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 | 811-4279 | |||||||
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Securian Funds Trust | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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400 Robert Street North St. Paul, Minnesota |
| 55101-2098 | ||||||
(Address of principal executive offices) |
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Eric J. Bentley, Esq. 400 Robert Street North St. Paul, Minnesota 55101-2098 | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | (651) 665-3500 |
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Date of fiscal year end: | December 31 |
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Date of reporting period: | December 31, 2013 |
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ITEM 1. REPORT TO STOCKHOLDERS.
Filed herewith.
Securian Funds Trust
Annual Report
December 31, 2013
Offered in Minnesota Life Insurance Company and
Securian Life Insurance Company Variable Products
Advantus Bond Fund
Advantus Index 400 Mid-Cap Fund
Advantus Index 500 Fund
Advantus International Bond Fund
Advantus Managed Volatility Fund
Advantus Money Market Fund
Advantus Mortgage Securities Fund
Advantus Real Estate Securities Fund
Financial security
for the long run ®
Securian Funds Trust
Supplement dated January 2, 2014 to the Prospectus of Securian Funds Trust dated May 1, 2013
The text on page 37, under the caption "Advantus Real Estate Securities Fund: Management," is replaced by the following:
Advantus Real Estate Securities Fund: Management
The Advantus Real Estate Securities Fund is advised by Advantus Capital Management, Inc. (Advantus Capital). The following individuals serve as the Fund's primary portfolio managers:
Name and Title | Primary Manager Since | ||||||
Matthew K. Richmond Vice President and Portfolio Manager, Real Estate Securities Advantus Capital | January 2, 2014 | ||||||
Lowell R. Bolken Vice President and Portfolio Manager, Advantus Capital | January 13, 2006 |
The text relating to Advantus Real Estate Securities Fund on page 71, under the caption "Portfolio Managers," is replaced by the following:
Portfolio Managers
Fund | Portfolio Manager and Title | Primary Portfolio Manager Since | Business Experience During Past Five Years | ||||||||||||
Advantus Real Estate Securities | Matthew K. Richmond Vice President and Portfolio Manager, Real Estate Securities Advantus Capital | January 2, 2014 | Vice President and Portfolio Manager, Real Estate Securities, Advantus Capital, since December 2013; Portfolio Manager, Principal Real Estate Investors, 2008 to December 2013 | ||||||||||||
Lowell R. Bolken Vice President and Portfolio Manager, Advantus Capital | January 13, 2006 | Associate Portfolio Manager September 2005 to March 2012, Vice President and Portfolio Manager since March 2012, Advantus Capital |
Please retain this supplement for future reference.
F80485 1-2014
TABLE OF CONTENTS
Page No. | |||||||
Letter from the President | 1 | ||||||
Portfolio Manager Reviews | |||||||
Advantus Bond Fund | 2 | ||||||
Advantus Index 400 Mid-Cap Fund | 6 | ||||||
Advantus Index 500 Fund | 8 | ||||||
Advantus International Bond Fund | 10 | ||||||
Advantus Managed Volatility Fund | 14 | ||||||
Advantus Money Market Fund | 17 | ||||||
Advantus Mortgage Securities Fund | 19 | ||||||
Advantus Real Estate Securities Fund | 23 | ||||||
Report of Independent Registered Public Accounting Firm | 26 | ||||||
Investments In Securities | |||||||
Advantus Bond Fund | 27 | ||||||
Advantus Index 400 Mid-Cap Fund | 33 | ||||||
Advantus Index 500 Fund | 39 | ||||||
Advantus International Bond Fund | 46 | ||||||
Advantus Managed Volatility Fund | 56 | ||||||
Advantus Money Market Fund | 59 | ||||||
Advantus Mortgage Securities Fund | 61 | ||||||
Advantus Real Estate Securities Fund | 65 | ||||||
Financial Statements | |||||||
Statements of Assets and Liabilities | 68 | ||||||
Statements of Operations | 70 | ||||||
Statements of Changes in Net Assets | 72 | ||||||
Financial Highlights | 76 | ||||||
Notes to Financial Statements | 84 | ||||||
Fund Expense Examples | 99 | ||||||
Proxy Voting and Quarterly Holdings Information | 100 | ||||||
Trustees and Executive Officers | 102 |
(This page has been left blank intentionally.)
Letter from the President
Rising expectations of economic growth were the story behind the strong equity market performance and modestly rising rates that marked 2013.
Economic growth remained low, but was better than the two percent level realized in both 2011 and 2012. We believe that growth appears to be inching back towards a more normal range of three percent.
Business sentiment rose throughout the year, bringing increases in durable goods orders, greater optimism about future orders and increased business investment. Housing also emerged as a bright spot. Despite a second-quarter slow down brought on by rising mortgage rates, housing starts continued to rise and were up over 50 percent from the lows of 2009. Employment also picked up, and by year end the unemployment rate fell below seven percent, as the U.S. experienced relatively steady job growth.
Low U.S. inflation continues to be a blessing for consumers, and provides a boost for risky assets such as stocks. While some increase in inflation is to be expected, slow wage growth along with rising domestic energy production is likely to keep a lid on price increases.
The U.S. Federal Reserve (the "Fed") in December ratcheted down its monthly purchases of U.S. Treasuries and mortgage securities by $10 billion. The scale of the move was small, but the shift in outlook it represents could be significant. After launching its most aggressive of four quantitative easing programs last year, the Fed has started scaling back as the U.S. economy picks up.
Stocks turned in a solid fourth quarter to end an exceptionally strong year. The Standard & Poor's 500 Index ended up 32.4 percent for 2013, finishing at a record high. The market's sustained rally began with increases in income-oriented stocks, but finished with growth stocks leading the way, which may be a reflection of an improved mood and brighter outlook.
In the fixed income market, companies took advantage of high investor demand and low rates to issue a record volume of corporate bonds. Due to rising interest rates, many bond sectors now offer real investment value when compared to inflation. The difference between ten-year US Treasury bond yields and inflation is now solidly positive, which was not true a year ago.
Commercial real estate continues to see improvements in occupancy across most property types. Operating income in apartments, self-storage units, multifamily housing and hotels is strong. Other than multifamily housing, there is little new construction in any commercial real estate sector, which should improve prospects for rent growth.
We expect 2014 to show better economic growth, and steady improvement in employment. With the Fed's monetary policy entering a transition phase, we anticipate that interest rates will make a modest upward move. The Fed remains committed to keeping short-term rates low, which makes a significant rate increase less likely. In this modestly rising rate environment, we expect corporate bonds to outperform Treasuries.
The stock market could experience further increases if individual investors decide to return to the equity market. While past performance is not an indicator of future results, the positive flows retail mutual funds experienced in 2013 could increase if retail investors return to the market, as they have in past long-term stock rallies.
Sincerely,
David Kuplic
President, Securian Funds Trust
1
Performance Update
Christopher Sebald, CFA, David Land, CFA and Thomas Houghton, CFA Portfolio Managers
The Advantus Bond Fund seeks as high a level of long-term total return as is consistent with prudent investment risk. Preservation of capital is a secondary objective. The Advantus Bond Fund invests in long-term, fixed income, high quality debt instruments. The risks incurred by investing in debt instruments include, but are not limited to, reinvestment of prepaid debt obligations at lower rates of return, and the inability to reinvest at higher interest rates when debt obligations are prepaid more slowly than expected. In addition, the net asset value of the Advantus Bond Fund may fluctuate in response to changes in interest rates and is not guaranteed.
Advantus Bond Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of -0.65 percent over the 12 months ending December 31, 2013, outperforming the Barclays U.S. Aggregate Bond Index, which returned -2.02 percent over the same period.
What influenced the Fund's return during the past 12 months?
For the U.S. economy, 2013 was about inching back to normal, and in other Western economies it was about stabilization. The U.S. economy shook off a fairly slow start. It built momentum throughout the year even in the face of lower fiscal stimulus, rising interest rates, a government shutdown and fears of a possible U.S. default.
The Fed caught the market by surprise in May when it signaled the possibility of tapering its current quantitative easing program. Interest rates rose dramatically, from an early May low of 1.6 percent to as high as 2.6 percent, settling at 2.5 percent by quarter end. This set the tone for the remainder of the year as the debate raged over when the Fed would taper. The market was somewhat surprised again in September when the Fed dampened expectations for an early tapering decision by expressing concerns about the economy's ability to withstand higher interest rates. The10-year Treasury fell from a near-term high of 3 percent and finished the third quarter at 2.6 percent. In December, when the Fed finally announced it would taper its purchases of Treasuries and mortgage-backed securities, the market reaction was mild, as continued economic momentum made the decision fairly inevitable.
The rise in Treasury yields resulted in negative 2013 total returns for many bond market participants, especially those invested in government or government-related bonds. Excess returns for corporate bonds and other non-government sectors were strong, offsetting some of the negative impact of rising rates. Stock returns were very strong as risk assets responded positively to economic momentum.
What other market conditions or events influenced the Fund's return during the past 12 months?
The year began with the Fed essentially "all in" on easy monetary policy. The Fed was in the middle of its latest quantitative easing program, buying $85 billion per month of Treasuries and residential mortgage-backed securities (RMBS). It also had pledged to keep the Fed funds rate low until the unemployment rate fell to 6.5 percent. Despite a fairly muted economic picture, risk assets performed strongly to start the year in a "don't-fight-the-Fed" environment. Once the Fed openly questioned its commitment to unending asset purchases, markets tanked. Treasury rates shot up, stocks dropped over 5 percent, and spread sectors underperformed. As mortgage rates shot up, and housing indicators fell over the summer, the Fed had to put off a reduction in its bond-buying program.
Economic momentum began to show signs of sustained strength late in the third quarter and throughout the fourth quarter. The U.S. government and investment markets successfully navigated a government shutdown and threat of a debt default. As business sentiment indicators and the employment picture improved late in the year, the Fed needed to announce a slowing in its bond buying program. Simultaneously, the Fed strengthened its commitment to keep the funds rate low until "well after" the unemployment rate fell through 6.5 percent. This gave the market what it needed. Stocks and other risk assets finished the year with very strong momentum.
2
What strategies and techniques did you employ that specifically affected Fund performance?
Based on our expectation for continued strong support from monetary authorities, continued low interest rates and economic growth that was "inching back to normal," we increased exposure to non-government bonds early in the year, particularly in corporate bonds and commercial mortgage-backed securities (CMBS). We also reduced exposure to mortgage-backed securities (MBS), due to tight valuations. We reduced our exposure to corporates slightly during the third quarter on concerns over the impact of higher interest rates and another possible looming U.S. government budgetary showdown. Throughout the year, we kept the interest rate position roughly neutral-to-short relative to the index.
What industries or sectors did you emphasize during the last 12 months and what is your outlook going forward?
Much like in 2012, we emphasized corporate bonds and CMBS. In the corporate sector, we placed even more emphasis on sectors that worked for us in 2012 such as financials and transportation bonds. In financials, we increased exposure to banks, as the sector continues to benefit from lower balance sheet leverage and lower business risk. In utilities, we maintained our overweight in pipelines, which we believe should continue to benefit over the next several years from U.S. shale-driven infrastructure demand.
In the industrial sector, we took profits in consumer cyclicals and non-cyclicals. We rotated into the communications sector and increased transportation bonds, particularly those issued by airlines. We continue to see value in airline debt secured by airplane collateral. This industry appears to finally be benefiting from years of cost rationalization and capacity management. In the structured finance sector, we slightly reduced exposure to CMBS and started adding Agency MBS towards the end of the year.
We expect growth to strengthen in 2014 thanks to improvements in housing, business, employment and the waning of fiscal restraint that weighed heavily on the economy in 2013.
While we anticipate interest rates will rise slightly in 2014, we do not expect the yield on the 10-year Treasury to increase significantly over the GDP growth rate.
We believe the Fed will continue to pull back from quantitative easing as the economy improves. The Fed, however, will strengthen its commitment to providing forward guidance on short-term rates. During a recent press conference, Bernanke stated that the unemployment rate must drop significantly below 6.5 percent before the Fed will consider an increase in short-term rates. We think that this forward guidance significantly influences long-term interest rates and will prevent rates from rising significantly.
Interest rates are now higher than inflation, creating some value in fixed-income securities. Among nongovernment bonds, however, nothing is cheap. Corporate spreads have narrowed so much that further improvement could only occur if spreads tighten materially below long-term averages.
While all nongovernment sectors performed well, interest-sensitive sectors of the fixed income market varied the widest in performance. CMBS was a relative underperformer, as the rising cost of funds will likely begin to hurt commercial real estate economics. On the other hand, financials, including banks, did particularly well. The rise in housing values improves their balance sheets, and rising interest rates have the prospect of improving their net interest margins.
3
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
U.S. Treasury Note 1.250%, 11/30/18 | $ | 19,743,134 | 5.6 | % | |||||||
U.S. Treasury Note 0.625%, 09/30/17 | 8,768,906 | 2.5 | % | ||||||||
U.S. Treasury Note 2.750%, 11/15/23 | 7,097,429 | 2.0 | % | ||||||||
U.S. Treasury Bond 5.375%, 02/15/31 | 6,268,274 | 1.8 | % | ||||||||
U.S. Treasury Bond 3.625%, 08/15/43 | 5,996,781 | 1.7 | % | ||||||||
U.S. Treasury Note 0.875%, 09/15/16 | 5,029,690 | 1.4 | % | ||||||||
Federal National Mortgage Association 3.500%, 01/01/44 | 4,768,125 | 1.3 | % | ||||||||
Federal National Mortgage Association 3.000%, 01/01/29 | 4,260,620 | 1.2 | % | ||||||||
BNSF Funding Trust I 6.613%, 12/15/55 | 4,149,306 | 1.2 | % | ||||||||
Federal National Mortgage Association 3.500%, 11/01/41 | 4,041,245 | 1.1 | % | ||||||||
$ | 70,123,510 | 19.8 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of net assets)
(Unaudited)
4
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in Advantus Bond Fund,
Barclay's U.S. Aggregate Bond Index**, and Consumer Price Index
On the chart above you can see how the Advantus Bond Fund's Class 2 shares total return compared to the Barclays U.S. Aggregate Bond Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2003 through December 31, 2013, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
**The Barclays U.S. Aggregate Bond Index is an unmanaged benchmark composite representing average market-weighted performance of U.S. Treasury and agency securities, investment-grade corporate bonds and mortgage-backed securities with maturities greater than one year.
5
Performance Update
James Seifert Portfolio Manager
The Advantus Index 400 Mid-Cap Fund seeks to provide investment results generally corresponding to the aggregate price and dividend performance of publicly traded common stocks that comprise the Standard & Poor's MidCap 400 Index (S&P 400)+. It is designed to provide an economical and convenient means of maintaining a diversified portfolio in this equity security area as part of an over-all investment strategy. The risks incurred by investing in the Advantus Index 400 Mid-Cap Fund include, but are not limited to, the risk that the Fund may not be able to replicate the performance of the S&P 400, and the risk of declines in the market for mid-cap stocks or in the equity markets generally.
Advantus Index 400 Mid-Cap Fund
How did the Fund perform during the period?
For the twelve month period ending December 31, 2013, the Fund's Class 2 shares returned 32.78 percent on a net basis. For the same period, the Standard & Poor's MidCap 400 Index was up 33.50 percent.
What influenced the Fund's return during the past 12 months?
The Fund is passively managed and is fully invested and holds all 400 names at published free-float adjusted index weights. The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P MidCap 400 Index.
All sectors posted positive annual returns. Consumer names, durable and non-durables led all sectors with 12-month returns of 50.9 and 48.3 percent. The largest sector, materials and services, representing 26.6 percent of the index, ended the period up 29.5 percent. In terms of size, all of the decile segments (decile—40 names per segment) ended the period with returns above 25 percent. Decile one, the largest cap names within the S&P MidCap 400 Index, representing a 21.5 percent weight, ended the period with a return of 31.9 percent.
What other market conditions or events influenced the Fund's performance during the period?
The S&P MidCap 400 Index ended the year at a record high of 1,342.53. Optimism was the primary driver of the market's surge, as corporate earnings growth grew only modestly. The market's sustained rally began with increases in income-oriented stocks, but finished with growth stocks leading the way, a reflection of an improved mood and brighter outlook.
The market also benefited from the evaporation of uncertainty. The European sovereign debt crisis, Hurricane Sandy, political gridlock and other events that sapped confidence in 2012 were toned down or muted in 2013.
What will affect the Fund going forward?
We will likely see modest economic growth in 2014, and continuing improvement in jobs. The Fed's monetary policy has entered a transition phase, which will lead to a modest upward move in interest rates. The Fed remains committed to keeping short-term rates low, making a steep rate increase unlikely.
The S&P MidCap 400 Index could experience further positive returns if individual investors decide to return to the equity market. Individual investors historically have chased performance. With an annual return of 33.50 percent, 2013 was a year that can spur that type of behavior.
6
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Affiliated Managers Group, Inc. | 7,647 | $ | 1,658,481 | 0.7 | % | ||||||||||
Tractor Supply Co. | 20,171 | 1,564,866 | 0.7 | % | |||||||||||
Green Mountain Coffee Roasters, Inc. | 18,951 | 1,432,317 | 0.6 | % | |||||||||||
LKQ Corp. | 43,441 | 1,429,209 | 0.6 | % | |||||||||||
HollyFrontier Corp. | 28,715 | 1,426,848 | 0.6 | % | |||||||||||
Henry Schein, Inc. | 12,407 | 1,417,624 | 0.6 | % | |||||||||||
Polaris Industries, Inc. | 9,286 | 1,352,413 | 0.6 | % | |||||||||||
Church & Dwight Co., Inc. | 20,064 | 1,329,842 | 0.6 | % | |||||||||||
Cimarex Energy Co. | 12,550 | 1,316,620 | 0.6 | % | |||||||||||
Trimble Navigation, Ltd. | 37,259 | 1,292,887 | 0.6 | % | |||||||||||
$ | 14,221,107 | 6.2 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in Advantus Index 400 Mid-Cap Fund,
S&P MidCap 400® Index** and Consumer Price Index
On the chart above you can see how the Advantus Index 400 Mid-Cap Fund's Class 2 shares total return compared to the S&P MidCap 400 Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2003 through December 31, 2013, assuming reinvestment of distributions, if any.
+ "Standard & Poor's®", "S&P®", "Standard & Poor's MidCap 400" and "S&P MidCap 400" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed for use by the Securian Funds Trust—Advantus Index 400 Mid-Cap Fund. The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
**S&P MidCap 400 Index consists of 400 domestic stocks chosen for market size (median market capitalization of about $3.7 billion), liquidity and industry group representation. It is a market-weighted index (stock price times shares outstanding), with each stock affecting the index in proportion to its market value.
7
Performance Update
James Seifert Portfolio Manager
The Advantus Index 500 Fund seeks investment results that correspond generally to the price and yield performance of the common stocks included in the Standard and Poor's Corporation 500 Composite Stock Index (S&P 500)+. It is designed to provide an economical and convenient means of maintaining a broad position in the equity market as part of an overall investment strategy. The risks incurred by investing in the Advantus Index 500 Fund include, but are not limited to, the risk that the Fund may not be able to replicate the performance of the S&P 500, and the risk of declines in the equity markets generally.
Advantus Index 500 Fund
How did the Fund perform during the period?
For the twelve month period ending December 31, 2013, the Fund's Class 2 shares returned 31.71 percent on a net basis. For the same period, the Standard & Poor's 500 Index was up 32.39 percent.
What influenced the Fund's return during the past 12 months?
The Fund is passively managed and is fully invested and holds all 500 names at published float adjusted index weights. The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500 Index.
All sectors posted positive annual returns. The transportation sector ended the year with the strongest return, 43.7 percent. Capital goods names followed with a 42.9 percent return. In terms of size, decile one (decile segments consist of 50 names) consists of the mega-cap names and represents a 47 percent weight in the index. It ended the year with a return of 28.5 percent. Decile ten, representing the 50 smallest market cap names in the index with a 1.4 percent weight, ended the year with the top annual return of 43.1 percent gain.
What other market conditions or events influenced the Fund's performance during the period?
The S&P 500 Index ended the year at a record high of 1,837.36. Optimism was the primary driver of the market's surge, as corporate earnings growth grew only modestly. The market's sustained rally began with increases in income-oriented stocks, but finished with growth stocks leading the way, a reflection of an improved mood and brighter outlook.
The market also benefited from the evaporation of uncertainty. The European sovereign debt crisis, Hurricane Sandy, political gridlock and other events that sapped confidence in 2012 were toned down or muted in 2013.
What will affect the Fund going forward?
We will likely see modest economic growth in 2014, and continuing improvement in jobs. The Fed's monetary policy has entered a transition phase, which will lead to a modest upward move in interest rates. The Fed remains committed to keeping short-term rates low, making a steep rate increase unlikely.
The S&P 500 Index could experience further positive returns if individual investors decide to return to the equity market. Individual investors historically have chased performance. With an annual return of 32.39 percent, 2013 was a year that can spur that type of behavior.
8
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Apple, Inc. | 30,681 | $ | 17,215,416 | 3.1 | % | ||||||||||
Exxon Mobil Corp. | 148,965 | 15,075,258 | 2.7 | % | |||||||||||
Google, Inc. | 9,596 | 10,754,333 | 1.9 | % | |||||||||||
Microsoft Corp. | 259,042 | 9,695,942 | 1.7 | % | |||||||||||
General Electric Co. | 344,998 | 9,670,294 | 1.7 | % | |||||||||||
Johnson & Johnson | 96,210 | 8,811,874 | 1.6 | % | |||||||||||
Chevron Corp. | 65,580 | 8,191,598 | 1.5 | % | |||||||||||
The Procter & Gamble Co. | 92,690 | 7,545,893 | 1.3 | % | |||||||||||
JPMorgan Chase & Co. | 128,186 | 7,496,320 | 1.3 | % | |||||||||||
Wells Fargo & Co. | 163,456 | 7,420,903 | 1.3 | % | |||||||||||
$ | 101,877,831 | 18.1 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in Advantus Index 500 Fund,
S&P 500® Index**, and Consumer Price Index
On the chart above you can see how the Advantus Index 500 Fund's Class 2 shares total return compared to the S&P 500 Index (as adjusted for dividend reinvestment) and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2003 through December 31, 2013, assuming reinvestment of distributions, if any.
+ "Standard & Poor's®", "S&P®", "Standard & Poor's 500" and "S&P 500" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed for use by Securian Funds Trust—Advantus Index 500 Fund. The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
**The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall.
9
Performance Update
Michael Hastenstab, Ph.D. and Canyon Chan Portfolio Managers Franklin Advisers, Inc.
The Advantus International Bond Fund seeks to maximize current income consistent with protection of principal. The Fund pursues its objective by investing primarily in debt securities issued by issuers located anywhere in the world. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, Franklin Advisers, Inc. provided investment advice to the Advantus International Bond Fund under a sub-advisory agreement. Investment risks associated with international investing in addition to other risks include currency fluctuations, political and economic instability, and differences in accounting standards when investing in foreign markets.
Advantus International Bond Fund
How did the Fund perform during the last 12 months?
The Fund's Class 2 shares generated a net return of -0.08 percent for the year ended December 31, 2013, outperforming the Citigroup World Government Bond Index, which returned -4.00 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Fund outperformed its benchmark in 2013 primarily due to currency positions, followed by interest-rate strategies and sovereign credit exposures. The Fund's large underweighted exposure to the Japanese yen contributed significantly to relative results. The Fund's overweighted currency exposures in Asia ex-Japan and Latin America detracted from results. The Fund maintained a defensive approach regarding interest rates in developed and emerging markets. Select duration exposures in Europe also contributed to relative performance.
What other market conditions or events influenced the Fund's return during the last 12 months?
Global financial market volatility increased toward the beginning of the fourth quarter as the U.S. federal government partially shut down and the U.S. Treasury approached its debt ceiling. As the government shutdown ended, and the debt ceiling was raised, market volatility quickly subsided.
The Fed announced toward the end of December that it would reduce the size of its monthly bond-buying program from $85 billion to $75 billion. Fears that Fed tapering of its bond purchases could create a shortage of global liquidity continued to affect some emerging-market countries. Broad-based fears appeared overstated to us. Many of these countries have accumulated enormous liquidity cushions in the form of international reserves, and most have avoided significant borrowing of short-term or foreign currency-denominated debt. We believe that individual country fundamentals will increasingly become a key determinant of market performance as policymakers in a handful of emerging-market countries have been less responsive and allowed vulnerabilities to build up.
Global liquidity conditions remained very loose, in our view, as there were no signs pointing to tighter monetary policy from the Bank of Japan or the European Central Bank (ECB). During the fourth quarter, the ECB cut rates an additional 25 basis points (bps) to 0.25 percent. While the Fed did announce that it would reduce the size of its quantitative easing program, we would continue to characterize U.S. monetary policy as very loose. Traditional fixed income investors continued to be challenged by a rising interest-rate environment as 10-year U.S. Treasury yields increased 47 bps during the quarter.
What strategies and techniques did you employ that affected the Fund's performance?
Our overall duration positioning remained quite defensive, but we maintained exposures to a select number of countries where we believe declining risk premiums may push yields lower.
We have continued to find what we view as value in many developed- and emerging-market currencies based on strong growth and interest-rate differentials.
We continued to favor select opportunities in emerging markets, with a focus on economies that appear to us to have strong growth prospects.
10
What sectors did you emphasize during the fiscal year, and what is your outlook for the next 12 months?
We continue to emphasize investments in select developed and emerging countries with relatively strong underlying fundamentals and low levels of indebtedness. Policymakers and central bank actions have continued to be the main drivers of market volatility in recent months. This trend has been persistent over the last few years, and we continue to reiterate that it is essential for investors to understand and differentiate between declines related to market noise and those caused by fundamental developments.
In our view, the recent rise in interest rates is likely to be more long term in nature, and we believe that as the global economic recovery continues in tandem with the announced tapering of the quantitative easing program in the U.S., the macroeconomic environment will remain supportive of higher interest rates. Conversely, we feel that the recent weakness in some emerging-market currencies has been triggered by short-term panic selling regardless of underlying fundamentals. In recent years, emerging markets have experienced relatively broad-based bullish and bearish trends, tending to move in unity. However, we feel that emerging markets are likely to be more bifurcated moving forward, thus requiring the evaluation of opportunities on a country-by-country basis.
We have continued to seek to position ourselves to manage the interest-rate risks that we expect from the combination of historically low interest rates and easy monetary policy among the largest developed economies, rising price pressures emanating from China, and global demand that we believe is far from collapsing. Thus, as of year-end, we have generally maintained an extremely short duration, while seeking to take advantage of what we deem as the relative attractiveness of currencies and sovereign credit exposures of countries with fundamentals likely to support medium-term growth.
11
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
Korea Monetary Stabilization Bond (KRW)—2.900%, 12/02/15 | $ | 6,349,100 | 6.4 | % | |||||||
Ireland Government Bond (EUR)—5.400%, 03/13/25 | 4,214,157 | 4.3 | % | ||||||||
Ireland Government Bond (EUR)—5.000%, 10/18/20 | 4,206,657 | 4.2 | % | ||||||||
Korea Treasury Bond (KRW)—3.500%, 06/10/14 | 3,890,752 | 3.9 | % | ||||||||
Poland Government Bond (PLN)—5.750%, 04/25/14 | 3,281,546 | 3.3 | % | ||||||||
Mexican Bonos (MXN)—8.000%, 12/17/15 | 3,131,294 | 3.2 | % | ||||||||
Russian Foreign Bond (USD)—7.500%, 03/31/30 | 2,965,900 | 3.0 | % | ||||||||
Sweden Government Bond (SEK)—6.750%, 05/05/14 | 2,476,384 | 2.5 | % | ||||||||
Ukraine Government International Bond (USD)—7.500%, 04/17/23 | 2,328,300 | 2.4 | % | ||||||||
Brazil Notas do Tesouro Nacional Serie B (BRL)—6.000%, 05/15/15 | 2,169,179 | 2.2 | % | ||||||||
$ | 35,013,269 | 35.4 | % |
^Excludes short-term investments.
Country Diversification (shown as a percentage of net assets)
Currency Diversification (shown as a percentage of net assets)
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Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in Advantus International Bond Fund,
Citigroup World Government Bond Index**, and Consumer Price Index
On the chart above you can see how the Advantus International Bond Fund's Class 2 shares total return compared to the Citigroup World Government Bond Index, and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2003 through December 31, 2013, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
**The Citigroup World Government Bond Index is a market capitalization weighted index consisting of the government bond markets from twenty-three countries. Country eligibility is determined based upon market capitalization and investability criteria. The index includes all fixed-rate bonds with a remaining maturity of one year or longer and with amounts outstanding of at least the equivalent of U.S. $25 million. Government securities typically exclude floating or variable rate bonds, U.S./Canadian savings bonds and private placements. Each bond must have a minimum rating of BBB-/Baa3 by S&P or Moody's.
13
Performance Update
David M. Kuplic, CFA and Craig M. Stapleton, CFA, FRM Portfolio Managers
The Advantus Managed Volatility Fund seeks to maximize risk-adjusted total return relative to its blended benchmark index comprised of 60% S&P 500 Index and 40% Barclays U.S. Corporate Index (collectively, the Benchmark Index).
The Advantus Managed Volatility Fund invests primarily in Class 1 shares of Advantus Index 500 Fund for equity exposure, in a basket of fixed income securities for fixed income exposure and certain derivative instruments. The Fund is subject to risks associated with such investments as described in detail in the prospectus. The net asset value of the Fund will fluctuate and is not guaranteed. It is possible to lose money by investing in the Fund. There is no assurance that efforts to manage Fund volatility will achieve the desired results.
Advantus Managed Volatility Fund
How did the Fund perform since inception?
The Fund's shares generated a total net return of 7.31 percent over the eight months ending December 31, 2013. Its blended benchmark index, comprised of 60 percent of the S&P 500 Index and 40 percent of the Barclays U.S. Corporate Index, returned 8.80 percent over the same period. The S&P 500 Index and the Barclays U.S. Corporate Index returned 17.43 percent and 3.20 percent, respectively, for the same period.
What influenced the Fund's return since inception?
The 10-year U.S. Treasury yield rose from 1.67 percent on April 30 to 3.03 percent at the close of 2013. The strong movement upward in interest rates was precipitated by the Fed's indication that it would consider "tapering" its bond-buying quantitative easing program. The reduction in quantitative easing reduces support for the fixed income market. The market's reaction proved to be a strong headwind for fixed income returns, and caused the Barclays U.S. Corporate Index to decline by 3.20 percent over the same period. Weak returns on the fixed income portfolio were counteracted by a strong upward movement in the U.S. equity markets, with the S&P 500 Index rising 17.43 percent.
What other market conditions or events influenced the Fund's return since inception?
The volatility of the equity market remained low over the time period, with the S&P 500's volatility at 10.9 percent. The Fund's primary strategy is to capture strong equity returns that usually accompany periods of low market volatility, while avoiding the negative equity returns that usually accompany periods of high market volatility. Since the equity market remained docile, the Fund's equity weighting averaged 71.8 percent, allowing the Fund to capture much of the S&P 500's strong return.
What strategies and techniques did you employ that specifically affected Fund performance?
Based on our view that interest rates would modestly rise over the period, the Fund maintained a defensive position regarding interest rates. The Fund held a modest underweight in corporate bonds relative to the Barclays U.S. Corporate Index, with a 37 percent average weighting over the period. In addition, the Fund maintained a slightly shorter duration than the Barclays U.S. Corporate Index. These two factors allowed the Fund to avoid some of the negative fixed income returns experienced over the period.
What industries or sectors did you emphasize during the period and what is your outlook going forward?
In the fixed income portfolio, we held a slightly higher weight in the utility sector than the Barclays U.S. Corporate Index, while having a slightly lower weight in financial institutions. In the utility sector, we increased our exposure to pipelines, which we believe will benefit from the infrastructure demands resulting from recent tapping of large energy reserves.
The S&P 500 Index options market indicates that equity volatility is expected to remain below historical averages through 2014. If volatility remains low, the Fund will continue to hold an overweight to equities through its investment in the S&P 500 Index. Additionally, we believe that economic growth will strengthen through next year and provide stability for positive equity market performance.
We believe the Fed will continue to reduce its quantitative easing program through next year. We expect that this action will continue to put upward pressure on interest rates until they achieve a more "normal" level. A Fed move to quickly reduce the program could cause instability in the markets that would increase volatility, leading the Fund to reduce its equity allocation. We believe that this outcome has a low probability, and think the Fed will error on the side of caution in order to keep the economic recovery on track.
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Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
U.S. Treasury Note 0.125%, 04/30/15 | $ | 998,828 | 5.4 | % | |||||||
U.S. Treasury Note 0.625%, 04/30/18 | 964,375 | 5.2 | % | ||||||||
Caterpillar Financial Services Corp. 3.750%, 11/24/23 | 740,470 | 4.0 | % | ||||||||
The Western Union Co. 3.350%, 05/22/19 | 499,105 | 2.7 | % | ||||||||
Rockwell Collins, Inc. 3.700%, 12/15/23 | 493,607 | 2.7 | % | ||||||||
Mylan, Inc. 4.200%, 11/29/23 | 491,796 | 2.6 | % | ||||||||
Norfolk Southern Corp. 3.850%, 01/15/24 | 491,129 | 2.6 | % | ||||||||
CubeSmart L.P. 4.375%, 12/15/23 | 488,524 | 2.6 | % | ||||||||
Tanger Properties L.P. 3.875%, 12/01/23 | 481,968 | 2.6 | % | ||||||||
The Coca-Cola Co. 3.200%, 11/01/23 | 480,911 | 2.6 | % | ||||||||
$ | 6,130,713 | 33.0 | % |
^Does not include short-term investments or investments in affiliates.
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of net assets)
(Unaudited)
†"Standard & Poor's®", "S&P®", "S&P 500®", "Standard & Poor's 500", and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by the Securian Funds Trust-Advantus Index 500 Fund. The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower. The Advantus Managed Volatility Fund commenced operations on May 1, 2013.
**Advantus Capital and the Trust, on behalf of the Advantus Managed Volatility Fund (the "Fund"), have entered into an Expense Limitation Agreement, dated May 1, 2013, which limits the operating expenses of the Fund, excluding certain expenses (such as interest expense, acquired fund fees, cash overdraft fees, taxes, brokerage commissions, other expenditures
15
which are capitalized in accordance with the generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Fund's business), to 0.80% of the Fund's average daily net assets through April 30, 2015. The Agreement renews annually for a full year each year thereafter unless terminated by Advantus Capital upon at least 30 days' notice prior to the end of a contract term. The Fund is authorized to reimburse Advantus Capital for management fees previously waived and/or for the cost of expenses previously paid by Advantus Capital pursuant to this agreement, provided that such reimbursement will not cause the Fund to exceed any limits in effect at the time of such reimbursement. The Fund's ability to reimburse Advantus Capital in this manner only applies to fees waived or reimbursements made by Advantus Capital within the three fiscal years prior to the date of such reimbursement. As of December 31, 2013 Advantus Capital has waived $130,867 pursuant to the agreement. To the extent that the Fund makes such reimbursements to Advantus Capital, the amount of the reimbursements will be reflected in the financial statements in the Fund's shareholder reports and in Other Expenses under Fees and Expenses of the Fund.
+The Blended Benchmark Index is comprised of 60 percent of the S&P 500 Index and 40 percent of the Barclays U.S. Corporate Index.
The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall. The Barclays U.S. Corporate Index is an unmanaged benchmark composite representing the average market-weighted performance of fixed rate, investment grade corporate bonds issued by both U.S. and non-U.S. corporations in U.S. dollars with maturities greater than one year.
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in Advantus Managed Volatility Fund,
the Blended+, S&P 500 Index and Barclays U.S. Corporate Index Benchmarks,
and Consumer Price Index
On the chart above you can see how the Advantus Managed Volatility Fund's shares total return compared to its Blended Benchmark, comprised of 60 percent of the S&P 500 Index and 40 percent of the Barclays U.S. Corporate Index, and the Consumer Price Index. The five lines represent the total return of a hypothetical $10,000 investment made on May 1, 2013 through December 31, 2013, assuming reinvestment of distributions, if any.
16
Performance Update
Thomas Houghton, CFA Portfolio Manager
The Advantus Money Market Fund seeks maximum current income to the extent consistent with liquidity and the preservation of capital. It invests in short-term money market instruments and other debt securities that mature within 397 days.
Investment in the Advantus Money Market Fund is neither insured nor guaranteed by the U.S. Government, and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. It is possible to lose money by investing in the Fund.
Advantus Money Market Fund
How did the Fund perform during the period?
The Fund returned 0.00 percent* on a net basis during 2013, while the three-month U.S. Treasury bill returned 0.08 percent over the same period.
What influenced the Fund's return during the past 12 months?
The return on the Fund for the year was 0.13 percent before expenses, higher than the return of the three-month U.S. Treasury bill, but not enough to compensate for the Fund management expenses.
What other market conditions or events influenced the Fund's performance during the period?
The Fed continued to hold its federal funds rate in a target range of 0.00 to 0.25 percent, the same range as in the past five years. This anchored all other money market rates throughout the year. Yields on 90-day U.S. Treasury bills remained under 0.10 percent, sometimes yielding just above 0.00 percent. Yields on 90-day commercial paper remained near zero, generally ranging from 0.05 percent to 0.15 percent. Agency discount notes generally yielded less than 0.05 percent. Yields on most short-dated floating rate corporate securities and short asset-backed securities continued to fall. Yields on short-dated asset-backed securities dropped from about 0.30 percent to less than 0.25 percent at the end of the year.
What strategies and techniques did you employ that specifically affected Fund performance?
The Fund's performance continues to be driven by its strategy of investing in high-quality U.S. corporate commercial paper (rated at least A-1 by Standard & Poor's and at least P-1 by Moody's). This remains a sound alternative for investors seeking a high degree of safety and liquidity. Commercial paper, however, currently offers little yield above government agency discount notes and U.S. Treasury bills of similar maturities. We continue to obtain additional yield by increasing investments in short-dated asset-backed securities (ABS). However, those yields have dropped as well and generally offer only about 0.10 to 0.15 percent over high-quality commercial paper.
What industries or sectors did you emphasize during the fiscal year, and what is your outlook for the next 12 months?
We invested primarily in high quality U.S. corporate commercial paper (rated A-1 or higher by Standard & Poor's and P-1 or higher by Moody's) and high quality, short-dated ABS. We also invested in short-term discount notes issued primarily by government sponsored agencies Fannie Mae and Freddie Mac. Also, the portfolio benefited from its holdings in longer-dated fixed and floating-rate securities issued by high-quality firms.
In December, the Fed stated that it would keep its target for the federal funds rate near zero until the employment rate declines well below 6.5 percent, especially if projected inflation remains below the Fed's 2 percent goal. This approach will likely keep money-market rates near zero well into 2015. Given this outlook, it is likely that rates earned on securities held in the Fund will continue to remain near zero as well.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Investment in the Advantus Money Market Fund is neither insured nor guaranteed by the U.S. Government or any other agency, and there can be no assurance that the Fund will be able to maintain a stable net asset value of
17
$1.00 per share. Shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
Effective May 1, 2012, the Board of Trustees of Securian Funds Trust approved a Restated Net Investment Income Maintenance Agreement among Securian Funds Trust (on behalf of Advantus Money Market Fund), Advantus Capital Management, Inc. (Advantus Capital) and Securian Financial Services, Inc. (Securian Financial). A similar agreement was previously approved by the Board of Directors of Advantus Series Fund, Inc., the Trust's predecessor, effective October 29, 2009. Under such Agreement, Advantus Capital agrees to waive, reimburse or pay Money Market Fund expenses so that the Fund's daily net investment income does not fall below zero. Securian Financial may also waive its Rule 12b-1 fees. Advantus Capital and Securian Financial each has the option under the Agreement to recover the full amount waived, reimbursed or paid (the "Expense Waiver") on any day on which the Fund's net investment income exceeds zero. On any day, however, the Expense Waiver does not constitute an obligation of the Fund unless Advantus Capital or Securian Financial has expressly exercised its right to recover a specified portion of the Expense Waiver on that day, in which case such specified portion is then due and payable by the Fund. In addition, the right of Advantus Capital and/or Securian Financial to recover the Expense Waiver is subject to the following limitations: (1) if a repayment of the Expense Waiver by the Fund would cause the Fund's net investment income to fall below zero, such repayment is deferred until a date when repayment would not cause the Fund's net investment income to fall below zero; (2) the right to recover any portion of the Expense Waiver expires three years after the effective date of that portion of the Expense Waiver; and (3) any repayment of the Expense Waiver by the Fund cannot cause the Fund's expense ratio to exceed 1.25%. As of December 31, 2013, Advantus Capital and Securian Financial have collectively waived $2,815,279 pursuant to the Agreement, including expenses waived under the prior agreement with Advantus Series Fund, Inc. If Advantus Capital and Securian Financial exercise their rights to be paid such waived amounts, the Fund's future yield will be negatively affected for an indefinite period. The Agreement shall continue in effect following May 1, 2015, provided such continuance is specifically approved by Advantus Capital, Securian Financial, and a majority of the Trust's independent Trustees.
18
Performance Update
Christopher Sebald, CFA and David Land, CFA Portfolio Managers
The Advantus Mortgage Securities Fund seeks a high level of current income consistent with prudent investment risk. The Advantus Mortgage Securities Fund will invest primarily in mortgage-related securities. The risks incurred by investing in mortgage-related securities include, but are not limited to, reinvestment of prepaid loans at low rates of return, and the inability to reinvest at higher interest rates when mortgages are prepaid more slowly than expected. In addition, the net asset value of the Advantus Mortgage Securities Fund may fluctuate in response to changes in interest rates and is not guaranteed.
Advantus Mortgage Securities Fund
How did the Fund perform during the past 12 months?
The Fund's Class 2 shares generated a net return of -1.98 percent over the 12 months ended December 31, 2013, underperforming the Barclays U.S. Mortgage-Backed Securities Index which returned -1.41 percent over the same period.
What influenced the Fund's return during the past 12 months?
The economy was front and center in 2013. The year began with uncertainty over whether it would break-out of a subpar recovery and ended with greater optimism about economic growth. The Fed's bond buying program, known as quantitative easing, received some credit for the economic rebound. With interest rates already very low, the Fed, in an effort to stimulate the economy, decided to buy U.S. Treasuries and agency mortgages. The year ended with better than anticipated growth and the Fed began to exit its quantitative easing program.
The focus at the beginning of year was on "fiscal drag" arising from tax increases, sequester spending cuts and contentious budget battles. However, rising home prices, a strong equity market and an improving job market buoyed consumers. The U.S. bond market began to key on improving economic data, particularly on better employment numbers.
The Fed is focusing on the labor market and on inflation, hoping unemployment reaches 6.5 percent and inflation stays at 2 percent. Until then, the Fed will keep short-term rates low. The employment outlook improved throughout the year with unemployment falling to 7.0 percent in November. The economy also generated nearly 200,000 new jobs per month. The improving labor market allowed the Fed to announce a reduction in its asset purchase program. Instead of removing the punch bowl, they replaced it with a smaller one by reducing the bond-buying program from $85 billion per month to $75 billion.
The improved economy, and a less accommodative Fed, pushed interest rates up. The rise in interest rates drove down bond prices and adversely impacted our performance. The Fed's bond buying program did, however, drive agency mortgage spreads tighter, which was a positive for the Fund. Our CMBS positions were aided by higher commercial real estate prices. Spreads, however, were sluggish, and lower quality bonds performed the best.
What other market conditions or events influenced the Fund's return during the past 12 months?
Higher interest rates affected homeowners looking to refinance their mortgages, lowering their economic incentive. Slower prepayments had several consequences. First, the duration of the Fund's benchmark nearly doubled over the year, moving from around three years to more than five years. The duration of the Fund closely followed the benchmark and was extended throughout the year. A decline in mortgage prepayments in our portfolio was the second consequence. We try to select agency mortgage pools that have better prepayment characteristics than generic pools. We paid a premium price for these pools, and they performed in line with our expectations. Higher mortgage rates, however, lead to a slowdown in prepayment for almost all agency mortgage bonds. Some of our mortgages pools lost some of their relative allure, and the price premium for those mortgage pools fell.
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What strategies and technique did you employ that specifically affected Fund performance?
The Fund's core strategy remains consistent. We invest the majority of the portfolio in agency MBS, and then diversify into ABS, CMBS, and to a lesser extent, agency and non-agency CMOs. CMBS and ABS provide the portfolio with more stable cash flows than agency mortgages, which are subject to homeowner prepayments.
Tactically, we traded between and within the sectors (MBS, ABS, and CMBS). For example, in ABS we sold shorter duration bonds and bought longer duration bonds to maximize any spread tightening. We tactically traded CMBS. Spreads in the CMBS market ebbed and flowed with the new issue calendar, and we tried to take advantage of this. A wave of new deals tended to push spreads wider, only to have those spreads retrace their journey several weeks later.
The duration of the portfolio, a measure of interest sensitivity, closely mirrored the benchmark throughout the year. The yield curve is steep and bonds will benefit as they move down the yield curve. We anticipate the yield curve will stay steep for some time; consequently, we favored bonds with intermediate maturities.
What industries or sectors did you emphasize during the last 12 months and what is your outlook going forward?
The Fed's bond buying program provided support to the U.S. mortgage market. Because we wanted to invest alongside the Fed, we invested the largest part of the Fund in agency MBS. We also found value in other sectors. Longer dated ABS looked cheap. While ABS have long been a staple of the Fund, we've typically preferred shorter maturities. This year we found attractive opportunities in longer dated ABS, notably in longer dated utility bonds and credit cards.
We found value in some new sectors. These included Real Estate Investment Trust (REIT) bonds, callable agency debentures, and a new type of Fannie Mae bond. REIT debt provided a way to enhance our exposure to commercial real estate by investing in well run companies with promising prospects. Callable agency debentures were a cheap proxy for the mortgage market. We purchased these bonds at a steep discount, and they looked attractive versus lower coupon mortgages. Finally and notably, we participated in Fannie Mae's risk transfer transaction, where investors assumed a portion of the default risk on a very large pool of mortgages. We felt the default risk on the pool of mortgages was low, based on strict underwriting standards, and the credit enhancement was more than adequate. The underlying borrowers had high credit scores and low loan-to-value ratios.
Next year will be a year of transition. At the Fed, Janet Yellen will replace Ben Bernake. Yellen is unlikely to dramatically alter Fed policy. However, 2014 will see a reduction in, and likely an end to, quantitative easing. This is likely to create some volatility in interest rates and mortgage spreads, which the Fund will endeavor to navigate through. Our allocation to agency mortgage pools may move around more than typically throughout the year in an effort to capitalize on the volatility.
A new director, Mel Watt, will head the Federal Housing Finance Agency (FHFA), the Fannie Mae and Freddie Mac regulator. He may make mortgage credit easier to obtain, and homeowners are likely to face lower administrative hurdles to refinancing their mortgages. Consequently, absent a significant rise in mortgage rates, the portfolio may see increased prepayments.
The housing market is facing a transitional period. Home price appreciation is unlikely to match last year's double digit increase. We believe that in 2014 home price appreciation will vary by region. While home price growth may slow, we expect national
20
housing activity to remain strong. During the recession, family formation fell below historical averages. An improved labor market will help family formation return to its historical average. This means increased housing starts and a more vibrant housing market.
Consumers should continue to do well in 2014 and we anticipate no issues in consumer ABS. Commercial real estate prices should be stable or rising next year, but the market isn't monolithic. There will be differences based on property type and region. Both CMBS and ABS should be stout performers next year.
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*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
**The Barclays U.S. Mortgage-Backed Securities Index is an unmanaged benchmark composite which includes all fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA).
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of net assets)
(Unaudited)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in Advantus Mortgage Securities Fund,
Barclay's U.S. Mortgage-Backed Securities Index**, and Consumer Price Index
On the chart above you can see how the Advantus Mortgage Securities Fund's Class 2 shares total return compared to the Barclays U.S. Mortgage-Backed Securities Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2003 through December 31, 2013, assuming reinvestment of distributions, if any.
22
Performance Update
Joseph Betlej, CFA and Lowell Bolken, CFA Portfolio Managers
The Advantus Real Estate Securities Fund seeks above-average income and long-term growth of capital. The Fund intends to pursue its objective by investing primarily in equity securities of companies in the real estate industry. Investment risks associated with investing in the Advantus Real Estate Securities Fund, in addition to other risks, include rental income fluctuations, depreciation, property tax value changes, and differences in real estate market value.
Advantus Real Estate Securities Fund
How did the Fund perform during the past 12 months?
The Fund's Class 2 shares had a return of 1.15% for 2013, lagging the Wilshire US Real Estate Securities Index return of 2.15% and the peer average for the same period.
What influenced the Fund's return during the past 12 months?
The domestic economy continued its slow but steady growth. Although it was buffeted by concerns over the fiscal cliff, sequestration, a government shutdown, the tapering of quantitative easing, and budget discussions, the economy showed strength and by the end of the year had powered through all these issues.
Commercial real estate occupancy and rental rate growth continued to improve during the year. Apartments, hotels and self-storage companies showed the most growth. By year end, more property types had shared in some of the sector's strength, with better results coming from warehouse and central business district office companies.
What other market conditions or events influenced the Fund's performance in the last 12 months?
The real estate securities markets began the year with strong performance, led by more defensive, high-yielding stocks, and in some lesser quality stocks. When discussions of tapering of quantitative easing began in May, however, REITs and other high-yielding stocks corrected substantially. Companies with better growth prospects led performance later in the year.
We continued to stress quality and sustainable growth in the portfolio. While this approach negatively affected relative performance early in the year, the strategy paid off by year end.
What strategies did you employ that specifically affected Fund performance?
Strength in the economy and in real estate fundamentals led us to position the portfolio for more sustainable growth opportunities. Companies with quality balance sheets were favored. When acquiring properties, they continued to have a strong cost-of-capital advantage over many of their peers.
Non-benchmark holdings in hotel managers and franchisers, homebuilders and cell tower companies delivered the strongest performance. All three sectors reflected the improving economy, and showed significant strength in earnings growth. Performance was negatively affected by an overweight and by stock picking in the apartment sector, and an underweight to hotel REITS and stock picks in that sector. Apartments showed weakness, as earnings growth slowed.
Portfolio holdings in more interest-rate-sensitive sectors were reduced after interest rates began to increase. For instance, anticipating a continued rise in interest rates, we sold healthcare facility, net-lease and commercial mortgage REITs.
In general, we favor companies that have made creative acquisitions or that have development pipelines able to capture economic growth.
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What industries or sectors did you emphasize during the last 12 months, and what is your outlook going forward?
In addition to the non-benchmark holdings mentioned previously, the Fund had overweight positions in apartments and regional malls, anticipating their outsized growth opportunities and exposure to improved consumer spending.
Continuing the trend from 2013, 2014 sets up to be a battle between improving underlying fundamentals and rising interest rates.
We anticipate that economic and employment growth will improve from sluggish levels in 2013. Job growth is the biggest driver of demand for commercial real estate and we expect it to support improvement in the sector's fundamentals.
Interest rates are expected to rise, but not nearly as aggressively as in 2013. We are limiting the portfolio's exposure to interest rates while positioning it for better growth opportunities.
Rising interest rates will likely lead to an increase in capitalization rates for commercial real estate, suppressing valuations. However, improved economic conditions and rental revenue increases should offset some of the contraction in REIT earnings multiples.
The high quality of REIT balance sheets helps lower their cost of capital, an advantage they can leverage when acquiring properties. Lenders generally see REITs as lower risk borrowers, a key reason why increased interest rates will affect REITs less than private real estate competitors.
While property sectors such as apartments and assisted living facilities are experiencing an increase in new construction, rent growth in most other commercial real estate sectors has not improved enough to spur new construction. We expect the trend of limited new construction to continue in 2014.
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Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Simon Property Group, Inc. | 78,079 | $ | 11,880,501 | 10.5 | % | ||||||||||
ProLogis, Inc. | 147,681 | 5,456,813 | 4.8 | % | |||||||||||
Boston Properties, Inc. | 48,383 | 4,856,202 | 4.3 | % | |||||||||||
Public Storage | 32,200 | 4,846,744 | 4.3 | % | |||||||||||
Host Hotels & Resorts, Inc. | 216,346 | 4,205,766 | 3.7 | % | |||||||||||
Ventas, Inc. | 68,396 | 3,917,723 | 3.5 | % | |||||||||||
Equity Residential | 73,900 | 3,833,193 | 3.4 | % | |||||||||||
AvalonBay Communities, Inc. | 31,126 | 3,680,027 | 3.3 | % | |||||||||||
HCP, Inc. | 95,300 | 3,461,296 | 3.1 | % | |||||||||||
General Growth Properties, Inc. | 141,300 | 2,835,891 | 2.5 | % | |||||||||||
$ | 48,974,156 | 43.4 | % |
^Does not include short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in Advantus Real Estate Securities Fund,
Wilshire US Real Estate Securities Index**, and Consumer Price Index
On the chart above you can see how the Advantus Real Estate Securities Fund's Class 2 shares total return compared to the Wilshire US Real Estate Securities Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2003 through December 31, 2013, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
**The Wilshire US Real Estate Securities Index is a market capitalization-weighted index of equity securities whose primary business is equity ownership of commercial real estate (REITs).
25
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Securian Funds Trust
We have audited the accompanying statement of assets and liabilities, including the schedules of investments in securities, of Advantus Bond Fund, Advantus Index 400 Mid-Cap Fund, Advantus Index 500 Fund, Advantus International Bond Fund, Advantus Managed Volatility Fund, Advantus Money Market Fund, Advantus Mortgage Securities Fund, and Advantus Real Estate Securities Fund (collectively, the "Funds"), each a series of the Securian Funds Trust, as of December 31, 2013, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Advantus Bond Fund, Advantus Index 400 Mid-Cap Fund, Advantus Index 500 Fund, Advantus International Bond Fund, Advantus Managed Volatility Fund, Advantus Money Market Fund, Advantus Mortgage Securities Fund, and Advantus Real Estate Securities Fund as of December 31, 2013, the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
Minneapolis, Minnesota
February 26, 2014
26
Advantus Bond Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (98.7%) | |||||||||||
Government Obligations (48.6%) | |||||||||||
Other Government Obligations (1.9%) | |||||||||||
Provincial or Local Government Obligations (1.9%) | |||||||||||
County of Sarasota FL, 7.016%, 10/01/40 | $ | 515,000 | $ | 576,378 | |||||||
Douglas County Public Utility District No. 1, 5.450%, 09/01/40 | 1,185,000 | 1,207,005 | |||||||||
New Jersey Transportation Trust Fund Authority, 5.754%, 12/15/28 | 1,050,000 | 1,149,740 | |||||||||
Port Authority of New York & New Jersey 4.458%, 10/01/62 | 1,180,000 | 1,005,218 | |||||||||
4.926%, 10/01/51 | 3,055,000 | 2,858,441 | |||||||||
6,796,782 | |||||||||||
U.S. Government Agencies and Obligations (46.7%) | |||||||||||
Export-Import Bank of the United States (1.4%) | |||||||||||
Helios Leasing I LLC, 2.018%, 05/29/24 | 869,940 | 843,913 | |||||||||
Tagua Leasing LLC 1.732%, 09/18/24 | 905,862 | 861,168 | |||||||||
1.900%, 07/12/24 | 779,266 | 751,447 | |||||||||
Ulani MSN 37894, 2.184%, 12/20/24 | 2,075,652 | 2,024,608 | |||||||||
Union 13 Leasing LLC, 1.870%, 06/28/24 | 691,542 | 665,701 | |||||||||
5,146,837 | |||||||||||
Federal Farm Credit Bank (0.8%) | |||||||||||
Federal Farm Credit Bank, 2.990%, 02/04/28 | 3,500,000 | 3,009,822 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (10.7%) | |||||||||||
2.500%, 03/01/28 | 934,369 | 927,869 | |||||||||
3.000%, 08/01/42 | 913,400 | 866,415 | |||||||||
3.000%, 04/01/43 | 1,448,135 | 1,373,644 | |||||||||
3.500%, 10/01/25 | 562,823 | 588,953 | |||||||||
3.500%, 01/01/42 | 861,252 | 857,205 | |||||||||
3.500%, 02/01/42 (b) | 767,653 | 762,545 | |||||||||
3.500%, 08/01/42 | 918,937 | 913,317 | |||||||||
4.000%, 02/01/20 | 1,707,666 | 1,802,761 | |||||||||
4.000%, 09/01/40 | 855,365 | 881,222 | |||||||||
4.000%, 10/01/40 | 1,011,273 | 1,041,302 | |||||||||
4.000%, 11/01/40 | 3,132,125 | 3,232,687 | |||||||||
4.000%, 02/01/41 | 712,452 | 734,065 | |||||||||
4.000%, 08/01/41 | 1,276,081 | 1,313,589 | |||||||||
4.000%, 01/01/44 (b) | 1,820,000 | 1,869,055 | |||||||||
4.500%, 01/01/41 | 1,473,521 | 1,564,554 | |||||||||
4.500%, 02/01/41 | 1,105,860 | 1,174,116 | |||||||||
4.500%, 03/01/41 | 1,314,361 | 1,394,600 | |||||||||
4.500%, 04/01/41 | 1,367,045 | 1,454,548 | |||||||||
5.000%, 04/01/35 | 260,698 | 280,706 | |||||||||
5.000%, 08/01/35 | 123,025 | 132,921 | |||||||||
5.000%, 11/01/35 | 272,958 | 293,853 |
Principal | Value(a) | ||||||||||
5.000%, 11/01/39 | $ | 830,669 | $ | 911,140 | |||||||
5.000%, 03/01/40 | 4,172,370 | 4,576,406 | |||||||||
5.000%, 04/01/40 | 893,994 | 964,100 | |||||||||
5.000%, 08/01/40 | 530,649 | 574,293 | |||||||||
5.500%, 12/01/17 | 100,841 | 107,614 | |||||||||
5.500%, 06/01/20 | 205,235 | 216,257 | |||||||||
5.500%, 10/01/20 | 299,739 | 325,414 | |||||||||
5.500%, 11/01/23 | 260,152 | 284,062 | |||||||||
5.500%, 05/01/34 | 1,490,587 | 1,668,257 | |||||||||
5.500%, 10/01/34 | 530,834 | 586,683 | |||||||||
5.500%, 07/01/35 | 895,190 | 984,288 | |||||||||
5.500%, 10/01/35 | 725,395 | 798,690 | |||||||||
5.500%, 12/01/38 | 685,036 | 748,743 | |||||||||
6.000%, 11/01/33 | 750,520 | 838,957 | |||||||||
6.500%, 09/01/32 | 121,220 | 137,407 | |||||||||
6.500%, 06/01/36 | 754,149 | 849,644 | |||||||||
7.000%, 12/01/37 | 359,468 | 393,391 | |||||||||
38,425,273 | |||||||||||
Federal National Mortgage Association (FNMA) (17.3%) | |||||||||||
2.500%, 11/01/27 | 901,931 | 887,856 | |||||||||
2.500%, 07/01/28 | 1,080,543 | 1,070,750 | |||||||||
2.500%, 01/01/29 (b) | 1,040,000 | 1,029,275 | |||||||||
3.000%, 06/01/22 | 705,021 | 731,352 | |||||||||
3.000%, 11/01/27 | 205,722 | 210,184 | |||||||||
3.000%, 01/01/29 (b) | 4,175,000 | 4,260,620 | |||||||||
3.000%, 03/01/42 | 823,619 | 782,759 | |||||||||
3.500%, 11/01/25 | 650,207 | 680,968 | |||||||||
3.500%, 01/01/26 | 693,574 | 726,351 | |||||||||
3.500%, 01/01/29 (b) | 1,135,000 | 1,186,917 | |||||||||
3.500%, 11/01/40 | 731,684 | 728,521 | |||||||||
3.500%, 01/01/41 | 696,374 | 692,933 | |||||||||
3.500%, 02/01/41 | 427,126 | 425,406 | |||||||||
3.500%, 04/01/41 | 725,915 | 722,328 | |||||||||
3.500%, 11/01/41 | 4,060,089 | 4,041,245 | |||||||||
3.500%, 03/01/43 | 2,325,784 | 2,315,692 | |||||||||
3.500%, 07/01/43 | 1,282,158 | 1,263,134 | |||||||||
3.500%, 08/01/43 | 1,484,249 | 1,462,269 | |||||||||
3.500%, 01/01/44 (b) | 4,800,000 | 4,768,125 | |||||||||
4.000%, 04/01/41 | 2,242,475 | 2,314,320 | |||||||||
4.000%, 08/01/41 | 917,427 | 945,083 | |||||||||
4.000%, 09/01/41 | 1,477,163 | 1,524,052 | |||||||||
4.500%, 05/01/35 | 425,512 | 452,045 | |||||||||
4.500%, 07/01/35 | 1,090,134 | 1,159,652 | |||||||||
4.500%, 06/01/39 | 539,775 | 573,636 | |||||||||
4.500%, 04/01/41 | 3,554,009 | 3,792,147 | |||||||||
4.500%, 07/01/41 | 3,649,380 | 3,871,382 | |||||||||
5.000%, 05/01/18 | 44,177 | 47,065 | |||||||||
5.000%, 06/01/18 | 90,051 | 95,954 | |||||||||
5.000%, 07/01/18 | 196,264 | 209,145 | |||||||||
5.000%, 07/01/23 | 263,430 | 285,788 | |||||||||
5.000%, 11/01/33 | 149,387 | 162,714 | |||||||||
5.000%, 05/01/34 | 43,922 | 47,697 | |||||||||
5.000%, 12/01/34 | 654,978 | 712,575 | |||||||||
5.000%, 04/01/35 | 163,943 | 178,027 | |||||||||
5.000%, 08/01/35 | 226,223 | 245,469 | |||||||||
5.000%, 04/01/38 | 440,255 | 484,366 | |||||||||
5.000%, 12/01/39 | 596,519 | 658,926 | |||||||||
5.000%, 04/01/41 | 752,088 | 825,803 | |||||||||
5.500%, 09/01/17 | 31,871 | 34,063 | |||||||||
5.500%, 02/01/18 | 114,049 | 122,713 |
See accompanying notes to financial statements.
27
Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
5.500%, 03/01/18 | $ | 206,655 | $ | 220,940 | |||||||
5.500%, 04/01/33 | 796,284 | 887,168 | |||||||||
5.500%, 12/01/33 | 247,458 | 272,544 | |||||||||
5.500%, 01/01/34 | 349,608 | 385,279 | |||||||||
5.500%, 02/01/34 | 358,422 | 399,515 | |||||||||
5.500%, 03/01/34 | 689,124 | 769,003 | |||||||||
5.500%, 04/01/34 | 404,196 | 444,731 | |||||||||
5.500%, 09/01/34 | 111,082 | 122,258 | |||||||||
5.500%, 02/01/35 | 424,321 | 467,601 | |||||||||
5.500%, 04/01/35 | 753,296 | 829,097 | |||||||||
5.500%, 06/01/35 | 135,802 | 149,162 | |||||||||
5.500%, 08/01/35 | 389,397 | 429,185 | |||||||||
5.500%, 10/01/35 | 718,601 | 803,072 | |||||||||
5.500%, 11/01/35 | 271,214 | 298,326 | |||||||||
5.500%, 12/01/35 | 206,564 | 227,825 | |||||||||
5.500%, 12/01/39 | 314,162 | 348,226 | |||||||||
6.000%, 09/01/17 | 169,286 | 179,265 | |||||||||
6.000%, 08/01/23 | 256,404 | 279,867 | |||||||||
6.000%, 10/01/32 | 673,868 | 758,984 | |||||||||
6.000%, 11/01/32 | 518,592 | 584,209 | |||||||||
6.000%, 03/01/33 | 643,402 | 725,150 | |||||||||
6.000%, 04/01/33 | 52,081 | 57,689 | |||||||||
6.000%, 12/01/33 | 259,266 | 293,716 | |||||||||
6.000%, 01/01/36 | 199,625 | 222,715 | |||||||||
6.000%, 08/01/37 | 150,723 | 166,736 | |||||||||
6.000%, 09/01/37 | 293,661 | 330,103 | |||||||||
6.000%, 10/01/38 | 426,174 | 479,963 | |||||||||
6.000%, 12/01/38 | 401,745 | 446,531 | |||||||||
6.000%, 06/01/40 | 184,278 | 203,860 | |||||||||
6.500%, 12/01/31 | 158,006 | 179,000 | |||||||||
6.500%, 02/01/32 | 52,785 | 59,884 | |||||||||
6.500%, 04/01/32 | 247,774 | 281,126 | |||||||||
6.500%, 05/01/32 | 70,608 | 80,134 | |||||||||
6.500%, 07/01/32 | 221,403 | 250,350 | |||||||||
6.500%, 08/01/32 | 323,795 | 366,984 | |||||||||
6.500%, 09/01/32 | 191,863 | 217,000 | |||||||||
6.500%, 10/01/32 | 284,168 | 321,607 | |||||||||
6.500%, 11/01/37 | 314,275 | 350,035 | |||||||||
7.000%, 07/01/31 | 170,018 | 197,027 | |||||||||
7.000%, 09/01/31 | 273,639 | 317,536 | |||||||||
7.000%, 11/01/31 | 389,210 | 452,370 | |||||||||
7.000%, 02/01/32 | 82,771 | 95,840 | |||||||||
7.000%, 03/01/32 | 47,165 | 54,902 | |||||||||
7.000%, 07/01/32 | 133,766 | 148,260 | |||||||||
7.500%, 04/01/31 | 215,167 | 245,525 | |||||||||
7.500%, 05/01/31 | 61,158 | 69,653 | |||||||||
62,199,260 | |||||||||||
Government National Mortgage Association (GNMA) (1.6%) | |||||||||||
0.384%, 06/17/45 (c) (d) | 4,618,997 | 55,950 | |||||||||
3.000%, 01/01/44 (b) | 1,000,000 | 965,703 | |||||||||
3.500%, 10/20/43 | 995,511 | 1,006,540 | |||||||||
3.500%, 01/01/44 (b) | 1,000,000 | 1,007,852 | |||||||||
4.920%, 05/16/34 | 82,102 | 82,535 | |||||||||
5.000%, 12/15/39 | 54,329 | 60,341 | |||||||||
5.000%, 01/15/40 | 1,117,698 | 1,224,127 | |||||||||
5.500%, 07/15/38 | 522,890 | 575,715 | |||||||||
5.500%, 10/15/38 | 578,023 | 656,257 | |||||||||
8.500%, 10/15/22 | 17,218 | 17,602 | |||||||||
5,652,622 |
Principal | Value(a) | ||||||||||
U.S. Treasury (14.9%) | |||||||||||
U.S. Treasury Bond 3.625%, 08/15/43 | $ | 6,350,000 | $ | 5,996,781 | |||||||
5.375%, 02/15/31 (e) | 5,115,000 | 6,268,274 | |||||||||
U.S. Treasury Note 0.250%, 10/31/15 | 945,000 | 943,671 | |||||||||
0.625%, 09/30/17 | 8,955,000 | 8,768,906 | |||||||||
0.875%, 09/15/16 | 5,000,000 | 5,029,690 | |||||||||
1.250%, 11/30/18 | 20,175,000 | 19,743,134 | |||||||||
2.750%, 11/15/23 | 7,255,000 | 7,097,429 | |||||||||
53,847,885 | |||||||||||
Total government obligations (cost: $172,925,751) | 175,078,481 | ||||||||||
Asset-Backed Securities (4.7%) | |||||||||||
Asset-Backed Securities (4.7%) | |||||||||||
AmeriCredit Automobile Receivables Trust, 2.850%, 08/08/16 | 1,000,000 | 1,016,860 | |||||||||
Appalachian Consumer Rate Relief Funding LLC, 3.772%, 08/01/31 | 780,000 | 760,174 | |||||||||
Cabela's Master Credit Card Trust, 2.710%, 02/17/26 (f) | 1,550,000 | 1,437,107 | |||||||||
Conseco Financial Corp. 6.400%, 10/15/18 | 45,528 | 46,728 | |||||||||
7.400%, 06/15/27 | 135,513 | 137,737 | |||||||||
Countryplace Manufactured Housing Contract Trust, 5.200%, 12/15/35 (d) (f) (g) | 1,755,000 | 1,893,592 | |||||||||
Countrywide Asset-Backed Certificates, 5.934%, 05/25/37 (d) | 1,721,465 | 1,471,006 | |||||||||
FAN Engine Securitization, Ltd., 3.000%, 10/15/19 (f) (g) (h) | 836,111 | 835,589 | |||||||||
GMAC Mortgage Corp. Loan Trust, 5.952%, 08/25/37 (d) | 3,095,000 | 2,659,837 | |||||||||
Origen Manufactured Housing Contract Trust 5.700%, 01/15/35 (d) | 1,081,769 | 1,148,612 | |||||||||
5.730%, 11/15/35 (d) | 400,817 | 421,330 | |||||||||
5.860%, 06/15/36 (d) | 456,636 | 485,880 | |||||||||
Santander Consumer Acquired Receivables Trust 3.150%, 08/15/16 (f) | 1,469,618 | 1,471,501 | |||||||||
3.190%, 10/15/15 (f) | 1,835,304 | 1,847,183 | |||||||||
TAL Advantage V LLC, 2.830%, 02/22/38 (f) | 1,507,917 | 1,464,323 | |||||||||
Total asset-backed securities (cost: $17,602,319) | 17,097,459 | ||||||||||
Other Mortgage-Backed Securities (7.7%) | |||||||||||
Collateralized Mortgage Obligations/Mortgage Revenue Bonds (1.3%) | |||||||||||
American Tower Trust I, 1.551%, 03/15/43 (f) | 2,840,000 | 2,771,784 | |||||||||
BHN I Mortgage Fund, 7.916%, 07/01/14 (f) (g) (h) (i) (j) | 57,000 | — |
See accompanying notes to financial statements.
28
Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Connecticut Avenue Securities, 2.165%, 10/25/23 (d) | $ | 731,380 | $ | 734,719 | |||||||
Credit-Based Asset Servicing and Securitization LLC, 5.912%, 10/25/36 (f) (k) | 469,466 | 480,718 | |||||||||
JPMorgan Mortgage Trust, 2.550%, 11/25/33 (d) | 624,229 | 607,994 | |||||||||
Mellon Residential Funding Corp., 6.750%, 06/25/28 | 8,774 | 8,872 | |||||||||
4,604,087 | |||||||||||
Commercial Mortgage-Backed Securities (6.4%) | |||||||||||
7 WTC Depositor LLC Trust, 4.082%, 03/13/31 (f) | 1,278,009 | 1,328,671 | |||||||||
Asset Securitization Corp., 7.431%, 02/14/43 (d) | 175,679 | 176,038 | |||||||||
BB-UBS Trust 3.430%, 11/05/36 (f) | 1,790,000 | 1,640,621 | |||||||||
4.026%, 11/05/36 (d) (f) | 895,000 | 781,102 | |||||||||
Citigroup Commercial Mortgage Trust 2.110%, 01/14/18 (f) | 816,191 | 818,217 | |||||||||
3.008%, 01/12/18 (d) (f) | 725,000 | 709,814 | |||||||||
Extended Stay America Trust, 2.295%, 12/05/31 (f) (i) | 1,000,000 | 984,400 | |||||||||
Hometown Commercial Mortgage 5.506%, 11/11/38 (f) (g) | 795,031 | 619,875 | |||||||||
6.057%, 06/11/39 (f) (g) (i) | 1,037,572 | 612,167 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. 1.956%, 12/05/27 (c) (d) (f) (g) | 10,831,174 | 1,062,993 | |||||||||
5.633%, 12/05/27 (f) | 2,165,000 | 2,440,395 | |||||||||
Merrill Lynch Mortgage Investors, Inc., 6.250%, 12/10/29 (d) | 460,481 | 460,851 | |||||||||
Morgan Stanley Capital I Trust 3.201%, 08/05/34 (f) | 860,000 | 816,095 | |||||||||
3.451%, 08/05/34 (f) | 550,000 | 516,688 | |||||||||
3.773%, 03/15/45 | 685,000 | 679,811 | |||||||||
Multi Security Asset Trust, 5.880%, 11/28/35 (d) (f) (g) (i) | 1,540,000 | 1,494,569 | |||||||||
Timberstar Trust, 6.208%, 10/15/36 (f) | 2,515,000 | 2,641,032 | |||||||||
UBS-Barclays Commercial Mortgage Trust, 3.091%, 08/10/49 | 920,000 | 878,943 | |||||||||
Vornado DP LLC, 4.004%, 09/13/28 (f) | 1,475,000 | 1,539,400 | |||||||||
Wachovia Bank Commercial Mortgage Trust, 4.803%, 10/15/41 | 435,000 | 444,849 | |||||||||
WF-RBS Commercial Mortgage Trust 3.667%, 11/15/44 | 905,000 | 916,832 | |||||||||
3.791%, 02/15/44 (f) | 1,485,000 | 1,556,782 | |||||||||
23,120,145 | |||||||||||
Total other mortgage-backed securities (cost: $28,478,677) | 27,724,232 |
Principal | Value(a) | ||||||||||
Corporate Obligations (37.7%) | |||||||||||
Basic Materials (0.6%) | |||||||||||
Chemicals (0.6%) | |||||||||||
Ashland, Inc., 3.875%, 04/15/18 | $ | 2,120,000 | $ | 2,146,500 | |||||||
Capital Goods (0.9%) | |||||||||||
Containers-Metal/Glass (0.8%) | |||||||||||
Ball Corp. 5.750%, 05/15/21 | 685,000 | 720,962 | |||||||||
6.750%, 09/15/20 | 2,040,000 | 2,218,500 | |||||||||
2,939,462 | |||||||||||
Manufacturing (0.1%) | |||||||||||
Valmont Industries, Inc., 6.625%, 04/20/20 | 300,000 | 336,591 | |||||||||
Communications (2.7%) | |||||||||||
Telephone Services (1.1%) | |||||||||||
SBA Tower Trust, 2.240%, 04/15/43 (f) | 2,440,000 | 2,400,257 | |||||||||
Virgin Media Secured Finance PLC, 5.375%, 04/15/21 (f) (h) | 1,500,000 | 1,500,000 | |||||||||
3,900,257 | |||||||||||
Telephone — Integrated (1.6%) | |||||||||||
British Telecommunications PLC, 2.000%, 06/22/15 (h) | 865,000 | 880,211 | |||||||||
Verizon Communications, Inc. 3.650%, 09/14/18 | 1,095,000 | 1,159,128 | |||||||||
5.150%, 09/15/23 | 970,000 | 1,041,481 | |||||||||
6.550%, 09/15/43 | 2,215,000 | 2,591,459 | |||||||||
5,672,279 | |||||||||||
Consumer Cyclical (0.8%) | |||||||||||
Auto/Truck Parts & Equipment — Original (0.4%) | |||||||||||
Delphi Corp., 6.125%, 05/15/21 | 290,000 | 321,537 | |||||||||
TRW Automotive, Inc., 4.500%, 03/01/21 (f) | 970,000 | 979,700 | |||||||||
1,301,237 | |||||||||||
Retail-Apparel/Shoe (0.4%) | |||||||||||
L Brands, Inc., 6.625%, 04/01/21 | 1,480,000 | 1,624,300 | |||||||||
Consumer, Non-cyclical (1.9%) | |||||||||||
Drugstore Chains (0.9%) | |||||||||||
CVS Pass-Through Trust 6.036%, 12/10/28 | 2,656,340 | 2,922,277 | |||||||||
6.943%, 01/10/30 | 420,935 | 482,434 | |||||||||
3,404,711 | |||||||||||
Health Care Products (1.0%) | |||||||||||
Hospira, Inc., 5.200%, 08/12/20 | 650,000 | 674,384 | |||||||||
Mallinckrodt International Finance SA 3.500%, 04/15/18 (f) (h) | 1,845,000 | 1,809,924 | |||||||||
4.750%, 04/15/23 (f) (h) | 1,230,000 | 1,135,214 | |||||||||
3,619,522 |
See accompanying notes to financial statements.
29
Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Energy (6.8%) | |||||||||||
Oil, Gas & Consumable Fuels (0.8%) | |||||||||||
Tesoro Corp., 4.250%, 10/01/17 | $ | 1,135,000 | $ | 1,183,237 | |||||||
Whiting Petroleum Corp., 5.000%, 03/15/19 | 1,760,000 | 1,799,600 | |||||||||
2,982,837 | |||||||||||
Pipelines (6.0%) | |||||||||||
DCP Midstream Operating L.P., 2.500%, 12/01/17 | 1,670,000 | 1,662,816 | |||||||||
El Paso Natural Gas Co. LLC, 7.500%, 11/15/26 | 2,205,000 | 2,674,923 | |||||||||
El Paso Pipeline Partners Operating Co. LLC, 5.000%, 10/01/21 | 400,000 | 418,925 | |||||||||
Energy Transfer Partners L.P. 4.150%, 10/01/20 | 1,645,000 | 1,668,986 | |||||||||
9.000%, 04/15/19 | 2,300,000 | 2,906,919 | |||||||||
Enterprise Products Operating LLC, 5.750%, 03/01/35 | 1,685,000 | 1,781,766 | |||||||||
NuStar Logistics L.P., 8.150%, 04/15/18 (k) | 2,386,000 | 2,702,145 | |||||||||
Spectra Energy Partners L.P. 2.950%, 09/25/18 | 660,000 | 668,992 | |||||||||
4.600%, 06/15/21 | 495,000 | 513,130 | |||||||||
Sunoco Logistics Partners Operations L.P., 6.850%, 02/15/40 | 2,150,000 | 2,384,812 | |||||||||
The Williams Cos., Inc., 3.700%, 01/15/23 | 1,450,000 | 1,265,572 | |||||||||
Western Gas Partners L.P., 5.375%, 06/01/21 | 1,835,000 | 1,965,834 | |||||||||
Williams Partners L.P./ Williams Partners Finance Corp., 7.250%, 02/01/17 | 700,000 | 807,199 | |||||||||
21,422,019 | |||||||||||
Financial (13.9%) | |||||||||||
Banks (7.0%) | |||||||||||
Ally Financial, Inc., 5.500%, 02/15/17 | 1,150,000 | 1,244,875 | |||||||||
Bank of America Corp. 5.300%, 03/15/17 | 770,000 | 848,711 | |||||||||
5.750%, 12/01/17 | 1,590,000 | 1,809,600 | |||||||||
5.875%, 01/05/21 | 765,000 | 879,280 | |||||||||
Citigroup, Inc., 4.450%, 01/10/17 | 2,950,000 | 3,197,207 | |||||||||
Discover Bank/Greenwood, 8.700%, 11/18/19 | 322,000 | 402,698 | |||||||||
HSBC Bank USA NA, 6.000%, 08/09/17 | 3,150,000 | 3,546,191 | |||||||||
JPMorgan Chase Bank NA 5.875%, 06/13/16 | 875,000 | 970,453 | |||||||||
6.000%, 07/05/17 | 400,000 | 450,923 | |||||||||
6.000%, 10/01/17 | 1,575,000 | 1,801,988 | |||||||||
Morgan Stanley 5.500%, 01/26/20 | 1,000,000 | 1,122,572 | |||||||||
5.500%, 07/28/21 | 740,000 | 826,919 | |||||||||
6.250%, 08/28/17 | 1,435,000 | 1,641,969 |
Principal | Value(a) | ||||||||||
PNC Bank NA, 4.200%, 11/01/25 | $ | 1,225,000 | $ | 1,200,773 | |||||||
SunTrust Bank, 0.528%, 08/24/15 (d) | 1,445,000 | 1,433,077 | |||||||||
The Goldman Sachs Group, Inc., 6.250%, 09/01/17 | 1,695,000 | 1,940,538 | |||||||||
Wells Fargo & Co., 5.375%, 11/02/43 | 1,895,000 | 1,940,491 | |||||||||
25,258,265 | |||||||||||
Diversified Financial Services (0.8%) | |||||||||||
CNH Capital LLC 3.250%, 02/01/17 (f) | 1,100,000 | 1,119,250 | |||||||||
3.625%, 04/15/18 | 1,470,000 | 1,490,212 | |||||||||
2,609,462 | |||||||||||
Finance — Diversified (1.7%) | |||||||||||
Discover Financial Services, 6.450%, 06/12/17 | 805,000 | 912,178 | |||||||||
Ford Motor Credit Co. LLC, 3.000%, 06/12/17 | 950,000 | 987,352 | |||||||||
General Motors Financial Co., Inc. 4.250%, 05/15/23 (f) | 445,000 | 423,306 | |||||||||
4.750%, 08/15/17 (f) | 2,400,000 | 2,547,000 | |||||||||
International Lease Finance Corp., 6.500%, 09/01/14 (f) | 1,270,000 | 1,312,863 | |||||||||
6,182,699 | |||||||||||
Insurance (2.8%) | |||||||||||
Assurant, Inc., 2.500%, 03/15/18 | 1,180,000 | 1,152,924 | |||||||||
Liberty Mutual Group, Inc. 5.000%, 06/01/21 (f) | 860,000 | 901,958 | |||||||||
6.500%, 05/01/42 (f) | 1,805,000 | 1,980,901 | |||||||||
Pacific LifeCorp, 5.125%, 01/30/43 (f) | 1,750,000 | 1,609,020 | |||||||||
Prudential Holdings LLC, 7.245%, 12/18/23 (f) (g) | 800,000 | 941,575 | |||||||||
Symetra Financial Corp., 6.125%, 04/01/16 (f) (g) | 2,210,000 | 2,352,530 | |||||||||
XL Group PLC, 6.250%, 05/15/27 (h) | 1,090,000 | 1,220,939 | |||||||||
10,159,847 | |||||||||||
Real Estate Investment Trust — Apartments (0.5%) | |||||||||||
Mid-America Apartments L.P., 5.500%, 10/01/15 (f) (g) | 1,745,000 | 1,877,779 | |||||||||
Real Estate Investment Trust — Health Care (0.4%) | |||||||||||
Health Care REIT, Inc., 4.125%, 04/01/19 | 1,365,000 | 1,437,290 | |||||||||
Real Estate Investment Trust — Shopping Centers (0.2%) | |||||||||||
Retail Opportunity Investments Partnership L.P., 5.000%, 12/15/23 | 800,000 | 796,508 | |||||||||
Real Estate Investment Trust — Storage (0.3%) | |||||||||||
CubeSmart L.P., 4.375%, 12/15/23 | 1,090,000 | 1,064,982 |
See accompanying notes to financial statements.
30
Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Savings and Loans (0.2%) | |||||||||||
Santander Holdings USA, Inc., 3.000%, 09/24/15 | $ | 555,000 | $ | 573,120 | |||||||
Health Care (1.5%) | |||||||||||
Health Care Providers & Services (0.7%) | |||||||||||
NYU Hospitals Center, 4.428%, 07/01/42 | 1,480,000 | 1,235,392 | |||||||||
Sinai Health System, 3.034%, 01/20/36 | 1,670,000 | 1,503,509 | |||||||||
2,738,901 | |||||||||||
Medical Products/Supplies (0.8%) | |||||||||||
Bio-Rad Laboratories, Inc., 4.875%, 12/15/20 | 2,700,000 | 2,750,790 | |||||||||
Industrials (0.5%) | |||||||||||
Tools-Hand Held (0.5%) | |||||||||||
Stanley Black & Decker, Inc., 5.750%, 12/15/53 (d) | 1,650,000 | 1,736,625 | |||||||||
Technology (1.1%) | |||||||||||
Computer Hardware (0.6%) | |||||||||||
Hewlett-Packard Co. 3.000%, 09/15/16 | 1,600,000 | 1,664,353 | |||||||||
3.300%, 12/09/16 | 525,000 | 549,479 | |||||||||
2,213,832 | |||||||||||
Computer Software & Services (0.5%) | |||||||||||
Intuit, Inc., 5.750%, 03/15/17 | 1,505,000 | 1,682,720 | |||||||||
Transportation (5.3%) | |||||||||||
Airlines (4.1%) | |||||||||||
America West Airlines 2000-1 Pass Through Trust, 8.057%, 01/02/22 (i) | 445,644 | 476,839 | |||||||||
American Airlines 2011-1 Class A Pass Through Trust, 5.250%, 07/31/22 (i) | 697,920 | 738,051 | |||||||||
American Airlines 2013-2 Class A Pass Through Trust, 4.950%, 07/15/24 (f) (i) | 1,735,000 | 1,808,737 | |||||||||
American Airlines 2013-2 Class B Pass Through Trust, 5.600%, 01/15/22 (f) (i) | 1,750,000 | 1,767,500 | |||||||||
British Airways PLC, 5.625%, 12/20/21 (f) (h) (i) | 875,000 | 914,375 | |||||||||
Delta Air Lines 2012-1 Class A Pass Through Trust, 4.750%, 11/07/21 (i) | 762,542 | 815,920 | |||||||||
Delta Air Lines 2012-1 Class B Pass Through Trust, 6.875%, 05/07/19 (f) (i) | 1,999,844 | 2,149,832 | |||||||||
Hawaiian Airlines 2013-1 Class A Pass-Through Certificates, 3.900%, 01/15/26 (i) | 2,045,000 | 1,899,294 | |||||||||
United Air Lines, Inc., 10.400%, 05/01/18 (i) | 975,967 | 1,107,723 | |||||||||
US Airways 2010-1 Class A Pass Through Trust, 6.250%, 10/22/24 (i) | 1,522,066 | 1,662,857 |
Shares/ Principal | Value(a) | ||||||||||
US Airways 2012-1 Class A Pass Through Trust, 5.900%, 04/01/26 (i) | $ | 686,732 | $ | 748,538 | |||||||
US Airways 2012-2 Class A Pass Through Trust, 4.625%, 12/03/26 (i) | 827,151 | 839,559 | |||||||||
14,929,225 | |||||||||||
Transport — Rail (1.2%) | |||||||||||
BNSF Funding Trust I, 6.613%, 12/15/55 (d) | 3,785,000 | 4,149,306 | |||||||||
Utilities (1.7%) | |||||||||||
Electric Companies (1.7%) | |||||||||||
CMS Energy Corp., 8.750%, 06/15/19 | 1,725,000 | 2,181,908 | |||||||||
FirstEnergy Corp., 2.750%, 03/15/18 | 1,700,000 | 1,670,369 | |||||||||
Southwestern Electric Power Co., 5.550%, 01/15/17 | 2,230,000 | 2,449,677 | |||||||||
6,301,954 | |||||||||||
Total corporate obligations (cost: $132,045,749) | 135,813,020 | ||||||||||
Total long-term debt securities (cost: $351,052,496) | 355,713,192 | ||||||||||
Short-Term Securities (5.1%) | |||||||||||
Investment Companies (5.1%) | |||||||||||
Dreyfus Treasury Cash Management Fund, current rate 0.010% (l) | 18,408,890 | 18,408,890 | |||||||||
Total short-term securities (cost: $18,408,890) | 18,408,890 | ||||||||||
Total investments in securities (cost: $369,461,386) (m) | 374,122,082 | ||||||||||
Liabilities in excess of cash and other assets (-3.8%) | (13,674,295 | ) | |||||||||
Total net assets (100.0%) | $ | 360,447,787 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Security is issued on a when-issued or forward commitment basis. As of December 31, 2013 the total cost of investments issued on a when-issued or forward commitment basis was $15,896,502.
(c) Interest-only security that entitles holders to receive only interest on the underlying mortgages. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The yield to maturity of an interest-only security is sensitive to the rate of principal payments on the underlying mortgage assets. The rate disclosed represents the market yield based upon the current cost basis and estimated timing and amount of future cash flows.
(d) Variable rate security.
See accompanying notes to financial statements.
31
Advantus Bond Fund
Investments in Securities – continued
(e) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2013, securities with an aggregate market value of $306,367 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
2 Year U.S. Treasury Note | March 2014 | 10 | Long | $ | (4,082 | ) | |||||||||||||
10 Year U.S. Treasury Note | March 2014 | 202 | Short | 452,516 | |||||||||||||||
212 | $ | 448,434 |
(f) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program.
(g) Illiquid security. (See Note 5.)
(h) Foreign security: The Fund held 2.3% of net assets in foreign securities at December 31, 2013.
(i) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(j) Security is in default with respect to interest payments. Income is not being accrued on this security and any payments received are treated as a reduction of principal.
(k) Step rate security.
(l) All or portion of the security segregated to cover when-issued purchase commitments outstanding or extended settlement trades as of December 31, 2013.
(m) At December 31, 2013 the cost of securities for federal income tax purposes was $372,578,277. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 7,777,490 | |||||
Gross unrealized depreciation | (6,233,685 | ) | |||||
Net unrealized appreciation | $ | 1,543,805 |
See accompanying notes to financial statements.
32
Advantus Index 400 Mid-Cap Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.0%) | |||||||||||
Consumer Discretionary (13.7%) | |||||||||||
Auto Components (0.3%) | |||||||||||
Gentex Corp. | 20,914 | $ | 689,953 | ||||||||
Automobiles (0.2%) | |||||||||||
Thor Industries, Inc. | 6,431 | 355,184 | |||||||||
Distributors (0.6%) | |||||||||||
LKQ Corp. (b) | 43,441 | 1,429,209 | |||||||||
Diversified Consumer Services (0.8%) | |||||||||||
Apollo Group, Inc. — Class A (b) | 14,424 | 394,064 | |||||||||
DeVry, Inc. | 8,207 | 291,348 | |||||||||
Matthews International Corp. — Class A | 3,875 | 165,114 | |||||||||
Service Corp. International/US | 30,629 | 555,304 | |||||||||
Sotheby's | 9,916 | 527,531 | |||||||||
1,933,361 | |||||||||||
Hotels, Restaurants & Leisure (1.6%) | |||||||||||
Bally Technologies, Inc. (b) | 5,600 | 439,320 | |||||||||
Bob Evans Farms, Inc. | 3,933 | 198,971 | |||||||||
Brinker International, Inc. | 9,606 | 445,142 | |||||||||
Domino's Pizza, Inc. | 8,052 | 560,822 | |||||||||
International Speedway Corp. — Class A | 3,953 | 140,292 | |||||||||
Life Time Fitness, Inc. (b) | 5,646 | 265,362 | |||||||||
Panera Bread Co. — Class A (b) | 3,867 | 683,260 | |||||||||
Scientific Games Corp. — Class A (b) | 7,008 | 118,645 | |||||||||
The Cheesecake Factory, Inc. | 6,953 | 335,621 | |||||||||
The Wendy's Co. | 40,751 | 355,349 | |||||||||
3,542,784 | |||||||||||
Household Durables (1.8%) | |||||||||||
Jarden Corp. (b) | 17,228 | 1,056,938 | |||||||||
KB Home | 11,988 | 219,141 | |||||||||
MDC Holdings, Inc. | 5,600 | 180,544 | |||||||||
NVR, Inc. (b) | 653 | 669,984 | |||||||||
Tempur-Pedic International, Inc. (b) | 8,740 | 471,610 | |||||||||
Toll Brothers, Inc. (b) | 22,967 | 849,779 | |||||||||
Tupperware Brands Corp. | 7,321 | 692,054 | |||||||||
4,140,050 | |||||||||||
Internet & Catalog Retail (0.1%) | |||||||||||
HSN, Inc. | 4,792 | 298,542 | |||||||||
Leisure Equipment & Products (0.9%) | |||||||||||
Brunswick Corp. | 13,142 | 605,321 | |||||||||
Polaris Industries, Inc. | 9,286 | 1,352,413 | |||||||||
1,957,734 | |||||||||||
Media (1.3%) | |||||||||||
AMC Networks, Inc. — Class A (b) | 8,565 | 583,362 | |||||||||
Cinemark Holdings, Inc. | 14,999 | 499,917 | |||||||||
DreamWorks Animation SKG, Inc. — Class A (b) | 10,292 | 365,366 |
Shares | Value(a) | ||||||||||
John Wiley & Sons, Inc. — Class A | 6,683 | $ | 368,901 | ||||||||
Lamar Advertising Co. — Class A (b) | 9,436 | 493,031 | |||||||||
Meredith Corp. | 5,309 | 275,006 | |||||||||
The New York Times Co. — Class A | 18,178 | 288,485 | |||||||||
Valassis Communications, Inc. | 5,524 | 189,197 | |||||||||
3,063,265 | |||||||||||
Multiline Retail (0.3%) | |||||||||||
Big Lots, Inc. (b) | 8,423 | 271,979 | |||||||||
JC Penney Co., Inc. (b) | 44,020 | 402,783 | |||||||||
674,762 | |||||||||||
Specialty Retail (4.7%) | |||||||||||
Aaron's, Inc. | 11,021 | 324,017 | |||||||||
Abercrombie & Fitch Co. — Class A | 11,039 | 363,294 | |||||||||
Advance Auto Parts, Inc. | 10,525 | 1,164,907 | |||||||||
American Eagle Outfitters, Inc. | 24,516 | 353,030 | |||||||||
ANN, Inc. (b) | 6,617 | 241,918 | |||||||||
Ascena Retail Group, Inc. (b) | 18,564 | 392,814 | |||||||||
Cabela's, Inc. (b) | 6,726 | 448,355 | |||||||||
Carter's, Inc. | 7,879 | 565,634 | |||||||||
Chico's FAS, Inc. | 22,946 | 432,303 | |||||||||
CST Brands, Inc. | 10,924 | 401,129 | |||||||||
Dick's Sporting Goods, Inc. | 14,723 | 855,406 | |||||||||
Foot Locker, Inc. | 21,458 | 889,220 | |||||||||
Guess?, Inc. | 8,586 | 266,767 | |||||||||
Murphy USA, Inc. (b) | 6,406 | 266,233 | |||||||||
Office Depot, Inc. (b) | 68,969 | 364,846 | |||||||||
Rent-A-Center, Inc. | 7,704 | 256,851 | |||||||||
Signet Jewelers, Ltd. (c) | 11,592 | 912,291 | |||||||||
Tractor Supply Co. | 20,171 | 1,564,866 | |||||||||
Williams-Sonoma, Inc. | 12,862 | 749,597 | |||||||||
10,813,478 | |||||||||||
Textiles, Apparel & Luxury Goods (1.1%) | |||||||||||
Deckers Outdoor Corp. (b) | 4,955 | 418,499 | |||||||||
Hanesbrands, Inc. | 14,322 | 1,006,407 | |||||||||
Under Armour, Inc. — Class A (b) | 11,601 | 1,012,767 | |||||||||
2,437,673 | |||||||||||
Consumer Staples (3.9%) | |||||||||||
Food & Staples Retailing (0.5%) | |||||||||||
Harris Teeter Supermarkets, Inc. | 7,146 | 352,655 | |||||||||
SUPERVALU, Inc. (b) | 28,497 | 207,743 | |||||||||
United Natural Foods, Inc. (b) | 7,128 | 537,380 | |||||||||
1,097,778 | |||||||||||
Food Products (2.3%) | |||||||||||
Dean Foods Co. (b) | 13,642 | 234,506 | |||||||||
Flowers Foods, Inc. | 25,312 | 543,449 | |||||||||
Green Mountain Coffee Roasters, Inc. (b) | 18,951 | 1,432,316 | |||||||||
Hillshire Brands Co. | 17,776 | 594,429 | |||||||||
Ingredion, Inc. | 11,080 | 758,537 | |||||||||
Lancaster Colony Corp. | 2,781 | 245,145 | |||||||||
Post Holdings, Inc. (b) | 4,729 | 232,998 |
See accompanying notes to financial statements.
33
Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
The Hain Celestial Group, Inc. (b) | 6,820 | $ | 619,120 | ||||||||
Tootsie Roll Industries, Inc. | 2,903 | 94,464 | |||||||||
WhiteWave Foods Co. — Class A (b) | 25,061 | 574,899 | |||||||||
5,329,863 | |||||||||||
Household Products (1.0%) | |||||||||||
Church & Dwight Co., Inc. | 20,064 | 1,329,842 | |||||||||
Energizer Holdings, Inc. | 8,999 | 974,052 | |||||||||
2,303,894 | |||||||||||
Tobacco (0.1%) | |||||||||||
Universal Corp. | 3,360 | 183,456 | |||||||||
Energy (5.2%) | |||||||||||
Energy Equipment & Services (2.8%) | |||||||||||
Atwood Oceanics, Inc. (b) | 8,331 | 444,792 | |||||||||
CARBO Ceramics, Inc. | 2,909 | 338,986 | |||||||||
Dresser-Rand Group, Inc. (b) | 11,024 | 657,361 | |||||||||
Dril-Quip, Inc. (b) | 5,843 | 642,321 | |||||||||
Helix Energy Solutions Group, Inc. (b) | 14,218 | 329,573 | |||||||||
Oceaneering International, Inc. | 15,635 | 1,233,289 | |||||||||
Oil States International, Inc. (b) | 7,970 | 810,708 | |||||||||
Patterson-UTI Energy, Inc. | 20,842 | 527,720 | |||||||||
Superior Energy Services, Inc. (b) | 23,046 | 613,254 | |||||||||
Tidewater, Inc. | 7,124 | 422,240 | |||||||||
Unit Corp. (b) | 6,305 | 325,464 | |||||||||
6,345,708 | |||||||||||
Oil, Gas & Consumable Fuels (2.4%) | |||||||||||
Alpha Natural Resources, Inc. (b) | 31,929 | 227,973 | |||||||||
Bill Barrett Corp. (b) | 7,008 | 187,674 | |||||||||
Cimarex Energy Co. | 12,550 | 1,316,620 | |||||||||
Gulfport Energy Corp. (b) | 12,151 | 767,336 | |||||||||
HollyFrontier Corp. | 28,715 | 1,426,848 | |||||||||
Rosetta Resources, Inc. (b) | 8,853 | 425,298 | |||||||||
SM Energy Co. | 9,680 | 804,505 | |||||||||
World Fuel Services Corp. | 10,442 | 450,677 | |||||||||
5,606,931 | |||||||||||
Financial (21.5%) | |||||||||||
Capital Markets (2.6%) | |||||||||||
Affiliated Managers Group, Inc. (b) | 7,647 | 1,658,481 | |||||||||
Apollo Investment Corp. | 32,476 | 275,396 | |||||||||
Eaton Vance Corp. | 17,535 | 750,323 | |||||||||
Federated Investors, Inc. — Class B | 13,611 | 391,997 | |||||||||
Greenhill & Co., Inc. | 3,761 | 217,912 | |||||||||
Janus Capital Group, Inc. | 21,588 | 267,044 | |||||||||
Raymond James Financial, Inc. | 17,811 | 929,556 | |||||||||
SEI Investments Co. | 20,709 | 719,224 | |||||||||
Waddell & Reed Financial, Inc. — Class A | 12,343 | 803,776 | |||||||||
6,013,709 | |||||||||||
Commercial Banks (4.2%) | |||||||||||
Associated Banc-Corp | 23,486 | 408,656 | |||||||||
BancorpSouth, Inc. | 12,107 | 307,760 | |||||||||
Bank of Hawaii Corp. | 6,406 | 378,851 | |||||||||
Cathay General Bancorp | 10,624 | 283,979 |
Shares | Value(a) | ||||||||||
City National Corp. | 6,821 | $ | 540,360 | ||||||||
Commerce Bancshares, Inc. | 11,763 | 528,276 | |||||||||
Cullen/Frost Bankers, Inc. | 7,581 | 564,254 | |||||||||
East West Bancorp, Inc. | 19,904 | 696,043 | |||||||||
First Horizon National Corp. | 34,150 | 397,847 | |||||||||
FirstMerit Corp. | 23,851 | 530,208 | |||||||||
Fulton Financial Corp. | 27,810 | 363,755 | |||||||||
Hancock Holding Co. | 11,865 | 435,208 | |||||||||
International Bancshares Corp. | 8,254 | 217,823 | |||||||||
Prosperity Bancshares, Inc. | 8,225 | 521,383 | |||||||||
Signature Bank (b) | 6,827 | 733,356 | |||||||||
SVB Financial Group (b) | 6,576 | 689,559 | |||||||||
Synovus Financial Corp. | 140,497 | 505,789 | |||||||||
TCF Financial Corp. | 23,824 | 387,140 | |||||||||
Trustmark Corp. | 9,708 | 260,563 | |||||||||
Valley National Bancorp | 28,847 | 291,932 | |||||||||
Webster Financial Corp. | 13,055 | 407,055 | |||||||||
Westamerica Bancorporation | 3,834 | 216,468 | |||||||||
9,666,265 | |||||||||||
Diversified Financial Services (0.6%) | |||||||||||
CBOE Holdings, Inc. | 12,600 | 654,696 | |||||||||
MSCI, Inc. (b) | 17,110 | 748,049 | |||||||||
1,402,745 | |||||||||||
Diversified REIT's (0.3%) | |||||||||||
Liberty Property Trust | 21,183 | 717,468 | |||||||||
Insurance (4.9%) | |||||||||||
Alleghany Corp. (b) | 2,508 | 1,003,100 | |||||||||
American Financial Group, Inc. | 10,331 | 596,305 | |||||||||
Arthur J Gallagher & Co. | 19,008 | 892,045 | |||||||||
Aspen Insurance Holdings, Ltd. (c) | 9,483 | 391,743 | |||||||||
Brown & Brown, Inc. | 17,232 | 540,913 | |||||||||
Everest Re Group, Ltd. (c) | 6,922 | 1,078,932 | |||||||||
Fidelity National Financial, Inc. — Class A | 36,086 | 1,170,991 | |||||||||
First American Financial Corp. | 15,274 | 430,727 | |||||||||
HCC Insurance Holdings, Inc. | 14,479 | 668,061 | |||||||||
Kemper Corp. | 7,402 | 302,594 | |||||||||
Mercury General Corp. | 5,202 | 258,591 | |||||||||
Old Republic International Corp. | 34,941 | 603,431 | |||||||||
Primerica, Inc. | 7,915 | 339,633 | |||||||||
Protective Life Corp. | 11,353 | 575,143 | |||||||||
Reinsurance Group of America, Inc. | 10,200 | 789,582 | |||||||||
StanCorp Financial Group, Inc. | 6,357 | 421,151 | |||||||||
The Hanover Insurance Group, Inc. | 6,295 | 375,874 | |||||||||
WR Berkley Corp. | 15,808 | 685,909 | |||||||||
11,124,725 | |||||||||||
Office REIT's (2.1%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 10,351 | 658,531 | |||||||||
BioMed Realty Trust, Inc. | 27,761 | 503,029 | |||||||||
Corporate Office Properties Trust SBI | 12,627 | 299,134 | |||||||||
Duke Realty Corp. | 47,078 | 708,053 | |||||||||
Highwoods Properties, Inc. | 12,992 | 469,921 | |||||||||
Kilroy Realty Corp. | 11,802 | 592,224 | |||||||||
Mack-Cali Realty Corp. | 12,719 | 273,204 | |||||||||
SL Green Realty Corp. | 13,708 | 1,266,345 | |||||||||
4,770,441 |
See accompanying notes to financial statements.
34
Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Real Estate Management & Development (0.4%) | |||||||||||
Alexander & Baldwin, Inc. | 6,153 | $ | 256,765 | ||||||||
Jones Lang LaSalle, Inc. | 6,413 | 656,627 | |||||||||
913,392 | |||||||||||
Residential REIT's (2.0%) | |||||||||||
American Campus Communities, Inc. | 15,141 | 487,692 | |||||||||
BRE Properties, Inc. | 11,154 | 610,235 | |||||||||
Camden Property Trust | 12,327 | 701,160 | |||||||||
Essex Property Trust, Inc. | 5,475 | 785,717 | |||||||||
Home Properties, Inc. | 8,221 | 440,810 | |||||||||
Mid-America Apartment Communities, Inc. | 10,805 | 656,296 | |||||||||
UDR, Inc. | 36,233 | 846,040 | |||||||||
4,527,950 | |||||||||||
Retail REIT's (2.0%) | |||||||||||
Equity One, Inc. | 9,144 | 205,191 | |||||||||
Federal Realty Investment Trust | 9,399 | 953,153 | |||||||||
National Retail Properties, Inc. | 17,609 | 534,081 | |||||||||
Realty Income Corp. | 29,786 | 1,111,912 | |||||||||
Regency Centers Corp. | 13,341 | 617,688 | |||||||||
Taubman Centers, Inc. | 9,184 | 587,041 | |||||||||
Weingarten Realty Investors | 16,211 | 444,506 | |||||||||
4,453,572 | |||||||||||
Specialized REIT's (1.5%) | |||||||||||
Extra Space Storage, Inc. | 15,890 | 669,446 | |||||||||
Hospitality Properties Trust | 21,434 | 579,361 | |||||||||
Omega Healthcare Investors, Inc. | 17,705 | 527,609 | |||||||||
Potlatch Corp. | 5,809 | 242,468 | |||||||||
Rayonier, Inc. | 18,244 | 768,072 | |||||||||
Senior Housing Properties Trust | 27,191 | 604,456 | |||||||||
3,391,412 | |||||||||||
Thrifts & Mortgage Finance (0.9%) | |||||||||||
Astoria Financial Corp. | 12,143 | 167,938 | |||||||||
First Niagara Financial Group, Inc. | 51,150 | 543,213 | |||||||||
New York Community Bancorp, Inc. | 63,708 | 1,073,480 | |||||||||
Washington Federal, Inc. | 14,708 | 342,549 | |||||||||
2,127,180 | |||||||||||
Health Care (8.7%) | |||||||||||
Biotechnology (0.7%) | |||||||||||
Cubist Pharmaceuticals, Inc. (b) | 10,702 | 737,047 | |||||||||
United Therapeutics Corp. (b) | 6,714 | 759,219 | |||||||||
1,496,266 | |||||||||||
Health Care Equipment & Supplies (2.3%) | |||||||||||
Hill-Rom Holdings, Inc. | 8,477 | 350,439 | |||||||||
Hologic, Inc. (b) | 39,468 | 882,110 | |||||||||
IDEXX Laboratories, Inc. (b) | 7,499 | 797,669 | |||||||||
Masimo Corp. (b) | 7,357 | 215,045 | |||||||||
ResMed, Inc. | 20,531 | 966,600 | |||||||||
STERIS Corp. | 8,507 | 408,761 | |||||||||
Teleflex, Inc. | 5,990 | 562,222 | |||||||||
The Cooper Cos., Inc. | 7,073 | 875,920 | |||||||||
Thoratec Corp. (b) | 8,232 | 301,291 | |||||||||
5,360,057 |
Shares | Value(a) | ||||||||||
Health Care Providers & Services (3.2%) | |||||||||||
Community Health Systems, Inc. (b) | 13,724 | $ | 538,941 | ||||||||
Health Management Associates, Inc. — Class A (b) | 38,138 | 499,608 | |||||||||
Health Net, Inc. (b) | 11,489 | 340,878 | |||||||||
Henry Schein, Inc. (b) | 12,407 | 1,417,624 | |||||||||
HMS Holdings Corp. (b) | 12,756 | 289,944 | |||||||||
LifePoint Hospitals, Inc. (b) | 6,794 | 358,995 | |||||||||
Mednax, Inc. (b) | 14,542 | 776,252 | |||||||||
Omnicare, Inc. | 14,881 | 898,217 | |||||||||
Owens & Minor, Inc. | 9,121 | 333,464 | |||||||||
Universal Health Services, Inc. — Class B | 12,923 | 1,050,123 | |||||||||
VCA Antech, Inc. (b) | 12,824 | 402,161 | |||||||||
WellCare Health Plans, Inc. (b) | 6,283 | 442,449 | |||||||||
7,348,656 | |||||||||||
Health Care Technology (0.2%) | |||||||||||
Allscripts Healthcare Solutions, Inc. (b) | 22,951 | 354,822 | |||||||||
Life Sciences Tools & Services (1.3%) | |||||||||||
Bio-Rad Laboratories, Inc. — Class A (b) | 2,880 | 355,997 | |||||||||
Charles River Laboratories International, Inc. (b) | 6,953 | 368,787 | |||||||||
Covance, Inc. (b) | 8,090 | 712,405 | |||||||||
Mettler-Toledo International, Inc. (b) | 4,290 | 1,040,711 | |||||||||
Techne Corp. | 4,837 | 457,919 | |||||||||
2,935,819 | |||||||||||
Pharmaceuticals (1.0%) | |||||||||||
Endo Pharmaceuticals Holdings, Inc. (b) | 16,595 | 1,119,499 | |||||||||
Mallinckrodt PLC (b) (c) | 8,337 | 435,691 | |||||||||
Salix Pharmaceuticals, Ltd. (b) | 9,139 | 821,962 | |||||||||
2,377,152 | |||||||||||
Industrials (16.8%) | |||||||||||
Aerospace & Defense (1.8%) | |||||||||||
Alliant Techsystems, Inc. | 4,594 | 558,998 | |||||||||
BE Aerospace, Inc. (b) | 14,231 | 1,238,524 | |||||||||
Esterline Technologies Corp. (b) | 4,580 | 466,977 | |||||||||
Exelis, Inc. | 27,212 | 518,661 | |||||||||
Huntington Ingalls Industries, Inc. | 7,135 | 642,221 | |||||||||
Triumph Group, Inc. | 7,522 | 572,198 | |||||||||
3,997,579 | |||||||||||
Airlines (0.4%) | |||||||||||
Alaska Air Group, Inc. | 10,042 | 736,782 | |||||||||
JetBlue Airways Corp. (b) | 31,415 | 268,598 | |||||||||
1,005,380 | |||||||||||
Building Products (1.0%) | |||||||||||
AO Smith Corp. | 11,073 | 597,278 | |||||||||
Fortune Brands Home & Security, Inc. | 24,019 | 1,097,668 | |||||||||
Lennox International, Inc. | 6,582 | 559,865 | |||||||||
2,254,811 |
See accompanying notes to financial statements.
35
Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Commercial Services & Supplies (2.0%) | |||||||||||
Clean Harbors, Inc. (b) | 7,977 | $ | 478,301 | ||||||||
Copart, Inc. (b) | 16,146 | 591,751 | |||||||||
Corrections Corp. of America | 16,740 | 536,852 | |||||||||
Deluxe Corp. | 7,285 | 380,204 | |||||||||
Herman Miller, Inc. | 8,500 | 250,920 | |||||||||
HNI Corp. | 6,539 | 253,909 | |||||||||
Mine Safety Appliances Co. | 4,509 | 230,906 | |||||||||
Rollins, Inc. | 9,275 | 280,940 | |||||||||
RR Donnelley & Sons Co. | 26,256 | 532,472 | |||||||||
The Brink's Co. | 6,911 | 235,941 | |||||||||
Waste Connections, Inc. | 17,853 | 778,926 | |||||||||
4,551,122 | |||||||||||
Construction & Engineering (0.8%) | |||||||||||
Aecom Technology Corp. (b) | 14,188 | 417,553 | |||||||||
Granite Construction, Inc. | 5,179 | 181,161 | |||||||||
KBR, Inc. | 21,405 | 682,606 | |||||||||
URS Corp. | 10,821 | 573,405 | |||||||||
1,854,725 | |||||||||||
Electrical Equipment (1.2%) | |||||||||||
Acuity Brands, Inc. | 6,177 | 675,269 | |||||||||
General Cable Corp. | 7,131 | 209,723 | |||||||||
Hubbell, Inc. — Class B | 7,773 | 846,480 | |||||||||
Regal-Beloit Corp. | 6,504 | 479,475 | |||||||||
Woodward Governor Co. | 8,757 | 399,407 | |||||||||
2,610,354 | |||||||||||
Industrial Conglomerates (0.3%) | |||||||||||
Carlisle Cos., Inc. | 9,191 | 729,765 | |||||||||
Machinery (5.2%) | |||||||||||
AGCO Corp. | 13,084 | 774,442 | |||||||||
CLARCOR, Inc. | 7,213 | 464,156 | |||||||||
Crane Co. | 7,027 | 472,566 | |||||||||
Donaldson Co., Inc. | 19,441 | 844,906 | |||||||||
Graco, Inc. | 8,849 | 691,284 | |||||||||
Harsco Corp. | 11,656 | 326,718 | |||||||||
IDEX Corp. | 11,722 | 865,670 | |||||||||
ITT Corp. | 13,106 | 569,062 | |||||||||
Kennametal, Inc. | 11,309 | 588,860 | |||||||||
Lincoln Electric Holdings, Inc. | 11,794 | 841,384 | |||||||||
Nordson Corp. | 8,724 | 648,193 | |||||||||
Oshkosh Corp. | 12,484 | 628,944 | |||||||||
SPX Corp. | 6,544 | 651,848 | |||||||||
Terex Corp. | 16,098 | 675,955 | |||||||||
Timken Co. | 11,487 | 632,589 | |||||||||
Trinity Industries, Inc. | 11,284 | 615,204 | |||||||||
Valmont Industries, Inc. | 3,871 | 577,243 | |||||||||
Wabtec Corp. | 13,917 | 1,033,615 | |||||||||
11,902,639 | |||||||||||
Marine (0.4%) | |||||||||||
Kirby Corp. (b) | 8,203 | 814,148 | |||||||||
Matson, Inc. | 6,139 | 160,289 | |||||||||
974,437 | |||||||||||
Professional Services (1.2%) | |||||||||||
FTI Consulting, Inc. (b) | 5,811 | 239,064 | |||||||||
Manpower, Inc. | 11,374 | 976,572 | |||||||||
The Corporate Executive Board Co. | 4,865 | 376,697 |
Shares | Value(a) | ||||||||||
Tower Watson & Co. — Class A | 9,328 | $ | 1,190,346 | ||||||||
2,782,679 | |||||||||||
Road & Rail (1.4%) | |||||||||||
Con-way, Inc. | 8,168 | 324,351 | |||||||||
Genesee & Wyoming, Inc. — Class A (b) | 7,336 | 704,623 | |||||||||
JB Hunt Transport Services, Inc. | 13,283 | 1,026,776 | |||||||||
Landstar System, Inc. | 6,598 | 379,055 | |||||||||
Old Dominion Freight Line, Inc. (b) | 10,085 | 534,707 | |||||||||
Werner Enterprises, Inc. | 6,602 | 163,267 | |||||||||
3,132,779 | |||||||||||
Trading Companies & Distributors (1.0%) | |||||||||||
GATX Corp. | 6,671 | 348,026 | |||||||||
MSC Industrial Direct Co. — Class A | 6,961 | 562,936 | |||||||||
United Rentals, Inc. (b) | 13,473 | 1,050,220 | |||||||||
Watsco, Inc. | 3,909 | 375,499 | |||||||||
2,336,681 | |||||||||||
Transportation (0.1%) | |||||||||||
UTi Worldwide, Inc. (c) | 13,169 | 231,248 | |||||||||
Information Technology (15.4%) | |||||||||||
Communications Equipment (0.9%) | |||||||||||
ADTRAN, Inc. | 8,336 | 225,155 | |||||||||
Ciena Corp. (b) | 14,904 | 356,653 | |||||||||
InterDigital, Inc. | 5,896 | 173,873 | |||||||||
JDS Uniphase Corp. (b) | 33,646 | 436,725 | |||||||||
Plantronics, Inc. | 6,286 | 291,985 | |||||||||
Polycom, Inc. (b) | 20,655 | 231,955 | |||||||||
Riverbed Technology, Inc. (b) | 23,398 | 423,036 | |||||||||
2,139,382 | |||||||||||
Computers & Peripherals (1.2%) | |||||||||||
3D Systems Corp. (b) | 13,850 | 1,287,080 | |||||||||
Diebold, Inc. | 9,225 | 304,517 | |||||||||
Lexmark International, Inc. — Class A | 8,973 | 318,721 | |||||||||
NCR Corp. (b) | 24,045 | 818,973 | |||||||||
2,729,291 | |||||||||||
Electronic Equipment, Instruments & Components (2.1%) | |||||||||||
Arrow Electronics, Inc. (b) | 14,558 | 789,772 | |||||||||
Avnet, Inc. (d) | 19,880 | 876,907 | |||||||||
Ingram Micro, Inc. — Class A (b) | 22,274 | 522,548 | |||||||||
Itron, Inc. (b) | 5,593 | 231,718 | |||||||||
National Instruments Corp. | 14,107 | 451,706 | |||||||||
Tech Data Corp. (b) | 5,434 | 280,394 | |||||||||
Trimble Navigation, Ltd. (b) | 37,259 | 1,292,887 | |||||||||
Vishay Intertechnology, Inc. (b) | 19,579 | 259,618 | |||||||||
4,705,550 | |||||||||||
Internet Software & Services (1.2%) | |||||||||||
AOL, Inc. (b) | 11,252 | 524,568 | |||||||||
Equinix, Inc. (b) | 7,234 | 1,283,673 | |||||||||
Rackspace Hosting, Inc. (b) | 16,567 | 648,267 | |||||||||
ValueClick, Inc. (b) | 9,068 | 211,919 | |||||||||
2,668,427 |
See accompanying notes to financial statements.
36
Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
IT Services (3.0%) | |||||||||||
Acxiom Corp. (b) | 10,854 | $ | 401,381 | ||||||||
Broadridge Financial Solutions, Inc. | 17,222 | 680,613 | |||||||||
Convergys Corp. | 14,698 | 309,393 | |||||||||
CoreLogic, Inc. (b) | 13,543 | 481,183 | |||||||||
DST Systems, Inc. | 4,266 | 387,097 | |||||||||
Gartner, Inc. — Class A (b) | 13,320 | 946,386 | |||||||||
Global Payments, Inc. | 10,533 | 684,540 | |||||||||
Jack Henry & Associates, Inc. | 12,367 | 732,250 | |||||||||
Leidos Holdings, Inc. | 10,524 | 489,261 | |||||||||
Lender Processing Services, Inc. | 12,343 | 461,381 | |||||||||
Mantech International Corp. — Class A | 3,370 | 100,864 | |||||||||
NeuStar, Inc. — Class A (b) | 9,049 | 451,183 | |||||||||
Science Applications International Corp. | 5,996 | 198,288 | |||||||||
WEX, Inc. (b) | 5,594 | 553,974 | |||||||||
6,877,794 | |||||||||||
Office Electronics (0.2%) | |||||||||||
Zebra Technologies Corp. — Class A (b) | 7,264 | 392,837 | |||||||||
Semiconductors & Semiconductor Equipment (2.4%) | |||||||||||
Advanced Micro Devices, Inc. (b) | 88,891 | 344,008 | |||||||||
Atmel Corp. (b) | 61,540 | 481,858 | |||||||||
Cree, Inc. (b) | 17,442 | 1,091,346 | |||||||||
Cypress Semiconductor Corp. (b) | 20,026 | 210,273 | |||||||||
Fairchild Semiconductor International, Inc. (b) | 18,353 | 245,013 | |||||||||
Integrated Device Technology, Inc. (b) | 19,889 | 202,669 | |||||||||
International Rectifier Corp. (b) | 10,274 | 267,843 | |||||||||
Intersil Corp. — Class A | 18,451 | 211,633 | |||||||||
RF Micro Devices, Inc. (b) | 40,800 | 210,528 | |||||||||
Semtech Corp. (b) | 9,874 | 249,615 | |||||||||
Silicon Laboratories, Inc. (b) | 5,704 | 247,040 | |||||||||
Skyworks Solutions, Inc. (b) | 27,129 | 774,805 | |||||||||
SunEdison, Inc. (b) | 35,443 | 462,531 | |||||||||
Teradyne, Inc. (b) | 27,689 | 487,880 | |||||||||
5,487,042 | |||||||||||
Software (4.4%) | |||||||||||
ACI Worldwide, Inc. (b) | 5,570 | 362,050 | |||||||||
Advent Software, Inc. | 5,826 | 203,852 | |||||||||
ANSYS, Inc. (b) | 13,390 | 1,167,608 | |||||||||
Cadence Design Systems, Inc. (b) | 41,515 | 582,040 | |||||||||
CommVault Systems, Inc. (b) | 6,438 | 482,077 | |||||||||
Compuware Corp. | 31,298 | 350,850 | |||||||||
Concur Technologies, Inc. (b) | 6,798 | 701,418 | |||||||||
Factset Research Systems, Inc. | 5,781 | 627,701 | |||||||||
Fair Isaac Corp. | 4,995 | 313,886 | |||||||||
Informatica Corp. (b) | 15,680 | 650,720 | |||||||||
Mentor Graphics Corp. | 14,012 | 337,269 | |||||||||
MICROS Systems, Inc. (b) | 10,879 | 624,128 | |||||||||
PTC, Inc. (b) | 17,267 | 611,079 | |||||||||
Rovi Corp. (b) | 14,767 | 290,762 | |||||||||
Solarwinds, Inc. (b) | 9,448 | 357,418 | |||||||||
Solera Holdings, Inc. | 9,950 | 704,062 |
Shares | Value(a) | ||||||||||
Synopsys, Inc. (b) | 22,312 | $ | 905,198 | ||||||||
TIBCO Software, Inc. (b) | 22,148 | 497,887 | |||||||||
VeriFone Systems, Inc. (b) | 15,785 | 423,354 | |||||||||
10,193,359 | |||||||||||
Materials (6.9%) | |||||||||||
Chemicals (2.8%) | |||||||||||
Albemarle Corp. | 11,763 | 745,656 | |||||||||
Ashland, Inc. | 10,417 | 1,010,866 | |||||||||
Cabot Corp. | 8,604 | 442,246 | |||||||||
Cytec Industries, Inc. | 5,125 | 477,445 | |||||||||
Intrepid Potash, Inc. (b) | 7,992 | 126,593 | |||||||||
Minerals Technologies, Inc. | 4,966 | 298,308 | |||||||||
NewMarket Corp. | 1,733 | 579,082 | |||||||||
Olin Corp. | 11,498 | 331,717 | |||||||||
RPM International, Inc. | 19,211 | 797,449 | |||||||||
Sensient Technologies Corp. | 7,233 | 350,945 | |||||||||
The Scotts Miracle-Gro Co. — Class A | 6,339 | 394,413 | |||||||||
Valspar Corp. | 11,649 | 830,457 | |||||||||
6,385,177 | |||||||||||
Construction Materials (0.5%) | |||||||||||
Eagle Materials, Inc. | 7,165 | 554,786 | |||||||||
Martin Marietta Materials, Inc. | 6,673 | 666,900 | |||||||||
1,221,686 | |||||||||||
Containers & Packaging (1.7%) | |||||||||||
Aptargroup, Inc. | 9,516 | 645,280 | |||||||||
Greif, Inc. — Class A | 4,394 | 230,246 | |||||||||
Packaging Corp. of America | 14,172 | 896,804 | |||||||||
Rock-Tenn Co. — Class A | 10,410 | 1,093,154 | |||||||||
Silgan Holdings, Inc. | 6,311 | 303,054 | |||||||||
Sonoco Products Co. | 14,717 | 613,993 | |||||||||
3,782,531 | |||||||||||
Metals & Mining (1.5%) | |||||||||||
Carpenter Technology Corp. | 7,650 | 475,830 | |||||||||
Commercial Metals Co. | 16,910 | 343,780 | |||||||||
Compass Minerals International, Inc. | 4,856 | 388,723 | |||||||||
Reliance Steel & Aluminum Co. | 11,177 | 847,664 | |||||||||
Royal Gold, Inc. | 9,409 | 433,473 | |||||||||
Steel Dynamics, Inc. | 32,078 | 626,804 | |||||||||
Worthington Industries, Inc. | 7,630 | 321,070 | |||||||||
3,437,344 | |||||||||||
Paper & Forest Products (0.4%) | |||||||||||
Domtar Corp. (c) | 4,660 | 439,624 | |||||||||
Louisiana-Pacific Corp. (b) | 20,392 | 377,456 | |||||||||
817,080 | |||||||||||
Telecommunication Services (0.4%) | |||||||||||
Diversified Telecommunication Services (0.3%) | |||||||||||
tw telecom, Inc. (b) | 20,818 | 634,324 | |||||||||
Wireless Telecommunication Services (0.1%) | |||||||||||
Telephone & Data Systems, Inc. | 14,266 | 367,778 |
See accompanying notes to financial statements.
37
Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Utilities (4.5%) | |||||||||||
Electric Utilities (1.1%) | |||||||||||
Cleco Corp. | 8,735 | $ | 407,226 | ||||||||
Great Plains Energy, Inc. | 22,185 | 537,764 | |||||||||
Hawaiian Electric Industries, Inc. | 14,393 | 375,082 | |||||||||
IDACORP, Inc. | 7,259 | 376,306 | |||||||||
PNM Resources, Inc. | 11,510 | 277,621 | |||||||||
Westar Energy, Inc. | 18,374 | 591,092 | |||||||||
2,565,091 | |||||||||||
Gas Utilities (1.6%) | |||||||||||
Atmos Energy Corp. | 13,137 | 596,682 | |||||||||
Energen Corp. | 10,485 | 741,814 | |||||||||
National Fuel Gas Co. | 12,094 | 863,512 | |||||||||
Questar Corp. | 25,298 | 581,601 | |||||||||
UGI Corp. | 16,487 | 683,551 | |||||||||
WGL Holdings, Inc. | 7,476 | 299,488 | |||||||||
3,766,648 | |||||||||||
Multi-Utilities (1.5%) | |||||||||||
Alliant Energy Corp. | 16,032 | 827,251 | |||||||||
Black Hills Corp. | 6,375 | 334,751 | |||||||||
MDU Resources Group, Inc. | 27,287 | 833,618 | |||||||||
OGE Energy Corp. | 28,677 | 972,150 | |||||||||
Vectren Corp. | 11,901 | 422,486 | |||||||||
3,390,256 | |||||||||||
Water Utilities (0.3%) | |||||||||||
Aqua America, Inc. | 25,535 | 602,371 | |||||||||
Total common stocks (cost: $138,870,453) | 221,713,423 | ||||||||||
Short-Term Securities (3.1%) | |||||||||||
Investment Companies (3.1%) | |||||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 7,111,725 | 7,111,725 | |||||||||
Total short-term securities (cost: $7,111,725) | 7,111,725 | ||||||||||
Total investments in securities (cost: $145,982,178) (e) | 228,825,148 | ||||||||||
Liabilities in excess of cash and other assets (-0.1%) | (139,099 | ) | |||||||||
Total net assets (100.0%) | $ | 228,686,049 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Non-income producing security.
(c) Foreign security: The Fund held 1.5% of net assets in foreign securities at December 31, 2013.
(d) Fully or partially pledged as initial margin deposits on open futures contracts.
|
Holdings of Open Futures Contracts
On December 31, 2013, securities with an aggregate market value of $705,760 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
S&P Mid 400® E-Mini Index Future | March 2014 | 51 | Long | $ | 146,611 | ||||||||||||||
51 | $ | 146,611 |
(e) At December 31, 2013 the cost of securities for federal income tax purposes was $146,650,293. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 86,308,030 | |||||
Gross unrealized depreciation | (4,133,175 | ) | |||||
Net unrealized appreciation | $ | 82,174,855 |
See accompanying notes to financial statements.
38
Advantus Index 500 Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.5%) | |||||||||||
Consumer Discretionary (12.4%) | |||||||||||
Auto Components (0.4%) | |||||||||||
BorgWarner, Inc. | 7,759 | $ | 433,806 | ||||||||
Delphi Automotive PLC (b) | 9,548 | 574,121 | |||||||||
Johnson Controls, Inc. | 23,308 | 1,195,700 | |||||||||
The Goodyear Tire & Rubber Co. | 8,394 | 200,197 | |||||||||
2,403,824 | |||||||||||
Automobiles (0.7%) | |||||||||||
Ford Motor Co. | 134,503 | 2,075,382 | |||||||||
General Motors Co. (c) | 38,838 | 1,587,309 | |||||||||
Harley-Davidson, Inc. | 7,534 | 521,654 | |||||||||
4,184,345 | |||||||||||
Distributors (0.1%) | |||||||||||
Genuine Parts Co. | 5,297 | 440,658 | |||||||||
Diversified Consumer Services (0.0%) | |||||||||||
H&R Block, Inc. | 9,294 | 269,898 | |||||||||
Hotels, Restaurants & Leisure (1.7%) | |||||||||||
Carnival Corp. | 14,916 | 599,176 | |||||||||
Chipotle Mexican Grill, Inc. (c) | 1,050 | 559,419 | |||||||||
Darden Restaurants, Inc. | 4,424 | 240,533 | |||||||||
International Game Technology | 8,487 | 154,124 | |||||||||
Marriott International, Inc. — Class A | 7,660 | 378,097 | |||||||||
McDonald's Corp. | 33,930 | 3,292,228 | |||||||||
Starbucks Corp. | 25,675 | 2,012,663 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 6,530 | 518,808 | |||||||||
Wyndham Worldwide Corp. | 4,443 | 327,405 | |||||||||
Wynn Resorts, Ltd. | 2,767 | 537,379 | |||||||||
Yum! Brands, Inc. | 15,185 | 1,148,138 | |||||||||
9,767,970 | |||||||||||
Household Durables (0.5%) | |||||||||||
DR Horton, Inc. | 9,645 | 215,276 | |||||||||
Garmin, Ltd. (b) | 4,121 | 190,473 | |||||||||
Harman International Industries, Inc. | 2,323 | 190,138 | |||||||||
Leggett & Platt, Inc. | 4,783 | 147,986 | |||||||||
Lennar Corp. — Class A | 5,647 | 223,395 | |||||||||
Mohawk Industries, Inc. (c) | 2,080 | 309,712 | |||||||||
Newell Rubbermaid, Inc. | 9,697 | 314,280 | |||||||||
PulteGroup, Inc. | 11,755 | 239,449 | |||||||||
Stanley Black & Decker, Inc. | 5,293 | 427,092 | |||||||||
Whirlpool Corp. | 2,677 | 419,914 | |||||||||
2,677,715 | |||||||||||
Internet & Catalog Retail (1.5%) | |||||||||||
Amazon.com, Inc. (c) | 12,695 | 5,062,639 | |||||||||
Expedia, Inc. | 3,511 | 244,576 | |||||||||
Netflix, Inc. (c) | 2,026 | 745,913 | |||||||||
priceline.com, Inc. (c) | 1,782 | 2,071,397 | |||||||||
TripAdvisor, Inc. (c) | 3,764 | 311,772 | |||||||||
8,436,297 |
Shares | Value(a) | ||||||||||
Leisure Equipment & Products (0.1%) | |||||||||||
Hasbro, Inc. | 3,919 | $ | 215,584 | ||||||||
Mattel, Inc. | 11,540 | 549,073 | |||||||||
764,657 | |||||||||||
Media (3.8%) | |||||||||||
Cablevision Systems Corp. | 7,237 | 129,759 | |||||||||
CBS Corp. — Class B | 19,030 | 1,212,972 | |||||||||
Comcast Corp. — Class A | 88,862 | 4,617,714 | |||||||||
DIRECTV (c) | 16,663 | 1,151,247 | |||||||||
Discovery Communications, Inc. (c) | 7,695 | 695,782 | |||||||||
Gannett Co., Inc. | 7,760 | 229,541 | |||||||||
Graham Holdings Co. — Class B | 170 | 112,764 | |||||||||
Interpublic Group of Cos., Inc. | 14,193 | 251,216 | |||||||||
News Corp. — Class A (c) | 16,944 | 305,331 | |||||||||
Omnicom Group, Inc. | 8,742 | 650,142 | |||||||||
Scripps Networks Interactive, Inc. — Class A | 3,753 | 324,297 | |||||||||
The McGraw-Hill Cos., Inc. | 9,234 | 722,099 | |||||||||
The Walt Disney Co. | 55,728 | 4,257,619 | |||||||||
Time Warner Cable, Inc. — Class A | 9,612 | 1,302,426 | |||||||||
Time Warner, Inc. | 30,850 | 2,150,862 | |||||||||
Twenty-First Century Fox, Inc. | 66,915 | 2,354,070 | |||||||||
Viacom, Inc. — Class B | 13,823 | 1,207,301 | |||||||||
21,675,142 | |||||||||||
Multiline Retail (0.7%) | |||||||||||
Dollar General Corp. (c) | 10,047 | 606,035 | |||||||||
Dollar Tree, Inc. (c) | 7,046 | 397,535 | |||||||||
Family Dollar Stores, Inc. | 3,299 | 214,336 | |||||||||
Kohl's Corp. | 6,864 | 389,532 | |||||||||
Macy's, Inc. | 12,565 | 670,971 | |||||||||
Nordstrom, Inc. | 4,847 | 299,545 | |||||||||
Target Corp. | 21,549 | 1,363,405 | |||||||||
3,941,359 | |||||||||||
Specialty Retail (2.1%) | |||||||||||
AutoNation, Inc. (c) | 2,106 | 104,647 | |||||||||
AutoZone, Inc. (c) | 1,162 | 555,366 | |||||||||
Bed Bath & Beyond, Inc. (c) | 7,323 | 588,037 | |||||||||
Best Buy Co., Inc. | 9,254 | 369,049 | |||||||||
CarMax, Inc. (c) | 7,591 | 356,929 | |||||||||
GameStop Corp. — Class A | 3,945 | 194,331 | |||||||||
Home Depot, Inc. | 48,020 | 3,953,967 | |||||||||
L Brands, Inc. | 8,254 | 510,510 | |||||||||
Lowe's Cos., Inc. | 35,662 | 1,767,052 | |||||||||
O'Reilly Automotive, Inc. (c) | 3,707 | 477,128 | |||||||||
PetSmart, Inc. | 3,539 | 257,462 | |||||||||
Ross Stores, Inc. | 7,407 | 555,006 | |||||||||
Staples, Inc. | 22,522 | 357,875 | |||||||||
The Gap, Inc. | 9,032 | 352,971 | |||||||||
Tiffany & Co. | 3,774 | 350,152 | |||||||||
TJX Cos., Inc. | 24,251 | 1,545,516 | |||||||||
Urban Outfitters, Inc. (c) | 3,643 | 135,155 | |||||||||
12,431,153 |
See accompanying notes to financial statements.
39
Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Textiles, Apparel & Luxury Goods (0.8%) | |||||||||||
Coach, Inc. | 9,504 | $ | 533,459 | ||||||||
Fossil Group, Inc. (c) | 1,713 | 205,457 | |||||||||
Michael Kors Holdings, Ltd. (b) (c) | 6,130 | 497,695 | |||||||||
NIKE, Inc. — Class B | 25,480 | 2,003,747 | |||||||||
PVH Corp. | 2,776 | 377,592 | |||||||||
Ralph Lauren Corp. | 2,033 | 358,967 | |||||||||
VF Corp. | 12,012 | 748,828 | |||||||||
4,725,745 | |||||||||||
Consumer Staples (9.5%) | |||||||||||
Beverages (2.1%) | |||||||||||
Beam, Inc. | 5,584 | 380,047 | |||||||||
Brown-Forman Corp. — Class B | 5,474 | 413,670 | |||||||||
Coca-Cola Enterprises, Inc. | 8,233 | 363,322 | |||||||||
Constellation Brands, Inc. — Class A (c) | 5,689 | 400,392 | |||||||||
Dr Pepper Snapple Group, Inc. | 6,841 | 333,294 | |||||||||
Molson Coors Brewing Co. — Class B | 5,338 | 299,729 | |||||||||
Monster Beverage Corp. (c) | 4,651 | 315,198 | |||||||||
PepsiCo, Inc. | 52,295 | 4,337,347 | |||||||||
The Coca-Cola Co. | 129,499 | 5,349,604 | |||||||||
12,192,603 | |||||||||||
Food & Staples Retailing (2.3%) | |||||||||||
Costco Wholesale Corp. | 14,899 | 1,773,130 | |||||||||
CVS Caremark Corp. | 40,587 | 2,904,812 | |||||||||
Safeway, Inc. | 8,415 | 274,076 | |||||||||
Sysco Corp. | 19,831 | 715,899 | |||||||||
The Kroger Co. | 17,734 | 701,025 | |||||||||
Wal-Mart Stores, Inc. | 55,169 | 4,341,249 | |||||||||
Walgreen Co. | 29,696 | 1,705,738 | |||||||||
Whole Foods Market, Inc. | 12,678 | 733,169 | |||||||||
13,149,098 | |||||||||||
Food Products (1.5%) | |||||||||||
Archer-Daniels-Midland Co. | 22,428 | 973,375 | |||||||||
Campbell Soup Co. | 6,030 | 260,978 | |||||||||
ConAgra Foods, Inc. | 14,378 | 484,539 | |||||||||
General Mills, Inc. | 21,628 | 1,079,453 | |||||||||
Hormel Foods Corp. | 4,498 | 203,175 | |||||||||
Kellogg Co. | 8,727 | 532,958 | |||||||||
Kraft Foods Group, Inc. | 20,269 | 1,092,904 | |||||||||
McCormick & Co., Inc. | 4,438 | 305,867 | |||||||||
Mead Johnson Nutrition Co. | 6,927 | 580,205 | |||||||||
Mondelez International, Inc. — Class A | 59,803 | 2,111,046 | |||||||||
The Hershey Co. | 5,135 | 499,276 | |||||||||
The JM Smucker Co. | 3,569 | 369,820 | |||||||||
Tyson Foods, Inc. — Class A | 9,262 | 309,907 | |||||||||
8,803,503 | |||||||||||
Household Products (1.9%) | |||||||||||
Clorox Co. | 4,379 | 406,196 | |||||||||
Colgate-Palmolive Co. | 29,972 | 1,954,474 | |||||||||
Kimberly-Clark Corp. | 13,014 | 1,359,442 | |||||||||
The Procter & Gamble Co. | 92,690 | 7,545,893 | |||||||||
11,266,005 |
Shares | Value(a) | ||||||||||
Personal Care (0.2%) | |||||||||||
Avon Products, Inc. | 14,787 | $ | 254,632 | ||||||||
The Estee Lauder Cos., Inc. — Class A | 8,671 | 653,100 | |||||||||
907,732 | |||||||||||
Tobacco (1.5%) | |||||||||||
Altria Group, Inc. | 68,199 | 2,618,160 | |||||||||
Lorillard, Inc. | 12,561 | 636,592 | |||||||||
Philip Morris International, Inc. | 54,633 | 4,760,173 | |||||||||
Reynolds American, Inc. | 10,688 | 534,293 | |||||||||
8,549,218 | |||||||||||
Energy (10.0%) | |||||||||||
Energy Equipment & Services (1.8%) | |||||||||||
Baker Hughes, Inc. | 15,113 | 835,144 | |||||||||
Cameron International Corp. (c) | 8,111 | 482,848 | |||||||||
Diamond Offshore Drilling, Inc. | 2,296 | 130,688 | |||||||||
Ensco PLC — Class A (b) | 7,951 | 454,638 | |||||||||
FMC Technologies, Inc. (c) | 8,032 | 419,351 | |||||||||
Halliburton Co. | 28,906 | 1,466,980 | |||||||||
Helmerich & Payne, Inc. | 3,635 | 305,631 | |||||||||
Nabors Industries, Ltd. (b) | 8,806 | 149,614 | |||||||||
National Oilwell Varco, Inc. | 14,594 | 1,160,660 | |||||||||
Noble Corp. PLC (b) | 8,544 | 320,144 | |||||||||
Rowan Cos. PLC (c) | 4,150 | 146,744 | |||||||||
Schlumberger, Ltd. | 44,908 | 4,046,660 | |||||||||
Transocean, Ltd. (b) | 11,520 | 569,318 | |||||||||
10,488,420 | |||||||||||
Oil, Gas & Consumable Fuels (8.2%) | |||||||||||
Anadarko Petroleum Corp. | 17,123 | 1,358,196 | |||||||||
Apache Corp. | 13,614 | 1,169,987 | |||||||||
Cabot Oil & Gas Corp. — Class A | 14,296 | 554,113 | |||||||||
Chesapeake Energy Corp. | 17,236 | 467,785 | |||||||||
Chevron Corp. | 65,580 | 8,191,598 | |||||||||
ConocoPhillips | 41,775 | 2,951,404 | |||||||||
Consol Energy, Inc. | 7,803 | 296,826 | |||||||||
Denbury Resources, Inc. (c) | 12,503 | 205,424 | |||||||||
Devon Energy Corp. | 12,991 | 803,753 | |||||||||
EOG Resources, Inc. | 9,295 | 1,560,073 | |||||||||
EQT Corp. | 5,149 | 462,277 | |||||||||
Exxon Mobil Corp. | 148,965 | 15,075,258 | |||||||||
Hess Corp. | 9,699 | 805,017 | |||||||||
Kinder Morgan, Inc. | 22,959 | 826,524 | |||||||||
Marathon Oil Corp. | 23,754 | 838,516 | |||||||||
Marathon Petroleum Corp. | 10,265 | 941,608 | |||||||||
Murphy Oil Corp. | 5,927 | 384,544 | |||||||||
Newfield Exploration Co. (c) | 4,625 | 113,914 | |||||||||
Noble Energy, Inc. | 12,184 | 829,852 | |||||||||
Occidental Petroleum Corp. | 27,486 | 2,613,919 | |||||||||
Peabody Energy Corp. | 9,123 | 178,172 | |||||||||
Phillips 66 | 20,444 | 1,576,846 | |||||||||
Pioneer Natural Resources Co. | 4,878 | 897,893 | |||||||||
QEP Resources, Inc. | 6,107 | 187,180 | |||||||||
Range Resources Corp. | 5,570 | 469,607 | |||||||||
Southwestern Energy Co. (c) | 11,908 | 468,342 | |||||||||
Spectra Energy Corp. | 22,848 | 813,846 | |||||||||
Tesoro Corp. | 4,500 | 263,250 | |||||||||
The Williams Cos., Inc. | 23,304 | 898,835 | |||||||||
Valero Energy Corp. | 18,398 | 927,259 | |||||||||
WPX Energy, Inc. (c) | 6,846 | 139,522 | |||||||||
47,271,340 |
See accompanying notes to financial statements.
40
Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Financial (15.7%) | |||||||||||
Capital Markets (2.2%) | |||||||||||
Ameriprise Financial, Inc. | 6,634 | $ | 763,242 | ||||||||
BlackRock, Inc. | 4,411 | 1,395,949 | |||||||||
E*Trade Financial Corp. (c) | 9,761 | 191,706 | |||||||||
Franklin Resources, Inc. | 13,767 | 794,769 | |||||||||
Invesco, Ltd. | 15,029 | 547,056 | |||||||||
Legg Mason, Inc. | 3,618 | 157,311 | |||||||||
Morgan Stanley | 47,243 | 1,481,541 | |||||||||
Northern Trust Corp. | 7,643 | 473,025 | |||||||||
State Street Corp. | 14,970 | 1,098,648 | |||||||||
T Rowe Price Group, Inc. | 8,860 | 742,202 | |||||||||
The Bank of New York Mellon Corp. | 39,164 | 1,368,390 | |||||||||
The Charles Schwab Corp. | 39,565 | 1,028,690 | |||||||||
The Goldman Sachs Group, Inc. | 14,428 | 2,557,507 | |||||||||
12,600,036 | |||||||||||
Commercial Banks (2.7%) | |||||||||||
BB&T Corp. | 24,037 | 897,061 | |||||||||
Comerica, Inc. | 6,219 | 295,651 | |||||||||
Fifth Third Bancorp | 30,104 | 633,087 | |||||||||
Huntington Bancshares, Inc. | 28,320 | 273,288 | |||||||||
KeyCorp | 30,576 | 410,330 | |||||||||
M&T Bank Corp. | 4,461 | 519,350 | |||||||||
PNC Financial Services Group, Inc. | 18,145 | 1,407,689 | |||||||||
Regions Financial Corp. | 46,974 | 464,573 | |||||||||
SunTrust Banks, Inc. | 18,252 | 671,856 | |||||||||
US Bancorp | 62,276 | 2,515,950 | |||||||||
Wells Fargo & Co. | 163,456 | 7,420,903 | |||||||||
Zions Bancorporation | 6,200 | 185,752 | |||||||||
15,695,490 | |||||||||||
Consumer Finance (1.0%) | |||||||||||
American Express Co. | 31,416 | 2,850,374 | |||||||||
Capital One Financial Corp. | 19,660 | 1,506,153 | |||||||||
Discover Financial Services | 16,333 | 913,831 | |||||||||
SLM Corp. | 14,862 | 390,573 | |||||||||
5,660,931 | |||||||||||
Diversified Financial Services (3.7%) | |||||||||||
Bank of America Corp. | 363,710 | 5,662,965 | |||||||||
Citigroup, Inc. | 103,424 | 5,389,425 | |||||||||
CME Group, Inc. | 10,779 | 845,720 | |||||||||
IntercontinentalExchange Group, Inc. | 3,940 | 886,185 | |||||||||
JPMorgan Chase & Co. | 128,186 | 7,496,320 | |||||||||
Leucadia National Corp. | 10,650 | 301,821 | |||||||||
Moody's Corp. | 6,454 | 506,445 | |||||||||
The NASDAQ OMX Group, Inc. | 3,923 | 156,135 | |||||||||
21,245,016 | |||||||||||
Diversified REIT's (0.1%) | |||||||||||
Vornado Realty Trust | 5,965 | 529,632 | |||||||||
Industrial REIT's (0.1%) | |||||||||||
ProLogis, Inc. | 16,964 | 626,820 | |||||||||
Insurance (4.2%) | |||||||||||
ACE, Ltd. (b) | 11,596 | 1,200,534 | |||||||||
Aflac, Inc. | 15,900 | 1,062,120 |
Shares | Value(a) | ||||||||||
American International Group, Inc. | 50,206 | $ | 2,563,016 | ||||||||
Aon PLC (b) | 10,266 | 861,215 | |||||||||
Assurant, Inc. | 2,479 | 164,531 | |||||||||
Berkshire Hathaway, Inc. — Class B (c) | 61,380 | 7,277,213 | |||||||||
Chubb Corp. | 8,585 | 829,569 | |||||||||
Cincinnati Financial Corp. | 5,025 | 263,159 | |||||||||
Genworth Financial, Inc. — Class A (c) | 16,854 | 261,743 | |||||||||
Hartford Financial Services Group, Inc. | 15,245 | 552,326 | |||||||||
Lincoln National Corp. | 8,945 | 461,741 | |||||||||
Loews Corp. | 10,390 | 501,214 | |||||||||
Marsh & McLennan Cos., Inc. | 18,713 | 904,961 | |||||||||
MetLife, Inc. | 38,227 | 2,061,200 | |||||||||
Principal Financial Group, Inc. | 9,334 | 460,260 | |||||||||
Prudential Financial, Inc. | 15,788 | 1,455,969 | |||||||||
The Allstate Corp. | 15,510 | 845,915 | |||||||||
The Progressive Corp. | 18,805 | 512,812 | |||||||||
The Travelers Cos., Inc. | 12,415 | 1,124,054 | |||||||||
Torchmark Corp. | 3,103 | 242,500 | |||||||||
Unum Group | 8,905 | 312,387 | |||||||||
XL Group PLC (b) | 9,643 | 307,033 | |||||||||
24,225,472 | |||||||||||
Office REIT's (0.1%) | |||||||||||
Boston Properties, Inc. | 5,187 | 520,619 | |||||||||
Real Estate Services (0.0%) | |||||||||||
CBRE Group, Inc. (c) | 9,411 | 247,509 | |||||||||
Residential REIT's (0.2%) | |||||||||||
Apartment Investment & Management Co. — Class A | 4,888 | 126,648 | |||||||||
AvalonBay Communities, Inc. | 4,141 | 489,590 | |||||||||
Equity Residential | 11,395 | 591,059 | |||||||||
1,207,297 | |||||||||||
Retail REIT's (0.4%) | |||||||||||
General Growth Properties, Inc. | 18,331 | 367,903 | |||||||||
Kimco Realty Corp. | 13,952 | 275,552 | |||||||||
Simon Property Group, Inc. | 10,630 | 1,617,461 | |||||||||
The Macerich Co. | 4,721 | 278,020 | |||||||||
2,538,936 | |||||||||||
Specialized REIT's (0.9%) | |||||||||||
American Tower Corp. | 13,415 | 1,070,785 | |||||||||
HCP, Inc. | 15,511 | 563,360 | |||||||||
Health Care REIT, Inc. | 9,842 | 527,236 | |||||||||
Host Hotels & Resorts, Inc. | 25,728 | 500,152 | |||||||||
Plum Creek Timber Co., Inc. | 5,992 | 278,688 | |||||||||
Public Storage | 4,939 | 743,418 | |||||||||
Ventas, Inc. | 9,986 | 571,998 | |||||||||
Weyerhaeuser Co. | 19,872 | 627,349 | |||||||||
4,882,986 | |||||||||||
Thrifts & Mortgage Finance (0.1%) | |||||||||||
Hudson City Bancorp, Inc. | 16,161 | 152,398 | |||||||||
People's United Financial, Inc. | 10,836 | 163,841 | |||||||||
316,239 |
See accompanying notes to financial statements.
41
Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Health Care (12.6%) | |||||||||||
Biotechnology (2.4%) | |||||||||||
Alexion Pharmaceuticals, Inc. (c) | 6,677 | $ | 888,442 | ||||||||
Amgen, Inc. | 25,715 | 2,935,624 | |||||||||
Biogen Idec, Inc. (c) | 8,055 | 2,253,386 | |||||||||
Celgene Corp. (c) | 14,108 | 2,383,688 | |||||||||
Gilead Sciences, Inc. (c) | 52,286 | 3,929,293 | |||||||||
Regeneron Pharmaceuticals, Inc. (c) | 2,730 | 751,405 | |||||||||
Vertex Pharmaceuticals, Inc. (c) | 7,980 | 592,914 | |||||||||
13,734,752 | |||||||||||
Health Care Equipment & Supplies (1.6%) | |||||||||||
Baxter International, Inc. | 18,506 | 1,287,092 | |||||||||
Becton Dickinson and Co. | 6,634 | 732,991 | |||||||||
Boston Scientific Corp. (c) | 45,530 | 547,271 | |||||||||
CareFusion Corp. (c) | 7,206 | 286,943 | |||||||||
Covidien PLC (b) | 15,679 | 1,067,740 | |||||||||
CR Bard, Inc. | 2,715 | 363,647 | |||||||||
DENTSPLY International, Inc. | 4,786 | 232,025 | |||||||||
Edwards Lifesciences Corp. (c) | 3,703 | 243,509 | |||||||||
Intuitive Surgical, Inc. (c) | 1,298 | 498,536 | |||||||||
Medtronic, Inc. | 34,043 | 1,953,728 | |||||||||
St Jude Medical, Inc. | 9,951 | 616,465 | |||||||||
Stryker Corp. | 10,017 | 752,677 | |||||||||
Varian Medical Systems, Inc. (c) | 3,605 | 280,072 | |||||||||
Zimmer Holdings, Inc. | 5,793 | 539,850 | |||||||||
9,402,546 | |||||||||||
Health Care Providers & Services (2.0%) | |||||||||||
Aetna, Inc. | 12,531 | 859,501 | |||||||||
AmerisourceBergen Corp. | 7,773 | 546,520 | |||||||||
Cardinal Health, Inc. | 11,659 | 778,938 | |||||||||
Cigna Corp. | 9,425 | 824,499 | |||||||||
DaVita HealthCare Partners, Inc. (c) | 5,953 | 377,242 | |||||||||
Express Scripts Holding Co. (c) | 27,477 | 1,929,984 | |||||||||
Humana, Inc. | 5,317 | 548,821 | |||||||||
Laboratory Corp. of America Holdings (c) | 2,980 | 272,282 | |||||||||
McKesson Corp. | 7,862 | 1,268,927 | |||||||||
Patterson Cos., Inc. | 2,765 | 113,918 | |||||||||
Quest Diagnostics, Inc. | 4,959 | 265,505 | |||||||||
Tenet Healthcare Corp. (c) | 3,367 | 141,818 | |||||||||
UnitedHealth Group, Inc. | 34,330 | 2,585,049 | |||||||||
WellPoint, Inc. | 10,074 | 930,737 | |||||||||
11,443,741 | |||||||||||
Health Care Technology (0.1%) | |||||||||||
Cerner Corp. (c) | 10,022 | 558,626 | |||||||||
Life Sciences Tools & Services (0.5%) | |||||||||||
Agilent Technologies, Inc. | 11,247 | 643,216 | |||||||||
Life Technologies Corp. (c) | 5,885 | 446,083 | |||||||||
PerkinElmer, Inc. | 3,790 | 156,262 | |||||||||
Thermo Fisher Scientific, Inc. | 12,333 | 1,373,279 | |||||||||
Waters Corp. (c) | 2,937 | 293,700 | |||||||||
2,912,540 |
Shares | Value(a) | ||||||||||
Pharmaceuticals (6.0%) | |||||||||||
Abbott Laboratories | 52,724 | $ | 2,020,911 | ||||||||
AbbVie, Inc. | 54,247 | 2,864,784 | |||||||||
Actavis PLC (c) | 5,948 | 999,264 | |||||||||
Allergan, Inc. | 10,152 | 1,127,684 | |||||||||
Bristol-Myers Squibb Co. | 56,146 | 2,984,160 | |||||||||
Eli Lilly & Co. | 33,808 | 1,724,208 | |||||||||
Forest Laboratories, Inc. (c) | 8,015 | 481,140 | |||||||||
Hospira, Inc. (c) | 5,558 | 229,434 | |||||||||
Johnson & Johnson | 96,210 | 8,811,874 | |||||||||
Merck & Co., Inc. | 99,636 | 4,986,782 | |||||||||
Mylan, Inc. (c) | 13,052 | 566,457 | |||||||||
Perrigo Co. PLC | 4,518 | 693,332 | |||||||||
Pfizer, Inc. | 221,001 | 6,769,261 | |||||||||
Zoetis, Inc. | 17,020 | 556,384 | |||||||||
34,815,675 | |||||||||||
Industrials (10.6%) | |||||||||||
Aerospace & Defense (2.6%) | |||||||||||
General Dynamics Corp. | 11,364 | 1,085,830 | |||||||||
Honeywell International, Inc. | 26,757 | 2,444,787 | |||||||||
L-3 Communications Holdings, Inc. | 2,982 | 318,657 | |||||||||
Lockheed Martin Corp. | 9,158 | 1,361,428 | |||||||||
Northrop Grumman Corp. | 7,570 | 867,598 | |||||||||
Precision Castparts Corp. | 5,010 | 1,349,193 | |||||||||
Raytheon Co. | 10,894 | 988,086 | |||||||||
Rockwell Collins, Inc. | 4,571 | 337,888 | |||||||||
The Boeing Co. | 23,574 | 3,217,615 | |||||||||
United Technologies Corp. | 28,786 | 3,275,847 | |||||||||
15,246,929 | |||||||||||
Air Freight & Logistics (0.8%) | |||||||||||
CH Robinson Worldwide, Inc. | 5,170 | 301,618 | |||||||||
Expeditors International of Washington, Inc. | 6,963 | 308,113 | |||||||||
FedEx Corp. | 10,203 | 1,466,885 | |||||||||
United Parcel Service, Inc. — Class B | 24,375 | 2,561,325 | |||||||||
4,637,941 | |||||||||||
Airlines (0.2%) | |||||||||||
Delta Air Lines, Inc. | 29,173 | 801,382 | |||||||||
Southwest Airlines Co. | 23,757 | 447,582 | |||||||||
1,248,964 | |||||||||||
Building Products (0.1%) | |||||||||||
Allegion PLC (b) (c) | 2,994 | 132,305 | |||||||||
Masco Corp. | 12,097 | 275,449 | |||||||||
407,754 | |||||||||||
Commercial Services & Supplies (0.4%) | |||||||||||
Avery Dennison Corp. | 3,224 | 161,813 | |||||||||
Cintas Corp. | 3,384 | 201,652 | |||||||||
Iron Mountain, Inc. | 5,734 | 174,027 | |||||||||
Pitney Bowes, Inc. | 6,887 | 160,467 | |||||||||
Republic Services, Inc. | 9,209 | 305,739 | |||||||||
Stericycle, Inc. (c) | 2,951 | 342,818 | |||||||||
The ADT Corp. | 6,760 | 273,577 | |||||||||
Waste Management, Inc. | 14,858 | 666,678 | |||||||||
2,286,771 |
See accompanying notes to financial statements.
42
Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Construction & Engineering (0.2%) | |||||||||||
Fluor Corp. | 5,558 | $ | 446,252 | ||||||||
Jacobs Engineering Group, Inc. (c) | 4,459 | 280,873 | |||||||||
Quanta Services, Inc. (c) | 7,331 | 231,366 | |||||||||
958,491 | |||||||||||
Electrical Equipment (0.7%) | |||||||||||
AMETEK, Inc. | 8,270 | 435,581 | |||||||||
Eaton Corp. PLC (b) | 16,115 | 1,226,674 | |||||||||
Emerson Electric Co. | 24,005 | 1,684,671 | |||||||||
Rockwell Automation, Inc. | 4,782 | 565,041 | |||||||||
Roper Industries, Inc. | 3,399 | 471,373 | |||||||||
4,383,340 | |||||||||||
Industrial Conglomerates (2.4%) | |||||||||||
3M Co. | 21,810 | 3,058,852 | |||||||||
General Electric Co. | 344,998 | 9,670,294 | |||||||||
Textron, Inc. | 9,522 | 350,029 | |||||||||
Tyco International, Ltd. (b) | 15,841 | 650,115 | |||||||||
13,729,290 | |||||||||||
Machinery (1.9%) | |||||||||||
Caterpillar, Inc. | 21,699 | 1,970,486 | |||||||||
Cummins, Inc. | 5,939 | 837,221 | |||||||||
Danaher Corp. | 20,420 | 1,576,424 | |||||||||
Deere & Co. | 13,033 | 1,190,304 | |||||||||
Dover Corp. | 5,760 | 556,070 | |||||||||
Flowserve Corp. | 4,714 | 371,605 | |||||||||
Illinois Tool Works, Inc. | 13,924 | 1,170,730 | |||||||||
Ingersoll-Rand PLC (b) | 9,136 | 562,778 | |||||||||
Joy Global, Inc. | 3,533 | 206,645 | |||||||||
PACCAR, Inc. | 11,991 | 709,507 | |||||||||
Pall Corp. | 3,800 | 324,330 | |||||||||
Parker Hannifin Corp. | 5,102 | 656,321 | |||||||||
Pentair, Ltd. (b) | 6,831 | 530,564 | |||||||||
Snap-On, Inc. | 1,938 | 212,250 | |||||||||
Xylem, Inc. | 6,268 | 216,873 | |||||||||
11,092,108 | |||||||||||
Professional Services (0.2%) | |||||||||||
Dun & Bradstreet Corp. | 1,339 | 164,362 | |||||||||
Equifax, Inc. | 4,120 | 284,651 | |||||||||
Nielsen Holdings NV | 8,628 | 395,939 | |||||||||
Robert Half International, Inc. | 4,673 | 196,219 | |||||||||
1,041,171 | |||||||||||
Road & Rail (0.9%) | |||||||||||
CSX Corp. | 34,565 | 994,435 | |||||||||
Kansas City Southern | 3,770 | 466,839 | |||||||||
Norfolk Southern Corp. | 10,534 | 977,871 | |||||||||
Ryder System, Inc. | 1,760 | 129,853 | |||||||||
Union Pacific Corp. | 15,705 | 2,638,440 | |||||||||
5,207,438 | |||||||||||
Trading Companies & Distributors (0.2%) | |||||||||||
Fastenal Co. | 9,269 | 440,370 | |||||||||
WW Grainger, Inc. | 2,155 | 550,430 | |||||||||
990,800 |
Shares | Value(a) | ||||||||||
Information Technology (18.2%) | |||||||||||
Communications Equipment (1.7%) | |||||||||||
Cisco Systems, Inc. | 182,317 | $ | 4,093,017 | ||||||||
F5 Networks, Inc. (c) | 2,642 | 240,052 | |||||||||
Harris Corp. | 3,653 | 255,016 | |||||||||
Juniper Networks, Inc. (c) | 17,220 | 388,655 | |||||||||
Motorola Solutions, Inc. | 7,851 | 529,943 | |||||||||
QUALCOMM, Inc. | 57,609 | 4,277,468 | |||||||||
9,784,151 | |||||||||||
Computers & Peripherals (3.9%) | |||||||||||
Apple, Inc. (d) | 30,681 | 17,215,416 | |||||||||
EMC Corp. | 70,171 | 1,764,801 | |||||||||
Hewlett-Packard Co. | 65,533 | 1,833,613 | |||||||||
NetApp, Inc. | 11,568 | 475,907 | |||||||||
SanDisk Corp. | 7,666 | 540,760 | |||||||||
Western Digital Corp. | 7,187 | 602,989 | |||||||||
22,433,486 | |||||||||||
Electronic Equipment, Instruments & Components (0.5%) | |||||||||||
Amphenol Corp. — Class A | 5,362 | 478,183 | |||||||||
Corning, Inc. | 49,349 | 879,399 | |||||||||
FLIR Systems, Inc. | 4,758 | 143,216 | |||||||||
Jabil Circuit, Inc. | 6,292 | 109,733 | |||||||||
Seagate Technology PLC (b) | 11,031 | 619,501 | |||||||||
TE Connectivity, Ltd. (b) | 13,993 | 771,154 | |||||||||
3,001,186 | |||||||||||
Internet Software & Services (3.1%) | |||||||||||
Akamai Technologies, Inc. (c) | 6,084 | 287,043 | |||||||||
eBay, Inc. (c) | 39,730 | 2,180,780 | |||||||||
Facebook, Inc. (c) | 56,084 | 3,065,551 | |||||||||
Google, Inc. — Class A (c) | 9,596 | 10,754,333 | |||||||||
VeriSign, Inc. (c) | 4,393 | 262,614 | |||||||||
Yahoo!, Inc. (c) | 32,170 | 1,300,955 | |||||||||
17,851,276 | |||||||||||
IT Services (3.6%) | |||||||||||
Accenture PLC — Class A (b) | 21,678 | 1,782,365 | |||||||||
Alliance Data Systems Corp. (c) | 1,661 | 436,727 | |||||||||
Automatic Data Processing, Inc. | 16,416 | 1,326,577 | |||||||||
Cognizant Technology Solutions Corp. — Class A (c) | 10,323 | 1,042,416 | |||||||||
Computer Sciences Corp. | 4,945 | 276,327 | |||||||||
Fidelity National Information Services, Inc. | 9,927 | 532,881 | |||||||||
Fiserv, Inc. (c) | 8,795 | 519,345 | |||||||||
International Business Machines Corp. | 34,806 | 6,528,561 | |||||||||
Mastercard, Inc. — Class A | 3,572 | 2,984,263 | |||||||||
Paychex, Inc. | 11,073 | 504,154 | |||||||||
Teradata Corp. (c) | 5,571 | 253,425 | |||||||||
The Western Union Co. | 18,831 | 324,835 | |||||||||
Total System Services, Inc. | 5,617 | 186,934 | |||||||||
Visa, Inc. — Class A | 17,365 | 3,866,838 | |||||||||
20,565,648 | |||||||||||
Office Electronics (0.1%) | |||||||||||
Xerox Corp. | 39,461 | 480,240 |
See accompanying notes to financial statements.
43
Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Semiconductors & Semiconductor Equipment (2.0%) | |||||||||||
Altera Corp. | 10,937 | $ | 355,781 | ||||||||
Analog Devices, Inc. | 10,566 | 538,126 | |||||||||
Applied Materials, Inc. | 41,062 | 726,387 | |||||||||
Broadcom Corp. — Class A | 18,400 | 545,560 | |||||||||
First Solar, Inc. (c) | 2,378 | 129,934 | |||||||||
Intel Corp. | 169,509 | 4,400,454 | |||||||||
KLA-Tencor Corp. | 5,683 | 366,326 | |||||||||
Lam Research Corp. (c) | 5,453 | 296,916 | |||||||||
Linear Technology Corp. | 7,955 | 362,350 | |||||||||
LSI Corp. | 18,582 | 204,774 | |||||||||
Microchip Technology, Inc. | 6,682 | 299,019 | |||||||||
Micron Technology, Inc. (c) | 35,867 | 780,466 | |||||||||
NVIDIA Corp. | 19,674 | 315,177 | |||||||||
Texas Instruments, Inc. | 37,324 | 1,638,897 | |||||||||
Xilinx, Inc. | 9,135 | 419,479 | |||||||||
11,379,646 | |||||||||||
Software (3.3%) | |||||||||||
Adobe Systems, Inc. (c) | 15,852 | 949,218 | |||||||||
Autodesk, Inc. (c) | 7,692 | 387,138 | |||||||||
CA, Inc. | 11,079 | 372,808 | |||||||||
Citrix Systems, Inc. (c) | 6,356 | 402,017 | |||||||||
Electronic Arts, Inc. (c) | 10,517 | 241,260 | |||||||||
Intuit, Inc. | 9,713 | 741,296 | |||||||||
Microsoft Corp. | 259,042 | 9,695,942 | |||||||||
Oracle Corp. | 119,663 | 4,578,307 | |||||||||
Red Hat, Inc. (c) | 6,394 | 358,320 | |||||||||
Salesforce.com, Inc. (c) | 18,917 | 1,044,029 | |||||||||
Symantec Corp. | 23,734 | 559,648 | |||||||||
19,329,983 | |||||||||||
Materials (3.4%) | |||||||||||
Chemicals (2.5%) | |||||||||||
Air Products & Chemicals, Inc. | 7,202 | 805,040 | |||||||||
Airgas, Inc. | 2,249 | 251,551 | |||||||||
CF Industries Holdings, Inc. | 1,938 | 451,631 | |||||||||
Eastman Chemical Co. | 5,266 | 424,966 | |||||||||
Ecolab, Inc. | 9,204 | 959,701 | |||||||||
EI du Pont de Nemours & Co. | 31,577 | 2,051,558 | |||||||||
FMC Corp. | 4,544 | 342,890 | |||||||||
International Flavors & Fragrances, Inc. | 2,790 | 239,884 | |||||||||
LyondellBasell Industries NV — Class A (b) | 14,896 | 1,195,851 | |||||||||
Monsanto Co. | 17,931 | 2,089,858 | |||||||||
PPG Industries, Inc. | 4,886 | 926,679 | |||||||||
Praxair, Inc. | 10,032 | 1,304,461 | |||||||||
Sigma-Aldrich Corp. | 4,120 | 387,321 | |||||||||
The Dow Chemical Co. | 41,329 | 1,835,008 | |||||||||
The Mosaic Co. | 11,585 | 547,623 | |||||||||
The Sherwin-Williams Co. | 2,937 | 538,939 | |||||||||
14,352,961 | |||||||||||
Construction Materials (0.1%) | |||||||||||
Vulcan Materials Co. | 4,442 | 263,944 | |||||||||
Containers & Packaging (0.1%) | |||||||||||
Ball Corp. | 4,911 | 253,702 | |||||||||
Bemis Co., Inc. | 3,423 | 140,206 |
Shares | Value(a) | ||||||||||
Owens-Illinois, Inc. (c) | 5,612 | $ | 200,797 | ||||||||
Sealed Air Corp. | 6,656 | 226,637 | |||||||||
821,342 | |||||||||||
Metals & Mining (0.5%) | |||||||||||
Alcoa, Inc. | 36,472 | 387,697 | |||||||||
Allegheny Technologies, Inc. | 3,676 | 130,976 | |||||||||
Cliffs Natural Resources, Inc. | 5,182 | 135,820 | |||||||||
Freeport-McMoRan Copper & Gold, Inc. | 35,400 | 1,335,996 | |||||||||
Newmont Mining Corp. | 16,892 | 389,023 | |||||||||
Nucor Corp. | 10,767 | 574,742 | |||||||||
United States Steel Corp. | 4,835 | 142,633 | |||||||||
3,096,887 | |||||||||||
Paper & Forest Products (0.2%) | |||||||||||
International Paper Co. | 15,127 | 741,677 | |||||||||
MeadWestvaco Corp. | 6,009 | 221,912 | |||||||||
963,589 | |||||||||||
Telecommunication Services (2.2%) | |||||||||||
Diversified Telecommunication Services (2.1%) | |||||||||||
AT&T, Inc. | 179,636 | 6,316,002 | |||||||||
CenturyLink, Inc. | 20,155 | 641,937 | |||||||||
Frontier Communications Corp. | 34,084 | 158,490 | |||||||||
Verizon Communications, Inc. | 97,584 | 4,795,278 | |||||||||
Windstream Holdings, Inc. | 20,302 | 162,010 | |||||||||
12,073,717 | |||||||||||
Wireless Telecommunication Services (0.1%) | |||||||||||
Crown Castle International Corp. (c) | 11,391 | 836,441 | |||||||||
Utilities (2.9%) | |||||||||||
Electric Utilities (1.5%) | |||||||||||
American Electric Power Co., Inc. | 16,613 | 776,492 | |||||||||
Duke Energy Corp. | 24,074 | 1,661,347 | |||||||||
Edison International | 11,045 | 511,383 | |||||||||
Entergy Corp. | 6,092 | 385,441 | |||||||||
Exelon Corp. | 29,220 | 800,336 | |||||||||
FirstEnergy Corp. | 14,206 | 468,514 | |||||||||
NextEra Energy, Inc. | 14,699 | 1,258,528 | |||||||||
Northeast Utilities | 10,652 | 451,538 | |||||||||
Pepco Holdings, Inc. | 8,490 | 162,414 | |||||||||
Pinnacle West Capital Corp. | 3,754 | 198,662 | |||||||||
PPL Corp. | 21,491 | 646,664 | |||||||||
Southern Co. | 29,977 | 1,232,354 | |||||||||
8,553,673 | |||||||||||
Gas Utilities (0.1%) | |||||||||||
AGL Resources, Inc. | 4,032 | 190,431 | |||||||||
ONEOK, Inc. | 7,010 | 435,882 | |||||||||
626,313 | |||||||||||
Independent Power Producers & Energy Traders (0.1%) | |||||||||||
NRG Energy, Inc. | 10,977 | 315,260 | |||||||||
The AES Corp. | 22,373 | 324,632 | |||||||||
639,892 |
See accompanying notes to financial statements.
44
Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Multi-Utilities (1.2%) | |||||||||||
Ameren Corp. | 8,199 | $ | 296,476 | ||||||||
CenterPoint Energy, Inc. | 14,529 | 336,782 | |||||||||
CMS Energy Corp. | 9,059 | 242,509 | |||||||||
Consolidated Edison, Inc. | 9,918 | 548,267 | |||||||||
Dominion Resources, Inc. | 19,814 | 1,281,768 | |||||||||
DTE Energy Co. | 6,002 | 398,473 | |||||||||
Integrys Energy Group, Inc. | 2,710 | 147,451 | |||||||||
NiSource, Inc. | 10,644 | 349,975 | |||||||||
PG&E Corp. | 15,275 | 615,277 | |||||||||
Public Service Enterprise Group, Inc. | 17,207 | 551,312 | |||||||||
SCANA Corp. | 4,758 | 223,293 | |||||||||
Sempra Energy | 7,739 | 694,653 | |||||||||
TECO Energy, Inc. | 6,885 | 118,697 | |||||||||
Wisconsin Energy Corp. | 7,633 | 315,548 | |||||||||
Xcel Energy, Inc. | 16,930 | 473,024 | |||||||||
6,593,505 | |||||||||||
Total common stocks (cost: $204,729,447) | 562,390,422 | ||||||||||
Short-Term Securities (2.5%) | |||||||||||
Investment Companies (2.5%) | |||||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 14,393,293 | 14,393,293 | |||||||||
Total short-term securities (cost: $14,393,293) | 14,393,293 | ||||||||||
Total investments in securities (cost: $219,122,740) (e) | 576,783,715 | ||||||||||
Cash and other assets in excess of liabilities (0.0%) | 42,021 | ||||||||||
Total net assets (100.0%) | $ | 576,825,736 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Foreign security: The Fund held 2.4% of net assets in foreign securities at December 31, 2013.
(c) Non-income producing security.
(d) Fully or partially pledged as initial margin deposits on open futures contracts.
|
Holdings of Open Futures Contracts
On December 31, 2013, securities with an aggregate market value of $2,805,550 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
S&P 500 E-Mini Index Future | March 2014 | 151 | Long | $ | 425,739 | ||||||||||||||
151 | $ | 425,739 |
(e) At December 31, 2013 the cost of securities for federal income tax purposes was $222,558,541. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 357,385,393 | |||||
Gross unrealized depreciation | (3,160,219 | ) | |||||
Net unrealized appreciation | $ | 354,225,174 |
See accompanying notes to financial statements.
45
Advantus International Bond Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Principal(b) | Value(a) | ||||||||||
Long-Term Debt Securities (76.3%) | |||||||||||
Brazil (4.5%) | |||||||||||
Government (4.5%) | |||||||||||
Brazil Letras do Tesouro Nacional (BRL) 10.293%, 01/01/15 (c) | 229,000 | $ | 87,633 | ||||||||
Brazil Notas do Tesouro Nacional Serie B (BRL) 6.000%, 05/15/15 | 2,125,000 | 2,169,179 | |||||||||
6.000%, 08/15/16 | 189,000 | 191,526 | |||||||||
6.000%, 08/15/18 | 140,000 | 139,810 | |||||||||
6.000%, 05/15/45 | 2,000,000 | 1,871,453 | |||||||||
Brazil Notas do Tesouro Nacional Serie F (BRL) 10.000%, 01/01/17 | 3,300,000 | 1,322,265 | |||||||||
5,781,866 | |||||||||||
Canada (4.3%) | |||||||||||
Government (4.3%) | |||||||||||
Canadian Government Bond (CAD) | |||||||||||
0.750%, 05/01/14 | 257,000 | 241,720 | |||||||||
1.000%, 02/01/14 | 1,397,000 | 1,314,745 | |||||||||
1.000%, 11/01/14 | 820,000 | 771,834 | |||||||||
1.000%, 02/01/15 | 2,010,000 | 1,891,746 | |||||||||
2.000%, 03/01/14 | 301,000 | 283,761 | |||||||||
2.000%, 12/01/14 | 729,000 | 692,423 | |||||||||
2.250%, 08/01/14 | 408,000 | 386,815 | |||||||||
5,583,044 | |||||||||||
Hungary (6.9%) | |||||||||||
Government (6.9%) | |||||||||||
Hungary Government Bond (HUF) | |||||||||||
5.500%, 02/12/14 | 29,800,000 | 138,542 | |||||||||
5.500%, 02/12/16 | 155,800,000 | 749,968 | |||||||||
5.500%, 12/22/16 | 354,140,000 | 1,706,867 | |||||||||
5.500%, 12/20/18 | 17,490,000 | 83,876 | |||||||||
6.000%, 11/24/23 | 8,220,000 | 39,073 | |||||||||
6.500%, 06/24/19 | 146,140,000 | 730,659 | |||||||||
6.750%, 08/22/14 | 90,140,000 | 427,209 | |||||||||
6.750%, 02/24/17 | 19,200,000 | 95,581 | |||||||||
6.750%, 11/24/17 | 92,990,000 | 467,193 | |||||||||
7.000%, 06/24/22 | 24,830,000 | 125,652 | |||||||||
7.500%, 11/12/20 | 15,140,000 | 78,965 | |||||||||
7.750%, 08/24/15 | 23,440,000 | 116,267 | |||||||||
8.000%, 02/12/15 | 13,800,000 | 67,352 | |||||||||
Hungary Government International Bond (EUR) | |||||||||||
3.500%, 07/18/16 | 30,000 | 42,545 | |||||||||
3.875%, 02/24/20 | 150,000 | 206,434 | |||||||||
4.375%, 07/04/17 | 175,000 | 252,359 | |||||||||
5.750%, 06/11/18 | 530,000 | 791,557 | |||||||||
Hungary Government International Bond (USD) | |||||||||||
4.125%, 02/19/18 | 400,000 | 404,400 | |||||||||
5.375%, 02/21/23 | 740,000 | 730,750 | |||||||||
6.250%, 01/29/20 | 735,000 | 792,881 | |||||||||
6.375%, 03/29/21 | 810,000 | 868,725 | |||||||||
8,916,855 |
Principal(b) | Value(a) | ||||||||||
Iceland (0.3%) | |||||||||||
Government (0.3%) | |||||||||||
Iceland Government International Bond (USD) 5.875%, 05/11/22 (d) | 340,000 | $ | 346,800 | ||||||||
Indonesia (2.9%) | |||||||||||
Government (2.9%) | |||||||||||
Indonesia Treasury Bond (IDR) | |||||||||||
8.250%, 07/15/21 | 225,000,000 | 18,262 | |||||||||
9.500%, 07/15/23 | 18,680,000,000 | 1,615,813 | |||||||||
10.000%, 09/15/24 | 1,959,000,000 | 174,330 | |||||||||
10.250%, 07/15/22 | 2,155,000,000 | 194,357 | |||||||||
11.000%, 11/15/20 | 6,217,000,000 | 579,315 | |||||||||
12.800%, 06/15/21 | 8,576,000,000 | 877,331 | |||||||||
12.900%, 06/15/22 | 3,361,000,000 | 347,230 | |||||||||
3,806,638 | |||||||||||
Ireland (9.4%) | |||||||||||
Government (9.4%) | |||||||||||
Ireland Government Bond (EUR) | |||||||||||
4.400%, 06/18/19 | 125,000 | 189,016 | |||||||||
4.500%, 10/18/18 | 98,000 | 149,716 | |||||||||
4.500%, 04/18/20 | 546,000 | 822,684 | |||||||||
5.000%, 10/18/20 | 2,716,000 | 4,206,657 | |||||||||
5.400%, 03/13/25 | 2,689,100 | 4,214,157 | |||||||||
5.500%, 10/18/17 | 1,317,000 | 2,062,521 | |||||||||
5.900%, 10/18/19 | 310,000 | 501,307 | |||||||||
12,146,058 | |||||||||||
Lithuania (1.8%) | |||||||||||
Government (1.8%) | |||||||||||
Lithuania Government International Bond (USD) | |||||||||||
6.125%, 03/09/21 (d) | 100,000 | 113,280 | |||||||||
6.750%, 01/15/15 (d) | 1,130,000 | 1,193,849 | |||||||||
7.375%, 02/11/20 (d) | 900,000 | 1,081,350 | |||||||||
2,388,479 | |||||||||||
Malaysia (1.6%) | |||||||||||
Government (1.6%) | |||||||||||
Malaysia Government Bond (MYR) | |||||||||||
3.197%, 10/15/15 | 550,000 | 167,575 | |||||||||
3.434%, 08/15/14 | 1,365,000 | 417,921 | |||||||||
3.741%, 02/27/15 | 1,275,000 | 391,189 | |||||||||
3.835%, 08/12/15 | 995,000 | 306,258 | |||||||||
4.720%, 09/30/15 | 2,485,000 | 777,164 | |||||||||
2,060,107 | |||||||||||
Mexico (4.5%) | |||||||||||
Government (4.5%) | |||||||||||
Mexican Bonos (MXN) | |||||||||||
6.000%, 06/18/15 | 3,126,000 | 246,348 | |||||||||
6.250%, 06/16/16 | 4,589,000 | 367,929 | |||||||||
7.000%, 06/19/14 | 703,000 | 54,518 | |||||||||
7.250%, 12/15/16 | 7,847,000 | 644,806 | |||||||||
7.750%, 12/14/17 | 5,000,000 | 418,480 | |||||||||
8.000%, 12/17/15 | 38,033,000 | 3,131,294 | |||||||||
9.500%, 12/18/14 | 2,130,000 | 171,401 |
See accompanying notes to financial statements.
46
Advantus International Bond Fund
Investments in Securities – continued
Principal(b) | Value(a) | ||||||||||
Mexican Udibonos (MXN) | |||||||||||
2.500%, 12/10/20 | 1,396,210 | $ | 108,031 | ||||||||
3.500%, 12/14/17 | 2,529,366 | 208,170 | |||||||||
4.000%, 06/13/19 | 1,745,262 | 147,220 | |||||||||
4.500%, 12/18/14 | 1,020,346 | 81,530 | |||||||||
5.000%, 06/16/16 | 2,554,659 | 215,091 | |||||||||
5,794,818 | |||||||||||
Philippines (0.6%) | |||||||||||
Government (0.6%) | |||||||||||
Philippine Government Bond (PHP) | |||||||||||
1.625%, 04/25/16 | 31,760,000 | 707,752 | |||||||||
6.250%, 01/27/14 | 780,000 | 17,643 | |||||||||
7.000%, 01/27/16 | 1,240,000 | 30,723 | |||||||||
9.125%, 09/04/16 | 730,000 | 19,381 | |||||||||
775,499 | |||||||||||
Poland (10.3%) | |||||||||||
Government (10.3%) | |||||||||||
Poland Government Bond (PLN) | |||||||||||
2.710%, 01/25/17 (e) | 2,011,000 | 664,057 | |||||||||
2.710%, 01/25/21 (e) | 2,040,000 | 660,518 | |||||||||
2.950%, 01/25/16 (c) | 3,860,000 | 1,202,472 | |||||||||
2.986%, 07/25/15 (c) | 911,000 | 289,286 | |||||||||
3.951%, 07/25/14 (c) | 815,000 | 266,503 | |||||||||
4.351%, 01/25/14 (c) | 3,405,000 | 1,126,631 | |||||||||
5.000%, 04/25/16 | 600,000 | 207,195 | |||||||||
5.500%, 04/25/15 | 1,616,000 | 554,449 | |||||||||
5.750%, 04/25/14 | 9,800,000 | 3,281,546 | |||||||||
5.750%, 09/23/22 | 5,900,000 | 2,157,232 | |||||||||
6.250%, 10/24/15 | 2,925,000 | 1,027,306 | |||||||||
Poland Government International Bond (USD) 6.375%, 07/15/19 | 1,700,000 | 1,986,875 | |||||||||
13,424,070 | |||||||||||
Russia (2.3%) | |||||||||||
Government (2.3%) | |||||||||||
Russian Foreign Bond (USD) 7.500%, 03/31/30 (d) (f) | 2,545,400 | 2,965,900 | |||||||||
Serbia (0.7%) | |||||||||||
Government (0.7%) | |||||||||||
Republic of Serbia (USD) | |||||||||||
4.875%, 02/25/20 (d) | 360,000 | 340,380 | |||||||||
5.250%, 11/21/17 (d) | 200,000 | 200,500 | |||||||||
7.250%, 09/28/21 (d) | 410,000 | 431,525 | |||||||||
972,405 | |||||||||||
Singapore (1.3%) | |||||||||||
Government (1.3%) | |||||||||||
Singapore Government Bond (SGD) 0.250%, 02/01/14 | 2,100,000 | 1,663,065 | |||||||||
Slovenia (0.6%) | |||||||||||
Government (0.6%) | |||||||||||
Slovenia Government International Bond (USD) | |||||||||||
5.500%, 10/26/22 (d) | 530,000 | 528,675 | |||||||||
5.850%, 05/10/23 (d) | 200,000 | 203,000 | |||||||||
731,675 |
Principal(b) | Value(a) | ||||||||||
South Korea (14.8%) | |||||||||||
Financial (7.8%) | |||||||||||
Export-Import Bank of Korea (KRW) 1.450%, 05/19/14 (d) | 1,510,000 | $ | 235,443 | ||||||||
Korea Monetary Stabilization Bond (KRW) | |||||||||||
2.470%, 04/02/15 | 1,188,850,000 | 1,123,086 | |||||||||
2.740%, 02/02/15 | 376,480,000 | 356,848 | |||||||||
2.760%, 06/02/15 | 346,400,000 | 328,315 | |||||||||
2.780%, 10/02/14 | 70,700,000 | 67,043 | |||||||||
2.800%, 08/02/15 | 400,160,000 | 379,479 | |||||||||
2.810%, 10/02/15 | 55,000,000 | 52,166 | |||||||||
2.820%, 08/02/14 | 17,800,000 | 16,884 | |||||||||
2.840%, 12/02/14 | 124,780,000 | 118,415 | |||||||||
2.900%, 12/02/15 | 6,685,600,000 | 6,349,100 | |||||||||
3.280%, 06/02/14 | 476,450,000 | 452,655 | |||||||||
3.470%, 02/02/14 | 273,450,000 | 259,293 | |||||||||
3.590%, 04/02/14 | 401,900,000 | 381,766 | |||||||||
10,120,493 | |||||||||||
Government (7.0%) | |||||||||||
Korea Treasury Bond (KRW) | |||||||||||
2.750%, 12/10/15 | 754,400,000 | 714,271 | |||||||||
2.750%, 06/10/16 | 2,257,800,000 | 2,135,500 | |||||||||
3.000%, 12/10/16 | 2,223,800,000 | 2,115,816 | |||||||||
3.250%, 12/10/14 | 108,270,000 | 103,139 | |||||||||
3.250%, 06/10/15 | 175,600,000 | 167,566 | |||||||||
3.500%, 06/10/14 | 4,090,410,000 | 3,890,752 | |||||||||
9,127,044 | |||||||||||
19,247,537 | |||||||||||
Sri Lanka (1.3%) | |||||||||||
Government (1.3%) | |||||||||||
Sri Lanka Government Bond (LKR) | |||||||||||
6.500%, 07/15/15 | 4,310,000 | 31,885 | |||||||||
7.000%, 03/01/14 | 140,000 | 1,068 | |||||||||
8.000%, 11/15/18 | 100,000 | 715 | |||||||||
8.500%, 06/01/18 | 10,000 | 74 | |||||||||
9.000%, 05/01/21 | 20,000 | 145 | |||||||||
11.000%, 08/01/15 | 82,800,000 | 653,987 | |||||||||
11.000%, 09/01/15 | 120,750,000 | 951,636 | |||||||||
11.750%, 04/01/14 | 130,000 | 1,002 | |||||||||
1,640,512 | |||||||||||
Sweden (2.4%) | |||||||||||
Government (2.4%) | |||||||||||
Kommuninvest I Sverige AB (SEK) 2.250%, 05/05/14 | 4,380,000 | 685,257 | |||||||||
Sweden Government Bond (SEK) 6.750%, 05/05/14 | 15,600,000 | 2,476,384 | |||||||||
3,161,641 | |||||||||||
Ukraine (5.1%) | |||||||||||
Government (5.1%) | |||||||||||
Financing of Infrastructural Projects State Enterprise (USD) 7.400%, 04/20/18 (d) | 200,000 | 177,750 |
See accompanying notes to financial statements.
47
Advantus International Bond Fund
Investments in Securities – continued
Principal(b) | Value(a) | ||||||||||
Ukraine Government International Bond (EUR) 4.950%, 10/13/15 (d) | 100,000 | $ | 131,498 | ||||||||
Ukraine Government International Bond (USD) | |||||||||||
6.250%, 06/17/16 (d) | 200,000 | 187,700 | |||||||||
7.500%, 04/17/23 (d) | 2,600,000 | 2,328,300 | |||||||||
7.750%, 09/23/20 (d) | 100,000 | 92,250 | |||||||||
7.800%, 11/28/22 (d) | 1,600,000 | 1,446,400 | |||||||||
7.950%, 02/23/21 (d) | 410,000 | 378,225 | |||||||||
9.250%, 07/24/17 (d) | 1,840,000 | 1,834,627 | |||||||||
6,576,750 | |||||||||||
United States (0.0%) | |||||||||||
Government (0.0%) | |||||||||||
County of Bexar, Texas (USD) 5.250%, 08/15/47 | 50,000 | 52,070 | |||||||||
Vietnam (0.7%) | |||||||||||
Government (0.7%) | |||||||||||
Socialist Republic of Vietnam (USD) 6.750%, 01/29/20 (d) | 880,000 | 952,600 | |||||||||
Total long-term debt securities (cost: $93,812,449) | 98,988,389 | ||||||||||
Short-Term Securities (20.9%) | |||||||||||
Hungary (0.0%) | |||||||||||
Hungary Treasury Bill (HUF) 5.232%, 01/08/14 (c) | 9,100,000 | 42,146 | |||||||||
Malaysia (2.4%) | |||||||||||
Bank Negara Malaysia Monetary Note (MYR) | |||||||||||
2.827%, 03/27/14 (c) | 130,000 | 39,427 | |||||||||
2.830%, 04/15/14 (c) | 20,000 | 6,056 | |||||||||
2.830%, 09/09/14 (c) | 275,000 | 82,277 | |||||||||
2.830%, 09/18/14 (c) | 250,000 | 74,744 | |||||||||
2.850%, 02/06/14 (c) | 15,000 | 4,566 | |||||||||
2.850%, 02/18/14 (c) | 235,000 | 71,472 | |||||||||
2.850%, 05/20/14 (c) | 320,000 | 96,618 | |||||||||
2.855%, 05/27/14 (c) | 340,000 | 102,598 | |||||||||
2.858%, 03/20/14 (c) | 100,000 | 30,341 | |||||||||
2.859%, 02/20/14 (c) | 380,000 | 115,553 | |||||||||
2.860%, 07/08/14 (c) | 150,000 | 45,108 | |||||||||
2.860%, 08/14/14 (c) | 820,000 | 245,847 | |||||||||
2.861%, 05/15/14 (c) | 200,000 | 60,411 | |||||||||
2.870%, 06/03/14 (c) | 380,000 | 114,603 | |||||||||
2.873%, 04/24/14 (c) | 280,000 | 84,718 | |||||||||
2.873%, 06/17/14 (c) | 310,000 | 93,385 | |||||||||
2.873%, 07/24/14 (c) | 150,000 | 45,049 | |||||||||
2.875%, 07/15/14 (c) | 100,000 | 29,726 | |||||||||
2.876%, 01/16/14 (c) | 1,070,000 | 326,397 | |||||||||
2.877%, 11/06/14 (c) | 160,000 | 47,649 | |||||||||
2.879%, 07/03/14 (c) | 60,000 | 18,051 | |||||||||
2.880%, 02/25/14 (c) | 185,000 | 56,234 | |||||||||
2.882%, 01/09/14 (c) | 480,000 | 146,458 | |||||||||
2.885%, 10/16/14 (c) | 280,000 | 83,526 | |||||||||
2.889%, 08/05/14 (c) | 810,000 | 243,024 | |||||||||
2.895%, 10/02/14 (c) | 920,000 | 274,749 | |||||||||
2.898%, 04/03/14 (c) | 30,000 | 9,094 | |||||||||
2.898%, 06/05/14 (c) | 190,000 | 57,292 | |||||||||
2.909%, 03/13/14 (c) | 470,000 | 142,681 | |||||||||
2.923%, 08/21/14 (c) | 300,000 | 89,894 | |||||||||
2.927%, 11/18/14 (c) | 20,000 | 5,950 | |||||||||
2.930%, 01/23/14 (c) | 10,000 | 3,048 | |||||||||
2.930%, 01/30/14 (c) | 210,000 | 63,967 |
Shares/ Principal(b) | Value(a) | ||||||||||
2.937%, 06/12/14 (c) | 130,000 | $ | 39,177 | ||||||||
2.947%, 10/28/14 (c) | 505,000 | 150,501 | |||||||||
2.954%, 06/19/14 (c) | 240,000 | 72,286 | |||||||||
Malaysia Treasury Bill (MYR) 2.900%, 05/30/14 (c) | 20,000 | 6,033 | |||||||||
3,178,510 | |||||||||||
Mexico (3.1%) | |||||||||||
Mexican Cetes (MXN) | |||||||||||
3.660%, 03/20/14 (c) | 2,374,000 | 179,903 | |||||||||
3.741%, 10/16/14 (c) | 18,675,100 | 1,385,808 | |||||||||
3.751%, 12/11/14 (c) | 23,769,000 | 1,753,699 | |||||||||
3.853%, 04/03/14 (c) | 813,000 | 61,528 | |||||||||
3.993%, 04/30/14 (c) | 4,624,000 | 349,001 | |||||||||
4.059%, 01/09/14 (c) | 4,154,800 | 316,979 | |||||||||
4,046,918 | |||||||||||
Philippines (0.7%) | |||||||||||
Philippine Treasury Bill (PHP) | |||||||||||
0.073%, 04/10/14 (c) | 3,210,000 | 72,326 | |||||||||
0.154%, 10/08/14 (c) | 27,180,000 | 608,324 | |||||||||
0.205%, 04/02/14 (c) | 2,380,000 | 53,625 | |||||||||
0.529%, 02/05/14 (c) | 210,000 | 4,730 | |||||||||
0.618%, 01/08/14 (c) | 160,000 | 3,583 | |||||||||
0.722%, 08/06/14 (c) | 100,000 | 2,253 | |||||||||
0.725%, 09/03/14 (c) | 2,420,000 | 54,247 | |||||||||
0.847%, 03/05/14 (c) | 2,110,000 | 47,502 | |||||||||
0.971%, 07/02/14 (c) | 200,000 | 4,506 | |||||||||
851,096 | |||||||||||
Singapore (0.5%) | |||||||||||
Monetary Authority of Singapore (SGD) | |||||||||||
0.302%, 02/14/14 (c) | 240,000 | 190,033 | |||||||||
0.310%, 02/07/14 (c) | 250,000 | 197,959 | |||||||||
Singapore Treasury Bill (SGD) 0.281%, 05/16/14 (c) | 280,000 | 221,552 | |||||||||
609,544 | |||||||||||
South Korea (0.9%) | |||||||||||
Korea Monetary Stabilization Bond (KRW) | |||||||||||
2.550%, 05/09/14 | 195,900,000 | 185,586 | |||||||||
2.570%, 06/09/14 | 540,000,000 | 511,566 | |||||||||
2.720%, 09/09/14 | 532,000,000 | 504,298 | |||||||||
1,201,450 | |||||||||||
United States (3.9%) | |||||||||||
Federal Home Loan Bank (USD) 1.000%, 01/02/14 (c) | 5,000,000 | 5,000,000 | |||||||||
Investment Companies (9.4%) | |||||||||||
United States (9.4%) | |||||||||||
Dreyfus Treasury Cash Management Fund (USD), current rate 0.010% | 12,140,075 | 12,140,075 | |||||||||
Total short-term securities (cost: $27,253,839) | 27,069,739 | ||||||||||
Total investments in securities (cost: $121,066,288) (g) | 126,058,128 | ||||||||||
Cash and other assets in excess of liabilities (2.8%) | 3,583,014 | ||||||||||
Total net assets (100.0%) | $ | 129,641,142 |
See accompanying notes to financial statements.
48
Advantus International Bond Fund
Investments in Securities – continued
Foreign Forward Currency Contracts
On December 31, 2013, International Bond Fund had entered into forward foreign currency contracts that obligate the Fund to deliver currencies at specified future dates. Unrealized appreciation and depreciation on these contracts is included in the accompanying financial statements. The terms of the open contracts were as follows:
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
01/06/14 | 34,010 | USD | 2,199,000 | INR | $ | 1,515 | CIT | ||||||||||||||||||||
01/06/14 | 2,199,000 | INR | 35,433 | USD | (92 | ) | CIT | ||||||||||||||||||||
01/06/14 | 250,314 | USD | 16,044,000 | INR | 8,881 | HSB | |||||||||||||||||||||
01/06/14 | 16,044,000 | INR | 258,150 | USD | (1,046 | ) | HSB | ||||||||||||||||||||
01/07/14 | 218,664 | USD | 13,884,000 | INR | 5,583 | DBK | |||||||||||||||||||||
01/07/14 | 13,884,000 | INR | 223,215 | USD | (1,031 | ) | DBK | ||||||||||||||||||||
01/08/14 | 166,747 | USD | 515,800 | MYR | (9,323 | ) | DBK | ||||||||||||||||||||
01/08/14 | 41,097 | USD | 2,586,000 | INR | 661 | DBK | |||||||||||||||||||||
01/09/14 | 3,651,085 | EUR | 31,461,400 | SEK | (132,935 | ) | DBK | ||||||||||||||||||||
01/10/14 | 9,980,000 | JPY | 114,385 | USD | 19,431 | CIT | |||||||||||||||||||||
01/10/14 | 331,152 | USD | 1,023,987 | MYR | (18,665 | ) | HSB | ||||||||||||||||||||
01/13/14 | 207,254 | USD | 102,000,000 | CLP | (13,343 | ) | MSC | ||||||||||||||||||||
01/13/14 | 252,202 | EUR | 330,130 | USD | (17,389 | ) | UBS | ||||||||||||||||||||
01/13/14 | 2,481,000 | EUR | 3,249,440 | USD | (169,229 | ) | UBS | ||||||||||||||||||||
01/13/14 | 472,878 | EUR | 619,343 | USD | (32,255 | ) | UBS | ||||||||||||||||||||
01/14/14 | 204,914 | EUR | 272,536 | USD | (9,823 | ) | CIT | ||||||||||||||||||||
01/14/14 | 482,000 | EUR | 638,602 | USD | (25,565 | ) | DBK | ||||||||||||||||||||
01/14/14 | 141,863 | EUR | 185,734 | USD | (9,744 | ) | JPM | ||||||||||||||||||||
01/14/14 | 19,970,000 | JPY | 228,197 | USD | 38,190 | UBS | |||||||||||||||||||||
01/14/14 | 9,950,000 | JPY | 113,955 | USD | 19,284 | UBS | |||||||||||||||||||||
01/15/14 | 254,338 | USD | 15,917,000 | INR | 2,255 | DBK | |||||||||||||||||||||
01/15/14 | 35,690,000 | JPY | 406,492 | USD | 66,912 | HSB | |||||||||||||||||||||
01/16/14 | 10,020,000 | JPY | 112,934 | USD | 17,597 | DBK | |||||||||||||||||||||
01/16/14 | 34,870 | USD | 107,000 | MYR | (2,230 | ) | JPM | ||||||||||||||||||||
01/16/14 | 20,250,000 | JPY | 228,066 | USD | 35,393 | UBS | |||||||||||||||||||||
01/16/14 | 25,460,000 | JPY | 286,970 | USD | 44,725 | UBS | |||||||||||||||||||||
01/17/14 | 459,600 | EUR | 614,945 | USD | (18,355 | ) | DBK | ||||||||||||||||||||
01/17/14 | 395,143 | USD | 24,767,000 | INR | 3,928 | DBK | |||||||||||||||||||||
01/21/14 | 190,000 | EUR | 249,727 | USD | (12,081 | ) | BCB | ||||||||||||||||||||
01/21/14 | 228,502 | USD | 14,426,000 | INR | 3,723 | JPM | |||||||||||||||||||||
01/22/14 | 348,150 | USD | 171,290,000 | CLP | (22,827 | ) | DBK | ||||||||||||||||||||
01/22/14 | 80,727 | USD | 5,058,000 | INR | 676 | DBK | |||||||||||||||||||||
01/22/14 | 204,914 | EUR | 273,017 | USD | (9,340 | ) | JPM | ||||||||||||||||||||
01/22/14 | 154,136 | USD | 9,656,000 | INR | 1,267 | JPM | |||||||||||||||||||||
01/24/14 | 494,294 | USD | 242,970,000 | CLP | (32,931 | ) | DBK | ||||||||||||||||||||
01/24/14 | 233,871 | USD | 290,000 | SGD | (4,174 | ) | JPM | ||||||||||||||||||||
01/27/14 | 362,540 | EUR | 482,965 | USD | (16,588 | ) | UBS | ||||||||||||||||||||
01/27/14 | 52,800,000 | JPY | 598,504 | USD | 96,096 | UBS | |||||||||||||||||||||
01/28/14 | 310,400 | EUR | 415,461 | USD | (12,247 | ) | CIT | ||||||||||||||||||||
01/28/14 | 307,688 | USD | 151,290,000 | CLP | (20,534 | ) | DBK | ||||||||||||||||||||
01/28/14 | 50,203,538 | JPY | 560,620 | USD | 82,916 | DBK | |||||||||||||||||||||
01/28/14 | 64,982,551 | JPY | 726,062 | USD | 107,730 | HSB | |||||||||||||||||||||
01/29/14 | 99,603 | USD | 48,870,000 | CLP | (6,856 | ) | DBK | ||||||||||||||||||||
01/29/14 | 161,351 | USD | 10,174,000 | INR | 2,116 | HSB | |||||||||||||||||||||
01/30/14 | 216,999 | USD | 674,000 | MYR | (11,568 | ) | JPM | ||||||||||||||||||||
01/30/14 | 105,549 | USD | 51,930,000 | CLP | (7,005 | ) | JPM | ||||||||||||||||||||
01/31/14 | 198,578 | USD | 97,750,000 | CLP | (13,105 | ) | DBK | ||||||||||||||||||||
01/31/14 | 300,000 | EUR | 404,709 | USD | (8,668 | ) | DBK | ||||||||||||||||||||
02/03/14 | 184,693 | USD | 91,220,000 | CLP | (11,666 | ) | DBK | ||||||||||||||||||||
02/03/14 | 302,000 | EUR | 409,557 | USD | (6,574 | ) | UBS | ||||||||||||||||||||
02/04/14 | 153,724 | USD | 484,000 | MYR | (6,248 | ) | JPM | ||||||||||||||||||||
02/06/14 | 711,193 | USD | 907,084 | SGD | 7,292 | DBK | |||||||||||||||||||||
02/06/14 | 351,100 | USD | 1,113,865 | MYR | (11,740 | ) | HSB | ||||||||||||||||||||
02/07/14 | 256,845 | USD | 327,000 | SGD | 2,166 | DBK | |||||||||||||||||||||
02/07/14 | 264,328 | USD | 327,000 | SGD | (5,317 | ) | HSB | ||||||||||||||||||||
02/10/14 | 454,000 | EUR | 614,793 | USD | (10,781 | ) | CIT | ||||||||||||||||||||
02/10/14 | 14,673,000 | JPY | 148,946 | USD | 9,318 | CIT | |||||||||||||||||||||
02/10/14 | 39,838 | USD | 2,528,000 | INR | 665 | DBK | |||||||||||||||||||||
02/10/14 | 158,000 | EUR | 213,671 | USD | (4,040 | ) | HSB |
See accompanying notes to financial statements.
49
Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
02/10/14 | 341,000 | EUR | 461,687 | USD | $ | (8,183 | ) | UBS | |||||||||||||||||||
02/11/14 | 389,000 | EUR | 525,578 | USD | (10,432 | ) | BCB | ||||||||||||||||||||
02/11/14 | 76,097 | EUR | 328,000 | PLN | 3,584 | BCB | |||||||||||||||||||||
02/11/14 | 104,826 | USD | 51,700,000 | CLP | (6,848 | ) | BCB | ||||||||||||||||||||
02/11/14 | 210,000 | EUR | 281,805 | USD | (7,557 | ) | DBK | ||||||||||||||||||||
02/11/14 | 76,260 | EUR | 328,000 | PLN | 3,360 | DBK | |||||||||||||||||||||
02/12/14 | 785,727 | USD | 996,930 | SGD | 3,929 | BCB | |||||||||||||||||||||
02/12/14 | 104,880 | USD | 51,800,000 | CLP | (6,723 | ) | DBK | ||||||||||||||||||||
02/12/14 | 81,960 | USD | 92,000,000 | KRW | 5,100 | DBK | |||||||||||||||||||||
02/12/14 | 14,652,000 | JPY | 157,854 | USD | 18,424 | GSC | |||||||||||||||||||||
02/12/14 | 42,430 | USD | 2,730,000 | INR | 1,289 | HSB | |||||||||||||||||||||
02/13/14 | 105,942 | USD | 6,890,000 | INR | 4,370 | HSB | |||||||||||||||||||||
02/13/14 | 160,000 | EUR | 214,608 | USD | (5,859 | ) | UBS | ||||||||||||||||||||
02/14/14 | 611,268 | USD | 1,927,206 | MYR | (24,368 | ) | DBK | ||||||||||||||||||||
02/14/14 | 76,125 | EUR | 328,000 | PLN | 3,525 | DBK | |||||||||||||||||||||
02/14/14 | 89,478 | USD | 44,110,000 | CLP | (5,912 | ) | DBK | ||||||||||||||||||||
02/14/14 | 239,668 | USD | 118,480,000 | CLP | (15,210 | ) | MSC | ||||||||||||||||||||
02/18/14 | 268,665 | USD | 132,460,000 | CLP | (17,834 | ) | DBK | ||||||||||||||||||||
02/18/14 | 105,714 | USD | 6,930,000 | INR | 5,109 | DBK | |||||||||||||||||||||
02/18/14 | 6,828,270 | JPY | 73,359 | USD | 8,379 | GSC | |||||||||||||||||||||
02/18/14 | 151,899 | USD | 192,000 | SGD | 183 | HSB | |||||||||||||||||||||
02/18/14 | 8,030,000 | JPY | 86,275 | USD | 9,858 | JPM | |||||||||||||||||||||
02/18/14 | 140,268 | USD | 9,191,000 | INR | 6,712 | JPM | |||||||||||||||||||||
02/19/14 | 153,607 | USD | 485,000 | MYR | (5,949 | ) | HSB | ||||||||||||||||||||
02/19/14 | 1,087,159 | USD | 1,228,000,000 | KRW | 74,777 | HSB | |||||||||||||||||||||
02/19/14 | 206,000 | EUR | 275,453 | USD | (8,397 | ) | JPM | ||||||||||||||||||||
02/19/14 | 206,000 | EUR | 275,177 | USD | (8,673 | ) | JPM | ||||||||||||||||||||
02/20/14 | 357,239 | USD | 175,690,000 | CLP | (24,620 | ) | CIT | ||||||||||||||||||||
02/20/14 | 1,470,000 | USD | 19,151,013 | MXN | (13,478 | ) | CIT | ||||||||||||||||||||
02/20/14 | 98,081 | USD | 6,313,000 | INR | 2,828 | DBK | |||||||||||||||||||||
02/21/14 | 210,000 | EUR | 281,106 | USD | (8,256 | ) | GSC | ||||||||||||||||||||
02/21/14 | 98,171 | USD | 48,300,000 | CLP | (6,739 | ) | JPM | ||||||||||||||||||||
02/24/14 | 19,720,000 | JPY | 211,022 | USD | 23,353 | HSB | |||||||||||||||||||||
02/24/14 | 166,345 | USD | 82,000,000 | CLP | (11,171 | ) | JPM | ||||||||||||||||||||
02/24/14 | 117,832 | USD | 58,250,000 | CLP | (7,601 | ) | MSC | ||||||||||||||||||||
02/25/14 | 166,862 | USD | 82,530,000 | CLP | (10,702 | ) | DBK | ||||||||||||||||||||
02/25/14 | 19,700,000 | JPY | 212,508 | USD | 25,028 | JPM | |||||||||||||||||||||
02/26/14 | 545,337 | EUR | 727,027 | USD | (24,399 | ) | BCB | ||||||||||||||||||||
02/26/14 | 51,267 | EUR | 68,344 | USD | (2,297 | ) | BCB | ||||||||||||||||||||
02/26/14 | 182,808 | USD | 90,490,000 | CLP | (11,606 | ) | DBK | ||||||||||||||||||||
02/26/14 | 119,420 | USD | 7,654,000 | INR | 2,752 | DBK | |||||||||||||||||||||
02/26/14 | 201,152 | USD | 99,500,000 | CLP | (12,903 | ) | MSC | ||||||||||||||||||||
02/26/14 | 52,556,000 | JPY | 533,780 | USD | 33,616 | UBS | |||||||||||||||||||||
02/26/14 | 743,770 | EUR | 993,937 | USD | (30,912 | ) | UBS | ||||||||||||||||||||
02/27/14 | 54,600,000 | JPY | 583,209 | USD | 63,590 | BCB | |||||||||||||||||||||
02/27/14 | 50,045 | EUR | 66,849 | USD | (2,109 | ) | BCB | ||||||||||||||||||||
02/27/14 | 142,450 | EUR | 190,276 | USD | (6,007 | ) | BCB | ||||||||||||||||||||
02/27/14 | 275,920 | USD | 136,470,000 | CLP | (17,754 | ) | DBK | ||||||||||||||||||||
02/27/14 | 42,000 | EUR | 55,546 | USD | (2,326 | ) | DBK | ||||||||||||||||||||
02/27/14 | 12,300 | EUR | 16,267 | USD | (681 | ) | DBK | ||||||||||||||||||||
02/27/14 | 318,658 | USD | 407,500 | SGD | 4,123 | DBK | |||||||||||||||||||||
02/27/14 | 249,513 | USD | 15,997,000 | INR | 5,770 | DBK | |||||||||||||||||||||
02/27/14 | 154,645 | USD | 9,920,000 | INR | 3,660 | HSB | |||||||||||||||||||||
02/28/14 | 72,989 | USD | 36,150,000 | CLP | (4,610 | ) | DBK | ||||||||||||||||||||
02/28/14 | 126,444 | USD | 156,500 | SGD | (2,480 | ) | DBK | ||||||||||||||||||||
02/28/14 | 122,046 | USD | 156,500 | SGD | 1,918 | DBK | |||||||||||||||||||||
02/28/14 | 207,349 | USD | 13,249,000 | INR | 4,031 | DBK | |||||||||||||||||||||
02/28/14 | 59,638 | USD | 29,500,000 | CLP | (3,838 | ) | JPM | ||||||||||||||||||||
02/28/14 | 45,268 | USD | 2,901,250 | INR | 1,019 | JPM | |||||||||||||||||||||
02/28/14 | 45,200 | USD | 2,901,250 | INR | 1,088 | JPM | |||||||||||||||||||||
02/28/14 | 90,906 | USD | 5,802,500 | INR | 1,670 | JPM | |||||||||||||||||||||
02/28/14 | 132,617 | EUR | 177,609 | USD | (5,126 | ) | UBS | ||||||||||||||||||||
03/03/14 | 34,296 | USD | 2,220,000 | INR | 1,098 | CIT | |||||||||||||||||||||
03/03/14 | 189,686 | USD | 93,885,000 | CLP | (12,159 | ) | DBK | ||||||||||||||||||||
03/03/14 | 1,865,214 | EUR | 2,454,155 | USD | (115,941 | ) | DBK |
See accompanying notes to financial statements.
50
Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
03/03/14 | 168,597 | USD | 10,920,000 | INR | $ | 5,504 | HSB | ||||||||||||||||||||
03/03/14 | 20,800,000 | JPY | 228,732 | USD | 30,778 | JPM | |||||||||||||||||||||
03/04/14 | 20,800,000 | JPY | 228,446 | USD | 30,491 | HSB | |||||||||||||||||||||
03/04/14 | 23,200,000 | JPY | 252,366 | USD | 31,570 | UBS | |||||||||||||||||||||
03/05/14 | 277,638 | USD | 137,500,000 | CLP | (17,697 | ) | BCB | ||||||||||||||||||||
03/05/14 | 189,170 | USD | 93,885,000 | CLP | (11,682 | ) | DBK | ||||||||||||||||||||
03/05/14 | 13,000 | EUR | 16,933 | USD | (980 | ) | DBK | ||||||||||||||||||||
03/06/14 | 205,576 | USD | 102,120,000 | CLP | (12,542 | ) | DBK | ||||||||||||||||||||
03/07/14 | 157,427 | EUR | 205,984 | USD | (10,936 | ) | BCB | ||||||||||||||||||||
03/07/14 | 57,903,900 | JPY | 584,045 | USD | 32,961 | BCB | |||||||||||||||||||||
03/07/14 | 204,947 | USD | 101,500,000 | CLP | (13,105 | ) | DBK | ||||||||||||||||||||
03/07/14 | 1,620,000 | EUR | 2,120,418 | USD | (111,793 | ) | DBK | ||||||||||||||||||||
03/10/14 | 259,873 | EUR | 338,547 | USD | (19,534 | ) | BCB | ||||||||||||||||||||
03/10/14 | 730,071 | EUR | 953,801 | USD | (52,169 | ) | CIT | ||||||||||||||||||||
03/10/14 | 559,824 | USD | 7,354,410 | MXN | (1,279 | ) | HSB | ||||||||||||||||||||
03/10/14 | 104,000 | EUR | 135,720 | USD | �� | (7,582 | ) | HSB | |||||||||||||||||||
03/10/14 | 89,091 | USD | 44,100,000 | CLP | (5,766 | ) | MSC | ||||||||||||||||||||
03/10/14 | 294,000 | EUR | 384,185 | USD | (20,920 | ) | MSC | ||||||||||||||||||||
03/13/14 | 199,677 | USD | 98,760,000 | CLP | (13,137 | ) | DBK | ||||||||||||||||||||
03/13/14 | 27,000 | EUR | 35,588 | USD | (1,615 | ) | JPM | ||||||||||||||||||||
03/14/14 | 443,393 | USD | 553,000 | SGD | (5,352 | ) | HSB | ||||||||||||||||||||
03/17/14 | 80,099 | EUR | 104,230 | USD | (6,138 | ) | BCB | ||||||||||||||||||||
03/18/14 | 55,874 | EUR | 72,535 | USD | (4,454 | ) | CIT | ||||||||||||||||||||
03/18/14 | 405,271 | USD | 199,920,000 | CLP | (27,864 | ) | DBK | ||||||||||||||||||||
03/18/14 | 231,826 | USD | 14,696,000 | INR | 1,643 | JPM | |||||||||||||||||||||
03/19/14 | 21,026,000 | JPY | 220,225 | USD | 20,102 | CIT | |||||||||||||||||||||
03/19/14 | 56,640,000 | JPY | 596,556 | USD | 57,464 | CIT | |||||||||||||||||||||
03/19/14 | 321,222 | USD | 409,700 | SGD | 3,311 | DBK | |||||||||||||||||||||
03/19/14 | 375,135 | USD | 468,000 | SGD | (4,421 | ) | HSB | ||||||||||||||||||||
03/19/14 | 231,807 | USD | 297,000 | SGD | 3,454 | JPM | |||||||||||||||||||||
03/19/14 | 29,650,000 | JPY | 309,936 | USD | 27,731 | MSC | |||||||||||||||||||||
03/21/14 | 45,378 | EUR | 58,928 | USD | (3,599 | ) | BCB | ||||||||||||||||||||
03/21/14 | 98,483 | USD | 48,700,000 | CLP | (6,578 | ) | JPM | ||||||||||||||||||||
03/24/14 | 28,760,000 | JPY | 304,027 | USD | 30,285 | BCB | |||||||||||||||||||||
03/24/14 | 28,159,000 | JPY | 298,253 | USD | 30,232 | DBK | |||||||||||||||||||||
03/25/14 | 13,332,130 | JPY | 140,560 | USD | 13,662 | BCB | |||||||||||||||||||||
03/26/14 | 94,407 | EUR | 122,795 | USD | (7,288 | ) | CIT | ||||||||||||||||||||
03/26/14 | 142,000 | EUR | 184,494 | USD | (11,169 | ) | DBK | ||||||||||||||||||||
03/26/14 | 120,327 | USD | 7,654,000 | INR | 1,039 | DBK | |||||||||||||||||||||
03/28/14 | 19,975 | USD | 1,265,000 | INR | 74 | DBK | |||||||||||||||||||||
03/28/14 | 89,533 | USD | 5,688,000 | INR | 617 | JPM | |||||||||||||||||||||
03/31/14 | 22,832 | EUR | 29,440 | USD | (2,020 | ) | DBK | ||||||||||||||||||||
04/03/14 | 78,175 | EUR | 100,467 | USD | (7,251 | ) | DBK | ||||||||||||||||||||
04/04/14 | 207,230 | USD | 102,330,000 | CLP | (14,410 | ) | DBK | ||||||||||||||||||||
04/04/14 | 326,000 | EUR | 419,611 | USD | (29,585 | ) | DBK | ||||||||||||||||||||
04/07/14 | 122,716 | EUR | 157,942 | USD | (11,149 | ) | BCB | ||||||||||||||||||||
04/07/14 | 34,761 | USD | 2,199,000 | INR | 10 | CIT | |||||||||||||||||||||
04/07/14 | 219,198 | USD | 13,884,000 | INR | 342 | DBK | |||||||||||||||||||||
04/07/14 | 253,300 | USD | 16,044,000 | INR | 395 | HSB | |||||||||||||||||||||
04/10/14 | 602,000 | EUR | 786,736 | USD | (42,765 | ) | HSB | ||||||||||||||||||||
04/11/14 | 121,475 | EUR | 158,980 | USD | (8,401 | ) | DBK | ||||||||||||||||||||
04/11/14 | 301,000 | EUR | 394,084 | USD | (20,667 | ) | UBS | ||||||||||||||||||||
04/14/14 | 244,000 | EUR | 319,809 | USD | (16,402 | ) | JPM | ||||||||||||||||||||
04/14/14 | 170,050 | USD | 83,180,000 | CLP | (13,472 | ) | MSC | ||||||||||||||||||||
04/16/14 | 457,263 | USD | 1,465,895 | MYR | (12,448 | ) | DBK | ||||||||||||||||||||
04/16/14 | 510,253 | EUR | 667,885 | USD | (35,201 | ) | HSB | ||||||||||||||||||||
04/21/14 | 22,030,000 | JPY | 226,468 | USD | 16,746 | BCB | |||||||||||||||||||||
04/21/14 | 374,392 | USD | 1,155,000 | MYR | (24,015 | ) | JPM | ||||||||||||||||||||
04/21/14 | 130,627 | USD | 402,984 | MYR | (8,379 | ) | JPM | ||||||||||||||||||||
04/21/14 | 13,240,000 | JPY | 135,917 | USD | 9,874 | JPM | |||||||||||||||||||||
04/21/14 | 151,315 | USD | 74,530,000 | CLP | (11,118 | ) | MSC | ||||||||||||||||||||
04/22/14 | 119,438 | EUR | 157,297 | USD | (7,279 | ) | BCB | ||||||||||||||||||||
04/22/14 | 12,300,000 | JPY | 125,696 | USD | 8,601 | CIT | |||||||||||||||||||||
04/22/14 | 32,855 | EUR | 43,008 | USD | (2,263 | ) | JPM | ||||||||||||||||||||
04/22/14 | 15,980,000 | JPY | 163,243 | USD | 11,115 | JPM |
See accompanying notes to financial statements.
51
Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
04/23/14 | 341,000 | EUR | 446,949 | USD | $ | (22,924 | ) | DBK | |||||||||||||||||||
04/25/14 | 220,162 | EUR | 287,576 | USD | (15,792 | ) | BCB | ||||||||||||||||||||
04/28/14 | 95,064 | USD | 47,223,000 | CLP | (6,296 | ) | JPM | ||||||||||||||||||||
04/30/14 | 84,263 | EUR | 109,896 | USD | (6,213 | ) | BCB | ||||||||||||||||||||
04/30/14 | 535,000 | EUR | 710,277 | USD | (26,919 | ) | DBK | ||||||||||||||||||||
05/05/14 | 336,531 | EUR | 446,052 | USD | (17,668 | ) | BCB | ||||||||||||||||||||
05/07/14 | 32,000 | EUR | 41,995 | USD | (2,099 | ) | BCB | ||||||||||||||||||||
05/07/14 | 32,000 | EUR | 42,099 | USD | (1,995 | ) | GSC | ||||||||||||||||||||
05/07/14 | 43,000 | EUR | 56,571 | USD | (2,681 | ) | GSC | ||||||||||||||||||||
05/08/14 | 51,000 | EUR | 66,790 | USD | (3,485 | ) | GSC | ||||||||||||||||||||
05/12/14 | 14,673,000 | JPY | 148,727 | USD | 9,022 | CIT | |||||||||||||||||||||
05/12/14 | 32,000 | EUR | 42,277 | USD | (1,818 | ) | GSC | ||||||||||||||||||||
05/12/14 | 105,477 | USD | 52,000,000 | CLP | (7,866 | ) | MSC | ||||||||||||||||||||
05/12/14 | 16,000 | EUR | 21,126 | USD | (921 | ) | UBS | ||||||||||||||||||||
05/13/14 | 19,620,000 | JPY | 198,148 | USD | 11,340 | GSC | |||||||||||||||||||||
05/13/14 | 203,000 | EUR | 271,472 | USD | (8,252 | ) | GSC | ||||||||||||||||||||
05/13/14 | 14,666,000 | JPY | 148,089 | USD | 8,450 | UBS | |||||||||||||||||||||
05/14/14 | 14,665,000 | JPY | 145,767 | USD | 6,136 | CIT | |||||||||||||||||||||
05/19/14 | 151,802 | USD | 192,500 | SGD | 698 | DBK | |||||||||||||||||||||
05/20/14 | 62,000 | EUR | 80,337 | USD | (5,097 | ) | GSC | ||||||||||||||||||||
05/20/14 | 92,000 | EUR | 119,209 | USD | (7,563 | ) | GSC | ||||||||||||||||||||
05/21/14 | 62,000 | EUR | 79,810 | USD | (5,624 | ) | BCB | ||||||||||||||||||||
05/27/14 | 290,055 | EUR | 1,238,000 | PLN | 7,055 | MSC | |||||||||||||||||||||
06/05/14 | 22,710 | EUR | 29,669 | USD | (1,625 | ) | BCB | ||||||||||||||||||||
06/09/14 | 46,300,000 | JPY | 466,875 | USD | 25,956 | CIT | |||||||||||||||||||||
06/09/14 | 74,750 | EUR | 98,152 | USD | (4,852 | ) | DBK | ||||||||||||||||||||
06/09/14 | 58,800 | EUR | 77,209 | USD | (3,817 | ) | DBK | ||||||||||||||||||||
06/09/14 | 69,400,000 | JPY | 700,939 | USD | 40,037 | HSB | |||||||||||||||||||||
06/09/14 | 46,500,000 | JPY | 467,032 | USD | 24,208 | JPM | |||||||||||||||||||||
06/10/14 | 62,600,000 | JPY | 643,264 | USD | 47,114 | BCB | |||||||||||||||||||||
06/10/14 | 66,670,000 | JPY | 689,224 | USD | 54,315 | HSB | |||||||||||||||||||||
06/10/14 | 45,210,000 | JPY | 459,468 | USD | 28,926 | JPM | |||||||||||||||||||||
06/11/14 | 87,565 | EUR | 384,000 | PLN | 5,384 | CIT | |||||||||||||||||||||
06/11/14 | 22,100,000 | JPY | 229,978 | USD | 19,515 | DBK | |||||||||||||||||||||
06/11/14 | 61,770,000 | JPY | 643,279 | USD | 55,030 | JPM | |||||||||||||||||||||
06/12/14 | 451,800 | EUR | 1,967,000 | PLN | 23,054 | DBK | |||||||||||||||||||||
06/13/14 | 69,000 | EUR | 91,615 | USD | (3,467 | ) | DBK | ||||||||||||||||||||
06/16/14 | 17,886,000 | JPY | 188,274 | USD | 17,935 | CIT | |||||||||||||||||||||
06/17/14 | 26,000,000 | JPY | 275,176 | USD | 27,562 | JPM | |||||||||||||||||||||
06/20/14 | 46,960,000 | JPY | 457,049 | USD | 9,811 | DBK | |||||||||||||||||||||
06/20/14 | 279,587 | USD | 352,000 | SGD | (715 | ) | HSB | ||||||||||||||||||||
06/23/14 | 351,502 | USD | 441,100 | SGD | (2,039 | ) | DBK | ||||||||||||||||||||
06/30/14 | 731,435 | EUR | 6,480,000 | SEK | (1,949 | ) | UBS | ||||||||||||||||||||
07/14/14 | 315,506 | USD | 1,023,565 | MYR | (6,467 | ) | DBK | ||||||||||||||||||||
07/15/14 | 360,730 | USD | 1,160,000 | MYR | (10,519 | ) | DBK | ||||||||||||||||||||
07/16/14 | 161,000 | EUR | 210,491 | USD | (11,377 | ) | BCB | ||||||||||||||||||||
07/16/14 | 461,886 | EUR | 4,056,247 | SEK | (6,958 | ) | MSC | ||||||||||||||||||||
07/16/14 | 842,872 | EUR | 7,423,850 | SEK | (9,311 | ) | UBS | ||||||||||||||||||||
07/18/14 | 253,000 | EUR | 332,758 | USD | (15,894 | ) | BCB | ||||||||||||||||||||
07/18/14 | 71,760 | USD | 232,000 | MYR | (1,730 | ) | DBK | ||||||||||||||||||||
07/18/14 | 191,972 | EUR | 813,000 | MYR | (19,143 | ) | DBK | ||||||||||||||||||||
07/22/14 | 139,000 | EUR | 182,343 | USD | (9,211 | ) | DBK | ||||||||||||||||||||
07/22/14 | 215,064 | EUR | 918,000 | MYR | (19,337 | ) | DBK | ||||||||||||||||||||
07/22/14 | 112,692 | USD | 366,000 | MYR | (2,238 | ) | DBK | ||||||||||||||||||||
07/22/14 | 558,745 | EUR | 4,866,106 | SEK | (14,821 | ) | MSC | ||||||||||||||||||||
07/23/14 | 126,000 | EUR | 165,567 | USD | (8,073 | ) | DBK | ||||||||||||||||||||
07/24/14 | 32,786,000 | JPY | 329,553 | USD | 17,220 | CIT | |||||||||||||||||||||
07/24/14 | 51,000,000 | JPY | 511,894 | USD | 26,046 | JPM | |||||||||||||||||||||
07/25/14 | 138,169 | USD | 445,000 | MYR | (3,897 | ) | DBK | ||||||||||||||||||||
07/25/14 | 277,008 | EUR | 1,180,000 | MYR | (25,699 | ) | DBK | ||||||||||||||||||||
07/25/14 | 184,000 | EUR | 243,365 | USD | (10,205 | ) | DBK | ||||||||||||||||||||
07/25/14 | 184,000 | EUR | 243,590 | USD | (9,979 | ) | GSC | ||||||||||||||||||||
07/25/14 | 17,600,000 | JPY | 177,554 | USD | 9,887 | JPM | |||||||||||||||||||||
07/28/14 | 30,914 | EUR | 40,940 | USD | (1,663 | ) | CIT | ||||||||||||||||||||
07/29/14 | 60,350,000 | JPY | 608,011 | USD | 33,065 | BCB |
See accompanying notes to financial statements.
52
Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
07/30/14 | 273,769 | EUR | 1,180,000 | MYR | $ | (21,342 | ) | JPM | |||||||||||||||||||
07/30/14 | 3,999,335 | USD | 13,031,032 | MYR | (68,566 | ) | JPM | ||||||||||||||||||||
07/31/14 | 1,152,353 | USD | 1,454,500 | SGD | 181 | JPM | |||||||||||||||||||||
07/31/14 | 535,000 | EUR | 711,237 | USD | (26,056 | ) | JPM | ||||||||||||||||||||
07/31/14 | 168,800 | USD | 89,810,000 | CLP | (1,558 | ) | MSC | ||||||||||||||||||||
08/01/14 | 919,456 | USD | 1,165,870 | SGD | 4,375 | MSC | |||||||||||||||||||||
08/01/14 | 536,000 | EUR | 713,362 | USD | (25,310 | ) | UBS | ||||||||||||||||||||
08/04/14 | 97,592 | EUR | 129,588 | USD | (4,907 | ) | BCB | ||||||||||||||||||||
08/04/14 | 535,000 | EUR | 709,105 | USD | (28,195 | ) | HSB | ||||||||||||||||||||
08/05/14 | 335,000 | EUR | 444,290 | USD | (17,385 | ) | BCB | ||||||||||||||||||||
08/06/14 | 366,500 | EUR | 484,771 | USD | (20,317 | ) | JPM | ||||||||||||||||||||
08/08/14 | 59,760 | EUR | 79,558 | USD | (2,799 | ) | CIT | ||||||||||||||||||||
08/11/14 | 15,430,000 | JPY | 159,450 | USD | 12,433 | BCB | |||||||||||||||||||||
08/11/14 | 15,440,000 | JPY | 159,554 | USD | 12,441 | CIT | |||||||||||||||||||||
08/11/14 | 17,124 | EUR | 22,817 | USD | (782 | ) | CIT | ||||||||||||||||||||
08/11/14 | 273,000 | EUR | 364,005 | USD | (12,232 | ) | DBK | ||||||||||||||||||||
08/11/14 | 360,500 | EUR | 480,049 | USD | (16,776 | ) | JPM | ||||||||||||||||||||
08/12/14 | 514,381 | USD | 651,000 | SGD | 1,501 | DBK | |||||||||||||||||||||
08/12/14 | 15,430,000 | JPY | 160,582 | USD | 13,564 | DBK | |||||||||||||||||||||
08/12/14 | 107,000 | EUR | 143,256 | USD | (4,207 | ) | GSC | ||||||||||||||||||||
08/18/14 | 201,575 | USD | 256,000 | SGD | 1,298 | BCB | |||||||||||||||||||||
08/18/14 | 93,656 | USD | 106,000,000 | KRW | 6,161 | JPM | |||||||||||||||||||||
08/19/14 | 151,838 | USD | 192,500 | SGD | 714 | DBK | |||||||||||||||||||||
08/19/14 | 831,019 | EUR | 3,590,000 | PLN | 28,310 | DBK | |||||||||||||||||||||
08/19/14 | 51,438,000 | JPY | 524,038 | USD | 33,902 | DBK | |||||||||||||||||||||
08/19/14 | 151,467 | USD | 192,000 | SGD | 688 | HSB | |||||||||||||||||||||
08/20/14 | 96,755,000 | JPY | 997,474 | USD | 75,518 | HSB | |||||||||||||||||||||
08/20/14 | 46,522,000 | JPY | 478,486 | USD | 35,189 | JPM | |||||||||||||||||||||
08/20/14 | 23,117,000 | JPY | 237,872 | USD | 17,596 | JPM | |||||||||||||||||||||
08/20/14 | 84,372 | USD | 44,900,000 | CLP | (927 | ) | MSC | ||||||||||||||||||||
08/21/14 | 761,000 | EUR | 1,017,301 | USD | (31,502 | ) | JPM | ||||||||||||||||||||
08/22/14 | 23,068,000 | JPY | 237,913 | USD | 18,099 | BCB | |||||||||||||||||||||
08/25/14 | 131,855 | EUR | 176,763 | USD | (4,960 | ) | BCB | ||||||||||||||||||||
08/25/14 | 46,090,000 | JPY | 474,463 | USD | 35,262 | CIT | |||||||||||||||||||||
08/25/14 | 22,797,000 | JPY | 234,571 | USD | 17,334 | DBK | |||||||||||||||||||||
08/25/14 | 45,752,000 | JPY | 469,776 | USD | 33,796 | HSB | |||||||||||||||||||||
08/26/14 | 64,764,000 | JPY | 658,840 | USD | 41,685 | BCB | |||||||||||||||||||||
08/26/14 | 434,804 | EUR | 3,820,973 | SEK | (6,585 | ) | DBK | ||||||||||||||||||||
08/26/14 | 45,992,000 | JPY | 467,867 | USD | 29,596 | JPM | |||||||||||||||||||||
08/27/14 | 318,783 | USD | 407,500 | SGD | 4,166 | DBK | |||||||||||||||||||||
08/27/14 | 38,472,000 | JPY | 389,787 | USD | 23,173 | DBK | |||||||||||||||||||||
08/27/14 | 73,808,000 | JPY | 747,900 | USD | 44,556 | HSB | |||||||||||||||||||||
08/27/14 | 33,447,000 | JPY | 339,348 | USD | 20,619 | JPM | |||||||||||||||||||||
08/27/14 | 327,271 | EUR | 437,637 | USD | (13,412 | ) | JPM | ||||||||||||||||||||
08/29/14 | 51,798 | EUR | 69,171 | USD | (2,218 | ) | DBK | ||||||||||||||||||||
08/29/14 | 22,848,000 | JPY | 235,148 | USD | 17,416 | JPM | |||||||||||||||||||||
09/03/14 | 27,000 | EUR | 35,756 | USD | (1,456 | ) | DBK | ||||||||||||||||||||
09/03/14 | 59,000 | EUR | 78,134 | USD | (3,182 | ) | DBK | ||||||||||||||||||||
09/05/14 | 74,750 | EUR | 98,647 | USD | (4,377 | ) | DBK | ||||||||||||||||||||
09/19/14 | 33,313 | EUR | 44,506 | USD | (1,409 | ) | BCB | ||||||||||||||||||||
09/22/14 | 616,157 | EUR | 823,555 | USD | (25,695 | ) | UBS | ||||||||||||||||||||
09/23/14 | 384,000 | EUR | 521,019 | USD | (8,250 | ) | DBK | ||||||||||||||||||||
09/24/14 | 81,780 | EUR | 110,710 | USD | (2,008 | ) | BCB | ||||||||||||||||||||
09/26/14 | 179,000 | EUR | 241,547 | USD | (5,171 | ) | DBK | ||||||||||||||||||||
09/30/14 | 183,992 | USD | 96,320,000 | CLP | (5,717 | ) | DBK | ||||||||||||||||||||
09/30/14 | 9,763,000 | JPY | 99,014 | USD | 5,950 | JPM | |||||||||||||||||||||
10/01/14 | 234,201 | USD | 769,000 | MYR | (3,070 | ) | HSB | ||||||||||||||||||||
10/07/14 | 1,455,084 | USD | 19,820,860 | MXN | 27,111 | HSB | |||||||||||||||||||||
10/14/14 | 903,767 | USD | 12,237,000 | MXN | 10,773 | DBK | |||||||||||||||||||||
10/15/14 | 1,260,000 | EUR | 1,706,740 | USD | (30,026 | ) | CIT | ||||||||||||||||||||
10/20/14 | 1,004,000 | EUR | 1,363,462 | USD | (20,456 | ) | HSB | ||||||||||||||||||||
10/20/14 | 144,354 | USD | 467,000 | MYR | (4,134 | ) | JPM | ||||||||||||||||||||
10/22/14 | 27,530,000 | JPY | 282,301 | USD | 19,812 | BCB | |||||||||||||||||||||
10/22/14 | 262,223 | USD | 841,000 | MYR | (9,733 | ) | HSB | ||||||||||||||||||||
10/24/14 | 146,102 | USD | 76,119,000 | CLP | (5,537 | ) | CIT |
See accompanying notes to financial statements.
53
Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
10/24/14 | 195,001 | USD | 628,000 | MYR | $ | (6,479 | ) | DBK | |||||||||||||||||||
10/24/14 | 129,288 | USD | 418,635 | MYR | (3,617 | ) | HSB | ||||||||||||||||||||
10/27/14 | 28,881 | EUR | 39,764 | USD | (47 | ) | BCB | ||||||||||||||||||||
10/31/14 | 131,019 | USD | 419,000 | MYR | (5,285 | ) | JPM | ||||||||||||||||||||
11/10/14 | 13,826,020 | JPY | 140,637 | USD | 8,780 | CIT | |||||||||||||||||||||
11/12/14 | 22,910,000 | JPY | 232,353 | USD | 13,858 | HSB | |||||||||||||||||||||
11/13/14 | 13,582,000 | JPY | 137,345 | USD | 7,810 | JPM | |||||||||||||||||||||
11/14/14 | 18,200,000 | JPY | 183,165 | USD | 9,586 | MSC | |||||||||||||||||||||
11/17/14 | 19,766,000 | JPY | 199,616 | USD | 11,095 | CIT | |||||||||||||||||||||
11/17/14 | 956,000 | EUR | 1,285,552 | USD | (32,305 | ) | CIT | ||||||||||||||||||||
11/17/14 | 13,769,800 | JPY | 138,923 | USD | 7,592 | SCB | |||||||||||||||||||||
11/19/14 | 56,774,000 | JPY | 568,320 | USD | 26,816 | CIT | |||||||||||||||||||||
11/19/14 | 124,307 | USD | 405,080 | MYR | (2,871 | ) | DBK | ||||||||||||||||||||
11/19/14 | 45,867,000 | JPY | 458,854 | USD | 21,379 | DBK | |||||||||||||||||||||
11/20/14 | 63,773,000 | JPY | 639,906 | USD | 31,639 | CIT | |||||||||||||||||||||
11/20/14 | 69,103 | USD | 225,000 | MYR | (1,656 | ) | HSB | ||||||||||||||||||||
11/20/14 | 11,968,000 | JPY | 120,027 | USD | 5,876 | HSB | |||||||||||||||||||||
11/20/14 | 18,297,000 | JPY | 183,426 | USD | 8,909 | JPM | |||||||||||||||||||||
11/20/14 | 22,904,000 | JPY | 229,698 | USD | 11,240 | JPM | |||||||||||||||||||||
12/04/14 | 100,000 | EUR | 135,466 | USD | (2,392 | ) | DBK | ||||||||||||||||||||
12/09/14 | 202,851 | EUR | 276,892 | USD | (2,758 | ) | HSB | ||||||||||||||||||||
12/09/14 | 30,600 | EUR | 41,804 | USD | (381 | ) | SCB | ||||||||||||||||||||
12/15/14 | 89,000 | EUR | 122,761 | USD | 64 | JPM | |||||||||||||||||||||
12/17/14 | 401,911 | USD | 1,323,172 | MYR | (5,831 | ) | JPM | ||||||||||||||||||||
12/22/14 | 46,870,000 | JPY | 456,963 | USD | 9,744 | DBK | |||||||||||||||||||||
12/22/14 | 46,950,000 | JPY | 457,041 | USD | 9,058 | HSB | |||||||||||||||||||||
12/26/14 | 22,560,000 | JPY | 217,561 | USD | 2,290 | BCB | |||||||||||||||||||||
12/26/14 | 17,150,000 | JPY | 165,353 | USD | 1,705 | CIT | |||||||||||||||||||||
12/26/14 | 18,050,000 | JPY | 174,103 | USD | 1,867 | CIT | |||||||||||||||||||||
$ | (100,721 | ) |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Principal amounts for foreign debt securities are denominated in the currencies indicated. United States debt securities are denominated in U.S. Dollars.
(c) Rate represents annualized yield at date of purchase.
(d) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program.
(e) Variable rate security.
(f) Step rate security.
(g) At December 31, 2013 the cost of securities for federal income tax purposes was $121,066,288. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 6,991,215 | |||||
Gross unrealized depreciation | (1,999,375 | ) | |||||
Net unrealized appreciation | $ | 4,991,840 |
See accompanying notes to financial statements.
54
Advantus International Bond Fund
Investments in Securities – continued
Currency Legend
BRL Brazilian Real
CAD Canadian Dollar
CLP Chilean Peso
EUR Euro
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
LKR Sri Lankan Rupee
MXN Mexican New Peso
MYR Malaysian Ringgit
PHP Philippine Peso
PLN Polish Zloty
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
Counterparty Legend
BCB Barclays Bank PLC
CIT Citibank NA
DBK Deutsche Bank AG
GSC Goldman Sachs
HSB HSBC Bank PLC
JPM JPMorgan Chase Bank NA
MSC Morgan Stanley and Co., Inc.
SCB Standard Chartered Bank
UBS UBS AG
See accompanying notes to financial statements.
55
Advantus Managed Volatility Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (35.2%) | |||||||||||
Government Obligations (4.6%) | |||||||||||
U.S. Government Agencies and Obligations (4.6%) | |||||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (0.4%) | |||||||||||
Federal Home Loan Mortgage Corp., 3.000%, 09/01/43 | $ | 249,158 | $ | 236,341 | |||||||
Federal National Mortgage Association (FNMA) (0.5%) | |||||||||||
Federal National Mortgage Assoc., 3.500%, 02/01/43 | 238,544 | 237,580 | |||||||||
U.S. Treasury (3.7%) | |||||||||||
U.S. Treasury Note | |||||||||||
0.125%, 04/30/15 (b) | 1,000,000 | 998,828 | |||||||||
0.625%, 04/30/18 (b) | 1,000,000 | 964,375 | |||||||||
1,963,203 | |||||||||||
Total government obligations (cost: $ 2,480,244) | 2,437,124 | ||||||||||
Corporate Obligations (30.6%) | |||||||||||
Basic Materials (0.9%) | |||||||||||
Mining (0.9%) | |||||||||||
BHP Billiton Finance USA, Ltd., 2.875%, 02/24/22 (c) | 250,000 | 239,080 | |||||||||
Rio Tinto Finance USA, Ltd., 3.750%, 09/20/21 (c) | 250,000 | 252,399 | |||||||||
491,479 | |||||||||||
Communications (2.9%) | |||||||||||
Cable/Satellite TV (0.9%) | |||||||||||
Comcast Corp., 4.650%, 07/15/42 | 250,000 | 232,651 | |||||||||
DIRECTV Holdings LLC/ DIRECTV Financing Co., Inc., 4.600%, 02/15/21 | 250,000 | 258,171 | |||||||||
490,822 | |||||||||||
Media (0.6%) | |||||||||||
Viacom, Inc., 5.625%, 09/15/19 | 250,000 | 284,331 | |||||||||
Telephone — Integrated (0.9%) | |||||||||||
AT&T, Inc., 4.350%, 06/15/45 | 250,000 | 211,648 | |||||||||
Verizon Communications, Inc., 5.550%, 02/15/16 | 250,000 | 273,405 | |||||||||
485,053 | |||||||||||
Wireless Telecommunication Services (0.5%) | |||||||||||
Rogers Communications, Inc., 4.100%, 10/01/23 (c) | 250,000 | 250,471 | |||||||||
Consumer Cyclical (0.5%) | |||||||||||
Retail (0.5%) | |||||||||||
Wal-Mart Stores, Inc., 1.950%, 12/15/18 | 250,000 | 249,098 |
Principal | Value(a) | ||||||||||
Consumer Staples (0.9%) | |||||||||||
Beverages (0.9%) | |||||||||||
The Coca-Cola Co., 3.200%, 11/01/23 | $ | 500,000 | $ | 480,911 | |||||||
Consumer, Non-cyclical (1.5%) | |||||||||||
Commercial Service — Finance (0.5%) | |||||||||||
Moody's Corp., 4.875%, 02/15/24 | 250,000 | 249,774 | |||||||||
Drugstore Chains (0.5%) | |||||||||||
CVS Pass-Through Trust, 6.943%, 01/10/30 | 214,763 | 246,140 | |||||||||
Food (0.5%) | |||||||||||
ConAgra Foods, Inc., 5.819%, 06/15/17 | 250,000 | 281,748 | |||||||||
Energy (3.8%) | |||||||||||
Oil, Gas & Consumable Fuels (1.2%) | |||||||||||
Apache Corp., 3.250%, 04/15/22 | 181,000 | 178,331 | |||||||||
Chevron Corp., 3.191%, 06/24/23 | 250,000 | 239,988 | |||||||||
EOG Resources, Inc., 2.625%, 03/15/23 | 250,000 | 227,442 | |||||||||
645,761 | |||||||||||
Pipelines (2.6%) | |||||||||||
El Paso Natural Gas Co. LLC, 7.500%, 11/15/26 | 250,000 | 303,279 | |||||||||
Enbridge Energy Partners L.P., 6.500%, 04/15/18 | 250,000 | 290,964 | |||||||||
Enterprise Products Operating LLC, 5.750%, 03/01/35 | 250,000 | 264,357 | |||||||||
Plains All American Pipeline L.P./ PAA Finance Corp., 3.850%, 10/15/23 | 250,000 | 243,876 | |||||||||
Spectra Energy Partners L.P., 2.950%, 09/25/18 | 250,000 | 253,406 | |||||||||
�� | 1,355,882 | ||||||||||
Financial (8.7%) | |||||||||||
Banks (4.4%) | |||||||||||
Bank of America Corp., 5.700%, 01/24/22 | 250,000 | 282,964 | |||||||||
Bank of Montreal, 2.375%, 01/25/19 (c) | 250,000 | 249,276 | |||||||||
Capital One Financial Corp., 4.750%, 07/15/21 | 250,000 | 265,837 | |||||||||
Citigroup, Inc., 5.300%, 01/07/16 | 250,000 | 270,231 | |||||||||
HSBC Bank USA NA, 4.875%, 08/24/20 | 250,000 | 269,808 | |||||||||
JPMorgan Chase & Co., 4.500%, 01/24/22 | 250,000 | 264,433 | |||||||||
PNC Bank NA, 3.800%, 07/25/23 | 250,000 | 242,460 | |||||||||
SunTrust Bank, 2.750%, 05/01/23 | 250,000 | 226,669 |
See accompanying notes to financial statements.
56
Advantus Managed Volatility Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Wells Fargo & Co., 5.125%, 09/15/16 | $ | 250,000 | $ | 275,183 | |||||||
2,346,861 | |||||||||||
Insurance (0.9%) | |||||||||||
Liberty Mutual Group, Inc., 4.250%, 06/15/23 (d) | 250,000 | 241,383 | |||||||||
Metropolitan Life Global Funding I, 3.875%, 04/11/22 (d) | 250,000 | 252,092 | |||||||||
493,475 | |||||||||||
Real Estate Investment Trust — Shopping Centers (0.5%) | |||||||||||
Retail Opportunity Investments Partnership L.P., 5.000%, 12/15/23 | 250,000 | 248,909 | |||||||||
Real Estate Investment Trust — Single Tenant (1.5%) | |||||||||||
Realty Income Corp., 5.950%, 09/15/16 | 250,000 | 277,814 | |||||||||
Tanger Properties L.P., 3.875%, 12/01/23 | 500,000 | 481,968 | |||||||||
759,782 | |||||||||||
Real Estate Investment Trust — Storage (0.9%) | |||||||||||
CubeSmart L.P., 4.375%, 12/15/23 | 500,000 | 488,524 | |||||||||
Specialized REIT's (0.5%) | |||||||||||
HCP, Inc., 4.250%, 11/15/23 | 250,000 | 244,549 | |||||||||
Health Care (3.7%) | |||||||||||
Biotechnology (0.5%) | |||||||||||
Amgen, Inc., 5.700%, 02/01/19 | 250,000 | 288,101 | |||||||||
Health Care Equipment & Supplies (0.5%) | |||||||||||
St Jude Medical, Inc., 4.750%, 04/15/43 | 250,000 | 236,937 | |||||||||
Health Care Providers & Services (0.9%) | |||||||||||
Laboratory Corp. of America Holdings, 4.000%, 11/01/23 | 250,000 | 240,228 | |||||||||
UnitedHealth Group, Inc., 2.750%, 02/15/23 | 250,000 | 228,914 | |||||||||
469,142 | |||||||||||
Pharmaceuticals (1.8%) | |||||||||||
Bristol-Myers Squibb Co., 3.250%, 11/01/23 | 500,000 | 479,759 | |||||||||
Mylan, Inc., 4.200%, 11/29/23 | 500,000 | 491,796 | |||||||||
971,555 |
Shares/ Principal | Value(a) | ||||||||||
Industrials (2.8%) | |||||||||||
Aerospace & Defense (1.4%) | |||||||||||
BAE Systems Holdings, Inc., 5.200%, 08/15/15 (d) | $ | 250,000 | $ | 265,446 | |||||||
Rockwell Collins, Inc., 3.700%, 12/15/23 | 500,000 | 493,607 | |||||||||
759,053 | |||||||||||
Machinery (1.4%) | |||||||||||
Caterpillar Financial Services Corp., 3.750%, 11/24/23 | 750,000 | 740,470 | |||||||||
Information Technology (0.9%) | |||||||||||
IT Services (0.9%) | |||||||||||
The Western Union Co., 3.350%, 05/22/19 | 500,000 | 499,105 | |||||||||
Materials (0.4%) | |||||||||||
Chemicals (0.4%) | |||||||||||
The Mosaic Co., 5.450%, 11/15/33 | 200,000 | 203,770 | |||||||||
Transportation (1.8%) | |||||||||||
Airlines (0.5%) | |||||||||||
United Airlines 2013-1 Class A Pass Through Trust, 4.300%, 02/15/27 (e) | 250,000 | 254,375 | |||||||||
Transport — Rail (1.3%) | |||||||||||
Kansas City Southern Railway, 4.300%, 05/15/43 (d) | 250,000 | 218,169 | |||||||||
Norfolk Southern Corp., 3.850%, 01/15/24 | 500,000 | 491,129 | |||||||||
709,298 | |||||||||||
Utilities (1.8%) | |||||||||||
Electric Utilities (1.3%) | |||||||||||
Entergy Louisiana LLC, 3.300%, 12/01/22 | 250,000 | 235,087 | |||||||||
MidAmerican Energy Holdings Co., 3.750%, 11/15/23 (d) | 250,000 | 243,823 | |||||||||
PPL Capital Funding, Inc., 3.400%, 06/01/23 | 250,000 | 232,623 | |||||||||
711,533 | |||||||||||
Multi-Utilities (0.5%) | |||||||||||
Dominion Gas Holdings LLC, 3.550%, 11/01/23 (d) | 250,000 | 240,806 | |||||||||
Total corporate obligations (cost: $16,836,889) | 16,177,715 | ||||||||||
Total long-term debt securities (cost: $19,317,133) | 18,614,839 | ||||||||||
Mutual Funds (26.8%) | |||||||||||
Investment Companies (26.8%) | |||||||||||
Advantus Index 500 Fund (f) | 2,081,359 | 14,199,025 | |||||||||
Total mutual funds (cost: $12,000,000) | 14,199,025 |
See accompanying notes to financial statements.
57
Advantus Managed Volatility Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Short-Term Securities (36.4%) | |||||||||||
Investment Companies (36.4%) | |||||||||||
Dreyfus Treasury Cash Management Fund, current rate 0.010% | 19,265,725 | $ | 19,265,725 | ||||||||
Total short-term securities (cost: $19,265,725) | 19,265,725 | ||||||||||
Total investments in securities (cost: $50,582,858) (g) | 52,079,589 | ||||||||||
Cash and other assets in excess of liabilities (1.6%) | 851,210 | ||||||||||
Total net assets (100.0%) | $ | 52,930,799 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2013, securities with an aggregate market value of $1,463,789 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
10 Year U.S. Treasury Note | March 2014 | 8 | Short | $ | 15,320 | ||||||||||||||
S&P 500 E-Mini Index Future | March 2014 | 8 | Long | 28,948 | |||||||||||||||
S&P 500 Index Future | March 2014 | 60 | Long | 1,035,566 | |||||||||||||||
76 | $ | 1,079,834 |
(c) Foreign security: The Fund held 1.9% of net assets in foreign securities at December 31, 2013.
(d) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program.
(e) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(f) Affiliated security. (See Note 8.)
(g) At December 31, 2013 the cost of securities for federal income tax purposes was $50,582,858. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 2,217,022 | |||||
Gross unrealized depreciation | (720,291 | ) | |||||
Net unrealized appreciation | $ | 1,496,731 |
See accompanying notes to financial statements.
58
Advantus Money Market Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Commercial Paper (15.7%) | |||||||||||
Consumer Staples (7.3%) | |||||||||||
Beverages (3.9%) | |||||||||||
Coca-Cola Co., 0.071%, 01/06/14 (b) (c) | $ | 3,500,000 | $ | 3,499,966 | |||||||
Food & Staples Retailing (2.3%) | |||||||||||
Wal-Mart Stores, Inc., 0.051%, 01/13/14 (b) (c) | 2,000,000 | 1,999,967 | |||||||||
Personal Care (1.1%) | |||||||||||
Proctor & Gamble Co., 0.061%, 01/13/14 (b) (c) | 1,000,000 | 999,980 | |||||||||
Financial (2.2%) | |||||||||||
Insurance (2.2%) | |||||||||||
Massachusetts Mutual Life Insurance Co., 0.132%, 01/21/14 (b) (c) | 2,000,000 | 1,999,855 | |||||||||
Industrials (6.2%) | |||||||||||
Aerospace & Defense (1.7%) | |||||||||||
Honeywell International, Inc., 0.091%, 02/21/14 (b) (c) | 1,500,000 | 1,499,809 | |||||||||
Electrical Equipment (1.1%) | |||||||||||
Emerson Electric Co., 0.071%, 01/06/14 (b) (c) | 1,000,000 | 999,990 | |||||||||
Machinery (3.4%) | |||||||||||
Parker-Hannifin Corp. | |||||||||||
0.081%, 02/07/14 (b) (c) | 1,000,000 | 999,918 | |||||||||
0.091%, 01/10/14 (b) (c) | 2,000,000 | 1,999,955 | |||||||||
2,999,873 | |||||||||||
Total commercial paper (cost: $13,999,440) | 13,999,440 | ||||||||||
Certificates of Deposit (7.8%) | |||||||||||
Financial (7.8%) | |||||||||||
Banks (7.8%) | |||||||||||
Bank of Nova Scotia, 0.464%, 01/17/14 (d) | 3,250,000 | 3,250,210 | |||||||||
Wells Fargo Bank, NA, 0.237%, 11/14/14 (d) | 3,750,000 | 3,750,000 | |||||||||
7,000,210 | |||||||||||
Total certificates of deposit (cost: $7,000,210) | 7,000,210 | ||||||||||
Corporate Bonds & Notes (24.5%) | |||||||||||
Consumer Staples (4.4%) | |||||||||||
Food & Staples Retailing (4.4%) | |||||||||||
Target Corp., 0.416%, 07/18/14 (d) | 3,925,000 | 3,929,641 | |||||||||
Energy (4.3%) | |||||||||||
Oil, Gas & Consumable Fuels (4.3%) | |||||||||||
BP Capital Markets PLC, 0.843%, 03/11/14 (d) | 3,815,000 | 3,819,403 |
Principal | Value(a) | ||||||||||
Financial (8.4%) | |||||||||||
Auto Finance (2.5%) | |||||||||||
American Honda Finance Corp., 0.242%, 12/05/14 (d) | $ | 2,250,000 | $ | 2,250,000 | |||||||
Banks (2.3%) | |||||||||||
US Bank NA, 6.300%, 02/04/14 | 2,000,000 | 2,010,615 | |||||||||
Diversified Financial Services (3.6%) | |||||||||||
JPMorgan Chase & Co., 1.038%, 01/24/14 (d) | 3,250,000 | 3,251,552 | |||||||||
Industrials (4.2%) | |||||||||||
Machinery (4.2%) | |||||||||||
John Deere Capital Corp., 0.339%, 10/08/14 (d) | 3,793,000 | 3,796,257 | |||||||||
Information Technology (1.7%) | |||||||||||
Communications Equipment (1.7%) | |||||||||||
Cisco Systems, Inc., 1.625%, 03/14/14 | 1,500,000 | 1,504,208 | |||||||||
Utilities (1.5%) | |||||||||||
Electric Utilities (1.5%) | |||||||||||
Southern California Edison Co., 0.297%, 10/01/14 (d) | 1,335,000 | 1,335,000 | |||||||||
Total corporate bonds & notes (cost: $21,896,676) | 21,896,676 | ||||||||||
U.S. Government Obligations (37.7%) | |||||||||||
Discount Notes (20.4%) | |||||||||||
Federal Home Loan Bank | |||||||||||
0.041%, 01/22/14 (c) | 1,400,000 | 1,399,967 | |||||||||
0.045%, 01/03/14 (c) | 2,600,000 | 2,599,993 | |||||||||
0.051%, 01/29/14 (c) | 2,400,000 | 2,399,907 | |||||||||
0.066%, 02/28/14 (c) | 2,000,000 | 1,999,791 | |||||||||
0.071%, 02/07/14 (c) | 2,000,000 | 1,999,856 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) | |||||||||||
0.030%, 01/08/14 (c) | 2,000,000 | 1,999,988 | |||||||||
0.061%, 01/22/14 (c) | 2,000,000 | 1,999,930 | |||||||||
0.066%, 02/04/14 (c) | 1,000,000 | 999,939 | |||||||||
0.071%, 02/11/14 (c) | 2,800,000 | 2,799,777 | |||||||||
18,199,148 | |||||||||||
U.S. Treasury (17.3%) | |||||||||||
U.S. Treasury Bill | |||||||||||
0.011%, 01/16/14 (c) | 2,000,000 | 1,999,991 | |||||||||
0.012%, 01/02/14 (c) | 3,500,000 | 3,499,998 | |||||||||
0.015%, 01/09/14 (c) | 2,000,000 | 1,999,993 | |||||||||
0.019%, 02/06/14 (c) | 2,000,000 | 1,999,963 | |||||||||
0.020%, 02/20/14 (c) | 2,000,000 | 1,999,946 | |||||||||
0.024%, 01/23/14 (c) | 2,000,000 | 1,999,971 | |||||||||
0.030%, 02/27/14 (c) | 2,000,000 | 1,999,907 | |||||||||
15,499,769 | |||||||||||
Total U.S. government obligations (cost: $33,698,917) | 33,698,917 |
See accompanying notes to financial statements.
59
Advantus Money Market Fund
Investments in Securities – continued
Shares/ Principal | Value(a) | ||||||||||
Other Short-Term Investments (7.8%) | |||||||||||
Asset Backed Securities (7.8%) | |||||||||||
ARI Fleet Lease Trust, 0.260%, 04/15/14 (e) | $ | 146,343 | $ | 146,343 | |||||||
CCG Receivables Trust, 0.370%, 04/14/14 (e) | 104,076 | 104,076 | |||||||||
CNH Equipment Trust | |||||||||||
0.230%, 06/16/14 | 270,629 | 270,629 | |||||||||
0.250%, 09/15/14 | 637,074 | 637,074 | |||||||||
Direct Capital Funding LLC, 0.700%, 09/20/14 (e) | 537,623 | 537,623 | |||||||||
Fifth Third Auto Trust, 0.250%, 09/15/14 | 437,569 | 437,569 | |||||||||
GE Equipment Small Ticket LLC, 0.230%, 08/25/14 (e) | 94,068 | 94,068 | |||||||||
John Deere Owner Trust, 0.250%, 09/26/14 | 993,808 | 993,808 | |||||||||
M&T Bank Auto Receivables Trust, 0.250%, 09/15/14 (e) | 232,017 | 232,017 | |||||||||
Mercedes-Benz Auto Lease Trust, 0.260%, 12/15/14 | 785,584 | 785,584 | |||||||||
Nissan Auto Receivables Owner Trust | |||||||||||
0.210%, 08/15/14 | 94,879 | 94,879 | |||||||||
0.230%, 12/15/14 | 1,500,000 | 1,500,000 | |||||||||
Volkswagen Auto Lease Trust, 0.230%, 08/15/14 | 368,247 | 368,247 | |||||||||
Volvo Financial Equipment LLC, 0.260%, 04/15/14 (e) | 64,995 | 64,995 | |||||||||
Westlake Automobile Receivables Trust, 0.550%, 10/15/14 (e) | 736,090 | 736,090 | |||||||||
Total other short-term investments (cost: $7,003,002) | 7,003,002 | ||||||||||
Investment Companies (6.9%) | |||||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 4,402,180 | 4,402,180 | |||||||||
Wells Fargo Government Institutional Money Market Fund, current rate 0.010% | 1,764,877 | 1,764,877 | |||||||||
Total investment companies (cost: $6,167,057) | 6,167,057 | ||||||||||
Total investments in securities (cost: $89,765,302) (f) | 89,765,302 | ||||||||||
Liabilities in excess of cash and other assets (-0.4%) | (342,046 | ) | |||||||||
Total net assets (100.0%) | $ | 89,423,256 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors". This security has been determined to be liquid under guidelines established by the Board of Trustees. In the
| |
aggregate such securities represent 15.7% of the Fund's net assets as of December 31, 2013.
(c) Rate represents annualized yield at date of purchase.
(d) Variable rate security.
(e) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program.
(f) Also represents the cost of securities for federal income tax purposes at December 31, 2013.
See accompanying notes to financial statements.
60
Advantus Mortgage Securities Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (97.7%) | |||||||||||
Government Obligations (88.3%) | |||||||||||
Other Government Obligations (0.2%) | |||||||||||
Provincial or Local Government Obligation (0.2%) | |||||||||||
Utility Debt Securitization Authority, 3.435%, 12/15/25 | $ | 150,000 | $ | 147,813 | |||||||
U.S. Government Agencies and Obligations (88.1%) | |||||||||||
Export-Import Bank of the United States (0.9%) | |||||||||||
DY7 Leasing LLC, 2.578%, 12/10/25 | 250,000 | 247,021 | |||||||||
Helios Leasing I LLC | |||||||||||
1.825%, 05/16/25 | 144,393 | 136,648 | |||||||||
2.018%, 05/29/24 | 230,800 | 223,895 | |||||||||
Union 16 Leasing LLC, 1.863%, 01/22/25 | 235,863 | 225,167 | |||||||||
832,731 | |||||||||||
Federal Farm Credit Bank (0.5%) | |||||||||||
Federal Farm Credit Bank, 2.990%, 02/04/28 | 550,000 | 472,972 | |||||||||
Federal Home Loan Bank (0.4%) | |||||||||||
Federal Home Loan Bank, 2.500%, 08/14/24 | 500,000 | 434,718 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (20.4%) | |||||||||||
2.500%, 03/01/28 | 280,311 | 278,361 | |||||||||
2.500%, 04/01/28 | 465,794 | 462,269 | |||||||||
3.000%, 08/01/42 | 206,083 | 195,482 | |||||||||
3.000%, 12/01/42 | 392,975 | 372,760 | |||||||||
3.000%, 01/01/43 | 476,222 | 451,725 | |||||||||
3.000%, 02/01/43 | 1,144,547 | 1,085,950 | |||||||||
3.000%, 04/01/43 | 1,446,005 | 1,371,682 | |||||||||
3.500%, 10/01/25 | 281,411 | 294,476 | |||||||||
3.500%, 05/01/32 | 499,278 | 508,882 | |||||||||
3.500%, 01/01/42 | 430,626 | 428,603 | |||||||||
3.500%, 02/01/42 (b) | 276,355 | 274,516 | |||||||||
3.500%, 03/01/42 | 3,738,398 | 3,714,436 | |||||||||
3.500%, 08/01/42 | 459,468 | 456,659 | |||||||||
3.500%, 11/01/42 | 1,103,484 | 1,096,142 | |||||||||
3.500%, 12/01/42 | 921,380 | 915,250 | |||||||||
4.000%, 09/01/40 | 570,243 | 587,481 | |||||||||
4.000%, 03/01/41 | 705,481 | 728,371 | |||||||||
4.500%, 04/01/23 | 97,761 | 103,459 | |||||||||
4.500%, 07/15/33 | 6,494 | 6,515 | |||||||||
4.500%, 09/01/40 | 469,588 | 497,508 | |||||||||
4.500%, 01/01/41 | 736,760 | 782,277 | |||||||||
4.500%, 03/01/41 | 657,181 | 697,300 | |||||||||
5.000%, 03/01/23 | 109,447 | 118,004 | |||||||||
5.000%, 05/01/29 | 99,763 | 107,998 | |||||||||
5.000%, 08/01/35 | 135,392 | 146,284 | |||||||||
5.000%, 11/01/35 | 113,606 | 122,302 | |||||||||
5.000%, 11/01/39 | 1,019,226 | 1,117,964 | |||||||||
5.000%, 03/01/40 | 634,661 | 699,533 | |||||||||
5.500%, 06/01/20 | 136,823 | 144,171 |
Principal | Value(a) | ||||||||||
5.500%, 10/01/20 | $ | 259,433 | $ | 273,301 | |||||||
5.500%, 11/01/23 | 260,152 | 284,062 | |||||||||
5.500%, 05/01/34 | 350,054 | 391,778 | |||||||||
6.000%, 09/01/22 | 189,903 | 207,938 | |||||||||
6.000%, 11/01/33 | 388,520 | 434,301 | |||||||||
6.250%, 12/15/23 | 174,800 | 194,098 | |||||||||
6.500%, 11/01/32 | 91,168 | 101,344 | |||||||||
19,653,182 | |||||||||||
Federal National Mortgage Association (FNMA) (51.6%) | |||||||||||
2.500%, 03/01/27 | 832,346 | 826,636 | |||||||||
2.500%, 11/01/27 | 383,321 | 377,339 | |||||||||
2.500%, 03/01/28 | 828,577 | 820,987 | |||||||||
3.000%, 09/01/22 | 389,901 | 404,485 | |||||||||
3.000%, 11/21/25 | 350,000 | 316,833 | |||||||||
3.000%, 11/01/27 | 411,445 | 420,369 | |||||||||
3.000%, 06/01/28 | 477,657 | 488,313 | |||||||||
3.000%, 01/01/29 (b) | 700,000 | 714,355 | |||||||||
3.000%, 03/01/42 | 205,905 | 195,690 | |||||||||
3.000%, 09/01/42 | 278,711 | 264,896 | |||||||||
3.000%, 03/01/43 | 191,966 | 182,478 | |||||||||
3.000%, 08/01/43 | 1,561,117 | 1,467,516 | |||||||||
3.140%, 08/01/15 | 1,500,000 | 1,552,038 | |||||||||
3.500%, 11/01/25 | 143,685 | 150,483 | |||||||||
3.500%, 01/01/26 | 346,787 | 363,176 | |||||||||
3.500%, 01/01/29 (b) | 1,000,000 | 1,045,742 | |||||||||
3.500%, 12/01/32 | 451,084 | 459,366 | |||||||||
3.500%, 11/01/40 | 365,842 | 364,261 | |||||||||
3.500%, 01/01/41 | 688,686 | 685,131 | |||||||||
3.500%, 02/01/41 | 1,469,799 | 1,461,656 | |||||||||
3.500%, 11/01/41 | 636,877 | 633,921 | |||||||||
3.500%, 12/01/41 | 1,313,060 | 1,305,731 | |||||||||
3.500%, 05/01/42 | 853,102 | 848,751 | |||||||||
3.500%, 02/01/43 | 954,177 | 950,318 | |||||||||
3.500%, 03/01/43 | 465,157 | 463,138 | |||||||||
3.500%, 05/01/43 | 980,425 | 975,303 | |||||||||
3.500%, 07/01/43 | 517,795 | 510,112 | |||||||||
3.500%, 08/01/43 | 247,375 | 243,712 | |||||||||
3.500%, 01/01/44 (b) | 2,470,000 | 2,453,598 | |||||||||
4.000%, 06/25/23 | 363,938 | 387,514 | |||||||||
4.000%, 12/01/40 | 354,893 | 365,604 | |||||||||
4.000%, 04/01/41 | 220,507 | 227,556 | |||||||||
4.000%, 06/01/42 | 1,709,426 | 1,761,901 | |||||||||
4.000%, 09/01/43 | 1,164,104 | 1,199,275 | |||||||||
4.000%, 10/01/43 (b) | 1,984,603 | 2,052,447 | |||||||||
4.000%, 01/01/44 (b) | 2,130,000 | 2,192,569 | |||||||||
4.500%, 04/01/21 | 12,746 | 13,592 | |||||||||
4.500%, 11/01/23 | 96,977 | 102,743 | |||||||||
4.500%, 07/25/24 | 481,619 | 518,237 | |||||||||
4.500%, 04/01/25 | 238,860 | 254,219 | |||||||||
4.500%, 05/01/35 | 612,590 | 650,789 | |||||||||
4.500%, 07/01/35 | 468,354 | 498,221 | |||||||||
4.500%, 09/01/37 | 528,707 | 562,083 | |||||||||
5.000%, 05/01/18 | 207,632 | 221,206 | |||||||||
5.000%, 10/01/20 | 112,372 | 120,903 | |||||||||
5.000%, 06/25/23 | 398,863 | 438,216 | |||||||||
5.000%, 10/25/33 | 59,074 | 61,168 | |||||||||
5.000%, 11/01/33 | 517,611 | 563,787 | |||||||||
5.000%, 03/01/34 | 1,148,670 | 1,248,437 | |||||||||
5.000%, 05/01/34 | 121,512 | 132,167 | |||||||||
5.000%, 12/01/34 | 103,318 | 112,403 |
See accompanying notes to financial statements.
61
Advantus Mortgage Securities Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
5.000%, 04/01/35 | $ | 163,943 | $ | 178,027 | |||||||
5.000%, 07/01/35 | 1,022,745 | 1,111,338 | |||||||||
5.000%, 03/01/38 | 291,316 | 316,810 | |||||||||
5.000%, 06/01/39 | 417,234 | 458,652 | |||||||||
5.000%, 12/01/39 | 515,989 | 569,971 | |||||||||
5.000%, 06/01/40 | 208,861 | 228,431 | |||||||||
5.000%, 04/01/41 | 376,044 | 412,901 | |||||||||
5.500%, 02/01/18 | 123,297 | 132,662 | |||||||||
5.500%, 03/01/18 | 260,902 | 278,937 | |||||||||
5.500%, 08/01/23 | 165,003 | 181,288 | |||||||||
5.500%, 02/01/24 | 205,083 | 225,240 | |||||||||
5.500%, 04/01/33 | 568,774 | 633,692 | |||||||||
5.500%, 05/01/33 | 47,388 | 52,172 | |||||||||
5.500%, 01/01/34 | 117,605 | 129,614 | |||||||||
5.500%, 02/01/34 | 77,376 | 85,266 | |||||||||
5.500%, 04/01/34 | 224,244 | 246,626 | |||||||||
5.500%, 05/01/34 | 33,203 | 36,589 | |||||||||
5.500%, 09/01/34 | 370,274 | 407,525 | |||||||||
5.500%, 10/01/34 | 181,253 | 200,083 | |||||||||
5.500%, 01/01/35 | 286,822 | 319,456 | |||||||||
5.500%, 02/01/35 | 473,011 | 524,759 | |||||||||
5.500%, 06/01/35 | 28,688 | 31,557 | |||||||||
5.500%, 08/01/35 | 164,661 | 181,486 | |||||||||
5.500%, 10/01/35 | 98,319 | 110,029 | |||||||||
5.500%, 11/01/35 | 33,046 | 36,316 | |||||||||
5.500%, 09/01/36 | 425,667 | 468,128 | |||||||||
5.500%, 05/01/38 | 15,678 | 17,209 | |||||||||
6.000%, 09/01/32 | 39,103 | 44,033 | |||||||||
6.000%, 10/01/32 | 625,791 | 704,726 | |||||||||
6.000%, 11/01/32 | 518,981 | 584,599 | |||||||||
6.000%, 03/01/33 | 561,477 | 632,675 | |||||||||
6.000%, 04/01/33 | 131,378 | 145,523 | |||||||||
6.000%, 12/01/33 | 137,903 | 154,747 | |||||||||
6.000%, 08/01/34 | 169,576 | 190,280 | |||||||||
6.000%, 09/01/34 | 86,643 | 97,206 | |||||||||
6.000%, 11/01/34 | 40,187 | 45,111 | |||||||||
6.000%, 12/01/34 | 387,353 | 434,763 | |||||||||
6.000%, 11/01/36 | 66,439 | 73,847 | |||||||||
6.000%, 01/01/37 | 526,265 | 585,066 | |||||||||
6.000%, 08/01/37 | 150,723 | 166,736 | |||||||||
6.000%, 09/01/37 | 198,938 | 223,626 | |||||||||
6.000%, 12/01/37 | 122,653 | 135,971 | |||||||||
6.000%, 12/01/38 | 244,360 | 271,601 | |||||||||
6.500%, 11/01/23 | 112,114 | 124,788 | |||||||||
6.500%, 02/01/32 | 457,666 | 518,985 | |||||||||
6.500%, 04/01/32 | 152,111 | 172,586 | |||||||||
6.500%, 05/01/32 | 50,434 | 57,239 | |||||||||
6.500%, 07/01/32 | 564,981 | 639,503 | |||||||||
6.500%, 09/01/32 | 7,311 | 8,125 | |||||||||
6.500%, 09/01/34 | 25,018 | 27,820 | |||||||||
6.500%, 11/01/34 | 20,343 | 22,603 | |||||||||
6.500%, 03/01/35 | 239,505 | 269,397 | |||||||||
6.500%, 02/01/36 | 65,092 | 72,415 | |||||||||
6.500%, 09/01/37 | 329,053 | 366,799 | |||||||||
7.000%, 09/01/31 | 211,867 | 241,071 | |||||||||
7.000%, 11/01/31 | 38,158 | 44,350 | |||||||||
7.000%, 02/01/32 | 144,148 | 166,370 | |||||||||
7.000%, 07/01/32 | 27,952 | 31,654 | |||||||||
7.000%, 10/01/37 | 17,379 | 18,725 | |||||||||
7.500%, 07/25/22 | 258,795 | 297,336 | |||||||||
7.500%, 04/01/31 | 72,164 | 82,346 | |||||||||
49,858,757 |
Principal | Value(a) | ||||||||||
Government National Mortgage Association (GNMA) (14.0%) | |||||||||||
0.000%, 03/16/42 (c) (d) (e) | $ | 1,296,979 | $ | 13 | |||||||
0.253%, 03/16/34 (c) (d) | 1,696,493 | 4,440 | |||||||||
0.384%, 06/17/45 (c) (d) | 3,228,300 | 39,104 | |||||||||
0.643%, 07/16/40 (c) (d) | 1,346,165 | 28,968 | |||||||||
3.000%, 01/01/44 (b) | 1,500,000 | 1,448,555 | |||||||||
3.250%, 04/20/33 | 259,351 | 251,093 | |||||||||
3.500%, 11/15/40 | 181,974 | 183,721 | |||||||||
3.500%, 10/20/43 | 746,633 | 754,905 | |||||||||
3.500%, 01/01/44 (b) | 1,750,000 | 1,763,740 | |||||||||
4.000%, 07/20/31 | 679,099 | 706,883 | |||||||||
4.000%, 12/20/40 | 1,593,220 | 1,671,469 | |||||||||
4.000%, 01/15/41 | 143,284 | 149,379 | |||||||||
4.000%, 02/15/41 | 788,392 | 825,966 | |||||||||
4.000%, 10/15/41 | 770,488 | 805,031 | |||||||||
4.500%, 06/15/40 | 612,338 | 662,787 | |||||||||
4.920%, 05/16/34 | 41,051 | 41,268 | |||||||||
5.000%, 05/15/33 | 234,303 | 256,523 | |||||||||
5.000%, 12/15/39 | 149,406 | 165,938 | |||||||||
5.000%, 01/15/40 | 1,676,547 | 1,836,190 | |||||||||
5.000%, 07/15/40 | 1,175,589 | 1,279,236 | |||||||||
5.500%, 07/15/38 | 273,607 | 301,248 | |||||||||
5.500%, 10/15/38 | 304,473 | 345,683 | |||||||||
13,522,140 | |||||||||||
U.S. Treasury (0.2%) | |||||||||||
U.S. Treasury Notes | |||||||||||
0.875%, 09/15/16 (f) | 100,000 | 100,594 | |||||||||
2.750%, 11/15/23 | 90,000 | 88,045 | |||||||||
188,639 | |||||||||||
Vendee Mortgage Trust (0.1%) | |||||||||||
Vendee Mortgage Trust, 7.793%, 02/15/25 | 111,380 | 125,485 | |||||||||
Total government obligations (cost: $85,348,969) | 85,236,437 | ||||||||||
Asset-Backed Securities (4.5%) | |||||||||||
ABFS Mortgage Loan Trust, 7.490%, 12/25/31 (g) | 213,919 | 183,546 | |||||||||
Ally Auto Receivables Trust, 2.900%, 05/15/17 (h) | 140,000 | 142,266 | |||||||||
Appalachian Consumer Rate Relief Funding LLC, 3.772%, 08/01/31 | 120,000 | 116,950 | |||||||||
Cabela's Master Credit Card Trust, 2.710%, 02/17/26 (h) | 300,000 | 278,150 | |||||||||
Centerpoint Energy Transition Bond Co. III LLC, 5.234%, 02/01/23 | 210,000 | 239,569 | |||||||||
CenterPoint Energy Transition Bond Co. IV LLC, 3.028%, 10/15/25 | 600,000 | 577,070 | |||||||||
Chase Issuance Trust, 2.160%, 09/16/24 | 250,000 | 227,015 | |||||||||
Conseco Financial Corp., 8.300%, 11/15/19 | 4,531 | 4,531 | |||||||||
Countryplace Manufactured Housing Contract Trust, 4.800%, 12/15/35 (c) (e) (h) | 451,012 | 460,365 |
See accompanying notes to financial statements.
62
Advantus Mortgage Securities Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Credit-Based Asset Servicing and Securitization LLC, 5.970%, 10/25/36 (c) (h) | $ | 278,986 | $ | 280,503 | |||||||
FAN Engine Securitization, Ltd., 3.000%, 10/15/19 (e) (h) (i) | 223,611 | 223,471 | |||||||||
FirstEnergy Ohio PIRB Special Purpose Trust, 1.726%, 01/15/22 | 200,000 | 196,514 | |||||||||
Ford Credit Auto Owner Trust, 3.220%, 03/15/16 | 270,000 | 274,094 | |||||||||
Huntington Auto Trust, 1.370%, 05/15/18 | 165,000 | 164,075 | |||||||||
Origen Manufactured Housing | |||||||||||
5.460%, 11/15/35 (c) | 380,560 | 393,562 | |||||||||
5.910%, 01/15/37 | 550,000 | 574,518 | |||||||||
Vanderbilt Mortgage Finance, 6.210%, 05/07/26 | 51,565 | 52,965 | |||||||||
Total asset-backed securities (cost: $4,394,534) | 4,389,164 | ||||||||||
Other Mortgage-Backed Securities (4.3%) | |||||||||||
Collateralized Mortgage Obligations/ Mortgage Revenue Bonds (0.6%) | |||||||||||
Bear Stearns Mortgage Securities, Inc., 8.000%, 11/25/29 | 239,191 | 218,336 | |||||||||
BHN I Mortgage Fund | |||||||||||
1.000%, 03/25/14 (c) (e) (h) (i) (j) (k) | 10,000 | – | |||||||||
7.540%, 05/31/17 (e) (h) (i) (j) (k) | 425 | – | |||||||||
7.916%, 07/01/14 (e) (h) (i) (j) (k) | 50,980 | – | |||||||||
Connecticut Avenue Securities, 2.165%, 10/25/23 (c) | 243,793 | 244,906 | |||||||||
Prudential Home Mortgage Securities | |||||||||||
7.882%, 09/28/24 (c) (h) | 2,995 | 2,467 | |||||||||
7.900%, 04/28/22 (h) | 65,151 | 57,498 | |||||||||
Residential Accredit Loans, Inc., 6.250%, 03/25/14 (h) | 882 | 882 | |||||||||
Structured Adjustable Rate Mortgage Loan Trust, 5.130%, 11/25/35 (c) | 633,713 | 24,737 | |||||||||
Structured Asset Mortgage Investments, Inc., 2.524%, 05/02/30 (c) | 12,771 | 4,763 | |||||||||
553,589 | |||||||||||
Commercial Mortgage-Backed Securities (3.7%) | |||||||||||
7 WTC Depositor LLC Trust, 4.082%, 03/13/31 (h) | 405,854 | 421,943 | |||||||||
Citigroup Commercial Mortgage Trust, 3.008%, 01/12/30 (c) (h) | 130,000 | 127,277 | |||||||||
Extended Stay America Trust, 2.295%, 12/05/31 (h) (j) | 300,000 | 295,320 | |||||||||
Hometown Commercial Mortgage, 5.506%, 11/11/38 (e) (h) | 421,144 | 328,361 | |||||||||
Irvine Core Office Trust, 2.068%, 05/15/48 (h) | 475,012 | 459,234 |
Shares/ Principal | Value(a) | ||||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | |||||||||||
1.956%, 12/05/27 (c) (d) (e) (h) | $ | 3,597,684 | $ | 353,084 | |||||||
4.625%, 03/15/46 (c) | 22,076 | 22,079 | |||||||||
7.151%, 12/05/27 (h) | 125,000 | 146,851 | |||||||||
Morgan Stanley Capital I Trust, 3.451%, 08/05/34 (h) | 150,000 | 140,915 | |||||||||
Multi Security Asset Trust, 5.880%, 11/28/35 (c) (e) (h) (j) | 990,000 | 960,712 | |||||||||
Queens Center Mortgage Trust 2013-QC, 3.275%, 01/11/37 (h) | 387,391 | 353,439 | |||||||||
3,609,215 | |||||||||||
Total other mortgage-backed securities (cost: $4,991,988) | 4,162,804 | ||||||||||
Corporate Obligations (0.6%) | |||||||||||
Communications (0.2%) | |||||||||||
Telecommunication (0.2%) | |||||||||||
SBA Tower Trust, 2.240%, 04/15/43 (h) | 220,000 | 216,417 | |||||||||
Financial (0.4%) | |||||||||||
Real Estate Investment Trust — Health Care (0.3%) | |||||||||||
Health Care REIT, Inc., 4.500%, 01/15/24 | 250,000 | 246,837 | |||||||||
Real Estate Investment Trust — Shopping Centers (0.1%) | |||||||||||
Retail Opportunity Investments Partnership L.P., 5.000%, 12/15/23 | 125,000 | 124,454 | |||||||||
Total corporate obligations (cost: $590,365) | 587,708 | ||||||||||
Total long-term debt securities (cost: $95,325,856) | 94,376,113 | ||||||||||
Short-Term Securities (14.6%) | |||||||||||
Investment Companies (14.6%) | |||||||||||
Dreyfus Treasury Cash Management Fund, current rate 0.010% (l) | 4,273,334 | 4,273,334 | |||||||||
STIT-Government & Agency Portfolio, current rate 0.020% (l) | 9,800,000 | 9,800,000 | |||||||||
Total short-term securities (cost: $14,073,334) | 14,073,334 | ||||||||||
Total investments in securities (cost: $109,399,190) (m) | 108,449,447 | ||||||||||
Liabilities in excess of cash and other assets (-12.3%) | (11,894,092 | ) | |||||||||
Total net assets (100.0%) | $ | 96,555,355 |
See accompanying notes to financial statements.
63
Advantus Mortgage Securities Fund
Investments in Securities – continued
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Security is issued on a when-issued or forward commitment basis. As of December 31, 2013 the total cost of investments issued on a when-issued or forward commitment basis was $11,970,078.
(c) Variable rate security.
(d) Interest-only security that entitles holders to receive only interest on the underlying mortgages. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The yield to maturity of an interest-only security is sensitive to the rate of principal payments on the underlying mortgage assets. The rate disclosed represents the market yield based upon the current cost basis and estimated timing and amount of future cash flows.
(e) Illiquid security. (See Note 5.)
(f) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2013, securities with an aggregate market value of $100,594 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
10 Year U.S. Treasury Note | March 2014 | 27 | Long | $ | (60,804 | ) | |||||||||||||
27 | $ | (60,804 | ) |
(g) Step rate security.
(h) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program.
(i) Foreign security: The Fund held 0.2% of net assets in foreign securities at December 31, 2013.
(j) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(k) Security is in default with respect to interest payments. Income is not being accrued on this security and any payments received are treated as a reduction of principal.
(l) All or a portion of the security segregated to cover when-issued purchase commitments outstanding or extended settlement trades as of December 31, 2013.
(m) At December 31, 2013 the cost of securities for federal income tax purposes was $110,138,567. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 2,059,534 | |||||
Gross unrealized depreciation | (3,748,654 | ) | |||||
Net unrealized depreciation | $ | (1,689,120 | ) |
See accompanying notes to financial statements.
64
Advantus Real Estate Securities Fund
Investments in Securities
December 31, 2013
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (96.5%) | |||||||||||
Consumer Discretionary (2.2%) | |||||||||||
Hotels, Restaurants & Leisure (1.4%) | |||||||||||
Marriott International, Inc. — Class A | 13,500 | $ | 666,360 | ||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 11,700 | 929,565 | |||||||||
1,595,925 | |||||||||||
Household Durables (0.8%) | |||||||||||
Lennar Corp. — Class A (b) | 10,500 | 415,380 | |||||||||
Toll Brothers, Inc. (c) | 14,300 | 529,100 | |||||||||
944,480 | |||||||||||
Financial (92.2%) | |||||||||||
Capital Markets (0.0%) | |||||||||||
Marcus & Millichap, Inc. (c) | 1,955 | 29,130 | |||||||||
Diversified REIT's (2.1%) | |||||||||||
Spirit Realty Capital, Inc. | 67,324 | 661,795 | |||||||||
Vornado Realty Trust | 19,486 | 1,730,162 | |||||||||
2,391,957 | |||||||||||
Industrial REIT's (6.3%) | |||||||||||
EastGroup Properties, Inc. | 26,895 | 1,558,027 | |||||||||
ProLogis, Inc. | 147,681 | 5,456,813 | |||||||||
Pure Industrial Real Estate Trust (d) | 80,000 | 359,153 | |||||||||
7,373,993 | |||||||||||
Office REIT's (15.5%) | |||||||||||
BioMed Realty Trust, Inc. | 85,700 | 1,552,884 | |||||||||
Boston Properties, Inc. | 48,383 | 4,856,202 | |||||||||
Brandywine Realty Trust | 31,600 | 445,244 | |||||||||
CyrusOne, Inc. | 45,100 | 1,007,083 | |||||||||
Digital Realty Trust, Inc. | 29,658 | 1,456,801 | |||||||||
Duke Realty Corp. | 119,600 | 1,798,784 | |||||||||
Hudson Pacific Properties, Inc. | 66,200 | 1,447,794 | |||||||||
Kilroy Realty Corp. | 29,536 | 1,482,116 | |||||||||
Parkway Properties, Inc. | 85,526 | 1,649,797 | |||||||||
SL Green Realty Corp. | 25,771 | 2,380,725 | |||||||||
18,077,430 | |||||||||||
Real Estate Operating Company (1.0%) | |||||||||||
Forest City Enterprises, Inc. — Class A (c) | 59,200 | 1,130,720 | |||||||||
Residential REIT's (14.4%) | |||||||||||
Apartment Investment & Management Co. — Class A | 36,900 | 956,079 | |||||||||
AvalonBay Communities, Inc. | 31,126 | 3,680,027 | |||||||||
Boardwalk Real Estate Investment Trust (d) | 16,600 | 935,068 | |||||||||
Camden Property Trust | 41,800 | 2,377,584 | |||||||||
Campus Crest Communities, Inc. | 37,000 | 348,170 | |||||||||
Equity Lifestyle Properties, Inc. | 14,058 | 509,322 | |||||||||
Equity Residential | 73,900 | 3,833,193 | |||||||||
Essex Property Trust, Inc. | 14,416 | 2,068,840 | |||||||||
Mid-America Apartment Communities, Inc. | 33,904 | 2,059,329 | |||||||||
16,767,612 |
Shares | Value(a) | ||||||||||
Retail REIT's (26.3%) | |||||||||||
Acadia Realty Trust | 52,736 | $ | 1,309,435 | ||||||||
Agree Realty Corp. | 22,984 | 666,996 | |||||||||
Amreit, Inc. | 24,112 | 405,081 | |||||||||
Brixmor Property Group, Inc. (c) | 30,900 | 628,197 | |||||||||
CBL & Associates Properties, Inc. | 70,700 | 1,269,772 | |||||||||
DDR Corp. | 136,100 | 2,091,857 | |||||||||
Equity One, Inc. | 47,800 | 1,072,632 | |||||||||
Federal Realty Investment Trust | 12,500 | 1,267,625 | |||||||||
General Growth Properties, Inc. | 141,300 | 2,835,891 | |||||||||
Kimco Realty Corp. | 38,000 | 750,500 | |||||||||
Kite Realty Group Trust | 100,367 | 659,411 | |||||||||
Retail Opportunity Investments Corp. | 46,303 | 681,580 | |||||||||
RioCan Real Estate Investment Trust (d) | 53,300 | 1,242,580 | |||||||||
Simon Property Group, Inc. | 78,079 | 11,880,501 | |||||||||
Tanger Factory Outlet Centers | 29,500 | 944,590 | |||||||||
The Macerich Co. | 35,369 | 2,082,880 | |||||||||
Weingarten Realty Investors | 31,100 | 852,762 | |||||||||
30,642,290 | |||||||||||
Specialized REIT's (26.6%) | |||||||||||
American Tower Corp. | 18,832 | 1,503,170 | |||||||||
Chesapeake Lodging Trust | 42,100 | 1,064,709 | |||||||||
CubeSmart | 88,021 | 1,403,055 | |||||||||
Extra Space Storage, Inc. | 55,000 | 2,317,150 | |||||||||
HCP, Inc. | 95,300 | 3,461,296 | |||||||||
Health Care REIT, Inc. | 49,400 | 2,646,358 | |||||||||
Host Hotels & Resorts, Inc. | 216,346 | 4,205,766 | |||||||||
LaSalle Hotel Properties | 21,101 | 651,177 | |||||||||
Plum Creek Timber Co., Inc. | 10,700 | 497,657 | |||||||||
Public Storage | 32,200 | 4,846,744 | |||||||||
Sabra Health Care REIT, Inc. | 17,200 | 449,608 | |||||||||
Sovran Self Storage, Inc. | 12,260 | 798,984 | |||||||||
Summit Hotel Properties, Inc. | 130,600 | 1,175,400 | |||||||||
Sunstone Hotel Investors, Inc. | 152,300 | 2,040,820 | |||||||||
Ventas, Inc. | 68,396 | 3,917,723 | |||||||||
30,979,617 | |||||||||||
Health Care (1.0%) | |||||||||||
Health Care Providers & Services (1.0%) | |||||||||||
Brookdale Senior Living, Inc. (c) | 40,100 | 1,089,918 | |||||||||
Telecommunication Services (1.1%) | |||||||||||
Wireless Telecommunication Services (1.1%) | |||||||||||
Crown Castle International Corp. (c) | 7,500 | 550,725 | |||||||||
SBA Communications Corp. — Class A (c) | 8,100 | 727,704 | |||||||||
1,278,429 | |||||||||||
Total common stocks (cost: $91,005,060) | 112,301,501 |
See accompanying notes to financial statements.
65
Advantus Real Estate Securities Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Preferred Stocks (0.3%) | |||||||||||
Financial (0.3%) | |||||||||||
Specialized REIT's (0.3%) | |||||||||||
Pebblebrook Hotel Trust Series B | 13,042 | $ | 326,572 | ||||||||
Total preferred stocks (cost: $324,377) | 326,572 | ||||||||||
Short-Term Securities (4.0%) | |||||||||||
Investment Companies (4.0%) | |||||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 4,711,813 | 4,711,813 | |||||||||
Total short-term securities (cost: $4,711,813) | 4,711,813 | ||||||||||
Total investments in securities (cost: $96,041,250) (e) | 117,339,886 | ||||||||||
Liabilities in excess of cash and other assets (-0.8%) | (874,240 | ) | |||||||||
Total net assets (100.0%) | $ | 116,465,646 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Fully or partially pledged as collateral for the following call options written (See Notes 2 and 7).
Call Options Written | Contracts | Expiration Date | Exercise Price | Value(a) | |||||||||||||||
Lennar Corp. — Class A | 53 | January 2014 | 39.00 | $ | (6,625 | ) |
(c) Non-income producing security.
(d) Foreign security: The Fund held 2.2% of net assets in foreign securities at December 31, 2013.
(e) At December 31, 2013 the cost of securities for federal income tax purposes was $97,076,012. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 21,494,919 | |||||
Gross unrealized depreciation | (1,231,045 | ) | |||||
Net unrealized appreciation | $ | 20,263,874 |
See accompanying notes to financial statements.
66
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67
Securian Funds Trust
Statements of Assets and Liabilities
December 31, 2013
Advantus | Advantus | Advantus | Advantus | ||||||||||||||||
Assets | |||||||||||||||||||
Investments in securities, at market value – see accompanying | |||||||||||||||||||
Unaffiliated issuers | $ | 374,122,082 | $ | 228,825,148 | $ | 576,783,715 | $ | 126,058,128 | |||||||||||
Affiliated issuers (note 8) | – | – | – | – | |||||||||||||||
Cash in bank on demand deposit | 14,460 | 10,228 | 283,453 | – | |||||||||||||||
Foreign currency in bank on deposit (identified cost $2,059,599 for | – | – | – | 2,052,202 | |||||||||||||||
Receivable for Fund shares sold | 33,900 | 73,503 | 129,882 | 31,746 | |||||||||||||||
Receivable for investment securities sold (including paydowns) | – | 14,837 | 81,573 | – | |||||||||||||||
Receivable for investment securities sold on a forward – commitment | 797,933 | – | – | – | |||||||||||||||
Dividends and accrued interest receivable | 2,608,617 | 208,082 | 758,954 | 1,451,566 | |||||||||||||||
Receivable for refundable foreign income taxes withheld | – | – | – | 314,323 | |||||||||||||||
Receivable from Adviser (note 4) | – | – | – | – | |||||||||||||||
Unrealized appreciation on forward foreign currency contracts held, at value | – | – | – | 2,560,757 | |||||||||||||||
Variation margin receivable | 34,719 | 17,850 | 48,320 | – | |||||||||||||||
Prepaid expenses | 24,340 | 13,713 | 33,461 | 8,607 | |||||||||||||||
Total assets | 377,636,051 | 229,163,361 | 578,119,358 | 132,477,329 | |||||||||||||||
Liabilities | |||||||||||||||||||
Payable for Fund shares repurchased | 181,981 | 179,154 | 645,876 | – | |||||||||||||||
Payable for investment securities purchased | – | 136,084 | 325,339 | – | |||||||||||||||
Payable for investment securities purchased on a forward – commitment | 16,713,927 | – | – | – | |||||||||||||||
Payable to Adviser | 209,579 | 77,563 | 188,534 | 106,570 | |||||||||||||||
Accrued expenses | 82,777 | 84,511 | 133,873 | 68,139 | |||||||||||||||
Unrealized depreciation on forward foreign currency contracts held, at value | – | – | – | 2,661,478 | |||||||||||||||
Call options written at value (premiums of $3,681 for Advantus Real Estate | – | – | – | – | |||||||||||||||
Variation margin payable | – | – | – | – | |||||||||||||||
Total liabilities | 17,188,264 | 477,312 | 1,293,622 | 2,836,187 | |||||||||||||||
Net assets applicable to outstanding capital stock | $ | 360,447,787 | $ | 228,686,049 | $ | 576,825,736 | $ | 129,641,142 | |||||||||||
Represented by: | |||||||||||||||||||
Paid in capital** | $ | 361,048,633 | $ | 123,785,167 | $ | 168,456,162 | $ | 112,863,954 | |||||||||||
Retained earnings (deficit) | (600,846 | ) | 104,900,882 | 408,369,574 | 16,777,188 | ||||||||||||||
Total | $ | 360,447,787 | $ | 228,686,049 | $ | 576,825,736 | $ | 129,641,142 | |||||||||||
Net assets by class: | |||||||||||||||||||
Class 1 | $ | 4,414,144 | $ | 12,801,544 | $ | 36,386,868 | $ | 755,839 | |||||||||||
Class 2 | 356,033,643 | 215,884,505 | 540,438,868 | 128,885,303 | |||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||
Class 1 | 2.016 | 3.324 | 6.822 | 2.468 | |||||||||||||||
Class 2 | 1.991 | 3.283 | 6.737 | 2.438 | |||||||||||||||
* Identified cost | |||||||||||||||||||
Unaffiliated issuers | $ | 369,461,386 | $ | 145,982,178 | $ | 219,122,740 | $ | 121,066,288 | |||||||||||
Affiliated issuers | – | – | – | – | |||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||
Class 1 | 2,189,276 | 3,851,721 | 5,333,747 | 306,229 | |||||||||||||||
Class 2 | 178,791,950 | 65,767,789 | 80,213,881 | 52,874,906 |
See accompanying notes to financial statements.
68
Advantus | Advantus | Advantus | Advantus | ||||||||||||||||
Assets | |||||||||||||||||||
Investments in securities, at market value – see accompanying | |||||||||||||||||||
Unaffiliated issuers | $ | 37,880,564 | $ | 89,765,302 | $ | 108,449,447 | $ | 117,339,886 | |||||||||||
Affiliated issuers (note 8) | 14,199,025 | – | – | – | |||||||||||||||
Cash in bank on demand deposit | – | 35,933 | 7,364 | 11,488 | |||||||||||||||
Foreign currency in bank on deposit (identified cost $2,059,599 for | – | – | – | – | |||||||||||||||
Receivable for Fund shares sold | 618,470 | – | 5,687 | 132,169 | |||||||||||||||
Receivable for investment securities sold (including paydowns) | – | – | – | 637,312 | |||||||||||||||
Receivable for investment securities sold on a forward – commitment | – | – | 5,549,136 | – | |||||||||||||||
Dividends and accrued interest receivable | 150,490 | 79,362 | 322,854 | 521,135 | |||||||||||||||
Receivable for refundable foreign income taxes withheld | – | – | – | – | |||||||||||||||
Receivable from Adviser (note 4) | 27,396 | 56,146 | – | – | |||||||||||||||
Unrealized appreciation on forward foreign currency contracts held, at value | – | – | – | – | |||||||||||||||
Variation margin receivable | 99,935 | – | – | – | |||||||||||||||
Prepaid expenses | 1,009 | 6,280 | 6,592 | 7,758 | |||||||||||||||
Total assets | 52,976,889 | 89,943,023 | 114,341,080 | 118,649,748 | |||||||||||||||
Liabilities | |||||||||||||||||||
Payable for Fund shares repurchased | – | 398,104 | 112,895 | 23,068 | |||||||||||||||
Payable for investment securities purchased | – | – | – | 1,998,438 | |||||||||||||||
Payable for investment securities purchased on a forward – commitment | – | – | 17,539,387 | – | |||||||||||||||
Payable to Adviser | 41,396 | 55,523 | 66,006 | 94,929 | |||||||||||||||
Accrued expenses | 4,694 | 66,140 | 62,797 | 61,042 | |||||||||||||||
Unrealized depreciation on forward foreign currency contracts held, at value | – | – | – | – | |||||||||||||||
Call options written at value (premiums of $3,681 for Advantus Real Estate | – | – | – | 6,625 | |||||||||||||||
Variation margin payable | – | – | 4,640 | – | |||||||||||||||
Total liabilities | 46,090 | 519,767 | 17,785,725 | 2,184,102 | |||||||||||||||
Net assets applicable to outstanding capital stock | $ | 52,930,799 | $ | 89,423,256 | $ | 96,555,355 | $ | 116,465,646 | |||||||||||
Represented by: | |||||||||||||||||||
Paid in capital** | $ | 49,815,270 | $ | 89,463,720 | $ | 123,243,353 | $ | 79,502,031 | |||||||||||
Retained earnings (deficit) | 3,115,529 | (40,464 | ) | (26,687,998 | ) | 36,963,615 | |||||||||||||
Total | $ | 52,930,799 | $ | 89,423,256 | $ | 96,555,355 | $ | 116,465,646 | |||||||||||
Net assets by class: | |||||||||||||||||||
Class 1 | $ | N/A | $ | N/A | $ | 984,834 | $ | 3,713,009 | |||||||||||
Class 2 | 52,930,799 | 89,423,256 | 95,570,521 | 112,752,637 | |||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||
Class 1 | N/A | N/A | 1.731 | 3.143 | |||||||||||||||
Class 2 | 10.731 | 1.000 | 1.709 | 3.104 | |||||||||||||||
* Identified cost | |||||||||||||||||||
Unaffiliated issuers | $ | 38,582,858 | $ | 89,765,302 | $ | 109,399,190 | $ | 96,041,250 | |||||||||||
Affiliated issuers | 12,000,000 | – | – | – | |||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||
Class 1 | N/A | N/A | 569,011 | 1,181,277 | |||||||||||||||
Class 2 | 4,932,343 | 89,465,785 | 55,911,917 | 36,323,362 |
69
Securian Funds Trust
Statements of Operations
Year or period ended December 31, 2013
Advantus Bond Fund | Advantus Index 400 Mid-Cap Fund | Advantus Index 500 Fund | Advantus International Bond Fund | ||||||||||||||||
Investment Income | |||||||||||||||||||
Interest (net of foreign withholding taxes of $141,260 for Advantus International Bond Fund)2 | $ | 12,516,054 | $ | – | $ | – | $ | 5,284,784 | |||||||||||
Unaffiliated Dividends (net of foreign withholding taxes of $2,174 and $14,284 for Advantus Index 500 Fund and Advantus Real Estate Securities Fund) | 1,893 | 2,953,463 | 10,565,291 | 896 | |||||||||||||||
Affiliated Dividends | – | – | – | – | |||||||||||||||
Total investment income | 12,517,947 | 2,953,463 | 10,565,291 | 5,285,680 | |||||||||||||||
Expenses (note 4): | |||||||||||||||||||
Investment advisory fee | 1,444,786 | 315,768 | 766,245 | 784,635 | |||||||||||||||
Rule 12b-1 fees – class 2 | 892,844 | 500,201 | 1,212,185 | 325,216 | |||||||||||||||
Shareholder servicing fee | 168,531 | 70,762 | 125,164 | 84,835 | |||||||||||||||
Audit and accounting services | 46,047 | 51,820 | 49,464 | 49,547 | |||||||||||||||
Administrative services fee | 54,932 | 34,350 | 34,350 | 58,367 | |||||||||||||||
Legal fees | 39,222 | 36,599 | 45,730 | 37,092 | |||||||||||||||
Custodian fees | 10,799 | 7,650 | 18,772 | 86,865 | |||||||||||||||
Printing and shareholder reports | 16,011 | 16,011 | 16,011 | 16,011 | |||||||||||||||
Trustee's fees | 16,437 | 16,437 | 16,437 | 16,437 | |||||||||||||||
S&P Licensing fee | – | 18,427 | 40,000 | – | |||||||||||||||
Insurance | 12,745 | 6,458 | 16,180 | 4,330 | |||||||||||||||
Other | 18,278 | 9,519 | 21,239 | 7,095 | |||||||||||||||
Total expenses before waiver | 2,720,632 | 1,084,002 | 2,361,777 | 1,470,430 | |||||||||||||||
Less waiver (note 4) | – | – | – | – | |||||||||||||||
Total expenses net of waiver | 2,720,632 | 1,084,002 | 2,361,777 | 1,470,430 | |||||||||||||||
Investment income – net | 9,797,315 | 1,869,461 | 8,203,514 | 3,815,250 | |||||||||||||||
Realized and unrealized gains (losses) on investments and foreign currencies: | |||||||||||||||||||
Investments (note 3) | |||||||||||||||||||
Unaffiliated issuers | (1,272,812 | ) | 13,872,768 | 14,092,726 | (93,079 | ) | |||||||||||||
Affiliated issuers (note 8) | – | – | – | – | |||||||||||||||
Written options transactions | – | – | – | – | |||||||||||||||
Foreign currency transactions | – | – | – | 3,627,897 | |||||||||||||||
Net increase from litigation payments | 19,201 | 2,593 | 17,110 | (44,544 | ) | ||||||||||||||
Futures transactions | 574,611 | 1,183,147 | 2,910,587 | – | |||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||
Investments | |||||||||||||||||||
Unaffiliated issuers | (11,819,677 | ) | 41,968,228 | 113,857,440 | (4,860,132 | ) | |||||||||||||
Affiliated issuers (note 8) | – | – | – | – | |||||||||||||||
Options written | – | – | – | – | |||||||||||||||
Translation of assets and liabilities in foreign currency | – | – | – | (2,586,804 | ) | ||||||||||||||
Futures transactions | 389,046 | 85,797 | 495,909 | – | |||||||||||||||
Net gains (losses) on investments | (12,109,631 | ) | 57,112,533 | 131,373,772 | (3,956,662 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (2,312,316 | ) | $ | 58,981,994 | $ | 139,577,286 | $ | (141,412 | ) |
1 The Fund commenced operations on May 1, 2013.
2 All income is from unaffiliated issuers.
See accompanying notes to financial statements.
70
Advantus Managed Volatility Fund1 | Advantus Money Market Fund | Advantus Mortgage Securities Fund | Advantus Real Estate Securities Fund | ||||||||||||||||
Investment Income | |||||||||||||||||||
Interest (net of foreign withholding taxes of $141,260 for Advantus International Bond Fund)2 | $ | 210,935 | $ | 124,360 | $ | 2,270,158 | $ | – | |||||||||||
Unaffiliated Dividends (net of foreign withholding taxes of $2,174 and $14,284 for Advantus Index 500 Fund and Advantus Real Estate Securities Fund) | – | – | 2,329 | 2,748,524 | |||||||||||||||
Affiliated Dividends | 581 | – | – | – | |||||||||||||||
Total investment income | 211,516 | 124,360 | 2,272,487 | 2,748,524 | |||||||||||||||
Expenses (note 4): | |||||||||||||||||||
Investment advisory fee | 148,992 | 284,144 | 384,312 | 824,773 | |||||||||||||||
Rule 12b-1 fees – class 2 | 57,305 | 236,787 | 238,113 | 286,504 | |||||||||||||||
Shareholder servicing fee | 16,829 | 91,554 | 67,275 | 65,798 | |||||||||||||||
Audit and accounting services | 31,395 | 51,514 | 50,518 | 44,062 | |||||||||||||||
Administrative services fee | 17,319 | 56,663 | 58,338 | 29,183 | |||||||||||||||
Legal fees | 16,186 | 36,599 | 43,021 | 36,599 | |||||||||||||||
Custodian fees | 1,863 | 6,161 | 5,915 | 11,954 | |||||||||||||||
Printing and shareholder reports | 11,992 | 16,011 | 16,011 | 16,011 | |||||||||||||||
Trustee's fees | 8,441 | 16,437 | 16,437 | 16,437 | |||||||||||||||
S&P Licensing fee | 200 | – | – | – | |||||||||||||||
Insurance | 206 | 3,423 | 3,475 | 3,770 | |||||||||||||||
Other | 3,783 | 13,571 | 6,621 | 6,447 | |||||||||||||||
Total expenses before waiver | 314,511 | 812,864 | 890,036 | 1,341,538 | |||||||||||||||
Less waiver (note 4) | (130,867 | ) | (688,504 | ) | – | – | |||||||||||||
Total expenses net of waiver | 183,644 | 124,360 | 890,036 | 1,341,538 | |||||||||||||||
Investment income – net | 27,872 | – | 1,382,451 | 1,406,986 | |||||||||||||||
Realized and unrealized gains (losses) on investments and foreign currencies: | |||||||||||||||||||
Investments (note 3) | |||||||||||||||||||
Unaffiliated issuers | (22,811 | ) | (231 | ) | (541,426 | ) | 10,640,163 | ||||||||||||
Affiliated issuers (note 8) | – | – | – | – | |||||||||||||||
Written options transactions | – | – | – | 41,824 | |||||||||||||||
Foreign currency transactions | – | – | – | (86 | ) | ||||||||||||||
Net increase from litigation payments | – | – | 18,335 | 18,310 | |||||||||||||||
Futures transactions | 533,903 | – | 48,601 | – | |||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||
Investments | |||||||||||||||||||
Unaffiliated issuers | (702,294 | ) | – | (2,732,909 | ) | (10,883,507 | ) | ||||||||||||
Affiliated issuers (note 8) | 2,199,025 | – | – | – | |||||||||||||||
Options written | – | – | – | (21,626 | ) | ||||||||||||||
Translation of assets and liabilities in foreign currency | – | – | – | 57 | |||||||||||||||
Futures transactions | 1,079,834 | – | (68,496 | ) | – | ||||||||||||||
Net gains (losses) on investments | 3,087,657 | (231 | ) | (3,275,895 | ) | (204,865 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 3,115,529 | $ | (231 | ) | $ | (1,893,444 | ) | $ | 1,202,121 |
71
Securian Funds Trust
Statements of Changes in Net Assets
Year or period ended December 31, 2013 and year ended December 31, 2012
Advantus Bond Fund | Advantus Index 400 Mid-Cap Fund | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Operations: | |||||||||||||||||||
Investment income – net | $ | 9,797,315 | $ | 8,773,870 | $ | 1,869,461 | $ | 1,782,708 | |||||||||||
Net realized gains (losses) on investments | (679,000 | ) | 6,556,284 | 15,058,508 | 6,998,868 | ||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (11,430,631 | ) | 10,704,138 | 42,054,025 | 19,384,933 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | (2,312,316 | ) | 26,034,292 | 58,981,994 | 28,166,509 | ||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 1,885,184 | 2,739,203 | 4,001,073 | 6,256,048 | |||||||||||||||
Class 2 | 15,310,201 | 6,312,647 | 2,154,241 | 4,770,300 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (611,121 | ) | (63,922 | ) | (717,232 | ) | (46,636 | ) | |||||||||||
Class 2 | (17,095,471 | ) | (31,461,465 | ) | (22,978,039 | ) | (17,801,792 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | (511,207 | ) | (22,473,537 | ) | (17,539,957 | ) | (6,822,080 | ) | |||||||||||
Total increase (decrease) in net assets | (2,823,523 | ) | 3,560,755 | 41,442,037 | 21,344,429 | ||||||||||||||
Net assets at beginning of period | 363,271,310 | 359,710,555 | 187,244,012 | 165,899,583 | |||||||||||||||
Net assets at end of period | $ | 360,447,787 | $ | 363,271,310 | $ | 228,686,049 | $ | 187,244,012 | |||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 931,654 | 1,367,247 | 1,429,483 | 2,568,260 | |||||||||||||||
Class 2 | 7,682,112 | 3,272,796 | 732,484 | 2,021,510 | |||||||||||||||
Net change from capital share transactions | 8,613,766 | 4,640,043 | 2,161,967 | 4,589,770 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (301,333 | ) | (32,453 | ) | (243,347 | ) | (19,679 | ) | |||||||||||
Class 2 | (8,555,343 | ) | (16,154,230 | ) | (8,012,689 | ) | (7,532,723 | ) | |||||||||||
Net change from capital share transactions | (8,856,676 | ) | (16,186,683 | ) | (8,256,036 | ) | (7,552,402 | ) |
1 The Fund commenced operations on May 1, 2013.
See accompanying notes to financial statements.
72
Advantus Index 500 Fund | Advantus International Bond Fund | Advantus Managed Volatility Fund1 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | |||||||||||||||||||
Operations: | |||||||||||||||||||||||
Investment income – net | $ | 8,203,514 | $ | 8,060,021 | $ | 3,815,250 | $ | 4,205,351 | $ | 27,872 | |||||||||||||
Net realized gains (losses) on investments | 17,020,423 | 28,540,636 | 3,490,274 | 3,105,183 | 511,092 | ||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 114,353,349 | 27,005,840 | (7,446,936 | ) | 10,565,721 | 2,576,565 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 139,577,286 | 63,606,497 | (141,412 | ) | 17,876,255 | 3,115,529 | |||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||
Class 1 | 20,081,318 | 11,287,870 | 243,440 | 158,992 | – | ||||||||||||||||||
Class 2 | 16,185,563 | 5,984,884 | 11,957,327 | 6,583,243 | 50,321,152 | ||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||
Class 1 | (2,129,564 | ) | (365,932 | ) | (96,765 | ) | (23,915 | ) | – | ||||||||||||||
Class 2 | (41,106,945 | ) | (55,696,365 | ) | (10,517,854 | ) | (7,779,543 | ) | (505,882 | ) | |||||||||||||
Increase (decrease) in net assets from capital stock transactions | (6,969,628 | ) | (38,789,543 | ) | 1,586,148 | (1,061,223 | ) | 49,815,270 | |||||||||||||||
Total increase (decrease) in net assets | 132,607,658 | 24,816,954 | 1,444,736 | 16,815,032 | 52,930,799 | ||||||||||||||||||
Net assets at beginning of period | 444,218,078 | 419,401,124 | 128,196,406 | 111,381,374 | – | ||||||||||||||||||
Net assets at end of period | $ | 576,825,736 | $ | 444,218,078 | $ | 129,641,142 | $ | 128,196,406 | $ | 52,930,799 | |||||||||||||
Capital share transactions: | |||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||
Class 1 | 3,468,128 | 2,210,966 | 99,286 | 69,713 | – | ||||||||||||||||||
Class 2 | 2,797,924 | 1,220,535 | 4,904,484 | 2,866,307 | 4,980,695 | ||||||||||||||||||
Net change from capital share transactions | 6,266,052 | 3,431,501 | 5,003,770 | 2,936,020 | 4,980,695 | ||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||
Class 1 | (364,822 | ) | (74,748 | ) | (39,037 | ) | (10,347 | ) | – | ||||||||||||||
Class 2 | (7,170,399 | ) | (11,171,480 | ) | (4,329,122 | ) | (3,428,373 | ) | (48,352 | ) | |||||||||||||
Net change from capital share transactions | (7,535,221 | ) | (11,246,228 | ) | (4,368,159 | ) | (3,438,720 | ) | (48,352 | ) |
73
Securian Funds Trust
Statements of Changes in Net Assets – continued
Year or period ended December 31, 2013 and year ended December 31, 2012
Advantus Money Market Fund | Advantus Mortgage Securities Fund | Advantus Real Estate Securities Fund | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Investment income – net | $ | – | $ | – | $ | 1,382,451 | $ | 2,004,008 | $ | 1,406,986 | $ | 1,240,900 | |||||||||||||||
Net realized gains (losses) on investments | (231 | ) | 1,056 | (474,490 | ) | (297,495 | ) | 10,700,211 | 10,823,963 | ||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | – | – | (2,801,405 | ) | 1,788,449 | (10,905,076 | ) | 5,160,286 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (231 | ) | 1,056 | (1,893,444 | ) | 3,494,962 | 1,202,121 | 17,225,149 | |||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 591,434 | 376,661 | 1,577,546 | 2,099,330 | |||||||||||||||||||||
Class 2 | 45,437,939 | 19,115,133 | 6,779,404 | 2,126,896 | 10,206,849 | 3,544,726 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (113,915 | ) | (61,398 | ) | (397,844 | ) | (156,516 | ) | |||||||||||||||||
Class 2 | (51,872,244 | ) | (31,373,396 | ) | (6,231,374 | ) | (13,762,967 | ) | (6,971,852 | ) | (10,765,593 | ) | |||||||||||||||
Increase (decrease) in net assets from capital stock transactions | (6,434,305 | ) | (12,258,263 | ) | 1,025,549 | (11,320,808 | ) | 4,414,699 | (5,278,053 | ) | |||||||||||||||||
Total increase (decrease) in net assets | (6,434,536 | ) | (12,257,207 | ) | (867,895 | ) | (7,825,846 | ) | 5,616,820 | 11,947,096 | |||||||||||||||||
Net assets at beginning of year | 95,857,792 | 108,114,999 | 97,423,250 | 105,249,096 | 110,848,826 | 98,901,730 | |||||||||||||||||||||
Net assets at end of year | $ | 89,423,256 | $ | 95,857,792 | $ | 96,555,355 | $ | 97,423,250 | $ | 116,465,646 | $ | 110,848,826 | |||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 338,048 | 215,890 | 491,251 | 691,715 | |||||||||||||||||||||
Class 2 | 45,437,939 | 19,115,133 | 3,942,956 | 1,235,697 | 3,189,672 | 1,199,384 | |||||||||||||||||||||
Net change from capital share transactions | 45,437,939 | 19,115,133 | 4,281,004 | 1,451,587 | 3,680,923 | 1,891,099 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (65,058 | ) | (35,515 | ) | (123,450 | ) | (52,818 | ) | |||||||||||||||||
Class 2 | (51,872,244 | ) | (31,373,396 | ) | (3,604,243 | ) | (8,012,264 | ) | (2,164,506 | ) | (3,721,130 | ) | |||||||||||||||
Net change from capital share transactions | (51,872,244 | ) | (31,373,396 | ) | (3,669,301 | ) | (8,047,779 | ) | (2,287,956 | ) | (3,773,948 | ) |
See accompanying notes to financial statements.
74
75
Securian Funds Trust
Financial Highlights
Advantus Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.024 | $ | 1.880 | $ | 1.736 | $ | 1.583 | $ | 1.370 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .060 | .055 | .045 | .067 | .077 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.068 | ) | .089 | .099 | .086 | .136 | |||||||||||||||||
Total from investment operations | (.008 | ) | .144 | .144 | .153 | .213 | |||||||||||||||||
Net asset value, end of period | $ | 2.016 | $ | 2.024 | $ | 1.880 | $ | 1.736 | $ | 1.583 | |||||||||||||
Total return (b) | (0.40 | )% | 7.69 | % | 8.30 | % | 9.69 | % | 15.85 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 4,414 | $ | 3,156 | $ | 421 | $ | 331 | $ | 194 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .51 | % | .51 | % | .50 | % | .50 | % | .51 | % | |||||||||||||
Net investment income | 2.96 | % | 2.77 | % | 2.48 | % | 3.94 | % | 5.27 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 235.8 | % | 205.5 | % | 270.5 | % | 247.1 | % | 266.4 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.004 | $ | 1.866 | $ | 1.727 | $ | 1.579 | $ | 1.370 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .054 | .047 | .041 | .064 | .073 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.067 | ) | .091 | .098 | .084 | .136 | |||||||||||||||||
Total from investment operations | (.013 | ) | .138 | .139 | .148 | .209 | |||||||||||||||||
Net asset value, end of period | $ | 1.991 | $ | 2.004 | $ | 1.866 | $ | 1.727 | $ | 1.579 | |||||||||||||
Total return (b) | (0.65 | )% | 7.42 | % | 8.03 | % | 9.41 | % | 15.57 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 356,034 | $ | 360,115 | $ | 359,289 | $ | 365,923 | $ | 346,750 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .76 | % | .76 | % | .75 | % | .75 | % | .76 | % | |||||||||||||
Net investment income | 2.71 | % | 2.41 | % | 2.26 | % | 3.79 | % | 5.04 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 235.8 | % | 205.5 | % | 270.5 | % | 247.1 | % | 266.4 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
76
Securian Funds Trust
Financial Highlights – continued
Advantus Index 400 Mid-Cap Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.497 | $ | 2.124 | $ | 2.168 | $ | 1.717 | $ | 1.260 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .034 | .040 | .021 | .019 | .018 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | .793 | .333 | (.065 | ) | .432 | .439 | |||||||||||||||||
Total from investment operations | .827 | .373 | (.044 | ) | .451 | .457 | |||||||||||||||||
Net asset value, end of period | $ | 3.324 | $ | 2.497 | $ | 2.124 | $ | 2.168 | $ | 1.717 | |||||||||||||
Total return (b) | 33.11 | % | 17.54 | % | (2.02 | )% | 26.24 | % | 36.77 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 12,802 | $ | 6,656 | $ | 249 | $ | 179 | $ | 88 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .28 | % | .31 | % | .29 | % | .31 | % | .34 | % | |||||||||||||
Net investment income | 1.15 | % | 1.65 | % | 1.09 | % | 1.02 | % | 1.22 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 9.3 | % | 8.0 | % | 16.3 | % | 13.2 | % | 20.2 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.472 | $ | 2.109 | $ | 2.157 | $ | 1.713 | $ | 1.260 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .025 | .023 | .015 | .014 | .014 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | .786 | .340 | (.063 | ) | .430 | .439 | |||||||||||||||||
Total from investment operations | .811 | .363 | (.048 | ) | .444 | .453 | |||||||||||||||||
Net asset value, end of period | $ | 3.283 | $ | 2.472 | $ | 2.109 | $ | 2.157 | $ | 1.713 | |||||||||||||
Total return (b) | 32.78 | % | 17.24 | % | (2.26 | )% | 25.93 | % | 36.43 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 215,884 | $ | 180,588 | $ | 165,651 | $ | 182,525 | $ | 146,307 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .53 | % | .56 | % | .54 | % | .56 | % | .60 | % | |||||||||||||
Net investment income | .87 | % | .99 | % | .82 | % | .74 | % | 1.01 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 9.3 | % | 8.0 | % | 16.3 | % | 13.2 | % | 20.2 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
77
Securian Funds Trust
Financial Highlights – continued
Advantus Index 500 Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 5.167 | $ | 4.465 | $ | 4.384 | $ | 3.818 | $ | 3.030 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .115 | .111 | .083 | .072 | .065 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 1.540 | .591 | (.002 | ) | .494 | .723 | |||||||||||||||||
Total from investment operations | 1.655 | .702 | .081 | .566 | .788 | ||||||||||||||||||
Net asset value, end of period | $ | 6.822 | $ | 5.167 | $ | 4.465 | $ | 4.384 | $ | 3.818 | |||||||||||||
Total return (b) | 32.04 | % | 15.71 | % | 1.85 | % | 14.82 | % | 26.18 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 36,387 | $ | 11,524 | $ | 421 | $ | 252 | $ | 130 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .22 | % | .24 | % | .23 | % | .22 | % | .23 | % | |||||||||||||
Net investment income | 1.88 | % | 2.19 | % | 1.88 | % | 1.82 | % | 1.93 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 4.5 | % | 2.6 | % | 4.6 | % | 4.1 | % | 6.7 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 5.115 | $ | 4.432 | $ | 4.362 | $ | 3.809 | $ | 3.030 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .095 | .088 | .070 | .061 | .058 | ||||||||||||||||||
Net gains on securities (both realized and unrealized) | 1.527 | .595 | – | .492 | .721 | ||||||||||||||||||
Total from investment operations | 1.622 | .683 | .070 | .553 | .779 | ||||||||||||||||||
Net asset value, end of period | $ | 6.737 | $ | 5.115 | $ | 4.432 | $ | 4.362 | $ | 3.809 | |||||||||||||
Total return (b) | 31.71 | % | 15.42 | % | 1.59 | % | 14.54 | % | 25.87 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 540,439 | $ | 432,694 | $ | 418,980 | $ | 452,113 | $ | 449,613 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .47 | % | .49 | % | .48 | % | .47 | % | .48 | % | |||||||||||||
Net investment income | 1.59 | % | 1.80 | % | 1.60 | % | 1.55 | % | 1.81 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 4.5 | % | 2.6 | % | 4.6 | % | 4.1 | % | 6.7 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
78
Securian Funds Trust
Financial Highlights – continued
Advantus International Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.464 | $ | 2.115 | $ | 2.116 | $ | 1.853 | $ | 1.570 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .078 | .086 | .089 | .094 | .070 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.074 | ) | .263 | (.090 | ) | .169 | .213 | ||||||||||||||||
Total from investment operations | .004 | .349 | (.001 | ) | .263 | .283 | |||||||||||||||||
Net asset value, end of period | $ | 2.468 | $ | 2.464 | $ | 2.115 | $ | 2.116 | $ | 1.853 | |||||||||||||
Total return (b) | 0.17 | % | 16.49 | % | (0.01 | )% | 14.19 | % | 17.85 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 756 | $ | 606 | $ | 395 | $ | 293 | $ | 138 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .87 | % | .94 | % | .95 | % | .95 | % | .99 | % | |||||||||||||
Net investment income | 3.18 | % | 3.76 | % | 4.07 | % | 4.65 | % | 4.08 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 17.7 | % | 38.8 | % | 18.8 | % | 11.0 | % | 56.5 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.440 | $ | 2.100 | $ | 2.105 | $ | 1.848 | $ | 1.570 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .071 | .079 | .083 | .086 | .065 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.073 | ) | .261 | (.088 | ) | .171 | .213 | ||||||||||||||||
Total from investment operations | (.002 | ) | .340 | (.005 | ) | .257 | .278 | ||||||||||||||||
Net asset value, end of period | $ | 2.438 | $ | 2.440 | $ | 2.100 | $ | 2.105 | $ | 1.848 | |||||||||||||
Total return (b) | (0.08 | )% | 16.20 | % | (0.26 | )% | 13.90 | % | 17.56 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 128,885 | $ | 127,590 | $ | 110,987 | $ | 111,685 | $ | 96,098 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.12 | % | 1.19 | % | 1.20 | % | 1.19 | % | 1.23 | % | |||||||||||||
Net investment income | 2.92 | % | 3.51 | % | 3.85 | % | 4.28 | % | 3.82 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 17.7 | % | 38.8 | % | 18.8 | % | 11.0 | % | 56.5 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
79
Securian Funds Trust
Financial Highlights – continued
Advantus Managed Volatility Fund
Period ended December 31, 2013 (a) | |||||||
Net asset value, beginning of period | $ | 10.000 | |||||
Income from investment operations: | |||||||
Net investment income (b) | .008 | ||||||
Net gains on securities (both realized and unrealized) | .723 | ||||||
Total from investment operations | .731 | ||||||
Net asset value, end of period | $ | 10.731 | |||||
Total return (c) | 7.31 | % | |||||
Net assets, end of period (in thousands) | $ | 52,931 | |||||
Ratios to average net assets: | |||||||
Expenses before waiver (d) | 1.37 | %(e) | |||||
Expenses net of waiver (d) | .80 | %(e)(f) | |||||
Net investment income | .12 | %(e) | |||||
Portfolio turnover rate (excluding short-term securities) | 32.1 | % |
(a) The Fund commenced operations on May 1, 2013.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Ratio is net of fees waived by the advisor (see note 4).
80
Securian Funds Trust
Financial Highlights – continued
Advantus Money Market Fund
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | – | – | – | – | .003 | ||||||||||||||||||
Total from investment operations | – | – | – | – | .003 | ||||||||||||||||||
Dividends from net investment income | – | – | – | – | (b) | (.003 | ) | ||||||||||||||||
Net asset value, end of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Total return (c) | – | % | – | % | – | % | 0.03 | % | 0.27 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 89,423 | $ | 95,858 | $ | 108,115 | $ | 106,901 | $ | 114,369 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses before waiver (d) | .86 | % | .83 | % | .69 | % | .78 | % | .77 | % | |||||||||||||
Expenses net of waiver (d) | .13 | %(e) | .17 | %(e) | .14 | %(e) | .23 | %(e) | .65 | %(e) | |||||||||||||
Net investment income | – | % | – | % | – | % | – | % | .32 | % |
(a) Based on average shares outstanding during the year.
(b) Amount represents less than $0.0005 per share.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Ratio is net of fees waived by the advisor and distributor (see note 4).
81
Securian Funds Trust
Financial Highlights – continued
Advantus Mortgage Securities Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.761 | $ | 1.698 | $ | 1.587 | $ | 1.482 | $ | 1.370 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .029 | .038 | .025 | .048 | .068 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.059 | ) | .025 | .086 | .057 | .044 | |||||||||||||||||
Total from investment operations | (.030 | ) | .063 | .111 | .105 | .112 | |||||||||||||||||
Net asset value, end of period | $ | 1.731 | $ | 1.761 | $ | 1.698 | $ | 1.587 | $ | 1.482 | |||||||||||||
Total return (b) | (1.73 | )% | 3.75 | % | 7.00 | % | 7.02 | % | 8.32 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 985 | $ | 521 | $ | 196 | $ | 157 | $ | 78 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .68 | % | .68 | % | .63 | % | .62 | % | .66 | % | |||||||||||||
Net investment income | 1.67 | % | 2.18 | % | 1.54 | % | 3.08 | % | 4.78 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 370.7 | % | 231.3 | % | 241.8 | % | 252.0 | % | 209.6 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.744 | $ | 1.685 | $ | 1.579 | $ | 1.479 | $ | 1.370 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .025 | .034 | .022 | .046 | .066 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.060 | ) | .025 | .084 | .054 | .043 | |||||||||||||||||
Total from investment operations | (.035 | ) | .059 | .106 | .100 | .109 | |||||||||||||||||
Net asset value, end of period | $ | 1.709 | $ | 1.744 | $ | 1.685 | $ | 1.579 | $ | 1.479 | |||||||||||||
Total return (b) | (1.98 | )% | 3.49 | % | 6.73 | % | 6.76 | % | 8.05 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 95,570 | $ | 96,902 | $ | 105,053 | $ | 112,343 | $ | 117,316 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .93 | % | .93 | % | .87 | % | .87 | % | .91 | % | |||||||||||||
Net investment income | 1.44 | % | 1.98 | % | 1.34 | % | 3.00 | % | 4.65 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 370.7 | % | 231.3 | % | 241.8 | % | 252.0 | % | 209.6 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
82
Securian Funds Trust
Financial Highlights – continued
Advantus Real Estate Securities Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.100 | $ | 2.623 | $ | 2.482 | $ | 1.920 | $ | 1.540 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .050 | .052 | .031 | .030 | .044 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.007 | ) | .425 | .110 | .532 | .336 | |||||||||||||||||
Total from investment operations | .043 | .477 | .141 | .562 | .380 | ||||||||||||||||||
Net asset value, end of period | $ | 3.143 | $ | 3.100 | $ | 2.623 | $ | 2.482 | $ | 1.920 | |||||||||||||
Total return (b) | 1.40 | % | 18.20 | % | 5.68 | % | 29.23 | % | 24.90 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 3,713 | $ | 2,522 | $ | 458 | $ | 308 | $ | 133 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .90 | % | .93 | % | .92 | % | .94 | % | .99 | % | |||||||||||||
Net investment income | 1.55 | % | 1.75 | % | 2.44 | % | 1.38 | % | 2.85 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 39.8 | % | 47.6 | % | 57.7 | % | 66.9 | % | 67.1 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.069 | $ | 2.603 | $ | 2.469 | $ | 1.915 | $ | 1.540 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .038 | .034 | .023 | .020 | .039 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | (.003 | ) | .432 | .111 | .534 | .336 | |||||||||||||||||
Total from investment operations | .035 | .466 | .134 | .554 | .375 | ||||||||||||||||||
Net asset value, end of period | $ | 3.104 | $ | 3.069 | $ | 2.603 | $ | 2.469 | $ | 1.915 | |||||||||||||
Total return (b) | 1.15 | % | 17.90 | % | 5.42 | % | 28.91 | % | 24.59 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 112,753 | $ | 108,327 | $ | 98,444 | $ | 101,801 | $ | 88,020 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.15 | % | 1.18 | % | 1.16 | % | 1.19 | % | 1.25 | % | |||||||||||||
Net investment income | 1.18 | % | 1.16 | % | 2.12 | % | .90 | % | 2.67 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 39.8 | % | 47.6 | % | 57.7 | % | 66.9 | % | 67.1 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
83
Securian Funds Trust
Notes to Financial Statements
December 31, 2013
(1) Organization
Securian Funds Trust (the "Trust") is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act") as a no-load, diversified open-end management investment company, except that Advantus International Bond Fund operates as a non-diversified, open-end management investment company. The Trust was organized on July 8, 2011. On May 1, 2012, the Trust adopted and amended the registration statement of Advantus Series Fund, Inc. (the "Series Fund") as filed with the Securities and Exchange Commission, pursuant to an Agreement and Plan of Reorganization approved by both the Board of Directors of the Series Fund and the Board of Trustees of the Trust on July 28, 2011, and approved by a majority of the shareholders of each Portfolio of the Series Fund on October 21, 2011 (the "Reorganization"). Pursuant to the Agreement and Plan of Reorganization, each then existing Portfolio of the Series Fund was reorganized into a separate Fund of the Trust effective May 1, 2012. The successor Funds of the Trust have the same investment adviser, investment objectives, principal investment strategies and risks as the corresponding predecessor Portfolios of the Series Fund. Expenses of each Fund did not increase as a result of the Reorganization. The Trust is a series trust that includes several different Funds. The Funds in the Trust are as follows: Advantus Bond, Advantus Index 400 Mid-Cap, Advantus Index 500, Advantus International Bond, Advantus Managed Volatility, Advantus Money Market, Advantus Mortgage Securities and Advantus Real Estate Securities. The Trust's prospectus provides a detailed description of each Fund's investment objective, policies and strategies. The Funds issue two classes of shares: Class 1 and Class 2, except for the Advantus Money Market Fund and the Advantus Managed Volatility Fund which offer shares in only one class. Class 2 shares of the Money Market Fund and the Managed Volatility Fund are subject to a 12b-1 distribution fee. Both classes of shares have identical voting, dividend, liquidation and other rights, and the same terms and conditions, except that Class 1 shares are not subject to a 12b-1 distribution fee. Income, expenses (other than Rule 12b-1 fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.
The Trust intends that each Fund, other than Advantus Managed Volatility Fund, will qualify for federal income tax purposes as a partnership under the Internal Revenue Code of 1986, as amended (the "Code"). It is expected that Advantus Managed Volatility Fund will be treated as a disregarded entity for federal income tax purposes. A Fund will be treated, for federal income tax purposes, as a partnership if it has more than one shareholder. If a Fund at any time has just one shareholder, as is the case for Advantus Managed Volatility Fund, it will be treated as a disregarded entity for federal income tax purposes. While the Trust anticipates that each Fund, other than Advantus Managed Volatility Fund, will always have two shareholders, Minnesota Life Insurance Company ("Minnesota Life") and Securian Life Insurance Company ("Securian Life"), a wholly owned subsidiary of Minnesota Life, such ownership could change and accordingly a Fund may at some time have only one shareholder and accordingly would be treated as a disregarded entity for federal income tax purposes.
The Trust expects that the federal income tax treatment of each Fund as a partnership or disregarded entity will not result in any material adverse federal income tax consequences to the Funds for tax periods after the consummation of the Reorganization, as compared to the federal income tax treatment of the portfolios as regulated investment companies under the Code prior to the Reorganization. In addition, a Fund's election to be treated as a partnership is not expected to result in any material adverse federal income tax consequences to any owner of a variable annuity contract or variable life insurance policy, or in the tax treatment of any such contract or policy.
The Trust accounts for the assets, liabilities and operations of each Fund separately. Shares of the Trust will not be offered directly to the public, but sold only to Minnesota Life and Securian Life in connection with Minnesota Life and Securian Life variable contracts and policies, and to certain other separate accounts of life insurance affiliates of Minnesota Life and Securian Life, and may also be offered to certain qualified plans.
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Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, "Financial Services – Investment Companies." The significant accounting policies followed consistently by the Trust are as follows:
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities, as of the balance sheet date and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Investments in Securities
Each Fund's net asset value is generally calculated as of the close of normal trading on the New York Stock Exchange (typically 3:00 p.m. Central Time). Investments in securities traded on a U.S. or foreign securities exchange are valued at the last sale price on that exchange prior to the time when assets are valued; securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued on the basis of the last current bid price, by an independent pricing service or at a price deemed best to reflect fair value quoted by dealers who make markets in these securities. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality and prepayment speeds, as applicable. When market quotations are not readily available, securities are valued at fair value as determined in good faith by the Advantus Capital Management, Inc. ("Advantus Capital") Valuation Committee under the supervision of the Trust's Board of Directors and in accordance with Board-approved valuation policies and procedures.
A Fund's investments will also be valued at fair value by the Valuation Committee if Advantus Capital determines that an event impacting the value of an investment occurred after the close of the security's primary exchange or market (for example, a foreign exchange or market) and before the time the Fund's share is calculated. If a significant event impacting the value of a security or group of securities occurs, the Valuation Committee is immediately notified and the members meet promptly to determine whether fair value pricing is needed in accordance with the Fund's valuation procedures and, if so, to approve the pricing methodology to be used.
Short-term securities, with the exception of those held in the Advantus Money Market Fund, are valued at market. Pursuant to Rule 2a-7 of the 1940 Act, all securities in the Advantus Money Market Fund are valued at amortized cost, which approximates market value, in order to maintain a constant net asset value of $1.00 per share. However, there is no assurance the Advantus Money Market Fund will maintain the $1.00 net asset value.
Security transactions are accounted for on the date the securities are purchased or sold. Realized gains and losses are calculated using the first in, first out basis. Paydowns of securities are recorded as receivables as of the due date, which varies by the issuer. Dividend income is recognized on the ex-dividend date or upon dividend notification for certain foreign securities, and interest income, including amortization of bond premium and accretion of bond discount computed on an effective yield basis, is accrued daily.
Foreign Currency Translations and Forward Foreign Currency Contracts
Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars at the closing rate of exchange. Foreign currency amounts related to the purchase or sale of securities, income and expenses are translated at the exchange rate on the transaction date. The Fund isolates the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities.
Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between trade and settlement dates on security transactions,
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Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.
Advantus International Bond Fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuations. Advantus International Bond Fund may also enter into these contracts for purposes of increasing exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The net U.S. dollar value of foreign currency underlying all contractual commitments held by Advantus International Bond Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. Advantus International Bond Fund is subject to the credit risk that the other party will not complete the obligations of the contract. The fair values of the forward currency exchange contracts are obtained from an independent pricing source.
Futures Transactions
To gain exposure to, or protect itself from market changes, the Funds (excluding the Advantus Money Market Fund) may buy and sell financial futures contracts traded on any U.S. or foreign exchange. The Funds may also buy and write put and call options on these futures contracts. Risks of entering into futures contracts and related options include the possibility of an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities.
Upon entering into a futures contract, a Fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value as determined by each relevant clearing agency and is aggregated at a Futures Commission Merchant (FCM) which is registered with the Commodity Futures Trading Commission (CFTC) or the applicable regulator. Subsequent payments (variation margin) are made or received by a Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. A Fund recognizes a realized gain or loss when the contract is closed or expired. In the event of default, counterparty risk is significantly reduced as creditors to the FCM do not have claim to a Fund's assets in the segregated account. For a listing of open futures contracts see the Schedule of Investments for each Fund.
Repurchase Agreements
Each Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. Each Fund requires at all times that the repurchase agreement be collateralized by cash, U.S. Government securities, U.S. Government-sponsored enterprise securities or corporate securities having a value equal to, or in excess of, the value of the repurchase agreement. If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of those securities has declined, a Fund may incur a loss upon disposition of the securities. Repurchase agreements are carried at amortized cost. At December 31, 2013, no Funds were invested in repurchase agreements.
Options Transactions
Each Fund (excluding the Advantus Money Market Fund) may write (i.e., sell) covered call and secured put options and purchase and sell put and call options written by others. Options are a type of derivative financial instrument. The Funds may invest in derivative financial instruments, including options, in order to manage risk or gain exposure to various other investments or markets. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that
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Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
a Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Option contracts are valued daily and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. The Funds designate collateral consisting of cash, U.S. government securities or other liquid assets sufficient to collateralize the market value of written options.
Federal Taxes
As a result of the Agreement and Plan of Reorganization, each Fund in the Trust is no longer recognized as a regulated investment company, for federal income tax purposes, but as a partnership as long as such Fund has more than one shareholder. A Fund with only a single shareholder, such as Advantus Managed Volatility Fund, will be taxed as a disregarded entity for federal income tax purposes. The Funds are not required to pay federal or Delaware income taxes on their net investment income and net capital gains, as each Fund is treated as either a partnership or a disregarded entity for federal income tax purposes. All interest, dividends, gains and losses of each Fund are deemed to have been "passed through" to the shareholders in proportion to its holdings of the Fund regardless of whether such interest, dividends or gains and losses have been distributed by the Fund.
The FASB, Accounting Standards Codification 740, Income Taxes (ASC 740), provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. The Funds have evaluated the implications of ASC 740 for all open tax years, and have determined there is no impact to the Funds' financial statements as of the year ended December 31, 2013. The Funds' federal and state income returns for which the applicable statutes of limitations have not expired (2010, 2011, 2012, 2013) remain subject to examination by the Internal Revenue Service and states department of revenue.
Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of temporary book-to-tax differences.
Distributions to Shareholders
Distributions to shareholders from net investment income for the Advantus Money Market Fund are declared daily and reinvested at month-end in additional shares of capital stock. As partnerships, the Funds are not required to distribute taxable income, and Funds other than Advantus Money Market Fund will not distribute taxable income.
Securities Purchased on a When-Issued Basis
Delivery and payment for securities which have been purchased by a Fund on a forward commitment or when-issued basis can take place a month or more after the transaction date. During this period, such securities are subject to market fluctuations. For the year ended December 31, 2013, the Advantus Bond Fund and Advantus Mortgage Securities Fund had entered into outstanding, when-issued or forward commitments at fair value of $15,850,092 and $11,945,522, respectively. The Funds have segregated assets to cover such when-issued and forward commitments.
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Securian Funds Trust
Notes to Financial Statements – continued
(3) Investment Security Transactions
The cost of purchases and proceeds from sales of investment securities, other than temporary investments in short-term securities, for the year ended December 31, 2013 were as follows:
Non-U.S. Government | U.S. Government* | ||||||||||||||||||
Purchases | Sales | Purchases | Sales | ||||||||||||||||
Advantus Bond Fund | $ | 187,814,423 | $ | 187,420,984 | $ | 663,024,758 | $ | 646,621,918 | |||||||||||
Advantus Index 400 Mid-Cap Fund | 18,968,588 | 29,672,186 | – | – | |||||||||||||||
Advantus Index 500 Fund | 31,558,292 | 22,488,925 | – | – | |||||||||||||||
Advantus International Bond Fund | 38,233,437 | 18,030,231 | – | – | |||||||||||||||
Advantus Managed Volatility Fund** | 29,594,373 | 648,836 | 10,598,481 | 8,113,867 | |||||||||||||||
Advantus Mortgage Securities Fund | 11,212,760 | 10,169,658 | 341,825,112 | 337,641,543 | |||||||||||||||
Advantus Real Estate Securities Fund | 51,199,423 | 45,619,564 | – | – |
* Includes U.S. government-sponsored enterprise securities
** The Fund commenced operations on May 1, 2013.
(4) Expenses and Related Party Transactions
The Funds have an investment advisory agreement with Advantus Capital, a wholly-owned subsidiary of Securian Financial Group, Inc. ("Securian Financial Group"). Under the advisory agreement, Advantus Capital manages the Fund's investments and provides research, statistical and advisory services and pays related office rental and executive expenses and salaries.
Each Fund of the Trust pays Advantus Capital an annual fee, based on average daily net assets, in the following amounts:
Annual Fee on Net Assets | |||||||
Advantus Bond Fund | .40% of net assets to $1 billion; and .35% of net assets exceeding $1 billion | ||||||
Advantus Index 400 Mid-Cap Fund | .15% of net assets to $1 billion; and .10% of net assets exceeding $1 billion | ||||||
Advantus Index 500 Fund | .15% of net assets to $1 billion; and .10% of net assets exceeding $1 billion | ||||||
Advantus International Bond Fund | .60% of net assets to $1 billion; and .55% of net assets exceeding $1 billion | ||||||
Advantus Managed Volatility Fund | .65% of all assets | ||||||
Advantus Money Market Fund | .30% of net assets to $1 billion; and .25% of net assets exceeding $1 billion | ||||||
Advantus Mortgage Securities Fund | .40% of net assets to $1 billion; and .35% of net assets exceeding $1 billion | ||||||
Advantus Real Estate Securities Fund | .70% of net assets to $1 billion; and .65% of net assets exceeding $1 billion |
Advantus Capital has a sub-advisory agreement with Franklin Advisers, Inc. (the "Sub-Advisor"), a registered investment Advisor for the Advantus International Bond Fund, under which Advantus Capital pays the Sub-Advisor an annual fee of .37% based on average daily net assets.
The Trust bears certain other operating expenses including independent trustees' fees, federal registration fees, printing and shareholder report expenses, legal fees, audit fees, custodian fees, compensation paid to the Trust's Chief Compliance Officer, and other miscellaneous expenses. Each Fund will pay all expenses directly related to its individual operations. Operating expenses not attributable to a specific Fund will be allocated based upon the proportionate daily net assets of each Fund.
Administrative Services Fee
Prior to January 1, 2013 each Fund paid an administrative fee to Minnesota Life for accounting, legal and other administrative services which Minnesota Life provided. Administrative service fees for accounting fees were allocated to the Funds as determined by the providers based on time and effort. Effective January 1, 2013, the Trust entered into an agreement with Securian Financial Group under which Securian Financial Group provides the same services as those previously provided by Minnesota Life, and under which each Fund reimburses Securian Financial Group quarterly for the actual costs incurred in performing such services, as determined in accordance with Securian Financial Group's customary cost accounting procedures consistently applied. Total
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Securian Funds Trust
Notes to Financial Statements – continued
(4) Expenses and Related Party Transactions – (continued)
quarterly administrative fees by Fund range from $1,146 to $21,992. Legal services for each Fund range from $3,153 to $3,717, per quarter.
Accounting Services
The Trust has an agreement with State Street Bank and Trust Company ("State Street") in which State Street provides daily fund accounting and investment administration services. In 2013, these fees ranged from .02% to .05% of net assets depending on the size and makeup of the respective Fund. The fees are based upon a calculation of multiple factors including base fees, size of assets, out of pocket expenses and certain other fees.
Distribution Fees
The Trust has adopted a Rule 12b-1 Distribution Plan which covers all of its Class 2 shares and its Advantus Managed Volatility Fund and Advantus Money Market Fund ("Covered Funds"). Each Covered Fund pays distribution fees at the annual rate of .25% of the average daily net assets of the Covered Fund. These fees are paid out of the Covered Fund's assets, which reduces a Covered Fund's net assets as do other Covered Fund expenses. The fees are paid to Securian Financial Services, Inc. ("Securian Financial"), the Trust's underwriter, to pay for distribution-related expenses and activities in connection with the distribution of the Covered Fund's shares. Securian Financial may also use the fees to pay insurance companies, dealers or others for certain non-distribution services as provided for in the Distribution Plan.
Net Investment Income Maintenance Agreement for the Advantus Money Market Fund
Effective May 1, 2012, the Board of Trustees of the Trust approved a Restated Net Investment Income Maintenance Agreement among Securian Funds Trust (on behalf of Advantus Money Market Fund), Advantus Capital and Securian Financial. Under such Agreement, Advantus Capital agrees to waive, reimburse or pay Advantus Money Market Fund expenses so that the Fund's daily net investment income does not fall below zero. Securian Financial may also waive its Rule 12b-1 fees. Advantus Capital and Securian Financial each has the option under the Agreement to recover the full amount waived, reimbursed or paid (the "Expense Waiver") on any day on which the Fund's net investment income exceeds zero. On any day, however, the Expense Waiver does not constitute an obligation of the Fund unless Advantus Capital or Securian Financial has expressly exercised its right to recover a specified portion of the Expense Waiver on that day, in which case such specified portion is then due and payable by the Fund. In addition, the right of Advantus Capital and/or Securian Financial to recover the Expense Waiver is subject to the following limitations: (1) if a repayment of the Expense Waiver by the Fund would cause the Fund's net investment income to fall below zero, such repayment is deferred until a date when repayment would not cause the Fund's net investment income to fall below zero; (2) the right to recover any portion of the Expense Waiver expires three years after the effective date of that portion of the Expense Waiver; and (3) any repayment of the Expense Waiver by the Fund cannot cause the Fund's expense ratio to exceed 1.25%. For the year ended December 31, 2013, the advisory, 12b-1 distribution and other fee waivers totaled $284,144, $236,787 and $167,573 respectively. These amounts are reflected as fees waived in the accompanying Statement of Operations. As of December 31, 2013, Advantus Capital and Securian Financial have collectively waived a cumulative total of $2,815,279 pursuant to the Agreement, including expenses waived under the prior agreement with Advantus Series Fund, Inc., of which $1,993,314 was eligible for recovery by Advantus Capital and Securian Financial as of such date. If Advantus Capital and Securian Financial exercise their rights to be paid such waived amounts, the Fund's future yield will be negatively affected for an indefinite period. The Agreement shall continue in effect following May 1, 2015, provided such continuance is specifically approved by a majority of the Trust's independent Trustees.
Advantus Managed Volatility Fund Expense Waivers
Advantus Capital and the Trust, on behalf of the Advantus Managed Volatility Fund, have entered into an Expense Limitation Agreement, dated May 1, 2013, which limits the operating expenses of the Fund, excluding
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Securian Funds Trust
Notes to Financial Statements – continued
(4) Expenses and Related Party Transactions – (continued)
certain expenses (such as interest expense, acquired fund fees, cash overdraft fees, taxes, brokerage commissions, other expenditures which are capitalized in accordance with the generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Fund's business), to 0.80% of the Fund's average daily net assets through April 30, 2015. The Agreement renews annually for a full year each year thereafter unless terminated by Advantus Capital upon at least 30 days' notice prior to the end of a contract term. The Fund is authorized to reimburse Advantus Capital for management fees previously waived and/or for the cost of expenses previously paid by Advantus Capital pursuant to this agreement, provided that such reimbursement will not cause the Fund to exceed any limits in effect at the time of such reimbursement. The Fund's ability to reimburse Advantus Capital in this manner only applies to fees waived or reimbursements made by Advantus Capital within the three fiscal years prior to the date of such reimbursement. For the year ended December 31, 2013, the advisory waivers totaled $130,867. This amount is reflected as fees waived in the accompanying Statement of Operations. As of December 31, 2013, Advantus Capital has waived a cumulative total of $130,867 pursuant to the Agreement. To the extent that the Fund makes such reimbursements to Advantus Capital, the amount of the reimbursements will be reflected in the financial statements in the Fund's shareholder reports and in Other Expenses under Fees and Expenses of the Fund.
(5) Illiquid Securities
Each Fund currently limits investments in illiquid securities to 15% of net assets at the time of purchase, except for the Advantus Money Market Fund which limits its investment in illiquid securities to 5% of net assets. At December 31, 2013, the Advantus Bond Fund and Advantus Mortgage Securities Fund held illiquid securities of $11,690,669 and $2,326,006, respectively, which represent 3.2% and 2.4% of net assets, respectively. Pursuant to guidelines adopted by the Trust's Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the percent limitations specified above.
The following is a list of illiquid securities by fund, including acquisition date and cost, as of December 31, 2013:
Acquisition Date | Cost | ||||||||||
Advantus Bond Fund | |||||||||||
BHN I Mortgage Fund | Various | $ | 69,485 | ||||||||
Countryplace Manufactured Housing Contract Trust | 06/29/2005 | 1,754,865 | |||||||||
FAN Engine Securitization, Ltd. | 10/18/2013 | 836,111 | |||||||||
Hometown Commercial Mortgage | Various | 1,838,384 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | 03/22/2010 | 1,045,391 | |||||||||
Mid-America Apartments L.P. | 12/10/2013 | 1,876,961 | |||||||||
Multi Security Asset Trust | 02/24/2005 | 1,523,681 | |||||||||
Prudential Holdings, LLC | 09/26/2013 | 960,285 | |||||||||
Symetra Financial Corp. | Various | 2,246,039 | |||||||||
$ | 12,151,202 | ||||||||||
Acquisition Date | Cost | ||||||||||
Advantus Mortgage Securities Fund | |||||||||||
BHN I Mortgage Fund | Various | $ | 62,475 | ||||||||
Countryplace Manufactured Housing Contract Trust | 06/29/2005 | 450,964 | |||||||||
FAN Engine Securitization, Ltd. | 10/18/2013 | 223,611 | |||||||||
Government National Mortgage Association (GNMA) | 06/17/2003 | 533,624 | |||||||||
Hometown Commercial Mortgage | 11/28/2006 | 424,924 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | 03/22/2010 | 332,643 | |||||||||
Multi Security Asset Trust | 02/24/2005 | 978,001 | |||||||||
$ | 3,006,242 |
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Notes to Financial Statements – continued
(6) Fair Value Measurement
The Trust has established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs. The hierarchy also establishes a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumption that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs include information market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the Trust's estimates about the assumptions market participants would use in valuing the financial asset and liability based on the best information available in the circumstances. Level 1 includes unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, credit risk and prepayment speed). Level 3 includes unobservable inputs, which may include the adviser's own assumptions in determining the fair value of an investment or are based on independent non-binding broker quotes. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, and written options.
The following is a summary of the levels used for the year ended December 31, 2013 in valuing the Fund's assets and liabilities (please see the Schedule of Investments for each Fund for a listing of all securities within each category):
Fair Value Measurement at December 31, 2013 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Advantus Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | $ | – | $ | 175,078,481 | $ | – | $ | 175,078,481 | |||||||||||
Asset-Backed Securities | – | 17,097,459 | – | 17,097,459 | |||||||||||||||
Other Mortgage-Backed Securities | – | 24,633,096 | 3,091,136 | 27,724,232 | |||||||||||||||
Corporate Obligations | – | 120,883,795 | 14,929,225 | 135,813,020 | |||||||||||||||
Investment Companies | 18,408,890 | – | – | 18,408,890 | |||||||||||||||
Total Investments | 18,408,890 | 337,692,831 | 18,020,361 | 374,122,082 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 452,516 | – | – | 452,516 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Futures Contracts | (4,082 | ) | – | – | (4,082 | ) | |||||||||||||
Advantus Index 400 Mid-Cap Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 221,713,423 | – | – | 221,713,423 | |||||||||||||||
Investment Companies | 7,111,725 | – | – | 7,111,725 | |||||||||||||||
Total Investments | 228,825,148 | – | – | 228,825,148 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 146,611 | – | – | 146,611 | |||||||||||||||
Advantus Index 500 Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 562,390,422 | – | – | 562,390,422 | |||||||||||||||
Investment Companies | 14,393,293 | – | – | 14,393,293 | |||||||||||||||
Total Investments | 576,783,715 | – | – | 576,783,715 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 425,739 | – | – | 425,739 |
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Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Fair Value Measurement at December 31, 2013 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Advantus International Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Long-Term Debt Securities | $ | – | $ | 98,988,389 | $ | – | $ | 98,988,389 | |||||||||||
Short-Term Debt Securities | – | 14,929,664 | – | 14,929,664 | |||||||||||||||
Investment Companies | 12,140,075 | – | – | 12,140,075 | |||||||||||||||
Total Investments | 12,140,075 | 113,918,053 | – | 126,058,128 | |||||||||||||||
Other Financial Instruments* Forward Foreign Currency Contracts | – | 2,560,757 | – | 2,560,757 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Forward Foreign Currency Contracts | – | (2,661,478 | ) | – | (2,661,478 | ) | |||||||||||||
Advantus Managed Volatility Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | – | 2,437,124 | – | 2,437,124 | |||||||||||||||
Corporate Obligations | – | 15,923,340 | 254,375 | 16,177,715 | |||||||||||||||
Investment Companies | 33,464,750 | – | – | 33,464,750 | |||||||||||||||
Total Investments | 33,464,750 | 18,360,464 | 254,375 | 52,079,589 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 1,079,834 | – | – | 1,079,834 | |||||||||||||||
Advantus Money Market Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Commercial Paper | – | 13,999,440 | – | 13,999,440 | |||||||||||||||
Certificates of Deposit | – | 7,000,210 | – | 7,000,210 | |||||||||||||||
Corporate Bonds & Notes | – | 21,896,676 | – | 21,896,676 | |||||||||||||||
U.S. Government Obligations | – | 33,698,917 | – | 33,698,917 | |||||||||||||||
Other Short-Term Investments | – | 7,003,002 | – | 7,003,002 | |||||||||||||||
Investment Companies | 6,167,057 | – | – | 6,167,057 | |||||||||||||||
Total Investments | 6,167,057 | 83,598,245 | – | 89,765,302 | |||||||||||||||
Advantus Mortgage Securities Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | – | 85,236,437 | – | 85,236,437 | |||||||||||||||
Asset-Backed Securities | – | 4,389,164 | – | 4,389,164 | |||||||||||||||
Other Mortgage-Backed Securities | – | 2,906,772 | 1,256,032 | 4,162,804 | |||||||||||||||
Corporate Obligations | – | 587,708 | – | 587,708 | |||||||||||||||
Investment Companies | 14,073,334 | – | – | 14,073,334 | |||||||||||||||
Total Investments | 14,073,334 | 93,120,081 | 1,256,032 | 108,449,447 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Futures Contracts | (60,804 | ) | – | �� | – | (60,804 | ) | ||||||||||||
Advantus Real Estate Securities Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 112,301,501 | – | – | 112,301,501 | |||||||||||||||
Preferred Stocks | 326,572 | – | – | 326,572 | |||||||||||||||
Investment Companies | 4,711,813 | – | – | 4,711,813 | |||||||||||||||
Total Investments | 117,339,886 | – | – | 117,339,886 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Written Options | (6,625 | ) | – | – | (6,625 | ) |
* Investments in Other Financial Instruments are derivative instruments reflected in the notes to the Schedule of Investments in Securities. All derivatives currently held, except written options, are reflected at the gross unrealized appreciation (depreciation) on the instruments.
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Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Level 2 Measurements:
Government obligations comprised of U.S. Treasury, agency and government guaranteed fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on quoted prices in markets that are not active or using matrix pricing or other similar techniques using standard market observable inputs such as the benchmark U.S. Treasury yield curve, the spread of the U.S. Treasury curve for the identical security and comparable securities that are actively traded.
Asset-backed and other mortgage-backed securities comprised of RMBS, CMBS and ABS fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information including: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans, etc.
Corporate obligations comprised of U.S. corporate and foreign corporate fixed maturity securities – These securities are principally valued using the market and income approaches. Valuation is based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques that use standard market observable inputs such as a benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Investment grade privately placed securities are valued using discounted cash flow methodologies using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer.
Long-term and short-term debt securities comprised of foreign government and state and political subdivision fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market observable inputs including benchmark U.S. Treasury or other yields, issuer ratings, broker-dealer quotes, issuer spreads and reported trades of similar securities, including those within the same sub-sector or with a similar maturity or credit rating.
Level 3 Measurements:
In general, investments classified within Level 3 use many of the same valuation techniques and inputs as described above. However, if key inputs are unobservable, or if the investments are less liquid and there is very limited trading activity, the investments are generally classified as Level 3.
Asset-backed and other mortgage-backed securities comprised of RMBS, CMBS and ABS securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data. Below investment grade securities and ABS supported by sub-prime mortgage loans included in this level are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2.
Corporate obligations comprised of U.S. corporate and foreign corporate securities – These securities, including financial services industry hybrid securities classified within fixed maturity securities, are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing or other similar
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Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
techniques that utilize unobservable inputs or cannot be derived principally from, or corroborated by, observable market data, including illiquidity premiums and spread adjustments to reflect industry trends or specific credit-related issues. Generally, below investment grade privately placed or distressed securities included in this level are valued using discounted cash flow methodologies which rely upon significant, unobservable inputs and inputs that cannot be derived principally from, or corroborated by, observable market data.
For the period ended December 31, 2013, it has been determined that no significant transfers between level 1 and level 2 occurred.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. The Fund's policy is to recognize transfers between the levels as of the end of the year. The following table presents the fiscal year-to-date activity of Level 3 securities held at the beginning and the end of the period.
Fund | Beginning Balance December 31, 2012 (2) | Purchases | Sales | Accrued discounts (premiums) | Total realized and unrealized gains (losses) | Transfers in to Level 3 (1) | Transfers out of Level 3 (1) | Ending Balance December 31, 2013 | Net Change in Unrealized Appreciation (Depreciation) on Investments Held at December 31, 2013 | ||||||||||||||||||||||||||||||
Advantus Bond Fund | |||||||||||||||||||||||||||||||||||||||
Other Mortgage Backed | $ | 1,866,301 | $ | 1,810,457 | $ | 1,105,809 | $ | 505 | $ | 519,682 | $ | – | $ | – | $ | 3,091,136 | $ | 411,268 | |||||||||||||||||||||
Corporate Obligation | 9,041,284 | 12,245,525 | 6,245,390 | (26,823 | ) | (85,371 | ) | – | – | 14,929,225 | (16,932 | ) | |||||||||||||||||||||||||||
Total | 10,907,585 | 14,055,982 | 7,351,199 | (26,318 | ) | 434,311 | – | – | 18,020,361 | 394,336 | |||||||||||||||||||||||||||||
Advantus Managed Volatility Fund | |||||||||||||||||||||||||||||||||||||||
Corporate Obligation | – | 250,000 | – | – | 4,375 | – | – | 254,375 | 4,375 | ||||||||||||||||||||||||||||||
Total | – | 250,000 | – | – | 4,375 | – | – | 254,375 | 4,375 | ||||||||||||||||||||||||||||||
Advantus Mortgage Securities Fund | |||||||||||||||||||||||||||||||||||||||
Other Mortgage Backed | 659,175 | 598,498 | 297,563 | 296 | 295,626 | – | – | 1,256,032 | 297,323 | ||||||||||||||||||||||||||||||
Total | 659,175 | 598,498 | 297,563 | 296 | 295,626 | – | – | 1,256,032 | 297,323 |
(1) Transfers in to/out of Level 3 are generally due to the availability of quoted market prices or changes in the Trust's conclusion that pricing information received from a third party pricing service is not reflective of market activity.
(2) The Advantus Managed Volatility Fund commenced operations on May 1, 2013.
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Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Quantitative Information Regarding Level 3 Assets
The following table provides a summary of the significant unobservable inputs used in the fair value measurements of Level 3 assets at December 31, 2013:
Level 3 instrument | Fair value | Valuation technique | Unobservable input | Range (Weighted average) | |||||||||||||||
Advantus Bond Fund | |||||||||||||||||||
Other Mortgage-Backed – |
|
| Implied spread to | 45 | bps – 3385 bps | ||||||||||||||
Non-Investment Grade | $ | 3,091,136 | Discounted cash flow | U.S. Treasuries (1) | (923 | bps) | |||||||||||||
|
| Implied spread to | 58 | bps – 367 bps | |||||||||||||||
Corporate Obligations | 14,929,225 | Discounted cash flow | U.S. Treasuries (1) | (211 | bps) | ||||||||||||||
Advantus Managed Volatility Fund | |||||||||||||||||||
|
| Implied spread to | |||||||||||||||||
Corporate Obligations | 254,375 | Discounted cash flow | U.S. Treasuries (1) | 103 | bps | ||||||||||||||
Advantus Mortgage Securities Fund | |||||||||||||||||||
Other Mortgage-Backed – |
|
| Implied spread to | 45 | bps – 509 bps | ||||||||||||||
Non-Investment Grade | 1,256,032 | Discounted cash flow | U.S. Treasuries (1) | (387 | bps) |
(1) The valuation is based generally on non-binding broker quotes where quantitative inputs are not observable. Unobservable inputs primarily relate to an implied discounted cash flow modeling spread applied to U.S. Treasuries representing an estimated market participant composite adjustment attributable to liquidity premiums, expected durations, structures and credit quality. For any increase (decrease) in the implied spread to U.S. Treasuries, the fair value of the assets will decrease (increase).
(7) Derivative Instruments Reporting
The Trust provides, when applicable, disclosures of the location, by line item, of fair value amounts in the statement of financial position and the location, by line item, of amounts of gains and losses reported in the statement of financial performance. Generally the derivative instruments outstanding as of period end are disclosed in the Notes to Schedule of Investments. The volume of derivative activity is indicative for all funds with the exception of futures contracts in the Managed Volatility Fund. The volume of futures contracts for the Managed Volatility Fund ranged from $0 to $29,337,000 base notional value averaging $14,517,000.
Equity derivatives were purchased or sold to manage the Advantus Index 500, Advantus Index 400 Mid-Cap and Advantus Managed Volatility Funds' shareholder liquidity and to attempt to replicate intended stock investments to maintain fully invested Funds.
The Advantus Real Estate Securities Fund includes as a non-principal investment strategy the writing (selling) of covered call options. Generally, the strategy will write call options near a price target for the stock. The goal of the covered call strategy is to enhance income of the Fund through the receipt of premium income from the sale of the call, and to decrease volatility of the overall Fund.
Interest rate derivatives are used both to manage the average duration of a Fund's fixed income portfolio, as well as to hedge against the effects of interest rate changes on a portfolio's current or intended investments.
Foreign exchange derivatives were used to attempt to hedge against the effects of exchange rate changes within the Advantus International Bond Fund's current or intended investments in foreign securities, as well as, to more efficiently obtain exposure to foreign currencies or to take advantage of cross currency markets in order to benefit from valuation differentials and shifts in pricing within the currency markets.
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Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
The tables below detail the risk exposure of each of the Funds from derivative instruments:
Risk Exposure | |||||||||||||||||||||||||||
Fund | Instrument Type | Total Value at December 31, 2013 | Statement of Assets and Liabilities Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
Advantus Bond Fund | Futures | $ | 448,434 | Variation margin receivable/payable* | $ | – | $ | 448,434 | $ | – | |||||||||||||||||
Advantus Index 400 Mid-Cap Fund | Futures | 146,611 | Variation margin receivable/payable* | 146,611 | – | – | |||||||||||||||||||||
Advantus Index 500 Fund | Futures | 425,739 | Variation margin receivable/payable* | 425,739 | – | – | |||||||||||||||||||||
Advantus International Bond Fund | Foreign Currency Forwards | 2,560,757 | Unrealized appreciation on forward foreign currency contracts | – | – | 2,560,757 | |||||||||||||||||||||
| Foreign Currency Forwards | (2,661,478 | ) | Unrealized depreciation on forward foreign currency contracts | – | – | (2,661,478 | ) | |||||||||||||||||||
Advantus Managed Volatility Fund | Futures | 1,079,834 | Variation margin receivable/payable* | 1,064,514 | 15,320 | – | |||||||||||||||||||||
Advantus Mortgage Securities Fund | Futures | (60,804 | ) | Variation margin receivable/payable* | – | (60,804 | ) | – | |||||||||||||||||||
Advantus Real Estate Securities Fund | Options | (6,625 | ) | Call options written at value | (6,625 | ) | – | – |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the notes to the Schedules of Investments in Securities. Only current day's variation margin is reported within the Statement of Assets and Liabilities.
Realized Gain (Loss) on Derivatives Recognized in Income | |||||||||||||||||||||||||||
Fund | Instrument Type | Total Value at December 31, 2013 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
Advantus Bond Fund | Futures | $ | 574,611 | Net realized gains (losses) from futures transactions | $ | – | $ | 574,611 | $ | – | |||||||||||||||||
Advantus Index 400 Mid-Cap Fund | Futures | 1,183,147 | Net realized gains (losses) from futures transactions | 1,183,147 | – | – | |||||||||||||||||||||
Advantus Index 500 Fund | Futures | 2,910,587 | Net realized gains (losses) from futures transactions | 2,910,587 | – | – | |||||||||||||||||||||
Advantus International Bond Fund | Foreign Currency Forwards | 3,627,897 | Net realized gains (losses) from foreign currency transactions | – | – | 3,627,897 | |||||||||||||||||||||
Advantus Managed Volatility Fund | Futures | 533,903 | Net realized gains (losses) from futures transactions | 535,720 | (1,817 | ) | – | ||||||||||||||||||||
Advantus Mortgage Securities Fund | Futures | 48,601 | Net realized gains (losses) from futures transactions | – | 48,601 | – | |||||||||||||||||||||
Advantus Real Estate Securities Fund | Options | 41,824 | Net realized gains (losses) from options transactions | 41,824 | – | – |
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Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |||||||||||||||||||||||||||
Fund | Instrument Type | Total Value at December 31, 2013 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
Advantus Bond Fund | Futures | $ | 389,046 | Net change in unrealized appreciation or depreciation on futures transactions | $ | – | $ | 389,046 | $ | – | |||||||||||||||||
Advantus Index 400 Mid-Cap Fund | Futures | 85,797 | Net change in unrealized appreciation or depreciation on futures transactions | 85,797 | – | – | |||||||||||||||||||||
Advantus Index 500 Fund | Futures | 495,909 | Net change in unrealized appreciation or depreciation on futures transactions | 495,909 | – | – | |||||||||||||||||||||
Advantus International Bond Fund | Foreign Currency Forwards | (2,586,804 | ) | Net change in unrealized appreciation or depreciation on foreign currency transactions | – | – | (2,586,804 | ) | |||||||||||||||||||
Advantus Managed Volatility Fund | Futures | 1,079,834 | Net change in unrealized appreciation or depreciation on futures transactions | 1,064,514 | 15,320 | – | |||||||||||||||||||||
Advantus Mortgage Securities Fund | Futures | (68,496 | ) | Net change in unrealized appreciation or depreciation on futures transactions | – | (68,496 | ) | – | |||||||||||||||||||
Advantus Real Estate Securities Fund | Options | (21,626 | ) | Net change in unrealized appreciation or depreciation on written options | (21,626 | ) | – | – |
Option Contracts Written
Contracts and premium amounts associated with options contracts written by the Advantus Real Estate Securities Fund during the period ended December 31, 2013 are as follows:
Options Outstanding at December 31, 2012 | Written | Closed | Exercised | Expired | Options Outstanding at December 31, 2013 | ||||||||||||||||||||||
Advantus Real Estate Securities Fund | |||||||||||||||||||||||||||
Premium Amount | $ | 23,525 | $ | 21,980 | $ | – | $ | 12,506 | $ | 29,318 | $ | 3,681 | |||||||||||||||
Number of Contracts | 489 | 357 | – | 212 | 581 | 53 |
The Funds may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. The Funds manage credit risk related to derivatives by entering into transactions with highly rated counterparties. Generally, the current credit exposure of the derivative contracts is limited to the positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting arrangements and any collateral received pursuant to credit support
97
Securian Funds Trust
Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
annexes. Because exchange traded derivatives are purchased through regulated exchanges and positions are settled regularly, the Funds have minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments.
(8) Affiliated Ownership
The Advantus Managed Volatility Fund invests in underlying securities and other investment companies, of which certain underlying funds (the "affiliated underlying funds") may be deemed to be under common control with the Advantus Managed Volatility Fund because they share the same investment adviser, Advantus Capital, and because they are overseen by the same Board of Trustees. The Advantus Managed Volatility Fund will achieve its equity exposure by investing primarily in Class 1 Shares of the Advantus Index 500 Fund, an affiliated fund in the Trust that seeks investment results that correspond generally to the price and yield performance of the common stocks included in the Standard & Poor's 500 Index. A summary of all transactions with the affiliated Advantus Index 500 Fund as of December 31, 2013 is as follows:
Fund/Underlying Fund | Balance of Shares Held at May 1, 2013^ | Gross Additions | Gross Sales | Balance of Shares Held at December 31, 2013 | Value at December 31, 2013 | Realized Gain (Loss) | Distributions Received | ||||||||||||||||||||||||
Advantus Managed Volatility Fund | |||||||||||||||||||||||||||||||
Advantus Index 500 Fund | – | 2,081,359 | – | 2,081,359 | $ | 14,199,025 | $ | – | $ | – |
^ The Advantus Managed Volatility Fund commenced operations on May 1, 2013.
(9) Subsequent Events
Management has evaluated subsequent events for the Trust through the date the financial statements are issued, and has concluded there are no events that require financial statement disclosure and/or adjustments to the financial statements.
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Other Information
(unaudited)
Fund Expenses Paid by Shareholders
Shareholders of the Trust incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; (the Trust does not impose transaction costs, but you will incur such costs in connection with the variable life insurance policies and variable annuity contracts that invest in the Funds) and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Trust expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 01, 2013 through December 31, 2013. Expenses paid during the period in the tables below are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by number of days in most recent fiscal half-year divided by 365 to reflect the one-half year period.
Actual Expenses
The table below provides information about actual account values and actual expenses for the Funds. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table for the fund you own under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
CLASS 1 | CLASS 2 | ||||||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | |||||||||||||||||||||||||
Advantus Bond Fund | $ | 1,000 | $ | 1,011.00 | 0.51 | % | $ | 2.59 | $ | 1,009.70 | 0.76 | % | $ | 3.85 | |||||||||||||||||
Advantus Index 400 Mid-Cap Fund | 1,000 | 1,163.13 | 0.27 | % | 1.47 | 1,161.70 | 0.52 | % | 2.83 | ||||||||||||||||||||||
Advantus Index 500 Fund | 1,000 | 1,161.53 | 0.22 | % | 1.20 | 1,160.07 | 0.47 | % | 2.56 | ||||||||||||||||||||||
Advantus International Bond Fund | 1,000 | 1,027.32 | 0.84 | % | 4.29 | 1,026.04 | 1.09 | % | 5.57 | ||||||||||||||||||||||
Advantus Managed Volatility Fund | 1,000 | 1,101.55 | 0.80 | % | 4.24 | NA | NA | NA | |||||||||||||||||||||||
Advantus Money Market Fund | 1,000 | 1,000.00 | 0.13 | % | 0.66 | NA | NA | NA | |||||||||||||||||||||||
Advantus Mortgage Securities Fund | 1,000 | 1,000.48 | 0.68 | % | 3.43 | 999.23 | 0.93 | % | 4.69 | ||||||||||||||||||||||
Advantus Real Estate Securities Fund | 1,000 | 971.36 | 0.90 | % | 4.47 | 970.16 | 1.14 | % | 5.66 |
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Other Information – continued
(unaudited)
Hypothetical Example for Comparison Purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds' actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds' and other funds. To do so, compare the 5% hypothetical example of the funds you own with the 5% hypothetical examples that appear in the shareholder reports of other similar funds.
CLASS 1 | CLASS 2 | ||||||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | |||||||||||||||||||||||||
Advantus Bond Fund | $ | 1,000 | $ | 1,022.63 | 0.51 | % | $ | 2.60 | $ | 1,021.37 | 0.76 | % | $ | 3.87 | |||||||||||||||||
Advantus Index 400 Mid-Cap Fund | 1,000 | 1,023.84 | 0.27 | % | 1.38 | 1,022.58 | 0.52 | % | 2.65 | ||||||||||||||||||||||
Advantus Index 500 Fund | 1,000 | 1,024.10 | 0.22 | % | 1.12 | 1,022.84 | 0.47 | % | 2.40 | ||||||||||||||||||||||
Advantus International Bond Fund | 1,000 | 1,020.97 | 0.84 | % | 4.28 | 1,019.71 | 1.09 | % | 5.55 | ||||||||||||||||||||||
Advantus Managed Volatility Fund | 1,000 | 1,021.17 | 0.80 | % | 4.08 | NA | NA | NA | |||||||||||||||||||||||
Advantus Money Market Fund | 1,000 | 1,024.55 | 0.13 | % | 0.66 | NA | NA | NA | |||||||||||||||||||||||
Advantus Mortgage Securities Fund | 1,000 | 1,021.78 | 0.68 | % | 3.47 | 1,020.52 | 0.93 | % | 4.74 | ||||||||||||||||||||||
Advantus Real Estate Securities Fund | 1,000 | 1,020.67 | 0.90 | % | 4.58 | 1,019.46 | 1.14 | % | 5.80 |
Please note that the expenses shown in both tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the information provided in the hypothetical example table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Proxy Voting Policies and Procedures
A description of the policies and procedures that Advantus Capital uses to vote proxies related to each Fund's portfolio securities is set forth in the Trust's Statement of Additional Information which is available without charge, upon request, by calling, toll-free, 800-995-3850 or on the Securities and Exchange Commission's website at www.sec.gov. The Trust will provide this document within three business days of receipt of a request, by first-class mail or other means designed to ensure equally prompt delivery.
Proxy Voting Record
The Trust's proxy voting record for the 12 month period ended December 31 is available by calling, toll-free, 866-330-7355 or on the Securities and Exchange Commission's website at www.sec.gov no later than August 31 each year. The Trust will also provide this information, within three business days of receipt of a request, by first-class mail or other means designed to ensure equally prompt delivery.
100
Securian Funds Trust
Other Information – continued
(unaudited)
Availability of Quarterly Schedule of Investments
The Trust files its complete schedule of investment holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available to shareholders without charge on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, DC. More information of the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
101
Securian Funds Trust
Trustees and Executive Officers
(unaudited)
Under Delaware law, the Board of Trustees of the Trust has overall responsibility for managing the Trust in good faith and in a manner reasonably believed to be in the best interests of the Trust. The Trustees meet periodically throughout the year to oversee the Trust's activities, review contractual arrangements with companies that provide services to the Trust, and review the performance of the Trust and its Funds. One of the four current Trustees is considered an "interested person" (as defined in the Investment Company Act of 1940) of the Trust. The other three Trustees, because they are not interested persons of the Trust, are considered independent ("Independent Trustees") and are not employees or officers of, and have no financial interest in, the Trust's investment adviser, Advantus Capital Management, Inc. or its affiliated companies, including Minnesota Life Insurance Company. 75% of the Board of Trustees is required to be comprised of Independent Trustees.
Only executive officers and other officers who perform policy-making functions with the Trust are listed. None of the Trustees is a director of any public company (a company required to file reports under the Securities Exchange Act of 1934) or of any registered investment companies other than the Trust. Each Trustee serves for an indefinite term, until his or her resignation, death or removal.
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Independent Trustees | |||||||||||
Julie K. Getchell 1954 | Trustee since October 21, 2011 | Retired; Senior Financial Consultant to Cargill's Controller's Group, Animal Nutrition Business and Tartan Program from April 2009 to July 2012; Chief Financial Officer/Senior Managing Director, La Crosse Global Fund Services from May 2005 to April 2009; Consultant, Black River Asset Management from October 2004 to May 2005; Chief Financial Officer, Prestige Resorts & Destinations LTD. from 2001 to 2003; Chief Operating Officer, Insight Investment Management, Inc. from 1996 to 2000; Chief Financial Officer, Insight Investment Management, Inc. from 1991 to 1996; Chartered Financial Analyst | |||||||||
Linda L. Henderson 1949 | Trustee since January 25, 2007 | Retired; Professional Advisor, Carlson School of Management, University of Minnesota, 2004 to May 2007; Senior Vice President, Director of Fixed Income Research and Strategies, RBC Dain Rauscher Investments, 1985 to 2004; Chartered Financial Analyst |
102
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Independent Trustees — continued | |||||||||||
William C. Melton 1947 | Trustee since April 25, 2002 | Founder and President of Melton Research Inc. since 1997; member of the Advisory Board of Macroeconomic Advisors LLC since 1998; member, State of Minnesota Council of Economic Advisors from 1988 to 1994 and again from 2010 to the present; various senior positions at American Express Financial Advisors (formerly Investors Diversified Services and, thereafter, IDS/American Express) from 1982 through 1997, including Chief Economist and, thereafter, Chief International Economist | |||||||||
Interested Trustee | |||||||||||
Gregory S. Strong 1944 | Trustee since October 21, 2011 | Retired; President, Advantus Series Fund, Inc. from April 2007 to July 2011; retired since December 2008, previously Senior Vice President, Chief Actuary and Treasurer, Minnesota Life Insurance Company; Treasurer, Minnesota Mutual Companies, Inc., Senior Vice President and Treasurer, Securian Financial Group, Inc.; Treasurer, Securian Holding Company |
103
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Other Executive Officers(2) | |||||||||||
David M. Kuplic 1957 | President since July 28, 2011 | Senior Vice President, Minnesota Life Insurance Company since June 2007; Executive Vice President and Director, Advantus Capital Management, Inc. since July 2007; Senior Vice President and Director, Advantus Capital Management, Inc., February 2006 to July 2007; President and Director, MCM Funding 1997-1, Inc. (entity holding legal title to mortgages beneficially owned by certain clients of Advantus Capital) since July 2007; Vice President, MCM Funding 1997-1, Inc., June 2004 to July 2007; President and Director, MCM Funding 1998-1, Inc. (entity holding legal title to mortgages beneficially owned by certain clients of Advantus Capital) since July 2007; Vice President, MCM Funding 1998-1, Inc., June 2004 to July 2007; Senior Vice President, Securian Financial Group, Inc. since June 2007; President and Director, MIMLIC Funding, Inc. (entity holding legal title to bonds beneficially owned by certain clients of Advantus Capital) since July 2007; Senior Vice President, Securian Life Insurance Company since June 2007; President and Director, Marketview Properties, LLC (entity holding real estate assets) since January 2010; President and Director, Marketview Properties II, LLC (entity holding real estate assets) since March 2010; President, Marketview Properties IV, LLC |
104
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Other Executive Officers(2) — continued | |||||||||||
Gary M. Kleist 1959 | Vice President and Treasurer since July 24, 2003 | Financial Vice President, Chief of Operations and Director, Advantus Capital Management, Inc. since December 1997; Second Vice President, Minnesota Life Insurance Company since February 2000; Vice President and Secretary/Treasurer, MIMLIC Funding, Inc. (entity holding legal title to bonds beneficially owned by certain clients of Advantus Capital) since July 2003; Financial Vice President, MCM Funding 1997-1, Inc. since October 1998 and MCM Funding 1998-1, Inc. (entities holding legal title to mortgages beneficially owned by certain clients of Advantus Capital) since August 1998; Second Vice President, Securian Financial Group, Inc. since February 2000; Second Vice President, Securian Life Insurance Company since June 2007; Financial Vice President, Marketview Properties, LLC since January 2010 and Marketview Properties II, LLC (entities holding certain real estate assets) since March 2010; Financial Vice President, Marketview Properties IV, LLC | |||||||||
Bruce P. Shay 1961 | Vice President since July 28, 2011 | Executive Vice President, Minnesota Life Insurance Company since March 2010; Executive Vice President, Securian Financial Group, Inc. since March 2010; Executive Vice President and Director, Securian Life Insurance Company since June 2010; Senior Vice President, Minnesota Life Insurance Company, February 2004 to February 2010; Senior Vice President, Securian Life Insurance Company, February 2007 to June 2010 | |||||||||
Michael J. Radmer Dorsey & Whitney LLP 50 South Sixth Street Minneapolis, Minnesota 55402 1945 | Secretary since April 16, 1998 | Partner with the law firm of Dorsey & Whitney LLP |
105
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
(1) Unless otherwise noted, the address of each Trustee and officer is the address of the Trust: 400 Robert Street North, St. Paul, Minnesota 55101.
(2) Although not a 'corporate' officer of the Trust, Vicki L. Bailey, born in 1955, has served as the Trust's Chief Compliance Officer since July 2004. Ms. Bailey is also Vice President, Investment Law, Chief Compliance Officer and Secretary, Advantus Capital Management, Inc.; Vice President, Minnesota Life Insurance Company; Vice President and Secretary, MCM Funding 1997-1, Inc. and MCM Funding 1998-1, Inc. (entities holding legal title to mortgages beneficially owned by certain clients of Advantus Capital); Vice President, Securian Financial Group, Inc.; Vice President, Securian Life Insurance Company; Director, Personal Finance Company LLC; Vice President and Secretary, Marketview Properties, LLC and Marketview Properties II, LLC (entities holding certain real estate assets); Vice President and Secretary, Marketview Properties IV, LLC.
106
This offering is available through Securian Financial Services, Inc., a registered broker/dealer. Securian Financial Services, Inc. is the distributor of Minnesota Life and Securian Life variable insurance products.
This report may be used as sales literature in connection with the offer or sale of variable annuity or variable life insurance contracts funded by Securian Funds Trust ("Trust") if preceded or accompanied by (a) the current prospectus for the Trust and such contracts and (b) the current applicable variable annuity or variable life performance report.
Securian Financial Services, Inc.
www.securian.com
Securities Dealer, Member FINRA/SIPC.
Registered Investment Advisor
400 Robert Street North, St. Paul, MN 55101-2098
1.888.237.1838
F38897 Rev 2-2014
Minnesota Life Insurance Company
A Securian Company
Securian Life Insurance Company
A New York admitted insurer
400 Robert Street North
St. Paul, MN 55101-2098
PRESORTED STANDARD
U.S. POSTAGE PAID
CAROL STREAM, IL
PERMIT NO. 1480
©2013 Securian Funds Trust All rights reserved.
F38897 Rev 2-2014
Call 1-800-995-3850 to receive your financial documents electronically. It's fast and convenient.
ITEM 2. CODE OF ETHICS.
Filed herewith as Exhibit 12(a)(1). During the period covered by this report, there has been no amendment to the code of ethics that relates to any element of the code of ethics definition set forth in paragraph (b) of Item 2 of Form N-CSR, nor has the registrant granted a waiver, including an implicit waiver, from a provision of the code of ethics to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions that relates to one or more of the items set forth in paragraph (b) of Item 2 of form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the Trust has determined that Julie K. Getchell, a member of the Board’s Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Ms. Getchell as the Audit Committee’s financial expert. Ms. Getchell is an “independent” Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant to the registrant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
2013 |
| 2012 |
| ||
$ | 204,491 |
| $ | 174,972 |
|
(b) Audit-Related Fees
The aggregate fees billed in each of the last two fiscal years for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item 4 were as follows:
2013 |
| 2012 |
|
-0- |
| -0- |
|
There were no fees billed in each of the last two fiscal years for assurance and related services rendered by the principal accountant to the registrant’s investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(c) Tax Fees
The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice, tax planning and tax return preparation were as follows:
2013 |
| 2012 |
| ||
$ | 19,000 |
| $ | 31,170 | |
There were no fees billed in each of the last two fiscal years for professional services rendered by the principal accountant to the investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) All Other Fees
The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registrant, other than the services reported in paragraphs (a) — (c) of this Item 4 were as follows:
2013 |
| 2012 |
|
-0- |
| -0- |
|
There were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant, other than the services reported in paragraphs (a) — (c) of this Item 4, that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e)(1) Registrant’s audit committee has adopted the following pre-approval policies and procedures in accordance with paragraph (c)(7) of Rule 2-01 of Regulation S-X:
SECURIAN FUNDS TRUST
AUDIT COMMITTEE POLICY regarding pre-approval of services provided by the Independent Auditor
The Audit Committee (the “Committee”) of the Securian Funds Trust (the “Trust”) has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence. This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations. In this regard, the Committee should:
· Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality
· Examine and evaluate the safeguards put into place by the Trust and the auditor to safeguard independence
· Meet quarterly with the partner of the independent audit firm
· Consider approving categories of service that are not deemed to impair independence for a one-year period
It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the Trust’s independent audit firm directly for the Trust. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year.
The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Trust’s Treasurer and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.
In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:
Audit Services
The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:
· Annual Fund financial statement audits
· SEC and regulatory filings and consents
Audit-related Services
In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
· Accounting consultations
· Trust merger support services
· Other accounting related matters
· Agreed Upon Procedure Reports
· Attestation Reports
· Other Internal Control Reports
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $20,000 are subject to pre-approval by the Committee on a case-by-case basis. Individual projects with an estimated fee of less than $20,000 are subject to pre-approval by the then-serving Chair of the Committee on a case-by-case basis. The Chair shall thereafter report to the Full Committee on any such matters at the Committee’s next regularly scheduled meeting.
Tax Services
The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
· Tax compliance services related to the filing or amendment of the following:
· Federal, state and local income tax compliance; and,
· Sales and use tax compliance
· Timely RIC qualification reviews, if applicable
· Tax distribution analysis and planning
· Tax authority examination services
· Tax appeals support services
· Accounting methods studies
· Trust merger support services
· Tax consulting services and related projects
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $20,000 are subject to pre-approval by the Committee on a case-by-case basis. Individual projects with an estimated fee of less than $20,000 are subject to pre-approval by the then-serving Chair of the Committee on a case-by-case basis. The Chair shall thereafter report to the Full Committee on any such matters at the Committee’s next regularly scheduled meeting.
Other Non-audit Services
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent firm without the prior approval of the Audit Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.
Proscribed Services
In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:
· Management functions
· Accounting and bookkeeping services
· Internal audit services
· Financial information systems design and implementation
· Valuation services supporting the financial statements
· Actuarial services supporting the financial statements
· Executive recruitment
· Expert services (e.g., litigation support)
· Investment banking
Policy for Pre approval of Non-Audit Services Provided to Other Affiliated Entities
The Committee is also responsible for pre-approving certain non-audit services provided to Advantus Capital Management Inc. (“Advantus”) and any other entity under common control with Advantus that provides ongoing services to the Trust. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the Trust.
Although the Committee is not required to pre-approve all services provided to Advantus and affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to Advantus and its affiliates.
(e)(2) None of the services provided to the registrant described in paragraphs (b) — (d) of this Item 4 were pre-approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees billed for each of the last two fiscal years by the registrant’s accountant for services rendered to the registrant and to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant were as follows:
2013 |
| 2012 |
| |
-0- |
| $ | 15,500 |
|
(h) The registrant’s audit committee has considered that the provision of the non-audit services rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable. Schedule I — Investments in Securities of Unaffiliated Issuers is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
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
The registrant has a governance committee of its board of trustees, the members of which are all trustees who are not “interested persons” of the registrant, as defined in Section 2(a)(19) of the Investment Company Act of 1940 (“independent trustees”). The governance committee, which operates in accordance with a separate governance committee charter approved by the board of trustees, selects and recommends to the board of trustees individuals for nomination as independent trustees. The names of potential independent trustee candidates are drawn from a number of sources, including recommendations from management of Advantus Capital Management, Inc., the registrant’s investment adviser. Each candidate is evaluated by the governance committee with respect to the relevant business and industry experience that would enable the candidate to serve effectively as an independent trustee, as well as his or her compatibility with respect to business philosophy and style. The members of the goverance committee may conduct an in-person interview of each viable candidate using a standardized questionnaire. When all of the viable candidates have been evaluated and interviewed, the governance committee determines which of the viable candidates should be presented to the board of trustees for selection to become a member of the board of trustees.
Inasmuch as the registrant does not hold annual meetings of shareholders and meetings of shareholders occur only intermittently, the governance committee does not at present consider nominees recommended by shareholders.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit:
Exhibit 99.CODE ETH attached hereto.
(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Investment Company Act of 1940 (17 CFR 270.30a-2):
Exhibit 99.CERT attached hereto.
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by this report by or on behalf of the registrant to 10 or more persons:
Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Securities Exchange Act of 1934, provide the certifications required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14 under the Securities Exchange Act of 1934 (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the registrant specifically incorporates it by reference:
Exhibit 99.906 CERT attached hereto
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.
(Registrant) Securian Funds Trust
By (Signature and Title) | /s/ David M. Kuplic |
|
| David M. Kuplic, President |
|
Date: March 3, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ David M. Kuplic |
|
| David M. Kuplic, President (Principal Executive Officer) |
|
|
|
|
By (Signature and Title) | /s/ Gary M. Kleist |
|
| Gary M. Kleist, Treasurer (Principal Financial Officer) |
|
Date: March 3, 2014