GE sees no impact on results from fund redemptions

BOSTON (Reuters) - General Electric Co (GE.N) sees no impact on fourth quarter or full-year results after some outside investors liquidated their holdings in a fund operated by the diversified manufacturer's money-management arm, a GE spokesman said on Thursday.

"This has no impact on operations," spokesman Russell Wilkerson said of the redemptions by about 10 outside investors.

He reiterated GE's forecast for profit of 67 cents to 69 cents per share for the fourth quarter and $2.19 to $2.22 per share for the year.

The fund in question, the GEAM Trust Enhanced Cash Fund, now has about $5 billion in assets, down from $5.6 billion when GE gave outside investors a chance to cash in their investments at 96 cents on the dollar, Wilkerson said.

GE's money-management arm, GE Asset Management, oversees the company's $60 billion in pension funds. Wilkerson said the GEAM fund in question does not hold collateralized debt obligations or structured investment vehicles. CDOs and SIVs are investment pools that invest in mortgages, which have fallen in value amid the credit crunch.

"You basically had $600 million of outside investor money go," he said. "So if you look at the loss associated with that, their loss, of 4 cents on the dollar, that brings you to about a $24 million loss. Across roughly 10 investors, that's about $2 million to $3 million loss per investor, depending on their holding."

GE shares were down 43 cents, or 1 percent, at $38.58 in early trading on the New York Stock Exchange.

(Editing by John Wallace)