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: 811-23429
HOMESTEAD FUNDS TRUST
(Exact name of registrant as specified in charter)
4301 Wilson Boulevard
Arlington, VA 22203
(Address of principal executive office – Zip code)
Danielle Sieverling
Homestead Funds Trust
4301 Wilson Boulevard
Arlington, VA 22203
(Name and address of agent for service)
Copies to:
Amy Ward Pershkow, Esq.
Vedder Price P.C.
1401 New York Avenue
Washington, D.C. 20005 (Name and addresses of agent for service)
Registrant's telephone number, including area code: 800-258-3030
Date of fiscal year end: December 31
Date of reporting period: December 31, 2023
Item 1. Reports to Stockholders.
(a)The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).
(b)Not applicable.
1 | ||
Performance Evaluation | ||
2 | ||
4 | ||
6 | ||
8 | ||
10 | ||
12 | ||
14 | ||
16 | ||
18 | ||
20 | ||
22 | ||
24 | ||
38 | ||
Portfolio of Investments | ||
39 | ||
41 | ||
44 | ||
51 | ||
59 | ||
64 | ||
65 | ||
67 | ||
69 | ||
71 |
74 | ||
76 | ||
78 | ||
Financial Highlights | ||
84 | ||
85 | ||
86 | ||
87 | ||
88 | ||
89 | ||
90 | ||
91 | ||
92 | ||
93 | ||
94 | ||
104 | ||
107 | ||
108 |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
Daily Income Fund | 4.58 | 1.47 | 0.86 |
Yield | |||
Annualized 7-day current yield quoted 12/31/23 | 4.82% |
Security Diversification | ||
% of Total Investments | ||
as of 12/31/22 | as of 12/31/23 | |
U.S. government and agency obligations | 81.2 | 80.5 |
Short-term and other assets* | 18.8 | 19.5 |
Total | 100.0% | 100.0% |
Maturity | |||||
as of 12/31/22 | as of 12/31/23 | ||||
Average weighted maturity | 34 days | 41 days |
Investment Adviser: Homestead Advisers | |
Mauricio Agudelo, CFA Head of Fixed-Income Investments BS, Finance, The University of Maryland, Robert H. Smith School of Business | |
Ivan Naranjo, CFA, FRM Fixed-Income Portfolio Manager BS, Finance, The University of Maryland, Robert H. Smith School of Business |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
Short-Term Government Securities Fund | 4.68 | 1.04 | 0.93 | ||||
ICE BofA 1-5 Year U.S. Treasury Index | 4.30 | 1.21 | 1.15 |
Security Diversification | ||
% of Total Investments | ||
as of 12/31/22 | as of 12/31/23 | |
U.S. government and agency obligations | 66.6 | 61.0 |
Mortgage-backed securities | 1.1 | 16.9 |
Corporate bonds—government guaranteed | 25.8 | 15.9 |
Asset-backed securities | 3.1 | 3.1 |
Corporate bonds—other | 1.6 | 2.6 |
Municipal bonds | 0.1 | 0.0 |
Short-term and other assets* | 1.7 | 0.5 |
Total | 100.0% | 100.0% |
Maturity | |||||
as of 12/31/22 | as of 12/31/23 | ||||
Average weighted maturity | 2.48 | 2.64 |
Investment Adviser: Homestead Advisers | |
Mauricio Agudelo, CFA Head of Fixed-Income Investments BS, Finance, The University of Maryland, Robert H. Smith School of Business | |
Ivan Naranjo, CFA, FRM Fixed-Income Portfolio Manager BS, Finance, The University of Maryland, Robert H. Smith School of Business |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
Short-Term Bond Fund | 5.40 | 1.48 | 1.45 | ||||
ICE BofA 1-5 Year Corp./Gov. Index | 4.89 | 1.55 | 1.46 |
Security Diversification | ||
% of Total Investments | ||
as of 12/31/22 | as of 12/31/23 | |
U.S. government and agency obligations | 51.4 | 38.9 |
Corporate bonds—other | 26.1 | 33.4 |
Asset-backed securities | 10.4 | 9.9 |
Yankee bonds | 7.3 | 7.8 |
Mortgage-backed securities | 0.9 | 7.1 |
Corporate bonds—government guaranteed | 2.1 | 1.1 |
Municipal bonds | 0.6 | 0.6 |
Short-term and other assets | 1.2 | 1.2 |
Total | 100.0% | 100.0% |
Maturity | |||||
as of 12/31/22 | as of 12/31/23 | ||||
Average weighted maturity | 2.70 | 2.67 |
Investment Adviser: Homestead Advisers | |
Mauricio Agudelo, CFA Head of Fixed-Income Investments BS, Finance, The University of Maryland, Robert H. Smith School of Business | |
Ivan Naranjo, CFA, FRM Fixed-Income Portfolio Manager BS, Finance, The University of Maryland, Robert H. Smith School of Business |
Average Annual Total Returns (periods ended 12/31/23) | |||||
1 YR % | Since Inception % | ||||
Intermediate Bond Fund | 6.35 | 0.77 | |||
Bloomberg U.S. Aggregate Index | 5.53 | 0.55 |
Security Diversification | ||
% of Total Investments | ||
as of 12/31/22 | as of 12/31/23 | |
Mortgage-backed securities | 22.3 | 33.6 |
Corporate bonds—other | 23.0 | 29.7 |
U.S. government and agency obligations | 34.5 | 17.2 |
Asset-backed securities | 9.2 | 8.3 |
Yankee bonds | 4.9 | 5.9 |
Municipal bonds | 2.5 | 1.8 |
Corporate bonds—government guaranteed | 0.4 | 0.1 |
Short-term and other assets | 3.2 | 3.4 |
Total | 100.0% | 100.0% |
Maturity | |||||
as of 12/31/22 | as of 12/31/23 | ||||
Average weighted maturity | 8.34 | 8.41 |
Investment Adviser: Homestead Advisers | |
Mark Iong, CFA Equity Portfolio Manager BS, Operations Research and Information Engineering, Cornell | |
Ivan Naranjo, CFA, FRM Fixed-Income Portfolio Manager BS, Finance, The University of Maryland, Robert H. Smith School of Business | |
Homestead Advisers' Jim Polk, head of equity investments, and Mauricio Agudelo, head of fixed-income investments, co-manage this fund with the individuals named above. Their bios appear in adjacent fund manager letters. |
Average Annual Total Returns (periods ended 12/31/23) | |||||
1 YR % | Since Inception % | ||||
Rural America Growth & Income Fund | 6.74 | -1.59 | |||
Blended Index* | 17.45 | 2.81 | |||
Russell 3000 Index** | 25.96 | 4.84 | |||
Bloomberg Intermediate U.S. Government/Credit Bond Index** | 5.24 | -1.32 |
Security Diversification | |
% of Total Investments as of 12/31/23 | |
Common stocks | 57.2 |
Health care | 9.8 |
Industrials | 9.6 |
Information technology | 8.6 |
Financials | 7.2 |
Consumer discretionary | 7.0 |
Real estate | 4.1 |
Materials | 3.9 |
Energy | 3.3 |
Consumer staples | 2.0 |
Communication services | 1.7 |
U.S. government and agency obligations | 22.7 |
Corporate bonds—other | 9.8 |
Asset-backed securities | 2.0 |
Mortgage-backed securities | 1.8 |
Municipal bonds | 1.2 |
Short-term and other assets | 5.3 |
100.0% |
Top 10 Holdings | |||
% of Total Investments as of 12/31/23 | |||
Federal Farm Credit Bank, 05/03/32, 4.09% | 3.2 | ||
U.S. Treasury Note, 11/15/26, 4.43% | 2.8 | ||
Federal Farm Credit Bank, 08/15/28, 3.87% | 2.7 | ||
Zoetis Inc. | 2.4 | ||
Deere & Co. | 2.1 | ||
Federal Farm Credit Bank, 09/27/29, 4.00% | 2.0 | ||
Federal Farm Credit Bank, 02/25/26, 3.32% | 2.0 | ||
Federal Farm Credit Bank, 10/21/25, 0.52% | 1.9 | ||
Fastenal Co. | 1.9 | ||
Stryker Corp. | 1.9 | ||
Total | 22.9% |
Maturity | |||||
as of 12/31/22 | as of 12/31/23 | ||||
Average weighted maturity | 4.17 | 4.11 |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
Stock Index Fund | 25.73 | 15.12 | 11.45 | ||||
S&P 500 Stock Index | 26.29 | 15.69 | 12.03 |
Sector Diversification | |||
% of Total Investments as of 12/31/23 | |||
Information technology | 28.7 | ||
Financials | 13.5 | ||
Health care | 12.5 | ||
Consumer discretionary | 10.8 | ||
Industrials | 8.8 | ||
Communication | 8.5 | ||
Consumer staples | 6.1 | ||
Energy | 3.9 | ||
Real estate | 2.5 | ||
Materials | 2.4 | ||
Utilities | 2.3 | ||
Total | 100.0% |
Top 10 Equity Holdings | |||
% of Total Investments as of 12/31/23 | |||
Apple, Inc. | 7.0 | ||
Microsoft Corp. | 6.9 | ||
Alphabet, Inc. | 3.8 | ||
Amazon.com, Inc. | 3.4 | ||
NVIDIA Corp. | 3.0 | ||
Meta Platforms, Inc. | 2.0 | ||
Tesla Inc. | 1.7 | ||
Berkshire Hathaway, Inc. | 1.6 | ||
JPMorgan Chase & Co. | 1.2 | ||
Broadcom Inc. | 1.2 | ||
Total | 31.8% |
Investment Adviser: Homestead Advisers | |
Mark Iong, CFA Equity Portfolio Manager BS, Operations Research and Information Engineering, Cornell | |
Jim Polk, CFA Head of Equity Investments BA, English, Colby College; MBA, The Olin Graduate School of Business at Babson College |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
Value Fund | 12.86 | 12.88 | 10.20 | ||||
Russell 1000 Value Index | 11.46 | 10.91 | 8.40 |
Sector Diversification | |||
% of Total Investments as of 12/31/23 | |||
Financials | 20.6 | ||
Health care | 18.2 | ||
Industrials | 16.5 | ||
Information technology | 8.3 | ||
Energy | 7.6 | ||
Consumer discretionary | 7.5 | ||
Communication services | 7.4 | ||
Materials | 6.8 | ||
Real estate | 5.1 | ||
Consumer staples | 0.9 | ||
Short-term and other assets | 1.1 | ||
Total | 100.0% |
Top 10 Equity Holdings | |||
% of Total Investments as of 12/31/23 | |||
JPMorgan Chase & Co. | 4.1 | ||
Parker-Hannifin Corp. | 4.0 | ||
Honeywell International, Inc. | 3.6 | ||
Meta Platforms, Inc. | 3.1 | ||
Goldman Sachs Group, Inc. | 3.1 | ||
Abbott Laboratories | 3.1 | ||
AbbVie Inc. | 2.9 | ||
Alphabet, Inc. | 2.9 | ||
ConocoPhillips | 2.9 | ||
Microsoft Corp. | 2.8 | ||
Total | 32.5% |
Subadviser: T. Rowe Price Associates | |
Taymour Tamaddon, CFA Portfolio Manager BS, Applied Physics, Cornell University; MBA, Finance, Dartmouth |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
Growth Fund | 47.81 | 15.44 | 13.57 | ||||
Russell 1000 Growth Index | 42.68 | 19.50 | 14.86 |
Sector Diversification | |||
% of Total Investments as of 12/31/23 | |||
Information technology | 41.0 | ||
Health care | 16.0 | ||
Communication services | 14.3 | ||
Consumer discretionary | 12.2 | ||
Financials | 10.8 | ||
Industrials | 2.5 | ||
Consumer staples | 1.6 | ||
Energy | 0.7 | ||
Short-term and other assets | 0.9 | ||
Total | 100.0% |
Top 10 Equity Holdings | |||
% of Total Investments as of 12/31/23 | |||
Microsoft Corp. | 13.2 | ||
Amazon.com, Inc. | 7.2 | ||
Apple, Inc. | 7.1 | ||
Alphabet, Inc. | 6.9 | ||
NVIDIA Corp. | 5.3 | ||
Meta Platforms, Inc. | 4.2 | ||
UnitedHealth Group, Inc. | 3.9 | ||
Intuit, Inc. | 3.9 | ||
Mastercard Inc. | 3.1 | ||
Fiserv, Inc. | 2.9 | ||
Total | 57.7% |
Subadviser: Harding Loevner LP | |
Ferrill Roll, CFA Co-Lead Portfolio Manager | Babatunde Ojo, CFA Portfolio Manager |
Andrew West, CFA Co-Lead Portfolio Manager | Patrick Todd, CFA Portfolio Manager |
Bryan Lloyd, CFA Portfolio Manager |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
International Equity Fund* | 15.82 | 9.52 | 4.97 | ||||
MSCI® EAFE® Index | 18.24 | 8.16 | 4.28 |
Country Diversification | |||
% of Total Investments as of 12/31/23 | |||
Japan | 18.0 | ||
Germany | 12.8 | ||
Sweden | 9.7 | ||
France | 9.4 | ||
Britain | 8.5 | ||
Canada | 7.3 | ||
Switzerland | 7.3 | ||
Singapore | 3.5 | ||
Spain | 2.9 | ||
Australia | 2.6 | ||
Denmark | 2.3 | ||
Hong Kong | 2.2 | ||
United States of America | 1.9 | ||
China | 1.8 | ||
Netherlands | 1.7 | ||
Republic of South Korea | 1.6 | ||
Taiwan | 1.3 | ||
India | 1.1 | ||
Russia | 0.0 | ||
Indonesia | 0.4 | ||
Short-term and other assets | 3.7 | ||
Total | 100.0% |
Top 10 Equity Holdings | |||
% of Total Investments as of 12/31/23 | |||
Chugai Pharmaceutical Co., Ltd. | 4.4 | ||
Infineon Technologies AG | 4.2 | ||
DBS Group Holdings Ltd. | 3.5 | ||
Manulife Financial Corp. | 3.4 | ||
Allianz SE REG | 3.4 | ||
Shell PLC | 3.3 | ||
L’Oréal SA | 3.2 | ||
Sony Group Corp. | 3.0 | ||
Banco Bilboa Vizcaya Argentaria SA | 2.9 | ||
Schneider Electric SE | 2.8 | ||
Total | 34.1% |
Investment Adviser: Homestead Advisers | |
Mark Iong, CFA Equity Portfolio Manager BS, Operations Research and Information Engineering, Cornell | |
Jim Polk, CFA Head of Equity Investments BA, English, Colby College; MBA, The Olin Graduate School of Business at Babson College |
Average Annual Total Returns (periods ended 12/31/23) | |||||||
1 YR % | 5 YR % | 10 YR % | |||||
Small-Company Stock Fund | 17.09 | 11.86 | 5.83 | ||||
Russell 2000 Index | 16.93 | 9.97 | 7.16 |
Sector Diversification | |||
% of Total Investments as of 12/31/23 | |||
Industrials | 25.6 | ||
Information technology | 15.7 | ||
Financials | 15.4 | ||
Health care | 13.6 | ||
Consumer discretionary | 11.3 | ||
Energy | 7.5 | ||
Materials | 6.4 | ||
Real estate | 3.3 | ||
Short-term and other assets | 1.2 | ||
Total | 100.0% |
Top 10 Equity Holdings | |||
% of Total Investments as of 12/31/23 | |||
Federal Signal Corp. | 3.7 | ||
Atkore Inc. | 3.6 | ||
Summit Materials, Inc. | 3.5 | ||
Comfort Systems USA, Inc. | 3.5 | ||
Applied Industrial Technologies, Inc. | 3.4 | ||
Altair Engineering Inc. | 3.2 | ||
Integer Holdings Corp. | 3.1 | ||
Medpace Holdings, Inc. | 3.0 | ||
MDC Holdings, Inc. | 3.0 | ||
Descartes Systems Group Inc. (The) | 3.0 | ||
Total | 33.0% |
Daily Income Fund | Beginning Account Value July 1, 2023 | Ending Account Value December 31, 2023 | Expenses Paid During the Perioda | Annualized Expense Ratio for the Period Ended December 31, 2023 |
Actual Return | $1,000.00 | $1,024.30 | $2.93 | 0.57% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,022.10 | $2.93 | 0.57% |
Short-Term Government Securities Fundb | ||||
Actual Return | $1,000.00 | $1,035.00 | $3.85 | 0.75% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,021.22 | $3.82 | 0.75% |
Short-Term Bond Fund | ||||
Actual Return | $1,000.00 | $1,036.10 | $4.01 | 0.78% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,021.06 | $3.98 | 0.78% |
Intermediate Bond Fundb | ||||
Actual Return | $1,000.00 | $1,037.50 | $4.11 | 0.80% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,020.97 | $4.08 | 0.80% |
Rural America Growth & Income Fundb | ||||
Actual Return | $1,000.00 | $1,034.80 | $5.12 | 1.00% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,019.97 | $5.09 | 1.00% |
Stock Index Fundc | ||||
Actual Return | $1,000.00 | $1,082.10 | $2.20 | 0.42% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,022.88 | $2.14 | 0.42% |
Value Fund | ||||
Actual Return | $1,000.00 | $1,092.70 | $3.41 | 0.65% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,021.74 | $3.30 | 0.65% |
Growth Fund | ||||
Actual Return | $1,000.00 | $1,124.70 | $4.43 | 0.83% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,020.83 | $4.21 | 0.83% |
International Equity Fundb | ||||
Actual Return | $1,000.00 | $1,052.10 | $5.55 | 1.07% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,019.59 | $5.46 | 1.07% |
Small-Company Stock Fund | ||||
Actual Return | $1,000.00 | $1,077.80 | $5.68 | 1.09% |
Hypothetical Return (5% return before expenses) | $1,000.00 | $1,019.53 | $5.52 | 1.09% |
a. | The dollar amounts shown as “Expenses Paid During the Period” are equal to each Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the period 184, then divided by 365. |
b. | Reflects fee waiver and/or expense reimbursements in effect during the period. |
c. | The Stock Index Fund is a feeder fund that invests substantially all of its assets in a Master Portfolio. The example reflects the expenses of both the feeder fund and the Master Portfolio. |
Fund | Statement of Operations | Statement of change in net assets | Financial Highlights |
Daily Income Fund | For the year ended December 31, 2023 | For the years ended December 31, 2023 and 2022 | For the years ended December 31, 2023, 2022, 2021, 2020, and 2019 |
Short-Term Government Securities Fund | |||
Short-Term Bond Fund | |||
Stock Index Fund | |||
Value Fund | |||
Growth Fund | |||
International Equity Fund | |||
Small-Company Stock Fund | |||
Intermediate Bond Fund | For the year ended December 31, 2023 | For the years ended December 31, 2023 and 2022 | For the years ended December 31, 2023, 2022, 2021, and 2020, and the period May 1, 2019 (inception) to December 31, 2019 |
Rural America Growth & Income Fund | For the year ended December 31, 2023 | For the years ended December 31, 2023 and 2022 | For the years ended December 31, 2023, and 2022, and the period May 1, 2021 (inception) to December 31, 2021 |
U.S. Government & Agency Obligations | 80.5% of portfolio | ||||
Interest Rate / Yield | Maturity Date | Face Amount | Value | |
Federal Farm Credit Bank | 5.36%(a) | 01/04/24 | $500,000 | $500,000 |
Federal Farm Credit Bank | 5.38(a) | 01/10/24 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.37(a) | 01/25/24 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.37(a) | 02/05/24 | 1,000,000 | 1,000,000 |
Federal Farm Credit Bank | 5.38(a) | 02/20/24 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.38(a) | 03/15/24 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.38(a) | 03/18/24 | 1,500,000 | 1,500,000 |
Federal Farm Credit Bank | 5.37(a) | 04/25/24 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.38(a) | 05/24/24 | 1,000,000 | 1,000,000 |
Federal Farm Credit Bank | 5.37(a) | 06/11/24 | 4,000,000 | 4,000,000 |
Federal Farm Credit Bank | 5.43(a) | 08/08/24 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.40(a) | 08/27/24 | 2,000,000 | 2,000,000 |
Federal Farm Credit Bank | 5.41(a) | 11/22/24 | 4,000,000 | 4,000,000 |
Federal Farm Credit Bank | 5.41(a) | 12/18/24 | 1,000,000 | 1,000,000 |
Federal Farm Credit Bank | 5.42(a) | 12/30/24 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.42(a) | 03/07/25 | 2,000,000 | 2,000,000 |
Federal Farm Credit Bank | 5.46(a) | 05/28/25 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.45(a) | 05/30/25 | 1,000,000 | 1,000,000 |
Federal Farm Credit Bank | 5.47(a) | 08/13/25 | 750,000 | 750,000 |
Federal Farm Credit Bank | 5.47(a) | 08/22/25 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.49(a) | 11/28/25 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.49(a) | 12/01/25 | 500,000 | 500,000 |
Federal Farm Credit Bank | 5.49(a) | 12/15/25 | 1,000,000 | 1,000,000 |
Federal Home Loan Bank | 5.35(a) | 01/05/24 | 4,000,000 | 4,000,000 |
Federal Home Loan Bank | 5.01 | 01/12/24 | 500,000 | 499,268 |
Federal Home Loan Bank | 5.37(a) | 02/02/24 | 4,000,000 | 4,000,000 |
Federal Home Loan Bank | 5.02 | 02/09/24 | 3,000,000 | 2,984,465 |
Federal Home Loan Bank | 5.37(a) | 02/20/24 | 3,000,000 | 3,000,000 |
Federal Home Loan Bank | 5.41(a) | 06/17/24 | 500,000 | 500,000 |
Federal Home Loan Bank | 5.50 | 08/12/24 | 1,000,000 | 999,775 |
Federal Home Loan Bank | 5.59 | 09/27/24 | 250,000 | 250,000 |
Federal Home Loan Bank | 5.27 | 11/01/24 | 2,000,000 | 1,914,939 |
Federal Home Loan Bank | 5.46(a) | 01/03/25 | 1,300,000 | 1,299,980 |
Federal Home Loan Bank | 5.48(a) | 03/24/25 | 1,200,000 | 1,199,852 |
Federal Home Loan Bank | 5.47(a) | 07/24/25 | 1,000,000 | 1,000,000 |
Federal Home Loan Bank | 5.49(a) | 08/08/25 | 770,000 | 769,909 |
Federal Home Loan Bank | 5.47(a) | 08/22/25 | 500,000 | 500,000 |
Federal Home Loan Bank | 5.49(a) | 12/08/25 | 2,000,000 | 2,000,000 |
Federal Home Loan Bank | 5.49(a) | 12/11/25 | 750,000 | 750,000 |
U.S. Treasury Bill | 5.41 | 01/02/24 | 21,000,000 | 20,996,912 |
U.S. Treasury Bill | 5.40 | 01/09/24 | 20,000,000 | 19,976,509 |
U.S. Treasury Bill | 5.41 | 01/11/24 | 12,000,000 | 11,982,356 |
U.S. Treasury Bill | 5.40 | 01/16/24 | 14,000,000 | 13,969,172 |
U.S. Treasury Bill | 5.41 | 01/23/24 | 10,000,000 | 9,967,697 |
U.S. Treasury Bill | 5.48 | 01/30/24 | 12,500,000 | 12,447,819 |
U.S. Treasury Bill | 5.54 | 02/06/24 | 1,000,000 | 994,650 |
U.S. Treasury Bill | 5.48 | 02/20/24 | 9,000,000 | 8,933,535 |
U.S. Treasury Bill | 5.57 | 04/18/24 | 5,000,000 | 4,924,565 |
U.S. Treasury Bill | 5.46 | 05/23/24 | 500,000 | 489,613 |
U.S. Treasury Bill | 5.41 | 06/06/24 | 1,500,000 | 1,466,081 |
U.S. Treasury Bill | 5.21 | 06/13/24 | 500,000 | 488,771 |
U.S. Treasury Bill | 5.30 | 06/27/24 | 3,000,000 | 2,924,647 |
U.S. Treasury Bill | 5.40 | 07/11/24 | 500,000 | 486,362 |
U.S. Treasury Bill | 5.42 | 09/05/24 | 500,000 | 482,360 |
U.S. Treasury Bill | 5.27 | 10/31/24 | 500,000 | 478,882 |
U.S. Treasury Bill | 5.07 | 11/29/24 | 2,250,000 | 2,150,078 |
U.S. Treasury Bill | 4.84 | 12/26/24 | 3,000,000 | 2,862,150 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
U.S. Government & Agency Obligations | 80.5% of portfolio (Continued) | ||||
Interest Rate / Yield | Maturity Date | Face Amount | Value | |
U.S. Treasury Note | 0.88% | 01/31/24 | $1,000,000 | $996,911 |
U.S. Treasury Note | 0.38 | 08/15/24 | 1,200,000 | 1,163,405 |
U.S. Treasury Note | 1.50 | 10/31/24 | 3,500,000 | 3,401,644 |
U.S. Treasury Note | 5.45(a) | 10/31/24 | 1,500,000 | 1,498,862 |
U.S. Treasury Note | 0.75 | 11/15/24 | 1,500,000 | 1,445,016 |
U.S. Treasury Note | 2.25 | 11/15/24 | 2,000,000 | 1,951,456 |
U.S. Treasury Note | 5.51(a) | 01/31/25 | 3,000,000 | 2,998,656 |
U.S. Treasury Note | 5.47(a) | 04/30/25 | 2,000,000 | 1,999,642 |
U.S. Treasury Note | 5.48(a) | 10/31/25 | 1,500,000 | 1,500,000 |
Total U.S. Government & Agency Obligations | ||||
(Cost $183,895,939) | 183,895,939 | |||
Money Market Fund | 19.5% of portfolio | ||||
Shares | ||||
State Street Institutional U.S. Government Money Market Fund Premier Class | 5.32(b) | 44,620,991 | 44,620,991 | |
Total Money Market Fund | ||||
(Cost $44,620,991) | 44,620,991 | |||
Total Investments in Securities | ||||
(Cost $228,516,930) | 100.0% | $228,516,930 |
(a) | Variable coupon rate as of December 31, 2023. |
(b) | 7-day yield at December 31, 2023. |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
U.S. Government & Agency Obligations | 61.0% of portfolio | ||||
Interest Rate / Yield | Maturity Date | Face Amount | Value | |
Export-Import Bank of the U.S. | 1.90% | 07/12/24 | $239,372 | $237,082 |
Export-Import Bank of the U.S. | 1.73 | 09/18/24 | 586,442 | 576,787 |
Export-Import Bank of the U.S. | 1.58 | 11/16/24 | 47,946 | 47,061 |
Export-Import Bank of the U.S. | 2.54 | 07/13/25 | 82,946 | 81,193 |
Export-Import Bank of the U.S. | 2.63 | 04/29/26 | 104,166 | 100,703 |
Export-Import Bank of the U.S. | 2.33 | 01/14/27 | 146,249 | 138,522 |
Export-Import Bank of the U.S. | 2.37 | 03/19/27 | 400,174 | 384,696 |
Federal Farm Credit Banks Funding Corp. | 2.25 | 01/14/30 | 150,000 | 133,711 |
U.S. Department of Housing & Urban Development | 5.77 | 08/01/26 | 46,000 | 46,017 |
U.S. International Development Finance Corp. | 2.22(a) | 01/24/25 | 2,000,000 | 2,127,418 |
U.S. International Development Finance Corp. | 1.27(a) | 06/21/25 | 1,000,000 | 992,239 |
U.S. International Development Finance Corp. | 0.00(b) | 07/17/25 | 1,000,000 | 959,090 |
U.S. International Development Finance Corp. | 0.00(b) | 01/17/26 | 700,000 | 727,693 |
U.S. International Development Finance Corp. | 1.11 | 05/15/29 | 785,714 | 717,764 |
U.S. International Development Finance Corp. | 2.36 | 10/15/29 | 1,421,511 | 1,348,208 |
U.S. International Development Finance Corp. | 1.05 | 10/15/29 | 1,421,511 | 1,294,895 |
U.S. International Development Finance Corp. | 1.24 | 08/15/31 | 1,256,756 | 1,113,795 |
U.S. Treasury Note | 4.88 | 11/30/25 | 6,075,000 | 6,137,886 |
U.S. Treasury Note | 4.63 | 11/15/26 | 12,735,000 | 12,935,974 |
U.S. Treasury Note | 4.38 | 11/30/28 | 4,645,000 | 4,753,141 |
Total U.S. Government & Agency Obligations | ||||
(Cost $35,075,139) | 34,853,875 |
Mortgage-Backed Securities | 16.9% of portfolio | ||||
GNMA 21-8 | 1.00 | 01/20/50 | 487,354 | 381,404 |
GNMA 22-177 | 5.00 | 05/20/48 | 1,307,005 | 1,311,232 |
GNMA 23-128 | 5.75 | 08/20/47 | 595,748 | 601,212 |
GNMA 23-22EA | 5.00 | 09/20/49 | 927,453 | 928,256 |
GNMA 23-22EC | 5.00 | 01/20/51 | 701,439 | 703,330 |
GNMA 23-4 | 5.00 | 07/20/49 | 466,198 | 465,378 |
GNMA 23-59 | 5.00 | 11/20/41 | 564,965 | 564,077 |
GNMA 23-84KA | 5.50 | 06/20/42 | 331,253 | 333,167 |
GNMA 786428 | 4.00 | 06/20/52 | 1,012,237 | 952,692 |
GNMA 786576 | 4.50 | 09/20/52 | 193,579 | 186,333 |
GNMA CK0445 | 4.00 | 02/15/52 | 321,625 | 308,023 |
GNMA CV1215 | 7.00 | 07/20/53 | 333,505 | 342,629 |
GNMA CW8493 | 8.00 | 11/20/53 | 399,640 | 416,417 |
GNMA CW8495 | 7.50 | 11/20/53 | 499,597 | 515,165 |
GNMA II POOL 786948 | 7.00 | 09/20/53 | 499,175 | 513,318 |
GNMA MA8017 | 2.50 | 05/20/37 | 613,707 | 562,972 |
GNMA MA8880 | 6.00 | 05/20/53 | 97,579 | 99,242 |
GNMA MA8917 | 5.00 | 06/20/38 | 479,124 | 480,568 |
Total Mortgage-Backed Securities | ||||
(Cost $9,676,159) | 9,665,415 |
Corporate Bonds Guaranteed by Export-Import Bank of the United States | 15.9% of portfolio | ||||
Consumer Discretionary | 0.1% | ||||
Ethiopian Leasing (2012) LLC | 2.68 | 07/30/25 | 33,671 | 32,977 |
Total Consumer Discretionary | 32,977 | |||
Energy | 7.1% | ||||
Petroleos Mexicanos | 2.38 | 04/15/25 | 243,150 | 233,485 |
Petroleos Mexicanos | 2.46 | 12/15/25 | 347,000 | 334,961 |
Reliance Industries Ltd. | 2.06 | 01/15/26 | 1,352,000 | 1,291,380 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Corporate Bonds Guaranteed by Export-Import Bank of the United States | 15.9% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Energy | 7.1% (Continued) | ||||
Reliance Industries Ltd. | 1.87% | 01/15/26 | $1,742,105 | $1,680,743 |
Reliance Industries Ltd. | 2.44 | 01/15/26 | 547,368 | 532,455 |
Total Energy | 4,073,024 | |||
Financials | 8.7% | ||||
CES MU2 LLC | 1.99 | 05/13/27 | 1,164,303 | 1,110,164 |
Durrah MSN 35603 | 1.68 | 01/22/25 | 236,766 | 231,974 |
Export Lease Eleven Co. LLC | 5.93(c) | 07/30/25 | 33,338 | 33,419 |
HNA 2015 LLC | 2.29 | 06/30/27 | 171,178 | 163,499 |
HNA 2015 LLC | 2.37 | 09/18/27 | 102,726 | 98,088 |
KE Export Leasing 2013-A LLC | 5.89(c) | 02/25/25 | 780,493 | 781,709 |
Lulwa Ltd. | 1.89 | 02/15/25 | 472,798 | 462,722 |
Lulwa Ltd. | 1.83 | 03/26/25 | 149,315 | 145,612 |
MSN 41079 and 41084 Ltd. | 1.72 | 07/13/24 | 579,384 | 572,205 |
MSN 41079 and 41084 Ltd. | 1.63 | 12/14/24 | 180,730 | 176,930 |
Penta Aircraft Leasing 2013 LLC | 1.69 | 04/29/25 | 266,070 | 259,334 |
Rimon LLC | 2.45 | 11/01/25 | 90,000 | 87,628 |
Salmon River Export LLC | 2.19 | 09/15/26 | 440,621 | 422,902 |
Sandalwood 2013 LLC | 2.84 | 07/10/25 | 132,322 | 129,999 |
Sandalwood 2013 LLC | 2.82 | 02/12/26 | 192,123 | 187,118 |
Santa Rosa Leasing LLC | 1.69 | 08/15/24 | 26,628 | 26,340 |
Santa Rosa Leasing LLC | 1.47 | 11/03/24 | 90,900 | 89,273 |
Total Financials | 4,978,916 | |||
Total Corporate Bonds Guaranteed by Export-Import Bank of the United States | ||||
(Cost $9,400,580) | 9,084,917 | |||
Asset-Backed Securities | 3.1% of portfolio | ||||
Avant Loans Funding Trust 22-REV1 (d) | 6.54 | 09/15/31 | 150,000 | 149,786 |
First Investors Auto Owner Trust 21-2A (d) | 0.48 | 03/15/27 | 26,526 | 26,079 |
Frontier Issuer 23-1A (d) | 6.60 | 08/20/53 | 450,000 | 447,667 |
Gracie Point International Funding 23-2A (d) | 7.60(c) | 03/01/27 | 100,000 | 99,992 |
LAD Auto Receivables Trust 21-1 (d) | 1.30 | 08/17/26 | 37,977 | 37,514 |
LAD Auto Receivables Trust 23-2 (d) | 5.93 | 06/15/27 | 76,587 | 76,641 |
Oasis Securitisation 21-2A (d) | 2.14 | 10/15/33 | 39,207 | 38,857 |
Oasis Securitisation 22-2A (d) | 6.85 | 10/15/34 | 141,636 | 141,550 |
Oasis Securitisation 23-1A (d) | 7.00 | 02/15/35 | 152,747 | 152,587 |
Santander Drive Auto Receivables Trust 22-5 | 4.43 | 03/15/27 | 100,000 | 98,815 |
SBA Tower Trust (d) | 2.84 | 01/15/25 | 250,000 | 241,417 |
T-Mobile US Trust 22-1A (d) | 4.91 | 05/22/28 | 150,000 | 149,692 |
Westgate Resorts 22-1A (d) | 2.29 | 08/20/36 | 149,049 | 142,217 |
Total Asset-Backed Securities | ||||
(Cost $1,805,431) | 1,802,814 |
Corporate Bonds–Other | 2.6% of portfolio | ||||
Financials | 2.0% | ||||
Bank of America Corp. | 4.83(c) | 07/22/26 | 200,000 | 198,457 |
Blue Owl Capital Corp. III | 3.13 | 04/13/27 | 125,000 | 110,455 |
Blue Owl Credit Income Corp. | 3.13 | 09/23/26 | 250,000 | 228,307 |
J.P. Morgan Chase & Co. | 1.04(c) | 02/04/27 | 100,000 | 91,906 |
Metropolitan Life Global Funding I (d) | 5.00 | 01/06/26 | 150,000 | 150,500 |
Morgan Stanley | 5.88 | 10/30/26 | 250,000 | 257,056 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Corporate Bonds–Other | 2.6% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Financials | 2.0% (Continued) | ||||
PNC Financial Services Group Inc. (The) | 5.81%(c) | 06/12/26 | $100,000 | $100,600 |
Total Financials | 1,137,281 | |||
Information Technology | 0.3% | ||||
Amphenol Corp. | 4.75 | 03/30/26 | 200,000 | 200,268 |
Total Information Technology | 200,268 | |||
Utilities | 0.3% | ||||
Metropolitan Edison Co. (d) | 5.20 | 04/01/28 | 150,000 | 151,090 |
Total Utilities | 151,090 | |||
Total Corporate Bonds–Other | ||||
(Cost $1,523,177) | 1,488,639 | |||
Money Market Fund | 0.5% of portfolio | ||||
Shares | ||||
State Street Institutional U.S. Government Money Market Fund Premier Class | 5.32(e) | 276,092 | 276,092 | |
Total Money Market Fund | ||||
(Cost $276,092) | 276,092 | |||
Total Investments in Securities | ||||
(Cost $57,756,578) | 100.0% | $57,171,752 |
(a) | Interest is paid at maturity. |
(b) | Zero coupon rate, purchased at a discount. |
(c) | Variable coupon rate as of December 31, 2023. |
(d) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. The securities have been determined to be liquid under criteria established by the Fund's Board of Directors. The total of such securities at period-end amounts to $2,005,589 and represents 3.5% of total investments. |
(e) | 7-day yield at December 31, 2023. |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
U.S. Government & Agency Obligations | 38.9% of portfolio | ||||
Interest Rate / Yield | Maturity Date | Face Amount | Value | |
Federal Farm Credit Banks Funding Corp. | 2.25% | 01/14/30 | $1,423,000 | $1,268,475 |
U.S. International Development Finance Corp. | 0.67(a) | 04/23/29 | 1,230,000 | 1,189,922 |
U.S. International Development Finance Corp. | 2.36 | 10/15/29 | 600,588 | 569,618 |
U.S. International Development Finance Corp. | 1.05 | 10/15/29 | 863,568 | 786,649 |
U.S. Treasury Note | 4.88 | 11/30/25 | 56,480,000 | 57,064,656 |
U.S. Treasury Note | 4.63 | 09/15/26 | 524,000 | 531,307 |
U.S. Treasury Note | 4.63 | 11/15/26 | 81,566,000 | 82,853,213 |
U.S. Treasury Note | 4.38 | 11/30/28 | 28,103,000 | 28,757,273 |
Total U.S. Government & Agency Obligations | ||||
(Cost $171,562,077) | 173,021,113 |
Corporate Bonds–Other | 33.4% of portfolio | ||||
Communication Services | 1.2% | ||||
Comcast Corp. | 4.55 | 01/15/29 | 500,000 | 502,139 |
Meta Platforms Inc. | 4.60 | 05/15/28 | 2,180,000 | 2,211,798 |
Sprint Spectrum Co. LLC (b) | 4.74 | 03/20/25 | 625,000 | 619,584 |
T-Mobile USA Inc. | 4.80 | 07/15/28 | 910,000 | 917,613 |
Warnermedia Holdings Inc. | 3.76 | 03/15/27 | 1,355,000 | 1,298,335 |
Total Communication Services | 5,549,469 | |||
Consumer Discretionary | 2.3% | ||||
Daimler Trucks Financial N.A. LLC (b) | 5.20 | 01/17/25 | 500,000 | 499,685 |
Daimler Trucks Financial N.A. LLC (b) | 3.50 | 04/07/25 | 1,255,000 | 1,227,230 |
Daimler Trucks Financial N.A. LLC (b) | 5.15 | 01/16/26 | 1,000,000 | 1,002,740 |
Ford Motor Credit Co. LLC | 2.90 | 02/10/29 | 883,000 | 773,339 |
Hyundai Capital America (b) | 5.80 | 06/26/25 | 920,000 | 924,898 |
Hyundai Capital America (b) | 5.50 | 03/30/26 | 1,365,000 | 1,372,084 |
Hyundai Capital America (b) | 5.60 | 03/30/28 | 1,035,000 | 1,050,315 |
Marriott International Inc. | 4.90 | 04/15/29 | 500,000 | 503,249 |
US Airways 2012 2A PTT | 4.63 | 06/03/25 | 965,799 | 938,901 |
US Airways 2013 1A PTT | 3.95 | 11/15/25 | 2,275,149 | 2,173,646 |
Total Consumer Discretionary | 10,466,087 | |||
Consumer Staples | 2.2% | ||||
7-Eleven, Inc. (b) | 0.95 | 02/10/26 | 800,000 | 739,382 |
Altria Group Inc. | 6.20 | 11/01/28 | 1,395,000 | 1,463,007 |
Bimbo Bakeries USA Inc. (b) | 6.05 | 01/15/29 | 465,000 | 489,082 |
JBS USA Food Co. | 2.50 | 01/15/27 | 3,364,000 | 3,095,755 |
Kenvue Inc. | 5.05 | 03/22/28 | 465,000 | 476,368 |
Philip Morris International Inc. | 5.00 | 11/17/25 | 460,000 | 461,819 |
Philip Morris International Inc. | 4.88 | 02/13/26 | 1,150,000 | 1,154,021 |
Philip Morris International Inc. | 5.13 | 11/17/27 | 805,000 | 819,342 |
Philip Morris International Inc. | 4.88 | 02/15/28 | 1,060,000 | 1,071,325 |
Total Consumer Staples | 9,770,101 | |||
Energy | 2.8% | ||||
Cheniere Corpus Christi Holdings LLC | 5.13 | 06/30/27 | 2,000,000 | 2,009,711 |
Energy Transfer Operating LP | 2.90 | 05/15/25 | 2,900,000 | 2,809,944 |
Marathon Oil Corp. | 4.40 | 07/15/27 | 1,277,000 | 1,245,451 |
Phillips 66 Co. | 1.30 | 02/15/26 | 1,500,000 | 1,393,377 |
Phillips 66 Co. | 4.95 | 12/01/27 | 1,780,000 | 1,794,952 |
Targa Resources Corp. | 5.20 | 07/01/27 | 1,670,000 | 1,678,017 |
Williams Companies, Inc. (The) | 5.40 | 03/02/26 | 1,340,000 | 1,353,390 |
Total Energy | 12,284,842 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Corporate Bonds–Other | 33.4% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Financials | 16.4% | ||||
American Express Co. | 4.99%(c) | 05/01/26 | $870,000 | $867,451 |
Antares Holdings LP | 3.95 | 07/15/26 | 335,000 | 311,571 |
Antares Holdings LP | 2.75 | 01/15/27 | 1,000,000 | 885,910 |
Antares Holdings LP (b) | 7.95 | 08/11/28 | 925,000 | 956,916 |
Bank of America Corp. | 2.46(c) | 10/22/25 | 2,200,000 | 2,142,257 |
Bank of America Corp. | 2.02(c) | 02/13/26 | 2,100,000 | 2,017,924 |
Bank of America Corp. | 1.32(c) | 06/19/26 | 2,100,000 | 1,976,375 |
Bank of America Corp. | 4.83(c) | 07/22/26 | 2,770,000 | 2,748,628 |
Bank of America Corp. | 1.20(c) | 10/24/26 | 920,000 | 854,272 |
Bank of America Corp. | 4.95(c) | 07/22/28 | 1,955,000 | 1,954,735 |
Bank of America Corp. | 6.20(c) | 11/10/28 | 565,000 | 589,375 |
Blue Owl Capital Corp. III | 3.13 | 04/13/27 | 1,321,000 | 1,167,288 |
Blue Owl Credit Income Corp. | 3.13 | 09/23/26 | 3,290,000 | 3,004,520 |
Cantor Fitzgerald LP (b) | 7.20 | 12/12/28 | 710,000 | 727,763 |
Citigroup Inc. | 7.00 | 12/01/25 | 2,000,000 | 2,055,526 |
CNO Global Funding (b) | 1.65 | 01/06/25 | 1,125,000 | 1,074,797 |
F&G Global Funding (b) | 1.75 | 06/30/26 | 2,500,000 | 2,261,985 |
Fidus Investment Corp. | 3.50 | 11/15/26 | 943,000 | 852,780 |
Fifth Third Bancorp | 6.34(c) | 07/27/29 | 1,000,000 | 1,041,179 |
GA Global Funding Trust (b) | 0.80 | 09/13/24 | 920,000 | 884,072 |
GA Global Funding Trust (b) | 3.85 | 04/11/25 | 1,715,000 | 1,680,153 |
GA Global Funding Trust (b) | 2.25 | 01/06/27 | 2,370,000 | 2,151,332 |
General Motors Financial Co., Inc. | 5.40 | 04/06/26 | 465,000 | 467,948 |
Goldman Sachs Group, Inc. | 2.64(c) | 02/24/28 | 930,000 | 862,119 |
Goldman Sachs Group, Inc. | 3.62(c) | 03/15/28 | 572,000 | 548,625 |
J.P. Morgan Chase & Co. | 2.08(c) | 04/22/26 | 2,055,000 | 1,968,380 |
J.P. Morgan Chase & Co. | 4.08(c) | 04/26/26 | 700,000 | 688,611 |
J.P. Morgan Chase & Co. | 1.04(c) | 02/04/27 | 910,000 | 836,347 |
J.P. Morgan Chase & Co. | 4.85(c) | 07/25/28 | 890,000 | 890,258 |
J.P. Morgan Chase & Co. | 6.09(c) | 10/23/29 | 820,000 | 862,159 |
Keybank NA | 4.70 | 01/26/26 | 1,040,000 | 1,015,639 |
M&T Bank Corp. | 7.41(c) | 10/30/29 | 675,000 | 726,048 |
Manufacturers and Traders Trust Co. | 4.65 | 01/27/26 | 1,040,000 | 1,018,362 |
Metropolitan Life Global Funding I (b) | 5.00 | 01/06/26 | 1,245,000 | 1,249,149 |
Morgan Stanley | 2.19(c) | 04/28/26 | 425,000 | 408,278 |
Morgan Stanley | 4.68(c) | 07/17/26 | 1,190,000 | 1,178,579 |
Morgan Stanley | 3.13 | 07/27/26 | 925,000 | 885,736 |
Morgan Stanley | 5.88 | 10/30/26 | 1,085,000 | 1,115,625 |
Morgan Stanley | 1.51(c) | 07/20/27 | 865,000 | 790,096 |
Morgan Stanley | 5.45(c) | 07/20/29 | 1,390,000 | 1,416,343 |
Owl Rock Technology Finance Corp. | 2.50 | 01/15/27 | 1,415,000 | 1,235,073 |
Pacific Life Global Funding II (b) | 5.50 | 07/18/28 | 1,385,000 | 1,415,652 |
PNC Financial Services Group Inc. (The) | 5.58(c) | 06/12/29 | 465,000 | 474,919 |
Santander Holdings USA, Inc. | 2.49(c) | 01/06/28 | 1,000,000 | 915,478 |
Santander Holdings USA, Inc. | 6.50(c) | 03/09/29 | 460,000 | 475,214 |
SCE Recovery Funding LLC | 0.86 | 11/15/31 | 1,450,756 | 1,235,010 |
Security Benefit Global Funding (b) | 1.25 | 05/17/24 | 4,000,000 | 3,923,106 |
Truist Financial Corp. | 6.05(c) | 06/08/27 | 925,000 | 941,292 |
Volkswagen Group of America Finance LLC (b) | 1.25 | 11/24/25 | 3,025,000 | 2,808,703 |
Wells Fargo & Co. | 2.16(c) | 02/11/26 | 3,270,000 | 3,147,125 |
Wells Fargo & Co. | 3.91(c) | 04/25/26 | 1,900,000 | 1,862,297 |
Wells Fargo & Co. | 2.19(c) | 04/30/26 | 2,120,000 | 2,031,736 |
Wells Fargo & Co. | 3.53(c) | 03/24/28 | 915,000 | 872,927 |
Wells Fargo & Co. | 4.81(c) | 07/25/28 | 2,140,000 | 2,124,318 |
Wells Fargo & Co. | 6.30(c) | 10/23/29 | 465,000 | 490,074 |
Total Financials | 73,088,035 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Corporate Bonds–Other | 33.4% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Health Care | 1.0% | ||||
Baylor Scott & White Holdings | 0.83% | 11/15/25 | $1,000,000 | $919,698 |
GE HealthCare Technologies Inc. | 5.55 | 11/15/24 | 915,000 | 915,456 |
GE HealthCare Technologies Inc. | 5.65 | 11/15/27 | 975,000 | 1,009,173 |
Medtronic Global Holdings SCA | 4.25 | 03/30/28 | 925,000 | 920,967 |
Pfizer Investment Enterprises Pte Ltd. | 4.45 | 05/19/28 | 885,000 | 884,543 |
Total Health Care | 4,649,837 | |||
Industrials | 2.0% | ||||
American Airlines Group Inc. | 3.60 | 03/22/29 | 1,934,119 | 1,809,219 |
American Airlines Group Inc. | 3.95 | 01/11/32 | 910,000 | 807,689 |
BNSF Railway Co. (b) | 3.44 | 06/16/28 | 747,636 | 714,686 |
Boeing Co. (The) | 2.20 | 02/04/26 | 1,900,000 | 1,795,285 |
Delta Air Lines, Inc. (b) | 7.00 | 05/01/25 | 965,000 | 981,803 |
ERAC USA Finance LLC (b) | 4.60 | 05/01/28 | 925,000 | 919,232 |
John Deere Capital Corp. | 4.95 | 07/14/28 | 915,000 | 938,063 |
Regal Rexnord Corp. (b) | 6.05 | 02/15/26 | 370,000 | 374,090 |
Regal Rexnord Corp. (b) | 6.05 | 04/15/28 | 460,000 | 465,647 |
Total Industrials | 8,805,714 | |||
Information Technology | 0.4% | ||||
Amphenol Corp. | 4.75 | 03/30/26 | 935,000 | 936,251 |
Avnet Inc. | 6.25 | 03/15/28 | 610,000 | 631,843 |
Total Information Technology | 1,568,094 | |||
Materials | 1.2% | ||||
Celanese US Holdings LLC | 6.05 | 03/15/25 | 745,000 | 749,562 |
Celanese US Holdings LLC | 6.17 | 07/15/27 | 1,330,000 | 1,363,723 |
EIDP Inc. | 4.50 | 05/15/26 | 1,390,000 | 1,384,562 |
Sealed Air Corp. (b) | 1.57 | 10/15/26 | 2,200,000 | 1,980,943 |
Total Materials | 5,478,790 | |||
Real Estate | 0.5% | ||||
Extra Space Storage LP | 5.70 | 04/01/28 | 460,000 | 471,448 |
VICI Properties LP (b) | 3.50 | 02/15/25 | 1,600,000 | 1,559,088 |
Total Real Estate | 2,030,536 | |||
Utilities | 3.4% | ||||
Consolidated Edison Co. of New York, Inc. | 3.30 | 12/01/24 | 727,000 | 712,999 |
Entergy Louisiana, LLC | 3.78 | 04/01/25 | 1,445,000 | 1,418,920 |
Exelon Corp. | 5.15 | 03/15/28 | 830,000 | 843,642 |
Florida Power & Light Co. | 4.45 | 05/15/26 | 465,000 | 465,401 |
Florida Power & Light Co. | 5.05 | 04/01/28 | 625,000 | 638,847 |
Florida Power & Light Co. | 4.40 | 05/15/28 | 465,000 | 465,743 |
Metropolitan Edison Co. (b) | 4.00 | 04/15/25 | 4,250,000 | 4,147,310 |
Metropolitan Edison Co. (b) | 5.20 | 04/01/28 | 1,330,000 | 1,339,670 |
Pacific Gas and Electric Co. | 6.10 | 01/15/29 | 1,390,000 | 1,438,369 |
San Diego Gas & Electric Co. | 4.95 | 08/15/28 | 1,400,000 | 1,428,694 |
Southern California Edison Co. | 1.20 | 02/01/26 | 2,065,000 | 1,922,626 |
Southern California Edison Co. | 5.30 | 03/01/28 | 440,000 | 451,588 |
Total Utilities | 15,273,809 | |||
Total Corporate Bonds–Other | ||||
(Cost $152,655,678) | 148,965,314 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Asset-Backed Securities | 9.9% of portfolio | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
American Credit Acceptance Receivables Trust 23-4A (b) | 6.20% | 06/14/27 | $1,333,940 | $1,336,846 |
Avant Credit Card Master Trust 21-1A (b) | 1.37 | 04/15/27 | 2,500,000 | 2,399,549 |
Avant Loans Funding Trust 22-REV1 (b) | 6.54 | 09/15/31 | 3,300,000 | 3,295,295 |
CNH Equipment Trust 22-A | 2.39 | 08/15/25 | 80,353 | 80,122 |
Colony American Finance Ltd. 21-2 (b) | 1.41 | 07/15/54 | 721,281 | 643,700 |
CoreVest American Finance 20-4 (b) | 1.17 | 12/15/52 | 647,476 | 599,610 |
CoreVest American Finance 21-1 (b) | 1.57 | 04/15/53 | 980,253 | 896,197 |
CoreVest American Finance 21-3 (b) | 2.49 | 10/15/54 | 2,480,000 | 2,254,809 |
Credit Acceptance Auto Loan Trust 21-2A (b) | 0.96 | 02/15/30 | 212,746 | 211,764 |
Credito Real USA Auto Receivables Trust 21-1 (b) | 1.35 | 02/16/27 | 54,062 | 53,895 |
Entergy New Orleans Storm Recovery Fund 15-1 | 2.67 | 06/01/27 | 63,258 | 62,401 |
Exeter Automobile Receivables Trust 22-1A | 2.56 | 06/15/28 | 2,150,000 | 2,102,169 |
FIC Funding 21-1 (b) | 1.13 | 04/15/33 | 583,933 | 575,761 |
First Investors Auto Owner Trust 21-2A (b) | 0.48 | 03/15/27 | 324,947 | 319,466 |
Firstkey Homes Trust 22-SFR2 (b) | 4.25 | 07/17/39 | 969,517 | 930,459 |
Flagship Credit Auto Trust 21-3 (b) | 0.36 | 07/15/27 | 450,322 | 445,383 |
Frontier Issuer 23-1A (b) | 6.60 | 08/20/53 | 3,400,000 | 3,382,374 |
Frontier Issuer 23-1B (b) | 8.30 | 08/20/53 | 2,340,000 | 2,323,452 |
FRTKL 21-SFR1 (b) | 1.57 | 09/17/38 | 970,000 | 870,542 |
Gracie Point International Funding 23-2A (b) | 7.60(c) | 03/01/27 | 885,000 | 884,926 |
John Deere Owner Trust 23-A | 5.01 | 11/15/27 | 900,000 | 901,703 |
John Deere Owner Trust 23-B | 5.18 | 03/15/28 | 650,000 | 655,664 |
LAD Auto Receivables Trust 21-1 (b) | 1.30 | 08/17/26 | 230,391 | 227,584 |
LAD Auto Receivables Trust 23-2 (b) | 5.93 | 06/15/27 | 650,989 | 651,448 |
Longtrain Leasing III LLC 2015-1 (b) | 2.98 | 01/15/45 | 265,577 | 257,732 |
Marlette Funding Trust 22-2 (b) | 4.25 | 08/15/32 | 80,824 | 80,699 |
NP SPE II LLC 17-1 (b) | 3.37 | 10/21/47 | 232,629 | 221,373 |
Oasis Securitisation 21-2A (b) | 2.14 | 10/15/33 | 331,296 | 328,344 |
Oasis Securitisation 22-1A (b) | 4.75 | 05/15/34 | 203,973 | 203,326 |
Oasis Securitisation 22-2A (b) | 6.85 | 10/15/34 | 1,012,280 | 1,011,665 |
Oasis Securitisation 23-1A (b) | 7.00 | 02/15/35 | 1,057,010 | 1,055,906 |
Oportun Funding 21-A (b) | 1.21 | 03/08/28 | 545,268 | 520,384 |
Oportun Funding 21-B (b) | 1.47 | 05/08/31 | 2,225,000 | 2,078,367 |
Progress Residential Trust 21-SFR8 (b) | 1.51 | 10/17/38 | 1,312,100 | 1,177,070 |
Progress Residential Trust 22-SFR3 (b) | 3.20 | 04/17/39 | 914,793 | 854,768 |
Santander Drive Auto Receivables Trust 22-5 | 4.43 | 03/15/27 | 1,260,000 | 1,245,064 |
SBA Tower Trust (b) | 2.84 | 01/15/25 | 4,765,000 | 4,601,412 |
SBA Tower Trust (b) | 1.88 | 01/15/26 | 355,000 | 329,355 |
SBA Tower Trust (b) | 6.60 | 01/15/28 | 775,000 | 796,523 |
SVC ABS LLC 23-1A (b) | 5.15 | 02/20/53 | 458,083 | 440,803 |
T-Mobile US Trust 22-1A (b) | 4.91 | 05/22/28 | 1,780,000 | 1,776,342 |
Upstart Securitization Trust 21-4 (b) | 0.84 | 09/20/31 | 32,515 | 32,410 |
Westgate Resorts 20-1A (b) | 3.96 | 03/20/34 | 229,605 | 226,807 |
Westgate Resorts 22-1A (b) | 2.29 | 08/20/36 | 695,562 | 663,678 |
Total Asset-Backed Securities | ||||
(Cost $44,961,641) | 44,007,147 |
Yankee Bonds | 7.8% of portfolio | ||||
AerCap Holdings NV | 6.10 | 01/15/27 | 500,000 | 510,668 |
Avolon Holdings Funding Ltd. (b) | 5.50 | 01/15/26 | 1,225,000 | 1,217,075 |
Avolon Holdings Funding Ltd. (b) | 2.75 | 02/21/28 | 607,000 | 539,222 |
Banco Santander SA | 6.53(c) | 11/07/27 | 400,000 | 413,615 |
Banco Santander SA | 5.59 | 08/08/28 | 1,400,000 | 1,427,480 |
Barclays PLC | 7.33(c) | 11/02/26 | 1,410,000 | 1,456,414 |
Barclays PLC | 5.83(c) | 05/09/27 | 855,000 | 862,646 |
BHP Billiton Finance (USA) Ltd. | 4.88 | 02/27/26 | 2,010,000 | 2,019,914 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Yankee Bonds | 7.8% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
BNP Paribas (b) | 1.32%(c) | 01/13/27 | $700,000 | $645,483 |
BPCE SA (b) | 5.98(c) | 01/18/27 | 610,000 | 614,783 |
Delta and SkyMiles IP Ltd. (b) | 4.50 | 10/20/25 | 519,999 | 512,098 |
Delta and SkyMiles IP Ltd. (b) | 4.75 | 10/20/28 | 2,000,000 | 1,966,977 |
Deutsche Bank AG | 1.69 | 03/19/26 | 295,000 | 274,145 |
Electricite de France SA (b) | 5.70 | 05/23/28 | 500,000 | 517,323 |
Korea National Oil Corp. (b) | 4.75 | 04/03/26 | 500,000 | 497,102 |
Lloyds Banking Group PLC | 4.72(c) | 08/11/26 | 750,000 | 740,034 |
Macquarie Group Ltd. (b) | 1.34(c) | 01/12/27 | 2,500,000 | 2,296,842 |
Mitsubishi UFJ Financial Group Inc. | 3.85 | 03/01/26 | 1,400,000 | 1,366,853 |
Mizuho Financial Group Inc. (b) | 3.48 | 04/12/26 | 750,000 | 724,842 |
Nationwide Building Society (b) | 2.97(c) | 02/16/28 | 1,500,000 | 1,394,944 |
Natwest Group PLC | 5.85(c) | 03/02/27 | 765,000 | 771,403 |
Nutrien Ltd. | 4.90 | 03/27/28 | 925,000 | 933,328 |
Santander UK Group Holdings PLC | 6.83(c) | 11/21/26 | 460,000 | 468,443 |
Santander UK Group Holdings PLC | 6.53(c) | 01/10/29 | 1,005,000 | 1,039,817 |
Saudi Arabian Oil Co. (b) | 1.63 | 11/24/25 | 500,000 | 470,017 |
Sumitomo Mitsui Financial Group Inc. | 5.46 | 01/13/26 | 1,810,000 | 1,827,738 |
Svenska Handelsbanken AB (b) | 5.25 | 06/15/26 | 460,000 | 463,693 |
TransCanada Pipelines Ltd. | 7.06 | 10/14/25 | 6,043,000 | 6,214,059 |
Triton Container International Ltd. (b) | 1.15 | 06/07/24 | 720,000 | 702,527 |
Triton Container International Ltd. (b) | 2.05 | 04/15/26 | 1,390,000 | 1,271,203 |
Var Energi ASA (b) | 7.50 | 01/15/28 | 595,000 | 630,554 |
Total Yankee Bonds | ||||
(Cost $35,352,997) | 34,791,242 | |||
Mortgage-Backed Securities | 7.1% of portfolio | ||||
FHLMC 780754 | 6.09(c) | 08/01/33 | 495 | 496 |
FNMA 813842 | 6.95(c) | 01/01/35 | 1,623 | 1,647 |
GNMA 21-8 | 1.00 | 01/20/50 | 1,839,921 | 1,439,928 |
GNMA 22-177 | 5.00 | 05/20/48 | 5,391,634 | 5,409,072 |
GNMA 23-128 | 5.75 | 08/20/47 | 2,129,800 | 2,149,332 |
GNMA 23-22EA | 5.00 | 09/20/49 | 3,541,793 | 3,544,859 |
GNMA 23-22EC | 5.00 | 01/20/51 | 1,734,893 | 1,739,569 |
GNMA 23-4 | 5.00 | 07/20/49 | 853,143 | 851,642 |
GNMA 23-59 | 5.00 | 11/20/41 | 1,756,100 | 1,753,340 |
GNMA 23-84KA | 5.50 | 06/20/42 | 2,208,353 | 2,221,113 |
GNMA 786576 | 4.50 | 09/20/52 | 948,536 | 913,032 |
GNMA CK0445 | 4.00 | 02/15/52 | 2,255,394 | 2,160,008 |
GNMA CV1215 | 7.00 | 07/20/53 | 2,279,783 | 2,342,154 |
GNMA CW8493 | 8.00 | 11/20/53 | 994,104 | 1,035,838 |
GNMA CW8494 | 7.50 | 11/20/53 | 2,127,888 | 2,194,154 |
GNMA CW8495 | 7.50 | 11/20/53 | 1,189,042 | 1,226,093 |
GNMA MA8017 | 2.50 | 05/20/37 | 1,517,902 | 1,392,418 |
GNMA MA8917 | 5.00 | 06/20/38 | 1,071,029 | 1,074,256 |
Salomon Brothers Mortgage Securities 97-LB6 | 6.82 | 12/25/27 | 1 | 1 |
Total Mortgage-Backed Securities | ||||
(Cost $31,529,563) | 31,448,952 |
Corporate Bonds Guaranteed by Export-Import Bank of the United States | 1.1% of portfolio | ||||
Energy | 1.0% | ||||
Petroleos Mexicanos | 6.01(c) | 04/15/25 | 3,517,500 | 3,513,552 |
Petroleos Mexicanos | 2.46 | 12/15/25 | 87,800 | 84,754 |
Reliance Industries Ltd. | 1.87 | 01/15/26 | 792,368 | 764,459 |
Total Energy | 4,362,765 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Corporate Bonds Guaranteed by Export-Import Bank of the United States | 1.1% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Financials | 0.1% | ||||
MSN 41079 and 41084 Ltd. | 1.72% | 07/13/24 | $163,789 | $161,759 |
MSN 41079 and 41084 Ltd. | 1.63 | 12/14/24 | 238,835 | 233,812 |
Santa Rosa Leasing LLC | 1.69 | 08/15/24 | 101,302 | 100,206 |
Total Financials | 495,777 | |||
Total Corporate Bonds Guaranteed by Export-Import Bank of the United States | ||||
(Cost $4,901,522) | 4,858,542 | |||
Municipal Bonds | 0.6% of portfolio | ||||
Arizona | 0.4% | ||||
Glendale Arizona | 1.45 | 07/01/26 | 1,000,000 | 925,360 |
Glendale Arizona | 1.72 | 07/01/27 | 1,235,000 | 1,124,169 |
Total Arizona | 2,049,529 | |||
Texas | 0.2% | ||||
Grey Forest Texas Gas System Revenue | 1.05 | 02/01/25 | 800,000 | 764,616 |
Total Texas | 764,616 | |||
Total Municipal Bonds | ||||
(Cost $3,035,000) | 2,814,145 | |||
Money Market Fund | 1.2% of portfolio | ||||
Shares | ||||
State Street Institutional U.S. Government Money Market Fund Premier Class | 5.32(d) | 5,297,939 | 5,297,939 | |
Total Money Market Fund | ||||
(Cost $5,297,939) | 5,297,939 | |||
Total Investments in Securities | ||||
(Cost $449,296,417) | 100.0% | $445,204,394 |
(a) | Interest is paid at maturity. |
(b) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. The securities have been determined to be liquid under criteria established by the Fund's Board of Directors. The total of such securities at period-end amounts to $92,965,806 and represents 20.9% of total investments. |
(c) | Variable coupon rate as of December 31, 2023. |
(d) | 7-day yield at December 31, 2023. |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Mortgage-Backed Securities | 33.6% of portfolio | ||||
Interest Rate / Yield | Maturity Date | Face Amount | Value | |
Farm 2021-1 Mortgage Trust 21-1 (a) | 2.18%(b) | 01/25/51 | $217,123 | $178,598 |
FHLMC QA7479 | 3.00 | 03/01/50 | 198,597 | 177,863 |
FHLMC QE2363 | 3.50 | 05/01/52 | 1,299,410 | 1,191,379 |
FHLMC RA8249 | 5.50 | 11/01/52 | 708,712 | 713,141 |
FHLMC SD1188 | 3.50 | 06/01/52 | 683,265 | 626,881 |
FHLMC SD1495 | 5.00 | 08/01/52 | 868,744 | 869,222 |
FHLMC SD2605 | 5.50 | 04/01/53 | 486,520 | 488,943 |
FHLMC SD7555 | 3.00 | 08/01/52 | 847,850 | 760,655 |
FHLMC SD8068 | 3.00 | 06/01/50 | 194,834 | 174,369 |
FHLMC SD8193 | 2.00 | 02/01/52 | 5,966,824 | 4,876,540 |
FHLMC SD8237 | 4.00 | 08/01/52 | 1,306,230 | 1,235,505 |
FNMA BN7662 | 3.50 | 07/01/49 | 79,138 | 73,659 |
FNMA CA4016 | 3.00 | 08/01/49 | 463,147 | 415,206 |
FNMA FM1000 | 3.00 | 04/01/47 | 846,857 | 768,577 |
FNMA FM4231 | 2.50 | 09/01/50 | 223,207 | 191,455 |
FNMA MA3691 | 3.00 | 07/01/49 | 133,866 | 120,094 |
FNMA MA3834 | 3.00 | 11/01/49 | 278,842 | 249,806 |
FNMA MA3960 | 3.00 | 03/01/50 | 129,022 | 115,234 |
FNMA MA3992 | 3.50 | 04/01/50 | 128,837 | 119,429 |
FNMA MA4048 | 3.00 | 06/01/50 | 581,705 | 519,458 |
FNMA MA4124 | 2.50 | 09/01/35 | 1,055,345 | 978,128 |
FNMA MA4179 | 2.00 | 11/01/35 | 3,443,614 | 3,100,021 |
FNMA MA4254 | 1.50 | 02/01/51 | 2,561,876 | 2,002,826 |
FNMA MA4303 | 2.00 | 04/01/36 | 1,384,928 | 1,242,536 |
FNMA MA4418 | 2.00 | 09/01/36 | 2,319,038 | 2,091,280 |
FNMA MA4437 | 2.00 | 10/01/51 | 3,890,020 | 3,184,898 |
FNMA MA4579 | 3.00 | 04/01/52 | 691,910 | 611,923 |
Freddie Mac STACR 21-HQA3 (a) | 8.69(b) | 09/25/41 | 1,000,000 | 997,523 |
GNMA 21-8 | 1.00 | 01/20/50 | 472,325 | 369,643 |
GNMA 22-177 | 5.00 | 05/20/48 | 1,413,756 | 1,418,329 |
GNMA 23-128 | 5.75 | 08/20/47 | 580,854 | 586,181 |
GNMA 23-22EA | 5.00 | 09/20/49 | 1,001,345 | 1,002,211 |
GNMA 23-22EC | 5.00 | 01/20/51 | 481,655 | 482,953 |
GNMA 23-4 | 5.00 | 07/20/49 | 242,423 | 241,997 |
GNMA 23-59 | 5.00 | 11/20/41 | 484,928 | 484,166 |
GNMA 23-76 | 5.00 | 05/20/53 | 1,526,552 | 1,517,784 |
GNMA 23-84KA | 5.50 | 06/20/42 | 696,111 | 700,134 |
GNMA 786247 | 4.00 | 07/20/52 | 632,492 | 603,246 |
GNMA 786428 | 4.00 | 06/20/52 | 1,046,139 | 984,600 |
GNMA 786576 | 4.50 | 09/20/52 | 261,331 | 251,550 |
GNMA CK0445 | 4.00 | 02/15/52 | 1,173,930 | 1,124,282 |
GNMA CV1215 | 7.00 | 07/20/53 | 706,832 | 726,170 |
GNMA CW8493 | 8.00 | 11/20/53 | 284,743 | 296,697 |
GNMA CW8495 | 7.50 | 11/20/53 | 319,742 | 329,706 |
GNMA MA8346 | 4.00 | 10/20/52 | 3,373,498 | 3,218,860 |
GNMA MA8880 | 6.00 | 05/20/53 | 590,355 | 600,413 |
Total Mortgage-Backed Securities | ||||
(Cost $44,593,409) | 43,014,071 |
Corporate Bonds–Other | 29.7% of portfolio | ||||
Communication Services | 1.3% | ||||
Comcast Corp. | 5.50 | 05/15/64 | 310,000 | 326,076 |
Meta Platforms, Inc. | 4.95 | 05/15/33 | 105,000 | 108,373 |
Sprint Spectrum Co. LLC (a) | 4.74 | 03/20/25 | 140,625 | 139,406 |
T-Mobile US, Inc. | 3.00 | 02/15/41 | 200,000 | 149,672 |
Warnermedia Holdings Inc. | 4.05 | 03/15/29 | 190,000 | 180,270 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Corporate Bonds–Other | 29.7% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Communication Services | 1.3% (Continued) | ||||
Warnermedia Holdings Inc. | 4.28% | 03/15/32 | $190,000 | $173,889 |
Warnermedia Holdings Inc. | 5.05 | 03/15/42 | 285,000 | 251,250 |
Warnermedia Holdings Inc. | 5.14 | 03/15/52 | 180,000 | 154,504 |
Warnermedia Holdings Inc. | 5.39 | 03/15/62 | 190,000 | 162,714 |
Total Communication Services | 1,646,154 | |||
Consumer Discretionary | 2.5% | ||||
Block Financial Corp. | 2.50 | 07/15/28 | 145,000 | 129,224 |
Daimler Trucks Financial N.A. LLC (a) | 3.50 | 04/07/25 | 340,000 | 332,477 |
Expedia Group, Inc. | 4.63 | 08/01/27 | 330,000 | 328,494 |
Ford Motor Credit Co. LLC | 2.90 | 02/10/29 | 225,000 | 197,057 |
General Motors Financial Co., Inc. | 4.35 | 01/17/27 | 150,000 | 146,994 |
Hyundai Capital America (a) | 5.50 | 03/30/26 | 380,000 | 381,972 |
Hyundai Capital America (a) | 5.65 | 06/26/26 | 290,000 | 291,924 |
Hyundai Capital America (a) | 5.60 | 03/30/28 | 290,000 | 294,291 |
Hyundai Capital America (a) | 5.80 | 04/01/30 | 490,000 | 504,795 |
Lowe`s Companies, Inc. | 5.85 | 04/01/63 | 205,000 | 214,697 |
Tractor Supply Co. | 1.75 | 11/01/30 | 100,000 | 81,898 |
US Airways 2013 1A PTT | 3.95 | 11/15/25 | 248,370 | 237,290 |
Total Consumer Discretionary | 3,141,113 | |||
Consumer Staples | 2.3% | ||||
7-Eleven Inc. (a) | 1.30 | 02/10/28 | 60,000 | 52,492 |
7-Eleven Inc. (a) | 1.80 | 02/10/31 | 60,000 | 48,764 |
7-Eleven Inc. (a) | 2.80 | 02/10/51 | 135,000 | 86,828 |
Campbell Soup Co. | 2.38 | 04/24/30 | 250,000 | 216,689 |
J.M Smucker Co. (The) | 6.50 | 11/15/53 | 375,000 | 432,465 |
JBS USA Food Co. | 3.00 | 02/02/29 | 335,000 | 294,664 |
JBS USA Food Co. | 4.38 | 02/02/52 | 530,000 | 394,555 |
Kellogg Co. | 5.25 | 03/01/33 | 215,000 | 220,425 |
Kenvue Inc. | 5.20 | 03/22/63 | 85,000 | 88,852 |
Philip Morris International Inc. | 4.88 | 02/15/28 | 230,000 | 232,457 |
Philip Morris International Inc. | 5.13 | 02/15/30 | 260,000 | 264,243 |
Philip Morris International Inc. | 5.75 | 11/17/32 | 310,000 | 325,333 |
Smithfield Foods, Inc. (a) | 2.63 | 09/13/31 | 340,000 | 262,972 |
Total Consumer Staples | 2,920,739 | |||
Energy | 2.8% | ||||
BP Capital Markets America Inc. | 2.77 | 11/10/50 | 210,000 | 140,449 |
Cheniere Corpus Christi Holdings LLC | 5.13 | 06/30/27 | 180,000 | 180,874 |
Cheniere Corpus Christi Holdings LLC | 3.70 | 11/15/29 | 39,000 | 36,834 |
Cheniere Corpus Christi Holdings LLC | 2.74 | 12/31/39 | 170,000 | 135,437 |
Cheniere Energy Partners LP (a) | 5.95 | 06/30/33 | 105,000 | 107,808 |
Energy Transfer Operating LP | 3.75 | 05/15/30 | 318,000 | 295,303 |
Energy Transfer Operating LP | 6.00 | 06/15/48 | 420,000 | 423,119 |
Entergy Arkansas, LLC | 5.15 | 01/15/33 | 205,000 | 208,985 |
Marathon Oil Corp. | 4.40 | 07/15/27 | 360,000 | 351,106 |
Midwest Connector Capital Co. LLC (a) | 4.63 | 04/01/29 | 205,000 | 197,364 |
MPLX LP | 1.75 | 03/01/26 | 80,000 | 74,835 |
MPLX LP | 2.65 | 08/15/30 | 245,000 | 211,416 |
National Oilwell Varco, Inc. | 3.60 | 12/01/29 | 112,000 | 103,547 |
Phillips 66 | 2.15 | 12/15/30 | 260,000 | 218,952 |
Phillips 66 | 5.30 | 06/30/33 | 300,000 | 307,908 |
Targa Resources Corp. | 5.20 | 07/01/27 | 260,000 | 261,248 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Corporate Bonds–Other | 29.7% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Energy | 2.8% (Continued) | ||||
Targa Resources Corp. | 6.50% | 02/15/53 | $305,000 | $329,609 |
Total Energy | 3,584,794 | |||
Financials | 11.6% | ||||
Ally Financial Inc. | 6.99(b) | 06/13/29 | 205,000 | 211,715 |
American Express Co. | 4.99(b) | 05/01/26 | 250,000 | 249,267 |
Antares Holdings LP | 3.95 | 07/15/26 | 375,000 | 348,774 |
Athene Global Funding (a) | 2.95 | 11/12/26 | 120,000 | 111,774 |
Athene Holding Ltd. | 3.95 | 05/25/51 | 300,000 | 225,203 |
Bank of America Corp. | 4.83(b) | 07/22/26 | 740,000 | 734,290 |
Bank of America Corp. | 1.20(b) | 10/24/26 | 200,000 | 185,711 |
Bank of America Corp. | 4.95(b) | 07/22/28 | 525,000 | 524,929 |
Bank of America Corp. | 6.20(b) | 11/10/28 | 150,000 | 156,471 |
Bank of America Corp. | 2.50(b) | 02/13/31 | 263,000 | 225,842 |
Bank of America Corp. | 5.02(b) | 07/22/33 | 445,000 | 440,208 |
Blue Owl Capital Corp. III | 3.13 | 04/13/27 | 396,000 | 349,921 |
Blue Owl Credit Income Corp. | 3.13 | 09/23/26 | 843,000 | 769,851 |
Cantor Fitzgerald LP (a) | 7.20 | 12/12/28 | 190,000 | 194,754 |
Citigroup Inc. | 2.57(b) | 06/03/31 | 870,000 | 743,169 |
Citigroup Inc. | 6.27(b) | 11/17/33 | 445,000 | 476,155 |
Fidus Investment Corp. | 3.50 | 11/15/26 | 166,000 | 150,118 |
GA Global Funding Trust (a) | 0.80 | 09/13/24 | 240,000 | 230,627 |
GA Global Funding Trust (a) | 3.85 | 04/11/25 | 460,000 | 450,653 |
Goldman Sachs Group, Inc. | 2.64(b) | 02/24/28 | 245,000 | 227,117 |
Goldman Sachs Group, Inc. | 3.62(b) | 03/15/28 | 153,000 | 146,748 |
Goldman Sachs Group, Inc. | 2.38(b) | 07/21/32 | 365,000 | 299,894 |
Goldman Sachs Group, Inc. | 2.91(b) | 07/21/42 | 230,000 | 167,779 |
Goldman Sachs Group, Inc. | 3.44(b) | 02/24/43 | 255,000 | 199,167 |
J.P. Morgan Chase & Co. | 2.08(b) | 04/22/26 | 340,000 | 325,669 |
J.P. Morgan Chase & Co. | 1.04(b) | 02/04/27 | 150,000 | 137,859 |
J.P. Morgan Chase & Co. | 6.07(b) | 10/22/27 | 125,000 | 128,589 |
J.P. Morgan Chase & Co. | 5.30(b) | 07/24/29 | 195,000 | 197,869 |
J.P. Morgan Chase & Co. | 4.91(b) | 07/25/33 | 185,000 | 182,915 |
Keybank NA | 4.70 | 01/26/26 | 300,000 | 292,973 |
M&T Bank Corp. | 7.41(b) | 10/30/29 | 175,000 | 188,235 |
Manufacturers and Traders Trust Co. | 4.65 | 01/27/26 | 300,000 | 293,758 |
Metropolitan Life Global Funding I (a) | 5.00 | 01/06/26 | 340,000 | 341,133 |
Metropolitan Life Global Funding I (a) | 5.15 | 03/28/33 | 180,000 | 183,125 |
Morgan Stanley | 5.88 | 10/30/26 | 275,000 | 282,762 |
Morgan Stanley | 1.51(b) | 07/20/27 | 200,000 | 182,681 |
Morgan Stanley | 5.16(b) | 04/20/29 | 320,000 | 321,829 |
Morgan Stanley | 1.79(b) | 02/13/32 | 510,000 | 407,247 |
Morgan Stanley | 4.89(b) | 07/20/33 | 170,000 | 165,762 |
Northern Trust Corp. | 6.13 | 11/02/32 | 265,000 | 284,566 |
Owl Rock Technology Finance Corp. | 3.75 | 06/17/26 | 150,000 | 137,147 |
Owl Rock Technology Finance Corp. | 2.50 | 01/15/27 | 366,000 | 319,461 |
Prudential Financial, Inc. | 5.70(b) | 09/15/48 | 75,000 | 72,001 |
Santander Holdings USA, Inc. | 2.49(b) | 01/06/28 | 298,000 | 272,812 |
Security Benefit Global Funding (a) | 1.25 | 05/17/24 | 300,000 | 294,233 |
Wells Fargo & Co. | 2.19(b) | 04/30/26 | 210,000 | 201,257 |
Wells Fargo & Co. | 3.53(b) | 03/24/28 | 240,000 | 228,964 |
Wells Fargo & Co. | 2.39(b) | 06/02/28 | 445,000 | 407,587 |
Wells Fargo & Co. | 5.57(b) | 07/25/29 | 375,000 | 382,901 |
Wells Fargo & Co. | 2.57(b) | 02/11/31 | 200,000 | 172,824 |
Wells Fargo & Co. | 6.49(b) | 10/23/34 | 220,000 | 239,335 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Corporate Bonds–Other | 29.7% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Financials | 11.6% (Continued) | ||||
Wells Fargo & Co. | 3.07%(b) | 04/30/41 | $440,000 | $332,885 |
Total Financials | 14,798,516 | |||
Health Care | 1.6% | ||||
Amgen Inc. | 5.75 | 03/02/63 | 215,000 | 225,566 |
Bristol-Myers Squibb Co. | 6.25 | 11/15/53 | 127,000 | 145,354 |
GE HealthCare Technologies Inc. | 5.60 | 11/15/25 | 225,000 | 226,995 |
GE HealthCare Technologies Inc. | 5.65 | 11/15/27 | 255,000 | 263,937 |
GE HealthCare Technologies Inc. | 5.91 | 11/22/32 | 270,000 | 288,002 |
HCA Inc. | 5.90 | 06/01/53 | 315,000 | 322,892 |
Pfizer Investment Enterprises Pte Ltd. | 4.65 | 05/19/30 | 195,000 | 196,373 |
Pfizer Investment Enterprises Pte Ltd. | 5.11 | 05/19/43 | 95,000 | 94,662 |
Pfizer Investment Enterprises Pte Ltd. | 5.30 | 05/19/53 | 255,000 | 260,325 |
Total Health Care | 2,024,106 | |||
Industrials | 1.5% | ||||
Ashtead Capital, Inc. (a) | 1.50 | 08/12/26 | 240,000 | 217,596 |
Ashtead Capital, Inc. (a) | 4.25 | 11/01/29 | 308,000 | 287,597 |
Ashtead Capital, Inc. (a) | 2.45 | 08/12/31 | 200,000 | 162,822 |
BNSF Railway Co. (a) | 3.44 | 06/16/28 | 340,144 | 325,153 |
Boeing Co. (The) | 2.20 | 02/04/26 | 350,000 | 330,711 |
Delta Air Lines, Inc. (a) | 7.00 | 05/01/25 | 250,000 | 254,353 |
Quanta Services, Inc. | 2.35 | 01/15/32 | 260,000 | 215,150 |
Triton International Ltd. | 3.25 | 03/15/32 | 175,000 | 140,102 |
Total Industrials | 1,933,484 | |||
Information Technology | 0.7% | ||||
Avnet Inc. | 6.25 | 03/15/28 | 170,000 | 176,087 |
Broadcom Cayman Finance Ltd. | 3.88 | 01/15/27 | 255,000 | 248,856 |
VMware, Inc. | 1.40 | 08/15/26 | 155,000 | 141,776 |
VMware, Inc. | 4.70 | 05/15/30 | 200,000 | 197,280 |
VMware, Inc. | 2.20 | 08/15/31 | 155,000 | 128,435 |
Total Information Technology | 892,434 | |||
Materials | 1.1% | ||||
Celanese US Holdings LLC | 6.05 | 03/15/25 | 140,000 | 140,857 |
Celanese US Holdings LLC | 6.17 | 07/15/27 | 360,000 | 369,128 |
Celanese US Holdings LLC | 6.33 | 07/15/29 | 260,000 | 272,551 |
Celanese US Holdings LLC | 6.38 | 07/15/32 | 175,000 | 184,990 |
Glencore Funding LLC (a) | 2.63 | 09/23/31 | 260,000 | 220,614 |
Glencore Funding LLC (a) | 3.38 | 09/23/51 | 170,000 | 119,727 |
Silgan Holdings Inc. (a) | 1.40 | 04/01/26 | 125,000 | 114,129 |
Total Materials | 1,421,996 | |||
Real Estate | 0.9% | ||||
American Tower Corp. | 5.50 | 03/15/28 | 205,000 | 209,530 |
Healthpeak OP, LLC | 5.25 | 12/15/32 | 125,000 | 126,361 |
Host Hotels & Resorts, LP | 4.50 | 02/01/26 | 150,000 | 147,140 |
Prologis, LP | 5.25 | 06/15/53 | 280,000 | 292,263 |
Realty Income Corp. | 4.85 | 03/15/30 | 200,000 | 200,878 |
VICI Properties LP | 4.75 | 02/15/28 | 180,000 | 176,213 |
Total Real Estate | 1,152,385 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Corporate Bonds–Other | 29.7% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Utilities | 3.4% | ||||
Ameren Illinois Co. | 5.90% | 12/01/52 | $175,000 | $195,829 |
American Electric Power Co., Inc. | 5.63 | 03/01/33 | 505,000 | 526,104 |
Entergy Louisiana, LLC | 3.78 | 04/01/25 | 325,000 | 319,134 |
Exelon Corp. | 5.15 | 03/15/28 | 235,000 | 238,862 |
Florida Power & Light Co. | 5.05 | 04/01/28 | 170,000 | 173,766 |
Indiana Michigan Power Co. | 5.63 | 04/01/53 | 215,000 | 225,551 |
Indianapolis Power & Light Co. (a) | 5.65 | 12/01/32 | 260,000 | 269,083 |
National Fuel Gas Co. | 5.50 | 01/15/26 | 80,000 | 80,087 |
Oklahoma Gas & Electric Co. | 5.60 | 04/01/53 | 107,000 | 112,353 |
Pacific Gas & Electric Co. | 3.00 | 06/15/28 | 225,000 | 205,055 |
Pacific Gas & Electric Co. | 4.55 | 07/01/30 | 130,000 | 123,809 |
Pacific Gas & Electric Co. | 4.25 | 03/15/46 | 770,000 | 591,790 |
Public Service Electric & Gas Co. | 4.65 | 03/15/33 | 105,000 | 105,011 |
Public Service Electric & Gas Co. | 5.13 | 03/15/53 | 300,000 | 312,410 |
SCE Recovery Funding LLC | 2.51 | 11/15/43 | 190,000 | 130,646 |
Southern California Edison Co. | 5.30 | 03/01/28 | 115,000 | 118,029 |
Southern California Edison Co. | 2.25 | 06/01/30 | 55,000 | 47,200 |
Southern California Edison Co. | 4.50 | 09/01/40 | 200,000 | 179,487 |
Southern California Edison Co. | 4.00 | 04/01/47 | 164,000 | 133,685 |
Southern California Edison Co. | 3.65 | 02/01/50 | 214,000 | 165,663 |
TerraForm Power Operating LLC (a) | 4.75 | 01/15/30 | 171,000 | 159,030 |
Total Utilities | 4,412,584 | |||
Total Corporate Bonds–Other | ||||
(Cost $40,235,556) | 37,928,305 | |||
U.S. Government & Agency Obligations | 17.2% of portfolio | ||||
Federal Farm Credit Bank | 0.52 | 10/21/25 | 300,000 | 279,333 |
Federal Farm Credit Bank | 1.33 | 07/01/30 | 605,000 | 502,017 |
U.S. International Development Finance Corp. | 1.05 | 10/15/29 | 106,613 | 97,117 |
U.S. Treasury Note | 4.88 | 11/30/25 | 2,625,000 | 2,652,173 |
U.S. Treasury Note | 4.63 | 11/15/26 | 800,000 | 812,625 |
U.S. Treasury Note | 4.38 | 11/30/28 | 1,439,000 | 1,472,502 |
U.S. Treasury Note | 4.38 | 11/30/30 | 2,450,000 | 2,519,289 |
U.S. Treasury Note | 4.50 | 11/15/33 | 1,022,000 | 1,072,940 |
U.S. Treasury Note | 2.38 | 02/15/42 | 4,918,000 | 3,773,413 |
U.S. Treasury Note | 3.25 | 05/15/42 | 510,000 | 447,445 |
U.S. Treasury Note | 3.38 | 08/15/42 | 4,374,000 | 3,900,207 |
U.S. Treasury Note | 4.75 | 11/15/43 | 1,245,000 | 1,335,457 |
U.S. Treasury Note | 4.13 | 08/15/53 | 3,080,000 | 3,113,206 |
Total U.S. Government & Agency Obligations | ||||
(Cost $22,505,885) | 21,977,724 |
Asset-Backed Securities | 8.3% of portfolio | ||||
Avant Credit Card Master Trust 21-1A (a) | 1.37 | 04/15/27 | 500,000 | 479,910 |
Avant Loans Funding Trust 21-REV1 (a) | 1.21 | 07/15/30 | 151,904 | 150,822 |
Avant Loans Funding Trust 22-REV1 (a) | 6.54 | 09/15/31 | 595,000 | 594,152 |
Colony American Finance Ltd. 21-2 (a) | 1.41 | 07/15/54 | 166,449 | 148,546 |
CoreVest American Finance 20-4 (a) | 1.17 | 12/15/52 | 105,567 | 97,762 |
CoreVest American Finance 21-1 (a) | 1.57 | 04/15/53 | 685,492 | 626,711 |
CoreVest American Finance 21-3 (a) | 2.49 | 10/15/54 | 660,000 | 600,070 |
Credit Acceptance Auto Loan Trust 21-2A (a) | 0.96 | 02/15/30 | 38,791 | 38,612 |
Credito Real USA Auto Receivables Trust 21-1 (a) | 1.35 | 02/16/27 | 21,843 | 21,776 |
FIC Funding 21-1 (a) | 1.13 | 04/15/33 | 32,061 | 31,612 |
First Investors Auto Owner Trust 21-2A (a) | 0.48 | 03/15/27 | 83,558 | 82,148 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Asset-Backed Securities | 8.3% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Firstkey Homes Trust 22-SFR2 (a) | 4.25% | 07/17/39 | $323,172 | $310,153 |
Flagship Credit Auto Trust 21-3 (a) | 0.36 | 07/15/27 | 53,410 | 52,825 |
Frontier Issuer 23-1A (a) | 6.60 | 08/20/53 | 1,000,000 | 994,816 |
Frontier Issuer 23-1B (a) | 8.30 | 08/20/53 | 675,000 | 670,226 |
FRTKL 21-SFR1 (a) | 1.57 | 09/17/38 | 250,000 | 224,367 |
Gracie Point International Funding 23-2A (a) | 7.60(b) | 03/01/27 | 225,000 | 224,981 |
John Deere Owner Trust 23-B | 5.18 | 03/15/28 | 185,000 | 186,612 |
LAD Auto Receivables Trust 21-1 (a) | 1.30 | 08/17/26 | 61,395 | 60,647 |
LAD Auto Receivables Trust 23-2 (a) | 5.93 | 06/15/27 | 179,979 | 180,106 |
Oasis Securitisation 21-2A (a) | 2.14 | 10/15/33 | 86,908 | 86,134 |
Oasis Securitisation 22-1A (a) | 4.75 | 05/15/34 | 58,278 | 58,093 |
Oasis Securitisation 22-2A (a) | 6.85 | 10/15/34 | 266,609 | 266,447 |
Oasis Securitisation 23-1A (a) | 7.00 | 02/15/35 | 296,329 | 296,020 |
Oportun Funding 21-A (a) | 1.21 | 03/08/28 | 152,879 | 145,902 |
Oportun Funding 21-B (a) | 1.47 | 05/08/31 | 1,000,000 | 934,098 |
PenFed Auto Receivable Owner 22-A (a) | 3.96 | 04/15/26 | 323,401 | 320,674 |
Progress Residential Trust 21-SFR8 (a) | 1.51 | 10/17/38 | 336,461 | 301,836 |
Progress Residential Trust 22-SFR3 (a) | 3.20 | 04/17/39 | 247,241 | 231,019 |
Progress Residential Trust 22-SFR3 (a) | 3.60 | 04/17/39 | 165,000 | 153,977 |
SBA Tower Trust (a) | 2.84 | 01/15/25 | 230,000 | 222,104 |
SBA Tower Trust (a) | 1.88 | 01/15/26 | 20,000 | 18,555 |
SBA Tower Trust (a) | 1.63 | 11/15/26 | 240,000 | 214,286 |
SBA Tower Trust (a) | 6.60 | 01/15/28 | 210,000 | 215,832 |
SBA Tower Trust (a) | 2.59 | 10/15/31 | 430,000 | 345,841 |
SBIC 2023-10B | 5.69 | 09/10/33 | 350,000 | 363,786 |
T-Mobile US Trust 22-1A (a) | 4.91 | 05/22/28 | 505,000 | 503,962 |
Upstart Securitization Trust 21-4 (a) | 0.84 | 09/20/31 | 8,418 | 8,391 |
Westgate Resorts 22-1A (a) | 2.29 | 08/20/36 | 198,732 | 189,622 |
Total Asset-Backed Securities | ||||
(Cost $11,026,394) | 10,653,433 |
Yankee Bonds | 5.9% of portfolio | ||||
AerCap Ireland Capital DAC | 3.88 | 01/23/28 | 250,000 | 238,246 |
Aptiv PLC | 3.10 | 12/01/51 | 280,000 | 182,445 |
Avolon Holdings Funding Ltd. (a) | 5.50 | 01/15/26 | 625,000 | 620,957 |
Avolon Holdings Funding Ltd. (a) | 2.75 | 02/21/28 | 130,000 | 115,484 |
Banco Santander SA | 6.53(b) | 11/07/27 | 200,000 | 206,808 |
Barclays PLC | 7.33(b) | 11/02/26 | 370,000 | 382,180 |
Barclays PLC | 5.83(b) | 05/09/27 | 240,000 | 242,146 |
BAT International Finance PLC | 5.93 | 02/02/29 | 450,000 | 467,557 |
BHP Billiton Finance (USA) Ltd. | 4.90 | 02/28/33 | 490,000 | 501,062 |
BP Capital Markets America Inc. | 4.81 | 02/13/33 | 110,000 | 110,904 |
BPCE SA (a) | 5.98(b) | 01/18/27 | 250,000 | 251,960 |
Cenovus Energy Inc. | 5.25 | 06/15/37 | 395,000 | 377,228 |
Delta and SkyMiles IP Ltd. (a) | 4.75 | 10/20/28 | 550,000 | 540,919 |
Deutsche Bank AG | 1.69 | 03/19/26 | 150,000 | 139,396 |
Enbridge Inc. | 5.70 | 03/08/33 | 320,000 | 332,607 |
Mitsubishi UFJ Financial Group Inc. | 3.74 | 03/07/29 | 300,000 | 287,010 |
Mizuho Financial Group Inc. | 4.25(b) | 09/11/29 | 200,000 | 193,094 |
Nissan Motor Co., Ltd. (a) | 2.45 | 09/15/28 | 435,000 | 372,518 |
Nissan Motor Co., Ltd. (a) | 4.81 | 09/17/30 | 200,000 | 186,981 |
OCI NV (a) | 6.70 | 03/16/33 | 310,000 | 316,579 |
Petronas Capital Ltd. (a) | 3.40 | 04/28/61 | 360,000 | 257,989 |
Santander UK Group Holdings PLC | 6.53(b) | 01/10/29 | 275,000 | 284,527 |
Sumitomo Mitsui Financial Group Inc. | 5.46 | 01/13/26 | 240,000 | 242,352 |
Sumitomo Mitsui Financial Group Inc. | 5.52 | 01/13/28 | 200,000 | 204,699 |
Svenska Handelsbanken AB (a) | 5.50 | 06/15/28 | 260,000 | 264,622 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Yankee Bonds | 5.9% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Var Energi ASA (a) | 7.50% | 01/15/28 | $200,000 | $211,951 |
Total Yankee Bonds | ||||
(Cost $7,751,530) | 7,532,221 | |||
Municipal Bonds | 1.8% of portfolio | ||||
Arizona | 0.2% | ||||
Pinal County Arizona Revenue Obligation | 1.05 | 08/01/24 | 120,000 | 117,187 |
Pinal County Arizona Revenue Obligation | 1.58 | 08/01/26 | 110,000 | 101,646 |
Yuma Arizona Pledged Revenue | 2.63 | 07/15/38 | 135,000 | 105,723 |
Total Arizona | 324,556 | |||
California | 1.4% | ||||
City of Chula Vista California Pension Obligation | 1.16 | 06/01/27 | 130,000 | 115,443 |
City of Chula Vista California Pension Obligation | 1.41 | 06/01/28 | 130,000 | 113,109 |
City of Chula Vista California Pension Obligation | 1.63 | 06/01/29 | 160,000 | 136,348 |
City of Chula Vista California Pension Obligation | 2.91 | 06/01/45 | 255,000 | 172,895 |
City of Los Angeles California Department of Airports | 1.25 | 05/15/28 | 200,000 | 173,705 |
City of Monterey Park California Pension Obligation | 1.89 | 06/01/30 | 1,000,000 | 845,245 |
Huntington Beach California Pension Obligation | 1.68 | 06/15/27 | 155,000 | 140,464 |
San Francisco California City & County Airports | 3.35 | 05/01/51 | 100,000 | 76,001 |
Total California | 1,773,210 | |||
Texas | 0.1% | ||||
North Texas Tollway Authority Revenue | 3.01 | 01/01/43 | 150,000 | 115,102 |
Total Texas | 115,102 | |||
West Virginia | 0.1% | ||||
West Virginia State University Revenues | 3.01 | 10/01/41 | 150,000 | 114,266 |
Total West Virginia | 114,266 | |||
Total Municipal Bonds | ||||
(Cost $2,795,000) | 2,327,134 | |||
Corporate Bond Guaranteed by Export-Import Bank of the United States | 0.1% of portfolio | ||||
Energy | 0.1% | ||||
Petroleos Mexicanos | 6.01(b) | 04/15/25 | 107,250 | 107,130 |
Total Energy | 107,130 | |||
Total Corporate Bond Guaranteed by Export-Import Bank of the United States | ||||
(Cost $107,215) | 107,130 | |||
Money Market Fund | 3.4% of portfolio | ||||
Shares | ||||
State Street Institutional U.S. Government Money Market Fund Premier Class | 5.32(c) | 4,341,712 | 4,341,712 | |
Total Money Market Fund | ||||
(Cost $4,341,712) | 4,341,712 | |||
Total Investments in Securities | ||||
(Cost $133,356,701) | 100.0% | $127,881,730 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
(a) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. The securities have been determined to be liquid under criteria established by the Fund's Board of Trustees. The total of such securities at period-end amounts to $21,056,612 and represents 16.5% of total investments. |
(b) | Variable coupon rate as of December 31, 2023. |
(c) | 7-day yield at December 31, 2023. |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Common Stocks | 57.2% of portfolio | ||||
Shares | Value | |||
Communication Services | 1.7% | ||||
Media | ||||
Cable One, Inc. | 42 | $23,377 | ||
Wireless Telecommunication Services | ||||
T-Mobile U.S., Inc. | 872 | 139,808 | ||
Total Communication Services | 163,185 | |||
Consumer Discretionary | 7.0% | ||||
Hotels, Restaurants & Leisure | ||||
Choice Hotels International, Inc. | 1,059 | 119,985 | ||
Leisure Products | ||||
Malibu Boats, Inc. Class A (a) | 1,079 | 59,151 | ||
Specialty Retail | ||||
ARKO Corp. | 4,866 | 40,145 | ||
Burlington Stores, Inc. (a) | 552 | 107,353 | ||
Lowe's Companies, Inc. | 317 | 70,548 | ||
Ollie's Bargain Outlet Holdings, Inc. (a) | 588 | 44,623 | ||
O'Reilly Automotive, Inc. (a) | 151 | 143,462 | ||
Tractor Supply Co. | 503 | 108,160 | ||
Total Consumer Discretionary | 693,427 | |||
Consumer Staples | 2.0% | ||||
Consumer Staples Distribution & Retail | ||||
Dollar General Corp. | 344 | 46,767 | ||
Food Products | ||||
Hershey Co. (The) | 785 | 146,355 | ||
Total Consumer Staples | 193,122 | |||
Energy | 3.3% | ||||
Oil, Gas & Consumable Fuels | ||||
Chevron Corp. | 705 | 105,158 | ||
ConocoPhillips | 981 | 113,865 | ||
Marathon Petroleum Corp. | 724 | 107,412 | ||
Total Energy | 326,435 | |||
Financials | 7.2% | ||||
Banks | ||||
FB Financial Corp. | 568 | 22,635 | ||
Glacier Bancorp, Inc. | 991 | 40,948 | ||
SouthState Corp. | 346 | 29,220 | ||
Truist Financial Corp. | 2,002 | 73,914 | ||
Capital Markets | ||||
CME Group, Inc. | 769 | 161,951 | ||
Intercontinental Exchange, Inc. | 948 | 121,752 | ||
Financial Services | ||||
Jack Henry & Associates, Inc. | 842 | 137,591 | ||
Insurance | ||||
Allstate Corp. | 180 | 25,196 | ||
American International Group, Inc. | 548 | 37,127 | ||
Chubb Ltd. | 266 | 60,116 | ||
Total Financials | 710,450 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Common Stocks | 57.2% of portfolio (Continued) | ||||
Shares | Value | |||
Health Care | 9.8% | ||||
Health Care Equipment & Supplies | ||||
Integer Holdings Corp. (a) | 1,400 | $138,712 | ||
Stryker Corp. | 624 | 186,863 | ||
Health Care Providers & Services | ||||
AMN Healthcare Services, Inc. (a) | 685 | 51,293 | ||
Cencora, Inc. | 275 | 56,479 | ||
Centene Corp. (a) | 1,489 | 110,499 | ||
Life Sciences Tools & Services | ||||
IQVIA Holdings Inc. (a) | 564 | 130,499 | ||
Mettler-Toledo International, Inc. (a) | 51 | 61,861 | ||
Pharmaceuticals | ||||
Zoetis Inc. | 1,176 | 232,107 | ||
Total Health Care | 968,313 | |||
Industrials | 9.6% | ||||
Commercial Services & Supplies | ||||
Casella Waste Systems, Inc. Class A (a) | 793 | 67,770 | ||
Ground Transportation | ||||
CSX Corp. | 3,403 | 117,982 | ||
J.B. Hunt Transport Services, Inc. | 344 | 68,710 | ||
Machinery | ||||
Cummins Inc. | 241 | 57,737 | ||
Deere & Co. | 522 | 208,732 | ||
Xylem, Inc. | 267 | 30,534 | ||
Software | ||||
Paycom Software, Inc. | 480 | 99,226 | ||
Trading Companies & Distributors | ||||
Applied Industrial Technologies, Inc. | 595 | 102,750 | ||
Fastenal Co. | 2,913 | 188,675 | ||
Total Industrials | 942,116 | |||
Information Technology | 8.6% | ||||
Electronic Equipment, Instruments & Components | ||||
Advanced Energy Industries, Inc. | 948 | 103,256 | ||
Corning Inc. | 3,070 | 93,482 | ||
Trimble Inc. (a) | 1,522 | 80,970 | ||
Semiconductors & Semiconductor Equipment | ||||
Diodes Inc. (a) | 1,204 | 96,946 | ||
Micron Technology, Inc. | 1,736 | 148,150 | ||
Software | ||||
ANSYS, Inc. (a) | 482 | 174,908 | ||
Tyler Technologies, Inc. (a) | 354 | 148,015 | ||
Total Information Technology | 845,727 | |||
Materials | 3.9% | ||||
Chemicals | ||||
Sherwin-Williams Co. (The) | 309 | 96,377 | ||
Construction Materials | ||||
Vulcan Materials Co. | 413 | 93,755 | ||
Containers & Packaging | ||||
Ball Corp. | 1,577 | 90,709 | ||
Metals & Mining | ||||
Freeport-McMoRan Inc. | 2,303 | 98,039 | ||
Total Materials | 378,880 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Common Stocks | 57.2% of portfolio (Continued) | ||||
Shares | Value | |||
Real Estate | 4.1% | ||||
Health Care REITs | ||||
Community Healthcare Trust Inc. | 798 | $21,259 | ||
Specialized REITs | ||||
American Tower Corp. | 802 | 173,136 | ||
Crown Castle Inc. | 1,302 | 149,977 | ||
Uniti Group Inc. | 9,981 | 57,690 | ||
Total Real Estate | 402,062 | |||
Total Common Stocks | ||||
(Cost $ 5,505,492) | 5,623,717 | |||
U.S. Government & Agency Obligations | 22.7% of portfolio | ||||
Interest Rate / Yield | Maturity Date | Face Amount | ||
Federal Farm Credit Bank | 0.52% | 10/21/25 | $200,000 | 186,222 |
Federal Farm Credit Bank | 3.32 | 02/25/26 | 200,000 | 196,102 |
Federal Farm Credit Bank | 1.20 | 04/28/27 | 195,000 | 176,065 |
Federal Farm Credit Bank | 3.38 | 09/15/27 | 65,000 | 63,432 |
Federal Farm Credit Bank | 3.88 | 08/15/28 | 265,000 | 263,265 |
Federal Farm Credit Bank | 3.43 | 12/06/28 | 62,000 | 60,336 |
Federal Farm Credit Bank | 4.00 | 09/27/29 | 200,000 | 199,378 |
Federal Farm Credit Bank | 4.09 | 05/03/32 | 324,000 | 312,653 |
Federal Farm Credit Bank | 3.50 | 09/01/32 | 50,000 | 47,113 |
Federal Farm Credit Bank | 2.50 | 04/14/36 | 70,000 | 54,786 |
Federal Farm Credit Banks Funding Corp. | 2.25 | 01/14/30 | 70,000 | 62,399 |
Federal Farm Credit Banks Funding Corp. | 6.69 | 10/18/38 | 30,000 | 30,349 |
Tennessee Valley Authority | 2.88 | 09/15/24 | 99,000 | 97,520 |
Tennessee Valley Authority | 0.75 | 05/15/25 | 128,000 | 121,407 |
Tennessee Valley Authority | 1.50 | 09/15/31 | 65,000 | 53,839 |
U.S. Treasury Note | 4.87 | 11/30/25 | 18,000 | 18,186 |
U.S. Treasury Note | 4.62 | 11/15/26 | 269,000 | 273,245 |
U.S. Treasury Note | 4.37 | 11/30/30 | 14,000 | 14,396 |
Total U.S. Government & Agency Obligations | ||||
(Cost $ 2,254,328) | 2,230,693 |
Corporate Bonds–Other | 9.8% of portfolio | ||||
Communication Services | 1.4% | ||||
DISH DBS Corp. (b) | 5.25 | 12/01/26 | 57,000 | 48,835 |
T-Mobile USA Inc. | 4.80 | 07/15/28 | 41,000 | 41,343 |
T-Mobile USA, Inc. | 3.75 | 04/15/27 | 44,000 | 42,677 |
Total Communication Services | 132,855 | |||
Consumer Discretionary | 1.1% | ||||
Choice Hotels International, Inc. | 3.70 | 01/15/31 | 25,000 | 21,551 |
Dollar General Corp. | 5.00 | 11/01/32 | 30,000 | 29,918 |
Kohl's Corp. | 4.25 | 07/17/25 | 22,000 | 21,470 |
Tractor Supply Co. | 1.75 | 11/01/30 | 44,000 | 36,035 |
Total Consumer Discretionary | 108,974 | |||
Consumer Staples | 0.4% | ||||
Bunge Limited Finance Corp. | 3.75 | 09/25/27 | 10,000 | 9,636 |
Bunge Limited Finance Corp. | 2.75 | 05/14/31 | 35,000 | 30,463 |
Total Consumer Staples | 40,099 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Corporate Bonds–Other | 9.8% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
Energy | 0.0% | ||||
Murphy Oil Corp. | 6.38% | 07/15/28 | $2,000 | $2,009 |
Total Energy | 2,009 | |||
Financials | 3.5% | ||||
American Tower Corp. | 3.95 | 03/15/29 | 60,000 | 57,251 |
Chubb INA Holdings Inc. | 3.15 | 03/15/25 | 36,000 | 35,204 |
Cincinnati Financial Corp. | 6.92 | 05/15/28 | 25,000 | 26,805 |
Globe Life Inc. | 4.55 | 09/15/28 | 33,000 | 32,724 |
Intercontinental Exchange, Inc. | 3.75 | 12/01/25 | 78,000 | 76,658 |
M&T Bank Corp. | 7.41 (c) | 10/30/29 | 35,000 | 37,647 |
Metlife, Inc. | 3.00 | 03/01/25 | 42,000 | 41,083 |
Truist Financial Corp. | 1.27 (c) | 03/02/27 | 45,000 | 41,195 |
Total Financials | 348,567 | |||
Health Care | 0.8% | ||||
Laboratory Corporation of America Holdings | 1.55 | 06/01/26 | 43,000 | 39,732 |
Zoetis Inc. | 5.40 | 11/14/25 | 40,000 | 40,326 |
Total Health Care | 80,058 | |||
Industrials | 0.5% | ||||
CNH Industrial Capital LLC | 1.45 | 07/15/26 | 17,000 | 15,592 |
J.B. Hunt Transport Services, Inc. | 3.87 | 03/01/26 | 23,000 | 22,539 |
John Deere Capital Corp. | 4.95 | 07/14/28 | 15,000 | 15,378 |
Total Industrials | 53,509 | |||
Information Technology | 0.3% | ||||
Micron Technology, Inc. | 4.66 | 02/15/30 | 26,000 | 25,376 |
Total Information Technology | 25,376 | |||
Materials | 0.8% | ||||
Mosaic Co. | 4.05 | 11/15/27 | 22,000 | 21,453 |
Steel Dynamics, Inc. | 2.40 | 06/15/25 | 27,000 | 25,874 |
Vulcan Materials Co. | 3.50 | 06/01/30 | 32,000 | 29,764 |
Total Materials | 77,091 | |||
Real Estate | 0.5% | ||||
American Tower Corp. | 5.50 | 03/15/28 | 30,000 | 30,663 |
Crown Castle International Corp. | 3.80 | 02/15/28 | 18,000 | 17,098 |
Total Real Estate | 47,761 | |||
Utilities | 0.5% | ||||
Black Hills Corp. | 2.50 | 06/15/30 | 60,000 | 50,421 |
Total Utilities | 50,421 | |||
Total Corporate Bonds–Other | ||||
(Cost $ 1,016,563) | 966,720 |
Asset-Backed Securities | 2.0% of portfolio | ||||
CNH Equipment Trust 22-A | 2.39 | 08/15/25 | 20,871 | 20,811 |
John Deere Owner Trust 23-A | 5.01 | 11/15/27 | 50,000 | 50,095 |
John Deere Owner Trust 23-B | 5.18 | 03/15/28 | 20,000 | 20,174 |
SBA Tower Trust (b) | 1.63 | 11/15/26 | 30,000 | 26,786 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Asset-Backed Securities | 2.0% of portfolio (Continued) | ||||
Interest Rate /Yield | Maturity Date | Face Amount | Value | |
SBA Tower Trust (b) | 2.59% | 10/15/31 | $52,000 | $41,823 |
SBA Tower Trust (b) | 2.84 | 01/15/25 | 35,000 | 33,798 |
Total Asset-Backed Securities | ||||
(Cost $ 208,130) | 193,487 | |||
Mortgage-Backed Securities | 1.8% of portfolio | ||||
Farm 2021-1 Mortgage Trust 21-1 (b) | 2.18(c) | 01/25/51 | 25,544 | 21,012 |
Freddie Mac Multiclass Certificates 21-P009 | 1.13 | 01/25/31 | 37,677 | 33,289 |
GNMA 786428 | 4.00 | 06/20/52 | 48,432 | 45,583 |
GNMA 786576 | 4.50 | 09/20/52 | 58,074 | 55,900 |
GNMA II POOL 785401 | 2.50 | 10/20/50 | 27,377 | 23,238 |
Total Mortgage-Backed Securities | ||||
(Cost $ 191,770) | 179,022 | |||
Municipal Bonds | 1.2% of portfolio | ||||
Kansas | 0.1% | ||||
City of Wichita, Kansas Water & Sewer Utility Revenue | 3.00 | 10/01/24 | 10,000 | 9,862 |
Montana | 0.1% | ||||
Yellowstone County School District No. 2 Billings | 2.22 | 06/15/32 | 15,000 | 12,435 |
Pennsylvania | 0.4% | ||||
Geisinger Health System Revenue | 2.25 | 04/01/27 | 20,000 | 18,598 |
New Castle Sanitation Authority | 1.16 | 06/01/25 | 25,000 | 23,703 |
Total Pennsylvania | 42,301 | |||
Texas | 0.3% | ||||
Grey Forest Texas Gas System Revenue | 1.05 | 02/01/25 | 30,000 | 28,673 |
Washington | 0.3% | ||||
Northwest Open Access Network Revenue | 1.69 | 12/01/27 | 30,000 | 26,375 |
Total Municipal Bonds | ||||
(Cost $ 131,069) | 119,646 | |||
Money Market Fund | 5.3% of portfolio | ||||
Shares | ||||
State Street Institutional U.S. Government Money Market Fund | 5.32%(d) | 526,096 | 526,096 | |
Total Money Market Fund | ||||
(Cost $ 526,096) | 526,096 | |||
Total Investments in Securities | ||||
(Cost $9,833,448) | 100.0% | $9,839,381 |
(a) | Non-income producing. |
(b) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. The securities have been determined to be liquid under criteria established by the Fund's Board of Directors. The total of such securities at period-end amounts to $172,254 and represents 1.8% of total investments. |
(c) | Variable coupon rate as of December 31, 2023. |
(d) | 7-day yield at December 31, 2023. |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Cost | Value | |
Investment | $28,317,751 | $224,179,784 |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Common Stocks | 98.9% of portfolio | ||
Shares | Value | |
Communication Services | 7.4% | ||
Entertainment | ||
Walt Disney Co. (The) | 144,900 | $13,083,021 |
Interactive Media & Services | ||
Alphabet, Inc., Class C (a) | 195,720 | 27,582,820 |
Meta Platforms, Inc., Class A (a) | 84,000 | 29,732,640 |
Total Communication Services | 70,398,481 | |
Consumer Discretionary | 7.5% | ||
Distributors | ||
LKQ Corp. | 109,600 | 5,237,784 |
Hotels, Restaurants & Leisure | ||
McDonald's Corp. | 57,097 | 16,929,832 |
Household Durables | ||
PulteGroup, Inc. | 50,200 | 5,181,644 |
Specialty Retail | ||
Home Depot, Inc. | 36,918 | 12,793,933 |
TJX Companies, Inc. (The) | 143,200 | 13,433,592 |
Ulta Beauty, Inc. (a) | 35,356 | 17,324,086 |
Total Consumer Discretionary | 70,900,871 | |
Consumer Staples | 0.9% | ||
Food Products | ||
Kraft Heinz Co. (The) | 227,700 | 8,420,346 |
Total Consumer Staples | 8,420,346 | |
Energy | 7.6% | ||
Oil, Gas & Consumable Fuels | ||
Chevron Corp. | 165,900 | 24,745,644 |
ConocoPhillips | 237,500 | 27,566,625 |
Hess Corp. | 139,800 | 20,153,568 |
Total Energy | 72,465,837 | |
Financials | 20.6% | ||
Banks | ||
Bank of America Corp. | 557,102 | 18,757,625 |
Citigroup, Inc. | 124,439 | 6,401,142 |
JPMorgan Chase & Co. | 229,791 | 39,087,449 |
Truist Financial Corp. | 318,400 | 11,755,328 |
Capital Markets | ||
Goldman Sachs Group, Inc. | 76,674 | 29,578,529 |
Financial Services | ||
Fiserv, Inc. (a) | 197,400 | 26,222,616 |
Visa Inc., Class A | 85,798 | 22,337,509 |
Insurance | ||
Allstate Corp. | 86,984 | 12,176,020 |
American International Group, Inc. | 160,794 | 10,893,794 |
Chubb Ltd. | 78,938 | 17,839,988 |
Total Financials | 195,050,000 | |
Health Care | 18.2% | ||
Biotechnology | ||
AbbVie Inc. | 180,763 | 28,012,842 |
Common Stocks | 98.9% of portfolio (Continued) | ||
Shares | Value | |
Health Care | 18.2% (Continued) | ||
Health Care Equipment & Supplies | ||
Abbott Laboratories | 265,156 | $29,185,720 |
Boston Scientific Corp. (a) | 432,396 | 24,996,813 |
Health Care Providers & Services | ||
Centene Corp. (a) | 328,597 | 24,385,183 |
Cigna Corp. | 64,814 | 19,408,552 |
Pharmaceuticals | ||
Bristol-Myers Squibb Co. | 248,501 | 12,750,586 |
Merck & Co., Inc. | 187,182 | 20,406,582 |
Pfizer, Inc. | 148,699 | 4,281,044 |
Royalty Pharma PLC, Class A | 345,684 | 9,710,264 |
Total Health Care | 173,137,586 | |
Industrials | 16.5% | ||
Aerospace & Defense | ||
Northrop Grumman Corp. | 47,031 | 22,017,092 |
Electrical Equipment | ||
Eaton Corp. PLC | 88,687 | 21,357,603 |
Ground Transportation | ||
CSX Corp. | 617,782 | 21,418,502 |
Industrial Conglomerates | ||
Honeywell International, Inc. | 165,173 | 34,638,430 |
Machinery | ||
Deere & Co. | 46,700 | 18,673,929 |
Parker-Hannifin Corp. | 83,422 | 38,432,516 |
Total Industrials | 156,538,072 | |
Information Technology | 8.3% | ||
Semiconductors & Semiconductor Equipment | ||
Lam Research Corp. | 28,300 | 22,166,258 |
NXP Semiconductors NV | 94,763 | 21,765,166 |
Software | ||
Microsoft Corp. | 70,914 | 26,666,500 |
Oracle Corp. | 73,400 | 7,738,562 |
Total Information Technology | 78,336,486 | |
Materials | 6.8% | ||
Chemicals | ||
Dow Inc. | 157,281 | 8,625,290 |
DuPont de Nemours, Inc. | 226,278 | 17,407,566 |
Containers & Packaging | ||
Avery Dennison Corp. | 117,587 | 23,771,388 |
Metals & Mining | ||
Freeport-McMoRan Inc. | 351,300 | 14,954,841 |
Total Materials | 64,759,085 | |
Real Estate | 5.1% | ||
Specialized REITs | ||
Crown Castle Inc. | 130,700 | 15,055,333 |
Digital Realty Trust, Inc. | 111,801 | 15,046,178 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Common Stocks | 98.9% of portfolio (Continued) | ||
Shares | Value | |
Real Estate | 5.1% (Continued) | ||
VICI Properties Inc. | 583,535 | $18,603,096 |
Total Real Estate | 48,704,607 | |
Total Common Stocks | ||
(Cost $529,203,947) | 938,711,371 | |
Money Market Fund | 1.1% of portfolio | ||
State Street Institutional U.S. Government Money Market Fund Premier Class, 5.32% (b) | 10,418,823 | 10,418,823 |
Total Money Market Fund | ||
(Cost $10,418,823) | 10,418,823 | |
Total Investments in Securities | ||
(Cost $539,622,770) | 100.0% | $949,130,194 |
(a) | Non-income producing. |
(b) | 7-day yield at December 31, 2023. |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Common Stocks | 99.1% of portfolio | ||
Shares | Value | |
Communication Services | 14.3% | ||
Entertainment | ||
Netflix, Inc. (a) | 7,936 | $3,863,880 |
Spotify Technology SA (a) | 12,029 | 2,260,369 |
Interactive Media & Services | ||
Alphabet, Inc., Class A (a) | 156,840 | 21,908,980 |
Meta Platforms, Inc., Class A (a) | 37,883 | 13,409,067 |
Snap Inc., Class A (a) | 83,023 | 1,405,579 |
Wireless Telecommunication Services | ||
T-Mobile U.S., Inc. | 17,980 | 2,882,733 |
Total Communication Services | 45,730,608 | |
Consumer Discretionary | 12.2% | ||
Automobiles | ||
Rivian Automotive, Inc. (a) | 61,653 | 1,446,379 |
Broadline Retail | ||
Amazon.com, Inc. (a) | 150,916 | 22,930,177 |
Coupang, Inc. (a) | 103,143 | 1,669,885 |
Hotels, Restaurants & Leisure | ||
Booking Holdings, Inc. (a) | 1,373 | 4,870,333 |
Chipotle Mexican Grill, Inc. (a) | 1,234 | 2,822,109 |
Leisure Products | ||
Peloton Interactive, Inc. (a) | 115,400 | 702,786 |
Specialty Retail | ||
Ross Stores, Inc. | 33,407 | 4,623,195 |
Total Consumer Discretionary | 39,064,864 | |
Consumer Staples | 1.6% | ||
Beverages | ||
Monster Beverage Corp. (a) | 55,611 | 3,203,750 |
Consumer Staples Distribution & Retail | ||
Dollar General Corp. | 13,099 | 1,780,809 |
Total Consumer Staples | 4,984,559 | |
Energy | 0.7% | ||
Energy Equipment & Services | ||
Schlumberger NV | 46,406 | 2,414,968 |
Total Energy | 2,414,968 | |
Financials | 10.8% | ||
Capital Markets | ||
Charles Schwab Corp. | 15,500 | 1,066,400 |
Tradeweb Markets Inc. | 19,180 | 1,743,079 |
Financial Services | ||
Affirm Holdings, Inc. (a) | 14,763 | 725,454 |
Fiserv, Inc. (a) | 70,817 | 9,407,330 |
Global Payments, Inc. | 30,213 | 3,837,051 |
Mastercard Inc., Class A | 22,925 | 9,777,742 |
Visa Inc., Class A | 30,867 | 8,036,223 |
Total Financials | 34,593,279 |
Common Stocks | 99.1% of portfolio (Continued) | ||
Shares | Value | |
Health Care | 16.0% | ||
Biotechnology | ||
Legend Biotech Corp. ADR (a) | 22,217 | $1,336,797 |
Vertex Pharmaceuticals, Inc. (a) | 3,482 | 1,416,791 |
Health Care Equipment & Supplies | ||
Becton, Dickinson & Co. | 14,414 | 3,514,566 |
Intuitive Surgical, Inc. (a) | 21,007 | 7,086,921 |
Penumbra, Inc. (a) | 4,288 | 1,078,603 |
Stryker Corp. | 21,593 | 6,466,240 |
Health Care Providers & Services | ||
Cigna Corp. | 28,293 | 8,472,339 |
Humana, Inc. | 4,177 | 1,912,272 |
UnitedHealth Group, Inc. | 23,880 | 12,572,104 |
Life Sciences Tools & Services | ||
Danaher Corp. | 4,009 | 927,442 |
Pharmaceuticals | ||
Eli Lilly & Co. | 11,290 | 6,581,167 |
Total Health Care | 51,365,242 | |
Industrials | 2.5% | ||
Aerospace & Defense | ||
Howmet Aerospace Inc. | 21,708 | 1,174,837 |
Machinery | ||
Ingersoll Rand Inc. | 55,929 | 4,325,549 |
Professional Services | ||
Paylocity Holding Corp. (a) | 14,802 | 2,440,109 |
Total Industrials | 7,940,495 | |
Information Technology | 41.0% | ||
Electronic Equipment, Instruments & Components | ||
Amphenol Corp., Class A | 53,239 | 5,277,582 |
IT Services | ||
MongoDB, Inc. (a) | 1,916 | 783,357 |
Semiconductors & Semiconductor Equipment | ||
Advanced Micro Devices, Inc. (a) | 16,504 | 2,432,855 |
ASML Holding NV ADR | 5,681 | 4,300,062 |
NVIDIA Corp. | 34,163 | 16,918,201 |
Software | ||
Adobe Inc. (a) | 7,152 | 4,266,883 |
Atlassian Corp., Class A (a) | 15,292 | 3,637,355 |
Aurora Innovation, Inc. (a) | 117,273 | 512,483 |
Cadence Design Systems, Inc. (a) | 10,367 | 2,823,660 |
Dynatrace, Inc. (a) | 46,207 | 2,527,061 |
Fair Isaac Corp. (a) | 2,070 | 2,409,501 |
Intuit, Inc. | 19,773 | 12,358,718 |
Microsoft Corp. | 112,140 | 42,169,126 |
salesforce.com, Inc. (a) | 10,117 | 2,662,187 |
ServiceNow, Inc. (a) | 7,797 | 5,508,502 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Common Stocks | 99.1% of portfolio (Continued) | ||
Shares | Value | |
Information Technology | 41.0% (Continued) | ||
Technology Hardware, Storage & Peripherals | ||
Apple, Inc. | 117,522 | $22,626,511 |
Total Information Technology | 131,214,044 | |
Total Common Stocks | ||
(Cost $174,185,533) | 317,308,059 | |
Money Market Fund | 0.9% of portfolio | ||
State Street Institutional U.S. Government Money Market Fund Premier Class, 5.32% (b) | 3,017,005 | 3,017,005 |
Total Money Market Fund | ||
(Cost $3,017,005) | 3,017,005 | |
Total Investments in Securities | ||
(Cost $177,202,538) | 100.0% | $320,325,064 |
(a) | Non-income producing. |
(b) | 7-day yield at December 31, 2023. |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Common Stocks | 96.3% of portfolio | ||
Shares | Value | |
Australia | 2.6% | ||
BHP Group Ltd. ADR | 33,062 | $2,258,465 |
Total Australia | 2,258,465 | |
Britain | 8.5% | ||
Haleon PLC | 569,627 | 2,332,207 |
Rio Tinto PLC | 29,166 | 2,169,398 |
Shell PLC | 86,483 | 2,830,941 |
Total Britain | 7,332,546 | |
Canada | 7.3% | ||
Alimentation Couche-Tard Inc. | 34,200 | 2,013,983 |
Canadian National Railway Co. | 11,023 | 1,384,820 |
Manulife Financial Corp. | 134,000 | 2,961,035 |
Total Canada | 6,359,838 | |
China | 1.8% | ||
Haier Smart Home Co., Ltd. | 193,748 | 547,267 |
LONGi Green Technology Co., Ltd. | 110,100 | 355,457 |
Zhejiang Sanhua Intelligent Controls Co., Ltd. | 158,000 | 654,887 |
Total China | 1,557,611 | |
Denmark | 2.3% | ||
Genmab A/S (a) | 3,982 | 1,269,672 |
Novozymes A/S, Class B | 13,534 | 744,010 |
Total Denmark | 2,013,682 | |
France | 9.4% | ||
Air Liquide SA | 7,247 | 1,410,958 |
Dassault Systèmes SE | 31,827 | 1,557,846 |
L’Oréal SA | 5,506 | 2,744,744 |
Schneider Electric SE | 12,069 | 2,429,564 |
Total France | 8,143,112 | |
Germany | 12.8% | ||
Allianz SE REG | 11,015 | 2,943,662 |
BioNTech SE ADR (a) | 13,860 | 1,462,784 |
Infineon Technologies AG | 86,731 | 3,622,113 |
SAP SE ADR | 12,133 | 1,875,641 |
Symrise AG | 10,837 | 1,190,938 |
Total Germany | 11,095,138 | |
Hong Kong | 2.2% | ||
AIA Group Ltd. | 223,400 | 1,944,223 |
Total Hong Kong | 1,944,223 | |
India | 1.1% | ||
HDFC Bank Ltd. ADR | 13,523 | 907,529 |
Total India | 907,529 |
Common Stocks | 96.3% of portfolio (Continued) | ||
Shares | Value | |
Indonesia | 0.4% | ||
PT Telkom Indonesia (Persero) Tbk. ADR | 12,791 | $329,496 |
Total Indonesia | 329,496 | |
Japan | 18.0% | ||
Chugai Pharmaceutical Co., Ltd. | 100,800 | 3,808,055 |
Daifuku Co., Ltd. | 50,900 | 1,026,346 |
Keyence Corp. | 2,900 | 1,274,133 |
Komatsu Ltd. | 59,700 | 1,553,593 |
Nitori Holdings Co., Ltd. | 1,800 | 241,698 |
Shimano, Inc. | 5,800 | 893,456 |
Shionogi & Co., Ltd. | 25,400 | 1,222,450 |
Shiseido Co., Ltd. | 24,100 | 726,431 |
Sony Group Corp. | 27,300 | 2,583,477 |
Sysmex Corp. | 14,200 | 789,385 |
Unicharm Corp. | 40,000 | 1,446,694 |
Total Japan | 15,565,718 | |
Netherlands | 1.7% | ||
Adyen NV (a) | 1,171 | 1,511,692 |
Total Netherlands | 1,511,692 | |
Republic of South Korea | 1.6% | ||
Samsung Electronics Co., Ltd. GDR | 909 | 1,358,419 |
Total Republic of South Korea | 1,358,419 | |
Russia | 0.0% | ||
LUKOIL PJSC (a) | 6,253 | 0 |
Total Russia | 0 | |
Singapore | 3.5% | ||
DBS Group Holdings Ltd. | 121,115 | 3,062,855 |
Total Singapore | 3,062,855 | |
Spain | 2.9% | ||
Banco Bilboa Vizcaya Argentaria SA | 276,791 | 2,522,745 |
Total Spain | 2,522,745 | |
Sweden | 9.7% | ||
Alfa Laval AB | 44,682 | 1,788,801 |
Assa Abloy AB | 43,680 | 1,258,821 |
Atlas Copco AB, Class A | 101,342 | 1,746,235 |
Epiroc AB, Class A | 66,799 | 1,344,589 |
Skandinaviska Enskilda Banken AB, Class A | 167,537 | 2,312,127 |
Total Sweden | 8,450,573 | |
Switzerland | 7.3% | ||
Alcon Inc. | 22,304 | 1,742,389 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Common Stocks | 96.3% of portfolio (Continued) | ||
Shares | Value | |
Switzerland | 7.3% (Continued) | ||
Nestlé SA ADR | 11,762 | $1,363,449 |
Roche Holding AG REG | 6,661 | 1,936,310 |
Sonova Holding AG REG | 3,800 | 1,242,781 |
Total Switzerland | 6,284,929 | |
Taiwan | 1.3% | ||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 10,894 | 1,132,976 |
Total Taiwan | 1,132,976 | |
United States of America | 1.9% | ||
Linde PLC | 4,087 | 1,678,572 |
Total United States of America | 1,678,572 | |
Total Common Stocks | ||
(Cost $63,614,833) | 83,510,119 |
Money Market Fund | 3.7% of portfolio | ||
Shares | Value | |
State Street Institutional U.S. Government Money Market Fund Premier Class, 5.32% (b) | 3,213,881 | $3,213,881 |
Total Money Market Fund | ||
(Cost $3,213,881) | 3,213,881 | |
Total Investments in Securities | ||
(Cost $66,828,714) | 100.0% | $86,724,000 |
(a) | Non-income producing. |
(b) | 7-day yield at December 31, 2023. |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Common Stocks | 98.8% of portfolio | ||
Shares | Value | |
Consumer Discretionary | 11.3% | ||
Hotels, Restaurants & Leisure | ||
Hilton Grand Vacations Inc. (a) | 110,400 | $4,435,872 |
Household Durables | ||
MDC Holdings, Inc. | 134,288 | 7,419,412 |
Leisure Products | ||
Malibu Boats, Inc., Class A (a) | 88,100 | 4,829,642 |
Topgolf Callaway Brands Corp. (a) | 187,951 | 2,695,217 |
YETI Holdings, Inc. (a) | 82,700 | 4,282,206 |
Specialty Retail | ||
ARKO Corp. | 526,600 | 4,344,450 |
Total Consumer Discretionary | 28,006,799 | |
Energy | 7.5% | ||
Oil, Gas & Consumable Fuels | ||
Matador Resources Co. | 59,300 | 3,371,798 |
Northern Oil and Gas, Inc. | 161,900 | 6,001,633 |
Permian Resources Corp. | 243,300 | 3,308,880 |
SM Energy Co. | 153,300 | 5,935,776 |
Total Energy | 18,618,087 | |
Financials | 15.4% | ||
Banks | ||
Atlantic Union Bankshares Corp. | 129,592 | 4,735,292 |
Cadence Bank | 136,750 | 4,046,432 |
FB Financial Corp. | 138,259 | 5,509,621 |
Glacier Bancorp, Inc. | 104,116 | 4,302,073 |
Live Oak Bancshares, Inc. | 123,000 | 5,596,500 |
Capital Markets | ||
Donnelley Financial Solutions, Inc. (a) | 45,700 | 2,850,309 |
Consumer Finance | ||
Encore Capital Group, Inc. (a) | 116,283 | 5,901,362 |
Insurance | ||
Kinsale Capital Group, Inc. | 15,826 | 5,300,286 |
Total Financials | 38,241,875 | |
Health Care | 13.6% | ||
Health Care Equipment & Supplies | ||
Enovis Corp. (a) | 56,976 | 3,191,795 |
Envista Holdings Corp. (a) | 186,100 | 4,477,566 |
Globus Medical, Inc. (a) | 66,225 | 3,529,130 |
Integer Holdings Corp. (a) | 76,970 | 7,626,188 |
iRhythm Technologies, Inc. (a) | 12,800 | 1,370,112 |
Lantheus Holdings, Inc. (a) | 31,600 | 1,959,200 |
STAAR Surgical Co. (a) | 35,236 | 1,099,716 |
Health Care Providers & Services | ||
AMN Healthcare Services, Inc. (a) | 39,087 | 2,926,835 |
Life Sciences Tools & Services | ||
Medpace Holdings, Inc. (a) | 24,650 | 7,555,964 |
Total Health Care | 33,736,506 |
Common Stocks | 98.8% of portfolio (Continued) | ||
Shares | Value | |
Industrials | 25.6% | ||
Aerospace & Defense | ||
Triumph Group, Inc. (a) | 407,930 | $6,763,479 |
Building Products | ||
Hayward Holdings, Inc. (a) | 386,000 | 5,249,600 |
Construction & Engineering | ||
Comfort Systems USA, Inc. | 41,988 | 8,635,672 |
Electrical Equipment | ||
Atkore Inc. (a) | 56,300 | 9,008,000 |
EnerSys | 23,335 | 2,355,902 |
Ground Transportation | ||
Werner Enterprises, Inc. | 85,933 | 3,640,981 |
Machinery | ||
ESAB Corp. | 57,176 | 4,952,585 |
Federal Signal Corp. | 118,894 | 9,123,926 |
John Bean Technologies Corp. | 26,300 | 2,615,535 |
Professional Services | ||
CACI International Inc., Class A (a) | 8,371 | 2,711,032 |
Trading Companies & Distributors | ||
Applied Industrial Technologies, Inc. | 48,326 | 8,345,417 |
Total Industrials | 63,402,129 | |
Information Technology | 15.7% | ||
Electronic Equipment, Instruments & Components | ||
Advanced Energy Industries, Inc. | 63,162 | 6,879,605 |
Plexus Corp. (a) | 35,600 | 3,849,428 |
Semiconductors & Semiconductor Equipment | ||
Diodes Inc. (a) | 67,486 | 5,433,973 |
Software | ||
Altair Engineering Inc., Class A (a) | 94,477 | 7,950,239 |
Descartes Systems Group Inc. (The) (a) | 86,570 | 7,277,074 |
Model N, Inc. (a) | 134,900 | 3,632,857 |
PowerSchool Holdings, Inc. (a) | 159,969 | 3,768,870 |
Total Information Technology | 38,792,046 | |
Materials | 6.4% | ||
Chemicals | ||
Avient Corp. | 170,627 | 7,092,965 |
Construction Materials | ||
Summit Materials, Inc., Class A (a) | 225,209 | 8,661,538 |
Total Materials | 15,754,503 | |
Real Estate | 3.3% | ||
Health Care REITs | ||
Community Healthcare Trust Inc. | 78,900 | 2,101,896 |
Office REITs | ||
Easterly Government Properties, Inc. | 229,311 | 3,081,940 |
The accompanying notes are an integral part of these financial statements. | Portfolio of Investments |
Common Stocks | 98.8% of portfolio (Continued) | ||
Shares | Value | |
Real Estate | 3.3% (Continued) | ||
Specialized REITs | ||
Uniti Group Inc. | 497,500 | $2,875,550 |
Total Real Estate | 8,059,386 | |
Total Common Stocks | ||
(Cost $181,340,541) | 244,611,331 | |
Money Market Fund | 1.2% of portfolio | ||
State Street Institutional U.S. Government Money Market Fund Premier Class, 5.32% (b) | 3,046,744 | 3,046,744 |
Total Money Market Fund | ||
(Cost $3,046,744) | 3,046,744 | |
Total Investments in Securities | ||
(Cost $184,387,285) | 100.0% | $247,658,075 |
(a) | Non-income producing. |
(b) | 7-day yield at December 31, 2023. |
Portfolio of Investments | The accompanying notes are an integral part of these financial statements. |
Assets | Daily Income Fund | Short-Term Government Securities Fund | Short-Term Bond Fund |
Investments in securities, at value (cost: $228,516,930, $57,756,578, $449,296,417, $133,356,701, $9,833,448, $28,317,751, $539,622,770, $177,202,538, $66,828,714 and $184,387,285, respectively) | $228,516,930 | $57,171,752 | $445,204,394 |
Investment securities sold receivable | — | — | — |
Dividends, interest, and tax reclaims receivable | 543,263 | 258,103 | 3,349,504 |
Capital shares sold receivable | 312,762 | 128,355 | 251,342 |
Prepaid expenses | 20,095 | 10,532 | 25,038 |
Due from Homestead Advisers | — | — | — |
Due from Custodian | 86,170 | 19,712 | 258,588 |
Total Assets | 229,479,220 | 57,588,454 | 449,088,866 |
Liabilities | |||
Investment securities purchased payable | 9,958,583 | — | — |
Accrued expenses payable | 93,271 | 56,020 | 195,141 |
Independent Director/Trustee's deferred compensation payable | 85,003 | 34,886 | 201,605 |
Capital shares redeemed payable | 708,994 | 14,612 | 866,887 |
Dividends payable | 3,724 | 1,489 | 37,222 |
Due to Homestead Advisers | 177,866 | 44,053 | 527,353 |
Due to custodian | — | — | — |
Total Liabilities | 11,027,441 | 151,060 | 1,828,208 |
Net Assets | $218,451,779 | $57,437,394 | $447,260,658 |
Net Assets Consist Of: | |||
Distributable earnings (losses) | (84,392) | (3,854,936) | (33,427,723) |
Paid-in-capital applicable to outstanding shares of 218,536,522, 11,561,548, 91,144,232, 27,967,144, 1,050,792, 6,487,529, 19,380,059, 21,364,964, 8,968,851 and 9,667,388, respectively | 218,536,171 | 61,292,330 | 480,688,381 |
Net Assets | $218,451,779 | $57,437,394 | $447,260,658 |
Net Asset Value Per Share | $1.00 | $4.97 | $4.91 |
Statements of Assets and Liabilities | The accompanying notes are an integral part of these financial statements. |
Intermediate Bond Fund | Rural America Growth & Income Fund | Stock Index Fund | Value Fund | Growth Fund | International Equity Fund | Small-Company Stock Fund |
$127,881,730 | $9,839,381 | $224,179,784(a) | $949,130,194 | $320,325,064 | $86,724,000 | $247,658,075 |
— | — | 1,362,331 | — | 59,158 | 66,738 | — |
969,612 | 38,377 | — | 988,214 | 52,834 | 385,974 | 247,553 |
227,960 | 14,483 | 39,714 | 94,128 | 52,861 | 15,702 | 23,232 |
9,315 | 5,619 | 18,262 | 34,712 | 21,242 | 14,482 | 30,757 |
— | 2,812 | — | — | — | — | — |
54,458 | — | — | 426,581 | 179,002 | 56,569 | 178,455 |
129,143,075 | 9,900,672 | 225,600,091 | 950,673,829 | 320,690,161 | 87,263,465 | 248,138,072 |
— | — | — | — | — | — | — |
118,113 | 47,394 | 54,921 | 300,349 | 111,936 | 73,458 | 133,973 |
9,230 | 201 | 48,604 | 338,497 | 54,590 | 58,478 | 198,769 |
82,356 | 5,014 | 1,402,045 | 369,380 | 142,315 | 106,276 | 419,034 |
— | — | 112 | — | — | — | — |
114,184 | — | 67,402 | 871,970 | 373,275 | 118,331 | 377,529 |
— | 3,709 | — | — | — | — | — |
323,883 | 56,318 | 1,573,084 | 1,880,196 | 682,116 | 356,543 | 1,129,305 |
$128,819,192 | $9,844,354 | $224,027,007 | $948,793,633 | $320,008,045 | $86,906,922 | $247,008,767 |
(20,447,281) | (231,587) | 194,008,904 | 422,738,777 | 145,380,081 | 20,375,870 | 64,777,399 |
149,266,473 | 10,075,941 | 30,018,103 | 526,054,856 | 174,627,964 | 66,531,052 | 182,231,368 |
$128,819,192 | $9,844,354 | $224,027,007 | $948,793,633 | $320,008,045 | $86,906,922 | $247,008,767 |
$4.61 | $9.37 | $34.53 | $48.96 | $14.98 | $9.69 | $25.55 |
(a) | Represents investment in the S&P 500 Index Master Portfolio managed by BlackRock Fund Advisors. |
The accompanying notes are an integral part of these financial statements. | Statements of Assets and Liabilities |
Investment Income | Daily Income Fund | Short-Term Government Securities Fund | Short-Term Bond Fund |
Interest | $10,589,948 | $2,004,220 | $18,559,859 |
Dividends | — | — | — |
Allocated from Master Portfolio | |||
Dividends | — | — | — |
Interest | — | — | — |
Total Investment Income | 10,589,948 | 2,004,220 | 18,559,859 |
Expenses | |||
Management fees | 836,592 | 276,641 | 2,816,631 |
Director, Trustee, and Board meeting expenses | 99,950 | 33,720 | 211,915 |
Shareholder servicing fees | 86,019 | 63,597 | 115,635 |
Custodian and accounting fees | 85,521 | 70,356 | 136,708 |
Legal and audit fees | 59,880 | 21,120 | 121,680 |
Registration fees | 27,222 | 24,833 | 27,308 |
Printing and regulatory filings | 12,640 | 7,592 | 20,074 |
Insurance | 11,773 | 4,116 | 26,034 |
Communication | 569 | 341 | 890 |
Sub-transfer agency fees | — | 474 | 39,261 |
Other expenses | 6,184 | 14,450 | 43,736 |
Administration fees | — | — | — |
Allocated from Master Portfolio | — | — | — |
Total Expenses | 1,226,350 | 517,240 | 3,559,872 |
Less fees waived and/or expenses reimbursed by Homestead Advisers | — | (55,941) | — |
Net Expenses | 1,226,350 | 461,299 | 3,559,872 |
Net Investment Income (Loss) | 9,363,598 | 1,542,921 | 14,999,987 |
Realized and Unrealized Gain (Loss) on Investments | |||
Net realized gain (loss) on investments | 25,041 | (1,775,629) | (8,004,165) |
Net change in unrealized apprecation (depreciation) | — | 2,978,670 | 16,931,812 |
Net Gain (Loss) On Investments | 25,041 | 1,203,041 | 8,927,647 |
Net Increase In Net Assets From Operations | $9,388,639 | $2,745,962 | $23,927,634 |
(a) | Includes foreign tax withholding expense of $16,983 in Stock Index, $54,308 in Value, $7,647 in Growth and $210,576 in International Equity Funds. |
(b) | Represents expenses allocated to the Fund by the S&P 500 Master Portfolio after expense reimbursements of $1,832. |
(c) | Represents realized and unrealized gains on investments allocated from the Master Portfolio. |
Statements of Operations | The accompanying notes are an integral part of these financial statements. |
Intermediate Bond Fund | Rural America Growth & Income Fund | Stock Index Fund | Value Fund | Growth Fund | International Equity Fund | Small-Company Stock Fund |
$5,220,041 | $129,352 | $— | $720,916 | $102,580 | $126,073 | $254,371 |
— | 79,531 | — | 18,722,487(a) | 1,452,093(a) | 1,997,472(a) | 2,619,863 |
— | — | 3,387,289(a) | — | — | — | — |
— | — | 33,627 | — | — | — | — |
5,220,041 | 208,883 | 3,420,916 | 19,443,403 | 1,554,673 | 2,123,545 | 2,874,234 |
774,478 | 55,386 | — | 4,337,769 | 1,804,237 | 641,951 | 2,001,745 |
67,782 | 4,687 | 87,743 | 428,930 | 127,704 | 44,269 | 106,626 |
54,844 | 43,162 | 113,712 | 255,445 | 144,337 | 110,687 | 162,743 |
112,657 | 57,067 | 56,304 | 177,023 | 90,428 | 99,703 | 78,058 |
40,243 | 6,158 | 53,765 | 250,307 | 78,613 | 27,651 | 67,787 |
35,176 | 24,943 | 24,657 | 33,758 | 26,849 | 24,853 | 22,967 |
6,100 | 3,074 | 18,679 | 48,826 | 24,891 | 16,966 | 30,680 |
8,092 | 451 | 10,192 | 54,224 | 13,874 | 5,200 | 13,255 |
263 | 135 | 834 | 2,115 | 1,100 | 769 | 1,294 |
6 | — | 7,904 | 159,809 | 18,054 | 3,020 | 81,636 |
42,911 | 1,420 | 5,417 | 27,802 | 7,810 | 2,544 | 6,889 |
— | — | 522,008 | — | — | — | — |
— | — | 20,257(b) | — | — | — | — |
1,142,552 | 196,483 | 921,472 | 5,776,008 | 2,337,897 | 977,613 | 2,573,680 |
(109,749) | (111,362) | — | — | — | (91,557) | — |
1,032,803 | 85,121 | 921,472 | 5,776,008 | 2,337,897 | 886,056 | 2,573,680 |
4,187,238 | 123,762 | 2,499,444 | 13,667,395 | (783,224) | 1,237,489 | 300,554 |
(2,720,517) | (108,027) | 912,857(c) | 58,744,792 | 12,893,471 | 3,478,561 | 9,554,165 |
6,252,736 | 573,899 | 44,074,512(c) | 38,827,904 | 95,677,279 | 7,640,203 | 28,002,458 |
3,532,219 | 465,872 | 44,987,369 | 97,572,696 | 108,570,750 | 11,118,764 | 37,556,623 |
$7,719,457 | $589,634 | $47,486,813 | $111,240,091 | $107,787,526 | $12,356,253 | $37,857,177 |
The accompanying notes are an integral part of these financial statements. | Statements of Operations |
Daily Income Fund | ||
Year Ended December 31, 2023 | Year Ended December 31, 2022 | |
Increase (Decrease) In Net Assets | ||
Operations | ||
Net investment income | $9,363,598 | $2,423,947 |
Net realized gain (loss) on investments | 25,041 | (33,501) |
Net change in unrealized appreciation (depreciation) | — | — |
Increase (decrease) in net assets from operations | 9,388,639 | 2,390,446 |
Distributions to Shareholders | ||
Distributions to shareholders | (9,394,022) | (2,393,963) |
Total Distributions to shareholders | (9,394,022) | (2,393,963) |
Capital Share Transactions | ||
Net capital share transactions | 13,896,810 | 24,974,628 |
Total increase (decrease) in net assets from capital transactions | 13,896,810 | 24,974,628 |
Total Increase (Decrease) In Net Assets | 13,891,427 | 24,971,111 |
Net Assets | ||
Beginning of year | $204,560,352 | $179,589,241 |
End of year | $218,451,779 | $204,560,352 |
Statements of Changes in Net Assets | The accompanying notes are an integral part of these financial statements. |
Short-Term Government Securities Fund | Short-Term Bond Fund | Intermediate Bond Fund | |||
Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 |
$1,542,921 | $839,648 | $14,999,987 | $8,468,065 | $4,187,238 | $2,636,226 |
(1,775,629) | (1,032,782) | (8,004,165) | (19,926,895) | (2,720,517) | (11,358,826) |
2,978,670 | (3,870,513) | 16,931,812 | (20,007,017) | 6,252,736 | (11,565,088) |
2,745,962 | (4,063,647) | 23,927,634 | (31,465,847) | 7,719,457 | (20,287,688) |
(1,549,864) | (842,483) | (15,029,963) | (8,609,201) | (4,248,715) | (2,782,153) |
(1,549,864) | (842,483) | (15,029,963) | (8,609,201) | (4,248,715) | (2,782,153) |
(11,429,455) | (4,935,132) | (42,445,620) | (44,422,657) | (5,409,476) | 2,491,679 |
(11,429,455) | (4,935,132) | (42,445,620) | (44,422,657) | (5,409,476) | 2,491,679 |
(10,233,357) | (9,841,262) | (33,547,949) | (84,497,705) | (1,938,734) | (20,578,162) |
$67,670,751 | $77,512,013 | $480,808,607 | $565,306,312 | $130,757,926 | $151,336,088 |
$57,437,394 | $67,670,751 | $447,260,658 | $480,808,607 | $128,819,192 | $130,757,926 |
The accompanying notes are an integral part of these financial statements. | Statements of Changes in Net Assets |
Rural America Growth & Income Fund | ||
Year Ended December 31, 2023 | Year Ended December 31, 2022 | |
Increase (Decrease) In Net Assets | ||
Operations | ||
Net investment income | $123,762 | $46,432 |
Net realized gain (loss) on investments | (108,027) | (138,527) |
Net change in unrealized appreciation (depreciation) | 573,899 | (740,459) |
Increase (decrease) in net assets from operations | 589,634 | (832,554) |
Distributions to Shareholders | ||
Distributions to shareholders | (120,819) | (42,312) |
Total Distributions to shareholders | (120,819) | (42,312) |
Capital Share Transactions | ||
Net capital share transactions | 2,176,981 | 2,711,190 |
Total increase (decrease) in net assets from capital transactions | 2,176,981 | 2,711,190 |
Total Increase (Decrease) In Net Assets | 2,645,796 | 1,836,324 |
Net Assets | ||
Beginning of year | $7,198,558 | $5,362,234 |
End of year | $9,844,354 | $7,198,558 |
Statements of Changes in Net Assets | The accompanying notes are an integral part of these financial statements. |
Stock Index Fund | Value Fund | Growth Fund | |||
Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 |
$2,499,444 | $2,286,612 | $13,667,395 | $13,324,209 | $(783,224) | $(993,342) |
912,857 | (154,799) | 58,744,792 | 63,175,711 | 12,893,471 | 7,059,306 |
44,074,512 | (46,167,668) | 38,827,904 | (136,261,835) | 95,677,279 | (130,619,695) |
47,486,813 | (44,035,855) | 111,240,091 | (59,761,915) | 107,787,526 | (124,553,731) |
(3,092,059) | (3,574,110) | (59,752,144) | (91,061,366) | (8,038,053) | (15,514,807) |
(3,092,059) | (3,574,110) | (59,752,144) | (91,061,366) | (8,038,053) | (15,514,807) |
(12,007,847) | (2,505,647) | (27,827,153) | 27,692,364 | (14,419,750) | (4,517,269) |
(12,007,847) | (2,505,647) | (27,827,153) | 27,692,364 | (14,419,750) | (4,517,269) |
32,386,907 | (50,115,612) | 23,660,794 | (123,130,917) | 85,329,723 | (144,585,807) |
$191,640,100 | $241,755,712 | $925,132,839 | $1,048,263,756 | $234,678,322 | $379,264,129 |
$224,027,007 | $191,640,100 | $948,793,633 | $925,132,839 | $320,008,045 | $234,678,322 |
The accompanying notes are an integral part of these financial statements. | Statements of Changes in Net Assets |
International Equity Fund | ||
Year Ended December 31, 2023 | Year Ended December 31, 2022 | |
Increase (Decrease) In Net Assets | ||
Operations | ||
Net investment income | $1,237,489 | $1,659,181 |
Net realized gain (loss) on investments | 3,478,561 | 2,298,816 |
Net change in unrealized appreciation (depreciation) | 7,640,203 | (23,735,880) |
Increase (decrease) in net assets from operations | 12,356,253 | (19,777,883) |
Distributions to Shareholders | ||
Distributions to shareholders | (4,836,958) | (4,045,559) |
Total Distributions to shareholders | (4,836,958) | (4,045,559) |
Capital Share Transactions | ||
Net capital share transactions | (2,703,524) | 2,629,704 |
Total increase (decrease) in net assets from capital transactions | (2,703,524) | 2,629,704 |
Total Increase (Decrease) In Net Assets | 4,815,771 | (21,193,738) |
Net Assets | ||
Beginning of year | $82,091,151 | $103,284,889 |
End of year | $86,906,922 | $82,091,151 |
Statements of Changes in Net Assets | The accompanying notes are an integral part of these financial statements. |
Small-Company Stock Fund | |
Year Ended December 31, 2023 | Year Ended December 31, 2022 |
$300,554 | $34,521 |
9,554,165 | 10,610,119 |
28,002,458 | (62,638,176) |
37,857,177 | (51,993,536) |
(9,484,072) | (12,017,540) |
(9,484,072) | (12,017,540) |
(21,709,675) | (9,662,489) |
(21,709,675) | (9,662,489) |
6,663,430 | (73,673,565) |
$240,345,337 | $314,018,902 |
$247,008,767 | $240,345,337 |
The accompanying notes are an integral part of these financial statements. | Statements of Changes in Net Assets |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income from investment operations | |||||
Net investment income | 0.04 | 0.01(a,b) | —(a,b,c) | (—)(a,b,c) | 0.01 |
Net realized and unrealized gain (loss) on investments | —(c) | —(c) | —(c) | — | — |
Total from investment operations | 0.04 | 0.01(a) | —(a,c) | —(a,c) | 0.01 |
Distributions | |||||
Net investment income | (0.04) | (0.01) | —(c) | —(c) | (0.01) |
Net realized gain | — | — | — | — | — |
Total distributions | (0.04) | (0.01) | —(a,c) | —(a,c) | (0.01) |
Net Asset Value, End of Year | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total Return | 4.58% | 1.20% | 0.01% | 0.19% | 1.43% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $218,452 | $204,560 | $179,589 | $171,783 | $162,835 |
Ratio of net investment income to average net assets | 4.48% | 1.24%(a,b) | 0.01%(a,b) | 0.17%(a,b) | 1.42% |
Ratio of gross expenses before voluntary expense limitation to average net assets | 0.59% | 0.59% | 0.70% | 0.78% | 0.78% |
Ratio of expenses to average net assets | 0.59% | 0.48%(a,b) | 0.04%(a,b) | 0.37%(a,b) | 0.78% |
(a) | Effective August 14, 2009, Homestead Advisers agreed to waive fees and/or reimburse expenses to the extent necessary to assist the Fund in attempting to maintain a positive yield. The temporary waiver continued through May 11, 2017 and April 20, 2020 through May 6, 2022. |
(b) | Excludes excess investment management fees and other expenses voluntarily waived and reimbursed by Homestead Advisers. |
(c) | Less than $0.01 per share. |
Financial Highlights | The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $4.87 | $5.21 | $5.29 | $5.21 | $5.14 |
Income from investment operations | |||||
Net investment income | 0.12 | 0.06 | 0.02 | 0.03 | 0.08 |
Net realized and unrealized gain (loss) on investments | 0.10 | (0.34) | (0.08) | 0.18 | 0.09 |
Total from investment operations | 0.22 | (0.28) | (0.06) | 0.21 | 0.17 |
Distributions | |||||
Net investment income | (0.12) | (0.06) | (0.02) | (0.03) | (0.08) |
Net realized gain | — | — | — | (0.10) | (0.02) |
Total distributions | (0.12) | (0.06) | (0.02) | (0.13) | (0.10) |
Net Asset Value, End of Year | $4.97 | $4.87 | $5.21 | $5.29 | $5.21 |
Total Return | 4.68% | -5.41% | -1.18% | 4.13% | 3.36% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $57,437 | $67,671 | $77,512 | $89,150 | $71,516 |
Ratio of net investment income to average net assets | 2.51%(a) | 1.16%(a) | 0.32%(a) | 0.58%(a) | 1.52%(a) |
Ratio of gross expenses before expense limitation to average net assets | 0.84% | 0.80% | 0.79% | 0.81% | 0.85% |
Ratio of expenses to average net assets | 0.75%(a) | 0.75%(a) | 0.75%(a) | 0.75%(a) | 0.75%(a) |
Portfolio turnover rate | 442%(b,c) | 202%(b) | 155%(b) | 299%(b) | 237%(b) |
(a) | Excludes expenses in excess of a 0.75% contractual expense limitation with Homestead Advisers, in effect through April 30, 2024. |
(b) | Rate includes purchases and sales of long-term U.S. Treasury Bonds. |
(c) | The change in the portfolio turnover rate from 2022 to 2023, is due to an increase in trading of U.S. Treasury bonds, due to market events. |
The accompanying notes are an integral part of these financial statements. | Financial Highlights |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $4.81 | $5.19 | $5.32 | $5.23 | $5.17 |
Income from investment operations | |||||
Net investment income | 0.16 | 0.08 | 0.02 | 0.05 | 0.10 |
Net realized and unrealized gain (loss) on investments | 0.10 | (0.38) | (0.08) | 0.23 | 0.10 |
Total from investment operations | 0.26 | (0.30) | (0.06) | 0.28 | 0.20 |
Distributions | |||||
Net investment income | (0.16) | (0.08) | (0.02) | (0.05) | (0.10) |
Net realized gain | — | — | (0.05) | (0.14) | (0.04) |
Total distributions | (0.16) | (0.08) | (0.07) | (0.19) | (0.14) |
Net Asset Value, End of Year | $4.91 | $4.81 | $5.19 | $5.32 | $5.23 |
Total Return | 5.40% | -5.72% | -1.11% | 5.42% | 3.90% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $447,261 | $480,809 | $565,306 | $565,061 | $548,312 |
Ratio of net investment income to average net assets | 3.20% | 1.66% | 0.40% | 0.92% | 1.87% |
Ratio of expenses to average net assets | 0.76% | 0.76% | 0.79% | 0.78% | 0.79% |
Portfolio turnover rate | 395%(a) | 328%(a) | 355%(a) | 328%(a) | 276%(a) |
(a) | Rate includes purchases and sales of long-term U.S. Treasury Bonds. |
Financial Highlights | The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | Period ended May 1, 2019(inception) to December 31, | ||||
For a Share Outstanding Throughout Each Period | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Period | $4.48 | $5.28 | $5.41 | $5.13 | $5.00 |
Income from investment operations | |||||
Net investment income | 0.15 | 0.10 | 0.07 | 0.08 | 0.06 |
Net realized and unrealized gain (loss) on investments | 0.13 | (0.80) | (0.13) | 0.36 | 0.17 |
Total from investment operations | 0.28 | (0.70) | (0.06) | 0.44 | 0.23 |
Distributions | |||||
Net investment income | (0.15) | (0.10) | (0.07) | (0.08) | (0.06) |
Net realized gain | — | — | — | (0.08) | (0.04) |
Total distributions | (0.15) | (0.10) | (0.07) | (0.16) | (0.10) |
Net Asset Value, End of Period | $4.61 | $4.48 | $5.28 | $5.41 | $5.13 |
Total Return | 6.35% | -13.38% | -1.12% | 8.70% | 4.69%(a) |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $128,819 | $130,758 | $151,336 | $92,660 | $23,845 |
Ratio of net investment income to average net assets | 3.24%(b) | 1.93%(b) | 1.03%(b) | 1.19%(b) | 1.69%(b,c) |
Ratio of gross expenses before expense limitation to average net assets | 0.89% | 0.87% | 0.91% | 1.13% | 2.49%(c) |
Ratio of expenses to average net assets | 0.80%(b) | 0.80%(b) | 0.80%(b) | 0.80%(b) | 0.80%(b,c) |
Portfolio turnover rate | 189%(d) | 258%(d) | 249%(d) | 359%(d) | 395%(d) |
(a) | Aggregate total return for the period. |
(b) | Excludes expenses in excess of a 0.80% contractual expense limitation with Homestead Advisers, in effect through April 30, 2024. |
(c) | Annualized. |
(d) | Rate includes purchases and sales of long-term U.S. Treasury Bonds. |
The accompanying notes are an integral part of these financial statements. | Financial Highlights |
Year Ended December 31, | Period ended May 1, 2021(inception) to December 31, | ||
For a Share Outstanding Throughout Each Period | 2023 | 2022 | 2021 |
Net Asset Value, Beginning of Period | $8.89 | $10.42 | $10.00 |
Income from investment operations | |||
Net investment income | 0.12 | 0.05 | 0.02 |
Net realized and unrealized gain (loss) on investments | 0.48 | (1.53) | 0.44 |
Total from investment operations | 0.60 | (1.48) | 0.46 |
Distributions | |||
Net investment income | (0.12) | (0.05) | (0.02) |
Net realized gain | — | — | (0.02) |
Total distributions | (0.12) | (0.05) | (0.04) |
Net Asset Value, End of Period | $9.37 | $8.89 | $10.42 |
Total Return | 6.74% | -14.18% | 4.58%(a) |
Ratios/Supplemental Data | |||
Net assets, end of year (thousands) | $9,844 | $7,199 | $5,362 |
Ratio of net investment income to average net assets | 1.45%(b) | 0.70%(b) | 0.44%(b,c) |
Ratio of gross expenses before expense limitation to average net assets | 2.31% | 2.85% | 5.12%(c) |
Ratio of expenses to average net assets | 1.00%(b) | 1.00%(b) | 1.00%(b,c) |
Portfolio turnover rate | 44% | 44%(d) | 9% |
(a) | Aggregate total return for the period. |
(b) | Excludes expenses in excess of a 1.00% contractual expense limitation with Homestead Advisers, in effect through April 30, 2024. |
(c) | Annualized. |
(d) | The change in the portfolio turnover rate from 2021 to 2022, is due to an increase in shareholder redemptions, resulting in more security sales. |
Financial Highlights | The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $27.85 | $34.82 | $27.78 | $23.93 | $18.67 |
Income from investment operations | |||||
Net investment income | 0.39 | 0.34 | 0.29 | 0.32 | 0.34 |
Net realized and unrealized gain (loss) on investments | 6.77 | (6.78) | 7.50 | 3.92 | 5.39 |
Total from investment operations | 7.16 | (6.44) | 7.79 | 4.24 | 5.73 |
Distributions | |||||
Net investment income | (0.36) | (0.34) | (0.30) | (0.31) | (0.38) |
Net realized gain | (0.12) | (0.19) | (0.45) | (0.08) | (0.09) |
Total distributions | (0.48) | (0.53) | (0.75) | (0.39) | (0.47) |
Net Asset Value, End of Year | $34.53 | $27.85 | $34.82 | $27.78 | $23.93 |
Total Return | 25.73% | -18.50% | 28.09% | 17.80% | 30.77% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $224,027 | $191,640 | $241,756 | $188,823 | $170,951 |
Ratio of net investment income to average net assets | 1.20% | 1.12% | 0.91% | 1.30% | 1.39% |
Ratio of expenses to average net assets | 0.44% | 0.48% | 0.50% | 0.53% | 0.59% |
Portfolio turnover rate (a) | N/A | N/A | N/A | N/A | N/A |
(a) | Substantially all of the assets of the Stock Index Fund are invested in the S&P 500 Index Master Portfolio managed by BlackRock Fund Advisors. Please refer to the financial highlights in the Appendix for the portfolio turnover rate of the S&P 500 Index Master Portfolio. |
The accompanying notes are an integral part of these financial statements. | Financial Highlights |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $46.29 | $54.33 | $47.28 | $51.51 | $46.64 |
Income from investment operations | |||||
Net investment income | 0.72 | 0.68 | 0.63 | 0.66 | 0.83 |
Net realized and unrealized gain (loss) on investments | 5.14 | (3.84) | 11.12 | 2.94 | 11.93 |
Total from investment operations | 5.86 | (3.16) | 11.75 | 3.60 | 12.76 |
Distributions | |||||
Net investment income | (0.72) | (0.68) | (0.64) | (0.66) | (0.83) |
Net realized gain | (2.47) | (4.20) | (4.06) | (7.17) | (7.06) |
Total distributions | (3.19) | (4.88) | (4.70) | (7.83) | (7.89) |
Net Asset Value, End of Year | $48.96 | $46.29 | $54.33 | $47.28 | $51.51 |
Total Return | 12.86% | -5.50% | 25.07% | 7.61% | 27.69% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $948,794 | $925,133 | $1,048,264 | $928,744 | $992,108 |
Ratio of net investment income to average net assets | 1.50% | 1.42% | 1.14% | 1.35% | 1.53% |
Ratio of expenses to average net assets | 0.64% | 0.62% | 0.63% | 0.65% | 0.66% |
Portfolio turnover rate | 10% | 10% | 9% | 22% | 17% |
Financial Highlights | The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $10.40 | $16.66 | $15.56 | $11.78 | $9.68 |
Income from investment operations | |||||
Net investment loss | (—) | — | (0.08) | (—) | (—) |
Net realized and unrealized gain (loss) on investments | 4.96 | (5.55) | 2.70 | 4.52 | 2.73 |
Total from investment operations | 4.96 | (5.55) | 2.62 | 4.52 | 2.73 |
Distributions | |||||
Net investment income | — | — | — | — | — |
Net realized gain | (0.38) | (0.71) | (1.52) | (0.74) | (0.63) |
Total distributions | (0.38) | (0.71) | (1.52) | (0.74) | (0.63) |
Net Asset Value, End of Year | $14.98 | $10.40 | $16.66 | $15.56 | $11.78 |
Total Return | 47.81% | -33.45% | 17.13% | 38.65% | 28.36% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $320,008 | $234,678 | $379,264 | $319,660 | $243,548 |
Ratio of net investment loss to average net assets | (0.28)% | (0.35)% | (0.50)% | (0.46)% | (0.14)% |
Ratio of expenses to average net assets | 0.84% | 0.83% | 0.84% | 0.89% | 0.93% |
Portfolio turnover rate | 19% | 23% | 26% | 23% | 29% |
The accompanying notes are an integral part of these financial statements. | Financial Highlights |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $8.86 | $11.52 | $10.84 | $8.99 | $7.28 |
Income from investment operations | |||||
Net investment income | 0.14 | 0.19 | 0.13 | 0.06 | 0.12 |
Net realized and unrealized gain (loss) on investments | 1.25 | (2.40) | 1.07 | 1.86 | 1.69 |
Total from investment operations | 1.39 | (2.21) | 1.20 | 1.92 | 1.81 |
Distributions | |||||
Net investment income | (0.15) | (0.18) | (0.12) | (0.07) | (0.10) |
Net realized gain | (0.41) | (0.27) | (0.40) | — | — |
Total distributions | (0.56) | (0.45) | (0.52) | (0.07) | (0.10) |
Net Asset Value, End of Year | $9.69 | $8.86 | $11.52 | $10.84 | $8.99 |
Total Return | 15.82% | -19.13% | 11.09% | 21.34% | 24.83% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $86,907 | $82,091 | $103,285 | $91,541 | $78,775 |
Ratio of net investment income to average net assets | 1.45%(a) | 1.97%(a) | 1.07%(a) | 0.65%(a) | 1.29%(a) |
Ratio of gross expenses before voluntary expense limitation to average net assets | 1.14% | 1.16% | 1.19% | 1.24% | 1.30% |
Ratio of expenses to average net assets | 1.04%(a) | 1.00%(a) | 1.00%(a) | 0.99%(a) | 0.99%(a) |
Portfolio turnover rate | 20% | 13% | 13% | 15% | 27% |
(a) | Excludes expenses in excess of a 0.99% contractual expense limitation with Homestead Advisers prior to May 1, 2021 and a 1.00% contractual expense limitation with Homestead Advisers, in effect from May 1, 2021 through September 23, 2023. |
Financial Highlights | The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | |||||
For a Share Outstanding Throughout Each Year | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Asset Value, Beginning of Year | $22.69 | $28.72 | $28.36 | $26.25 | $25.57 |
Income from investment operations | |||||
Net investment income | 0.02 | (—) | 0.12 | (—) | 0.18 |
Net realized and unrealized gain (loss) on investments | 3.83 | (4.87) | 5.53 | 5.70 | 5.42 |
Total from investment operations | 3.85 | (4.87) | 5.65 | 5.70 | 5.60 |
Distributions | |||||
Net investment income | (0.02) | —(a) | (0.12) | —(a) | (0.18) |
Net realized gain | (0.97) | (1.16) | (5.17) | (3.59) | (4.74) |
Total distributions | (0.99) | (1.16) | (5.29) | (3.59) | (4.92) |
Net Asset Value, End of Year | $25.55 | $22.69 | $28.72 | $28.36 | $26.25 |
Total Return | 17.09% | -16.91% | 20.68% | 22.08% | 22.16% |
Ratios/Supplemental Data | |||||
Net assets, end of year (thousands) | $247,009 | $240,345 | $314,019 | $286,538 | $332,450 |
Ratio of net investment income (loss) to average net assets | 0.13% | 0.01% | 0.36% | (0.16)% | 0.54% |
Ratio of expenses to average net assets | 1.07% | 1.05% | 1.06% | 1.12% | 1.05% |
Portfolio turnover rate | 15% | 16% | 24% | 18% | 38% |
(a) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements. | Financial Highlights |
Notes to Financial Statements |
Notes to Financial Statements |
Daily Income Fund | Level 1 | Level 2 | Level 3 | Total |
U.S. Government & Agency Obligations | $ — | $183,895,939 | $ — | $183,895,939 |
Money Market Fund | 44,620,991 | — | — | 44,620,991 |
Total | $44,620,991 | $183,895,939 | $ — | $228,516,930 |
Short-Term Government Securities Fund | ||||
U.S. Government & Agency Obligations | $ — | $34,853,875 | $ — | $34,853,875 |
Mortgage-Backed Securities | — | 9,665,415 | — | 9,665,415 |
Corporate Bonds Guaranteed by Export-Import Bank of the United States | — | 9,084,917 | — | 9,084,917 |
Asset-Backed Securities | — | 1,802,814 | — | 1,802,814 |
Corporate Bonds–Other | — | 1,488,639 | — | 1,488,639 |
Money Market Fund | 276,092 | — | — | 276,092 |
Total | $276,092 | $56,895,660 | $ — | $57,171,752 |
Short-Term Bond Fund | ||||
U.S. Government & Agency Obligations | $ — | $173,021,113 | $ — | $173,021,113 |
Corporate Bonds–Other | — | 148,965,314 | — | 148,965,314 |
Asset-Backed Securities | — | 44,007,147 | — | 44,007,147 |
Yankee Bonds | — | 34,791,242 | — | 34,791,242 |
Mortgage-Backed Securities | — | 31,448,952 | — | 31,448,952 |
Corporate Bonds Guaranteed by Export-Import Bank of the United States | — | 4,858,542 | — | 4,858,542 |
Municipal Bonds | — | 2,814,145 | — | 2,814,145 |
Money Market Fund | 5,297,939 | — | — | 5,297,939 |
Total | $5,297,939 | $439,906,455 | $ — | $445,204,394 |
Intermediate Bond Fund | ||||
Mortgage-Backed Securities | $ — | $43,014,071 | $ — | $43,014,071 |
Corporate Bonds–Other | — | 37,928,305 | — | 37,928,305 |
U.S. Government & Agency Obligations | — | 21,977,724 | — | 21,977,724 |
Asset-Backed Securities | — | 10,653,433 | — | 10,653,433 |
Yankee Bonds | — | 7,532,221 | — | 7,532,221 |
Municipal Bonds | — | 2,327,134 | — | 2,327,134 |
Corporate Bond Guaranteed by Export-Import Bank of the United States | — | 107,130 | — | 107,130 |
Money Market Fund | 4,341,712 | — | — | 4,341,712 |
Total | $4,341,712 | $123,540,018 | $ — | $127,881,730 |
Rural America Growth & Income Fund | ||||
Common Stocks | $5,623,717 | $ — | $ — | $5,623,717 |
U.S. Government & Agency Obligations | — | 2,230,693 | — | 2,230,693 |
Corporate Bonds–Other | — | 966,720 | — | 966,720 |
Asset-Backed Securities | — | 193,487 | — | 193,487 |
Mortgage-Backed Securities | — | 179,022 | — | 179,022 |
Municipal Bonds | — | 119,646 | — | 119,646 |
Money Market Fund | 526,096 | — | — | 526,096 |
Total | $6,149,813 | $3,689,568 | $ — | $9,839,381 |
Value Fund | ||||
Common Stocks | $938,711,371 | $ — | $ — | $938,711,371 |
Money Market Fund | 10,418,823 | — | — | 10,418,823 |
Total | $949,130,194 | $ — | $ — | $949,130,194 |
Notes to Financial Statements |
Growth Fund | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | $317,308,059 | $ — | $ — | $317,308,059 |
Money Market Fund | 3,017,005 | — | — | 3,017,005 |
Total | $320,325,064 | $ — | $ — | $320,325,064 |
International Equity Fund | ||||
Common Stocks | $17,747,690 | $65,762,429 | $ — | $83,510,119 |
Money Market Fund | 3,213,881 | — | — | 3,213,881 |
Total | $20,961,571 | $65,762,429 | $ — | $86,724,000 |
Small-Company Stock Fund | ||||
Common Stocks | $244,611,331 | $ — | $ — | $244,611,331 |
Money Market Fund | 3,046,744 | — | — | 3,046,744 |
Total | $247,658,075 | $ — | $ — | $247,658,075 |
Notes to Financial Statements |
Distributable Earnings (Losses) | Paid in Capital | |
Daily Income Fund | $— | $— |
Short-Term Gov. Securities Fund | $5,721 | $(5,721) |
Short-Term Bond Fund | $— | $— |
Intermediate Bond Fund | $6,728 | $(6,728) |
Rural America Growth & Income Fund | $79 | $(79) |
Stock Index Fund | $815 | $(815) |
Value Fund | $(2,715,804) | $2,715,804 |
Growth Fund | $778,970 | $(778,970) |
International Equity Fund | $— | $— |
Small-Company Stock Fund | $(727,741) | $727,741 |
Ordinary Income | Long-Term Gain | Return of Capital | Total Distributions | |
Daily Income Fund | $9,394,022 | $— | $— | $9,394,022 |
Short-Term Gov. Securities Fund | $1,549,864 | $— | $— | $1,549,864 |
Short-Term Bond Fund | $15,029,963 | $— | $— | $15,029,963 |
Intermediate Bond Fund | $4,248,715 | $— | $— | $4,248,715 |
Rural America Growth & Income Fund | $120,819 | $— | $— | $120,819 |
Stock Index Fund | $2,847,038 | $245,021 | $— | $3,092,059 |
Value Fund | $13,773,883 | $45,978,261 | $— | $59,752,144 |
Growth Fund | $— | $8,038,053 | $— | $8,038,053 |
International Equity Fund | $1,289,663 | $3,547,295 | $— | $4,836,958 |
Small-Company Stock Fund | $161,045 | $9,323,027 | $— | $9,484,072 |
Notes to Financial Statements |
Ordinary Income | Long-Term Gain | Return of Capital | Total Distributions | |
Daily Income Fund | $2,393,963 | $— | $— | $2,393,963 |
Short-Term Gov. Securities Fund | $842,483 | $— | $— | $842,483 |
Short-Term Bond Fund | $8,609,201 | $— | $— | $8,609,201 |
Intermediate Bond Fund | $2,782,153 | $— | $— | $2,782,153 |
Rural America Growth & Income Fund | $42,312 | $— | $— | $42,312 |
Stock Index Fund | $2,649,522 | $924,588 | $— | $3,574,110 |
Value Fund | $12,769,165 | $78,292,201 | $— | $91,061,366 |
Growth Fund | $— | $15,514,807 | $— | $15,514,807 |
International Equity Fund | $1,618,091 | $2,427,468 | $— | $4,045,559 |
Small-Company Stock Fund | $— | $12,017,540 | $— | $12,017,540 |
Undistributed Ordinary Income | Undistributed Long-Term Gain | Net Unrealized Appreciation/ Depreciation | Capital Loss Carryforward/ Late Year Loss Deferral | Other Book/Tax Differences | Total Distributable Earnings (Losses) | |
Daily Income Fund | $10,553 | $— | $— | $(9,941) | $(85,004) | $(84,392) |
Short-Term Gov. Securities Fund | $— | $— | $(584,824) | $(3,235,226) | $(34,886) | $(3,854,936) |
Short-Term Bond Fund | $— | $— | $(4,132,278) | $(29,076,091) | $(219,354) | $(33,427,723) |
Intermediate Bond Fund | $— | $— | $(5,594,645) | $(14,842,433) | $(10,203) | $(20,447,281) |
Rural America Growth & Income Fund | $4,741 | $— | $(13,675) | $(222,453) | $(200) | $(231,587) |
Stock Index Fund | $338,914 | $98,210 | $195,862,032 | $— | $(2,290,252) | $194,008,904 |
Value Fund | $101,909 | $14,480,385 | $408,494,981 | $— | $(338,498) | $422,738,777 |
Growth Fund | $— | $3,512,413 | $141,922,259 | $— | $(54,591) | $145,380,081 |
International Equity Fund | $114,806 | $448,520 | $19,871,021 | $— | $(58,477) | $20,375,870 |
Small-Company Stock Fund | $— | $1,279,189 | $63,696,979 | $— | $(198,769) | $64,777,399 |
Tax Cost | Tax Appreciation | Tax Depreciation | Net Tax Appreciation (Depreciation) | |
Daily Income Fund | $228,516,930 | $— | $— | $— |
Short-Term Gov. Securities Fund | $57,756,578 | $452,072 | $(1,036,898) | $(584,826) |
Short-Term Bond Fund | $449,336,672 | $3,702,660 | $(7,834,938) | $(4,132,278) |
Intermediate Bond Fund | $133,476,375 | $1,502,415 | $(7,097,060) | $(5,594,645) |
Rural America Growth & Income Fund | $9,853,056 | $525,775 | $(539,450) | $(13,675) |
Value Fund | $540,635,213 | $418,251,453 | $(9,756,472) | $408,494,981 |
Growth Fund | $178,402,803 | $147,250,340 | $(5,328,079) | $141,922,261 |
International Equity Fund | $66,870,407 | $22,518,991 | $(2,665,398) | $19,853,593 |
Small-Company Stock Fund | $183,961,096 | $76,804,661 | $(13,107,683) | $63,696,978 |
Notes to Financial Statements |
Purchases | Proceeds from Sale | |
Short-Term Gov. Securities Fund | $12,486,877 | $13,873,633 |
Short-Term Bond Fund | $149,895,664 | $116,075,587 |
Intermediate Bond Fund | $51,766,979 | $35,255,645 |
Rural America Growth & Income Fund | $1,925,116 | $821,570 |
Value Fund | $87,267,171 | $150,898,692 |
Growth Fund | $52,982,600 | $75,584,730 |
International Equity Fund | $16,873,999 | $24,402,117 |
Small-Company Stock Fund | $34,926,331 | $63,904,351 |
Purchases | Proceeds from Sale | |
Short-Term Gov. Securities Fund | $255,451,949 | $265,669,157 |
Short-Term Bond Fund | $1,695,411,541 | $1,770,417,067 |
Intermediate Bond Fund | $186,167,208 | $209,571,826 |
Rural America Growth & Income Fund | $3,675,083 | $2,842,065 |
Management Fee | |
Daily Income Fund | 0.40% of average daily net assets |
Short-Term Gov. Securities Fund | 0.45% of average daily net assets |
Short-Term Bond Fund | 0.60% of average daily net assets up to $500 million |
0.50% of average daily net assets up to next $500 million | |
0.40% of average daily net assets in excess of $1 billion | |
Intermediate Bond Fund | 0.60% of average daily net assets up to $500 million |
0.50% of average daily net assets up to next $500 million | |
0.45% of average daily net assets in excess of $1 billion | |
Rural American Growth & Income Fund | 0.65% of average daily net assets up to $500 million |
0.50% of average daily net assets up to next $500 million | |
0.40% of average daily net assets in excess of $1 billion | |
Value Fund | 0.65% of average daily net assets up to $200 million |
0.50% of average daily net assets up to next $200 million | |
0.40% of average daily net assets in excess of $400 million | |
Growth Fund | 0.65% of average daily net assets up to $250 million |
0.60% of average daily net assets in excess of $250 million |
Notes to Financial Statements |
Management Fee | |
International Equity Fund | 0.75% of average daily net assets up to $300 million |
0.65% of average daily net assets up to next $100 million | |
0.55% of average daily net assets up to next $100 million | |
0.50% of average daily net assets in excess of $500 million | |
Small-Company Stock Fund | 0.85% of average daily net assets up to $200 million |
0.75% of average daily net assets in excess of $200 million |
Notes to Financial Statements |
Shares Sold | Shares Issued In Reinvestment of Dividends | Total Shares Issued | Total Shares Redeemed | Net Increase (Decrease) | |
Year Ended December 31, 2023 | |||||
In Dollars | |||||
Daily Income Fund | $91,436,242 | $9,320,251 | $100,756,493 | $(86,859,683) | $13,896,810 |
Short-Term Government Securities Fund | $5,975,005 | $1,502,446 | $7,477,451 | $(18,906,906) | $(11,429,455) |
Short-Term Bond Fund | $25,397,875 | $14,603,095 | $40,000,970 | $(82,446,590) | $(42,445,620) |
Intermediate Bond Fund | $15,603,846 | $4,120,588 | $19,724,434 | $(25,133,910) | $(5,409,476) |
Rural America Growth & Income Fund | $4,061,395 | $120,720 | $4,182,115 | $(2,005,134) | $2,176,981 |
Stock Index Fund | $16,490,660 | $2,995,977 | $19,486,637 | $(31,494,484) | $(12,007,847) |
Value Fund | $30,752,049 | $57,900,715 | $88,652,764 | $(116,479,917) | $(27,827,153) |
Growth Fund | $20,008,692 | $7,992,962 | $28,001,654 | $(42,421,404) | $(14,419,750) |
International Equity Fund | $6,214,052 | $4,566,888 | $10,780,940 | $(13,484,464) | $(2,703,524) |
Small-Company Stock Fund | $8,337,296 | $9,152,326 | $17,489,622 | $(39,199,297) | $(21,709,675) |
In Shares | |||||
Daily Income Fund | 91,436,242 | 9,320,251 | 100,756,493 | (86,859,683) | 13,896,810 |
Short-Term Government Securities Fund | 1,218,591 | 306,713 | 1,525,304 | (3,858,364) | (2,333,060) |
Short-Term Bond Fund | 5,246,903 | 3,016,096 | 8,262,999 | (16,990,521) | (8,727,522) |
Intermediate Bond Fund | 3,476,272 | 914,760 | 4,391,032 | (5,600,768) | (1,209,736) |
Rural America Growth & Income Fund | 450,395 | 13,013 | 463,408 | (222,042) | 241,366 |
Stock Index Fund | 525,259 | 87,783 | 613,042 | (1,006,990) | (393,948) |
Value Fund | 654,355 | 1,203,527 | 1,857,882 | (2,465,323) | (607,441) |
Growth Fund | 1,530,495 | 543,739 | 2,074,234 | (3,282,620) | (1,208,386) |
International Equity Fund | 653,261 | 479,816 | 1,133,077 | (1,426,457) | (293,380) |
Small-Company Stock Fund | 341,892 | 366,088 | 707,980 | (1,632,820) | (924,840) |
Notes to Financial Statements |
Shares Sold | Shares Issued In Reinvestment of Dividends | Total Shares Issued | Total Shares Redeemed | Net Increase (Decrease) | |
Year Ended December 31, 2022 | |||||
In Dollars | |||||
Daily Income Fund | $105,940,219 | $2,368,554 | $108,308,773 | $(83,334,145) | $24,974,628 |
Short-Term Government Securities Fund | $6,903,885 | $834,420 | $7,738,305 | $(12,673,437) | $(4,935,132) |
Short-Term Bond Fund | $35,346,633 | $8,425,693 | $43,772,326 | $(88,194,983) | $(44,422,657) |
Intermediate Bond Fund | $12,142,488 | $2,779,340 | $14,921,828 | $(12,430,149) | $2,491,679 |
Rural America Growth & Income Fund | $6,042,214 | $42,281 | $6,084,495 | $(3,373,305) | $2,711,190 |
Stock Index Fund | $19,111,037 | $3,464,922 | $22,575,959 | $(25,081,606) | $(2,505,647) |
Value Fund | $54,797,327 | $88,584,574 | $143,381,901 | $(115,689,537) | $27,692,364 |
Growth Fund | $24,726,104 | $15,377,070 | $40,103,174 | $(44,620,443) | $(4,517,269) |
International Equity Fund | $5,995,506 | $3,834,128 | $9,829,634 | $(7,199,930) | $2,629,704 |
Small-Company Stock Fund | $10,346,352 | $11,615,697 | $21,962,049 | $(31,624,538) | $(9,662,489) |
In Shares | |||||
Daily Income Fund | 105,940,219 | 2,368,554 | 108,308,773 | (83,334,145) | 24,974,628 |
Short-Term Government Securities Fund | 1,378,052 | 168,753 | 1,546,805 | (2,543,811) | (997,006) |
Short-Term Bond Fund | 7,093,356 | 1,724,987 | 8,818,343 | (17,777,882) | (8,959,539) |
Intermediate Bond Fund | 2,516,831 | 595,521 | 3,112,352 | (2,571,384) | 540,968 |
Rural America Growth & Income Fund | 638,440 | 4,719 | 643,159 | (348,494) | 294,665 |
Stock Index Fund | 632,939 | 123,157 | 756,096 | (818,468) | (62,372) |
Value Fund | 1,115,417 | 1,935,365 | 3,050,782 | (2,358,768) | 692,014 |
Growth Fund | 1,918,181 | 1,414,054 | 3,332,235 | (3,530,173) | (197,938) |
International Equity Fund | 621,580 | 432,023 | 1,053,603 | (755,175) | 298,428 |
Small-Company Stock Fund | 415,423 | 512,197 | 927,620 | (1,268,636) | (341,016) |
Notes to Financial Statements |
Independent | (Unaudited)
Name, Year of Birth and Address (1) | Position(s) Held With Homestead Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past Five Years | Number of Portfolios Overseen by Director in the Fund Complex (2) | Other Directorships Held by Director |
James F. Perna 1947 | Director/Trustee, Chairman of the Board, Member of Audit Committee, Member of Nominating & Governance Committee | 1990-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Solo Practitioner (attorney) (2008-present) | 10 | None |
Douglas W. Johnson 1955 | Director/Trustee, Chairman of Audit Committee, Member of Nominating & Governance Committee | 2003-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | CEO, Blue Ridge Electric Membership Corporation (1989-present) | 10 | None |
Kenneth R. Meyer (3) 1944 | Director/Trustee, Member of Audit Committee, Member of Nominating & Governance Committee | 2005-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Retired (2004-present) | 10 | None |
Anthony M. Marinello 1946 | Director/Trustee, Member of Audit Committee, Member of Nominating & Governance Committee | 1990-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Retired (2004-present) | 10 | None |
Sheldon C. Petersen 1953 | Director/Trustee, Member of Audit Committee, Member of Nominating & Governance Committee | 2005-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Retired (2021-present); CEO, National Rural Utilities Cooperative Finance Corporation (1995-2021) | 10 | None |
Mark Rose 1953 | Director/Trustee, Member of Audit Committee, Member of Nominating & Governance Committee | 2005-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Consultant, public affairs (2017-present)(self-employed); CEO and General Manager, Bluebonnet Electric Cooperative (2002-2017) | 10 | None |
Peter J. Tonetti 1953 | Director/Trustee, Member of Audit Committee, Member of Nominating & Governance Committee | 2010-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Retired (2015-present) | 10 | None |
Independent | (Unaudited) (Continued)
Judith H. McKinney 1950 | Director/Trustee, Member of Audit Committee, Chairperson of Nominating & Governance Committee | 2019-present | Retired (2019-present); Executive Vice President and Manager, Callan LLC (2007-2019) | 10 | None |
Julie H. Dellinger 1953 | Director/Trustee, Vice Chair of Audit Committee, Member of Nominating & Governance Committee | 2019-present; Vice Chair of Audit Committee 2021-present | Westminster Investment Consultants, CEO (2017- present); Managing Vice President of Investments, ICMARC and Manager, Vantagepoint Investment Advisers, LLC (1998-2017) | 10 | None |
Interested | (Unaudited)
Name, Year of Birth and Address (1) | Position(s) Held With Homestead Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past Five Years | Number of Portfolios Overseen by Director | Other Directorships Held by Director |
Mark D. Santero (4) 1961 | Director/Trustee, President and Chief Executive Officer | 2018-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Homestead Advisers Corp., President, Chief Executive Officer and Director (2018- present); Chief Executive Officer, The Dreyfus Corporation (2016-2017); Chief Operating Officer, BNY Mellon Investment Management (2014- 2016) | 10 | Not Applicable |
Danielle C. Sieverling 1971 | Chief Compliance Officer and Secretary | 2005-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | Chief Compliance Officer, Homestead Advisers Corp. (2005-present); Vice President, Chief Risk and Compliance Officer, NRECA (2015-present); Chief Compliance Officer, Homestead Financial Services Corp. (2017-Present); Secretary, Homestead Advisers Corp. (2017-2018, 2020-2021, 2023-Present); Chief Executive Officer and Director, Homestead Financial Services Corp. (2017-2018); Director, Homestead Financial Services Corp. (2016) Vice President and Director, Homestead Financial Services Corp. (2015-2016); Vice President and Chief Compliance Officer, Management Advisory Services, NRECA (2008-2015) | Not Applicable | Not Applicable |
Amy M. DiMauro 1971 | Treasurer | 2007-present (Homestead Funds, Inc,); since inception (Homestead Funds Trust) | Treasurer and Director, Homestead Financial Services Corp. (2006- present); Treasurer and Director, Homestead Advisers Corp. (2010- present); Senior Director, Finance & Accounting—Mutual Funds, NRECA (2014-present); Treasurer and Director, Electric Cooperative Life Insurance Co. (2013-2021); Treasurer and Director, Cooperating Insurance Services Co. (2013- present) | Not Applicable | Not Applicable |
Jennifer (Laurie) Webster 1963 | Chief Operations Officer | 2017-present (Homestead Funds, Inc.); since inception (Homestead Funds Trust) | President and Director, Homestead Financial Services Corp. (2018- present); Chief Operations Officer, Homestead Financial Services Corp. (2017- present); Vice President of Operations and Client Services, Homestead Advisers Corp. (2017-2020); Chief Operations Officer, Homestead Advisers Corp. (2020-present); Chief Operating Officer, Solomon Hess Capital Management (2017-2017); V.P. Investment Operations and Indexing, Calvert Investments (2014-2017) | Not Applicable | Not Applicable |
Fund | Qualified Dividend Income for Individuals | Dividends Received Deduction for Corporations | REIT Income |
Daily Income Fund | 0% | 0% | 0% |
Short-Term Government Securities Fund | 0% | 0% | 0% |
Short-Term Bond Fund | 0% | 0% | 0% |
Intermediate Bond Fund | 0% | 0% | 0% |
Rural America Growth & Income Fund | 31% | 31% | 7% |
Stock Index Fund | 90% | 90% | 4% |
Value Fund | 93% | 93% | 7% |
Growth Fund | 0% | 0% | 0% |
International Equity Fund | 100% | 100% | 0% |
Small-Company Stock Fund | 73% | 73% | 18% |
Fund | Record Date | Distributions of Short-Term Capital Gains | Distributions of Long-Term Capital Gains |
Stock Index Fund | 6/29/2023 | $0.0025 | $0.0014 |
Stock Index Fund | 12/13/2023 | $0.0803 | $0.0365 |
Value Fund | 6/29/2023 | $– | $0.1597 |
Value Fund | 12/13/2023 | $– | $2.3102 |
Growth Fund | 12/13/2023 | $– | $0.3849 |
International Equity Fund | 6/29/2023 | $– | $0.0561 |
International Equity Fund | 12/13/2023 | $– | $0.3527 |
Small-Company Stock Fund | 6/29/2023 | $– | $0.1848 |
Small-Company Stock Fund | 12/13/2023 | $– | $0.7880 |
Master Portfolio Information as of December 31, 2023
| S&P 500 Index Master Portfolio |
TEN LARGEST HOLDINGS |
| |||
Security | Percent of Net Assets | |||
Apple, Inc. | 6.9% | |||
Microsoft Corp. | 6.9 | |||
Amazon.com, Inc. | 3.4 | |||
NVIDIA Corp. | 3.0 | |||
Alphabet, Inc., Class A | 2.1 | |||
Meta Platforms, Inc., Class A | 1.9 | |||
Alphabet, Inc., Class C | 1.7 | |||
Tesla, Inc. | 1.7 | |||
Berkshire Hathaway, Inc., Class B | 1.6 | |||
JPMorgan Chase & Co. | 1.2 |
SECTOR ALLOCATION
Sector(a) | Percent of Net Assets | |||
Information Technology | 28.5% | |||
Financials | 12.8 | |||
Health Care | 12.4 | |||
Consumer Discretionary | 10.7 | |||
Industrials | 8.7 | |||
Communication Services | 8.5 | |||
Consumer Staples | 6.1 | |||
Energy | 3.8 | |||
Real Estate | 2.5 | |||
Materials | 2.4 | |||
Utilities | 2.3 | |||
Investment Companies | 0.6 | |||
Short-Term Securities | 0.8 | |||
Liabilities in Excess of Other Assets | (0.1) |
(a) | For S&P 500 Index Master Portfolio (the “Master Portfolio”) compliance purposes, the Master Portfolio’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
MASTER PORTFOLIO INFORMATION | 1 |
Schedule of Investments December 31, 2023 | S&P 500 Index Master Portfolio (Percentages shown are based on Net Assets) | |
|
Security | Shares | Value | ||||||
| ||||||||
Common Stocks | ||||||||
Aerospace & Defense — 1.6% | ||||||||
Axon Enterprise, Inc.(a) | 62,495 | $ | 16,144,333 | |||||
Boeing Co.(a) | 503,306 | 131,191,742 | ||||||
General Dynamics Corp. | 201,164 | 52,236,256 | ||||||
Howmet Aerospace, Inc.(b) | 347,601 | 18,812,166 | ||||||
Huntington Ingalls Industries, Inc. | 35,040 | 9,097,786 | ||||||
L3Harris Technologies, Inc. | 168,092 | 35,403,537 | ||||||
Lockheed Martin Corp. | 196,002 | 88,835,947 | ||||||
Northrop Grumman Corp. | 126,243 | 59,099,398 | ||||||
RTX Corp. | 1,276,366 | 107,393,435 | ||||||
Textron, Inc. | 176,036 | 14,156,815 | ||||||
TransDigm Group, Inc. | 48,983 | 49,551,203 | ||||||
|
| |||||||
581,922,618 | ||||||||
Air Freight & Logistics — 0.5% | ||||||||
CH Robinson Worldwide, Inc. | 103,358 | 8,929,098 | ||||||
Expeditors International of Washington, Inc. | 131,443 | 16,719,550 | ||||||
FedEx Corp. | 205,392 | 51,958,014 | ||||||
United Parcel Service, Inc., Class B | 642,014 | 100,943,861 | ||||||
|
| |||||||
178,550,523 | ||||||||
Automobile Components — 0.1% | ||||||||
Aptiv PLC(a) | 251,920 | 22,602,263 | ||||||
BorgWarner, Inc. | 208,912 | 7,489,495 | ||||||
|
| |||||||
30,091,758 | ||||||||
Automobiles — 1.9% | ||||||||
Ford Motor Co. | 3,498,879 | 42,651,335 | ||||||
General Motors Co.(b) | 1,212,535 | 43,554,257 | ||||||
Tesla, Inc.(a) | 2,451,127 | 609,056,037 | ||||||
|
| |||||||
695,261,629 | ||||||||
Banks — 3.2% | ||||||||
Bank of America Corp. | 6,111,486 | 205,773,734 | ||||||
Citigroup, Inc. | 1,709,344 | 87,928,655 | ||||||
Citizens Financial Group, Inc. | 419,751 | 13,910,548 | ||||||
Comerica, Inc. | 117,856 | 6,577,543 | ||||||
Fifth Third Bancorp | 605,140 | 20,871,279 | ||||||
Huntington Bancshares, Inc. | 1,286,805 | 16,368,160 | ||||||
JPMorgan Chase & Co. | 2,566,230 | 436,515,723 | ||||||
KeyCorp. | 831,798 | 11,977,891 | ||||||
M&T Bank Corp. | 147,664 | 20,241,781 | ||||||
PNC Financial Services Group, Inc. | 353,795 | 54,785,156 | ||||||
Regions Financial Corp. | 833,982 | 16,162,571 | ||||||
Truist Financial Corp. | 1,183,321 | 43,688,211 | ||||||
U.S. Bancorp | 1,382,092 | 59,816,942 | ||||||
Wells Fargo & Co. | 3,223,658 | 158,668,447 | ||||||
Zions Bancorp NA | 128,196 | 5,623,958 | ||||||
|
| |||||||
1,158,910,599 | ||||||||
Beverages — 1.5% | ||||||||
Brown-Forman Corp., Class B | 162,610 | 9,285,031 | ||||||
Coca-Cola Co. | 3,454,643 | 203,582,112 | ||||||
Constellation Brands, Inc., Class A | 143,387 | 34,663,807 | ||||||
Keurig Dr. Pepper, Inc. | 894,106 | 29,791,612 | ||||||
Molson Coors Beverage Co., Class B | 164,962 | 10,097,324 | ||||||
Monster Beverage Corp.(a) | 660,571 | 38,055,496 | ||||||
PepsiCo, Inc. | 1,221,918 | 207,530,553 | ||||||
|
| |||||||
533,005,935 | ||||||||
Biotechnology — 2.0% | ||||||||
AbbVie, Inc. | 1,566,739 | 242,797,543 | ||||||
Amgen, Inc. | 474,803 | 136,752,760 |
Security | Shares | Value | ||||||
| ||||||||
Biotechnology (continued) | ||||||||
Biogen, Inc.(a) | 127,502 | $ | 32,993,693 | |||||
Gilead Sciences, Inc. | 1,106,021 | 89,598,761 | ||||||
Incyte Corp.(a) | 163,912 | 10,292,035 | ||||||
Moderna, Inc.(a)(b) | 295,905 | 29,427,752 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 94,748 | 83,216,221 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 229,097 | 93,217,278 | ||||||
|
| |||||||
718,296,043 | ||||||||
Broadline Retail — 3.5% | ||||||||
Amazon.com, Inc.(a) | 8,072,325 | 1,226,509,061 | ||||||
eBay, Inc. | 460,695 | 20,095,516 | ||||||
Etsy, Inc.(a) | 109,329 | 8,861,115 | ||||||
|
| |||||||
1,255,465,692 | ||||||||
Building Products — 0.5% | ||||||||
A O Smith Corp. | 112,403 | 9,266,503 | ||||||
Allegion PLC | 78,014 | 9,883,594 | ||||||
Builders FirstSource, Inc.(a) | 109,537 | 18,286,107 | ||||||
Carrier Global Corp. | 744,760 | 42,786,462 | ||||||
Johnson Controls International PLC | 604,964 | 34,870,125 | ||||||
Masco Corp. | 199,903 | 13,389,503 | ||||||
Trane Technologies PLC | 201,336 | 49,105,850 | ||||||
|
| |||||||
177,588,144 | ||||||||
Capital Markets — 3.0% | ||||||||
Ameriprise Financial, Inc. | 89,828 | 34,119,369 | ||||||
Bank of New York Mellon Corp. | 682,675 | 35,533,234 | ||||||
BlackRock, Inc.(c) | 124,576 | 101,130,797 | ||||||
Blackstone, Inc., Class A | 630,008 | 82,480,647 | ||||||
Cboe Global Markets, Inc. | 93,778 | 16,745,000 | ||||||
Charles Schwab Corp. | 1,319,918 | 90,810,358 | ||||||
CME Group, Inc., Class A | 319,328 | 67,250,477 | ||||||
FactSet Research Systems, Inc. | 33,902 | 16,172,949 | ||||||
Franklin Resources, Inc. | 250,718 | 7,468,889 | ||||||
Goldman Sachs Group, Inc. | 289,476 | 111,671,157 | ||||||
Intercontinental Exchange, Inc. | 508,035 | 65,246,935 | ||||||
Invesco Ltd. | 395,466 | 7,055,113 | ||||||
MarketAxess Holdings, Inc. | 32,636 | 9,557,453 | ||||||
Moody’s Corp. | 140,080 | 54,709,645 | ||||||
Morgan Stanley | 1,121,833 | 104,610,927 | ||||||
MSCI, Inc., Class A | 70,309 | 39,770,286 | ||||||
Nasdaq, Inc. | 301,293 | 17,517,175 | ||||||
Northern Trust Corp. | 183,975 | 15,523,810 | ||||||
Raymond James Financial, Inc. | 167,047 | 18,625,740 | ||||||
S&P Global, Inc. | 288,840 | 127,239,797 | ||||||
State Street Corp. | 273,917 | 21,217,611 | ||||||
T Rowe Price Group, Inc. | 199,343 | 21,467,248 | ||||||
|
| |||||||
1,065,924,617 | ||||||||
Chemicals — 1.6% | ||||||||
Air Products and Chemicals, Inc. | 197,190 | 53,990,622 | ||||||
Albemarle Corp. | 105,109 | 15,186,148 | ||||||
Celanese Corp., Class A | 88,774 | 13,792,816 | ||||||
CF Industries Holdings, Inc. | 171,482 | 13,632,819 | ||||||
Corteva, Inc. | 624,444 | 29,923,357 | ||||||
Dow, Inc. | 625,168 | 34,284,213 | ||||||
DuPont de Nemours, Inc. | 381,731 | 29,366,566 | ||||||
Eastman Chemical Co. | 104,899 | 9,422,028 | ||||||
Ecolab, Inc. | 225,470 | 44,721,975 | ||||||
FMC Corp. | 108,860 | 6,863,623 | ||||||
International Flavors & Fragrances, Inc. | 226,856 | 18,368,530 | ||||||
Linde PLC | 430,417 | 176,776,566 | ||||||
LyondellBasell Industries NV, Class A | 227,611 | 21,641,254 |
2 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) December 31, 2023 | S&P 500 Index Master Portfolio (Percentages shown are based on Net Assets) | |
|
Security | Shares | Value | ||||||
| ||||||||
Chemicals (continued) | ||||||||
Mosaic Co. | 294,232 | $ | 10,512,909 | |||||
PPG Industries, Inc. | 209,312 | 31,302,610 | ||||||
Sherwin-Williams Co. | 209,997 | 65,498,064 | ||||||
|
| |||||||
575,284,100 | ||||||||
Commercial Services & Supplies — 0.6% | ||||||||
Cintas Corp. | 76,830 | 46,302,368 | ||||||
Copart, Inc.(a) | 771,913 | 37,823,737 | ||||||
Republic Services, Inc. | 182,738 | 30,135,324 | ||||||
Rollins, Inc. | 249,230 | 10,883,874 | ||||||
Veralto Corp. | 194,675 | 16,013,965 | ||||||
Waste Management, Inc. | 327,190 | 58,599,729 | ||||||
|
| |||||||
199,758,997 | ||||||||
Communications Equipment — 0.8% | ||||||||
Arista Networks, Inc.(a) | 222,638 | 52,433,475 | ||||||
Cisco Systems, Inc. | 3,595,500 | 181,644,660 | ||||||
F5, Inc.(a) | 52,708 | 9,433,678 | ||||||
Juniper Networks, Inc. | 285,609 | 8,419,753 | ||||||
Motorola Solutions, Inc. | 148,287 | 46,427,177 | ||||||
|
| |||||||
298,358,743 | ||||||||
Construction & Engineering — 0.1% | ||||||||
Quanta Services, Inc. | 129,091 | 27,857,838 | ||||||
|
| |||||||
Construction Materials — 0.2% | ||||||||
Martin Marietta Materials, Inc. | 54,916 | 27,398,141 | ||||||
Vulcan Materials Co. | 118,085 | 26,806,476 | ||||||
|
| |||||||
54,204,617 | ||||||||
Consumer Finance — 0.5% | ||||||||
American Express Co. | 511,034 | 95,737,110 | ||||||
Capital One Financial Corp. | 338,745 | 44,416,245 | ||||||
Discover Financial Services | 222,486 | 25,007,426 | ||||||
Synchrony Financial | 371,660 | 14,193,695 | ||||||
|
| |||||||
179,354,476 | ||||||||
Consumer Staples Distribution & Retail — 1.8% | ||||||||
Costco Wholesale Corp. | 393,359 | 259,648,409 | ||||||
Dollar General Corp. | 194,697 | 26,469,057 | ||||||
Dollar Tree, Inc.(a) | 186,074 | 26,431,812 | ||||||
Kroger Co. | 586,865 | 26,825,599 | ||||||
Sysco Corp. | 448,741 | 32,816,429 | ||||||
Target Corp. | 409,905 | 58,378,670 | ||||||
Walgreens Boots Alliance, Inc. | 636,795 | 16,626,717 | ||||||
Walmart, Inc. | 1,266,852 | 199,719,218 | ||||||
|
| |||||||
646,915,911 | ||||||||
Containers & Packaging — 0.2% | ||||||||
Amcor PLC | 1,307,745 | 12,606,662 | ||||||
Avery Dennison Corp. | 71,618 | 14,478,295 | ||||||
Ball Corp. | 280,009 | 16,106,118 | ||||||
International Paper Co. | 307,507 | 11,116,378 | ||||||
Packaging Corp. of America | 79,912 | 13,018,464 | ||||||
Westrock Co. | 227,768 | 9,456,927 | ||||||
|
| |||||||
76,782,844 | ||||||||
Distributors — 0.1% | ||||||||
Genuine Parts Co. | 124,814 | 17,286,739 | ||||||
LKQ Corp. | 238,064 | 11,377,079 | ||||||
Pool Corp. | 34,707 | 13,838,028 | ||||||
|
| |||||||
42,501,846 |
Security | Shares | Value | ||||||
| ||||||||
Diversified Telecommunication Services — 0.7% |
| |||||||
AT&T, Inc. | 6,345,790 | $ | 106,482,356 | |||||
Verizon Communications, Inc. | 3,731,704 | 140,685,241 | ||||||
|
| |||||||
247,167,597 | ||||||||
Electric Utilities — 1.5% | ||||||||
Alliant Energy Corp. | 224,604 | 11,522,185 | ||||||
American Electric Power Co., Inc. | 457,682 | 37,172,932 | ||||||
Constellation Energy Corp. | 285,624 | 33,386,589 | ||||||
Duke Energy Corp. | 684,117 | 66,386,714 | ||||||
Edison International | 340,675 | 24,354,856 | ||||||
Entergy Corp. | 186,928 | 18,915,244 | ||||||
Evergy, Inc. | 204,148 | 10,656,526 | ||||||
Eversource Energy | 310,250 | 19,148,630 | ||||||
Exelon Corp. | 884,475 | 31,752,652 | ||||||
FirstEnergy Corp. | 458,618 | 16,812,936 | ||||||
NextEra Energy, Inc. | 1,796,344 | 109,109,935 | ||||||
NRG Energy, Inc. | 203,628 | 10,527,568 | ||||||
PG&E Corp. | 1,857,648 | 33,493,393 | ||||||
Pinnacle West Capital Corp. | 100,706 | 7,234,719 | ||||||
PPL Corp. | 655,088 | 17,752,885 | ||||||
Southern Co. | 968,021 | 67,877,633 | ||||||
Xcel Energy, Inc. | 490,175 | 30,346,734 | ||||||
|
| |||||||
546,452,131 | ||||||||
Electrical Equipment — 0.6% | ||||||||
AMETEK, Inc. | 205,105 | 33,819,764 | ||||||
Eaton Corp. PLC | 354,171 | 85,291,460 | ||||||
Emerson Electric Co. | 507,583 | 49,403,053 | ||||||
Generac Holdings, Inc.(a) | 56,265 | 7,271,689 | ||||||
Hubbell, Inc. | 47,293 | 15,556,087 | ||||||
Rockwell Automation, Inc. | 102,257 | 31,748,753 | ||||||
|
| |||||||
223,090,806 | ||||||||
Electronic Equipment, Instruments & Components — 0.6% | ||||||||
Amphenol Corp., Class A | 529,575 | 52,496,770 | ||||||
CDW Corp. | 119,139 | 27,082,677 | ||||||
Corning, Inc. | 683,388 | 20,809,165 | ||||||
Jabil, Inc. | 113,572 | 14,469,073 | ||||||
Keysight Technologies, Inc.(a) | 158,740 | 25,253,947 | ||||||
TE Connectivity Ltd. | 276,445 | 38,840,522 | ||||||
Teledyne Technologies, Inc.(a) | 41,838 | 18,671,881 | ||||||
Trimble, Inc.(a) | 220,696 | 11,741,027 | ||||||
Zebra Technologies Corp., Class A(a) | 45,627 | 12,471,228 | ||||||
|
| |||||||
221,836,290 | ||||||||
Energy Equipment & Services — 0.4% | ||||||||
Baker Hughes Co., Class A | 897,461 | 30,675,217 | ||||||
Halliburton Co. | 798,937 | 28,881,573 | ||||||
Schlumberger NV | 1,261,512 | 65,649,084 | ||||||
|
| |||||||
125,205,874 | ||||||||
Entertainment — 1.2% | ||||||||
Electronic Arts, Inc. | 219,103 | 29,975,482 | ||||||
Live Nation Entertainment, Inc.(a)(b) | 126,007 | 11,794,255 | ||||||
Netflix, Inc.(a) | 388,511 | 189,158,236 | ||||||
Take-Two Interactive Software, Inc.(a) | 140,335 | 22,586,918 | ||||||
Walt Disney Co. | 1,624,198 | 146,648,837 | ||||||
Warner Bros Discovery, Inc., Class A(a)(b) | 1,972,734 | 22,449,713 | ||||||
|
| |||||||
422,613,441 | ||||||||
Financial Services — 4.1% | ||||||||
Berkshire Hathaway, Inc., Class B(a) | 1,615,045 | 576,021,950 | ||||||
Fidelity National Information Services, Inc. | 520,598 | 31,272,322 | ||||||
Fiserv, Inc.(a) | 532,761 | 70,771,971 |
MASTER PORTFOLIO SCHEDULE OF INVESTMENTS | 3 |
Schedule of Investments (continued) December 31, 2023 | S&P 500 Index Master Portfolio (Percentages shown are based on Net Assets) | |
|
Security | Shares | Value | ||||||
| ||||||||
Financial Services (continued) | ||||||||
FleetCor Technologies, Inc.(a) | 64,093 | $ | 18,113,323 | |||||
Global Payments, Inc. | 231,070 | 29,345,890 | ||||||
Jack Henry & Associates, Inc. | 64,027 | 10,462,652 | ||||||
Mastercard, Inc., Class A | 735,061 | 313,510,867 | ||||||
PayPal Holdings, Inc.(a) | 957,021 | 58,770,659 | ||||||
Visa, Inc., Class A | 1,414,929 | 368,376,765 | ||||||
|
| |||||||
1,476,646,399 | ||||||||
Food Products — 0.9% | ||||||||
Archer-Daniels-Midland Co. | 476,624 | 34,421,785 | ||||||
Bunge Global SA | 128,966 | 13,019,118 | ||||||
Campbell Soup Co. | 174,853 | 7,558,895 | ||||||
Conagra Brands, Inc. | 424,704 | 12,172,017 | ||||||
General Mills, Inc. | 520,021 | 33,874,168 | ||||||
Hershey Co. | 133,183 | 24,830,638 | ||||||
Hormel Foods Corp. | 255,218 | 8,195,050 | ||||||
J M Smucker Co. | 94,176 | 11,901,963 | ||||||
Kellanova | 229,914 | 12,854,492 | ||||||
Kraft Heinz Co. | 709,622 | 26,241,822 | ||||||
Lamb Weston Holdings, Inc. | 129,112 | 13,955,716 | ||||||
McCormick & Co., Inc. | 223,165 | 15,268,949 | ||||||
Mondelez International, Inc., Class A | 1,207,571 | 87,464,368 | ||||||
Tyson Foods, Inc., Class A | 253,782 | 13,640,782 | ||||||
|
| |||||||
315,399,763 | ||||||||
Gas Utilities — 0.0% | ||||||||
Atmos Energy Corp. | 131,515 | 15,242,588 | ||||||
|
| |||||||
Ground Transportation — 1.1% | ||||||||
CSX Corp. | 1,754,131 | 60,815,722 | ||||||
JB Hunt Transport Services, Inc. | 72,560 | 14,493,134 | ||||||
Norfolk Southern Corp. | 201,767 | 47,693,683 | ||||||
Old Dominion Freight Line, Inc. | 79,699 | 32,304,396 | ||||||
Uber Technologies, Inc.(a) | 1,826,676 | 112,468,441 | ||||||
Union Pacific Corp. | 540,982 | 132,875,999 | ||||||
|
| |||||||
400,651,375 | ||||||||
Health Care Equipment & Supplies — 2.5% | ||||||||
Abbott Laboratories | 1,540,386 | 169,550,287 | ||||||
Align Technology, Inc.(a) | 63,258 | 17,332,692 | ||||||
Baxter International, Inc. | 450,067 | 17,399,590 | ||||||
Becton Dickinson & Co. | 257,514 | 62,789,639 | ||||||
Boston Scientific Corp.(a) | 1,299,713 | 75,136,409 | ||||||
Cooper Cos., Inc.(b) | 44,000 | 16,651,360 | ||||||
DENTSPLY SIRONA, Inc. | 182,492 | 6,494,890 | ||||||
Dexcom, Inc.(a)(b) | 344,389 | 42,735,231 | ||||||
Edwards Lifesciences Corp.(a)(b) | 535,886 | 40,861,308 | ||||||
GE HealthCare, Inc.(a)(b) | 347,213 | 26,846,509 | ||||||
Hologic, Inc.(a) | 217,692 | 15,554,093 | ||||||
IDEXX Laboratories, Inc.(a)(b) | 73,830 | 40,979,341 | ||||||
Insulet Corp.(a)(b) | 62,053 | 13,464,260 | ||||||
Intuitive Surgical, Inc.(a) | 311,879 | 105,215,499 | ||||||
Medtronic PLC | 1,181,597 | 97,339,961 | ||||||
ResMed, Inc. | 130,585 | 22,463,232 | ||||||
STERIS PLC | 87,676 | 19,275,569 | ||||||
Stryker Corp. | 300,027 | 89,846,085 | ||||||
Teleflex, Inc.(b) | 41,424 | 10,328,660 | ||||||
Zimmer Biomet Holdings, Inc. | 185,964 | 22,631,819 | ||||||
|
| |||||||
912,896,434 | ||||||||
Health Care Providers & Services — 2.8% | ||||||||
Cardinal Health, Inc. | 218,780 | 22,053,024 | ||||||
Cencora, Inc. | 146,956 | 30,181,823 | ||||||
Centene Corp.(a) | 474,188 | 35,189,492 |
Security | Shares | Value | ||||||
| ||||||||
Health Care Providers & Services (continued) | ||||||||
Cigna Group | 259,747 | $ | 77,781,239 | |||||
CVS Health Corp. | 1,140,093 | 90,021,743 | ||||||
DaVita, Inc.(a) | 45,877 | 4,806,075 | ||||||
Elevance Health, Inc. | 209,172 | 98,637,148 | ||||||
HCA Healthcare, Inc. | 175,818 | 47,590,416 | ||||||
Henry Schein, Inc.(a)(b) | 115,839 | 8,770,171 | ||||||
Humana, Inc. | 109,986 | 50,352,691 | ||||||
Laboratory Corp. of America Holdings | 75,362 | 17,129,029 | ||||||
McKesson Corp. | 118,114 | 54,684,420 | ||||||
Molina Healthcare, Inc.(a) | 51,814 | 18,720,916 | ||||||
Quest Diagnostics, Inc. | 99,749 | 13,753,392 | ||||||
UnitedHealth Group, Inc. | 821,018 | 432,241,346 | ||||||
Universal Health Services, Inc., Class B | 55,227 | 8,418,804 | ||||||
|
| |||||||
1,010,331,729 | ||||||||
Health Care REITs — 0.2% | ||||||||
Healthpeak Properties, Inc. | 486,194 | 9,626,641 | ||||||
Ventas, Inc. | 357,613 | 17,823,432 | ||||||
Welltower, Inc. | 490,027 | 44,185,735 | ||||||
|
| |||||||
71,635,808 | ||||||||
Hotel & Resort REITs — 0.0% | ||||||||
Host Hotels & Resorts, Inc. | 632,439 | 12,313,587 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.1% | ||||||||
Airbnb, Inc., Class A(a)(b) | 378,622 | 51,545,599 | ||||||
Booking Holdings, Inc.(a) | 30,970 | 109,857,403 | ||||||
Caesars Entertainment, Inc.(a) | 187,957 | 8,811,424 | ||||||
Carnival Corp.(a) | 895,273 | 16,598,361 | ||||||
Chipotle Mexican Grill, Inc.(a) | 24,488 | 56,003,077 | ||||||
Darden Restaurants, Inc. | 107,426 | 17,650,092 | ||||||
Domino’s Pizza, Inc. | 31,190 | 12,857,454 | ||||||
Expedia Group, Inc.(a) | 118,347 | 17,963,891 | ||||||
Hilton Worldwide Holdings, Inc.(b) | 227,631 | 41,449,329 | ||||||
Las Vegas Sands Corp. | 292,143 | 14,376,357 | ||||||
Marriott International, Inc., Class A | 218,986 | 49,383,533 | ||||||
McDonald’s Corp. | 643,856 | 190,909,743 | ||||||
MGM Resorts International | 249,482 | 11,146,856 | ||||||
Norwegian Cruise Line Holdings Ltd.(a)(b) | 369,502 | 7,404,820 | ||||||
Royal Caribbean Cruises Ltd.(a) | 209,200 | 27,089,308 | ||||||
Starbucks Corp. | 1,016,711 | 97,614,423 | ||||||
Wynn Resorts Ltd. | 86,072 | 7,842,020 | ||||||
Yum! Brands, Inc. | 248,981 | 32,531,857 | ||||||
|
| |||||||
771,035,547 | ||||||||
Household Durables — 0.4% | ||||||||
D.R. Horton, Inc. | 267,509 | 40,656,018 | ||||||
Garmin Ltd. | 136,122 | 17,497,122 | ||||||
Lennar Corp., Class A | 221,964 | 33,081,515 | ||||||
Mohawk Industries, Inc.(a) | 47,669 | 4,933,741 | ||||||
NVR, Inc.(a) | 2,822 | 19,755,270 | ||||||
PulteGroup, Inc. | 191,375 | 19,753,727 | ||||||
Whirlpool Corp. | 48,323 | 5,884,292 | ||||||
|
| |||||||
141,561,685 | ||||||||
Household Products — 1.2% | ||||||||
Church & Dwight Co., Inc. | 218,674 | 20,677,813 | ||||||
Clorox Co. | 110,050 | 15,692,030 | ||||||
Colgate-Palmolive Co. | 733,811 | 58,492,075 | ||||||
Kimberly-Clark Corp. | 300,602 | 36,526,149 | ||||||
Procter & Gamble Co. | 2,092,456 | 306,628,502 | ||||||
|
| |||||||
438,016,569 |
4 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) December 31, 2023 | S&P 500 Index Master Portfolio (Percentages shown are based on Net Assets) | |
|
Security | Shares | Value | ||||||
| ||||||||
Independent Power and Renewable Electricity Producers — 0.0% |
| |||||||
AES Corp. | 595,133 | $ | 11,456,310 | |||||
|
| |||||||
Industrial Conglomerates — 0.8% | ||||||||
3M Co. | 490,129 | 53,580,902 | ||||||
General Electric Co. | 966,096 | 123,302,833 | ||||||
Honeywell International, Inc. | 585,190 | 122,720,195 | ||||||
|
| |||||||
299,603,930 | ||||||||
Industrial REITs — 0.3% | ||||||||
Prologis, Inc. | 820,063 | 109,314,398 | ||||||
|
| |||||||
Insurance — 2.0% | ||||||||
Aflac, Inc. | 472,045 | 38,943,713 | ||||||
Allstate Corp. | 232,474 | 32,541,711 | ||||||
American International Group, Inc. | 622,266 | 42,158,522 | ||||||
Aon PLC, Class A | 177,724 | 51,721,238 | ||||||
Arch Capital Group Ltd.(a)(b) | 332,587 | 24,701,236 | ||||||
Arthur J Gallagher & Co. | 191,296 | 43,018,644 | ||||||
Assurant, Inc. | 45,723 | 7,703,868 | ||||||
Brown & Brown, Inc. | 209,211 | 14,876,994 | ||||||
Chubb Ltd. | 364,588 | 82,396,888 | ||||||
Cincinnati Financial Corp. | 139,406 | 14,422,945 | ||||||
Everest Group Ltd. | 38,527 | 13,622,377 | ||||||
Globe Life, Inc. | 77,281 | 9,406,643 | ||||||
Hartford Financial Services Group, Inc. | 266,981 | 21,459,933 | ||||||
Loews Corp. | 164,345 | 11,436,769 | ||||||
Marsh & McLennan Cos., Inc. | 438,457 | 83,074,448 | ||||||
MetLife, Inc. | 551,911 | 36,497,874 | ||||||
Principal Financial Group, Inc. | 197,638 | 15,548,181 | ||||||
Progressive Corp. | 519,570 | 82,757,110 | ||||||
Prudential Financial, Inc. | 319,190 | 33,103,195 | ||||||
Travelers Cos., Inc. | 203,451 | 38,755,381 | ||||||
W.R. Berkley Corp. | 180,810 | 12,786,883 | ||||||
Willis Towers Watson PLC | 91,637 | 22,102,844 | ||||||
|
| |||||||
733,037,397 | ||||||||
Interactive Media & Services(a) — 5.7% | ||||||||
Alphabet, Inc., Class A | 5,253,167 | 733,814,898 | ||||||
Alphabet, Inc., Class C | 4,421,208 | 623,080,843 | ||||||
Match Group, Inc. | 247,150 | 9,020,975 | ||||||
Meta Platforms, Inc., Class A | 1,970,254 | 697,391,106 | ||||||
|
| |||||||
2,063,307,822 | ||||||||
IT Services — 1.2% | ||||||||
Accenture PLC, Class A | 557,106 | 195,494,066 | ||||||
Akamai Technologies, Inc.(a) | 135,090 | 15,987,902 | ||||||
Cognizant Technology Solutions Corp., Class A | 449,145 | 33,923,922 | ||||||
EPAM Systems, Inc.(a) | 51,513 | 15,316,875 | ||||||
Gartner, Inc.(a) | 69,192 | 31,213,203 | ||||||
International Business Machines Corp. | 808,652 | 132,255,035 | ||||||
VeriSign, Inc.(a) | 79,744 | 16,424,074 | ||||||
|
| |||||||
440,615,077 | ||||||||
Leisure Products — 0.0% | ||||||||
Hasbro, Inc. | 115,908 | 5,918,262 | ||||||
|
| |||||||
Life Sciences Tools & Services — 1.4% | ||||||||
Agilent Technologies, Inc. | 259,718 | 36,108,594 | ||||||
Bio-Rad Laboratories, Inc., Class A(a) | 18,560 | 5,992,838 | ||||||
Bio-Techne Corp. | 138,783 | 10,708,496 | ||||||
Charles River Laboratories International, Inc.(a)(b) | 44,912 | 10,617,197 | ||||||
Danaher Corp. | 583,302 | 134,941,085 | ||||||
Illumina, Inc.(a) | 141,756 | 19,738,105 | ||||||
IQVIA Holdings, Inc.(a)(b) | 162,824 | 37,674,217 | ||||||
Mettler-Toledo International, Inc.(a) | 19,453 | 23,595,711 |
Security | Shares | Value | ||||||
| ||||||||
Life Sciences Tools & Services (continued) | ||||||||
Revvity, Inc. | 110,325 | $ | 12,059,626 | |||||
Thermo Fisher Scientific, Inc. | 342,587 | 181,841,754 | ||||||
Waters Corp.(a) | 52,528 | 17,293,793 | ||||||
West Pharmaceutical Services, Inc. | 65,644 | 23,114,565 | ||||||
|
| |||||||
513,685,981 | ||||||||
Machinery — 1.8% | ||||||||
Caterpillar, Inc. | 452,827 | 133,887,359 | ||||||
Cummins, Inc. | 125,990 | 30,183,424 | ||||||
Deere & Co. | 237,751 | 95,069,492 | ||||||
Dover Corp. | 124,313 | 19,120,583 | ||||||
Fortive Corp. | 313,634 | 23,092,871 | ||||||
IDEX Corp. | 67,191 | 14,587,838 | ||||||
Illinois Tool Works, Inc. | 244,258 | 63,980,941 | ||||||
Ingersoll Rand, Inc. | 359,199 | 27,780,451 | ||||||
Nordson Corp. | 48,026 | 12,686,548 | ||||||
Otis Worldwide Corp. | 365,941 | 32,740,741 | ||||||
PACCAR, Inc. | 464,583 | 45,366,530 | ||||||
Parker-Hannifin Corp. | 113,882 | 52,465,437 | ||||||
Pentair PLC | 145,367 | 10,569,635 | ||||||
Snap-on, Inc. | 47,030 | 13,584,145 | ||||||
Stanley Black & Decker, Inc. | 134,025 | 13,147,853 | ||||||
Westinghouse Air Brake Technologies Corp. | 159,202 | 20,202,734 | ||||||
Xylem, Inc./New York | 213,875 | 24,458,745 | ||||||
|
| |||||||
632,925,327 | ||||||||
Media — 0.7% | ||||||||
Charter Communications, Inc., Class A(a)(b) | 89,286 | 34,703,682 | ||||||
Comcast Corp., Class A | 3,564,515 | 156,303,983 | ||||||
Fox Corp., Class A | 225,462 | 6,689,458 | ||||||
Fox Corp., Class B | 113,463 | 3,137,252 | ||||||
Interpublic Group of Cos., Inc. | 342,111 | 11,166,503 | ||||||
News Corp., Class A | 337,277 | 8,280,150 | ||||||
News Corp., Class B | 99,061 | 2,547,849 | ||||||
Omnicom Group, Inc. | 175,591 | 15,190,377 | ||||||
Paramount Global, Class B | 428,569 | 6,338,536 | ||||||
|
| |||||||
244,357,790 | ||||||||
Metals & Mining — 0.4% | ||||||||
Freeport-McMoRan, Inc. | 1,273,524 | 54,213,917 | ||||||
Newmont Corp. | 1,015,489 | 42,031,090 | ||||||
Nucor Corp. | 218,221 | 37,979,183 | ||||||
Steel Dynamics, Inc. | 138,383 | 16,343,032 | ||||||
|
| |||||||
150,567,222 | ||||||||
Multi-Utilities — 0.7% | ||||||||
Ameren Corp. | 231,618 | 16,755,246 | ||||||
CenterPoint Energy, Inc. | 560,965 | 16,026,770 | ||||||
CMS Energy Corp. | 259,272 | 15,055,925 | ||||||
Consolidated Edison, Inc. | 306,551 | 27,886,945 | ||||||
Dominion Energy, Inc. | 743,356 | 34,937,732 | ||||||
DTE Energy Co. | 183,012 | 20,178,903 | ||||||
NiSource, Inc. | 362,317 | 9,619,516 | ||||||
Public Service Enterprise Group, Inc. | 443,585 | 27,125,223 | ||||||
Sempra | 559,226 | 41,790,959 | ||||||
WEC Energy Group, Inc. | 280,526 | 23,611,873 | ||||||
|
| |||||||
232,989,092 | ||||||||
Office REITs — 0.1% | ||||||||
Alexandria Real Estate Equities, Inc. | 138,401 | 17,545,095 | ||||||
Boston Properties, Inc. | 129,325 | 9,074,735 | ||||||
|
| |||||||
26,619,830 | ||||||||
Oil, Gas & Consumable Fuels — 3.5% | ||||||||
APA Corp. | 273,082 | 9,798,182 |
MASTER PORTFOLIO SCHEDULE OF INVESTMENTS | 5 |
Schedule of Investments (continued) December 31, 2023 | S&P 500 Index Master Portfolio (Percentages shown are based on Net Assets) | |
|
Security | Shares | Value | ||||||
| ||||||||
Oil, Gas & Consumable Fuels (continued) | ||||||||
Chevron Corp. | 1,558,380 | $ | 232,447,961 | |||||
ConocoPhillips | 1,054,014 | 122,339,405 | ||||||
Coterra Energy, Inc. | 673,491 | 17,187,490 | ||||||
Devon Energy Corp. | 569,422 | 25,794,817 | ||||||
Diamondback Energy, Inc. | 158,903 | 24,642,677 | ||||||
EOG Resources, Inc. | 516,842 | 62,512,040 | ||||||
EQT Corp. | 321,423 | 12,426,213 | ||||||
Exxon Mobil Corp. | 3,555,675 | 355,496,386 | ||||||
Hess Corp. | 245,738 | 35,425,590 | ||||||
Kinder Morgan, Inc. | 1,722,845 | 30,390,986 | ||||||
Marathon Oil Corp. | 538,304 | 13,005,425 | ||||||
Marathon Petroleum Corp. | 337,041 | 50,003,403 | ||||||
Occidental Petroleum Corp. | 589,900 | 35,222,929 | ||||||
ONEOK, Inc. | 517,730 | 36,355,001 | ||||||
Phillips 66 | 390,531 | 51,995,297 | ||||||
Pioneer Natural Resources Co. | 206,947 | 46,538,241 | ||||||
Targa Resources Corp. | 198,824 | 17,271,841 | ||||||
Valero Energy Corp. | 302,207 | 39,286,910 | ||||||
Williams Cos., Inc. | 1,081,063 | 37,653,424 | ||||||
|
| |||||||
1,255,794,218 | ||||||||
Passenger Airlines — 0.2% | ||||||||
American Airlines Group, Inc.(a) | 580,675 | 7,978,474 | ||||||
Delta Air Lines, Inc. | 572,882 | 23,047,043 | ||||||
Southwest Airlines Co. | 529,370 | 15,288,206 | ||||||
United Airlines Holdings, Inc.(a) | 291,492 | 12,026,960 | ||||||
|
| |||||||
58,340,683 | ||||||||
Personal Care Products — 0.2% | ||||||||
Estee Lauder Cos., Inc., Class A | 206,747 | 30,236,749 | ||||||
Kenvue, Inc. | 1,532,972 | 33,004,887 | ||||||
|
| |||||||
63,241,636 | ||||||||
Pharmaceuticals — 3.7% | ||||||||
Bristol-Myers Squibb Co. | 1,806,171 | 92,674,634 | ||||||
Catalent, Inc.(a) | 159,343 | 7,159,281 | ||||||
Eli Lilly & Co. | 707,817 | 412,600,686 | ||||||
Johnson & Johnson | 2,137,467 | 335,026,577 | ||||||
Merck & Co., Inc. | 2,252,423 | 245,559,155 | ||||||
Pfizer, Inc. | 5,011,620 | 144,284,540 | ||||||
Viatris, Inc. | 1,057,404 | 11,451,685 | ||||||
Zoetis, Inc., Class A | 408,599 | 80,645,185 | ||||||
|
| |||||||
1,329,401,743 | ||||||||
Professional Services — 0.7% | ||||||||
Automatic Data Processing, Inc. | 365,699 | 85,196,896 | ||||||
Broadridge Financial Solutions, Inc. | 104,976 | 21,598,812 | ||||||
Ceridian HCM Holding, Inc.(a) | 136,503 | 9,162,081 | ||||||
Equifax, Inc. | 109,097 | 26,978,597 | ||||||
Jacobs Solutions, Inc. | 111,910 | 14,525,918 | ||||||
Leidos Holdings, Inc. | 122,071 | 13,212,965 | ||||||
Paychex, Inc. | 285,345 | 33,987,443 | ||||||
Paycom Software, Inc. | 43,068 | 8,903,017 | ||||||
Robert Half, Inc. | 94,394 | 8,299,121 | ||||||
Verisk Analytics, Inc. | 128,947 | 30,800,280 | ||||||
|
| |||||||
252,665,130 | ||||||||
Real Estate Management & Development(a)(b) — 0.2% | ||||||||
CBRE Group, Inc., Class A | 270,552 | 25,185,686 | ||||||
CoStar Group, Inc. | 363,087 | 31,730,173 | ||||||
|
| |||||||
56,915,859 | ||||||||
Residential REITs — 0.3% | ||||||||
AvalonBay Communities, Inc. | 126,320 | 23,649,630 | ||||||
Camden Property Trust | 94,755 | 9,408,224 |
Security | Shares | Value | ||||||
| ||||||||
Residential REITs (continued) | ||||||||
Equity Residential | 306,547 | $ | 18,748,415 | |||||
Essex Property Trust, Inc. | 57,043 | 14,143,241 | ||||||
Invitation Homes, Inc. | 511,243 | 17,438,499 | ||||||
Mid-America Apartment Communities, Inc. | 102,852 | 13,829,480 | ||||||
UDR, Inc. | 269,399 | 10,315,288 | ||||||
|
| |||||||
107,532,777 | ||||||||
Retail REITs — 0.3% | ||||||||
Federal Realty Investment Trust | 63,401 | 6,533,473 | ||||||
Kimco Realty Corp. | 545,873 | 11,632,554 | ||||||
Realty Income Corp. | 629,154 | 36,126,023 | ||||||
Regency Centers Corp. | 146,221 | 9,796,807 | ||||||
Simon Property Group, Inc. | 290,591 | 41,449,900 | ||||||
|
| |||||||
105,538,757 | ||||||||
Semiconductors & Semiconductor Equipment — 8.0% | ||||||||
Advanced Micro Devices, Inc.(a) | 1,434,146 | 211,407,462 | ||||||
Analog Devices, Inc. | 445,082 | 88,375,482 | ||||||
Applied Materials, Inc. | 745,399 | 120,806,816 | ||||||
Broadcom, Inc. | 389,321 | 434,579,566 | ||||||
Enphase Energy, Inc.(a) | 121,185 | 16,013,386 | ||||||
First Solar, Inc.(a)(b) | 94,828 | 16,336,968 | ||||||
Intel Corp. | 3,717,466 | 186,802,666 | ||||||
KLA Corp. | 121,359 | 70,545,987 | ||||||
Lam Research Corp. | 116,986 | 91,630,454 | ||||||
Microchip Technology, Inc. | 484,011 | 43,648,112 | ||||||
Micron Technology, Inc. | 972,242 | 82,971,132 | ||||||
Monolithic Power Systems, Inc. | 42,410 | 26,751,380 | ||||||
NVIDIA Corp. | 2,192,489 | 1,085,764,403 | ||||||
NXP Semiconductors NV | 229,016 | 52,600,395 | ||||||
ON Semiconductor Corp.(a)(b) | 380,020 | 31,743,071 | ||||||
Qorvo, Inc.(a) | 87,017 | 9,798,984 | ||||||
QUALCOMM, Inc. | 990,614 | 143,272,503 | ||||||
Skyworks Solutions, Inc. | 141,660 | 15,925,417 | ||||||
Teradyne, Inc.(b) | 136,880 | 14,854,218 | ||||||
Texas Instruments, Inc. | 805,953 | 137,382,748 | ||||||
|
| |||||||
2,881,211,150 | ||||||||
Software — 10.6% | ||||||||
Adobe, Inc.(a) | 404,590 | 241,378,394 | ||||||
ANSYS, Inc.(a) | 77,188 | 28,009,981 | ||||||
Autodesk, Inc.(a) | 189,963 | 46,252,191 | ||||||
Cadence Design Systems, Inc.(a) | 241,254 | 65,710,352 | ||||||
Fair Isaac Corp.(a) | 22,092 | 25,715,309 | ||||||
Fortinet, Inc.(a) | 574,002 | 33,596,337 | ||||||
Gen Digital, Inc. | 500,105 | 11,412,396 | ||||||
Intuit, Inc. | 248,594 | 155,378,708 | ||||||
Microsoft Corp. | 6,595,009 | 2,479,987,184 | ||||||
Oracle Corp. | 1,397,397 | 147,327,566 | ||||||
Palo Alto Networks, Inc.(a) | 271,491 | 80,057,266 | ||||||
PTC, Inc.(a) | 105,482 | 18,455,131 | ||||||
Roper Technologies, Inc. | 94,722 | 51,639,593 | ||||||
Salesforce, Inc.(a) | 864,568 | 227,502,424 | ||||||
ServiceNow, Inc.(a) | 181,080 | 127,931,209 | ||||||
Synopsys, Inc.(a)(b) | 135,064 | 69,545,804 | ||||||
Tyler Technologies, Inc.(a) | 37,092 | 15,508,907 | ||||||
|
| |||||||
3,825,408,752 | ||||||||
Specialized REITs — 1.1% | ||||||||
American Tower Corp. | 413,782 | 89,327,258 | ||||||
Crown Castle, Inc. | 385,376 | 44,391,461 | ||||||
Digital Realty Trust, Inc. | 268,765 | 36,170,394 | ||||||
Equinix, Inc. | 83,053 | 66,890,056 | ||||||
Extra Space Storage, Inc. | 187,845 | 30,117,189 |
6 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) December 31, 2023 | S&P 500 Index Master Portfolio (Percentages shown are based on Net Assets) | |
|
Security | Shares | Value | ||||||
| ||||||||
Specialized REITs (continued) | ||||||||
Iron Mountain, Inc. | 259,383 | $ | 18,151,622 | |||||
Public Storage | 139,435 | 42,527,675 | ||||||
SBA Communications Corp. | 96,325 | 24,436,689 | ||||||
VICI Properties, Inc. | 900,684 | 28,713,806 | ||||||
Weyerhaeuser Co. | 649,675 | 22,589,200 | ||||||
|
| |||||||
403,315,350 | ||||||||
Specialty Retail — 2.0% | ||||||||
AutoZone, Inc.(a)(b) | 15,653 | 40,472,553 | ||||||
Bath & Body Works, Inc. | 198,415 | 8,563,591 | ||||||
Best Buy Co., Inc. | 172,602 | 13,511,285 | ||||||
CarMax, Inc.(a)(b) | 140,609 | 10,790,335 | ||||||
Home Depot, Inc. | 887,718 | 307,638,673 | ||||||
Lowe’s Cos., Inc. | 512,281 | 114,008,137 | ||||||
O’Reilly Automotive, Inc.(a)(b) | 52,516 | 49,894,401 | ||||||
Ross Stores, Inc. | 302,590 | 41,875,430 | ||||||
TJX Cos., Inc. | 1,020,118 | 95,697,270 | ||||||
Tractor Supply Co. | 96,801 | 20,815,119 | ||||||
Ulta Beauty, Inc.(a) | 43,548 | 21,338,084 | ||||||
|
| |||||||
724,604,878 | ||||||||
Technology Hardware, Storage & Peripherals — 7.2% | ||||||||
Apple, Inc. | 12,977,209 | 2,498,502,049 | ||||||
Hewlett Packard Enterprise Co. | 1,149,509 | 19,518,663 | ||||||
HP, Inc. | 770,722 | 23,191,025 | ||||||
NetApp, Inc. | 187,362 | 16,517,834 | ||||||
Seagate Technology Holdings PLC | 170,763 | 14,578,037 | ||||||
Western Digital Corp.(a) | 284,344 | 14,891,095 | ||||||
|
| |||||||
2,587,198,703 | ||||||||
Textiles, Apparel & Luxury Goods — 0.5% | ||||||||
Lululemon Athletica, Inc.(a) | 102,805 | 52,563,169 | ||||||
NIKE, Inc., Class B | 1,087,433 | 118,062,601 | ||||||
Ralph Lauren Corp., Class A | 34,392 | 4,959,326 | ||||||
Tapestry, Inc. | 200,026 | 7,362,957 | ||||||
VF Corp. | 285,714 | 5,371,423 | ||||||
|
| |||||||
188,319,476 | ||||||||
Tobacco — 0.5% | ||||||||
Altria Group, Inc. | 1,575,228 | 63,544,697 | ||||||
Philip Morris International, Inc. | 1,377,935 | 129,636,125 | ||||||
|
| |||||||
193,180,822 | ||||||||
Trading Companies & Distributors — 0.3% | ||||||||
Fastenal Co. | 507,575 | 32,875,633 |
Security | Shares | Value | ||||||
| ||||||||
Trading Companies & Distributors (continued) | ||||||||
United Rentals, Inc. | 60,686 | $ | 34,798,566 | |||||
WW Grainger, Inc. | 39,520 | 32,749,829 | ||||||
|
| |||||||
100,424,028 | ||||||||
Water Utilities — 0.1% | ||||||||
American Water Works Co., Inc. | 173,010 | 22,835,590 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.2% | ||||||||
T-Mobile U.S., Inc. | 451,684 | 72,418,496 | ||||||
|
| |||||||
Total Common Stocks — 98.7% | 35,540,881,039 | |||||||
|
| |||||||
Investment Companies | ||||||||
Equity Funds — 0.6% | ||||||||
iShares Core S&P 500 ETF(c) | 480,032 | 229,277,684 | ||||||
|
| |||||||
Total Investment Companies — 0.6% | 229,277,684 | |||||||
|
| |||||||
Total Long-Term Investments — 99.3% | 35,770,158,723 | |||||||
|
| |||||||
Short-Term Securities | ||||||||
Money Market Funds — 0.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e) | 213,402,184 | 213,530,225 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)(d) | 84,851,864 | 84,851,864 | ||||||
|
| |||||||
Total Short-Term Securities — 0.8% | 298,382,089 | |||||||
Total Investments — 100.1% | 36,068,540,812 | |||||||
Liabilities in Excess of Other Assets — (0.1)% |
| (42,160,164 | ) | |||||
|
| |||||||
Net Assets — 100.0% | $ | 36,026,380,648 | ||||||
|
|
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. |
(c) | Affiliate of the Master Portfolio. |
(d) | Annualized 7-day yield as of period end. |
(e) | All or a portion of this security was purchased with the cash collateral from loaned securities. |
For Master Portfolio compliance purposes, the Master Portfolio’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
MASTER PORTFOLIO SCHEDULE OF INVESTMENTS | 7 |
Schedule of Investments (continued) December 31, 2023 | S&P 500 Index Master Portfolio | |
|
Affiliates
Investments in issuers considered to be affiliate(s) of the Master Portfolio during the year ended December 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| ||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 12/31/22 | Purchases at Cost | Proceeds from Sale | Net Realized | Change in Unrealized Appreciation (Depreciation) | Value at 12/31/23 | Shares Held at 12/31/23 | Income | Capital Gain Distributions from Underlying Funds | |||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | $ | 304,198,748 | $ | — | $ | (90,712,273 | )(a) | $ | 66,303 | $ | (22,553 | ) | $ | 213,530,225 | 213,402,184 | $ | 530,599 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 113,361,188 | — | (28,509,324 | )(a) | — | — | 84,851,864 | 84,851,864 | 5,310,052 | — | ||||||||||||||||||||||||||
BlackRock, Inc. | 97,239,626 | 1,761,199 | (10,597,099 | ) | 545,813 | 12,181,258 | 101,130,797 | 124,576 | 2,689,555 | — | ||||||||||||||||||||||||||
iShares Core S&P 500 ETF | 195,527,543 | 1,919,111,389 | (1,946,438,546 | ) | 30,910,729 | 30,166,569 | 229,277,684 | 480,032 | 4,641,118 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 31,522,845 | $ | 42,325,274 | $ | 628,790,570 | $ | 13,171,324 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Represents net amount purchased (sold). |
(b) | All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| ||||||||||||||||
Description | Number of Contracts | Expiration Date | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
Long Contracts | ||||||||||||||||
S&P 500 E-Mini Index | 1,396 | 03/15/24 | $ | 336,436 | $ | 1,067,064 | ||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Assets — Derivative Financial Instruments |
| |||||||||||||||||||||||||||
Futures contracts | ||||||||||||||||||||||||||||
Unrealized appreciation on futures contracts(a) | $ | — | $ | — | $ | 1,067,064 | $ | — | $ | — | $ | — | $ | 1,067,064 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Master Portfolio Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in net unrealized appreciation (depreciation). |
For the period ended December 31, 2023, the effect of derivative financial instruments in the Statement of Operations was as follows:
| ||||||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Currency Exchange Contracts | Interest Rate Contracts | Other Contracts | Total | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Net Realized Gain (Loss) from: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 19,611,777 | $ | — | $ | — | $ | — | $ | 19,611,777 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||||||||||||||
Futures contracts | $ | — | $ | — | $ | 1,530,752 | $ | — | $ | — | $ | — | $ | 1,530,752 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| ||||
Futures contracts: | ||||
Average notional value of contracts — long | $ | 173,897,184 | ||
|
8 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Schedule of Investments (continued) December 31, 2023 | S&P 500 Index Master Portfolio | |
|
For more information about the Master Portfolio’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Master Portfolio’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Master Portfolio’s financial instruments categorized in the fair value hierarchy. The breakdown of the Master Portfolio’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | $ | 35,540,881,039 | $ | — | $ | — | $ | 35,540,881,039 | ||||||||
Investment Companies | 229,277,684 | — | — | 229,277,684 | ||||||||||||
Short-Term Securities | ||||||||||||||||
Money Market Funds | 298,382,089 | — | — | 298,382,089 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 36,068,540,812 | $ | — | $ | — | $ | 36,068,540,812 | |||||||||
|
| �� |
|
|
|
|
| |||||||||
Derivative Financial Instruments(a) | ||||||||||||||||
Assets | ||||||||||||||||
Equity Contracts | $ | 1,067,064 | $ | — | $ | — | $ | 1,067,064 | ||||||||
|
|
|
|
|
|
|
|
(a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
MASTER PORTFOLIO SCHEDULE OF INVESTMENTS | 9 |
Statement of Assets and Liabilities
December 31, 2023
S&P 500 Index Master Portfolio | ||||
| ||||
ASSETS | ||||
Investments, at value — unaffiliated(a)(b) | $ | 35,439,750,242 | ||
Investments, at value — affiliated(c) | 628,790,570 | |||
Cash | 140,360 | |||
Cash pledged for futures contracts | 4,374,000 | |||
Receivables: | ||||
Investments sold | 248,857,478 | |||
Securities lending income — affiliated | 41,555 | |||
Dividends — unaffiliated | 32,761,336 | |||
Dividends — affiliated | 366,438 | |||
Variation margin on futures contracts | 1,226 | |||
Prepaid expenses | 24,677 | |||
|
| |||
Total assets | 36,355,107,882 | |||
|
| |||
LIABILITIES | ||||
Collateral on securities loaned | 213,354,032 | |||
Payables: | ||||
Investments purchased | 24,848,169 | |||
Withdrawals to investors | 90,070,442 | |||
Investment advisory fees | 292,193 | |||
Trustees’ fees | 66,998 | |||
Professional fees | 95,400 | |||
|
| |||
Total liabilities | 328,727,234 | |||
|
| |||
Commitments and contingent liabilities | ||||
NET ASSETS | $ | 36,026,380,648 | ||
|
| |||
NET ASSETS CONSIST OF | ||||
Investors’ capital | $ | 14,898,621,354 | ||
Net unrealized appreciation (depreciation) | 21,127,759,294 | |||
|
| |||
NET ASSETS | $ | 36,026,380,648 | ||
|
| |||
(a) Investments, at cost — unaffiliated | $ | 14,406,464,693 | ||
(b) Securities loaned, at value | $ | 207,091,995 | ||
(c) Investments, at cost — affiliated | $ | 535,383,889 |
See notes to financial statements.
10 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Statement of Operations
Year Ended December 31, 2023
S&P 500 Index Master Portfolio | ||||
| ||||
INVESTMENT INCOME | ||||
Dividends — unaffiliated | $ | 529,735,702 | ||
Dividends — affiliated | 12,640,725 | |||
Interest — unaffiliated | 301,777 | |||
Securities lending income — affiliated — net | 530,599 | |||
Foreign taxes withheld | (2,678,121 | ) | ||
|
| |||
Total investment income | 540,530,682 | |||
|
| |||
EXPENSES | ||||
Investment advisory | 3,294,787 | |||
Trustees | 258,986 | |||
Professional | 30,000 | |||
|
| |||
Total expenses | 3,583,773 | |||
Less: | ||||
Fees waived and/or reimbursed by the Manager | (389,289 | ) | ||
|
| |||
Total expenses after fees waived and/or reimbursed | 3,194,484 | |||
|
| |||
Net investment income | 537,336,198 | |||
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain from: | ||||
Investments — unaffiliated | 25,896,977 | |||
Investments — affiliated | 31,522,845 | |||
Futures contracts | 19,611,777 | |||
|
| |||
77,031,599 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments — unaffiliated | 7,031,638,258 | |||
Investments — affiliated | 42,325,274 | |||
Futures contracts | 1,530,752 | |||
|
| |||
7,075,494,284 | ||||
|
| |||
Net realized and unrealized gain | 7,152,525,883 | |||
|
| |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 7,689,862,081 | ||
|
|
See notes to financial statements.
MASTER PORTFOLIO FINANCIAL STATEMENTS | 11 |
Statements of Changes in Net Assets
S&P 500 Index Master Portfolio | ||||||||||||
|
| |||||||||||
Year Ended 12/31/23 | Year Ended 12/31/22 | |||||||||||
| ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 537,336,198 | $ | 487,090,874 | ||||||||
Net realized gain (loss) | 77,031,599 | (65,760,923 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 7,075,494,284 | (6,648,362,451 | ) | |||||||||
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 7,689,862,081 | (6,227,032,500 | ) | |||||||||
|
|
|
| |||||||||
CAPITAL TRANSACTIONS | ||||||||||||
Proceeds from contributions | 7,389,545,731 | 8,816,188,759 | ||||||||||
Value of withdrawals | (8,597,872,533 | ) | (7,533,596,462 | ) | ||||||||
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Net increase (decrease) in net assets derived from capital transactions | (1,208,326,802 | ) | 1,282,592,297 | |||||||||
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NET ASSETS | ||||||||||||
Total increase (decrease) in net assets | 6,481,535,279 | (4,944,440,203 | ) | |||||||||
Beginning of year | 29,544,845,369 | 34,489,285,572 | ||||||||||
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End of year | $ | 36,026,380,648 | $ | 29,544,845,369 | ||||||||
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See notes to financial statements.
12 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Financial Highlights
S&P 500 Index Master Portfolio | ||||||||||||||||||||
Year Ended 12/31/23 | Year Ended 12/31/22 | Year Ended 12/31/21 | Year Ended 12/31/20 | Year Ended 12/31/19 | ||||||||||||||||
Total Return | ||||||||||||||||||||
Total return | 26.24 | % | (18.13 | )% | 28.65 | % | 18.42 | % | 31.44 | % | ||||||||||
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Ratios to Average Net Assets(a) | ||||||||||||||||||||
Total expenses | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.03 | % | ||||||||||
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Total expenses after fees waived and/or reimbursed | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | ||||||||||
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Net investment income | 1.63 | % | 1.60 | % | 1.39 | % | 1.82 | % | 1.95 | % | ||||||||||
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Supplemental Data | ||||||||||||||||||||
Net assets, end of year (000) | $ | 36,026,381 | $ | 29,544,845 | $ | 34,489,286 | $ | 26,992,973 | $ | 23,207,958 | ||||||||||
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Portfolio turnover rate | 10 | % | 13 | % | 6 | % | 5 | % | 3 | % | ||||||||||
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(a) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.
See notes to financial statements.
MASTER PORTFOLIO FINANCIAL HIGHLIGHTS | 13 |
Notes to Financial Statements
1. | ORGANIZATION |
Master Investment Portfolio (“MIP”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. MIP is organized as a Delaware statutory trust. S&P 500 Index Master Portfolio (the “Master Portfolio”) is a series of MIP. The Master Portfolio is classified as diversified.
The Master Portfolio, together with certain other registered investment companies advised by BlackRock Fund Advisors (“BFA” or the “Manager”) or its affiliates, is included in a complex of funds referred to as the BlackRock Multi-Asset Complex.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, 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 could differ from those estimates. The Master Portfolio is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Master Portfolio is informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.
Foreign Taxes: The Master Portfolio may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Master Portfolio invests. These foreign taxes, if any, are paid by the Master Portfolio and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of December 31, 2023, if any, are disclosed in the Statement of Assets and Liabilities.
The Master Portfolio files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Master Portfolio may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statement of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Master Portfolio may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
Indemnifications: In the normal course of business, the Master Portfolio enters into contracts that contain a variety of representations that provide general indemnification. The Master Portfolio’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Master Portfolio, which cannot be predicted with any certainty.
Other: Expenses directly related to the Master Portfolio are charged to the Master Portfolio. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: The Master Portfolio’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Master Portfolio is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of MIP (the “Board”) has approved the designation of the Master Portfolio’s Manager as the valuation designee for the Master Portfolio. The Master Portfolio determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
14 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (continued)
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Master Portfolio’s assets and liabilities:
• | Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price. |
• | Exchange-traded funds (“ETFs”) and closed-end funds traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. ETFs and closed-end funds traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price. |
• | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”). |
• | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Master Portfolio uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that the Master Portfolio might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Master Portfolio has the ability to access; |
• | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
• | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. | SECURITIES AND OTHER INVESTMENTS |
Securities Lending: The Master Portfolio may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Master Portfolio collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Master Portfolio is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Master Portfolio and any additional required collateral is delivered to the Master Portfolio, or excess collateral returned by the Master Portfolio, on the next business day. During the term of the loan, the Master Portfolio is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Master Portfolio, except in the event of borrower default. The securities on loan, if any, are disclosed in the Master Portfolio’s Schedule of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statement of Assets and Liabilities as a component of investments at value –unaffiliated and collateral on securities loaned, respectively.
MASTER PORTFOLIO NOTES TO FINANCIAL STATEMENTS | 15 |
Notes to Financial Statements (continued)
Securities lending transactions are entered into by the Master Portfolio under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Master Portfolio, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Master Portfolio can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the Master Portfolio’s securities on loan by counterparty which are subject to offset under an MSLA:
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Securities | Cash Collateral | Non-Cash Collateral | Net | |||||||||||||||||||||||
Counterparty | Loaned at Value |
| Received(a) | Received, at Fair Value | (a) | Amount | ||||||||||||||||||||
| ||||||||||||||||||||||||||
Barclays Bank PLC | $ | 8,572,379 | $ | (8,572,379 | ) | $ | — | $ | — | |||||||||||||||||
Barclays Capital, Inc. | 3,576,591 | (3,576,591 | ) | — | — | |||||||||||||||||||||
BNP Paribas SA | 18,075,603 | (18,075,603 | ) | — | — | |||||||||||||||||||||
BofA Securities, Inc. | 2,597,783 | (2,597,783 | ) | — | — | |||||||||||||||||||||
Citadel Clearing LLC | 1,714,616 | (1,714,616 | ) | — | — | |||||||||||||||||||||
Citigroup Global Markets, Inc. | 1,233,967 | (1,233,967 | ) | — | — | |||||||||||||||||||||
Goldman Sachs & Co. LLC | 7,687,216 | (7,687,216 | ) | — | — | |||||||||||||||||||||
HSBC Bank PLC | 16,336,576 | (16,336,576 | ) | — | — | |||||||||||||||||||||
J.P. Morgan Securities LLC | 16,638,203 | (16,638,203 | ) | — | — | |||||||||||||||||||||
Jefferies LLC |
| 971,168 | (971,168 | ) | — | — | ||||||||||||||||||||
Natixis SA | 343,125 | (343,125 | ) | — | — | |||||||||||||||||||||
RBC Capital Markets LLC | 58,428,446 | (58,428,446 | ) | — | — | |||||||||||||||||||||
Scotia Capital (USA), Inc. | 8,172,718 | (8,172,718 | ) | — | — | |||||||||||||||||||||
Scotia Capital, Inc. | 43,554,257 | (43,554,257 | ) | — | — | |||||||||||||||||||||
SG Americas Securities LLC | 4,970,600 | (4,970,600 | ) | — | — | |||||||||||||||||||||
Toronto-Dominion Bank | 12,646,219 | (12,646,219 | ) | — | — | |||||||||||||||||||||
Virtu Americas LLC | 1,028,356 | (1,028,356 | ) | — | — | |||||||||||||||||||||
Wells Fargo Bank N.A. | 370,446 | (370,446 | ) | — | — | |||||||||||||||||||||
Wells Fargo Securities LLC | 173,726 | (173,726 | ) | — | — | |||||||||||||||||||||
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$ | 207,091,995 | $ | (207,091,995) | $ | — | $ | — | |||||||||||||||||||
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(a) | Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Master Portfolio is disclosed in the Master Portfolio’s Statement of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Master Portfolio benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Master Portfolio could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Master Portfolio.
5. | DERIVATIVE FINANCIAL INSTRUMENTS |
The Master Portfolio engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Master Portfolio and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Master Portfolio and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal
16 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (continued)
to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory: MIP, on behalf of the Master Portfolio, entered into an Investment Advisory Agreement with the Manager, the Master Portfolio’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory services. The Manager is responsible for the management of the Master Portfolio’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Master Portfolio.
For such services, the Master Portfolio pays the Manager a monthly fee at an annual rate equal to 0.01% of the average daily value of the Master Portfolio’s net assets.
Administration: MIP, on behalf of the Master Portfolio, entered into an Administration Agreement with BlackRock Advisors, LLC (“BAL”), which has agreed to provide general administrative services (other than investment advice and related portfolio activities). BAL has agreed to bear all of the Master Portfolio’s ordinary operating expenses, excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Master Portfolio.
BAL is not entitled to compensation for providing administrative services to the Master Portfolio, for so long as BAL (or an affiliate) is entitled to compensation for providing administrative services to corresponding feeder funds that invest substantially all of their assets in the Master Portfolio, or BAL (or an affiliate) receives investment advisory fees from the Master Portfolio.
The fees and expenses of the Master Portfolio’s trustees who are not “interested persons” of MIP, as defined in the 1940 Act (“Independent Trustees”), counsel to the Independent Trustees and the Master Portfolio’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Master Portfolio. BFA has contractually agreed to reimburse the Master Portfolio or provide an offsetting credit against the investment advisory fees paid by the Master Portfolio in an amount equal to the independent expenses through June 30, 2024. If the Master Portfolio does not pay administration fees, BAL agrees to cap the expenses of the Master Portfolio at the rate at which it pays an investment advisory fee to BFA. The amount waived is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2023, the amount waived was $288,986.
Expense Waivers and Reimbursements: The Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Master Portfolio pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2024. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Master Portfolio. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2023, the amounts waived were $74,744.
The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Master Portfolio’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2024. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Master Portfolio. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2023, the Manager waived $25,559 in investment advisory fees pursuant to this arrangement.
Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BTC, an affiliate of the Manager, to serve as securities lending agent for the Master Portfolio, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The Master Portfolio is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by the Manager or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Master Portfolio bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may impose a discretionary liquidity fee of up to 2% of the value redeemed, if such fee is determined to be in the best interests of such money market fund.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Master Portfolio retains a portion of securities lending income and remits a remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Master Portfolio retains 81% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Master Portfolio, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 81% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by the Master Portfolio is shown as securities lending income — affiliated — net in the Statement of Operations. For the year ended December 31, 2023, the Master Portfolio paid BTC $206,514 for securities lending agent services.
MASTER PORTFOLIO NOTES TO FINANCIAL STATEMENTS | 17 |
Notes to Financial Statements (continued)
Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Master Portfolio may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Master Portfolio’s investment policies and restrictions. The Master Portfolio is currently permitted to borrow and lend under the Interfund Lending Program.
A lending BlackRock fund may lend in aggregate up to 15% of its net assets but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.
During the year ended December 31, 2023, the Master Portfolio did not participate in the Interfund Lending Program.
Trustees and Officers: Certain trustees and/or officers of the Master Portfolio are directors and/or officers of BlackRock or its affiliates.
Other Transactions: The Master Portfolio may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended December 31, 2023, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:
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Master Portfolio Name | Purchases | Sales | Net Realized Gain (Loss) | |||||||||
| ||||||||||||
S&P 500 Index Master Portfolio | $ | 317,564,780 | $ | 427,044,084 | $ | (65,670,115 | ) | |||||
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7. | PURCHASES AND SALES |
For the year ended December 31, 2023, purchases and sales of investments, excluding short-term securities, were $3,285,766,364 and $4,093,163,573, respectively.
8. | INCOME TAX INFORMATION |
The Master Portfolio is classified as a partnership for U.S. federal income tax purposes. As such, each investor in the Master Portfolio is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Master Portfolio. Therefore, no U.S. federal income tax provision is required. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.
The Master Portfolio files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Master Portfolio’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on the Master Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Master Portfolio as of December 31, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Master Portfolio’s financial statements.
As of December 31, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
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Master Portfolio Name | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
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S&P 500 Index Master Portfolio | $ | 14,829,138,667 | $ | 22,015,832,274 | $ | (776,430,129) | $ | 21,239,402,145 | ||||||||
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9. | BANK BORROWINGS |
MIP, on behalf of the Master Portfolio, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.50 billion credit agreement with a group of lenders. Under this agreement, the Master Portfolio may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Master Portfolio, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2024 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended December 31, 2023, the Master Portfolio did not borrow under the credit agreement.
18 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Notes to Financial Statements (continued)
10. | PRINCIPAL RISKS |
In the normal course of business, the Master Portfolio invests in securities or other instruments and may enter into certain transactions, and such activities subject the Master Portfolio to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Master Portfolio and its investments. The Master Portfolio’s prospectus provides details of the risks to which the Master Portfolio is subject.
The Manager uses an indexing approach to try to achieve the Master Portfolio’s investment objective. The Master Portfolio is not actively managed, and the Manager generally does not attempt to take defensive positions under any market conditions, including declining markets.
The Master Portfolio may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to discretionary liquidity fees under certain circumstances.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Master Portfolio may invest in illiquid investments. An illiquid investment is any investment that the Master Portfolio reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Master Portfolio may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Master Portfolio’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Master Portfolio may lose value, regardless of the individual results of the securities and other instruments in which the Master Portfolio invests.
Counterparty Credit Risk: The Master Portfolio may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Master Portfolio manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Master Portfolio to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Master Portfolio’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Master Portfolio.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Master Portfolio since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Master Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Master Portfolio.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Master Portfolio’s portfolio are disclosed in its Schedule of Investments.
The Master Portfolio invests a significant portion of its assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Master Portfolio and could affect the income from, or the value or liquidity of, the Master Portfolio’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
The Master Portfolio invests a significant portion of its assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Master Portfolio invests.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
MASTER PORTFOLIO NOTES TO FINANCIAL STATEMENTS | 19 |
Notes to Financial Statements (continued)
11. | SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Master Portfolio through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
20 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of
Master Investment Portfolio and Investors of S&P 500 Index Master Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of S&P 500 Index Master Portfolio (one of the series constituting Master Investment Portfolio, referred to hereafter as the “Master Portfolio”) as of December 31, 2023, the related statement of operations for the year ended December 31, 2023, the statement of changes in net assets for each of the two years in the period ended December 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Master Portfolio as of December 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2023 and the financial highlights for each of the five years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Master Portfolio’s management. Our responsibility is to express an opinion on the Master Portfolio’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Master Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 14, 2024
We have served as the auditor of one or more BlackRock investment companies since 2000.
MASTER PORTFOLIO REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING F IRM | 21 |
Statement Regarding Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), BlackRock Funds III and Master Investment Portfolio (the “Trusts”) have adopted and implemented a liquidity risk management program (the “Program”) for iShares S&P 500 Index Fund and S&P 500 Index Master Portfolio (the “Funds”), each a series of the respective Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.
The Board of Trustees (the “Board”) of the Trusts, on behalf of the Funds, met on November 16-17, 2023 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain BlackRock funds, as the program administrator for each Fund’s Program, as applicable. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2022 through September 30, 2023 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including the imposition of capital controls in certain countries.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:
a) | The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Where a fund participated in borrowings for investment purposes (such as tender option bonds or reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a fund’s liquidity bucketing. A fund’s derivative exposure was also considered in such calculation. |
b) | Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each Fund’s reasonably anticipated trading size utilized for liquidity classifications. Each Fund has adopted an in-kind redemption policy which may be utilized to meet larger redemption requests. The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections. |
c) | Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered the terms of the credit facility committed to each Fund, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple funds (including that a portion of the aggregate commitment amount is specifically designated for BlackRock Floating Rate Income Portfolio, a series of BlackRock Funds V, and BlackRock Floating Rate Loan ETF, a series of BlackRock ETF Trust II). The Committee also considered other types of borrowing available to the funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable. |
There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
22 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Trustee and Officer Information
Independent Trustees(a) | ||||||||
Name Year of Birth(b) | Position(s) Held (Length of Service)(c) | Principal Occupation(s) During Past 5 Years | Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen | Public Company Past 5 Years | ||||
Mark Stalnecker 1951 | Chair of the Board (Since 2019) and Trustee (Since 2015) | Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014. | 28 RICs consisting of 166 Portfolios | None | ||||
Susan J. Carter 1956 | Trustee (Since 2016) | Trustee, Financial Accounting Foundation from 2017 to 2021; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business from 1997 to 2021; Director, Pacific Pension Institute from 2014 to 2018; Senior Advisor, Commonfund Capital, Inc. (“CCI”) (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof from 2018 to 2022; Advisory Board Member, Bridges Fund Management from 2016 to 2018; Practitioner Advisory Board Member, Private Capital Research Institute (“PCRI”) since 2017; Lecturer in the Practice of Management, Yale School of Management since 2019; Advisor to Finance Committee, Altman Foundation since 2020; Investment Committee Member, Tostan since 2021; Member of the President’s Counsel, Commonfund since 2023. | 28 RICs consisting of 166 Portfolios | None | ||||
Collette Chilton 1958 | Trustee (Since 2015) | Senior advisor, Insignia since 2024; Chief Investment Officer, Williams College from 2006 to 2023; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006; Director, Boys and Girls Club of Boston since 2017; Director, B1 Capital since 2018; Director, David and Lucile Packard Foundation since 2020. | 28 RICs consisting of 166 Portfolios | None | ||||
Neil A. Cotty 1954 | Trustee (Since 2016) | Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002. | 28 RICs consisting of 166 Portfolios | None | ||||
Lena G. Goldberg 1949 | Trustee (Since 2019) | Director, Pioneer Public Interest Law Center since 2023; Director, Charles Stark Draper Laboratory, Inc. from 2013 to 2021; Senior Lecturer, Harvard Business School from 2008 to 2021; FMR LLC/Fidelity Investments (financial services) from 1996 to 2008, serving in various senior roles including Executive Vice President - Strategic Corporate Initiatives and Executive Vice President and General Counsel; Partner, Sullivan & Worcester LLP from 1985 to 1996 and Associate thereof from 1979 to 1985. | 28 RICs consisting of 166 Portfolios | None |
TRUSTEE AND OFFICER INFORMATION | 23 |
Trustee and Officer Information (continued)
Independent Trustees(a) (continued) | ||||||||
Name Year of Birth(b) | Position(s) Held (Length of Service)(c) | Principal Occupation(s) During Past 5 Years | Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen | Public Company Past 5 Years | ||||
Henry R. Keizer 1956 | Trustee (Since 2019) | Director, Park Indemnity Ltd. (captive insurer) from 2010 to 2022. | 28 RICs consisting of 166 Portfolios | GrafTech International Ltd. (materials manufacturing); Sealed Air Corp. (packaging); WABCO (commercial vehicle safety systems) from 2015 to 2020; Hertz Global Holdings (car rental) from 2015 to 2021. | ||||
Cynthia A. Montgomery 1952 | Trustee (Since 2009) | Professor, Harvard Business School since 1989. | 28 RICs consisting of 166 Portfolios | None | ||||
Donald C. Opatrny 1952 | Trustee (Since 2019) | Chair of the Board of Phoenix Art Museum since 2022 and Trustee thereof since 2018; Chair of the Investment Committee of The Arizona Community Foundation since 2022 and Trustee thereof since 2020; Director, Athena Capital Advisors LLC (investment management firm) from 2013 to 2020; Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University from 2004 to 2019; Member of Affordable Housing Supply Board of Jackson, Wyoming from 2017 to 2022; Member, Investment Funds Committee, State of Wyoming from 2017 to 2023; Trustee, Artstor (a Mellon Foundation affiliate) from 2010 to 2015; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to 2014; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014. | 28 RICs consisting of 166 Portfolios | None | ||||
Kenneth L. Urish 1951 | Trustee (Since 2009) | Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past- Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001, Emeritus since 2022; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007; Member, Advisory Board, ESG Competent Boards since 2020. | 28 RICs consisting of 166 Portfolios | None | ||||
Claire A. Walton 1957 | Trustee (Since 2016) | Advisory Board Member, Grossman School of Business at the University of Vermont since 2023; Advisory Board Member, Scientific Financial Systems since 2022; General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023; Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Massachusetts Council on Economic Education from 2013 to 2015; Director, Woodstock Ski Runners from 2013 to 2022. | 28 RICs consisting of 166 Portfolios | None |
24 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Trustee and Officer Information (continued)
Interested Trustees(a)(d) | ||||||||
Name Year of Birth(b) | Position(s) Held (Length of Service)(c) | Principal Occupation(s) During Past 5 Years | Number of BlackRock-Advised (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen | Public Company and Other Investment Company Directorships Held During Past 5 Years | ||||
Robert Fairbairn 1965 | Trustee (Since 2018) | Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016. | 97 RICs consisting of 268 Portfolios | None | ||||
John M. Perlowski(e) 1964 | Trustee (Since 2015) President and Chief Executive Officer (Since 2010) | Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009. | 99 RICs consisting of 270 Portfolios | None |
(a) | The address of each Trustee is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
(b) | Independent Trustees serve until their resignation, retirement, removal or death, or until December 31 of the year in which they turn 75. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate. |
(c) | In connection with the acquisition of Barclays Global Investors by BlackRock, Inc. in December 2009, certain Independent Trustees were elected to the Board. Furthermore, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Trustee joined the Board, certain Independent Trustees first became members of the boards of other BlackRock-advised Funds or legacy BlackRock funds as follows: Cynthia A. Montgomery, 1994; Kenneth L. Urish, 1999; Lena G. Goldberg, 2016; Henry R. Keizer, 2016; Donald C. Opatrny, 2015. |
(d) | Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust/MIP based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex. |
(e) | Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund and BlackRock Private Investments Fund. |
Officers Who Are Not Trustees(a) | ||||
Name Year of Birth(b) | Position(s) Held (Length of Service) | Principal Occupation(s) During Past 5 Years | ||
Roland Villacorta 1971 | Vice President (Since 2022) | Managing Director of BlackRock, Inc. since 2022; Head of Global Cash Management and Head of Securities Lending within BlackRock’s Portfolio Management Group since 2022; Member of BlackRock’s Global Operating Committee since 2022; Head of Portfolio Management in BlackRock’s Financial Markets Advisory Group within BlackRock Solutions from 2008 to 2015; Co-Head of BlackRock Solutions’ Portfolio Analytics Group; previously Mr. Villacorta was Co-Head of Fixed Income within BlackRock’s Risk & Quantitative Analysis Group. | ||
Jennifer McGovern 1977 | Vice President (Since 2014) | Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Americas Product Development and Governance for BlackRock’s Global Product Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019. | ||
Trent Walker 1974 | Chief Financial Officer (Since 2021) | Managing Director of BlackRock, Inc. since September 2019; Executive Vice President of PIMCO from 2016 to 2019; Senior Vice President of PIMCO from 2008 to 2015; Treasurer from 2013 to 2019 and Assistant Treasurer from 2007 to 2017 of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds. | ||
Jay M. Fife 1970 | Treasurer (Since 2009) | Managing Director of BlackRock, Inc. since 2007. | ||
Aaron Wasserman 1974 | Chief Compliance Officer (Since 2023) | Managing Director of BlackRock, Inc. since 2018; Chief Compliance Officer of the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the iShares Complex since 2023; Deputy Chief Compliance Officer for the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the iShares Complex from 2014 to 2023. | ||
Lisa Belle 1968 | Anti-Money Laundering Compliance Officer (Since 2019) | Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012. |
TRUSTEE AND OFFICER INFORMATION | 25 |
Trustee and Officer Information (continued)
Officers Who Are Not Trustees(a) (continued) | ||||
Name Year of Birth(b) | Position(s) Held (Length of Service) | Principal Occupation(s) During Past 5 Years | ||
Janey Ahn 1975 | Secretary (Since 2019) | Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017. |
(a) | The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
(b) | Officers of the Trust/MIP serve at the pleasure of the Board. |
Further information about Trust’s/MIP’s Trustees and Officers is available in the Trust’s/MIP’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.
Effective July 1, 2023, Aaron Wasserman replaced Charles Park as Chief Compliance Officer of the Trust/MIP.
26 | 2 0 2 3 BLACK ROCK ANNUAL REPORT TO SHAREHOLDERS |
Glossary of Terms Used in this Report
Portfolio Abbreviation | ||
ETF | Exchange-Traded Fund | |
MSCI | Morgan Stanley Capital International | |
S&P | Standard & Poor’s |
GLOSSARY OF TERMS USED IN THIS REPORT | 27 |
Item 2. Code of Ethics.
Homestead Funds Trust has adopted a Senior Officer Code of Ethics, as defined in Item 2 of Form N-CSR, which applies to its principal executive officer, principal financial officer, principal accounting or controller, or persons performing similar functions. The Senior Officer Code of Ethics is available on Homestead Funds Trust's website at www.homesteadfunds.com or without charge, upon request, by calling the Chief Compliance Officer at 1-800-258-3030. During the period covered by this report, no substantive amendments were approved or waivers were granted to the Senior Officer Code of Ethics.
Item 3. Audit Committee Financial Expert.
The Registrant's board of directors has determined that Julie H. Dellinger, member of the Registrant's audit committee, qualifies as an audit committee financial expert, as such term is defined in Instruction 2(b) to Item 3 of Form N-CSR. Ms. Dellinger is "independent" as such term is defined in paragraph (a)(2) of Item 3 of Form N-CSR.
Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including, without limitation, for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations or liability of any other member of the audit committee or Board of Trustees.
Item 4. Principal Accountant Fees and Services. |
| |||
(a) | Audit Fees1 |
| ||
|
|
|
|
|
|
| Fiscal Year 2022 |
| $18,438 |
|
| Fiscal Year 2023 |
| $19,620 |
(b) | Audit-Related Fees |
| ||
|
|
|
| |
|
| Fiscal Year 2022 |
| $0 |
|
| Fiscal Year 2023 |
| $0 |
1These fees were for professional services rendered for the audits of the financial statements of the Intermediate Bond Fund and the Rural America Growth & Income Fund, including services that are normally provided in connection with the Funds' statutory and regulatory filings.
(c)Tax Fees
|
| Fiscal Year 2022 | $0 |
|
| Fiscal Year 2023 | $0 |
(d) | All Other Fees |
| |
|
|
|
|
|
| Fiscal Year 2022 | $0 |
|
| Fiscal Year 2023 | $0 |
(e)(1) The Registrant's audit committee is directly responsible for approving the services to be provided by the principal accountant.
(2)None of the services provided to the Registrant described in paragraphs (b)-(d) of Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f)Not applicable
(g)The National Rural Electric Cooperative Association paid the Funds' principal accountant $0 and $2,994 in 2023 and 2022, respectively, for consulting services. The National Rural Electric Cooperative Association is the parent company, hence a controlling entity of Homestead Advisers Corp., the investment adviser that provided ongoing services to Homestead Funds Trust for each of its last two fiscal years.
(h)Homestead Funds Trust's Audit Committee considered the provision of non-audit services, which were not approved by the Audit Committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, that the principal accountant rendered to the National Rural Electric Cooperative Association, a controlling entity of Homestead Advisers Corp., the investment adviser that provided ongoing services to Homestead Funds Trust for each of its last two fiscal years. The Audit Committee determined that these services were compatible with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a)The Registrant's schedule of investments in unaffiliated issuers is included in the report to shareholders under Item 1 of this Form N-CSR.
(b)Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a)Disclosure Controls and Procedures. The Registrant's principal executive officer and principal financial officer concluded, based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are effectively designed to provide reasonable assurance that the information required to be disclosed by the Registrant in this report is recorded, processed, summarized and reported by the filing date, including the Registrant's principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
(b)Internal Control. There were no changes in the Registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities For Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Not required with this filing.
(a)(3) Not applicable.
(a)(4) Not applicable.
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.
HOMESTEAD FUNDS TRUST |
|
By: | /s/ Mark D. Santero |
| Mark D. Santero |
| President, Chief Executive Officer and Trustee |
| (Principal Executive Officer) |
Date: March 7, 2024 |
|
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/ Mark D. Santero |
| Mark D. Santero |
| President, Chief Executive Officer and Trustee |
| (Principal Executive Officer) |
Date: March 7, 2024 |
|
By: | /s/ Amy M. DiMauro |
| Amy M. DiMauro |
| Treasurer (Principal Financial & Accounting |
| Officer) |
Date: March 7, 2024 |
|