,124 | ||||||||
Lincoln National Corp. | 595 | 31,880 | ||||||||
MetLife Inc. | 2,408 | 129,358 | ||||||||
Principal Financial Group Inc. | 611 | 32,059 | ||||||||
Prudential Financial Inc. | 1,003 | 88,204 | ||||||||
Torchmark Corp. | 304 | 15,921 | ||||||||
Unum Group | 593 | 20,387 | ||||||||
370,933 | ||||||||||
Life Sciences Tools & Services — 0.4% |
| |||||||||
Agilent Technologies Inc. | 685 | 39,031 | ||||||||
PerkinElmer Inc. | 288 | 12,557 | ||||||||
Thermo Fisher Scientific Inc. | 879 | 106,974 | ||||||||
Waters Corp. | 173 | 17,148 | (a) | |||||||
175,710 | ||||||||||
Managed Healthcare — 1.0% |
| |||||||||
Aetna Inc. | 758 | 61,398 | ||||||||
Cigna Corp. | 599 | 54,323 | ||||||||
Humana Inc. | 357 | 46,514 | ||||||||
UnitedHealth Group Inc. | 2,028 | 174,915 | ||||||||
WellPoint Inc. | 589 | 70,456 | ||||||||
407,606 | ||||||||||
Metal & Glass Containers — 0.1% |
| |||||||||
Ball Corp. | 329 | 20,816 | ||||||||
Owens-Illinois Inc. | 419 | 10,915 | (a) | |||||||
31,731 | ||||||||||
Motorcycle Manufacturers — 0.1% |
| |||||||||
Harley-Davidson Inc. | 406 | 23,629 | ||||||||
Movies & Entertainment — 1.6% |
| |||||||||
The Walt Disney Co. | 3,395 | 302,257 | ||||||||
Time Warner Inc. | 1,831 | 137,709 | ||||||||
Twenty-First Century Fox Inc., Class A | 4,057 | 139,114 |
See Notes to Schedules of Investments and Notes to Financial Statements.
16
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Viacom Inc., Class B | 774 | $ | 59,552 | |||||||
638,632 | ||||||||||
Multi-Line Insurance — 0.6% |
| |||||||||
American International Group Inc. | 3,030 | 163,681 | ||||||||
Assurant Inc. | 146 | 9,388 | ||||||||
Genworth Financial Inc., Class A | 912 | 11,947 | (a) | |||||||
Loews Corp. | 671 | 27,954 | ||||||||
The Hartford Financial Services Group Inc. | 985 | 36,691 | ||||||||
249,661 | ||||||||||
Multi-Sector Holdings — 1.4% |
| |||||||||
Berkshire Hathaway Inc., Class B | 3,923 | 541,923 | (a) | |||||||
Leucadia National Corp. | 659 | 15,711 | ||||||||
557,634 | ||||||||||
Multi-Utilities — 1.1% |
| |||||||||
Ameren Corp. | 509 | 19,510 | ||||||||
CenterPoint Energy Inc. | 980 | 23,980 | ||||||||
CMS Energy Corp. | 544 | 16,135 | ||||||||
Consolidated Edison Inc. | 618 | 35,016 | ||||||||
Dominion Resources Inc. | 1,219 | 84,221 | ||||||||
DTE Energy Co. | 401 | 30,508 | ||||||||
Integrys Energy Group Inc. | 199 | 12,899 | ||||||||
NiSource Inc. | 716 | 29,342 | ||||||||
PG&E Corp. | 1,036 | 46,661 | ||||||||
Public Service Enterprise Group Inc. | 1,107 | 41,225 | ||||||||
SCANA Corp. | 277 | 13,742 | ||||||||
Sempra Energy | 497 | 52,374 | ||||||||
TECO Energy Inc. | 549 | 9,542 | ||||||||
Wisconsin Energy Corp. | 497 | 21,371 | ||||||||
436,526 | ||||||||||
Office REITs — 0.1% |
| |||||||||
Boston Properties Inc. | 318 | 36,812 | ||||||||
Office Services & Supplies — 0.0% * |
| |||||||||
Pitney Bowes Inc. | 520 | 12,995 | ||||||||
Oil & Gas Drilling — 0.2% |
| |||||||||
Diamond Offshore Drilling Inc. | 177 | 6,066 | ||||||||
Ensco PLC, Class A | 467 | 19,292 | ||||||||
Helmerich & Payne Inc. | 218 | 21,335 | ||||||||
Nabors Industries Ltd. | 534 | 12,154 | ||||||||
Noble Corp. PLC | 596 | 13,243 | ||||||||
Transocean Ltd. | 700 | 22,379 | ||||||||
94,469 | ||||||||||
Oil & Gas Equipment & Services — 1.5% |
| |||||||||
Baker Hughes Inc. | 925 | 60,180 | ||||||||
Cameron International Corp. | 389 | 25,822 | (a) | |||||||
FMC Technologies Inc. | 498 | 27,046 | (a) | |||||||
Halliburton Co. | 1,821 | 117,473 | ||||||||
National Oilwell Varco Inc. | 908 | 69,099 | ||||||||
Schlumberger Ltd. | 2,755 | 280,156 | ||||||||
579,776 |
Number of Shares | Fair Value | |||||||||
Oil & Gas Exploration & Production — 2.4% |
| |||||||||
Anadarko Petroleum Corp. | 1,111 | $ | 112,700 | |||||||
Apache Corp. | 764 | 71,717 | ||||||||
Cabot Oil & Gas Corp. | 868 | 28,375 | ||||||||
Chesapeake Energy Corp. | 1,121 | 25,772 | ||||||||
Cimarex Energy Co. | 200 | 25,306 | ||||||||
ConocoPhillips | 2,583 | 197,651 | ||||||||
Denbury Resources Inc. | 714 | 10,731 | ||||||||
Devon Energy Corp. | 833 | 56,794 | ||||||||
EOG Resources Inc. | 1,172 | 116,051 | ||||||||
EQT Corp. | 349 | 31,947 | ||||||||
Marathon Oil Corp. | 1,423 | 53,491 | ||||||||
Murphy Oil Corp. | 395 | 22,479 | ||||||||
Newfield Exploration Co. | 338 | 12,530 | (a) | |||||||
Noble Energy Inc. | 780 | 53,321 | ||||||||
Pioneer Natural Resources Co. | 311 | 61,258 | ||||||||
QEP Resources Inc. | 351 | 10,804 | ||||||||
Range Resources Corp. | 348 | 23,598 | ||||||||
Southwestern Energy Co. | 798 | 27,890 | (a) | |||||||
942,415 | ||||||||||
Oil & Gas Refining & Marketing — 0.5% |
| |||||||||
Marathon Petroleum Corp. | 557 | 47,161 | ||||||||
Phillips 66 | 1,152 | 93,669 | ||||||||
Tesoro Corp. | 267 | 16,282 | ||||||||
Valero Energy Corp. | 1,158 | 53,581 | ||||||||
210,693 | ||||||||||
Oil & Gas Storage & Transportation — 0.5% |
| |||||||||
Kinder Morgan Inc. | 1,383 | 53,024 | ||||||||
ONEOK Inc. | 461 | 30,218 | ||||||||
Spectra Energy Corp. | 1,410 | 55,357 | ||||||||
The Williams Companies Inc. | 1,386 | 76,715 | ||||||||
215,314 | ||||||||||
Packaged Foods & Meats — 1.4% |
| |||||||||
Campbell Soup Co. | 366 | 15,639 | ||||||||
ConAgra Foods Inc. | 933 | 30,826 | ||||||||
General Mills Inc. | 1,336 | 67,401 | ||||||||
Hormel Foods Corp. | 254 | 13,053 | ||||||||
Kellogg Co. | 565 | 34,804 | ||||||||
Keurig Green Mountain Inc. | 300 | 39,039 | ||||||||
Kraft Foods Group Inc. | 1,292 | 72,869 | ||||||||
McCormick & Company Inc. | 285 | 19,066 | ||||||||
Mead Johnson Nutrition Co. | 457 | 43,973 | ||||||||
Mondelez International Inc., Class A | 3,595 | 123,183 | ||||||||
The Hershey Co. | 299 | 28,534 | ||||||||
The JM Smucker Co. | 242 | 23,956 | ||||||||
Tyson Foods Inc., Class A | 669 | 26,338 | ||||||||
538,681 | ||||||||||
Paper Packaging — 0.1% |
| |||||||||
Avery Dennison Corp. | 170 | 7,591 | ||||||||
Bemis Company Inc. | 269 | 10,227 | ||||||||
MeadWestvaco Corp. | 317 | 12,978 | ||||||||
Sealed Air Corp. | 398 | 13,882 | ||||||||
44,678 |
See Notes to Schedules of Investments and Notes to Financial Statements.
17
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Paper Products — 0.1% |
| |||||||||
International Paper Co. | 926 | $ | 44,207 | |||||||
Personal Products — 0.1% |
| |||||||||
Avon Products Inc. | 860 | 10,836 | ||||||||
The Estee Lauder Companies Inc., Class A | 459 | 34,296 | ||||||||
45,132 | ||||||||||
Pharmaceuticals — 5.9% |
| |||||||||
AbbVie Inc. | 3,378 | 195,113 | ||||||||
Actavis PLC | 580 | 139,943 | (a) | |||||||
Allergan Inc. | 638 | 113,685 | ||||||||
Bristol-Myers Squibb Co. | 3,525 | 180,410 | ||||||||
Eli Lilly & Co. | 2,060 | 133,591 | ||||||||
Hospira Inc. | 337 | 17,534 | (a) | |||||||
Johnson & Johnson | 6,061 | 646,042 | ||||||||
Mallinckrodt PLC | 261 | 23,529 | (a) | |||||||
Merck & Company Inc. | 6,172 | 365,876 | ||||||||
Mylan Inc. | 821 | 37,347 | (a) | |||||||
Perrigo Co. PLC | 294 | 44,156 | ||||||||
Pfizer Inc. | 13,605 | 402,300 | ||||||||
Zoetis Inc. | 1,101 | 40,682 | ||||||||
2,340,208 | ||||||||||
Property & Casualty Insurance — 0.8% |
| |||||||||
ACE Ltd. | 716 | 75,087 | ||||||||
Cincinnati Financial Corp. | 316 | 14,868 | ||||||||
The Allstate Corp. | 869 | 53,330 | ||||||||
The Chubb Corp. | 545 | 49,639 | ||||||||
The Progressive Corp. | 1,213 | 30,665 | ||||||||
The Travelers Companies Inc. | 681 | 63,973 | ||||||||
XL Group PLC | 523 | 17,348 | ||||||||
304,910 | ||||||||||
Publishing — 0.1% |
| |||||||||
Gannett Company Inc. | 528 | 15,666 | ||||||||
News Corp., Class A | 1,145 | 18,720 | (a) | |||||||
34,386 | ||||||||||
Railroads — 1.0% |
| |||||||||
CSX Corp. | 2,205 | 70,692 | ||||||||
Kansas City Southern | 221 | 26,785 | ||||||||
Norfolk Southern Corp. | 673 | 75,107 | ||||||||
Union Pacific Corp. | 1,885 | 204,372 | ||||||||
376,956 | ||||||||||
Real Estate Services — 0.0%* |
| |||||||||
CBRE Group Inc., Class A | 551 | 16,387 | (a) | |||||||
Regional Banks — 0.9% |
| |||||||||
BB&T Corp. | 1,548 | 57,601 | ||||||||
Fifth Third Bancorp | 1,705 | 34,134 | ||||||||
Huntington Bancshares Inc. | 1,921 | 18,691 | ||||||||
KeyCorp | 1,727 | 23,021 | ||||||||
M&T Bank Corp. | 295 | 36,371 |
Number of Shares | Fair Value | |||||||||
Regions Financial Corp. | 3,160 | $ | 31,726 | |||||||
SunTrust Banks Inc. | 1,171 | 44,533 | ||||||||
The PNC Financial Services Group Inc. | 1,149 | 98,332 | ||||||||
Zions Bancorporation | 469 | 13,629 | ||||||||
358,038 | ||||||||||
Research & Consulting Services — 0.1% |
| |||||||||
Equifax Inc. | 197 | 14,724 | ||||||||
Nielsen N.V. | 658 | 29,169 | ||||||||
The Dun & Bradstreet Corp. | 87 | 10,220 | ||||||||
54,113 | ||||||||||
Residential REITs — 0.3% |
| |||||||||
Apartment Investment & Management Co., Class A | 323 | 10,278 | ||||||||
AvalonBay Communities Inc. | 257 | 36,229 | ||||||||
Equity Residential | 793 | 48,833 | ||||||||
Essex Property Trust Inc. | 138 | 24,668 | ||||||||
120,008 | ||||||||||
Restaurants — 1.1% |
| |||||||||
Chipotle Mexican Grill Inc. | 69 | 45,995 | (a) | |||||||
Darden Restaurants Inc. | 248 | 12,762 | ||||||||
McDonald’s Corp. | 2,061 | 195,403 | ||||||||
Starbucks Corp. | 1,622 | 122,396 | ||||||||
Yum! Brands Inc. | 950 | 68,381 | ||||||||
444,937 | ||||||||||
Retail REITs — 0.5% |
| |||||||||
General Growth Properties Inc. | 1,400 | 32,970 | ||||||||
Kimco Realty Corp. | 924 | 20,245 | ||||||||
Simon Property Group Inc. | 675 | 110,983 | ||||||||
The Macerich Co. | 300 | 19,149 | ||||||||
183,347 | ||||||||||
Security & Alarm Services — 0.1% |
| |||||||||
The ADT Corp. | 390 | 13,830 | ||||||||
Tyco International Ltd. | 983 | 43,812 | ||||||||
57,642 | ||||||||||
Semiconductor Equipment — 0.3% |
| |||||||||
Applied Materials Inc. | 2,700 | 58,347 | ||||||||
KLA-Tencor Corp. | 385 | 30,330 | ||||||||
Lam Research Corp. | 366 | 27,340 | ||||||||
116,017 | ||||||||||
Semiconductors — 2.0% |
| |||||||||
Altera Corp. | 641 | 22,935 | ||||||||
Analog Devices Inc. | 672 | 33,257 | ||||||||
Avago Technologies Ltd. | 563 | 48,981 | ||||||||
Broadcom Corp., Class A | 1,138 | 45,998 | ||||||||
First Solar Inc. | 139 | 9,148 | (a) | |||||||
Intel Corp. | 10,554 | 367,490 | ||||||||
Linear Technology Corp. | 492 | 21,840 | ||||||||
Microchip Technology Inc. | 460 | 21,726 | ||||||||
Micron Technology Inc. | 2,362 | 80,922 | (a) | |||||||
NVIDIA Corp. | 1,076 | 19,852 |
See Notes to Schedules of Investments and Notes to Financial Statements.
18
Table of Contents
S&P 500 Index Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Texas Instruments Inc. | 2,330 | $ | 111,118 | |||||||
Xilinx Inc. | 557 | 23,589 | ||||||||
806,856 | ||||||||||
Soft Drinks — 1.9% |
| |||||||||
Coca-Cola Enterprises Inc. | 530 | 23,511 | ||||||||
Dr Pepper Snapple Group Inc. | 441 | 28,361 | ||||||||
Monster Beverage Corp. | 300 | 27,501 | (a) | |||||||
PepsiCo Inc. | 3,208 | 298,633 | ||||||||
The Coca-Cola Co. | 8,445 | 360,263 | ||||||||
738,269 | ||||||||||
Specialized Consumer Services — 0.1% |
| |||||||||
H&R Block Inc. | 623 | 19,319 | ||||||||
Specialized Finance — 0.5% |
| |||||||||
CME Group Inc. | 659 | 52,690 | ||||||||
Intercontinental Exchange Inc. | 241 | 47,007 | ||||||||
McGraw Hill Financial Inc. | 599 | 50,586 | ||||||||
Moody’s Corp. | 406 | 38,367 | ||||||||
The NASDAQ OMX Group Inc. | 291 | 12,344 | ||||||||
200,994 | ||||||||||
Specialized REITs — 0.7% |
| |||||||||
American Tower Corp. | 857 | 80,241 | ||||||||
Crown Castle International Corp. | 711 | 57,257 | ||||||||
Iron Mountain Inc. | 375 | 12,244 | ||||||||
Plum Creek Timber Company Inc. | 415 | 16,189 | ||||||||
Public Storage | 315 | 52,240 | ||||||||
Weyerhaeuser Co. | 1,175 | 37,435 | ||||||||
255,606 | ||||||||||
Specialty Chemicals — 0.6% |
| |||||||||
Ecolab Inc. | 598 | 68,668 | ||||||||
International Flavors & Fragrances Inc. | 172 | 16,491 | ||||||||
PPG Industries Inc. | 302 | 59,416 | ||||||||
Sigma-Aldrich Corp. | 250 | 34,003 | ||||||||
The Sherwin-Williams Co. | 175 | 38,323 | ||||||||
216,901 | ||||||||||
Specialty Stores — 0.2% |
| |||||||||
PetSmart Inc. | 200 | 14,018 | ||||||||
Staples Inc. | 1,228 | 14,859 | ||||||||
Tiffany & Co. | 264 | 25,426 | ||||||||
Tractor Supply Co. | 300 | 18,453 | ||||||||
72,756 | ||||||||||
Steel — 0.1% | ||||||||||
Allegheny Technologies Inc. | 271 | 10,054 | ||||||||
Nucor Corp. | 702 | 38,105 | ||||||||
48,159 | ||||||||||
Systems Software — 3.0% |
| |||||||||
CA Inc. | 726 | 20,284 | ||||||||
Microsoft Corp. | 17,666 | 818,996 | ||||||||
Oracle Corp. | 6,928 | 265,204 | ||||||||
Red Hat Inc. | 431 | 24,200 | (a) | |||||||
Symantec Corp. | 1,527 | 35,900 | ||||||||
1,164,584 | ||||||||||
Technology Hardware, Storage & Peripherals — 4.4% |
| |||||||||
Apple Inc. | 12,826 | 1,292,220 | ||||||||
EMC Corp. | 4,271 | 124,969 | ||||||||
Hewlett-Packard Co. | 3,984 | 141,313 | ||||||||
NetApp Inc. | 639 | 27,451 |
Number of Shares | Fair Value | |||||||||
SanDisk Corp. | 466 | $ | 45,645 | |||||||
Seagate Technology PLC | 700 | 40,089 | ||||||||
Western Digital Corp. | 464 | 45,156 | ||||||||
1,716,843 | ||||||||||
Thrifts & Mortgage Finance — 0.0%* |
| |||||||||
Hudson City Bancorp Inc. | 945 | 9,185 | ||||||||
People’s United Financial Inc. | 561 | 8,118 | ||||||||
17,303 | ||||||||||
Tires & Rubber — 0.0%* |
| |||||||||
The Goodyear Tire & Rubber Co. | 623 | 14,070 | ||||||||
Tobacco — 1.4% |
| |||||||||
Altria Group Inc. | 4,260 | 195,704 | ||||||||
Lorillard Inc. | 795 | 47,629 | ||||||||
Philip Morris International Inc. | 3,371 | 281,141 | ||||||||
Reynolds American Inc. | 654 | 38,586 | ||||||||
563,060 | ||||||||||
Trading Companies & Distributors — 0.2% |
| |||||||||
Fastenal Co. | 621 | 27,883 | ||||||||
United Rentals Inc. | 200 | 22,220 | (a) | |||||||
WW Grainger Inc. | 123 | 30,953 | ||||||||
81,056 | ||||||||||
Trucking — 0.0%* |
| |||||||||
Ryder System Inc. | 131 | 11,786 | ||||||||
Total Common Stock | 37,628,139 | |||||||||
Short-Term Investments — 4.4% |
| |||||||||
State Street Institutional U.S. Government Money Market Fund - Premier Class 0.00% | 1,727,507 | (d,n) | ||||||||
Total Investments | 39,355,646 | |||||||||
Other Assets and Liabilities, | 120,117 | |||||||||
|
| |||||||||
NET ASSETS — 100.0% | $ | 39,475,763 | ||||||||
|
| |||||||||
Other Information: |
The Fund had the following long futures contracts open at September 30, 2014:
Description | Expiration date | Number of Contracts | Current Notional Value | Unre alized Depre ciation | ||||||||||||||||
S&P 500 Emini Index Futures | December 2014 | 18 | $ | 1,768,950 | $ | (10,258 | ) |
See Notes to Schedules of Investments and Notes to Financial Statements.
19
Table of Contents
U.S. Large-Cap Core Equity Fund |
Stephen V. Gelhaus
Senior Vice President
Paul C. Reinhardt
Senior Vice President
The U.S. Large-Cap Core Equity Fund is co-managed by Paul C. Reinhardt and Stephen V. Gelhaus. Messrs. Reinhardt and Gelhaus both manage the Fund as a collaborative team. Both portfolio managers have the authority to increase or decrease existing positions in the Fund; however, Mr. Reinhardt, as lead manager, is vested with the authority to purchase securities that are new to the Fund or to divest the Fund of its entire position in a security. Mr. Reinhardt also has veto authority over Mr. Gelhaus’ trade decisions. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional U.S. Large-Cap Core Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional U.S. Large-Cap Core Equity Fund returned 18.60% for the Investment Class shares and 18.32% for the Service Class shares. The Fund’s benchmark, the S&P 500 Index returned 19.73% and the Fund’s Morningstar peer group of 1,577 US Large Blend funds returned an average of 16.62% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | Investor confidence in the U.S. economy drove equities higher in the last twelve months. Each sector within the S&P 500 achieved double-digit advances as employment, housing and manufacturing sectors improved. S&P 500 stocks ended the year up almost 20% and just 2% shy of all-time highs. Stocks scaled a wall of geopolitical worry, including Mid-east tensions and Russia’s assertive actions in Crimea and the Ukraine. Meanwhile, Chinese growth concerns added a cautious note to global equity investing; and in this environment the U.S. was the best performing major equity market on the global stage. |
Large cap stocks significantly outperformed smaller-cap indices, and within large caps, there was no clear style leadership. Energy prices were whipsawed during the year, and oil prices weakened to the lowest levels of the year at September 30, 2014. The energy sector lagged as commodity prices dropped, while the consumer discretionary sector — one of the prior year’s leading sectors — also underperformed. Health care and information technology were among the top-performing sectors in the S&P 500. However, as 10-year treasury yields declined to 2.49% by year-end — in response to slowing global growth and declining European bond yields — selected higher yielding areas of the market outperformed, including pharmaceuticals companies while performance was mixed among financials. |
Q. | What were the primary drivers behind Fund performance? |
A. | Commodity weakness actually benefitted one of the Fund’s specialty chemicals holdings as falling chemical feedstock prices bolstered its profit outlook. This top-contributing materials stock boasted structurally-advantaged North American ethylene margins and a strong free cash flow position throughout the year. The Fund had positive contributions from several stock selections within the consumer staples sector: 1) an integrated retail pharmacy/health care provider that rallied over 42% due to its stability and premium earnings growth; 2) a food company enjoyed strong underlying fundamentals in its agricultural business and an outlook for bumper crops; and 3) a consumer packaged goods company soared as it announced the split of its household and personal care businesses — a catalyst to unlock value. The Fund’s auto-related consumer discretionary selections also bolstered performance, including specialty retailers and components suppliers. |
20
Table of Contents
(Unaudited) |
The primary detractors from performance were in the technology, health care and industrials sectors. Within technology, underweighting a leading innovator in the smart-phone market weighed on returns as that stock rallied. A storage/cloud company also underperformed alongside relative weakness in one of the Fund’s two semi-conductor holdings. Within health care, we missed run-ups in some of the higher-multiple biotechnology stocks which have enjoyed great runs, but do not fit the Fund’s relative-value investment discipline. The main detractor in the industrials sector was an electrical equipment manufacturer, and amid ongoing execution issues we reduced our weighting in the holding. |
Q. | Were there any significant changes in the Fund during the period? |
A. | The Fund consistently applied its relative value discipline on a stock-by-stock basis, investing in companies with attractive valuations, high free-cash flow generation, strong management teams, and improving profit outlooks. The Fund stood at 74 holdings at September 30th, as the Fund managers continued to strengthen focus on the stocks they believed had the best long-term performance prospects. As such, the number of large overweights (i.e., a position size 1.5% or greater relative to the weight of the stock in the S&P 500) increased during the year. We believe this emphasis on “high conviction” stocks creates the potential for increased excess returns due to stock selection. |
In terms of positioning, the Fund increased its overweight exposure to financials as it found several attractively valued stocks in the sector. As the business cycle ages, the Fund added to more defensive areas of the market, going from underweight to overweight in the utilities, consumer staples and telecommunications sectors. The Fund took profits in many consumer discretionary holdings and went from an overweight to an underweight positioning in the sector. The Fund also increased its underweight in information technology, trimming and eliminating positions where the fundamental view had deteriorated. |
21
Table of Contents
U.S. Large-Cap Core Equity Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given
for your class under the heading “Expenses paid during the period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return |
| |||||||||||
Investment Class | 1,000.00 | 1,051.90 | 2.21 | |||||||||
Service Class | 1,000.00 | 1,051.30 | 3.50 | |||||||||
Hypothetical 5% Return (2.5% for the period) |
| |||||||||||
Investment Class | 1,000.00 | 1,022.91 | 2.18 | |||||||||
Service Class | 1,000.00 | 1,021.66 | 3.45 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.43% for Investment Class shares and 0.68% for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
22
Table of Contents
U.S. Large-Cap Core Equity Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital and future income. The Fund seeks to achieve its investment objectives by investing at least 80% of its net assets under normal circumstances in equity securities of large-capitalization U.S. companies, such as common and preferred stocks. The Fund invests in U.S. large-cap companies (meaning companies with a market capitalization of $8 billion or more) that the portfolio managers believe are undervalued by the market but have solid growth prospects.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 1,577 | 1,216 | 816 | |||
Peer group average annual total return | 16.62% | 13.75% | 7.24% |
Morningstar Category in peer group: Large Blend
Top Ten Largest Holdings as of September 30, 2014
(as a % of Fair Value) (b)(c)
Verizon Communications Inc. | 2.56% | |||
Apple Inc. | 2.56% | |||
Pfizer Inc. | 2.53% | |||
Johnson & Johnson | 2.50% | |||
Citigroup Inc. | 2.49% | |||
Exxon Mobil Corp. | 2.48% | |||
PepsiCo Inc. | 2.24% | |||
Cisco Systems Inc. | 2.23% | |||
QUALCOMM Inc. | 2.13% | |||
Amgen Inc. | 2.10% |
Sector Allocation as of September 30, 2014
Portfolio composition as a % of Fair Value of $99,585 (in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 2/2/00)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
U.S. Large-Cap Core Equity Fund | 18.60% | 14.25% | 8.86% | $ | 23,362 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 8.11% | $ | 21,804 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 9/30/05)
One Year | Five Year | Since Inception | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
U.S. Large-Cap Core Equity Fund | 18.32% | 13.96% | 8.30% | $ | 20,506 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 7.66% | $ | 19,424 |
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
23
Table of Contents
U.S. Large-Cap Core Equity Fund
Schedule of Investments | September 30, 2014 |
U.S. Large-Cap Core Equity Fund |
Number of Shares | Fair Value | |||||||||
Common Stock — 93.9%† | ||||||||||
Aerospace & Defense — 4.3% | ||||||||||
General Dynamics Corp. | 6,381 | $ | 810,961 | |||||||
Hexcel Corp. | 11,166 | 443,290 | (a) | |||||||
Honeywell International Inc. | 20,631 | 1,921,159 | ||||||||
The Boeing Co. | 9,039 | 1,151,388 | ||||||||
4,326,798 | ||||||||||
Agricultural Products — 1.7% | ||||||||||
Archer-Daniels-Midland Co. | 32,967 | 1,684,614 | ||||||||
Airlines — 1.0% | ||||||||||
Delta Air Lines Inc. | 26,586 | 961,084 | ||||||||
Asset Management & Custody Banks — 4.7% | ||||||||||
Ameriprise Financial Inc. | 12,442 | 1,535,094 | ||||||||
Invesco Ltd. | 40,411 | 1,595,426 | ||||||||
State Street Corp. | 21,268 | 1,565,538 | (e) | |||||||
4,696,058 | ||||||||||
Auto Parts & Equipment — 0.4% | ||||||||||
TRW Automotive Holdings Corp. | 4,255 | 430,819 | (a) | |||||||
Automobile Manufacturers — 1.2% | ||||||||||
Ford Motor Co. | 80,822 | 1,195,357 | ||||||||
Automotive Retail — 0.7% | ||||||||||
AutoZone Inc. | 1,383 | 704,860 | (a) | |||||||
Biotechnology — 2.1% | ||||||||||
Amgen Inc. | 14,888 | 2,091,168 | ||||||||
Broadcasting — 0.9% | ||||||||||
CBS Corp., Class B | 17,015 | 910,302 | ||||||||
Cable & Satellite — 1.1% | ||||||||||
Comcast Corp., Class A | 21,269 | 1,143,847 | (h) | |||||||
Commodity Chemicals — 1.4% | ||||||||||
LyondellBasell Industries N.V., Class A | 13,293 | 1,444,417 | ||||||||
Communications Equipment — 4.3% | ||||||||||
Cisco Systems Inc. | 88,266 | 2,221,655 | ||||||||
QUALCOMM Inc. | 28,394 | 2,123,020 | ||||||||
4,344,675 | ||||||||||
Consumer Finance — 1.7% | ||||||||||
American Express Co. | 19,141 | 1,675,603 | (h) |
Number of Shares | Fair Value | |||||||||
Department Stores — 0.9% | ||||||||||
Macy’s Inc. | 15,739 | $ | 915,695 | |||||||
Diversified Banks — 5.9% | ||||||||||
Citigroup Inc. | 47,855 | 2,479,846 | ||||||||
JPMorgan Chase & Co. | 34,349 | 2,069,184 | ||||||||
Wells Fargo & Co. | 26,586 | 1,379,016 | ||||||||
5,928,046 | ||||||||||
Drug Retail — 2.0% | ||||||||||
CVS Health Corp. | 24,459 | 1,946,692 | ||||||||
Electric Utilities — 0.8% | ||||||||||
NextEra Energy Inc. | 8,507 | 798,637 | ||||||||
Electrical Components & Equipment — 1.4% | ||||||||||
Eaton Corp. PLC | 22,332 | 1,415,179 | ||||||||
General Merchandise Stores — 2.3% | ||||||||||
Dollar General Corp. | 26,586 | 1,624,671 | (a) | |||||||
Target Corp. | 10,634 | 666,539 | ||||||||
2,291,210 | ||||||||||
Healthcare Distributors — 1.2% | ||||||||||
Cardinal Health Inc. | 16,483 | 1,234,906 | ||||||||
Healthcare Equipment — 1.7% | ||||||||||
Boston Scientific Corp. | 95,710 | 1,130,335 | (a) | |||||||
Stryker Corp. | 6,381 | 515,266 | ||||||||
1,645,601 | ||||||||||
Home Improvement Retail — 1.4% | ||||||||||
Lowe’s Companies Inc. | 27,118 | 1,435,085 | ||||||||
Household Products — 0.5% | ||||||||||
Energizer Holdings Inc. | 4,254 | 524,135 | ||||||||
Independent Power Producers & Energy Traders — 2.7% | ||||||||||
AES Corp. | 59,553 | 844,461 | ||||||||
Calpine Corp. | 45,728 | 992,298 | (a) | |||||||
NRG Energy Inc. | 28,288 | 862,218 | ||||||||
2,698,977 | ||||||||||
Integrated Oil & Gas — 6.1% | ||||||||||
Cenovus Energy Inc. | 21,269 | 571,711 | ||||||||
Exxon Mobil Corp. | 26,267 | 2,470,411 | (h) | |||||||
Hess Corp. | 12,762 | 1,203,712 | ||||||||
Occidental Petroleum Corp. | 19,674 | 1,891,655 | ||||||||
6,137,489 | ||||||||||
Integrated Telecommunication Services — 2.6% | ||||||||||
Verizon Communications Inc. | 51,045 | 2,551,739 |
See Notes to Schedules of Investments and Notes to Financial Statements.
24
Table of Contents
U.S. Large-Cap Core Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Internet Software & Services — 1.9% | ||||||||||
Google Inc., Class A | 3,233 | $ | 1,902,329 | (a) | ||||||
Life Sciences Tools & Services — 0.6% | ||||||||||
PerkinElmer Inc. | 12,761 | 556,380 | ||||||||
Movies & Entertainment — 1.0% | ||||||||||
Time Warner Inc. | 13,825 | 1,039,778 | ||||||||
Multi-Line Insurance — 4.0% | ||||||||||
American International Group Inc. | 34,881 | 1,884,272 | (h) | |||||||
Genworth Financial Inc., Class A | 31,903 | 417,929 | (a) | |||||||
The Hartford Financial Services Group Inc. | 44,665 | 1,663,771 | ||||||||
3,965,972 | ||||||||||
Oil & Gas Equipment & Services — 4.7% | ||||||||||
Cameron International Corp. | 17,547 | 1,164,770 | (a) | |||||||
Halliburton Co. | 22,864 | 1,474,957 | ||||||||
Schlumberger Ltd. | 18,079 | 1,838,453 | ||||||||
Weatherford International PLC | 10,634 | 221,187 | (a) | |||||||
4,699,367 | ||||||||||
Oil & Gas Exploration & Production — 1.6% | ||||||||||
Marathon Oil Corp. | 41,474 | 1,559,008 | ||||||||
Packaged Foods & Meats — 1.6% | ||||||||||
Mondelez International Inc., Class A | 47,855 | 1,639,752 | ||||||||
Pharmaceuticals — 8.1% | ||||||||||
Actavis PLC | 7,763 | 1,873,057 | (a) | |||||||
GlaxoSmithKline PLC ADR | 9,571 | 439,979 | ||||||||
Johnson & Johnson | 23,396 | 2,493,779 | ||||||||
Merck & Company Inc. | 12,762 | 756,531 | ||||||||
Pfizer Inc. | 85,075 | 2,515,668 | ||||||||
8,079,014 | ||||||||||
Publishing — 0.1% | ||||||||||
Tribune Media Co., Class A | 2,127 | 139,957 | (a) | |||||||
Railroads — 0.3% | ||||||||||
CSX Corp. | 10,634 | 340,926 | ||||||||
Regional Banks — 1.3% | ||||||||||
Regions Financial Corp. | 127,614 | 1,281,245 | ||||||||
Research & Consulting Services — 0.7% | ||||||||||
Nielsen N.V. | 14,888 | 659,985 | ||||||||
Semiconductor Equipment — 0.8% | ||||||||||
Applied Materials Inc. | 37,221 | 804,346 |
Number of Shares | Fair Value | |||||||||
Semiconductors — 0.3% | ||||||||||
Analog Devices Inc. | 5,849 | $ | 289,467 | |||||||
Soft Drinks — 3.8% | ||||||||||
Coca-Cola Enterprises Inc. | 36,157 | 1,603,925 | ||||||||
PepsiCo Inc. | 23,928 | 2,227,457 | ||||||||
3,831,382 | ||||||||||
Specialized REITs — 1.6% | ||||||||||
American Tower Corp. | 17,547 | 1,642,926 | ||||||||
Specialty Chemicals — 0.4% | ||||||||||
PPG Industries Inc. | 1,914 | 376,560 | ||||||||
Systems Software — 1.2% | ||||||||||
Microsoft Corp. | 11,166 | 517,656 | ||||||||
Oracle Corp. | 17,015 | 651,334 | ||||||||
1,168,990 | ||||||||||
Technology Hardware, Storage & Peripherals — 4.9% | ||||||||||
Apple Inc. | 25,310 | 2,549,983 | ||||||||
EMC Corp. | 37,220 | 1,089,057 | ||||||||
Hewlett-Packard Co. | 35,094 | 1,244,784 | ||||||||
4,883,824 | ||||||||||
Total Common Stock | 93,994,201 | |||||||||
Exchange Traded Funds — 1.3% | ||||||||||
Financial Select Sector SPDR Fund | 11,595 | 268,656 | (m) | |||||||
Industrial Select Sector SPDR Fund | 20,026 | 1,064,382 | (m) | |||||||
Total Exchange Traded Funds | 1,333,038 | |||||||||
Total Investments in Securities | 95,327,239 | |||||||||
Short-Term Investments — 4.3% |
| |||||||||
State Street Institutional U.S. Government Money Market Fund - Premier Class 0.00% | 4,257,640 | (d,m) | ||||||||
Total Investments | 99,584,879 | |||||||||
Other Assets and Liabilities, | 546,479 | |||||||||
|
| |||||||||
NET ASSETS — 100.0% | $ | 100,131,358 | ||||||||
|
|
See Notes to Schedules of Investments and Notes to Financial Statements.
25
Table of Contents
U.S. Large-Cap Core Equity Fund
Schedule of Investments | September 30, 2014 |
Other Information: |
The Fund had the following long futures contracts open at September 30, 2014:
Description | Expiration date | Number of Contracts | Current Notional Value | Unre alized Depre ciation | ||||||||||||||||
S&P 500 Emini Index Futures | December 2014 | 39 | $ | 3,832,725 | $ | (21,701 | ) |
See Notes to Schedules of Investments and Notes to Financial Statements.
26
Table of Contents
David B. Carlson Chief Investment Officer – U.S. Equities
The Premier Growth Equity Fund is managed by David B. Carlson. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional Premier Growth Equity Fund perform compared to its benchmarks and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional Premier Growth Equity Fund returned 19.80% for the Investment Class shares and 19.56% for the Service Class shares. The Fund’s benchmarks, the S&P 500® Index and the Russell 1000 Growth Index returned 19.73% and 19.14%, respectively, and the Fund’s Morningstar peer group of 1,714 US Large Growth funds returned an average of 16.29% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | Investor confidence in the U.S. economy drove equities higher in the last twelve months. Each sector within the S&P 500 and Russell 1000 Growth achieved double-digit advances as employment, housing and manufacturing sectors improved. S&P 500 stocks ended the year up almost 20% and just 2% shy of all-time highs. Stocks scaled a wall of geopolitical worry, including Mid-East tensions and Russia’s assertive actions in Crimea and the Ukraine. Meanwhile, Chinese growth concerns added a cautious note to global equity investing; and in this environment the U.S. was the best performing major equity market on the global stage. |
Large cap stocks significantly outperformed smaller-cap indices, and within large caps, there was no clear style leadership. Energy prices were whipsawed during the year, and oil prices weakened to the lowest levels of the year at September 30, 2014. The energy sector lagged as commodity prices dropped, while the consumer discretionary sector – one of the prior year’s leading sectors – also underperformed. Health care and |
information technology were among the top-performing sectors in both the Russell 1000 Growth and the S&P 500. However, as 10-year treasury yields declined to end the year at 2.49% – in response to slowing global growth and declining European bond yields – selected higher yielding areas of the market outperformed, including utilities and pharmaceuticals companies. |
Q. | What were the primary drivers behind Fund performance? |
A. | The Fund’s outperformance versus peers was driven primarily by strong rallies in biotechnology stocks. We had a chance to add to the Fund’s top biotech holdings at attractive valuations during a pullback in the spring, with each benefiting from innovative therapies and pipelines. A takeout bid for medical device company also benefited the Fund. As interest rates declined – a development which defied our expectations – the Fund’s sole REIT holding outperformed. The Fund also benefited from strength in its other financial sector holdings. Our sole consumer staples holding, a snack/beverage company, outperformed and its contribution was amplified by a sector underweight as the relatively defensive staples sector lagged. |
On the other hand, the Fund’s overweight in the lagging consumer discretionary sector dragged on returns. A sporting-goods specialty retailer was the key detractor, experiencing a slowdown in a few segments. We are reevaluating the big-box retailer’s resilience to an increasingly e-commerce driven retail industry. The Fund’s media holdings took a breather after contributing handsomely to results in the previous year. There was an incredible dispersion of returns among technology stocks, which generally creates opportunity for the active manager. Unfortunately this year, on balance, the Fund’s technology selections underperformed the benchmark, driven by relative weakness among the Fund’s communications equipment and internet holdings. |
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Table of Contents
Premier Growth Equity Fund | (Unaudited) |
Q. | Were there any significant changes in the Fund during the period? |
A. | Changes to the Fund were relatively modest during the 12-month period. We ended the year with 36 stocks in the Fund, flat with the start of the year. At September 30, 2014, technology remained the largest sector in the Fund, however, the Fund modestly reduced its sector exposure, taking profits in relative outperformers and eliminating positions where our level of conviction declined. We added to the Fund’s health care and consumer discretionary sectors, taking advantage of attractive valuation levels over the course of the year. We decreased exposure to energy as uncertainty grew, and increased the industrials overweight. The Fund maintained underweight positioning in the slower-growing utilities, telecommunications and consumer staples sectors at the end of the 12-month period. We continue to focus on what we believe are financially strong companies with great management teams at attractive valuations. We favor companies with innovative products and services rather than business models tied to GDP growth. In a slow growth world, we believe the Fund’s collection of companies with above-average earnings growth rates will do well over the long term. |
28
Table of Contents
Premier Growth Equity Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given
for your class under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return |
| |||||||||||
Investment Class | 1,000.00 | 1,088.00 | 1.94 | |||||||||
Service Class | 1,000.00 | 1,087.30 | 3.24 | |||||||||
Hypothetical 5% Return (2.5% for the period) |
| |||||||||||
Investment Class | 1,000.00 | 1,023.21 | 1.88 | |||||||||
Service Class | 1,000.00 | 1,021.96 | 3.14 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.37% for Investment Class shares and 0.62% for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
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Table of Contents
Premier Growth Equity Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital and future income. The Fund seeks to achieve its investment objectives by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks. The Fund invests primarily in a limited number of large and medium-sized companies (meaning companies with a market capitalization of $2 billion or more) that the portfolio manager believes have above-average growth histories and/or growth potential.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 1,714 | 1,341 | 920 | |||
Peer group average annual total return | 16.29% | 14.30% | 7.59% |
Morningstar Category in peer group: Large Growth
Top Ten Largest Holdings as of September 30, 2014
as a % of Fair Value (b)(c)
QUALCOMM Inc. | 3.88% | |||
Apple Inc. | 3.86% | |||
Gilead Sciences Inc. | 3.80% | |||
Schlumberger Ltd. | 3.66% | |||
CME Group Inc. | 3.62% | |||
Baidu Inc. ADR | 3.52% | |||
Lowe’s Companies Inc. | 3.51% | |||
Liberty Global PLC, Class C | 3.45% | |||
Visa Inc., Class A | 3.44% | |||
EMC Corp. | 3.41% |
Sector Allocation as of September 30, 2014
Portfolio composition as a % of Fair Value of $432,453 (in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 10/29/99)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Premier Growth Equity Fund | 19.80% | 16.08% | 8.79% | $ | 23,229 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 8.11% | $ | 21,804 | |||||||||||||||
Russell 1000 Growth Index | 19.14% | 16.51% | 8.94% | $ | 23,540 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 1/3/01)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Premier Growth Equity Fund | 19.56% | 15.81% | 8.46% | $ | 22,529 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 8.11% | $ | 21,804 | |||||||||||||||
Russell 1000 Growth Index | 19.14% | 16.51% | 8.94% | $ | 23,540 |
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
30
Table of Contents
Premier Growth Equity Fund
Schedule of Investments | September 30, 2014 |
Premier Growth Equity Fund |
Number of Shares | Fair Value | |||||||||
Common Stock — 96.4%† |
| |||||||||
Air Freight & Logistics — 1.4% |
| |||||||||
United Parcel Service Inc., Class B | 62,270 | $ | 6,120,518 | |||||||
Application Software — 2.3% |
| |||||||||
Intuit Inc. | 112,087 | 9,824,426 | ||||||||
Asset Management & Custody Banks — 3.2% |
| |||||||||
State Street Corp. | 190,549 | 14,026,312 | (e) | |||||||
Biotechnology — 8.9% | ||||||||||
Alexion Pharmaceuticals Inc. | 52,307 | 8,673,547 | (a,h) | |||||||
Amgen Inc. | 95,897 | 13,469,693 | (h) | |||||||
Gilead Sciences Inc. | 154,432 | 16,439,286 | (a) | |||||||
38,582,526 | ||||||||||
Broadcasting — 1.9% |
| |||||||||
Discovery Communications Inc., Class C | 215,457 | 8,032,237 | (a,h) | |||||||
Cable & Satellite — 6.0% |
| |||||||||
Comcast Corp., Special Class A | 209,230 | 11,193,805 | ||||||||
Liberty Global PLC, Class C | 363,661 | 14,915,556 | (a) | |||||||
26,109,361 | ||||||||||
Casinos & Gaming — 1.6% |
| |||||||||
Las Vegas Sands Corp. | 112,087 | 6,972,932 | ||||||||
Communications Equipment — 3.9% |
| |||||||||
QUALCOMM Inc. | 224,175 | 16,761,565 | ||||||||
Data Processing & Outsourced Services — 3.4% |
| |||||||||
Visa Inc., Class A | 69,743 | 14,881,064 | ||||||||
Fertilizers & Agricultural Chemicals — 3.4% |
| |||||||||
Monsanto Co. | 130,769 | 14,712,820 | ||||||||
Healthcare Equipment — 5.3% |
| |||||||||
Abbott Laboratories | 224,175 | 9,323,438 | ||||||||
Covidien PLC | 159,412 | 13,790,732 | ||||||||
23,114,170 | ||||||||||
Healthcare Services — 2.0% |
| |||||||||
Express Scripts Holding Co. | 124,542 | 8,796,401 | (a) | |||||||
Healthcare Supplies — 1.7% |
| |||||||||
The Cooper Companies Inc. | 47,326 | 7,371,025 | (h) |
Number of Shares | Fair Value | |||||||||
Home Improvement Retail — 3.5% |
| |||||||||
Lowe’s Companies Inc. | 286,446 | $ | 15,158,722 | |||||||
Industrial Machinery — 1.6% |
| |||||||||
Dover Corp. | 87,179 | 7,003,089 | ||||||||
Internet Retail — 2.3% |
| |||||||||
Amazon.com Inc. | 31,135 | 10,039,169 | (a) | |||||||
Internet Software & Services — 10.8% |
| |||||||||
Baidu Inc. ADR | 69,743 | 15,220,015 | (a) | |||||||
eBay Inc. | 209,230 | 11,848,695 | (a) | |||||||
Facebook Inc., Class A | 66,007 | 5,217,193 | (a) | |||||||
Google Inc., Class A | 11,209 | 6,595,488 | (a) | |||||||
Google Inc., Class C | 13,700 | 7,909,832 | (a,h) | |||||||
46,791,223 | ||||||||||
Investment Banking & Brokerage — 2.0% |
| |||||||||
The Charles Schwab Corp. | 286,446 | 8,418,648 | ||||||||
Movies & Entertainment — 2.2% |
| |||||||||
The Walt Disney Co. | 105,860 | 9,424,716 | ||||||||
Oil & Gas Equipment & Services —3.7% |
| |||||||||
Schlumberger Ltd. | 155,677 | 15,830,794 | ||||||||
Oil & Gas Exploration & Production — 1.0% |
| |||||||||
Anadarko Petroleum Corp. | 42,344 | 4,295,375 | (h) | |||||||
Pharmaceuticals — 2.8% |
| |||||||||
Actavis PLC | 49,817 | 12,019,846 | (a) | |||||||
Soft Drinks — 3.3% |
| |||||||||
PepsiCo Inc. | 151,941 | 14,144,188 | ||||||||
Specialized Finance — 5.9% |
| |||||||||
CME Group Inc. | 195,530 | 15,633,601 | ||||||||
McGraw Hill Financial Inc. | 118,315 | 9,991,702 | ||||||||
25,625,303 | ||||||||||
Specialized REITs — 3.0% |
| |||||||||
American Tower Corp. | 136,996 | 12,826,936 | ||||||||
Specialty Stores — 2.0% |
| |||||||||
Dick’s Sporting Goods Inc. | 193,039 | 8,470,551 | ||||||||
Technology Hardware, Storage & Peripherals — 7.3% |
| |||||||||
Apple Inc. | 165,640 | 16,688,230 | ||||||||
EMC Corp. | 504,393 | 14,758,539 | ||||||||
31,446,769 | ||||||||||
Total Common Stock | 416,800,686 |
See Notes to Schedules of Investments and Notes to Financial Statements.
31
Table of Contents
Premier Growth Equity Fund
Schedule of Investments | September 30, 2014 |
Fair Value | ||||||||
Short-Term Investments — 3.6% |
| |||||||
State Street Institutional U.S. Government Money Market Fund - Premier Class 0.00% | $ | 15,652,537 | (d,m) | |||||
Total Investments | 432,453,223 | |||||||
Liabilities in Excess of Other Assets, net — (0.0)%* | (81,065 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 432,372,158 | ||||||
|
|
Other Information: |
The Fund had the following long futures contracts open at September 30, 2014:
Description | Expiration date | Number of Contracts | Current Notional Value | Unre alized Depre ciation | ||||||||||||||||
S&P 500 | December 2014 | 55 | $ | 5,405,125 | $ | (33,744 | ) |
See Notes to Schedules of Investments and Notes to Financial Statements.
32
Table of Contents
David Wiederecht
President and Chief Investment Officer – Investment Solutions
Mike Cervi
Senior Vice President
The Small-Cap Equity Fund is managed by David Wiederecht and Mike Cervi who are 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. Messrs. Wiederecht and Cervi have full discretion in determining the assets that are allocated to each sub-adviser. The current sub-advisers of the Fund are as follows: Champlain Investment Partners, LLC; GlobeFlex Capital, LP; Kennedy Capital Management, Inc.; Palisade Capital Management L.L.C., and SouthernSun Asset Management, LLC. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional Small-Cap Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional Small-Cap Equity Fund returned 5.61% for the Investment Class shares and 5.32% for the Service Class shares. The Fund’s benchmark, the Russell 2000 Index returned 3.93% and the Fund’s Morningstar peer group of 704 US Small Blend funds returned an average of 5.69% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | The lower-quality rally in the fourth quarter of 2013 had a negative impact on the Fund’s performance, as growth-oriented managers and those gravitating toward more speculative securities outperformed the broader markets. This trend reversed towards the end of the first quarter in 2014 and the Fund has had stronger performance since that time. The increased volatility in the third quarter of 2014 was additive as the Fund’s higher-quality bias was rewarded by the market and did not sell off as much as the broader market. |
Q. | What were the primary drivers behind Fund performance? |
A. | While in all equity portfolios the primary driver is security selection, allocation also played a part in generating the Fund’s performance during the period. The concentrated relative value manager had kept the broader portfolio in the running earlier in the year as they had a very strong first half of 2014. Over the last quarter, our core small cap managers generated strong outperformance due to their high quality bias and defensively positioned portfolios. Currently, those two managers have the largest allocations of the Fund. Within the sub-advised portfolios the managers have driven performance through their security selection. |
Q. | Were there any significant changes in the Fund during the period? |
A. | There were no significant changes to the portfolio or construct of the Fund during the period. No new subadvisers were added during the last twelve months and none were jettisoned from the Fund. Allocations among the subadvisers had only modest fluctuations during this time period as well. |
33
Table of Contents
Small-Cap Equity Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your class under the heading “Expenses paid during
the period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. Additionally, the expenses shown do not reflect the fees or charges associated with variable contracts through which shares of the Fund are offered.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return |
| |||||||||||
Investment Class | 1,000.00 | 969.90 | 4.35 | |||||||||
Service Class | 1,000.00 | 968.50 | 5.58 | |||||||||
Hypothetical 5% Return (2.5% for the period) |
| |||||||||||
Investment Class | 1,000.00 | 1,020.66 | 4.46 | |||||||||
Service Class | 1,000.00 | 1,019.40 | 5.72 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.88% for Investment Class shares and 1.13% for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
34
Table of Contents
Small-Cap Equity Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities of small-cap companies, such as common and preferred stocks. The Fund uses a multi- sub-adviser investment strategy that combines growth, value and core investment management styles, which allows the Fund the potential to benefit from both value and growth cycles in the marketplace.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 704 | 566 | 355 | |||
Peer group average annual total return | 5.69% | 14.04% | 7.77% |
Morningstar Category in peer group: Small Blend
Top Ten Largest Holdings as of September 30, 2014
(as a % of Fair Value) (b)(c)
Blackbaud Inc. | 1.34% | |||
Sensient Technologies Corp. | 1.05% | |||
CLARCOR Inc. | 0.95% | |||
Centene Corp. | 0.95% | |||
Woodward Inc. | 0.94% | |||
Endurance Specialty Holdings Ltd. | 0.88% | |||
Darling Ingredients Inc. | 0.85% | |||
John Wiley & Sons Inc., Class A | 0.85% | |||
Iconix Brand Group Inc. | 0.83% | |||
Prosperity Bancshares Inc. | 0.82% |
Sector Allocation as of September 30, 2014
Portfolio composition as a % of Fair Value of $1,252,565 (in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 8/3/98)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Small-Cap Equity Fund | 5.61% | 16.16% | 9.12% | $ | 23,941 | |||||||||||||||
Russell 2000 Index | 3.93% | 14.29% | 8.18% | $ | 21,966 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 9/30/05)
One Year | Five Year | Since Inception | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Small-Cap Equity Fund | 5.32% | 15.85% | 7.60% | $ | 19,335 | |||||||||||||||
Russell 2000 Index | 3.93% | 14.29% | 7.15% | $ | 18,623 |
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
35
Table of Contents
Small-Cap Equity Fund
Schedule of Investments | September 30, 2014 |
Small-Cap Equity Fund |
Number of Shares | Fair Value | |||||||||
Common Stock — 93.8%† |
| |||||||||
Aerospace & Defense — 1.4% |
| |||||||||
Esterline Technologies Corp. | 81,053 | $ | 9,018,767 | (a) | ||||||
Moog Inc., Class A | 13,596 | 929,966 | (a) | |||||||
Teledyne Technologies Inc. | 76,711 | 7,211,601 | (a) | |||||||
Triumph Group Inc. | 4,331 | 281,732 | ||||||||
17,442,066 | ||||||||||
Agricultural & Farm Machinery — 0.8% |
| |||||||||
AGCO Corp. | 208,355 | 9,471,819 | ||||||||
Lindsay Corp. | 7,503 | 560,849 | ||||||||
10,032,668 | ||||||||||
Agricultural Products — 0.9% |
| |||||||||
Darling Ingredients Inc. | 584,170 | 10,701,994 | (a) | |||||||
Fresh Del Monte Produce Inc. | 16,701 | 532,762 | ||||||||
11,234,756 | ||||||||||
Airlines — 0.1% |
| |||||||||
Spirit Airlines Inc. | 16,100 | 1,113,154 | (a) | |||||||
Alternative Carriers — 0.0%* |
| |||||||||
Inteliquent Inc. | 38,500 | 479,325 | ||||||||
Apparel Retail — 1.0% |
| |||||||||
Citi Trends Inc. | 27,400 | 605,540 | (a) | |||||||
Express Inc. | 55,910 | 872,755 | (a) | |||||||
Genesco Inc. | 41,405 | 3,095,024 | (a) | |||||||
The Buckle Inc. | 136,602 | 6,200,365 | ||||||||
The Children’s Place Inc. | 13,002 | 619,675 | ||||||||
Tilly’s Inc. Class A | 27,839 | 209,349 | (a) | |||||||
Zumiez Inc. | 19,800 | 556,380 | (a) | |||||||
12,159,088 | ||||||||||
Apparel, Accessories & Luxury Goods — 1.2% |
| |||||||||
Columbia Sportswear Co. | 139,170 | 4,979,502 | ||||||||
Iconix Brand Group Inc. | 280,955 | 10,378,478 | (a) | |||||||
15,357,980 | ||||||||||
Application Software — 6.4% |
| |||||||||
ACI Worldwide Inc. | 226,121 | 4,242,030 | (a) | |||||||
Advent Software Inc. | 17,700 | 558,612 | ||||||||
Blackbaud Inc. | 427,339 | 16,790,149 | ||||||||
Bottomline Technologies Inc. | 211,500 | 5,835,285 | (a) | |||||||
Fair Isaac Corp. | 9,940 | 547,694 | ||||||||
Guidewire Software Inc. | 175,000 | 7,759,500 | (a) | |||||||
Jive Software Inc. | 376,343 | 2,194,080 | (a) | |||||||
Monotype Imaging Holdings Inc. | 22,400 | 634,368 | ||||||||
NetScout Systems Inc. | 15,200 | 696,160 | (a) | |||||||
Pegasystems Inc. | 29,200 | 558,012 | ||||||||
PROS Holdings Inc. | 178,500 | 4,498,200 | (a) |
Number of Shares | Fair Value | |||||||||
PTC Inc. | 223,806 | $ | 8,258,441 | (a) | ||||||
Qlik Technologies Inc. | 236,500 | 6,394,960 | (a) | |||||||
RealPage Inc. | 440,988 | 6,835,314 | (a) | |||||||
Solera Holdings Inc. | 106,697 | 6,013,443 | ||||||||
SS&C Technologies Holdings Inc. | 199,178 | 8,741,923 | (a) | |||||||
Verint Systems Inc. | 14,700 | 817,467 | (a) | |||||||
81,375,638 | ||||||||||
Asset Management & Custody Banks — 0.3% |
| |||||||||
Artisan Partners Asset Management Inc., Class A | 9,117 | 474,540 | ||||||||
Financial Engines Inc. | 99,500 | 3,404,392 | ||||||||
Virtus Investment Partners Inc. | 2,700 | 468,990 | ||||||||
4,347,922 | ||||||||||
Auto Parts & Equipment — 0.3% |
| |||||||||
American Axle & Manufacturing Holdings Inc. | 32,896 | 551,666 | (a) | |||||||
Dana Holding Corp. | 50,801 | 973,855 | ||||||||
Drew Industries Inc. | 14,400 | 607,536 | ||||||||
Gentherm Inc. | 11,700 | 494,091 | (a) | |||||||
Tenneco Inc. | 13,350 | 698,339 | (a) | |||||||
Tower International Inc. | 23,680 | 596,499 | (a) | |||||||
3,921,986 | ||||||||||
Automobile Manufacturers — 0.6% |
| |||||||||
Thor Industries Inc. | 135,345 | 6,970,267 | ||||||||
Winnebago Industries Inc. | 54,879 | 1,194,716 | (a) | |||||||
8,164,983 | ||||||||||
Automotive Retail — 1.0% |
| |||||||||
CST Brands Inc. | 247,500 | 8,897,625 | ||||||||
Group 1 Automotive Inc. | 48,240 | 3,507,530 | ||||||||
12,405,155 | ||||||||||
Biotechnology — 1.8% |
| |||||||||
Cepheid | 198,500 | 8,739,955 | (a) | |||||||
Cubist Pharmaceuticals Inc. | 89,063 | 5,908,439 | (a) | |||||||
Dyax Corp. | 61,300 | 620,356 | (a) | |||||||
Emergent Biosolutions Inc. | 29,300 | 624,383 | (a) | |||||||
Genomic Health Inc. | 135,000 | 3,821,850 | (a) | |||||||
Isis Pharmaceuticals Inc. | 24,000 | 931,920 | (a) | |||||||
MacroGenics Inc. | 28,800 | 601,920 | (a) | |||||||
NPS Pharmaceuticals Inc. | 21,300 | 553,800 | (a) | |||||||
Spectrum Pharmaceuticals Inc. | 73,300 | 596,662 | (a) | |||||||
22,399,285 | ||||||||||
Building Products — 0.4% |
| |||||||||
AO Smith Corp. | 14,800 | 699,744 | ||||||||
Builders FirstSource Inc. | 105,749 | 576,332 | (a) | |||||||
Patrick Industries Inc. | 34,700 | 1,469,892 | (a) | |||||||
Simpson Manufacturing Company Inc. | 51,908 | 1,513,118 | ||||||||
Universal Forest Products Inc. | 31,575 | 1,348,569 | ||||||||
5,607,655 |
See Notes to Schedules of Investments and Notes to Financial Statements.
36
Table of Contents
Small-Cap Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Cable & Satellite — 0.1% |
| |||||||||
Starz, Class A | 21,900 | $ | 724,452 | (a) | ||||||
Casinos & Gaming — 0.1% |
| |||||||||
Pinnacle Entertainment Inc. | 25,591 | 642,078 | (a) | |||||||
Commercial Printing — 0.3% |
| |||||||||
Brady Corp., Class A | 150,000 | 3,366,000 | ||||||||
Commodity Chemicals — 0.5% |
| |||||||||
Axiall Corp. | 8,935 | 319,963 | ||||||||
Koppers Holdings Inc. | 163,695 | 5,428,126 | ||||||||
5,748,089 | ||||||||||
Communications Equipment — 1.0% |
| |||||||||
ADTRAN Inc. | 154,301 | 3,167,800 | ||||||||
ARRIS Group Inc. | 53,749 | 1,524,053 | (a) | |||||||
Aruba Networks Inc. | 26,900 | 580,502 | (a) | |||||||
Bel Fuse Inc., Class B | 28,037 | 693,635 | ||||||||
CalAmp Corp. | 19,246 | 339,114 | (a) | |||||||
EchoStar Corp., Class A | 11,300 | 550,988 | (a) | |||||||
Finisar Corp. | 51,839 | 862,083 | (a) | |||||||
NETGEAR Inc. | 32,743 | 1,023,219 | (a) | |||||||
Plantronics Inc. | 32,322 | 1,544,345 | ||||||||
Polycom Inc. | 45,900 | 563,881 | (a) | |||||||
Riverbed Technology Inc. | 69,567 | 1,290,120 | (a) | |||||||
12,139,740 | ||||||||||
Construction & Engineering — 1.2% |
| |||||||||
AECOM Technology Corp. | 21,109 | 712,429 | (a) | |||||||
Chicago Bridge & Iron Company N.V. | 159,650 | 9,235,752 | ||||||||
Granite Construction Inc. | 21,452 | 682,388 | ||||||||
Quanta Services Inc. | 122,031 | 4,428,505 | (a) | |||||||
15,059,074 | ||||||||||
Construction Machinery & Heavy Trucks — 1.3% |
| |||||||||
Alamo Group Inc. | 21,036 | 862,476 | ||||||||
Astec Industries Inc. | 44,036 | 1,605,993 | ||||||||
Douglas Dynamics Inc. | 34,130 | 665,535 | ||||||||
FreightCar America Inc. | 20,373 | 678,421 | ||||||||
Meritor Inc. | 43,816 | 475,403 | (a) | |||||||
The Greenbrier Companies Inc. | 22,955 | 1,684,438 | ||||||||
Trinity Industries Inc. | 202,065 | 9,440,477 | ||||||||
Wabash National Corp. | 103,729 | 1,381,670 | (a) | |||||||
16,794,413 | ||||||||||
Consumer Electronics — 0.0%* | ||||||||||
ZAGG Inc. | 62,000 | 345,960 | (a) | |||||||
Data Processing & Outsourced Services — 2.3% |
| |||||||||
Broadridge Financial Solutions Inc. | 208,400 | 8,675,692 | ||||||||
Cardtronics Inc. | 240,000 | 8,448,000 | (a) | |||||||
CoreLogic Inc. | 99,910 | 2,704,563 | (a) |
Number of Shares | Fair Value | |||||||||
Global Cash Access Holdings Inc. | 306,893 | $ | 2,071,528 | (a) | ||||||
WEX Inc. | 61,500 | 6,784,680 | (a) | |||||||
28,684,463 | ||||||||||
Distributors — 0.7% |
| |||||||||
LKQ Corp. | 334,481 | 8,893,850 | (a) | |||||||
Diversified Banks — 0.0%* |
| |||||||||
FCB Financial Holdings Inc., Class A | 14,773 | 335,495 | (a) | |||||||
Diversified Capital Markets — 0.1% |
| |||||||||
HFF Inc. REIT, Class A | 27,824 | 805,505 | ||||||||
Diversified Metals & Mining — 0.2% |
| |||||||||
Compass Minerals International Inc. | 8,261 | 696,237 | ||||||||
Globe Specialty Metals Inc. | 28,700 | 522,053 | ||||||||
Materion Corp. | 16,869 | 517,372 | ||||||||
U.S. Silica Holdings Inc. | 10,604 | 662,856 | ||||||||
2,398,518 | ||||||||||
Diversified REITs — 0.2% |
| |||||||||
Cousins Properties Inc. | 116,977 | 1,397,875 | ||||||||
Spirit Realty Capital Inc. | 52,596 | 576,978 | ||||||||
1,974,853 | ||||||||||
Diversified Support Services — 1.1% |
| |||||||||
Healthcare Services Group Inc. | 215,252 | 6,158,360 | ||||||||
Ritchie Bros Auctioneers Inc. | 313,510 | 7,019,489 | ||||||||
UniFirst Corp. | 13,370 | 1,291,408 | ||||||||
14,469,257 | ||||||||||
Education Services — 0.3% |
| |||||||||
Apollo Education Group Inc. | 33,300 | 837,495 | (a) | |||||||
DeVry Education Group Inc. | 21,832 | 934,628 | ||||||||
K12 Inc. | 135,473 | 2,162,149 | (a) | |||||||
3,934,272 | ||||||||||
Electric Utilities — 0.7% |
| |||||||||
ALLETE Inc. | 22,685 | 1,006,987 | ||||||||
IDACORP Inc. | 138,012 | 7,398,823 | ||||||||
8,405,810 | ||||||||||
Electrical Components & Equipment — 0.5% |
| |||||||||
Encore Wire Corp. | 40,918 | 1,517,649 | ||||||||
EnerSys | 20,377 | 1,194,907 | ||||||||
Polypore International Inc. | 87,227 | 3,394,003 | (a) | |||||||
Regal-Beloit Corp. | 10,373 | 666,465 | ||||||||
6,773,024 | ||||||||||
Electronic Components — 0.4% |
| |||||||||
Littelfuse Inc. | 48,746 | 4,152,184 | ||||||||
Universal Display Corp. | 17,600 | 574,464 | (a) | |||||||
4,726,648 |
See Notes to Schedules of Investments and Notes to Financial Statements.
37
Table of Contents
Small-Cap Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Electronic Equipment & Instruments — 0.5% |
| |||||||||
Cognex Corp. | 15,900 | $ | 640,293 | (a) | ||||||
Newport Corp. | 32,200 | 570,584 | (a) | |||||||
Rofin-Sinar Technologies Inc. | 29,233 | 674,113 | (a) | |||||||
Zebra Technologies Corp., Class A | 62,144 | 4,410,360 | (a) | |||||||
6,295,350 | ||||||||||
Electronic Manufacturing Services — 0.9% |
| |||||||||
Celestica Inc. | 32,609 | 330,981 | (a) | |||||||
Measurement Specialties Inc. | 82,000 | 7,020,020 | (a) | |||||||
Methode Electronics Inc. | 41,990 | 1,548,171 | ||||||||
Multi-Fineline Electronix Inc. | 34,444 | 322,052 | (a) | |||||||
Plexus Corp. | 46,785 | 1,727,770 | (a) | |||||||
10,948,994 | ||||||||||
Environmental & Facilities Services — 0.8% |
| |||||||||
Clean Harbors Inc. | 169,300 | 9,128,656 | (a) | |||||||
Covanta Holding Corp. | 29,337 | 622,531 | ||||||||
9,751,187 | ||||||||||
Fertilizers & Agricultural Chemicals — 0.6% |
| |||||||||
American Vanguard Corp. | 175,000 | 1,960,000 | ||||||||
Intrepid Potash Inc. | 384,610 | 5,942,225 | (a) | |||||||
7,902,225 | ||||||||||
Food Distributors — 0.3% |
| |||||||||
SpartanNash Co. | 217,593 | 4,232,184 | ||||||||
Food Retail — 1.5% |
| |||||||||
Casey’s General Stores Inc. | 137,732 | 9,875,384 | ||||||||
The Fresh Market Inc. | 250,000 | 8,732,500 | (a) | |||||||
18,607,884 | ||||||||||
Footwear — 1.0% |
| |||||||||
Deckers Outdoor Corp. | 56,470 | 5,487,755 | (a) | |||||||
Skechers U.S.A. Inc. Class A | 12,272 | 654,220 | (a) | |||||||
Wolverine World Wide Inc. | 266,300 | 6,673,478 | ||||||||
12,815,453 | ||||||||||
Forest Products — 0.1% |
| |||||||||
Boise Cascade Co. | 21,952 | 661,633 | (a) | |||||||
Gas Utilities — 0.1% |
| |||||||||
South Jersey Industries Inc. | 24,599 | 1,312,603 | ||||||||
Health Care REITs — 0.7% |
| |||||||||
Aviv REIT Inc. | 24,745 | 652,031 | ||||||||
Healthcare Realty Trust Inc. | 23,318 | 552,170 | ||||||||
Omega Healthcare Investors Inc. | 110,069 | 3,763,259 | ||||||||
Sabra Health Care REIT Inc. | 141,437 | 3,439,748 | ||||||||
8,407,208 | ||||||||||
Healthcare Distributors — 0.6% |
| |||||||||
Owens & Minor Inc. | 218,643 | 7,158,372 |
Number of Shares | Fair Value | |||||||||
Healthcare Equipment — 4.2% |
| |||||||||
Cantel Medical Corp. | 89,772 | $ | 3,086,362 | |||||||
Exactech Inc. | 14,553 | 333,118 | (a) | |||||||
Globus Medical Inc., Class A | 307,384 | 6,046,243 | (a) | |||||||
Hill-Rom Holdings Inc. | 246,241 | 10,201,765 | ||||||||
Insulet Corp. | 30,500 | 1,123,925 | (a) | |||||||
Integra LifeSciences Holdings Corp. | 149,500 | 7,421,180 | (a) | |||||||
Masimo Corp. | 244,718 | 5,207,599 | (a) | |||||||
Natus Medical Inc. | 51,241 | 1,512,122 | (a) | |||||||
NuVasive Inc. | 216,200 | 7,538,894 | (a) | |||||||
Orthofix International N.V. | 30,317 | 938,614 | (a) | |||||||
STERIS Corp. | 129,000 | 6,960,840 | ||||||||
Volcano Corp. | 230,800 | 2,455,712 | (a) | |||||||
Zeltiq Aesthetics Inc. | 30,900 | 699,267 | (a) | |||||||
53,525,641 | ||||||||||
Healthcare Facilities — 0.2% |
| |||||||||
Hanger Inc. | 130,483 | 2,677,511 | (a) | |||||||
Healthcare Services — 1.9% |
| |||||||||
Air Methods Corp. | 72,696 | 4,038,263 | (a) | |||||||
Bio-Reference Laboratories Inc. | 200,264 | 5,619,408 | (a) | |||||||
IPC The Hospitalist Company Inc. | 99,690 | 4,465,115 | (a) | |||||||
MEDNAX Inc. | 155,972 | 8,550,385 | (a) | |||||||
Team Health Holdings Inc. | 15,800 | 916,242 | (a) | |||||||
23,589,413 | ||||||||||
Healthcare Supplies — 1.2% |
| |||||||||
Align Technology Inc. | 11,900 | 614,992 | (a) | |||||||
Endologix Inc. | 254,042 | 2,692,845 | (a) | |||||||
ICU Medical Inc. | 74,000 | 4,749,320 | (a) | |||||||
Merit Medical Systems Inc. | 13,799 | 163,932 | (a) | |||||||
West Pharmaceutical Services Inc. | 166,300 | 7,443,588 | ||||||||
15,664,677 | ||||||||||
Healthcare Technology — 1.0% |
| |||||||||
HMS Holdings Corp. | 284,342 | 5,359,847 | (a) | |||||||
Medidata Solutions Inc. | 50,000 | 2,214,500 | (a) | |||||||
Omnicell Inc. | 145,300 | 3,971,049 | (a) | |||||||
Veeva Systems Inc., Class A | 19,713 | 555,315 | (a) | |||||||
12,100,711 | ||||||||||
Home Building — 0.1% |
| |||||||||
Meritage Homes Corp. | 33,633 | 1,193,972 | (a) | |||||||
Home Furnishing Retail — 0.0%* |
| |||||||||
Haverty Furniture Companies Inc. | 8,982 | 195,718 | ||||||||
Select Comfort Corp. | 18,932 | 396,057 | (a) | |||||||
591,775 | ||||||||||
Home Furnishings — 0.1% |
| |||||||||
Ethan Allen Interiors Inc. | 54,012 | 1,231,474 | ||||||||
Hooker Furniture Corp. | 21,078 | 320,596 | ||||||||
1,552,070 |
See Notes to Schedules of Investments and Notes to Financial Statements.
38
Table of Contents
Small-Cap Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Hotel & Resort REITs — 0.3% |
| |||||||||
Hersha Hospitality Trust | 221,038 | $ | 1,408,012 | |||||||
Strategic Hotels & Resorts Inc. | 59,332 | 691,218 | (a) | |||||||
Summit Hotel Properties Inc. | 119,999 | 1,293,589 | ||||||||
3,392,819 | ||||||||||
Hotels, Resorts & Cruise Lines — 0.2% |
| |||||||||
Interval Leisure Group Inc. | 111,390 | 2,121,980 | ||||||||
Household Appliances — 0.2% |
| |||||||||
Helen of Troy Ltd. | 39,162 | 2,056,788 | (a) | |||||||
Housewares & Specialties — 0.8% |
| |||||||||
Jarden Corp. | 159,215 | 9,570,414 | (a) | |||||||
Human Resource & Employment Services — 0.1% |
| |||||||||
TrueBlue Inc. | 48,927 | 1,235,896 | (a) | |||||||
Industrial Conglomerates — 0.4% |
| |||||||||
Raven Industries Inc. | 199,000 | 4,855,600 | ||||||||
Industrial Machinery — 6.9% |
| |||||||||
Actuant Corp., Class A | 282,205 | 8,612,896 | ||||||||
Altra Industrial Motion Corp. | 38,196 | 1,113,795 | ||||||||
Blount International Inc. | 44,362 | 671,197 | (a) | |||||||
CLARCOR Inc. | 189,161 | 11,932,276 | ||||||||
Columbus McKinnon Corp. | 23,290 | 512,147 | ||||||||
EnPro Industries Inc. | 64,800 | 3,922,344 | (a) | |||||||
ESCO Technologies Inc. | 78,701 | 2,737,221 | ||||||||
Hyster-Yale Materials Handling Inc. | 6,898 | 494,035 | ||||||||
IDEX Corp. | 107,775 | 7,799,677 | ||||||||
John Bean Technologies Corp. | 19,300 | 542,909 | ||||||||
LB Foster Co., Class A | 22,399 | 1,029,010 | ||||||||
Luxfer Holdings PLC ADR | 138,150 | 2,384,469 | ||||||||
Mueller Industries Inc. | 191,532 | 5,466,323 | ||||||||
Nordson Corp. | 78,775 | 5,992,414 | ||||||||
RBC Bearings Inc. | 60,500 | 3,430,350 | ||||||||
Standex International Corp. | 59,055 | 4,378,338 | ||||||||
The Timken Co. | 175,930 | 7,457,673 | ||||||||
TriMas Corp. | 312,690 | 7,607,748 | (a) | |||||||
Woodward Inc. | 247,979 | 11,808,760 | ||||||||
87,893,582 | ||||||||||
Industrial REITs — 0.2% |
| |||||||||
Rexford Industrial Realty Inc. | 63,488 | 878,674 | ||||||||
STAG Industrial Inc. | 59,597 | 1,234,254 | ||||||||
2,112,928 | ||||||||||
Internet Retail — 0.0%* | ||||||||||
Orbitz Worldwide Inc. | 76,901 | 605,211 | (a) | |||||||
Internet Software & Services — 1.3% |
| |||||||||
Constant Contact Inc. | 29,700 | 806,058 | (a) | |||||||
Cornerstone OnDemand Inc. | 55,880 | 1,922,831 | (a) |
Number of Shares | Fair Value | |||||||||
Dice Holdings Inc. | 67,055 | $ | 561,921 | (a) | ||||||
E2open Inc. | 112,500 | 1,047,375 | (a) | |||||||
Envestnet Inc. | 14,088 | 633,960 | (a) | |||||||
GrubHub Inc. | 15,540 | 532,089 | (a) | |||||||
LogMeIn Inc. | 137,500 | 6,334,625 | (a) | |||||||
Marchex Inc., Class B | 68,900 | 285,935 | ||||||||
NIC Inc. | 176,390 | 3,037,436 | ||||||||
SciQuest Inc. | 17,600 | 264,704 | (a) | |||||||
VistaPrint N.V. | 11,400 | 624,606 | (a) | |||||||
WebMD Health Corp. | 13,300 | 556,073 | (a) | |||||||
16,607,613 | ||||||||||
Investment Banking & Brokerage — 1.1% |
| |||||||||
Evercore Partners Inc., Class A | 11,573 | 543,931 | ||||||||
Greenhill & Company Inc. | 32,650 | 1,517,898 | ||||||||
Piper Jaffray Cos. | 26,666 | 1,393,032 | (a) | |||||||
Raymond James Financial Inc. | 186,253 | 9,979,436 | ||||||||
Stifel Financial Corp. | 21,628 | 1,014,137 | (a) | |||||||
14,448,434 | ||||||||||
IT Consulting & Other Services — 0.1% |
| |||||||||
Datalink Corp. | 27,361 | 290,847 | (a) | |||||||
Luxoft Holding Inc. | 16,773 | 623,956 | (a) | |||||||
914,803 | ||||||||||
Life & Health Insurance — 0.2% |
| |||||||||
American Equity Investment Life Holding Co. | 65,688 | 1,502,942 | ||||||||
StanCorp Financial Group Inc. | 16,567 | 1,046,703 | ||||||||
2,549,645 | ||||||||||
Life Sciences Tools & Services — 2.1% |
| |||||||||
Bio-Rad Laboratories Inc., Class A | 50,500 | 5,726,700 | (a) | |||||||
Bruker Corp. | 265,379 | 4,913,492 | (a) | |||||||
Cambrex Corp. | 44,700 | 834,996 | (a) | |||||||
Charles River Laboratories International Inc. | 12,983 | 775,605 | (a) | |||||||
ICON PLC | 157,504 | 9,013,954 | (a) | |||||||
Luminex Corp. | 198,500 | 3,870,750 | (a) | |||||||
PAREXEL International Corp. | 14,600 | 921,114 | (a) | |||||||
26,056,611 | ||||||||||
Managed Healthcare — 1.4% |
| |||||||||
Centene Corp. | 143,874 | 11,899,819 | (a) | |||||||
Molina Healthcare Inc. | 126,323 | 5,343,463 | (a) | |||||||
WellCare Health Plans Inc. | 5,371 | 324,086 | (a) | |||||||
17,567,368 | ||||||||||
Marine — 0.0%* |
| |||||||||
Baltic Trading Ltd. | 34,535 | 142,975 | ||||||||
Multi-Line Insurance — 0.7% | ||||||||||
HCC Insurance Holdings Inc. | 173,936 | 8,399,370 | ||||||||
Horace Mann Educators Corp. | 11,465 | 326,867 | ||||||||
8,726,237 |
See Notes to Schedules of Investments and Notes to Financial Statements.
39
Table of Contents
Small-Cap Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Multi-Utilities — 0.2% | ||||||||||
Avista Corp. | 33,980 | $ | 1,037,410 | |||||||
Black Hills Corp. | 22,056 | 1,056,041 | ||||||||
2,093,451 | ||||||||||
Office REITs — 0.8% | ||||||||||
BioMed Realty Trust Inc. | 378,945 | 7,654,689 | ||||||||
Coresite Realty Corp. | 75,732 | 2,489,311 | ||||||||
DuPont Fabros Technology Inc. | 18,961 | 512,705 | ||||||||
10,656,705 | ||||||||||
Office Services & Supplies — 1.0% |
| |||||||||
Herman Miller Inc. | 146,299 | 4,367,025 | ||||||||
HNI Corp. | 15,279 | 549,891 | ||||||||
Steelcase Inc., Class A | 45,945 | 743,850 | ||||||||
West Corp. | 236,426 | 6,965,110 | ||||||||
12,625,876 | ||||||||||
Oil & Gas Drilling — 0.2% |
| |||||||||
Pioneer Energy Services Corp. | 163,260 | 2,288,905 | (a) | |||||||
Unit Corp. | 9,248 | 542,395 | (a) | |||||||
2,831,300 | ||||||||||
Oil & Gas Equipment & Services — 2.0% |
| |||||||||
CARBO Ceramics Inc. | 135,575 | 8,030,107 | ||||||||
Dril-Quip Inc. | 28,877 | 2,581,604 | (a) | |||||||
Forum Energy Technologies Inc. | 240,424 | 7,359,378 | (a) | |||||||
Geospace Technologies Corp. | 17,626 | 619,554 | (a) | |||||||
Hornbeck Offshore Services Inc. | 40,601 | 1,328,871 | (a) | |||||||
Matrix Service Co. | 21,500 | 518,580 | (a) | |||||||
Natural Gas Services Group Inc. | 29,667 | 714,085 | (a) | |||||||
Oil States International Inc. | 51,399 | 3,181,598 | (a) | |||||||
Seventy Seven Energy Inc. | 30,494 | 723,927 | (a) | |||||||
Willbros Group Inc. | 48,766 | 406,221 | (a) | |||||||
25,463,925 | ||||||||||
Oil & Gas Exploration & Production — 2.8% |
| |||||||||
Approach Resources Inc. | 300,400 | 4,355,800 | (a) | |||||||
Bill Barrett Corp. | 44,252 | 975,314 | (a) | |||||||
Bonanza Creek Energy Inc. | 34,179 | 1,944,785 | (a) | |||||||
Carrizo Oil & Gas Inc. | 19,183 | 1,032,429 | (a) | |||||||
Clayton Williams Energy Inc. | 5,868 | 565,968 | (a) | |||||||
Matador Resources Co. | 46,261 | 1,195,847 | (a) | |||||||
Newfield Exploration Co. | 245,875 | 9,114,586 | (a) | |||||||
Northern Oil and Gas Inc. | 99,500 | 1,414,890 | (a) | |||||||
PetroQuest Energy Inc. | 112,593 | 632,773 | (a) | |||||||
Resolute Energy Corp. | 252,000 | 1,580,040 | (a) | |||||||
Sanchez Energy Corp. | 145,626 | 3,824,139 | (a) | |||||||
SM Energy Co. | 113,600 | 8,860,800 | ||||||||
Synergy Resources Corp. | 46,053 | 561,386 | (a) | |||||||
36,058,757 | ||||||||||
Oil & Gas Refining & Marketing — 0.2% |
| |||||||||
Delek US Holdings Inc. | 16,384 | 542,638 | ||||||||
Renewable Energy Group Inc. | 47,300 | 480,095 | (a) | |||||||
Western Refining Inc. | 42,580 | 1,787,934 | ||||||||
2,810,667 |
Number of Shares | Fair Value | |||||||||
Packaged Foods & Meats — 2.9% |
| |||||||||
B&G Foods Inc. | 179,000 | $ | 4,931,450 | |||||||
Lancaster Colony Corp. | 70,600 | 6,020,768 | ||||||||
Post Holdings Inc. | 100,000 | 3,318,000 | (a) | |||||||
Sanderson Farms Inc. | 112,800 | 9,920,760 | ||||||||
Snyder’s-Lance Inc. | 274,000 | 7,261,000 | ||||||||
TreeHouse Foods Inc. | 62,000 | 4,991,000 | (a) | |||||||
36,442,978 | ||||||||||
Paper Packaging — 0.5% |
| |||||||||
Packaging Corporation of America | 97,945 | 6,250,850 | ||||||||
Paper Products — 0.1% | ||||||||||
Neenah Paper Inc. | 34,446 | 1,842,172 | ||||||||
Personal Products — 0.2% | ||||||||||
Elizabeth Arden Inc. | 100,000 | 1,674,000 | (a) | |||||||
Inter Parfums Inc. | 9,652 | 265,430 | ||||||||
Revlon Inc., Class A | 17,052 | 540,378 | (a) | |||||||
2,479,808 | ||||||||||
Pharmaceuticals — 0.5% | ||||||||||
Impax Laboratories Inc. | 23,300 | 552,443 | (a) | |||||||
Lannett Company Inc. | 29,200 | 1,333,856 | (a) | |||||||
Pacira Pharmaceuticals Inc. | 5,700 | 552,444 | (a) | |||||||
Prestige Brands Holdings Inc. | 115,604 | 3,742,101 | (a) | |||||||
6,180,844 | ||||||||||
Property & Casualty Insurance — 1.5% | ||||||||||
Allied World Assurance Company Holdings AG | 215,000 | 7,920,600 | ||||||||
Argo Group International | 133,550 | 6,718,900 | ||||||||
RLI Corp. | 44,420 | 1,922,942 | ||||||||
The Navigators Group Inc. | 45,000 | 2,767,500 | (a) | |||||||
19,329,942 | ||||||||||
Publishing — 0.8% | ||||||||||
John Wiley & Sons Inc., Class A | 190,190 | 10,671,561 | ||||||||
Railroads — 0.7% | ||||||||||
Genesee & Wyoming Inc., Class A | 91,008 | 8,673,973 | (a) | |||||||
Real Estate Services — 0.0%* | ||||||||||
Altisource Portfolio Solutions S.A. | 5,600 | 564,480 | (a) | |||||||
Regional Banks — 7.0% | ||||||||||
Bank of the Ozarks Inc. | 42,250 | 1,331,720 | ||||||||
BankUnited Inc. | 45,420 | 1,384,856 | ||||||||
Banner Corp. | 24,146 | 928,897 | ||||||||
Bryn Mawr Bank Corp. | 104,000 | 2,946,320 | ||||||||
Camden National Corp. | 10,719 | 375,165 | ||||||||
Cardinal Financial Corp. | 22,359 | 381,668 | ||||||||
CoBiz Financial Inc. | 28,225 | 315,555 |
See Notes to Schedules of Investments and Notes to Financial Statements.
40
Table of Contents
Small-Cap Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Columbia Banking System Inc. | 26,490 | $ | 657,217 | |||||||
Community Bank System Inc. | 104,500 | 3,510,155 | ||||||||
Cullen/Frost Bankers Inc. | 79,719 | 6,099,301 | ||||||||
CVB Financial Corp. | 398,000 | 5,711,300 | ||||||||
Enterprise Financial Services Corp. | 22,064 | 368,910 | ||||||||
Fidelity Southern Corp. | 31,441 | 430,742 | ||||||||
First Financial Bankshares Inc. | 74,500 | 2,070,355 | ||||||||
Fulton Financial Corp. | 310,157 | 3,436,539 | ||||||||
Glacier Bancorp Inc. | 13,137 | 339,723 | ||||||||
Great Southern Bancorp Inc. | 15,988 | 485,076 | ||||||||
Hancock Holding Co. | 14,075 | 451,104 | ||||||||
Home BancShares Inc. | 26,166 | 769,542 | ||||||||
Iberiabank Corp. | 87,309 | 5,457,686 | ||||||||
Independent Bank Corp. | 63,000 | 2,250,360 | ||||||||
Lakeland Financial Corp. | 10,308 | 386,550 | ||||||||
NBT Bancorp Inc. | 95,000 | 2,139,400 | ||||||||
Old National Bancorp | 96,536 | 1,252,072 | ||||||||
PacWest Bancorp | 44,842 | 1,848,836 | ||||||||
Prosperity Bancshares Inc. | 180,502 | 10,319,299 | ||||||||
Renasant Corp. | 184,410 | 4,988,290 | ||||||||
South State Corp. | 13,054 | 729,980 | ||||||||
Southwest Bancorp. Inc. | 38,588 | 632,843 | ||||||||
Susquehanna Bancshares Inc. | 67,846 | 678,460 | ||||||||
SVB Financial Group | 39,873 | 4,469,365 | (a) | |||||||
Tristate Capital Holdings Inc. | 28,305 | 256,726 | (a) | |||||||
UMB Financial Corp. | 181,000 | 9,873,550 | ||||||||
Umpqua Holdings Corp. | 100,525 | 1,655,647 | ||||||||
Union Bankshares Corp. | 37,168 | 858,581 | ||||||||
United Community Banks Inc. | 20,495 | 337,348 | ||||||||
ViewPoint Financial Group Inc. | 32,575 | 779,845 | ||||||||
Washington Trust Bancorp Inc. | 99,500 | 3,282,505 | ||||||||
Westamerica Bancorporation | 73,072 | 3,399,309 | ||||||||
Wintrust Financial Corp. | 29,308 | 1,309,188 | ||||||||
88,899,985 | ||||||||||
Reinsurance — 1.0% | ||||||||||
Endurance Specialty Holdings Ltd. | 199,000 | 10,980,820 | ||||||||
Maiden Holdings Ltd. | 92,979 | 1,030,208 | ||||||||
Platinum Underwriters Holdings Ltd. | 10,021 | 609,978 | ||||||||
12,621,006 | ||||||||||
Research & Consulting Services — 0.3% | ||||||||||
Mistras Group Inc. | 49,500 | 1,009,800 | (a) | |||||||
Resources Connection Inc. | 198,976 | 2,773,725 | ||||||||
3,783,525 | ||||||||||
Residential REITs — 0.5% | ||||||||||
Associated Estates Realty Corp. | 83,591 | 1,463,678 | ||||||||
Education Realty Trust Inc. | 402,510 | 4,137,803 | ||||||||
Sun Communities Inc. | 13,735 | 693,618 | ||||||||
6,295,099 | ||||||||||
Restaurants — 1.0% | ||||||||||
BJ’s Restaurants Inc. | 75,000 | 2,699,250 | (a) |
Number of Shares | Fair Value | |||||||||
Cracker Barrel Old Country Store Inc. | 26,721 | $ | 2,757,340 | |||||||
DineEquity Inc. | 7,076 | 577,331 | ||||||||
Ruby Tuesday Inc. | 26,017 | 153,240 | (a) | |||||||
Texas Roadhouse Inc. | 246,557 | 6,864,147 | ||||||||
13,051,308 | ||||||||||
Retail REITs — 0.2% | ||||||||||
Glimcher Realty Trust | 74,642 | 1,010,653 | ||||||||
Inland Real Estate Corp. | 132,761 | 1,315,661 | ||||||||
Ramco-Gershenson Properties Trust | 36,559 | 594,084 | ||||||||
2,920,398 | ||||||||||
Security & Alarm Services — 0.6% | ||||||||||
The Brink’s Co. | 298,575 | 7,177,743 | ||||||||
Semiconductor Equipment — 0.4% | ||||||||||
Advanced Energy Industries Inc. | 24,500 | 460,355 | (a) | |||||||
Entegris Inc. | 50,800 | 584,200 | (a) | |||||||
Rudolph Technologies Inc. | 403,900 | 3,655,295 | (a) | |||||||
4,699,850 | ||||||||||
Semiconductors — 1.7% | ||||||||||
Ambarella Inc. | 9,000 | 393,030 | (a) | |||||||
Diodes Inc. | 45,686 | 1,092,809 | (a) | |||||||
Exar Corp. | 56,069 | 501,817 | (a) | |||||||
Inphi Corp. | 39,386 | 566,371 | (a) | |||||||
Integrated Device Technology Inc. | 59,000 | 941,050 | (a) | |||||||
Microsemi Corp. | 340,068 | 8,641,128 | (a) | |||||||
PMC-Sierra Inc. | 76,700 | 572,182 | (a) | |||||||
RF Micro Devices Inc. | 147,630 | 1,703,650 | (a) | |||||||
Semtech Corp. | 200,612 | 5,446,616 | (a) | |||||||
Silicon Image Inc. | 80,200 | 404,208 | (a) | |||||||
Synaptics Inc. | 14,100 | 1,032,120 | (a) | |||||||
21,294,981 | ||||||||||
Specialized Finance — 0.0%* | ||||||||||
NewStar Financial Inc. | 39,857 | 447,993 | (a) | |||||||
Specialized REITs — 0.1% | ||||||||||
Potlatch Corp. | 12,200 | 490,562 | ||||||||
Sovran Self Storage Inc. | 11,669 | 867,707 | ||||||||
1,358,269 | ||||||||||
Specialty Chemicals — 2.4% | ||||||||||
A Schulman Inc. | 14,500 | 524,320 | ||||||||
Flotek Industries Inc. | 32,048 | 835,491 | (a) | |||||||
HB Fuller Co. | 99,003 | 3,930,419 | ||||||||
Innospec Inc. | 54,600 | 1,960,140 | ||||||||
Minerals Technologies Inc. | 10,311 | 636,292 | ||||||||
OM Group Inc. | 28,653 | 743,545 | ||||||||
PolyOne Corp. | 159,083 | 5,660,173 | ||||||||
Quaker Chemical Corp. | 34,220 | 2,453,232 | ||||||||
Sensient Technologies Corp. | 252,222 | 13,203,822 | ||||||||
Stepan Co. | 5,020 | 222,788 | ||||||||
30,170,222 |
See Notes to Schedules of Investments and Notes to Financial Statements.
41
Table of Contents
Small-Cap Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Steel — 0.7% | ||||||||||
Commercial Metals Co. | 207,452 | $ | 3,541,206 | |||||||
Schnitzer Steel Industries Inc., Class A | 32,253 | 775,685 | ||||||||
TimkenSteel Corp. | 78,727 | 3,660,018 | ||||||||
Worthington Industries Inc. | 14,688 | 546,687 | ||||||||
8,523,596 | ||||||||||
Systems Software — 1.1% | ||||||||||
FleetMatics Group PLC | 212,000 | 6,466,000 | (a) | |||||||
Qualys Inc. | 224,000 | 5,958,400 | (a) | |||||||
The Rubicon Project Inc. | 51,331 | 602,113 | (a) | |||||||
VASCO Data Security | 35,700 | 670,446 | (a) | |||||||
13,696,959 | ||||||||||
Technology Distributors — 0.2% | ||||||||||
Electro Rent Corp. | 5,740 | 79,040 | ||||||||
Insight Enterprises Inc. | 24,760 | 560,319 | (a) | |||||||
ScanSource Inc. | 25,302 | 875,196 | (a) | |||||||
Tech Data Corp. | 21,645 | 1,274,024 | (a) | |||||||
2,788,579 | ||||||||||
Technology Hardware, Storage & Peripherals — 0.9% | ||||||||||
Diebold Inc. | 278,445 | 9,834,677 | ||||||||
Electronics for Imaging Inc. | 16,100 | 711,137 | (a) | |||||||
Super Micro Computer Inc. | 30,400 | 894,368 | (a) | |||||||
11,440,182 | ||||||||||
Thrifts & Mortgage Finance — 0.2% | ||||||||||
Essent Group Ltd. | 31,739 | 679,532 | (a) | |||||||
Radian Group Inc. | 45,271 | 645,564 | ||||||||
United Financial Bancorp Inc. | 44,300 | 562,167 | ||||||||
Washington Federal Inc. | 55,144 | 1,122,732 | ||||||||
3,009,995 | ||||||||||
Trading Companies & Distributors — 0.9% | ||||||||||
Aceto Corp. | 101,000 | 1,951,320 | ||||||||
Applied Industrial | 202,692 | 9,252,890 | ||||||||
11,204,210 | ||||||||||
Trucking — 1.2% | ||||||||||
ArcBest Corp. | 14,100 | 525,930 | ||||||||
Con-way Inc. | 12,094 | 574,465 | ||||||||
Landstar System Inc. | 40,700 | 2,938,133 | ||||||||
Marten Transport Ltd. | 54,249 | 966,175 | ||||||||
Old Dominion Freight Line Inc. | 133,976 | 9,464,064 | (a) | |||||||
Saia Inc. | 23,753 | 1,177,199 | (a) | |||||||
15,645,966 | ||||||||||
Total Common Stock | 1,186,118,084 |
Fair Value | ||||||||
Short-Term Investments — 5.3% | ||||||||
State Street Institutional U.S. | $ | 66,447,137 | (d,m) | |||||
Total Investments | 1,252,565,221 | |||||||
Other Assets and Liabilities, | 11,809,803 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,264,375,024 | ||||||
|
| |||||||
Other Information: | ||||||||
The Fund had the following long futures contracts open at September 30, 2014:
|
Description | Expiration date | Number of Contracts | Current Notional Value | Unre alized Depre ciation | ||||||||||||
Russell 2000 Mini Index Futures | December 2014 | 227 | $ | 24,892,820 | $ | (778,688 | ) |
See Notes to Schedules of Investments and Notes to Financial Statements.
42
Table of Contents
Ralph R. Layman Executive Vice President and Chief Investment Officer Emeritus
Jonathan L. Passmore
Senior Vice President
Michael J. Solecki
Senior Vice President and Chief Investment Officer International Equities
The International Equity Fund is managed by a team of portfolio managers that includes 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 the Fund to each manager, including himself. Each portfolio manager is limited to the management of his 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. Effective as of November 30, 2014, Mr. Passmore will retire as a portfolio manager for the Fund. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional International Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional International Equity Fund returned 1.69% for the Investment Class shares and 1.42% for the Service Class shares. The Fund’s benchmark, the MSCI EAFE Index returned 4.25% and the Fund’s Morningstar peer group of 776 Foreign Large Blend funds returned an average of 3.78% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | Against a backdrop of an orderly rotation from low-yielding money markets and bonds to equities, short-term performance was quite volatile. Europe benefitted from a rally in the periphery early in 2014 which lost momentum in the summer as a weakening Euro focused attention on exporters. Disappointment over Japan’s slow progress gave way to growing enthusiasm for stronger earnings and in the Emerging Markets, India alone was successful on the back of a surprisingly successful national election. |
Q. | What were the primary drivers behind Fund performance? |
A. | Outperformance in the fourth quarter of 2013 and third quarter of 2014 bookended two quarters where the Fund’s bottom-up stock-picking approach was challenged. Adverse factors included a surprisingly weak US dollar; a pronounced rotation into value stocks that specifically benefitted poor quality names in peripheral Europe; and a sharp fall in Japanese stocks as macro funds exited after a highly profitable 2013. However, these negative influences have dissipated and the Fund enjoyed a strong third quarter. |
Q. | Were there any significant changes in the Fund during the period? |
A. | The Fund’s overweights in Japan and the Emerging Markets were modestly increased and holdings in the UK slightly reduced. The Fund saw its weight in consumer staples continue to fall due to high valuations and the weight in industrials and IT increase, notably in the area associated with autonomous driving. In energy, exposure was switched out of oil service and into integrated and gas plays. High quality but under-performing holdings in Japan were increased including real estate, exporters and component manufacturers. |
43
Table of Contents
International Equity Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given
for your class under the heading “Expenses paid during the period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return |
| |||||||||||
Investment Class | 1,000.00 | 972.50 | 2.77 | |||||||||
Service Class | 1,000.00 | 970.80 | 4.00 | |||||||||
Hypothetical 5% Return (2.5% for the period) |
| |||||||||||
Investment Class | 1,000.00 | 1,022.26 | 2.84 | |||||||||
Service Class | 1,000.00 | 1,021.01 | 4.10 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.56% for Investment Class shares and 0.81% for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
44
Table of Contents
International Equity Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks. The Fund invests primarily (meaning at least 65%) in companies in both developed and emerging market countries outside the United States.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 776 | �� | 615 | 337 | ||
Peer group average annual total return | 3.78% | 6.14% | 5.89% |
Morningstar Category in peer group: Foreign Large Blend
Top Ten Largest Holdings as of September 30, 2014
(as a % of Fair Value) (b)(c)
Roche Holding AG | 2.68% | |||
Mitsui Fudosan Company Ltd. | 2.42% | |||
Murata Manufacturing Company Ltd. | 2.34% | |||
AIA Group Ltd. | 2.33% | |||
Toyota Motor Corp. | 2.25% | |||
SoftBank Corp. | 2.25% | |||
Sanofi | 2.13% | |||
Total S.A. | 2.10% | |||
Telefonaktiebolaget LM Ericsson, Class B | 2.08% | |||
Tokio Marine Holdings Inc. | 2.01% |
Regional Allocation as of September 30, 2014
Portfolio composition as a % of Fair Value of $1,808,109
(in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 11/25/97)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
International Equity Fund | 1.69% | 5.16% | 6.28% | $ | 18,394 | |||||||||||||||
MSCI EAFE Index | 4.25% | 6.56% | 6.32% | $ | 18,452 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 1/3/01)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
International Equity Fund | 1.42% | 4.86% | 6.01% | $ | 17,924 | |||||||||||||||
MSCI EAFE Index | 4.25% | 6.56% | 6.32% | $ | 18,452 |
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. . |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
45
Table of Contents
International Equity Fund
Schedule of Investments | September 30, 2014 |
International Equity Fund |
Number of Shares | Fair Value | |||||||||
Common Stock — 97.2%† | ||||||||||
Australia — 0.8% |
| |||||||||
CSL Ltd. | 224,858 | $ | 14,568,267 | |||||||
Belgium — 1.7% |
| |||||||||
Anheuser-Busch InBev N.V. | 283,933 | 31,492,540 | ||||||||
Canada — 3.2% |
| |||||||||
Brookfield Asset Management Inc., Class A | 236,367 | 10,634,453 | ||||||||
Cameco Corp. | 490,812 | 8,678,310 | ||||||||
Cenovus Energy Inc. | 576,128 | 15,532,850 | ||||||||
Peyto Exploration & Development Corp. | 376,348 | 11,901,157 | ||||||||
Valeant Pharmaceuticals International Inc. | 87,877 | 11,539,484 | (a) | |||||||
58,286,254 | ||||||||||
China — 1.4% |
| |||||||||
Baidu Inc. ADR | 120,557 | 26,309,154 | (a) | |||||||
France — 14.5% |
| |||||||||
Airbus Group N.V. | 415,447 | 26,119,298 | ||||||||
AXA S.A. | 1,036,931 | 25,546,291 | ||||||||
BNP Paribas S.A. | 469,883 | 31,190,204 | ||||||||
Credit Agricole S.A. | 1,710,771 | 25,791,401 | ||||||||
Safran S.A. | 479,556 | 31,096,293 | ||||||||
Sanofi | 340,072 | 38,458,221 | ||||||||
Schneider Electric SE | 213,437 | 16,377,992 | ||||||||
Technip S.A. | 363,753 | 30,518,587 | (h) | |||||||
Total S.A. | 586,487 | 37,983,434 | ||||||||
263,081,721 | ||||||||||
Germany — 9.1% |
| |||||||||
Bayer AG | 229,402 | 31,923,643 | ||||||||
Continental AG | 112,124 | 21,242,694 | (h) | |||||||
Fresenius SE & Company KGaA | 511,875 | 25,274,734 | ||||||||
HeidelbergCement AG | 355,405 | 23,396,705 | ||||||||
Linde AG | 168,087 | 32,178,518 | ||||||||
SAP SE | 436,245 | 31,488,623 | ||||||||
165,504,917 | ||||||||||
Hong Kong — 3.2% |
| |||||||||
AIA Group Ltd. | 8,155,202 | 42,085,541 | ||||||||
Sands China Ltd. | 2,924,307 | 15,255,043 | ||||||||
57,340,584 | ||||||||||
India — 2.4% |
| |||||||||
ICICI Bank Ltd. | 1,052,841 | 24,388,430 | ||||||||
Larsen & Toubro Ltd. | 478,576 | 11,239,366 |
Number of Shares | Fair Value | |||||||||
Power Grid Corporation of India Ltd. | 3,484,053 | $ | 7,610,007 | |||||||
43,237,803 | ||||||||||
Italy — 2.4% |
| |||||||||
Intesa Sanpaolo S.p.A. | 9,932,571 | 29,988,445 | ||||||||
Luxottica Group S.p.A. | 280,351 | 14,574,348 | ||||||||
44,562,793 | ||||||||||
Japan — 29.0% |
| |||||||||
Astellas Pharma Inc. | 881,400 | 13,124,799 | ||||||||
East Japan Railway Co. | 252,400 | 18,901,993 | ||||||||
FANUC Corp. | 199,200 | 36,019,290 | ||||||||
Fast Retailing Company Ltd. | 51,659 | 17,307,360 | (h) | |||||||
Hitachi Ltd. | 3,099,000 | 23,672,140 | ||||||||
Keyence Corp. | 36,700 | 15,931,733 | ||||||||
Mazda Motor Corp. | 1,031,500 | 25,942,107 | ||||||||
Mitsubishi Estate Company Ltd. | 1,330,224 | 29,974,189 | ||||||||
Mitsubishi Heavy Industries Ltd. | 4,284,000 | 27,574,671 | ||||||||
Mitsubishi UFJ Financial Group Inc. | 4,752,200 | 26,777,156 | ||||||||
Mitsui Fudosan Company Ltd. | 1,426,284 | 43,762,416 | ||||||||
Murata Manufacturing Company Ltd. | 372,781 | 42,364,555 | ||||||||
Nidec Corp. | 516,800 | 34,917,480 | ||||||||
Rakuten Inc. | 2,460,778 | 28,321,970 | ||||||||
SoftBank Corp. | 583,001 | 40,714,531 | ||||||||
Sumitomo Mitsui Financial Group Inc. | 594,100 | 24,201,868 | ||||||||
Tokio Marine Holdings Inc. | 1,174,200 | 36,425,934 | ||||||||
Toyota Motor Corp. | 692,981 | 40,766,972 | ||||||||
526,701,164 | ||||||||||
Mexico — 0.5% |
| |||||||||
Grupo Financiero Banorte SAB de C.V., Class O | 1,373,089 | 8,793,536 | ||||||||
Netherlands — 3.4% |
| |||||||||
ASML Holding N.V. | 267,528 | 26,502,459 | (h) | |||||||
ING Groep N.V. | 2,481,208 | 35,273,998 | (a) | |||||||
61,776,457 | ||||||||||
South Korea — 1.0% |
| |||||||||
Samsung Electronics Company Ltd. | 15,457 | 17,311,953 | ||||||||
Sweden — 4.4% |
| |||||||||
Assa Abloy AB, Class B | 404,983 | 20,833,030 | ||||||||
Hexagon AB, Class B | 310,928 | 9,842,035 | ||||||||
Svenska Cellulosa AB SCA, Class B | 472,983 | 11,250,448 | ||||||||
Telefonaktiebolaget LM Ericsson, Class B | 2,983,640 | 37,659,969 | ||||||||
79,585,482 |
See Notes to Schedules of Investments and Notes to Financial Statements.
46
Table of Contents
International Equity Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Switzerland — 6.0% |
| |||||||||
ABB Ltd. | 761,919 | $ | 17,029,533 | |||||||
Givaudan S.A. | 7,195 | 11,459,216 | (h) | |||||||
Nestle S.A. | 267,376 | 19,633,271 | ||||||||
Roche Holding AG | 164,475 | 48,529,283 | ||||||||
The Swatch Group AG | 27,907 | 13,213,968 | ||||||||
109,865,271 | ||||||||||
Taiwan — 1.4% |
| |||||||||
Taiwan Semiconductor Manufacturing Company Ltd. | 6,281,548 | 25,007,638 | ||||||||
United Kingdom — 12.8% |
| |||||||||
Barclays PLC | 9,712,982 | 35,726,086 | ||||||||
BHP Billiton PLC | 1,144,161 | 31,648,177 | ||||||||
BT Group PLC | 1,406,252 | 8,625,960 | ||||||||
Capita PLC | 920,556 | 17,329,843 | ||||||||
Experian PLC | 767,398 | 12,194,267 | ||||||||
GlaxoSmithKline PLC | 1,086,949 | 24,830,408 | ||||||||
HSBC Holdings PLC | 1,806,336 | 18,354,698 | ||||||||
International Consolidated Airlines Group S.A. | 1,491,847 | 8,855,800 | (a) | |||||||
Johnson Matthey PLC | 202,821 | 9,564,387 | ||||||||
Prudential PLC | 1,299,613 | 28,892,136 | ||||||||
Subsea 7 S.A. | 114,586 | 1,636,879 | ||||||||
Vodafone Group PLC | 5,486,329 | 18,078,676 | ||||||||
WPP PLC | 887,044 | 17,770,607 | ||||||||
233,507,924 | ||||||||||
Total Common Stock | 1,766,933,458 | |||||||||
Preferred Stock — 1.8% | ||||||||||
Germany — 1.8% |
| |||||||||
Volkswagen AG | 158,095 | 32,653,040 | ||||||||
Total Investments in Securities | 1,799,586,498 | |||||||||
Short-Term Investments – 0.5% |
| |||||||||
State Street Institutional U.S. Government Money Market Fund - | 8,522,424 | (d,m) | ||||||||
Total Investments | 1,808,108,922 | |||||||||
Other Assets and Liabilities, | 9,286,738 | |||||||||
|
| |||||||||
NET ASSETS — 100.0% | $ | 1,817,395,660 | ||||||||
|
|
Other Information: |
The Fund had the following short futures contracts open at September 30, 2014:
Description | Expiration date | Number of Contracts | Current Notional Value | Unre alized Appre ciation (Depre ciation) | ||||||||||||||||
EURO Stoxx 50 Index Futures | December 2014 | 390 | $ | (15,878,672 | ) | $ | (31,881 | ) | ||||||||||||
FTSE 100 Index Futures | December 2014 | 77 | (8,245,551 | ) | 152,643 | |||||||||||||||
Topix Index Futures | December 2014 | 62 | (7,497,425 | ) | (146,591 | ) | ||||||||||||||
|
| |||||||||||||||||||
$ | (25,829 | ) | ||||||||||||||||||
|
|
See Notes to Schedules of Investments and Notes to Financial Statements.
47
Table of Contents
International Equity Fund
Schedule of Investments | September 30, 2014 |
The Fund was invested in the following sectors at September 30, 2014 (unaudited):
Sector | Percentage (based on Fair Value) | |||
Diversified Banks | 12.46% | |||
Pharmaceuticals | 9.31% | |||
Automobile Manufacturers | 5.50% | |||
Diversified Real Estate Activities | 4.67% | |||
Life & Health Insurance | 3.93% | |||
Industrial Machinery | 3.52% | |||
Wireless Telecommunication Services | 3.25% | |||
Aerospace & Defense | 3.16% | |||
Integrated Oil & Gas | 2.96% | |||
Electrical Components & Equipment | 2.84% | |||
Electronic Equipment & Instruments | 2.73% | |||
Electronic Components | 2.34% | |||
Semiconductors | 2.34% | |||
Communications Equipment | 2.08% | |||
Property & Casualty Insurance | 2.01% | |||
Other Diversified Financial Services | 1.95% | |||
Industrial Gases | 1.78% | |||
Oil & Gas Equipment & Services | 1.78% | |||
Diversified Metals & Mining | 1.75% | |||
Brewers | 1.74% | |||
Application Software | 1.74% | |||
Internet Retail | 1.57% | |||
Apparel, Accessories & Luxury Goods | 1.54% | |||
Semiconductor Equipment | 1.47% | |||
Internet Software & Services | 1.46% | |||
Multi-Line Insurance | 1.41% | |||
Healthcare Services | 1.40% | |||
Construction Materials | 1.29% | |||
Auto Parts & Equipment | 1.17% | |||
Specialty Chemicals | 1.16% | |||
Building Products | 1.15% | |||
Packaged Foods & Meats | 1.09% | |||
Railroads | 1.05% | |||
Advertising | 0.98% | |||
Human Resource & Employment Services | 0.96% | |||
Apparel Retail | 0.96% | |||
Heavy Electrical Equipment | 0.94% | |||
Casinos & Gaming | 0.84% | |||
Biotechnology | 0.81% | |||
Research & Consulting Services | 0.67% | |||
Oil & Gas Exploration & Production | 0.66% | |||
Household Products | 0.62% | |||
Construction & Engineering | 0.62% | |||
Airlines | 0.49% |
Sector | Percentage (based on Fair Value) | |||
Coal & Consumable Fuels | 0.48% | |||
Integrated Telecommunication Services | 0.48% | |||
Electric Utilities | 0.42% | |||
|
| |||
99.53% | ||||
|
| |||
Short-Term Investments | ||||
Short-Term Investments | 0.47% | |||
|
| |||
0.47% | ||||
|
| |||
100.00% | ||||
|
|
See Notes to Schedules of Investments and Notes to Financial Statements.
48
Table of Contents
David Wiederecht
President and Chief Investment Officer – Investment Solutions
Jeffrey Palma
Senior Vice President
The Strategic Investment Fund is managed by a team of portfolio managers that includes Jeffrey Palma and David Wiederecht. Messrs. Palma and Wiederecht are vested with oversight authority for determining asset allocations for the Fund. Each of the U.S. equity, international equity and fixed income portions of the Fund are managed by separate teams 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 seek the Fund’s objective. Effective as of February 6, 2014, Greg Hartch relinquished his role as a portfolio manager for the Fund and now serves as GEAM’s Chief Risk Officer. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional Strategic Investment Fund perform compared to its benchmarks and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional Strategic Investment Fund returned 8.98% for the Investment Class shares and 8.79% for the Service Class shares. The Fund’s broad based benchmarks, the S&P 500 Index, the MSCI All Country World ex-U.S. Index and the Barclays U.S. Aggregate Bond Index returned 19.73%, 4.77% and 3.96%, respectively. The Fund’s Morningstar peer group of 853 U.S. moderate allocation funds returned an average of 9.49% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | Returns in global equity markets generally cooled off toward the end of this period, following solid gains across the board in early 2014. At the same time, global bond yields continued to move lower, with sharp declines in interest rates in Europe, courtesy of more aggressive policy action announced by the European Central Bank (ECB). For the |
year as a whole, so far, equity markets have been a bit more subdued than was expected, with the exception of the U.S. It remains the case that interest rates have moved far lower than most had forecast. Despite the approach of the end of the Fed’s quantitative easing program and rising expectations for 2015 rate hikes, U.S. 10-year treasury yields are near their lowest level since last summer. |
Growth in the U.S. remains subdued but clearly picked up during this period. Meanwhile, a range of other growth indicators continue to point to moderate, but sustained, growth. Conditions in Europe remained challenging, with growth and inflation both below the desired levels, which has prompted more action by the ECB. Meanwhile, China continues to show signs of a gradual deceleration in growth. All told, conditions in the global economy appear to remain in a slow recovery. At the same time, geopolitical hot spots around the world remain sources of risk. |
Given that returns have continued to outstrip earnings growth, price-to-earnings multiples remain at their highs since the financial crisis. Strong balance sheets, accommodative policy, and expectations for continued economic recovery — factors that we have consistently highlighted in recent quarters — have continued to underpin valuations and returns. In the U.S., earnings growth has also remained a solid contributor to returns and has been supported by strong cost discipline, high margins, and continued buyback activity. In Europe, growth remains more sluggish where margins are lower than those in the U.S. However, economic conditions probably need to improve to see material acceleration in earnings in our view. |
Some of the biggest market moves recently were again in government bond markets, particularly in Europe. While U.S. rates declined modestly (with larger moves at the long end of the yield curve), European yields fell sharply. The ECB announced another |
49
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Strategic Investment Fund | (Unaudited) |
rate cut, which moved the deposit rate further into negative territory and it also announced a plan to buy asset-backed securities. While this is still far removed from U.S.-style quantitative easing, these actions signaled a desire to keep policy extremely loose and a willingness to continue to stimulate activity. While credit growth remains weak, we believe growth and inflation are apt to remain under pressure. However, these central bank actions are clearly more proactive than in the past. Moreover, lower rates in Europe have likely played some role in keeping U.S. treasury yields suppressed. |
Outside of government bond markets, credit markets in the U.S. were somewhat weaker in the latter part of this period. In particular, high yield bond spreads have widened to the widest levels in a year. Given the resilience of equity markets, it is difficult to suggest that this is being driven by weaker growth expectations. Instead, as quantitative easing is coming to an end and rate hikes are being signaled, it seems that high volatility in bond markets generally has caused some pressure in these areas that have performed well in recent years and where there are lingering concerns about liquidity and increases in leverage. |
In the aggregate, global growth trends, with the possible exception of Europe, have not changed much recently. The middle part of the period was clearly disappointing, but most data suggest that the recovery in the U.S. and, mostly, elsewhere is intact. This is not to say that growth trends are robust. Indeed, in most regions, growth has come in below expectations for a variety of reasons. Even at 2.5-3% growth, the U.S. looks to be in one of the healthier positions around the world. Europe continues to face headwinds via currency strength, Ukraine/Russia risks, and continued pressures in the periphery. The consumption tax hike in Japan alongside higher energy costs have weighed on growth. And, China continues to show signs of slowing amid fundamental rebalancing in the economy. |
All told, these broadly modest growth trends continue to pose challenges to central bankers. The Fed has nearly completed its quantitative easing program and has clearly begun to lay the groundwork with markets to raise interest rates in the future. Fed forecasts for likely interest rate trends have moved up in recent quarters and discussion from within the Fed has |
moved away from the one-sided, highly accommodative positioning that has been in place for several years. On the other hand, President of the ECB, Mario Draghi, has worked to continue to ease conditions in Europe given weak growth as well as continued declines in inflation (now below 1%). Lower rates and purchases of asset-backed securities have been the first steps, while investors have increased expectations for Fed-style quantitative easing. Whether the ECB will actually undertake this final step is still unclear, as much work still needs to be done. However, the ECB is certainly trying to be more proactive in taking policy action than had been the case in the past. |
Conditions remain challenging for markets in our view. Valuations across asset classes — equities, rates, and credit — are not cheap. We believe growth remains weaker than had been forecast and hoped for, posing challenges for strong economic recovery and for earnings growth. Moreover, the tepid pace of activity continues to keep central bank activity on the front of the radar screen. Across markets, volatility has ticked higher in recent weeks. Given the cross-current of growth, geopolitical, and interest rate uncertainty, we believe this trend is apt to remain in place. |
Q. | What were the primary drivers behind Fund performance? |
A. | The Fund’s performance was primarily driven by its asset allocation and underlying security selection. A higher allocation to U.S. equity positively impacted the Fund’s performance as U.S. equity markets rallied during the period. A lower allocation to fixed income also contributed to positive performance as fixed income underperformed equity during the period. A higher allocation to cash detracted from performance. The S&P 500 Index outperformed the MSCI All Country World ex-U.S. Index, and both of these equity indices outperformed the Barclays U.S. Aggregate Bond Index over the twelve-month period. Security selection in fixed income positively impacted performance and security selection in U.S. equity and international equity detracted from performance. |
Q. | Were there any significant changes in the Fund during the period? |
A. | During the twelve-month period the Fund’s exposure to equity and fixed income decreased and exposure to |
50
Table of Contents
(Unaudited) |
cash increased. Allocations within the Fund were periodically rebalanced to stay within guidelines. |
Earlier this year, within equity, we reduced growth, value, equity yield, and mid-cap and placed the proceeds into cash to rebalance the Fund and keep the overall allocation to equity relative to fixed income and cash fairly constant. As the year progressed, we reduced fixed income and increased cash. We also decreased growth equity and equity yield and increased international equity to rebalance the Fund and keep equity allocations close to their strategic targets. We continued to reduce fixed income and growth equity and increased cash. Also, value equity was reduced and fixed income was increased. Toward the end of the period, within U.S. equity, the allocations to growth, value, and equity yield were consolidated into a MultiStyle large-cap blend strategy. |
Our preference for equities over bonds has been driven by an expectation for bond yields to rise in the short to medium-term, equity valuations that are in line with long-term averages, and our view that the economic recovery will be sustained. Nevertheless, we believe short-term setbacks in the equity markets are likely to continue to occur. We, therefore, favor being disciplined in rebalancing the Fund, rather than simply letting the Fund’s allocation to equity increase significantly. Returns in both bond and equity markets may be more modest and range-bound going forward. We continue to believe it prudent to maintain a diversified portfolio and remain vigilant in the search for attractive investment opportunities. By tactically allocating between U.S. equity, international equity, and fixed income, we believe the Fund will continue to seek to produce attractive returns while maintaining a prudent level of risk. |
51
Table of Contents
Strategic Investment Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given
for your class under the heading “Expenses paid during the period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return | ||||||||||||
Investment Class | 1,000.00 | 1,025.00 | 1.78 | |||||||||
Service Class | 1,000.00 | 1,023.60 | 3.04 | |||||||||
Hypothetical 5% Return (2.5% for the period) | ||||||||||||
Investment Class | 1,000.00 | 1,023.31 | 1.78 | |||||||||
Service Class | 1,000.00 | 1,022.06 | 3.04 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.35% for Investment Class shares and 0.60% for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
52
Table of Contents
Strategic Investment Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek to maximize total return. The Fund seeks to achieve its investment objective by investing primarily in a combination of U.S. and foreign equity and debt securities and cash. The Fund’s asset allocation process utilizes information from GE Asset Management’s Asset Allocation Committee to diversify holdings across these asset classes. The Fund adjusts its weightings based on market and economic conditions to meet its objective.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 853 | 654 | 432 | |||
Peer group average annual total return | 9.49% | 9.29% | 5.89% |
Morningstar Category in peer group: Moderate Allocation
Top Ten Largest Equity Holdings
as of September 30, 2014
(as a % of Fair Value) (b)(c)
Amgen Inc. | 0.97% | |||
Actavis PLC | 0.92% | |||
EMC Corp. | 0.84% | |||
Apple Inc. | 0.78% | |||
JPMorgan Chase & Co. | 0.74% | |||
QUALCOMM Inc. | 0.72% | |||
Exxon Mobil Corp. | 0.69% | |||
Baidu Inc. ADR | 0.67% | |||
PepsiCo Inc. | 0.67% | |||
Pfizer Inc. | 0.67% |
Sector Allocation as of September 30, 2014
Portfolio Composition as a % of Fair Value of $866,458 (in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 10/29/99)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Strategic Investment Fund | 8.98% | 8.58% | 6.09% | $ | 18,064 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 8.11% | $ | 21,804 | |||||||||||||||
Barclays U.S. Aggregate Bond Index | 3.96% | 4.12% | 4.62% | $ | 15,712 | |||||||||||||||
MSCI All Country World Index ex U.S. | 4.77% | 6.03% | 7.06% | $ | 19,788 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 9/30/05)
One Year | Five Year | Since Inception | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Strategic Investment Fund | 8.79% | 8.21% | 5.41% | $ | 16,063 | |||||||||||||||
S&P 500 Index | 19.73% | 15.70% | 7.66% | $ | 19,424 | |||||||||||||||
Barclays U.S. Aggregate Bond Index | 3.96% | 4.12% | 4.83% | $ | 15,284 | |||||||||||||||
MSCI All Country World Index ex U.S. | 4.77% | 6.03% | 4.88% | $ | 15,347 |
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
53
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Strategic Investment Fund |
Number of Shares | Fair Value | |||||||||
Domestic Equity — 34.2%† |
| |||||||||
Common Stock — 34.2% | ||||||||||
Aerospace & Defense — 1.3% | ||||||||||
General Dynamics Corp. | 31,466 | $ | 3,999,014 | |||||||
Hexcel Corp. | 13,941 | 553,458 | (a) | |||||||
Honeywell International Inc. | 49,655 | 4,623,873 | ||||||||
The Boeing Co. | 11,285 | 1,437,483 | ||||||||
10,613,828 | ||||||||||
Agricultural Products — 0.4% |
| |||||||||
Archer-Daniels-Midland Co. | 73,553 | 3,758,558 | ||||||||
Air Freight & Logistics — 0.1% |
| |||||||||
United Parcel Service Inc., Class B | 13,277 | 1,304,996 | ||||||||
Airlines — 0.1% |
| |||||||||
Delta Air Lines Inc. | 33,192 | 1,199,891 | ||||||||
Application Software — 0.2% |
| |||||||||
Intuit Inc. | 23,898 | 2,094,660 | ||||||||
Asset Management & Custody Banks — 1.7% |
| |||||||||
Ameriprise Financial Inc. | 35,183 | 4,340,879 | ||||||||
Invesco Ltd. | 121,482 | 4,796,109 | ||||||||
State Street Corp. | 67,180 | 4,945,120 | (e) | |||||||
14,082,108 | ||||||||||
Auto Parts & Equipment — 0.1% |
| |||||||||
TRW Automotive Holdings Corp. | 5,311 | 537,739 | (a) | |||||||
Automobile Manufacturers — 0.2% |
| |||||||||
Ford Motor Co. | 100,903 | 1,492,355 | ||||||||
Automotive Retail — 0.1% |
| |||||||||
AutoZone Inc. | 1,726 | 879,673 | (a) | |||||||
Biotechnology — 1.8% |
| |||||||||
Alexion Pharmaceuticals Inc. | 11,152 | 1,849,224 | (a) | |||||||
Amgen Inc. | 59,745 | 8,391,783 | ||||||||
Gilead Sciences Inc. | 42,220 | 4,494,319 | (a) | |||||||
14,735,326 | ||||||||||
Broadcasting — 0.3% |
| |||||||||
CBS Corp., Class B | 21,243 | 1,136,500 | ||||||||
Discovery Communications Inc., | 45,938 | 1,712,569 | (a) | |||||||
2,849,069 |
Number of Shares | Fair Value | |||||||||
Cable & Satellite — 1.0% |
| |||||||||
Comcast Corp., Class A | 49,124 | $ | 2,641,889 | |||||||
Comcast Corp., Special Class A | 44,610 | 2,386,635 | ||||||||
Liberty Global PLC, | 77,536 | 3,180,139 | (a) | |||||||
8,208,663 | ||||||||||
Casinos & Gaming — 0.2% |
| |||||||||
Las Vegas Sands Corp. | 23,898 | 1,486,695 | ||||||||
Commodity Chemicals — 0.6% |
| |||||||||
LyondellBasell Industries N.V., Class A | 43,149 | 4,688,570 | ||||||||
Communications Equipment — 1.4% |
| |||||||||
Cisco Systems Inc. | 220,925 | 5,560,682 | ||||||||
QUALCOMM Inc. | 83,245 | 6,224,229 | ||||||||
11,784,911 | ||||||||||
Consumer Finance – 0.5% |
| |||||||||
American Express Co. | 45,805 | 4,009,770 | ||||||||
Data Processing & Outsourced Services — 0.4% |
| |||||||||
Visa Inc., Class A | 14,870 | 3,172,812 | ||||||||
Department Stores — 0.1% |
| |||||||||
Macy’s Inc. | 19,650 | 1,143,237 | ||||||||
Diversified Banks — 2.0% |
| |||||||||
Bank of America Corp. | 94,265 | 1,607,218 | ||||||||
Citigroup Inc. | 102,231 | 5,297,610 | ||||||||
JPMorgan Chase & Co. | 106,751 | 6,430,680 | ||||||||
Wells Fargo & Co. | 67,711 | 3,512,170 | ||||||||
16,847,678 | ||||||||||
Diversified Metals & Mining — 0.0%* |
| |||||||||
Southern Copper Corp. | 2,607 | 77,298 | ||||||||
Drug Retail — 0.3% | ||||||||||
CVS Health Corp. | 30,537 | 2,430,440 | ||||||||
Electric Utilities — 0.1% |
| |||||||||
NextEra Energy Inc. | 10,621 | 997,099 | ||||||||
Electrical Components & Equipment — 0.5% |
| |||||||||
Eaton Corp. PLC | 60,542 | 3,836,547 | ||||||||
Fertilizers & Agricultural Chemicals — 0.4% |
| |||||||||
Monsanto Co. | 27,881 | 3,136,891 | ||||||||
General Merchandise Stores — 0.5% |
| |||||||||
Dollar General Corp. | 33,192 | 2,028,363 | (a) | |||||||
Target Corp. | 33,192 | 2,080,475 | ||||||||
4,108,838 |
See Notes to Schedules of Investments and Notes to Financial Statements.
54
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Healthcare Distributors — 0.2% |
| |||||||||
Cardinal Health Inc. | 20,579 | $ | 1,541,779 | |||||||
Healthcare Equipment — 1.3% |
| |||||||||
Abbott Laboratories | 47,796 | 1,987,836 | ||||||||
Boston Scientific Corp. | 312,004 | 3,684,767 | (a) | |||||||
Covidien PLC | 49,921 | 4,318,666 | ||||||||
Stryker Corp. | 7,966 | 643,254 | ||||||||
10,634,523 | ||||||||||
Healthcare Services — 0.2% |
| |||||||||
Express Scripts Holding Co. | 26,554 | 1,875,509 | (a) | |||||||
Healthcare Supplies — 0.2% |
| |||||||||
The Cooper Companies Inc. | 10,090 | 1,571,517 | ||||||||
Home Improvement Retail — 0.6% |
| |||||||||
Lowe’s Companies Inc. | 94,929 | 5,023,643 | ||||||||
Household Products — 0.1% |
| |||||||||
Energizer Holdings Inc. | 5,311 | 654,368 | ||||||||
Independent Power Producers & Energy Traders — 0.5% |
| |||||||||
AES Corp. | 136,087 | 1,929,713 | ||||||||
Calpine Corp. | 57,090 | 1,238,853 | (a) | |||||||
NRG Energy Inc. | 35,316 | 1,076,432 | ||||||||
4,244,998 | ||||||||||
Industrial Machinery — 0.2% |
| |||||||||
Dover Corp. | 18,587 | 1,493,094 | ||||||||
Integrated Oil & Gas — 2.0% |
| |||||||||
Chevron Corp. | 28,147 | 3,358,500 | ||||||||
Exxon Mobil Corp. | 63,330 | 5,956,186 | ||||||||
Hess Corp. | 38,237 | 3,606,514 | ||||||||
Occidental Petroleum Corp. | 42,353 | 4,072,241 | ||||||||
16,993,441 | ||||||||||
Integrated Telecommunication Services — 0.4% |
| |||||||||
Verizon Communications Inc. | 63,728 | 3,185,763 | ||||||||
Internet Retail — 0.2% |
| |||||||||
Amazon.com Inc. | 6,638 | 2,140,357 | (a) | |||||||
Internet Software & Services — 1.1% |
| |||||||||
eBay Inc. | 44,610 | 2,526,264 | (a) | |||||||
Facebook Inc., Class A | 14,073 | 1,112,330 | (a) | |||||||
Google Inc., Class A | 6,426 | 3,781,123 | (a) | |||||||
Google Inc., Class C | 2,921 | 1,686,468 | (a) | |||||||
9,106,185 | ||||||||||
Investment Banking & Brokerage — 0.2% |
| |||||||||
The Charles Schwab Corp. | 61,073 | 1,794,935 |
Number of Shares | Fair Value | |||||||||
Life & Health Insurance — 0.2% |
| |||||||||
MetLife Inc. | 26,554 | $ | 1,426,481 | |||||||
Life Sciences Tools & Services — 0.1% |
| |||||||||
PerkinElmer Inc. | 15,932 | 694,635 | ||||||||
Movies & Entertainment — 0.6% |
| |||||||||
The Walt Disney Co. | 22,570 | 2,009,407 | ||||||||
Time Warner Inc. | 40,627 | 3,055,557 | ||||||||
5,064,964 | ||||||||||
Multi-Line Insurance — 1.3% |
| |||||||||
American International Group Inc. | 97,717 | 5,278,672 | ||||||||
Genworth Financial Inc., Class A | 39,830 | 521,773 | (a) | |||||||
The Hartford Financial Services Group Inc. | 130,776 | 4,871,406 | ||||||||
10,671,851 | ||||||||||
Oil & Gas Equipment & Services — 1.3% |
| |||||||||
Cameron International Corp. | 21,907 | 1,454,187 | (a) | |||||||
Halliburton Co. | 56,426 | 3,640,041 | ||||||||
Schlumberger Ltd. | 55,762 | 5,670,438 | ||||||||
10,764,666 | ||||||||||
Oil & Gas Exploration & Production — 0.3% |
| |||||||||
Anadarko Petroleum Corp. | 9,028 | 915,800 | ||||||||
Marathon Oil Corp. | 51,779 | 1,946,373 | ||||||||
2,862,173 | ||||||||||
Packaged Foods & Meats — 0.4% |
| |||||||||
Mondelez International Inc., Class A | 96,920 | 3,320,964 | ||||||||
Pharmaceuticals — 2.7% |
| |||||||||
Actavis PLC | 33,192 | 8,008,565 | (a) | |||||||
Johnson & Johnson | 48,593 | 5,179,528 | ||||||||
Merck & Company Inc. | 60,542 | 3,588,930 | ||||||||
Pfizer Inc. | 195,168 | 5,771,118 | ||||||||
22,548,141 | ||||||||||
Publishing — 0.0%* |
| |||||||||
Tribune Media Co., Class A | 2,655 | 174,699 | (a) | |||||||
Railroads — 0.1% |
| |||||||||
CSX Corp. | 13,277 | 425,661 | ||||||||
Regional Banks — 0.4% |
| |||||||||
Regions Financial Corp. | 321,298 | 3,225,832 | ||||||||
Research & Consulting Services — 0.1% |
| |||||||||
Nielsen N.V. | 18,587 | 823,962 | ||||||||
Semiconductor Equipment — 0.1% |
| |||||||||
Applied Materials Inc. | 46,469 | 1,004,195 |
See Notes to Schedules of Investments and Notes to Financial Statements.
55
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Semiconductors — 0.0%* |
| |||||||||
Analog Devices Inc. | 7,302 | $ | 361,376 | |||||||
Soft Drinks — 1.2% |
| |||||||||
Coca-Cola Enterprises Inc. | 88,556 | 3,928,344 | ||||||||
PepsiCo Inc. | 62,268 | 5,796,528 | ||||||||
9,724,872 | ||||||||||
Specialized Finance — 0.6% |
| |||||||||
CME Group Inc. | 41,689 | 3,333,244 | ||||||||
McGraw Hill Financial Inc. | 25,226 | 2,130,336 | ||||||||
5,463,580 | ||||||||||
Specialized REITs — 0.6% |
| |||||||||
American Tower Corp. | 51,116 | 4,785,991 | ||||||||
Specialty Chemicals — 0.1% |
| |||||||||
PPG Industries Inc. | 2,390 | 470,209 | ||||||||
Specialty Stores — 0.2% |
| |||||||||
Dick’s Sporting Goods Inc. | 41,158 | 1,806,013 | ||||||||
Systems Software — 0.2% |
| |||||||||
Microsoft Corp. | 13,941 | 646,305 | ||||||||
Oracle Corp. | 21,243 | 813,182 | ||||||||
1,459,487 | ||||||||||
Technology Hardware, Storage & Peripherals — 2.2% |
| |||||||||
Apple Inc. | 66,915 | 6,741,686 | ||||||||
EMC Corp. | 248,275 | 7,264,527 | ||||||||
Hewlett-Packard Co. | 136,751 | 4,850,558 | ||||||||
18,856,771 | ||||||||||
Total Common Stock | 285,674,287 | |||||||||
Preferred Stock — 0.0%* | ||||||||||
Diversified Banks — 0.0%* | ||||||||||
Wells Fargo & Co. | 9,802 | 251,225 | ||||||||
Total Preferred Stock | 251,225 | |||||||||
Total Domestic Equity | 285,925,512 | |||||||||
Foreign Equity — 22.0% | ||||||||||
Common Stock — 21.6% |
| |||||||||
Advertising — 0.2% |
| |||||||||
WPP PLC | 81,948 | 1,641,706 |
Number of Shares | Fair Value | |||||||||
Aerospace & Defense — 0.7% |
| |||||||||
Airbus Group N.V. | 38,382 | $ | 2,413,090 | |||||||
Embraer S.A. ADR | 4,074 | 159,782 | ||||||||
Safran S.A. | 46,121 | 2,990,667 | ||||||||
5,563,539 | ||||||||||
Airlines — 0.1% |
| |||||||||
International Consolidated Airlines Group S.A. | 137,822 | 818,129 | (a) | |||||||
Apparel Retail — 0.2% |
| |||||||||
Fast Retailing Company Ltd. | 4,888 | 1,637,631 | ||||||||
Apparel, Accessories & Luxury Goods — 0.3% |
| |||||||||
Luxottica Group S.p.A. | 25,899 | 1,346,387 | ||||||||
The Swatch Group AG | 2,577 | 1,220,210 | ||||||||
2,566,597 | ||||||||||
Application Software — 0.4% |
| |||||||||
SAP SE | 41,936 | 3,026,984 | ||||||||
Auto Parts & Equipment — 0.2% |
| |||||||||
Continental AG | 10,360 | 1,962,776 | ||||||||
Automobile Manufacturers — 0.8% |
| |||||||||
Great Wall Motor Company Ltd., Class H | 36,134 | 140,031 | ||||||||
Hyundai Motor Co. | 1,309 | 235,846 | ||||||||
Mahindra & Mahindra Ltd. | 4,627 | 101,495 | ||||||||
Mazda Motor Corp. | 95,300 | 2,396,784 | ||||||||
Toyota Motor Corp. | 65,880 | 3,875,616 | ||||||||
6,749,772 | ||||||||||
Biotechnology — 0.2% |
| |||||||||
CSL Ltd. | 20,772 | 1,345,792 | ||||||||
Brewers — 0.4% |
| |||||||||
AMBEV S.A. ADR | 18,291 | 119,806 | ||||||||
Anheuser-Busch InBev N.V. | 26,231 | 2,909,422 | ||||||||
SABMiller PLC | 1,647 | 91,273 | ||||||||
3,120,501 | ||||||||||
Building Products — 0.2% |
| |||||||||
Assa Abloy AB, Class B | 37,413 | 1,924,590 | ||||||||
Casinos & Gaming — 0.2% |
| |||||||||
Genting Bhd | 37,599 | 108,712 | ||||||||
Sands China Ltd. | 296,858 | 1,548,600 | ||||||||
1,657,312 | ||||||||||
Coal & Consumable Fuels — 0.1% |
| |||||||||
Cameco Corp. | 43,312 | 765,823 | ||||||||
Coal India Ltd. | 19,797 | 109,129 | ||||||||
874,952 |
See Notes to Schedules of Investments and Notes to Financial Statements.
56
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Commodity Chemicals — 0.0%* |
| |||||||||
LG Chem Ltd. | 508 | $ | 122,967 | |||||||
Communications Equipment — 0.4% |
| |||||||||
Telefonaktiebolaget LM Ericsson, Class B | 282,290 | 3,563,108 | ||||||||
Construction & Engineering — 0.2% |
| |||||||||
China State Construction International Holdings Ltd. | 77,264 | 114,661 | ||||||||
Larsen & Toubro Ltd. | 47,050 | 1,104,970 | ||||||||
1,219,631 | ||||||||||
Construction Materials — 0.3% |
| |||||||||
Cemex SAB de C.V. ADR | 17,961 | 234,211 | (a) | |||||||
HeidelbergCement AG | 32,834 | 2,161,499 | ||||||||
Indocement Tunggal Prakarsa Tbk PT | 36,500 | 64,710 | ||||||||
2,460,420 | ||||||||||
Department Stores — 0.0%* |
| |||||||||
Matahari Department Store Tbk PT | 117,076 | 155,955 | ||||||||
Shinsegae Company Ltd. | 430 | 89,295 | ||||||||
Woolworths Holdings Ltd. | 20,249 | 125,091 | ||||||||
370,341 | ||||||||||
Diversified Banks — 2.8% |
| |||||||||
Banco Santander Chile ADR | 3,087 | 68,192 | ||||||||
Bank of China Ltd., Class H | 605,978 | 270,680 | ||||||||
Barclays PLC | 929,119 | 3,417,466 | ||||||||
BNP Paribas S.A. | 43,411 | 2,881,564 | ||||||||
Credicorp Ltd. | 956 | 146,641 | ||||||||
Credit Agricole S.A. | 158,053 | 2,382,790 | ||||||||
CTBC Financial Holding Company Ltd. | 219,211 | 147,232 | ||||||||
Erste Group Bank AG | 1,772 | 40,466 | ||||||||
Grupo Financiero Banorte SAB de C.V., Class O | 157,276 | 1,007,227 | ||||||||
HSBC Holdings PLC | 166,701 | 1,693,897 | ||||||||
ICICI Bank Ltd. | 104,849 | 2,428,764 | ||||||||
Industrial & Commercial Bank of China | 457,203 | 285,155 | ||||||||
Intesa Sanpaolo S.p.A. | 917,662 | 2,770,607 | ||||||||
Kasikornbank PCL NVDR | 14,700 | 106,322 | ||||||||
Malayan Banking Bhd | 61,773 | 187,533 | ||||||||
Metropolitan Bank & Trust Co. | 85,186 | 164,624 | ||||||||
Mitsubishi UFJ Financial Group Inc. | 438,900 | 2,473,064 | ||||||||
Shinhan Financial Group Company Ltd. | 5,358 | 246,664 | ||||||||
Sumitomo Mitsui Financial Group Inc. | 55,000 | 2,240,536 | ||||||||
22,959,424 | ||||||||||
Diversified Metals & Mining — 0.4% | ||||||||||
BHP Billiton PLC | 105,703 | 2,923,808 | ||||||||
MMC Norilsk Nickel OJSC ADR | 4,478 | 83,208 | ||||||||
3,007,016 |
Number of Shares | Fair Value | |||||||||
Diversified Real Estate Activities — 0.9% | ||||||||||
Brookfield Asset Management Inc., Class A | 21,838 | $ | 982,519 | |||||||
Mitsubishi Estate Company Ltd. | 122,588 | 2,762,299 | ||||||||
Mitsui Fudosan Company Ltd. | 131,399 | 4,031,692 | ||||||||
7,776,510 | ||||||||||
Education Services — 0.0%* | ||||||||||
Kroton Educacional S.A. | 19,022 | 119,431 | ||||||||
Electric Utilities — 0.1% | ||||||||||
Power Grid Corporation of India Ltd. | 373,849 | 816,576 | ||||||||
Electrical Components & Equipment — 0.6% | ||||||||||
Nidec Corp. | 47,600 | 3,216,083 | ||||||||
Schneider Electric SE | 19,718 | 1,513,052 | ||||||||
4,729,135 | ||||||||||
Electronic Components — 0.5% | ||||||||||
Murata Manufacturing Company Ltd. | 34,499 | 3,920,626 | ||||||||
Electronic Equipment & Instruments — 0.6% | ||||||||||
Hexagon AB, Class B | 28,724 | 909,222 | ||||||||
Hitachi Ltd. | 287,000 | 2,192,289 | ||||||||
Keyence Corp. | 3,400 | 1,475,965 | ||||||||
4,577,476 | ||||||||||
Food Retail — 0.0%* | ||||||||||
Magnit OJSC GDR | 2,788 | 160,366 | ||||||||
Gas Utilities — 0.0%* | ||||||||||
China Resources Gas Group Ltd. | 33,329 | 90,182 | ||||||||
ENN Energy Holdings Ltd. | 15,087 | 98,705 | ||||||||
188,887 | ||||||||||
Healthcare Services — 0.3% | ||||||||||
Fresenius SE & Company KGaA | 47,286 | 2,334,830 | ||||||||
Healthcare Supplies — 0.0%* | ||||||||||
Ginko International Company Ltd. | 7,460 | 100,240 | ||||||||
Heavy Electrical Equipment — 0.2% | ||||||||||
ABB Ltd. | 70,394 | 1,573,365 | ||||||||
Highways & Railtracks — 0.0%* | ||||||||||
CCR S.A. | 15,106 | 103,478 | ||||||||
Household Appliances — 0.0%* | ||||||||||
Techtronic Industries Co. | 46,880 | 135,481 | ||||||||
Household Products — 0.1% | ||||||||||
LG Household & Healthcare Ltd. | 185 | 88,779 | ||||||||
Svenska Cellulosa AB SCA, Class B | 43,698 | 1,039,407 | ||||||||
1,128,186 |
See Notes to Schedules of Investments and Notes to Financial Statements.
57
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Human Resource & Employment Services — 0.2% | ||||||||||
Capita PLC | 85,046 | $ | 1,601,026 | |||||||
Industrial Conglomerates — 0.0%* | ||||||||||
Alfa SAB de C.V., Class A | 42,214 | 145,216 | ||||||||
Enka Insaat ve Sanayi AS | 20,627 | 47,028 | ||||||||
192,244 | ||||||||||
Industrial Gases — 0.4% | ||||||||||
Linde AG | 15,962 | 3,055,760 | ||||||||
Industrial Machinery — 0.7% | ||||||||||
Airtac International Group | 3,544 | 28,551 | ||||||||
FANUC Corp. | 18,400 | 3,327,083 | ||||||||
Mitsubishi Heavy Industries Ltd. | 395,000 | 2,542,482 | ||||||||
5,898,116 | ||||||||||
Integrated Oil & Gas — 0.9% | ||||||||||
Cenovus Energy Inc. | 53,209 | 1,434,555 | ||||||||
Cenovus Energy Inc. | 75,678 | 2,034,225 | ||||||||
China Petroleum & Chemical Corp., Class H | 291,725 | 255,147 | ||||||||
Lukoil OAO ADR | 3,425 | 174,332 | (††) | |||||||
Lukoil OAO ADR | 847 | 43,147 | (††) | |||||||
Total S.A. | 55,540 | 3,597,011 | ||||||||
7,538,417 | ||||||||||
Integrated Telecommunication Services — 0.1% | ||||||||||
BT Group PLC | 129,925 | 796,961 | ||||||||
Internet Retail — 0.3% | ||||||||||
Rakuten Inc. | 227,298 | 2,616,054 | ||||||||
Internet Software & Services — 0.8% | ||||||||||
Baidu Inc. ADR | 26,606 | 5,806,227 | (a) | |||||||
NAVER Corp. | 170 | 129,859 | ||||||||
SouFun Holdings Ltd. ADR | 3,058 | 30,427 | ||||||||
Tencent Holdings Ltd. | 25,155 | 373,683 | ||||||||
Yandex N.V. | 940 | 26,127 | (a) | |||||||
6,366,323 | ||||||||||
IT Consulting & Other Services — 0.0%* | ||||||||||
HCL Technologies Ltd. | 7,906 | 219,487 | ||||||||
Life & Health Insurance — 0.8% | ||||||||||
AIA Group Ltd. | 816,320 | 4,212,682 | ||||||||
Prudential PLC | 120,063 | 2,669,161 | ||||||||
6,881,843 | ||||||||||
Multi-Line Insurance — 0.3% | ||||||||||
AXA S.A. | 95,798 | 2,360,122 | ||||||||
BB Seguridade Participacoes S.A. | 7,792 | 102,426 | ||||||||
2,462,548 |
Number of Shares | Fair Value | |||||||||
Oil & Gas Equipment & Services — 0.4% | ||||||||||
Anton Oilfield Services Group | 153,956 | $ | 45,407 | |||||||
Subsea 7 S.A. | 10,586 | 151,223 | ||||||||
Technip S.A. | 33,605 | 2,819,433 | ||||||||
Weatherford International PLC | 13,277 | 276,161 | (a) | |||||||
3,292,224 | ||||||||||
Oil & Gas Exploration & Production — 0.2% | ||||||||||
Afren PLC | 123,974 | 208,096 | (a) | |||||||
Peyto Exploration & Development Corp. | 34,768 | 1,099,459 | ||||||||
1,307,555 | ||||||||||
Other Diversified Financial Services — 0.4% | ||||||||||
ING Groep N.V. | 235,182 | 3,343,456 | (a) | |||||||
Packaged Foods & Meats — 0.2% | ||||||||||
China Mengniu Dairy Company Ltd. | 27,802 | 114,047 | ||||||||
Nestle S.A. | 24,700 | 1,813,707 | ||||||||
1,927,754 | ||||||||||
Personal Products — 0.0%* | ||||||||||
Hengan International Group Company Ltd. | 5,457 | 53,613 | ||||||||
Pharmaceuticals — 2.0% | ||||||||||
Aspen Pharmacare Holdings Ltd. | 5,260 | 156,399 | ||||||||
Astellas Pharma Inc. | 80,500 | 1,198,714 | ||||||||
Bayer AG | 21,795 | 3,032,998 | ||||||||
CSPC Pharmaceutical Group Ltd. | 92,095 | 76,606 | ||||||||
GlaxoSmithKline PLC | 100,417 | 2,293,939 | ||||||||
GlaxoSmithKline PLC ADR | 11,949 | 549,296 | ||||||||
Roche Holding AG | 15,545 | 4,586,641 | ||||||||
Sanofi | 32,187 | 3,639,979 | ||||||||
Valeant Pharmaceuticals International Inc. | 8,118 | 1,066,007 | (a) | |||||||
16,600,579 | ||||||||||
Property & Casualty Insurance — 0.4% | ||||||||||
Tokio Marine Holdings Inc. | 108,500 | 3,365,878 | ||||||||
Railroads — 0.2% | ||||||||||
East Japan Railway Co. | 23,300 | 1,744,914 | ||||||||
Research & Consulting Services — 0.1% | ||||||||||
Experian PLC | 70,461 | 1,119,654 | ||||||||
Residential REITs — 0.0%* | ||||||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi AS | 58,005 | 60,619 |
See Notes to Schedules of Investments and Notes to Financial Statements.
58
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Number of Shares | Fair Value | |||||||||
Semiconductor Equipment — 0.3% | ||||||||||
ASML Holding N.V. | 24,718 | $ | 2,448,670 | |||||||
Semiconductors — 0.6% | ||||||||||
MediaTek Inc. | 10,000 | 148,097 | ||||||||
Samsung Electronics Company Ltd. | 1,769 | 1,981,293 | ||||||||
Taiwan Semiconductor Manufacturing Company Ltd. | 721,876 | 2,873,880 | ||||||||
5,003,270 | ||||||||||
Specialty Chemicals — 0.2% | ||||||||||
Givaudan S.A. | 665 | 1,059,122 | ||||||||
Johnson Matthey PLC | 18,740 | 883,718 | ||||||||
1,942,840 | ||||||||||
Thrifts & Mortgage Finance — 0.0%* | ||||||||||
Housing Development Finance Corp. | 16,181 | 275,327 | ||||||||
Tires & Rubber — 0.0%* | ||||||||||
Hankook Tire Company Ltd. | 2,136 | 104,078 | ||||||||
Tobacco — 0.0%* | ||||||||||
ITC Ltd. | 22,136 | 132,699 | ||||||||
Trading Companies & Distributors — 0.0%* | ||||||||||
Mills Estruturas e Servicos de Engenharia S.A. | 6,762 | 49,412 | ||||||||
Wireless Telecommunication Services — 0.7% | ||||||||||
China Mobile Ltd. | 7,290 | 85,213 | ||||||||
MTN Group Ltd. | 9,648 | 203,131 | ||||||||
SoftBank Corp. | 55,100 | 3,847,971 | ||||||||
Vodafone Group PLC | 506,853 | 1,670,194 | ||||||||
5,806,509 | ||||||||||
Total Common Stock | 180,465,605 | |||||||||
Preferred Stock — 0.4% | ||||||||||
Automobile Manufacturers — 0.4% | ||||||||||
Volkswagen AG | 15,176 | 3,134,460 | ||||||||
Diversified Banks — 0.0%* | ||||||||||
Itau Unibanco Holding S.A. | 15,337 | 212,061 | ||||||||
Integrated Oil & Gas — 0.0%* | ||||||||||
Petroleo Brasileiro S.A. | 15,844 | 117,006 | ||||||||
Steel — 0.0%* | ||||||||||
Vale S.A. | 11,846 | 114,998 | ||||||||
Total Preferred Stock | 3,578,525 | |||||||||
Total Foreign Equity | 184,044,130 |
Principal Amount | Fair Value | |||||||||||
Bonds and Notes — 29.8% | ||||||||||||
U.S. Treasuries — 8.7% | ||||||||||||
U.S. Treasury Bonds | ||||||||||||
3.38% | 05/15/44 | $ | 2,818,600 | $ | 2,910,205 | (h) | ||||||
4.50% | 02/15/36 | 8,532,700 | 10,531,220 | (h) | ||||||||
4.50% | 05/15/38 | 1,414,900 | 1,749,391 | |||||||||
U.S. Treasury Notes | ||||||||||||
0.50% | 06/30/16 - 08/31/16 | 26,562,200 | 26,565,072 | (h) | ||||||||
0.75% | 01/15/17 | 4,069,500 | 4,066,957 | (h) | ||||||||
1.00% | 09/30/16 - 09/15/17 | 10,786,000 | 10,858,748 | |||||||||
1.63% | 06/30/19 | 12,205,600 | 12,140,764 | (h) | ||||||||
2.50% | 05/15/24 | 3,583,400 | 3,585,640 | (h) | ||||||||
72,407,997 | ||||||||||||
Agency Mortgage Backed — 8.4% | ||||||||||||
Federal Home Loan Mortgage Corp. | ||||||||||||
4.00% | 05/01/44 | 3,332,139 | 3,522,369 | (h) | ||||||||
4.50% | 06/01/33 - 02/01/35 | 8,139 | 8,812 | |||||||||
5.00% | 07/01/35 | 40,383 | 45,113 | |||||||||
5.00% | 06/01/41 | 814,533 | 909,121 | (h) | ||||||||
5.50% | 05/01/20 - 04/01/39 | 204,384 | 228,845 | |||||||||
6.00% | 04/01/17 - 11/01/37 | 265,297 | 303,954 | |||||||||
6.50% | 06/01/29 | 962 | 1,088 | |||||||||
7.00% | 10/01/16 - 08/01/36 | 33,192 | 37,868 | |||||||||
7.00% | 08/01/23 | 129,307 | 138,286 | (h) | ||||||||
7.50% | 09/01/33 | 457 | 494 | |||||||||
8.00% | 04/01/30 - 11/01/30 | 1,157 | 1,319 | |||||||||
9.00% | 04/01/16 - 06/01/21 | 257 | 273 | |||||||||
5.50% | TBA | 305,000 | 338,836 | (c) | ||||||||
Federal National Mortgage Assoc. |
| |||||||||||
2.10% | 04/01/37 | 747 | 750 | (i) | ||||||||
3.00% | 02/01/43 - 06/01/43 | 13,082,391 | 12,933,823 | (h) | ||||||||
3.50% | 11/01/42 - 02/01/43 | 3,472,153 | 3,563,220 | (h) | ||||||||
4.00% | 05/01/19 - 12/01/41 | 397,838 | 419,890 | |||||||||
4.00% | 01/01/41 - 03/01/44 | 5,910,200 | 6,246,964 | (h) | ||||||||
4.50% | 05/01/18 - 11/01/40 | 4,774,785 | 5,163,217 | |||||||||
4.50% | 10/01/39 - 04/01/41 | 4,295,068 | 4,644,334 | (h) | ||||||||
5.00% | 07/01/20 - 04/01/39 | 150,473 | 166,973 | |||||||||
5.00% | 06/01/41 | 1,202,875 | 1,345,048 | (h) | ||||||||
5.50% | 06/01/20 - 01/01/39 | 436,962 | 487,091 | |||||||||
5.50% | 11/01/35 - 08/01/37 | 1,081,937 | �� | 1,211,356 | (h) | |||||||
6.00% | 02/01/20 - 08/01/35 | 392,999 | 449,271 | |||||||||
6.00% | 03/01/34 | 432,320 | 492,599 | (h) | ||||||||
6.50% | 02/01/16 - 08/01/34 | 34,548 | 37,635 | |||||||||
6.50% | 11/01/31 | 122,838 | 139,712 | (h) | ||||||||
7.00% | 10/01/16 - 12/01/33 | 1,934 | 2,039 | |||||||||
7.00% | 10/01/22 | 19,654 | 19,869 | (h) | ||||||||
7.50% | 05/01/15 - 12/01/33 | 5,463 | 6,038 | |||||||||
8.00% | 12/01/15 - 01/01/33 | 1,061 | 1,221 | |||||||||
9.00% | 12/01/17 - 12/01/22 | 1,111 | 1,216 | |||||||||
3.00% | TBA | 2,241,000 | 2,209,136 | (c) | ||||||||
3.50% | TBA | 5,845,000 | 5,974,229 | (c) | ||||||||
4.50% | TBA | 2,900,000 | 3,060,860 | (c) | ||||||||
5.00% | TBA | 2,848,000 | 3,134,059 | (c) | ||||||||
6.00% | TBA | 3,095,000 | 3,498,196 | (c) | ||||||||
6.50% | TBA | 568,000 | 644,591 |
See Notes to Schedules of Investments and Notes to Financial Statements.
59
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Government National Mortgage Assoc. |
| |||||||||||
3.00% | 06/20/43 | $ | 1,727,433 | $ | 1,742,249 | |||||||
3.50% | 05/20/43 | 2,201,275 | 2,279,231 | |||||||||
4.00% | 01/20/41 - 04/20/43 | 2,734,408 | 2,907,381 | |||||||||
4.50% | 08/15/33 - 03/20/41 | 1,435,949 | 1,564,991 | |||||||||
5.00% | 08/15/33 | 16,654 | 18,502 | |||||||||
6.00% | 06/15/33 - 09/15/36 | 66,328 | 76,475 | |||||||||
6.50% | 02/15/24 - 06/15/34 | 16,014 | 18,202 | |||||||||
7.00% | 04/15/28 - 10/15/36 | 12,442 | 13,845 | |||||||||
8.00% | 06/15/30 | 34 | 35 | |||||||||
8.50% | 10/15/17 | 3,330 | 3,567 | |||||||||
9.00% | 11/15/16 - 12/15/21 | 4,884 | 5,189 | |||||||||
5.00% | TBA | 75,000 | 82,496 | (c) | ||||||||
70,101,878 | ||||||||||||
Agency Collateralized Mortgage Obligations — 0.1% |
| |||||||||||
Collateralized Mortgage Obligation Trust |
| |||||||||||
0.01% | 11/01/18 | 125 | 125 | (d,f) | ||||||||
Federal Home Loan Mortgage Corp. |
| |||||||||||
0.08% | 09/25/43 | 99,165 | 291 | (g,i) | ||||||||
Federal Home Loan Mortgage Corp. REMIC |
| |||||||||||
3.50% | 11/15/24 - 11/15/30 | 886,406 | 90,486 | (g) | ||||||||
4.50% | 03/15/18 | 2,459 | 58 | (g) | ||||||||
5.00% | 10/15/18 - 02/15/38 | 20,404 | 859 | (g) | ||||||||
5.50% | 06/15/33 | 5,866 | 1,121 | (g) | ||||||||
5.95% | 07/15/39 | 1,072,107 | 162,886 | (g,i) | ||||||||
6.45% | 08/15/25 | 362,177 | 47,552 | (g,i) | ||||||||
7.50% | 07/15/27 | 2,031 | 371 | (g) | ||||||||
8.00% | 04/15/20 | 44 | 47 | |||||||||
Federal Home Loan Mortgage Corp. STRIPS |
| |||||||||||
1.47% | 08/01/27 | 182 | 169 | (d,f) | ||||||||
8.00% | 02/01/23 - 07/01/24 | 723 | 163 | (g) | ||||||||
Federal National Mortgage Assoc. REMIC |
| |||||||||||
0.51% | 12/25/22 | 250 | 244 | (d,f) | ||||||||
1.24% | 12/25/42 | 40,205 | 1,669 | (g,i) | ||||||||
5.00% | 02/25/40 - 09/25/40 | 546,013 | 64,395 | (g) | ||||||||
5.85% | 07/25/38 | 93,681 | 12,796 | (g,h,i) | ||||||||
Federal National Mortgage Assoc. STRIPS |
| |||||||||||
4.50% | 08/25/35 - 01/25/36 | 92,859 | 14,633 | (g) | ||||||||
5.00% | 03/25/38 - 05/25/38 | 55,947 | 9,287 | (g) | ||||||||
5.50% | 12/25/33 | 10,199 | 2,009 | (g) | ||||||||
6.00% | 01/25/35 | 47,528 | 9,725 | (g) | ||||||||
7.50% | 11/25/23 | 4,763 | 863 | (g) | ||||||||
8.00% | 08/25/23 - 07/25/24 | 1,492 | 304 | (g) | ||||||||
8.50% | 03/25/17 - 07/25/22 | 376 | 52 | (g) | ||||||||
9.00% | 05/25/22 | 230 | 47 | (g) | ||||||||
Government National Mortgage Assoc. |
| |||||||||||
4.50% | 10/20/37 - 08/16/39 | 927,814 | 97,238 | (g) | ||||||||
5.00% | 12/20/35 - 09/20/38 | 456,760 | 37,716 | (g) | ||||||||
6.10% | 02/20/40 | 1,677,923 | 295,429 | (g,i) | ||||||||
850,535 | ||||||||||||
Asset Backed — 0.0%* |
| |||||||||||
Ford Credit Auto Lease Trust 2013-A |
| |||||||||||
1.28% | 06/15/16 | 100,000 | 100,259 | |||||||||
Corporate Notes — 10.6% |
| |||||||||||
21st Century Fox America Inc. | ||||||||||||
6.65% | 11/15/37 | 160,000 | 200,557 |
Principal Amount | Fair Value | |||||||||||
ABB Finance USA Inc. |
| |||||||||||
1.63% | 05/08/17 | $ | 266,000 | $ | 267,528 | |||||||
AbbVie Inc. | ||||||||||||
1.75% | 11/06/17 | 234,000 | 233,202 | |||||||||
2.00% | 11/06/18 | 211,000 | 207,745 | |||||||||
ACCO Brands Corp. |
| |||||||||||
6.75% | 04/30/20 | 69,000 | 71,415 | |||||||||
Actavis Funding SCS |
| |||||||||||
1.30% | 06/15/17 | 399,000 | 391,549 | (b) | ||||||||
4.85% | 06/15/44 | 166,000 | 155,956 | (b) | ||||||||
Agrium Inc. |
| |||||||||||
4.90% | 06/01/43 | 241,000 | 244,559 | |||||||||
Alcoa Inc. |
| |||||||||||
5.13% | 10/01/24 | 65,000 | 65,084 | |||||||||
Altria Group Inc. |
| |||||||||||
2.95% | 05/02/23 | 141,000 | 134,406 | |||||||||
4.50% | 05/02/43 | 141,000 | 133,112 | |||||||||
American Axle & Manufacturing Inc. |
| |||||||||||
6.25% | 03/15/21 | 187,000 | 194,480 | |||||||||
7.75% | 11/15/19 | 55,000 | 61,600 | |||||||||
American Campus Communities Operating Partnership LP |
| |||||||||||
4.13% | 07/01/24 | 249,000 | 249,717 | |||||||||
American Seafoods Group LLC |
| |||||||||||
10.75% | 05/15/16 | 650,000 | 632,125 | (b) | ||||||||
American Tower Trust Corp. (REIT) |
| |||||||||||
3.40% | 02/15/19 | 515,000 | 526,160 | |||||||||
3.50% | 01/31/23 | 80,000 | 76,054 | |||||||||
Amgen Inc. |
| |||||||||||
2.20% | 05/22/19 | 499,000 | 493,711 | |||||||||
Anadarko Petroleum Corp. |
| |||||||||||
6.20% | 03/15/40 | 271,000 | 331,467 | |||||||||
Anheuser-Busch InBev Worldwide Inc. |
| |||||||||||
2.50% | 07/15/22 | 503,000 | 475,306 | |||||||||
ANZ New Zealand International Ltd. |
| |||||||||||
2.60% | 09/23/19 | 300,000 | 300,724 | (b) | ||||||||
AP Moeller - Maersk A/S |
| |||||||||||
2.55% | 09/22/19 | 235,000 | 235,568 | (b) | ||||||||
3.75% | 09/22/24 | 235,000 | 235,623 | (b) | ||||||||
Apple Inc. |
| |||||||||||
2.85% | 05/06/21 | 524,000 | 525,028 | |||||||||
3.45% | 05/06/24 | 500,000 | 504,972 | |||||||||
Aramark Services Inc. |
| |||||||||||
5.75% | 03/15/20 | 482,000 | 494,050 | |||||||||
Archer-Daniels-Midland Co. |
| |||||||||||
4.02% | 04/16/43 | 151,000 | 143,887 | |||||||||
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc. |
| |||||||||||
3.23% | 12/15/19 | 200,000 | 193,500 | (b,i) | ||||||||
Arizona Public Service Co. |
| |||||||||||
6.25% | 08/01/16 | 33,000 | 36,163 | |||||||||
Ascension Health |
| |||||||||||
4.85% | 11/15/53 | 235,000 | 261,308 | |||||||||
AT&T Inc. |
| |||||||||||
2.38% | 11/27/18 | 488,000 | 492,565 | |||||||||
4.35% | 06/15/45 | 215,000 | 197,618 | |||||||||
4.80% | 06/15/44 | 200,000 | 197,052 |
See Notes to Schedules of Investments and Notes to Financial Statements.
60
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
AXIS Specialty Finance PLC |
| |||||||||||
5.15% | 04/01/45 | $ | 189,000 | $ | 196,312 | |||||||
Bank of America Corp. |
| |||||||||||
1.70% | 08/25/17 | 172,000 | 171,257 | |||||||||
2.00% | 01/11/18 | 699,000 | 695,960 | |||||||||
2.60% | 01/15/19 | 293,000 | 292,429 | |||||||||
4.00% | 04/01/24 | 524,000 | 529,461 | |||||||||
4.10% | 07/24/23 | 163,000 | 166,406 | |||||||||
Barclays Bank PLC |
| |||||||||||
2.25% | 05/10/17 | 815,000 | 835,000 | (b) | ||||||||
Bed Bath & Beyond Inc. |
| |||||||||||
3.75% | 08/01/24 | 169,000 | 167,566 | |||||||||
4.92% | 08/01/34 | 51,000 | 50,745 | |||||||||
5.17% | 08/01/44 | 234,000 | 229,123 | |||||||||
Berkshire Hathaway Energy Co. |
| |||||||||||
6.13% | 04/01/36 | 789,000 | 976,421 | |||||||||
Berkshire Hathaway Finance Corp. |
| |||||||||||
2.90% | 10/15/20 | 418,000 | 424,890 | |||||||||
3.00% | 05/15/22 | 236,000 | 235,473 | |||||||||
BHP Billiton Finance USA Ltd. |
| |||||||||||
5.00% | 09/30/43 | 174,000 | 190,882 | |||||||||
Bombardier Inc. |
| |||||||||||
4.75% | 04/15/19 | 208,000 | 207,480 | (b) | ||||||||
6.00% | 10/15/22 | 343,000 | 341,285 | (b) | ||||||||
7.75% | 03/15/20 | 212,000 | 231,122 | (b) | ||||||||
BP Capital Markets PLC |
| |||||||||||
1.38% | 05/10/18 | 291,000 | 285,780 | |||||||||
3.81% | 02/10/24 | 353,000 | 357,322 | |||||||||
Branch Banking & Trust Co. |
| |||||||||||
3.80% | 10/30/26 | 255,000 | 253,821 | |||||||||
Brocade Communications Systems Inc. |
| |||||||||||
4.63% | 01/15/23 | 687,000 | 659,520 | |||||||||
Calpine Corp. |
| |||||||||||
5.75% | 01/15/25 | 205,000 | 199,106 | |||||||||
5.88% | 01/15/24 | 255,000 | 263,925 | (b) | ||||||||
Caterpillar Inc. |
| |||||||||||
4.30% | 05/15/44 | 175,000 | 177,794 | |||||||||
Catholic Health Initiatives |
| |||||||||||
2.60% | 08/01/18 | 105,000 | 106,424 | |||||||||
4.35% | 11/01/42 | 82,000 | 80,031 | |||||||||
CBS Corp. |
| |||||||||||
3.70% | 08/15/24 | 266,000 | 262,683 | |||||||||
4.90% | 08/15/44 | 171,000 | 169,030 | |||||||||
CBS Outdoor Americas Capital LLC/ |
| |||||||||||
5.63% | 02/15/24 | 208,000 | 208,520 | (b) | ||||||||
Cequel Capital Corp. |
| |||||||||||
5.13% | 12/15/21 | 420,000 | 401,717 | (b) | ||||||||
CF Industries Inc. |
| |||||||||||
5.38% | 03/15/44 | 175,000 | 183,136 | |||||||||
Chesapeake Energy Corp. |
| |||||||||||
3.25% | 03/15/16 | 166,000 | 166,415 | |||||||||
Citigroup Inc. |
| |||||||||||
1.75% | 05/01/18 | 582,000 | 573,865 | |||||||||
5.50% | 09/13/25 | 506,000 | 551,039 |
Principal Amount | Fair Value | |||||||||||
CMS Energy Corp. |
| |||||||||||
4.88% | 03/01/44 | $ | 171,000 | $ | 178,133 | |||||||
CNA Financial Corp. |
| |||||||||||
5.88% | 08/15/20 | 206,000 | 234,924 | |||||||||
CNH Industrial Capital LLC |
| |||||||||||
3.38% | 07/15/19 | 146,000 | 137,605 | (b) | ||||||||
3.88% | 11/01/15 | 66,000 | 66,413 | |||||||||
CNOOC Nexen Finance 2014 ULC |
| |||||||||||
4.25% | 04/30/24 | 349,000 | 353,716 | |||||||||
Cogeco Cable Inc. |
| |||||||||||
4.88% | 05/01/20 | 270,000 | 267,975 | (b) | ||||||||
Comcast Corp. |
| |||||||||||
4.20% | 08/15/34 | 171,000 | 169,531 | |||||||||
4.75% | 03/01/44 | 171,000 | 180,401 | |||||||||
Commonwealth Bank of Australia |
| |||||||||||
0.75% | 01/15/16 | 354,000 | 354,276 | (b) | ||||||||
Constellation Brands Inc. |
| |||||||||||
7.25% | 09/01/16 | 269,000 | 294,555 | |||||||||
Continental Resources Inc. |
| |||||||||||
4.90% | 06/01/44 | 166,000 | 161,826 | |||||||||
Corp Andina de Fomento |
| |||||||||||
4.38% | 06/15/22 | 425,000 | 454,212 | |||||||||
Corporate Office Properties LP (REIT) |
| |||||||||||
3.60% | 05/15/23 | 347,000 | 331,877 | |||||||||
3.70% | 06/15/21 | 169,000 | 166,895 | |||||||||
COX Communications Inc. |
| |||||||||||
4.70% | 12/15/42 | 59,000 | 56,904 | (b) | ||||||||
Credit Suisse AG |
| |||||||||||
2.60% | 05/27/16 | 253,000 | 260,542 | (b) | ||||||||
Crown Americas LLC/Crown Americas Capital Corp. IV |
| |||||||||||
4.50% | 01/15/23 | 138,000 | 130,410 | |||||||||
CSX Corp. |
| |||||||||||
4.50% | 08/01/54 | 172,000 | 167,963 | |||||||||
CVS Health Corp. | ||||||||||||
2.25% | 08/12/19 | 514,000 | 508,778 | |||||||||
Daimler Finance North America LLC | ||||||||||||
2.38% | 08/01/18 | 778,000 | 787,494 | (b) | ||||||||
Denbury Resources Inc. | ||||||||||||
6.38% | 08/15/21 | 190,000 | 197,600 | |||||||||
Dexia Credit Local S.A. | ||||||||||||
2.25% | 01/30/19 | 715,000 | 721,348 | (b) | ||||||||
Diageo Capital PLC | ||||||||||||
1.13% | 04/29/18 | 282,000 | 275,491 | |||||||||
Diageo Investment Corp. | ||||||||||||
2.88% | 05/11/22 | 346,000 | 339,194 | |||||||||
DigitalGlobe Inc. | ||||||||||||
5.25% | 02/01/21 | 469,000 | 450,240 | (b) | ||||||||
DIRECTV Holdings LLC | ||||||||||||
4.45% | 04/01/24 | 262,000 | 272,861 | |||||||||
5.15% | 03/15/42 | 167,000 | 168,861 | |||||||||
Dollar General Corp. | ||||||||||||
1.88% | 04/15/18 | 335,000 | 322,642 | |||||||||
4.13% | 07/15/17 | 341,000 | 356,138 | |||||||||
Dominion Resources Inc. | ||||||||||||
1.95% | 08/15/16 | 668,000 | 679,047 |
See Notes to Schedules of Investments and Notes to Financial Statements.
61
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Duke Energy Corp. | ||||||||||||
1.63% | 08/15/17 | $ | 232,000 | $ | 232,915 | |||||||
3.75% | 04/15/24 | 245,000 | 251,170 | |||||||||
Eaton Corp. | ||||||||||||
2.75% | 11/02/22 | 490,000 | 472,440 | |||||||||
Ecopetrol S.A. | ||||||||||||
5.88% | 05/28/45 | 85,000 | 86,063 | |||||||||
El Paso Pipeline Partners Operating Company LLC | ||||||||||||
4.30% | 05/01/24 | 349,000 | 346,714 | |||||||||
Electricite de France S.A. | ||||||||||||
2.15% | 01/22/19 | 704,000 | 702,039 | (b) | ||||||||
Enbridge Inc. | ||||||||||||
4.50% | 06/10/44 | 166,000 | 161,633 | |||||||||
Endo Finance LLC & Endo Finco Inc. | ||||||||||||
5.38% | 01/15/23 | 110,000 | 105,050 | (b) | ||||||||
Energy Transfer Equity LP | ||||||||||||
5.88% | 01/15/24 | 347,000 | 351,337 | |||||||||
Energy Transfer Partners LP | ||||||||||||
6.50% | 02/01/42 | 217,000 | 247,091 | |||||||||
Ensco PLC | ||||||||||||
4.50% | 10/01/24 | 337,000 | 338,135 | |||||||||
5.75% | 10/01/44 | 170,000 | 172,338 | |||||||||
ERP Operating LP | ||||||||||||
4.50% | 07/01/44 | 199,000 | 195,962 | |||||||||
European Investment Bank | ||||||||||||
4.88% | 01/17/17 | 535,000 | 583,307 | |||||||||
Everest Reinsurance Holdings Inc. | ||||||||||||
4.87% | 06/01/44 | 82,000 | 81,534 | |||||||||
Exelon Corp. | ||||||||||||
4.90% | 06/15/15 | 334,000 | 343,751 | |||||||||
Express Scripts Holding Co. | ||||||||||||
2.25% | 06/15/19 | 665,000 | 655,683 | |||||||||
Five Corners Funding Trust | ||||||||||||
4.42% | 11/15/23 | 373,000 | 390,408 | (b) | ||||||||
Florida Power & Light Co. | ||||||||||||
4.13% | 02/01/42 | 131,000 | 131,655 | |||||||||
Ford Motor Credit Company LLC | ||||||||||||
5.88% | 08/02/21 | 261,000 | 300,104 | |||||||||
Forest Laboratories Inc. | ||||||||||||
5.00% | 12/15/21 | 343,000 | 366,628 | (b) | ||||||||
Freeport-McMoRan Inc. | ||||||||||||
5.45% | 03/15/43 | 119,000 | 121,336 | |||||||||
Fresenius Medical Care US Finance Inc. | ||||||||||||
5.75% | 02/15/21 | 100,000 | 105,500 | (b) | ||||||||
Frontier Communications Corp. | ||||||||||||
7.13% | 03/15/19 | 219,000 | 236,520 | |||||||||
General Motors Co. | ||||||||||||
4.88% | 10/02/23 | 131,000 | 138,533 | |||||||||
General Motors Financial Company Inc. | ||||||||||||
2.63% | 07/10/17 | 137,000 | 137,622 | |||||||||
3.00% | 09/25/17 | 220,000 | 222,200 | |||||||||
3.50% | 07/10/19 | 137,000 | 138,027 | |||||||||
4.38% | 09/25/21 | 366,000 | 374,235 |
Principal Amount | Fair Value | |||||||||||
Gilead Sciences Inc. | ||||||||||||
4.80% | 04/01/44 | $ | 262,000 | $ | 275,352 | |||||||
Glencore Funding LLC | ||||||||||||
2.50% | 01/15/19 | 182,000 | 178,163 | (b) | ||||||||
4.13% | 05/30/23 | 421,000 | 416,667 | (b) | ||||||||
4.63% | 04/29/24 | 405,000 | 408,199 | (b) | ||||||||
Grupo Televisa SAB | ||||||||||||
5.00% | 05/13/45 | 200,000 | 197,578 | |||||||||
HCA Inc. | ||||||||||||
4.75% | 05/01/23 | 576,000 | 563,040 | |||||||||
6.50% | 02/15/20 | 444,000 | 485,070 | |||||||||
Hewlett-Packard Co. | ||||||||||||
2.75% | 01/14/19 | 707,000 | 718,066 | |||||||||
Hexion US Finance Corp. | ||||||||||||
6.63% | 04/15/20 | 195,000 | 195,975 | |||||||||
Hughes Satellite Systems Corp. | ||||||||||||
6.50% | 06/15/19 | 144,000 | 153,000 | |||||||||
Humana Inc. | ||||||||||||
3.85% | 10/01/24 | 335,000 | 334,777 | |||||||||
Huntsman International LLC | ||||||||||||
4.88% | 11/15/20 | 275,000 | 270,875 | |||||||||
Hyundai Capital America | ||||||||||||
2.13% | 10/02/17 | 118,000 | 119,429 | (b) | ||||||||
Illinois Tool Works Inc. | ||||||||||||
3.50% | 03/01/24 | 343,000 | 348,584 | |||||||||
Ingles Markets Inc. | ||||||||||||
5.75% | 06/15/23 | 227,000 | 228,135 | |||||||||
Intelsat Jackson Holdings S.A. | ||||||||||||
5.50% | 08/01/23 | 347,000 | 331,385 | |||||||||
International Business Machines Corp. | ||||||||||||
3.63% | 02/12/24 | 361,000 | 368,390 | |||||||||
Intesa Sanpaolo S.p.A. | ||||||||||||
5.02% | 06/26/24 | 66,000 | 64,306 | (b) | ||||||||
Invesco Finance PLC | ||||||||||||
3.13% | 11/30/22 | 391,000 | 385,915 | |||||||||
Iron Mountain Inc. | ||||||||||||
6.00% | 08/15/23 | 346,000 | 354,650 | |||||||||
JB Poindexter & Company Inc. | ||||||||||||
9.00% | 04/01/22 | 83,000 | 89,121 | (b) | ||||||||
JBS USA LLC/JBS USA Finance Inc. | ||||||||||||
5.88% | 07/15/24 | 190,000 | 182,400 | (b) | ||||||||
Jefferies Group Inc. | ||||||||||||
5.13% | 01/20/23 | 283,000 | 300,800 | |||||||||
6.50% | 01/20/43 | 90,000 | 99,448 | |||||||||
John Deere Capital Corp. | ||||||||||||
3.35% | 06/12/24 | 333,000 | 335,248 | |||||||||
Johnson Controls Inc. | ||||||||||||
4.63% | 07/02/44 | 166,000 | 162,072 | |||||||||
JPMorgan Chase & Co. | ||||||||||||
3.88% | 09/10/24 | 506,000 | 496,054 | |||||||||
5.00% | 12/29/49 | 244,000 | 237,851 | (i) | ||||||||
6.10% | 10/29/49 | 405,000 | 400,444 | (i) | ||||||||
KB Home | ||||||||||||
7.00% | 12/15/21 | 346,000 | 360,705 |
See Notes to Schedules of Investments and Notes to Financial Statements.
62
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Kerr-McGee Corp. | ||||||||||||
6.95% | 07/01/24 | $ | 107,000 | $ | 134,647 | |||||||
KFW | ||||||||||||
4.50% | 07/16/18 | 446,000 | 494,221 | |||||||||
Kilroy Realty LP | ||||||||||||
4.25% | 08/15/29 | 172,000 | 169,976 | |||||||||
Kinder Morgan Energy Partners LP | ||||||||||||
3.50% | 09/01/23 | 244,000 | 231,706 | |||||||||
5.50% | 03/01/44 | 175,000 | 175,390 | |||||||||
Kinder Morgan Inc. | ||||||||||||
5.63% | 11/15/23 | 401,000 | 426,062 | (b) | ||||||||
Kinross Gold Corp. | ||||||||||||
5.95% | 03/15/24 | 171,000 | 173,937 | (b) | ||||||||
6.88% | 09/01/41 | 43,000 | 43,900 | |||||||||
Korea National Oil Corp. | ||||||||||||
2.88% | 11/09/15 | 289,000 | 294,688 | (b) | ||||||||
L Brands Inc. | ||||||||||||
5.63% | 02/15/22 | 346,000 | 360,705 | |||||||||
L-3 Communications Corp. | ||||||||||||
1.50% | 05/28/17 | 236,000 | 234,271 | |||||||||
3.95% | 05/28/24 | 125,000 | 124,026 | |||||||||
Lamar Media Corp. | ||||||||||||
5.00% | 05/01/23 | 346,000 | 333,025 | |||||||||
Land O’ Lakes Inc. | ||||||||||||
6.00% | 11/15/22 | 97,000 | 103,664 | (b) | ||||||||
Liberty Mutual Group Inc. | ||||||||||||
4.25% | 06/15/23 | 314,000 | 320,915 | (b) | ||||||||
Linn Energy LLC | ||||||||||||
6.25% | 11/01/19 | 71,000 | 69,314 | |||||||||
Macquarie Bank Ltd. | ||||||||||||
2.60% | 06/24/19 | 665,000 | 664,461 | (b) | ||||||||
Marathon Petroleum Corp. | ||||||||||||
3.63% | 09/15/24 | 340,000 | 332,812 | |||||||||
4.75% | 09/15/44 | 264,000 | 253,430 | |||||||||
Marsh & McLennan Companies Inc. | ||||||||||||
3.50% | 03/10/25 | 335,000 | 329,443 | |||||||||
Mattel Inc. | ||||||||||||
2.35% | 05/06/19 | 524,000 | 521,215 | |||||||||
MEG Energy Corp. | ||||||||||||
6.50% | 03/15/21 | 208,000 | 213,200 | (b) | ||||||||
Memorial Sloan-Kettering Cancer Center | ||||||||||||
4.13% | 07/01/52 | 105,000 | 101,500 | |||||||||
Metlife Inc. | ||||||||||||
4.72% | 12/15/44 | 135,000 | 136,267 | |||||||||
Mizuho Bank Ltd. | ||||||||||||
2.45% | 04/16/19 | 420,000 | 419,069 | (b) | ||||||||
Monsanto Co. | ||||||||||||
3.38% | 07/15/24 | 165,000 | 164,138 | |||||||||
4.70% | 07/15/64 | 98,000 | 97,539 | |||||||||
Morgan Stanley | ||||||||||||
2.13% | 04/25/18 | 502,000 | 501,947 | |||||||||
2.38% | 07/23/19 | 516,000 | 507,841 | |||||||||
4.10% | 05/22/23 | 403,000 | 401,887 | |||||||||
4.35% | 09/08/26 | 265,000 | 260,447 | |||||||||
4.75% | 03/22/17 | 172,000 | 184,833 |
Principal Amount | Fair Value | |||||||||||
4.88% | 11/01/22 | $ | 256,000 | $ | 270,459 | |||||||
5.00% | 11/24/25 | 217,000 | 226,941 | |||||||||
Motorola Solutions Inc. | ||||||||||||
4.00% | 09/01/24 | 343,000 | 334,808 | |||||||||
Mylan Inc. | ||||||||||||
5.40% | 11/29/43 | 163,000 | 172,754 | |||||||||
7.88% | 07/15/20 | 71,000 | 77,446 | (b) | ||||||||
National Agricultural Cooperative Federation | ||||||||||||
4.25% | 01/28/16 | 135,000 | 140,080 | (b) | ||||||||
National Retail Properties Inc. | ||||||||||||
3.90% | 06/15/24 | 279,000 | 279,695 | |||||||||
NCL Corporation Ltd. | ||||||||||||
5.00% | 02/15/18 | 150,000 | 151,500 | |||||||||
Newfield Exploration Co. | ||||||||||||
5.63% | 07/01/24 | 301,000 | 322,070 | |||||||||
5.75% | 01/30/22 | 279,000 | 299,227 | |||||||||
Newmont Mining Corp. | ||||||||||||
4.88% | 03/15/42 | 131,000 | 110,444 | |||||||||
Nexen Energy ULC | ||||||||||||
6.40% | 05/15/37 | 144,000 | 175,477 | |||||||||
NextEra Energy Capital Holdings Inc. |
| |||||||||||
2.60% | 09/01/15 | 456,000 | 464,094 | |||||||||
Northeast Utilities | ||||||||||||
1.45% | 05/01/18 | 292,000 | 287,353 | |||||||||
Omnicom Group Inc. | ||||||||||||
3.63% | 05/01/22 | 105,000 | 106,545 | |||||||||
Oracle Corp. | ||||||||||||
2.25% | 10/08/19 | 674,000 | 671,213 | |||||||||
3.63% | 07/15/23 | 224,000 | 229,886 | |||||||||
4.50% | 07/08/44 | 166,000 | 168,045 | |||||||||
Owens & Minor Inc. | ||||||||||||
3.88% | 09/15/21 | 335,000 | 335,413 | |||||||||
Pacific Gas & Electric Co. | ||||||||||||
3.40% | 08/15/24 | 506,000 | 502,306 | |||||||||
PacifiCorp | ||||||||||||
6.25% | 10/15/37 | 3,000 | 3,895 | |||||||||
People’s United Bank | ||||||||||||
4.00% | 07/15/24 | 391,000 | 388,226 | |||||||||
Perrigo Company PLC | ||||||||||||
2.30% | 11/08/18 | 346,000 | 343,691 | (b) | ||||||||
Petrobras International Finance Co. | ||||||||||||
3.50% | 02/06/17 | 257,000 | 261,467 | |||||||||
3.88% | 01/27/16 | 103,000 | 105,421 | |||||||||
Petroleos Mexicanos | ||||||||||||
3.50% | 01/30/23 | 147,000 | 140,826 | |||||||||
Philip Morris International Inc. | ||||||||||||
4.13% | 03/04/43 | 140,000 | 132,177 | |||||||||
Pitney Bowes Inc. | ||||||||||||
4.63% | 03/15/24 | 329,000 | 333,493 | |||||||||
Plains Exploration & Production Co. | ||||||||||||
6.50% | 11/15/20 | 83,000 | 90,895 | |||||||||
PNC Bank | ||||||||||||
2.40% | 10/18/19 | 685,000 | 680,864 | |||||||||
Prudential Financial Inc. | ||||||||||||
5.63% | 06/15/43 | 166,000 | 173,005 | (i) |
See Notes to Schedules of Investments and Notes to Financial Statements.
63
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Range Resources Corp. | ||||||||||||
5.75% | 06/01/21 | $ | 153,000 | $ | 160,650 | |||||||
Regency Energy Partners LP/ Regency Energy Finance Corp. | ||||||||||||
5.00% | 10/01/22 | 178,000 | 175,330 | |||||||||
Revlon Consumer Products Corp. | ||||||||||||
5.75% | 02/15/21 | 463,000 | 453,740 | |||||||||
Roche Holdings Inc. | ||||||||||||
2.25% | 09/30/19 | 69,000 | 68,716 | (b) | ||||||||
2.88% | 09/29/21 | 365,000 | 364,477 | (b) | ||||||||
3.35% | 09/30/24 | 365,000 | 365,678 | (b) | ||||||||
Rowan Companies Inc. | ||||||||||||
4.75% | 01/15/24 | 246,000 | 247,291 | |||||||||
5.85% | 01/15/44 | 70,000 | 68,892 | |||||||||
Royal Bank of Canada | ||||||||||||
1.20% | 09/19/18 | 773,000 | 768,891 | |||||||||
RSI Home Products Inc. | ||||||||||||
6.88% | 03/01/18 | 267,000 | 278,347 | (b) | ||||||||
Ryder System Inc. | ||||||||||||
2.45% | 09/03/19 | 419,000 | 416,651 | |||||||||
Sabine Pass Liquefaction LLC | ||||||||||||
5.63% | 02/01/21 | 885,000 | 909,337 | |||||||||
Schaeffler Holding Finance BV | ||||||||||||
6.88% | 08/15/18 | 260,000 | 270,400 | (b,o) | ||||||||
Seagate HDD Cayman | ||||||||||||
4.75% | 01/01/25 | 256,000 | 254,720 | (b) | ||||||||
Shell International Finance BV | ||||||||||||
3.40% | 08/12/23 | 500,000 | 508,119 | |||||||||
Smurfit Kappa Acquisitions | ||||||||||||
4.88% | 09/15/18 | 400,000 | 408,000 | (b) | ||||||||
Spectra Energy Partners LP | ||||||||||||
4.75% | 03/15/24 | 343,000 | 367,893 | |||||||||
Sprint Corp. | ||||||||||||
7.25% | 09/15/21 | 191,000 | 198,879 | (b) | ||||||||
Steel Dynamics Inc. | ||||||||||||
5.13% | 10/01/21 | 220,000 | 223,300 | (b) | ||||||||
Sysco Corp. | ||||||||||||
2.35% | 10/02/19 | 335,000 | 335,007 | (c) | ||||||||
3.50% | 10/02/24 | 235,000 | 235,645 | (c) | ||||||||
4.35% | 10/02/34 | 135,000 | 136,963 | (c) | ||||||||
T-Mobile USA Inc. | ||||||||||||
6.25% | 04/01/21 | 300,000 | 303,000 | |||||||||
Talisman Energy Inc. | ||||||||||||
6.25% | 02/01/38 | 119,000 | 132,754 | |||||||||
Tampa Electric Co. | ||||||||||||
4.35% | 05/15/44 | 169,000 | 173,853 | |||||||||
Target Corp. | ||||||||||||
3.50% | 07/01/24 | 382,000 | 382,367 | |||||||||
Teachers Insurance & Annuity Association of America | ||||||||||||
4.90% | 09/15/44 | 335,000 | 341,406 | (b) | ||||||||
Teck Resources Ltd. | ||||||||||||
3.75% | 02/01/23 | 323,000 | 304,001 | |||||||||
5.40% | 02/01/43 | 141,000 | 131,264 |
Principal Amount | Fair Value | |||||||||||
Telecom Italia S.p.A. | ||||||||||||
5.30% | 05/30/24 | $ | 400,000 | $ | 392,000 | (b) | ||||||
Tenet Healthcare Corp. | ||||||||||||
4.75% | 06/01/20 | 921,000 | 914,092 | |||||||||
6.00% | 10/01/20 | 347,000 | 366,952 | |||||||||
Textron Inc. | ||||||||||||
6.20% | 03/15/15 | 212,000 | 217,343 | |||||||||
The Allstate Corp. | ||||||||||||
5.75% | 08/15/53 | 186,000 | 198,090 | (i) | ||||||||
The Bank of Tokyo-Mitsubishi UFJ Ltd. | ||||||||||||
2.30% | 03/10/19 | 400,000 | 398,867 | (b) | ||||||||
2.35% | 09/08/19 | 515,000 | 510,679 | (b) | ||||||||
The Dow Chemical Co. | ||||||||||||
3.50% | 10/01/24 | 675,000 | 658,393 | |||||||||
4.25% | 10/01/34 | 340,000 | 327,372 | |||||||||
The Goldman Sachs Group Inc. | ||||||||||||
2.38% | 01/22/18 | 324,000 | 327,363 | |||||||||
2.63% | 01/31/19 | 528,000 | 526,642 | |||||||||
2.90% | 07/19/18 | 223,000 | 228,420 | |||||||||
4.00% | 03/03/24 | 411,000 | 413,951 | |||||||||
4.80% | 07/08/44 | 199,000 | 200,106 | |||||||||
The Korea Development Bank | ||||||||||||
3.25% | 03/09/16 | 348,000 | 358,412 | |||||||||
The Potomac Edison Co. | ||||||||||||
5.35% | 11/15/14 | 15,000 | 15,088 | |||||||||
The Southern Co. | ||||||||||||
2.45% | 09/01/18 | 413,000 | 420,087 | |||||||||
The Timken Co. | ||||||||||||
3.88% | 09/01/24 | 262,000 | 257,901 | (b) | ||||||||
The Williams Companies Inc. | ||||||||||||
4.55% | 06/24/24 | 108,000 | 106,841 | |||||||||
5.75% | 06/24/44 | 166,000 | 163,102 | |||||||||
8.75% | 03/15/32 | 134,000 | 170,045 | |||||||||
Time Inc. | ||||||||||||
5.75% | 04/15/22 | 224,000 | 214,480 | (b) | ||||||||
Time Warner Cable Inc. | ||||||||||||
5.88% | 11/15/40 | 221,000 | 260,032 | |||||||||
6.55% | 05/01/37 | 101,000 | 127,412 | |||||||||
Time Warner Inc. | ||||||||||||
5.35% | 12/15/43 | 306,000 | 329,530 | |||||||||
Tops Holding Corp. | ||||||||||||
8.88% | 12/15/17 | 150,000 | 156,375 | |||||||||
Tyco Electronics Group S.A. | ||||||||||||
2.35% | 08/01/19 | 344,000 | 343,248 | |||||||||
Tyson Foods Inc. | ||||||||||||
2.65% | 08/15/19 | 171,000 | 171,320 | |||||||||
3.95% | 08/15/24 | 114,000 | 114,200 | |||||||||
5.15% | 08/15/44 | 114,000 | 117,967 | |||||||||
U.S. Bancorp | ||||||||||||
3.44% | 02/01/16 | 411,000 | 424,591 | |||||||||
Ultra Petroleum Corp. | ||||||||||||
6.13% | 10/01/24 | 146,000 | 139,430 | (b) | ||||||||
Unit Corp. | ||||||||||||
6.63% | 05/15/21 | 259,000 | 259,647 |
See Notes to Schedules of Investments and Notes to Financial Statements.
64
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
United Rentals North America Inc. | ||||||||||||
5.75% | 07/15/18 | $ | 268,000 | $ | 279,390 | |||||||
6.13% | 06/15/23 | 139,000 | 142,823 | |||||||||
Vail Resorts Inc. | ||||||||||||
6.50% | 05/01/19 | 141,000 | 147,521 | |||||||||
Valeant Pharmaceuticals International Inc. | ||||||||||||
6.38% | 10/15/20 | 207,000 | 212,693 | (b) | ||||||||
6.75% | 08/15/18 | 252,000 | 265,860 | (b) | ||||||||
Verizon Communications Inc. | ||||||||||||
1.35% | 06/09/17 | 832,000 | 827,773 | |||||||||
5.05% | 03/15/34 | 105,000 | 111,249 | |||||||||
5.15% | 09/15/23 | 378,000 | 418,585 | |||||||||
6.55% | 09/15/43 | 193,000 | 241,133 | |||||||||
Viasystems Inc. | ||||||||||||
7.88% | 05/01/19 | 110,000 | 115,225 | (b) | ||||||||
Virgin Media Finance PLC | ||||||||||||
6.00% | 10/15/24 | 200,000 | 200,250 | (b,c) | ||||||||
Virgin Media Secured Finance PLC | ||||||||||||
5.25% | 01/15/21 | 200,000 | 201,000 | |||||||||
Volkswagen Group of America Finance LLC | ||||||||||||
2.13% | 05/23/19 | 845,000 | 838,079 | (b) | ||||||||
Wal-Mart Stores Inc. | ||||||||||||
3.30% | 04/22/24 | 279,000 | 282,180 | |||||||||
4.30% | 04/22/44 | 349,000 | 351,065 | |||||||||
Weatherford International Ltd. | ||||||||||||
5.95% | 04/15/42 | 229,000 | 245,972 | |||||||||
6.75% | 09/15/40 | 68,000 | 79,627 | |||||||||
WellPoint Inc. | ||||||||||||
3.30% | 01/15/23 | 353,000 | 349,006 | |||||||||
Wells Fargo & Co. | ||||||||||||
4.10% | 06/03/26 | 386,000 | 384,643 | |||||||||
5.90% | 12/29/49 | 226,000 | 230,238 | (i) | ||||||||
Windstream Corp. | ||||||||||||
6.38% | 08/01/23 | 259,000 | 249,935 | |||||||||
WPP Finance 2010 | ||||||||||||
3.75% | 09/19/24 | 335,000 | 330,397 | |||||||||
WPX Energy Inc. | ||||||||||||
5.25% | 01/15/17 | 266,000 | 276,640 | |||||||||
Xilinx Inc. | ||||||||||||
2.13% | 03/15/19 | 174,000 | 172,923 | |||||||||
XLIT Ltd. | ||||||||||||
5.25% | 12/15/43 | 163,000 | 179,243 | |||||||||
Yamana Gold Inc. | ||||||||||||
4.95% | 07/15/24 | 265,000 | 263,799 | (b) | ||||||||
88,878,202 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations — 1.6% |
| |||||||||||
American Tower Trust I (REIT) | ||||||||||||
1.55% | 03/15/43 | 420,000 | 413,130 | (b) | ||||||||
Banc of America Commercial Mortgage Trust 2006-4 | ||||||||||||
5.63% | 07/10/46 | 46,690 | 49,377 | |||||||||
Banc of America Commercial Mortgage Trust 2007-1 | ||||||||||||
5.48% | 01/15/49 | 600,000 | 630,526 | (i) |
Principal Amount | Fair Value | |||||||||||
Banc of America Commercial Mortgage Trust 2007-4 | ||||||||||||
5.95% | 02/10/51 | $ | 109,243 | $ | 119,966 | (i) | ||||||
Banc of America Commercial Mortgage Trust 2008-1 | ||||||||||||
6.43% | 02/10/51 | 640,000 | 714,739 | (i) | ||||||||
Banc of America Merrill Lynch Commercial Mortgage Inc. 2005-1 | ||||||||||||
5.47% | 11/10/42 | 260,000 | 263,613 | (i) | ||||||||
Banc of America Merrill Lynch Commercial Mortgage Inc. 2005-6 | ||||||||||||
5.35% | 09/10/47 | 238,591 | 245,644 | (i) | ||||||||
Banc of America Merrill Lynch Commercial Mortgage Trust 2014-520M | ||||||||||||
4.33% | 08/15/46 | 137,514 | 141,813 | (b,i) | ||||||||
Bear Stearns Commercial Mortgage Securities Trust 2005-T18 | ||||||||||||
4.93% | 02/13/42 | 201,935 | 202,947 | (i) | ||||||||
Bear Stearns Commercial Mortgage Securities Trust 2006-T22 | ||||||||||||
5.76% | 04/12/38 | 140,000 | 147,830 | (i) | ||||||||
Bear Stearns Commercial Mortgage Securities Trust 2007-PW18 | ||||||||||||
6.09% | 06/11/50 | 290,000 | 323,266 | (i) | ||||||||
Citigroup Commercial Mortgage Trust 2014-GC23 | ||||||||||||
4.66% | 07/10/47 | 346,000 | 310,034 | (b,i) | ||||||||
COMM 2005-LP5 Mortgage Trust | ||||||||||||
4.98% | 05/10/43 | 130,000 | 131,605 | (i) | ||||||||
COMM 2013-LC13 Mortgage Trust | ||||||||||||
4.56% | 08/10/46 | 140,000 | 149,669 | (b,i) | ||||||||
COMM 2014-CR14 Mortgage Trust | ||||||||||||
4.53% | 02/10/47 | 200,000 | 213,906 | (i) | ||||||||
COMM 2014-CR19 Mortgage Trust | ||||||||||||
4.88% | 08/10/47 | 170,000 | 153,372 | (b,i) | ||||||||
4.88% | 08/10/47 | 170,000 | 172,752 | (i) | ||||||||
Credit Suisse Commercial Mortgage Trust 2006-C1 | ||||||||||||
5.64% | 02/15/39 | 580,000 | 608,103 | (i) | ||||||||
Credit Suisse First Boston Mortgage Securities Corp. 2005-9 | ||||||||||||
5.22% | 10/25/35 | 11,521 | — | (**,i,p) | ||||||||
GS Mortgage Securities Corp. Trust 2012-ALOH | ||||||||||||
3.55% | 04/10/34 | 150,000 | 154,220 | (b) | ||||||||
GS Mortgage Securities Trust | ||||||||||||
3.00% | 08/10/44 | 240,000 | 247,522 | |||||||||
5.47% | 08/10/44 | 120,000 | 132,885 | (b,i) | ||||||||
GS Mortgage Securities Trust | ||||||||||||
4.26% | 04/10/47 | 175,000 | 183,664 | |||||||||
GS Mortgage Securities Trust | ||||||||||||
4.53% | 09/10/47 | 623,000 | 557,298 |
See Notes to Schedules of Investments and Notes to Financial Statements.
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Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
GS Mortgage Securities Trust 2014-NEW | ||||||||||||
3.79% | 01/10/31 | $ | 345,000 | $ | 341,611 | (b) | ||||||
JP Morgan Chase Commercial Mortgage Securities Corp. | ||||||||||||
2.08% | 12/15/47 | 1,095,416 | 105,725 | (g,i) | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust | ||||||||||||
5.04% | 03/15/46 | 65,067 | 65,223 | (i) | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust | ||||||||||||
5.44% | 05/15/45 | 70,000 | 74,994 | |||||||||
JP Morgan Chase Commercial Mortgage Securities Trust | ||||||||||||
5.44% | 06/12/47 | 280,400 | 302,037 | |||||||||
JPMBB Commercial Mortgage Securities Trust 2013-C12 | ||||||||||||
4.16% | 07/15/45 | 90,000 | 93,562 | (i) | ||||||||
JPMBB Commercial Mortgage Securities Trust 2013-C15 | ||||||||||||
5.25% | 11/15/45 | 140,000 | 148,932 | (i) | ||||||||
JPMBB Commercial Mortgage Securities Trust 2013-C17 | ||||||||||||
5.05% | 01/15/47 | 260,000 | 270,963 | (i) | ||||||||
JPMBB Commercial Mortgage Securities Trust 2014-C18 | ||||||||||||
4.97% | 02/15/47 | 180,000 | 186,190 | (i) | ||||||||
LB-UBS Commercial Mortgage Trust 2004-C8 | ||||||||||||
0.87% | 12/15/39 | 71,996 | 150 | (b,g,i) | ||||||||
LB-UBS Commercial Mortgage Trust 2005-C5 | ||||||||||||
4.95% | 09/15/30 | 88,334 | 89,827 | |||||||||
LB-UBS Commercial Mortgage Trust 2006-C1 | ||||||||||||
5.16% | 02/15/31 | 210,000 | 217,608 | |||||||||
LB-UBS Commercial Mortgage Trust 2006-C4 | ||||||||||||
6.03% | 06/15/38 | 115,872 | 123,306 | (i) | ||||||||
LB-UBS Commercial Mortgage Trust 2007-C6 | ||||||||||||
6.11% | 07/15/40 | 360,000 | 393,764 | (i) | ||||||||
6.11% | 07/15/40 | 430,000 | 470,469 | (b) | ||||||||
ML-CFC Commercial Mortgage Trust 2006-3 | ||||||||||||
5.46% | 07/12/46 | 350,000 | 374,724 | (i) | ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10 | ||||||||||||
4.22% | 07/15/46 | 326,000 | 321,900 | (i) | ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 | ||||||||||||
3.39% | 10/15/47 | 171,583 | 137,945 | (b) |
Principal Amount | Fair Value | |||||||||||
Morgan Stanley Capital I Trust | ||||||||||||
4.84% | 12/13/41 | $ | 410,000 | $ | 412,830 | (i) | ||||||
Morgan Stanley Capital I Trust | ||||||||||||
5.83% | 10/15/42 | 110,000 | 103,400 | |||||||||
Morgan Stanley Capital I Trust | ||||||||||||
5.16% | 10/12/52 | 80,000 | 82,844 | (i) | ||||||||
5.27% | 10/12/52 | 210,000 | 218,565 | (i) | ||||||||
Morgan Stanley Capital I Trust | ||||||||||||
5.98% | 08/12/41 | 415,000 | 442,480 | (i) | ||||||||
Morgan Stanley Capital I Trust | ||||||||||||
6.29% | 12/12/49 | 290,000 | 320,476 | (i) | ||||||||
Morgan Stanley Capital I Trust | ||||||||||||
6.45% | 01/11/43 | 110,000 | 123,371 | (i) | ||||||||
Morgan Stanley Capital I Trust | ||||||||||||
5.21% | 03/15/45 | 120,000 | 131,572 | (b,i) | ||||||||
Wells Fargo Mortgage Backed Securities Trust 2006-3 | ||||||||||||
5.50% | 03/25/36 | 39,165 | 1,222 | |||||||||
WFRBS Commercial Mortgage Trust 2013-C17 | ||||||||||||
4.26% | 12/15/46 | 190,000 | 199,281 | |||||||||
5.30% | 12/15/46 | 140,000 | 138,211 | (b,i) | ||||||||
WFRBS Commercial Mortgage Trust 2014-C19 | ||||||||||||
4.72% | 03/15/47 | 240,000 | 253,201 | (i) | ||||||||
WFRBS Commercial Mortgage Trust 2014-C22 | ||||||||||||
3.91% | 09/15/57 | 205,657 | 173,003 | (b,i) | ||||||||
WFRBS Commercial Mortgage Trust | ||||||||||||
4.35% | 03/15/47 | 447,000 | 471,264 | (i) | ||||||||
13,058,531 | ||||||||||||
Sovereign Bonds — 0.2% |
| |||||||||||
Government of Brazil | ||||||||||||
4.25% | 01/07/25 | 288,000 | 285,120 | |||||||||
Government of Chile | ||||||||||||
3.63% | 10/30/42 | 250,000 | 219,375 | |||||||||
Government of Colombia | ||||||||||||
2.63% | 03/15/23 | 236,000 | 217,120 | |||||||||
5.63% | 02/26/44 | 282,000 | 310,200 | |||||||||
Government of Mexico | ||||||||||||
4.00% | 10/02/23 | 168,000 | 173,628 | |||||||||
4.75% | 03/08/44 | 322,000 | 319,585 | |||||||||
Government of Panama | ||||||||||||
4.00% | 09/22/24 | 200,000 | 199,500 | |||||||||
Government of Philippines | ||||||||||||
4.20% | 01/21/24 | 200,000 | 211,000 |
See Notes to Schedules of Investments and Notes to Financial Statements.
66
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Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Government of Turkey | ||||||||||||
3.25% | 03/23/23 | $ | 73,000 | $ | 65,700 | |||||||
6.63% | 02/17/45 | 76,000 | 85,025 | |||||||||
2,086,253 | ||||||||||||
Municipal Bonds and Notes — 0.2% |
| |||||||||||
American Municipal Power Inc. | ||||||||||||
6.27% | 02/15/50 | 95,000 | 116,576 | |||||||||
Denver City & County School District No 1 | ||||||||||||
4.24% | 12/15/37 | 245,000 | 237,834 | |||||||||
Municipal Electric Authority of Georgia | ||||||||||||
6.64% | 04/01/57 | 169,000 | 211,950 | |||||||||
New Jersey Transportation Trust Fund Authority | ||||||||||||
6.88% | 12/15/39 | 65,000 | 72,393 | |||||||||
Port Authority of New York & New Jersey | ||||||||||||
4.46% | 10/01/62 | 350,000 | 348,929 | |||||||||
South Carolina State Public Service Authority | ||||||||||||
6.45% | 01/01/50 | 120,000 | 157,944 | |||||||||
State of California | ||||||||||||
5.70% | 11/01/21 | 175,000 | 205,999 | |||||||||
1,351,625 | ||||||||||||
FNMA — 0.0%* | ||||||||||||
Lehman TBA | ||||||||||||
5.50% | TBA | 98,642 | — | (**,l,p) | ||||||||
Total Bonds and Notes | 248,835,280 | |||||||||||
Number of Shares | Fair Value | |||||||||||
Exchange Traded Funds — 2.4% | ||||||||||||
Financial Select Sector SPDR Fund | 34,582 | $ | 801,265 | (m) | ||||||||
Industrial Select Sector SPDR Fund | 60,298 | 3,204,838 | (m) | |||||||||
Vanguard FTSE Emerging Markets ETF | 381,149 | 15,897,725 | ||||||||||
Total Exchange Traded Funds | 19,903,828 | |||||||||||
Total Investments in Securities | 738,708,750 |
Fair Value | ||||||||||
Short-Term Investments — 15.3% |
| |||||||||
State Street Institutional U.S. | $ | 127,749,515 | (d,m) | |||||||
Total Investments | 866,458,265 | |||||||||
Liabilities in Excess of Other | (31,058,290 | ) | ||||||||
|
| |||||||||
NET ASSETS — 100.0% | $ | 835,399,975 | ||||||||
|
| |||||||||
Other Information: |
The Fund had the following long futures contracts open at September 30, 2014:
Description | Expiration Date | Number of Contracts | Current Notional Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||
EURO Stoxx 50 Index Futures | December 2014 | 1 | $ | 40,715 | $ | 629 | ||||||||||||||
S&P 500 Emini Index Futures | December 2014 | 79 | 7,763,725 | 23,452 | ||||||||||||||||
S&P Mid 400 Emini Index Futures | December 2014 | 174 | 23,757,960 | (915,822 | ) | |||||||||||||||
2 Yr. U.S. Treasury Notes Futures | December 2014 | 68 | 14,881,375 | 439 | ||||||||||||||||
|
| |||||||||||||||||||
$ | (891,302 | ) | ||||||||||||||||||
|
|
The Fund had the following short futures contracts open at September 30, 2014:
Description | Expiration Date | Number of Contracts | Current Notional Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||
U.S. Long Bond Futures | December 2014 | 96 | $ | (13,239,000 | ) | $ | 2,799 | |||||||||||||
Ultra Long-Term U.S. Treasury Bond Futures | December 2014 | 11 | (1,677,500 | ) | (11,835 | ) |
See Notes to Schedules of Investments and Notes to Financial Statements.
67
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
The Fund had the following short futures contracts open at September 30, 2014 (continued):
Description | Expiration Date | Number of Contracts | Current Notional Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||
5 Yr. U.S. Treasury Notes Futures | December 2014 | 83 | $ | (9,815,398 | ) | $ | (10,337 | ) | ||||||||||||
10 Yr. U.S. Treasury Notes Futures | December 2014 | 33 | (4,113,141 | ) | (4,794 | ) | ||||||||||||||
|
| |||||||||||||||||||
$ | (24,167 | ) | ||||||||||||||||||
|
| |||||||||||||||||||
$ | (915,469 | ) | ||||||||||||||||||
|
|
The Fund was invested in the following countries at September 30, 2014 (unaudited):
Country | Percentage (based on Fair Value) | |||
United States | 76.01% | |||
Japan | 5.79% | |||
United Kingdom | 3.05% | |||
France | 3.00% | |||
Germany | 2.35% | |||
Canada | 1.34% | |||
Switzerland | 1.28% | |||
China | 0.92% | |||
Sweden | 0.86% | |||
Netherlands | 0.73% | |||
Hong Kong | 0.69% | |||
India | 0.60% | |||
Italy | 0.53% | |||
South Korea | 0.45% | |||
Taiwan | 0.38% | |||
Belgium | 0.34% | |||
Australia | 0.30% | |||
Mexico | 0.26% | |||
Brazil | 0.20% | |||
Luxembourg | 0.14% | |||
Supranational | 0.12% | |||
Ireland | 0.11% | |||
Colombia | 0.07% | |||
Russian Federation | 0.06% | |||
South Africa | 0.06% | |||
Denmark | 0.05% | |||
Cayman Islands | 0.05% | |||
Philippines | 0.04% | |||
New Zealand | 0.03% | |||
Malaysia | 0.03% |
Country | Percentage (based on Fair Value) | |||
Chile | 0.03% | |||
Turkey | 0.03% | |||
Indonesia | 0.03% | |||
Panama | 0.02% | |||
Bermuda | 0.02% | |||
Peru | 0.02% | |||
Thailand | 0.01% | |||
Austria | 0.00% | *** | ||
|
| |||
100.00% | ||||
|
|
The Fund’s % share of investment in the various categories, based on Fair Value, is as follows at September 30, 2014 (unaudited):
Industry | Domestic | Foreign | Total | |||||||||
Diversified Banks | 1.98% | 2.67% | 4.65% | |||||||||
Pharmaceuticals | 2.60% | 1.92% | 4.52% | |||||||||
Integrated Oil & Gas | 1.97% | 0.87% | 2.84% | |||||||||
Exchange Traded Funds | 2.30% | 0.00% | 2.30% | |||||||||
Technology Hardware, Storage & Peripherals | 2.18% | 0.00% | 2.18% | |||||||||
Aerospace & Defense | 1.22% | 0.65% | 1.87% | |||||||||
Biotechnology | 1.70% | 0.16% | 1.86% | |||||||||
Internet Software & Services | 1.05% | 0.74% | 1.79% | |||||||||
Communications Equipment | 1.36% | 0.41% | 1.77% | |||||||||
Asset Management & Custody Banks | 1.62% | 0.00% | 1.62% | |||||||||
Oil & Gas Equipment & Services | 1.24% | 0.38% | 1.62% | |||||||||
Multi-Line Insurance | 1.23% | 0.29% | 1.52% | |||||||||
Automobile Manufacturers | 0.17% | 1.14% | 1.31% | |||||||||
Healthcare Equipment | 1.23% | 0.00% | 1.23% | |||||||||
Soft Drinks | 1.12% | 0.00% | 1.12% | |||||||||
Electrical Components & Equipment | 0.44% | 0.55% | 0.99% | |||||||||
Life & Health Insurance | 0.16% | 0.80% | 0.96% | |||||||||
Cable & Satellite | 0.95% | 0.00% | 0.95% | |||||||||
Diversified Real Estate Activities | 0.00% | 0.90% | 0.90% | |||||||||
Industrial Machinery | 0.17% | 0.68% | 0.85% | |||||||||
Wireless Telecommunication Services | 0.00% | 0.67% | 0.67% | |||||||||
Specialized Finance | 0.63% | 0.00% | 0.63% | |||||||||
Semiconductors | 0.04% | 0.58% | 0.62% | |||||||||
Packaged Foods & Meats | 0.38% | 0.23% | 0.61% | |||||||||
Application Software | 0.24% | 0.35% | 0.59% | |||||||||
Movies & Entertainment | 0.58% | 0.00% | 0.58% | |||||||||
Home Improvement Retail | 0.58% | 0.00% | 0.58% | |||||||||
Commodity Chemicals | 0.54% | 0.01% | 0.55% | |||||||||
Specialized REITs | 0.55% | 0.00% | 0.55% | |||||||||
Internet Retail | 0.25% | 0.30% | 0.55% | |||||||||
Electronic Equipment & Instruments | 0.00% | 0.53% | 0.53% | |||||||||
Independent Power Producers & Energy Traders | 0.49% | 0.00% | 0.49% | |||||||||
Healthcare Services | 0.22% | 0.27% | 0.49% | |||||||||
Oil & Gas Exploration & Production | 0.33% | 0.15% | 0.48% | |||||||||
General Merchandise Stores | 0.47% | 0.00% | 0.47% | |||||||||
Consumer Finance | 0.46% | 0.00% | 0.46% | |||||||||
Integrated Telecommunication Services | 0.37% | 0.09% | 0.46% | |||||||||
Electronic Components | 0.00% | 0.45% | 0.45% | |||||||||
Agricultural Products | 0.43% | 0.00% | 0.43% |
See Notes to Schedules of Investments and Notes to Financial Statements.
68
Table of Contents
Strategic Investment Fund
Schedule of Investments | September 30, 2014 |
Industry | Domestic | Foreign | Total | |||||||||
Semiconductor Equipment | 0.12% | 0.28% | 0.40% | |||||||||
Property & Casualty Insurance | 0.00% | 0.39% | 0.39% | |||||||||
Other Diversified Financial Services | 0.00% | 0.39% | 0.39% | |||||||||
Regional Banks | 0.37% | 0.00% | 0.37% | |||||||||
Data Processing & Outsourced Services | 0.37% | 0.00% | 0.37% | |||||||||
Casinos & Gaming | 0.17% | 0.19% | 0.36% | |||||||||
Fertilizers & Agricultural Chemicals | 0.36% | 0.00% | 0.36% | |||||||||
Brewers | 0.00% | 0.36% | 0.36% | |||||||||
Diversified Metals & Mining | 0.01% | 0.35% | 0.36% | |||||||||
Industrial Gases | 0.00% | 0.35% | 0.35% | |||||||||
Broadcasting | 0.33% | 0.00% | 0.33% | |||||||||
Apparel, Accessories & Luxury Goods | 0.00% | 0.30% | 0.30% | |||||||||
Auto Parts & Equipment | 0.06% | 0.23% | 0.29% | |||||||||
Construction Materials | 0.00% | 0.28% | 0.28% | |||||||||
Drug Retail | 0.28% | 0.00% | 0.28% | |||||||||
Specialty Chemicals | 0.05% | 0.23% | 0.28% | |||||||||
Railroads | 0.05% | 0.20% | 0.25% | |||||||||
Airlines | 0.14% | 0.09% | 0.23% | |||||||||
Research & Consulting Services | 0.10% | 0.12% | 0.22% | |||||||||
Building Products | 0.00% | 0.22% | 0.22% | |||||||||
Electric Utilities | 0.12% | 0.09% | 0.21% | |||||||||
Specialty Stores | 0.21% | 0.00% | 0.21% | |||||||||
Investment Banking & Brokerage | 0.21% | 0.00% | 0.21% | |||||||||
Household Products | 0.08% | 0.13% | 0.21% | |||||||||
Healthcare Supplies | 0.18% | 0.01% | 0.19% | |||||||||
Advertising | 0.00% | 0.19% | 0.19% | |||||||||
Apparel Retail | 0.00% | 0.19% | 0.19% | |||||||||
Human Resource & Employment Services | 0.00% | 0.18% | 0.18% | |||||||||
Heavy Electrical Equipment | 0.00% | 0.18% | 0.18% | |||||||||
Healthcare Distributors | 0.18% | 0.00% | 0.18% | |||||||||
Department Stores | 0.13% | 0.04% | 0.17% | |||||||||
Systems Software | 0.17% | 0.00% | 0.17% | |||||||||
Air Freight & Logistics | 0.15% | 0.00% | 0.15% | |||||||||
Construction & Engineering | 0.00% | 0.14% | 0.14% | |||||||||
Automotive Retail | 0.10% | 0.00% | 0.10% | |||||||||
Coal & Consumable Fuels | 0.00% | 0.10% | 0.10% | |||||||||
Life Sciences Tools & Services | 0.08% | 0.00% | 0.08% | |||||||||
Thrifts & Mortgage Finance | 0.00% | 0.03% | 0.03% | |||||||||
IT Consulting & Other Services | 0.00% | 0.03% | 0.03% | |||||||||
Industrial Conglomerates | 0.00% | 0.02% | 0.02% | |||||||||
Gas Utilities | 0.00% | 0.02% | 0.02% | |||||||||
Publishing | 0.02% | 0.00% | 0.02% | |||||||||
Food Retail | 0.00% | 0.02% | 0.02% | |||||||||
Household Appliances | 0.00% | 0.02% | 0.02% | |||||||||
Tobacco | 0.00% | 0.02% | 0.02% | |||||||||
Education Services | 0.00% | 0.01% | 0.01% | |||||||||
Steel | 0.00% | 0.01% | 0.01% | |||||||||
Tires & Rubber | 0.00% | 0.01% | 0.01% | |||||||||
Highways & Railtracks | 0.00% | 0.01% | 0.01% | |||||||||
Residential REITs | 0.00% | 0.01% | 0.01% | |||||||||
Personal Products | 0.00% | 0.01% | 0.01% | |||||||||
Trading Companies & Distributors | 0.00% | 0.01% | 0.01% | |||||||||
|
| |||||||||||
56.54% | ||||||||||||
|
|
Sector | Percentage (based on Fair Value) | |||
Corporate Notes | 10.26% | |||
U.S. Treasuries | 8.36% | |||
Agency Mortgage Backed | 8.09% | |||
Non-Agency Collateralized Mortgage Obligations | 1.51% | |||
Sovereign Bonds | 0.24% | |||
Municipal Bonds and Notes | 0.15% | |||
Agency Collateralized Mortgage Obligations | 0.10% | |||
Asset Backed | 0.01% | |||
|
| |||
28.72% | ||||
|
| |||
Short-Term Investments | ||||
Short-Term Investments | 14.74% | |||
|
| |||
14.74% | ||||
|
| |||
100.00% | ||||
|
|
See Notes to Schedules of Investments and Notes to Financial Statements.
69
Table of Contents
Income Fund | (Unaudited) |
William M. Healey
Senior Vice President and Chief Investment Officer Core Fixed Income
Mark H. Johnson
Senior Vice President and Chief Investment Officer Insurance and Long Duration
The Income Fund is managed by a team of portfolio managers that includes William M. Healey and Mark H. Johnson. Mr. Healey and Mr. Johnson are each responsible for a portion of the Fund, the size of which is determined by team consensus and adjusted on a periodic basis, if necessary. Although each portfolio manager manages his portion of the Fund independent of the other team members, the team is highly collaborative and communicative. Effective as of April 7, 2014, Vita Marie Pike relinquished her role as a portfolio manager for the Fund and now serves as a portfolio manager for Tactical Asset Allocation. See portfolio managers’ biographical information beginning on page 121.
Q. | How did the GE Institutional Income Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended September 30, 2014? |
A. | For the twelve-month period ended September 30, 2014, the GE Institutional Income Fund returned 4.61% for the Investment Class shares and 4.32% for the Service Class shares. The Fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index returned 3.96% and the Fund’s Morningstar peer group of 1,055 U.S. Intermediate-Term Bond funds returned an average of 4.30% over the same period. |
Q. | What market conditions impacted the Fund’s performance? |
A. | Economic growth in the U.S. trended above expectations during the period except for the first quarter in 2014 when GDP turned negative primarily due to freezing temperatures and heavy snowfall in much of the country. The labor market improved as gains in monthly jobs averaged over 200,000. The Federal Reserve kept the Federal Funds rate at 0.0-0.25% during the period and gradually reduced its monthly asset purchases of treasury and mortgage-backed securities from January to September. Under new Federal Chair, Janet Yellen, the central bank moved to a policy of forward guidance suggesting a “broader range of information” rather than targeting just the unemployment |
rate was necessary for a change in the policy |
rate. As economic data snapped back in the second quarter of 2014, expectations for a rate change grew, targeting a mid-2015 hike. Unrest between Russia and Ukraine, the growing movement of ISIS from Syria into Iraq and the outbreak of Ebola in West Africa all contributed to intermittent periods of risk off sentiment. The U.S. Treasury yield curve flattened during the period. Yields on two and five year notes increased 25 and 38 basis points respectively in reaction to rate hike expectations. Foreign central bank buying, moderate inflation and geopolitical events supported prices on longer dated treasuries. Yields on 10 and 30 year treasuries fell 12 and 50 bps respectively. Credit spreads tightened for most of the period then backed up in the last three months amidst heavy supply. |
Q. | What were the primary drivers behind Fund performance? |
A. | The Fund’s performance relative to its benchmark was positively impacted by the Fund’s allocation to different sectors and the individual security selection within those sectors. The Fund’s overweight in high grade credit and non-index exposure to high yield and emerging market debt added to performance due to spread compression between corporate bond and treasury yields during the period. Security selection favoring BBB-rated securities enhanced return within the high grade credit space and tactical trading among the coupon stack positively impacted the returns within the mortgage-backed holdings. The duration positioning of the Fund throughout the period had a negative impact on performance due to the decline in longer rates. |
Q. | Were there any significant changes in the Fund during the period? |
A. | The duration of the Fund was tactically traded between neutral and one year short relative to the benchmark during the period. The yield curve positioning changed near the end of the period where the duration |
70
Table of Contents
(Unaudited) |
short was more concentrated in the five year area of the curve. The allocation to high grade corporate securities was decreased from overweight to a neutral position in early 2014. The non-index exposure to emerging market debt was sold and the exposure to high yield was reduced during the period but then raised back to roughly 8% (market value percentage) by the end of the period. |
71
Table of Contents
Income Fund | (Unaudited) |
Understanding Your Fund’s Expenses
As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, distribution and service fees (for Service Class shares), professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended September 30, 2014.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given
for your class under the heading “Expenses paid during the period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
April 1, 2014 - September 30, 2014
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($)* | ||||||||||
Actual Fund Return |
| |||||||||||
Investment Class | 1,000.00 | 1,020.30 | 1.16 | |||||||||
Service Class | 1,000.00 | 1,018.90 | 2.43 | |||||||||
Hypothetical 5% Return (2.5% for the period) |
| |||||||||||
Investment Class | 1,000.00 | 1,023.92 | 1.17 | |||||||||
Service Class | 1,000.00 | 1,022.66 | 2.43 |
* | Expenses are equal to the Fund’s annualized expense ratio of 0.23% for Investment Class shares and 0.48% for Service Class shares (for the period April 1, 2014 - September 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
72
Table of Contents
Income Fund | (Unaudited) |
Investment Profile
A mutual fund designed for investors who seek maximum income consistent with prudent investment management and the preservation of capital. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in debt securities and investing primarily in a variety of investment-grade debt securities, such as mortgage-backed securities, corporate bonds, U.S. Government securities and money market instruments.
Morningstar Performance Comparison
Based on average annual returns for periods ended September 30, 2014
One Year | Five Year | Ten Year | ||||
Number of funds in peer group | 1,055 | 811 | 575 | |||
Peer group average annual total return | 4.30% | 4.78% | 4.18% |
Morningstar Category in peer group: Intermediate-Term Bond
Quality Ratings as of September 30, 2014
as a % of Fair Value (b)(c)
Moody’s / S&P / Rating* | Percentage of Fair Value | |||
Aaa / AAA | 8.68% | |||
Aa / AA | 57.80% | |||
A / A | 6.77% | |||
Baa / BBB | 17.34% | |||
Ba / BB and lower | 8.81% | |||
NR / Other | 0.60% |
Sector Allocation as of September 30, 2014
Portfolio composition as a % of Fair Value of $339,304 (in thousands) as of September 30, 2014 (b)(c)
Change in Value of a $10,000 Investment (a) |
Investment Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Investment Class Shares (Inception date: 11/21/97)
One Year | Five Year | Ten Year | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Income Fund | 4.61% | 5.14% | 4.37% | $ | 15,341 | |||||||||||||||
Barclays U.S. Aggregate Bond Index | 3.96% | 4.12% | 4.62% | $ | 15,712 |
Service Class Shares
Average Annual Total Return
for the Periods Ended September 30, 2014
Service Class Shares (Inception date: 9/30/05)
One Year | Five Year | Since Inception | Ending Value of a $10,000 Investment (a) | |||||||||||||||||
Income Fund | 4.32% | 4.88% | 4.53% | $ | 14,904 | |||||||||||||||
Barclays U.S. Aggregate Bond Index | 3.96% | 4.12% | 4.83% | $ | 15,284 |
An investment in the GE Institutional Income Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other Government agency. It is possible to lose money by investing in the Fund.
(a) | Ending value of a $10,000 investment for the ten-year period or since inception, whichever is less. |
(b) | Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class. |
(c) | The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security. |
* | Moody’s Investors Services, Inc. (“Moody’s”) and Standard & Poor’s Corporation (“S&P”) are nationally recognized statistical rating organizations. The quality ratings represent the lower of Moody’s or S&P credit ratings. When a rating from only one of the rating agencies is available, that rating is used. Securities not rated by Moody’s or S&P are categorized as not rated. Credit quality measures a bond issuer’s ability to repay interest and principal in a timely manner. Credit quality ratings assigned by a rating agency are subject to change periodically and are not absolute standards of quality. In formulating investment decisions for the Fund, GEAM develops its own analysis of the credit quality and risks associated with individual debt instruments, rather than relying exclusively on rating agency ratings. |
See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.
Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
73
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Income Fund |
Principal Amount | Fair Value | |||||||||||
Bonds and Notes — 99.0% † |
| |||||||||||
U.S. Treasuries — 28.9% |
| |||||||||||
U.S. Treasury Bonds | ||||||||||||
3.38% | 05/15/44 | $ | 5,571,900 | $ | 5,752,987 | (h) | ||||||
4.50% | 02/15/36 | 11,305,300 | 13,953,216 | (h) | ||||||||
4.50% | 05/15/38 | 1,737,100 | 2,147,761 | |||||||||
U.S. Treasury Notes |
| |||||||||||
0.50% | 06/30/16 - 08/31/16 | 29,196,200 | 29,200,982 | (h) | ||||||||
0.75% | 01/15/17 | 4,711,100 | 4,708,156 | (h) | ||||||||
0.88% | 01/31/17 | 182,800 | 183,143 | |||||||||
1.00% | 09/30/16 - 09/15/17 | 13,239,100 | 13,328,388 | |||||||||
1.63% | 06/30/19 | 17,847,500 | 17,752,694 | (h) | ||||||||
2.50% | 05/15/24 | 6,239,500 | 6,243,400 | |||||||||
93,270,727 | ||||||||||||
Agency Mortgage Backed — 27.1% |
| |||||||||||
Federal Home Loan Mortgage Corp. | ||||||||||||
4.00% | 05/01/44 | 4,125,741 | 4,361,276 | (h) | ||||||||
4.50% | 06/01/33 - 02/01/35 | 23,556 | 25,511 | |||||||||
5.00% | 07/01/35 | 183,419 | 205,026 | |||||||||
5.00% | 06/01/41 | 1,422,589 | 1,587,787 | (h) | ||||||||
5.50% | 05/01/20 | 33,367 | 35,786 | |||||||||
5.50% | 01/01/38 - 04/01/39 | 538,108 | 602,994 | (h) | ||||||||
6.00% | 04/01/17 - 11/01/36 | 351,679 | 401,397 | |||||||||
6.00% | 06/01/17 - 11/01/37 | 549,667 | 631,189 | (h) | ||||||||
6.50% | 07/01/29 - 10/01/33 | 3,727 | 4,246 | |||||||||
7.00% | 10/01/16 - 08/01/36 | 99,333 | 113,262 | |||||||||
7.50% | 01/01/30 - 09/01/33 | 2,335 | 2,521 | |||||||||
8.00% | 11/01/30 | 28,945 | 32,899 | |||||||||
8.50% | 04/01/30 | 22,303 | 27,570 | |||||||||
9.00% | 12/01/16 | 426 | 448 | (h) | ||||||||
9.50% | 04/01/21 | 41 | 46 | |||||||||
Federal National Mortgage Assoc. | ||||||||||||
2.10% | 04/01/37 | 2,657 | 2,669 | (i) | ||||||||
3.00% | 02/01/43 - 06/01/43 | 19,553,677 | 19,336,018 | (h) | ||||||||
3.50% | 11/01/42 - 02/01/43 | 6,362,019 | 6,526,541 | (h) | ||||||||
4.00% | 05/01/19 - 06/01/19 | 69,951 | 74,116 | |||||||||
4.00% | 01/01/41 - 03/01/44 | 9,598,690 | 10,141,952 | (h) | ||||||||
4.50% | 05/01/18 - 12/01/34 | 271,862 | 290,090 | |||||||||
4.50% | 10/01/39 - 04/01/41 | 11,204,696 | 12,116,488 | (h) | ||||||||
5.00% | 07/01/20 - 05/01/39 | 698,369 | 775,647 | |||||||||
5.00% | 06/01/41 | 2,100,829 | 2,349,135 | (h) | ||||||||
5.50% | 06/01/20 - 08/01/37 | 1,734,154 | 1,932,568 | |||||||||
5.50% | 10/01/24 | 8,126 | 8,195 | (i) | ||||||||
5.50% | 05/01/35 - 04/01/38 | 983,311 | 1,101,788 | (h) | ||||||||
6.00% | 05/01/19 - 08/01/35 | 952,281 | 1,088,975 | |||||||||
6.00% | 03/01/34 - 06/01/35 | 736,157 | 840,774 | (h) | ||||||||
6.50% | 07/01/17 - 08/01/36 | 172,186 | 192,402 | |||||||||
7.00% | 03/01/15 | 505 | 508 | (h) | ||||||||
7.00% | 10/01/16 - 02/01/34 | 27,542 | 29,522 | |||||||||
7.50% | 02/01/15 - 12/01/33 | 63,094 | 70,107 | |||||||||
7.50% | 09/01/31 | 13,201 | 15,655 | (h) |
Principal Amount | Fair Value | |||||||||||
8.00% | 12/01/15 - 01/01/33 | $ | 10,526 | $ | 11,612 | |||||||
8.00% | 11/01/25 | 8,783 | 10,394 | (h) | ||||||||
9.00% | 12/01/17 - 12/01/22 | 5,064 | 5,542 | |||||||||
3.00% | TBA | 175,000 | 172,512 | (c) | ||||||||
3.50% | TBA | 2,100,000 | 2,146,430 | (c) | ||||||||
5.00% | TBA | 1,133,000 | 1,198,361 | (c) | ||||||||
6.00% | TBA | 3,640,000 | 4,114,195 | (c) | ||||||||
Government National Mortgage Assoc. | ||||||||||||
3.00% | 06/20/43 | 1,815,425 | 1,830,996 | (h) | ||||||||
3.50% | 05/20/43 | 4,200,082 | 4,348,824 | (h) | ||||||||
4.00% | 01/20/41 - 04/20/43 | 4,822,556 | 5,127,569 | (h) | ||||||||
4.50% | 08/15/33 - 05/20/40 | 1,020,835 | 1,113,115 | |||||||||
5.00% | 08/15/33 | 59,433 | 66,029 | |||||||||
6.00% | 04/15/27 - 09/15/36 | 346,748 | 398,278 | |||||||||
6.50% | 04/15/19 - 09/15/36 | 142,571 | 162,259 | |||||||||
7.00% | 10/15/27 - 10/15/36 | 73,918 | 83,412 | |||||||||
7.50% | 01/15/23 - 11/15/31 | 12,727 | 13,437 | |||||||||
8.00% | 02/15/30 - 09/15/30 | 931 | 1,021 | |||||||||
8.50% | 10/15/17 | 2,461 | 2,636 | |||||||||
9.00% | 11/15/16 | 13,933 | 14,725 | (h) | ||||||||
9.00% | 01/15/17 - 12/15/21 | 3,731 | 4,078 | |||||||||
5.00% | TBA | 1,560,000 | 1,715,909 | (c) | ||||||||
5.50% | TBA | 255,000 | 283,219 | (c) | ||||||||
87,749,661 | ||||||||||||
Agency Collateralized Mortgage Obligations — 0.4% |
| |||||||||||
Collateralized Mortgage Obligation Trust | ||||||||||||
0.01% | 11/01/18 | 268 | 267 | (d,f) | ||||||||
Federal Home Loan Mortgage Corp. | ||||||||||||
0.08% | 09/25/43 | 1,158,610 | 3,403 | (g,i) | ||||||||
Federal Home Loan Mortgage Corp. REMIC | ||||||||||||
3.50% | 11/15/24 - 11/15/30 | 1,533,880 | 156,962 | (g) | ||||||||
4.50% | 03/15/18 | 30,058 | 707 | (g) | ||||||||
5.00% | 10/15/18 - 02/15/38 | 60,672 | 2,441 | (g) | ||||||||
5.50% | 06/15/33 | 71,228 | 13,614 | (g) | ||||||||
5.95% | 07/15/39 | 585,378 | 88,937 | (g,i) | ||||||||
6.45% | 08/15/25 | 569,504 | 74,773 | (g,i) | ||||||||
7.50% | 07/15/27 | 6,212 | 1,134 | (g) | ||||||||
8.00% | 04/15/20 | 76 | 81 | |||||||||
Federal Home Loan Mortgage Corp. STRIPS | ||||||||||||
1.47% | 08/01/27 | 1,438 | 1,334 | (d,f) | ||||||||
8.00% | 02/01/23 - 07/01/24 | 5,431 | 1,220 | (g) | ||||||||
Federal National Mortgage Assoc. REMIC | ||||||||||||
0.51% | 12/25/22 | 354 | 346 | (d,f) | ||||||||
1.24% | 12/25/42 | 229,809 | 9,541 | (g,i) | ||||||||
5.00% | 02/25/40 - 09/25/40 | 897,086 | 106,774 | (g) | ||||||||
5.85% | 07/25/38 | 179,683 | 24,544 | (g,i) | ||||||||
7.35% | 05/25/18 | 80,751 | 7,212 | (g,i) | ||||||||
8.00% | 05/25/22 | 8 | 169 | (g) | ||||||||
Federal National Mortgage Assoc. STRIPS | ||||||||||||
1.87% | 12/25/34 | 34,426 | 31,567 | (d,f) | ||||||||
4.50% | 08/25/35 - 01/25/36 | 251,397 | 39,565 | (g) | ||||||||
5.00% | 03/25/38 - 05/25/38 | 150,433 | 24,996 | (g) |
See Notes to Schedules of Investments and Notes to Financial Statements.
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Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
5.50% | 12/25/33 | $ | 30,288 | $ | 5,965 | (g) | ||||||
6.00% | 01/25/35 | 128,570 | 26,308 | (g) | ||||||||
7.50% | 11/25/23 | 29,579 | 5,358 | (g,h) | ||||||||
8.00% | 08/25/23 - 07/25/24 | 10,877 | 2,196 | (g) | ||||||||
8.50% | 03/25/17 - 07/25/22 | 753 | 103 | (g) | ||||||||
9.00% | 05/25/22 | 326 | 66 | (g) | ||||||||
Government National Mortgage Assoc. | ||||||||||||
4.50% | 10/20/37 - 08/16/39 | 1,268,211 | 133,923 | (g) | ||||||||
4.50% | 02/20/38 | 504,364 | 52,850 | (g,h) | ||||||||
5.00% | 12/20/35 - 09/20/38 | 754,545 | 68,556 | (g) | ||||||||
5.00% | 10/20/37 | 325,566 | 26,842 | (g,h) | ||||||||
6.10% | 02/20/40 | 2,080,173 | 366,196 | (g,h,i) | ||||||||
1,277,950 | ||||||||||||
Asset Backed – 0.2% |
| |||||||||||
Chase Funding Mortgage Loan Asset-Backed Certificates 2004-1 | ||||||||||||
3.99% | 11/25/33 | 336,451 | 345,282 | (j) | ||||||||
Ford Credit Auto Lease Trust 2013-A | ||||||||||||
1.28% | 06/15/16 | 160,000 | 160,414 | |||||||||
505,696 | ||||||||||||
Corporate Notes – 35.1% |
| |||||||||||
21st Century Fox America Inc. | ||||||||||||
6.65% | 11/15/37 | 213,000 | 266,991 | |||||||||
ABB Finance USA Inc. | ||||||||||||
1.63% | 05/08/17 | 408,000 | 410,344 | |||||||||
AbbVie Inc. | ||||||||||||
1.75% | 11/06/17 | 370,000 | 368,739 | |||||||||
2.00% | 11/06/18 | 304,000 | 299,310 | |||||||||
ACCO Brands Corp. | ||||||||||||
6.75% | 04/30/20 | 85,000 | 87,975 | |||||||||
Actavis Funding SCS | ||||||||||||
1.30% | 06/15/17 | 400,000 | 392,530 | (b) | ||||||||
4.85% | 06/15/44 | 208,000 | 195,415 | (b) | ||||||||
Agrium Inc. | ||||||||||||
4.90% | 06/01/43 | 306,000 | 310,519 | |||||||||
Alcoa Inc. | ||||||||||||
5.13% | 10/01/24 | 80,000 | 80,104 | |||||||||
Altria Group Inc. | ||||||||||||
2.95% | 05/02/23 | 209,000 | 199,226 | |||||||||
4.50% | 05/02/43 | 209,000 | 197,307 | |||||||||
American Axle & Manufacturing Inc. | ||||||||||||
6.25% | 03/15/21 | 283,000 | 294,320 | |||||||||
7.75% | 11/15/19 | 83,000 | 92,960 | |||||||||
American Campus Communities Operating Partnership LP | ||||||||||||
4.13% | 07/01/24 | 312,000 | 312,899 | |||||||||
American Seafoods Group LLC | ||||||||||||
10.75% | 05/15/16 | 350,000 | 340,375 | (b) | ||||||||
American Tower Trust Corp. (REIT) | ||||||||||||
3.40% | 02/15/19 | 550,000 | 561,918 | |||||||||
3.50% | 01/31/23 | 125,000 | 118,835 | |||||||||
Amgen Inc. | ||||||||||||
2.20% | 05/22/19 | 1,626,000 | 1,608,766 |
Principal Amount | Fair Value | |||||||||||
Anadarko Petroleum Corp. | ||||||||||||
6.20% | 03/15/40 | $ | 233,000 | $ | 284,988 | |||||||
Anheuser-Busch InBev Worldwide Inc. | ||||||||||||
2.50% | 07/15/22 | 645,000 | 609,488 | |||||||||
ANZ New Zealand International Ltd. | ||||||||||||
2.60% | 09/23/19 | 400,000 | 400,966 | (b) | ||||||||
AP Moeller-Maersk A/S | ||||||||||||
2.55% | 09/22/19 | 300,000 | 300,725 | (b) | ||||||||
3.75% | 09/22/24 | 300,000 | 300,796 | (b) | ||||||||
Apple Inc. | ||||||||||||
2.85% | 05/06/21 | 550,000 | 551,079 | |||||||||
3.45% | 05/06/24 | 1,000,000 | 1,009,944 | |||||||||
Aramark Services Inc. | ||||||||||||
5.75% | 03/15/20 | 575,000 | 589,375 | |||||||||
Archer-Daniels-Midland Co. | ||||||||||||
4.02% | 04/16/43 | 237,000 | 225,837 | |||||||||
Ardagh Packaging Finance PLC/ Ardagh Holdings USA Inc. | ||||||||||||
3.23% | 12/15/19 | 250,000 | 241,875 | (b,i) | ||||||||
Arizona Public Service Co. | ||||||||||||
6.25% | 08/01/16 | 214,000 | 234,508 | |||||||||
Ascension Health | ||||||||||||
4.85% | 11/15/53 | 327,000 | 363,607 | |||||||||
AT&T Inc. | ||||||||||||
2.38% | 11/27/18 | 300,000 | 302,806 | |||||||||
4.35% | 06/15/45 | 252,000 | 231,626 | |||||||||
4.80% | 06/15/44 | 250,000 | 246,315 | |||||||||
AXIS Specialty Finance PLC | ||||||||||||
5.15% | 04/01/45 | 237,000 | 246,169 | |||||||||
Bank of America Corp. | ||||||||||||
1.70% | 08/25/17 | 209,000 | 208,097 | |||||||||
2.00% | 01/11/18 | 864,000 | 860,242 | |||||||||
2.60% | 01/15/19 | 17,000 | 16,967 | |||||||||
4.00% | 04/01/24 | 656,000 | 662,836 | |||||||||
4.10% | 07/24/23 | 190,000 | 193,970 | |||||||||
Barclays Bank PLC | ||||||||||||
2.25% | 05/10/17 | 1,281,000 | 1,312,436 | (b) | ||||||||
Bed Bath & Beyond Inc. | ||||||||||||
3.75% | 08/01/24 | 207,000 | 205,244 | |||||||||
4.92% | 08/01/34 | 62,000 | 61,690 | |||||||||
5.17% | 08/01/44 | 292,000 | 285,914 | |||||||||
Berkshire Hathaway Energy Co. | ||||||||||||
6.13% | 04/01/36 | 495,000 | 612,584 | |||||||||
Berkshire Hathaway Finance Corp. | ||||||||||||
2.90% | 10/15/20 | 524,000 | 532,638 | |||||||||
3.00% | 05/15/22 | 134,000 | 133,701 | |||||||||
BHP Billiton Finance USA Ltd. | ||||||||||||
5.00% | 09/30/43 | 119,000 | 130,546 | |||||||||
Bombardier Inc. | ||||||||||||
4.75% | 04/15/19 | 255,000 | 254,362 | (b) | ||||||||
6.00% | 10/15/22 | 420,000 | 417,900 | (b) | ||||||||
7.75% | 03/15/20 | 288,000 | 313,978 | (b) | ||||||||
BP Capital Markets PLC | ||||||||||||
1.38% | 05/10/18 | 210,000 | 206,233 | |||||||||
3.81% | 02/10/24 | 429,000 | 434,253 |
See Notes to Schedules of Investments and Notes to Financial Statements.
75
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Branch Banking & Trust Co. | ||||||||||||
3.80% | 10/30/26 | $ | 255,000 | $ | 253,821 | |||||||
Brocade Communications Systems Inc. | ||||||||||||
4.63% | 01/15/23 | 113,000 | 108,480 | |||||||||
Calpine Corp. | ||||||||||||
5.75% | 01/15/25 | 255,000 | 247,669 | |||||||||
5.88% | 01/15/24 | 312,000 | 322,920 | (b) | ||||||||
Caterpillar Inc. | ||||||||||||
4.30% | 05/15/44 | 217,000 | 220,464 | |||||||||
Catholic Health Initiatives | ||||||||||||
2.60% | 08/01/18 | 130,000 | 131,763 | |||||||||
4.35% | 11/01/42 | 129,000 | 125,902 | |||||||||
CBS Corp. | ||||||||||||
3.70% | 08/15/24 | 325,000 | 320,947 | |||||||||
4.90% | 08/15/44 | 210,000 | 207,581 | |||||||||
CBS Outdoor Americas Capital LLC/ CBS Outdoor Americas Capital Corp. | ||||||||||||
5.63% | 02/15/24 | 254,000 | 254,635 | (b) | ||||||||
Cequel Capital Corp. | ||||||||||||
5.13% | 12/15/21 | 573,000 | 548,041 | (b) | ||||||||
CF Industries Inc. | ||||||||||||
5.38% | 03/15/44 | 219,000 | 229,181 | |||||||||
Chesapeake Energy Corp. | ||||||||||||
3.25% | 03/15/16 | 242,000 | 242,605 | |||||||||
Citigroup Inc. | ||||||||||||
1.75% | 05/01/18 | 419,000 | 413,143 | |||||||||
5.50% | 09/13/25 | 624,000 | 679,542 | |||||||||
CMS Energy Corp. | ||||||||||||
4.88% | 03/01/44 | 215,000 | 223,968 | |||||||||
CNA Financial Corp. | ||||||||||||
5.88% | 08/15/20 | 366,000 | 417,389 | |||||||||
CNH Industrial Capital LLC | ||||||||||||
3.38% | 07/15/19 | 199,000 | 187,558 | (b) | ||||||||
3.88% | 11/01/15 | 136,000 | 136,850 | |||||||||
CNOOC Nexen Finance 2014 ULC | ||||||||||||
4.25% | 04/30/24 | 433,000 | 438,851 | |||||||||
Cogeco Cable Inc. | ||||||||||||
4.88% | 05/01/20 | 400,000 | 397,000 | (b) | ||||||||
Comcast Corp. | ||||||||||||
4.20% | 08/15/34 | 210,000 | 208,197 | |||||||||
4.75% | 03/01/44 | 215,000 | 226,820 | |||||||||
Commonwealth Bank of Australia | ||||||||||||
0.75% | 01/15/16 | 559,000 | 559,435 | (b) | ||||||||
Constellation Brands Inc. | ||||||||||||
7.25% | 09/01/16 | 408,000 | 446,760 | |||||||||
Continental Resources Inc. | ||||||||||||
4.90% | 06/01/44 | 207,000 | 201,796 | |||||||||
Corp Andina de Fomento | ||||||||||||
4.38% | 06/15/22 | 646,000 | 690,402 | |||||||||
Corporate Office Properties LP (REIT) | ||||||||||||
3.60% | 05/15/23 | 405,000 | 387,349 | |||||||||
3.70% | 06/15/21 | 209,000 | 206,397 |
Principal Amount | Fair Value | |||||||||||
COX Communications Inc. | ||||||||||||
4.70% | 12/15/42 | $ | 93,000 | $ | 89,697 | (b) | ||||||
Credit Suisse AG | ||||||||||||
2.60% | 05/27/16 | 416,000 | 428,402 | (b) | ||||||||
Crown Americas LLC/Crown Americas Capital Corp. IV | ||||||||||||
4.50% | 01/15/23 | 170,000 | 160,650 | |||||||||
CSX Corp. | ||||||||||||
4.50% | 08/01/54 | 211,000 | 206,048 | |||||||||
CVS Health Corp. | ||||||||||||
2.25% | 08/12/19 | 1,530,000 | 1,514,457 | |||||||||
Daimler Finance North America LLC | ||||||||||||
2.38% | 08/01/18 | 633,000 | 640,724 | (b) | ||||||||
Denbury Resources Inc. | ||||||||||||
6.38% | 08/15/21 | 314,000 | 326,560 | |||||||||
Dexia Credit Local S.A. | ||||||||||||
2.25% | 01/30/19 | 869,000 | 876,715 | (b) | ||||||||
Diageo Capital PLC | ||||||||||||
1.13% | 04/29/18 | 419,000 | 409,329 | |||||||||
Diageo Investment Corp. | ||||||||||||
2.88% | 05/11/22 | 509,000 | 498,988 | |||||||||
DigitalGlobe Inc. | ||||||||||||
5.25% | 02/01/21 | 662,000 | 635,520 | (b) | ||||||||
DIRECTV Holdings LLC | ||||||||||||
4.45% | 04/01/24 | 328,000 | 341,597 | |||||||||
5.15% | 03/15/42 | 226,000 | 228,518 | |||||||||
Dollar General Corp. | ||||||||||||
1.88% | 04/15/18 | 425,000 | 409,322 | |||||||||
4.13% | 07/15/17 | 427,000 | 445,955 | |||||||||
Dominion Resources Inc. | ||||||||||||
1.95% | 08/15/16 | 793,000 | 806,114 | |||||||||
Duke Energy Corp. | ||||||||||||
1.63% | 08/15/17 | 259,000 | 260,021 | |||||||||
3.75% | 04/15/24 | 306,000 | 313,707 | |||||||||
Eaton Corp. | ||||||||||||
2.75% | 11/02/22 | 420,000 | 404,949 | |||||||||
Ecopetrol S.A. | ||||||||||||
5.88% | 05/28/45 | 106,000 | 107,325 | |||||||||
El Paso Pipeline Partners Operating Company LLC | ||||||||||||
4.30% | 05/01/24 | 333,000 | 330,819 | |||||||||
Electricite de France S.A. | ||||||||||||
2.15% | 01/22/19 | 857,000 | 854,612 | (b) | ||||||||
Enbridge Inc. | ||||||||||||
4.50% | 06/10/44 | 209,000 | 203,502 | |||||||||
Endo Finance LLC & Endo Finco Inc. | ||||||||||||
5.38% | 01/15/23 | 149,000 | 142,295 | (b) | ||||||||
Energy Transfer Equity LP | ||||||||||||
5.88% | 01/15/24 | 424,000 | 429,300 | |||||||||
Energy Transfer Partners LP | ||||||||||||
6.50% | 02/01/42 | 352,000 | 400,811 | |||||||||
Ensco PLC | ||||||||||||
4.50% | 10/01/24 | 427,000 | 428,438 | |||||||||
5.75% | 10/01/44 | 215,000 | 217,957 |
See Notes to Schedules of Investments and Notes to Financial Statements.
76
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
ERP Operating LP | ||||||||||||
4.50% | 07/01/44 | $ | 250,000 | $ | 246,183 | |||||||
European Investment Bank | ||||||||||||
4.88% | 01/17/17 | 490,000 | 534,244 | |||||||||
Everest Reinsurance Holdings Inc. | ||||||||||||
4.87% | 06/01/44 | 103,000 | 102,415 | |||||||||
Exelon Corp. | ||||||||||||
4.90% | 06/15/15 | 426,000 | 438,437 | |||||||||
Express Scripts Holding Co. | ||||||||||||
2.25% | 06/15/19 | 835,000 | 823,302 | |||||||||
Five Corners Funding Trust | ||||||||||||
4.42% | 11/15/23 | 465,000 | 486,702 | (b) | ||||||||
Florida Power & Light Co. | ||||||||||||
4.13% | 02/01/42 | 234,000 | 235,169 | |||||||||
Ford Motor Credit Company LLC | ||||||||||||
5.88% | 08/02/21 | 329,000 | 378,292 | |||||||||
Forest Laboratories Inc. | ||||||||||||
5.00% | 12/15/21 | 420,000 | 448,932 | (b) | ||||||||
Freeport-McMoRan Inc. | ||||||||||||
5.45% | 03/15/43 | 182,000 | 185,572 | |||||||||
Fresenius Medical Care US Finance Inc. | ||||||||||||
5.75% | 02/15/21 | 174,000 | 183,570 | (b) | ||||||||
Frontier Communications Corp. | ||||||||||||
7.13% | 03/15/19 | 363,000 | 392,040 | |||||||||
General Motors Co. | ||||||||||||
4.88% | 10/02/23 | 159,000 | 168,143 | |||||||||
General Motors Financial Company Inc. | ||||||||||||
2.63% | 07/10/17 | 171,000 | 171,776 | |||||||||
3.00% | 09/25/17 | 263,000 | 265,630 | |||||||||
3.50% | 07/10/19 | 171,000 | 172,282 | |||||||||
4.38% | 09/25/21 | 438,000 | 447,855 | |||||||||
Gilead Sciences Inc. | ||||||||||||
4.80% | 04/01/44 | 1,328,000 | 1,395,678 | |||||||||
Glencore Funding LLC | ||||||||||||
2.50% | 01/15/19 | 263,000 | 257,456 | (b) | ||||||||
4.13% | 05/30/23 | 388,000 | 384,006 | (b) | ||||||||
4.63% | 04/29/24 | 426,000 | 429,365 | (b) | ||||||||
Grupo Televisa SAB | ||||||||||||
5.00% | 05/13/45 | 209,000 | 206,469 | |||||||||
HCA Inc. | ||||||||||||
4.75% | 05/01/23 | 705,000 | 689,137 | |||||||||
6.50% | 02/15/20 | 85,000 | 92,863 | |||||||||
Hewlett-Packard Co. | ||||||||||||
2.75% | 01/14/19 | 860,000 | 873,461 | |||||||||
Hexion US Finance Corp. | ||||||||||||
6.63% | 04/15/20 | 605,000 | 608,025 | |||||||||
Hughes Satellite Systems Corp. | ||||||||||||
6.50% | 06/15/19 | 186,000 | 197,625 | |||||||||
Humana Inc. | ||||||||||||
3.85% | 10/01/24 | 425,000 | 424,717 | |||||||||
Huntsman International LLC | ||||||||||||
4.88% | 11/15/20 | 405,000 | 398,925 |
Principal Amount | Fair Value | |||||||||||
Hyundai Capital America | ||||||||||||
2.13% | 10/02/17 | $ | 207,000 | $ | 209,507 | (b) | ||||||
Illinois Tool Works Inc. | ||||||||||||
3.50% | 03/01/24 | 431,000 | 438,016 | |||||||||
Ingles Markets Inc. | ||||||||||||
5.75% | 06/15/23 | 379,000 | 380,895 | |||||||||
Intelsat Jackson Holdings S.A. | ||||||||||||
5.50% | 08/01/23 | 424,000 | 404,920 | |||||||||
International Business Machines Corp. | ||||||||||||
3.63% | 02/12/24 | 439,000 | 447,986 | |||||||||
Intesa Sanpaolo S.p.A. | ||||||||||||
5.02% | 06/26/24 | 133,000 | 129,587 | (b) | ||||||||
Invesco Finance PLC | ||||||||||||
3.13% | 11/30/22 | 585,000 | 577,393 | |||||||||
Iron Mountain Inc. | ||||||||||||
6.00% | 08/15/23 | 424,000 | 434,600 | |||||||||
JB Poindexter & Company Inc. | ||||||||||||
9.00% | 04/01/22 | 120,000 | 128,850 | (b) | ||||||||
JBS USA LLC/JBS USA Finance Inc. | ||||||||||||
5.88% | 07/15/24 | 237,000 | 227,520 | (b) | ||||||||
Jefferies Group Inc. | ||||||||||||
5.13% | 01/20/23 | 131,000 | 139,239 | |||||||||
6.50% | 01/20/43 | 142,000 | 156,906 | |||||||||
John Deere Capital Corp. | ||||||||||||
3.35% | 06/12/24 | 417,000 | 419,815 | |||||||||
JPMorgan Chase & Co. | ||||||||||||
3.88% | 09/10/24 | 1,640,000 | 1,607,763 | |||||||||
6.10% | 10/29/49 | 510,000 | 504,262 | (i) | ||||||||
KB Home | ||||||||||||
7.00% | 12/15/21 | 424,000 | 442,020 | |||||||||
Kerr-McGee Corp. | ||||||||||||
6.95% | 07/01/24 | 135,000 | 169,882 | |||||||||
KFW | ||||||||||||
4.50% | 07/16/18 | 169,000 | 187,272 | |||||||||
Kilroy Realty LP | ||||||||||||
4.25% | 08/15/29 | 211,000 | 208,518 | |||||||||
Kinder Morgan Energy Partners LP | ||||||||||||
3.50% | 09/01/23 | 353,000 | 335,214 | |||||||||
5.50% | 03/01/44 | 218,000 | 218,486 | |||||||||
Kinder Morgan Inc. | ||||||||||||
5.63% | 11/15/23 | 499,000 | 530,187 | (b) | ||||||||
Kinross Gold Corp. | ||||||||||||
5.95% | 03/15/24 | 215,000 | 218,693 | (b) | ||||||||
6.88% | 09/01/41 | 73,000 | 74,528 | |||||||||
Korea National Oil Corp. | ||||||||||||
2.88% | 11/09/15 | 358,000 | 365,045 | (b) | ||||||||
L Brands Inc. | ||||||||||||
5.63% | 02/15/22 | 424,000 | 442,020 | |||||||||
L-3 Communications Corp. | ||||||||||||
1.50% | 05/28/17 | 292,000 | 289,860 | |||||||||
3.95% | 05/28/24 | 155,000 | 153,792 | |||||||||
Lamar Media Corp. | ||||||||||||
5.00% | 05/01/23 | 424,000 | 408,100 | |||||||||
Land O’ Lakes Inc. | ||||||||||||
6.00% | 11/15/22 | 119,000 | 127,175 | (b) |
See Notes to Schedules of Investments and Notes to Financial Statements.
77
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Liberty Mutual Group Inc. | ||||||||||||
4.25% | 06/15/23 | $ | 437,000 | $ | 446,623 | (b) | ||||||
Linn Energy LLC | ||||||||||||
6.25% | 11/01/19 | 129,000 | 125,936 | |||||||||
Macquarie Bank Ltd. | ||||||||||||
2.60% | 06/24/19 | 832,000 | 831,325 | (b) | ||||||||
Marathon Petroleum Corp. | ||||||||||||
3.63% | 09/15/24 | 425,000 | 416,015 | |||||||||
4.75% | 09/15/44 | 326,000 | 312,948 | |||||||||
Marsh & McLennan Companies Inc. | ||||||||||||
3.50% | 03/10/25 | 425,000 | 417,950 | |||||||||
Mattel Inc. | ||||||||||||
2.35% | 05/06/19 | 650,000 | 646,546 | |||||||||
MEG Energy Corp. | ||||||||||||
6.50% | 03/15/21 | 254,000 | 260,350 | (b) | ||||||||
Memorial Sloan-Kettering Cancer Center | ||||||||||||
4.13% | 07/01/52 | 165,000 | 159,499 | |||||||||
Metlife Inc. | ||||||||||||
4.72% | 12/15/44 | 170,000 | 171,595 | |||||||||
Mizuho Bank Ltd. | ||||||||||||
2.45% | 04/16/19 | 523,000 | 521,841 | (b) | ||||||||
Monsanto Co. | ||||||||||||
3.38% | 07/15/24 | 208,000 | 206,913 | |||||||||
4.70% | 07/15/64 | 123,000 | 122,421 | |||||||||
Morgan Stanley | ||||||||||||
2.13% | 04/25/18 | 417,000 | 416,956 | |||||||||
2.38% | 07/23/19 | 632,000 | 622,007 | |||||||||
4.10% | 05/22/23 | 499,000 | 497,622 | |||||||||
4.35% | 09/08/26 | 325,000 | 319,416 | |||||||||
4.75% | 03/22/17 | 271,000 | 291,220 | |||||||||
4.88% | 11/01/22 | 406,000 | 428,932 | |||||||||
5.00% | 11/24/25 | 279,000 | 291,781 | |||||||||
Motorola Solutions Inc. | ||||||||||||
4.00% | 09/01/24 | 420,000 | 409,970 | |||||||||
Mylan Inc. | ||||||||||||
5.40% | 11/29/43 | 204,000 | 216,207 | |||||||||
National Agricultural Cooperative Federation | ||||||||||||
4.25% | 01/28/16 | 256,000 | 265,634 | (b) | ||||||||
National Retail Properties Inc. | ||||||||||||
3.90% | 06/15/24 | 347,000 | 347,865 | |||||||||
NCL Corporation Ltd. | ||||||||||||
5.00% | 02/15/18 | 227,000 | 229,270 | |||||||||
Newfield Exploration Co. | ||||||||||||
5.63% | 07/01/24 | 779,000 | 833,530 | |||||||||
5.75% | 01/30/22 | 455,000 | 487,987 | |||||||||
Newmont Mining Corp. | ||||||||||||
4.88% | 03/15/42 | 163,000 | 137,423 | |||||||||
Nexen Energy ULC | ||||||||||||
6.40% | 05/15/37 | 232,000 | 282,713 | |||||||||
NextEra Energy Capital Holdings Inc. | ||||||||||||
2.60% | 09/01/15 | 804,000 | 818,271 | |||||||||
Northeast Utilities | ||||||||||||
1.45% | 05/01/18 | 419,000 | 412,332 |
Principal Amount | Fair Value | |||||||||||
Omnicom Group Inc. | ||||||||||||
3.63% | 05/01/22 | $ | 187,000 | $ | 189,751 | |||||||
Oracle Corp. | ||||||||||||
2.25% | 10/08/19 | 835,000 | 831,547 | |||||||||
3.63% | 07/15/23 | 204,000 | 209,361 | |||||||||
4.50% | 07/08/44 | 208,000 | 210,562 | |||||||||
Owens & Minor Inc. | ||||||||||||
3.88% | 09/15/21 | 425,000 | 425,524 | |||||||||
Pacific Gas & Electric Co. | ||||||||||||
3.40% | 08/15/24 | 640,000 | 635,328 | |||||||||
PacifiCorp | ||||||||||||
6.25% | 10/15/37 | 258,000 | 334,938 | |||||||||
People’s United Bank | ||||||||||||
4.00% | 07/15/24 | 488,000 | 484,538 | |||||||||
Perrigo Company PLC | ||||||||||||
2.30% | 11/08/18 | 443,000 | 440,044 | (b) | ||||||||
Petrobras International Finance Co. | ||||||||||||
3.50% | 02/06/17 | 314,000 | 319,457 | |||||||||
3.88% | 01/27/16 | 187,000 | 191,395 | |||||||||
Petroleos Mexicanos | ||||||||||||
3.50% | 01/30/23 | 278,000 | 266,324 | |||||||||
Philip Morris International Inc. | ||||||||||||
4.13% | 03/04/43 | 214,000 | 202,042 | |||||||||
Pitney Bowes Inc. | ||||||||||||
4.63% | 03/15/24 | 411,000 | 416,613 | |||||||||
Plains Exploration & Production Co. | ||||||||||||
6.50% | 11/15/20 | 132,000 | 144,556 | |||||||||
PNC Bank | ||||||||||||
2.40% | 10/18/19 | 870,000 | 864,747 | |||||||||
Prudential Financial Inc. | ||||||||||||
5.63% | 06/15/43 | 260,000 | 270,972 | (i) | ||||||||
Range Resources Corp. | ||||||||||||
5.75% | 06/01/21 | 268,000 | 281,400 | |||||||||
Regency Energy Partners LP/ Regency Energy Finance Corp. | ||||||||||||
5.00% | 10/01/22 | 222,000 | 218,670 | |||||||||
Revlon Consumer Products Corp. | ||||||||||||
5.75% | 02/15/21 | 1,055,000 | 1,033,900 | |||||||||
Roche Holdings Inc. | ||||||||||||
2.25% | 09/30/19 | 91,000 | 90,625 | (b) | ||||||||
2.88% | 09/29/21 | 455,000 | 454,348 | (b) | ||||||||
3.35% | 09/30/24 | 455,000 | 455,845 | (b) | ||||||||
Rowan Companies Inc. | ||||||||||||
4.75% | 01/15/24 | 300,000 | 301,575 | |||||||||
5.85% | 01/15/44 | 86,000 | 84,639 | |||||||||
Royal Bank of Canada | ||||||||||||
1.20% | 09/19/18 | 717,000 | 713,188 | |||||||||
RSI Home Products Inc. | ||||||||||||
6.88% | 03/01/18 | 408,000 | 425,340 | (b) | ||||||||
Ryder System Inc. | ||||||||||||
2.45% | 09/03/19 | 520,000 | 517,085 | |||||||||
Sabine Pass Liquefaction LLC | ||||||||||||
5.63% | 02/01/21 | 263,000 | 270,232 | |||||||||
Seagate HDD Cayman | ||||||||||||
4.75% | 01/01/25 | 321,000 | 319,395 | (b) |
See Notes to Schedules of Investments and Notes to Financial Statements.
78
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Shell International Finance BV | ||||||||||||
3.40% | 08/12/23 | $ | 1,000,000 | $ | 1,016,239 | |||||||
Sinopec Capital 2013 Ltd. | ||||||||||||
3.13% | 04/24/23 | 335,000 | 315,544 | (b) | ||||||||
Smurfit Kappa Acquisitions | ||||||||||||
4.88% | 09/15/18 | 444,000 | 452,880 | (b) | ||||||||
Spectra Energy Partners LP | ||||||||||||
4.75% | 03/15/24 | 419,000 | 449,408 | |||||||||
Sprint Corp. | ||||||||||||
7.25% | 09/15/21 | 242,000 | 251,982 | (b) | ||||||||
Statoil ASA | ||||||||||||
4.80% | 11/08/43 | 1,000 | 1,084 | |||||||||
Steel Dynamics Inc. | ||||||||||||
5.13% | 10/01/21 | 263,000 | 266,945 | (b) | ||||||||
Sysco Corp. | ||||||||||||
2.35% | 10/02/19 | 425,000 | 425,009 | (c) | ||||||||
3.50% | 10/02/24 | 300,000 | 300,824 | (c) | ||||||||
4.35% | 10/02/34 | 170,000 | 172,471 | (c) | ||||||||
T-Mobile USA Inc. | ||||||||||||
6.25% | 04/01/21 | 100,000 | 101,000 | |||||||||
Talisman Energy Inc. | ||||||||||||
6.25% | 02/01/38 | 175,000 | 195,227 | |||||||||
Tampa Electric Co. | ||||||||||||
4.35% | 05/15/44 | 209,000 | 215,001 | |||||||||
Target Corp. | ||||||||||||
3.50% | 07/01/24 | 479,000 | 479,460 | |||||||||
Teachers Insurance & Annuity Association of America | ||||||||||||
4.90% | 09/15/44 | 425,000 | 433,127 | (b) | ||||||||
Teck Resources Ltd. | ||||||||||||
3.75% | 02/01/23 | 403,000 | 379,295 | |||||||||
5.40% | 02/01/43 | 209,000 | 194,568 | |||||||||
Telecom Italia S.p.A. | ||||||||||||
5.30% | 05/30/24 | 450,000 | 441,000 | (b) | ||||||||
Tenet Healthcare Corp. | ||||||||||||
4.75% | 06/01/20 | 160,000 | 158,800 | |||||||||
6.00% | 10/01/20 | 424,000 | 448,380 | |||||||||
Textron Inc. | ||||||||||||
6.20% | 03/15/15 | 374,000 | 383,426 | |||||||||
The Allstate Corp. | ||||||||||||
5.75% | 08/15/53 | 240,000 | 255,600 | (i) | ||||||||
The Bank of Tokyo-Mitsubishi UFJ Ltd. | ||||||||||||
2.30% | 03/10/19 | 400,000 | 398,867 | (b) | ||||||||
2.35% | 09/08/19 | 655,000 | 649,504 | (b) | ||||||||
The Dow Chemical Co. | ||||||||||||
3.50% | 10/01/24 | 855,000 | 833,964 | |||||||||
4.25% | 10/01/34 | 430,000 | 414,029 | |||||||||
The Goldman Sachs Group Inc. | ||||||||||||
2.38% | 01/22/18 | 510,000 | 515,294 | |||||||||
2.63% | 01/31/19 | 517,000 | 515,670 | |||||||||
2.90% | 07/19/18 | 296,000 | 303,195 | |||||||||
4.00% | 03/03/24 | 392,000 | 394,815 | |||||||||
4.80% | 07/08/44 | 250,000 | 251,389 |
Principal Amount | Fair Value | |||||||||||
The Korea Development Bank | ||||||||||||
3.25% | 03/09/16 | $ | 223,000 | $ | 229,672 | |||||||
4.00% | 09/09/16 | 245,000 | 257,869 | |||||||||
The Potomac Edison Co. | ||||||||||||
5.35% | 11/15/14 | 178,000 | 179,045 | |||||||||
The Southern Co. | ||||||||||||
2.45% | 09/01/18 | 525,000 | 534,010 | |||||||||
The Timken Co. | ||||||||||||
3.88% | 09/01/24 | 321,000 | 315,978 | (b) | ||||||||
The Williams Companies Inc. | ||||||||||||
4.55% | 06/24/24 | 135,000 | 133,552 | |||||||||
5.75% | 06/24/44 | 208,000 | 204,369 | |||||||||
8.75% | 03/15/32 | 168,000 | 213,191 | |||||||||
Time Inc. | ||||||||||||
5.75% | 04/15/22 | 268,000 | 256,610 | (b) | ||||||||
Time Warner Cable Inc. | ||||||||||||
5.88% | 11/15/40 | 281,000 | 330,629 | |||||||||
6.55% | 05/01/37 | 127,000 | 160,211 | |||||||||
Time Warner Inc. | ||||||||||||
5.35% | 12/15/43 | 361,000 | 388,759 | |||||||||
Tops Holding Corp. | ||||||||||||
8.88% | 12/15/17 | 850,000 | 886,125 | |||||||||
Tyco Electronics Group S.A. | ||||||||||||
2.35% | 08/01/19 | 421,000 | 420,079 | |||||||||
Tyson Foods Inc. | ||||||||||||
2.65% | 08/15/19 | 210,000 | 210,393 | |||||||||
3.95% | 08/15/24 | 140,000 | 140,245 | |||||||||
5.15% | 08/15/44 | 140,000 | 144,871 | |||||||||
U.S. Bancorp | ||||||||||||
3.44% | 02/01/16 | 648,000 | 669,429 | |||||||||
Ultra Petroleum Corp. | ||||||||||||
6.13% | 10/01/24 | 175,000 | 167,125 | (b) | ||||||||
Unit Corp. | ||||||||||||
6.63% | 05/15/21 | 409,000 | 410,022 | |||||||||
United Rentals North America Inc. | ||||||||||||
5.75% | 07/15/18 | 408,000 | 425,340 | |||||||||
6.13% | 06/15/23 | 170,000 | 174,675 | |||||||||
Vail Resorts Inc. | ||||||||||||
6.50% | 05/01/19 | 246,000 | 257,377 | |||||||||
Valeant Pharmaceuticals International Inc. | ||||||||||||
6.38% | 10/15/20 | 137,000 | 140,768 | (b) | ||||||||
6.75% | 08/15/18 | 317,000 | 334,435 | (b) | ||||||||
Verizon Communications Inc. | ||||||||||||
1.35% | 06/09/17 | 1,043,000 | 1,037,701 | |||||||||
5.05% | 03/15/34 | 131,000 | 138,796 | |||||||||
5.15% | 09/15/23 | 463,000 | 512,712 | |||||||||
6.55% | 09/15/43 | 244,000 | 304,852 | |||||||||
Viasystems Inc. | ||||||||||||
7.88% | 05/01/19 | 190,000 | 199,025 | (b) | ||||||||
Virgin Media Finance PLC | ||||||||||||
6.00% | 10/15/24 | 233,000 | 233,291 | (b,c) | ||||||||
Virgin Media Secured Finance PLC | ||||||||||||
5.25% | 01/15/21 | 200,000 | 201,000 |
See Notes to Schedules of Investments and Notes to Financial Statements.
79
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Volkswagen Group of America Finance LLC | ||||||||||||
2.13% | 05/23/19 | $ | 843,000 | $ | 836,096 | (b) | ||||||
Wal-Mart Stores Inc. | ||||||||||||
3.30% | 04/22/24 | 347,000 | 350,955 | |||||||||
4.30% | 04/22/44 | 1,000,000 | 1,005,917 | |||||||||
Weatherford International Ltd. | ||||||||||||
5.95% | 04/15/42 | 279,000 | 299,678 | |||||||||
6.75% | 09/15/40 | 107,000 | 125,296 | |||||||||
WellPoint Inc. | ||||||||||||
3.30% | 01/15/23 | 431,000 | 426,123 | |||||||||
Wells Fargo & Co. | ||||||||||||
4.10% | 06/03/26 | 235,000 | 234,174 | |||||||||
5.90% | 12/29/49 | 281,000 | 286,269 | (i) | ||||||||
Windstream Corp. | ||||||||||||
6.38% | 08/01/23 | 409,000 | 394,685 | |||||||||
WPP Finance 2010 | ||||||||||||
3.75% | 09/19/24 | 425,000 | 419,160 | |||||||||
WPX Energy Inc. | ||||||||||||
5.25% | 01/15/17 | 408,000 | 424,320 | |||||||||
Wynn Macau Ltd. | ||||||||||||
5.25% | 10/15/21 | 200,000 | 193,000 | (b) | ||||||||
Xilinx Inc. | ||||||||||||
2.13% | 03/15/19 | 219,000 | 217,645 | |||||||||
XLIT Ltd. | ||||||||||||
5.25% | 12/15/43 | 210,000 | 230,926 | |||||||||
Yamana Gold Inc. | ||||||||||||
4.95% | 07/15/24 | 331,000 | 329,500 | (b) | ||||||||
113,439,284 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations — 5.9% | ||||||||||||
American Tower Trust I (REIT) | ||||||||||||
1.55% | 03/15/43 | 644,000 | 633,465 | (b) | ||||||||
Banc of America Commercial Mortgage Trust 2006-4 | ||||||||||||
5.68% | 07/10/46 | 1,050,000 | 1,130,985 | |||||||||
Banc of America Commercial Mortgage Trust 2007-1 | ||||||||||||
5.48% | 01/15/49 | 905,000 | 951,044 | (i) | ||||||||
Banc of America Commercial Mortgage Trust 2007-4 | ||||||||||||
5.95% | 02/10/51 | 70,228 | 77,121 | (i) | ||||||||
Banc of America Commercial Mortgage Trust 2008-1 | ||||||||||||
6.43% | 02/10/51 | 180,000 | 201,020 | (i) | ||||||||
Banc of America Merrill Lynch Commercial Mortgage Inc. 2005-1 | ||||||||||||
5.47% | 11/10/42 | 170,000 | 172,362 | (i) | ||||||||
Banc of America Merrill Lynch Commercial Mortgage Inc. 2005-6 | ||||||||||||
5.35% | 09/10/47 | 432,446 | 445,230 | (i) | ||||||||
Banc of America Merrill Lynch Commercial Mortgage Trust 2014-520M | ||||||||||||
4.33% | 08/15/46 | 168,401 | 173,666 | (b,i) |
Principal Amount | Fair Value | |||||||||||
Bear Stearns Commercial Mortgage Securities Trust 2005-T18 | ||||||||||||
4.93% | 02/13/42 | $ | 366,008 | $ | 367,842 | (i) | ||||||
Bear Stearns Commercial Mortgage Securities Trust 2006-T22 | ||||||||||||
5.76% | 04/12/38 | 220,000 | 232,304 | (i) | ||||||||
Bear Stearns Commercial Mortgage Securities Trust 2007-PW18 | ||||||||||||
6.09% | 06/11/50 | 190,000 | 211,795 | (i) | ||||||||
Citigroup Commercial Mortgage Trust 2014-GC23 | ||||||||||||
4.66% | 07/10/47 | 424,000 | 379,926 | (b,i) | ||||||||
COMM 2005-LP5 Mortgage Trust | ||||||||||||
4.98% | 05/10/43 | 220,000 | 222,716 | (i) | ||||||||
COMM 2013-LC13 Mortgage Trust | ||||||||||||
4.56% | 08/10/46 | 175,000 | 187,087 | (b,i) | ||||||||
COMM 2014-CR14 Mortgage Trust | ||||||||||||
4.53% | 02/10/47 | 245,000 | 262,035 | (i) | ||||||||
COMM 2014-CR19 Mortgage Trust | ||||||||||||
4.88% | 08/10/47 | 210,000 | 189,460 | (b,i) | ||||||||
4.88% | 08/10/47 | 210,000 | 213,400 | (i) | ||||||||
Credit Suisse Commercial Mortgage Trust 2006-C1 | ||||||||||||
5.64% | 02/15/39 | 740,000 | 775,855 | (i) | ||||||||
Credit Suisse First Boston Mortgage Securities Corp. 2005-9 | ||||||||||||
5.22% | 10/25/35 | 74,897 | — | (**,i,p) | ||||||||
GS Mortgage Securities Corp. II 2012-GCJ9 | ||||||||||||
2.53% | 11/10/45 | 976,233 | 119,333 | (g,i) | ||||||||
GS Mortgage Securities Corp. Trust 2012-ALOH | ||||||||||||
3.55% | 04/10/34 | 280,000 | 287,876 | (b) | ||||||||
GS Mortgage Securities Trust | ||||||||||||
3.00% | 08/10/44 | 420,000 | 433,164 | |||||||||
5.47% | 08/10/44 | 100,000 | 110,738 | (b,i) | ||||||||
GS Mortgage Securities Trust | ||||||||||||
4.26% | 04/10/47 | 220,000 | 230,891 | |||||||||
GS Mortgage Securities Trust | ||||||||||||
4.53% | 09/10/47 | 763,000 | 682,534 | |||||||||
GS Mortgage Securities Trust | ||||||||||||
3.79% | 01/10/31 | 430,000 | 425,777 | (b) | ||||||||
JP Morgan Chase Commercial Mortgage Securities Corp. | ||||||||||||
2.08% | 12/15/47 | 1,282,919 | 123,822 | (g,i) | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust | ||||||||||||
5.34% | 08/12/37 | 661,036 | 668,281 | (i) | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust | ||||||||||||
5.04% | 03/15/46 | 112,184 | 112,453 | (i) |
See Notes to Schedules of Investments and Notes to Financial Statements.
80
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust 2006-LDP8 | ||||||||||||
5.44% | 05/15/45 | $ | 380,000 | $ | 407,111 | |||||||
JP Morgan Chase Commercial Mortgage Securities Trust 2007-CB18 | ||||||||||||
5.44% | 06/12/47 | 290,069 | 312,452 | |||||||||
JPMBB Commercial Mortgage Securities Trust 2013-C12 | ||||||||||||
4.16% | 07/15/45 | 125,000 | 129,947 | (i) | ||||||||
JPMBB Commercial Mortgage Securities Trust 2013-C15 | ||||||||||||
5.25% | 11/15/45 | 170,000 | 180,846 | (i) | ||||||||
JPMBB Commercial Mortgage Securities Trust 2013-C17 | ||||||||||||
5.05% | 01/15/47 | 317,000 | 330,367 | (i) | ||||||||
JPMBB Commercial Mortgage Securities Trust 2014-C18 | ||||||||||||
4.97% | 02/15/47 | 210,000 | 217,222 | (i) | ||||||||
LB-UBS Commercial Mortgage Trust 2004-C8 | ||||||||||||
0.87% | 12/15/39 | 626,544 | 1,304 | (b,g,i) | ||||||||
LB-UBS Commercial Mortgage Trust 2005-C5 | ||||||||||||
4.95% | 09/15/30 | 210,641 | 214,202 | |||||||||
LB-UBS Commercial Mortgage Trust 2006-C1 | ||||||||||||
5.16% | 02/15/31 | 450,000 | 466,303 | |||||||||
LB-UBS Commercial Mortgage Trust 2006-C4 | ||||||||||||
6.03% | 06/15/38 | 202,777 | 215,787 | (i) | ||||||||
LB-UBS Commercial Mortgage Trust 2007-C6 | ||||||||||||
6.11% | 07/15/40 | 465,000 | 508,611 | (i) | ||||||||
6.11% | 07/15/40 | 530,000 | 579,880 | (b) | ||||||||
MASTR Alternative Loan Trust 2003-5 | ||||||||||||
5.00% | 08/25/18 | 38,750 | 2,895 | (g) | ||||||||
ML-CFC Commercial Mortgage Trust 2006-3 | ||||||||||||
5.46% | 07/12/46 | 1,029,000 | 1,101,689 | (i) | ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10 | ||||||||||||
4.22% | 07/15/46 | 396,000 | 391,019 | (i) | ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 | ||||||||||||
3.39% | 10/15/47 | 210,349 | 169,111 | (b) | ||||||||
Morgan Stanley Capital I Trust 2005-T17 | ||||||||||||
4.84% | 12/13/41 | 630,000 | 634,348 | (i) | ||||||||
Morgan Stanley Capital I Trust 2006-IQ11 | ||||||||||||
5.83% | 10/15/42 | 270,000 | 253,800 | (i) | ||||||||
Morgan Stanley Capital I Trust 2006-T21 | ||||||||||||
5.16% | 10/12/52 | 350,000 | 362,443 | (i) | ||||||||
5.27% | 10/12/52 | 150,000 | 156,118 | (i) |
Principal Amount | Fair Value | |||||||||||
Morgan Stanley Capital I Trust 2006-T23 | ||||||||||||
5.98% | 08/12/41 | $ | 180,000 | $ | 191,919 | (i) | ||||||
Morgan Stanley Capital I Trust 2007-IQ16 | ||||||||||||
6.29% | 12/12/49 | 190,000 | 209,967 | (i) | ||||||||
Morgan Stanley Capital I Trust 2008-T29 | ||||||||||||
6.45% | 01/11/43 | 250,000 | 280,390 | (i) | ||||||||
Morgan Stanley Capital I Trust 2012-C4 | ||||||||||||
5.21% | 03/15/45 | 190,000 | 208,322 | (b,i) | ||||||||
Wells Fargo Mortgage Backed Securities Trust 2006-3 | ||||||||||||
5.50% | 03/25/36 | 119,942 | 3,741 | |||||||||
WFRBS Commercial Mortgage Trust 2013-C17 | ||||||||||||
4.26% | 12/15/46 | 240,000 | 251,723 | |||||||||
5.30% | 12/15/46 | 175,000 | 172,763 | (b,i) | ||||||||
WFRBS Commercial Mortgage Trust 2014-C19 | ||||||||||||
4.72% | 03/15/47 | 300,000 | 316,502 | (i) | ||||||||
WFRBS Commercial Mortgage Trust 2014-C22 | ||||||||||||
3.91% | 09/15/57 | 254,088 | 213,744 | (b,i) | ||||||||
WFRBS Commercial Mortgage Trust 2014-LC14 | ||||||||||||
4.35% | 03/15/47 | 544,000 | 573,529 | (i) | ||||||||
19,080,237 | ||||||||||||
Sovereign Bonds — 0.7% | ||||||||||||
Government of Brazil | ||||||||||||
4.25% | 01/07/25 | 236,000 | 233,640 | |||||||||
Government of Chile | ||||||||||||
3.63% | 10/30/42 | 148,000 | 129,870 | |||||||||
Government of Colombia | ||||||||||||
2.63% | 03/15/23 | 327,000 | 300,840 | |||||||||
5.63% | 02/26/44 | 143,000 | 157,300 | |||||||||
Government of Mexico | ||||||||||||
4.00% | 10/02/23 | 214,000 | 221,169 | |||||||||
4.75% | 03/08/44 | 466,000 | 462,505 | |||||||||
Government of Panama | ||||||||||||
4.00% | 09/22/24 | 203,000 | 202,493 | |||||||||
Government of Philippines | ||||||||||||
4.20% | 01/21/24 | 200,000 | 211,000 | |||||||||
Government of Turkey | ||||||||||||
3.25% | 03/23/23 | 296,000 | 266,400 | |||||||||
6.63% | 02/17/45 | 147,000 | 164,456 | |||||||||
2,349,673 | ||||||||||||
Municipal Bonds and Notes — 0.7% | ||||||||||||
American Municipal Power Inc. | ||||||||||||
6.27% | 02/15/50 | 295,000 | 362,000 | |||||||||
Denver City & County School District No 1 | ||||||||||||
4.24% | 12/15/37 | 370,000 | 359,178 |
See Notes to Schedules of Investments and Notes to Financial Statements.
81
Table of Contents
Income Fund
Schedule of Investments | September 30, 2014 |
Principal Amount | Fair Value | |||||||||||
Municipal Electric Authority of Georgia | ||||||||||||
6.64% | 04/01/57 | $ | 336,000 | $ | 421,391 | |||||||
Port Authority of New York & New Jersey | ||||||||||||
4.46% | 10/01/62 | 525,000 | 523,393 | |||||||||
South Carolina State Public Service Authority | ||||||||||||
6.45% | 01/01/50 | 235,000 | 309,307 | |||||||||
State of California | ||||||||||||
5.70% | 11/01/21 | 290,000 | 341,371 | |||||||||
2,316,640 | ||||||||||||
FNMA — 0.0%* | ||||||||||||
Lehman TBA | ||||||||||||
5.50% | TBA | 333,269 | — | (**,l,p) | ||||||||
Total Bonds and Notes | 319,989,868 | |||||||||||
Number of Shares | Fair Value | |||||||||||
Domestic Equity — 0.1% | ||||||||||||
Preferred Stock — 0.1% | ||||||||||||
Wells Fargo & Co. | 13,044 | 334,318 | ||||||||||
Total Investments in Securities | 320,324,186 | |||||||||||
Short-Term Investments — 5.9% | ||||||||||||
State Street Institutional U.S. Government Money Market Fund - Premier Class 0.00% | 18,979,740 | (d,h,m) | ||||||||||
Total Investments | 339,303,926 | |||||||||||
Liabilities in Excess of Other | (16,030,863 | ) | ||||||||||
|
| |||||||||||
NET ASSETS — 100.0% | $ | 323,273,063 | ||||||||||
|
|
Other Information: |
The Fund had the following long futures contracts open at September 30, 2014:
Description | Expiration date | Number of Contracts | Current Notional Value | Unre alized Depre ciation | ||||||||||||||||
2 Yr. U.S. Treasury Notes Futures | December 2014 | 129 | $ | 28,230,844 | $ | (3,620) |
The Fund had the following short futures contracts open at September 30, 2014:
Description | Expiration date | Number of Contracts | Current Notional Value | Unre alized Appre ciation (Depre ciation) | ||||||||||||||||
U.S. Long Bond Futures | December 2014 | 174 | $ | (23,995,688 | ) | $ | (47,958 | ) | ||||||||||||
Ultra Long-Term U.S. Treasury Bond Futures | December 2014 | 13 | (1,982,500 | ) | (13,902 | ) | ||||||||||||||
5 Yr. U.S. Treasury Notes Futures | December 2014 | 127 | (15,018,742 | ) | (43,874 | ) | ||||||||||||||
10 Yr. U.S. Treasury Notes Futures | December 2014 | 72 | (8,974,125 | ) | 7,711 | |||||||||||||||
|
| |||||||||||||||||||
$ | (98,023 | ) | ||||||||||||||||||
|
| |||||||||||||||||||
$ | (101,643 | ) | ||||||||||||||||||
|
|
See Notes to Schedules of Investments and Notes to Financial Statements.
82
Table of Contents
Notes to Schedules of Investments | September 30, 2014 |
The views expressed in this document reflect our judgment as of the publication date and are subject to change at any time without notice. The securities cited may not be representative of the Funds’ future investments and should not be construed as a recommendation to purchase or sell a particular security. See each Fund’s summary prospectus and the Funds’ statutory prospectus for complete descriptions of investment objectives, policies, risks and permissible investments.
(a) | Non-income producing security. |
(b) | Pursuant to Rule 144A of the Securities Act of 1933, as amended, these securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2014, these securities amounted to $23,406,871 and $28,995,673 or 2.80% and 8.97% of the net assets of the GE Institutional Strategic Investment Fund and GE Institutional Income Fund, respectively. These securities have been determined to be liquid using procedures established by the Fund’s Board of Trustees. |
(c) | Settlement is on a delayed delivery or when-issued basis with final maturity to be announced (TBA) in the future. |
(d) | Coupon amount represents effective yield. |
(e) | State Street Corp. is the parent company of State Street Bank & Trust Co., the Fund’s sub-administrator, custodian and accounting agent. |
(f) | Principal only security. These securities represent the right to receive the monthly principal payments on an underlying pool of mortgages. No payments of interest on the pool are passed through to the “principal only” holder. |
(g) | Interest only security. These securities represent the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
(h) | At September 30, 2014, all or a portion of this security was pledged to cover collateral requirements for futures and/or TBA’s. |
(i) | Variable or floating rate security. The stated rate represents the rate at September 30, 2014. |
(j) | Step coupon bond. |
(k) | General Electric Co. is the parent company of GE Asset Management Incorporated, the Fund’s investment adviser. |
(l) | Security is in default. |
(m) | Sponsored by SSgA Funds Management, Inc., an affiliate of State Street Bank & Trust Co., the Fund’s sub-administrator, custodian and accounting agent. |
(n) | Sponsored by SSgA Funds Management, Inc., the Fund’s sub-advisor and an affiliate of State Street Bank & Trust Co., the Fund’s sub-administrator, custodian and accounting agent. |
(o) | Represents a payment-in-kind security which may pay all or a portion of interest in additional par. |
(p) | Security is fair valued by the Valuation Committee, in accordance with the procedures approved by the Board of Trustees. |
† | Percentages are based on net assets as of September 30, 2014. |
†† | Security traded on different exchanges. |
* | Less than 0.05%. |
** | Amount is less than $0.50. |
*** | Less than 0.005%. |
Abbreviations:
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
NVDR | Non-Voting Depositary Receipt | |
REIT | Real Estate Investment Trust | |
REMIC | Real Estate Mortgage Investment Conduit | |
SPDR | Standard and Poor’s Depositary Receipt | |
STRIPS | Separate Trading of Registered Interest and Principal of Security | |
TBA | To Be Announced |
83
Table of Contents
Selected data based on a share outstanding throughout the fiscal years indicated
U.S. Equity Fund | ||||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||||
Inception date | 11/25/97 | 1/3/01 | ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.59 | $ | 12.90 | $ | 10.07 | $ | 10.50 | $ | 10.18 | $ | 15.96 | $ | 13.12 | $ | 10.24 | $ | 10.67 | $ | 10.24 | ||||||||||||||||||||||
Income/(loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.22 | * | 0.22 | * | 0.16 | * | 0.13 | 0.13 | 0.19 | * | 0.18 | * | 0.14 | * | 0.10 | * | 0.11 | * | ||||||||||||||||||||||||
Net realized and unrealized gains/(losses) on investments | 2.60 | * | 2.67 | * | 2.80 | * | (0.42) | 0.32 | 2.67 | * | 2.83 | * | 2.84 | * | (0.41) | * | 0.32 | * | ||||||||||||||||||||||||
Total income/(loss) from investment operations | 2.82 | 2.89 | 2.96 | (0.29) | 0.45 | 2.86 | 3.01 | 2.98 | (0.31) | 0.43 | ||||||||||||||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.22 | 0.20 | 0.13 | 0.14 | 0.13 | — | 0.17 | 0.10 | 0.12 | — | ||||||||||||||||||||||||||||||||
Net realized gains | 0.87 | — | — | — | — | 0.87 | — | — | — | — | ||||||||||||||||||||||||||||||||
Total distributions | 1.09 | 0.20 | 0.13 | 0.14 | 0.13 | 0.87 | 0.17 | 0.10 | 0.12 | — | ||||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 17.32 | $ | 15.59 | $ | 12.90 | $ | 10.07 | $ | 10.50 | $ | 17.95 | $ | 15.96 | $ | 13.12 | $ | 10.24 | $ | 10.67 | ||||||||||||||||||||||
TOTAL RETURN (a) | 18.88% | 22.76% | 29.68% | (2.92)% | 4.40% | 18.55% | 23.23% | 29.33% | (3.08)% | 4.20% | ||||||||||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 836,752 | $ | 767,603 | $ | 658,065 | $ | 522,532 | $ | 421,381 | $ | 117 | $ | 84 | $ | 3,133 | $ | 2,402 | $ | 2,682 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.36% | 1.60% | 1.39% | 1.13% | 1.24% | 1.11% | 1.33% | 1.14% | 0.87% | 1.11% | ||||||||||||||||||||||||||||||||
Net expenses | 0.36% | (b) | 0.36% | (b) | 0.36% | (b) | 0.36% | (b) | 0.36% | (b) | 0.61% | (b) | 0.61% | (b) | 0.61% | (b) | 0.61% | (b) | 0.61% | (b) | ||||||||||||||||||||||
Gross expenses | 0.36% | 0.36% | 0.37% | 0.37% | 0.37% | 0.61% | 0.61% | 0.62% | 0.62% | 0.62% | ||||||||||||||||||||||||||||||||
Portfolio turnover rate | 38% | 37% | 71% | 44% | 41% | 38% | 37% | 71% | 44% | 41% |
See Notes to Financial Highlights and Notes to Financial Statements.
84
Table of Contents
S&P 500 Index Fund | ||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||
11/25/97 | 9/30/05 | |||||||||||||||||||||||||||||||||||||||
$ | 16.01 | $ | 13.71 | $ | 10.91 | $ | 10.98 | $ | 10.18 | $ | 16.31 | $ | 13.97 | $ | 10.86 | $ | 10.93 | $ | 10.14 | |||||||||||||||||||||
0.32 | * | 0.30 | * | 0.26 | * | 0.23 | * | 0.21 | * | 0.28 | * | 0.27 | * | 0.22 | * | 0.20 | * | 0.17 | * | |||||||||||||||||||||
| 2.76 | * | 2.27 | * | 2.95 | * | (0.09) | * | 0.80 | * | 2.83 | * | 2.31 | * | 2.98 | * | (0.09) | * | 0.80 | * | ||||||||||||||||||||
| 3.08 |
| 2.57 | 3.21 | 0.14 | 1.01 | 3.11 | 2.58 | 3.20 | 0.11 | 0.97 | |||||||||||||||||||||||||||||
0.25 | 0.27 | 0.41 | 0.21 | 0.21 | 0.22 | 0.24 | 0.09 | 0.18 | 0.18 | |||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
0.25 | 0.27 | 0.41 | 0.21 | 0.21 | 0.22 | 0.24 | 0.09 | 0.18 | 0.18 | |||||||||||||||||||||||||||||||
$ | 18.84 | $ | 16.01 | $ | 13.71 | $ | 10.91 | $ | 10.98 | $ | 19.20 | $ | 16.31 | $ | 13.97 | $ | 10.86 | $ | 10.93 | |||||||||||||||||||||
19.54% | 19.11% | 30.07% | 1.07% | 9.96% | 19.28% | 18.81% | 29.65% | 0.88% | 9.60% | |||||||||||||||||||||||||||||||
$ | 32,326 |
| $ | 42,753 | $ | 31,997 | $ | 25,664 | $ | 36,361 | $ | 7,150 | $ | 5,922 | $ | 4,496 | $ | 1,742 | $ | 30,146 | ||||||||||||||||||||
1.79% | 2.05% | 2.03% | 1.86% | 1.97% | 1.52% | 1.80% | 1.76% | 1.60% | 1.67% | |||||||||||||||||||||||||||||||
0.19% | (b) | 0.15% | (b) | 0.15% | (b) | 0.15% | (b) | 0.15% | (b) | 0.44% | (b) | 0.40% | (b) | 0.40% | (b) | 0.36% | (b) | 0.40% | (b) | |||||||||||||||||||||
0.19% | 0.15% | 0.16% | 0.16% | 0.15% | 0.44% | 0.40% | 0.41% | 0.40% | 0.40% | |||||||||||||||||||||||||||||||
16% | 2% | 11% | 4% | 13% | 16% | 2% | 11% | 4% | 13% |
See Notes to Financial Highlights and Notes to Financial Statements.
85
Table of Contents
Financial Highlights
Selected data based on a share outstanding throughout the fiscal years indicated
U.S. Large-Cap Core Equity Fund | ||||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||||
Inception date | 2/2/00 | 9/30/05 | ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.64 | $ | 10.94 | $ | 8.76 | $ | 9.11 | $ | 8.68 | $ | 11.56 | $ | 10.87 | $ | 8.71 | $ | 9.06 | $ | 8.65 | ||||||||||||||||||||||
Income/(loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.17 | 0.21 | 0.18 | 0.16 | * | 0.17 | 0.13 | 0.17 | 0.17 | 0.14 | * | 0.15 | * | |||||||||||||||||||||||||||||
Net realized and unrealized gains/(losses) on investments | 1.73 | 1.94 | 2.25 | (0.35) | * | 0.40 | 1.73 | 1.94 | 2.22 | (0.35) | * | 0.40 | * | |||||||||||||||||||||||||||||
Total income/(loss) from investment operations | 1.90 | 2.15 | 2.43 | (0.19) | 0.57 | 1.86 | 2.11 | 2.39 | (0.21) | 0.55 | ||||||||||||||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.15 | 0.25 | 0.14 | 0.16 | 0.14 | 0.12 | 0.22 | 0.12 | 0.14 | 0.14 | ||||||||||||||||||||||||||||||||
Net realized gains | 2.24 | 1.20 | 0.11 | — | — | 2.24 | 1.20 | 0.11 | — | — | ||||||||||||||||||||||||||||||||
Total distributions | 2.39 | 1.45 | 0.25 | 0.16 | 0.14 | 2.36 | 1.42 | 0.23 | 0.14 | 0.14 | ||||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 11.15 | $ | 11.64 | $ | 10.94 | $ | 8.76 | $ | 9.11 | $ | 11.06 | $ | 11.56 | $ | 10.87 | $ | 8.71 | $ | 9.06 | ||||||||||||||||||||||
TOTAL RETURN (a) | 18.60% | 22.84% | 28.27% | (2.32)% | 6.64% | 18.32% | 22.56% | 27.88% | (2.54)% | 6.35% | ||||||||||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 95,740 | $ | 90,668 | $ | 185,990 | $ | 159,556 | $ | 121,524 | $ | 4,391 | $ | 3,583 | $ | 3,191 | $ | 2,769 | $ | 2,549 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.46% | 1.78% | 1.80% | 1.63% | 1.91% | 1.21% | 1.44% | 1.55% | 1.37% | 1.72% | ||||||||||||||||||||||||||||||||
Net expenses | 0.43% | (b) | 0.43% | (b) | 0.39% | (b) | 0.39% | (b) | 0.41% | (b) | 0.68% | (b) | 0.68% | (b) | 0.64% | (b) | 0.64% | (b) | 0.66% | (b) | ||||||||||||||||||||||
Gross expenses | 0.43% | 0.43% | 0.39% | 0.40% | 0.41% | 0.68% | 0.68% | 0.64% | 0.65% | 0.66% | ||||||||||||||||||||||||||||||||
Portfolio turnover rate | 45% | 44% | 83% | 44% | 56% | 45% | 44% | 83% | 44% | 56% |
See Notes to Financial Highlights and Notes to Financial Statements.
86
Table of Contents
Premier Growth Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||
10/29/99 | 1/3/01 | |||||||||||||||||||||||||||||||||||||||
$ | 12.92 | $ | 10.83 | $ | 8.05 | $ | 8.03 | $ | 7.60 | $ | 12.80 | $ | 10.74 | $ | 7.98 | $ | 7.95 | $ | 7.53 | |||||||||||||||||||||
0.13 | * | 0.14 | * | 0.10 | * | 0.06 | 0.04 | * | 0.10 | * | 0.11 | * | 0.07 | * | 0.04 | * | 0.02 | * | ||||||||||||||||||||||
| 2.38 | * | 2.09 | * | 2.77 | * | (0.01) | 0.44 | * | 2.36 | * | 2.07 | * | 2.76 | * | (0.01) | * | 0.45 | * | |||||||||||||||||||||
| 2.51 |
| 2.23 | 2.87 | 0.05 | 0.48 | 2.46 | 2.18 | 2.83 | 0.03 | 0.47 | |||||||||||||||||||||||||||||
0.11 | 0.14 | 0.09 | 0.03 | 0.05 | 0.08 | 0.12 | 0.07 | — | 0.05 | |||||||||||||||||||||||||||||||
0.36 | — | — | — | — | 0.36 | — | — | — | — | |||||||||||||||||||||||||||||||
0.47 | 0.14 | 0.09 | 0.03 | 0.05 | 0.44 | 0.12 | 0.07 | — | 0.05 | |||||||||||||||||||||||||||||||
$ | 14.96 | $ | 12.92 | $ | 10.83 | $ | 8.05 | $ | 8.03 | $ | 14.82 | $ | 12.80 | $ | 10.74 | $ | 7.98 | $ | 7.95 | |||||||||||||||||||||
19.80% | 20.85% | 35.95% | 0.64% | 6.39% | 19.56% | 20.49% | 35.65% | 0.38% | 6.20% | |||||||||||||||||||||||||||||||
$ | 428,536 |
| $ | 369,286 | $ | 257,923 | $ | 221,273 | $ | 246,218 | $ | 3,836 | $ | 3,216 | $ | 2,148 | $ | 1,692 | $ | 3,157 | ||||||||||||||||||||
0.94% | 1.20% | 0.98% | 0.66% | 0.55% | 0.69% | 0.93% | 0.73% | 0.41% | 0.30% | |||||||||||||||||||||||||||||||
0.37% | (b) | 0.38% | (b) | 0.38% | (b) | 0.38% | (b) | 0.38% | (b) | 0.62% | (b) | 0.63% | (b) | 0.63% | (b) | 0.63% | (b) | 0.63% | (b) | |||||||||||||||||||||
0.37% | 0.38% | 0.38% | 0.38% | 0.38% | 0.62% | 0.63% | 0.63% | 0.63% | 0.63% | |||||||||||||||||||||||||||||||
21% | 25% | 15% | 26% | 21% | 21% | 25% | 15% | 26% | 21% |
See Notes to Financial Highlights and Notes to Financial Statements.
87
Table of Contents
Financial Highlights
Selected data based on a share outstanding throughout the fiscal years indicated
Small-Cap Equity Fund | ||||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||||
Inception date | 8/3/98 | 9/30/05 | ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 20.19 | $ | 16.80 | $ | 13.05 | $ | 12.61 | $ | 11.11 | $ | 20.27 | $ | 16.87 | $ | 13.11 | $ | 12.69 | $ | 11.17 | ||||||||||||||||||||||
Income/(loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.01 | * | 0.07 | * | 0.04 | 0.05 | 0.03 | (0.04) | * | 0.02 | * | 0.00 | (c) | 0.01 | * | — | ||||||||||||||||||||||||||
Net realized and unrealized gains/(losses) on investments | 1.12 | * | 4.69 | * | 3.86 | 0.40 | 1.51 | 1.12 | * | 4.72 | * | 3.87 | 0.41 | * | 1.52 | * | ||||||||||||||||||||||||||
Total income from investment operations | 1.13 | 4.76 | 3.90 | 0.45 | 1.54 | 1.08 | 4.74 | 3.87 | 0.42 | 1.52 | ||||||||||||||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.02 | 0.07 | 0.06 | 0.01 | 0.04 | — | 0.04 | 0.02 | — | 0.00 | (c) | |||||||||||||||||||||||||||||||
Net realized gains | 1.98 | 1.30 | 0.09 | — | — | 1.98 | 1.30 | 0.09 | — | — | ||||||||||||||||||||||||||||||||
Total distributions | 2.00 | 1.37 | 0.15 | 0.01 | 0.04 | 1.98 | 1.34 | 0.11 | 0.00 | (c) | 0.00 | (c) | ||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 19.32 | $ | 20.19 | $ | 16.80 | $ | 13.05 | $ | 12.61 | $ | 19.37 | $ | 20.27 | $ | 16.87 | $ | 13.11 | $ | 12.69 | ||||||||||||||||||||||
TOTAL RETURN (a) | 5.61% | 30.57% | 30.03% | 3.53% | 13.91% | 5.32% | 30.26% | 29.63% | 3.31% | 13.61% | ||||||||||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,264,304 | $ | 1,249,146 | $ | 966,702 | $ | 759,833 | $ | 722,935 | $ | 71 | $ | 87 | $ | 44 | $ | 32 | $ | 28 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.07% | 0.37% | 0.27% | 0.31% | 0.24% | (0.19)% | 0.09% | 0.04% | 0.07% | (0.01)% | ||||||||||||||||||||||||||||||||
Net expenses | 0.88% | (b) | 0.88% | (b) | 0.89% | (b) | 0.89% | (b) | 0.89% | (b) | 1.13% | (b) | 1.13% | (b) | 1.14% | (b) | 1.13% | (b) | 1.14% | (b) | ||||||||||||||||||||||
Gross expenses | 0.88% | 0.89% | 0.90% | 0.89% | 0.91% | 1.13% | 1.14% | 1.15% | 1.14% | 1.16% | ||||||||||||||||||||||||||||||||
Portfolio turnover rate | 37% | 37% | 36% | 46% | 46% | 37% | 37% | 36% | 46% | 46% |
See Notes to Financial Highlights and Notes to Financial Statements.
88
Table of Contents
International Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||
11/25/97 | 1/3/01 | |||||||||||||||||||||||||||||||||||||||
$ | 12.71 |
| $ | 10.68 | $ | 9.25 | $ | 10.90 | $ | 10.90 | $ | 12.61 | $ | 10.59 | $ | 9.17 | $ | 10.80 | $ | 10.83 | ||||||||||||||||||||
0.30 | * | 0.18 | * | 0.20 | * | 0.23 | 0.20 | * | 0.26 | * | 0.15 | * | 0.14 | * | 0.19 | 0.17 | * | |||||||||||||||||||||||
| (0.08) | * | 2.09 | * | 1.47 | * | (1.70) | 0.01 | * | (0.08) | * | 2.07 | * | 1.49 | * | (1.68) | 0.00 | * | ||||||||||||||||||||||
| 0.22 |
| 2.27 | 1.67 | (1.47) | 0.21 | 0.18 | 2.22 | 1.63 | (1.49) | 0.17 | |||||||||||||||||||||||||||||
0.21 | 0.24 | 0.24 | 0.18 | 0.21 | 0.17 | 0.20 | 0.21 | 0.14 | 0.20 | |||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
0.21 | 0.24 | 0.24 | 0.18 | 0.21 | 0.17 | 0.20 | 0.21 | 0.14 | 0.20 | |||||||||||||||||||||||||||||||
$ | 12.72 | $ | 12.71 | $ | 10.68 | $ | 9.25 | $ | 10.90 | $ | 12.62 | $ | 12.61 | $ | 10.59 | $ | 9.17 | $ | 10.80 | |||||||||||||||||||||
1.69% | 21.57% | �� | 18.43% | (13.83)% | 1.93% | 1.42% | 21.19% | 18.11% | (14.01)% | 1.57% | ||||||||||||||||||||||||||||||
$ | 1,724,647 |
| $ | 1,836,243 | $ | 1,984,087 | $ | 1,876,948 | $ | 2,289,643 | $ | 92,749 | $ | 101,204 | $ | 119,576 | $ | 344,024 | $ | 486,064 | ||||||||||||||||||||
2.29% | 1.57% | 2.03% | 1.95% | 1.85% | 2.03% | 1.31% | 1.39% | 1.68% | 1.64% | |||||||||||||||||||||||||||||||
0.56% | (b) | 0.56% | (b) | 0.56% | (b) | 0.55% | (b) | 0.56% | (b) | 0.81% | (b) | 0.81% | (b) | 0.81% | (b) | 0.80% | (b) | 0.81% | (b) | |||||||||||||||||||||
0.56% | 0.56% | 0.56% | 0.56% | 0.56% | 0.81% | 0.81% | 0.81% | 0.81% | 0.81% | |||||||||||||||||||||||||||||||
39% | 47% | 50% | 41% | 49% | 39% | 47% | 50% | 41% | 49% |
See Notes to Financial Highlights and Notes to Financial Statements.
89
Table of Contents
Financial Highlights
Selected data based on a share outstanding throughout the fiscal years indicated
Strategic Investment Fund | ||||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||||
Inception date | 10/29/99 | 9/30/05 | ||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.09 | $ | 11.88 | $ | 10.23 | $ | 10.71 | $ | 10.18 | $ | 12.99 | $ | 11.80 | $ | 10.17 | $ | 10.58 | $ | 10.12 | ||||||||||||||||||||||
Income/(loss) from investment operations: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.25 | * | 0.22 | * | 0.22 | * | 0.22 | 0.18 | 0.21 | * | 0.18 | * | 0.18 | * | 0.19 | * | 0.11 | * | ||||||||||||||||||||||||
Net realized and unrealized gains/(losses) on investments | 0.90 | * | 1.22 | * | 1.66 | * | (0.51) | 0.52 | 0.90 | * | 1.21 | * | 1.66 | * | (0.50) | * | 0.50 | * | ||||||||||||||||||||||||
Total income/(loss) from investment operations | 1.15 | 1.44 | 1.88 | (0.29) | 0.70 | 1.11 | 1.39 | 1.84 | (0.31) | 0.61 | ||||||||||||||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.22 | 0.23 | 0.23 | 0.19 | 0.17 | 0.18 | 0.20 | 0.21 | 0.10 | 0.15 | ||||||||||||||||||||||||||||||||
Net realized gains | 0.48 | — | — | — | — | 0.48 | — | — | — | — | ||||||||||||||||||||||||||||||||
Total distributions | 0.70 | 0.23 | 0.23 | 0.19 | 0.17 | 0.66 | 0.20 | 0.21 | 0.10 | 0.15 | ||||||||||||||||||||||||||||||||
Net asset value, end of period | $ | 13.54 | $ | 13.09 | $ | 11.88 | $ | 10.23 | $ | 10.71 | $ | 13.44 | $ | 12.99 | $ | 11.80 | $ | 10.17 | $ | 10.58 | ||||||||||||||||||||||
TOTAL RETURN (a) | 8.98% | 12.34% | 18.67% | (2.85)% | 6.89% | 8.79% | 11.98% | 18.39% | (3.04)% | 6.09% | ||||||||||||||||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 835,338 | $ | 827,998 | $ | 742,918 | $ | 629,230 | $ | 659,553 | $ | 62 | $ | 57 | $ | 61 | $ | 34 | $ | 37 | ||||||||||||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.84% | 1.74% | 1.93% | 1.95% | 1.83% | 1.60% | 1.48% | 1.69% | 1.70% | 1.17% | ||||||||||||||||||||||||||||||||
Net expenses | 0.35% | (b) | 0.34% | (b) | 0.34% | (b) | 0.34% | (b) | 0.32% | (b) | 0.60% | (b) | 0.59% | (b) | 0.59% | (b) | 0.59% | (b) | 0.57% | (b) | ||||||||||||||||||||||
Gross expenses | 0.35% | 0.36% | 0.36% | 0.36% | 0.36% | 0.60% | 0.61% | 0.61% | 0.61% | 0.61% | ||||||||||||||||||||||||||||||||
Portfolio turnover rate | 185% | 153% | 188% | 187% | 152% | 185% | 153% | 188% | 187% | 152% |
See Notes to Financial Highlights and Notes to Financial Statements.
90
Table of Contents
Income Fund | ||||||||||||||||||||||||||||||||||||||||
Investment Class | Service Class | |||||||||||||||||||||||||||||||||||||||
9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | 9/30/14 | 9/30/13 | 9/30/12 | 9/30/11 | 9/30/10 | |||||||||||||||||||||||||||||||
11/21/97 | 9/30/05 | |||||||||||||||||||||||||||||||||||||||
$ | 9.34 | $ | 10.01 | $ | 9.73 | $ | 9.51 | $ | 9.06 | $ | 9.55 | $ | 10.23 | $ | 9.94 | $ | 9.70 | $ | 9.25 | |||||||||||||||||||||
0.26 | 0.21 | 0.25 | 0.34 | 0.35 | 0.24 | 0.19 | 0.24 | 0.32 | 0.32 | * | ||||||||||||||||||||||||||||||
| 0.17 |
| (0.32) | 0.44 | 0.22 | 0.47 | 0.17 | (0.33) | 0.44 | 0.24 | 0.49 | * | ||||||||||||||||||||||||||||
| 0.43 |
| (0.11) | 0.69 | 0.56 | 0.82 | 0.41 | (0.14) | 0.68 | 0.56 | 0.81 | |||||||||||||||||||||||||||||
0.26 | 0.21 | 0.26 | 0.34 | 0.37 | 0.24 | 0.19 | 0.24 | 0.32 | 0.36 | |||||||||||||||||||||||||||||||
— | 0.35 | 0.15 | — | — | — | 0.35 | 0.15 | — | — | |||||||||||||||||||||||||||||||
0.26 | 0.56 | 0.41 | 0.34 | 0.37 | 0.24 | 0.54 | 0.39 | 0.32 | 0.36 | |||||||||||||||||||||||||||||||
$ | 9.51 | $ | 9.34 | $ | 10.01 | $ | 9.73 | $ | 9.51 | $ | 9.72 | $ | 9.55 | $ | 10.23 | $ | 9.94 | $ | 9.70 | |||||||||||||||||||||
4.61% | (1.13)% | 7.28% | 6.01% | 9.24% | 4.32% | (1.40)% | 7.02% | 5.91% | 8.87% | |||||||||||||||||||||||||||||||
$ | 322,946 |
| $ | 341,603 | $ | 372,643 | $ | 375,669 | $ | 397,055 | $ | 327 | $ | 316 | $ | 320 | $ | 306 | $ | 268 | ||||||||||||||||||||
2.73% | 2.21% | 2.58% | 3.59% | 3.72% | 2.47% | 2.00% | 2.33% | 3.33% | 3.47% | |||||||||||||||||||||||||||||||
0.23% | (b) | 0.21% | (b) | 0.21% | (b) | 0.20% | (b) | 0.18% | (b) | 0.48% | (b) | 0.46% | (b) | 0.46% | (b) | 0.45% | (b) | 0.44% | (b) | |||||||||||||||||||||
0.23% | 0.23% | 0.23% | 0.23% | 0.23% | 0.48% | 0.48% | 0.48% | 0.48% | 0.48% | |||||||||||||||||||||||||||||||
308% | 348% | 403% | 393% | 383% | 308% | 348% | 403% | 393% | 383% |
See Notes to Financial Highlights and Notes to Financial Statements.
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(a) | Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. |
(b) | Includes contractual management fee waiver related to the Fund’s investments in the GE Institutional Money Market Fund (the “Fund”). The fee waiver agreement was terminated effective June 30, 2014 with the closure of the Fund. |
(c) | Less than $0.005. |
* | Per share values have been calculated using the average share method. |
The accompanying Notes are an integral part of these financial statements.
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The accompanying Notes are an integral part of these financial statements.
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Premier Growth Equity Fund | Small-Cap Equity Fund | International Equity Fund | Strategic Investment Fund | Income Fund | ||||||||||||||
$ | 416,800,686 | $ | 1,186,118,084 | $ | 1,799,586,498 | $ | 738,708,750 | $ | 320,324,186 | |||||||||
— | — | — | — | — | ||||||||||||||
15,652,537 | 66,447,137 | 8,522,424 | 127,749,515 | 18,979,740 | ||||||||||||||
— | — | 741,526 | 114,554 | — | ||||||||||||||
— | 1,226,180 | 1,644,608 | 446,594 | — | ||||||||||||||
— | — | 736,553 | 76,198 | — | ||||||||||||||
— | 13,418,175 | 8,377,272 | 64,103,196 | 4,813,477 | ||||||||||||||
273,836 | 1,145,215 | 5,411,624 | 2,216,561 | 1,810,004 | ||||||||||||||
465,831 | 747 | 62,528 | 79,658 | 11,479 | ||||||||||||||
— | — | 72,738 | 29,960 | 57,771 | ||||||||||||||
9,998 | 35,477 | — | 21,198 | 3,245 | ||||||||||||||
433,202,888 | 1,268,391,015 | 1,825,155,771 | 933,546,184 | 345,999,902 | ||||||||||||||
600,958 | 2,291,965 | 4,795,355 | 64,358,069 | 22,644,671 | ||||||||||||||
87,107 | 413,841 | 561,547 | 33,140,457 | 21,659 | ||||||||||||||
131,509 | 952,951 | 859,314 | 256,064 | 60,509 | ||||||||||||||
— | — | 6,219 | — | — | ||||||||||||||
11,156 | 357,234 | 69,024 | 240,903 | — | ||||||||||||||
— | — | 1,468,652 | 150,716 | — | ||||||||||||||
830,730 | 4,015,991 | 7,760,111 | 98,146,209 | 22,726,839 | ||||||||||||||
$ | 432,372,158 | $ | 1,264,375,024 | $ | 1,817,395,660 | $ | 835,399,975 | $ | 323,273,063 | |||||||||
$ | 262,880,281 | $ | 919,167,659 | $ | 1,886,966,866 | $ | 685,344,091 | $ | 322,451,378 | |||||||||
2,460,002 | 434,995 | 41,541,740 | 12,400,695 | 295,679 | ||||||||||||||
30,926,619 | 116,851,173 | (308,201,042 | ) | 59,188,311 | (1,795,804 | ) | ||||||||||||
136,139,000 | 228,699,885 | 197,268,336 | 79,396,283 | 2,423,453 | ||||||||||||||
(33,744 | ) | (778,688 | ) | (25,829 | ) | (915,469 | ) | (101,643 | ) | |||||||||
— | — | (154,411 | ) | (13,936 | ) | — | ||||||||||||
$ | 432,372,158 | $ | 1,264,375,024 | $ | 1,817,395,660 | $ | 835,399,975 | $ | 323,273,063 | |||||||||
$ | 428,536,045 | $ | 1,264,303,622 | $ | 1,724,646,817 | $ | 835,337,541 | $ | 322,945,768 | |||||||||
28,638,381 | 65,440,269 | 135,629,938 | 61,674,542 | 33,971,422 | ||||||||||||||
$ | 14.96 | $ | 19.32 | $ | 12.72 | $ | 13.54 | $ | 9.51 | |||||||||
$ | 3,836,113 | $ | 71,402 | $ | 92,748,843 | $ | 62,434 | $ | 327,295 | |||||||||
258,869 | 3,686 | 7,346,618 | 4,645 | 33,679 | ||||||||||||||
$ | 14.82 | $ | 19.37 | $ | 12.62 | $ | 13.44 | $ | 9.72 |
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For the year ended September 30, 2014 | U.S. Equity Fund | S&P 500 Index Fund | U.S. Large-Cap Core Equity Fund | |||||||||
INVESTMENT INCOME | ||||||||||||
Income | ||||||||||||
Dividend | $ | 13,692,794 | $ | 695,394 | $ | 1,889,043 | ||||||
Interest | 103,053 | 8,214 | 8,732 | |||||||||
Income from affiliated investments | — | 18,319 | — | |||||||||
Less: Foreign taxes withheld | (3,252 | ) | — | (1,698 | ) | |||||||
Total income | 13,792,595 | 721,927 | 1,896,077 | |||||||||
Expenses | ||||||||||||
Advisory and administration fees | 2,878,656 | 54,815 | 426,285 | |||||||||
Distribution and service: | ||||||||||||
Service Class | 236 | 16,480 | 10,280 | |||||||||
Trustees’ fees | 24,324 | 1,245 | 7,931 | |||||||||
Other expenses | 20 | 14,826 | — | |||||||||
Total expenses before waiver | 2,903,236 | 87,366 | 444,496 | |||||||||
Less: Expenses waived or borne by the adviser | (8,523 | ) | (798 | ) | (1,023 | ) | ||||||
Net expenses | 2,894,713 | 86,568 | 443,473 | |||||||||
Net investment income | 10,897,882 | 635,359 | 1,452,604 | |||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||
Realized gain (loss) on: | ||||||||||||
Investments | 88,509,836 | 6,094,503 | 14,500,090 | |||||||||
Affiliated investments | — | 85,248 | — | |||||||||
Futures | 1,342,348 | 385,780 | 384,913 | |||||||||
Foreign currency transactions | (130 | ) | — | (13 | ) | |||||||
Increase (decrease) in unrealized appreciation/depreciation on: | ||||||||||||
Investments | 36,086,603 | (803,689 | ) | 837,108 | ||||||||
Futures | 141,166 | 18,472 | 9,921 | |||||||||
Foreign currency translations | — | — | — | |||||||||
Net realized and unrealized gain (loss) on investments | 126,079,823 | 5,780,314 | 15,732,019 | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 136,977,705 | $ | 6,415,673 | $ | 17,184,623 |
The accompanying Notes are an integral part of these financial statements.
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Premier Growth Equity Fund | Small-Cap Equity Fund | International Equity Fund | Strategic Investment Fund | Income Fund | ||||||||||||||
$ | 5,347,632 | $ | 12,437,959 | $ | 58,976,631 | $ | 12,232,330 | $ | 20,667 | |||||||||
1,076 | 71,666 | — | 7,070,794 | 9,765,870 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | (34,891 | ) | (3,820,424 | ) | (385,370 | ) | �� | |||||||||||
5,348,708 | 12,474,734 | 55,156,207 | 18,917,754 | 9,786,537 | ||||||||||||||
1,503,469 | 11,552,463 | 10,731,681 | 3,050,692 | 750,072 | ||||||||||||||
8,979 | 267 | 252,920 | 158 | 801 | ||||||||||||||
10,231 | 36,358 | 100,269 | 28,163 | 16,053 | ||||||||||||||
22 | — | 805 | 171 | 40 | ||||||||||||||
1,522,701 | 11,589,088 | 11,085,675 | 3,079,184 | 766,966 | ||||||||||||||
(3,854 | ) | (29,663 | ) | (10,880 | ) | (42,030 | ) | (14,204 | ) | |||||||||
1,518,847 | 11,559,425 | 11,074,795 | 3,037,154 | 752,762 | ||||||||||||||
3,829,861 | 915,309 | 44,081,412 | 15,880,600 | 9,033,775 | ||||||||||||||
35,357,672 | 138,909,023 | 149,490,515 | 66,931,777 | 1,932,148 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
465,505 | 2,885,868 | 18,802 | 3,755,006 | (2,524,151 | ) | |||||||||||||
— | — | (715,627 | ) | (69,575 | ) | — | ||||||||||||
33,560,241 | (71,178,153 | ) | (159,247,752 | ) | (11,897,709 | ) | 6,054,323 | |||||||||||
22,801 | (1,140,352 | ) | 363,412 | (877,349 | ) | 304,357 | ||||||||||||
— | — | (317,587 | ) | (27,442 | ) | — | ||||||||||||
69,406,219 | 69,476,386 | (10,408,237 | ) | 57,814,708 | 5,766,677 | |||||||||||||
$ | 73,236,080 | $ | 70,391,695 | $ | 33,673,175 | $ | 73,695,308 | $ | 14,800,452 |
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The accompanying Notes are an integral part of these financial statements.
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S&P 500 Index Fund | U.S. Large-Cap Core Equity Fund | Premier Growth Equity Fund | ||||||||||||||||||||
Year Ended September 30, 2014 | Year Ended September 30, 2013 | Year Ended September 30, | Year Ended September 30, 2013 | Year Ended September 30, 2014 | Year Ended September 30, 2013 | |||||||||||||||||
$ | 635,359 | $ | 842,718 | $ | 1,452,604 | $ | 1,886,880 | $ | 3,829,861 | $ | 3,397,344 | |||||||||||
6,565,531 | 480,862 | 14,884,990 | 19,831,194 | 35,823,177 | 19,059,785 | |||||||||||||||||
(785,217 | ) | 5,926,646 | 847,029 | (5,548,038 | ) | 33,583,042 | 34,538,579 | |||||||||||||||
6,415,673 | 7,250,226 | 17,184,623 | 16,170,036 | 73,236,080 | 56,995,708 | |||||||||||||||||
(671,910 | ) | (633,163 | ) | (1,158,271 | ) | (3,609,374 | ) | (3,141,777 | ) | (3,226,746 | ) | |||||||||||
(78,090 | ) | (81,168 | ) | (37,701 | ) | (65,779 | ) | (19,790 | ) | (26,113 | ) | |||||||||||
— | — | (17,427,031 | ) | (17,344,084 | ) | (10,172,708 | ) | — | ||||||||||||||
— | — | (706,418 | ) | (355,202 | ) | (89,483 | ) | — | ||||||||||||||
(750,000 | ) | (714,331 | ) | (19,329,421 | ) | (21,374,439 | ) | (13,423,758 | ) | (3,252,859 | ) | |||||||||||
5,665,673 | 6,535,895 | (2,144,798 | ) | (5,204,403 | ) | 59,812,322 | 53,742,849 | |||||||||||||||
5,428,927 | 6,309,851 | 12,935,678 | 10,388,686 | 51,707,180 | 116,526,199 | |||||||||||||||||
1,198,547 | 1,918,639 | 480,957 | 529,958 | 513,832 | 1,543,852 | |||||||||||||||||
598,623 | 550,114 | 18,579,989 | 9,994,688 | 13,209,115 | 3,213,585 | |||||||||||||||||
77,671 | 80,694 | 744,095 | 420,966 | 109,227 | 26,101 | |||||||||||||||||
(21,073,881 | ) | (1,872,382 | ) | (24,366,962 | ) | (110,193,434 | ) | (64,960,247 | ) | (61,583,047 | ) | |||||||||||
(1,094,993 | ) | (1,340,276 | ) | (348,499 | ) | (865,935 | ) | (521,159 | ) | (1,038,133 | ) | |||||||||||
(14,865,106 | ) | 5,646,640 | 8,025,258 | (89,725,071 | ) | 57,948 | 58,688,557 | |||||||||||||||
(9,199,433 | ) | 12,182,535 | 5,880,460 | (94,929,474 | ) | 59,870,270 | 112,431,406 | |||||||||||||||
48,675,196 | 36,492,661 | 94,250,898 | 189,180,372 | 372,501,888 | 260,070,482 | |||||||||||||||||
$ | 39,475,763 | $ | 48,675,196 | $ | 100,131,358 | $ | 94,250,898 | $ | 432,372,158 | $ | 372,501,888 | |||||||||||
$ | 465,329 | $ | 595,114 | $ | 1,115,030 | $ | 864,701 | $ | 2,460,002 | $ | 1,855,301 | |||||||||||
311,440 | 420,670 | 1,177,675 | 964,587 | 3,730,498 | 9,935,204 | |||||||||||||||||
37,673 | 40,870 | 1,854,290 | 1,067,808 | 980,632 | 302,313 | |||||||||||||||||
(1,303,754 | ) | (125,492 | ) | (2,238,774 | ) | (11,244,242 | ) | (4,662,645 | ) | (5,454,120 | ) | |||||||||||
(954,641 | ) | 336,048 | 793,191 | (9,211,847 | ) | 48,485 | 4,783,397 | |||||||||||||||
65,846 | 125,490 | 44,370 | 49,617 | 37,197 | 138,442 | |||||||||||||||||
4,786 | 5,869 | 74,708 | 45,216 | 8,176 | 2,474 | |||||||||||||||||
(61,315 | ) | (90,174 | ) | (32,171 | ) | (78,343 | ) | (37,770 | ) | (89,628 | ) | |||||||||||
9,317 | 41,185 | 86,907 | 16,490 | 7,603 | 51,288 |
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Statements of Changes in Net Assets | Small-Cap Equity Fund | International Equity Fund | ||||||||||||||
Year Ended September 30, 2014 | Year Ended September 30, 2013 | Year Ended September 30, 2014 | Year Ended September 30, 2013 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 915,309 | $ | 3,949,003 | $ | 44,081,412 | $ | 30,780,498 | ||||||||
Net realized gain (loss) on investments, futures and foreign currency transactions | 141,794,891 | 102,600,279 | 148,793,690 | 188,781,637 | ||||||||||||
Net increase (decrease) in unrealized appreciation/depreciation on investments, futures and foreign currency translations | (72,318,505 | ) | 184,631,569 | (159,201,927 | ) | 159,051,736 | ||||||||||
Net increase (decrease) from operations | 70,391,695 | 291,180,851 | 33,673,175 | 378,613,871 | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||
Net investment income | ||||||||||||||||
Investment Class | (1,300,365 | ) | (4,220,615 | ) | (29,089,517 | ) | (38,226,277 | ) | ||||||||
Service Class | — | (148 | ) | (1,380,383 | ) | (1,995,770 | ) | |||||||||
Net realized gains | ||||||||||||||||
Investment Class | (121,161,646 | ) | (73,908,394 | ) | — | — | ||||||||||
Service Class | (8,667 | ) | (4,369 | ) | — | — | ||||||||||
Total distributions | (122,470,678 | ) | (78,133,526 | ) | (30,469,900 | ) | (40,222,047 | ) | ||||||||
Increase (decrease) in assets from operations and distributions | (52,078,983 | ) | 213,047,325 | 3,203,275 | 338,391,824 | |||||||||||
Share transactions: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Investment Class | 96,764,538 | 83,402,018 | 114,344,931 | 148,396,185 | ||||||||||||
Service Class | 34,178 | 61,678 | 245,130 | 327,057 | ||||||||||||
Value of distributions reinvested | ||||||||||||||||
Investment Class | 122,459,420 | 78,129,009 | 29,022,015 | 38,147,063 | ||||||||||||
Service Class | 8,667 | 4,517 | 1,380,070 | 1,994,098 | ||||||||||||
Cost of shares redeemed | ||||||||||||||||
Investment Class | (151,990,603 | ) | (92,121,302 | ) | (257,873,009 | ) | (652,980,491 | ) | ||||||||
Service Class | (54,564 | ) | (36,749 | ) | (10,373,233 | ) | (40,493,002 | ) | ||||||||
Net increase (decrease) from share transactions | 67,221,636 | 69,439,171 | (123,254,096 | ) | (504,609,090 | ) | ||||||||||
Total increase (decrease) in net assets | 15,142,653 | 282,486,496 | (120,050,821 | ) | (166,217,266 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of year | 1,249,232,371 | 966,745,875 | 1,937,446,481 | 2,103,663,747 | ||||||||||||
End of year | $ | 1,264,375,024 | $ | 1,249,232,371 | $ | 1,817,395,660 | $ | 1,937,446,481 | ||||||||
Undistributed (distributions in excess of) net investment income, end of period | $ | 434,995 | $ | 944,673 | $ | 41,541,740 | $ | 28,645,855 | ||||||||
CHANGES IN FUND SHARES | ||||||||||||||||
Investment Class | ||||||||||||||||
Shares sold | 4,831,811 | 4,654,957 | 8,765,740 | 12,865,711 | ||||||||||||
Issued for distributions reinvested | 6,328,652 | 4,910,686 | 2,237,627 | 3,412,081 | ||||||||||||
Shares redeemed | (7,595,150 | ) | (5,240,543 | ) | (19,887,117 | ) | (57,585,228 | ) | ||||||||
Net increase (decrease) in fund shares | 3,565,313 | 4,325,100 | (8,883,750 | ) | (41,307,436 | ) | ||||||||||
Service Class | ||||||||||||||||
Shares sold | 1,708 | 3,406 | 18,951 | 28,154 | ||||||||||||
Issued for distributions reinvested | 446 | 282 | 106,899 | 179,325 | ||||||||||||
Shares redeemed | (2,742 | ) | (2,020 | ) | (802,277 | ) | (3,479,754 | ) | ||||||||
Net increase (decrease) in fund shares | (588 | ) | 1,668 | (676,427 | ) | (3,272,275 | ) |
The accompanying Notes are an integral part of these financial statements.
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Strategic Investment Fund | Income Fund | |||||||||||||
Year Ended September 30, 2014 | Year Ended September 30, 2013 | Year Ended September 30, 2014 | Year Ended September 30, 2013 | |||||||||||
$ | 15,880,600 | $ | 13,622,587 | $ | 9,033,775 | $ | 7,904,148 | |||||||
70,617,208 | 41,089,937 | (592,003 | ) | 1,541,138 | ||||||||||
(12,802,500 | ) | 36,326,588 | 6,358,680 | (13,537,966 | ) | |||||||||
73,695,308 | 91,039,112 | 14,800,452 | (4,092,680 | ) | ||||||||||
(13,471,250 | ) | (14,422,388 | ) | (9,018,850 | ) | (7,816,362 | ) | |||||||
(856 | ) | (1,045 | ) | (7,907 | ) | (5,968 | ) | |||||||
(29,582,200 | ) | — | — | (13,054,435 | ) | |||||||||
(2,199 | ) | — | — | (10,149 | ) | |||||||||
(43,056,505 | ) | (14,423,433 | ) | (9,026,757 | ) | (20,886,914 | ) | |||||||
30,638,803 | 76,615,679 | 5,773,695 | (24,979,594 | ) | ||||||||||
51,978,867 | 62,947,957 | 12,837,474 | 18,356,349 | |||||||||||
6,633 | 1,600 | 63,481 | 34,876 | |||||||||||
43,052,892 | 14,422,080 | 9,004,773 | 20,863,869 | |||||||||||
2,677 | 929 | 7,907 | 16,116 | |||||||||||
(118,328,879 | ) | (68,899,777 | ) | (46,268,264 | ) | (45,300,988 | ) | |||||||
(6,179 | ) | (12,270 | ) | (65,013 | ) | (35,146 | ) | |||||||
(23,293,989 | ) | 8,460,519 | (24,419,642 | ) | (6,064,924 | ) | ||||||||
7,344,814 | 85,076,198 | (18,645,947 | ) | (31,044,518 | ) | |||||||||
828,055,161 | 742,978,963 | 341,919,010 | 372,963,528 | |||||||||||
$ | 835,399,975 | $ | 828,055,161 | $ | 323,273,063 | $ | 341,919,010 | |||||||
$ | 12,400,695 | $ | 10,133,888 | $ | 295,679 | $ | 288,661 | |||||||
3,898,959 | 5,100,949 | 1,352,756 | 1,897,956 | |||||||||||
3,337,433 | 1,219,111 | 950,880 | 2,175,577 | |||||||||||
(8,822,526 | ) | (5,573,604 | ) | (4,908,128 | ) | (4,713,473 | ) | |||||||
(1,586,134 | ) | 746,456 | (2,604,492 | ) | (639,940 | ) | ||||||||
500 | 124 | 6,550 | 3,551 | |||||||||||
209 | 79 | 816 | 1,645 | |||||||||||
(461 | ) | (957 | ) | (6,732 | ) | (3,474 | ) | |||||||
248 | (754 | ) | 634 | 1,722 |
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Notes to Financial Statements | September 30, 2014 |
1. Organization of the Funds
GE Institutional Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was organized as a Delaware business trust on May 23, 1997, and is authorized to issue an unlimited number of shares. It currently comprises ten investment funds (each a “Fund” and collectively the “Funds”) although only the following eight Funds are currently being offered: U.S. Equity Fund, S&P 500 Index Fund, U.S. Large-Cap Core Equity Fund, Premier Growth Equity Fund, Small-Cap Equity Fund, International Equity Fund, Strategic Investment Fund and Income Fund. GE Institutional Money Market Fund liquidated on June 30, 2014. The Funds presently offer two classes of shares — the Investment Class and the Service Class. The Trust expects that most of the time, each Fund will have relatively few shareholders (as compared with most mutual funds), but that these shareholders will invest substantial amounts in a Fund (minimum initial investment requirements are described in the current summary prospectus for each Fund and in the Funds’ statutory prospectus). Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies.
2. Summary of Significant Accounting Policies
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
Subsequent events after the balance sheet date through the date the financial statements were issued have been evaluated in the preparation of the financial statements. There are no items to report.
The following summarizes the significant accounting policies of the Trust.
Securities Valuation and Transactions All investments in securities are recorded at their estimated fair value, as described in Note 3.
Securities transactions are accounted for as of the trade date. Realized gains and losses on investments sold are recorded on the basis of identified cost for both financial statement and federal tax purposes.
Each Fund’s income, expenses (other than distribution fees) and realized and unrealized gains and losses are allocated proportionally each day among the share classes based upon the relative net assets of each class.
Foreign Currency Accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated to U.S. dollars at the prevailing rates of exchange at period end. Purchases and sales of securities, income receipts and expense payments denominated in foreign currencies are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions.
All assets and liabilities of the Funds initially expressed in foreign currency values will be converted into U.S. dollars at the WM/Reuter exchange rate computed at 11:00 a.m., Eastern time.
The Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities during the year. Such fluctuations are included in the net realized or unrealized gain or loss from investments. Net realized gains or losses on foreign currency transactions represent net gains or losses on sales and maturities of foreign currency contracts, disposition of foreign currencies, the difference between the amount of net investment income and withholding taxes accrued and the U.S. dollar amount actually received or paid, and gains or losses between the trade and settlement date on purchases and sales of foreign securities. Net unrealized foreign exchange gains and losses arising from changes in the value of other assets and liabilities (including foreign currencies and open foreign currency contracts) as a result of changes in foreign exchange rates are included as increases or decreases in unrealized appreciation/depreciation on foreign currency related transactions.
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Derivatives The Funds are subject to equity price risk, interest rate risk, credit risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. Certain Funds used various types of derivatives (such as futures) to gain or hedge market exposure for residual and accumulating cash positions, and for managing the duration of fixed-income investments.
Futures Contracts A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. Certain Funds may invest in interest rate, financial and stock or bond index futures contracts subject to certain limitations. During the year ended September 30, 2014, the U.S. Equity Fund, S&P 500 Index Fund, U.S. Large-Cap Core Equity Fund, Premier Growth Equity Fund, Small-Cap Equity Fund and International Equity Fund invested in stock index future contracts to gain equity exposure for accumulating and residual cash positions. The Strategic Investment Fund invested in futures contracts on various stock indices, bonds and notes to gain equity exposure and to manage duration of fixed income securities. The Income Fund invested in futures contracts on bonds and notes to manage duration of fixed income securities. Buying futures tends to increase a Fund’s exposure to the underlying instrument while selling futures tends to decrease a Fund’s exposure to the underlying instrument, or hedge other Fund investments. With futures contracts, there is minimal counterparty credit risk to a Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all traded futures, guarantees the futures against default. A Fund’s risks in using these contracts include changes in the value of the underlying instruments, non-performance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they principally trade.
Upon entering into a financial futures contract, a Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount, known as initial margin deposit. Subsequent payments, known as variation margin, are made or received by a Fund each day, depending on the daily fluctuation in the fair value of the underlying
security. A Fund records an unrealized gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may incur a loss. A Fund recognizes a realized gain or loss on the expiration or closing of a futures contract.
When-Issued Securities and Forward Commitments Certain Funds purchase or sell securities on a when issued or forward commitment basis. These transactions are arrangements in which a Fund purchases and sells securities with payment and delivery scheduled a month or more after entering into the transaction. The price of the underlying securities and the date when these securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the commitments. In connection with such purchases, a Fund maintains cash or liquid assets in an amount equal to the purchase commitments for such underlying securities until settlement date and for sales commitments a Fund maintains equivalent deliverable securities as “cover” for the transaction. Unsettled commitments are valued at the current market value of the underlying security. Daily fluctuations in the value of such commitments are recorded as unrealized gains or losses. The Funds will not enter into such commitments for the purpose of investment leverage.
Forward Foreign Currency Exchange Contracts Certain Funds may enter into forward foreign currency exchange contracts to facilitate transactions in foreign denominated securities and to manage currency exposure. Forward foreign currency exchange contracts are valued at the mean between the bid and the offered forward rates as last quoted by a recognized dealer. The aggregate principal amounts of the contracts are not recorded in a Fund’s financial statements. Such amounts appear under the caption Forward Foreign Currency Contracts in the Schedules of Investments. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (or liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains or losses on foreign currency related transactions. A Fund’s risks in using these contracts include changes in the value of foreign currency or the
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possibility that the counterparties do not perform under the contracts’ terms. When a Fund enters into a forward foreign currency exchange contract, it is required to segregate cash or liquid securities with its custodian in an amount equal to the value of a Fund’s total assets committed to the consummation of the forward contract. If the value of the segregated securities declines, additional cash or securities are segregated so that the value of the account will equal the amount of a Fund’s commitment with respect to the contract.
Investments in Foreign Markets Investments in foreign markets involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies, high rates of inflation, restrictions on repatriation of income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, tariffs and taxes, subject to delays in settlements, and their prices may be more volatile.
The Funds may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based upon income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as income and/or capital gains are earned.
Investment Income Corporate actions (including cash dividends) are recorded on the ex-dividend date, net of applicable withholding taxes, except for certain foreign corporate actions which are recorded as soon after the ex-dividend date as such information becomes available. Withholding taxes on foreign dividends, if any, have been provided for in accordance with a Fund’s understanding of the applicable country’s tax rules and rates. Interest income is recorded on the accrual basis. Accretion of discounts and amortization of premiums on taxable bonds are to the call or maturity date, whichever is shorter, using the effective yield method.
Expenses The Funds pay a “unitary fee” to GEAM equivalent to the Funds’ advisory and administration fee. This fee includes any normal operating expenses payable by the Funds, except for fees paid to the Trust’s independent Trustees, distribution and shareholder servicing fees, brokerage fees and fees that are not
normal operating expenses of the Funds (such as extraordinary expenses, interest and taxes).
Federal Income Taxes The Funds intend to comply with all sections of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) applicable to regulated investment companies including the distribution of substantially all of their taxable net investment income and net realized capital gains to their shareholders. Therefore, no provision for federal income tax has been made. Each Fund is treated as a separate taxpayer for federal income tax purposes.
3. Security Valuation and Transactions
The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a framework for measuring fair value and providing related disclosures. Broadly, the framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. It also establishes a three-level valuation hierarchy based upon observable and non-observable inputs.
Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
Level 1 - Quoted prices for identical investments in active markets.
Level 2 - Quoted prices for similar investments in active markets; quoted prices for identical or similar investments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3 - Significant inputs to the valuation model are unobservable.
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Policies and procedures are maintained to value investments using the best and most relevant data available. In addition, pricing vendors are utilized to assist in valuing investments. GEAM performs periodic reviews of the methodologies used by independent pricing services including price validation of individual securities.
Fair Value Measurement The following section describes the valuation methodologies the Funds use to measure different financial investments at fair value.
A Fund’s portfolio securities are valued generally on the basis of market quotations. Equity securities generally are valued at the last reported sale price on the primary market in which they are traded. Portfolio securities listed on NASDAQ are valued using the NASDAQ Official Closing Price. Level 1 securities primarily include publicly-traded equity securities, which may not necessarily represent the last sales price. If no sales occurred on the exchange or NASDAQ that day, the portfolio security generally is valued using the last reported bid price. In those circumstances, the Fund classifies the investment securities in Level 2.
Debt securities (other than short-term securities described below) generally are valued at an evaluated bid price as reported by independent pricing services. The pricing services use various pricing models for each asset class. The inputs and assumptions to the model of the pricing services are derived from market observable sources, which may include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market related data. Since many fixed income securities do not trade on a daily basis, the methodology of the pricing service may also use other available information such as benchmark curves, benchmarking of similar securities, sector groupings and matrix pricing, as applicable. Thus, certain securities may not be priced using market quotations, but rather determined from market observable information. These investments are included in Level 2 and are primarily comprised of corporate fixed income, government, mortgage and asset-backed securities. In the absence of a reliable bid price from such a pricing service, debt securities may be valued based on broker or dealer supplied valuations or quotations. In these infrequent circumstances, pricing services may provide the Funds with valuations that are based on significant
unobservable inputs, and in those circumstances the investment securities are classified as Level 3.
A Fund may use non-binding broker or dealer quotes for valuation when there is limited or no relevant market activity for a specific investment or for other investments that share similar characteristics and a price is not provided by a pricing service or is deemed not to be reliable. The Funds have not adjusted the prices obtained. Investment securities priced using non-binding broker or dealer quotes are included in Level 3.
Short-term securities of sufficient credit quality with remaining maturities of sixty days or less at the time of purchase are typically valued on the basis of amortized cost which approximates fair value and these are included in Level 2. If it is determined that amortized cost does not approximate fair value, securities may be valued based on dealer supplied valuations or quotations. In these infrequent circumstances, pricing services may provide the Funds with valuations that are based on significant unobservable inputs, and in those circumstances the investment securities are classified in Level 3.
Investments in Registered Investment Companies are valued at the published daily net asset value and classified in Level 1.
If prices are not readily available for a portfolio security, or if it is believed that a price for a portfolio security does not represent its fair value, the security may be valued using procedures approved by the Funds’ Board of Trustees that are designed to establish its “fair” value. These securities are typically classified in Level 3. Those procedures require that the fair value of a security be established by a valuation committee of GEAM. The valuation committee follows different protocols for different types of investments and circumstances. The fair value procedures may be used to value any investment of any Fund in the appropriate circumstances.
Foreign securities may be valued with the assistance of an independent fair value pricing service in circumstances where it is believed that they have been or would be materially affected by events occurring after the close of the portfolio security’s primary market and before the close of regular trading on the New York Stock Exchange (“NYSE”). In these circumstances, the Funds classify the investment securities in Level 2. This independent fair value pricing
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service uses a proprietary model to identify affected securities, taking into consideration various factors, and the fair value of such securities may be something other than the last available quotation or other market price.
All assets and liabilities of the Funds initially expressed in foreign currency values will be converted into U.S. dollars at the WM/Reuters exchange rate computed at 11:00 a.m. Eastern time.
Fair value determinations generally are used for securities whose value is affected by a significant event that will materially affect the value of a security and which occurs subsequent to the time of the close of the principal market on which such security trades but prior to the calculation of a Fund’s net asset value (“NAV”).
The value established for such a portfolio security valued other than by use of a market quotation (as described above) may be different than what would be produced through the use of market quotations or another methodology. Portfolio securities that are valued using techniques other than market quotations, including “fair valued” securities, 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.
Other financial investments are derivative instruments that are not reflected in total investments, such as futures, forwards, swaps, and written options contracts, which are valued based on fair value as discussed above.
The Funds use closing prices for derivatives included in Level 1, which are traded either on exchanges or liquid over-the counter markets. Derivative assets and liabilities included in Level 2 primarily represent interest rate swaps, cross-currency swaps and foreign currency and commodity forward and option contracts. Derivative assets and liabilities included in Level 3 primarily represent interest rate products that contain embedded optionality or prepayment features.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following tables present the Funds’ investments measured at fair value on a recurring basis at September 30, 2014:
Fund | Investments | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
U.S. Equity Fund | Investments in Securities † | |||||||||||||||||
Common Stock | $ | 817,113,227 | $ | — | $ | — | $ | 817,113,227 | ||||||||||
Exchange Traded Funds | 11,473,211 | — | — | 11,473,211 | ||||||||||||||
Short-Term Investments | 7,219,575 | — | — | 7,219,575 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 835,806,013 | $ | — | $ | — | $ | 835,806,013 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Short Futures Contracts — Unrealized Appreciation | $ | 39,862 | $ | — | $ | — | $ | 39,862 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
S&P 500 Index Fund | Investments in Securities † | |||||||||||||||||
Common Stock | $ | 37,628,139 | $ | — | $ | — | $ | 37,628,139 | ||||||||||
Short-Term Investments | 1,727,507 | — | — | 1,727,507 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 39,355,646 | $ | — | $ | — | $ | 39,355,646 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Long Futures Contracts — Unrealized Depreciation | $ | (10,258 | ) | $ | — | $ | — | $ | (10,258 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||||
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Fund | Investments | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
U.S. Large-Cap Core Equity Fund | Investments in Securities † | |||||||||||||||||
Common Stock | $ | 93,994,201 | $ | — | $ | — | $ | 93,994,201 | ||||||||||
Exchange Traded Funds | 1,333,038 | — | — | 1,333,038 | ||||||||||||||
Short-Term Investments | 4,257,640 | — | — | 4,257,640 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 99,584,879 | $ | — | $ | — | $ | 99,584,879 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Long Futures Contracts — Unrealized Depreciation | $ | (21,701 | ) | $ | — | $ | — | $ | (21,701 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||||
Premier Growth Equity Fund | Investments in Securities † | |||||||||||||||||
Common Stock | $ | 416,800,686 | $ | — | $ | — | $ | 416,800,686 | ||||||||||
Short-Term Investments | 15,652,537 | — | — | 15,652,537 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 432,453,223 | $ | — | $ | — | $ | 432,453,223 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Long Futures Contracts — Unrealized Depreciation | $ | (33,744 | ) | $ | — | $ | — | $ | (33,744 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||||
Small-Cap Equity Fund | Investments in Securities † | |||||||||||||||||
Common Stock | $ | 1,186,118,084 | $ | — | $ | — | $ | 1,186,118,084 | ||||||||||
Short-Term Investments | 66,447,137 | — | — | 66,447,137 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 1,252,565,221 | $ | — | $ | — | $ | 1,252,565,221 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Long Futures Contracts — Unrealized Depreciation | $ | (778,688 | ) | $ | — | $ | — | $ | (778,688 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||||
International Equity Fund | Investments in Securities † | |||||||||||||||||
Common Stock | $ | 95,025,823 | $ | 1,671,907,635 | $ | — | $ | 1,766,933,458 | ||||||||||
Preferred Stock | — | 32,653,040 | — | 32,653,040 | ||||||||||||||
Short-Term Investments | 8,522,424 | — | — | 8,522,424 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 103,548,247 | $ | 1,704,560,675 | $ | — | $ | 1,808,108,922 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Short Futures Contracts — Unrealized Appreciation | $ | 152,643 | $ | — | $ | — | $ | 152,643 | ||||||||||
Short Futures Contracts — Unrealized Depreciation | (178,472 | ) | — | — | (178,472 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Other Financial Instruments | $ | (25,829 | ) | $ | — | $ | — | $ | (25,829 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||||
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Fund | Investments | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Strategic Investment Fund | Investments in Securities † | |||||||||||||||||
Domestic Equity | $ | 285,925,512 | $ | — | $ | — | $ | 285,925,512 | ||||||||||
Foreign Equity | 17,096,268 | 166,947,862 | — | 184,044,130 | ||||||||||||||
U.S. Treasuries | — | 72,407,997 | — | 72,407,997 | ||||||||||||||
Agency Mortgage Backed | — | 70,101,878 | — | 70,101,878 | ||||||||||||||
Agency Collateralized Mortgage Obligations | — | 850,535 | — | 850,535 | ||||||||||||||
Asset Backed | — | 100,259 | — | 100,259 | ||||||||||||||
Corporate Notes | — | 88,878,202 | — | 88,878,202 | ||||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 13,058,531 | — | 13,058,531 | ||||||||||||||
Sovereign Bonds | — | 2,086,253 | — | 2,086,253 | ||||||||||||||
Municipal Bonds and Notes | — | 1,351,625 | — | 1,351,625 | ||||||||||||||
Exchange Traded Funds | 19,903,828 | — | — | 19,903,828 | ||||||||||||||
Short-Term Investments | 127,749,515 | — | — | 127,749,515 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 450,675,123 | $ | 415,783,142 | $ | — | $ | 866,458,265 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Long Futures Contracts — Unrealized Appreciation | $ | 24,520 | $ | — | $ | — | $ | 24,520 | ||||||||||
Long Futures Contracts — Unrealized Depreciation | (915,822 | ) | — | — | (915,822 | ) | ||||||||||||
Short Futures Contracts — Unrealized Appreciation | 2,799 | — | — | 2,799 | ||||||||||||||
Short Futures Contracts — Unrealized Depreciation | (26,966 | ) | — | — | (26,966 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Other Financial Instruments | $ | (915,469 | ) | $ | — | $ | — | $ | (915,469 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||||
Income Fund | Investments in Securities † | |||||||||||||||||
U.S. Treasuries | $ | — | $ | 93,270,727 | $ | — | $ | 93,270,727 | ||||||||||
Agency Mortgage Backed | — | 87,749,661 | — | 87,749,661 | ||||||||||||||
Agency Collateralized Mortgage Obligations | — | 1,277,950 | — | 1,277,950 | ||||||||||||||
Asset Backed | — | 505,696 | — | 505,696 | ||||||||||||||
Corporate Notes | — | 113,439,284 | — | 113,439,284 | ||||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 19,080,237 | — | 19,080,237 | ||||||||||||||
Sovereign Bonds | — | 2,349,673 | — | 2,349,673 | ||||||||||||||
Municipal Bonds and Notes | — | 2,316,640 | — | 2,316,640 | ||||||||||||||
Preferred Stock | 334,318 | — | — | 334,318 | ||||||||||||||
Short-Term Investments | 18,979,740 | — | — | 18,979,740 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Investments in Securities | $ | 19,314,058 | $ | 319,989,868 | $ | — | $ | 339,303,926 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Other Financial Instruments * | ||||||||||||||||||
Long Futures Contracts | $ | (3,620 | ) | $ | — | $ | — | $ | (3,620 | ) | ||||||||
Short Futures Contracts — Unrealized Appreciation | 7,711 | — | — | 7,711 | ||||||||||||||
Short Futures Contracts — Unrealized Depreciation | (105,734 | ) | — | — | (105,734 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Other Financial Instruments | $ | (101,643 | ) | $ | — | $ | — | $ | (101,643 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||||
† | See Schedule of Investments for Industry Classification. |
* | Other financial instruments include derivative instruments such as futures contracts. Amounts shown represent unrealized appreciation (depreciation), at period end. |
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The International Equity Fund and Strategic Investment Fund utilized the fair value pricing service on September 30, 2014 due to events occurring after the close of foreign local markets and before the close of regular trading on the NYSE. This resulted in certain foreign securities being classified as Level 1 at the beginning of the period which were classified as Level 2 at September 30, 2014. The value of securities that were transferred to Level 2 from Level 1 as a result was $1,393,878,435 and $131,125,819 for the International
Equity Fund and Strategic Investment Fund, respectively. There were no other transfers between fair value levels during the period. Transfers between fair values are considered to occur at the beginning of the period.
Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended September 30, 2014 is not presented.
4. Derivatives Disclosure
Shown below are the derivative contracts entered into by each Fund, summarized by primary risk exposure as they appear on the Statements of Assets and Liabilities, none of which are accounted for as hedging instruments under FASB ASC No. 815 Derivatives and Hedging as of September 30, 2014.
Asset Derivatives September 30, 2014 | Liability Derivatives September 30, 2014 | |||||||||
Derivatives not accounted for as hedging instruments under ASC 815 | Location in the Statements of Assets and Liabilities | Fair Value ($) | Location in the Statements of Assets and Liabilities | Fair Value ($) | ||||||
U.S. Equity Fund | ||||||||||
Equity Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | 39,862* | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | — | ||||||
S&P 500 Index Fund | ||||||||||
Equity Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | — | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (10,258)* | ||||||
U.S. Large-Cap Core Equity Fund | ||||||||||
Equity Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | — | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (21,701)* | ||||||
Premier Growth Equity Fund | ||||||||||
Equity Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | — | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (33,744)* | ||||||
Small-Cap Equity Fund | ||||||||||
Equity Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | — | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (778,688)* |
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Asset Derivatives September 30, 2014 | Liability Derivatives September 30, 2014 | |||||||||
Derivatives not accounted for as hedging instruments under ASC 815 | Location in the Statements of Assets and Liabilities | Fair Value ($) | Location in the Statements of Assets and Liabilities | Fair Value ($) | ||||||
International Equity Fund | ||||||||||
Equity Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | 152,643* | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (178,472)* | ||||||
Strategic Investment Fund | ||||||||||
Equity Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | 24,081* | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (915,822)* | ||||||
Interest Rate Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | 3,238* | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (26,966)* | ||||||
Income Fund | ||||||||||
Interest Rate Contracts | Assets, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | 7,711* | Liabilities, Net Assets - Net Unrealized Appreciation/ (Depreciation) on Futures | (109,354)* |
* | Includes cumulative unrealized appreciation/(depreciation) of futures contracts as reported in the Schedule of Investments and within the components of the net assets section of the Statement of Assets and Liabilities. Only the current day’s variation margin is reported within the Assets and/or Liabilities section on the Statement of Assets and Liabilities. |
Shown below are the effects of derivative instruments on the Funds’ Statements of Operations, summarized by primary risk exposure.
Derivatives not accounted for as hedging instruments under ASC 815 | Location in the Statements of Operations | Total Notional Amount of Futures Contracts Purchased/(Sold) ($) | Realized Gain (Loss) on Derivatives Recognized in Income ($) | Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income ($) | ||||||||
| Realized Gain/(Loss) | | | Unrealized Gain/(Loss) | | |||||||
U.S. Equity Fund |
| |||||||||||
Equity Contracts | Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures | 99,109,420/(116,859,199) | 1,342,348 | 141,166 | ||||||||
S&P 500 Index Fund |
| |||||||||||
Equity Contracts | Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures | 9,036,163/(10,518,038) | 385,780 | 18,472 |
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Notes to Financial Statements | September 30, 2014 |
Derivatives not accounted for as hedging instruments under ASC 815 | Location in the Statements of Operations | Total Notional Amount of Futures Contracts Purchased/(Sold) ($) | Realized Gain (Loss) on Derivatives Recognized in Income ($) | Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income ($) | ||||||||
U.S. Large-Cap Core Equity Fund |
| |||||||||||
Equity Contracts | Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures | 26,024,946/(25,684,583) | 384,913 | 9,921 | ||||||||
Premier Growth Equity Fund |
| |||||||||||
Equity Contracts | Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures | 47,224,039/(47,748,704) | 465,505 | 22,801 | ||||||||
Small-Cap Equity Fund |
| |||||||||||
Equity Contracts | Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures | 259,531,033/(259,097,957) | 2,885,868 | (1,140,352) | ||||||||
International Equity Fund |
| |||||||||||
Equity Contracts | Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures | 232,895,116/(314,749,864) | 18,802 | 363,412 | ||||||||
Strategic Investment Fund |
| |||||||||||
Equity Contracts | Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures | 205,963,652/(218,126,346) | 5,202,842 | (891,741) | ||||||||
Interest Rate Contracts | Realized gain (loss) on futures, Increase/(decrease) in unrealized appreciation/ (depreciation) on Futures | 677,693,763/(689,031,235) | (1,447,836) | 14,392 | ||||||||
Income Fund |
| |||||||||||
Interest Rate Contracts | Realized gain (loss) on futures, Increase/(decrease) in unrealized appreciation/ (depreciation) on Futures | 889,180,287/(891,791,365) | (2,524,151) | 304,357 |
5. Line of Credit
The Trust (excluding the S&P 500 Index Fund) shares a revolving credit facility of up to $150 million with a number of its affiliates. The credit facility is with its custodian bank, State Street Bank and Trust Company (“State Street”). The current revolving credit facility requires the payment of a
commitment fee equal to 0.10% (became 0.125% effective October 29, 2014) per annum on the daily unused portion of the credit facility, payable quarterly by GEAM and included in the “unitary fee” paid by the Funds. In addition, the Trust has a $100 million uncommitted, unsecured line of credit with State Street.
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Notes to Financial Statements | September 30, 2014 |
Generally, borrowings under the credit facilities would accrue interest at the Federal Funds Rate plus 50 basis points (0.50%) and would be borne by the borrowing Fund. The maximum borrowing allowed by any one Fund is the
lesser of (i) 33.33% of the Funds’ total assets or (ii) 20% of its net assets. The credit facilities were not utilized by the Trust during the year ended September 30, 2014.
6. Fees and Compensation Paid to Affiliates
Advisory and Administration Fees paid to GEAM, a wholly-owned subsidiary of General Electric Company, for investment advisory and administrative services (“Management Fee”) is paid monthly based on the average daily net assets of each Fund. The advisory and administrative fee is stated in the following schedule:
Fund | Average Daily Net Assets of Fund | Advisory and Administration Fees | ||||
U.S. Equity Fund | First $25 million | 0.55 | % | |||
U.S. Large-Cap Core Equity Fund | Next $25 million | 0.45 | % | |||
Premier Growth Equity Fund | Over $50 million | 0.35 | % | |||
S&P 500 Index Fund | All assets | 0.15 | % | |||
Small-Cap Equity Fund | First $250 million | 0.95 | % | |||
Next $250 million | 0.90 | % | ||||
Over $500 million | 0.85 | % | ||||
International Equity Fund | First $25 million | 0.75 | % | |||
Next $50 million | 0.65 | % | ||||
Over $75 million | 0.55 | % | ||||
Strategic Investment Fund | First $25 million | 0.45 | % | |||
Next $25 million | 0.40 | % | ||||
Over $50 million | 0.35 | % | ||||
Income Fund | First $25 million | 0.35 | % | |||
Next $25 million | 0.30 | % | ||||
Next $50 million | 0.25 | % | ||||
Over $100 million | 0.20 | % |
GEAM had a contractual arrangement with each non-money market Fund to waive a portion of its Management Fee in an amount equal to the Management Fee earned by GEAM with respect to the Fund’s investment in the GE Institutional Money Market Fund (the “Fee Waiver Agreement”). Effective June 26, 2014, the State Street Institutional U.S. Government Money Market Fund replaced the GE Institutional Money Market Fund as the cash sweep vehicle for each Fund’s cash holdings. As a result, the Fee Waiver Agreement was terminated effective June 26, 2014.
Distribution and Shareholder Servicing Fees The Funds have adopted a Shareholder Servicing and Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940
Act with respect to each Fund. Each Fund pays GE Investment Distributors, Inc. (“GEID”), a wholly-owned subsidiary of GEAM and the Funds’ principal underwriter, a monthly fee for distribution and/or shareholder services provided, at an annual rate of the average daily net assets attributable to each applicable class of shares. The annual rate applicable is 0.25% for Service Class shares. Currently, Investment Class shares are not subject to a 12b-1 fee.
Trustee Compensation The Funds pay no compensation to their Trustees who are officers or employees of GEAM or its affiliates. Trustees who are not such officers or employees also serve in a similar capacity for other funds advised by GEAM. Compensation paid to unaffiliated
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Notes to Financial Statements | September 30, 2014 |
Trustees is reflected on the Statements of Operations. These fees are allocated pro rata across funds and share classes served by the Trustees and are based upon the relative net assets of each fund. (For additional information about Trustees compensation please refer to the Funds’ Statement of Additional Information).
7. Sub-Advisory Fees
For certain funds that have retained sub-advisers to manage all or a portion of the respective Fund’s assets, GEAM pays each sub-adviser an investment sub-advisory fee out of the Management Fee that it receives from the respective Fund. The investment sub-advisory fee is paid by GEAM monthly and is based upon the average daily
net assets of the respective Fund’s assets that are allocated to and managed by the sub-adviser. Each such sub-adviser is responsible for the day-to-day management of those assets of the Fund that are allocated to the sub-adviser, including the responsibility for making decisions to buy, sell or hold a particular security with respect to those assets. For their services, GEAM pays an investment sub-advisory fee to each of Palisade Capital Management, L.L.C., Champlain Investment Partners, LLC, GlobeFlex Capital, L.P., SouthernSun Asset Management, LLC and Kennedy Capital Management, Inc., sub-advisers to the Small-Cap Equity Fund, and SSgA Funds Management, Inc., sub-adviser to the S&P 500 Index Fund.
8. Investment Transactions
Purchases and Sales of Securities The cost of purchases and the proceeds from sales of investments, other than short-term securities, for the year ended September 30, 2014, were as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
U.S. Equity Fund | $ | — | $ | — | $ | 293,320,451 | $ | 331,902,819 | ||||||||
S&P 500 Index Fund | — | — | 5,695,721 | 19,363,342 | ||||||||||||
U.S. Large-Cap Core Equity Fund | — | — | 44,306,635 | 54,934,701 | ||||||||||||
Premier Growth Equity Fund | — | — | 83,275,797 | 92,096,083 | ||||||||||||
Small-Cap Equity Fund | — | — | 458,333,085 | 508,459,096 | ||||||||||||
International Equity Fund | — | — | 736,172,835 | 781,456,227 | ||||||||||||
Strategic Investment Fund | 835,938,942 | 811,251,214 | 566,744,493 | 654,352,165 | ||||||||||||
Income Fund | 823,661,998 | 802,581,568 | 149,706,784 | 192,050,029 |
Affiliated Investments Transactions with affiliated investments for the year ended September 30, 2014 were as follows:
S&P 500 Index Fund
Security | Value, Beginning of period | Cost of purchases | Proceeds from sales | Dividend/ Interest income | Realized gain (loss) | Value, end of period | ||||||||||||||||||
General Electric Co., Common Stock | $ | 747,112 | $ | 75,555 | $ | (310,856 | ) | $ | 18,319 | $ | 85,248 | $ | 550,881 |
9. Income Taxes
The Funds are subject to ASC 740, Income Taxes. ASC 740 provides guidance for financial accounting and reporting for the effects of income taxes that result from an entity’s activities during the year. ASC 740 also provides guidance regarding how certain uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires evaluation of tax
positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority. There are no adjustments to any Fund’s net assets required under ASC 740. Each Fund’s 2011, 2012, 2013 and 2014 fiscal years tax returns are still open to examination by the Federal and applicable state tax authorities.
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Notes to Financial Statements | September 30, 2014 |
At September 30, 2014, information on the tax cost of investments and distributable earnings on a tax basis was as follows:
Cost of Investment for Tax Purposes | Gross Tax | Net Tax Appreciation/ (Depreciation) | Undistributed Income | Undistributed Accum. Capital Gain/(Loss) | Late-Year Losses | |||||||||||||||||||||||||||
Fund | Appreciation | Depreciation | Investments | Derivatives/ Currency | ||||||||||||||||||||||||||||
U.S. Equity Fund | $ | 644,998,152 | $ | 195,264,233 | $ | (4,456,372 | ) | $ | 190,807,861 | $ | 39,862 | $ | 11,991,596 | $ | 63,605,898 | $ | — | |||||||||||||||
S&P 500 Index Fund | 28,230,883 | 11,348,539 | (223,776 | ) | 11,124,763 | (10,258 | ) | 465,329 | (20,213,149 | ) | — | |||||||||||||||||||||
U.S. Large-Cap Core Equity Fund | 81,884,011 | 18,235,897 | (535,029 | ) | 17,700,868 | (21,701 | ) | 2,188,590 | 12,710,694 | — | ||||||||||||||||||||||
Premier Growth Equity Fund | 297,942,617 | 134,794,993 | (284,387 | ) | 134,510,606 | (33,744 | ) | 2,889,097 | 32,092,175 | — | ||||||||||||||||||||||
Small-Cap Equity Fund | 1,026,609,683 | 267,448,822 | (41,493,284 | ) | 225,955,538 | (778,688 | ) | 9,900,616 | 109,351,210 | — | ||||||||||||||||||||||
International Equity Fund | 1,620,148,327 | 255,935,564 | (67,974,969 | ) | 187,960,595 | (180,240 | ) | 41,532,892 | (297,303,574 | ) | — | |||||||||||||||||||||
Strategic Investment Fund | 789,342,809 | 86,618,412 | (9,502,956 | ) | 77,115,456 | (929,405 | ) | 19,088,591 | 54,015,574 | — | ||||||||||||||||||||||
Income Fund | 338,048,046 | 4,667,656 | (3,411,776 | ) | 1,255,880 | (101,643 | ) | 295,679 | — | (729,859 | ) |
As of September 30, 2014, the following Funds have capital loss carryovers as indicated below. The capital loss carryover is available to offset future realized capital gains to the extent provided in the Internal Revenue Code and regulations thereunder. To the extent that these carryover losses are used to offset future capital gains, it is probable that the gains offset will not be distributed to shareholders.
Fund | Short Term | Long Term | Expires | |||||||||
S&P 500 Index Fund | $ | 19,010,402 | $ | — | 9/30/2018 | |||||||
1,202,747 | — | 9/30/2019 | ||||||||||
International Equity Fund | 157,047,881 | — | 9/30/2018 | |||||||||
140,255,693 | — | 9/30/2019 |
These amounts will be available to offset future taxable capital gains. Under the Regulated Investment Company Modernization Act of 2010, a Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
Fund capital loss carryovers were utilized as follows:
Fund | Amount | |||
S&P 500 Index Fund | $ | 6,610,769 | ||
International Equity Fund | 138,561,806 |
Any qualified late-year loss is deemed to arise on the first day of the Funds’ next tax year (if the Funds elect to defer such loss). Under this regime, generally, the Funds can elect to defer any post-October capital loss and/or any late-year ordinary loss as defined by the Internal Revenue Code.
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Notes to Financial Statements | September 30, 2014 |
The Funds elected to defer qualified late-year losses for the year ended September 30, 2014 as follows:
Fund | Capital | Ordinary | ||||||
Income Fund | $ | (729,859 | ) | $ | — |
Distributions to Shareholders The Income Fund declares net investment income dividends daily and pays them monthly. All other Funds declare and pay dividends from net investment income, if any, annually. All Funds declare and pay distributions annually from net realized capital gains in excess of capital loss carryforwards, if any. The character of income and gains to be distributed is
determined in accordance with income tax regulations which may differ from GAAP.
These differences include (but are not limited to) treatment of foreign taxes payable, investments in futures, investments in passive foreign investment companies, distributions from Real Estate Investment Trusts, losses deferred to offsetting positions, and losses deferred due to wash sale transactions.
The tax character of distributions paid during the years ended September 30, 2014 and September 30, 2013 is as follows:
September 30, 2014 | September 30, 2013 | |||||||||||||||
Fund | Ordinary Income | Long Term Capital Gains | Ordinary Income | Long Term Capital Gains | ||||||||||||
U.S. Equity Fund | $ | 15,343,882 | $ | 35,383,526 | $ | 10,336,872 | $ | — | ||||||||
S&P 500 Index Fund | 750,000 | — | 714,331 | — | ||||||||||||
U.S. Large-Cap Core Equity Fund | 5,493,995 | 13,835,426 | 7,120,344 | 14,254,095 | ||||||||||||
Premier Growth Equity Fund | 3,289,862 | 10,133,896 | 3,252,859 | — | ||||||||||||
Small-Cap Equity Fund | 20,072,748 | 102,397,930 | 17,216,640 | 60,916,886 | ||||||||||||
International Equity Fund | 30,469,900 | — | 40,222,047 | — | ||||||||||||
Strategic Investment Fund | 15,207,126 | 27,849,379 | 14,423,433 | — | ||||||||||||
Income Fund | 9,026,757 | — | 20,606,289 | 280,625 |
Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations. These reclassifications have no impact on net investment income, realized gains or losses, or the net asset value of any of the Funds. The calculation of net investment income per share in the Financial Highlights table excludes these adjustments.
Fund | Undistributed Net Investment Income | Accumulated Net Realized Gain/(Loss) | Unrealized Gain | Paid In Capital | ||||||||||||
U.S. Equity Fund | $ | (63,267 | ) | $ | 63,267 | $ | — | $ | — | |||||||
S&P 500 Index Fund | (15,144 | ) | 15,144 | — | — | |||||||||||
U.S. Large-Cap Core Equity Fund | (6,303 | ) | 6,303 | — | — | |||||||||||
Premier Growth Equity Fund | (63,593 | ) | 63,593 | — | — | |||||||||||
Small-Cap Equity Fund | (124,622 | ) | 184,592 | 274,773 | (334,743 | ) | ||||||||||
International Equity Fund | (715,627 | ) | 715,627 | — | — | |||||||||||
Strategic Investment Fund | (141,687 | ) | 141,687 | — | — |
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Report of Independent Registered Public Accounting Firm |
The Board of Trustees and Shareholders
GE Institutional Funds:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the GE Institutional U.S. Equity Fund, GE Institutional S&P 500 Index Fund, GE Institutional U.S. Large-Cap Core Equity Fund, GE Institutional Premier Growth Equity Fund, GE Institutional Small-Cap Equity Fund, GE Institutional International Equity Fund, GE Institutional Strategic Investment Fund, and GE Institutional Income Fund, each a series of GE Institutional Funds (collectively, “the Funds”), as of September 30, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the GE Institutional U.S. Equity Fund, GE Institutional S&P 500 Index Fund, GE Institutional U.S. Large-Cap Core Equity Fund, GE Institutional Premier Growth Equity Fund, GE Institutional Small-Cap Equity Fund, GE Institutional International Equity Fund, GE Institutional Strategic Investment Fund, and GE Institutional Income Fund as of September 30, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
November 24, 2014
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Tax Information | (Unaudited) |
The following fund intends to make an election under Internal Revenue Code Section 853. The election will allow shareholders to treat their attributable share of foreign taxes paid by the Fund to be paid by them directly. For the fiscal year ended September 30, 2014, the total amount of income received by the Fund from sources within foreign countries and possessions of the United States and the total amount of taxes paid by the Fund follows:
Fund | Total Foreign Source Income | Total Foreign Taxes Paid | ||||||
International Equity Fund | $ | 47,279,412 | $ | 3,870,031 |
For the fiscal year ended September 30, 2014, certain dividends paid by the Funds may be subject to a maximum income tax rate of 20% as provided by the American Taxpayer Relief Act of 2012. The following represent the amounts that may be considered qualified dividend income:
Fund | QDI | |||
U.S. Equity Fund | $ | 12,793,501 | ||
S&P 500 Index Fund | 750,000 | |||
U.S. Large-Cap Core Equity Fund | 1,766,612 | |||
Premier Growth Equity Fund | 5,162,254 | |||
Small-Cap Equity Fund | 10,605,192 | |||
International Equity Fund | 34,339,931 | |||
Strategic Investment Fund | 10,370,635 | |||
Income Fund | 20,155 |
For corporate shareholders the following represent the percentages of respective fund distributions that may be eligible for the dividends received deduction:
Fund | DRD | |||
U.S. Equity Fund | 77.92% | |||
S&P 500 Index Fund | 100.00% | |||
U.S. Large-Cap Core Equity Fund | 68.02% | |||
Premier Growth Equity Fund | 100.00% | |||
Small-Cap Equity Fund | 78.21% | |||
Strategic Investment Fund | 28.94% | |||
Income Fund | 0.22% |
For the year ended September 30, 2014, the following Funds hereby designate as capital gain dividends the amounts set forth, or the amount ultimately treated as capital gain net income:
Fund | Gross Amount | |||
U.S. Equity Fund | $ | 35,383,526 | ||
U.S. Large-Cap Core Equity Fund | 13,835,426 | |||
Premier Growth Equity Fund | 10,133,896 | |||
Small-Cap Equity Fund | 102,397,930 | |||
Strategic Investment Fund | 27,849,379 |
The amounts presented herein may differ from amounts presented elsewhere in the financial statements due to differences between tax and financial accounting principles. Please consult a tax advisor if you have any questions about Federal or State income tax laws or on how to prepare your tax returns. If you have specific questions about your Fund account, please consult your investment representative.
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Additional Information | (Unaudited) |
Information about Directors and Executive Officers:
The business and affairs of the Funds are managed under the direction of the Funds’ Board of Trustees. Information pertaining to the Trustees and officers of the Funds is set forth below.
Interested Trustees and Executive Officers
Jeanne M. La Porta
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 49
Position(s) Held with Fund Trustee and President
Term of Office and Length of Time Served Until successor is elected and qualified – Less than 1 year
Principal Occupation(s) During Past 5 Years Senior Vice President and Commercial Operations Leader at GEAM since March 2014; President of GE Institutional Funds and GE Investments Funds, Inc. since April 2014; President and Trustee of GEAM’s UCITs Funds since March 2014; Senior Vice President and Commercial Administrative Officer at GEAM from April 2010 to March 2014; Vice President of GE Institutional Funds since July 2003; Vice President of Elfun Funds and GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since October 2003; Secretary of GE Funds from July 2007 to September 2010 and Vice President from July 2007 to February 2011; Senior Vice President and Deputy General Counsel of GEAM from October 2007 to April 2010; Vice President and Assistant Secretary of Elfun Funds and GE Retirement Savings Plan Funds from July 2003 to June 2010; and Vice President and Associate General Counsel – Marketing and Client Services (formerly Asset Management Services) at GEAM from May 1997 to October 2007.
Number of Portfolios in Fund Complex Overseen by Trustee 24
Other Directorships Held by Trustee Director and President of GE Investments Funds, Inc. since 2014; Trustee of Elfun Funds since 2014; Director of GE Investment Distributors, Inc. since June 2011.
Matthew J. Simpson
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 53
Position(s) Held with Fund Trustee and Executive Vice President
Term of Office and Length of Time Served Until successor is elected and qualified – 7 years
Principal Occupation(s) During Past 5 Years Executive Vice President, General Counsel and Secretary of GEAM since July 2007; Secretary of Elfun Funds and GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since July 2007; Senior Vice President and General Counsel – Marketing and Client Services (formerly Asset Management Services) of GEAM and Senior Vice President and General Counsel of GE Asset Management Services from February 1997 to July 2007; Vice President and Associate General Counsel of GEAM from October 1992 to February 1997; Secretary of GE Institutional Funds and GE Investments Funds, Inc. from 1997 to July 2007 and Vice President from September 2003 to July 2007; Assistant Secretary of Elfun Funds and GE Retirement Savings Plan Funds from 1998 to July 2007 and Vice President from October 2003 to July 2007; and Secretary of GE Funds from 1993 to July 2007 and Vice President from September 2003 to July 2007.
Number of Portfolios in Fund Complex Overseen by Trustee 24
Other Directorships Held by Trustee Trustee of Elfun Funds, GE Retirement Savings Plan Funds and General Electric Pension Trust since July 2007; Director and Executive Vice President of GE Investments Funds, Inc. since July 2007; Director of GEAM since July 2007; Trustee and Executive Vice President of GE Funds from July 2007 to February 2011; and Director of GE Investment Distributors, Inc. since June 2011.
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Additional Information | (Unaudited) |
JoonWon Choe
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 45
Position(s) Held with Fund Vice President & Secretary
Term of Office and Length of Time Served Until successor is elected and qualified – 4 years
Principal Occupation(s) During Past 5 Years Senior Vice President and Deputy General Counsel of GEAM since March 2011; Vice President and Secretary of GE Investments Funds, Inc. since September 2010; Vice President and Assistant Secretary of Elfun Funds and GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since September 2010; Senior Vice President and Associate General Counsel of GEAM from June 2010 to March 2011; Vice President and Associate General Counsel of GEAM from November 2005 to June 2010 and Vice President and Secretary of GE Funds from September 2010 to February 2011.
Number of Portfolios in Fund Complex Overseen by Officer N/A
Other Directorships Held by Officer N/A
Robert Herlihy
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 47
Position(s) Held with Fund Chief Compliance Officer
Term of Office and Length of Time Served Until successor is elected and qualified – 9 years
Principal Occupation(s) During Past 5 Years Chief Compliance Officer of GEAM, GE Investments Funds, Inc., Elfun Funds, and GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since July 2005; Chief Compliance Officer of GE Funds from July 2005 to February 2011 and Manager of Fund Administration at GEAM from 2002 to 2005.
Number of Portfolios in Fund Complex Overseen by Officer N/A
Other Directorships Held by Officer N/A
Arthur A. Jensen
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 48
Position(s) Held with Fund Treasurer
Term of Office and Length of Time Served Until successor is elected and qualified – 3 years
Principal Occupation(s) During Past 5 Years Treasurer of GE Investments Funds, Inc., Elfun Funds and GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since June 2011; Mutual Funds Controller of GEAM since April 2011; Senior Vice President at Citigroup from 2008 to 2010 and Vice President at JPMorgan from 2005 to 2008.
Number of Portfolios in Fund Complex Overseen by Officer N/A
Other Directorships Held by Officer N/A
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Additional Information | (Unaudited) |
Non-Interested Trustees
John R. Costantino
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 68
Position(s) Held with Fund Chairman of the Board
Term of Office and Length of Time Served Until successor is elected and qualified – 17 years
Principal Occupation(s) During Past 5 Years General Partner, NGN Capital LLC since 2006; and Managing Director, Vice President of Walden Capital Management since 1996.
Number of Portfolios in Fund Complex Overseen by Trustee 16
Other Directorships Held by Trustee Director of GE Investments Funds, Inc. since 1997; Trustee of Fordham University from 1989 to 1995 and from 2001 to 2007 and Trustee Emeritus since 2007; Trustee of Neuroscience Research Institute since 1986; Trustee of GE Funds from 1993 to February 2011; Director of Artes Medical from 2006 to 2008 and Trustee of Gregorian University Foundation from 1992 to 2007.
R. Sheldon Johnson
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 68
Position(s) Held with Fund Trustee
Term of Office and Length of Time Served Until successor is elected and qualified – 3 years
Principal Occupation(s) During Past 5 Years Head of Global Institutional Equity Sales and Marketing at Morgan Stanley & Co., Inc. from 2002 to 2006 and Managing Director at Morgan Stanley & Co., Inc. from 1988 to 2006.
Number of Portfolios in Fund Complex Overseen by Trustee 16
Other Directorships Held by Trustee Director of GE Investments Funds, Inc. since April 2011 and Trustee of St. Lawrence University since 2003.
Donna M. Rapaccioli
Address c/o GEAM 1600 Summer St. Stamford, CT 06905
Age 51
Position(s) Held with Fund Trustee
Term of Office and Length of Time Served Until successor is elected and qualified – 2 years
Principal Occupation(s) During Past 5 Years Dean of the Gabelli School of Business since 2007 and Accounting Professor since 1987 at Fordham University.
Number of Portfolios in Fund Complex Overseen by Officer 16
Other Directorships Held by Officer Director of GE Investments Funds, Inc. since January 2012 and Trustee of Emmanuel College since 2010.
The Statement of Additional Information for the Funds includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 1-800-242-0134.
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Investment Team | (Unaudited) |
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.
David B. Carlson is Chief Investment Officer – U.S. Equities at GE Asset Management. He manages the overall U.S. equity investments for GE Asset Management. Mr. Carlson has served as the portfolio manager for the Premier Growth Equity Fund since the Fund’s commencement and as a portfolio manager for the U.S. Equity Fund since May 2011. Mr. Carlson joined GE Asset Management in 1982 as a securities analyst for investment operations. He became a Vice President for Mutual Fund Portfolios in 1987, a Senior Vice President in 1989 and an Executive Vice President in 2003.
Mike Cervi is a Senior Vice President of GE Asset Management and is a Managing Director of Portfolio Construction within GE Asset Management’s Investment Solutions team. He has been a member of the portfolio management team for the Small-Cap Equity Fund since May 2013. Mr. Cervi focuses on portfolio construction and manager research for a number of GE Asset Management’s portfolios including responsibility for defined benefit, defined contribution and sub-advised mutual funds accounts. Prior to his current position, Mr. Cervi led investment oversight of GE Asset Management’s multi-asset class client relationships. Mr. Cervi joined GE Asset Management in 2000 and has held several other roles within GE Asset Management including Shareholder Services Representative from 2000 to 2001, Institutional Marketing Analyst from 2001 to 2003, Director, Product Management – U.S. Equities from 2003 to 2005, Product Portfolio Manager – U.S. Equities from 2005 to 2006, Vice President, Manager of Investment Relationships from 2006 to 2009 and Managing Director, Total Plan Management from 2009 to 2013. He became a Senior Vice President in 2009 and has served as the Managing Director of Portfolio Construction since April 2013.
Stephen V. Gelhaus is a Senior Vice President of GE Asset Management. He has been a member of the portfolio management teams for the U.S. Equity Fund and the
U.S. Large-Cap Core 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 U.S. Large-Cap Core Equity Fund in August 1999.
William M. Healey is a Senior Vice President and Chief Investment Officer – Core Fixed Income Investments of GE Asset Management. He has served on the portfolio management team for the Income Fund since September 1997. Mr. Healey joined GE Asset Management in April 1996 as a portfolio manager, became Vice President in June 2001, Senior Vice President in January 2007 and Chief Investment Officer – Core Fixed Income Investments in April 2012. Prior to joining GE Asset Management, Mr. Healey spent over 10 years in the fixed income group at MetLife.
Mark H. Johnson is a Senior Vice President and Chief Investment Officer – Long Duration Fixed Income & Insurance Investments of GE Asset Management. He has been a member of the portfolio management team for the Income Fund since 2007. Mr. Johnson joined GE in 1998 and GE Asset Management as a Vice President and portfolio manager in 2002. He became Senior Vice President in 2007 and Chief Investment Officer – Long Duration Fixed Income & Insurance Investments in April 2012. Prior to joining GE Asset Management, Mr. Johnson held positions at various insurance companies and public accounting firms.
Ralph R. Layman is an Executive Vice President; Chief Investment Officer Emeritus – Public Equities and a Director of GE Asset Management. Mr. Layman has led the team of portfolio managers for the International Equity Fund since the Fund’s commencement. Mr. Layman joined GE Asset Management in 1991 as Senior Vice President for International Investments, became an Executive Vice President in 1992, served as President – International Equities from March 2007 to July 2009, President and Chief Investment Officer – Public Equities from July 2009 to March 2012, and has served as Chief Investment Officer Emeritus – Public Equities since March 2012.
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Investment Team | (Unaudited) |
Portfolio Manager Biographies (continued)
Jeffrey Palma is a Senior Vice President and Chief Market Strategist of GE Asset Management and is a portfolio manager for Strategic Investment Fund. He has been a member of the portfolio management team for the Strategic Investment Fund since May 2013. Prior to joining GE Asset Management since 2012, Mr. Palma worked for UBS Investment Bank where he held a variety of global research and macro strategy roles supporting UBS’ global equities and fixed income businesses including Managing Director, Head of Global Equity Strategy from 2007 to 2012, Executive Director, Global Asset Allocation Strategist from 2001 to 2007 and Director, U.S. Economist from 1999 to 2001.
Paul C. Reinhardt is a Senior Vice President of GE Asset Management. He has been a portfolio manager for the U.S. Equity Fund since January 2001 and for the U.S. Large-Cap Core 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.
Michael J. Solecki is a Senior Vice President and Chief Investment Officer – International Equities of GE Asset Management. He has served as a portfolio manager for the International Equity Fund since August 1999. He joined GE Asset Management in 1990 as an international equity analyst. He became a Vice President for international equity portfolios in 1996, Senior Vice President in 2000, Co-Chief Investment Officer – International Equities in March 2009 and Chief Investment Officer – International Equities since March 2012.
David Wiederecht is the President and Chief Investment Officer – Investment Solutions and a Director of GE Asset Management. He has served as a portfolio manager for the Small-Cap Equity Fund since September 2010, and has served as portfolio manager for the Strategic Investment Fund since January 2011. 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, Managing Director – Alternative Investments from 2004 to 2008, and President and Chief Investment Officer – Investment Solutions since 2008.
Portfolio Manager Biographies (Sub-Advisers)
Karl A. Schneider, CAIA is a portfolio manager for the S&P 500 Index Fund. Mr. Schneider is a Vice President of SSgA FM and Head of U.S. Equity Strategies for the Global Equity Beta Solutions Team (GEBS), where in addition to overseeing the management of the U.S. equity index strategies, he also serves as a portfolio manager for a number of the group’s passive equity portfolios. Previously within GEBS, he served as a portfolio manager and product specialist for synthetic beta strategies, including commodities, buy/write, and hedge fund replication. Mr. Schneider is also a member of the SSgA Derivatives Committee. Prior to joining GEBS, Mr. Schneider worked as a portfolio manager in SSgA’s Currency Management Group, managing both active currency selection and traditional passive hedging overlay portfolios. He joined State Street in 1996. Mr. Schneider holds a BS in Finance and Investments from Babson College and a MS in Finance from Boston College. He has earned the Chartered Alternative Investment Analyst designation and is a member of the CAIA Association.
John Tucker, CFA is a Portfolio Manager for the S&P 500 Index Fund. Mr. Tucker is a Senior Managing Director of SSgA FM and Co-Head of Passive Equity Strategies in North America. He is responsible for overseeing the management of all equity index strategies and exchange traded funds managed in North America. He is a member of the Senior Management Group. Previously, Mr. Tucker was head of the Structured Products group in SSgA’s London office, where he was responsible for the management of all index strategies in the firm’s second largest investment center. He joined State Street in 1988. Mr. Tucker received a BA in Economics from Trinity College and a MS in Finance from Boston College. He has also earned the Chartered Financial Analyst designation and is a member of the Boston Security Analysts Society and the CFA Institute. In addition, Mr. Tucker is a member of The Russell Index Client Advisory Board and The S&P U.S. Index Advisory Panel.
Marc Shapiro is a portfolio manager for the Small-Cap Equity Fund. Mr. Shapiro joined Palisade in February 2004 and serves as the portfolio manager for Palisade’s
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Investment Team | (Unaudited) |
Portfolio Manager Biographies (concluded)
Institutional Small Cap Core Equity portfolios, and is a member of Palisade’s Investment Policy Committee. Mr. Shapiro became a senior portfolio manager in March 2012, has served as the strategy’s associate portfolio manager and as a Senior Vice President of Research for Palisade’s Small Cap Core Equity portfolio since October 2006, with lead research responsibility for a number of sectors, including Information Technology and Telecom Services. Prior to joining Palisade, Mr. Shapiro was a senior equity analyst at Awad Asset Management and a small cap analyst at Schroders. Mr. Shapiro received his M.S. in Finance from Drexel University and his B.S. in Finance from the College of New Jersey.
Dennison T. (“Dan”) Veru is a portfolio manager for the Small-Cap Equity Fund. Mr. Veru is Executive Vice President and Chief Investment Officer – Institutional, of Palisade. Since joining Palisade in March 2000, Mr. Veru has been a member of Palisade’s Investment Policy Committee and became a principal of Palisade in July 2004. Prior to joining Palisade, he was President and Director of Research of Awad Asset Management, a division of Raymond James Financial. Mr. Veru has been a frequent guest on CNBC, CNN, Fox and Bloomberg television. Prior to Awad, Mr. Veru worked with the Palisade team from 1984 through 1992. Mr. Veru graduated from Franklin & Marshall College.
Scott T. Brayman, CFA, is a portfolio manager for the Small-Cap Equity Fund. Mr. Brayman is a Managing Partner and Chief Investment Officer at Champlain and has more than 27 years of investment management experience. Mr. Brayman leads the investment team for both the small and mid-cap strategies at Champlain. Prior to joining Champlain in 2004, Mr. Brayman was a Senior Vice President and served as a portfolio manager at NL Capital Management, Inc. from 2003 to 2004, and served as a portfolio manager with Sentinel Advisers, Inc. from 1996 to 2004, where he was responsible for managing the small-cap and core mid-cap strategies. Mr. Brayman began his career as a credit analyst with the First National Bank of Maryland.
Robert J. Anslow, is a portfolio manager for the Small-Cap Equity Fund. Mr. Anslow is the Managing
Partner and Chief Investment Officer responsible for all portfolio management and research activities at GlobeFlex and has more than 30 years of investment management experience. Prior to co-founding GlobeFlex in 1994, Mr. Anslow was a Director of the Systematic and Global Portfolio Management/Research Group at Nicholas-Applegate Capital Management (“Nicholas-Applegate”) from 1986 to 1994, where he built the first systematic process for international investing. Prior to Nicholas-Applegate, Mr. Anslow was responsible for systematic portfolio management and research processes at two major investment institutions: the California Public Employee’s Retirement System (CalPERS) and BayBanks Investment Management of Boston.
Michael W. Cook, CFA, is a portfolio manager for the Small-Cap Equity Fund. Mr. Cook is the Chief Executive Officer and Chief Investment Officer at SouthernSun responsible for all portfolio management activities for the firm and has more than 25 years of investment management experience. Prior to founding SouthernSun in 1989, Mr. Cook was a portfolio manager/analyst at Front Street Capital Management from 1986 to 1988, and was an account executive at Merrill Lynch from 1985 to 1986.
Frank Latuda, Jr., CFA, is a portfolio manager for the Small-Cap Equity Fund. Mr. Latuda is a Vice President, Director and Chief Investment Officer at Kennedy as well as portfolio manager of Kennedy’s Small Cap Value I, Mid Cap Value, All Cap Value and SMID Cap Value separately-managed portfolios. As Chief Investment Officer, Mr. Latuda also serves as Chairman of Kennedy’s Investment Policy Committee. Mr. Latuda joined Kennedy as an equity analyst in 1997 and served as Director of Research from 1998 until 2000. He has been portfolio manager since October 2000, when he took over the Small Cap Value I portfolio. Prior to joining Kennedy, he was an analyst with Burns, Pauli, Mahoney Company. Mr. Latuda earned a B.S. in Electrical Engineering from the University of Notre Dame, as well as an M.S. in Electrical Engineering and an M.B.A. from the University of Illinois.
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Investment Team | (Unaudited) |
Investment Adviser and Administrator
GE Asset Management Incorporated
Trustees
John R. Costantino, Chairman
R. Sheldon Johnson
Jeanne M. La Porta
Donna M. Rapaccioli
Matthew J. Simpson
Secretary
JoonWon Choe
Assistant Secretary
Michelle Matzelle
Treasurer
Arthur A. Jensen
Assistant Treasurer
Ryan Hunter
Distributor
GE Investment Distributors, Inc.
Member FINRA and SIPC
Custodian
State Street Bank & Trust Company
At GE Asset Management, we’re dedicated to providing the investment options you’ll need to tailor your financial portfolio to every stage of your life. Each member of the GE Family of Funds is managed according to the same principles of integrity and quality that have guided GE over the past century, and have made it the world-class company that it is today. Each fund draws strength from a heritage of investment management experience that spans more than 80 years. Whether you’re creating a new investment portfolio or adding to an established one, the GE Family of Funds offers an array of professionally managed investment options that will help you meet a lifetime of financial needs.
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(Unaudited)
M O R N I N G S T A R R A T I N G S TM Through September 30, 2014
FUND (CATEGORY) | NUMBER OF FUNDS IN CATEGORY | STAR RATING | ||||||||||||||||||||||
GE Institutional S&P 500 Index Fund, Investment Class (Large Blend) |
| |||||||||||||||||||||||
Overall Rating | 1,698 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
3-year | 1,356 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
5-year | 1,216 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
10-year | 816 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
GE Institutional U.S. Large-Cap Core Equity Fund, Investment Class (Large Blend) |
| |||||||||||||||||||||||
Overall Rating | 1,698 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
3-year | 1,356 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
5-year | 1,216 | ¶ | ¶ | ¶ | ||||||||||||||||||||
10-year | 816 | ¶ | ¶ | ¶ | ¶ | ¶ | ||||||||||||||||||
GE Institutional U.S. Large-Cap Core Equity Fund, Service Class (Large Blend) |
| |||||||||||||||||||||||
Overall Rating | 1,698 | ¶ | ¶ | ¶ | ||||||||||||||||||||
3-year | 1,356 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
5-year | 1,216 | ¶ | ¶ | ¶ | ||||||||||||||||||||
GE Institutional Small-Cap Equity Fund, Investment Class (Small Blend) |
| |||||||||||||||||||||||
Overall Rating | 793 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
3-year | 704 | ¶ | ¶ | ¶ | ||||||||||||||||||||
5-year | 618 | ¶ | ¶ | ¶ | ¶ | ¶ | ||||||||||||||||||
10-year | 355 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
GE Institutional Small-Cap Equity Fund, Service Class (Small Blend) |
| |||||||||||||||||||||||
Overall Rating | 793 | ¶ | ¶ | ¶ | ¶ | |||||||||||||||||||
3-year | 704 | ¶ | ¶ | ¶ | ||||||||||||||||||||
5-year | 618 | ¶ | ¶ | ¶ | ¶ |
Past performance is no guarantee of future results. ©2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Ratings for other GE Institutional Funds or other classes of shares may be different. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The overall Morningstar RatingTM for a fund is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics.
Before investing in a GE Institutional Fund, you should carefully consider the investment objectives, risks and charges and expenses of the Fund. For a free copy of a Fund’s prospectus and summary prospectus, which contain this and other information, please visit our website at www.geam.com or call 1-800-242-0134. Please read the Fund prospectus carefully before you invest.
GE Investment Distributors, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of GE Asset Management Incorporated, the investment adviser of the GE Institutional Funds.
This does not constitute a part of the Funds’ Shareholder Report
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Investment Adviser
GE Asset Management Incorporated
1600 Summer Street
P.O. Box 7900
Stamford, CT 06904-7900
Distributor
GE Investment Distributors, Inc.
member FINRA and SIPC
1600 Summer Street
P.O. Box 7900
Stamford, CT 06904-7900
www.geam.com
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q, as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies (if any) relating to portfolio securities is available without charge (i) upon request, by calling 1-800-242-0134; (ii) on the Fund’s website at http://www.geam.com; and (iii) on the Commission’s website at http://www.sec.gov. The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC – information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Information (if any) regarding how the Fund voted proxies relating to portfolio securities during the most recently disclosed 12-months period ended June 30 is available without charge (i) through the Fund’s website at http://www.geam.com; and (ii) on the Commission’s website at http://www.sec.gov.
This does not constitute a part of the Funds’ Shareholder Report | GEIN-1 (9/14) |
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Item 2. | Code of Ethics. |
The Registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR and is included in the following link:
https://www.geam.com/ExternalWar/common/docs/pdf/Spirit_Letter.pdf
There have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition set forth in paragraph (b) of Item 2 of Form N-CSR during the period covered by this report.
Item 3. | Audit Committee Financial Expert. |
The Board of Trustees of the Registrant has determined that John R. Costantino and Donna M. Rapaccioli are designated as the audit committee financial experts for the Registrant; and further that it is the finding of the Board of Trustees that Mr. Costantino and Ms. Rapaccioli, the audit committee financial experts, qualify as being “independent” pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Item 4. | Principal Accountant Fees and Services. |
(a) AUDIT FEES. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods were $163,600 in 2013 and $153,700 in 2014.
(b) AUDIT RELATED FEES. There were no fees billed by the Auditor for assurance and related services that were related to the performance of the audit of the Registrant during the Reporting Periods.
(c) TAX FEES. There were no fees billed for professional services rendered by the Auditor for tax compliance, tax advice or tax planning for the Registrant during the Reporting Periods.
(d) ALL OTHER FEES. There were no fees billed for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item for the Registrant during the Reporting Periods.
(e)(1) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES. The Audit Committee of the GE Institutional Funds (the “Funds”) Board of Trustees is responsible, among other things, for the appointment, compensation and oversight of the work of the Funds’ Auditor. As part of this responsibility and to ensure that the Auditor’s independence is not impaired, the Audit Committee (1) pre-approves the audit and non-audit
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services provided to the Funds by the Auditor, and (2) all non-audit services provided to the Funds’ investment adviser and covered affiliates (as defined in the Audit Committee Charter) that provide ongoing services to the Funds if the services directly impact the Funds’ operations or financial reporting, in accordance with the Audit Committee Charter. The following excerpt from the Audit Committee Charter sets forth the pre-approval policies and procedures:
Pre-Approval of Audit Related Services and Permissible Non-Audit Services. The Audit Committee shall pre-approve both audit (including audit, review, and attest) services and permissible non-audit services provided to the Fund and, if the nature of the engagement relates directly to the operations and financial reporting of the Fund, permissible non-audit services provided to any Covered Affiliate.
The Audit Committee may determine to delegate the authority to grant pre-approvals to one or more Audit Committee members, each acting on behalf of the Audit Committee. In this event, the member of the Audit Committee so delegated shall report each delegated pre-approval to the Audit Committee at its next regularly scheduled meeting. The Audit Committee may also adopt and follow, in lieu of explicit pre-approval described above, written policies and procedures detailed as to the particular service, designed to safeguard the continued independence of the Auditor, consistent with the requirements of the Investment Company Act of 1940, as amended, and SEC regulations there under.
Notwithstanding the foregoing, the pre-approval requirement concerning permissible non-audit services provided to the Fund or any Covered Affiliate is waived if: (1) the aggregate amount of all such non-audit services provided constitutes no more than five percent (5%) of the total amount of revenues paid to the Auditor by the Fund and the Covered Affiliates during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee, (2) the non-audit services were not recognized as non-audit services at the time of the engagement, and (3) such non-audit services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee or one or more designated members of the Audit Committee prior to the completion of the audit.
(2) PERCENTAGE OF SERVICES DESCRIBED IN PARAGRAPHS (b) THROUGH (d) APPROVED BY AUDIT COMMITTEE. No fees were charged during the Reporting Period for audit related, tax or other services as indicated in sections (b) through (d) of this Item.
(f) Not applicable.
(g) NON-AUDIT FEES. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the Registrant’s adviser (“Service Affiliates”), for the Reporting Periods were $0 in 2013 and $0 in 2014.
(h) AUDITOR INDEPENDENCE. There were no non-audit services rendered to Service Affiliates during the Reporting Period that were not pre-approved.
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Item 5. | Audit Committee of Listed Registrants. |
Applicable only to Closed-End Management Investment Companies.
Item 6. | Schedule of Investments. |
(a) Schedule of Investments is included as part of Item 1 of the Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Applicable only to Closed-End Management Investment Companies.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Applicable only to Closed-End Management Investment Companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Applicable only to Closed-End Management Investment Companies.
Item 10. | Submission of Matters to a Vote of Security Holders. |
During the reporting period, there have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. | Controls and Procedures. |
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of the report included in Item 1 of this Form N-CSR, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this Form N-CSR that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
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Item 12. | Exhibits. |
(a)(1) The Code of Ethics that applies to the Registrant’s principal executive officer and principal financial officer is attached hereto.
(a)(2) The certifications required by Rule 30a-2(a) of the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) The certifications by the Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) of the 1940 Act, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GE Institutional Funds | ||
By: | /s/ Jeanne M. La Porta | |
Jeanne M. La Porta | ||
President, GE Institutional Funds | ||
Date: | November 24, 2014 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Jeanne M. La Porta | |
Jeanne M. La Porta | ||
President, GE Institutional Funds | ||
Date: | November 24, 2014 |
By: | /s/ Arthur A. Jensen | |
Arthur A. Jensen | ||
Treasurer, GE Institutional Funds | ||
Date: | November 24, 2014 |