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 |
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55101-2098 | ||||||
(Address of principal executive offices) |
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Eric J. Bentley, Esq. | ||||||||
(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, 2016 |
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ITEM 1. REPORT TO STOCKHOLDERS.
Filed herewith.
Securian Funds Trust
Annual Report
December 31, 2016
Offered in Minnesota Life Insurance Company and
Securian Life Insurance Company Variable Products
SFT Advantus Bond Fund
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
SFT Advantus Government Money Market Fund
(formerly SFT Advantus Money Market Fund)
SFT Advantus Index 400 Mid-Cap Fund
SFT Advantus Index 500 Fund
SFT Advantus International Bond Fund
SFT Advantus Managed Volatility Equity Fund
SFT Advantus Mortgage Securities Fund
SFT Advantus Real Estate Securities Fund
SFT IvySM Growth Fund
SFT IvySM Small Cap Growth Fund
SFT Pyramis® Core Equity Fund
SFT T. Rowe Price Value Fund
Financial security
for the long run ®
Securian Funds Trust
Supplement dated October 11, 2016 to the Prospectus of Securian Funds Trust dated April 29, 2016.
Effective October 1, 2016, Gilbert C. Scott no longer serves as a manager of the SFT IvySM Small Cap Growth Fund. At that time, Timothy J. Miller, Senior Vice President of WRIMCO, Kenneth G. McQuade, Senior Vice President of WRIMCO, and Bradley P. Halverson, Vice President of WRIMCO, became co-managers of the Fund.
The text on page 53, under the caption "SFT IvySM Small Cap Growth Fund: Management," is replaced by the following:
SFT IvySM Small Cap Growth Fund: Management
The Fund is advised by Advantus Capital Management, Inc. (Advantus Capital) and sub-advised by Waddell & Reed Investment Management Company (WRIMCO). 'Ivy' is the service mark of Ivy Distributors, Inc., an affiliate of WRIMCO. The following individuals serve as the Fund's primary portfolio managers:
Name and Title | Primary Manager Since | ||||||
Timothy J. Miller Senior Vice President, WRIMCO | October 1, 2016 | ||||||
Kenneth G. McQuade Senior Vice President, WRIMCO | October 1, 2016 | ||||||
Bradley P. Halverson Vice President, WRIMCO | October 1, 2016 |
The text relating to SFT IvySM Small Cap Growth Fund on page 115, 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 | ||||||||||||
SFT IvySM Small Cap Growth Fund | Timothy J. Miller Senior Vice President, WRIMCO | October 1, 2016 | Co-portfolio manager of the small cap growth product suite since October 2016, comprising institutional accounts, Ivy Small Cap Growth Fund, Waddell & Reed Advisors Small Cap Fund and Ivy VIP Small Cap Growth; Portfolio Manager, Waddell & Reed Advisors Small Cap Fund and Ivy Small Cap Growth Fund since April 2010. | ||||||||||||
Kenneth G. McQuade Senior Vice President, WRIMCO | October 1, 2016 | Co-portfolio manager of the small cap growth product suite since October 2016, comprising institutional accounts, Ivy Small Cap Growth Fund, Waddell & Reed Advisors Small Cap Fund and Ivy VIP Small Cap Growth; Portfolio Manager, Ivy VIP Small Cap Growth since March 2006. | |||||||||||||
Bradley P. Halverson Vice President, WRIMCO | October 1, 2016 | Co-portfolio manager of the small cap growth product suite since October 2016, comprising institutional accounts, Ivy Small Cap Growth Fund, Waddell & Reed Advisors Small Cap Fund and Ivy VIP Small Cap Growth; Assistant Portfolio Manager of small cap growth institutional accounts from 2014 to 2016; Equity Investment Analyst, Small Cap Growth team from 2008 to 2014. |
Please retain this supplement for future reference.
F88081 10-2016
Securian Funds Trust
Supplement dated February 8, 2017 to the Prospectus of Securian Funds Trust dated April 29, 2016.
On January 6, 2017, shareholders of the SFT IvySM Growth Fund, SFT IvySM Small Cap Growth Fund, SFT Pyramis® Core Equity Fund and SFT T. Rowe Price Value Fund voted to approve the use of a manager of managers strategy which permits these funds' investment adviser to enter into and/or materially amend investment advisory agreements with sub-advisers with the approval of the Securian Funds Trust Board of Trustees, but without obtaining shareholder approval.
The following paragraphs replace the third paragraph on page 110:
The Trust and Advantus Capital have obtained an exemptive order from the Securities and Exchange Commission allowing them, upon approval of Fund shareholders, to use a "manager of managers" strategy related to the management of the Trust. The shareholders of each Fund have approved the use of the exemptive order. Under the manager of managers strategy, Advantus Capital may select new Fund sub-advisers upon the approval of the Trust's Board of Trustees but without shareholder approval. Advantus Capital may also change the terms of any investment sub-advisory agreement or continue to employ an investment sub-adviser after termination of an investment sub-advisory agreement. Investors will be notified of any sub-adviser changes.
Advantus Capital is responsible for overseeing sub-advisers and for recommending their hiring, termination and replacement. Advantus Capital retains ultimate responsibility for the investment performance of each fund employing a sub-adviser. Investors in the Trust (purchasers of variable life insurance policies and variable annuity contracts issued by Minnesota Life, or other insurance companies to which the Trust has sold its shares) are, in effect, electing to have Advantus Capital either manage the investment of a Fund's assets or select one or more sub-advisers to achieve the Fund's investment objective.
Please retain this supplement for future reference.
F88797 02-2017
TABLE OF CONTENTS
Page No. | |||||||
Letter from the President | 1 | ||||||
Portfolio Manager Reviews | |||||||
SFT Advantus Bond Fund | 2 | ||||||
SFT Advantus Dynamic Managed Volatility Fund (formerly SFT Advantus Managed Volatility Fund) | 6 | ||||||
SFT Advantus Government Money Market Fund (formerly SFT Advantus Money Market Fund) | 10 | ||||||
SFT Advantus Index 400 Mid-Cap Fund | 12 | ||||||
SFT Advantus Index 500 Fund | 14 | ||||||
SFT Advantus International Bond Fund | 16 | ||||||
SFT Advantus Managed Volatility Equity Fund | 21 | ||||||
SFT Advantus Mortgage Securities Fund | 25 | ||||||
SFT Advantus Real Estate Securities Fund | 29 | ||||||
SFT IvySM Growth Fund | 32 | ||||||
SFT IvySM Small Cap Growth Fund | 35 | ||||||
SFT Pyramis® Core Equity Fund | 38 | ||||||
SFT T. Rowe Price Value Fund | 42 | ||||||
Report of Independent Registered Public Accounting Firm | 45 | ||||||
Investments In Securities | |||||||
SFT Advantus Bond Fund | 46 | ||||||
SFT Advantus Dynamic Managed Volatility Fund (formerly SFT Advantus Managed Volatility Fund) | 52 | ||||||
SFT Advantus Government Money Market Fund (formerly SFT Advantus Money Market Fund) | 57 | ||||||
SFT Advantus Index 400 Mid-Cap Fund | 58 | ||||||
SFT Advantus Index 500 Fund | 64 | ||||||
SFT Advantus International Bond Fund | 71 | ||||||
SFT Advantus Managed Volatility Equity Fund | 79 | ||||||
SFT Advantus Mortgage Securities Fund | 80 | ||||||
SFT Advantus Real Estate Securities Fund | 84 | ||||||
SFT IvySM Growth Fund | 85 | ||||||
SFT IvySM Small Cap Growth Fund | 87 | ||||||
SFT Pyramis® Core Equity Fund | 89 | ||||||
SFT T. Rowe Price Value Fund | 91 | ||||||
Financial Statements | |||||||
Statements of Assets and Liabilities | 94 | ||||||
Statements of Operations | 96 | ||||||
Statements of Changes in Net Assets | 98 | ||||||
Financial Highlights | 103 | ||||||
Notes to Financial Statements | 116 | ||||||
Fund Expense Examples | 134 | ||||||
Proxy Voting and Quarterly Holdings Information | 135 | ||||||
Trustees and Executive Officers | 137 |
Letter from the President
This past year has proven to be a remarkable time from an economic, market, and political perspective. While the early part of the year exhibited signs of continued moderate growth, low inflation, and modest market returns, the election of Donald Trump as President of the United States was a game changer.
Equity markets reacted positively to the election, based upon expectations that tax cuts, infrastructure spending, and deregulation would fuel stronger growth and higher corporate earnings. Bond markets meanwhile sold-off and interest rates rose, based upon concerns ranging from stronger growth leading to higher inflation, to tax cuts and infrastructure spending leading to deeper government deficits. Meanwhile the potential for new trade tariffs and the likely renegotiation of trade deals caused the dollar to strengthen relative to many other currencies.
While in the near-term these actions have been favorable for many investors, the long-term implications are still largely unknown. Indeed, most of the broader policy directives are still under development, and many will take congressional action to be fully implemented. As this occurs, markets could become less stable as the differences between political aspirations and economic realities get resolved.
We remain optimistic but cautious as we survey the year ahead. We believe that many sectors of the market will continue to show strong performance. We concede that it will take time for the impact of the many policy changes to play out, and that there will be volatility along the way. We believe the best tactic is to position for the long run, and avoid the angst that chasing near term performance can provide.
Sincerely,
David Kuplic
President, Securian Funds Trust
1
Performance Update
Christopher Sebald, CFA, David Land, CFA and Thomas Houghton, CFA Portfolio Managers
The SFT 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 SFT 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 SFT Advantus Bond Fund may fluctuate in response to changes in interest rates and is not guaranteed.
SFT Advantus Bond Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a net return of 4.37 percent over the 12 months ending December 31, 2016, outperforming the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 2.65 percent over the same period.
What influenced the Fund's return during the past 12 months?
Markets shook off the surprising results of the presidential election and finished the year with strong momentum. 2016 turned out to be a surprisingly good year for bonds and stocks. Despite rising interest rates, corporate and other nongovernment bonds performed very well with solid single digit returns for investment grade and double digit returns for high yield. All major U.S. stock indexes reached all-time highs in the fourth quarter.
Long-term interest rates rose by 85 basis points, which was the biggest rise since 2013. The change was fairly abrupt, leading to a steeper yield curve. Risk appetite remained strong though, and corporate credit was in demand. The yield differential between U.S. and foreign bonds should keep international demand for U.S. securities high as the European Central Bank (ECB) and Bank of Japan continue to hold their short-term rates at or below zero percent.
What other market conditions or events influenced the Fund's return during the past 12 months?
The election of Donald Trump as president of the U.S. was by far the biggest political and economic event of the year. His campaign platform was based on pro-growth, lower taxes, tougher trade and immigration policies, and a more combative national security platform. We might expect to see the impact of regulatory changes first with cabinet and agency appointments who are likely to take a different approach to enforcing current laws and regulations. Tax cuts are likely next with a Republican majority in Congress. Infrastructure investments will likely take longer to emerge.
Apart from the renewed optimism surrounding Trump, economic data had already been improving after what was a very weak first half in 2016. Both consumer and business optimism is high. Third quarter GDP growth came in at 3.5 percent, and expectations for fourth quarter are between 2.5 — 2.9 percent. The Federal Reserve (Fed) raised rates in December, the only time in 2016 despite projecting four increases at the beginning of the year. The Fed is now projecting three rate increases in 2017. Signs of inflation, although still weak by historical standards, are building and could reach the Fed's target of 2 percent in 2017. With unemployment already below 5 percent and likely headed lower on stronger growth expectations, wage pressures should build.
What strategies and techniques did you employ that specifically affected Fund performance?
We maintained an overweight exposure to corporate bonds and the securitized sector throughout the year. We felt corporate spreads looked attractive to start the year, but expected a more volatile year in credit given our economic and Fed outlook. As volatility picked up and spreads widened early on, we resisted the urge to add to our risk exposures. Once energy prices firmed and the ECB began to include corporate bond purchases in its quantitative easing program, we aggressively started to add to the portfolio's risk exposures. We finished the year with about 30 percent more corporate exposure than the start of 2016.
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Throughout the year, we kept our interest rate position roughly neutral-to-short relative to the Fund's index.
What industries or sectors did you emphasize during the past 12 months and what is your outlook going forward?
We increased exposure to sectors we continue to view favorably in the corporate bond sector, primarily in industrials and financials. In industrials, we particularly emphasized the energy sector in the pipeline and refining space. We also focused on consumer facing sectors such as autos and airlines.
In financials, we emphasized the banking sector. If interest rates continue to rise and some regulatory oversight is loosened, profitability should rise in the sector.
We reduced exposure to utilities towards the end of the year. The utility sector performed well in 2016, and we no longer think spreads offer attractive relative value. We also reduced exposure to the securitized sector, based mostly on relative value concerns.
Growth prospects look more favorable in 2017 with GDP growth projections over 2 percent. Corporate America is optimistic for regulatory reforms and tax cuts, giving corporate investors incentive to invest in their businesses. The outlook fuels a positive cycle where corporate optimism leads to business investment, increased employment, a stronger consumer and rising markets.
In the coming year, long-term interest rates are likely to rise and may break out of the 1-2 percent range the 10-year Treasury has been in since 2012. We believe rates will not return to levels of yesteryear due to structural changes in the economy (demographics, debt, technological change).
We expect inflation to start pushing towards 2 percent. Wage pressure is slowly building with average hourly earnings rising from about 1.8 percent to 2.5 percent in the last 6 years and the passage of higher minimum wage laws in several major cities and states. The protectionist rhetoric of the President-elect could influence import costs through tariffs, domestic industry protections and the immigrant labor supply—all leading to positive pressure on inflation.
Corporate bond spreads should narrow, supported by stronger earnings and continued demand from investors, domestic and foreign. Despite rising interest rates, mutual fund flows into bond funds have not reversed and pension immunization programs are increasing the demand for long duration corporate bonds.
Once the new administration takes office, change will need to be quick and substantive in order to not disappoint markets, however risks remain. Traditional Republicans could push back on stimulus, and Trump's unconventional approach may provoke party infighting. Campaign proposals on spending between Trump and Republicans were trillions of dollars apart, and new deficit spending may be difficult to pass. A tough stance against trading partners could not only upset long-standing trade patterns but also exacerbate the U.S. dollar's rise and hurt export firms. Politics will be in the forefront of investors mind in 2017 as results of new administration policies unfold.
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Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
U.S. Treasury Note 1.750%, 11/30/21 | $ | 18,213,091 | 5.1 | % | |||||||
U.S. Treasury Note 1.625%, 10/31/23 | 6,845,128 | 1.9 | % | ||||||||
U.S. Treasury Bond 5.375%, 02/15/31 | 6,812,541 | 1.9 | % | ||||||||
U.S. Treasury Bond 2.250%, 08/15/46 | 4,939,817 | 1.4 | % | ||||||||
Federal National Mortgage Association 3.000%, 01/01/32 | 4,494,633 | 1.3 | % | ||||||||
BNSF Funding Trust I 6.613%, 12/15/55 | 4,333,825 | 1.2 | % | ||||||||
Select Income REIT 2.850%, 02/01/18 | 4,097,434 | 1.1 | % | ||||||||
Ascentium Equipment Receivables Trust Series 2016-2A, Class A1 1.100%, 11/10/17 | 3,859,015 | 1.1 | % | ||||||||
Morgan Stanley 2.282%, 10/24/23 | 3,624,833 | 1.0 | % | ||||||||
Federal National Mortgage Association 4.000%, 04/01/44 | 3,442,269 | 0.9 | % | ||||||||
$ | 60,662,586 | 16.9 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of investments)
(Unaudited)
4
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Bond Fund,
Bloomberg Barclay's U.S. Aggregate Bond Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus Bond Fund's Class 2 shares total return compared to the Bloomberg 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, 2006 through December 31, 2016, 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 Bloomberg 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
David M. Kuplic, CFA and Craig M. Stapleton, CFA, FRM Portfolio Managers
The SFT Advantus Dynamic Managed Volatility Fund seeks to maximize risk-adjusted total return relative to its blended benchmark index comprised of 60 percent S&P 500 Index and 40 percent Bloomberg Barclays U.S. Aggregate Bond Index (collectively, the Blended Benchmark Index).
The SFT Advantus Dynamic Managed Volatility Fund invests primarily in Class 1 shares of SFT Advantus Index 500 Fund, an affiliated fund of the Securian Funds Trust, 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.
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 8.77 percent over the 12 months ending December 31, 2016. The blended benchmark index, which is comprised of the S&P 500® Index, weighted 60 percent, and the Bloomberg Barclays U.S. Aggregate Index, weighted 40 percent, returned 8.31 percent with a volatility of 7.53 percent over the same period.
What influenced the Fund's return during the past 12 months?
The S&P 500® started the year with above average volatility but remained relatively calm during the rest of the year. The S&P 500® closed down nearly 11 percent on February 11th, but the Fund had reduced its equity weight to 35 percent and mitigated its loss to less than 4 percent. We believe that the reduction of the equity allocation would have provided considerable protection had the market entered a bear correction.
Despite the risk reduction during the first quarter, the Fund averaged an equity allocation of over 65 percent. The higher equity allocation allowed the Fund to capture the strong returns that followed the first quarter decline. The strong returns were accompanied by lower volatility than the benchmark due to the dynamic risk management strategy.
What other market conditions or events influenced the Fund's return during the past 12 months?
On June 23rd the citizens of the United Kingdom voted to withdraw from the European Union in what is widely known as "Brexit". On the following day the S&P 500 quickly sold off by 3.59 percent as investors digested the repercussions of the Brexit outcome on the global economy. The market continued its slide on the following Monday, but quickly bounced back and was nearly unchanged within a week of trading. The large increase in market volatility caused the Fund to reduce its equity allocation which had a negative impact on the Fund's performance because of the quick reversal in the S&P 500.
What strategies and techniques did you employ that specifically affected Fund performance?
The Fund purchased long positions in call options on the Chicago Board Options Exchange (CBOE) Volatility Index (VIX) futures as an additional hedge for managing the risk of the Fund. We believe that options on VIX futures provide a great tool for managing risk when priced attractively versus historical VIX valuations. This method reduced volatility of the Fund's returns while helping to protect the Fund against quick market sell-offs.
The Fund also held an underweight to fixed income investments during the 3rd and 4th quarter because yields were unattractively low during that period. Following Trump's election and the dramatic increase in interest rates, the Fund started to increase its fixed income allocation.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
The election of Donald Trump as U.S. president, combined with Republicans winning both houses of Congress, opens the door to a sea change in policy that is expected to shift the investment landscape. Trump's focus on deregulation is expected to significantly benefit financial, energy, and industrial companies. Protectionist policy is expected to
6
boost domestic small cap companies. Tax reform should benefit corporate earnings across the board. Infrastructure spending should improve unemployment, labor force participation, have knock-on effects across the economy and possibly increase inflationary pressures.
In the short term, we expect modest gains in domestic equity spurred both by investor complacency and by continued suggestions of economic improvement—reasonable inflation, GDP growth, and corporate earnings gains. In the longer term, we are cautious. Given the already massive Federal debt overhang, it is difficult to see how long one can execute policies of decreasing taxes while simultaneously increasing infrastructure spending. Corporate America is saddled with a similar debt burden after years of issuance to take advantage of artificially low interest rates, and it is unclear whether there will be enough earnings growth and inflation to make this debt load manageable as interest rates rise.
We anticipate equity volatility to increase in 2017. First, the expected economic benefits of Trump's proposed policies are just that: expected. We do not know how well the White House will collaborate with Congress. Second, fundamental equity valuations were already elevated going into the election. The 5 percent Trump rally from election day to year-end seems to have largely priced in these expected policy benefits, and we anticipate any changes in policy direction, or outright implementation failures, to be accompanied by rapid equity price adjustments.
In a tactical sense, we will continue to use our volatility metrics to inform the equity allocations of the Funds. We will aim to de-risk when volatility is escalating, and aim to re-risk when volatility is relaxing.
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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.
Advantus Capital Management Inc. (Advantus Capital) and the Securian Funds Trust, on behalf of the SFT Advantus Dynamic 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 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, 2018. 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
Ten Largest Holdings^
Security description | Market value | % of long-term investments | |||||||||
SPDR S&P 500 ETF Trust | $ | 8,085,080 | 3.4 | % | |||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 5,214,510 | 2.2 | % | ||||||||
Vanguard S&P 500 ETF | 4,142,129 | 1.7 | % | ||||||||
Ford Motor Co. 5.291%, 12/08/46 | 1,519,485 | 0.7 | % | ||||||||
Avnet, Inc. 3.750%, 12/01/21 | 1,509,269 | 0.6 | % | ||||||||
Comcast Corp. 6.400%, 05/15/38 | 1,280,500 | 0.5 | % | ||||||||
Mead Johnson Nutrition Co. 5.900%, 11/01/39 | 1,130,097 | 0.5 | % | ||||||||
Flex. Ltd. 4.750%, 06/15/25 | 1,058,021 | 0.4 | % | ||||||||
QUALCOMM, Inc. 4.650%, 05/20/35 | 1,057,121 | 0.4 | % | ||||||||
Columbia Pipeline Group, Inc. 4.500%, 06/01/25 | 1,050,570 | 0.4 | % | ||||||||
$ | 26,046,782 | 10.8 | % |
^Does not include short-term investments or investments in Class 1 shares of the SFT Advantus Index 500 Fund, an affiliated Fund in the Securian Funds Trust, which provides the SFT Advantus Dynamic Managed Volatility Fund with its primary equity exposure.
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of investments)
(Unaudited)
8
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Dynamic Managed Volatility Fund,
the Blended S&P 500® Index and Bloomberg Barclays U.S. Aggregate Bond Index
Benchmarks, and Consumer Price Index
On the chart above you can see how the SFT Advantus Dynamic 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 Bloomberg Barclays U.S. Aggregate Bond 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, 2016, assuming reinvestment of distributions, if any.
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, 2016, Advantus Capital has waived $1,304,242 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 Bloomberg Barclays U.S. Aggregate Bond 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 Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged benchmark composite representing the 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.
9
Performance Update
Thomas Houghton, CFA and Lena Harhaj, CFA Portfolio Managers
The SFT Advantus Government Money Market Fund seeks maximum current income to the extent consistent with liquidity and the preservation of capital.
It invests at least 99.5 percent of its total assets in cash, government securities, and /or repurchase agreements that are collateralized fully.
Investment in the SFT Advantus Government 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.
SFT Advantus Government Money Market Fund
(formerly SFT Advantus Money Market Fund)
How did the Fund perform during the period?
The Fund returned 0.00 percent over the twelve months ending December 31, 2016, while the three-month U.S. Treasury bill returned 0.35 percent for the same period.
What influenced the Fund's return during the past 12 months?
The return on the Fund for the year was 0.37 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 past 12 months?
After the December 2015 rate hike, the Federal Reserve (Fed) signaled that four hikes were on the horizon for 2016. However, with stocks falling early in the year amid signs that global and financial conditions were posing risk to economic growth, expectations quickly dropped from four to only two hikes for the year. In June, the United Kingdom made the decision to leave the European Union and the expectation of any rate hike during 2016 dropped to near zero. By fall, despite a more promising economic outlook, it became apparent that no rate hikes would occur until after the next U.S. President was elected in November.
The rate hike in December came as no surprise and was already priced in by the market. LIBOR rates had been climbing since June and were well ahead of the December rate hike. The 3-month London Interbank Offered Rate (LIBOR) rate at the end of June was at 0.654 percent, only 4 basis points from where it started the year. By the end of October, 3-month LIBOR stood at 0.884 percent. In comparison, yields on 90-day U.S. Treasury bills were fairly range bound for the majority of the year and stood at 0.299 percent at the end of October. Only seven days later, the day after the presidential election, yields on the 90-day U.S. Treasuries had already climbed to 0.426 percent and ended the year at 0.497 percent. Meanwhile, LIBOR rates continued the climb and the 3-month rate ended the year at 0.998 percent. The increase in LIBOR rates was driven not only by rate hike expectations, but also by the money market reform rules that went into effect October 14, 2016; these rules had the effect of decreased demand for commercial paper.
What strategies and techniques did you employ that affected Fund performance?
The portfolio's performance this year was driven by the declining excess spread of Agency discount notes over Treasury Bills and by the portfolio's use of Treasury floating rate notes, whose yields rose along with LIBOR.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
The portfolio's transition to a U.S. Government Only Fund was completed on April 30, 2016. Investments primarily consist of short-term discount notes issued by Federal Home Loan Bank, Fannie Mae and Freddie Mac as well as Treasury bills and Treasury floating rate notes.
Growth prospects look more favorable in 2017 with GDP growth projections over 2 percent. Corporate America is optimistic for regulatory reforms and tax cuts, giving
10
corporate investors incentive to invest in their businesses. The outlook fuels a positive cycle where corporate optimism leads to business investment, increased employment, a stronger consumer and rising markets.
Trump has said little about home building, however the U.S. has been underinvesting in single-family housing in the post crisis era. In the event a Trump Administration does promote housing, it could lead to even higher GDP growth, near 3 percent, as the housing multiplier effects are widespread.
Signs of inflation, although still weak by historical standards, are building and could reach the Fed's target of 2 percent in 2017. With unemployment already below 5 percent and likely headed lower on stronger growth expectations, wage pressures should build. The protectionist rhetoric of the President could influence import costs through tariffs, domestic industry protections and the immigrant labor supply—all leading to positive pressure on inflation.
The Fed is now projecting three rate increases in 2017, while the market is currently pricing in only two rate hikes for the year. With more favorable growth prospects and with wage and other inflationary pressures continuing to build, we feel the Fed will once again surprise the market, but this time raising rates more than expected. This will be a further positive development for money market rates.
*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 SFT Advantus Government 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 $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 SFT Advantus Government Money Market Fund), 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, 2016, Advantus Capital and Securian Financial have collectively waived $4,554,722 pursuant to the Agreement, including expenses waived under the prior agreement with Advantus Series Fund, Inc., of which $1,739,443 was eligible for recovery 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 is effective through April 30, 2018, and shall continue in effect thereafter, provided such continuance is specifically approved by Advantus Capital, Securian Financial, and a majority of the Trust's independent Trustees.
11
Performance Update
James Seifert Portfolio Manager
The SFT 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 overall investment strategy. The risks incurred by investing in the SFT 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.
SFT Advantus Index 400 Mid-Cap Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 20.04 percent over the 12 months ending December 31, 2016, while the S&P MidCap 400® Index returned 20.74 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Securian Funds Trust Advantus Index 400 Mid-Cap Fund is passively managed. The Fund is fully invested and holds all 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. The energy sector led all sectors with a 12-month return of 28.54 percent. Utility names followed close behind with an annual return of 27.8 percent. In terms of size, decile 1, (decile segments consist of 40 names) representing 21.75 percent of the weight in the index, ended the period with a return of 14.35 percent. Decile ten, representing the 40 smallest market cap names in the index with a 3.5 percent weight, ended the year with the top annual decile return of 57.82 percent.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Most major U.S. stock indexes, including the S&P 400® Index, reached all-time highs in 2016. Earnings multiples expanded the fourth quarter and price/earnings ratios exceed historical averages.
Cyclical, financial and energy names ended the year very strong. The out of favor sectors in 2015 and early 2016 turned into favored sectors, led by expectations for an improving economy and rising oil prices.
What will affect the Fund going forward?
Growth prospects look favorable in 2017 with GDP growth projections over 2 percent. Corporate America is optimistic for regulatory reforms and tax cuts, giving corporate investors incentive to invest in their business. The outlook fuels a positive cycle where corporate optimism leads to business investment, increased employment and stronger consumer and, ultimately, rising markets.
12
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
IDEXX Laboratories, Inc. | 11,143 | $ | 1,306,740 | 0.6 | % | ||||||||||
WhiteWave Foods Co.—Class A | 22,026 | 1,224,646 | 0.6 | % | |||||||||||
Alleghany Corp. | 1,969 | 1,197,388 | 0.6 | % | |||||||||||
Duke Realty Corp. | 44,083 | 1,170,844 | 0.6 | % | |||||||||||
Ingredion, Inc. | 8,998 | 1,124,390 | 0.6 | % | |||||||||||
SVB Financial Group | 6,474 | 1,111,327 | 0.6 | % | |||||||||||
Everest Re Group, Ltd. | 5,127 | 1,109,483 | 0.6 | % | |||||||||||
CDK Global, Inc. | 18,580 | 1,109,040 | 0.5 | % | |||||||||||
Synopsys, Inc. | 18,809 | 1,107,098 | 0.5 | % | |||||||||||
Alexandria Real Estate Equities, Inc. | 9,870 | 1,096,853 | 0.5 | % | |||||||||||
$ | 11,557,809 | 5.7 | % |
^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 SFT Advantus Index 400 Mid-Cap Fund,
S&P MidCap 400® Index, and Consumer Price Index
On the chart above you can see how the SFT 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, 2006 through December 31, 2016, 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 S&P Global, Inc. and have been licensed for use by the Securian Funds Trust—SFT 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 $3.8 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.
13
Performance Update
James Seifert Portfolio Manager
The SFT 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 SFT 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.
SFT Advantus Index 500 Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 11.44 percent over the 12 months ending December 31, 2016, while the S&P 500® Index returned 11.96 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Securian Funds Trust Advantus Index 500 Fund is passively managed. The Fund is fully invested and holds all 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 energy sector led all sectors with a 12-month return of 26.84 percent. Transportation names followed with an annual return of 24.11 percent. In terms of size, decile 1, (decile segments consist of 50 names) consisting of the mega-cap names and representing 48.5 percent of the weight in the index, ended the period with a return of 10.1 percent. Decile ten, representing the 50 smallest market cap names in the index with a 1.24 percent weight, ended the year with the top annual decile return of 25.75 percent gain.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Most major U.S. stock indexes, including the S&P 500® Index, reached all-time highs in 2016. Earnings multiples expanded the fourth quarter and price/earnings ratios exceed historical averages.
Cyclical, financial and energy names ended the year very strong. The out of favor sectors in 2015 and early 2016 turned into favored sectors, led by expectations for an improving economy and rising oil prices.
What will affect the Fund going forward?
Growth prospects look favorable in 2017 with GDP growth projections over 2 percent. Corporate America is optimistic for regulatory reforms and tax cuts, giving corporate investors incentive to invest in their business. The outlook fuels a positive cycle where corporate optimism leads to business investment, increased employment and stronger consumer and, ultimately, rising markets.
14
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Apple, Inc. | 201,805 | $ | 23,373,055 | 3.2 | % | ||||||||||
Microsoft Corp. | 294,263 | 18,285,503 | 2.5 | % | |||||||||||
Exxon Mobil Corp. | 156,935 | 14,164,953 | 1.9 | % | |||||||||||
Johnson & Johnson | 102,961 | 11,862,137 | 1.6 | % | |||||||||||
Berkshire Hathaway, Inc.—Class B | 71,909 | 11,719,729 | 1.6 | % | |||||||||||
JPMorgan Chase & Co. | 135,422 | 11,685,564 | 1.6 | % | |||||||||||
Amazon.com, Inc. | 14,982 | 11,234,552 | 1.5 | % | |||||||||||
General Electric Co. | 334,797 | 10,579,585 | 1.5 | % | |||||||||||
Facebook, Inc.—Class A | 88,590 | 10,192,280 | 1.4 | % | |||||||||||
AT&T, Inc. | 232,410 | 9,884,397 | 1.4 | % | |||||||||||
$ | 132,981,755 | 18.2 | % |
^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 SFT Advantus Index 500 Fund,
S&P 500® Index, and Consumer Price Index
On the chart above you can see how the SFT 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, 2006 through December 31, 2016, assuming reinvestment of distributions, if any.
"Standard & Poor's®", "S&P®", "Standard & Poor's 500" and "S&P 500" are trademarks of the S&P Global, Inc. and have been licensed for use by Securian Funds Trust—SFT 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.
15
Performance Update
Michael Hasenstab, Ph.D. and Christine Zhu Portfolio Managers Franklin Advisers, Inc.
The SFT 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. provides investment advice to the SFT 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.
SFT Advantus International Bond Fund
How did the Fund perform during the last 12 months?
The Fund's Class 2 shares generated a total net return of 3.09 percent for the 12 months ending December 31, 2016, while the Citigroup World Government Bond Index returned 1.60 percent over the same period.
Why did the Fund outperform/underperform? What helped the Fund outperform its benchmark index?
The Fund outperformed its benchmark index in 2016 primarily due to currency positions. Interest-rate strategies detracted from relative results, while sovereign credit exposures had a largely neutral effect. Among currencies, the Fund's underweighted position in the euro contributed to relative performance, as did its lack of exposure to the British pound. Overweighted currency positions in Latin America also contributed to relative return (the Brazilian real contributed, while the Mexican peso detracted). However, the Fund's underweighted position in the Japanese yen detracted, and overweighted currency positions in Asia ex Japan had a largely neutral effect (the South Korean won detracted, while the Indonesian rupiah contributed). The Fund maintained a defensive approach regarding interest rates in developed and emerging markets. Select underweighted duration exposures in Europe detracted from relative return, as did underweighted duration exposure in Japan. However, select overweighted duration exposures in Latin America (Brazil) contributed to relative performance.
What other market conditions or events influenced the Fund's return during the last 12 months?
The calendar year of 2016 started off with a sharp escalation in global risk aversion as oil prices dropped below $30 per barrel, and markets appeared to price in worst case scenarios on fears of a collapse of growth in China and a global recession. However, we believed that the fears were unwarranted; markets appeared to overestimate the extent to which lower headline inflation reflected structurally weaker global demand, in our opinion, when supply factors were the main driver behind falling energy and commodity prices, not a collapse in demand. We expected the effects to be short term and the disinflationary impact to wane as commodity prices stabilized. However, the belief that inflation had become structurally lower appeared to lead some investors to take a complacent view on interest rates, despite the vulnerable phase of the yield cycle. Underlying inflation in the U.S. was not adequately priced into bond yields during the period, in our view, and we were wary of the lack of inflation being priced into bond yields across the globe. We believed there were more risks of inflation moving up than down, yet markets appeared to price in deflation and downside risks.
Additionally, markets appeared to regard emerging economies as being in near-crisis condition, reacting as if conditions were worse than the 2008 global financial crisis or the Asian financial crisis of 1997 and 1998. However, several emerging-market economies were in far better shape, by our assessment, with larger foreign reserves and more diversified, growing economies. We were focused on a number of opportunities in emerging-market currencies based on our conviction that the broad fears of a systemic crisis across the asset class were exaggerated. Over the final weeks of February, risk appetites returned and several local-currency markets rallied, creating a positive trend for global markets that largely carried into March and April.
In March, the U.S. Federal Reserve (Fed) passed on raising the federal funds target rate and indicated that rate hikes would likely be more gradual than previously envisioned at the end of 2015, reducing the number of projected rate hikes for 2016 from four to two. The effect was an implicit easing of policy as yield expectations had already been priced
16
in by the market, resulting in a subsequent decline in U.S. Treasury yields and weakening of the U.S. dollar. The adjustment in forward guidance was followed during the period by unchanged rates at each of the Fed's meetings in April, June, July, September and November.
On June 23, the UK electorate voted to leave the European Union in the Brexit referendum, leading to a sharp escalation in risk aversion across global bond markets. Consequently, U.S. Treasury yields declined further, with the yield on the 10-year U.S. Treasury note reaching a low of 1.37 percent in early July on a global flight to perceived quality. However, markets subsequently recovered in mid-July, with notable rallies in a number of emerging-market currencies and local-currency bonds. The yield on the 10-year U.S. Treasury bond returned to a range around 1.55 percent in the second half of July. In the summer months of July and August, a number of emerging-market currencies resumed rallies that had begun in the spring months but were temporarily sidetracked by market volatility after the Brexit referendum result. By October, U.S. dollar strength returned as U.S. Treasury yields rose sharply due to growing expectations for a December rate hike. By November, a sharp correction in U.S. Treasury valuations was fully underway, manifesting very quickly after the results of the U.S. election as markets appeared to rapidly move toward our long-held view that inflation pressures were rising. Once those corrections to yields began, they were quite severe in a very short period of time, demonstrating just how extreme those valuations had become. Growing rate differentials between the rising yields in the U.S. and the low to negative yields in the eurozone and Japan drove significant depreciations of the euro and yen against the U.S. dollar. Overall, for the full year, a number of emerging-market currencies appreciated against the U.S. dollar, notably the Brazilian real, Colombian peso and Indonesian rupiah, while others depreciated against the U.S. dollar, such as the Mexican peso, Malaysian ringgit and South Korean won. The Fed raised rates 25 basis points at its December meeting and indicated that it expected three rate hikes in 2017.
What strategies and techniques did you employ that affected the Fund's performance?
The core of our strategy remained positioning ourselves to navigate a rising-rate environment. Thus we continued to maintain low portfolio duration while aiming at a negative correlation with U.S. Treasury rates. We were positioned with negative duration exposure to U.S. Treasuries, and we held select local currencies and local-bond positions in specific emerging markets. We actively sought opportunities that could potentially offer positive real yields without taking undue interest-rate risk. We favored countries that we believe have solid underlying fundamentals and policymakers who have stayed ahead of the curve regarding fiscal, monetary and financial policy. Additionally, we continued to selectively invest in credit opportunities, with a particular focus on credit exposures in economies with strong growth indicators. During the period, we used currency forward contracts to actively manage currencies. We also used interest-rate swaps to tactically manage duration exposures.
What sectors did you emphasize during the fiscal year, and what is your outlook for the next 12 months?
We expect inflation to continue to rise in 2017 as the base effects from the previous year's decline in oil prices fall out of the headline figure, and exceptional strength in the U.S. labor market and resilient economic growth continue over a backdrop of loose monetary policy and expanded fiscal spending. We expect Treasury yields to continue to rise with increasing wage pressures. The Fed needs to continue to raise rates, in our opinion, but markets could continue to drive yields higher regardless of the Fed's timeline.
17
Widening rate differentials between U.S. Treasury yields and the low to negative yields in the eurozone and Japan have driven depreciations of the euro and yen against the dollar in recent months. We expect continued euro and yen depreciation as U.S. rates increasingly diverge from the low rates in the eurozone and Japan. We continue to expect the European Central Bank and Bank of Japan to pursue accommodative policies through much of 2017 to boost growth and drive inflation.
A number of specific emerging markets in Asia and Latin America have seen excessive devaluations from trade-impact fears after the U.S. election, but the pricing does not accurately reflect the actual implications for their underlying economies, in our opinion. Several emerging markets have already weathered severe shocks over the last year and are far more resilient to potential increases in trade costs at the margin than markets have been indicating, in our assessment. We expect a strengthening U.S. economy along with rising U.S. Treasury yields to increasingly magnify the fundamental differences between healthy and vulnerable economies, leading to respective appreciations and depreciations against the U.S. dollar. Countries that are economically expanding and that have healthier balances should be in a stronger position to maintain rates in conjunction with increasing yields in the U.S.
The recent rise of populism in Europe and the U.S. has the potential to impact global trade and global growth while increasing the political risks to the European Union and the eurozone project. However, there are several scenarios in which the actual impacts to specific emerging-market economies from trade policy adjustments could be minimal to negligible, in our assessment. During periods of short-term uncertainty, markets tend to overplay the potential U.S. policy factors and under-recognize the more important domestic factors within the countries. We continue to see strong growth indicators in the U.S. and across a number of specific emerging markets. Looking ahead, we continue to expect depreciation of the euro and yen, rising U.S. Treasury yields, and currency appreciation in select emerging markets.
18
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
Mexican Bonos 5.000%, 12/11/19 | $ | 4,420,475 | 4.2 | % | |||||||
Korea Treasury Bond 1.500%, 06/10/19 | 4,282,855 | 4.1 | % | ||||||||
Mexican Bonos 5.000%, 06/15/17 | 3,385,290 | 3.2 | % | ||||||||
Brazil Letras do Tesouro Nacional 19.097%, 07/01/19 | 2,978,233 | 2.8 | % | ||||||||
Mexican Bonos 4.750%, 06/14/18 | 2,145,104 | 2.1 | % | ||||||||
Argentine Bonos del Tesoro 15.500%, 10/17/26 | 2,077,381 | 2.0 | % | ||||||||
Brazil Letras do Tesouro Nacional 18.576%, 01/01/19 | 2,040,622 | 2.0 | % | ||||||||
Indonesia Treasury Bond 8.375%, 09/15/26 | 1,950,709 | 1.9 | % | ||||||||
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/25 | 1,919,205 | 1.8 | % | ||||||||
Brazil Notas do Tesouro Nacional Serie B 6.000%, 05/15/45 | 1,875,710 | 1.8 | % | ||||||||
$ | 27,075,584 | 25.9 | % |
^Excludes short-term investments.
Country Diversification (shown as a percentage of net assets)
Currency Diversification (shown as a percentage of net assets)
African | 0.43 | % | |||||
South African Rand (ZAR) | 0.43 | % | |||||
Americas | 140.84 | % | |||||
United States Dollar (USD) | 98.71 | % | |||||
Mexican Peso (MXN) | 20.70 | % | |||||
Brazilian Real (BRL) | 12.71 | % | |||||
Chilean Peso (CLP) | 4.70 | % | |||||
Argentina Peso (ARS) | 4.02 | % | |||||
Asia Pacific* | -5.60 | % | |||||
Malaysian Ringgit (MYR) | 11.26 | % | |||||
Indonesian Rupiah (IDR) | 10.31 | % | |||||
Indian Rupee (INR) | 5.37 | % | |||||
Philippine Peso (PHP) | 3.53 | % | |||||
Sri Lankan Rupee (LKR) | 0.40 | % | |||||
Republic of Korea Won (KRW)* | -0.16 | % | |||||
Australian Dollar (AUD)* | -8.50 | % | |||||
Japanese Yen (JPY)* | -27.81 | % | |||||
Europe* | -35.67 | % | |||||
Polish Zloty (PLN) | 0.04 | % | |||||
Euro (EUR)* | -35.71 | % |
*A negative figure reflects net "short" exposure, designed to benefit if the value of the associated currency decreases. Conversely, the Fund's value would potentially decline if the value of the associated currency increases.
19
*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 over twenty 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.
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus International Bond Fund,
Citigroup World Government Bond Index, and Consumer Price Index
On the chart above you can see how the SFT 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, 2006 through December 31, 2016, assuming reinvestment of distributions, if any.
20
Performance Update
David M. Kuplic, CFA and Craig M. Stapleton, CFA, FRM Portfolio Managers
The SFT Advantus Managed Volatility Equity Fund seeks to maximize risk-adjusted total return relative to its blended benchmark index comprised of 60 percent S&P 500 Low Volatility Index, 20% S&P BMI International Developed Low Volatility Index and 20% Bloomberg Barclays U.S. 3 Month Treasury Bellwether Index (collectively, the Blended Benchmark Index).
The SFT Advantus Managed Volatility Equity Fund invests at least 80% of its assets in equity securities. Equity securities include those that are equity-based, such as ETFs that invest primarily in U.S. and foreign equity securities. 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.
SFT Advantus Managed Volatility Equity Fund
How did the Fund perform during the period?
The Fund generated a total net return of 4.16 percent, with a volatility of 8.17 percent, for the year ending December 31, 2016. The blended benchmark index, which is comprised of the S&P 500® Low Volatility Index, weighted 60 percent, the S&P 500 BMI International Developed Low Volatility Index, weighted 20 percent, and the Bloomberg Barclays U.S. 3-Month Treasury Bellwether Index, weighted 20 percent, returned 7.15 percent, with a volatility of 8.21 percent, over the same period.
What influenced the Fund's return during the past 12 months?
The Fund's performance relative to the benchmark during the year was driven by its international exposure, as well as its volatility management overlay. Through 2016, the benchmark's international component returned 4.0 percent; the Fund's international components underperformed this by 0.70 percent; iShares Edge MSCI Min Vol Emerging Markets ETF, 5.99 percent; iShares Edge MSCI Min Vol EAFE ETF, and 0.41 percent; iShares MSCI Germany ETF. The volatility management overlay, which performed very well in the equity selloff during early 2016, did not fully participate in the ensuing rebound after February 11th. A similar story played out after BREXIT in late June. Through the year, the overlay returned approximately -1.00 percent.
What other market conditions or events influenced the Fund's performance during the past 12 months?
The S&P 500® outperformed low volatility equities in 2016. For example, the full S&P 500® returned 11.96 percent over the year; its low-volatility sub-index, which is a component of the Fund's benchmark, returned 10.37 percent during the same time-period.
Relative to its benchmark, the Fund provides more diversified domestic equity sector exposure, which is dictated by the security selection of the minimum volatility ETFs the Fund employs as its core holdings. For example, the S&P 500® Low Volatility Index has approximately 22 percent in Utilities, while the Fund has approximately 7 percent. The S&P 500 Utilities Index returned 16.29 percent for the year, making the Fund's Utilities underweight a performance drag. An offsetting sector exposure was IT: the S&P 500® Low Volatility Index has approximately 4 percent in this sector, while the Fund has approximately 15 percent. The S&P 500 IT Index returned 13.85 percent for 2016. All told, the Fund's diverse sector exposure was a small performance drag in 2016.
What strategies and techniques did you employ that affected Fund performance?
The Fund's investments in minimum volatility ETFs, its international exposure and the volatility management overlay each affected the Fund's performance.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
The election of Donald Trump as US president, combined with Republicans winning both houses of Congress, opens the door to a sea change in policy that is expected to shift the investment landscape. The effects of Trump's proposed policies have already been discussed extensively elsewhere. To summarize, deregulation is expected to significantly benefit financial, energy, and industrial companies. Protectionist policy is expected to boost domestic small cap companies. Tax reform should benefit corporate earnings across the board. Infrastructure spending should improve unemployment, labor force participation, and have knock-on effects across the economy.
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In the short term, we expect modest gains in domestic equity spurred both by investor complacency and by continued suggestions of economic improvement—reasonable inflation, GDP growth, and corporate earnings gains. In the longer term, we are cautious. Given the already massive Federal debt overhang, it is difficult to see how long one can execute policies of decreasing taxes while simultaneously increasing infrastructure spending. Corporate America is saddled with a similar debt burden after years of issuance to take advantage of artificially low interest rates, and it is unclear whether there will be enough earnings growth and inflation to make this debt load manageable as interest rates rise.
We anticipate equity volatility to increase in 2017. First, the expected economic benefits of Trump's proposed policies are just that: expected. We do not know how well the White House will collaborate with Congress. Second, fundamental equity valuations were already elevated going into the election. The 5 percent Trump rally from election-day to year-end seems to have largely priced in these expected policy benefits, and we anticipate any changes in policy direction, or outright implementation failures, to be accompanied by rapid equity price adjustments.
In a tactical sense, we will continue to use our volatility metrics to inform the equity allocations of the Funds. We will aim to de-risk when volatility is escalating, and aim to re-risk when volatility is relaxing.
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Ten Largest Holdings^
Security description | Shares | Market value | % of bond portfolio | ||||||||||||
iShares Core Edge MSCI Minimum Volatility ETF | 1,410,522 | $ | 63,783,805 | 35.6 | % | ||||||||||
iShares Core Edge MSCI Minimum Volatility ETF | 821,138 | 50,270,068 | 28.1 | % | |||||||||||
iShares Core High Dividend ETF | 435,277 | 35,801,533 | 20.0 | % | |||||||||||
iShares Core Edge MSCI Minimum Volatility Emerging Markets ETF | 249,395 | 12,197,910 | 6.8 | % | |||||||||||
iShares Short Maturity Bond ETF | 178,135 | 8,938,814 | 5.0 | % | |||||||||||
iShares MSCI Germany ETF | 303,822 | 8,045,207 | 4.5 | % | |||||||||||
$ | 179,037,337 | 100.0 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
*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.
Advantus Capital Management, Inc. (Advantus Capital) and the Securian Funds Trust, on behalf of the SFT Advantus Managed Volatility Equity Fund (the "Fund"), have entered into an Expense Limitation Agreement, dated November 18, 2015, 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 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, 2018. 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
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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, 2016, Advantus Capital has waived $361,307 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 Low Volatility Index, 20% S&P BMI International Developed Low Volatility Index and 20% Bloomberg Barclays U.S. 3 Month Treasury Bellwether Index.
The S&P 500 Low Volatility Index measures performance of the 100 least volatile stocks in the S&P 500. The S&P BMI International Developed Low Volatility Index measures the performance of the 200 least volatile stocks in the S&P Developed Market large/midcap universe. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights. The Bloomberg Barclays U.S. 3 Month Treasury Bellwethers Index tracks the market for the on-the-run 3 month Treasury bill issued by the U.S. government.
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Managed Volatility Equity Fund,
the Blended, S&P 500® Low Volatility, S&P BMI International Developed Low Volatility Index Index and Bloomberg Barclays U.S. 3 Month Treasury Bellwether Index
Benchmarks, and Consumer Price Index
On the chart above you can see how the SFT Advantus Managed Volatility Equity Fund's shares total return compared to its Blended Benchmark, comprised of 60 percent of the S&P 500 Low Volatility Index, 20% S&P BMI International Developed Low Volatility Index and 20% Bloomberg Barclays U.S. 3 Month Treasury Bellwether Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on November 18, 2015 through December 31, 2016, assuming reinvestment of distributions, if any.
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Performance Update
Christopher Sebald, CFA and David Land, CFA Portfolio Managers
The SFT Advantus Mortgage Securities Fund seeks a high level of current income consistent with prudent investment risk. The SFT 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 SFT Advantus Mortgage Securities Fund may fluctuate in response to changes in interest rates and is not guaranteed.
SFT Advantus Mortgage Securities Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a net return of 1.32 percent over the 12 months ending December 31, 2016, underperforming the Bloomberg Barclays U.S. MBS Index, which returned 1.67 percent over the same period.
What influenced the Fund's return during the past 12 months?
The primary driver of performance was the rise in interest rates across the yield curve, with short-term rates rising the most. For some time, the Federal Reserve (Fed) has wanted to restore short-term rates to a more normal level. The Fed raised its rate once, by 25 basis points, in December. Economic growth in the first half of the year was anemic and it was not clear the economy could withstand a rate hike. Yet, the labor market remained tight and employment growth was steady, if unremarkable.
Events in the second half of the year gave the Fed cover to increase rates. First, the economy started to gain momentum and gross domestic product (GDP) growth accelerated after a disappointing start to the year. Second, Donald Trump was elected president on a pro-growth platform that promised lower taxes, tougher trade agreements, and infrastructure spending. The markets began to price in higher growth and inflation, anticipating tax reform and infrastructure spending.
What other market conditions or events influenced the Fund's return during the past 12 months?
Homeowners had less economic incentive to refinance, pay-off, or curtail their mortgages last year given the higher rate environment. This weighed on investors' appetite for agency mortgage-backed securities. Investors' concerns shifted from faster prepayments to slower prepayments and longer average maturities for mortgage bonds. Consequently, we found limited value in certain mortgage pools where the borrowers had less of an incentive to refinance.
Housing fundamentals were solid. Home prices continued to rise and new and existing home sales remained strong, and many first-time homebuyers found it difficult to locate an affordable home.
Commercial real estate appreciated over the year and the fundamentals appear sound. We observed better loan underwriting, versus previous years, in numerous commercial mortgage-backed securities (CMBS) transactions. A new regulation that requires the issuer to retain a stake in transactions they sponsor was likely the catalyst for the improved quality.
What strategies and techniques did you employ that specifically affected Fund performance?
The Fund invests the majority of its assets in agency mortgage-backed securities and to a lesser extent in CMBS, asset-backed securities (ABS), and corporate obligations. The CMBS, ABS, and corporate obligations provide the portfolio with cash flow stability that is difficult to replicate with agency mortgage-backed securities. During the year we increased our allocation to CMBS based on the improvements in underwriting quality and attractive yields they offered versus agency mortgages.
What industries or sectors did you emphasize during the past 12 months and what is your outlook going forward?
The portfolio gradually transitioned for a rising rate environment. This is a point of departure from previous years where we believed both economic growth and inflation
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were likely to be at or below expectations. We now believe economic growth and inflation may present upside surprises. Several steps were taken to prepare the portfolio for this new environment. We added several securities where the coupon resets with short-term interest rates and should benefit from a rise in rates. Finally, the portfolio duration was moved to be shorter than its benchmark. In previous years, the portfolio duration largely mirrored the benchmark duration.
Growth prospects appear more favorable in 2017 with GDP growth projections over 2 percent. Long- term interest rates and mortgage rates are likely to rise. The forecasted rise in rates will slow mortgage activity. However, home prices are still likely to move higher and a major pullback in housing activity is unlikely. Agency mortgages underperformed similar maturity Treasuries last year as investors prepared their portfolios for higher interest rates. The ability of agency mortgages to outperform Treasuries in 2017 largely depends on the magnitude of interest rate moves.
Fannie Mae and Freddie Mac have been in conservatorship since 2008 and there isn't a clear consensus on how to proceed. The new administration may address the issue; however, they are more likely to delay any action. The resolution of this issue is unlikely to directly impact the Fund, however it will likely impact the availability and cost of obtaining a mortgage.
We are constructive on the CMBS market. Better loan underwriting, limited issuance and investor demand should support the CMBS market.
Once the new administration takes office, change will need to be quick and substantive in order to not disappoint the markets. But risks remain. It unclear how far the traditional Republicans in congress will support Trump's spending plans. Furthermore, a tough stance against trading partners could upset long standing trading patterns but also exacerbate the U.S. dollar's rise and harm export firms. We would likely alter our portfolio positioning should such risk unfold.
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Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
Federal National Mortgage Association 3.000%, 01/01/32 | $ | 3,386,367 | 3.8 | % | |||||||
Federal National Mortgage Association 3.500%, 01/01/47 | 2,459,813 | 2.7 | % | ||||||||
Federal National Mortgage Association 3.500%, 01/01/42 | 2,034,433 | 2.3 | % | ||||||||
Federal National Mortgage Association 3.500%, 06/01/45 | 1,839,539 | 2.1 | % | ||||||||
Federal National Mortgage Association 4.000%, 10/01/43 | 1,557,099 | 1.7 | % | ||||||||
Federal Home Loan Mortgage Corporation 3.500%, 12/01/44 | 1,531,352 | 1.7 | % | ||||||||
Nissan Motor Acceptance Corp. 1.477%, 09/13/19 | 1,497,609 | 1.7 | % | ||||||||
Government National Mortgage Association 3.000%, 04/15/45 | 1,464,246 | 1.6 | % | ||||||||
Government National Mortgage Association 3.500%, 04/20/45 | 1,455,160 | 1.6 | % | ||||||||
Government National Mortgage Association 3.250%, 03/20/35 | 1,318,074 | 1.5 | % | ||||||||
$ | 18,543,692 | 20.7 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
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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 Bloomberg 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).
Asset Quality (shown as a percentage of investments)
(Unaudited)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Mortgage Securities Fund,
Bloomberg Barclay's U.S. Mortgage-Backed Securities Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus Mortgage Securities Fund's Class 2 shares total return compared to the Bloomberg 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, 2006 through December 31, 2016, assuming reinvestment of distributions, if any.
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Performance Update
Matthew Richmond and Lowell Bolken, CFA Portfolio Managers
The SFT 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 SFT 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.
SFT Advantus Real Estate Securities Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 4.40 percent over the 12 months ending December 31, 2016, underperforming the Wilshire U.S. Real Estate Securities Index, which returned 7.62 percent over the same period. The Fund's Class 2 shares finished in the bottom quartile of peers.
What influenced the Fund's return during the past 12 months?
Real estate stocks delivered positive returns again in 2016, but the intra-year price action among the stocks was unusually volatile. Macro events like the surprise decision by voters in the U.K. to leave the European Union, "Brexit," the uncertainty of the U.S. presidential election, and severe swings in the 10-year U.S. Treasury yield drove stock prices more than did property fundamentals.
After an initial panic to start the year, real estate investment trusts (REITs) rallied throughout the summer months to new highs. However, a series of headwinds—ranging from political uncertainty to questions about U.S. Federal Reserve (Fed) policy to the impending election—led to a sharp pullback in stock prices during the balance of the year. While events across the economy and capital markets often were met with short-term, knee-jerk reactions by investors, the fundamentals of commercial real estate ultimately determined the long-term direction of share prices.
U.S. commercial real estate conditions continued to improve although the pace of improvement slowed. Most property types maintained pricing power with solid occupancy and rent increases. Occupancies across all major property types improved at least marginally, with both apartments and industrial REITs reaching all-time high occupancy levels. In the latter half of the year, we began to see weakening pricing power in some sectors—notably apartments, hotels and storage—with disruptive levels of new supply being delivered (or anticipated) in several major markets. In industrial properties, trends again improved, as they have for several years, on the back of an improving economy and the increased demand for e-commerce-related distribution space.
What other market conditions or events influenced the Fund's performance during the past 12 months?
The portfolio maintained its bias toward large-capitalization companies that focus on major urban, coastal and Sunbelt markets. This positioning was a significant detractor to performance as small- and mid-cap REITs widely outperformed large-caps, particularly in the second half of the year. Dividend yield was another hallmark of performance across the sector. Investors' thirst for yield-oriented investments benefitted the highest yielding REIT stocks, which generally feature lower growth prospects and below-average portfolio quality compared with investments in the portfolio.
What strategies and techniques did you employ that affected Fund performance?
A common theme among portfolio holdings was investment in companies we believe own well-located, high-quality properties, feature stable balance sheets, exhibit improving property fundamentals, and have above-average cash-flow growth prospects. Those characteristics, which often in the past have driven above-average stock price performance, were out of favor in 2016.
From a property-type perspective, the portfolio was overweight in owners of warehouses, urban-centric office buildings and datacenters, and avoided health care and lodging REITs.
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What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
Significant contributors to performance included overweight positions relative to the benchmark within industrial, manufactured home and student housing REITs—each of which experienced strong demand and rental rate growth. Favorable stock selection in office REITs, particular central business district office owners, also contributed to performance. The decision to underweight shopping center stocks also contributed to performance but was offset by unfavorable stock selection within the sector. Meanwhile, an underweight position to hotel REITs was the largest detractor from relative performance versus the benchmark. Despite slowing fundamentals across the hotel sector, the group rallied strongly following the presidential election on investors' belief that the fiscal policies of U.S. President-elect Donald Trump's administration will support stronger economic growth.
The recent election results have injected a healthy degree of optimism into the capital markets and business community, though the potential for Trump's economic agenda is largely unknown at this time. We think 2017 is likely to be a pivotal year for this cycle as investors look for tangible evidence that policy changes can have a material impact on the trajectory of gross domestic product and employment growth. At a minimum, we think a more pro-business posture is likely to spur improved business confidence and thus maintain the prospect of continued favorable real estate demand.
We believe REIT fundamentals are likely to continue to benefit from an improving economy, although the pace of growth is being muted by new supply in certain sectors such as apartments, hotels, and self-storage. Despite signs of decelerating growth in cash flow, we think the landscape for commercial real estate and REITs remains constructive. Moving into the later stages of the recovery does not mean the sector's fundamentals will turn negative. Rather, we think it is moving from great to good. We are expecting cash flow growth for the sector to decelerate slightly to 5% in 2017, which we think also can lead to another year of solid dividend growth, although such growth cannot be guaranteed.
Capitalization rates for private market transactions continue to support REIT valuations, suggesting REITs currently trade at a discount to their net asset values, while REIT pricing compared to broader fixed income and equity markets also looks attractive to us compared to historic averages. That said, it is hard to argue that Fed monetary policy hasn't boosted financial asset valuations, including real estate. Although we see valuations today as justifiable, a sustained reversal in record-low interest rates (particularly in the long-end of the curve) would be likely to pressure REIT share prices. We saw evidence of this relationship in the second half of 2016 when the yield on 10-year U.S. Treasury securities rose sharply.
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Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Simon Property Group, Inc. | 57,679 | $ | 10,247,828 | 7.2 | % | ||||||||||
ProLogis, Inc. | 133,281 | 7,035,904 | 4.9 | % | |||||||||||
Public Storage | 24,500 | 5,475,750 | 3.8 | % | |||||||||||
Welltower, Inc. | 76,300 | 5,106,759 | 3.6 | % | |||||||||||
Equinix, Inc. | 14,168 | 5,063,785 | 3.5 | % | |||||||||||
Vornado Realty Trust | 48,486 | 5,060,484 | 3.5 | % | |||||||||||
AvalonBay Communities, Inc. | 27,626 | 4,893,946 | 3.4 | % | |||||||||||
Alexandria Real Estate Equities, Inc. | 37,700 | 4,189,601 | 2.9 | % | |||||||||||
Host Hotels & Resorts, Inc. | 207,746 | 3,913,935 | 2.8 | % | |||||||||||
General Growth Properties, Inc. | 154,900 | 3,869,402 | 2.7 | % | |||||||||||
$ | 54,857,394 | 38.3 | % |
^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 SFT Advantus Real Estate Securities Fund,
Wilshire US Real Estate Securities Index, and Consumer Price Index
On the chart above you can see how the SFT 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, 2006 through December 31, 2016, 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).
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Performance Update
Daniel P. Becker, CFA and Bradley M. Klapmeyer CFA Portfolio Managers Waddell & Reed Investment Management Company
The SFT IvySM Growth Fund seeks to provide growth of capital. The Fund pursues its objective by investing primarily in a diversified portfolio of common stocks issued by large capitalization companies. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, Waddell & Reed Investment Management Company (WRIMCO) provides investment advice to the Fund under a sub-advisory agreement. The risks incurred by investing in the Fund include, but are not limited to, the risk of declines in the market for large cap stocks or in the equity markets generally.
SFT IvySM Growth Fund
How did the Fund perform during the period?
The Fund returned 0.91 percent over the 12 months ending December 31, 2016, underperforming the Russell 1000® Growth Index which returned 7.07 percent over the same period.
What influenced the Fund's return during the past 12 months?
2016 will be remembered as another year in a recent string of volatile years within a generally strong market cycle, now in its 8th year since the start of the Great Recession. While most parts of the equity market produced generally strong results, several small periods of market volatility generated disruption in the growth stock areas of the equity market throughout the 12-month period.
What other market conditions or events influenced the Fund's return during the last 12 months?
Coming into early 2016, growth stocks were continuing to experience yet another year of strong performance. Interest rates were very low in the U.S. and global central banks were in the midst of aggressive monetary policy accommodation in an effort to stabilize economic growth in international economies and devalue specific currencies versus the U.S. dollar. Simultaneously, the Federal Reserve was indicating a desire to increase interest rates as it wrongly believed the U.S. economy was strengthening. The combination of these divergent monetary policies around the world produced a very strong response in the foreign exchange market causing the value of the U.S. dollar to soar. These macroeconomic events once again produced a very disruptive period for most stock markets around the world early in the year. Growth stocks experienced some of the greatest pain during the month of February as these stocks had been some of the best performers over the past several years.
Several months after such divergent monetary policies' negative impact on growth stocks in early 2016, the United Kingdom surprised global capital markets when its constituents voted to leave the European Union, catalyzing another sharp global equity market disruption. Later in 2016, capital markets experienced a third volatility shock when the U.S. presidential election produced a result contrary to what many people expected. Having been some of the best performing equity market styles over the past four years, growth stocks were disproportionally hurt by each and every one of the shocks in 2016. Within the growth stocks universe, health care stocks were some of the poorest performers, as both major party U.S. presidential candidates campaigned on, and pursued policies, that may affect long-term profit margins in the industry. Contrary to past years, small stocks performed much better than large stocks (as measured by the Russell 2000® Growth Index and Russell 1000® Growth Index), and value styles performed significantly better than growth styles (as measured by the Russell 1000® Value Index and Russell 1000® Growth Index).
What strategies and techniques did you employ that affected Fund performance?
Current Fund construction is focused on structurally-advantaged companies that can drive genuine sales and profitability growth without the benefits of strong economic tailwinds. When growth stocks perform poorly versus value stocks and small stocks perform better than large stocks, large-cap growth investors usually do not do well. In
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2016, over 90 percent of active large-growth portfolios underperformed the benchmark, which makes 2016 the worst year on record for active management. In general, value, and specifically small-value styles, performed well. Defensive styles and industries performed especially well early in the year, and stocks with high-dividend yields and slow or negligible revenue growth rates performed well around the world.
Several of the Fund's health care holdings did not perform well and negatively impacted Fund performance over the period. The Fund experienced strong results in areas such as financials, energy and industrials.
What industries or sectors did you emphasize during the period, and what is your outlook going forward?
The Fund's investment process has remained steadfast and consistent over time, focusing on companies with structurally-advantaged business models that we believe can generate superior levels of profitability and growth over the long term.
As we look ahead into 2017, we believe the recent U.S. presidential election may create some significant changes in how many view the potential rate of domestic economic growth. The slow rate of growth in output, jobs and wages, affected the U.S. election, as well as future policies meant to counteract the disappointing growth. Despite the low gross domestic product growth rate over that time, many growth stocks performed well, as these stocks were able to grow through the tough times. However, a newly elected Congress and administration whose report card will be measured on job growth, wages and prosperity, may change how various types of stocks are viewed in the market. Better economic growth may improve conditions for financial, energy and industrial companies. Our investments in these more cyclical areas reflect the possibility that these areas may grow much faster in the years ahead. As we look at the financial industry, we are finding a significant amount of new investment opportunities in this sector. We believe these businesses may experience growth rates in the future much different than that of the past few years.
Over the past one to two years, we have been more cautious on the outlook for the stocks of companies that have slower growth, higher-dividend yields and, in general, perform better when interest rates move lower. These stocks have appreciated to the point where very few of them meet our strategy's quality, growth and valuation criteria, even as they generally operate in very good long-term industries.
With our view that economic growth may accelerate, interest rates may have bottomed, and attractive stocks can be found elsewhere in the market, we have moved further away from stocks that are characterized by stability, defensiveness, negligible revenue growth and high valuation. These "stable" businesses have been the market leaders over the past few years when global economic growth was disappointing, and may be hurt as the economy appears to finally be accelerating. Our emphasis continues to be focused on stocks of companies that we believe maintain unique, highly profitable, growing businesses that are not easy to replicate.
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'Ivy' is the registered service mark of Ivy Funds Distributor, Inc., an affiliate of the Waddell & Reed Investment Management Company, the Fund's sub-adviser.
*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 Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization.
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
The Goldman Sachs Group, Inc. | 81,282 | $ | 19,462,975 | 4.5 | % | ||||||||||
Microsoft Corp. | 308,500 | 19,170,190 | 4.4 | % | |||||||||||
Mastercard, Inc.—Class A | 183,200 | 18,915,400 | 4.3 | % | |||||||||||
Lam Research Corp. | 168,138 | 17,777,231 | 4.1 | % | |||||||||||
The Home Depot, Inc. | 126,500 | 16,961,120 | 3.9 | % | |||||||||||
Celgene Corp. | 145,991 | 16,898,458 | 3.9 | % | |||||||||||
Facebook, Inc.—Class A | 131,700 | 15,152,085 | 3.5 | % | |||||||||||
Microchip Technology, Inc. | 234,729 | 15,057,865 | 3.4 | % | |||||||||||
CME Group, Inc. | 123,900 | 14,291,865 | 3.3 | % | |||||||||||
EOG Resources, Inc. | 134,797 | 13,627,977 | 3.1 | % | |||||||||||
$ | 167,315,166 | 38.4 | % |
^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 SFT IvySM Growth Fund,
the Russell 1000 Growth Index, and Consumer Price Index
On the chart above you can see how the SFT IvySM Growth Fund's shares total return compared to the Russell 1000 Growth Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2016, assuming reinvestment of distributions, if any.
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Performance Update
Timothy J. Miller CFA
Kenneth G. McQuade CFA
Bradley P. Halverson CFA
Portfolio Managers Waddell & Reed Investment Management Company
The SFT IvySM Small Cap Growth Fund seeks to provide growth of capital. The Fund pursues its objective by investing primarily in a diversified portfolio of common stocks issued by small capitalization companies. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, Waddell & Reed Investment Management Company (WRIMCO) provides investment advice to the Fund under a sub-advisory agreement. The risks incurred by investing in the Fund include, but are not limited to, the risk of declines in the market for small cap stocks or in the equity markets generally.
SFT IvySM Small Cap Growth Fund
How did the Fund perform during the period?
The Fund returned 21.10 percent over the 12 months ending December 31, 2016, outperforming the Russell 2000® Growth Index which returned 11.32 percent over the same period.
What influenced the Fund's return during the past 12 months?
The investment landscape at the end of 2016 looked quite different than it did at the beginning of the trading year. As a reminder, the start to the year was memorable for all the wrong reasons in that U.S. equites collapsed due to fears such as a failed U.S. monetary policy and a growth slowdown in China and other emerging markets. As a result, U.S. equities generated one of the worst starts to any year on record. Fast forward 12 months to the end of 2016 and not only did equities recover from their losses, but also, in most cases, equities generated double-digit annual increases based on broad market results.
So what happened? How was it that equites were able to power higher in light of major unexpected events such as the vote by the United Kingdom to exit the European Union and a political outsider being elected to the White House? Simplistically, as 2016 progressed, economic data started to improve despite the doom and gloom prognostications with which some started the year. With the U.S. economy performing significantly better than they feared, confidence slowly re-emerged. Then, the surprise U.S. presidential election outcome triggered a sharp increase in both consumer and business confidence. Thus far, investors have embraced ideas such as a globally competitive tax rate, less regulation and faster economic growth, and as result, the broader equity market raced to new all-time highs at the end of the year.
What other market conditions or events influenced the Fund's return during the past 12 months?
The small-cap growth space experienced another strong year in 2016. The Russell 2000® Growth Index, which represents small-capitalization growth stocks, maintained its overall positive momentum in the year, ending the 12-month period with a return of 11.32 percent. The latest rally occurred post-election day, fueled by hopes for more business-friendly policies from the new administration. Sector leadership changed significantly based on the general surprise of a Trump win, along with a Republican sweep in the U.S. elections, which caused a significant level of volatility in the U.S.
What strategies and techniques did you employ that affected Fund performance?
The financials sector was the clear leader for the market in the fourth quarter, led by regional banks that initially benefited from higher interest rates. The sector increased in the fourth quarter, mostly within regional banks that depend on loan growth and the interest rate spread within their loan portfolios. The Fund was overweight financials and was able to keep pace with strong returns from banks and consumer finance positions.
Generally, industrials-related names also led fourth quarter based on the continuing improvement in the U.S. economy, promises of less regulation and the potential for pockets of domestic protectionism. The industrials sector led, followed by related sectors, materials and energy. The materials sector was up in the fourth quarter and the energy sector, on the back of improving oil prices, posted a solid quarterly return.
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The Fund was underweight core cyclical industrials names and, therefore, slightly lagged the industrials sector. The Fund was weighted to secular growth machinery names, which, in total, produced a positive absolute return, but did not compare to the strength industrial cyclicals experienced on the hopes of more business-friendly policies and domestic spend increases. Health care was the sole declining sector in the fourth quarter. Fears of a repealed Patient Protection and Affordable Care Act (ACA) health program hurt the outlook for health care providers, including hospitals, nursing and surgery centers. The Fund remained underweight health care due to regulatory fears and its traditional lack of exposure to biotechnology companies, which provided a boost to performance during the period.
Based on the surge of slow growth bank stock and industrials in the fourth quarter of 2016, quality metrics were quite volatile relative to earlier in the year. Many of the largest but slowest growing stocks outperformed. The worst growing quintile of stocks were positive while the best growing stocks declined. Investors apparently sold their winning high-flyers for more Trump-benefiting cyclical companies. The Fund gravitated toward faster growing secular growth stories, which were not favorable following the U.S. election.
Broadly, the Fund maintains its high-quality heritage with a bias to stronger revenue growth.
What industries or sectors did you emphasize during the period, and what is your outlook going forward?
Looking forward, the U.S. economic expansion has remained steadfast enough that the Federal Reserve has begun the process of renormalizing interest rates. The economy continues on its trajectory of low but sustainable growth with more economic upside projected in the United States than anywhere else in the world. U.S. consumers could benefit from reasonable energy prices, interest rates, inflation and strong employment confidence, although all these metrics are rising. Thus, owning the beneficiaries of a strong domestic consumer is an increasing strategy of the Fund.
We think a big risk post many positive quarters and record annual returns is that stock prices have outpaced economic and earnings growth, making valuations less attractive. Periods of catch up and volatility are likely to continue. The Fund's long-term strategy of owning high-quality companies also usually is associated with owning higher valued stocks, which has more risk during times of corrections, but we believe over time, earnings growth matters. In addition, we think the benefits of a better employment environment with reasonable inflation, open credit markets and less regulation may continue to help some cyclical growth segments relative to secular growth. Domestic industrials-related names may be bigger beneficiaries of the economic environment going forward. Although the Fund remains disciplined to holding more consistent secular growth in companies that should be ultimate winners in their respective market segments, we believe valuation sensitivity and an eye toward cyclical beneficiaries will increase. However, the Fund remains quite focused in the search for companies with stronger revenue growth, greater profitability and cleaner balance sheets that can reinvest in their own businesses and could benefit from improved corporate and consumer spending.
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Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
PRA Group, Inc. | 133,215 | $ | 5,208,707 | 3.3 | % | ||||||||||
Manhattan Associates, Inc. | 82,359 | 4,367,498 | 2.8 | % | |||||||||||
AMN Healthcare Services, Inc. | 108,374 | 4,166,980 | 2.7 | % | |||||||||||
Tyler Technologies, Inc. | 28,099 | 4,011,694 | 2.6 | % | |||||||||||
Watsco, Inc. | 26,781 | 3,966,802 | 2.5 | % | |||||||||||
HealthEquity, Inc. | 94,200 | 3,816,984 | 2.4 | % | |||||||||||
LendingTree, Inc. | 36,117 | 3,660,458 | 2.3 | % | |||||||||||
Mercury Systems, Inc. | 114,200 | 3,451,124 | 2.2 | % | |||||||||||
Wingstop, Inc. | 114,333 | 3,383,113 | 2.2 | % | |||||||||||
Five Below, Inc. | 84,100 | 3,360,636 | 2.1 | % | |||||||||||
$ | 39,393,996 | 25.1 | % |
^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 SFT IvySM Small Cap Growth Fund,
the Russell 2000 Growth Index, and Consumer Price Index
On the chart above you can see how the SFT IvySM Small Cap Growth Fund's shares total return compared to the Russell 2000 Growth Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2016, assuming reinvestment of distributions, if any.
'Ivy' is the registered service mark of Ivy Funds Distributor, Inc., an affiliate of the Waddell & Reed Investment Management Company, the Fund's sub-adviser.
*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 Russell 2000 Growth Index is an unmanaged index of those Russell 2000 Index growth companies with higher price-to-book ratios and higher forecasted growth values. The index is broad-based, comprised of 2,000 of the smallest U.S.-domiciled company common stocks based on total market capitalization.
37
Performance Update
Chandler Willett Portfolio Manager FIAM, LLC
The SFT Pyramis® Core Equity Fund seeks long-term capital appreciation. The Fund pursues its objective by investing primarily in a diversified portfolio of common stocks. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, FIAM LLC (formerly Pyramis Global Advisers, LLC) (Pyramis) provides investment advice to the Fund under a sub-advisory agreement. Risks associated with investing in the Fund include, but are not limited to, issuer-specific market volatility and risk of declines in the equity markets generally.
Pyramis is a registered service mark of FMR LLC. Used with permission.
SFT Pyramis® Core Equity Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 4.83 percent over the 12 months ending December 31, 2016, underperforming the S&P 500® Index, which returned 11.96 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Information Technology and Health Care sectors detracted from relative performance. The Consumer Discretionary and Financials sectors contributed to relative performance.
What other market conditions or events influenced the Fund's return during the past 12 months?
The recovery from a global industrial recession during 2016 set the stage for rising bond yields and inflation expectations in the second half of the period. In the mid-year aftermath of the late-June United Kingdom (U.K.) referendum to leave the European Union (Brexit), bond yields dropped to all-time lows. From July through early November, investor recognition of the improving global cyclical outlook pushed up bond yields as both economic and inflation expectations improved. After the U.S. elections, bond yields rose further, with hopes for pro-growth economic policies helping to push up inflation-adjusted yields even faster than inflation expectations. The Federal Reserve continued its tightening cycle by hiking policy rates for the second time in December, marking progress toward greater monetary normalization. Sharp post-U.S. election market moves reset 2016 asset class results, with U.S. stocks—especially small-caps—surging while a strengthening dollar hit a 15-year high and pushed non-U.S. stocks down. The upward move in bond yields weighed on investment-grade bond returns in the fourth quarter, though they remained positive for the year. Overall, 2016 saw solid performance across most asset categories.
What strategies and techniques did you employ that affected Fund performance?
The Information Technology and Health Care sectors detracted the most from relative performance. In the Information Technology sector, the overweight in a cloud computing company and underweight in a wireless chipset maker detracted from relative performance. The Consumer Discretionary and Financials sectors contributed the most to relative performance. In the Consumer Discretionary sector, the over-weights in a media conglomerate and a discount retailer were among the largest contributors to relative performance.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
The biggest headlines of the fourth quarter came on the political front, as the Republican Party's sweep of the White House and Congress during the November elections signaled a changing political landscape and also served as a catalyst for U.S. equity markets. On the economic front, the Fed raised interest rates in December for the second year in a row and with its forecast of an additional three rate hikes in 2017, signaled its belief that the economy has strengthened enough to withstand a gradual normalization of interest rates. While the U.S. economy appears to be expanding at a healthy pace with solid underlying fundamentals, potential uncertainty on the political and global economic fronts bear monitoring as we move forward in 2017, offering opportunities for active equity management to uncover stronger active excess returns. Against this backdrop, our Global Sector Leaders continue to focus on uncovering attractive investment ideas by
38
applying bottom-up, fundamental research to their respective sectors. We remain consistent in our investment process designed to deliver a sector-neutral, cohesive portfolio capturing the best thinking of the team.
The Consumer Staples and Information sectors contributed the most to relative portfolio performance. In the Consumer Staples sector, the overweights in were the largest contributors.
Shares of Constellation Brands appreciated following strong quarterly earnings that beat consensus estimates. Earnings before interest and taxes (EBIT) were up from the previous year, driven by strong gross margins for its wine segments.
Shares in Reynolds American rose after the company announced strong quarterly earnings that beat market expectations. Increased cigarette pricing, rising sales volume, and management's improved 2015 earnings guidance all contributed to the rising share price. Speculation regarding the accretive benefits and cost savings from the recently completed acquisition of Lorillard in the upcoming quarters also drove the stock price higher.
In the Information Technology sector, the overweights in internet search and services company Alphabet and software provider Adobe Systems contributed the most to relative performance. Alphabet shares appreciated after the company reported better-than-expected quarterly earnings for the first time in several quarters, driven by strong growth in its mobile search and YouTube units, as well as an improvement in cost controls. Additionally, the company announced that it is changing its operating structure to a holding company, bringing transparency into its different businesses. The news increased investor confidence in the company, subsequently leading to an upgrade to the company's stock rating, contributing to the rising stock price. Lastly, plans to buy back $5.1 billion of stock also moved shares higher. Adobe Systems shares rose after the company announced quarterly profit that exceeded consensus estimates with strong growth in creative cloud subscriber base and recurring revenue.
Among individual holdings, the overweights in pharmaceutical companies Salix Pharmaceuticals and BioMarin Pharmaceutical were among the largest contributors to relative performance. Salix Pharmaceuticals rose as Valeant offered to buy Salix for approximately $11 billion in cash. BioMarin shares gained after the company reported quarterly revenue and earnings that topped analysts' estimates, lifted by strong sales of its Morquio A syndrome drug, Vimizim, and its mucopolysaccharidosis VI drug, Naglazyme. Additionally, shares rose on positive investor sentiment for its product pipeline, including the continued rollout of Vimizim and the potential accelerated approval of drisapersen, which is used to treat Duchenne muscular dystrophy.
The Utilities and Industrials sectors detracted the most from relative performance. In the Utilities sector, the overweight in power company NRG Energy was among the largest detractors from relative sector performance. NRG Energy shares declined in sync with falling power prices due to a current oversupply in the market. The company reported weaker than expected quarterly revenue, which also contributed to the falling stock price. In the Industrials sector, the overweight in rail-based transportation provider CSX Corporation and not holding a position in industrial conglomerate General Electric were the lead detractors from relative performance. CSX shares depreciated primarily due to weakening North American railroad volumes. The strong U.S. dollar, low oil prices, and cheaper natural gas are culprits for the decreased demand. Shares in General Electric
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advanced on news the company will exit out of its financial business, GE Capital. Additionally, the company announced quarterly earnings that beat consensus estimates, driven by strong performance from its core units. The company continues to focus on its industrial business and is ahead of schedule in divesting assets in its GE Capital business. The disclosure of a $2.5 billion stake from activist shareholder Trian also sent shares higher. Market analysts expect Trian's investment will increase the likelihood that management will execute and hit their targets.
Among individual holdings, the underweight in technology company Microsoft and overweight in specialty pharmaceutical company Valeant Pharmaceuticals were the lead detractors from relative performance. Microsoft shares appreciated after the company reported quarterly earnings that beat analysts' expectations, driven by strong performance in its cloud computing business. Shares in Valeant dropped following questions regarding both the company's dependence on price increases for growth as well as its aggressive use of specialty pharmacies for drug distribution. While many drug companies rely on these pharmacies, Valeant's ownership stake in Philidor was more aggressive than industry standard; that relationship has since been dissolved.
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Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Alphabet, Inc.—Class A | 5,540 | $ | 4,390,173 | 3.9 | % | ||||||||||
Facebook, Inc.—Class A | 22,010 | 2,532,250 | 2.2 | % | |||||||||||
Apple, Inc. | 21,790 | 2,523,718 | 2.2 | % | |||||||||||
Hess Corp. | 37,750 | 2,351,448 | 2.1 | % | |||||||||||
Danaher Corp. | 27,340 | 2,128,145 | 1.9 | % | |||||||||||
KeyCorp | 113,620 | 2,075,837 | 1.8 | % | |||||||||||
Citigroup, Inc. | 34,530 | 2,052,118 | 1.8 | % | |||||||||||
Amazon.com, Inc. | 2,710 | 2,032,148 | 1.8 | % | |||||||||||
American Electric Power Co., Inc. | 32,260 | 2,031,090 | 1.8 | % | |||||||||||
Verizon Communications, Inc. | 36,980 | 1,973,992 | 1.8 | % | |||||||||||
$ | 24,090,919 | 21.3 | % |
^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 SFT Pyramis® Core Equity Fund,
S&P 500® Index, and Consumer Price Index
On the chart above you can see how the SFT Pyramis® Core Equity Fund's Class 2 shares total return compared to the S&P 500 Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2016, 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 S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall.
41
Performance Update
Mark Finn, CFA, CPA Portfolio Manager T. Rowe Price
The SFT T. Rowe Price Value Fund seeks to provide long-term capital appreciation by investing in common stocks believed to be undervalued. Income is a secondary objective. The Fund pursues its objective by taking a value approach to investment selection. Holdings consist primarily of large cap stocks, but may also include stocks of mid-cap and small-cap companies. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, T. Rowe Price Associates, Inc. (T. Rowe Price) provides investment advice to the Fund under a sub-advisory agreement. The Fund's value approach to investing carries the risk that the market will not recognize a security's intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced at a low level.
SFT T. Rowe Price Value Fund
How did the Fund perform during the period?
The Fund's shares generated a total net return of 10.65 percent over the 12 months ending December 31, 2016, underperforming the S&P 500® Index, which returned 11.96 percent over the same period.
What influenced the Fund's return during the past 12 months?
Broadly speaking, stock selection detracted and sector allocation contributed to relative results.
What other market conditions or events influenced the Fund's return during the last 12 months?
Despite a sharp sell-off at the beginning of the year, U.S. stocks rose in 2016, with major indexes reaching record highs near year-end. Small- and mid-cap stocks substantially outperformed large-caps.
Domestic investment-grade bonds produced positive returns, though losses in the second half of the year reduced first-half gains. High yield bonds strongly outperformed investment-grade issues. The Federal Reserve raised short-term rates in December and projected three rate increases in 2017.
Developed non-U.S. equity markets significantly underperformed U.S. shares, as returns to U.S. investors were hurt by weakening non-U.S. currencies. Emerging markets generally produced good returns; Brazil and Russia were top performers.
Bonds in developed non-U.S. markets produced modest positive returns, as significant first-half gains driven by dollar weakness and falling yields were largely offset by a reversal of these trends in the last six months. Emerging markets bonds did well, as first-half gains were only partially eroded by a stronger dollar since June.
What strategies and techniques did you employ that affected portfolio performance?
The largest source of underperformance relative to the benchmark was industrials and business services, where stock selection detracted and an underweight allocation further hindered results.
Our underweight positions to the telecommunication services and information technology sectors detracted from relative performance during the year, and stock selection in both sectors also weighed on results.
On the positive side, while stock choices hindered performance in the financials sector, a beneficial overweight overcame the negative effect of stock selection to make it the leading relative contributor for the portfolio.
The portfolio also received a boost from stock selection in the consumer staples sector, where the portfolio's selections outperformed their benchmark peers.
This account did not hold derivatives over the 12 months ending December 31, 2016.
What industries or sectors did you emphasize during the fiscal year, and what is your outlook going forward?
T. Rowe Price economists and managers are still assessing the effects the new Trump administration will have on U.S. stocks. On the policy side, Chief Economist Alan
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Levenson said he is carefully watching actions by Congress and cabinet appointments to ascertain the policies and priorities of the new administration. The possibility of a sharp rise in interest rates is another concern for stock investors. Higher coupon returns from bonds could draw assets away from equities, and higher rates would mean increased borrowing costs and lower profits for corporations. T. Rowe Price managers believe that a moderate increase does not necessarily pose a threat to equity valuations, however. Growth equity manager Larry Puglia observed that stock prices have historically been able to rise alongside interest rates, particularly when yields have remained under 5 percent (the yield on the 10-year Treasury note was 2.45 percent in December).
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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 S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall.
Ten Largest Holdings^
Security description | Shares | Market value | % of bond portfolio | ||||||||||||
JPMorgan Chase & Co. | 123,099 | $ | 10,622,213 | 5.2 | % | ||||||||||
Tyson Foods, Inc.—Class A | 105,865 | 6,529,753 | 3.2 | % | |||||||||||
Microsoft Corp. | 94,300 | 5,859,802 | 2.9 | % | |||||||||||
Philip Morris International, Inc. | 64,000 | 5,855,360 | 2.9 | % | |||||||||||
Wells Fargo & Co. | 94,775 | 5,223,050 | 2.5 | % | |||||||||||
Exxon Mobil Corp. | 47,700 | 4,305,402 | 2.1 | % | |||||||||||
Exelon Corp. | 119,650 | 4,246,378 | 2.1 | % | |||||||||||
TOTAL SA ADR | 80,956 | 4,126,327 | 2.0 | % | |||||||||||
Pfizer, Inc. | 124,924 | 4,057,532 | 1.9 | % | |||||||||||
Morgan Stanley | 95,476 | 4,033,861 | 1.9 | % | |||||||||||
$ | 54,859,678 | 26.7 | % |
^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 SFT T. Rowe Price Value Fund,
S&P 500® Index, and Consumer Price Index
On the chart above you can see how the SFT T. Rowe Price Value's shares total return compared to the S&P 500 Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2016, assuming reinvestment of distributions, if any.
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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 schedule of investments in securities, of SFT Advantus Bond Fund, SFT Advantus Index 400 Mid-Cap Fund, SFT Advantus Index 500 Fund, SFT Advantus International Bond Fund, SFT Advantus Dynamic Managed Volatility Fund (formerly SFT Advantus Managed Volatility Fund), SFT Advantus Managed Volatility Equity Fund, SFT Advantus Government Money Market Fund (formerly SFT Advantus Money Market Fund), SFT Advantus Mortgage Securities Fund, SFT Advantus Real Estate Securities Fund, SFT Ivy Growth Fund, SFT Ivy Small Cap Growth Fund, SFT Pyramis Core Equity Fund, and SFT T. Rowe Price Value Fund (collectively, the Funds), each a series of the Securian Funds Trust, as of December 31, 2016, and the related statement of operations for the year 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, 2016, by correspondence with custodians 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 the Funds as of December 31, 2016, the results of its operations, the changes in its net assets, and the financial highlights for each of the years or periods described above, in conformity with U.S. generally accepted accounting principles.
(signed) KPMG LLP
Minneapolis, Minnesota
February 27, 2017
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SFT Advantus Bond Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (96.8%) | |||||||||||
Government Obligations (37.7%) | |||||||||||
Other Government Obligations (1.6%) | |||||||||||
Provincial or Local Government Obligations (1.6%) | |||||||||||
Douglas County Public Utility District No. 1, 5.450%, 09/01/40 | $ | 1,185,000 | $ | 1,348,980 | |||||||
Port Authority of New York & New Jersey 4.458%, 10/01/62 | 1,150,000 | 1,163,110 | |||||||||
4.926%, 10/01/51 | 3,055,000 | 3,378,922 | |||||||||
5,891,012 | |||||||||||
U.S. Government Agencies and Obligations (36.1%) | |||||||||||
Export-Import Bank of the United States (0.2%) | |||||||||||
Tagua Leasing LLC, 1.732%, 09/18/24 | 670,868 | 655,393 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (7.7%) | |||||||||||
2.500%, 03/01/28 | 607,576 | 609,828 | |||||||||
2.956%, 09/25/24 (b) | 1,000,000 | 1,020,954 | |||||||||
3.000%, 08/01/42 | 615,833 | 615,582 | |||||||||
3.000%, 04/01/43 | 1,081,855 | 1,081,414 | |||||||||
3.000%, 07/01/45 | 879,158 | 873,928 | |||||||||
3.500%, 10/01/25 | 277,133 | 291,255 | |||||||||
3.500%, 08/01/42 | 641,342 | 660,705 | |||||||||
3.500%, 05/25/45 | 1,136,876 | 1,140,224 | |||||||||
3.500%, 03/01/46 | 1,710,610 | 1,752,907 | |||||||||
4.000%, 02/01/20 | 411,701 | 422,452 | |||||||||
4.000%, 09/01/40 | 579,530 | 613,701 | |||||||||
4.000%, 10/01/40 | 475,624 | 499,698 | |||||||||
4.000%, 11/01/40 | 2,203,851 | 2,339,583 | |||||||||
4.000%, 02/01/41 | 474,066 | 501,175 | |||||||||
4.000%, 08/01/41 | 657,279 | 694,382 | |||||||||
4.000%, 07/01/42 | 549,140 | 579,689 | |||||||||
4.056%, 10/25/27 (b) | 1,750,000 | 1,832,766 | |||||||||
4.500%, 01/01/41 | 696,220 | 749,547 | |||||||||
4.500%, 02/01/41 | 572,495 | 617,506 | |||||||||
4.500%, 03/01/41 | 686,205 | 740,808 | |||||||||
4.500%, 04/01/41 | 825,051 | 895,722 | |||||||||
4.556%, 03/25/25 (b) | 1,500,000 | 1,587,849 | |||||||||
5.000%, 04/01/35 | 142,353 | 154,927 | |||||||||
5.000%, 08/01/35 | 51,137 | 55,873 | |||||||||
5.000%, 11/01/35 | 140,701 | 153,602 | |||||||||
5.000%, 11/01/39 | 458,609 | 509,485 | |||||||||
5.000%, 03/01/40 | 2,460,283 | 2,728,810 | |||||||||
5.000%, 04/01/40 | 390,626 | 428,818 | |||||||||
5.000%, 08/01/40 | 244,653 | 267,834 | |||||||||
5.500%, 12/01/17 | 10,893 | 11,011 | |||||||||
5.500%, 06/01/20 | 45,713 | 47,410 | |||||||||
5.500%, 10/01/20 | 102,132 | 107,788 | |||||||||
5.500%, 11/01/23 | 124,353 | 137,798 | |||||||||
5.500%, 05/01/34 | 864,913 | 988,972 | |||||||||
5.500%, 10/01/34 | 332,203 | 374,636 | |||||||||
5.500%, 07/01/35 | 394,575 | 443,940 | |||||||||
5.500%, 10/01/35 | 419,840 | 476,455 | |||||||||
5.500%, 12/01/38 | 297,003 | 334,733 |
Principal | Value(a) | ||||||||||
6.000%, 11/01/33 | $ | 328,812 | $ | 380,120 | |||||||
6.500%, 09/01/32 | 69,314 | 80,716 | |||||||||
6.500%, 06/01/36 | 350,294 | 412,594 | |||||||||
7.000%, 12/01/37 | 97,571 | 106,267 | |||||||||
28,323,464 | |||||||||||
Federal National Mortgage Association (FNMA) (14.5%) | |||||||||||
2.106%, 01/25/29 (b) | 87,472 | 87,669 | |||||||||
2.500%, 11/01/27 | 561,840 | 560,795 | |||||||||
2.500%, 07/01/28 | 692,714 | 695,050 | |||||||||
2.500%, 01/01/32 (c) | 340,000 | 340,538 | |||||||||
3.000%, 06/01/22 | 299,165 | 308,223 | |||||||||
3.000%, 11/01/27 | 115,759 | 119,054 | |||||||||
3.000%, 01/01/32 (c) | 4,380,000 | 4,494,633 | |||||||||
3.000%, 03/01/42 | 580,012 | 579,726 | |||||||||
3.000%, 04/01/43 | 701,906 | 701,706 | |||||||||
3.000%, 05/01/43 | 1,396,446 | 1,396,047 | |||||||||
3.000%, 06/01/43 | 356,882 | 356,780 | |||||||||
3.000%, 09/01/43 | 838,857 | 838,618 | |||||||||
3.500%, 11/01/25 | 371,424 | 387,783 | |||||||||
3.500%, 01/01/26 | 364,813 | 380,881 | |||||||||
3.500%, 11/01/40 | 520,366 | 536,678 | |||||||||
3.500%, 01/01/41 | 458,959 | 473,336 | |||||||||
3.500%, 02/01/41 | 312,941 | 323,274 | |||||||||
3.500%, 04/01/41 | 526,582 | 543,118 | |||||||||
3.500%, 11/01/41 | 2,764,471 | 2,851,005 | |||||||||
3.500%, 01/01/42 | 2,630,106 | 2,712,577 | |||||||||
3.500%, 04/01/42 | 2,739,661 | 2,825,662 | |||||||||
3.500%, 08/01/42 | 1,968,952 | 2,030,548 | |||||||||
3.500%, 01/01/43 | 443,838 | 457,754 | |||||||||
3.500%, 03/01/43 | 1,615,099 | 1,665,911 | |||||||||
3.500%, 05/01/43 | 1,438,180 | 1,482,996 | |||||||||
3.500%, 05/01/45 | 1,469,387 | 1,508,211 | |||||||||
3.500%, 10/01/45 | 830,712 | 852,003 | |||||||||
3.500%, 01/01/47 (c) | 1,000,000 | 1,024,922 | |||||||||
4.000%, 04/01/41 | 1,575,061 | 1,668,329 | |||||||||
4.000%, 08/01/41 | 521,265 | 550,320 | |||||||||
4.000%, 09/01/41 | 816,047 | 863,594 | |||||||||
4.000%, 04/01/44 | 3,271,955 | 3,442,269 | |||||||||
4.000%, 08/01/44 | 436,264 | 459,589 | |||||||||
4.000%, 01/01/47 (c) | 600,000 | 630,785 | |||||||||
4.500%, 05/01/35 | 163,218 | 176,436 | |||||||||
4.500%, 07/01/35 | 553,092 | 597,386 | |||||||||
4.500%, 06/01/39 | 297,991 | 321,882 | |||||||||
4.500%, 04/01/41 | 2,111,786 | 2,293,424 | |||||||||
4.500%, 07/01/41 | 1,937,853 | 2,090,987 | |||||||||
5.000%, 05/01/18 | 7,001 | 7,165 | |||||||||
5.000%, 06/01/18 | 16,052 | 16,436 | |||||||||
5.000%, 07/01/18 | 34,705 | 35,517 | |||||||||
5.000%, 07/01/23 | 118,547 | 129,069 | |||||||||
5.000%, 11/01/33 | 69,873 | 76,531 | |||||||||
5.000%, 05/01/34 | 22,323 | 24,438 | |||||||||
5.000%, 12/01/34 | 308,242 | 338,475 | |||||||||
5.000%, 04/01/35 | 75,218 | 82,255 | |||||||||
5.000%, 08/01/35 | 102,885 | 112,370 | |||||||||
5.000%, 04/01/38 | 278,018 | 309,161 | |||||||||
5.000%, 12/01/39 | 364,464 | 405,734 | |||||||||
5.000%, 04/01/41 | 437,907 | 487,198 | |||||||||
5.500%, 09/01/17 | 2,442 | 2,462 | |||||||||
5.500%, 02/01/18 | 17,220 | 17,467 | |||||||||
5.500%, 03/01/18 | 28,627 | 29,108 |
See accompanying notes to financial statements.
46
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
5.500%, 04/01/33 | $ | 503,903 | $ | 571,241 | |||||||
5.500%, 12/01/33 | 125,223 | 142,302 | |||||||||
5.500%, 01/01/34 | 172,874 | 193,468 | |||||||||
5.500%, 02/01/34 | 178,551 | 202,381 | |||||||||
5.500%, 03/01/34 | 337,175 | 380,934 | |||||||||
5.500%, 04/01/34 | 163,179 | 182,213 | |||||||||
5.500%, 09/01/34 | 70,269 | 79,374 | |||||||||
5.500%, 02/01/35 | 231,786 | 260,765 | |||||||||
5.500%, 04/01/35 | 415,309 | 466,239 | |||||||||
5.500%, 06/01/35 | 58,533 | 65,119 | |||||||||
5.500%, 08/01/35 | 173,959 | 195,172 | |||||||||
5.500%, 10/01/35 | 467,057 | 535,720 | |||||||||
5.500%, 11/01/35 | 117,924 | 132,054 | |||||||||
5.500%, 12/01/35 | 94,353 | 105,733 | |||||||||
5.500%, 12/01/39 | 156,300 | 175,539 | |||||||||
6.000%, 09/01/17 | 16,653 | 16,811 | |||||||||
6.000%, 08/01/23 | 98,450 | 107,454 | |||||||||
6.000%, 10/01/32 | 345,706 | 400,042 | |||||||||
6.000%, 11/01/32 | 244,775 | 283,473 | |||||||||
6.000%, 03/01/33 | 388,548 | 452,777 | |||||||||
6.000%, 04/01/33 | 18,377 | 20,803 | |||||||||
6.000%, 12/01/33 | 121,699 | 139,338 | |||||||||
6.000%, 01/01/36 | 77,459 | 87,964 | |||||||||
6.000%, 08/01/37 | 57,092 | 65,101 | |||||||||
6.000%, 09/01/37 | 122,886 | 139,606 | |||||||||
6.000%, 10/01/38 | 258,728 | 302,037 | |||||||||
6.000%, 12/01/38 | 156,096 | 178,903 | |||||||||
6.000%, 06/01/40 | 63,873 | 72,424 | |||||||||
6.500%, 12/01/31 | 99,367 | 115,326 | |||||||||
6.500%, 02/01/32 | 33,796 | 39,225 | |||||||||
6.500%, 04/01/32 | 148,812 | 172,224 | |||||||||
6.500%, 05/01/32 | 44,278 | 50,095 | |||||||||
6.500%, 07/01/32 | 116,335 | 131,618 | |||||||||
6.500%, 08/01/32 | 187,381 | 215,464 | |||||||||
6.500%, 09/01/32 | 116,282 | 133,952 | |||||||||
6.500%, 10/01/32 | 173,455 | 201,743 | |||||||||
6.500%, 11/01/37 | 97,701 | 110,535 | |||||||||
7.000%, 07/01/31 | 92,617 | 109,084 | |||||||||
7.000%, 09/01/31 | 184,142 | 212,140 | |||||||||
7.000%, 11/01/31 | 253,874 | 288,394 | |||||||||
7.000%, 02/01/32 | 41,415 | 46,667 | |||||||||
7.000%, 03/01/32 | 27,994 | 33,093 | |||||||||
7.000%, 07/01/32 | 81,924 | 92,740 | |||||||||
7.500%, 04/01/31 | 97,970 | 104,898 | |||||||||
7.500%, 05/01/31 | 29,974 | 33,735 | |||||||||
53,749,805 | |||||||||||
Government National Mortgage Association (GNMA) (3.2%) | |||||||||||
0.009%, 06/17/45 (b) (d) | 450,753 | 153 | |||||||||
3.000%, 03/15/45 | 1,351,239 | 1,367,302 | |||||||||
3.000%, 03/20/45 | 1,185,291 | 1,201,848 | |||||||||
3.000%, 04/15/45 | 1,723,985 | 1,744,480 | |||||||||
3.000%, 01/01/47 (c) | 1,000,000 | 1,012,519 | |||||||||
3.250%, 11/20/35 | 410,289 | 423,470 | |||||||||
3.500%, 10/20/43 | 873,999 | 912,635 | |||||||||
3.500%, 02/20/45 | 600,379 | 624,740 | |||||||||
3.500%, 03/20/45 | 669,425 | 696,604 | |||||||||
3.500%, 04/20/46 | 1,482,087 | 1,542,927 | |||||||||
3.750%, 03/20/46 | 827,562 | 870,909 | |||||||||
5.000%, 12/15/39 | 36,060 | 40,367 | |||||||||
5.000%, 01/15/40 | 591,381 | 649,941 | |||||||||
5.500%, 07/15/38 | 283,971 | 321,971 |
Principal | Value(a) | ||||||||||
5.500%, 10/15/38 | $ | 334,349 | $ | 383,947 | |||||||
8.500%, 10/15/22 | 12,698 | 12,813 | |||||||||
11,806,626 | |||||||||||
U.S. Treasury (10.5%) | |||||||||||
U.S. Treasury Bond 2.250%, 08/15/46 | 5,875,000 | 4,939,817 | |||||||||
5.375%, 02/15/31 (e) | 5,115,000 | 6,812,541 | |||||||||
U.S. Treasury Note 0.750%, 10/31/18 | 550,000 | 546,047 | |||||||||
0.750%, 07/15/19 | 700,000 | 689,828 | |||||||||
0.875%, 10/15/18 | 10,000 | 9,951 | |||||||||
0.875%, 05/15/19 | 370,000 | 366,459 | |||||||||
1.000%, 11/15/19 | 200,000 | 197,594 | |||||||||
1.375%, 09/30/23 | 425,000 | 402,472 | |||||||||
1.625%, 10/31/23 | 7,115,000 | 6,845,128 | |||||||||
1.750%, 11/30/21 | 18,350,000 | 18,213,091 | |||||||||
39,022,928 | |||||||||||
Total government obligations (cost: $135,650,132) | 139,449,228 | ||||||||||
Asset-Backed Securities (5.7%) | |||||||||||
Asset-Backed Securities (5.7%) | |||||||||||
Appalachian Consumer Rate Relief Funding LLC, 3.772%, 08/01/31 | 780,000 | 806,678 | |||||||||
Ascentium Equipment Receivables Trust, 1.100%, 11/10/17 (f) | 3,860,682 | 3,859,015 | |||||||||
CarMax Auto Owner Trust, 2.160%, 08/16/21 | 1,300,000 | 1,295,152 | |||||||||
Chrysler Capital Auto Receivables Trust, 2.930%, 08/17/20 (f) | 600,000 | 603,688 | |||||||||
Conseco Financial Corp., 6.400%, 10/15/18 | 10,378 | 10,381 | |||||||||
CountryPlace Manufactured Housing Contract Trust, 5.200%, 12/15/35 (b) (f) | 1,722,363 | 1,785,926 | |||||||||
Countrywide Asset-Backed Certificates, 5.934%, 05/25/37 (b) | 1,459,690 | 1,415,193 | |||||||||
Earnest Student Loan Program LLC 2.720%, 01/25/41 (f) (g) | 968,859 | 954,728 | |||||||||
3.020%, 05/25/34 (f) | 1,569,593 | 1,558,130 | |||||||||
FAN Engine Securitization, Ltd., 3.000%, 10/15/19 (f) (g) (h) (i) | 379,617 | 380,818 | |||||||||
Foursight Capital Automobile Receivables Trust, 3.710%, 01/18/22 (f) | 1,200,000 | 1,178,595 | |||||||||
GMAC Mortgage Corp. Loan Trust, 5.952%, 08/25/37 (b) | 3,095,000 | 3,093,990 | |||||||||
Longtrain Leasing III LLC 2015-1A Class A1, 2.980%, 01/15/45 (f) (g) | 1,247,272 | 1,210,066 | |||||||||
TAL Advantage V LLC, 3.510%, 02/22/39 (f) | 397,750 | 383,315 |
See accompanying notes to financial statements.
47
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
TCF Auto Receivables Owner Trust, 2.060%, 04/15/20 (f) | $ | 1,830,000 | $ | 1,839,610 | |||||||
Trip Rail Master Funding LLC, 2.863%, 04/15/44 (f) | 379,440 | 370,427 | |||||||||
Wheels SPV 2 LLC, 1.870%, 05/20/25 (f) | 450,000 | 444,657 | |||||||||
Total asset-backed securities (cost: $21,235,294) | 21,190,369 | ||||||||||
Other Mortgage-Backed Securities (5.2%) | |||||||||||
Collateralized Mortgage Obligations/Mortgage Revenue Bonds (0.3%) | |||||||||||
Credit-Based Asset Servicing and Securitization LLC, 5.205%, 10/25/36 (f) (j) | 848,117 | 872,745 | |||||||||
JPMorgan Mortgage Trust, 3.137%, 11/25/33 (b) | 289,414 | 265,416 | |||||||||
Mellon Residential Funding Corp., 6.750%, 06/25/28 | 7,321 | 7,398 | |||||||||
1,145,559 | |||||||||||
Commercial Mortgage-Backed Securities (4.9%) | |||||||||||
7 WTC Depositor LLC Trust, 4.082%, 03/13/31 (f) | 470,042 | 476,268 | |||||||||
Aventura Mall Trust 2013-AVM, 3.743%, 12/05/32 (b) (f) | 1,000,000 | 1,040,157 | |||||||||
Banc of America Re-Remic Trust, 4.185%, 08/15/46 (b) (f) | 1,350,000 | 1,441,813 | |||||||||
Citigroup Commercial Mortgage Trust 2.911%, 01/12/30 (b) (f) | 725,000 | 721,268 | |||||||||
3.396%, 10/10/49 | 2,000,000 | 1,966,660 | |||||||||
Hometown Commercial Mortgage 5.506%, 11/11/38 (f) (g) | 82,943 | 71,026 | |||||||||
6.057%, 06/11/39 (f) (g) | 337,616 | 241,831 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. 1.898%, 12/05/27 (b) (d) (f) (g) | 10,311,837 | 510,385 | |||||||||
3.144%, 08/15/49 | 500,000 | 487,591 | |||||||||
5.633%, 12/05/27 (f) | 2,165,000 | 2,345,014 | |||||||||
Merrill Lynch Mortgage Investors, Inc., 6.250%, 12/10/29 (b) | 261,441 | 260,905 | |||||||||
Morgan Stanley Capital I Trust 3.201%, 08/05/34 (f) | 860,000 | 862,311 | |||||||||
3.451%, 08/05/34 (f) | 550,000 | 548,788 | |||||||||
Multi Security Asset Trust, 5.880%, 11/28/35 (b) (f) (g) | 1,540,000 | 1,497,372 | |||||||||
Vornado DP LLC, 4.004%, 09/13/28 (f) | 1,475,000 | 1,556,092 | |||||||||
Wells Fargo Commercial Mortgage Trust 2.814%, 08/15/49 | 2,165,000 | 2,068,532 | |||||||||
3.640%, 12/15/59 | 1,560,000 | 1,593,068 |
Principal | Value(a) | ||||||||||
WF-RBS Commercial Mortgage Trust, 3.667%, 11/15/44 | $ | 345,000 | $ | 363,820 | |||||||
18,052,901 | |||||||||||
Total other mortgage-backed securities (cost: $19,537,365) | 19,198,460 | ||||||||||
Corporate Obligations (48.2%) | |||||||||||
Basic Materials (0.3%) | |||||||||||
Chemicals (0.3%) | |||||||||||
CF Industries, Inc., 3.400%, 12/01/21 (f) | 1,000,000 | 989,489 | |||||||||
Communications (1.6%) | |||||||||||
Telecommunication (0.7%) | |||||||||||
Crown Castle Towers LLC 3.222%, 05/15/42 (f) | 1,950,000 | 1,982,233 | |||||||||
6.113%, 01/15/40 (f) | 440,000 | 476,723 | |||||||||
2,458,956 | |||||||||||
Telephone Services (0.7%) | |||||||||||
SBA Tower Trust, 2.240%, 04/15/43 (f) | 2,440,000 | 2,444,549 | |||||||||
Telephone — Integrated (0.2%) | |||||||||||
AT&T, Inc., 4.500%, 03/09/48 (f) | 1,069,000 | 960,575 | |||||||||
Consumer Cyclical (3.1%) | |||||||||||
Auto/Truck Parts & Equipment-Original (3.1%) | |||||||||||
Ford Motor Co., 4.346%, 12/08/26 | 2,750,000 | 2,778,869 | |||||||||
Ford Motor Credit Co. LLC, 1.627%, 03/27/17 (b) | 2,000,000 | 2,001,544 | |||||||||
General Motors Co., 6.750%, 04/01/46 | 950,000 | 1,114,056 | |||||||||
General Motors Financial Co., Inc. 2.268%, 10/04/19 (b) | 3,275,000 | 3,289,449 | |||||||||
2.400%, 05/09/19 | 1,675,000 | 1,670,563 | |||||||||
4.375%, 09/25/21 | 590,000 | 612,015 | |||||||||
11,466,496 | |||||||||||
Consumer, Non-cyclical (1.9%) | |||||||||||
Drugstore Chains (1.0%) | |||||||||||
CVS Pass-Through Trust 5.880%, 01/10/28 | 434,182 | 479,126 | |||||||||
6.036%, 12/10/28 | 2,352,765 | 2,637,678 | |||||||||
6.943%, 01/10/30 | 624,814 | 732,839 | |||||||||
3,849,643 | |||||||||||
Food (0.3%) | |||||||||||
Flowers Foods, Inc., 4.375%, 04/01/22 | 1,000,000 | 1,050,884 | |||||||||
Health Care Products (0.6%) | |||||||||||
Abbott Laboratories, 4.900%, 11/30/46 | 2,250,000 | 2,309,254 |
See accompanying notes to financial statements.
48
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Energy (7.1%) | |||||||||||
Oil & Gas (0.9%) | |||||||||||
HollyFrontier Corp., 5.875%, 04/01/26 | $ | 3,100,000 | $ | 3,167,927 | |||||||
Oil, Gas & Consumable Fuels (0.6%) | |||||||||||
Marathon Petroleum Corp., 5.850%, 12/15/45 | 1,070,000 | 1,063,575 | |||||||||
Tesoro Corp., 4.250%, 10/01/17 | 1,135,000 | 1,152,025 | |||||||||
2,215,600 | |||||||||||
Pipelines (5.6%) | |||||||||||
Boardwalk Pipelines L.P. 3.375%, 02/01/23 | 1,040,000 | 990,061 | |||||||||
5.200%, 06/01/18 | 400,000 | 414,139 | |||||||||
5.750%, 09/15/19 | 2,629,000 | 2,834,483 | |||||||||
Buckeye Partners L.P., 5.600%, 10/15/44 | 3,000,000 | 3,037,965 | |||||||||
Enbridge, Inc., 6.000%, 01/15/77 (b) (h) | 2,225,000 | 2,219,437 | |||||||||
Enterprise Products Operating LLC, 7.034%, 01/15/68 (b) | 1,835,000 | 1,873,562 | |||||||||
NuStar Logistics L.P., 8.150%, 04/15/18 | 2,986,000 | 3,187,555 | |||||||||
Sunoco Logistics Partners Operations L.P., 6.850%, 02/15/40 | 2,150,000 | 2,384,677 | |||||||||
Tennessee Gas Pipeline Co. LLC, 8.375%, 06/15/32 | 1,850,000 | 2,305,574 | |||||||||
Transcanada Trust, 5.875%, 08/15/76 (b) (h) | 1,575,000 | 1,638,000 | |||||||||
20,885,453 | |||||||||||
Financial (16.2%) | |||||||||||
Banks (9.9%) | |||||||||||
Bank of America Corp. 4.000%, 01/22/25 | 1,650,000 | 1,652,072 | |||||||||
5.875%, 01/05/21 | 765,000 | 851,732 | |||||||||
3.950%, 04/21/25 | 780,000 | 776,481 | |||||||||
Capital One Financial Corp. 3.750%, 07/28/26 | 2,000,000 | 1,938,790 | |||||||||
5.550%, 06/01/20 (b) | 2,915,000 | 2,951,437 | |||||||||
Capital One NA/Mclean VA, 1.722%, 09/13/19 (b) | 3,000,000 | 3,010,860 | |||||||||
Citigroup, Inc. 4.400%, 06/10/25 | 1,500,000 | 1,534,575 | |||||||||
5.950%, 05/15/25 (b) | 2,150,000 | 2,123,555 | |||||||||
Citizens Bank NA, 2.300%, 12/03/18 | 1,250,000 | 1,256,405 | |||||||||
Compass Bank, 3.875%, 04/10/25 | 2,500,000 | 2,379,103 | |||||||||
Discover Bank 3.100%, 06/04/20 | 2,250,000 | 2,276,969 | |||||||||
3.450%, 07/27/26 | 1,900,000 | 1,834,661 | |||||||||
8.700%, 11/18/19 | 322,000 | 365,599 | |||||||||
Huntington Bancshares, Inc., 3.150%, 03/14/21 | 1,500,000 | 1,521,149 | |||||||||
JPMorgan Chase & Co., 5.000%, 07/01/19 (b) | 1,700,000 | 1,695,750 |
Principal | Value(a) | ||||||||||
Morgan Stanley 2.282%, 10/24/23 (b) | $ | 3,585,000 | $ | 3,624,833 | |||||||
3.125%, 07/27/26 | 800,000 | 764,301 | |||||||||
5.450%, 07/15/19 (b) | 1,870,000 | 1,851,300 | |||||||||
5.500%, 07/28/21 | 740,000 | 820,021 | |||||||||
The Goldman Sachs Group, Inc., 1.922%, 04/25/19 (b) | 2,415,000 | 2,432,446 | |||||||||
Wells Fargo & Co., 3.000%, 10/23/26 | 1,100,000 | 1,047,637 | |||||||||
36,709,676 | |||||||||||
Diversified Financial Services (1.7%) | |||||||||||
Block Financial LLC, 4.125%, 10/01/20 | 2,050,000 | 2,092,923 | |||||||||
Raymond James Financial, Inc., 4.950%, 07/15/46 | 2,425,000 | 2,308,588 | |||||||||
The Charles Schwab Corp., 4.625%, 03/01/22 (b) | 2,200,000 | 2,068,000 | |||||||||
6,469,511 | |||||||||||
Insurance (2.3%) | |||||||||||
Liberty Mutual Group, Inc., 6.500%, 05/01/42 (f) | 1,805,000 | 2,140,066 | |||||||||
Peachtree Corners Funding Trust, 3.976%, 02/15/25 (f) | 1,825,000 | 1,780,676 | |||||||||
TIAA Asset Management Finance Co. LLC 2.950%, 11/01/19 (f) | 1,345,000 | 1,368,216 | |||||||||
4.125%, 11/01/24 (f) | 1,150,000 | 1,161,539 | |||||||||
Unum Group, 5.750%, 08/15/42 | 1,975,000 | 2,126,318 | |||||||||
8,576,815 | |||||||||||
Real Estate Investment Trust — Health Care (0.8%) | |||||||||||
Ventas Realty L.P./ Ventas Capital Corp., 2.700%, 04/01/20 | 2,800,000 | 2,816,943 | |||||||||
Real Estate Investment Trust — Single Tenant (1.1%) | |||||||||||
Select Income REIT, 2.850%, 02/01/18 | 4,080,000 | 4,097,434 | |||||||||
Real Estate Investment Trust — Hotels (0.4%) | |||||||||||
Hospitality Properties Trust 4.500%, 03/15/25 | 450,000 | 438,637 | |||||||||
4.650%, 03/15/24 | 920,000 | 916,949 | |||||||||
1,355,586 | |||||||||||
Health Care (2.7%) | |||||||||||
Health Care Providers & Services (1.5%) | |||||||||||
Aetna, Inc., 4.250%, 06/15/36 | 1,000,000 | 1,002,645 | |||||||||
Express Scripts Holding Co., 3.000%, 07/15/23 | 1,700,000 | 1,645,622 | |||||||||
NYU Hospitals Center, 4.428%, 07/01/42 | 1,480,000 | 1,414,696 | |||||||||
Sinai Health System, 3.034%, 01/20/36 | 1,520,000 | 1,476,998 | |||||||||
5,539,961 |
See accompanying notes to financial statements.
49
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Medical Products/Supplies (0.8%) | |||||||||||
Bio-Rad Laboratories, Inc., 4.875%, 12/15/20 | $ | 2,700,000 | $ | 2,885,398 | |||||||
Pharmaceuticals (0.4%) | |||||||||||
Teva Pharmaceutical Finance Netherlands III BV, 2.800%, 07/21/23 (h) | 1,800,000 | 1,703,864 | |||||||||
Industrials (2.4%) | |||||||||||
Aerospace & Defense (0.6%) | |||||||||||
Newell Brands, Inc., 5.000%, 11/15/23 | 2,000,000 | 2,145,026 | |||||||||
Electrical Equipment (0.8%) | |||||||||||
Avnet, Inc., 3.750%, 12/01/21 | 1,220,000 | 1,227,539 | |||||||||
Keysight Technologies, Inc., 3.300%, 10/30/19 | 1,500,000 | 1,523,184 | |||||||||
2,750,723 | |||||||||||
Machinery (0.5%) | |||||||||||
Pentair Finance S.A., 3.625%, 09/15/20 (h) | 1,925,000 | 1,958,593 | |||||||||
Road & Rail (0.5%) | |||||||||||
Kansas City Southern, 4.950%, 08/15/45 | 1,900,000 | 1,927,928 | |||||||||
Information Technology (0.3%) | |||||||||||
Technology Hardware Storage & Peripherals (0.3%) | |||||||||||
Hewlett Packard Enterprise Co., 2.850%, 10/05/18 (f) | 1,175,000 | 1,186,363 | |||||||||
Technology (0.8%) | |||||||||||
Computers (0.8%) | |||||||||||
Diamond 1 Finance Corp./ Diamond 2 Finance Corp. 5.450%, 06/15/23 (f) | 1,790,000 | 1,898,723 | |||||||||
8.350%, 07/15/46 (f) | 980,000 | 1,206,662 | |||||||||
3,105,385 | |||||||||||
Transportation (5.9%) | |||||||||||
Airlines (4.7%) | |||||||||||
Air Canada 2015 -1 Class C Pass Through Trust, 5.000%, 03/15/20 (f) (h) | 2,000,000 | 1,990,000 | |||||||||
America West Airlines 2000-1 Pass Through Trust, 8.057%, 01/02/22 | 541,104 | 612,124 | |||||||||
American Airlines 2013-1 Class B Pass Through Trust, 5.625%, 01/15/21 (f) | 1,930,132 | 1,997,687 | |||||||||
American Airlines 2013-2 Class B Pass Through Trust, 5.600%, 01/15/22 (f) | 1,380,028 | 1,431,779 | |||||||||
American Airlines 2015-1 Class B Pass Through Trust, 3.700%, 11/01/24 | 1,843,592 | 1,797,503 | |||||||||
American Airlines 2016-1 Class B Pass Through Trust, 5.250%, 07/15/25 | 558,207 | 572,162 |
Principal | Value(a) | ||||||||||
British Airways PLC, 5.625%, 12/20/21 (f) | $ | 536,599 | $ | 565,001 | |||||||
Continental Airlines 2009-2 Class A Pass Through Trust, 7.250%, 05/10/21 | 1,343,242 | 1,501,073 | |||||||||
Delta Air Lines 2012-1 Class A Pass Through Trust, 4.750%, 11/07/21 | 560,345 | 585,560 | |||||||||
Delta Air Lines 2012-1 Class B Pass Through Trust, 6.875%, 05/07/19 (f) | 1,420,009 | 1,528,285 | |||||||||
Delta Air Lines 2015-1 Class B Pass Through Trust, 4.250%, 01/30/25 | 1,112,592 | 1,132,062 | |||||||||
United Airlines 2014-1 Class B Pass Through Trust, 4.750%, 10/11/23 | 602,600 | 602,600 | |||||||||
United Airlines 2014-2 Class B Pass Through Trust, 4.625%, 03/03/24 | 2,486,624 | 2,542,573 | |||||||||
Virgin Australia 2013-1B Pass Through Trust, 6.000%, 04/23/22 (f) (h) | 641,598 | 649,176 | |||||||||
17,507,585 | |||||||||||
Transport — Rail (1.2%) | |||||||||||
BNSF Funding Trust I, 6.613%, 12/15/55 (b) | 3,785,000 | 4,333,825 | |||||||||
Utilities (5.9%) | |||||||||||
Electric Companies (0.9%) | |||||||||||
Dominion Gas Holdings LLC, 2.500%, 12/15/19 | 1,270,000 | 1,283,966 | |||||||||
Indianapolis Power & Light Co., 4.700%, 09/01/45 (f) | 1,900,000 | 2,001,977 | |||||||||
3,285,943 | |||||||||||
Electric Utilities (4.2%) | |||||||||||
Cleco Corporate Holdings LLC 3.743%, 05/01/26 (f) | 1,125,000 | 1,107,950 | |||||||||
4.973%, 05/01/46 (f) | 2,000,000 | 2,024,650 | |||||||||
Dominion Resources, Inc. 2.962%, 07/01/19 (j) | 750,000 | 759,305 | |||||||||
5.750%, 10/01/54 (b) | 1,800,000 | 1,845,000 | |||||||||
El Paso Electric Co., 5.000%, 12/01/44 | 1,165,000 | 1,214,763 | |||||||||
Electricite de France SA, 1.341%, 01/20/17 (b) (f) (g) (h) | 1,850,000 | 1,850,150 | |||||||||
Exelon Corp., 5.100%, 06/15/45 | 1,275,000 | 1,355,326 | |||||||||
IPALCO Enterprises, Inc., 3.450%, 07/15/20 | 1,400,000 | 1,424,500 | |||||||||
Pacific Gas & Electric Co., 1.131%, 11/30/17 (b) | 1,400,000 | 1,400,444 | |||||||||
Southern Power Co., 4.950%, 12/15/46 | 2,450,000 | 2,387,373 | |||||||||
15,369,461 |
See accompanying notes to financial statements.
50
SFT Advantus Bond Fund
Investments in Securities – continued
Shares/ Principal | Value(a) | ||||||||||
Gas Utilities (0.8%) | |||||||||||
Brooklyn Union Gas Co., 4.504%, 03/10/46 (f) | $ | 1,300,000 | $ | 1,338,539 | |||||||
Southern Co. Gas Capital Corp., 3.875%, 11/15/25 | 1,650,000 | 1,691,629 | |||||||||
3,030,168 | |||||||||||
Total corporate obligations (cost: $176,239,172) | 178,555,014 | ||||||||||
Total long-term debt securities (cost: $352,661,963) | 358,393,071 | ||||||||||
Short-Term Securities (4.6%) | |||||||||||
Investment Companies (4.6%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% (k) | 17,136,959 | 17,136,959 | |||||||||
Total short-term securities (cost: $17,136,959) | 17,136,959 | ||||||||||
Total investments in securities (cost: $369,798,922) (l) | 375,530,030 | ||||||||||
Liabilities in excess of cash and other assets (-1.4%) | (5,261,615 | ) | |||||||||
Total net assets (100.0%) | $ | 370,268,415 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Variable rate security.
(c) Security is issued on a when-issued or forward commitment basis. As of December 31, 2016 the total cost of investments issued on a when-issued or forward commitment basis was $7,506,073.
(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) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2016, securities with an aggregate market value of $399,563 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 2017 | 3 | Long | $ | (477 | ) | |||||||||||||
5 Year U.S. Treasury Note | March 2017 | 187 | Long | (70,679 | ) | ||||||||||||||
U.S. Long Bond | March 2017 | 14 | Long | (23,559 | ) | ||||||||||||||
10 Year U.S. Treasury Note | March 2017 | 139 | Short | 95,137 | |||||||||||||||
343 | $ | 422 |
(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. This security has been determined to be liquid unless otherwise indicated.
(g) Illiquid security. (See Note 3.)
(h) Foreign security: The Fund held 3.3% of net assets in foreign securities at December 31, 2016.
(i) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(j) Step rate security.
(k) All or a portion of the security segregated to cover when-issued purchase commitments outstanding or extended settlement trades as of December 31, 2016.
(l) At December 31, 2016 the cost of securities for federal income tax purposes was $370,818,524. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 8,190,724 | |||||
Gross unrealized depreciation | (3,479,218 | ) | |||||
Net unrealized appreciation | $ | 4,711,506 |
See accompanying notes to financial statements.
51
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (34.9%) | |||||||||||
Government Obligations (1.2%) | |||||||||||
U.S. Government Agencies and Obligations (1.2%) | |||||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (0.4%) | |||||||||||
3.000%, 09/01/43 | $ | 184,491 | $ | 184,416 | |||||||
3.500%, 10/01/44 | 319,620 | 327,679 | |||||||||
3.500%, 11/01/44 | 319,181 | 327,047 | |||||||||
3.500%, 12/01/44 | 335,838 | 344,124 | |||||||||
1,183,266 | |||||||||||
Federal National Mortgage Association (FNMA) (0.4%) | |||||||||||
3.000%, 04/01/43 | 281,360 | 281,280 | |||||||||
3.000%, 05/01/43 | 127,079 | 127,043 | |||||||||
3.000%, 06/01/43 | 357,446 | 357,344 | |||||||||
3.500%, 08/01/42 | 158,786 | 163,754 | |||||||||
3.500%, 02/01/43 | 173,171 | 178,837 | |||||||||
1,108,258 | |||||||||||
U.S. Treasury (0.4%) | |||||||||||
U.S. Treasury Note, 0.625%, 04/30/18 (b) | 1,000,000 | 995,117 | |||||||||
Total government obligations (cost: $3,264,011) | 3,286,641 | ||||||||||
Asset-Backed Security (0.3%) | |||||||||||
Longtrain Leasing III LLC 2015-1A Class A2, 4.060%, 01/15/45 (c) (d) | 1,000,000 | 934,902 | |||||||||
Total asset-backed securities (cost: $999,574) | 934,902 | ||||||||||
Other Mortgage-Backed Securities (0.4%) | |||||||||||
Commercial Mortgage-Backed Securities (0.4%) | |||||||||||
CSMC Mortgage Trust, 4.138%, 11/15/37 (d) (e) | 1,000,000 | 1,016,059 | |||||||||
Total other mortgage-backed securities (cost: $1,008,613) | 1,016,059 | ||||||||||
Corporate Obligations (33.0%) | |||||||||||
Basic Materials (0.1%) | |||||||||||
Mining (0.1%) | |||||||||||
BHP Billiton Finance USA, Ltd., 2.875%, 02/24/22 (f) | 250,000 | 252,023 | |||||||||
Communications (2.0%) | |||||||||||
Cable/Satellite TV (0.7%) | |||||||||||
Comcast Corp. 4.200%, 08/15/34 | 500,000 | 510,737 | |||||||||
4.650%, 07/15/42 | 250,000 | 260,280 | |||||||||
6.400%, 05/15/38 | 1,000,000 | 1,280,500 | |||||||||
2,051,517 | |||||||||||
Media (0.8%) | |||||||||||
CBS Corp., 3.500%, 01/15/25 | 750,000 | 742,918 | |||||||||
4.000%, 01/15/26 | 250,000 | 254,261 |
Principal | Value(a) | ||||||||||
Time Warner, Inc., 4.850%, 07/15/45 | $ | 1,000,000 | $ | 1,001,089 | |||||||
Viacom, Inc., 5.625%, 09/15/19 | 250,000 | 268,955 | |||||||||
2,267,223 | |||||||||||
Telecommunication (0.4%) | |||||||||||
Crown Castle Towers LLC, 3.663%, 05/15/25 (d) | 1,000,000 | 1,002,710 | |||||||||
Wireless Telecommunication Services (0.1%) | |||||||||||
Rogers Communications, Inc., 4.100%, 10/01/23 (f) | 250,000 | 261,079 | |||||||||
Consumer Cyclical (1.6%) | |||||||||||
Auto/Truck Parts & Equipment-Original (0.5%) | |||||||||||
Ford Motor Co., 5.291%, 12/08/46 | 1,500,000 | 1,519,485 | |||||||||
Home Furnishings (0.4%) | |||||||||||
Harman International Industries, Inc., 4.150%, 05/15/25 | 1,000,000 | 1,032,430 | |||||||||
Retail (0.7%) | |||||||||||
AutoZone, Inc., 3.250%, 04/15/25 | 1,000,000 | 981,441 | |||||||||
Target Corp., 3.500%, 07/01/24 (b) | 750,000 | 779,055 | |||||||||
Wal-Mart Stores, Inc., 1.950%, 12/15/18 | 250,000 | 252,378 | |||||||||
2,012,874 | |||||||||||
Consumer Staples (0.5%) | |||||||||||
Beverages (0.2%) | |||||||||||
The Coca-Cola Co., 3.200%, 11/01/23 (b) | 500,000 | 516,357 | |||||||||
Consumer Products — Miscellaneous (0.3%) | |||||||||||
Johnson (S.C.) & Son, Inc., 3.350%, 09/30/24 (d) | 750,000 | 753,266 | |||||||||
Consumer, Non-cyclical (1.4%) | |||||||||||
Commercial Service — Finance (0.1%) | |||||||||||
Moody's Corp., 4.875%, 02/15/24 | 250,000 | 270,272 | |||||||||
Diagnostic Equipment (0.3%) | |||||||||||
Abbott Laboratories, 4.750%, 11/30/36 | 1,000,000 | 1,016,622 | |||||||||
Drugstore Chains (0.1%) | |||||||||||
CVS Pass-Through Trust, 6.943%, 01/10/30 | 190,492 | 223,427 | |||||||||
Food (0.7%) | |||||||||||
Flowers Foods, Inc., 3.500%, 10/01/26 | 1,000,000 | 951,880 | |||||||||
Tyson Foods, Inc., 5.150%, 08/15/44 | 1,000,000 | 1,036,875 | |||||||||
1,988,755 |
See accompanying notes to financial statements.
52
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Pharmaceuticals (0.2%) | |||||||||||
Novartis Capital Corp., 3.400%, 05/06/24 | $ | 500,000 | $ | 515,251 | |||||||
Energy (4.7%) | |||||||||||
Oil, Gas & Consumable Fuels (2.3%) | |||||||||||
Apache Corp., 3.250%, 04/15/22 | 181,000 | 183,843 | |||||||||
Chevron Corp., 3.191%, 06/24/23 | 250,000 | 256,069 | |||||||||
Ensco PLC, 4.500%, 10/01/24 (f) | 750,000 | 643,125 | |||||||||
EOG Resources, Inc., 2.625%, 03/15/23 | 250,000 | 242,354 | |||||||||
Marathon Petroleum Corp., 3.625%, 09/15/24 | 750,000 | 740,699 | |||||||||
Noble Energy, Inc., 3.900%, 11/15/24 | 1,000,000 | 1,007,621 | |||||||||
Phillips 66, 4.650%, 11/15/34 | 1,000,000 | 1,040,919 | |||||||||
Rowan Cos., Inc., 4.750%, 01/15/24 | 500,000 | 451,250 | |||||||||
Total Capital International SA, 3.750%, 04/10/24 (f) | 750,000 | 785,255 | |||||||||
Valero Energy Corp., 3.650%, 03/15/25 | 1,000,000 | 991,808 | |||||||||
6,342,943 | |||||||||||
Pipelines (2.4%) | |||||||||||
Columbia Pipeline Group, Inc., 4.500%, 06/01/25 | 1,000,000 | 1,050,570 | |||||||||
Enbridge Energy Partners L.P., 6.500%, 04/15/18 | 250,000 | 263,070 | |||||||||
Energy Transfer Partners L.P., 4.900%, 03/15/35 | 1,000,000 | 934,530 | |||||||||
Enterprise Products Operating LLC, 5.750%, 03/01/35 | 250,000 | 273,048 | |||||||||
Florida Gas Transmission Co. LLC, 4.350%, 07/15/25 (d) | 1,000,000 | 1,007,892 | |||||||||
Kinder Morgan, Inc., 5.300%, 12/01/34 | 750,000 | 761,134 | |||||||||
Plains All American Pipeline L.P./PAA Finance Corp., 3.850%, 10/15/23 | 250,000 | 247,167 | |||||||||
Spectra Energy Partners L.P., 2.950%, 09/25/18 | 250,000 | 253,946 | |||||||||
Sunoco Logistics Partners Operations L.P., 4.250%, 04/01/24 | 1,000,000 | 1,007,728 | |||||||||
Tesoro Logistics LP, 5.250%, 01/15/25 | 500,000 | 510,625 | |||||||||
Williams Partners L.P., 4.300%, 03/04/24 | 500,000 | 504,905 | |||||||||
6,814,615 |
Principal | Value(a) | ||||||||||
Financial (9.3%) | |||||||||||
Banks (3.0%) | |||||||||||
Associated Banc-Corp, 4.250%, 01/15/25 | $ | 750,000 | $ | 743,261 | |||||||
Bank of America Corp. 3.950%, 04/21/25 | 1,000,000 | 995,489 | |||||||||
5.700%, 01/24/22 | 250,000 | 280,809 | |||||||||
Bank of Montreal, 2.375%, 01/25/19 (f) | 250,000 | 252,164 | |||||||||
Capital One Financial Corp., 4.750%, 07/15/21 | 250,000 | 270,394 | |||||||||
Citigroup, Inc., 3.300%, 04/27/25 | 750,000 | 734,792 | |||||||||
Credit Suisse Group Funding Guernsey, Ltd., 2.750%, 03/26/20 (f) | 600,000 | 594,792 | |||||||||
Discover Bank 3.100%, 06/04/20 | 1,000,000 | 1,011,986 | |||||||||
4.250%, 03/13/26 | 500,000 | 509,362 | |||||||||
HSBC Bank USA NA, 4.875%, 08/24/20 | 250,000 | 265,031 | |||||||||
JPMorgan Chase & Co. 3.125%, 01/23/25 | 1,000,000 | 977,555 | |||||||||
4.500%, 01/24/22 | 250,000 | 269,608 | |||||||||
KeyBank NA, 3.180%, 05/22/22 | 1,000,000 | 1,010,365 | |||||||||
PNC Bank NA, 3.800%, 07/25/23 | 250,000 | 257,765 | |||||||||
SunTrust Bank, 2.750%, 05/01/23 | 250,000 | 243,828 | |||||||||
8,417,201 | |||||||||||
Diversified Banks (0.4%) | |||||||||||
Bank of America Corp., 4.183%, 11/25/27 | 1,000,000 | 1,000,639 | |||||||||
Diversified Financial Services (0.9%) | |||||||||||
CME Group, Inc., 3.000%, 03/15/25 | 1,000,000 | 999,492 | |||||||||
Discover Financial Services, 3.750%, 03/04/25 | 1,000,000 | 977,661 | |||||||||
TD Ameritrade Holding Corp., 2.950%, 04/01/22 | 700,000 | 708,714 | |||||||||
2,685,867 | |||||||||||
Insurance (2.0%) | |||||||||||
Assured Guaranty US Holdings, Inc., 5.000%, 07/01/24 | 500,000 | 528,059 | |||||||||
First American Financial Corp., 4.600%, 11/15/24 | 750,000 | 741,015 | |||||||||
Liberty Mutual Group, Inc., 4.250%, 06/15/23 (d) | 750,000 | 785,231 | |||||||||
Manulife Financial Corp., 4.150%, 03/04/26 (f) | 750,000 | 783,010 | |||||||||
Metropolitan Life Global Funding I, 3.875%, 04/11/22 (d) | 250,000 | 264,176 | |||||||||
Old Republic International Corp., 4.875%, 10/01/24 | 750,000 | 781,429 |
See accompanying notes to financial statements.
53
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
Investments in Securities – continued
Principal | Value(a) | ||||||||||
StanCorp Financial Group, Inc., 5.000%, 08/15/22 | $ | 750,000 | $ | 787,759 | |||||||
The Hanover Insurance Group, Inc., 4.500%, 04/15/26 | 1,000,000 | 1,004,862 | |||||||||
5,675,541 | |||||||||||
Property / Casualty Insurance (0.4%) | |||||||||||
Arch Capital Finance LLC, 4.011%, 12/15/26 | 1,000,000 | 1,014,391 | |||||||||
Real Estate Investment Trust — Diversified (0.3%) | |||||||||||
Retail Properties of America, Inc., 4.000%, 03/15/25 | 1,000,000 | 957,788 | |||||||||
Real Estate Investment Trust — Health Care (0.3%) | |||||||||||
Healthcare Realty Trust, Inc., 3.875%, 05/01/25 | 1,000,000 | 986,042 | |||||||||
Real Estate Investment Trust — Office Property (0.2%) | |||||||||||
Alexandria Real Estate Equities, Inc., 4.500%, 07/30/29 | 500,000 | 500,281 | |||||||||
Real Estate Investment Trust — Residential (0.3%) | |||||||||||
UDR, Inc., 4.000%, 10/01/25 | 750,000 | 767,695 | |||||||||
Real Estate Investment Trust — Shopping Centers (0.1%) | |||||||||||
Retail Opportunity Investments Partnership L.P., 5.000%, 12/15/23 | 250,000 | 256,091 | |||||||||
Real Estate Investment Trust — Single Tenant (0.4%) | |||||||||||
Select Income REIT, 4.500%, 02/01/25 | 750,000 | 724,846 | |||||||||
Tanger Properties L.P., 3.875%, 12/01/23 | 500,000 | 507,077 | |||||||||
1,231,923 | |||||||||||
Real Estate Investment Trust — Storage (0.2%) | |||||||||||
CubeSmart L.P., 4.375%, 12/15/23 | 500,000 | 523,742 | |||||||||
Specialized REITs (0.8%) | |||||||||||
American Tower Corp., 3.375%, 10/15/26 | 1,000,000 | 946,691 | |||||||||
Essex Portfolio L.P., 3.500%, 04/01/25 | 1,000,000 | 984,904 | |||||||||
HCP, Inc., 4.250%, 11/15/23 | 250,000 | 256,722 | |||||||||
2,188,317 |
Principal | Value(a) | ||||||||||
Health Care (3.4%) | |||||||||||
Biotechnology (0.5%) | |||||||||||
Amgen, Inc., 5.700%, 02/01/19 | $ | 250,000 | $ | 268,703 | |||||||
Celgene Corp., 3.875%, 08/15/25 | 1,000,000 | 1,014,310 | |||||||||
1,283,013 | |||||||||||
Health Care Equipment & Supplies (0.7%) | |||||||||||
St Jude Medical, Inc. 3.875%, 09/15/25 | 750,000 | 755,596 | |||||||||
4.750%, 04/15/43 | 250,000 | 244,700 | |||||||||
Zimmer Biomet Holdings, Inc., 3.550%, 04/01/25 | 1,000,000 | 973,987 | |||||||||
1,974,283 | |||||||||||
Health Care Providers & Services (0.5%) | |||||||||||
Laboratory Corp. of America Holdings, 4.000%, 11/01/23 | 250,000 | 256,136 | |||||||||
UnitedHealth Group, Inc. 2.750%, 02/15/23 | 250,000 | 248,610 | |||||||||
3.750%, 07/15/25 (b) | 1,000,000 | 1,035,234 | |||||||||
1,539,980 | |||||||||||
Pharmaceuticals (1.7%) | |||||||||||
AbbVie, Inc., 3.600%, 05/14/25 | 1,000,000 | 990,488 | |||||||||
Actavis Funding SCS, 3.800%, 03/15/25 (f) | 670,000 | 670,789 | |||||||||
Bristol-Myers Squibb Co., 3.250%, 11/01/23 | 500,000 | 517,372 | |||||||||
Cardinal Health, Inc., 3.750%, 09/15/25 | 1,000,000 | 1,032,827 | |||||||||
Mead Johnson Nutrition Co., 5.900%, 11/01/39 | 1,000,000 | 1,130,097 | |||||||||
Mylan, Inc., 4.200%, 11/29/23 | 500,000 | 500,603 | |||||||||
4,842,176 | |||||||||||
Industrials (3.9%) | |||||||||||
Aerospace & Defense (0.5%) | |||||||||||
Harris Corp., 3.832%, 04/27/25 | 1,000,000 | 1,015,868 | |||||||||
Rockwell Collins, Inc., 3.700%, 12/15/23 (b) | 500,000 | 511,826 | |||||||||
1,527,694 | |||||||||||
Electrical Equipment (0.6%) | |||||||||||
Flex. Ltd., 4.750%, 06/15/25 (f) | 1,000,000 | 1,058,021 | |||||||||
Trimble, Inc., 4.750%, 12/01/24 | 750,000 | 759,505 | |||||||||
1,817,526 | |||||||||||
Electronic Parts Distributions (0.5%) | |||||||||||
Avnet, Inc., 3.750%, 12/01/21 | 1,500,000 | 1,509,269 |
See accompanying notes to financial statements.
54
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Environmental Control (0.4%) | |||||||||||
Waste Management, Inc., 3.900%, 03/01/35 | $ | 1,000,000 | $ | 994,198 | |||||||
Machinery (0.6%) | |||||||||||
Caterpillar Financial Services Corp., 3.750%, 11/24/23 | 750,000 | 787,815 | |||||||||
CNH Industrial Capital LLC, 3.875%, 07/16/18 | 750,000 | 762,188 | |||||||||
1,550,003 | |||||||||||
Miscellaneous Manufacturing (0.5%) | |||||||||||
Textron, Inc. 3.875%, 03/01/25 | 750,000 | 754,123 | |||||||||
4.300%, 03/01/24 | 500,000 | 518,633 | |||||||||
1,272,756 | |||||||||||
Road & Rail (0.1%) | |||||||||||
Kansas City Southern, 4.300%, 05/15/43 | 250,000 | 230,611 | |||||||||
Tools-Hand Held (0.3%) | |||||||||||
Stanley Black & Decker, Inc., 2.451%, 11/17/18 | 800,000 | 806,855 | |||||||||
Transportation (0.1%) | |||||||||||
Burlington Northern Santa Fe LLC, 3.750%, 04/01/24 | 350,000 | 367,943 | |||||||||
Trucking & Leasing (0.3%) | |||||||||||
GATX Corp., 3.250%, 03/30/25 | 1,000,000 | 960,933 | |||||||||
Information Technology (2.0%) | |||||||||||
Communications Equipment (0.5%) | |||||||||||
Juniper Networks, Inc., 4.500%, 03/15/24 | 500,000 | 511,292 | |||||||||
QUALCOMM, Inc., 4.650%, 05/20/35 | 1,000,000 | 1,057,121 | |||||||||
1,568,413 | |||||||||||
Computers (0.4%) | |||||||||||
Apple, Inc., 4.375%, 05/13/45 (b) | 1,000,000 | 1,027,322 | |||||||||
Internet Software & Services (0.3%) | |||||||||||
eBay, Inc., 3.450%, 08/01/24 | 750,000 | 738,304 | |||||||||
IT Services (0.5%) | |||||||||||
The Western Union Co., 3.350%, 05/22/19 | 500,000 | 510,014 | |||||||||
Total System Services, Inc., 4.800%, 04/01/26 | 750,000 | 808,141 | |||||||||
1,318,155 | |||||||||||
Software (0.3%) | |||||||||||
Fiserv, Inc., 3.850%, 06/01/25 | 1,000,000 | 1,017,036 |
Principal | Value(a) | ||||||||||
Materials (1.0%) | |||||||||||
Chemicals (1.0%) | |||||||||||
Potash Corp. of Saskatchewan, Inc., 3.000%, 04/01/25 (f) | $ | 1,000,000 | $ | 942,921 | |||||||
The Dow Chemical Co., 3.500%, 10/01/24 | 750,000 | 756,545 | |||||||||
The Mosaic Co., 5.450%, 11/15/33 | 200,000 | 198,361 | |||||||||
The Valspar Corp., 3.950%, 01/15/26 | 1,000,000 | 999,704 | |||||||||
2,897,531 | |||||||||||
Telecommunication Services (0.7%) | |||||||||||
Diversified Telecommunication Services (0.7%) | |||||||||||
AT&T, Inc. 4.350%, 06/15/45 | 250,000 | 222,758 | |||||||||
4.500%, 05/15/35 | 1,000,000 | 966,166 | |||||||||
4.600%, 02/15/21 | 750,000 | 793,259 | |||||||||
1,982,183 | |||||||||||
Transportation (1.2%) | |||||||||||
Airlines (0.8%) | |||||||||||
American Airlines 2015-2 Class A Pass Through Trust, 4.000%, 09/22/27 | 976,352 | 990,997 | |||||||||
British Airways 2013-1 Class A Pass Through Trust, 4.625%, 06/20/24 (d) | 889,221 | 945,908 | |||||||||
United Airlines 2013-1 Class A Pass Through Trust, 4.300%, 08/15/25 | 225,539 | 232,305 | |||||||||
2,169,210 | |||||||||||
Transport — Rail (0.4%) | |||||||||||
Norfolk Southern Corp., 3.850%, 01/15/24 | 500,000 | 520,639 | |||||||||
Union Pacific Corp., 3.750%, 03/15/24 | 500,000 | 525,148 | |||||||||
1,045,787 | |||||||||||
Utilities (1.2%) | |||||||||||
Electric Utilities (0.4%) | |||||||||||
Entergy Louisiana LLC, 3.300%, 12/01/22 | 250,000 | 251,857 | |||||||||
Oglethorpe Power Corp., 4.250%, 04/01/46 | 800,000 | 764,806 | |||||||||
PPL Capital Funding, Inc., 3.400%, 06/01/23 | 250,000 | 251,703 | |||||||||
1,268,366 | |||||||||||
Electric — Integrated (0.1%) | |||||||||||
Berkshire Hathaway Energy Co., 3.750%, 11/15/23 | 250,000 | 261,426 | |||||||||
Multi-Utilities (0.5%) | |||||||||||
Dominion Gas Holdings LLC, 3.550%, 11/01/23 | 250,000 | 252,981 | |||||||||
National Fuel Gas Co., 5.200%, 07/15/25 | 1,000,000 | 1,038,597 | |||||||||
1,291,578 |
See accompanying notes to financial statements.
55
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
Investments in Securities – continued
Shares/ Contracts | Principal/ Value(a) | ||||||||||
Water Utilities (0.2%) | |||||||||||
Aquarion Co., 4.000%, 08/15/24 (c) (d) | $ | 500,000 | $ | 499,371 | |||||||
Total corporate obligations (cost: $92,399,897) | 92,808,289 | ||||||||||
Total long-term debt securities (cost: $97,672,095) | 98,045,891 | ||||||||||
Purchased Options (0.0%) | |||||||||||
Put Option Purchased (0.0%) | |||||||||||
SPDR S&P 500 ETF Trust, $180.00, 02/17/17 | 261 | 3,393 | |||||||||
Call Option Purchased (0.0%) | |||||||||||
CBOE SPX Volatility Index, $28.00, 02/15/17 | 450 | 18,000 | |||||||||
Total purchased options (cost: $53,409) | 21,393 | ||||||||||
Mutual Funds (50.5%) | |||||||||||
Investment Companies (50.5%) | |||||||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 44,500 | 5,214,510 | |||||||||
SFT Advantus Index 500 Fund (g) | 14,224,618 | 124,400,586 | |||||||||
SPDR S&P 500 ETF Trust (b) | 36,170 | 8,085,080 | |||||||||
Vanguard S&P 500 ETF | 20,175 | 4,142,129 | |||||||||
Total mutual funds (cost: $123,653,386) | 141,842,305 | ||||||||||
Short-Term Securities (14.3%) | |||||||||||
Investment Companies (14.3%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 40,259,436 | 40,259,436 | |||||||||
Total short-term securities (cost: $40,259,436) | 40,259,436 | ||||||||||
Total investments in securities (cost: $261,638,326) (h) | 280,169,025 | ||||||||||
Cash and other assets in excess of liabilities (0.3%) | 831,048 | ||||||||||
Total net assets (100.0%) | $ | 281,000,073 |
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 or options contracts.
Holdings of Open Futures Contracts
On December 31, 2016, securities with an aggregate market value of $9,274,045 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 2017 | 200 | Short | $ | 136,888 | ||||||||||||||
S&P 500® Index Future | March 2017 | 153 | Long | 1,371,566 | |||||||||||||||
353 | $ | 1,508,454 |
(c) Illiquid security. (See Note 3.)
(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. This security has been determined to be liquid unless otherwise indicated.
(e) Variable rate security.
(f) Foreign security: The Fund held 2.2% of net assets in foreign securities at December 31, 2016.
(g) Affiliated security.
(h) At December 31, 2016 the cost of securities for federal income tax purposes was $261,663,935. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 19,558,209 | |||||
Gross unrealized depreciation | (1,053,119 | ) | |||||
Net unrealized appreciation | $ | 18,505,090 |
Holdings of Open Written Options Contracts
Call Options Contracts | Contracts | Expiration Date | Exercise Price | Value(a) | |||||||||||||||
SPDR S&P 500 ETF Trust | 261 | February 2017 | 205.00 | $ | (19,706 | ) |
See accompanying notes to financial statements.
56
SFT Advantus Government Money Market Fund
(formerly SFT Advantus Money Market Fund)
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
U.S. Government Obligations (97.6%) | |||||||||||
Discount Notes (61.7%) | |||||||||||
Federal Farm Credit Bank, 0.426%, 01/26/17 (b) | $ | 5,000,000 | $ | 4,998,542 | |||||||
Federal Home Loan Bank 0.375%, 01/05/17 (b) | 2,000,000 | 1,999,918 | |||||||||
0.375%, 01/09/17 (b) | 9,600,000 | 9,599,211 | |||||||||
0.410%, 01/13/17 (b) | 4,600,000 | 4,599,380 | |||||||||
0.426%, 01/06/17 (b) | 4,700,000 | 4,699,726 | |||||||||
0.457%, 01/20/17 (b) | 4,600,000 | 4,598,907 | |||||||||
0.467%, 01/11/17 (b) | 7,000,000 | 6,999,106 | |||||||||
0.497%, 02/08/17 (b) | 1,500,000 | 1,499,224 | |||||||||
0.517%, 02/03/17 (b) | 5,000,000 | 4,997,662 | |||||||||
0.641%, 05/19/17 (b) | 3,000,000 | 2,992,755 | |||||||||
Federal Home Loan Mortgage Corporation, 0.406%, 01/18/17 (b) | 1,000,000 | 999,811 | |||||||||
47,984,242 | |||||||||||
U.S. Treasury (35.9%) | |||||||||||
U.S. Treasury Note 0.633%, 07/31/17 (c) | 9,000,000 | 9,003,964 | |||||||||
0.640%, 01/31/17 (c) | 5,300,000 | 5,300,811 | |||||||||
0.724%, 10/31/17 (c) | 13,600,000 | 13,619,742 | |||||||||
27,924,517 | |||||||||||
Total U.S. government obligations (cost: $75,908,759) | 75,908,759 |
Shares | Value(a) | ||||||||||
Investment Companies (2.8%) | |||||||||||
State Street Institutional US Government Money Market Fund, current rate 0.420% | 123,393 | $ | 123,393 | ||||||||
STIT-Government & Agency Portfolio, current rate 0.430% | 2,035,000 | 2,035,000 | |||||||||
Total investment companies (cost: $2,158,393) | 2,158,393 | ||||||||||
Total investments in securities (cost: $78,067,152) (d) | 78,067,152 | ||||||||||
Liabilities in excess of cash and other assets (-0.4%) | (272,358 | ) | |||||||||
Total net assets (100.0%) | $ | 77,794,794 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Rate represents annualized yield at date of purchase.
(c) Variable rate security.
(d) Also represents the cost of securities for federal income tax purposes at December 31, 2016.
See accompanying notes to financial statements.
57
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (92.2%) | |||||||||||
Consumer Discretionary (10.4%) | |||||||||||
Auto Components (0.5%) | |||||||||||
Dana, Inc. | 17,875 | $ | 339,267 | ||||||||
Gentex Corp. | 35,608 | 701,122 | |||||||||
1,040,389 | |||||||||||
Automobiles (0.3%) | |||||||||||
Thor Industries, Inc. | 5,947 | 594,997 | |||||||||
Distributors (0.2%) | |||||||||||
Pool Corp. | 5,095 | 531,612 | |||||||||
Diversified Consumer Services (0.6%) | |||||||||||
DeVry Education Group, Inc. | 7,082 | 220,958 | |||||||||
Graham Holdings Co. – Class B | 618 | 316,385 | |||||||||
Service Corp. International/US | 23,674 | 672,342 | |||||||||
Sotheby's (b) | 5,727 | 228,278 | |||||||||
1,437,963 | |||||||||||
Hotels, Restaurants & Leisure (2.5%) | |||||||||||
Brinker International, Inc. | 6,171 | 305,650 | |||||||||
Buffalo Wild Wings, Inc. (b) | 2,280 | 352,032 | |||||||||
Churchill Downs, Inc. | 1,556 | 234,100 | |||||||||
Cracker Barrel Old Country Store, Inc. | 2,999 | 500,773 | |||||||||
Domino's Pizza, Inc. | 5,976 | 951,618 | |||||||||
Dunkin' Brands Group, Inc. | 11,400 | 597,816 | |||||||||
International Speedway Corp. – Class A | 3,215 | 118,312 | |||||||||
Jack in the Box, Inc. | 4,041 | 451,137 | |||||||||
Panera Bread Co. – Class A (b) | 2,761 | 566,253 | |||||||||
Papa John's International, Inc. | 3,301 | 282,500 | |||||||||
Texas Roadhouse, Inc. | 7,975 | 384,714 | |||||||||
The Cheesecake Factory, Inc. | 5,404 | 323,592 | |||||||||
The Wendy's Co. | 24,916 | 336,864 | |||||||||
5,405,361 | |||||||||||
Household Durables (1.4%) | |||||||||||
CalAtlantic Group, Inc. | 9,031 | 307,144 | |||||||||
Helen of Troy, Ltd. (b) | 3,464 | 292,535 | |||||||||
KB Home | 10,339 | 163,460 | |||||||||
NVR, Inc. (b) | 447 | 746,043 | |||||||||
Tempur Sealy International, Inc. (b) | 6,185 | 422,312 | |||||||||
Toll Brothers, Inc. (b) | 18,547 | 574,957 | |||||||||
TRI Pointe Group, Inc. (b) | 18,103 | 207,822 | |||||||||
Tupperware Brands Corp. | 6,283 | 330,612 | |||||||||
3,044,885 | |||||||||||
Internet & Direct Marketing Retail (0.1%) | |||||||||||
HSN, Inc. | 3,862 | 132,467 | |||||||||
Leisure Equipment & Products (0.7%) | |||||||||||
Brunswick Corp. | 11,147 | 607,957 | |||||||||
Polaris Industries, Inc. | 7,405 | 610,098 | |||||||||
Vista Outdoor, Inc. (b) | 7,255 | 267,710 | |||||||||
1,485,765 |
Shares | Value(a) | ||||||||||
Media (1.2%) | |||||||||||
AMC Networks, Inc. – Class A (b) | 7,292 | $ | 381,663 | ||||||||
Cable One, Inc. | 628 | 390,447 | |||||||||
Cinemark Holdings, Inc. | 13,142 | 504,127 | |||||||||
John Wiley & Sons, Inc. – Class A | 5,584 | 304,328 | |||||||||
Live Nation Entertainment, Inc. (b) | 16,434 | 437,144 | |||||||||
Meredith Corp. | 4,447 | 263,040 | |||||||||
The New York Times Co. – Class A | 15,139 | 201,349 | |||||||||
Time, Inc. | 12,311 | 219,751 | |||||||||
2,701,849 | |||||||||||
Multiline Retail (0.3%) | |||||||||||
Big Lots, Inc. | 5,532 | 277,762 | |||||||||
JC Penney Co., Inc. (b) | 38,317 | 318,414 | |||||||||
596,176 | |||||||||||
Specialty Retail (2.0%) | |||||||||||
Aaron's, Inc. | 7,841 | 250,834 | |||||||||
American Eagle Outfitters, Inc. | 21,248 | 322,332 | |||||||||
Cabela's, Inc. (b) | 6,383 | 373,725 | |||||||||
Chico's FAS, Inc. | 15,960 | 229,664 | |||||||||
CST Brands, Inc. | 9,407 | 452,947 | |||||||||
Dick's Sporting Goods, Inc. | 10,929 | 580,330 | |||||||||
GameStop Corp. – Class A | 12,589 | 317,998 | |||||||||
Kate Spade & Co. (b) | 15,924 | 297,301 | |||||||||
Murphy USA, Inc. (b) | 4,485 | 275,693 | |||||||||
Office Depot, Inc. | 65,670 | 296,828 | |||||||||
Restoration Hardware Holdings, Inc. (b) | 4,756 | 146,009 | |||||||||
Sally Beauty Holdings, Inc. (b) | 17,900 | 472,918 | |||||||||
Williams-Sonoma, Inc. | 10,122 | 489,804 | |||||||||
4,506,383 | |||||||||||
Textiles, Apparel & Luxury Goods (0.6%) | |||||||||||
Carter's, Inc. | 6,049 | 522,573 | |||||||||
Deckers Outdoor Corp. (b) | 3,987 | 220,840 | |||||||||
Fossil Group, Inc. (b) | 5,204 | 134,576 | |||||||||
Skechers U.S.A., Inc. – Class A (b) | 16,571 | 407,315 | |||||||||
1,285,304 | |||||||||||
Consumer Staples (4.0%) | |||||||||||
Beverages (0.1%) | |||||||||||
The Boston Beer Co., Inc. – Class A (b) | 1,130 | 191,930 | |||||||||
Food & Staples Retailing (0.5%) | |||||||||||
Casey's General Stores, Inc. | 4,829 | 574,071 | |||||||||
Sprouts Farmers Market, Inc. (b) | 16,628 | 314,602 | |||||||||
United Natural Foods, Inc. (b) | 6,276 | 299,491 | |||||||||
1,188,164 |
See accompanying notes to financial statements.
58
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Food Products (2.8%) | |||||||||||
Dean Foods Co. | 11,247 | $ | 244,960 | ||||||||
Flowers Foods, Inc. | 22,709 | 453,499 | |||||||||
Ingredion, Inc. | 8,998 | 1,124,390 | |||||||||
Lamb Weston Holdings, Inc. (b) | 17,238 | 652,458 | |||||||||
Lancaster Colony Corp. | 2,457 | 347,395 | |||||||||
Post Holdings, Inc. (b) | 8,063 | 648,185 | |||||||||
Snyder's-Lance, Inc. | 10,636 | 407,784 | |||||||||
The Hain Celestial Group, Inc. (b) | 12,857 | 501,809 | |||||||||
Tootsie Roll Industries, Inc. | 2,074 | 82,441 | |||||||||
TreeHouse Foods, Inc. (b) | 7,050 | 508,939 | |||||||||
WhiteWave Foods Co. – Class A (b) | 22,026 | 1,224,646 | |||||||||
6,196,506 | |||||||||||
Household Products (0.2%) | |||||||||||
Energizer Holdings, Inc. | 7,673 | 342,293 | |||||||||
Personal Products (0.4%) | |||||||||||
Avon Products, Inc. (b) | 54,376 | 274,055 | |||||||||
Edgewell Personal Care Co. (b) | 7,189 | 524,725 | |||||||||
798,780 | |||||||||||
Energy (3.3%) | |||||||||||
Energy Equipment & Services (1.5%) | |||||||||||
Diamond Offshore Drilling, Inc. (b) | 8,012 | 141,812 | |||||||||
Dril-Quip, Inc. (b) | 4,670 | 280,434 | |||||||||
Ensco PLC – Class A (c) | 37,673 | 366,182 | |||||||||
Nabors Industries, Ltd. | 35,225 | 577,690 | |||||||||
Noble Corp. PLC (c) | 30,230 | 178,962 | |||||||||
Oceaneering International, Inc. | 12,188 | 343,823 | |||||||||
Oil States International, Inc. (b) | 6,385 | 249,015 | |||||||||
Patterson-UTI Energy, Inc. | 18,407 | 495,516 | |||||||||
Rowan Cos., PLC – Class A (b) | 15,590 | 294,495 | |||||||||
Superior Energy Services, Inc. | 18,859 | 318,340 | |||||||||
3,246,269 | |||||||||||
Oil, Gas & Consumable Fuels (1.8%) | |||||||||||
Consol Energy, Inc. | 21,957 | 400,276 | |||||||||
Denbury Resources, Inc. (b) | 49,515 | 182,215 | |||||||||
Gulfport Energy Corp. (b) | 19,272 | 417,046 | |||||||||
HollyFrontier Corp. | 21,850 | 715,806 | |||||||||
QEP Resources, Inc. (b) | 29,773 | 548,121 | |||||||||
SM Energy Co. | 11,977 | 412,967 | |||||||||
Western Refining, Inc. | 9,837 | 372,331 | |||||||||
World Fuel Services Corp. | 8,757 | 402,034 | |||||||||
WPX Energy, Inc. (b) | 42,811 | 623,756 | |||||||||
4,074,552 | |||||||||||
Financial (15.8%) | |||||||||||
Capital Markets (3.4%) | |||||||||||
CBOE Holdings, Inc. | 10,102 | 746,437 | |||||||||
Eaton Vance Corp. | 14,097 | 590,382 | |||||||||
Factset Research Systems, Inc. | 4,951 | 809,142 |
Shares | Value(a) | ||||||||||
Federated Investors, Inc. – Class B | 11,559 | $ | 326,889 | ||||||||
Janus Capital Group, Inc. | 17,703 | 234,919 | |||||||||
Legg Mason, Inc. | 11,170 | 334,095 | |||||||||
MarketAxess Holdings, Inc. | 4,649 | 683,031 | |||||||||
MSCI, Inc. | 11,698 | 921,568 | |||||||||
Raymond James Financial, Inc. | 15,703 | 1,087,747 | |||||||||
SEI Investments Co. | 16,703 | 824,460 | |||||||||
Stifel Financial Corp. (b) | 8,234 | 411,288 | |||||||||
Waddell & Reed Financial, Inc. – Class A | 10,292 | 200,797 | |||||||||
WisdomTree Investments, Inc. | 14,239 | 158,622 | |||||||||
7,329,377 | |||||||||||
Commercial Banks (6.7%) | |||||||||||
Associated Banc-Corp. | 18,403 | 454,554 | |||||||||
BancorpSouth, Inc. | 10,592 | 328,882 | |||||||||
Bank of Hawaii Corp. | 5,212 | 462,252 | |||||||||
Bank of the Ozarks, Inc. | 11,292 | 593,846 | |||||||||
Cathay General Bancorp | 9,216 | 350,485 | |||||||||
Chemical Financial Corp. | 8,767 | 474,908 | |||||||||
Commerce Bancshares, Inc. | 10,840 | 626,649 | |||||||||
Cullen/Frost Bankers, Inc. | 6,964 | 614,434 | |||||||||
East West Bancorp, Inc. | 17,916 | 910,670 | |||||||||
First Horizon National Corp. | 28,987 | 580,030 | |||||||||
FNB Corp. | 25,935 | 415,738 | |||||||||
Fulton Financial Corp. | 21,535 | 404,858 | |||||||||
Hancock Holding Co. | 10,361 | 446,559 | |||||||||
International Bancshares Corp. | 7,214 | 294,331 | |||||||||
MB Financial, Inc. | 8,829 | 416,994 | |||||||||
PacWest Bancorp | 14,949 | 813,824 | |||||||||
PrivateBancorp, Inc. | 9,903 | 536,644 | |||||||||
Prosperity Bancshares, Inc. | 8,635 | 619,820 | |||||||||
Signature Bank (b) | 6,672 | 1,002,134 | |||||||||
SVB Financial Group (b) | 6,474 | 1,111,327 | |||||||||
Synovus Financial Corp. | 15,199 | 624,375 | |||||||||
TCF Financial Corp. | 21,252 | 416,327 | |||||||||
Trustmark Corp. | 8,405 | 299,638 | |||||||||
UMB Financial Corp. | 5,420 | 417,990 | |||||||||
Umpqua Holdings Corp. | 27,368 | 513,971 | |||||||||
Valley National Bancorp | 31,634 | 368,220 | |||||||||
Webster Financial Corp. | 11,400 | 618,792 | |||||||||
14,718,252 | |||||||||||
Consumer Finance (0.3%) | |||||||||||
SLM Corp. (b) | 53,227 | 586,562 | |||||||||
Insurance (4.8%) | |||||||||||
Alleghany Corp. (b) | 1,969 | 1,197,388 | |||||||||
American Financial Group, Inc. | 9,066 | 798,896 | |||||||||
Aspen Insurance Holdings, Ltd. (c) | 7,484 | 411,620 | |||||||||
Brown & Brown, Inc. | 14,289 | 641,005 | |||||||||
CNO Financial Group, Inc. | 21,569 | 413,046 | |||||||||
Endurance Specialty Holdings, Ltd. (c) | 7,982 | 737,537 | |||||||||
Everest Re Group, Ltd. (c) | 5,127 | 1,109,483 | |||||||||
First American Financial Corp. | 13,649 | 499,963 |
See accompanying notes to financial statements.
59
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Genworth Financial, Inc. – Class A (b) | 61,940 | $ | 235,991 | ||||||||
Kemper Corp. | 6,043 | 267,705 | |||||||||
Mercury General Corp. | 4,533 | 272,932 | |||||||||
Old Republic International Corp. | 30,352 | 576,688 | |||||||||
Primerica, Inc. | 5,597 | 387,033 | |||||||||
Reinsurance Group of America, Inc. | 7,980 | 1,004,123 | |||||||||
RenaissanceRe Holdings, Ltd. (c) | 5,116 | 696,901 | |||||||||
The Hanover Insurance Group, Inc. | 5,202 | 473,434 | |||||||||
WR Berkley Corp. | 12,067 | 802,576 | |||||||||
10,526,321 | |||||||||||
Thrifts & Mortgage Finance (0.6%) | |||||||||||
New York Community Bancorp, Inc. | 60,534 | 963,096 | |||||||||
Washington Federal, Inc. | 11,071 | 380,289 | |||||||||
1,343,385 | |||||||||||
Health Care (7.0%) | |||||||||||
Biotechnology (0.4%) | |||||||||||
United Therapeutics Corp. (b) | 5,291 | 758,888 | |||||||||
Health Care Equipment & Supplies (3.5%) | |||||||||||
ABIOMED, Inc. (b) | 5,014 | 564,977 | |||||||||
Align Technology, Inc. (b) | 9,310 | 894,970 | |||||||||
Globus Medical, Inc. (b) | 8,939 | 221,777 | |||||||||
Halyard Health, Inc. (b) | 5,800 | 214,484 | |||||||||
Hill-Rom Holdings, Inc. | 7,432 | 417,232 | |||||||||
IDEXX Laboratories, Inc. (b) | 11,143 | 1,306,740 | |||||||||
LivaNova PLC (b) (c) | 5,375 | 241,714 | |||||||||
NuVasive, Inc. (b) | 6,257 | 421,471 | |||||||||
ResMed, Inc. | 17,520 | 1,087,116 | |||||||||
STERIS PLC (c) | 10,515 | 708,606 | |||||||||
Teleflex, Inc. | 5,480 | 883,102 | |||||||||
West Pharmaceutical Services, Inc. | 9,095 | 771,529 | |||||||||
7,733,718 | |||||||||||
Health Care Providers & Services (1.7%) | |||||||||||
HealthSouth Corp. | 11,160 | 460,238 | |||||||||
LifePoint Health, Inc. (b) | 4,908 | 278,774 | |||||||||
Mednax, Inc. (b) | 11,512 | 767,390 | |||||||||
Molina Healthcare, Inc. (b) | 5,296 | 287,361 | |||||||||
Owens & Minor, Inc. | 7,644 | 269,757 | |||||||||
Tenet Healthcare Corp. (b) | 9,906 | 147,005 | |||||||||
VCA, Inc. (b) | 10,084 | 692,267 | |||||||||
WellCare Health Plans, Inc. (b) | 5,504 | 754,488 | |||||||||
3,657,280 | |||||||||||
Health Care Technology (0.1%) | |||||||||||
Allscripts Healthcare Solutions, Inc. (b) | 23,003 | 234,861 | |||||||||
Life Sciences Tools & Services (0.8%) | |||||||||||
Bio-Rad Laboratories, Inc. – Class A (b) | 2,627 | 478,849 | |||||||||
Bio-Techne Corp. | 4,637 | 476,823 |
Shares | Value(a) | ||||||||||
Charles River Laboratories International, Inc. (b) | 5,882 | $ | 448,150 | ||||||||
PAREXEL International Corp. (b) | 6,620 | 435,066 | |||||||||
1,838,888 | |||||||||||
Pharmaceuticals (0.5%) | |||||||||||
Akorn, Inc. (b) | 10,895 | 237,838 | |||||||||
Catalent, Inc. (b) | 15,504 | 417,988 | |||||||||
Prestige Brands Holdings, Inc. (b) | 6,578 | 342,714 | |||||||||
998,540 | |||||||||||
Industrials (13.9%) | |||||||||||
Aerospace & Defense (2.0%) | |||||||||||
BE Aerospace, Inc. | 12,627 | 760,019 | |||||||||
Curtiss-Wright Corp. | 5,497 | 540,685 | |||||||||
Esterline Technologies Corp. (b) | 3,675 | 327,810 | |||||||||
Huntington Ingalls Industries, Inc. | 5,794 | 1,067,197 | |||||||||
KLX, Inc. (b) | 6,548 | 295,380 | |||||||||
Orbital ATK, Inc. | 7,277 | 638,411 | |||||||||
Teledyne Technologies, Inc. (b) | 4,342 | 534,066 | |||||||||
Triumph Group, Inc. | 6,158 | 163,187 | |||||||||
4,326,755 | |||||||||||
Airlines (0.4%) | |||||||||||
JetBlue Airways Corp. (b) | 40,235 | 902,069 | |||||||||
Building Products (0.7%) | |||||||||||
AO Smith Corp. | 18,356 | 869,157 | |||||||||
Lennox International, Inc. | 4,800 | 735,216 | |||||||||
1,604,373 | |||||||||||
Commercial Services & Supplies (1.3%) | |||||||||||
Clean Harbors, Inc. (b) | 6,491 | 361,224 | |||||||||
Copart, Inc. (b) | 12,674 | 702,266 | |||||||||
Deluxe Corp. | 6,039 | 432,453 | |||||||||
Herman Miller, Inc. | 7,454 | 254,927 | |||||||||
HNI Corp. | 5,535 | 309,517 | |||||||||
MSA Safety, Inc. | 3,877 | 268,793 | |||||||||
Rollins, Inc. | 11,912 | 402,387 | |||||||||
2,731,567 | |||||||||||
Construction & Engineering (1.1%) | |||||||||||
AECOM (b) | 19,133 | 695,676 | |||||||||
Dycom Industries, Inc. (b) | 3,910 | 313,934 | |||||||||
EMCOR Group, Inc. | 7,537 | 533,318 | |||||||||
Granite Construction, Inc. | 4,922 | 270,710 | |||||||||
KBR, Inc. | 17,731 | 295,931 | |||||||||
Valmont Industries, Inc. | 2,747 | 387,052 | |||||||||
2,496,621 | |||||||||||
Electrical Equipment (1.1%) | |||||||||||
Belden, Inc. | 5,237 | 391,570 | |||||||||
EnerSys | 5,397 | 421,506 | |||||||||
Hubbell, Inc. | 6,398 | 746,646 | |||||||||
Regal Beloit Corp. | 5,563 | 385,238 | |||||||||
Woodward, Inc. | 6,893 | 475,962 | |||||||||
2,420,922 |
See accompanying notes to financial statements.
60
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Industrial Conglomerates (0.4%) | |||||||||||
Carlisle Cos., Inc. | 8,016 | $ | 884,085 | ||||||||
Machinery (4.4%) | |||||||||||
AGCO Corp. | 8,293 | 479,833 | |||||||||
CLARCOR, Inc. | 6,042 | 498,284 | |||||||||
Crane Co. | 6,196 | 446,856 | |||||||||
Donaldson Co., Inc. | 16,412 | 690,617 | |||||||||
Graco, Inc. | 6,920 | 574,983 | |||||||||
IDEX Corp. | 9,475 | 853,318 | |||||||||
ITT, Inc. | 10,961 | 422,766 | |||||||||
Joy Global, Inc. | 12,200 | 341,600 | |||||||||
Kennametal, Inc. | 9,934 | 310,537 | |||||||||
Lincoln Electric Holdings, Inc. | 7,695 | 589,976 | |||||||||
Nordson Corp. | 6,610 | 740,650 | |||||||||
Oshkosh Corp. | 9,254 | 597,901 | |||||||||
Terex Corp. | 13,125 | 413,831 | |||||||||
The Toro Co. | 13,585 | 760,081 | |||||||||
Timken Co. | 8,704 | 345,549 | |||||||||
Trinity Industries, Inc. | 18,923 | 525,302 | |||||||||
Wabtec Corp. | 11,070 | 919,031 | |||||||||
9,511,115 | |||||||||||
Marine (0.2%) | |||||||||||
Kirby Corp. (b) | 6,693 | 445,084 | |||||||||
Professional Services (0.6%) | |||||||||||
CEB, Inc. | 4,005 | 242,703 | |||||||||
FTI Consulting, Inc. (b) | 5,266 | 237,391 | |||||||||
Manpowergroup, Inc. | 8,241 | 732,378 | |||||||||
1,212,472 | |||||||||||
Road & Rail (1.0%) | |||||||||||
Avis Budget Group, Inc. (b) | 10,923 | 400,655 | |||||||||
Genesee & Wyoming, Inc. – Class A (b) | 7,641 | 530,362 | |||||||||
Landstar System, Inc. | 5,126 | 437,248 | |||||||||
Old Dominion Freight Line, Inc. (b) | 8,606 | 738,309 | |||||||||
Werner Enterprises, Inc. | 5,552 | 149,626 | |||||||||
2,256,200 | |||||||||||
Trading Companies & Distributors (0.7%) | |||||||||||
GATX Corp. | 4,958 | 305,313 | |||||||||
MSC Industrial Direct Co. – Class A | 5,549 | 512,672 | |||||||||
Now, Inc. (b) | 13,357 | 273,418 | |||||||||
Watsco, Inc. | 3,223 | 477,391 | |||||||||
1,568,794 | |||||||||||
Information Technology (16.1%) | |||||||||||
Communications Equipment (1.4%) | |||||||||||
ARRIS International PLC (b) | 23,698 | 714,021 | |||||||||
Brocade Communications Systems, Inc. | 50,002 | 624,525 | |||||||||
Ciena Corp. (b) | 17,318 | 422,732 | |||||||||
InterDigital, Inc. | 4,187 | 382,482 | |||||||||
NetScout Systems, Inc. (b) | 11,381 | 358,502 | |||||||||
Plantronics, Inc. | 4,137 | 226,542 | |||||||||
ViaSat, Inc. (b) | 6,401 | 423,874 | |||||||||
3,152,678 |
Shares | Value(a) | ||||||||||
Computers & Peripherals (0.5%) | |||||||||||
3D Systems Corp. (b) | 13,266 | $ | 176,305 | ||||||||
Diebold Nixdorf, Inc. | 9,338 | 234,851 | |||||||||
NCR Corp. (b) | 15,423 | 625,557 | |||||||||
1,036,713 | |||||||||||
Electronic Equipment, Instruments & Components (3.2%) | |||||||||||
Arrow Electronics, Inc. (b) | 11,098 | 791,288 | |||||||||
Avnet, Inc. | 15,862 | 755,190 | |||||||||
Cognex Corp. | 10,647 | 677,362 | |||||||||
IPG Photonics Corp. (b) | 4,535 | 447,650 | |||||||||
Jabil Circuit, Inc. | 23,064 | 545,925 | |||||||||
Keysight Technologies, Inc. (b) | 21,120 | 772,358 | |||||||||
Knowles Corp. (b) | 11,027 | 184,261 | |||||||||
Littelfuse, Inc. | 2,842 | 431,330 | |||||||||
National Instruments Corp. | 13,138 | 404,913 | |||||||||
SYNNEX Corp. | 3,610 | 436,882 | |||||||||
Tech Data Corp. (b) | 4,377 | 370,644 | |||||||||
Trimble, Inc. (b) | 31,143 | 938,962 | |||||||||
Vishay Intertechnology, Inc. | 16,635 | 269,487 | |||||||||
7,026,252 | |||||||||||
Internet Software & Services (0.4%) | |||||||||||
comScore, Inc. (b) | 5,613 | 177,258 | |||||||||
j2 Global, Inc. | 5,967 | 488,101 | |||||||||
WebMD Health Corp. (b) | 4,615 | 228,766 | |||||||||
894,125 | |||||||||||
IT Services (3.6%) | |||||||||||
Acxiom Corp. (b) | 9,628 | 258,030 | |||||||||
Broadridge Financial Solutions, Inc. | 14,799 | 981,174 | |||||||||
Computer Sciences Corp. | 17,501 | 1,039,909 | |||||||||
Convergys Corp. | 11,853 | 291,110 | |||||||||
CoreLogic, Inc. (b) | 10,661 | 392,645 | |||||||||
DST Systems, Inc. | 3,970 | 425,385 | |||||||||
Gartner, Inc. – Class A (b) | 10,267 | 1,037,686 | |||||||||
Jack Henry & Associates, Inc. | 9,706 | 861,699 | |||||||||
Leidos Holdings, Inc. | 17,753 | 907,888 | |||||||||
MAXIMUS, Inc. | 8,050 | 449,109 | |||||||||
NeuStar, Inc. – Class A (b) | 6,782 | 226,519 | |||||||||
Science Applications International Corp. | 5,571 | 472,421 | |||||||||
WEX, Inc. (b) | 4,786 | 534,118 | |||||||||
7,877,693 | |||||||||||
Office Electronics (0.3%) | |||||||||||
Zebra Technologies Corp. – Class A (b) | 6,561 | 562,671 | |||||||||
Semiconductors & Semiconductor Equipment (2.7%) | |||||||||||
Advanced Micro Devices, Inc. (b) | 94,460 | 1,071,176 | |||||||||
Cirrus Logic, Inc. (b) | 7,918 | 447,684 | |||||||||
Cree, Inc. (b) | 12,391 | 326,998 | |||||||||
Cypress Semiconductor Corp. | 39,918 | 456,662 | |||||||||
Integrated Device Technology, Inc. (b) | 16,659 | 392,486 | |||||||||
Intersil Corp. – Class A | 17,012 | 379,368 | |||||||||
Microsemi Corp. (b) | 14,249 | 769,019 |
See accompanying notes to financial statements.
61
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Monolithic Power Systems, Inc. | 4,650 | $ | 380,975 | ||||||||
Silicon Laboratories, Inc. (b) | 5,188 | 337,220 | |||||||||
Synaptics, Inc. (b) | 4,252 | 227,822 | |||||||||
Teradyne, Inc. | 25,008 | 635,203 | |||||||||
Versum Materials, Inc. (b) | 13,506 | 379,113 | |||||||||
5,803,726 | |||||||||||
Software (3.9%) | |||||||||||
ACI Worldwide, Inc. (b) | 14,577 | 264,573 | |||||||||
ANSYS, Inc. (b) | 10,762 | 995,377 | |||||||||
Cadence Design Systems, Inc. (b) | 35,581 | 897,353 | |||||||||
CDK Global, Inc. | 18,580 | 1,109,040 | |||||||||
CommVault Systems, Inc. (b) | 5,235 | 269,079 | |||||||||
Fair Isaac Corp. | 3,776 | 450,175 | |||||||||
Fortinet, Inc. (b) | 18,280 | 550,594 | |||||||||
Manhattan Associates, Inc. (b) | 8,847 | 469,156 | |||||||||
Mentor Graphics Corp. | 13,611 | 502,110 | |||||||||
PTC, Inc. (b) | 14,367 | 664,761 | |||||||||
Synopsys, Inc. (b) | 18,809 | 1,107,098 | |||||||||
The Ultimate Software Group, Inc. (b) | 3,597 | 655,913 | |||||||||
Tyler Technologies, Inc. (b) | 4,142 | 591,353 | |||||||||
8,526,582 | |||||||||||
Technology Hardware & Equipment (0.1%) | |||||||||||
VeriFone Systems, Inc. (b) | 13,791 | 244,514 | |||||||||
Materials (6.8%) | |||||||||||
Chemicals (2.6%) | |||||||||||
Ashland Global Holdings, Inc. | 7,727 | 844,484 | |||||||||
Cabot Corp. | 7,747 | 391,533 | |||||||||
Minerals Technologies, Inc. | 4,341 | 335,342 | |||||||||
NewMarket Corp. | 1,205 | 510,727 | |||||||||
Olin Corp. | 20,540 | 526,029 | |||||||||
PolyOne Corp. | 10,412 | 333,601 | |||||||||
RPM International, Inc. | 16,576 | 892,286 | |||||||||
Sensient Technologies Corp. | 5,536 | 435,019 | |||||||||
The Scotts Miracle-Gro Co. – Class A | 5,487 | 524,283 | |||||||||
Valspar Corp. | 9,073 | 940,054 | |||||||||
5,733,358 | |||||||||||
Construction Materials (0.3%) | |||||||||||
Eagle Materials, Inc. | 5,993 | 590,490 | |||||||||
Containers & Packaging (1.6%) | |||||||||||
Aptargroup, Inc. | 7,791 | 572,249 | |||||||||
Bemis Co., Inc. | 11,646 | 556,912 | |||||||||
Greif, Inc. – Class A | 3,121 | 160,139 | |||||||||
Owens-Illinois, Inc. (b) | 20,158 | 350,951 | |||||||||
Packaging Corp. of America | 11,606 | 984,421 | |||||||||
Silgan Holdings, Inc. | 4,586 | 234,711 | |||||||||
Sonoco Products Co. | 12,409 | 653,954 | |||||||||
3,513,337 | |||||||||||
Metals & Mining (2.0%) | |||||||||||
Allegheny Technologies, Inc. | 13,538 | 215,660 | |||||||||
Carpenter Technology Corp. | 5,793 | 209,533 |
Shares | Value(a) | ||||||||||
Commercial Metals Co. | 14,360 | $ | 312,761 | ||||||||
Compass Minerals International, Inc. | 4,199 | 328,991 | |||||||||
Reliance Steel & Aluminum Co. | 9,018 | 717,292 | |||||||||
Royal Gold, Inc. | 8,117 | 514,212 | |||||||||
Steel Dynamics, Inc. | 30,303 | 1,078,181 | |||||||||
United States Steel Corp. | 21,434 | 707,536 | |||||||||
Worthington Industries, Inc. | 5,445 | 258,311 | |||||||||
4,342,477 | |||||||||||
Paper & Forest Products (0.3%) | |||||||||||
Domtar Corp. | 7,778 | 303,575 | |||||||||
Louisiana-Pacific Corp. (b) | 17,676 | 334,607 | |||||||||
638,182 | |||||||||||
Real Estate (9.6%) | |||||||||||
Diversified Real Estate Activities (0.1%) | |||||||||||
Alexander & Baldwin, Inc. | 5,726 | 256,926 | |||||||||
Diversified REITs (0.3%) | |||||||||||
Liberty Property Trust | 18,269 | 721,626 | |||||||||
Health Care REITs (0.9%) | |||||||||||
Care Capital Properties, Inc. | 10,434 | 260,850 | |||||||||
Healthcare Realty Trust, Inc. | 14,402 | 436,669 | |||||||||
Medical Properties Trust, Inc. | 39,802 | 489,565 | |||||||||
Quality Care Properties, Inc. (b) | 11,632 | 180,296 | |||||||||
Senior Housing Properties Trust | 29,523 | 558,870 | |||||||||
1,926,250 | |||||||||||
Hotels & Resort REITs (0.3%) | |||||||||||
Hospitality Properties Trust | 20,416 | 648,004 | |||||||||
Industrial REITs (1.0%) | |||||||||||
DCT Industrial Trust, Inc. | 11,313 | 541,666 | |||||||||
Duke Realty Corp. | 44,083 | 1,170,844 | |||||||||
First Industrial Realty Trust, Inc. | 14,531 | 407,595 | |||||||||
2,120,105 | |||||||||||
Office REITs (1.9%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 9,870 | 1,096,853 | |||||||||
Corporate Office Properties Trust | 11,777 | 367,678 | |||||||||
Cousins Properties, Inc. | 42,535 | 361,973 | |||||||||
Douglas Emmett, Inc. | 17,890 | 654,058 | |||||||||
Highwoods Properties, Inc. | 12,455 | 635,330 | |||||||||
Kilroy Realty Corp. | 11,460 | 839,101 | |||||||||
Mack-Cali Realty Corp. | 11,146 | 323,457 | |||||||||
4,278,450 | |||||||||||
Real Estate Management & Development (0.2%) | |||||||||||
Jones Lang LaSalle, Inc. | 5,618 | 567,643 | |||||||||
Residential REITs (1.0%) | |||||||||||
American Campus Communities, Inc. | 16,418 | 817,124 | |||||||||
Camden Property Trust | 10,872 | 914,009 | |||||||||
Education Realty Trust, Inc. | 9,078 | 383,999 | |||||||||
2,115,132 |
See accompanying notes to financial statements.
62
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Retail REITs (1.9%) | |||||||||||
Equity One, Inc. | 11,544 | $ | 354,285 | ||||||||
National Retail Properties, Inc. | 18,285 | 808,197 | |||||||||
Regency Centers Corp. | 12,986 | 895,385 | |||||||||
Tanger Factory Outlet Centers, Inc. | 11,939 | 427,177 | |||||||||
Taubman Centers, Inc. | 7,510 | 555,214 | |||||||||
Urban Edge Properties | 11,404 | 313,724 | |||||||||
Washington Prime Group, Inc. | 23,045 | 239,899 | |||||||||
Weingarten Realty Investors | 14,643 | 524,073 | |||||||||
4,117,954 | |||||||||||
Specialized REITs (2.0%) | |||||||||||
Communications Sales & Leasing, Inc. | 17,426 | 442,794 | |||||||||
CoreCivic, Inc. | 14,609 | 357,336 | |||||||||
EPR Properties | 7,908 | 567,557 | |||||||||
Lamar Advertising Co. – Class A | 10,279 | 691,160 | |||||||||
LaSalle Hotel Properties | 14,055 | 428,256 | |||||||||
Life Storage, Inc. | 5,766 | 491,609 | |||||||||
Omega Healthcare Investors, Inc. | 24,253 | 758,149 | |||||||||
Potlatch Corp. | 5,035 | 209,708 | |||||||||
Rayonier, Inc. | 15,228 | 405,065 | |||||||||
4,351,634 | |||||||||||
Telecommunication Services (0.1%) | |||||||||||
Wireless Telecommunication Services (0.1%) | |||||||||||
Telephone & Data Systems, Inc. | 11,617 | 335,383 | |||||||||
Utilities (5.2%) | |||||||||||
Electric Utilities (1.4%) | |||||||||||
Great Plains Energy, Inc. | 26,758 | 731,831 | |||||||||
Hawaiian Electric Industries, Inc. | 13,487 | 446,015 | |||||||||
IDACORP, Inc. | 6,264 | 504,565 | |||||||||
PNM Resources, Inc. | 9,899 | 339,536 | |||||||||
Westar Energy, Inc. | 17,621 | 992,943 | |||||||||
3,014,890 | |||||||||||
Gas Utilities (2.2%) | |||||||||||
Atmos Energy Corp. | 12,921 | 958,092 | |||||||||
Energen Corp. (b) | 12,064 | 695,731 | |||||||||
National Fuel Gas Co. | 10,584 | 599,478 | |||||||||
New Jersey Resources Corp. | 10,701 | 379,885 | |||||||||
ONE GAS, Inc. | 6,493 | 415,292 | |||||||||
Southwest Gas Corp. | 5,901 | 452,135 | |||||||||
UGI Corp. | 21,499 | 990,674 | |||||||||
WGL Holdings, Inc. | 6,361 | 485,217 | |||||||||
4,976,504 | |||||||||||
Multi-Utilities (1.3%) | |||||||||||
Black Hills Corp. | 6,605 | 405,151 | |||||||||
MDU Resources Group, Inc. | 24,273 | 698,334 | |||||||||
NorthWestern Corp. | 6,006 | 341,561 | |||||||||
OGE Energy Corp. | 24,820 | 830,229 | |||||||||
Vectren Corp. | 10,299 | 537,093 | |||||||||
2,812,368 |
Shares | Value(a) | ||||||||||
Water Utilities (0.3%) | |||||||||||
Aqua America, Inc. | 22,042 | $ | 662,142 | ||||||||
Total common stocks (cost: $139,955,995) | 201,735,583 | ||||||||||
Short-Term Securities (7.5%) | |||||||||||
Investment Companies (7.5%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 16,308,405 | 16,308,405 | |||||||||
Total short-term securities (cost: $16,308,405) | 16,308,405 | ||||||||||
Total investments in securities (cost: $156,264,400) (d) | 218,043,988 | ||||||||||
Cash and other assets in excess of liabilities (0.3%) | 653,716 | ||||||||||
Total net assets (100.0%) | $ | 218,697,704 |
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 2.0% of net assets in foreign securities at December 31, 2016.
(d) At December 31, 2016 the cost of securities for federal income tax purposes was $156,841,850. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 69,396,208 | |||||
Gross unrealized depreciation | (8,194,070 | ) | |||||
Net unrealized appreciation | $ | 61,202,138 |
Holdings of Open Futures Contracts
On December 31, 2016, cash in the amount of $643,200 has 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 2017 | 97 | Long | $ | (289,325 | ) | |||||||||||||
97 | $ | (289,325 | ) |
See accompanying notes to financial statements.
63
SFT Advantus Index 500 Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (98.1%) | |||||||||||
Consumer Discretionary (11.9%) | |||||||||||
Auto Components (0.2%) | |||||||||||
BorgWarner, Inc. | 7,517 | $ | 296,471 | ||||||||
Delphi Automotive PLC (b) | 10,187 | 686,094 | |||||||||
The Goodyear Tire & Rubber Co. | 9,869 | 304,656 | |||||||||
1,287,221 | |||||||||||
Automobiles (0.5%) | |||||||||||
Ford Motor Co. | 147,706 | 1,791,674 | |||||||||
General Motors Co. | 52,497 | 1,828,995 | |||||||||
Harley-Davidson, Inc. | 6,627 | 386,619 | |||||||||
4,007,288 | |||||||||||
Distributors (0.1%) | |||||||||||
Genuine Parts Co. | 5,645 | 539,323 | |||||||||
LKQ Corp. (c) | 11,637 | 356,674 | |||||||||
895,997 | |||||||||||
Diversified Consumer Services (0.0%) | |||||||||||
H&R Block, Inc. | 7,856 | 180,609 | |||||||||
Hotels, Restaurants & Leisure (1.5%) | |||||||||||
Carnival Corp. | 15,869 | 826,140 | |||||||||
Chipotle Mexican Grill, Inc. (c) | 1,149 | 433,541 | |||||||||
Darden Restaurants, Inc. | 4,658 | 338,730 | |||||||||
Marriott International, Inc. – Class A | 12,153 | 1,004,810 | |||||||||
McDonald's Corp. | 31,429 | 3,825,538 | |||||||||
Royal Caribbean Cruises, Ltd. | 6,325 | 518,903 | |||||||||
Starbucks Corp. | 55,080 | 3,058,042 | |||||||||
Wyndham Worldwide Corp. | 4,035 | 308,153 | |||||||||
Wynn Resorts, Ltd. | 3,042 | 263,163 | |||||||||
Yum! Brands, Inc. | 13,135 | 831,839 | |||||||||
11,408,859 | |||||||||||
Household Durables (0.6%) | |||||||||||
DR Horton, Inc. | 12,813 | 350,179 | |||||||||
Garmin, Ltd. (b) | 4,318 | 209,380 | |||||||||
Harman International Industries, Inc. | 2,661 | 295,797 | |||||||||
Leggett & Platt, Inc. | 4,996 | 244,204 | |||||||||
Lennar Corp. – Class A | 7,436 | 319,228 | |||||||||
Mohawk Industries, Inc. (c) | 2,380 | 475,238 | |||||||||
Newell Brands, Inc. | 18,225 | 813,746 | |||||||||
PulteGroup, Inc. | 11,265 | 207,051 | |||||||||
Stanley Black & Decker, Inc. | 5,735 | 657,747 | |||||||||
Whirlpool Corp. | 2,828 | 514,046 | |||||||||
4,086,616 | |||||||||||
Internet & Catalog Retail (2.3%) | |||||||||||
Amazon.com, Inc. (c) | 14,982 | 11,234,552 | |||||||||
Expedia, Inc. | 4,557 | 516,217 | |||||||||
Netflix, Inc. (c) | 16,216 | 2,007,541 | |||||||||
The Priceline Group, Inc. (c) | 1,876 | 2,750,329 | |||||||||
TripAdvisor, Inc. (c) | 4,230 | 196,145 | |||||||||
16,704,784 |
Shares | Value(a) | ||||||||||
Leisure Equipment & Products (0.1%) | |||||||||||
Hasbro, Inc. | 4,199 | $ | 326,640 | ||||||||
Mattel, Inc. | 12,866 | 354,459 | |||||||||
681,099 | |||||||||||
Media (3.0%) | |||||||||||
CBS Corp. – Class B | 14,834 | 943,739 | |||||||||
Charter Communications, Inc. – Class A (c) | 8,270 | 2,381,098 | |||||||||
Comcast Corp. – Class A | 90,201 | 6,228,379 | |||||||||
Discovery Communications, Inc. – Class A (c) | 5,706 | 156,401 | |||||||||
Discovery Communications, Inc. – Class C (c) | 8,348 | 223,559 | |||||||||
News Corp. – Class A | 14,392 | 164,932 | |||||||||
News Corp. – Class B | 4,530 | 53,454 | |||||||||
Omnicom Group, Inc. | 8,871 | 755,011 | |||||||||
Scripps Networks Interactive, Inc. – Class A | 3,542 | 252,793 | |||||||||
TEGNA, Inc. | 8,101 | 173,280 | |||||||||
The Interpublic Group of Cos., Inc. | 15,015 | 351,501 | |||||||||
The Walt Disney Co. | 55,412 | 5,775,039 | |||||||||
Time Warner, Inc. | 29,184 | 2,817,132 | |||||||||
Twenty-First Century Fox, Inc. – Class A | 40,071 | 1,123,591 | |||||||||
Twenty-First Century Fox, Inc. – Class B | 18,422 | 502,000 | |||||||||
Viacom, Inc. – Class B | 13,099 | 459,775 | |||||||||
22,361,684 | |||||||||||
Multiline Retail (0.5%) | |||||||||||
Dollar General Corp. | 9,619 | 712,479 | |||||||||
Dollar Tree, Inc. (c) | 8,902 | 687,057 | |||||||||
Kohl's Corp. | 6,678 | 329,760 | |||||||||
Macy's, Inc. | 11,471 | 410,777 | |||||||||
Nordstrom, Inc. | 4,395 | 210,652 | |||||||||
Target Corp. | 21,258 | 1,535,465 | |||||||||
3,886,190 | |||||||||||
Specialty Retail (2.4%) | |||||||||||
Advance Auto Parts, Inc. | 2,853 | 482,499 | |||||||||
AutoNation, Inc. (c) | 2,409 | 117,198 | |||||||||
AutoZone, Inc. (c) | 1,135 | 896,412 | |||||||||
Bed Bath & Beyond, Inc. | 5,733 | 232,989 | |||||||||
Best Buy Co., Inc. | 10,332 | 440,867 | |||||||||
CarMax, Inc. (c) | 7,168 | 461,548 | |||||||||
Foot Locker, Inc. | 5,070 | 359,412 | |||||||||
L Brands, Inc. | 9,085 | 598,156 | |||||||||
Lowe's Cos., Inc. | 32,920 | 2,341,270 | |||||||||
O'Reilly Automotive, Inc. (c) | 3,591 | 999,770 | |||||||||
Ross Stores, Inc. | 14,999 | 983,934 | |||||||||
Signet Jewelers, Ltd. | 2,633 | 248,187 | |||||||||
Staples, Inc. | 24,599 | 222,621 | |||||||||
The Gap, Inc. | 8,288 | 185,983 | |||||||||
The Home Depot, Inc. | 46,102 | 6,181,356 | |||||||||
The TJX Cos., Inc. | 24,671 | 1,853,532 | |||||||||
Tiffany & Co. | 4,076 | 315,605 | |||||||||
Tractor Supply Co. | 4,930 | 373,743 |
See accompanying notes to financial statements.
64
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Ulta Salon Cosmetics & Fragrance, Inc. (c) | 2,218 | $ | 565,457 | ||||||||
Urban Outfitters, Inc. (c) | 3,266 | 93,016 | |||||||||
17,953,555 | |||||||||||
Textiles, Apparel & Luxury Goods (0.7%) | |||||||||||
Coach, Inc. | 10,610 | 371,562 | |||||||||
Hanesbrands, Inc. | 14,267 | 307,739 | |||||||||
Michael Kors Holdings, Ltd. (b) (c) | 6,216 | 267,164 | |||||||||
NIKE, Inc. – Class B | 50,568 | 2,570,371 | |||||||||
PVH Corp. | 2,990 | 269,818 | |||||||||
Ralph Lauren Corp. | 2,133 | 192,652 | |||||||||
Under Armour, Inc. – Class A (c) | 6,953 | 201,985 | |||||||||
Under Armour, Inc. – Class C (c) | 6,992 | 175,989 | |||||||||
VF Corp. | 12,507 | 667,248 | |||||||||
5,024,528 | |||||||||||
Consumer Staples (9.2%) | |||||||||||
Beverages (2.0%) | |||||||||||
Brown-Forman Corp. – Class B | 6,898 | 309,858 | |||||||||
Constellation Brands, Inc. – Class A | 6,722 | 1,030,550 | |||||||||
Dr Pepper Snapple Group, Inc. | 6,972 | 632,151 | |||||||||
Molson Coors Brewing Co. – Class B | 7,020 | 683,116 | |||||||||
Monster Beverage Corp. (c) | 15,336 | 679,999 | |||||||||
PepsiCo, Inc. | 54,278 | 5,679,107 | |||||||||
The Coca-Cola Co. | 146,813 | 6,086,867 | |||||||||
15,101,648 | |||||||||||
Food & Staples Retailing (2.0%) | |||||||||||
Costco Wholesale Corp. | 16,556 | 2,650,781 | |||||||||
CVS Health Corp. | 40,325 | 3,182,046 | |||||||||
Sysco Corp. | 19,043 | 1,054,411 | |||||||||
The Kroger Co. | 35,732 | 1,233,111 | |||||||||
Wal-Mart Stores, Inc. | 56,990 | 3,939,149 | |||||||||
Walgreens Boots Alliance, Inc. | 32,338 | 2,676,293 | |||||||||
Whole Foods Market, Inc. | 12,020 | 369,735 | |||||||||
15,105,526 | |||||||||||
Food Products (1.6%) | |||||||||||
Archer-Daniels-Midland Co. | 21,776 | 994,075 | |||||||||
Campbell Soup Co. | 7,254 | 438,649 | |||||||||
Conagra Brands, Inc. | 15,663 | 619,472 | |||||||||
General Mills, Inc. | 22,381 | 1,382,474 | |||||||||
Hormel Foods Corp. | 10,212 | 355,480 | |||||||||
Kellogg Co. | 9,554 | 704,225 | |||||||||
McCormick & Co., Inc. | 4,354 | 406,359 | |||||||||
Mead Johnson Nutrition Co. | 6,991 | 494,683 | |||||||||
Mondelez International, Inc. – Class A | 58,449 | 2,591,044 | |||||||||
The Hershey Co. | 5,280 | 546,110 | |||||||||
The JM Smucker Co. | 4,381 | 561,031 | |||||||||
The Kraft Heinz Co. | 22,517 | 1,966,185 | |||||||||
Tyson Foods, Inc. – Class A | 10,996 | 678,233 | |||||||||
11,738,020 | |||||||||||
Household Products (1.8%) | |||||||||||
Church & Dwight Co., Inc. | 9,742 | 430,499 | |||||||||
Clorox Co. | 4,833 | 580,057 |
Shares | Value(a) | ||||||||||
Colgate-Palmolive Co. | 33,648 | $ | 2,201,925 | ||||||||
Kimberly-Clark Corp. | 13,592 | 1,551,119 | |||||||||
The Procter & Gamble Co. | 101,275 | 8,515,202 | |||||||||
13,278,802 | |||||||||||
Personal Care (0.1%) | |||||||||||
The Estee Lauder Cos., Inc. – Class A | 8,434 | 645,116 | |||||||||
Personal Products (0.1%) | |||||||||||
Coty, Inc. – Class A | 17,720 | 324,453 | |||||||||
Tobacco (1.6%) | |||||||||||
Altria Group, Inc. | 73,736 | 4,986,028 | |||||||||
Philip Morris International, Inc. | 58,725 | 5,372,750 | |||||||||
Reynolds American, Inc. | 31,286 | 1,753,268 | |||||||||
12,112,046 | |||||||||||
Energy (7.3%) | |||||||||||
Energy Equipment & Services (1.1%) | |||||||||||
Baker Hughes, Inc. | 16,001 | 1,039,585 | |||||||||
FMC Technologies, Inc. (c) | 8,541 | 303,462 | |||||||||
Halliburton Co. | 32,715 | 1,769,554 | |||||||||
Helmerich & Payne, Inc. | 4,036 | 312,386 | |||||||||
National Oilwell Varco, Inc. | 14,249 | 533,483 | |||||||||
Schlumberger, Ltd. | 52,612 | 4,416,777 | |||||||||
Transocean, Ltd. (b) (c) | 14,683 | 216,428 | |||||||||
8,591,675 | |||||||||||
Oil, Gas & Consumable Fuels (6.2%) | |||||||||||
Anadarko Petroleum Corp. | 21,152 | 1,474,929 | |||||||||
Apache Corp. | 14,305 | 907,938 | |||||||||
Cabot Oil & Gas Corp. | 17,573 | 410,505 | |||||||||
Chesapeake Energy Corp. (c) | 28,210 | 198,034 | |||||||||
Chevron Corp. | 71,450 | 8,409,665 | |||||||||
Cimarex Energy Co. | 3,640 | 494,676 | |||||||||
Concho Resources, Inc. (c) | 5,528 | 733,013 | |||||||||
ConocoPhillips | 46,800 | 2,346,552 | |||||||||
Devon Energy Corp. | 19,802 | 904,357 | |||||||||
EOG Resources, Inc. | 21,816 | 2,205,598 | |||||||||
EQT Corp. | 6,528 | 426,931 | |||||||||
Exxon Mobil Corp. | 156,935 | 14,164,953 | |||||||||
Hess Corp. | 10,080 | 627,883 | |||||||||
Kinder Morgan, Inc. | 72,608 | 1,503,712 | |||||||||
Marathon Oil Corp. | 32,034 | 554,509 | |||||||||
Marathon Petroleum Corp. | 19,923 | 1,003,123 | |||||||||
Murphy Oil Corp. | 6,054 | 188,461 | |||||||||
Newfield Exploration Co. (c) | 7,411 | 300,146 | |||||||||
Noble Energy, Inc. | 16,150 | 614,669 | |||||||||
Occidental Petroleum Corp. | 28,863 | 2,055,912 | |||||||||
Phillips 66 | 16,708 | 1,443,738 | |||||||||
Pioneer Natural Resources Co. | 6,415 | 1,155,149 | |||||||||
Range Resources Corp. | 7,009 | 240,829 | |||||||||
Southwestern Energy Co. (c) | 18,563 | 200,852 | |||||||||
Spectra Energy Corp. | 26,516 | 1,089,542 | |||||||||
Tesoro Corp. | 4,407 | 385,392 | |||||||||
The Williams Cos., Inc. | 25,812 | 803,786 | |||||||||
Valero Energy Corp. | 17,131 | 1,170,390 | |||||||||
46,015,244 |
See accompanying notes to financial statements.
65
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Financial (14.5%) | |||||||||||
Capital Markets (2.8%) | |||||||||||
Affiliated Managers Group, Inc. (c) | 2,069 | $ | 300,626 | ||||||||
Ameriprise Financial, Inc. | 5,981 | 663,532 | |||||||||
BlackRock, Inc. | 4,615 | 1,756,192 | |||||||||
CME Group, Inc. | 12,864 | 1,483,862 | |||||||||
E*Trade Financial Corp. (c) | 10,351 | 358,662 | |||||||||
Franklin Resources, Inc. | 13,131 | 519,725 | |||||||||
Intercontinental Exchange, Inc. | 22,545 | 1,271,989 | |||||||||
Invesco, Ltd. | 15,403 | 467,327 | |||||||||
Moody's Corp. | 6,340 | 597,672 | |||||||||
Morgan Stanley | 54,576 | 2,305,836 | |||||||||
Nasdaq, Inc. | 4,304 | 288,885 | |||||||||
Northern Trust Corp. | 8,038 | 715,784 | |||||||||
S&P Global, Inc. | 9,806 | 1,054,537 | |||||||||
State Street Corp. | 13,722 | 1,066,474 | |||||||||
T Rowe Price Group, Inc. | 9,213 | 693,370 | |||||||||
The Bank of New York Mellon Corp. | 40,015 | 1,895,911 | |||||||||
The Charles Schwab Corp. | 45,655 | 1,802,003 | |||||||||
The Goldman Sachs Group, Inc. | 13,996 | 3,351,342 | |||||||||
20,593,729 | |||||||||||
Commercial Banks (6.6%) | |||||||||||
Bank of America Corp. | 382,432 | 8,451,747 | |||||||||
BB&T Corp. | 30,705 | 1,443,749 | |||||||||
Citigroup, Inc. | 107,850 | 6,409,526 | |||||||||
Citizens Financial Group, Inc. | 19,372 | 690,224 | |||||||||
Comerica, Inc. | 6,518 | 443,941 | |||||||||
Fifth Third Bancorp | 28,596 | 771,234 | |||||||||
Huntington Bancshares, Inc. | 41,030 | 542,417 | |||||||||
JPMorgan Chase & Co. | 135,422 | 11,685,564 | |||||||||
KeyCorp | 40,834 | 746,037 | |||||||||
M&T Bank Corp. | 5,890 | 921,373 | |||||||||
People's United Financial, Inc. | 11,747 | 227,422 | |||||||||
Regions Financial Corp. | 46,587 | 668,989 | |||||||||
SunTrust Banks, Inc. | 18,574 | 1,018,784 | |||||||||
The PNC Financial Services Group, Inc. | 18,412 | 2,153,468 | |||||||||
US Bancorp | 60,465 | 3,106,087 | |||||||||
Wells Fargo & Co. | 171,065 | 9,427,392 | |||||||||
Zions Bancorporation | 7,657 | 329,557 | |||||||||
49,037,511 | |||||||||||
Consumer Finance (0.8%) | |||||||||||
American Express Co. | 29,096 | 2,155,432 | |||||||||
Capital One Financial Corp. | 18,253 | 1,592,392 | |||||||||
Discover Financial Services | 14,926 | 1,076,015 | |||||||||
Navient Corp. | 11,470 | 188,452 | |||||||||
Synchrony Financial | 29,678 | 1,076,421 | |||||||||
6,088,712 | |||||||||||
Diversified Financial Services (0.0%) | |||||||||||
Leucadia National Corp. | 12,167 | 282,883 | |||||||||
Insurance (4.3%) | |||||||||||
Aflac, Inc. | 15,390 | 1,071,144 | |||||||||
American International Group, Inc. | 36,929 | 2,411,833 | |||||||||
Aon PLC (b) | 9,912 | 1,105,485 | |||||||||
Arthur J Gallagher & Co. | 6,670 | 346,573 | |||||||||
Assurant, Inc. | 2,140 | 198,720 |
Shares | Value(a) | ||||||||||
Berkshire Hathaway, Inc. – Class B (c) | 71,909 | $ | 11,719,729 | ||||||||
Chubb, Ltd. (b) | 17,653 | 2,332,314 | |||||||||
Cincinnati Financial Corp. | 5,664 | 429,048 | |||||||||
Hartford Financial Services Group, Inc. | 14,295 | 681,157 | |||||||||
Lincoln National Corp. | 8,650 | 573,236 | |||||||||
Loews Corp. | 10,454 | 489,561 | |||||||||
Marsh & McLennan Cos., Inc. | 19,532 | 1,320,168 | |||||||||
MetLife, Inc. | 41,520 | 2,237,513 | |||||||||
Principal Financial Group, Inc. | 10,094 | 584,039 | |||||||||
Prudential Financial, Inc. | 16,274 | 1,693,472 | |||||||||
The Allstate Corp. | 13,936 | 1,032,936 | |||||||||
The Progressive Corp. | 21,897 | 777,344 | |||||||||
The Travelers Cos., Inc. | 10,750 | 1,316,015 | |||||||||
Torchmark Corp. | 4,194 | 309,349 | |||||||||
Unum Group | 8,692 | 381,840 | |||||||||
Willis Towers Watson PLC (b) | 4,908 | 600,150 | |||||||||
XL Group, Ltd. (b) | 10,182 | 379,381 | |||||||||
31,991,007 | |||||||||||
Health Care (13.4%) | |||||||||||
Biotechnology (2.7%) | |||||||||||
AbbVie, Inc. | 61,493 | 3,850,692 | |||||||||
Alexion Pharmaceuticals, Inc. (c) | 8,537 | 1,044,502 | |||||||||
Amgen, Inc. | 28,154 | 4,116,396 | |||||||||
Biogen, Inc. (c) | 8,232 | 2,334,430 | |||||||||
Celgene Corp. (c) | 29,373 | 3,399,925 | |||||||||
Gilead Sciences, Inc. | 49,811 | 3,566,966 | |||||||||
Regeneron Pharmaceuticals, Inc. (c) | 2,855 | 1,048,042 | |||||||||
Vertex Pharmaceuticals, Inc. (c) | 9,400 | 692,498 | |||||||||
20,053,451 | |||||||||||
Health Care Equipment & Supplies (2.4%) | |||||||||||
Abbott Laboratories | 55,720 | 2,140,205 | |||||||||
Baxter International, Inc. | 18,513 | 820,866 | |||||||||
Becton Dickinson and Co. | 8,091 | 1,339,465 | |||||||||
Boston Scientific Corp. (c) | 51,464 | 1,113,166 | |||||||||
CR Bard, Inc. | 2,810 | 631,295 | |||||||||
Danaher Corp. | 22,983 | 1,788,997 | |||||||||
DENTSPLY SIRONA, Inc. | 8,652 | 499,480 | |||||||||
Edwards Lifesciences Corp. (c) | 8,077 | 756,815 | |||||||||
Hologic, Inc. (c) | 10,492 | 420,939 | |||||||||
Intuitive Surgical, Inc. (c) | 1,538 | 975,354 | |||||||||
Medtronic PLC (b) | 51,964 | 3,701,396 | |||||||||
St Jude Medical, Inc. | 10,843 | 869,500 | |||||||||
Stryker Corp. | 11,726 | 1,404,892 | |||||||||
The Cooper Cos., Inc. | 1,840 | 321,871 | |||||||||
Varian Medical Systems, Inc. (c) | 3,527 | 316,654 | |||||||||
Zimmer Biomet Holdings, Inc. | 7,629 | 787,313 | |||||||||
17,888,208 | |||||||||||
Health Care Providers & Services (2.6%) | |||||||||||
Aetna, Inc. | 13,261 | 1,644,497 | |||||||||
AmerisourceBergen Corp. | 6,334 | 495,255 | |||||||||
Anthem, Inc. | 9,975 | 1,434,106 | |||||||||
Cardinal Health, Inc. | 12,049 | 867,167 | |||||||||
Centene Corp. (c) | 6,390 | 361,099 | |||||||||
Cigna Corp. | 9,745 | 1,299,886 | |||||||||
DaVita, Inc. (c) | 5,976 | 383,659 | |||||||||
Envision Healthcare Corp. (c) | 4,440 | 281,008 |
See accompanying notes to financial statements.
66
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Express Scripts Holding Co. (c) | 23,336 | $ | 1,605,283 | ||||||||
HCA Holdings, Inc. (c) | 11,060 | 818,661 | |||||||||
Henry Schein, Inc. (c) | 3,105 | 471,060 | |||||||||
Humana, Inc. | 5,650 | 1,152,769 | |||||||||
Laboratory Corp. of America Holdings (c) | 3,889 | 499,270 | |||||||||
McKesson Corp. | 8,604 | 1,208,432 | |||||||||
Patterson Cos., Inc. | 3,127 | 128,301 | |||||||||
Quest Diagnostics, Inc. | 5,267 | 484,037 | |||||||||
UnitedHealth Group, Inc. | 36,033 | 5,766,721 | |||||||||
Universal Health Services, Inc. – Class B | 3,414 | 363,181 | |||||||||
19,264,392 | |||||||||||
Health Care Technology (0.1%) | |||||||||||
Cerner Corp. (c) | 11,435 | 541,676 | |||||||||
Life Sciences Tools & Services (0.6%) | |||||||||||
Agilent Technologies, Inc. | 12,209 | 556,242 | |||||||||
Illumina, Inc. (c) | 5,582 | 714,719 | |||||||||
Mettler-Toledo International, Inc. (c) | 1,002 | 419,397 | |||||||||
PerkinElmer, Inc. | 4,091 | 213,346 | |||||||||
Thermo Fisher Scientific, Inc. | 14,944 | 2,108,598 | |||||||||
Waters Corp. (c) | 3,082 | 414,190 | |||||||||
4,426,492 | |||||||||||
Pharmaceuticals (5.0%) | |||||||||||
Allergan PLC (c) | 14,199 | 2,981,932 | |||||||||
Bristol-Myers Squibb Co. | 63,193 | 3,692,999 | |||||||||
Eli Lilly & Co. | 36,745 | 2,702,595 | |||||||||
Endo International PLC (b) (c) | 7,498 | 123,492 | |||||||||
Johnson & Johnson | 102,961 | 11,862,137 | |||||||||
Mallinckrodt PLC (c) | 3,913 | 194,945 | |||||||||
Merck & Co., Inc. | 104,346 | 6,142,849 | |||||||||
Mylan NV (c) | 17,398 | 663,734 | |||||||||
Perrigo Co. PLC (b) | 5,382 | 447,944 | |||||||||
Pfizer, Inc. | 229,661 | 7,459,389 | |||||||||
Zoetis, Inc. | 18,623 | 996,889 | |||||||||
37,268,905 | |||||||||||
Industrials (10.0%) | |||||||||||
Aerospace & Defense (2.1%) | |||||||||||
Arconic, Inc. | 16,566 | 307,134 | |||||||||
General Dynamics Corp. | 10,858 | 1,874,742 | |||||||||
L3 Technologies, Inc. | 2,935 | 446,443 | |||||||||
Lockheed Martin Corp. | 9,548 | 2,386,427 | |||||||||
Northrop Grumman Corp. | 6,729 | 1,565,031 | |||||||||
Raytheon Co. | 11,161 | 1,584,862 | |||||||||
Rockwell Collins, Inc. | 4,921 | 456,472 | |||||||||
The Boeing Co. | 21,722 | 3,381,681 | |||||||||
TransDigm Group, Inc. | 1,894 | 471,530 | |||||||||
United Technologies Corp. | 28,981 | 3,176,897 | |||||||||
15,651,219 | |||||||||||
Air Freight & Logistics (0.7%) | |||||||||||
CH Robinson Worldwide, Inc. | 5,377 | 393,919 | |||||||||
Expeditors International of Washington, Inc. | 6,755 | 357,745 | |||||||||
FedEx Corp. | 9,239 | 1,720,302 | |||||||||
United Parcel Service, Inc. – Class B | 26,093 | 2,991,301 | |||||||||
5,463,267 |
Shares | Value(a) | ||||||||||
Airlines (0.6%) | |||||||||||
Alaska Air Group, Inc. | 4,700 | $ | 417,031 | ||||||||
American Airlines Group, Inc. | 19,608 | 915,498 | |||||||||
Delta Air Lines, Inc. | 27,869 | 1,370,876 | |||||||||
Southwest Airlines Co. | 23,297 | 1,161,122 | |||||||||
United Continental Holdings, Inc. (c) | 10,927 | 796,360 | |||||||||
4,660,887 | |||||||||||
Building Products (0.3%) | |||||||||||
Allegion PLC (b) | 3,591 | 229,824 | |||||||||
Fortune Brands Home & Security, Inc. | 5,800 | 310,068 | |||||||||
Johnson Controls International PLC | 35,450 | 1,460,185 | |||||||||
Masco Corp. | 12,398 | 392,025 | |||||||||
2,392,102 | |||||||||||
Commercial Services & Supplies (0.4%) | |||||||||||
Avery Dennison Corp. | 3,311 | 232,498 | |||||||||
Cintas Corp. | 3,274 | 378,344 | |||||||||
Pitney Bowes, Inc. | 7,011 | 106,497 | |||||||||
Republic Services, Inc. | 8,671 | 494,681 | |||||||||
Stericycle, Inc. (c) | 3,182 | 245,141 | |||||||||
Waste Management, Inc. | 15,389 | 1,091,234 | |||||||||
2,548,395 | |||||||||||
Construction & Engineering (0.1%) | |||||||||||
Fluor Corp. | 5,202 | 273,209 | |||||||||
Jacobs Engineering Group, Inc. (c) | 4,489 | 255,873 | |||||||||
Quanta Services, Inc. (c) | 5,692 | 198,366 | |||||||||
727,448 | |||||||||||
Electrical Equipment (0.5%) | |||||||||||
Acuity Brands, Inc. | 1,680 | 387,845 | |||||||||
AMETEK, Inc. | 8,707 | 423,160 | |||||||||
Eaton Corp. PLC | 17,029 | 1,142,476 | |||||||||
Emerson Electric Co. | 24,313 | 1,355,450 | |||||||||
Rockwell Automation, Inc. | 4,843 | 650,899 | |||||||||
3,959,830 | |||||||||||
Industrial Conglomerates (2.6%) | |||||||||||
3M Co. | 22,763 | 4,064,789 | |||||||||
General Electric Co. | 334,797 | 10,579,585 | |||||||||
Honeywell International, Inc. | 28,802 | 3,336,712 | |||||||||
Roper Technologies, Inc. | 3,874 | 709,252 | |||||||||
Textron, Inc. | 10,147 | 492,738 | |||||||||
19,183,076 | |||||||||||
Machinery (1.4%) | |||||||||||
Caterpillar, Inc. | 22,165 | 2,055,582 | |||||||||
Cummins, Inc. | 5,868 | 801,979 | |||||||||
Deere & Co. | 10,940 | 1,127,258 | |||||||||
Dover Corp. | 5,902 | 442,237 | |||||||||
Flowserve Corp. | 4,926 | 236,694 | |||||||||
Fortive Corp. | 11,321 | 607,145 | |||||||||
Illinois Tool Works, Inc. | 11,956 | 1,464,132 | |||||||||
Ingersoll-Rand PLC | 9,769 | 733,066 | |||||||||
PACCAR, Inc. | 13,244 | 846,292 | |||||||||
Parker Hannifin Corp. | 5,091 | 712,740 | |||||||||
Pentair PLC (b) | 6,301 | 353,297 |
See accompanying notes to financial statements.
67
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Snap-On, Inc. | 2,243 | $ | 384,159 | ||||||||
Xylem, Inc. | 6,716 | 332,576 | |||||||||
10,097,157 | |||||||||||
Professional Services (0.3%) | |||||||||||
Dun & Bradstreet Corp. | 1,439 | 174,579 | |||||||||
Equifax, Inc. | 4,536 | 536,291 | |||||||||
Nielsen Holdings PLC | 12,704 | 532,933 | |||||||||
Robert Half International, Inc. | 4,868 | 237,461 | |||||||||
United Rentals, Inc. (c) | 3,175 | 335,217 | |||||||||
Verisk Analytics, Inc. (c) | 5,843 | 474,276 | |||||||||
2,290,757 | |||||||||||
Road & Rail (0.9%) | |||||||||||
CSX Corp. | 35,448 | 1,273,647 | |||||||||
JB Hunt Transport Services, Inc. | 3,290 | 319,360 | |||||||||
Kansas City Southern | 4,086 | 346,697 | |||||||||
Norfolk Southern Corp. | 11,079 | 1,197,308 | |||||||||
Ryder System, Inc. | 2,000 | 148,880 | |||||||||
Union Pacific Corp. | 31,189 | 3,233,675 | |||||||||
6,519,567 | |||||||||||
Trading Companies & Distributors (0.1%) | |||||||||||
Fastenal Co. | 10,847 | 509,592 | |||||||||
WW Grainger, Inc. | 2,074 | 481,687 | |||||||||
991,279 | |||||||||||
Information Technology (20.4%) | |||||||||||
Communications Equipment (1.0%) | |||||||||||
Cisco Systems, Inc. | 189,976 | 5,741,075 | |||||||||
F5 Networks, Inc. (c) | 2,460 | 356,011 | |||||||||
Harris Corp. | 4,658 | 477,305 | |||||||||
Juniper Networks, Inc. | 14,384 | 406,492 | |||||||||
Motorola Solutions, Inc. | 6,306 | 522,704 | |||||||||
7,503,587 | |||||||||||
Computers & Peripherals (3.3%) | |||||||||||
Apple, Inc. (d) | 201,805 | 23,373,055 | |||||||||
NetApp, Inc. | 10,421 | 367,549 | |||||||||
Western Digital Corp. | 10,751 | 730,530 | |||||||||
24,471,134 | |||||||||||
Electronic Equipment, Instruments & Components (0.4%) | |||||||||||
Amphenol Corp. – Class A | 11,676 | 784,627 | |||||||||
Corning, Inc. | 35,915 | 871,657 | |||||||||
FLIR Systems, Inc. | 5,072 | 183,556 | |||||||||
Seagate Technology PLC | 11,146 | 425,443 | |||||||||
TE Connectivity, Ltd. (b) | 13,414 | 929,322 | |||||||||
3,194,605 | |||||||||||
Internet Software & Services (4.2%) | |||||||||||
Akamai Technologies, Inc. (c) | 6,562 | 437,554 | |||||||||
Alphabet, Inc. – Class A (c) | 11,215 | 8,887,327 | |||||||||
Alphabet, Inc. – Class C (c) | 11,226 | 8,664,451 | |||||||||
eBay, Inc. (c) | 39,347 | 1,168,213 | |||||||||
Facebook, Inc. – Class A (c) | 88,590 | 10,192,280 | |||||||||
VeriSign, Inc. (c) | 3,474 | 264,267 | |||||||||
Yahoo!, Inc. (c) | 33,220 | 1,284,617 | |||||||||
30,898,709 |
Shares | Value(a) | ||||||||||
IT Services (3.6%) | |||||||||||
Accenture PLC – Class A (b) | 23,439 | $ | 2,745,410 | ||||||||
Alliance Data Systems Corp. | 2,203 | 503,385 | |||||||||
Automatic Data Processing, Inc. | 17,075 | 1,754,968 | |||||||||
Cognizant Technology Solutions Corp. – Class A (c) | 22,955 | 1,286,169 | |||||||||
CSRA, Inc. | 5,407 | 172,159 | |||||||||
Fidelity National Information Services, Inc. | 12,398 | 937,785 | |||||||||
Fiserv, Inc. (c) | 8,193 | 870,752 | |||||||||
Global Payments, Inc. | 5,800 | 402,578 | |||||||||
International Business Machines Corp. | 32,747 | 5,435,674 | |||||||||
Mastercard, Inc. – Class A | 36,023 | 3,719,375 | |||||||||
Paychex, Inc. | 12,135 | 738,779 | |||||||||
PayPal Holdings, Inc. (c) | 42,451 | 1,675,541 | |||||||||
Teradata Corp. (c) | 4,880 | 132,590 | |||||||||
The Western Union Co. | 18,346 | 398,475 | |||||||||
Total System Services, Inc. | 6,238 | 305,849 | |||||||||
Visa, Inc. – Class A | 70,680 | 5,514,454 | |||||||||
26,593,943 | |||||||||||
Office Electronics (0.0%) | |||||||||||
Xerox Corp. | 32,192 | 281,036 | |||||||||
Semiconductors & Semiconductor Equipment (3.3%) | |||||||||||
Analog Devices, Inc. | 11,684 | 848,492 | |||||||||
Applied Materials, Inc. | 40,880 | 1,319,198 | |||||||||
Broadcom, Ltd. (b) | 15,059 | 2,661,979 | |||||||||
First Solar, Inc. (c) | 2,949 | 94,633 | |||||||||
Intel Corp. | 179,350 | 6,505,024 | |||||||||
KLA-Tencor Corp. | 5,939 | 467,281 | |||||||||
Lam Research Corp. | 6,162 | 651,508 | |||||||||
Linear Technology Corp. | 9,066 | 565,265 | |||||||||
Microchip Technology, Inc. | 8,146 | 522,566 | |||||||||
Micron Technology, Inc. (c) | 39,417 | 864,021 | |||||||||
NVIDIA Corp. | 20,399 | 2,177,389 | |||||||||
Qorvo, Inc. (c) | 4,837 | 255,055 | |||||||||
QUALCOMM, Inc. | 55,894 | 3,644,289 | |||||||||
Skyworks Solutions, Inc. | 7,057 | 526,876 | |||||||||
Texas Instruments, Inc. | 37,826 | 2,760,163 | |||||||||
Xilinx, Inc. | 9,522 | 574,843 | |||||||||
24,438,582 | |||||||||||
Software (4.3%) | |||||||||||
Activision Blizzard, Inc. | 25,799 | 931,602 | |||||||||
Adobe Systems, Inc. (c) | 18,804 | 1,935,872 | |||||||||
Autodesk, Inc. (c) | 7,385 | 546,564 | |||||||||
CA, Inc. | 11,783 | 374,346 | |||||||||
Citrix Systems, Inc. (c) | 5,861 | 523,446 | |||||||||
Electronic Arts, Inc. (c) | 11,398 | 897,706 | |||||||||
Intuit, Inc. | 9,268 | 1,062,205 | |||||||||
Microsoft Corp. | 294,263 | 18,285,503 | |||||||||
Oracle Corp. | 113,426 | 4,361,230 | |||||||||
Red Hat, Inc. (c) | 6,744 | 470,057 | |||||||||
Salesforce.com, Inc. (c) | 24,159 | 1,653,925 | |||||||||
Symantec Corp. | 23,593 | 563,637 | |||||||||
31,606,093 |
See accompanying notes to financial statements.
68
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Technology Hardware Storage & Peripherals (0.3%) | |||||||||||
Hewlett Packard Enterprise Co. | 63,050 | $ | 1,458,977 | ||||||||
HP, Inc. | 64,749 | 960,875 | |||||||||
2,419,852 | |||||||||||
Materials (2.8%) | |||||||||||
Chemicals (2.0%) | |||||||||||
Air Products & Chemicals, Inc. | 8,290 | 1,192,268 | |||||||||
Albemarle Corp. | 4,250 | 365,840 | |||||||||
CF Industries Holdings, Inc. | 8,727 | 274,726 | |||||||||
Eastman Chemical Co. | 5,564 | 418,469 | |||||||||
Ecolab, Inc. | 9,951 | 1,166,456 | |||||||||
EI du Pont de Nemours & Co. | 32,901 | 2,414,933 | |||||||||
FMC Corp. | 5,003 | 282,970 | |||||||||
International Flavors & Fragrances, Inc. | 3,004 | 353,961 | |||||||||
LyondellBasell Industries NV – Class A | 12,647 | 1,084,860 | |||||||||
Monsanto Co. | 16,578 | 1,744,171 | |||||||||
PPG Industries, Inc. | 9,982 | 945,894 | |||||||||
Praxair, Inc. | 10,765 | 1,261,550 | |||||||||
The Dow Chemical Co. | 42,439 | 2,428,360 | |||||||||
The Mosaic Co. | 13,170 | 386,276 | |||||||||
The Sherwin-Williams Co. | 3,116 | 837,394 | |||||||||
15,158,128 | |||||||||||
Construction Materials (0.2%) | |||||||||||
Martin Marietta Materials, Inc. | 2,422 | 536,546 | |||||||||
Vulcan Materials Co. | 4,992 | 624,749 | |||||||||
1,161,295 | |||||||||||
Containers & Packaging (0.3%) | |||||||||||
Ball Corp. | 6,585 | 494,336 | |||||||||
International Paper Co. | 15,538 | 824,446 | |||||||||
Sealed Air Corp. | 7,250 | 328,715 | |||||||||
WestRock Co. | 9,427 | 478,609 | |||||||||
2,126,106 | |||||||||||
Metals & Mining (0.3%) | |||||||||||
Freeport-McMoRan, Inc. (c) | 47,411 | 625,351 | |||||||||
Newmont Mining Corp. | 20,049 | 683,069 | |||||||||
Nucor Corp. | 12,067 | 718,228 | |||||||||
2,026,648 | |||||||||||
Real Estate (2.8%) | |||||||||||
Health Care REITs (0.3%) | |||||||||||
HCP, Inc. | 17,652 | 524,617 | |||||||||
Ventas, Inc. | 13,401 | 837,831 | |||||||||
Welltower, Inc. | 13,720 | 918,280 | |||||||||
2,280,728 | |||||||||||
Hotels & Resort REITs (0.1%) | |||||||||||
Host Hotels & Resorts, Inc. | 27,981 | 527,162 | |||||||||
Industrial REITs (0.1%) | |||||||||||
ProLogis, Inc. | 19,929 | 1,052,052 | |||||||||
Office REITs (0.2%) | |||||||||||
Boston Properties, Inc. | 5,850 | 735,813 | |||||||||
SL Green Realty Corp. | 3,833 | 412,239 | |||||||||
Vornado Realty Trust | 6,499 | 678,301 | |||||||||
1,826,353 |
Shares | Value(a) | ||||||||||
Real Estate Services (0.0%) | |||||||||||
CBRE Group, Inc. – Class A (c) | 11,297 | $ | 355,742 | ||||||||
Residential REITs (0.5%) | |||||||||||
Apartment Investment & Management Co. – Class A | 5,857 | 266,201 | |||||||||
AvalonBay Communities, Inc. | 5,225 | 925,609 | |||||||||
Equity Residential | 13,846 | 891,128 | |||||||||
Essex Property Trust, Inc. | 2,490 | 578,925 | |||||||||
Mid-America Apartment Communities, Inc. | 4,290 | 420,077 | |||||||||
UDR, Inc. | 10,056 | 366,843 | |||||||||
3,448,783 | |||||||||||
Retail REITs (0.6%) | |||||||||||
Federal Realty Investment Trust | 2,700 | 383,697 | |||||||||
General Growth Properties, Inc. | 22,029 | 550,284 | |||||||||
Kimco Realty Corp. | 16,085 | 404,699 | |||||||||
Realty Income Corp. | 9,736 | 559,625 | |||||||||
Simon Property Group, Inc. | 11,885 | 2,111,608 | |||||||||
The Macerich Co. | 4,563 | 323,243 | |||||||||
4,333,156 | |||||||||||
Specialized REITs (1.0%) | |||||||||||
American Tower Corp. | 16,160 | 1,707,789 | |||||||||
Crown Castle International Corp. | 13,652 | 1,184,584 | |||||||||
Digital Realty Trust, Inc. | 6,010 | 590,543 | |||||||||
Equinix, Inc. | 2,770 | 990,026 | |||||||||
Extra Space Storage, Inc. | 4,720 | 364,573 | |||||||||
Iron Mountain, Inc. | 9,259 | 300,732 | |||||||||
Public Storage | 5,711 | 1,276,408 | |||||||||
Weyerhaeuser Co. | 28,217 | 849,049 | |||||||||
7,263,704 | |||||||||||
Telecommunication Services (2.6%) | |||||||||||
Diversified Telecommunication Services (2.6%) | |||||||||||
AT&T, Inc. | 232,410 | 9,884,397 | |||||||||
CenturyLink, Inc. | 20,636 | 490,724 | |||||||||
Frontier Communications Corp. | 44,332 | 149,842 | |||||||||
Level 3 Communications, Inc. (c) | 10,956 | 617,480 | |||||||||
Verizon Communications, Inc. | 154,283 | 8,235,627 | |||||||||
19,378,070 | |||||||||||
Utilities (3.2%) | |||||||||||
Electric Utilities (1.9%) | |||||||||||
Alliant Energy Corp. | 8,590 | 325,475 | |||||||||
American Electric Power Co., Inc. | 18,597 | 1,170,867 | |||||||||
Duke Energy Corp. | 26,035 | 2,020,837 | |||||||||
Edison International | 12,313 | 886,413 | |||||||||
Entergy Corp. | 6,779 | 498,053 | |||||||||
Eversource Energy | 11,987 | 662,042 | |||||||||
Exelon Corp. | 34,941 | 1,240,056 | |||||||||
FirstEnergy Corp. | 16,050 | 497,068 | |||||||||
NextEra Energy, Inc. | 17,665 | 2,110,261 | |||||||||
PG&E Corp. | 19,137 | 1,162,955 | |||||||||
Pinnacle West Capital Corp. | 4,150 | 323,825 | |||||||||
PPL Corp. | 25,720 | 875,766 | |||||||||
Southern Co. | 37,015 | 1,820,768 | |||||||||
Xcel Energy, Inc. | 19,211 | 781,888 | |||||||||
14,376,274 | |||||||||||
Gas Utilities (0.1%) | |||||||||||
ONEOK, Inc. | 7,940 | 455,836 |
See accompanying notes to financial statements.
69
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Independent Power Producers & Energy Traders (0.1%) | |||||||||||
NRG Energy, Inc. | 11,901 | $ | 145,906 | ||||||||
The AES Corp. | 24,946 | 289,873 | |||||||||
435,779 | |||||||||||
Multi-Utilities (1.0%) | |||||||||||
Ameren Corp. | 9,085 | 476,599 | |||||||||
CenterPoint Energy, Inc. | 16,273 | 400,967 | |||||||||
CMS Energy Corp. | 10,549 | 439,049 | |||||||||
Consolidated Edison, Inc. | 11,494 | 846,878 | |||||||||
Dominion Resources, Inc. | 23,667 | 1,812,656 | |||||||||
DTE Energy Co. | 6,820 | 671,838 | |||||||||
NiSource, Inc. | 12,151 | 269,023 | |||||||||
Public Service Enterprise Group, Inc. | 19,065 | 836,572 | |||||||||
SCANA Corp. | 5,351 | 392,121 | |||||||||
Sempra Energy | 9,448 | 950,847 | |||||||||
WEC Energy Group, Inc. | 11,928 | 699,577 | |||||||||
7,796,127 | |||||||||||
Water Utilities (0.1%) | |||||||||||
American Water Works Co., Inc. | 6,720 | 486,259 | |||||||||
Total common stocks (cost: $318,366,751) | 729,208,653 | ||||||||||
Short-Term Securities (1.8%) | |||||||||||
Investment Companies (1.8%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 12,999,506 | 12,999,506 | |||||||||
Total short-term securities (cost: $12,999,506) | 12,999,506 | ||||||||||
Total investments in securities (cost: $331,366,257) (e) | 742,208,159 | ||||||||||
Cash and other assets in excess of liabilities (0.1%) | 601,942 | ||||||||||
Total net assets (100.0%) | $ | 742,810,101 |
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 2.3% of net assets in foreign securities at December 31, 2016.
(c) Non-income producing security.
(d) Fully or partially pledged as initial margin deposits on open futures and options contracts.
Holdings of Open Futures Contracts
On December 31, 2016, securities with an aggregate market value of $4,053,700 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 2017 | 112 | Long | $ | 147,200 | ||||||||||||||
112 | $ | 147,200 |
(e) At December 31, 2016 the cost of securities for federal income tax purposes was $334,350,227. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 416,260,736 | |||||
Gross unrealized depreciation | (8,402,804 | ) | |||||
Net unrealized appreciation | $ | 407,857,932 |
See accompanying notes to financial statements.
70
SFT Advantus International Bond Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Principal(b) | Value(a) | ||||||||||
Long-Term Debt Securities (52.3%) | |||||||||||
Argentina (3.7%) | |||||||||||
Government (3.7%) | |||||||||||
Argentine Bonos del Tesoro (ARS) 15.500%, 10/17/26 | 34,062,000 | $ | 2,077,381 | ||||||||
16.000%, 10/17/23 | 6,894,000 | 418,263 | |||||||||
18.200%, 10/03/21 (c) | 25,742,000 | 1,660,032 | |||||||||
4,155,676 | |||||||||||
Brazil (12.6%) | |||||||||||
Government (12.6%) | |||||||||||
Brazil Letras do Tesouro Nacional (BRL) 14.169%, 07/01/20 (c) | 7,468,000 | 1,579,622 | |||||||||
18.576%, 01/01/19 (c) | 8,180,000 | 2,040,622 | |||||||||
19.097%, 07/01/19 (c) | 12,580,000 | 2,978,233 | |||||||||
Brazil Notas do Tesouro Nacional Serie B (BRL) 6.000%, 05/15/19 | 80,000 | 72,836 | |||||||||
6.000%, 08/15/22 | 134,000 | 121,913 | |||||||||
6.000%, 05/15/23 | 186,000 | 169,473 | |||||||||
6.000%, 08/15/24 | 110,000 | 100,577 | |||||||||
6.000%, 05/15/45 | 2,000,000 | 1,875,710 | |||||||||
Brazil Notas do Tesouro Nacional Serie F (BRL) 10.000%, 01/01/21 | 3,390,000 | 1,003,063 | |||||||||
10.000%, 01/01/23 | 3,399,000 | 982,556 | |||||||||
10.000%, 01/01/25 | 6,720,000 | 1,919,205 | |||||||||
10.000%, 01/01/27 | 4,044,000 | 1,146,702 | |||||||||
13,990,512 | |||||||||||
Indonesia (6.8%) | |||||||||||
Government (6.8%) | |||||||||||
Indonesia Treasury Bond (IDR) 6.125%, 05/15/28 | 228,000,000 | 14,425 | |||||||||
7.000%, 05/15/27 | 7,457,000,000 | 523,056 | |||||||||
8.375%, 03/15/24 | 21,929,000,000 | 1,664,309 | |||||||||
8.375%, 09/15/26 | 25,590,000,000 | 1,950,709 | |||||||||
8.750%, 05/15/31 | 13,084,000,000 | 1,011,952 | |||||||||
9.000%, 03/15/29 | 5,228,000,000 | 409,004 | |||||||||
9.500%, 07/15/23 | 18,680,000,000 | 1,499,835 | |||||||||
10.000%, 09/15/24 | 1,959,000,000 | 161,907 | |||||||||
10.000%, 02/15/28 | 76,000,000 | 6,328 | |||||||||
10.250%, 07/15/22 | 2,658,000,000 | 219,299 | |||||||||
10.500%, 08/15/30 | 1,070,000,000 | 93,626 | |||||||||
11.500%, 09/15/19 | 466,000,000 | 37,695 | |||||||||
7,592,145 | |||||||||||
Malaysia (2.5%) | |||||||||||
Government (2.5%) | |||||||||||
Malaysia Government Bond (MYR) 3.260%, 03/01/18 | 1,240,000 | 275,975 | |||||||||
3.314%, 10/31/17 | 2,494,000 | 556,732 | |||||||||
3.394%, 03/15/17 | 4,590,000 | 1,023,162 | |||||||||
3.814%, 02/15/17 | 1,210,000 | 269,804 | |||||||||
4.012%, 09/15/17 | 1,480,000 | 331,218 | |||||||||
4.240%, 02/07/18 | 1,650,000 | 371,067 | |||||||||
2,827,958 |
Principal(b) | Value(a) | ||||||||||
Mexico (10.1%) | |||||||||||
Government (10.1%) | |||||||||||
Mexican Bonos (MXN) 4.750%, 06/14/18 | 45,510,000 | $ | 2,145,104 | ||||||||
5.000%, 06/15/17 | 70,130,000 | 3,385,290 | |||||||||
5.000%, 12/11/19 | 95,980,000 | 4,420,475 | |||||||||
7.750%, 12/14/17 | 5,000,000 | 245,662 | |||||||||
8.500%, 12/13/18 | 13,490,000 | 673,742 | |||||||||
Mexican Udibonos (MXN) 2.500%, 12/10/20 | 1,535,356 | 74,652 | |||||||||
3.500%, 12/14/17 | 2,781,442 | 137,570 | |||||||||
4.000%, 06/13/19 | 1,919,195 | 96,884 | |||||||||
11,179,379 | |||||||||||
Philippines (1.4%) | |||||||||||
Government (1.4%) | |||||||||||
Philippine Government Bond (PHP) 2.125%, 05/23/18 | 23,158,000 | 460,540 | |||||||||
2.875%, 05/22/17 | 4,700,000 | 94,612 | |||||||||
3.375%, 08/20/20 | 1,600,000 | 31,404 | |||||||||
3.875%, 11/22/19 | 41,660,000 | 836,292 | |||||||||
5.000%, 08/18/18 | 3,500,000 | 71,754 | |||||||||
5.875%, 01/31/18 | 2,470,000 | 51,624 | |||||||||
1,546,226 | |||||||||||
Portugal (0.9%) | |||||||||||
Government (0.9%) | |||||||||||
Portugal Government International Bond (USD) 5.125%, 10/15/24 (d) | 1,030,000 | 996,525 | |||||||||
Serbia (0.2%) | |||||||||||
Government (0.2%) | |||||||||||
Republic of Serbia (USD) 5.250%, 11/21/17 (d) | 200,000 | 204,734 | |||||||||
South Africa (0.4%) | |||||||||||
Government (0.4%) | |||||||||||
Republic of South Africa Government Bond (ZAR) 7.000%, 02/28/31 | 320,000 | 19,142 | |||||||||
8.000%, 01/31/30 | 1,570,000 | 103,307 | |||||||||
8.250%, 03/31/32 | 1,100,000 | 72,365 | |||||||||
8.875%, 02/28/35 | 980,000 | 67,253 | |||||||||
10.500%, 12/21/26 | 2,432,000 | 196,086 | |||||||||
458,153 | |||||||||||
South Korea (8.8%) | |||||||||||
Financial (0.6%) | |||||||||||
Korea Monetary Stabilization Bond (KRW) 1.250%, 08/02/18 | 135,000,000 | 111,123 | |||||||||
1.490%, 02/02/18 | 88,000,000 | 72,781 | |||||||||
1.700%, 08/02/17 | 606,100,000 | 502,355 | |||||||||
686,259 | |||||||||||
Government (8.2%) | |||||||||||
Korea Treasury Bond (KRW) 1.375%, 09/10/21 | 883,200,000 | 717,372 | |||||||||
1.500%, 06/10/19 | 5,190,600,000 | 4,282,855 |
See accompanying notes to financial statements.
71
SFT Advantus International Bond Fund
Investments in Securities – continued
Principal(b) | Value(a) | ||||||||||
1.750%, 12/10/18 | 736,600,000 | $ | 611,326 | ||||||||
2.000%, 12/10/17 | 1,816,600,000 | 1,509,570 | |||||||||
2.000%, 03/10/21 | 2,212,310,000 | 1,844,760 | |||||||||
4.250%, 06/10/21 | 139,300,000 | 127,056 | |||||||||
9,092,939 | |||||||||||
9,779,198 | |||||||||||
Sri Lanka (0.4%) | |||||||||||
Government (0.4%) | |||||||||||
Sri Lanka Government Bond (LKR) 8.000%, 11/01/19 | 1,640,000 | 9,924 | |||||||||
10.600%, 07/01/19 | 30,810,000 | 200,401 | |||||||||
11.000%, 08/01/21 | 32,590,000 | 208,841 | |||||||||
419,166 | |||||||||||
Ukraine (4.5%) | |||||||||||
Government (4.5%) | |||||||||||
Ukraine Government International Bond (USD) –, 05/31/40 (d) (e) | 1,369,000 | 411,905 | |||||||||
7.750%, 09/01/20 (d) | 261,000 | 257,361 | |||||||||
7.750%, 09/01/21 (d) | 698,000 | 681,569 | |||||||||
7.750%, 09/01/22 (d) | 698,000 | 675,615 | |||||||||
7.750%, 09/01/23 (d) | 698,000 | 670,080 | |||||||||
7.750%, 09/01/24 (d) | 598,000 | 568,100 | |||||||||
7.750%, 09/01/25 (d) | 598,000 | 561,582 | |||||||||
7.750%, 09/01/26 (d) | 598,000 | 559,429 | |||||||||
7.750%, 09/01/27 (d) | 598,000 | 555,315 | |||||||||
4,940,956 | |||||||||||
Total long-term debt securities (cost: $58,897,364) | 58,090,628 | ||||||||||
Short-Term Securities (41.9%) | |||||||||||
Malaysia (1.5%) | |||||||||||
Bank Negara Malaysia Monetary Note (MYR) 2.430%, 06/22/17 (c) | 1,420,000 | 312,020 | |||||||||
2.470%, 09/19/17 (c) | 1,330,000 | 290,019 | |||||||||
2.478%, 04/20/17 (c) | 1,840,000 | 406,508 | |||||||||
2.543%, 07/20/17 (c) | 1,640,000 | 359,462 | |||||||||
Malaysia Treasury Bill (MYR) 2.200%, 03/10/17 (c) | 380,000 | 84,240 | |||||||||
2.352%, 08/11/17 (c) | 350,000 | 76,571 | |||||||||
2.640%, 01/20/17 (c) | 370,000 | 82,369 | |||||||||
1,611,189 | |||||||||||
Mexico (10.6%) | |||||||||||
Mexican Cetes (MXN) 4.421%, 03/02/17 (c) | 8,573,700 | 412,074 | |||||||||
4.607%, 05/25/17 (c) | 95,203,500 | 4,508,020 | |||||||||
4.805%, 03/30/17 (c) | 26,137,900 | 1,250,113 | |||||||||
4.968%, 02/16/17 (c) | 3,605,100 | 173,657 | |||||||||
5.009%, 03/16/17 (c) | 6,908,500 | 331,171 | |||||||||
5.029%, 04/27/17 (c) | 1,104,600 | 52,572 | |||||||||
5.047%, 04/12/17 (c) | 15,059,700 | 718,654 | |||||||||
5.115%, 05/11/17 (c) | 16,515,400 | 784,040 | |||||||||
5.140%, 07/06/17 (c) | 11,284,200 | 530,478 | |||||||||
5.205%, 07/20/17 (c) | 22,248,700 | 1,043,399 | |||||||||
5.294%, 09/14/17 (c) | 14,965,600 | 695,065 | |||||||||
5.769%, 11/09/17 (c) | 26,615,100 | 1,224,101 | |||||||||
11,723,344 |
Shares/ Principal(b) | Value(a) | ||||||||||
Philippines (2.1%) | |||||||||||
Philippine Treasury Bill (PHP) 1.134%, 04/19/17 (c) (f) | 640,000 | $ | 12,814 | ||||||||
1.135%, 03/08/17 (c) (f) | 360,000 | 7,220 | |||||||||
1.163%, 03/29/17 (c) | 29,270,000 | 585,409 | |||||||||
1.164%, 02/08/17 (c) | 2,310,000 | 46,200 | |||||||||
1.203%, 02/15/17 (c) (f) | 990,000 | 19,876 | |||||||||
1.341%, 02/22/17 (c) | 4,970,000 | 98,655 | |||||||||
1.352%, 09/27/17 (c) | 55,340,000 | 1,098,427 | |||||||||
1.385%, 01/18/17 (c) | 12,450,000 | 247,029 | |||||||||
1.433%, 06/07/17 (c) | 2,360,000 | 46,761 | |||||||||
1.495%, 05/03/17 (c) | 4,620,000 | 91,573 | |||||||||
1.692%, 03/15/17 (c) | 5,440,000 | 108,636 | |||||||||
2,362,600 | |||||||||||
South Korea (0.1%) | |||||||||||
Korea Monetary Stabilization Bond (KRW) 1.570%, 01/09/17 | 55,000,000 | 45,541 | |||||||||
United States (9.0%) | |||||||||||
Federal Home Loan Bank (USD) 0.304%, 01/03/17 (c) | 10,000,000 | 9,999,833 | |||||||||
U.S. Treasury Bill (USD) 0.000%, 03/16/17 (c) | 8,000 | 7,992 | |||||||||
10,007,825 | |||||||||||
Investment Companies (18.6%) | |||||||||||
United States (18.6%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund (USD), current rate 0.420% | 20,702,057 | 20,702,057 | |||||||||
Total short-term securities (cost: $47,795,795) | 46,452,556 | ||||||||||
Total investments in securities (cost: $106,693,159) (g) | 104,543,184 | ||||||||||
Cash and other assets in excess of liabilities (5.8%) | 6,462,282 | ||||||||||
Total net assets (100.0%) | $ | 111,005,466 |
See accompanying notes to financial statements.
72
SFT Advantus International Bond Fund
Investments in Securities – continued
Foreign Forward Currency Contracts
On December 31, 2016, 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 | |||||||||||||||||||||||
01/09/17 | 126,422 | USD | 515,800 | MYR | $ | (11,465 | ) | DBK | |||||||||||||||||||
01/09/17 | 737,103 | EUR | 793,348 | USD | 15,609 | HSB | |||||||||||||||||||||
01/09/17 | 535,000 | EUR | 602,276 | USD | 37,783 | HSB | |||||||||||||||||||||
01/09/17 | 366,500 | EUR | 412,602 | USD | 25,897 | JPM | |||||||||||||||||||||
01/09/17 | 441,071 | USD | 292,805,000 | CLP | (4,020 | ) | MSC | ||||||||||||||||||||
01/10/17 | 10,873,000 | JPY | 92,808 | USD | (458 | ) | GSC | ||||||||||||||||||||
01/11/17 | 62,600,000 | JPY | 626,821 | USD | 89,804 | BCB | |||||||||||||||||||||
01/11/17 | 75,000 | EUR | 84,160 | USD | 5,014 | GSC | |||||||||||||||||||||
01/11/17 | 24,978 | USD | 100,000 | MYR | (2,693 | ) | HSB | ||||||||||||||||||||
01/11/17 | 306,851 | EUR | 344,741 | USD | 20,927 | HSB | |||||||||||||||||||||
01/11/17 | 122,087 | USD | 82,000,000 | CLP | 296 | JPM | |||||||||||||||||||||
01/11/17 | 294,000 | EUR | 329,853 | USD | 19,601 | MSC | |||||||||||||||||||||
01/11/17 | 30,600 | EUR | 34,394 | USD | 2,103 | SCB | |||||||||||||||||||||
01/12/17 | 805,000 | EUR | 901,141 | USD | 51,604 | BOA | |||||||||||||||||||||
01/12/17 | 92,494 | USD | 62,206,750 | CLP | 342 | DBK | |||||||||||||||||||||
01/13/17 | 33,230,000 | JPY | 326,599 | USD | 41,495 | BCB | |||||||||||||||||||||
01/13/17 | 602,000 | EUR | 669,821 | USD | 34,488 | HSB | |||||||||||||||||||||
01/13/17 | 3,206,080 | EUR | 3,527,329 | USD | 143,724 | SCB | |||||||||||||||||||||
01/17/17 | 80,099 | EUR | 87,483 | USD | 2,934 | BCB | |||||||||||||||||||||
01/17/17 | 9,980,000 | JPY | 85,705 | USD | 63 | CIT | |||||||||||||||||||||
01/17/17 | 92,405 | USD | 62,206,750 | CLP | 399 | DBK | |||||||||||||||||||||
01/17/17 | 412,000 | EUR | 445,092 | USD | 10,203 | JPM | |||||||||||||||||||||
01/17/17 | 1,023,863 | EUR | 1,117,444 | USD | 36,701 | JPM | |||||||||||||||||||||
01/17/17 | 29,920,000 | JPY | 256,167 | USD | (586 | ) | SCB | ||||||||||||||||||||
01/18/17 | 129,638 | USD | 87,130,000 | CLP | 338 | DBK | |||||||||||||||||||||
01/18/17 | 153,000 | EUR | 169,383 | USD | 7,876 | GSC | |||||||||||||||||||||
01/18/17 | 69,949 | USD | 47,223,000 | CLP | 497 | GSC | |||||||||||||||||||||
01/18/17 | 188,532 | USD | 127,280,000 | CLP | 1,339 | GSC | |||||||||||||||||||||
01/18/17 | 57,149 | USD | 3,868,000 | INR | (223 | ) | JPS | ||||||||||||||||||||
01/19/17 | 35,690,000 | JPY | 340,359 | USD | 34,064 | HSB | |||||||||||||||||||||
01/19/17 | 636,000 | EUR | 704,373 | USD | 32,982 | JPM | |||||||||||||||||||||
01/19/17 | 118,019 | USD | 467,000 | MYR | (13,969 | ) | JPS | ||||||||||||||||||||
01/19/17 | 45,710,000 | JPY | 436,341 | USD | 44,053 | SCB | |||||||||||||||||||||
01/20/17 | 469,017 | USD | 31,697,000 | INR | (2,626 | ) | DBK | ||||||||||||||||||||
01/20/17 | 150,444 | USD | 101,735,000 | CLP | 1,298 | DBK | |||||||||||||||||||||
01/23/17 | 91,427 | USD | 366,000 | MYR | (9,889 | ) | DBK | ||||||||||||||||||||
01/23/17 | 501,790 | EUR | 553,851 | USD | 24,046 | DBK | |||||||||||||||||||||
01/23/17 | 139,000 | EUR | 153,512 | USD | 6,751 | DBK | |||||||||||||||||||||
01/23/17 | 10,020,000 | JPY | 86,810 | USD | 801 | DBK | |||||||||||||||||||||
01/23/17 | 174,750 | EUR | 192,491 | USD | 7,985 | DBK | |||||||||||||||||||||
01/23/17 | 205,401 | EUR | 918,000 | MYR | (12,354 | ) | DBK | ||||||||||||||||||||
01/23/17 | 262,836 | EUR | 1,180,000 | MYR | (14,626 | ) | JPS | ||||||||||||||||||||
01/24/17 | 154,903 | USD | 104,265,000 | CLP | 571 | DBK | |||||||||||||||||||||
01/24/17 | 38,653 | USD | 25,965,000 | CLP | 65 | JPM | |||||||||||||||||||||
01/25/17 | 74,669 | USD | 5,058,000 | INR | (283 | ) | DBK | ||||||||||||||||||||
01/25/17 | 103,905 | USD | 418,635 | MYR | (10,646 | ) | HSB | ||||||||||||||||||||
01/25/17 | 208,737 | USD | 841,000 | MYR | (21,386 | ) | HSB | ||||||||||||||||||||
01/25/17 | 51,000,000 | JPY | 483,830 | USD | 46,022 | JPM | |||||||||||||||||||||
01/25/17 | 2,305,235 | USD | 156,094,362 | INR | (9,626 | ) | JPS | ||||||||||||||||||||
01/26/17 | 156,878 | USD | 628,000 | MYR | (16,982 | ) | DBK | ||||||||||||||||||||
01/27/17 | 362,540 | EUR | 397,429 | USD | 14,582 | BCB | |||||||||||||||||||||
01/27/17 | 111,158 | USD | 445,000 | MYR | (12,030 | ) | DBK | ||||||||||||||||||||
01/27/17 | 263,982 | EUR | 1,180,000 | MYR | (15,912 | ) | DBK | ||||||||||||||||||||
01/27/17 | 279,938 | USD | 18,951,166 | INR | (1,289 | ) | DBK | ||||||||||||||||||||
01/27/17 | 206,314 | USD | 13,967,000 | INR | (950 | ) | DBK | ||||||||||||||||||||
01/27/17 | 52,800,000 | JPY | 450,733 | USD | (2,568 | ) | GSC | ||||||||||||||||||||
01/27/17 | 184,000 | EUR | 201,920 | USD | 7,614 | GSC | |||||||||||||||||||||
01/27/17 | 17,600,000 | JPY | 150,249 | USD | (851 | ) | JPM |
See accompanying notes to financial statements.
73
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
01/27/17 | 353,149 | USD | 23,887,000 | INR | $ | (1,925 | ) | JPS | |||||||||||||||||||
01/27/17 | 197,936 | USD | 130,617,750 | CLP | (3,207 | ) | MSC | ||||||||||||||||||||
01/30/17 | 519,984 | EUR | 570,126 | USD | 20,945 | CIT | |||||||||||||||||||||
01/30/17 | 560,818 | USD | 519,984 | EUR | (11,638 | ) | CIT | ||||||||||||||||||||
01/30/17 | 207,232 | EUR | 227,331 | USD | 8,464 | DBK | |||||||||||||||||||||
01/30/17 | 322,491 | USD | 216,827,000 | CLP | 693 | DBK | |||||||||||||||||||||
01/31/17 | 789,099 | EUR | 865,343 | USD | 31,901 | BCB | |||||||||||||||||||||
01/31/17 | 122,716 | EUR | 134,567 | USD | 4,955 | BCB | |||||||||||||||||||||
01/31/17 | 2,701,600 | EUR | 2,963,385 | USD | 109,968 | BOA | |||||||||||||||||||||
01/31/17 | 326,301 | USD | 216,827,000 | CLP | (3,140 | ) | DBK | ||||||||||||||||||||
01/31/17 | 161,305 | USD | 108,413,000 | CLP | 275 | DBK | |||||||||||||||||||||
01/31/17 | 64,982,551 | JPY | 554,932 | USD | (3,061 | ) | HSB | ||||||||||||||||||||
01/31/17 | 297,547 | USD | 20,094,000 | INR | (2,214 | ) | HSB | ||||||||||||||||||||
01/31/17 | 100,782 | USD | 419,000 | MYR | (7,455 | ) | JPS | ||||||||||||||||||||
02/01/17 | 535,000 | EUR | 587,125 | USD | 22,036 | JPM | |||||||||||||||||||||
02/02/17 | 376,000 | EUR | 413,352 | USD | 16,188 | CIT | |||||||||||||||||||||
02/02/17 | 405,584 | USD | 376,000 | EUR | (8,420 | ) | CIT | ||||||||||||||||||||
02/03/17 | 699,000 | EUR | 774,240 | USD | 35,864 | BOA | |||||||||||||||||||||
02/03/17 | 820,000 | EUR | 904,722 | USD | 38,530 | DBK | |||||||||||||||||||||
02/03/17 | 1,908,946 | EUR | 8,809,788 | MYR | (54,371 | ) | JPS | ||||||||||||||||||||
02/03/17 | 57,321 | USD | 3,868,000 | INR | (488 | ) | JPS | ||||||||||||||||||||
02/06/17 | 65,971 | USD | 43,367,000 | CLP | (1,364 | ) | JPM | ||||||||||||||||||||
02/06/17 | 329,279 | USD | 216,599,500 | CLP | (6,591 | ) | MSC | ||||||||||||||||||||
02/07/17 | 161,984 | USD | 10,920,000 | INR | (1,604 | ) | HSB | ||||||||||||||||||||
02/08/17 | 335,000 | EUR | 379,597 | USD | 25,647 | BCB | |||||||||||||||||||||
02/08/17 | 266,300 | EUR | 297,031 | USD | 15,668 | CIT | |||||||||||||||||||||
02/08/17 | 76,884 | EUR | 85,756 | USD | 4,523 | CIT | |||||||||||||||||||||
02/08/17 | 287,330 | USD | 266,300 | EUR | (5,966 | ) | CIT | ||||||||||||||||||||
02/08/17 | 284,882 | USD | 19,213,833 | INR | (2,725 | ) | DBK | ||||||||||||||||||||
02/08/17 | 356,428 | USD | 233,995,000 | CLP | (7,865 | ) | DBK | ||||||||||||||||||||
02/08/17 | 281,581 | USD | 1,143,865 | MYR | (26,854 | ) | HSB | ||||||||||||||||||||
02/09/17 | 454,000 | EUR | 514,661 | USD | 34,959 | CIT | |||||||||||||||||||||
02/09/17 | 14,673,000 | JPY | 127,259 | USD | 1,214 | CIT | |||||||||||||||||||||
02/09/17 | 489,875 | USD | 454,000 | EUR | (10,173 | ) | CIT | ||||||||||||||||||||
02/09/17 | 2,906,000 | EUR | 3,231,821 | USD | 161,302 | DBK | |||||||||||||||||||||
02/09/17 | 72,635 | USD | 47,932,000 | CLP | (1,239 | ) | DBK | ||||||||||||||||||||
02/09/17 | 51,000 | EUR | 57,569 | USD | 3,682 | GSC | |||||||||||||||||||||
02/10/17 | 61,530,000 | JPY | 604,605 | USD | 76,020 | CIT | |||||||||||||||||||||
02/10/17 | 210,000 | EUR | 236,527 | USD | 14,628 | DBK | |||||||||||||||||||||
02/10/17 | 37,430 | USD | 2,528,000 | INR | (315 | ) | DBK | ||||||||||||||||||||
02/10/17 | 158,000 | EUR | 177,788 | USD | 10,835 | HSB | |||||||||||||||||||||
02/13/17 | 730,000 | EUR | 836,507 | USD | 65,040 | BCB | |||||||||||||||||||||
02/13/17 | 107,000 | EUR | 121,830 | USD | 8,752 | GSC | |||||||||||||||||||||
02/13/17 | 7,421 | USD | 30,000 | MYR | (741 | ) | HSB | ||||||||||||||||||||
02/13/17 | 4,947 | USD | 20,000 | MYR | (494 | ) | HSB | ||||||||||||||||||||
02/14/17 | 449,300 | EUR | 496,530 | USD | 21,686 | BCB | |||||||||||||||||||||
02/14/17 | 1,686,071 | EUR | 1,861,001 | USD | 79,073 | CIT | |||||||||||||||||||||
02/14/17 | 1,388,914 | EUR | 1,518,944 | USD | 51,067 | CIT | |||||||||||||||||||||
02/14/17 | 758,475 | EUR | 829,590 | USD | 27,993 | DBK | |||||||||||||||||||||
02/14/17 | 677,175 | EUR | 744,838 | USD | 29,164 | DBK | |||||||||||||||||||||
02/14/17 | 82,000 | EUR | 90,409 | USD | 3,747 | GSC | |||||||||||||||||||||
02/14/17 | 16,000 | EUR | 17,655 | USD | 745 | SCB | |||||||||||||||||||||
02/14/17 | 301,000 | EUR | 329,565 | USD | 11,452 | SCB | |||||||||||||||||||||
02/15/17 | 176,777 | USD | 117,115,000 | CLP | (2,392 | ) | MSC | ||||||||||||||||||||
02/16/17 | 15,430,000 | JPY | 136,199 | USD | 3,610 | DBK | |||||||||||||||||||||
02/16/17 | 478,250 | USD | 1,927,206 | MYR | (49,184 | ) | DBK | ||||||||||||||||||||
02/16/17 | 234,490 | USD | 15,917,000 | INR | (973 | ) | DBK | ||||||||||||||||||||
02/16/17 | 126,000 | EUR | 134,562 | USD | 1,386 | GSC | |||||||||||||||||||||
02/16/17 | 14,652,000 | JPY | 129,583 | USD | 3,680 | GSC | |||||||||||||||||||||
02/16/17 | 210,000 | EUR | 239,478 | USD | 17,519 | GSC | |||||||||||||||||||||
02/16/17 | 6,828,270 | JPY | 61,398 | USD | 2,723 | GSC | |||||||||||||||||||||
02/16/17 | 51,452 | USD | 225,000 | MYR | (1,359 | ) | HSB | ||||||||||||||||||||
02/16/17 | 382,816 | USD | 25,664,000 | INR | (6,302 | ) | HSB | ||||||||||||||||||||
02/16/17 | 8,030,000 | JPY | 79,400 | USD | 10,399 | JPM |
See accompanying notes to financial statements.
74
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
02/16/17 | 3,040,000 | AUD | 2,284,074 | USD | $ | 85,197 | JPM | ||||||||||||||||||||
02/16/17 | 160,000 | EUR | 182,309 | USD | 13,197 | SCB | |||||||||||||||||||||
02/17/17 | 115,000 | EUR | 123,982 | USD | 2,427 | DBK | |||||||||||||||||||||
02/17/17 | 272,132 | USD | 183,689,250 | CLP | 1,350 | DBK | |||||||||||||||||||||
02/21/17 | 1,464,000,000 | KRW | 1,254,499 | USD | 42,042 | CIT | |||||||||||||||||||||
02/21/17 | 403,000 | AUD | 303,903 | USD | 12,442 | CIT | |||||||||||||||||||||
02/21/17 | 113,543 | USD | 485,000 | MYR | (5,580 | ) | HSB | ||||||||||||||||||||
02/21/17 | 1,004,000 | EUR | 1,082,633 | USD | 21,217 | HSB | |||||||||||||||||||||
02/21/17 | 510,253 | EUR | 550,216 | USD | 10,783 | HSB | |||||||||||||||||||||
02/21/17 | 40,507 | USD | 27,567,093 | CLP | 526 | JPM | |||||||||||||||||||||
02/21/17 | 350,896 | USD | 24,082,000 | INR | 2,196 | JPS | |||||||||||||||||||||
02/22/17 | 271,780 | EUR | 290,409 | USD | 3,074 | BCB | |||||||||||||||||||||
02/22/17 | 253,000 | EUR | 284,208 | USD | 16,727 | BCB | |||||||||||||||||||||
02/22/17 | 32,855 | EUR | 35,004 | USD | 268 | JPM | |||||||||||||||||||||
02/22/17 | 41,057 | USD | 27,897,907 | CLP | 467 | JPM | |||||||||||||||||||||
02/23/17 | 119,438 | EUR | 127,560 | USD | 1,280 | BOA | |||||||||||||||||||||
02/23/17 | 642,000 | EUR | 685,784 | USD | 7,009 | JPM | |||||||||||||||||||||
02/23/17 | 524,000 | EUR | 558,322 | USD | 4,306 | MSC | |||||||||||||||||||||
02/23/17 | 33,313 | EUR | 35,579 | USD | 358 | UBS | |||||||||||||||||||||
02/27/17 | 107,378 | EUR | 114,560 | USD | 1,011 | BCB | |||||||||||||||||||||
02/27/17 | 131,855 | EUR | 140,559 | USD | 1,125 | BOA | |||||||||||||||||||||
02/27/17 | 378,497 | USD | 257,340,000 | CLP | 4,415 | DBK | |||||||||||||||||||||
02/27/17 | 154,000 | EUR | 164,146 | USD | 1,294 | GSC | |||||||||||||||||||||
02/27/17 | 45,752,000 | JPY | 413,144 | USD | 19,810 | HSB | |||||||||||||||||||||
02/27/17 | 19,720,000 | JPY | 178,071 | USD | 8,536 | HSB | |||||||||||||||||||||
02/27/17 | 138,764 | USD | 9,556,000 | INR | 1,245 | JPS | |||||||||||||||||||||
02/27/17 | 192,680 | USD | 130,617,750 | CLP | 1,674 | MSC | |||||||||||||||||||||
02/27/17 | 743,770 | EUR | 793,127 | USD | 6,609 | SCB | |||||||||||||||||||||
02/27/17 | 616,157 | EUR | 657,322 | USD | 5,752 | UBS | |||||||||||||||||||||
02/28/17 | 54,600,000 | JPY | 538,477 | USD | 69,055 | BCB | |||||||||||||||||||||
02/28/17 | 175,320 | USD | 119,882,000 | CLP | 3,050 | CIT | |||||||||||||||||||||
02/28/17 | 54,300 | EUR | 60,607 | USD | 3,183 | DBK | |||||||||||||||||||||
02/28/17 | 296,080 | USD | 202,474,000 | CLP | 5,177 | DBK | |||||||||||||||||||||
02/28/17 | 22,848,000 | JPY | 225,348 | USD | 28,912 | JPM | |||||||||||||||||||||
02/28/17 | 535,000 | EUR | 568,296 | USD | 2,521 | SCB | |||||||||||||||||||||
03/01/17 | 485,214 | EUR | 542,018 | USD | 28,870 | DBK | |||||||||||||||||||||
03/03/17 | 44,000,000 | JPY | 394,711 | USD | 16,372 | JPM | |||||||||||||||||||||
03/06/17 | 228,417 | EUR | 243,731 | USD | 2,109 | BCB | |||||||||||||||||||||
03/06/17 | 143,856 | USD | 97,750,000 | CLP | 1,533 | DBK | |||||||||||||||||||||
03/06/17 | 20,800,000 | JPY | 185,218 | USD | 6,343 | HSB | |||||||||||||||||||||
03/07/17 | 158,417 | EUR | 170,207 | USD | 2,622 | BCB | |||||||||||||||||||||
03/07/17 | 13,000 | EUR | 14,411 | USD | 658 | DBK | |||||||||||||||||||||
03/07/17 | 1,494,000,000 | KRW | 1,277,469 | USD | 40,041 | GSC | |||||||||||||||||||||
03/09/17 | 57,903,900 | JPY | 575,668 | USD | 77,630 | BCB | |||||||||||||||||||||
03/13/17 | 982,000 | AUD | 750,415 | USD | 40,548 | CIT | |||||||||||||||||||||
03/13/17 | 22,100,000 | JPY | 192,619 | USD | 2,494 | DBK | |||||||||||||||||||||
03/13/17 | 133,550 | EUR | 141,596 | USD | 264 | DBK | |||||||||||||||||||||
03/13/17 | 201,514 | USD | 134,309,250 | CLP | (1,842 | ) | DBK | ||||||||||||||||||||
03/13/17 | 1,467,000 | AUD | 1,095,424 | USD | 34,960 | JPM | |||||||||||||||||||||
03/14/17 | 989,000 | AUD | 738,902 | USD | 23,991 | CIT | |||||||||||||||||||||
03/14/17 | 240,966 | USD | 16,470,000 | INR | (112 | ) | DBK | ||||||||||||||||||||
03/14/17 | 994,000 | AUD | 736,256 | USD | 17,731 | JPM | |||||||||||||||||||||
03/14/17 | 494,000 | AUD | 365,906 | USD | 8,812 | JPM | |||||||||||||||||||||
03/15/17 | 55,874 | EUR | 59,567 | USD | 430 | CIT | |||||||||||||||||||||
03/15/17 | 27,000 | EUR | 28,786 | USD | 209 | JPM | |||||||||||||||||||||
03/15/17 | 89,000 | EUR | 94,890 | USD | 692 | JPM | |||||||||||||||||||||
03/15/17 | 3,616,725 | USD | 50,417,142,846 | IDR | 89,173 | JPS | |||||||||||||||||||||
03/16/17 | 74,100 | AUD | 55,362 | USD | 1,800 | CIT | |||||||||||||||||||||
03/16/17 | 327,271 | EUR | 350,065 | USD | 3,658 | JPM | |||||||||||||||||||||
03/16/17 | 437,000 | EUR | 465,921 | USD | 3,369 | MSC | |||||||||||||||||||||
03/17/17 | 64,709 | USD | 4,419,000 | INR | (112 | ) | CIT | ||||||||||||||||||||
03/17/17 | 370,000 | AUD | 269,730 | USD | 2,290 | JPM | |||||||||||||||||||||
03/20/17 | 1,017,000,000 | KRW | 928,386 | USD | 85,978 | CIT | |||||||||||||||||||||
03/20/17 | 149,300 | AUD | 111,698 | USD | 3,790 | CIT |
See accompanying notes to financial statements.
75
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
03/20/17 | 999,000,000 | KRW | 915,087 | USD | $ | 87,588 | HSB | ||||||||||||||||||||
03/20/17 | 852,244 | USD | 999,000,000 | KRW | (24,745 | ) | HSB | ||||||||||||||||||||
03/20/17 | 4,111,000 | AUD | 3,022,407 | USD | 51,147 | JPM | |||||||||||||||||||||
03/21/17 | 22,560,000 | JPY | 221,785 | USD | 27,619 | BCB | |||||||||||||||||||||
03/23/17 | 77,666,000 | JPY | 769,008 | USD | 100,493 | CIT | |||||||||||||||||||||
03/23/17 | 28,159,000 | JPY | 278,912 | USD | 36,532 | DBK | |||||||||||||||||||||
03/23/17 | 29,650,000 | JPY | 293,628 | USD | 38,414 | MSC | |||||||||||||||||||||
03/24/17 | 42,092,130 | JPY | 416,793 | USD | 54,463 | BCB | |||||||||||||||||||||
03/27/17 | 1,195,000,000 | KRW | 1,067,298 | USD | 77,408 | HSB | |||||||||||||||||||||
03/27/17 | 1,019,451 | USD | 1,195,000,000 | KRW | (29,561 | ) | HSB | ||||||||||||||||||||
03/28/17 | 1,200,000,000 | KRW | 1,083,179 | USD | 89,142 | HSB | |||||||||||||||||||||
03/28/17 | 1,023,716 | USD | 1,200,000,000 | KRW | (29,679 | ) | HSB | ||||||||||||||||||||
03/31/17 | 39,599 | USD | 160,000 | MYR | (4,027 | ) | HSB | ||||||||||||||||||||
03/31/17 | 9,763,000 | JPY | 87,173 | USD | 3,101 | JPM | |||||||||||||||||||||
04/04/17 | 47,249,763 | MXN | 2,463,581 | USD | 197,221 | CIT | |||||||||||||||||||||
04/04/17 | 2,646,601 | USD | 47,249,763 | MXN | (380,240 | ) | CIT | ||||||||||||||||||||
04/04/17 | 186,086 | USD | 769,000 | MYR | (15,140 | ) | HSB | ||||||||||||||||||||
04/07/17 | 213,674,871 | JPY | 8,700,000 | MYR | 93,140 | JPS | |||||||||||||||||||||
04/11/17 | 59,513 | USD | 233,000 | MYR | (7,727 | ) | JPS | ||||||||||||||||||||
04/13/17 | 12,300,000 | JPY | 115,602 | USD | 9,611 | CIT | |||||||||||||||||||||
04/18/17 | 22,030,000 | JPY | 204,848 | USD | 14,964 | BOA | |||||||||||||||||||||
04/18/17 | 372,196 | USD | 1,465,895 | MYR | (46,449 | ) | DBK | ||||||||||||||||||||
04/21/17 | 29,220,000 | JPY | 270,953 | USD | 19,057 | JPM | |||||||||||||||||||||
04/24/17 | 27,530,000 | JPY | 266,987 | USD | 29,624 | BCB | |||||||||||||||||||||
04/24/17 | 142,170,490 | JPY | 1,320,048 | USD | 94,255 | JPM | |||||||||||||||||||||
04/25/17 | 1,595,000,000 | KRW | 1,399,307 | USD | 77,676 | HSB | |||||||||||||||||||||
04/25/17 | 1,360,747 | USD | 1,595,000,000 | KRW | (39,116 | ) | HSB | ||||||||||||||||||||
04/26/17 | 444,000,000 | KRW | 387,451 | USD | 19,545 | HSB | |||||||||||||||||||||
05/02/17 | 536,000,000 | KRW | 468,061 | USD | 23,889 | HSB | |||||||||||||||||||||
05/15/17 | 1,020,000,000 | KRW | 890,285 | USD | 44,899 | CIT | |||||||||||||||||||||
05/15/17 | 19,620,000 | JPY | 189,373 | USD | 20,026 | GSC | |||||||||||||||||||||
05/15/17 | 22,910,000 | JPY | 221,160 | USD | 23,416 | HSB | |||||||||||||||||||||
05/15/17 | 14,666,000 | JPY | 142,210 | USD | 15,622 | SCB | |||||||||||||||||||||
05/16/17 | 563,000,000 | KRW | 489,650 | USD | 23,024 | CIT | |||||||||||||||||||||
05/16/17 | 18,200,000 | JPY | 169,283 | USD | 12,185 | MSC | |||||||||||||||||||||
05/16/17 | 13,769,800 | JPY | 128,258 | USD | 9,400 | SCB | |||||||||||||||||||||
05/17/17 | 1,375,000,000 | KRW | 1,175,666 | USD | 36,024 | HSB | |||||||||||||||||||||
05/18/17 | 74,624,550 | JPY | 695,995 | USD | 51,785 | BOA | |||||||||||||||||||||
05/18/17 | 74,514,200 | JPY | 694,625 | USD | 51,369 | CIT | |||||||||||||||||||||
05/18/17 | 120,547,000 | JPY | 1,112,930 | USD | 72,287 | CIT | |||||||||||||||||||||
05/18/17 | 758,000,000 | KRW | 647,697 | USD | 19,436 | HSB | |||||||||||||||||||||
05/19/17 | 74,400,375 | JPY | 691,132 | USD | 48,825 | BOA | |||||||||||||||||||||
05/19/17 | 99,540 | USD | 405,080 | MYR | (9,595 | ) | DBK | ||||||||||||||||||||
05/19/17 | 74,662,400 | JPY | 693,566 | USD | 48,997 | HSB | |||||||||||||||||||||
05/22/17 | 74,602,500 | JPY | 690,410 | USD | 46,258 | BOA | |||||||||||||||||||||
05/22/17 | 610,000,000 | KRW | 519,516 | USD | 13,898 | DBK | |||||||||||||||||||||
05/22/17 | 41,201,000 | JPY | 382,514 | USD | 26,766 | JPM | |||||||||||||||||||||
05/25/17 | 64,764,000 | JPY | 588,914 | USD | 29,625 | BOA | |||||||||||||||||||||
05/25/17 | 11,968,000 | JPY | 109,187 | USD | 5,834 | HSB | |||||||||||||||||||||
06/02/17 | 1,449,000,000 | KRW | 1,240,051 | USD | 38,842 | HSB | |||||||||||||||||||||
06/08/17 | 46,300,000 | JPY | 438,596 | USD | 38,470 | CIT | |||||||||||||||||||||
06/09/17 | 69,400,000 | JPY | 614,159 | USD | 14,371 | HSB | |||||||||||||||||||||
06/13/17 | 66,670,000 | JPY | 585,081 | USD | 8,768 | HSB | |||||||||||||||||||||
06/15/17 | 763,000,000 | KRW | 658,553 | USD | 25,932 | CIT | |||||||||||||||||||||
06/16/17 | 17,886,000 | JPY | 171,554 | USD | 16,918 | CIT | |||||||||||||||||||||
06/16/17 | 46,950,000 | JPY | 411,842 | USD | 5,931 | HSB | |||||||||||||||||||||
06/16/17 | 26,000,000 | JPY | 249,273 | USD | 24,487 | JPM | |||||||||||||||||||||
06/19/17 | 46,870,000 | JPY | 448,787 | USD | 43,505 | DBK | |||||||||||||||||||||
06/20/17 | 35,200,000 | JPY | 342,955 | USD | 38,566 | CIT | |||||||||||||||||||||
06/20/17 | 607,000,000 | KRW | 519,959 | USD | 16,651 | DBK | |||||||||||||||||||||
06/22/17 | 46,960,000 | JPY | 456,277 | USD | 50,153 | DBK | |||||||||||||||||||||
07/13/17 | 254,066 | USD | 1,023,987 | MYR | (27,012 | ) | HSB | ||||||||||||||||||||
07/14/17 | 253,138 | USD | 1,023,565 | MYR | (26,183 | ) | DBK | ||||||||||||||||||||
07/14/17 | 286,880 | USD | 1,160,000 | MYR | (29,673 | ) | DBK |
See accompanying notes to financial statements.
76
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
07/14/17 | 21,600,000 | JPY | 211,102 | USD | $ | 24,081 | JPM | ||||||||||||||||||||
07/20/17 | 58,134 | USD | 232,000 | MYR | (6,700 | ) | DBK | ||||||||||||||||||||
07/20/17 | 180,514 | EUR | 813,000 | MYR | (12,070 | ) | DBK | ||||||||||||||||||||
07/25/17 | 32,786,000 | JPY | 314,012 | USD | 29,966 | CIT | |||||||||||||||||||||
07/31/17 | 60,350,000 | JPY | 581,046 | USD | 58,022 | BCB | |||||||||||||||||||||
07/31/17 | 50,203,538 | JPY | 483,591 | USD | 48,502 | DBK | |||||||||||||||||||||
08/15/17 | 15,430,000 | JPY | 155,131 | USD | 21,296 | BCB | |||||||||||||||||||||
08/18/17 | 51,438,000 | JPY | 520,838 | USD | 74,609 | DBK | |||||||||||||||||||||
08/22/17 | 96,755,000 | JPY | 981,288 | USD | 141,744 | HSB | |||||||||||||||||||||
08/22/17 | 69,639,000 | JPY | 706,324 | USD | 102,066 | JPM | |||||||||||||||||||||
08/24/17 | 23,068,000 | JPY | 233,549 | USD | 33,366 | BCB | |||||||||||||||||||||
08/24/17 | 22,797,000 | JPY | 231,141 | USD | 33,310 | DBK | |||||||||||||||||||||
08/28/17 | 65,692,000 | JPY | 664,949 | USD | 94,750 | JPM | |||||||||||||||||||||
08/30/17 | 38,472,000 | JPY | 390,414 | USD | 56,445 | DBK | |||||||||||||||||||||
08/30/17 | 33,447,000 | JPY | 338,738 | USD | 48,390 | JPM | |||||||||||||||||||||
09/01/17 | 73,808,000 | JPY | 732,949 | USD | 92,163 | HSB | |||||||||||||||||||||
11/09/17 | 13,826,020 | JPY | 134,722 | USD | 14,195 | CIT | |||||||||||||||||||||
11/14/17 | 34,439,000 | JPY | 335,735 | USD | 35,419 | CIT | |||||||||||||||||||||
11/14/17 | 13,582,000 | JPY | 132,635 | USD | 14,197 | JPM | |||||||||||||||||||||
11/16/17 | 14,665,000 | JPY | 138,452 | USD | 10,554 | CIT | |||||||||||||||||||||
11/21/17 | 45,867,000 | JPY | 427,569 | USD | 27,420 | DBK | |||||||||||||||||||||
11/27/17 | 52,556,000 | JPY | 482,409 | USD | 23,729 | SCB | |||||||||||||||||||||
12/12/17 | 91,710,000 | JPY | 818,982 | USD | 17,824 | CIT | |||||||||||||||||||||
12/13/17 | 61,770,000 | JPY | 547,504 | USD | 7,863 | JPM | |||||||||||||||||||||
$ | 4,624,821 |
At December 31, 2016, the Fund had the following interest rate swap contracts outstanding.
Interest Rate Swap Contracts
Description | Counterparty | Expiration Date | Notional Amount | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||
Centrally Cleared Swaps | |||||||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.817% | CIT | 02/03/25 | $ | 440,000 | $ | 10,991 | $ | – | |||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.914% | CIT | 01/22/25 | 1,760,000 | 29,259 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.937% | CIT | 01/29/25 | 320,000 | 4,833 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.942% | CIT | 01/30/25 | 270,000 | 3,991 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.970% | CIT | 01/23/25 | 2,200,000 | 27,284 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.973% | CIT | 01/27/25 | 1,300,000 | 15,902 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.978% | CIT | 03/27/25 | 750,000 | 11,066 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 1.985% | CIT | 03/27/25 | 750,000 | 10,632 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 2.378% | CIT | 11/18/46 | 3,200,000 | 141,190 | – | ||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 2.695% | CIT | 05/09/24 | 4,260,000 | – | (158,426 | ) | |||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 2.731% | CIT | 07/08/24 | 1,250,000 | – | (61,295 | ) | |||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 3.388% | CIT | 05/09/44 | 2,028,000 | – | (330,958 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) | $ | 255,148 | $ | (550,679 | ) |
See accompanying notes to financial statements.
77
SFT Advantus International Bond 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) 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. This security has been determined to be liquid unless otherwise indicated.
(e) Variable rate security.
(f) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(g) At December 31, 2016 the cost of securities for federal income tax purposes was $106,693,159. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 3,192,591 | |||||
Gross unrealized depreciation | (5,342,566 | ) | |||||
Net unrealized depreciation | $ | (2,149,975 | ) |
Currency Legend
ARS Argentine Peso
AUD Australian Dollar
BRL Brazilian Real
CLP Chilean Peso
EUR Euro
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
LKR Sri Lankan Rupee
MXN Mexican Peso
MYR Malaysian Ringgit
PHP Philippine Peso
USD United States Dollar
ZAR South African Rand
Counterparty Legend
BCB Barclays Bank PLC
BOA Bank of America Merrill Lynch
CIT Citibank NA
DBK Deutsche Bank AG
GSC Goldman Sachs
HSB HSBC Bank PLC
JPM JPMorgan Chase Bank NA
JPS JPMorgan Chase (Singapore)
MSC Morgan Stanley and Co., Inc.
SCB Standard Chartered Bank
UBS UBS AG
See accompanying notes to financial statements.
78
SFT Advantus Managed Volatility Equity Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares/ Contracts | Value(a) | ||||||||||
Mutual Funds (89.5%) | |||||||||||
Investment Companies (89.5%) | |||||||||||
iShares Core High Dividend ETF | 435,277 | $ | 35,801,533 | ||||||||
iShares Edge MSCI Minimum Volatility EAFE ETF | 821,138 | 50,270,068 | |||||||||
iShares Edge MSCI Minimum Volatility Emerging Markets ETF | 249,395 | 12,197,910 | |||||||||
iShares Edge MSCI Minimum Volatility USA ETF (b) | 1,410,522 | 63,783,805 | |||||||||
iShares MSCI Germany ETF | 303,822 | 8,045,207 | |||||||||
iShares Short Maturity Bond ETF | 178,135 | 8,938,814 | |||||||||
Total mutual funds (cost: $179,510,538) | 179,037,337 | ||||||||||
Purchased Option (0.2%) | |||||||||||
Put Option Purchased (0.2%) | |||||||||||
SPDR S&P 500 ETF Trust, 226.50, 01/20/17 | 864 | 350,352 | |||||||||
Total purchased options (cost: $215,230) | 350,352 | ||||||||||
Short-Term Securities (13.9%) | |||||||||||
Investment Companies (13.9%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 27,896,373 | 27,896,373 | |||||||||
Total short-term securities (cost: $27,896,373) | 27,896,373 | ||||||||||
Total investments in securities (cost: $207,622,141) (c) | 207,284,062 | ||||||||||
Liabilities in excess of cash and other assets (-3.6%) | (7,146,278 | ) | |||||||||
Total net assets (100.0%) | $ | 200,137,784 |
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, 2016, securities with an aggregate market value of $1,107,890 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 2017 | 155 | Long | $ | 289,111 | ||||||||||||||
155 | $ | 289,111 |
(c) At December 31, 2016 the cost of securities for federal income tax purposes was $207,641,309. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 3,420,410 | |||||
Gross unrealized depreciation | (3,777,657 | ) | |||||
Net unrealized depreciation | $ | (357,247 | ) |
See accompanying notes to financial statements.
79
SFT Advantus Mortgage Securities Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (97.8%) | |||||||||||
Government Obligations (81.1%) | |||||||||||
Other Government Obligations (1.1%) | |||||||||||
Provincial or Local Government Obligations (1.1%) | |||||||||||
Ohio State Water Development Authority, 4.817%, 12/01/30 | $ | 250,000 | $ | 278,105 | |||||||
Texas A&M University, 4.000%, 05/15/31 | 325,000 | 329,826 | |||||||||
Utility Debt Securitization Authority, 3.435%, 12/15/25 | 355,000 | 367,017 | |||||||||
974,948 | |||||||||||
U.S. Government Agencies and Obligations (80.0%) | |||||||||||
Export-Import Bank of the United States (0.8%) | |||||||||||
DY7 Leasing LLC, 2.578%, 12/10/25 | 187,500 | 188,866 | |||||||||
Export Leasing 2009 LLC, 1.859%, 08/28/21 | 124,834 | 124,564 | |||||||||
Helios Leasing I LLC | |||||||||||
1.825%, 05/16/25 | 109,637 | 107,137 | |||||||||
2.018%, 05/29/24 | 169,713 | 167,922 | |||||||||
Union 16 Leasing LLC, 1.863%, 01/22/25 | 177,424 | 174,045 | |||||||||
762,534 | |||||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (16.5%) | |||||||||||
1.184%, 01/25/23 (b) | 446,342 | 446,784 | |||||||||
2.500%, 03/01/28 | 182,273 | 182,948 | |||||||||
2.500%, 04/01/28 | 290,997 | 291,955 | |||||||||
2.606%, 10/25/27 (b) | 304,000 | 308,353 | |||||||||
2.956%, 09/25/24 (b) | 500,000 | 510,477 | |||||||||
3.000%, 08/01/42 | 138,946 | 138,889 | |||||||||
3.000%, 12/01/42 | 281,401 | 281,286 | |||||||||
3.000%, 01/01/43 | 378,101 | 377,947 | |||||||||
3.000%, 02/01/43 | 883,725 | 883,365 | |||||||||
3.000%, 04/01/43 | 360,618 | 360,471 | |||||||||
3.000%, 10/25/46 | 396,879 | 391,026 | |||||||||
3.500%, 10/01/25 | 138,567 | 145,628 | |||||||||
3.500%, 05/01/32 | 325,756 | 338,085 | |||||||||
3.500%, 03/01/42 | 1,216,139 | 1,252,778 | |||||||||
3.500%, 08/01/42 | 320,671 | 330,352 | |||||||||
3.500%, 12/01/44 | 1,494,477 | 1,531,352 | |||||||||
3.500%, 05/25/45 | 738,969 | 741,146 | |||||||||
3.556%, 05/25/28 (b) | 250,000 | 256,604 | |||||||||
4.000%, 09/01/40 | 386,354 | 409,134 | |||||||||
4.000%, 03/01/41 | 459,462 | 486,640 | |||||||||
4.000%, 01/01/45 | 1,162,942 | 1,221,908 | |||||||||
4.056%, 10/25/27 (b) | 250,000 | 261,824 | |||||||||
4.500%, 04/01/23 | 50,580 | 54,287 | |||||||||
4.500%, 09/01/40 | 308,800 | 333,202 | |||||||||
4.500%, 01/01/41 | 348,110 | 374,774 | |||||||||
4.500%, 03/01/41 | 343,103 | 370,404 | |||||||||
4.556%, 03/25/25 (b) | 500,000 | 529,283 | |||||||||
5.000%, 03/01/23 | 41,462 | 45,117 | |||||||||
5.000%, 05/01/29 | 60,116 | 65,503 | |||||||||
5.000%, 08/01/35 | 56,277 | 61,489 |
Principal | Value(a) | ||||||||||
5.000%, 11/01/35 | $ | 58,560 | $ | 63,929 | |||||||
5.000%, 11/01/39 | 562,710 | 625,135 | |||||||||
5.000%, 03/01/40 | 398,551 | 444,239 | |||||||||
5.500%, 06/01/20 | 30,475 | 31,607 | |||||||||
5.500%, 10/01/20 | 156,518 | 163,388 | |||||||||
5.500%, 11/01/23 | 124,353 | 137,798 | |||||||||
5.500%, 05/01/34 | 202,973 | 232,082 | |||||||||
6.000%, 09/01/22 | 82,815 | 89,620 | |||||||||
6.000%, 11/01/33 | 170,215 | 196,776 | |||||||||
6.250%, 12/15/23 | 78,545 | 85,294 | |||||||||
6.500%, 11/01/32 | 55,980 | 65,332 | |||||||||
15,118,211 | |||||||||||
Federal National Mortgage Association (FNMA) (43.0%) | |||||||||||
2.106%, 01/25/29 (b) | 63,174 | 63,317 | |||||||||
2.500%, 03/01/27 | 486,434 | 488,108 | |||||||||
2.500%, 11/01/27 | 238,782 | 238,338 | |||||||||
2.500%, 03/01/28 | 515,466 | 517,049 | |||||||||
3.000%, 09/01/22 | 172,701 | 178,015 | |||||||||
3.000%, 11/01/27 | 231,519 | 238,108 | |||||||||
3.000%, 06/01/28 | 298,151 | 306,708 | |||||||||
3.000%, 01/01/32 (c) | 3,300,000 | 3,386,367 | |||||||||
3.000%, 03/01/42 | 145,003 | 144,932 | |||||||||
3.000%, 09/01/42 | 201,321 | 201,263 | |||||||||
3.000%, 03/01/43 | 144,765 | 144,723 | |||||||||
3.000%, 04/01/43 | 581,993 | 581,827 | |||||||||
3.000%, 05/01/43 | 781,879 | 781,656 | |||||||||
3.000%, 09/01/43 | 218,493 | 218,431 | |||||||||
3.000%, 01/01/46 | 520,259 | 517,404 | |||||||||
3.500%, 11/01/25 | 82,079 | 85,694 | |||||||||
3.500%, 01/01/26 | 182,407 | 190,441 | |||||||||
3.500%, 12/01/32 | 295,093 | 306,963 | |||||||||
3.500%, 11/01/40 | 260,183 | 268,339 | |||||||||
3.500%, 01/01/41 | 437,905 | 451,633 | |||||||||
3.500%, 02/01/41 | 960,134 | 990,126 | |||||||||
3.500%, 11/01/41 | 433,643 | 447,216 | |||||||||
3.500%, 12/01/41 | 837,846 | 863,960 | |||||||||
3.500%, 01/01/42 | 1,972,580 | 2,034,433 | |||||||||
3.500%, 05/01/42 | 593,361 | 611,937 | |||||||||
3.500%, 08/01/42 | 565,280 | 582,964 | |||||||||
3.500%, 01/01/43 | 341,781 | 352,497 | |||||||||
3.500%, 02/01/43 | 692,683 | 715,349 | |||||||||
3.500%, 03/01/43 | 323,020 | 333,182 | |||||||||
3.500%, 05/01/43 | 1,205,635 | 1,242,928 | |||||||||
3.500%, 06/01/45 | 1,793,106 | 1,839,539 | |||||||||
3.500%, 10/01/45 | 249,214 | 255,601 | |||||||||
3.500%, 01/01/46 | 499,544 | 513,225 | |||||||||
3.500%, 01/01/47 | 500,000 | 512,952 | |||||||||
3.500%, 01/01/47 (c) | 2,400,000 | 2,459,813 | |||||||||
4.000%, 06/25/23 | 174,828 | 181,451 | |||||||||
4.000%, 12/01/40 | 194,799 | 205,188 | |||||||||
4.000%, 04/01/41 | 165,425 | 175,223 | |||||||||
4.000%, 11/01/41 | 397,738 | 419,018 | |||||||||
4.000%, 06/01/42 | 1,008,697 | 1,065,796 | |||||||||
4.000%, 09/01/43 | 636,452 | 670,009 | |||||||||
4.000%, 10/01/43 | 1,464,900 | 1,557,099 | |||||||||
4.000%, 01/01/44 | 333,289 | 354,280 | |||||||||
4.000%, 08/01/44 | 335,588 | 353,530 | |||||||||
4.000%, 01/01/47 (c) | 750,000 | 788,481 | |||||||||
4.500%, 04/01/21 | 4,287 | 4,457 | |||||||||
4.500%, 11/01/23 | 44,793 | 48,177 |
See accompanying notes to financial statements.
80
SFT Advantus Mortgage Securities Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
4.500%, 04/01/25 | $ | 92,256 | $ | 97,764 | |||||||
4.500%, 05/25/34 | 537,000 | 601,416 | |||||||||
4.500%, 05/01/35 | 234,978 | 254,007 | |||||||||
4.500%, 07/01/35 | 237,625 | 256,655 | |||||||||
4.500%, 09/01/37 | 277,555 | 300,363 | |||||||||
5.000%, 05/01/18 | 32,904 | 33,674 | |||||||||
5.000%, 10/01/20 | 53,662 | 56,770 | |||||||||
5.000%, 06/25/23 | 168,122 | 178,735 | |||||||||
5.000%, 11/01/33 | 242,102 | 265,172 | |||||||||
5.000%, 03/01/34 | 491,594 | 538,862 | |||||||||
5.000%, 05/01/34 | 53,948 | 58,907 | |||||||||
5.000%, 12/01/34 | 48,623 | 53,392 | |||||||||
5.000%, 04/01/35 | 75,218 | 82,255 | |||||||||
5.000%, 07/01/35 | 471,320 | 517,337 | |||||||||
5.000%, 03/01/38 | 130,104 | 143,552 | |||||||||
5.000%, 06/01/39 | 204,061 | 226,812 | |||||||||
5.000%, 12/01/39 | 315,261 | 350,960 | |||||||||
5.000%, 06/01/40 | 110,481 | 122,023 | |||||||||
5.000%, 04/01/41 | 218,953 | 243,599 | |||||||||
5.500%, 02/01/18 | 18,616 | 18,883 | |||||||||
5.500%, 03/01/18 | 36,142 | 36,749 | |||||||||
5.500%, 08/01/23 | 71,630 | 79,552 | |||||||||
5.500%, 02/01/24 | 102,227 | 113,595 | |||||||||
5.500%, 04/01/33 | 359,931 | 408,029 | |||||||||
5.500%, 05/01/33 | 22,004 | 24,664 | |||||||||
5.500%, 01/01/34 | 56,637 | 63,458 | |||||||||
5.500%, 02/01/34 | 34,296 | 38,501 | |||||||||
5.500%, 04/01/34 | 87,890 | 98,532 | |||||||||
5.500%, 05/01/34 | 18,353 | 20,384 | |||||||||
5.500%, 09/01/34 | 234,231 | 264,580 | |||||||||
5.500%, 10/01/34 | 87,309 | 97,790 | |||||||||
5.500%, 01/01/35 | 146,592 | 164,975 | |||||||||
5.500%, 02/01/35 | 282,681 | 319,494 | |||||||||
5.500%, 06/01/35 | 14,474 | 16,232 | |||||||||
5.500%, 08/01/35 | 73,561 | 82,531 | |||||||||
5.500%, 10/01/35 | 53,524 | 61,389 | |||||||||
5.500%, 11/01/35 | 12,786 | 14,311 | |||||||||
5.500%, 09/01/36 | 203,975 | 228,881 | |||||||||
5.500%, 05/01/38 | 5,219 | 5,830 | |||||||||
6.000%, 09/01/32 | 22,759 | 26,508 | |||||||||
6.000%, 10/01/32 | 347,223 | 402,911 | |||||||||
6.000%, 11/01/32 | 250,136 | 289,948 | |||||||||
6.000%, 03/01/33 | 333,852 | 388,824 | |||||||||
6.000%, 04/01/33 | 46,357 | 52,476 | |||||||||
6.000%, 12/01/33 | 78,585 | 90,430 | |||||||||
6.000%, 08/01/34 | 74,738 | 85,289 | |||||||||
6.000%, 09/01/34 | 42,257 | 48,073 | |||||||||
6.000%, 11/01/34 | 24,145 | 27,576 | |||||||||
6.000%, 12/01/34 | 176,777 | 201,956 | |||||||||
6.000%, 11/01/36 | 23,964 | 27,372 | |||||||||
6.000%, 01/01/37 | 216,236 | 247,375 | |||||||||
6.000%, 08/01/37 | 57,092 | 65,101 | |||||||||
6.000%, 09/01/37 | 83,248 | 94,575 | |||||||||
6.000%, 12/01/37 | 40,432 | 45,941 | |||||||||
6.000%, 12/01/38 | 94,945 | 108,817 | |||||||||
6.500%, 11/01/23 | 65,016 | 71,579 | |||||||||
6.500%, 02/01/32 | 261,481 | 300,122 | |||||||||
6.500%, 04/01/32 | 91,357 | 105,730 | |||||||||
6.500%, 05/01/32 | 31,627 | 35,782 | |||||||||
6.500%, 07/01/32 | 317,276 | 358,955 | |||||||||
6.500%, 09/01/32 | 912 | 1,032 | |||||||||
6.500%, 09/01/34 | 23,068 | 26,098 | |||||||||
6.500%, 11/01/34 | 11,284 | 12,766 | |||||||||
6.500%, 03/01/35 | 133,919 | 156,010 |
Principal | Value(a) | ||||||||||
6.500%, 02/01/36 | $ | 23,142 | $ | 26,182 | |||||||
6.500%, 09/01/37 | 120,659 | 136,510 | |||||||||
7.000%, 09/01/31 | 131,914 | 149,038 | |||||||||
7.000%, 11/01/31 | 24,890 | 28,274 | |||||||||
7.000%, 02/01/32 | 97,966 | 115,089 | |||||||||
7.000%, 07/01/32 | 17,196 | 19,339 | |||||||||
7.000%, 10/01/37 | 16,528 | 17,510 | |||||||||
7.500%, 07/25/22 | 95,127 | 104,719 | |||||||||
7.500%, 04/01/31 | 32,858 | 35,181 | |||||||||
39,331,450 | |||||||||||
Government National Mortgage Association (GNMA) (19.6%) | |||||||||||
0.000%, 03/16/42 (b) (d) (e) | 1,121,976 | — | |||||||||
0.009%, 06/17/45 (b) (d) | 315,039 | 107 | |||||||||
0.643%, 07/16/40 (b) (d) | 224,734 | 343 | |||||||||
1.000%, 12/20/42 | 213,205 | 200,968 | |||||||||
3.000%, 09/20/42 | 572,817 | 582,437 | |||||||||
3.000%, 09/20/44 | 212,970 | 216,126 | |||||||||
3.000%, 03/15/45 | 547,710 | 554,221 | |||||||||
3.000%, 04/15/45 | 1,447,044 | 1,464,246 | |||||||||
3.000%, 05/15/45 | 192,978 | 195,272 | |||||||||
3.000%, 01/01/47 (c) | 350,000 | 354,382 | |||||||||
3.250%, 04/20/33 | 220,344 | 227,721 | |||||||||
3.250%, 03/20/35 | 1,275,292 | 1,318,074 | |||||||||
3.250%, 11/20/35 | 329,186 | 339,761 | |||||||||
3.250%, 01/20/36 | 1,190,772 | 1,229,030 | |||||||||
3.500%, 11/15/40 | 147,052 | 153,925 | |||||||||
3.500%, 10/20/43 | 425,649 | 444,465 | |||||||||
3.500%, 02/20/45 | 720,455 | 749,688 | |||||||||
3.500%, 03/20/45 | 1,100,538 | 1,145,220 | |||||||||
3.500%, 04/20/45 | 1,398,419 | 1,455,160 | |||||||||
3.500%, 04/20/46 | 345,820 | 360,016 | |||||||||
3.500%, 01/01/47 (c) | 600,000 | 623,707 | |||||||||
3.750%, 03/20/46 | 296,446 | 311,973 | |||||||||
4.000%, 07/20/31 | 519,992 | 557,076 | |||||||||
4.000%, 04/20/39 | 419,547 | 449,191 | |||||||||
4.000%, 12/20/40 | 1,077,788 | 1,160,447 | |||||||||
4.000%, 01/15/41 | 78,016 | 83,001 | |||||||||
4.000%, 02/15/41 | 521,373 | 561,010 | |||||||||
4.000%, 10/15/41 | 426,077 | 456,238 | |||||||||
4.000%, 12/20/44 | 237,866 | 252,823 | |||||||||
4.500%, 06/15/40 | 378,470 | 416,696 | |||||||||
5.000%, 05/15/33 | 121,129 | 133,888 | |||||||||
5.000%, 12/15/39 | 99,164 | 111,010 | |||||||||
5.000%, 01/15/40 | 887,072 | 974,912 | |||||||||
5.000%, 07/15/40 | 441,837 | 485,926 | |||||||||
5.500%, 07/15/38 | 148,590 | 168,474 | |||||||||
5.500%, 10/15/38 | 176,118 | 202,244 | |||||||||
17,939,778 | |||||||||||
Vendee Mortgage Trust (0.1%) | |||||||||||
Vendee Mortgage Trust, 7.793%, 02/15/25 | 60,560 | 66,236 | |||||||||
Total government obligations (cost: $73,857,813) | 74,193,157 | ||||||||||
Asset-Backed Securities (5.6%) | |||||||||||
Appalachian Consumer Rate Relief Funding LLC, 3.772%, 08/01/31 | 120,000 | 124,104 |
See accompanying notes to financial statements.
81
SFT Advantus Mortgage Securities Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Capital One Multi-Asset Execution Trust, 1.434%, 01/18/22 (b) | $ | 275,000 | $ | 275,679 | |||||||
CarMax Auto Owner Trust, 1.880%, 11/15/19 | 350,000 | 350,585 | |||||||||
CCG Receivables Trust, 1.920%, 01/17/23 (f) | 300,000 | 300,366 | |||||||||
Citibank Credit Card Issuance Trust, 1.267%, 12/07/23 (b) | 500,000 | 500,234 | |||||||||
CountryPlace Manufactured Housing Contract Trust, 5.200%, 12/15/35 (b) (f) | 245,351 | 254,405 | |||||||||
Credit Suisse First Boston Mortgage Securities Corp., 6.700%, 12/25/31 (g) | 148,054 | 149,169 | |||||||||
Credit-Based Asset Servicing and Securitization LLC, 5.205%, 10/25/36 (f) (g) | 329,461 | 339,028 | |||||||||
Entergy Gulf States Reconstruction Funding 1 LLC, 5.930%, 06/29/22 | 500,000 | 551,241 | |||||||||
FAN Engine Securitization, Ltd., 3.000%, 10/15/19 (e) (f) (h) (i) | 101,525 | 101,847 | |||||||||
FirstEnergy Ohio PIRB Special Purpose Trust, 1.726%, 01/15/22 | 200,000 | 199,654 | |||||||||
Foursight Capital Automobile Receivables Trust | |||||||||||
2.340%, 01/15/21 (f) | 238,131 | 236,730 | |||||||||
3.710%, 01/18/22 (f) | 285,000 | 279,916 | |||||||||
Lehman ABS Manufactured Housing Contract Trust, 5.873%, 04/15/40 | 106,527 | 109,909 | |||||||||
Longtrain Leasing III LLC 2015-1A Class A1, 2.980%, 01/15/45 (e) (f) | 276,726 | 268,471 | |||||||||
Origen Manufactured Housing Contract Trust, 5.910%, 01/15/37 | 415,316 | 433,512 | |||||||||
SoFi Professional Loan Program | |||||||||||
1.806%, 04/25/35 (b) (f) | 204,624 | 205,426 | |||||||||
2.006%, 08/25/32 (b) (f) | 262,998 | 264,633 | |||||||||
Trip Rail Master Funding LLC, 2.863%, 04/15/44 (f) | 189,720 | 185,214 | |||||||||
Total asset-backed securities (cost: $5,144,917) | 5,130,123 | ||||||||||
Other Mortgage-Backed Securities (6.8%) | |||||||||||
Collateralized Mortgage Obligations/ Mortgage Revenue Bonds (0.2%) | |||||||||||
Bear Stearns Mortgage Securities, Inc., 8.000%, 11/25/29 (i) | 150,977 | 130,490 | |||||||||
Prudential Home Mortgage Securities | |||||||||||
7.844%, 09/28/24 (b) (f) | 1,380 | 1,226 | |||||||||
7.900%, 04/28/22 (f) | 15,151 | 14,083 |
Principal | Value(a) | ||||||||||
Structured Asset Mortgage Investments, Inc., 1.495%, 05/02/30 (b) (i) | $ | 11,346 | $ | 2,461 | |||||||
148,260 | |||||||||||
Commercial Mortgage-Backed Securities (6.6%) | |||||||||||
7 WTC Depositor LLC Trust, 4.082%, 03/13/31 (f) | 149,270 | 151,247 | |||||||||
CFCRE Commercial Mortgage Trust, 3.839%, 12/10/54 | 500,000 | 516,572 | |||||||||
Citigroup Commercial Mortgage Trust 2.911%, 01/12/30 (b) (f) | 130,000 | 129,331 | |||||||||
3.209%, 05/10/49 | 375,000 | 373,622 | |||||||||
3.396%, 10/10/49 | 450,000 | 442,498 | |||||||||
Connecticut Avenue Securities, 1.706%, 05/25/24 (b) | 223,062 | 223,548 | |||||||||
CSMC Trust, 3.304%, 09/15/37 (f) | 400,000 | 399,808 | |||||||||
Hometown Commercial Mortgage, 5.506%, 11/11/38 (e) (f) | 43,936 | 37,624 | |||||||||
Irvine Core Office Trust, 2.068%, 05/15/48 (f) | 337,850 | 334,381 | |||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, 3.648%, 12/15/49 (b) | 400,000 | 412,773 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | |||||||||||
1.898%, 12/05/27 (b) (d) (e) (f) | 3,425,181 | 169,530 | |||||||||
3.144%, 08/15/49 | 125,000 | 121,898 | |||||||||
3.678%, 08/15/46 | 459,335 | 475,279 | |||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, 3.720%, 12/15/49 | 225,000 | 230,497 | |||||||||
Morgan Stanley Capital I Trust, 3.451%, 08/05/34 (f) | 150,000 | 149,669 | |||||||||
Multi Security Asset Trust, 5.880%, 11/28/35 (b) (e) (f) | 990,000 | 962,577 | |||||||||
Wells Fargo Commercial Mortgage Trust | |||||||||||
2.814%, 08/15/49 | 540,000 | 515,939 | |||||||||
3.096%, 06/15/49 | 400,000 | 392,498 | |||||||||
6,039,291 | |||||||||||
Total other mortgage-backed securities (cost: $6,364,475) | 6,187,551 | ||||||||||
Corporate Obligations (4.3%) | |||||||||||
Communications (0.7%) | |||||||||||
Telecommunication (0.7%) | |||||||||||
Crown Castle Towers LLC, 3.222%, 05/15/22 (f) | 425,000 | 432,025 | |||||||||
SBA Tower Trust, 2.240%, 04/16/18 (f) | 220,000 | 220,410 | |||||||||
652,435 |
See accompanying notes to financial statements.
82
SFT Advantus Mortgage Securities Fund
Investments in Securities – continued
Shares/ Principal | Value(a) | ||||||||||
Consumer Cyclical (2.2%) | |||||||||||
Auto/Truck Parts & Equipment-Original (2.2%) | |||||||||||
Ford Motor Credit Co. LLC, 1.627%, 03/27/17 (b) | $ | 500,000 | $ | 500,386 | |||||||
Nissan Motor Acceptance Corp., 1.477%, 09/13/19 (b) (f) | 1,500,000 | 1,497,609 | |||||||||
1,997,995 | |||||||||||
Financial (1.4%) | |||||||||||
Commercial Banks (0.5%) | |||||||||||
Bank of America NA, 1.372%, 02/14/17 (b) | 500,000 | 500,239 | |||||||||
Real Estate Investment Trust — Diversified (0.4%) | |||||||||||
Retail Properties of America, Inc., 4.000%, 03/15/25 | 400,000 | 383,115 | |||||||||
Real Estate Investment Trust — Residential (0.5%) | |||||||||||
UDR, Inc., 4.000%, 10/01/25 | 400,000 | 409,437 | |||||||||
Total corporate obligations (cost: $3,942,871) | 3,943,221 | ||||||||||
Total long-term debt securities (cost: $89,310,076) | 89,454,052 | ||||||||||
Short-Term Securities (10.4%) | |||||||||||
Investment Companies (10.4%) | |||||||||||
Federated Government Obligations Fund, current rate 0.410% (j) | 2,300,000 | 2,300,000 | |||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% (j) | 4,936,174 | 4,936,174 | |||||||||
STIT-Government & Agency Portfolio, current rate 0.430% (j) | 2,300,000 | 2,300,000 | |||||||||
Total short-term securities (cost: $9,536,174) | 9,536,174 | ||||||||||
Total investments in securities (cost: $98,846,250) (k) | 98,990,226 | ||||||||||
Liabilities in excess of cash and other assets (-8.2%) | (7,460,597 | ) | |||||||||
Total net assets (100.0%) | $ | 91,529,629 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Variable rate security.
(c) Security is issued on a when-issued or forward commitment basis. As of December 31, 2016 the total cost of investments issued on a when-issued or forward commitment basis was $7,613,601.
(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) 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. This security has been determined to be liquid unless otherwise indicated.
(g) Step rate security.
(h) Foreign security: The Fund held 0.1% of net assets in foreign securities at December 31, 2016.
(i) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(j) All or a portion of the security segregated to cover when-issued purchase commitments outstanding or extended settlement trades as of December 31, 2016.
(k) At December 31, 2016 the cost of securities for federal income tax purposes was $99,330,061. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 1,245,588 | |||||
Gross unrealized depreciation | (1,585,423 | ) | |||||
Net unrealized depreciation | $ | (339,835 | ) |
See accompanying notes to financial statements.
83
SFT Advantus Real Estate Securities Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.8%) | |||||||||||
Real Estate (97.8%) | |||||||||||
Health Care REITs (10.5%) | |||||||||||
HCP, Inc. | 85,000 | $ | 2,526,200 | ||||||||
Healthcare Trust of America, Inc. – Class A | 55,000 | 1,601,050 | |||||||||
Omega Healthcare Investors, Inc. | 52,700 | 1,647,402 | |||||||||
Physicians Realty Trust | 86,300 | 1,636,248 | |||||||||
Ventas, Inc. | 44,496 | 2,781,890 | |||||||||
Welltower, Inc. | 76,300 | 5,106,759 | |||||||||
15,299,549 | |||||||||||
Hotels & Resort REITs (6.2%) | |||||||||||
Apple Hospitality REIT, Inc. | 37,000 | 739,260 | |||||||||
Host Hotels & Resorts, Inc. | 207,746 | 3,913,935 | |||||||||
LaSalle Hotel Properties | 20,100 | 612,447 | |||||||||
Pebblebrook Hotel Trust | 25,200 | 749,700 | |||||||||
RLJ Lodging Trust | 59,700 | 1,462,053 | |||||||||
Sunstone Hotel Investors, Inc. | 104,100 | 1,587,525 | |||||||||
9,064,920 | |||||||||||
Industrial REITs (10.8%) | |||||||||||
Duke Realty Corp. | 120,700 | 3,205,792 | |||||||||
First Industrial Realty Trust, Inc. | 88,300 | 2,476,815 | |||||||||
Liberty Property Trust | 76,100 | 3,005,950 | |||||||||
ProLogis, Inc. | 133,281 | 7,035,904 | |||||||||
15,724,461 | |||||||||||
Office REITs (17.9%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 37,700 | 4,189,601 | |||||||||
Boston Properties, Inc. | 28,783 | 3,620,325 | |||||||||
Brandywine Realty Trust | 155,100 | 2,560,701 | |||||||||
Corporate Office Properties Trust | 75,500 | 2,357,110 | |||||||||
Equity Commonwealth (b) | 19,500 | 589,680 | |||||||||
Highwoods Properties, Inc. | 55,400 | 2,825,954 | |||||||||
Kilroy Realty Corp. | 48,636 | 3,561,128 | |||||||||
SL Green Realty Corp. | 12,471 | 1,341,256 | |||||||||
Vornado Realty Trust | 48,486 | 5,060,484 | |||||||||
26,106,239 | |||||||||||
Residential REITs (17.4%) | |||||||||||
American Campus Communities, Inc. | 36,200 | 1,801,674 | |||||||||
Apartment Investment & Management Co. – Class A | 49,718 | 2,259,683 | |||||||||
AvalonBay Communities, Inc. | 27,626 | 4,893,946 | |||||||||
Education Realty Trust, Inc. | 54,200 | 2,292,660 | |||||||||
Equity Lifestyle Properties, Inc. | 23,643 | 1,704,660 | |||||||||
Equity Residential | 35,900 | 2,310,524 | |||||||||
Essex Property Trust, Inc. | 10,316 | 2,398,470 | |||||||||
Mid-America Apartment Communities, Inc. | 36,000 | 3,525,120 | |||||||||
Sun Communities, Inc. | 31,600 | 2,420,876 | |||||||||
UDR, Inc. | 52,300 | 1,907,904 | |||||||||
25,515,517 |
Shares | Value(a) | ||||||||||
Retail REITs (20.2%) | |||||||||||
Agree Realty Corp. | 28,000 | $ | 1,289,400 | ||||||||
Brixmor Property Group, Inc. | 116,600 | 2,847,372 | |||||||||
Federal Realty Investment Trust | 12,544 | 1,782,628 | |||||||||
General Growth Properties, Inc. | 154,900 | 3,869,402 | |||||||||
Kimco Realty Corp. | 136,400 | 3,431,824 | |||||||||
Pennsylvania Real Estate Investment Trust | 37,300 | 707,208 | |||||||||
Regency Centers Corp. | 51,400 | 3,544,030 | |||||||||
Simon Property Group, Inc. | 57,679 | 10,247,828 | |||||||||
Weingarten Realty Investors | 52,500 | 1,878,975 | |||||||||
29,598,667 | |||||||||||
Specialized REITs (14.8%) | |||||||||||
CubeSmart | 38,721 | 1,036,561 | |||||||||
CyrusOne, Inc. | 45,000 | 2,012,850 | |||||||||
Digital Realty Trust, Inc. | 19,300 | 1,896,418 | |||||||||
DuPont Fabros Technology, Inc. | 42,100 | 1,849,453 | |||||||||
Equinix, Inc. | 14,168 | 5,063,785 | |||||||||
Extra Space Storage, Inc. | 44,800 | 3,460,352 | |||||||||
Public Storage | 24,500 | 5,475,750 | |||||||||
STORE Capital Corp. | 35,900 | 887,089 | |||||||||
21,682,258 | |||||||||||
Total common stocks (cost: $134,277,365) | 142,991,611 | ||||||||||
Short-Term Securities (2.4%) | |||||||||||
Investment Companies (2.4%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 3,549,870 | 3,549,870 | |||||||||
Total short-term securities (cost: $3,549,870) | 3,549,870 | ||||||||||
Total investments in securities (cost: $137,827,235) (c) | 146,541,481 | ||||||||||
Liabilities in excess of cash and other assets (-0.2%) | (317,947 | ) | |||||||||
Total net assets (100.0%) | $ | 146,223,534 |
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) At December 31, 2016 the cost of securities for federal income tax purposes was $138,867,316. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 9,497,791 | |||||
Gross unrealized depreciation | (1,823,626 | ) | |||||
Net unrealized appreciation | $ | 7,674,165 |
See accompanying notes to financial statements.
84
SFT IvySM Growth Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (99.2%) | |||||||||||
Consumer Discretionary (17.1%) | |||||||||||
Hotels, Restaurants & Leisure (1.7%) | |||||||||||
MGM Resorts International (b) | 187,200 | $ | 5,396,976 | ||||||||
Starbucks Corp. | 40,500 | 2,248,560 | |||||||||
7,645,536 | |||||||||||
Internet & Catalog Retail (4.4%) | |||||||||||
Amazon.com, Inc. (b) | 17,616 | 13,209,710 | |||||||||
The Priceline Group, Inc. (b) | 4,300 | 6,304,058 | |||||||||
19,513,768 | |||||||||||
Media (2.1%) | |||||||||||
Comcast Corp. – Class A | 130,400 | 9,004,120 | |||||||||
Specialty Retail (8.4%) | |||||||||||
AutoZone, Inc. (b) | 8,000 | 6,318,320 | |||||||||
L Brands, Inc. | 31,900 | 2,100,296 | |||||||||
O'Reilly Automotive, Inc. (b) | 28,200 | 7,851,162 | |||||||||
The Home Depot, Inc. | 126,500 | 16,961,120 | |||||||||
Ulta Salon Cosmetics & Fragrance, Inc. (b) | 13,900 | 3,543,666 | |||||||||
36,774,564 | |||||||||||
Textiles, Apparel & Luxury Goods (0.5%) | |||||||||||
NIKE, Inc. – Class B | 39,700 | 2,017,951 | |||||||||
Consumer Staples (2.9%) | |||||||||||
Tobacco (2.9%) | |||||||||||
Philip Morris International, Inc. | 137,600 | 12,589,024 | |||||||||
Energy (6.2%) | |||||||||||
Energy Equipment & Services (3.1%) | |||||||||||
Halliburton Co. | 196,501 | 10,628,739 | |||||||||
Schlumberger, Ltd. | 37,300 | 3,131,335 | |||||||||
13,760,074 | |||||||||||
Oil, Gas & Consumable Fuels (3.1%) | |||||||||||
EOG Resources, Inc. | 134,797 | 13,627,977 | |||||||||
Financial (11.1%) | |||||||||||
Capital Markets (11.1%) | |||||||||||
CME Group, Inc. | 123,900 | 14,291,865 | |||||||||
S&P Global, Inc. | 42,495 | 4,569,912 | |||||||||
The Charles Schwab Corp. | 259,300 | 10,234,571 | |||||||||
The Goldman Sachs Group, Inc. | 81,282 | 19,462,975 | |||||||||
48,559,323 | |||||||||||
Health Care (13.8%) | |||||||||||
Biotechnology (7.7%) | |||||||||||
Alexion Pharmaceuticals, Inc. (b) | 17,600 | 2,153,360 | |||||||||
Biogen, Inc. (b) | 11,838 | 3,357,020 | |||||||||
Celgene Corp. (b) | 145,991 | 16,898,458 | |||||||||
Shire PLC, ADR (c) | 58,073 | 9,894,478 | |||||||||
Vertex Pharmaceuticals, Inc. (b) | 23,334 | 1,719,016 | |||||||||
34,022,332 |
Shares | Value(a) | ||||||||||
Health Care Equipment & Supplies (3.9%) | |||||||||||
Danaher Corp. | 87,000 | $ | 6,772,080 | ||||||||
DexCom, Inc. (b) | 59,400 | 3,546,180 | |||||||||
Edwards Lifesciences Corp. (b) | 71,841 | 6,731,502 | |||||||||
17,049,762 | |||||||||||
Pharmaceuticals (2.2%) | |||||||||||
Allergan PLC (b) | 23,019 | 4,834,220 | |||||||||
Bristol-Myers Squibb Co. | 82,400 | 4,815,456 | |||||||||
9,649,676 | |||||||||||
Industrials (8.0%) | |||||||||||
Aerospace & Defense (3.2%) | |||||||||||
Lockheed Martin Corp. | 48,400 | 12,097,096 | |||||||||
Northrop Grumman Corp. | 9,300 | 2,162,994 | |||||||||
14,260,090 | |||||||||||
Road & Rail (4.8%) | |||||||||||
Canadian Pacific Railway, Ltd. (c) | 75,100 | 10,722,027 | |||||||||
Union Pacific Corp. | 99,942 | 10,361,986 | |||||||||
21,084,013 | |||||||||||
Information Technology (38.9%) | |||||||||||
Computers & Peripherals (2.2%) | |||||||||||
Apple, Inc. | 85,321 | 9,881,878 | |||||||||
Internet Software & Services (8.8%) | |||||||||||
Alphabet, Inc. – Class A (b) | 16,200 | 12,837,690 | |||||||||
Alphabet, Inc. – Class C (b) | 13,544 | 10,453,530 | |||||||||
Facebook, Inc. – Class A (b) | 131,700 | 15,152,085 | |||||||||
38,443,305 | |||||||||||
IT Services (9.0%) | |||||||||||
FleetCor Technologies, Inc. (b) | 22,500 | 3,184,200 | |||||||||
Mastercard, Inc. – Class A | 183,200 | 18,915,400 | |||||||||
Visa, Inc. – Class A | 167,400 | 13,060,548 | |||||||||
WEX, Inc. (b) | 40,800 | 4,553,280 | |||||||||
39,713,428 | |||||||||||
Semiconductors & Semiconductor Equipment (8.6%) | |||||||||||
Applied Materials, Inc. | 149,600 | 4,827,592 | |||||||||
Lam Research Corp. | 168,138 | 17,777,231 | |||||||||
Microchip Technology, Inc. | 234,729 | 15,057,865 | |||||||||
37,662,688 | |||||||||||
Software (10.3%) | |||||||||||
Adobe Systems, Inc. (b) | 107,100 | 11,025,945 | |||||||||
Electronic Arts, Inc. (b) | 105,100 | 8,277,676 | |||||||||
Microsoft Corp. | 308,500 | 19,170,190 | |||||||||
Salesforce.com, Inc. (b) | 95,500 | 6,537,930 | |||||||||
45,011,741 | |||||||||||
Materials (1.2%) | |||||||||||
Chemicals (1.2%) | |||||||||||
AdvanSix, Inc. (b) | 2,212 | 48,974 | |||||||||
PPG Industries, Inc. | 53,500 | 5,069,660 | |||||||||
5,118,634 | |||||||||||
Total common stocks (cost: $375,052,340) | 435,389,884 |
See accompanying notes to financial statements.
85
SFT IvySM Growth Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Short-Term Securities (0.8%) | |||||||||||
Investment Companies (0.8%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.270% | 3,502,049 | $ | 3,502,049 | ||||||||
Total short-term securities (cost: $3,502,049) | 3,502,049 | ||||||||||
Total investments in securities (cost: $378,554,389) (d) | 438,891,933 | ||||||||||
Cash and other assets in excess of liabilities (0.0%) | 92,667 | ||||||||||
Total net assets (100.0%) | $ | 438,984,600 |
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 4.7% of net assets in foreign securities at December 31, 2016.
(d) At December 31, 2016 the cost of securities for federal income tax purposes was $379,043,530. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 72,751,793 | |||||
Gross unrealized depreciation | (12,903,390 | ) | |||||
Net unrealized appreciation | $ | 59,848,403 |
See accompanying notes to financial statements.
86
SFT IvySM Small Cap Growth Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (96.1%) | |||||||||||
Consumer Discretionary (17.3%) | |||||||||||
Auto Components (1.1%) | |||||||||||
Motorcar Parts of America, Inc. (b) | 64,400 | $ | 1,733,648 | ||||||||
Distributors (1.8%) | |||||||||||
Pool Corp. | 28,797 | 3,004,679 | |||||||||
Hotels, Restaurants & Leisure (4.7%) | |||||||||||
Dave & Buster's Entertainment, Inc. (b) | 35,000 | 1,970,500 | |||||||||
Vail Resorts, Inc. | 14,600 | 2,355,126 | |||||||||
Wingstop, Inc. | 114,333 | 3,383,113 | |||||||||
7,708,739 | |||||||||||
Household Durables (1.6%) | |||||||||||
Installed Building Products, Inc. (b) | 62,600 | 2,585,380 | |||||||||
Leisure Equipment & Products (0.5%) | |||||||||||
Nautilus, Inc. (b) | 46,400 | 858,400 | |||||||||
Specialty Retail (7.6%) | |||||||||||
Boot Barn Holdings, Inc. (b) | 157,172 | 1,967,793 | |||||||||
Burlington Stores, Inc. (b) | 29,500 | 2,500,125 | |||||||||
Five Below, Inc. (b) | 84,100 | 3,360,636 | |||||||||
Kate Spade & Co. (b) | 91,356 | 1,705,617 | |||||||||
Monro Muffler Brake, Inc. | 32,800 | 1,876,160 | |||||||||
Party City Holdco, Inc. (b) | 63,723 | 904,867 | |||||||||
12,315,198 | |||||||||||
Consumer Staples (2.0%) | |||||||||||
Food & Staples Retailing (1.0%) | |||||||||||
Casey's General Stores, Inc. | 13,500 | 1,604,880 | |||||||||
Food Products (1.0%) | |||||||||||
Snyder's-Lance, Inc. | 44,800 | 1,717,632 | |||||||||
Energy (4.3%) | |||||||||||
Energy Equipment & Services (2.9%) | |||||||||||
Forum Energy Technologies, Inc. (b) | 7,200 | 158,400 | |||||||||
RPC, Inc. | 166,100 | 3,290,441 | |||||||||
Superior Energy Services, Inc. | 63,600 | 1,073,568 | |||||||||
US Silica Holdings, Inc. | 4,300 | 243,724 | |||||||||
4,766,133 | |||||||||||
Oil, Gas & Consumable Fuels (1.4%) | |||||||||||
Parsley Energy, Inc. Class A (b) | 23,300 | 821,092 | |||||||||
RSP Permian, Inc. (b) | 32,500 | 1,450,150 | |||||||||
2,271,242 | |||||||||||
Financial (8.6%) | |||||||||||
Commercial Banks (3.2%) | |||||||||||
Home BancShares, Inc. | 56,800 | 1,577,336 | |||||||||
SVB Financial Group (b) | 18,800 | 3,227,208 | |||||||||
Western Alliance Bancorp (b) | 6,700 | 326,357 | |||||||||
5,130,901 |
Shares | Value(a) | ||||||||||
Consumer Finance (3.2%) | |||||||||||
PRA Group, Inc. (b) | 133,215 | $ | 5,208,707 | ||||||||
Thrifts & Mortgage Finance (2.2%) | |||||||||||
LendingTree, Inc. (b) | 36,117 | 3,660,458 | |||||||||
Health Care (16.3%) | |||||||||||
Health Care Equipment & Supplies (8.5%) | |||||||||||
Cantel Medical Corp. | 22,000 | 1,732,500 | |||||||||
Inogen, Inc. (b) | 29,300 | 1,968,081 | |||||||||
iRhythm Technologies, Inc. (b) | 26,474 | 794,220 | |||||||||
K2M Group Holdings, Inc. (b) | 166,100 | 3,328,644 | |||||||||
Nevro Corp. (b) | 23,700 | 1,722,042 | |||||||||
NuVasive, Inc. (b) | 24,800 | 1,670,528 | |||||||||
NxStage Medical, Inc. (b) | 85,457 | 2,239,828 | |||||||||
Penumbra, Inc. (b) | 6,900 | 440,220 | |||||||||
13,896,063 | |||||||||||
Health Care Providers & Services (5.8%) | |||||||||||
AMN Healthcare Services, Inc. (b) | 108,374 | 4,166,980 | |||||||||
Envision Healthcare Corp. (b) | 23,600 | 1,493,644 | |||||||||
HealthEquity, Inc. (b) | 94,200 | 3,816,984 | |||||||||
9,477,608 | |||||||||||
Health Care Technology (2.0%) | |||||||||||
Veeva Systems, Inc. – Class A (b) | 78,500 | 3,194,950 | |||||||||
Industrials (16.7%) | |||||||||||
Aerospace & Defense (3.8%) | |||||||||||
Hexcel Corp. | 53,100 | 2,731,464 | |||||||||
Mercury Systems, Inc. (b) | 114,200 | 3,451,124 | |||||||||
6,182,588 | |||||||||||
Air Freight & Logistics (1.0%) | |||||||||||
XPO Logistics, Inc. (b) | 37,000 | 1,596,920 | |||||||||
Building Products (0.9%) | |||||||||||
Trex Co., Inc. (b) | 24,021 | 1,546,952 | |||||||||
Commercial Services & Supplies (1.0%) | |||||||||||
Healthcare Services Group, Inc. | 39,600 | 1,551,132 | |||||||||
Construction & Engineering (1.2%) | |||||||||||
Dycom Industries, Inc. (b) | 25,400 | 2,039,366 | |||||||||
Electrical Equipment (1.6%) | |||||||||||
Woodward, Inc. | 39,000 | 2,692,950 | |||||||||
Machinery (2.6%) | |||||||||||
John Bean Technologies Corp. | 9,400 | 807,930 | |||||||||
The Middleby Corp. (b) | 12,500 | 1,610,125 | |||||||||
The Toro Co. | 31,300 | 1,751,235 | |||||||||
4,169,290 |
See accompanying notes to financial statements.
87
SFT IvySM Small Cap Growth Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Road & Rail (1.2%) | |||||||||||
Knight Transportation, Inc. | 58,600 | $ | 1,936,730 | ||||||||
Trading Companies & Distributors (3.4%) | |||||||||||
Beacon Roofing Supply, Inc. (b) | 34,800 | 1,603,236 | |||||||||
Watsco, Inc. | 26,781 | 3,966,802 | |||||||||
5,570,038 | |||||||||||
Information Technology (28.6%) | |||||||||||
Communications Equipment (1.0%) | |||||||||||
Lumentum Holdings, Inc. (b) | 41,200 | 1,592,380 | |||||||||
Electronic Equipment, Instruments & Components (2.5%) | |||||||||||
Cognex Corp. | 44,900 | 2,856,538 | |||||||||
Fabrinet (b) (c) | 30,200 | 1,217,060 | |||||||||
4,073,598 | |||||||||||
Internet Software & Services (3.7%) | |||||||||||
Criteo SA ADR (b) (c) | 44,200 | 1,815,736 | |||||||||
Five9, Inc. (b) | 37,100 | 526,449 | |||||||||
Q2 Holdings, Inc. (b) | 88,294 | 2,547,282 | |||||||||
Shopify, Inc. Class A (b) (c) | 27,600 | 1,183,212 | |||||||||
6,072,679 | |||||||||||
IT Services (2.4%) | |||||||||||
Booz Allen Hamilton Holding Corp. | 85,935 | 3,099,675 | |||||||||
InterXion Holding NV (b) (c) | 25,000 | 876,750 | |||||||||
3,976,425 | |||||||||||
Semiconductors & Semiconductor Equipment (3.7%) | |||||||||||
MACOM Technology Solutions Holdings, Inc. (b) | 17,300 | 800,644 | |||||||||
Mellanox Technologies, Ltd. (b) (c) | 39,300 | 1,607,370 | |||||||||
Monolithic Power Systems, Inc. | 24,300 | 1,990,899 | |||||||||
Power Integrations, Inc. | 25,000 | 1,696,250 | |||||||||
6,095,163 | |||||||||||
Software (15.3%) | |||||||||||
BroadSoft, Inc. (b) | 58,900 | 2,429,625 | |||||||||
Ellie Mae, Inc. (b) | 23,000 | 1,924,640 | |||||||||
Globant SA (b) (c) | 71,500 | 2,384,525 | |||||||||
Guidewire Software, Inc. (b) | 33,832 | 1,668,932 | |||||||||
HubSpot, Inc. (b) | 28,900 | 1,358,300 | |||||||||
Manhattan Associates, Inc. (b) | 82,359 | 4,367,498 | |||||||||
Paycom Software, Inc. (b) | 55,155 | 2,509,001 | |||||||||
Proofpoint, Inc. (b) | 27,244 | 1,924,789 | |||||||||
The Ultimate Software Group, Inc. (b) | 12,631 | 2,303,263 | |||||||||
Tyler Technologies, Inc. (b) | 28,099 | 4,011,694 | |||||||||
24,882,267 | |||||||||||
Materials (1.0%) | |||||||||||
Construction Materials (1.0%) | |||||||||||
Eagle Materials, Inc. | 16,900 | 1,665,157 |
Shares | Value(a) | ||||||||||
Real Estate (1.3%) | |||||||||||
Real Estate Services (1.3%) | |||||||||||
RE/MAX Holdings, Inc. Class A | 37,200 | $ | 2,083,200 | ||||||||
Total common stocks (cost: $139,239,444) | 156,861,453 | ||||||||||
Short-Term Securities (4.1%) | |||||||||||
Investment Companies (4.1%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 6,700,382 | 6,700,382 | |||||||||
Total short-term securities (cost: $6,700,382) | 6,700,382 | ||||||||||
Total investments in securities (cost: $145,939,826) (d) | 163,561,835 | ||||||||||
Liabilities in excess of cash and other assets (-0.2%) | (267,442 | ) | |||||||||
Total net assets (100.0%) | $ | 163,294,393 |
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 5.6% of net assets in foreign securities at December 31, 2016.
(d) At December 31, 2016 the cost of securities for federal income tax purposes was $147,160,560. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 19,680,987 | |||||
Gross unrealized depreciation | (3,279,712 | ) | |||||
Net unrealized appreciation | $ | 16,401,275 |
See accompanying notes to financial statements.
88
SFT Pyramis® Core Equity Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (98.4%) | |||||||||||
Consumer Discretionary (11.9%) | |||||||||||
Auto Components (0.8%) | |||||||||||
Delphi Automotive PLC (b) | 14,380 | $ | 968,493 | ||||||||
Hotels, Restaurants & Leisure (0.7%) | |||||||||||
Royal Caribbean Cruises, Ltd. | 9,240 | 758,050 | |||||||||
Household Durables (1.9%) | |||||||||||
Mohawk Industries, Inc. (c) | 3,650 | 728,832 | |||||||||
Newell Brands, Inc. | 32,805 | 1,464,743 | |||||||||
2,193,575 | |||||||||||
Internet & Catalog Retail (1.8%) | |||||||||||
Amazon.com, Inc. (c) | 2,710 | 2,032,148 | |||||||||
Media (3.1%) | |||||||||||
Comcast Corp. – Class A | 26,640 | 1,839,492 | |||||||||
The Interpublic Group of Cos., Inc. | 22,270 | 521,340 | |||||||||
The Walt Disney Co. | 11,440 | 1,192,277 | |||||||||
3,553,109 | |||||||||||
Multiline Retail (0.5%) | |||||||||||
Target Corp. | 8,850 | 639,235 | |||||||||
Specialty Retail (2.0%) | |||||||||||
Signet Jewelers, Ltd. | 3,370 | 317,656 | |||||||||
The Home Depot, Inc. | 14,420 | 1,933,434 | |||||||||
2,251,090 | |||||||||||
Textiles, Apparel & Luxury Goods (1.1%) | |||||||||||
NIKE, Inc. – Class B | 24,270 | 1,233,644 | |||||||||
Consumer Staples (9.2%) | |||||||||||
Beverages (3.4%) | |||||||||||
Constellation Brands, Inc. – Class A | 8,880 | 1,361,393 | |||||||||
Molson Coors Brewing Co. – Class B | 13,860 | 1,348,717 | |||||||||
Monster Beverage Corp. (c) | 28,350 | 1,257,039 | |||||||||
3,967,149 | |||||||||||
Food & Staples Retailing (2.6%) | |||||||||||
CVS Health Corp. | 21,220 | 1,674,470 | |||||||||
The Kroger Co. | 37,360 | 1,289,294 | |||||||||
2,963,764 | |||||||||||
Food Products (0.8%) | |||||||||||
Mead Johnson Nutrition Co. | 12,690 | 897,944 | |||||||||
Personal Products (0.9%) | |||||||||||
Coty, Inc. – Class A | 58,300 | 1,067,473 | |||||||||
Tobacco (1.5%) | |||||||||||
Reynolds American, Inc. | 30,010 | 1,681,760 | |||||||||
Energy (7.4%) | |||||||||||
Energy Equipment & Services (1.1%) | |||||||||||
Schlumberger, Ltd. | 14,580 | 1,223,991 |
Shares | Value(a) | ||||||||||
Oil, Gas & Consumable Fuels (6.3%) | |||||||||||
EOG Resources, Inc. | 14,290 | $ | 1,444,719 | ||||||||
EQT Corp. | 11,660 | 762,564 | |||||||||
Hess Corp. | 37,750 | 2,351,448 | |||||||||
Occidental Petroleum Corp. | 21,970 | 1,564,923 | |||||||||
Pioneer Natural Resources Co. | 6,100 | 1,098,427 | |||||||||
7,222,081 | |||||||||||
Financial (14.7%) | |||||||||||
Capital Markets (2.6%) | |||||||||||
CME Group, Inc. | 16,030 | 1,849,060 | |||||||||
The Goldman Sachs Group, Inc. | 4,720 | 1,130,204 | |||||||||
2,979,264 | |||||||||||
Commercial Banks (6.2%) | |||||||||||
Citigroup, Inc. | 34,530 | 2,052,118 | |||||||||
KeyCorp | 113,620 | 2,075,837 | |||||||||
Regions Financial Corp. | 98,820 | 1,419,055 | |||||||||
Wells Fargo & Co. | 27,180 | 1,497,890 | |||||||||
7,044,900 | |||||||||||
Consumer Finance (3.3%) | |||||||||||
Capital One Financial Corp. | 22,460 | 1,959,411 | |||||||||
Discover Financial Services | 25,480 | 1,836,853 | |||||||||
3,796,264 | |||||||||||
Insurance (2.6%) | |||||||||||
Hartford Financial Services Group, Inc. | 16,030 | 763,830 | |||||||||
Marsh & McLennan Cos., Inc. | 14,460 | 977,351 | |||||||||
Torchmark Corp. | 17,280 | 1,274,573 | |||||||||
3,015,754 | |||||||||||
Health Care (13.6%) | |||||||||||
Biotechnology (4.7%) | |||||||||||
Alexion Pharmaceuticals, Inc. (c) | 12,180 | 1,490,223 | |||||||||
Biogen, Inc. (c) | 5,720 | 1,622,078 | |||||||||
BioMarin Pharmaceutical, Inc. (c) | 13,600 | 1,126,624 | |||||||||
Shire PLC, ADR (c) | 6,400 | 1,090,432 | |||||||||
5,329,357 | |||||||||||
Health Care Equipment & Supplies (4.5%) | |||||||||||
CR Bard, Inc. | 5,300 | 1,190,698 | |||||||||
Danaher Corp. | 27,340 | 2,128,145 | |||||||||
Medtronic PLC (b) | 9,560 | 680,959 | |||||||||
Zimmer Biomet Holdings, Inc. | 11,070 | 1,142,424 | |||||||||
5,142,226 | |||||||||||
Health Care Providers & Services (1.3%) | |||||||||||
Humana, Inc. | 7,510 | 1,532,265 | |||||||||
Pharmaceuticals (3.1%) | |||||||||||
Bristol-Myers Squibb Co. | 27,270 | 1,593,659 | |||||||||
Merck & Co., Inc. | 32,970 | 1,940,944 | |||||||||
3,534,603 |
See accompanying notes to financial statements.
89
SFT Pyramis® Core Equity Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Industrials (10.3%) | |||||||||||
Aerospace & Defense (3.8%) | |||||||||||
Lockheed Martin Corp. | 6,850 | $ | 1,712,089 | ||||||||
The Boeing Co. | 8,550 | 1,331,064 | |||||||||
United Technologies Corp. | 11,870 | 1,301,189 | |||||||||
4,344,342 | |||||||||||
Air Freight & Logistics (1.5%) | |||||||||||
FedEx Corp. | 8,990 | 1,673,938 | |||||||||
Airlines (0.9%) | |||||||||||
United Continental Holdings, Inc. (c) | 14,400 | 1,049,472 | |||||||||
Building Products (0.9%) | |||||||||||
Fortune Brands Home & Security, Inc. | 19,720 | 1,054,231 | |||||||||
Machinery (2.0%) | |||||||||||
Fortive Corp. | 12,625 | 677,079 | |||||||||
Ingersoll-Rand PLC | 21,100 | 1,583,344 | |||||||||
2,260,423 | |||||||||||
Road & Rail (1.2%) | |||||||||||
CSX Corp. | 38,100 | 1,368,933 | |||||||||
Information Technology (20.5%) | |||||||||||
Computers & Peripherals (2.2%) | |||||||||||
Apple, Inc. | 21,790 | 2,523,718 | |||||||||
Internet Software & Services (6.0%) | |||||||||||
Alphabet, Inc. – Class A (c) | 5,540 | 4,390,173 | |||||||||
Facebook, Inc. – Class A (c) | 22,010 | 2,532,250 | |||||||||
6,922,423 | |||||||||||
IT Services (3.9%) | |||||||||||
Fidelity National Information Services, Inc. | 14,870 | 1,124,767 | |||||||||
PayPal Holdings, Inc. (c) | 34,550 | 1,363,688 | |||||||||
Visa, Inc. – Class A | 24,950 | 1,946,599 | |||||||||
4,435,054 | |||||||||||
Semiconductors & Semiconductor Equipment (4.2%) | |||||||||||
Broadcom, Ltd. (b) | 10,060 | 1,778,306 | |||||||||
Micron Technology, Inc. (c) | 38,720 | 848,743 | |||||||||
NXP Semiconductor NV (b) (c) | 7,240 | 709,592 | |||||||||
QUALCOMM, Inc. | 21,970 | 1,432,444 | |||||||||
4,769,085 | |||||||||||
Software (4.2%) | |||||||||||
Adobe Systems, Inc. (c) | 14,020 | 1,443,359 | |||||||||
Electronic Arts, Inc. (c) | 16,360 | 1,288,514 | |||||||||
Oracle Corp. | 10,690 | 411,031 | |||||||||
Salesforce.com, Inc. (c) | 24,540 | 1,680,008 | |||||||||
4,822,912 | |||||||||||
Materials (2.8%) | |||||||||||
Chemicals (2.3%) | |||||||||||
Albemarle Corp. | 6,330 | 544,886 | |||||||||
Ecolab, Inc. | 8,970 | 1,051,464 | |||||||||
LyondellBasell Industries NV – Class A | 12,510 | 1,073,108 | |||||||||
2,669,458 |
Shares | Value(a) | ||||||||||
Construction Materials (0.5%) | |||||||||||
Eagle Materials, Inc. | 5,930 | $ | 584,283 | ||||||||
Real Estate (2.5%) | |||||||||||
Office REITs (1.0%) | |||||||||||
Boston Properties, Inc. | 9,610 | 1,208,746 | |||||||||
Residential REITs (0.5%) | |||||||||||
UDR, Inc. | 16,590 | 605,203 | |||||||||
Specialized REITs (1.0%) | |||||||||||
American Tower Corp. | 10,600 | 1,120,208 | |||||||||
Telecommunication Services (2.5%) | |||||||||||
Diversified Telecommunication Services (1.7%) | |||||||||||
Verizon Communications, Inc. | 36,980 | 1,973,992 | |||||||||
Wireless Telecommunication Services (0.8%) | |||||||||||
T-Mobile US, Inc. (c) | 16,150 | 928,787 | |||||||||
Utilities (3.0%) | |||||||||||
Electric Utilities (3.0%) | |||||||||||
American Electric Power Co., Inc. | 32,260 | 2,031,090 | |||||||||
PG&E Corp. | 22,620 | 1,374,617 | |||||||||
3,405,707 | |||||||||||
Total common stocks (cost: $103,056,370) | 112,749,054 | ||||||||||
Short-Term Securities (0.8%) | |||||||||||
Investment Companies (0.8%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 864,438 | 864,438 | |||||||||
Total short-term securities (cost: $864,438) | 864,438 | ||||||||||
Total investments in securities (cost: $103,920,808) (d) | 113,613,492 | ||||||||||
Cash and other assets in excess of liabilities (0.8%) | 881,159 | ||||||||||
Total net assets (100.0%) | $ | 114,494,651 |
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 4.6% of net assets in foreign securities at December 31, 2016.
(c) Non-income producing security.
(d) At December 31, 2016 the cost of securities for federal income tax purposes was $104,595,506. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 11,369,151 | |||||
Gross unrealized depreciation | (2,351,165 | ) | |||||
Net unrealized appreciation | $ | 9,017,986 |
See accompanying notes to financial statements.
90
SFT T. Rowe Price Value Fund
Investments in Securities
December 31, 2016
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (98.1%) | |||||||||||
Consumer Discretionary (6.4%) | |||||||||||
Auto Components (0.4%) | |||||||||||
Adient PLC (b) (c) | 6,329 | $ | 370,879 | ||||||||
Delphi Automotive PLC (c) | 7,000 | 471,450 | |||||||||
842,329 | |||||||||||
Automobiles (0.3%) | |||||||||||
General Motors Co. | 16,541 | 576,288 | |||||||||
Hotels, Restaurants & Leisure (1.1%) | |||||||||||
Las Vegas Sands Corp. | 13,556 | 724,026 | |||||||||
Norwegian Cruise Line Holdings, Ltd. (b) | 37,343 | 1,588,198 | |||||||||
2,312,224 | |||||||||||
Household Durables (0.3%) | |||||||||||
Lennar Corp. – Class A | 14,300 | 613,899 | |||||||||
Leisure Equipment & Products (0.6%) | |||||||||||
Mattel, Inc. | 46,141 | 1,271,185 | |||||||||
Media (2.4%) | |||||||||||
Comcast Corp. – Class A | 26,100 | 1,802,205 | |||||||||
Liberty Global PLC – Class C (b) (c) | 35,586 | 1,056,904 | |||||||||
The Walt Disney Co. | 6,200 | 646,164 | |||||||||
Twenty-First Century Fox, Inc. – Class B | 59,400 | 1,618,650 | |||||||||
5,123,923 | |||||||||||
Multiline Retail (0.4%) | |||||||||||
Dollar General Corp. | 11,900 | 881,433 | |||||||||
Specialty Retail (0.9%) | |||||||||||
L Brands, Inc. | 5,800 | 381,872 | |||||||||
Lowe's Cos., Inc. | 20,000 | 1,422,400 | |||||||||
1,804,272 | |||||||||||
Consumer Staples (9.4%) | |||||||||||
Beverages (0.3%) | |||||||||||
PepsiCo, Inc. | 5,600 | 585,928 | |||||||||
Food & Staples Retailing (1.9%) | |||||||||||
CVS Health Corp. | 7,300 | 576,043 | |||||||||
Wal-Mart Stores, Inc. | 20,600 | 1,423,872 | |||||||||
Walgreens Boots Alliance, Inc. | 23,410 | 1,937,412 | |||||||||
3,937,327 | |||||||||||
Food Products (4.1%) | |||||||||||
Bunge, Ltd. | 17,874 | 1,291,218 | |||||||||
Mondelez International, Inc. – Class A | 11,454 | 507,756 | |||||||||
The JM Smucker Co. | 1,100 | 140,866 | |||||||||
Tyson Foods, Inc. – Class A | 105,865 | 6,529,753 | |||||||||
8,469,593 | |||||||||||
Personal Products (0.3%) | |||||||||||
Coty, Inc. – Class A | 38,763 | 709,750 |
Shares | Value(a) | ||||||||||
Tobacco (2.8%) | |||||||||||
Philip Morris International, Inc. | 64,000 | $ | 5,855,360 | ||||||||
Energy (10.9%) | |||||||||||
Energy Equipment & Services (0.1%) | |||||||||||
Baker Hughes, Inc. | 3,565 | 231,618 | |||||||||
Oil, Gas & Consumable Fuels (10.8%) | |||||||||||
Chevron Corp. | 26,700 | 3,142,590 | |||||||||
Encana Corp. (c) | 63,918 | 750,397 | |||||||||
EOG Resources, Inc. | 14,221 | 1,437,743 | |||||||||
EQT Corp. | 7,652 | 500,441 | |||||||||
Exxon Mobil Corp. | 47,700 | 4,305,402 | |||||||||
Hess Corp. | 9,477 | 590,322 | |||||||||
Marathon Petroleum Corp. | 42,120 | 2,120,742 | |||||||||
Occidental Petroleum Corp. | 26,890 | 1,915,375 | |||||||||
Spectra Energy Corp. | 36,814 | 1,512,687 | |||||||||
Targa Resources Corp. | 3,309 | 185,536 | |||||||||
TOTAL SA ADR (c) | 80,956 | 4,126,327 | |||||||||
TransCanada Corp. (c) | 40,312 | 1,820,087 | |||||||||
22,407,649 | |||||||||||
Financial (25.2%) | |||||||||||
Capital Markets (6.5%) | |||||||||||
Ameriprise Financial, Inc. | 25,856 | 2,868,465 | |||||||||
Morgan Stanley | 95,476 | 4,033,861 | |||||||||
State Street Corp. | 27,939 | 2,171,419 | |||||||||
The Bank of New York Mellon Corp. | 68,674 | 3,253,774 | |||||||||
The Charles Schwab Corp. | 30,387 | 1,199,375 | |||||||||
13,526,894 | |||||||||||
Commercial Banks (12.6%) | |||||||||||
Citigroup, Inc. | 58,548 | 3,479,507 | |||||||||
Fifth Third Bancorp | 103,164 | 2,782,333 | |||||||||
JPMorgan Chase & Co. | 123,099 | 10,622,213 | |||||||||
KeyCorp | 110,433 | 2,017,611 | |||||||||
The PNC Financial Services Group, Inc. | 900 | 105,264 | |||||||||
US Bancorp | 40,400 | 2,075,348 | |||||||||
Wells Fargo & Co. | 94,775 | 5,223,050 | |||||||||
26,305,326 | |||||||||||
Consumer Finance (0.7%) | |||||||||||
Synchrony Financial | 41,322 | 1,498,749 | |||||||||
Insurance (5.4%) | |||||||||||
American International Group, Inc. | 33,511 | 2,188,604 | |||||||||
Chubb, Ltd. (c) | 3,000 | 396,360 | |||||||||
Marsh & McLennan Cos., Inc. | 35,795 | 2,419,384 | |||||||||
MetLife, Inc. | 47,051 | 2,535,578 | |||||||||
Willis Towers Watson PLC (c) | 5,400 | 660,312 | |||||||||
XL Group, Ltd. (c) | 83,400 | 3,107,484 | |||||||||
11,307,722 | |||||||||||
Health Care (13.4%) | |||||||||||
Biotechnology (0.4%) | |||||||||||
Gilead Sciences, Inc. | 11,100 | 794,871 |
See accompanying notes to financial statements.
91
SFT T. Rowe Price Value Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Health Care Equipment & Supplies (4.0%) | |||||||||||
Abbott Laboratories | 32,565 | $ | 1,250,822 | ||||||||
Becton Dickinson and Co. | 10,625 | 1,758,969 | |||||||||
Danaher Corp. | 8,647 | 673,082 | |||||||||
Hologic, Inc. (b) | 36,100 | 1,448,332 | |||||||||
Medtronic PLC (c) | 45,233 | �� | 3,221,946 | ||||||||
8,353,151 | |||||||||||
Health Care Providers & Services (3.5%) | |||||||||||
Aetna, Inc. | 24,286 | 3,011,707 | |||||||||
Anthem, Inc. | 14,845 | 2,134,265 | |||||||||
HCA Holdings, Inc. (b) | 22,690 | 1,679,514 | |||||||||
McKesson Corp. | 3,600 | 505,620 | |||||||||
7,331,106 | |||||||||||
Life Sciences Tools & Services (1.4%) | |||||||||||
Agilent Technologies, Inc. | 30,582 | 1,393,316 | |||||||||
Thermo Fisher Scientific, Inc. | 11,681 | 1,648,189 | |||||||||
3,041,505 | |||||||||||
Pharmaceuticals (4.1%) | |||||||||||
Bristol-Myers Squibb Co. | 16,900 | 987,636 | |||||||||
Mallinckrodt PLC (b) | 8,100 | 403,542 | |||||||||
Merck & Co., Inc. | 51,300 | 3,020,031 | |||||||||
Pfizer, Inc. | 124,924 | 4,057,532 | |||||||||
8,468,741 | |||||||||||
Industrials (8.7%) | |||||||||||
Aerospace & Defense (2.4%) | |||||||||||
Rockwell Collins, Inc. | 8,171 | 757,942 | |||||||||
The Boeing Co. | 18,666 | 2,905,923 | |||||||||
United Technologies Corp. | 12,900 | 1,414,098 | |||||||||
5,077,963 | |||||||||||
Airlines (1.2%) | |||||||||||
American Airlines Group, Inc. | 54,264 | 2,533,586 | |||||||||
Building Products (1.3%) | |||||||||||
Johnson Controls International PLC | 67,436 | 2,777,689 | |||||||||
Commercial Services & Supplies (0.5%) | |||||||||||
Stericycle, Inc. (b) | 12,382 | 953,909 | |||||||||
Industrial Conglomerates (2.9%) | |||||||||||
General Electric Co. | 112,700 | 3,561,320 | |||||||||
Honeywell International, Inc. | 10,200 | 1,181,670 | |||||||||
Roper Technologies, Inc. | 6,900 | 1,263,252 | |||||||||
6,006,242 | |||||||||||
Machinery (0.4%) | |||||||||||
Illinois Tool Works, Inc. | 4,700 | 575,562 | |||||||||
Pentair PLC (c) | 5,763 | 323,132 | |||||||||
898,694 | |||||||||||
Information Technology (10.4%) | |||||||||||
Communications Equipment (1.9%) | |||||||||||
Cisco Systems, Inc. | 94,600 | 2,858,812 | |||||||||
Harris Corp. | 10,795 | 1,106,164 | |||||||||
3,964,976 |
Shares | Value(a) | ||||||||||
Computers & Peripherals (1.6%) | |||||||||||
Apple, Inc. | 25,100 | $ | 2,907,082 | ||||||||
Western Digital Corp. | 5,797 | 393,906 | |||||||||
3,300,988 | |||||||||||
Electronic Equipment, Instruments & Components (0.8%) | |||||||||||
Keysight Technologies, Inc. (b) | 12,263 | 448,458 | |||||||||
TE Connectivity, Ltd. (c) | 17,998 | 1,246,901 | |||||||||
1,695,359 | |||||||||||
Semiconductors & Semiconductor Equipment (2.8%) | |||||||||||
Analog Devices, Inc. | 10,500 | 762,510 | |||||||||
Applied Materials, Inc. | 19,600 | 632,492 | |||||||||
Microchip Technology, Inc. | 6,828 | 438,016 | |||||||||
NXP Semiconductor NV (b) (c) | 4,657 | 456,433 | |||||||||
QUALCOMM, Inc. | 28,500 | 1,858,200 | |||||||||
Texas Instruments, Inc. | 22,100 | 1,612,637 | |||||||||
5,760,288 | |||||||||||
Software (3.3%) | |||||||||||
Microsoft Corp. | 94,300 | 5,859,802 | |||||||||
Red Hat, Inc. (b) | 16,025 | 1,116,943 | |||||||||
6,976,745 | |||||||||||
Materials (3.1%) | |||||||||||
Chemicals (1.5%) | |||||||||||
Ashland Global Holdings, Inc. | 11,122 | 1,215,523 | |||||||||
CF Industries Holdings, Inc. | 6,801 | 214,096 | |||||||||
EI du Pont de Nemours & Co. | 22,700 | 1,666,180 | |||||||||
3,095,799 | |||||||||||
Construction Materials (0.3%) | |||||||||||
Vulcan Materials Co. | 4,600 | 575,690 | |||||||||
Containers & Packaging (1.3%) | |||||||||||
Ball Corp. | 18,228 | 1,368,376 | |||||||||
International Paper Co. | 25,940 | 1,376,376 | |||||||||
2,744,752 | |||||||||||
Real Estate (1.5%) | |||||||||||
Diversified REITs (0.6%) | |||||||||||
VEREIT, Inc. | 149,554 | 1,265,227 | |||||||||
Retail REITs (0.3%) | |||||||||||
General Growth Properties, Inc. | 25,900 | 646,982 | |||||||||
Specialized REITs (0.6%) | |||||||||||
Weyerhaeuser Co. | 41,900 | 1,260,771 | |||||||||
Telecommunication Services (1.3%) | |||||||||||
Diversified Telecommunication Services (1.3%) | |||||||||||
Verizon Communications, Inc. | 49,422 | 2,638,146 | |||||||||
Utilities (7.8%) | |||||||||||
Electric Utilities (6.0%) | |||||||||||
American Electric Power Co., Inc. | 35,950 | 2,263,412 |
See accompanying notes to financial statements.
92
SFT T. Rowe Price Value Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Eversource Energy | 7,781 | $ | 429,745 | ||||||||
Exelon Corp. | 119,650 | 4,246,378 | |||||||||
FirstEnergy Corp. | 17,896 | 554,239 | |||||||||
Great Plains Energy, Inc. | 29,909 | 818,011 | |||||||||
NextEra Energy, Inc. | 6,221 | 743,161 | |||||||||
PG&E Corp. | 56,600 | 3,439,582 | |||||||||
12,494,528 | |||||||||||
Independent Power Producers & Energy Traders (0.8%) | |||||||||||
NRG Energy, Inc. | 59,710 | 732,044 | |||||||||
The AES Corp. | 78,406 | 911,078 | |||||||||
1,643,122 | |||||||||||
Multi-Utilities (1.0%) | |||||||||||
DTE Energy Co. | 10,600 | 1,044,206 | |||||||||
Sempra Energy | 9,800 | 986,272 | |||||||||
2,030,478 | |||||||||||
Total common stocks (cost: $185,134,628) | 204,592,777 | ||||||||||
Preferred Stocks (0.4%) | |||||||||||
Utilities (0.4%) | |||||||||||
Electric Utilities (0.4%) | |||||||||||
NextEra Energy, Inc. | 16,937 | 829,574 | |||||||||
Total preferred stocks (cost: $835,577) | 829,574 | ||||||||||
Short-Term Securities (1.4%) | |||||||||||
Investment Companies (1.4%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.420% | 1,006,783 | 1,006,783 | |||||||||
T. Rowe Price Reserve Investment Fund, current rate 0.000% | 1,853,960 | 1,853,960 | |||||||||
Total short-term securities (cost: $2,860,743) | 2,860,743 | ||||||||||
Total investments in securities (cost: $188,830,948) (d) | 208,283,094 | ||||||||||
Cash and other assets in excess of liabilities (0.1%) | 229,689 | ||||||||||
Total net assets (100.0%) | $ | 208,512,783 |
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 8.6% of net assets in foreign securities at December 31, 2016.
(d) At December 31, 2016 the cost of securities for federal income tax purposes was $189,946,442. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 20,531,214 | |||||
Gross unrealized depreciation | (2,194,562 | ) | |||||
Net unrealized appreciation | $ | 18,336,652 |
See accompanying notes to financial statements.
93
Securian Funds Trust
Statements of Assets and Liabilities
December 31, 2016
SFT Advantus Bond Fund | SFT Advantus Dynamic Managed Volatility Fund1 | SFT Advantus Government Money Market Fund2 | SFT Advantus Index 400 Mid-Cap Fund | SFT Advantus Index 500 Fund | SFT Advantus International Bond Fund | SFT Advantus Managed Volatility Equity Fund | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Investments in securities, at market value – see accompanying schedule for detailed listing* | |||||||||||||||||||||||||||||||
Unaffiliated issuers | $ | 375,530,030 | $ | 155,768,439 | $ | 78,067,152 | $ | 218,043,988 | $ | 742,208,159 | $ | 104,543,184 | $ | 207,284,062 | |||||||||||||||||
Affiliated issuers (note 8) | – | 124,400,586 | – | – | – | – | – | ||||||||||||||||||||||||
Cash on demand deposit^,^^^ | – | – | – | 643,200 | 3,908 | 1,207,651 | – | ||||||||||||||||||||||||
Foreign currency on deposit^^ | – | – | – | – | – | 63,307 | – | ||||||||||||||||||||||||
Receivable: | |||||||||||||||||||||||||||||||
Fund shares sold | 227 | 524,621 | – | 1,433 | 26,907 | 50 | – | ||||||||||||||||||||||||
Investment securities sold (including paydowns) | – | – | – | – | – | – | – | ||||||||||||||||||||||||
Investment securities sold on a forward – commitment basis (note 2) | – | – | – | – | – | – | – | ||||||||||||||||||||||||
Dividends and accrued interest | 2,605,632 | 954,374 | 29,770 | 241,946 | 930,578 | 839,116 | – | ||||||||||||||||||||||||
Refundable foreign income taxes withheld | – | – | – | – | – | 43,665 | – | ||||||||||||||||||||||||
Adviser (note 4) | – | 51,239 | 26,441 | – | – | – | 34,436 | ||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | – | – | – | – | – | 5,707,876 | – | ||||||||||||||||||||||||
Prepaid expenses | 6,627 | 5,701 | 5,870 | 5,701 | 7,150 | 5,701 | 7,177 | ||||||||||||||||||||||||
Total assets | 378,142,516 | 281,704,960 | 78,129,233 | 218,936,268 | 743,176,702 | 112,410,550 | 207,325,675 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Payable: | |||||||||||||||||||||||||||||||
Fund shares repurchased | 63,285 | – | 230,579 | 39,740 | – | 9,972 | 54,108 | ||||||||||||||||||||||||
Investment securities purchased | – | – | – | – | – | 36,456 | 6,869,462 | ||||||||||||||||||||||||
Investment securities purchased on a forward – commitment basis (note 2) | 7,506,073 | – | – | – | – | – | – | ||||||||||||||||||||||||
Adviser | 211,657 | 216,937 | 47,201 | 76,735 | 228,739 | 99,487 | 153,309 | ||||||||||||||||||||||||
Variation margin | 6,414 | 409,175 | – | 66,783 | 49,840 | 89,380 | 68,975 | ||||||||||||||||||||||||
Accrued expenses | 86,672 | 59,069 | 56,659 | 55,306 | 88,022 | 86,734 | 42,037 | ||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | – | – | – | – | – | 1,083,055 | – | ||||||||||||||||||||||||
Call options written at value (premiums of $54,479 for Advantus Dynamic Managed Volatility Fund) | – | 19,706 | – | – | – | – | – | ||||||||||||||||||||||||
Total liabilities | 7,874,101 | 704,887 | 334,439 | 238,564 | 366,601 | 1,405,084 | 7,187,891 | ||||||||||||||||||||||||
Net assets applicable to outstanding capital stock | $ | 370,268,415 | $ | 281,000,073 | $ | 77,794,794 | $ | 218,697,704 | $ | 742,810,101 | $ | 111,005,466 | $ | 200,137,784 | |||||||||||||||||
Net Assets Consist of: | |||||||||||||||||||||||||||||||
Paid in capital** | $ | 330,796,745 | $ | 258,564,595 | $ | 77,792,728 | $ | 61,261,501 | $ | 175,668,053 | $ | 113,156,104 | $ | 198,067,198 | |||||||||||||||||
Retained earnings (deficit) | 39,471,670 | 22,435,478 | 2,066 | 157,436,203 | 567,142,048 | – | 2,070,586 | ||||||||||||||||||||||||
Undistributed net investment income (loss) | – | – | – | – | – | (4,915,077 | ) | – | |||||||||||||||||||||||
Accumulated net realized gain (loss) | – | – | – | – | – | 597,647 | – | ||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||||||
Investments | – | – | – | – | – | (2,149,975 | ) | – | |||||||||||||||||||||||
Foreign currency and forward currency transactions | – | – | – | – | – | 4,612,298 | – | ||||||||||||||||||||||||
Swaps | – | – | – | – | – | (295,531 | ) | – | |||||||||||||||||||||||
Net assets | $ | 370,268,415 | $ | 281,000,073 | $ | 77,794,794 | $ | 218,697,704 | $ | 742,810,101 | $ | 111,005,466 | $ | 200,137,784 | |||||||||||||||||
Net assets by class: | |||||||||||||||||||||||||||||||
Class 1 | $ | 2,112,706 | $ | N/A | $ | N/A | $ | 4,290,100 | $ | 133,013,769 | $ | 1,097,472 | $ | N/A | |||||||||||||||||
Class 2 | 368,155,709 | 281,000,073 | 77,794,794 | 214,407,604 | 609,796,332 | 109,907,994 | 200,137,784 | ||||||||||||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||||||||||||||
Class 1 | 2.257 | N/A | N/A | 4.275 | 8.745 | 2.499 | N/A | ||||||||||||||||||||||||
Class 2 | 2.212 | 12.210 | 1.000 | 4.191 | 8.573 | 2.450 | 10.483 | ||||||||||||||||||||||||
* Identified cost: | |||||||||||||||||||||||||||||||
Unaffiliated issuers | $ | 369,798,922 | $ | 154,638,326 | $ | 78,067,152 | $ | 156,264,400 | $ | 331,366,257 | $ | 106,693,159 | $ | 207,622,141 | |||||||||||||||||
Affiliated issuers | – | 107,000,000 | – | – | – | – | – | ||||||||||||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||||||||||||||
Class 1 | 936,068 | N/A | N/A | 1,003,427 | 15,209,494 | 439,157 | N/A | ||||||||||||||||||||||||
Class 2 | 166,401,852 | 23,013,062 | 77,794,794 | 51,157,151 | 71,133,513 | 44,868,134 | 19,091,991 | ||||||||||||||||||||||||
^ Collateral for open centrally cleared swaps | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 1,207,651 | $ | – | |||||||||||||||||
^^ Foreign currency on deposit (cost) | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 63,100 | $ | – | |||||||||||||||||
^^^ Cash collateral for Open Futures Contracts | $ | – | $ | – | $ | – | $ | 643,200 | $ | – | $ | – | $ | – |
1 Formerly SFT Advantus Managed Volatility Fund.
2 Formerly SFT Advantus Money Market Fund.
See accompanying notes to financial statements.
94
SFT Advantus Mortgage Securities Fund | SFT Advantus Real Estate Securities Fund | SFT IvySM Growth Fund | SFT IvySM Small Cap Growth Fund | SFT Pyramis® Core Equity Fund | SFT T. Rowe Price Value Fund | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Investments in securities, at market value – see accompanying schedule for detailed listing* | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 98,990,226 | $ | 146,541,481 | $ | 438,891,933 | $ | 163,561,835 | $ | 113,613,492 | $ | 208,283,094 | |||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Cash on demand deposit^,^^^ | 750 | – | – | – | 7,040 | – | |||||||||||||||||||||
Foreign currency on deposit^^ | – | – | – | – | – | – | |||||||||||||||||||||
Receivable: | |||||||||||||||||||||||||||
Fund shares sold | 15 | 13,309 | – | 62,840 | – | – | |||||||||||||||||||||
Investment securities sold (including paydowns) | – | 1,419,455 | – | – | 888,861 | 1,318,509 | |||||||||||||||||||||
Investment securities sold on a forward – commitment basis (note 2) | 1,078,024 | – | – | – | – | – | |||||||||||||||||||||
Dividends and accrued interest | 268,231 | 764,315 | 720,677 | 23,854 | 184,693 | 407,787 | |||||||||||||||||||||
Refundable foreign income taxes withheld | – | – | 38,515 | – | – | 20,394 | |||||||||||||||||||||
Adviser (note 4) | – | – | – | – | – | – | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | – | – | – | – | – | – | |||||||||||||||||||||
Prepaid expenses | 5,764 | 6,224 | 5,702 | 5,701 | 5,702 | 5,701 | |||||||||||||||||||||
Total assets | 100,343,010 | 148,744,784 | 439,656,827 | 163,654,230 | 114,699,788 | 210,035,485 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Payable: | |||||||||||||||||||||||||||
Fund shares repurchased | 9,312 | – | 249,915 | – | 47,150 | 33,687 | |||||||||||||||||||||
Investment securities purchased | – | 2,354,030 | – | 144,413 | – | 1,253,268 | |||||||||||||||||||||
Investment securities purchased on a forward – commitment basis (note 2) | 8,691,625 | – | – | – | – | – | |||||||||||||||||||||
Adviser | 58,859 | 119,353 | 351,892 | 157,741 | 94,361 | 168,761 | |||||||||||||||||||||
Variation margin | – | – | – | – | – | – | |||||||||||||||||||||
Accrued expenses | 53,585 | 47,867 | 70,420 | 57,683 | 63,626 | 66,986 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | – | – | – | – | – | – | |||||||||||||||||||||
Call options written at value (premiums of $54,479 for Advantus Dynamic Managed Volatility Fund) | – | – | – | – | – | – | |||||||||||||||||||||
Total liabilities | 8,813,381 | 2,521,250 | 672,227 | 359,837 | 205,137 | 1,522,702 | |||||||||||||||||||||
Net assets applicable to outstanding capital stock | $ | 91,529,629 | $ | 146,223,534 | $ | 438,984,600 | $ | 163,294,393 | $ | 114,494,651 | $ | 208,512,783 | |||||||||||||||
Net Assets Consist of: | |||||||||||||||||||||||||||
Paid in capital** | $ | 108,614,693 | $ | 59,781,772 | $ | 344,149,600 | $ | 125,652,310 | $ | 92,329,980 | $ | 173,705,104 | |||||||||||||||
Retained earnings (deficit) | (17,085,064 | ) | 86,441,762 | 94,835,000 | 37,642,083 | 22,164,671 | 34,807,679 | ||||||||||||||||||||
Undistributed net investment income (loss) | – | – | – | – | – | – | |||||||||||||||||||||
Accumulated net realized gain (loss) | – | – | – | – | – | – | |||||||||||||||||||||
Net unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||
Investments | – | – | – | – | – | – | |||||||||||||||||||||
Foreign currency and forward currency transactions | – | – | – | – | – | – | |||||||||||||||||||||
Swaps | – | – | – | – | – | – | |||||||||||||||||||||
Net assets | $ | 91,529,629 | $ | 146,223,534 | $ | 438,984,600 | $ | 163,294,393 | $ | 114,494,651 | $ | 208,512,783 | |||||||||||||||
Net assets by class: | |||||||||||||||||||||||||||
Class 1 | $ | 269,121 | $ | 3,085,034 | $ | N/A | $ | N/A | $ | 695,565 | $ | N/A | |||||||||||||||
Class 2 | 91,260,508 | 143,138,500 | 438,984,600 | 163,294,393 | 113,799,086 | 208,512,783 | |||||||||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||||||||||
Class 1 | 1.924 | 4.526 | N/A | N/A | 11.834 | N/A | |||||||||||||||||||||
Class 2 | 1.886 | 4.436 | 12.120 | 12.611 | 11.755 | 11.747 | |||||||||||||||||||||
* Identified cost: | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 98,846,250 | $ | 137,827,235 | $ | 378,554,389 | $ | 145,939,826 | $ | 103,920,808 | $ | 188,830,948 | |||||||||||||||
Affiliated issuers | – | – | – | – | – | – | |||||||||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||||||||||
Class 1 | 139,896 | 681,687 | N/A | N/A | 58,777 | N/A | |||||||||||||||||||||
Class 2 | 48,397,572 | 32,268,036 | 36,219,012 | 12,948,111 | 9,680,628 | 17,749,984 | |||||||||||||||||||||
^ Collateral for open centrally cleared swaps | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||||||
^^ Foreign currency on deposit (cost) | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||||||
^^^ Cash collateral for Open Futures Contracts | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – |
95
Securian Funds Trust
Statements of Operations
Year ended December 31, 2016
SFT Advantus Bond Fund | SFT Advantus Dynamic Managed Volatility Fund2 | SFT Advantus Government Money Market Fund3 | SFT Advantus Index 400 Mid-Cap Fund | SFT Advantus Index 500 Fund | SFT Advantus International Bond Fund | SFT Advantus Managed Volatility Equity Fund | |||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||
Interest1 | $ | 13,070,705 | $ | 3,350,062 | $ | 295,391 | $ | 31 | $ | 4 | $ | 4,242,489 | $ | – | |||||||||||||||||
Dividends | 11,280 | 355,490 | 6,944 | 3,165,563 | 15,189,288 | 45,273 | 3,600,979 | ||||||||||||||||||||||||
Foreign tax withholding | – | – | – | – | – | (266,741 | ) | – | |||||||||||||||||||||||
Total investment income | 13,081,985 | 3,705,552 | 302,335 | 3,165,594 | 15,189,292 | 4,021,021 | 3,600,979 | ||||||||||||||||||||||||
Expenses (note 4): | |||||||||||||||||||||||||||||||
Investment advisory fee | 1,530,420 | 1,517,691 | 248,863 | 303,212 | 1,049,167 | 657,717 | 725,058 | ||||||||||||||||||||||||
Rule 12b-1 fees | 946,119 | 583,728 | 207,386 | 479,455 | 1,452,421 | 271,517 | 278,868 | ||||||||||||||||||||||||
Audit and accounting services | 200,120 | 123,588 | 137,610 | 97,193 | 174,036 | 128,480 | 90,111 | ||||||||||||||||||||||||
Administrative services fee | 46,892 | 30,759 | 39,837 | 21,276 | 21,276 | 84,327 | 21,200 | ||||||||||||||||||||||||
Legal fees | 23,531 | 23,691 | 22,844 | 15,714 | 27,616 | 20,058 | 22,244 | ||||||||||||||||||||||||
Custodian fees | 19,703 | 10,290 | 5,337 | 21,755 | 22,534 | 150,602 | 16,260 | ||||||||||||||||||||||||
Printing and shareholder reports | 11,816 | 11,921 | 11,906 | 11,816 | 11,951 | 11,816 | 31,454 | ||||||||||||||||||||||||
Trustee's fees | 17,044 | 17,044 | 17,044 | 17,044 | 17,044 | 17,044 | 17,774 | ||||||||||||||||||||||||
S&P Licensing fee | – | 109 | – | 19,728 | 57,062 | – | – | ||||||||||||||||||||||||
Insurance | 6,921 | 6,921 | 6,921 | 6,921 | 6,921 | 6,921 | 7,692 | ||||||||||||||||||||||||
Other | 21,814 | 7,968 | 60,909 | 16,677 | 33,708 | 12,101 | 5,636 | ||||||||||||||||||||||||
Total expenses before fees waived | 2,824,380 | 2,333,710 | 758,657 | 1,010,791 | 2,873,736 | 1,360,583 | 1,216,297 | ||||||||||||||||||||||||
Less fees waived (note 4) | – | (465,146 | ) | (456,322 | ) | – | – | – | (323,512 | ) | |||||||||||||||||||||
Total expenses net of fees waived | 2,824,380 | 1,868,564 | 302,335 | 1,010,791 | 2,873,736 | 1,360,583 | 892,785 | ||||||||||||||||||||||||
Net investment income | 10,257,605 | 1,836,988 | – | 2,154,803 | 12,315,556 | 2,660,438 | 2,708,194 | ||||||||||||||||||||||||
Realized and unrealized gains (losses) on investments and foreign currencies: | |||||||||||||||||||||||||||||||
Investments (note 3) | |||||||||||||||||||||||||||||||
Unaffiliated issuers | 4,465,941 | (89,494 | ) | 41,658 | 21,418,066 | 17,139,596 | (7,107,080 | ) | 404,221 | ||||||||||||||||||||||
Swaps | – | – | – | – | – | (297,118 | ) | – | |||||||||||||||||||||||
Foreign currency transactions | – | – | – | – | – | (3,683,777 | ) | – | |||||||||||||||||||||||
Net increase from litigation payments | 3,735 | – | – | 1,505 | 29,007 | 34,031 | – | ||||||||||||||||||||||||
Futures transactions | (1,488,050 | ) | 898,661 | – | 2,583,358 | 1,239,074 | – | (1,164,424 | ) | ||||||||||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||
Unaffiliated issuers | 3,563,807 | 4,255,770 | – | 11,412,260 | 46,464,753 | 7,425,686 | (255,236 | ) | |||||||||||||||||||||||
Affiliated issuers (note 8) | – | 11,788,542 | – | – | – | – | – | ||||||||||||||||||||||||
Options written | – | 34,774 | – | – | – | – | – | ||||||||||||||||||||||||
Swaps | – | – | – | – | – | 253,933 | – | ||||||||||||||||||||||||
Translation of assets and liabilities in foreign currency | – | – | – | – | – | 4,019,748 | – | ||||||||||||||||||||||||
Futures transactions | (37,642 | ) | 1,512,941 | – | (192,001 | ) | 67,889 | – | 229,307 | ||||||||||||||||||||||
Net gains (losses) on investments | 6,507,791 | 18,401,194 | 41,658 | 35,223,188 | 69,940,319 | 645,423 | (786,132 | ) | |||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 16,765,396 | $ | 20,238,182 | $ | 41,658 | $ | 37,377,991 | $ | 77,255,875 | $ | 3,305,861 | $ | 1,922,062 |
1 All income is from unaffiliated issuers.
2 Formerly SFT Advantus Managed Volatility Fund.
3 Formerly SFT Advantus Money Market Fund.
See accompanying notes to financial statements.
96
SFT Advantus Mortgage Securities Fund | SFT Advantus Real Estate Securities Fund | SFT IvySM Growth Fund | SFT IvySM Small Cap Growth Fund | SFT Pyramis® Core Equity Fund | SFT T. Rowe Price Value Fund | ||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||
Interest1 | $ | 2,561,546 | $ | 10 | $ | 56,349 | $ | 63,613 | $ | 3,318 | $ | 8,471 | |||||||||||||||
Dividends | 18,455 | 3,750,715 | 5,693,451 | 782,910 | 1,928,987 | 5,438,951 | |||||||||||||||||||||
Foreign tax withholding | – | – | (70,398 | ) | – | (25,504 | ) | (139,494 | ) | ||||||||||||||||||
Total investment income | 2,580,001 | 3,750,725 | 5,679,402 | 846,523 | 1,906,801 | 5,307,928 | |||||||||||||||||||||
Expenses (note 4): | |||||||||||||||||||||||||||
Investment advisory fee | 378,759 | 1,049,332 | 3,008,793 | 1,285,457 | 782,045 | 1,353,619 | |||||||||||||||||||||
Rule 12b-1 fees | 235,202 | 362,574 | 1,122,684 | 378,076 | 299,229 | 505,082 | |||||||||||||||||||||
Audit and accounting services | 103,239 | 94,444 | 128,922 | 86,991 | 49,720 | 98,981 | |||||||||||||||||||||
Administrative services fee | 42,157 | 21,276 | 21,276 | 21,276 | 21,276 | 21,602 | |||||||||||||||||||||
Legal fees | 29,993 | 15,154 | 15,713 | 15,713 | 15,713 | 15,713 | |||||||||||||||||||||
Custodian fees | 13,120 | 10,569 | 14,095 | 14,611 | 26,916 | 29,137 | |||||||||||||||||||||
Printing and shareholder reports | 11,816 | 11,816 | 14,788 | 16,216 | 13,576 | 12,844 | |||||||||||||||||||||
Trustee's fees | 17,044 | 17,044 | 17,044 | 17,044 | 17,044 | 17,044 | |||||||||||||||||||||
S&P Licensing fee | – | – | – | – | – | – | |||||||||||||||||||||
Insurance | 6,921 | 6,921 | 6,921 | 6,921 | 6,921 | 6,921 | |||||||||||||||||||||
Other | 11,030 | 12,816 | 38,784 | 26,920 | 25,120 | 28,252 | |||||||||||||||||||||
Total expenses before fees waived | 849,281 | 1,601,946 | 4,389,020 | 1,869,225 | 1,257,560 | 2,089,195 | |||||||||||||||||||||
Less fees waived (note 4) | – | – | – | – | – | – | |||||||||||||||||||||
Total expenses net of fees waived | 849,281 | 1,601,946 | 4,389,020 | 1,869,225 | 1,257,560 | 2,089,195 | |||||||||||||||||||||
Net investment income | 1,730,720 | 2,148,779 | 1,290,382 | (1,022,702 | ) | 649,241 | 3,218,733 | ||||||||||||||||||||
Realized and unrealized gains (losses) on investments and foreign currencies: | |||||||||||||||||||||||||||
Investments (note 3) | |||||||||||||||||||||||||||
Unaffiliated issuers | 41,847 | 19,378,674 | 18,697,201 | 13,489,268 | (870,564 | ) | 4,661,153 | ||||||||||||||||||||
Swaps | – | – | – | – | – | – | |||||||||||||||||||||
Foreign currency transactions | – | – | (782 | ) | – | – | (8,014 | ) | |||||||||||||||||||
Net increase from litigation payments | 1,643 | – | – | – | – | – | |||||||||||||||||||||
Futures transactions | – | – | – | – | – | – | |||||||||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||
Unaffiliated issuers | (477,313 | ) | (14,560,817 | ) | (16,646,983 | ) | 16,850,153 | 5,750,668 | 12,604,743 | ||||||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Options written | – | – | – | – | – | – | |||||||||||||||||||||
Swaps | – | – | – | – | – | – | |||||||||||||||||||||
Translation of assets and liabilities in foreign currency | – | – | 576 | – | – | (55 | ) | ||||||||||||||||||||
Futures transactions | – | – | – | – | – | – | |||||||||||||||||||||
Net gains (losses) on investments | (433,823 | ) | 4,817,857 | 2,050,012 | 30,339,421 | 4,880,104 | 17,257,827 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 1,296,897 | $ | 6,966,636 | $ | 3,340,394 | $ | 29,316,719 | $ | 5,529,345 | $ | 20,476,560 |
97
Securian Funds Trust
Statements of Changes in Net Assets
Year ended December 31, 2016 and year or period ended December 31, 2015
SFT Advantus Bond Fund | SFT Advantus Dynamic Managed Volatility Fund1 | SFT Advantus Government Money Market Fund2 | |||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income | $ | 10,257,605 | $ | 10,453,139 | $ | 1,836,988 | $ | 1,301,223 | $ | – | $ | – | |||||||||||||||
Net realized gains (losses) on investments | 2,981,626 | (56,332 | ) | 809,167 | (5,238,146 | ) | 41,658 | 872 | |||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 3,526,165 | (9,655,397 | ) | 17,592,027 | (3,545,337 | ) | – | – | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 16,765,396 | 741,410 | 20,238,182 | (7,482,260 | ) | 41,658 | 872 | ||||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 1,071,196 | 1,323,447 | – | – | – | – | |||||||||||||||||||||
Class 2 | 9,479,053 | 47,256,298 | 64,812,698 | 105,460,244 | 25,360,844 | 39,859,401 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (5,524,161 | ) | (496,546 | ) | – | – | – | – | |||||||||||||||||||
Class 2 | (40,699,918 | ) | (33,976,002 | ) | (8,037,442 | ) | (25,038,119 | ) | (36,436,264 | ) | (37,936,081 | ) | |||||||||||||||
Increase (decrease) in net assets from capital stock transactions | (35,673,830 | ) | 14,107,197 | 56,775,256 | 80,422,125 | (11,075,420 | ) | 1,923,320 | |||||||||||||||||||
Total increase (decrease) in net assets | (18,908,434 | ) | 14,848,607 | 77,013,438 | 72,939,865 | (11,033,762 | ) | 1,924,192 | |||||||||||||||||||
Net assets at beginning of period | 389,176,849 | 374,328,242 | 203,986,635 | 131,046,770 | 88,828,556 | 86,904,364 | |||||||||||||||||||||
Net assets at end of period | $ | 370,268,415 | $ | 389,176,849 | $ | 281,000,073 | $ | 203,986,635 | $ | 77,794,794 | $ | 88,828,556 | |||||||||||||||
Undistributed net investment income (loss) | – | – | – | – | – | – | |||||||||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 476,305 | 608,048 | – | – | – | – | |||||||||||||||||||||
Class 2 | 4,276,897 | 22,265,947 | 5,546,365 | 9,126,430 | 25,360,844 | 39,859,401 | |||||||||||||||||||||
Net change from capital transactions | 4,753,202 | 22,873,995 | 5,546,365 | 9,126,430 | 25,360,844 | 39,859,401 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (2,434,351 | ) | (228,367 | ) | – | – | – | – | |||||||||||||||||||
Class 2 | (18,517,648 | ) | (15,928,093 | ) | (704,549 | ) | (2,249,753 | ) | (36,436,264 | ) | (37,936,081 | ) | |||||||||||||||
Net change from capital transactions | (20,951,999 | ) | (16,156,460 | ) | (704,549 | ) | (2,249,753 | ) | (36,436,264 | ) | (37,936,081 | ) |
1 Formerly SFT Advantus Managed Volatility Fund.
2 Formerly SFT Advantus Money Market Fund.
See accompanying notes to financial statements.
98
SFT Advantus Index 400 Mid-Cap Fund | SFT Advantus Index 500 Fund | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 2,154,803 | $ | 2,284,055 | $ | 12,315,556 | $ | 11,103,511 | |||||||||||
Net realized gains (losses) on investments | 24,002,929 | 24,990,434 | 18,407,677 | 34,220,766 | |||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 11,220,259 | (32,528,902 | ) | 46,532,642 | (38,613,344 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 37,377,991 | (5,254,413 | ) | 77,255,875 | 6,710,933 | ||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 2,482,226 | 3,014,567 | 39,781,486 | 50,362,052 | |||||||||||||||
Class 2 | 15,063,744 | 4,553,072 | 19,868,185 | 41,848,727 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (16,796,206 | ) | (1,143,425 | ) | (30,547,533 | ) | (2,010,310 | ) | |||||||||||
Class 2 | (21,994,165 | ) | (32,328,550 | ) | (50,827,160 | ) | (56,072,867 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | (21,244,401 | ) | (25,904,336 | ) | (21,725,022 | ) | 34,127,602 | ||||||||||||
Total increase (decrease) in net assets | 16,133,590 | (31,158,749 | ) | 55,530,853 | 40,838,535 | ||||||||||||||
Net assets at beginning of period | 202,564,114 | 233,722,863 | 687,279,248 | 646,440,713 | |||||||||||||||
Net assets at end of period | $ | 218,697,704 | $ | 202,564,114 | $ | 742,810,101 | $ | 687,279,248 | |||||||||||
Undistributed net investment income (loss) | – | – | – | – | |||||||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 656,440 | 815,402 | 4,902,663 | 6,459,152 | |||||||||||||||
Class 2 | 3,859,189 | 1,246,026 | 2,470,698 | 5,414,073 | |||||||||||||||
Net change from capital transactions | 4,515,629 | 2,061,428 | 7,373,361 | 11,873,225 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (4,394,872 | ) | (309,356 | ) | (3,770,199 | ) | (254,782 | ) | |||||||||||
Class 2 | (5,895,049 | ) | (8,932,333 | ) | (6,344,595 | ) | (7,229,840 | ) | |||||||||||
Net change from capital transactions | (10,289,921 | ) | (9,241,689 | ) | (10,114,794 | ) | (7,484,622 | ) |
99
Securian Funds Trust
Statements of Changes in Net Assets – continued
Year ended December 31, 2016 and year or period ended December 31, 2015
SFT Advantus International Bond Fund | SFT Advantus Managed Volatility Equity Fund1 | SFT Advantus Mortgage Securities Fund | |||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income | $ | 2,660,438 | $ | 2,800,233 | $ | 2,708,194 | $ | 141,381 | $ | 1,730,720 | $ | 1,950,839 | |||||||||||||||
Net realized gains (losses) on investments | (11,053,944 | ) | 3,409,319 | (760,203 | ) | 30,182 | 43,490 | 2,091,083 | |||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 11,699,367 | (11,294,404 | ) | (25,929 | ) | (23,039 | ) | (477,313 | ) | (1,214,082 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 3,305,861 | (5,084,852 | ) | 1,922,062 | 148,524 | 1,296,897 | 2,827,840 | ||||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 192,546 | 171,531 | – | – | 110,281 | 147,030 | |||||||||||||||||||||
Class 2 | 2,867,716 | 3,282,098 | 173,343,080 | 25,365,524 | 4,985,962 | 3,492,012 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (116,726 | ) | (86,111 | ) | – | – | (778,863 | ) | (73,822 | ) | |||||||||||||||||
Class 2 | (8,775,824 | ) | (9,862,746 | ) | (641,406 | ) | – | (8,499,819 | ) | (10,139,060 | ) | ||||||||||||||||
Increase (decrease) in net assets from capital stock transactions | (5,832,288 | ) | (6,495,228 | ) | 172,701,674 | 25,365,524 | (4,182,439 | ) | (6,573,840 | ) | |||||||||||||||||
Total increase (decrease) in net assets | (2,526,427 | ) | (11,580,080 | ) | 174,623,736 | 25,514,048 | (2,885,542 | ) | (3,746,000 | ) | |||||||||||||||||
Net assets at beginning of period | 113,531,893 | 125,111,973 | 25,514,048 | – | 94,415,171 | 98,161,171 | |||||||||||||||||||||
Net assets at end of period | $ | 111,005,466 | $ | 113,531,893 | $ | 200,137,784 | $ | 25,514,048 | $ | 91,529,629 | $ | 94,415,171 | |||||||||||||||
Undistributed net investment income (loss) | (4,915,077 | ) | – | – | – | – | – | ||||||||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 80,466 | 69,081 | – | – | 57,106 | 78,384 | |||||||||||||||||||||
Class 2 | 1,224,266 | 1,337,257 | 16,619,423 | 2,535,129 | 2,624,654 | 1,893,593 | |||||||||||||||||||||
Net change from capital transactions | 1,304,732 | 1,406,338 | 16,619,423 | 2,535,129 | 2,681,760 | 1,971,977 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (48,297 | ) | (34,876 | ) | – | – | (399,174 | ) | (39,320 | ) | |||||||||||||||||
Class 2 | (3,722,946 | ) | (4,054,692 | ) | (62,561 | ) | – | (4,469,887 | ) | (5,501,246 | ) | ||||||||||||||||
Net change from capital transactions | (3,771,243 | ) | (4,089,568 | ) | (62,561 | ) | – | (4,869,061 | ) | (5,540,566 | ) |
1 The Fund commenced operations on November 18, 2015.
See accompanying notes to financial statements.
100
SFT Advantus Real Estate Securities Fund | SFT IvySM Growth Fund | SFT IvySM Small Cap Growth Fund | |||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income | $ | 2,148,779 | $ | 1,922,347 | $ | 1,290,382 | $ | 39,792 | $ | (1,022,702 | ) | $ | (1,454,377 | ) | |||||||||||||
Net realized gains (losses) on investments | 19,378,674 | 13,037,803 | 18,696,419 | 16,189,994 | 13,489,268 | 10,108,406 | |||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (14,560,817 | ) | (8,048,576 | ) | (16,646,407 | ) | 16,755,800 | 16,850,153 | (14,170,483 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 6,966,636 | 6,911,574 | 3,340,394 | 32,985,586 | 29,316,719 | (5,516,454 | ) | ||||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 1,216,024 | 1,345,152 | – | – | – | – | |||||||||||||||||||||
Class 2 | 6,915,526 | 21,582,789 | 1,697,051 | 4,349,063 | 3,486,016 | 2,783,923 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (5,480,644 | ) | (411,732 | ) | – | – | – | – | |||||||||||||||||||
Class 2 | (15,300,382 | ) | (24,401,085 | ) | (45,133,736 | ) | (58,828,446 | ) | (14,973,753 | ) | (34,086,306 | ) | |||||||||||||||
Increase (decrease) in net assets from capital stock transactions | (12,649,476 | ) | (1,884,876 | ) | (43,436,685 | ) | (54,479,383 | ) | (11,487,737 | ) | (31,302,383 | ) | |||||||||||||||
Total increase (decrease) in net assets | (5,682,840 | ) | 5,026,698 | (40,096,291 | ) | (21,493,797 | ) | 17,828,982 | (36,818,837 | ) | |||||||||||||||||
Net assets at beginning of period | 151,906,374 | 146,879,676 | 479,080,891 | 500,574,688 | 145,465,411 | 182,284,248 | |||||||||||||||||||||
Net assets at end of period | $ | 146,223,534 | $ | 151,906,374 | $ | 438,984,600 | $ | 479,080,891 | $ | 163,294,393 | $ | 145,465,411 | |||||||||||||||
Undistributed net investment income (loss) | – | – | – | – | – | – | |||||||||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 271,256 | 323,734 | – | – | – | – | |||||||||||||||||||||
Class 2 | 1,555,728 | 5,150,917 | 149,149 | 368,876 | 291,775 | 240,445 | |||||||||||||||||||||
Net change from capital transactions | 1,826,984 | 5,474,651 | 149,149 | 368,876 | 291,775 | 240,445 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (1,150,736 | ) | (98,752 | ) | – | – | – | – | |||||||||||||||||||
Class 2 | (3,450,344 | ) | (5,925,709 | ) | (3,815,228 | ) | (4,967,733 | ) | (1,311,293 | ) | (3,135,086 | ) | |||||||||||||||
Net change from capital transactions | (4,601,080 | ) | (6,024,461 | ) | (3,815,228 | ) | (4,967,733 | ) | (1,311,293 | ) | (3,135,086 | ) |
101
Securian Funds Trust
Statements of Changes in Net Assets – continued
Year ended December 31, 2016 and year or period ended December 31, 2015
SFT Pyramis® Core Equity Fund | SFT T. Rowe Price Value Fund | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 649,241 | $ | 570,340 | $ | 3,218,733 | $ | 2,436,307 | |||||||||||
Net realized gains (losses) on investments | (870,564 | ) | 7,209,453 | 4,653,139 | 4,789,143 | ||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 5,750,668 | (6,584,517 | ) | 12,604,688 | (11,463,997 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 5,529,345 | 1,195,276 | 20,476,560 | (4,238,547 | ) | ||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 140,311 | 77,858 | – | – | |||||||||||||||
Class 2 | 900,567 | 6,540,794 | 2,353,560 | 2,389,895 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (65,854 | ) | (162,872 | ) | – | – | |||||||||||||
Class 2 | (20,893,360 | ) | (20,701,936 | ) | (22,014,912 | ) | (23,656,051 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | (19,918,336 | ) | (14,246,156 | ) | (19,661,352 | ) | (21,266,156 | ) | |||||||||||
Total increase (decrease) in net assets | (14,388,991 | ) | (13,050,880 | ) | 815,208 | (25,504,703 | ) | ||||||||||||
Net assets at beginning of period | 128,883,642 | 141,934,522 | 207,697,575 | 233,202,278 | |||||||||||||||
Net assets at end of period | $ | 114,494,651 | $ | 128,883,642 | $ | 208,512,783 | $ | 207,697,575 | |||||||||||
Undistributed net investment income (loss) | – | – | – | – | |||||||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 12,504 | 6,770 | – | – | |||||||||||||||
Class 2 | 83,279 | 566,592 | 217,525 | 227,035 | |||||||||||||||
Net change from capital transactions | 95,783 | 573,362 | 217,525 | 227,035 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (5,857 | ) | (14,094 | ) | – | – | |||||||||||||
Class 2 | (1,843,703 | ) | (1,819,275 | ) | (2,030,629 | ) | (2,184,806 | ) | |||||||||||
Net change from capital transactions | (1,849,560 | ) | (1,833,369 | ) | (2,030,629 | ) | (2,184,806 | ) |
See accompanying notes to financial statements.
102
Securian Funds Trust
Financial Highlights
SFT Advantus Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.157 | $ | 2.148 | $ | 2.016 | $ | 2.024 | $ | 1.880 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .066 | .066 | .064 | .060 | .055 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .034 | (.057 | ) | .068 | (.068 | ) | .089 | ||||||||||||||||
Total from investment operations | .100 | .009 | .132 | (.008 | ) | .144 | |||||||||||||||||
Net asset value, end of period | $ | 2.257 | $ | 2.157 | $ | 2.148 | $ | 2.016 | $ | 2.024 | |||||||||||||
Total return (b) | 4.63 | % | 0.41 | % | 6.56 | % | (0.40 | )% | 7.69 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 2,113 | $ | 6,243 | $ | 5,402 | $ | 4,414 | $ | 3,156 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .49 | % | .49 | % | .49 | % | .51 | % | .51 | % | |||||||||||||
Net investment income | 2.97 | % | 3.03 | % | 3.07 | % | 2.96 | % | 2.77 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 249.6 | % | 179.3 | % | 193.5 | % | 235.8 | % | 205.5 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.120 | $ | 2.117 | $ | 1.991 | $ | 2.004 | $ | 1.866 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .059 | .059 | .058 | .054 | .047 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .033 | (.056 | ) | .068 | (.067 | ) | .091 | ||||||||||||||||
Total from investment operations | .092 | .003 | .126 | (.013 | ) | .138 | |||||||||||||||||
Net asset value, end of period | $ | 2.212 | $ | 2.120 | $ | 2.117 | $ | 1.991 | $ | 2.004 | |||||||||||||
Total return (b) | 4.37 | % | 0.16 | % | 6.29 | % | (0.65 | )% | 7.42 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 368,156 | $ | 382,934 | $ | 368,926 | $ | 356,034 | $ | 360,115 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .74 | % | .74 | % | .74 | % | .76 | % | .76 | % | |||||||||||||
Net investment income | 2.68 | % | 2.78 | % | 2.82 | % | 2.71 | % | 2.41 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 249.6 | % | 179.3 | % | 193.5 | % | 235.8 | % | 205.5 | % |
(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.
103
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Dynamic Managed Volatility Fund
(formerly SFT Advantus Managed Volatility Fund)
Year or period ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 (a) | ||||||||||||||||
Net asset value, beginning of period | $ | 11.226 | $ | 11.603 | $ | 10.731 | $ | 10.000 | |||||||||||
Income from investment operations: | |||||||||||||||||||
Net investment income (b) . | .091 | .082 | .039 | .008 | |||||||||||||||
Net gains (losses) (both realized and unrealized) . | .893 | (.459 | ) | .833 | .723 | ||||||||||||||
Total from investment operations . | .984 | (.377 | ) | .872 | .731 | ||||||||||||||
Net asset value, end of period | $ | 12.210 | $ | 11.226 | $ | 11.603 | $ | 10.731 | |||||||||||
Total return (c) | 8.77 | % | (3.25 | )% | 8.12 | % | 7.31 | % | |||||||||||
Net assets, end of period (in thousands) | $ | 281,000 | $ | 203,987 | $ | 131,047 | $ | 52,931 | |||||||||||
Ratios to average net assets: | |||||||||||||||||||
Expenses before waiver (d) | 1.00 | % | 1.02 | % | 1.19 | % | 1.37 | %(e) | |||||||||||
Expenses net of waiver (d)(f) . | .80 | % | .80 | % | .80 | % | .80 | %(e) | |||||||||||
Net investment income | .79 | % | .71 | % | .35 | % | .12 | %(e) | |||||||||||
Portfolio turnover rate (excluding short-term securities) | 1.4 | % | 5.1 | % | 1.5 | % | 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 and distributor (see note 4).
104
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Government Money Market Fund
(formerly SFT Advantus Money Market Fund)
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | – | – | – | – | – | ||||||||||||||||||
Total from investment operations | – | – | – | – | – | ||||||||||||||||||
Net asset value, end of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Total return (b) | – | % | – | % | – | % | – | % | – | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 77,795 | $ | 88,829 | $ | 86,904 | $ | 89,423 | $ | 95,858 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses before waiver (c) . | .91 | % | .85 | % | .83 | % | .86 | % | .83 | % | |||||||||||||
Expenses net of waiver (c)(d) . | .36 | % | .12 | % | .10 | % | .13 | % | .17 | % | |||||||||||||
Net investment income | – | % | – | % | – | % | – | % | – | % |
(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.
(d) Ratio is net of fees waived by the advisor and distributor (see note 4).
105
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Index 400 Mid-Cap Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.553 | $ | 3.640 | $ | 3.324 | $ | 2.497 | $ | 2.124 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .045 | .046 | .040 | .034 | .040 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .677 | (.133 | ) | .276 | .793 | .333 | |||||||||||||||||
Total from investment operations | .722 | (.087 | ) | .316 | .827 | .373 | |||||||||||||||||
Net asset value, end of period | $ | 4.275 | $ | 3.553 | $ | 3.640 | $ | 3.324 | $ | 2.497 | |||||||||||||
Total return (b) | 20.34 | % | (2.39 | )% | 9.51 | % | 33.11 | % | 17.54 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 4,290 | $ | 16,847 | $ | 15,418 | $ | 12,802 | $ | 6,656 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .26 | % | .26 | % | .25 | % | .28 | % | .31 | % | |||||||||||||
Net investment income | 1.24 | % | 1.24 | % | 1.15 | % | 1.15 | % | 1.65 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 18.5 | % | 16.1 | % | 12.0 | % | 9.3 | % | 8.0 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.491 | $ | 3.586 | $ | 3.283 | $ | 2.472 | $ | 2.109 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .039 | .036 | .030 | .025 | .023 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .661 | (.131 | ) | .273 | .786 | .340 | |||||||||||||||||
Total from investment operations | .700 | (.095 | ) | .303 | .811 | .363 | |||||||||||||||||
Net asset value, end of period | $ | 4.191 | $ | 3.491 | $ | 3.586 | $ | 3.283 | $ | 2.472 | |||||||||||||
Total return (b) | 20.04 | % | (2.63 | )% | 9.24 | % | 32.78 | % | 17.24 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 214,408 | $ | 185,717 | $ | 218,305 | $ | 215,884 | $ | 180,588 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .51 | % | .51 | % | .50 | % | .53 | % | .56 | % | |||||||||||||
Net investment income | 1.06 | % | .98 | % | .89 | % | .87 | % | .99 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 18.5 | % | 16.1 | % | 12.0 | % | 9.3 | % | 8.0 | % |
(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.
106
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Index 500 Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 7.829 | $ | 7.737 | $ | 6.822 | $ | 5.167 | $ | 4.465 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) . | .160 | .147 | .132 | .115 | .111 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .756 | (.055 | ) | .783 | 1.540 | .591 | |||||||||||||||||
Total from investment operations . | .916 | .092 | .915 | 1.655 | .702 | ||||||||||||||||||
Net asset value, end of period | $ | 8.745 | $ | 7.829 | $ | 7.737 | $ | 6.822 | $ | 5.167 | |||||||||||||
Total return (b) | 11.72 | % | 1.18 | % | 13.41 | % | 32.04 | % | 15.71 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 133,014 | $ | 110,210 | $ | 60,909 | $ | 36,387 | $ | 11,524 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) . | .20 | % | .21 | % | .21 | % | .22 | % | .24 | % | |||||||||||||
Net investment income | 1.97 | % | 1.88 | % | 1.83 | % | 1.88 | % | 2.19 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 3.5 | % | 6.1 | % | 4.8 | % | 4.5 | % | 2.6 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 7.693 | $ | 7.622 | $ | 6.737 | $ | 5.115 | $ | 4.432 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .136 | .124 | .110 | .095 | .088 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) . | .744 | (.053 | ) | .775 | 1.527 | .595 | |||||||||||||||||
Total from investment operations . | .880 | .071 | .885 | 1.622 | .683 | ||||||||||||||||||
Net asset value, end of period | $ | 8.573 | $ | 7.693 | $ | 7.622 | $ | 6.737 | $ | 5.115 | |||||||||||||
Total return (b) | 11.44 | % | 0.93 | % | 13.13 | % | 31.71 | % | 15.42 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 609,796 | $ | 577,069 | $ | 585,532 | $ | 540,439 | $ | 432,694 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) . | .45 | % | .46 | % | .46 | % | .47 | % | .49 | % | |||||||||||||
Net investment income | 1.72 | % | 1.61 | % | 1.56 | % | 1.59 | % | 1.80 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 3.5 | % | 6.1 | % | 4.8 | % | 4.5 | % | 2.6 | % |
(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.
107
Securian Funds Trust
Financial Highlights – continued
SFT Advantus International Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.418 | $ | 2.517 | $ | 2.468 | $ | 2.464 | $ | 2.115 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .064 | .063 | .074 | .078 | .086 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .017 | (.162 | ) | (.025 | ) | (.074 | ) | .263 | |||||||||||||||
Total from investment operations | .081 | (.099 | ) | .049 | .004 | .349 | |||||||||||||||||
Net asset value, end of period | $ | 2.499 | $ | 2.418 | $ | 2.517 | $ | 2.468 | $ | 2.464 | |||||||||||||
Total return (b) | 3.35 | % | (3.92 | )% | 1.96 | % | 0.17 | % | 16.49 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 1,097 | $ | 984 | $ | 938 | $ | 756 | $ | 606 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.00 | % | .89 | % | .86 | % | .87 | % | .94 | % | |||||||||||||
Net investment income | 2.67 | % | 2.55 | % | 2.93 | % | 3.18 | % | 3.76 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 54.0 | % | 42.4 | % | 19.3 | % | 17.7 | % | 38.8 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.376 | $ | 2.479 | $ | 2.438 | $ | 2.440 | $ | 2.100 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .057 | .056 | .067 | .071 | .079 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) . | .017 | (.159 | ) | (.026 | ) | (.073 | ) | .261 | |||||||||||||||
Total from investment operations | .074 | (.103 | ) | .041 | (.002 | ) | .340 | ||||||||||||||||
Net asset value, end of period | $ | 2.450 | $ | 2.376 | $ | 2.479 | $ | 2.438 | $ | 2.440 | |||||||||||||
Total return (b) | 3.09 | % | (4.16 | )% | 1.70 | % | (0.08 | )% | 16.20 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 109,908 | $ | 112,548 | $ | 124,174 | $ | 128,885 | $ | 127,590 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.24 | % | 1.14 | % | 1.11 | % | 1.12 | % | 1.19 | % | |||||||||||||
Net investment income | 2.42 | % | 2.29 | % | 2.69 | % | 2.92 | % | 3.51 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 54.0 | % | 42.4 | % | 19.3 | % | 17.7 | % | 38.8 | % |
(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.
108
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Managed Volatility Equity Fund
Year or period ended December 31, | |||||||||||
2016 | 2015 (a) | ||||||||||
Net asset value, beginning of period | $ | 10.064 | $ | 10.000 | |||||||
Income from investment operations: | |||||||||||
Net investment income (b) | .253 | .066 | |||||||||
Net gains (losses) (both realized and unrealized) | .166 | (.002 | ) | ||||||||
Total from investment operations | .419 | .064 | |||||||||
Net asset value, end of period | $ | 10.483 | $ | 10.064 | |||||||
Total return (c) | 4.16 | % | 0.64 | % | |||||||
Net assets, end of period (in thousands) | $ | 200,138 | $ | 25,514 | |||||||
Ratios to average net assets: | |||||||||||
Expenses before waiver (d) | 1.09 | % | 2.28 | %(e) | |||||||
Expenses net of waiver (d)(f) | .80 | % | .80 | %(e) | |||||||
Net investment income | 2.43 | % | 5.53 | %(e) | |||||||
Portfolio turnover rate (excluding short-term securities) | 8.5 | % | 0.0 | % |
(a) The Fund commenced operations on November 18, 2015.
(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 and distributor (see note 4).
109
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Mortgage Securities Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.894 | $ | 1.835 | $ | 1.731 | $ | 1.761 | $ | 1.698 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .042 | .042 | .031 | .029 | .038 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | (.012 | ) | .017 | .073 | (.059 | ) | .025 | ||||||||||||||||
Total from investment operations | .030 | .059 | .104 | (.030 | ) | .063 | |||||||||||||||||
Net asset value, end of period | $ | 1.924 | $ | 1.894 | $ | 1.835 | $ | 1.731 | $ | 1.761 | |||||||||||||
Total return (b) | 1.58 | % | 3.21 | % | 6.03 | % | (1.73 | )% | 3.75 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 269 | $ | 913 | $ | 813 | $ | 985 | $ | 521 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) . | .65 | % | .64 | % | .63 | % | .68 | % | .68 | % | |||||||||||||
Net investment income | 2.18 | % | 2.25 | % | 1.73 | % | 1.67 | % | 2.18 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 85.8 | % | 141.4 | % | 232.2 | % | 370.7 | % | 231.3 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.861 | $ | 1.808 | $ | 1.709 | $ | 1.744 | $ | 1.685 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .035 | .037 | .026 | .025 | .034 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | (.010 | ) | .016 | .073 | (.060 | ) | .025 | ||||||||||||||||
Total from investment operations | .025 | .053 | .099 | (.035 | ) | .059 | |||||||||||||||||
Net asset value, end of period | $ | 1.886 | $ | 1.861 | $ | 1.808 | $ | 1.709 | $ | 1.744 | |||||||||||||
Total return (b) | 1.32 | % | 2.95 | % | 5.76 | % | (1.98 | )% | 3.49 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 91,261 | $ | 93,502 | $ | 97,348 | $ | 95,570 | $ | 96,902 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .90 | % | .89 | % | .88 | % | .93 | % | .93 | % | |||||||||||||
Net investment income | 1.83 | % | 2.00 | % | 1.48 | % | 1.44 | % | 1.98 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 85.8 | % | 141.4 | % | 232.2 | % | 370.7 | % | 231.3 | % |
(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.
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SFT Advantus Real Estate Securities Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 4.324 | $ | 4.108 | $ | 3.143 | $ | 3.100 | $ | 2.623 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .074 | .066 | .062 | .050 | .052 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .128 | .150 | .903 | (.007 | ) | .425 | |||||||||||||||||
Total from investment operations . | .202 | .216 | .965 | .043 | .477 | ||||||||||||||||||
Net asset value, end of period | $ | 4.526 | $ | 4.324 | $ | 4.108 | $ | 3.143 | $ | 3.100 | |||||||||||||
Total return (b) | 4.66 | % | 5.25 | % | 30.70 | % | 1.40 | % | 18.20 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 3,085 | $ | 6,750 | $ | 5,489 | $ | 3,713 | $ | 2,522 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .82 | % | .84 | % | .85 | % | .90 | % | .93 | % | |||||||||||||
Net investment income | 1.68 | % | 1.59 | % | 1.70 | % | 1.55 | % | 1.75 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 78.0 | % | 65.8 | % | 85.4 | % | 39.8 | % | 47.6 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value, beginning of period | $ | 4.249 | $ | 4.047 | $ | 3.104 | $ | 3.069 | $ | 2.603 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .063 | .053 | .050 | .038 | .034 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .124 | .149 | .893 | (.003 | ) | .432 | |||||||||||||||||
Total from investment operations | .187 | .202 | .943 | .035 | .466 | ||||||||||||||||||
Net asset value, end of period | $ | 4.436 | $ | 4.249 | $ | 4.047 | $ | 3.104 | $ | 3.069 | |||||||||||||
Total return (b) | 4.40 | % | 4.99 | % | 30.37 | % | 1.15 | % | 17.90 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 143,139 | $ | 145,156 | $ | 141,391 | $ | 112,753 | $ | 108,327 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.08 | % | 1.09 | % | 1.10 | % | 1.15 | % | 1.18 | % | |||||||||||||
Net investment income | 1.43 | % | 1.30 | % | 1.40 | % | 1.18 | % | 1.16 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 78.0 | % | 65.8 | % | 85.4 | % | 39.8 | % | 47.6 | % |
(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.
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SFT IvySM Growth Fund
Year or period ended December 31, | |||||||||||||||
2016 | 2015 | 2014 (a) | |||||||||||||
Net asset value, beginning of period | $ | 12.012 | $ | 11.253 | $ | 10.000 | |||||||||
Income from investment operations: | |||||||||||||||
Net investment income (b) | .034 | .001 | .011 | ||||||||||||
Net gains (both realized and unrealized) | .074 | .758 | 1.242 | ||||||||||||
Total from investment operations | .108 | .759 | 1.253 | ||||||||||||
Net asset value, end of period | $ | 12.120 | $ | 12.012 | $ | 11.253 | |||||||||
Total return (c) | 0.91 | % | 6.74 | % | 12.53 | % | |||||||||
Net assets, end of period (in thousands) | $ | 438,985 | $ | 479,081 | $ | 500,575 | |||||||||
Ratios to average net assets: | |||||||||||||||
Expenses (d) | .98 | % | .97 | % | .96 | %(e) | |||||||||
Net investment income | .29 | % | .01 | % | .15 | %(e) | |||||||||
Portfolio turnover rate (excluding short-term securities) | 52.5 | % | 31.6 | % | 44.7 | % |
(a) The Fund commenced operations on May 1, 2014.
(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.
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SFT IvySM Small Cap Growth Fund
Year or period ended December 31, | |||||||||||||||
2016 | 2015 | 2014 (a) | |||||||||||||
Net asset value, beginning of period | $ | 10.414 | $ | 10.810 | $ | 10.000 | |||||||||
Income from investment operations: | |||||||||||||||
Net investment income (b) | (.076 | ) | (.090 | ) | (.048 | ) | |||||||||
Net gains (losses) (both realized and unrealized) | 2.273 | (.306 | ) | .858 | |||||||||||
Total from investment operations | 2.197 | (.396 | ) | .810 | |||||||||||
Net asset value, end of period | $ | 12.611 | $ | 10.414 | $ | 10.810 | |||||||||
Total return (c) | 21.10 | % | (3.66 | )% | 8.10 | % | |||||||||
Net assets, end of period (in thousands) | $ | 163,294 | $ | 145,465 | $ | 182,284 | |||||||||
Ratios to average net assets: | |||||||||||||||
Expenses (d) | 1.24 | % | 1.19 | % | 1.22 | %(e) | |||||||||
Net investment income | (.68 | )% | (.80 | )% | (.71 | )%(e) | |||||||||
Portfolio turnover rate (excluding short-term securities) | 99.2 | % | 65.4 | % | 115.8 | % |
(a) The Fund commenced operations on May 1, 2014.
(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.
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Financial Highlights – continued
SFT Pyramis® Core Equity Fund
Class 1 Shares | |||||||||||||||
Year or period ended December 31, | |||||||||||||||
2016 | 2015 | 2014 (a) | |||||||||||||
Net asset value, beginning of period | $ | 11.261 | $ | 11.148 | $ | 10.000 | |||||||||
Income from investment operations: | |||||||||||||||
Net investment income (b) . | .089 | .075 | .053 | ||||||||||||
Net gains (both realized and unrealized) | .484 | .038 | 1.095 | ||||||||||||
Total from investment operations | .573 | .113 | 1.148 | ||||||||||||
Net asset value, end of period | $ | 11.834 | $ | 11.261 | $ | 11.148 | |||||||||
Total return (c) | 5.09 | % | 1.01 | % | 11.48 | % | |||||||||
Net assets, end of period (in thousands) | $ | 696 | $ | 587 | $ | 663 | |||||||||
Ratios to average net assets: | |||||||||||||||
Expenses (e) . | .80 | % | .78 | % | .86 | %(d) | |||||||||
Net investment income | .80 | % | .66 | % | .74 | %(d) | |||||||||
Portfolio turnover rate (excluding short-term securities) | 88.8 | % | 84.6 | % | 54.2 | % | |||||||||
Class 2 Shares | |||||||||||||||
Year or period ended December 31, | |||||||||||||||
2016 | 2015 | 2014 (a) | |||||||||||||
Net asset value, beginning of period | $ | 11.214 | $ | 11.129 | $ | 10.000 | |||||||||
Income from investment operations: | |||||||||||||||
Net investment income (b) | .060 | .046 | .035 | ||||||||||||
Net gains (both realized and unrealized) | .481 | .039 | 1.094 | ||||||||||||
Total from investment operations | .541 | .085 | 1.129 | ||||||||||||
Net asset value, end of period | $ | 11.755 | $ | 11.214 | $ | 11.129 | |||||||||
Total return (c) | 4.83 | % | 0.76 | % | 11.29 | % | |||||||||
Net assets, end of period (in thousands) | $ | 113,799 | $ | 128,297 | $ | 141,272 | |||||||||
Ratios to average net assets: | |||||||||||||||
Expenses (e) | 1.05 | % | 1.03 | % | 1.11 | %(d) | |||||||||
Net investment income | .54 | % | .41 | % | .49 | %(d) | |||||||||
Portfolio turnover rate (excluding short-term securities) | 88.8 | % | 84.6 | % | 54.2 | % |
(a) The Fund commenced operations on May 1, 2014.
(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) Adjusted to an annual basis.
(e) 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.
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SFT T. Rowe Price Value Fund
Year or period ended December 31, | |||||||||||||||
2016 | 2015 | 2014 (a) | |||||||||||||
Net asset value, beginning of period | $ | 10.617 | $ | 10.836 | $ | 10.000 | |||||||||
Income from investment operations: | |||||||||||||||
Net investment income (b) . | .173 | .119 | .077 | ||||||||||||
Net gains (losses) (both realized and unrealized) | .957 | (.338 | ) | .759 | |||||||||||
Total from investment operations | 1.130 | (.219 | ) | .836 | |||||||||||
Net asset value, end of period | $ | 11.747 | $ | 10.617 | $ | 10.836 | |||||||||
Total return (c) | 10.65 | % | (2.02 | )% | 8.36 | % | |||||||||
Net assets, end of period (in thousands) | $ | 208,513 | $ | 207,698 | $ | 233,202 | |||||||||
Ratios to average net assets: | |||||||||||||||
Expenses (d) | 1.03 | % | 1.01 | % | 1.02 | %(e) | |||||||||
Net investment income | 1.59 | % | 1.10 | % | 1.10 | %(e) | |||||||||
Portfolio turnover rate (excluding short-term securities) | 102.9 | % | 65.0 | % | 105.1 | % |
(a) The Fund commenced operations on May 1, 2014.
(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.
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Securian Funds Trust
Notes to Financial Statements
December 31, 2016
(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 SFT Advantus International Bond Fund operates as a non-diversified, open-end management investment company. The Trust is a series trust that includes the following Funds: SFT Advantus Bond, SFT Advantus Dynamic Managed Volatility (formerly known as SFT Advantus Managed Volatility Fund), SFT Advantus Government Money Market (formerly known as SFT Advantus Money Market Fund), SFT Advantus Index 400 Mid-Cap, SFT Advantus Index 500, SFT Advantus International Bond, SFT Advantus Managed Volatility Equity, SFT Advantus Mortgage Securities, SFT Advantus Real Estate Securities, SFT IvySM Growth, SFT IvySM Small Cap Growth, SFT Pyramis® Core Equity, and SFT T. Rowe Price Value Fund. Advantus Capital Management, Inc. ("Advantus Capital"), a wholly-owned subsidiary of Securian Financial Group, Inc., serves as the investment adviser to each of the Funds in the Trust pursuant to an investment advisory agreement between Advantus Capital and the Trust. The Trust's prospectus provides a detailed description of each Fund's investment objective, policies and strategies. The Funds may issue two classes of shares: Class 1 and Class 2, except for the SFT Advantus Dynamic Managed Volatility Fund, SFT Advantus Government Money Market Fund, SFT Advantus Managed Volatility Equity Fund, SFT IvySM Growth Fund, SFT IvySM Small Cap Growth Fund, and SFT T. Rowe Price Value Fund which offer shares in only one class. Class 2 shares and shares of the SFT Advantus Dynamic Managed Volatility Fund, SFT Advantus Government Money Market Fund, SFT Advantus Managed Volatility Equity Fund, SFT IvySM Growth Fund, SFT IvySM Small Cap Growth Fund, and SFT T. Rowe Price Value 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 accounts for the assets, liabilities and operations of each Fund separately. Shares of the Trust are not 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.
(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
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(2) Summary of Significant Accounting Policies – (continued)
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. Valuation Committee ("the Valuation Committee") under the supervision of the Trust's Board of Trustees ("the Board") and in accordance with Board-approved valuation policies and procedures. The Board has delegated the daily oversight of the securities valuation function to the Committee whose members ensure the valuations comply with the valuation policies and affirms the reasonableness of the fair valuation determinations. The fair valued securities are reviewed by the Board at their quarterly meetings.
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 SFT Advantus Government Money Market Fund, are valued at market. Pursuant to Rule 2a-7 of the 1940 Act, all securities in the SFT Advantus Government 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 SFT Advantus Government 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, 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.
SFT Advantus International Bond Fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuations. A forward foreign currency contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date. SFT 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 SFT Advantus International Bond Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. SFT Advantus International Bond Fund is subject to
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Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
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 for protection from market changes, the Funds (excluding the SFT Advantus Government 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 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 Investments in Securities for each Fund.
Interest Rate Swaps
The SFT Advantus International Bond Fund may enter into interest rate swap contracts primarily to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange interest rate cash flows during the life of the agreement. Each party's payment obligation is computed based on different interest rates, applied to a notional amount. Interest rate swaps often exchange payments based on a fixed rate for payments linked to a floating rate (i.e. Libor).
These agreements are executed on a registered exchange ("centrally cleared interest rate swaps"), significantly reducing risk from counterparty default. Upon entering into an interest rate swap contract, a Fund is required to pledge an initial margin, and the daily change in fair value is accounted for as a variation margin payable or receivable on the Statement of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized appreciation and depreciation until the payments are made, at which time they are realized.
Options Transactions
Each Fund (excluding the SFT Advantus Government 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. An option is 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 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
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Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
collateral consisting of cash, U.S. government securities or other liquid assets sufficient to collateralize the market value of written options.
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 agencies 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, 2016, no Funds were invested in repurchase agreements.
Federal Taxes
Each Fund, other than SFT Advantus Dynamic Managed Volatility Fund, SFT Advantus International Bond Fund, SFT Advantus Managed Volatility Equity Fund, and SFT T. Rowe Price Value Fund, qualifies for federal income tax purposes as a partnership under the Internal Revenue Code of 1986, as amended (the "Code"). A Fund is treated, for federal income tax purposes, as a partnership if it has more than one shareholder. 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. As a partnership, a Fund is not subject to income tax, and any income, gains, deductions or losses of the Fund will instead pass through and be taken into account for federal income tax purposes by its partners, which will be Minnesota Life and Securian Life through their respective separate accounts. SFT Advantus Dynamic Managed Volatility Fund, SFT Advantus Managed Volatility Equity Fund and SFT T. Rowe Price Value Fund are treated as disregarded entities for federal income tax purposes. While the Trust anticipates that each Fund other than SFT Advantus Dynamic Managed Volatility Fund, SFT Advantus Managed Volatility Equity Fund, and SFT T. Rowe Price Value 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 would be treated as a disregarded entity for federal income tax purposes. A disregarded entity is disregarded for federal income tax purposes as an entity separate from its owner, and the owner is treated as directly owning the assets of the disregarded entity and takes into account for federal income tax purposes the income, gains, deductions and losses relating to those assets.
Effective January 1, 2016, SFT Advantus International Bond Fund elected to qualify and intends to continue to qualify as a regulated investment company for federal income tax purposes. The Fund's policy is to comply with the requirements of subchapter M of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all (or a sufficient amount) its taxable income and net capital gain to its shareholders. Therefore, no income tax provision is required.
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, 2016. The Funds' federal and state income returns for which the applicable statutes of limitations have not expired (2013, 2014, 2015 and 2016) 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.
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Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
Capital Loss Carryforwards
As of December 31, 2016, the Funds had no realized capital loss carryforwards, for U.S. federal income tax purposes, available to be used to offset future realized capital gains.
Distributions to Shareholders
Distributions to shareholders from net investment income and realized gains (if any) for the SFT Advantus Government Money Market Fund are declared daily and reinvested at month-end in additional shares of capital stock. Distributions to shareholders from net investment income and realized gains (if any) for the SFT Advantus International Bond Fund are generally declared and reinvested in additional shares of capital stock on an annual basis. The SFT Advantus International Bond Fund uses consent dividends in place of regular distributions. The Funds that are structured as a partnership for tax purposes are not required to distribute taxable income, and Funds other than SFT Advantus Government Money Market Fund and SFT Advantus International Bond Fund will not distribute taxable income.
The federal income tax character of distributions paid to shareholders during the fiscal year ended December 31, 2016 was as follows:
Ordinary Income | Long-Term Capital Gain | ||||||||||
SFT Advantus International Bond Fund | $ | — | $ | — |
At December 31, 2016, as a result of permanent book-to-tax difference, the following reclassification adjustments were made on the Statement of Assets and Liabilities:
Paid-in Capital | Undistributed Net Investment Income | Accumulated Net Realized Gain (Loss) | |||||||||||||
SFT Advantus International Bond Fund | $ | (4,076,076 | ) | $ | (7,575,515 | ) | $ | 11,651,591 |
Distributable Earnings
As of December 31, 2016, the components of distributable earnings on a federal income tax basis were:
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Unrealized Appreciation/ (Depreciation) | Post October Capital/ Late Year Ordinary Loss | Capital Loss Carryforward | |||||||||||||||||||
SFT Advantus International Bond Fund | $ | — | $ | 597,647 | $ | (2,748,285 | ) | $ | — | $ | — |
For the year ended December 31, 2016, the following funds are designating the following items with regard to earnings for the year:
Foreign Tax Credit | |||||||
SFT Advantus International Bond Fund | $ | 266,742 |
Securities Purchased on a When-Issued Basis
Delivery and payment for securities which have been purchased or sold 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. As of December 31, 2016, the SFT Advantus Bond Fund and SFT Advantus Mortgage Securities Fund had entered into outstanding, when-issued or forward commitments at fair value of $7,503,397 and $7,612,750, respectively. The Funds have segregated assets to cover such when-issued and forward commitments.
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Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
Money Market Fund Reform
In July 2014, the Securities and Exchange Commission adopted amendments to the rules that govern money market funds ("Rule 2a-7"). In response to the amendments, effective April 29, 2016, the Fund has changed its name to the SFT Advantus Government Money Market Fund and converted to a 'government' money market fund, as defined under Rule 2a-7. As a result, on and after April 29, 2016, the Fund will invest at least 99.5% of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash or government securities), as required by Rule 2a-7. It is expected that the Fund's future total returns will be lower than its historical returns due to the conversion to a government money market fund.
(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, 2016 were as follows:
Non-U.S. Government | U.S. Government* | ||||||||||||||||||
Purchases | Sales | Purchases | Sales | ||||||||||||||||
SFT Advantus Bond Fund | $ | 193,282,659 | $ | 172,782,409 | $ | 736,017,807 | $ | 798,826,382 | |||||||||||
SFT Advantus Dynamic Managed Volatility Fund | 56,464,568 | 2,355,515 | – | 504,547 | |||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | 35,061,703 | 57,712,402 | – | – | |||||||||||||||
SFT Advantus Index 500 Fund | 24,276,098 | 25,557,480 | – | – | |||||||||||||||
SFT Advantus International Bond Fund | 32,654,855 | 42,073,170 | – | – | |||||||||||||||
SFT Advantus Managed Volatility Equity Fund | 165,716,336 | 8,390,263 | – | – | |||||||||||||||
SFT Advantus Mortgage Securities Fund | 10,873,818 | 7,669,685 | 65,816,409 | 71,416,096 | |||||||||||||||
SFT Advantus Real Estate Securities Fund | 115,764,263 | 124,162,451 | – | – | |||||||||||||||
SFT IvySM Growth Fund | 232,472,344 | 273,754,663 | – | – | |||||||||||||||
SFT IvySM Small Cap Growth Fund | 143,144,237 | 161,976,203 | – | – | |||||||||||||||
SFT Pyramis® Core Equity Fund | 105,842,645 | 123,767,145 | – | – | |||||||||||||||
SFT T. Rowe Price Value Fund | 206,595,603 | 225,070,065 | – | – |
* Includes U.S. government-sponsored enterprise securities.
(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 Funds' 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 | |||||||
SFT Advantus Bond Fund | 0.40% of net assets to $1 billion; and 0.35% of net assets exceeding $1 billion | ||||||
SFT Advantus Dynamic Managed Volatility Fund | 0.65% of all assets | ||||||
SFT Advantus Government Money Market Fund | 0.30% of net assets to $1 billion; and 0.25% of net assets exceeding $1 billion | ||||||
SFT Advantus Index 400 Mid-Cap Fund | 0.15% of net assets to $1 billion; and 0.10% of net assets exceeding $1 billion | ||||||
SFT Advantus Index 500 Fund | 0.15% of net assets to $1 billion; and 0.10% of net assets exceeding $1 billion | ||||||
SFT Advantus International Bond Fund | 0.60% of net assets to $1 billion; and 0.55% of net assets exceeding $1 billion |
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Notes to Financial Statements – continued
(4) Expenses and Related Party Transactions – (continued)
Annual Fee on Net Assets | |||||||
SFT Advantus Managed Volatility Equity Fund | 0.65% of all assets | ||||||
SFT Advantus Mortgage Securities Fund | 0.40% of net assets to $1 billion; and 0.35% of net assets exceeding $1 billion | ||||||
SFT Advantus Real Estate Securities Fund | 0.70% of net assets to $1 billion; and 0.65% of net assets exceeding $1 billion | ||||||
SFT IvySM Growth Fund | 0.67% of net assets to $500 million; and 0.625% of next $300 million of net assets; and 0.60% of next $200 million of net assets; and 0.50% of net assets exceeding $1 billion | ||||||
SFT IvySM Small Cap Growth Fund | 0.85% of net assets to $1 billion; and 0.80% of next $2 billion of net assets; and 0.76% of net assets exceeding $3 billion | ||||||
SFT Pyramis® Core Equity Fund | 0.65% of all assets | ||||||
SFT T. Rowe Price Value Fund | 0.67% of net assets to $1 billion; and 0.65% of next $1.5 billion of net assets; and 0.60% of net assets exceeding $2.5 billion |
Advantus Capital has a sub-advisory agreement with Franklin Advisers, Inc. ("Franklin"), a registered investment Advisor for the SFT Advantus International Bond Fund, under which Advantus Capital pays Franklin an annual fee of 0.37% based on average daily net assets.
Advantus Capital has a sub-advisory agreement with Waddell & Reed Investment Management Company ("WRIMCO"), a registered investment Advisor for the SFT IvySM Growth Fund and the SFT IvySM Small Cap Growth Fund, under which Advantus Capital pays WRIMCO an annual fee ranging from 0.33% to 0.55% and 0.40% to 0.82% respectively, based on average daily net assets.
Advantus Capital has a sub-advisory agreement with FIAM, LLC (formerly Pyramis Global Advisors, LLC) ("Pyramis"), a registered investment Advisor for the SFT Pyramis® Core Equity Fund, under which Advantus Capital pays Pyramis an annual fee ranging from 0.31% to 0.33% based on average daily net assets.
Advantus Capital has a sub-advisory agreement with T. Rowe Price Associates, Inc. ("T. Rowe Price"), a registered investment Advisor for the SFT T. Rowe Price Value Fund, under which Advantus Capital pays T. Rowe Price an annual fee ranging from 0.30% to 0.50% 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
The Trust has an agreement with Securian Financial Group under which Securian Financial Group provides accounting, legal and other administrative services. 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 quarterly administrative fees by Fund range from $4,555 to $23,998.
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 2016, these fees ranged from .01% 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, and certain other fees.
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Notes to Financial Statements – continued
(4) Expenses and Related Party Transactions – (continued)
Distribution Fees
The Trust has adopted a Rule 12b-1 Distribution Plan which covers all of its Class 2 shares and its SFT Advantus Dynamic Managed Volatility Fund, SFT Advantus Government Money Market Fund, SFT Advantus Managed Volatility Equity Fund, SFT IvySM Growth Fund, SFT IvySM Small Cap Growth Fund, and SFT T. Rowe Price Value 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 SFT Advantus Government 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 SFT Advantus Government Money Market Fund), Advantus Capital and Securian Financial. Under such Agreement, Advantus Capital agrees to waive, reimburse or pay SFT Advantus Government 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, 2016, the advisory, 12b-1 distribution and other fee waivers totaled $248,863, $207,386 and $73 respectively. These amounts are reflected as fees waived in the accompanying Statement of Operations. As of December 31, 2016, Advantus Capital and Securian Financial have collectively waived a cumulative total of $4,554,722 pursuant to the Agreement, including expenses waived under the prior agreement with Advantus Series Fund, Inc., of which $1,739,443 was eligible for recovery by Advantus Capital and Securian Financial as of such date. Amounts subject to potential recovery for the years ended December 31, 2017 and 2018 are $1,099,516, and $456,322, respectively. 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 April 30, 2018, provided such continuance is specifically approved by a majority of the Trust's independent Trustees.
SFT Advantus Dynamic Managed Volatility Fund Expense Waivers
Advantus Capital and the Trust, on behalf of the SFT Advantus Dynamic Managed Volatility 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 which are capitalized in accordance with GAAP, 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, 2018. 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
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Notes to Financial Statements – continued
(4) Expenses and Related Party Transactions – (continued)
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, 2016, the advisory waivers totaled $465,146. This amount is reflected as fees waived in the accompanying Statement of Operations. As of December 31, 2016, Advantus Capital has waived a cumulative total of $1,304,242 pursuant to the Agreement, of which $1,173,375, was eligible for recovery by Advantus Capital and Securian Financial as of such date. Amounts subject to potential recovery for the years ended December 31, 2017 and 2018 are $864,268 and $465,146 respectively. 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.
SFT Advantus Managed Volatility Equity Fund Expense Waivers
Advantus Capital and the Trust, on behalf of the SFT Advantus Managed Volatility Equity Fund, have entered into an Expense Limitation Agreement, dated November 18, 2015, 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 which are capitalized in accordance with GAAP, 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, 2018. 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, 2016, the advisory waivers totaled $323,512. This amount is reflected as fees waived in the accompanying Statement of Operations. As of December 31, 2016, Advantus Capital has waived a cumulative total of $361,307 pursuant to the Agreement, of which $361,307, was eligible for recovery by Advantus Capital and Securian Financial as of such date. Amounts subject to potential recovery for the years ended December 31, 2017 and 2018 are $361,307 and $323,512 respectively. 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.
Cross-Trades
The Funds are permitted to purchase and sell securities ("cross-trade") from and to other Funds within the Trust as well as outside of the Trust, where both accounts are managed by the same sub-adviser pursuant to "Cross-Trading" procedures adopted by the Trust's Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by a respective Fund from and to another fund that is or could be considered an affiliate of the Funds under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each cross-trade is effected at the current market price to save costs where allowed. The Funds did not engage in cross-trades during the year ended December 31, 2016.
(5) Illiquid Securities
Each Fund currently limits investments in illiquid securities to 15% of net assets at the time of purchase, except for the SFT Advantus Government Money Market Fund which limits its investment in illiquid securities to 5% of net assets. At December 31, 2016, the SFT Advantus Bond Fund, SFT Advantus Dynamic Managed
124
Securian Funds Trust
Notes to Financial Statements – continued
(5) Illiquid Securities – (continued)
Volatility Fund, and SFT Advantus Mortgage Securities Fund held illiquid securities of $6,716,376, $1,434,272, and $1,540,048, respectively, which represent 1.8%, 0.5%, and 1.7% 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, 2016:
Security | Acquisition Date | Cost | |||||||||
SFT Advantus Bond Fund | |||||||||||
Earnest Student Loan Program LLC | 12/07/2016 | $ | 959,790 | ||||||||
Electricite de France SA | 08/09/2016 | 1,850,140 | |||||||||
FAN Engine Securitization, Ltd. | 10/18/2013 | 379,617 | |||||||||
Hometown Commercial Mortgage | Various | 421,173 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | 03/22/2010 | 527,650 | |||||||||
Longtrain Leasing III LLC, 2015 – 1A Class A1 | 01/23/2015 | 1,247,197 | |||||||||
Multi Security Asset Trust | Various | 1,524,855 | |||||||||
$ | 6,910,422 | ||||||||||
SFT Advantus Dynamic Managed Volatility Fund | |||||||||||
Aquarion Co. | 08/19/2014 | $ | 498,314 | ||||||||
Longtrain Leasing III LLC, 2015 – 1A Class A2 | 01/23/2015 | 999,574 | |||||||||
$ | 1,497,888 | ||||||||||
SFT Advantus Mortgage Securities Fund | |||||||||||
FAN Engine Securitization, Ltd. | 10/18/2013 | $ | 101,525 | ||||||||
Government National Mortgage Association (GNMA) | 06/17/2003 | 533,309 | |||||||||
Hometown Commercial Mortgage | 11/28/2006 | 44,307 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | 03/22/2010 | 171,486 | |||||||||
Longtrain Leasing III LLC, 2015 – 1A Class A1 | 01/23/2015 | 276,709 | |||||||||
Multi Security Asset Trust | Various | 978,863 | |||||||||
$ | 2,106,199 |
(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 advisor'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, swaps, and options.
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Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
The following is a summary of the levels used for the year ended December 31, 2016, in valuing the Fund's assets and liabilities (please see the Investments in Securities for each Fund for a listing of all securities within each category):
Fair Value Measurement at December 31, 2016 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT Advantus Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | $ | – | $ | 139,449,228 | $ | – | $ | 139,449,228 | |||||||||||
Asset-Backed Securities | – | 21,190,369 | – | 21,190,369 | |||||||||||||||
Other Mortgage-Backed Securities | – | 19,198,460 | – | 19,198,460 | |||||||||||||||
Corporate Obligations | – | 178,555,014 | – | 178,555,014 | |||||||||||||||
Investment Companies | 17,136,959 | – | – | 17,136,959 | |||||||||||||||
Total Investments | 17,136,959 | 358,393,071 | – | 375,530,030 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 95,137 | – | – | 95,137 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Futures Contracts | (94,715 | ) | – | – | (94,715 | ) | |||||||||||||
SFT Advantus Dynamic Managed Volatility Fund (formerly SFT Advantus Managed Volatility Fund) | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | – | 3,286,641 | – | 3,286,641 | |||||||||||||||
Asset-Backed Securities | – | 934,902 | – | 934,902 | |||||||||||||||
Other Mortgage-Backed Securities | – | 1,016,059 | – | 1,016,059 | |||||||||||||||
Corporate Obligations | – | 92,808,289 | – | 92,808,289 | |||||||||||||||
Purchased Option | 21,393 | – | – | 21,393 | |||||||||||||||
Investment Companies | 182,101,741 | – | – | 182,101,741 | |||||||||||||||
Total Investments | 182,123,134 | 98,045,891 | – | 280,169,025 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 1,508,454 | – | – | 1,508,454 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Written Options | (19,706 | ) | – | – | (19,706 | ) | |||||||||||||
SFT Advantus Government Money Market Fund (formerly SFT Advantus Money Market Fund) | |||||||||||||||||||
Assets | |||||||||||||||||||
U.S. Government Obligations | – | 75,908,759 | – | 75,908,759 | |||||||||||||||
Investment Companies | 2,158,393 | – | – | 2,158,393 | |||||||||||||||
Total Investments | 2,158,393 | 75,908,759 | – | 78,067,152 | |||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 201,735,583 | – | – | 201,735,583 | |||||||||||||||
Investment Companies | 16,308,405 | – | – | 16,308,405 | |||||||||||||||
Total Investments | 218,043,988 | – | – | 218,043,988 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Futures Contracts | (289,325 | ) | – | – | (289,325 | ) |
126
Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Fair Value Measurement at December 31, 2016 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT Advantus Index 500 Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | $ | 729,208,653 | $ | – | $ | – | $ | 729,208,653 | |||||||||||
Investment Companies | 12,999,506 | – | – | 12,999,506 | |||||||||||||||
Total Investments | 742,208,159 | – | – | 742,208,159 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 147,200 | – | – | 147,200 | |||||||||||||||
SFT Advantus International Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Long-Term Debt Securities | – | 58,090,628 | – | 58,090,628 | |||||||||||||||
Short-Term Debt Securities | – | 25,750,499 | – | 25,750,499 | |||||||||||||||
Investment Companies | 20,702,057 | – | – | 20,702,057 | |||||||||||||||
Total Investments | 20,702,057 | 83,841,127 | – | 104,543,184 | |||||||||||||||
Other Financial Instruments* Forward Foreign Currency Contracts | – | 5,707,876 | – | 5,707,876 | |||||||||||||||
Interest Rate Swap Contracts | – | 255,148 | – | 255,148 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Forward Foreign Currency Contracts | – | (1,083,055 | ) | – | (1,083,055 | ) | |||||||||||||
Interest Rate Swap Contracts | – | (550,679 | ) | – | (550,679 | ) | |||||||||||||
SFT Advantus Managed Volatility Equity Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Purchased Option | 350,352 | – | – | 350,352 | |||||||||||||||
Investment Companies | 206,933,710 | – | – | 206,933,710 | |||||||||||||||
Total Investments | 207,284,062 | – | – | 207,284,062 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 289,111 | – | – | 289,111 | |||||||||||||||
SFT Advantus Mortgage Securities Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | – | 74,193,157 | – | 74,193,157 | |||||||||||||||
Asset-Backed Securities | – | 5,130,123 | – | 5,130,123 | |||||||||||||||
Other Mortgage-Backed Securities | – | 6,187,551 | – | 6,187,551 | |||||||||||||||
Corporate Obligations | – | 3,943,221 | – | 3,943,221 | |||||||||||||||
Investment Companies | 9,536,174 | – | – | 9,536,174 | |||||||||||||||
Total Investments | 9,536,174 | 89,454,052 | – | 98,990,226 | |||||||||||||||
SFT Advantus Real Estate Securities Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 142,991,611 | – | – | 142,991,611 | |||||||||||||||
Investment Companies | 3,549,870 | – | – | 3,549,870 | |||||||||||||||
Total Investments | 146,541,481 | – | – | 146,541,481 | |||||||||||||||
SFT IvySM Growth Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 435,389,884 | – | – | 435,389,884 | |||||||||||||||
Investment Companies | 3,502,049 | – | – | 3,502,049 | |||||||||||||||
Total Investments | 438,891,933 | – | – | 438,891,933 |
127
Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Fair Value Measurement at December 31, 2016 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT IvySM Small Cap Growth Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | $ | 156,861,453 | $ | – | $ | – | $ | 156,861,453 | |||||||||||
Investment Companies | 6,700,382 | – | – | 6,700,382 | |||||||||||||||
Total Investments | 163,561,835 | – | – | 163,561,835 | |||||||||||||||
SFT Pyramis® Core Equity Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 112,749,054 | – | – | 112,749,054 | |||||||||||||||
Short-Term Securities | 864,438 | – | – | 864,438 | |||||||||||||||
Total Investments | 113,613,492 | – | – | 113,613,492 | |||||||||||||||
SFT T. Rowe Price Value Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 204,592,777 | – | – | 204,592,777 | |||||||||||||||
Preferred Stock | 829,574 | – | – | 829,574 | |||||||||||||||
Investment Companies | 2,860,743 | – | – | 2,860,743 | |||||||||||||||
Total Investments | 208,283,094 | – | – | 208,283,094 |
* Investments in Other Financial Instruments are derivative instruments reflected in the Investments in Securities. All derivatives currently held, are reflected at the gross unrealized appreciation (depreciation) on the instruments.
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 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.
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Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
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.
Forward Foreign Currency and Interest Rate Swap Contracts – These derivatives are traded in the over-the-counter derivative market and are principally valued using market price quotations or industry recognized modeling techniques. The significant inputs to the models are observable in the market or can be derived from or corroborated by observable market data. These significant inputs may include interest rates, foreign currency exchange rates, interest rate curves, contractual terms, market prices, and measures of volatility.
The Funds' policy is to recognize transfers between the levels as of the end of the year. There were no transfers of financial assets between Levels 1 and 2 during the period.
(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 Investments in Securities. The volume of derivative activity is indicative for all funds with the exception of futures contracts in the SFT Advantus Dynamic Managed Volatility Fund and interest rate swap contracts in the SFT Advantus International Bond Fund. The volume of futures contracts for the SFT Advantus Dynamic Managed Volatility Fund ranged from $15,847,265 to $110,390,900 of base notional value averaging $61,099,303. The volume of interest rate swap contracts for SFT Advantus International Bond Fund ranged from $18,528,000 to $21,868,000 of base notional value averaging $21,200,000.
Equity derivatives were purchased or sold to manage the SFT Advantus 500 and SFT Advantus 400 Mid-Cap Funds' shareholder liquidity and to attempt to replicate intended stock investments to maintain fully invested Funds. Equity index options are utilized by the SFT Advantus Dynamic Managed Volatility Fund and the SFT Advantus Managed Volatility Equity Fund to manage the equity exposure while attempting to reduce the volatility and risk of the Funds.
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 SFT 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, 2016 | Statement of Assets and Liabilities Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus Bond Fund | Futures | $ | 95,137 | Variation margin receivable* | $ | – | $ | 95,137 | $ | – | |||||||||||||||||
Futures | (94,715 | ) | Variation margin payable* | – | (94,715 | ) | – | ||||||||||||||||||||
SFT Advantus Dynamic Managed Volatility Fund | Futures | 1,508,454 | Variation margin receivable* | 1,371,566 | 136,888 | – | |||||||||||||||||||||
Options | (19,706 | ) | Call options written | (19,706 | ) | – | – | ||||||||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | Futures | (289,325 | ) | Variation margin payable* | (289,325 | ) | – | – | |||||||||||||||||||
SFT Advantus Index 500 Fund | Futures | 147,200 | Variation margin receivable* | 147,200 | – | – | |||||||||||||||||||||
SFT Advantus International Bond Fund | Foreign Currency Forwards | 5,707,876 | Unrealized appreciation on forward foreign currency contracts | – | – | 5,707,876 | |||||||||||||||||||||
Foreign Currency Forwards | (1,083,055 | ) | Unrealized depreciation on forward foreign currency contracts | – | – | (1,083,055 | ) | ||||||||||||||||||||
Swaps | 255,148 | Variation margin receivable* | – | 255,148 | – | ||||||||||||||||||||||
Swaps | (550,679 | ) | Variation margin payable* | – | (550,679 | ) | – | ||||||||||||||||||||
SFT Advantus Managed Volatility Equity Fund | Futures | 289,111 | Variation margin receivable* | 289,111 | – | – |
* Includes cumulative appreciation/depreciation of futures contracts and swaps 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 | Realized Gain (Loss) on Derivatives for Period Ended December 31, 2016 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus Bond Fund | Futures | $ | (1,488,050 | ) | Net realized gains (losses) from futures transactions | $ | – | $ | (1,488,050 | ) | $ | – | |||||||||||||||
SFT Advantus Dynamic Managed Volatility Fund | Futures | 898,661 | Net realized gains (losses) from futures transactions | 452,492 | 446,169 | – | |||||||||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | Futures | 2,583,358 | Net realized gains (losses) from futures transactions | 2,583,358 | – | – | |||||||||||||||||||||
SFT Advantus Index 500 Fund | Futures | 1,239,074 | Net realized gains (losses) from futures transactions | 1,239,074 | – | – |
130
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Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
Realized Gain (Loss) on Derivatives Recognized in Income | |||||||||||||||||||||||||||
Fund | Instrument Type | Realized Gain (Loss) on Derivatives for Period Ended December 31, 2016 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus International Bond Fund | Foreign Currency Forwards | $ | (3,683,777 | ) | Net realized gains (losses) from foreign currency transactions | $ | – | $ | – | $ | (3,683,777 | ) | |||||||||||||||
Swaps | (297,118 | ) | Net realized gains (losses) from swaps | – | (297,118 | ) | – | ||||||||||||||||||||
SFT Advantus Managed Volatility Equity Fund | Futures | (1,164,424 | ) | Net realized gains (losses) from futures transactions | (1,164,424 | ) | – | – | |||||||||||||||||||
Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |||||||||||||||||||||||||||
Fund | Instrument Type | Unrealized Appreciation (Depreciation) on Derivatives for Period Ended December 31, 2016 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus Bond Fund | Futures | $ | (37,642 | ) | Net change in unrealized appreciation or depreciation on futures transactions | $ | – | $ | (37,642 | ) | $ | – | |||||||||||||||
SFT Advantus Dynamic Managed Volatility Fund | Futures | 1,512,941 | Net change in unrealized appreciation or depreciation on futures transactions | – | 1,512,941 | – | |||||||||||||||||||||
Purchased Options | (32,016 | ) | Net change in unrealized appreciation or depreciation on purchased options | (32,106 | ) | – | – | ||||||||||||||||||||
Written Options | 34,774 | Net change in unrealized appreciation or depreciation on written options | 34,774 | – | – | ||||||||||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | Futures | (192,001 | ) | Net change in unrealized appreciation or depreciation on futures transactions | (192,001 | ) | – | – | |||||||||||||||||||
SFT Advantus Index 500 Fund | Futures | 67,889 | Net change in unrealized appreciation or depreciation on futures transactions | 67,889 | – | – |
131
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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 | Unrealized Appreciation (Depreciation) on Derivatives for Period Ended December 31, 2016 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus International Bond Fund | Foreign Currency Forwards | $ | 4,019,748 | Net change in unrealized appreciation or depreciation on foreign currency transactions | $ | – | $ | – | $ | 4,019,748 | |||||||||||||||||
Swaps | 253,933 | Net change in unrealized appreciation or depreciation on swaps | – | 253,933 | – | ||||||||||||||||||||||
SFT Advantus Managed Volatility Equity Fund | Futures | 229,307 | Net change in unrealized appreciation or depreciation on futures transactions | 229,307 | – | – | |||||||||||||||||||||
Purchased Options | 135,122 | Net change in unrealized appreciation or depreciation on purchased options | 135,122 | – | – |
Option Contracts Written
Contracts and premium amounts associated with options contracts written by the Fund during the year ended December 31, 2016 are as follows:
Options outstanding at December 31, 2015 | Written | Closed | Exercised | Expired | Options outstanding at December 31, 2016 | ||||||||||||||||||||||
SFT Advantus Dynamic Managed Volatility Fund | |||||||||||||||||||||||||||
Premium Amount | $ | – | $ | 54,479 | $ | – | $ | – | $ | – | $ | 54,479 | |||||||||||||||
Number of Contracts | – | 261 | – | – | – | 261 |
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 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. For the year ended December 31, 2016 none of the Funds derivatives were subject to master netting arrangements.
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Securian Funds Trust
Notes to Financial Statements – continued
(8) Affiliated Ownership
The SFT Advantus Dynamic 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 SFT Advantus Dynamic Managed Volatility Fund because they share the same investment advisor, Advantus Capital, and because they are overseen by the same Board of Trustees. The SFT Advantus Dynamic Managed Volatility Fund will achieve its equity exposure by investing primarily in Class 1 Shares of the SFT 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 SFT Advantus Index 500 Fund for the period ended December 31, 2016 are as follows:
Fund/Underlying Fund | Balance of Shares Held at December 31, 2015 | Gross Additions | Gross Sales | Balance of Shares Held at December 31, 2016 | Value at December 31, 2016 | Realized Gain (Loss) | Distributions Received | ||||||||||||||||||||||||
SFT Advantus Dynamic Managed Volatility Fund |
|
|
|
|
|
|
| ||||||||||||||||||||||||
SFT Advantus Index 500 Fund | 9,914,237 | 4,310,381 | – | 14,224,618 | $ | 124,400,586 | $ | – | $ | – |
(9) Subsequent Events
Management has evaluated subsequent events for the Trust through the date these financial statements have been issued and has concluded there are no events that require disclosure.
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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, 2016 through December 31, 2016. 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 366 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.
Actual Expenses | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
SFT Advantus Bond Fund | $ | 1,000 | $ | 992.00 | 0.49 | % | $ | 2.45 | $ | 990.80 | 0.74 | % | $ | 3.70 | |||||||||||||||||
SFT Advantus Dynamic Managed Volatility Fund | 1,000 | NA | NA | NA | 1,045.40 | 0.80 | % | 4.11 | |||||||||||||||||||||||
SFT Advantus Government Money Market Fund | 1,000 | NA | NA | NA | 1,000.00 | 0.35 | % | 1.76 | |||||||||||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | 1,000 | 1,116.40 | 0.27 | % | 1.44 | 1,115.00 | 0.52 | % | 2.76 | ||||||||||||||||||||||
SFT Advantus Index 500 Fund | 1,000 | 1,077.00 | 0.20 | % | 1.04 | 1,075.70 | 0.45 | % | 2.35 | ||||||||||||||||||||||
SFT Advantus International Bond Fund | 1,000 | 1,048.40 | 1.09 | % | 5.61 | 1,047.10 | 1.34 | % | 6.90 | ||||||||||||||||||||||
SFT Advantus Managed Volatility Equity Fund | 1,000 | NA | NA | NA | 990.00 | 0.80 | % | 4.00 | |||||||||||||||||||||||
SFT Advantus Mortgage Securities Fund | 1,000 | 985.20 | 0.64 | % | 3.19 | 984.00 | 0.89 | % | 4.44 | ||||||||||||||||||||||
SFT Advantus Real Estate Securities Fund | 1,000 | 942.10 | 0.83 | % | 4.05 | 940.90 | 1.08 | % | 5.27 | ||||||||||||||||||||||
SFT IvySM Growth Fund | 1,000 | NA | NA | NA | 1,052.20 | 0.98 | % | 5.06 | |||||||||||||||||||||||
SFT IvySM Small Cap Growth Fund | 1,000 | NA | NA | NA | 1,098.40 | 1.24 | % | 6.54 | |||||||||||||||||||||||
SFT Pyramis® Core Equity Fund | 1,000 | 1,058.10 | 0.81 | % | 4.19 | 1,056.80 | 1.06 | % | 5.48 | ||||||||||||||||||||||
SFT T. Rowe Price Value Fund | 1,000 | NA | NA | NA | 1,084.90 | 1.02 | % | 5.35 |
134
Securian Funds Trust
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.
Hypothetical Expenses | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
SFT Advantus Bond Fund | $ | 1,000 | $ | 1,022.67 | 0.49 | % | $ | 2.49 | $ | 1,021.42 | 0.74 | % | $ | 3.76 | |||||||||||||||||
SFT Advantus Dynamic Managed Volatility Fund | 1,000 | NA | NA | NA | 1,021.11 | 0.80 | % | 4.06 | |||||||||||||||||||||||
SFT Advantus Government Money Market Fund | 1,000 | NA | NA | NA | 1,023.38 | 0.35 | % | 1.78 | |||||||||||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | 1,000 | 1,023.78 | 0.27 | % | 1.37 | 1,022.52 | 0.52 | % | 2.64 | ||||||||||||||||||||||
SFT Advantus Index 500 Fund | 1,000 | 1,024.13 | 0.20 | % | 1.02 | 1,022.87 | 0.45 | % | 2.29 | ||||||||||||||||||||||
SFT Advantus International Bond Fund | 1,000 | 1,019.66 | 1.09 | % | 5.53 | 1,018.40 | 1.34 | % | 6.80 | ||||||||||||||||||||||
SFT Advantus Managed Volatility Equity Fund | 1,000 | NA | NA | NA | 1,021.11 | 0.80 | % | 4.06 | |||||||||||||||||||||||
SFT Advantus Mortgage Securities Fund | 1,000 | 1,021.92 | 0.64 | % | 3.25 | 1,020.66 | 0.89 | % | 4.52 | ||||||||||||||||||||||
SFT Advantus Real Estate Securities Fund | 1,000 | 1,020.96 | 0.83 | % | 4.22 | 1,019.71 | 1.08 | % | 5.48 | ||||||||||||||||||||||
SFT IvySM Growth Fund | 1,000 | NA | NA | NA | 1,020.21 | 0.98 | % | 4.98 | |||||||||||||||||||||||
SFT IvySM Small Cap Growth Fund | 1,000 | NA | NA | NA | 1,018.90 | 1.24 | % | 6.29 | |||||||||||||||||||||||
SFT Pyramis® Core Equity Fund | 1,000 | 1,021.06 | 0.81 | % | 4.12 | 1,019.81 | 1.06 | % | 5.38 | ||||||||||||||||||||||
SFT T. Rowe Price Value Fund | 1,000 | NA | NA | NA | 1,020.01 | 1.02 | % | 5.18 |
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.
135
Securian Funds Trust
Other Information – continued
(unaudited)
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.
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.
136
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.
Position with Trust
Name, Address(1) and Length of Principal Occupation(s)
and Year of Birth, Time Served(2) During Past 5 Years
Independent Trustees
Julie K. Getchell 1954 Trustee since 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; CPA—inactive
Linda L. Henderson 1949 Trustee since 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
William C. Melton 1947 Trustee since 2002
Retired; 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 and Principal Executive Officer
David M. Kuplic 1957 Trustee since 2016 and President since 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
137
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
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
Other Executive Officers(3)
Gary M. Kleist 1959 Vice President and Treasurer since 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 2011
2003 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 1945 Secretary since 1998
Senior Counsel with the law firm of Dorsey & Whitney LLP since January 2016; Partner from 1976 to December 2015
Dorsey & Whitney LLP
50 South Sixth Street
Minneapolis, Minnesota 55402
(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) The years reflect when a person became a director or officer of Advantus Series Fund, the predecessor to the Trust.
(3) Although not a 'corporate' officer of the Trust, Todd L. Spicer, 1978, has served as the Trust's Chief Compliance Officer since September 2016. Mr. Spicer has also served as Vice President and Chief Compliance Officer, Advantus Capital Management, Inc. since September 2016.
138
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 2-2017
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
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PERMIT NO. 1480
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F38897 Rev 2-2017
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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:
2016 |
| 2015 |
| ||
$ | 333,336 |
| $ | 323,628 |
|
(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:
2016 |
| 2015 |
| ||
$ | 0 |
| $ | 8,986 |
|
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:
2016 |
| 2014 |
| ||
$ | 20,000 |
| $ | 4,000 |
|
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:
2016 |
| 2015 |
| ||
$ | 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 (the “Auditor”) for the Trust do not impair the Auditor’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 the Auditor’s independence and audit quality
· Examine and evaluate the safeguards put into place by the Trust and the Auditor to safeguard independence
· Meet semi-annually with the engagement partner of the Auditor
· 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 Trust
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 Auditor directly for the Trust. At least annually the Committee will receive a report from the Auditor of all audit and non-audit services, which were approved during the year.
The engagement of the Auditor for any non-audit service requires the written pre-approval of the Trust’s Treasurer, and all non-audit services performed by the Auditor 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 Trust 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 Auditor 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 of $20,000 or more 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 Auditor 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
· 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 of $20,000 or more 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 Auditor without the prior approval of the 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 Auditor 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 Auditor 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:
2016 |
| 2015 |
| ||
$ | 0 |
| $ | 0 |
|
(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 governance 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: February 17, 2017
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: February 17, 2017