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Securian Funds Trust

Filed: 4 Mar 21, 5:24pm

 

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

 

Securian Funds Trust

(Exact name of registrant as specified in charter)

 

400 Robert Street North

St. Paul, Minnesota 55101-2098

(Address of principal executive offices) (Zip code)

 

Michael P. Boyle, Esq.

400 Robert Street North

St. Paul, Minnesota 55101-2098

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

(651) 665-3500

 

Date of fiscal year end: December 31

Date of reporting period: December 31, 2020

 

 

 

 

ITEM 1. REPORT TO STOCKHOLDERS.

 

Filed herewith.

 

 

 

 

SECURIAN FUNDS TRUST

Offered in Minnesota Life
Insurance Company and
Securian Life Insurance
Company variable products

Annual report

December 31, 2020

SFT Core Bond Fund

SFT Dynamic Managed Volatility Fund

SFT Government Money Market Fund

SFT Index 400 Mid-Cap Fund

SFT Index 500 Fund

SFT International Bond Fund

SFT IvySM Growth Fund

SFT IvySM Small Cap Growth Fund

SFT Managed Volatility Equity Fund

SFT Real Estate Securities Fund

SFT T. Rowe Price Value Fund

SFT Wellington Core Equity Fund



(This page has been left blank intentionally.)



TABLE OF CONTENTS

  

Page No.

 

Letter from the President

  

1

  

Portfolio Manager Reviews

 
SFT Core Bond Fund  

2

  

SFT Dynamic Managed Volatility Fund

  

6

  

SFT Government Money Market Fund

  

11

  

SFT lndex 400 Mid-Cap Fund

  

13

  
SFT lndex 500 Fund  

17

  

SFT lnternational Bond Fund

  

21

  

SFT IvySM Growth Fund

  

26

  

SFT IvySM Small Cap Growth Fund

  

30

  

SFT Managed Volatility Equity Fund

  

34

  

SFT Real Estate Securities Fund

  

39

  

SFT T. Rowe Price Value Fund

  

43

  

SFT Wellington Core Equity Fund

  

47

  

Report of Independent Registered Public Accounting Firm

  

51

  

Investments In Securities

 
SFT Core Bond Fund  

52

  

SFT Dynamic Managed Volatility Fund

  

61

  

SFT Government Money Market Fund

  

68

  

SFT lndex 400 Mid-Cap Fund

  

69

  
SFT lndex 500 Fund  

76

  

SFT lnternational Bond Fund

  

84

  

SFT IvySM Growth Fund

  

90

  

SFT IvySM Small Cap Growth Fund

  

92

  

SFT Managed Volatility Equity Fund

  

94

  

SFT Real Estate Securities Fund

  

95

  

SFT T. Rowe Price Value Fund

  

97

  

SFT Wellington Core Equity Fund

  

100

  

Financial Statements

 

Statements of Assets and Liabilities

  

102

  

Statements of Operations

  

104

  

Statements of Changes in Net Assets

  

106

  

Financial Highlights

  

111

  

Notes to Financial Statements

  

123

  

Fund Expense Examples

  

141

  

Proxy Voting and Quarterly Holdings Information

  

143

  

Statement Regarding Liquidity Risk Management Program

  

144

 

Trustees and Executive Officers

  

145

  


Letter from the President

2020 was a year most of us will not soon forget. While starting the year off on solid footing, the pandemic soon changed many aspects of our lives and led to a pronounced drop-off in employment, economic growth, and the markets overall. As the pandemic spread, many industries were forced to close or to make significant changes to their business models. This led to broad layoffs in the service sector, in particular in industries such as travel, hospitality, and leisure. The markets reacted as expected and we experienced a broad correction in the equity markets as well as in the credit sensitive fixed income markets during the first half of the year.

This market correction, however, remained short lived. As we progressed through the year, people and businesses learned to cope with the pandemic. Many changes that might have taken a decade to evolve, occurred seemingly overnight. The broad movement and acceptance of working from home, of remote education, and the use of telemedicine are just a few of the ways we adapted. This ingenuity restored many of our jobs, strengthened our economic growth, and led to a strong market recovery. Bold Federal Reserve actions to provide ample liquidity and credit support to the markets, the multi trillion-dollar stimulus packages passed by Congress, and the encouragement provided by enhanced COVID-19 testing and news of a vaccine all contributed to the recovery.

These actions culminated with exceptional market returns across most major asset classes. The S&P 500® ended the year up 18.40 percent, with the Russell 2000 up an even stronger 19.96 percent. Technology stocks were in a league of their own with the Nasdaq up over 45 percent. Fixed income returns were solid with the Bloomberg Barclays U.S. Aggregate Bond Index up 7.51 percent.

As we look forward to 2021, we are encouraged by the prospects of the roll out of vaccinations, putting much of our economic shutdown behind. We expect, however, this could be a bumpy path as many complications need to be worked through. We also anticipate that many of the recent lessons learned will lead to lasting improvements in the way many organizations work and provide services as new business models emerge. This optimism leads us to believe that our economic future remains bright and that market returns will continue to remain positive. As always, we believe the best investment tactic is to position for the long-term and seek diversification to help reduce risk of a downside surprise.

Sincerely,

David Kuplic
President, Securian Funds Trust


1



SFT Core Bond Fund

Thomas Houghton, CFA, Daniel Henken, CFA and Lena Harhaj, CFA Portfolio Managers

Fund Objective

The SFT Core 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 Core 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 Core Bond Fund may fluctuate in response to changes in interest rates and is not guaranteed.

Performance Update

The Fund's Class 2 shares generated a total net return of 6.88 percent over the 12 months ending December 31, 2020, underperforming the Bloomberg Barclays U.S. Aggregate Bond Index which returned 7.51 percent over the same period.

What influenced the Fund's return during the past 12 months?

Investors looked through near term weakness to bid up lagging asset classes during the fourth quarter of 2020, resulting in winners all around. The final quarter provided clarity in the U.S. election, another COVID-19 relief package, and news of several effective vaccines, and all boosted confidence that 2021 would see a return to normal. For the past 12 months, almost all major asset classes ended in strongly positive territory.

Credit markets finished the year on a high note. In the fourth quarter, investment grade and high yield corporates tightened 40 basis points (bps) and 161 bps, respectively, producing excess returns of 4.11 percent and 6.69 percent, respectively. Fixed income returns were solid on the year with the Bloomberg Barclays U.S. Aggregate Bond Index up 7.51 percent.

Despite the strong positive momentum, equity markets continue to price in stubbornly high volatility. While inflation expectations have perked up, interest rates remain at historically low levels. The Federal Reserve's (Fed) intentions are clear—rates are to remain anchored near zero until inflation takes hold. The Fed remains committed to maintaining an aggressive pace of asset purchases, even as its balance sheet has grown by over $3.2 trillion since the end of February 2020.

What other market conditions or events influenced the Fund's performance during the past 12 months?

Credit's fourth quarter rally propelled high yield and investment grade corporates to record low yields, resulting in positive excess returns over comparable U.S. Treasury securities for the full year, despite starting the year with the worst quarter ever recorded for corporate bond performance.

What strategies and techniques did you employ that specifically affected Fund performance?

The decision to overweight corporates, particularly industrials and utilities, as well as agency credit risk-transfer securities resulted in a strong positive excess return in 2020. Security selection was a detractor in 2020 as we have been very cautious on adding high yield, crossover credit, or higher beta investment grade holdings to the portfolio. We have favored holdings that we feel are durable in a choppy economic recovery and exhibit more stable credit fundamentals. Recent security selection results have been encouraging as the market normalizes and liquidity has returned to off the run sectors. Consistent with our philosophy, overall duration did not exhibit


2



material differences from the Fund's benchmark in 2020 and interest rate positioning contributed very little to performance relative to the benchmark.

What will affect the Fund going forward?

While COVID-19 continues to take a real toll, the return to normal is likely to be far more robust than in previous recoveries. Unlike most recessions, the pandemic was an exogenous event. Quick regulatory approvals and an imminent vaccine rollout were game changers, lifting a cloud of uncertainty and unleashing animal spirits.

While a strong rebound is likely, in our view we're not going to return to the old normal. The pandemic accelerated trends that were already in place and focused an unflinching spotlight on imbalances and sectors with weak value propositions. Work from home appears to be here to stay, and demand for office space and business travel may take years to recover. Brick-and-mortar retail may never be the same with the ramped up online environment and delivery services. We expect that new business models will emerge, and some sectors could experience a painful transition as investment and infrastructure align in new ways, while other businesses benefit as supply chains realign.

Although markets seem fully priced and even overvalued by normal standards, we believe the stage is set for good economic growth in the coming year. We expect the current slowdown to be short-lived, and ample liquidity remains a strong support. Despite the recent rise in rates and inflation expectations, we do not believe interest rates are set to rise dramatically from current levels. The world's developed economies are awash in savings and have plenty of labor slack, and their respective central banks are determined to keep rising rates from choking off nascent economic growth.


3



Ten Largest Holdings^

Security description Market
value
 % of net
assets
 

U.S. Treasury Bond 1.250%, 05/15/50

 

$

10,119,676

   

2.0

%

 

U.S. Treasury Note 0.250%, 05/31/25

  

7,667,296

   

1.5

%

 

U.S. Treasury Bond 5.375%, 02/15/31

  

7,353,212

   

1.5

%

 

Invitation Homes 2018-SFR4 Trust, 1.553%, 01/17/38

  

5,049,998

   

1.0

%

 

U.S. Treasury Note 0.625%, 11/30/27

  

5,049,211

   

1.0

%

 

U.S. Treasury Note 0.500%, 05/31/27

  

5,002,352

   

1.0

%

 

Bank of America Corp., 3.974%, 02/07/30

  

4,758,442

   

1.0

%

 

Eagle RE 2020-1 Ltd., 1.598%, 01/25/30

  

4,664,641

   

0.9

%

 

Wells Fargo & Co 2.393%, 06/02/28

  

4,391,566

   

0.9

%

 

Federal Home Loan Mortgage Corporation 3.598%, 10/25/29

  

4,131,146

   

0.8

%

 
  

$

58,187,540

   

11.6

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)

Asset Quality (shown as a percentage of investments) (Unaudited)

Ratings are obtained from Standard & Poor's, Moody's and Fitch. If only one rating is available for a security, that rating is used. A weighted average is used for holdings where more than one of the agencies have assigned a rating. Securian Asset Management provides ratings for securities that are not assigned a rating by the agencies.


4



  Comparison of Change in Investment Value*
  A Hypothetical $10,000 Investment in SFT Core Bond Fund,
  Bloomberg Barclays U.S. Aggregate Bond Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT Core 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, 2010 through December 31, 2020, 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



SFT Dynamic Managed Volatility Fund

Craig M. Stapleton, CFA, FRM, Jeremy Gogos, Ph.D., CFA and Merlin Erickson Portfolio Managers

Fund Objective

The SFT 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 Barclays U.S. Aggregate Bond Index (collectively, the Blended Benchmark Index). The SFT Dynamic Managed Volatility Fund invests primarily in Class 1 shares of the SFT Index 500 Fund for equity exposure, in a basket of fixed income securities for fixed income exposure and certain derivative instruments. The Fund is subject to risks associated with such investments as described in detail in the Fund's 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.

Performance Update

The Fund generated a total net return of 10.67 percent, with a volatility of 12.11 percent, over the 12 months ending December 31, 2020. 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 14.73 percent with a volatility of 20.21 percent, over the same period.

What influenced the Fund's return during the past 12 months?

Equity volatility is what guides the asset allocation of this strategy. When equity volatility is low, the equity exposure of this strategy will be high. Conversely, when equity volatility is high, the equity exposure of this strategy will be low. Clearly, in 2020, the COVID-19 virus was the predominant driver of market volatility.

The S&P 500® realized 34.43 percent volatility for 2020, the sixth highest calendar-year volatility in the index's 93-year history. 2008 is the only year in the modern era more volatile (40.97 percent realized volatility). All other higher years occurred in the 1920s and 1930s. Realized one-month volatility began 2020 quite low, entering the year at 6.90 percent. As such, the Fund's equity exposure was at 80.28 percent. In early February, as the market began to appreciate how truly disruptive COVID-19 could be, volatility began to escalate. From 02/03/2020 through 03/16/2020, the Fund was steadily de-risked from 80.04 percent to 19.38 percent equity exposure. This reduction in equity exposure was concurrent with one-month volatility increasing from 11.80 percent to 79.66 percent over the same time period. This volatility peaked on 03/27/2020, at 97.12 percent, but stayed above 40 percent through the end of April. Indeed, the Fund did not begin adding back equity exposure in earnest until mid-May, and volatility did not drop enough for the Fund to get to "neutral" weight—i.e. 60 percent exposure—until early August. September and October also saw brief periods of volatility rising to the mid 20 percent range, and as a result the Fund was underweight equity for most of Q3 and Q4. One-month volatility closed out 2020 at 8.3 percent, and the Fund finished 2020 with 56.62 percent linear S&P exposure, approximately 15.00 percent exposure in long S&P 500® call options, and approximately 1.30 percent exposure in long Chicago Board of Options Exchange (CBOE) Volatility Index (VIX) puts.

All told, the Fund's average equity exposure for 2020 was 46.32 percent, which contributed 8.10 percent to the overall Fund return on a net basis. The benchmark equity component contributed 11.56 percent to the Blended Benchmark Index return. The Fund's fixed income and cash assets averaged 53.68 percent weight for the year, and contributed 2.57 percent to the overall Fund return on a net basis. The benchmark fixed income component delivered 3.17 percent to the Blended Benchmark Index return.


6



What other market conditions or events influenced the Fund's performance during the past 12 months?

Following are just some of the financial extremes witnessed in 2020:

•  March 2020 saw a realized volatility of 93.42 percent, the most volatile month ever in the S&P 500® history.

•  The CBOE VIX set a new closing record of 82.7 on 03/16/2020.

•  The 33.92 percent drawdown from 02/20/2020 through 03/23/2020 was the ninth-largest S&P loss ever in 23 business days, and all other such periods that surpassed it were in 1929 and 1931.

•  Similarly, over the next 103 days, the S&P 500® rallied 51.50 percent, surpassing its pre-COVID-19 high. The speed of this rally is also unmatched in the last 87 years; only periods from 1932 and 1933 saw a larger S&P 500® price appreciation in the same number of business days.

•  The highest single-week Initial Jobless Claims (IJC) number during the Great Financial Crisis (GFC) was 665,000; during the week of 03/20/2020, the IJC number jumped from 282,000 to 3,307,000, and experienced forty-one continuous weeks of prints above the GFC peak.

•  The US 10-year Treasury rate set a new record low of 0.51 percent on 08/04/2020.

•  Second quarter of 2020 saw the largest quarter-over-quarter US Gross Domestic Product (GDP) contraction in history -31.40 percent.

In addition to these "top-level" anomalies, there were other very troubling developments underneath:

•  The well-known concentration of S&P 500® market cap in tech names was not helped by Tesla joining the index. As of year end, 24.86 percent of the S&P 500® market cap was concentrated in Apple, Amazon, Facebook, Alphabet (Google), Microsoft, Tesla, and Netflix. Also of note, Tesla saw a 743 percent return for 2020.

•  The best-performing S&P 500® sector in 2020 was Information Technology. The worst-performing sector was Energy. The performance gap between the two was the largest on record, going back to 2002. COVID-19 created an environment where industries that benefit from "work from home" (delivery retail, tech, etc.) were handed outlandish returns, and most other real-economy sectors were punished.

•  The Growth and Value sub-indexes of the S&P 500® tell a similar story. The outperformance of Growth over Value in 2020 is the largest on record back to 1994. The next largest Growth-Value gap was in 1998, leading up to the DotCom bubble.

•  The current projection for S&P 500® earnings growth year-over-year for the fourth quarter 2020 is 8.8 percent; yet the S&P 500® closed 2020 at a new all-time high.

We continue to view the equity markets as generally overvalued, and the absurd performance of the top equity sectors and names as liquidity fueled mania. To that end, consider the peak-to-trough performance of both the Fund and the Fund's benchmark through the COVID-19 panic. The Fund achieved its goal of mitigating severe drawdowns. However, with the Federal Reserve unexpectedly cutting its target policy rate to 0.0 percent (03/13/2020) and pledging to inject trillions of short-term liquidity into the financial system, and the roughly $2 trillion CARES Act passing on 03/27/2020, any asset allocation that involved being underweight equity was a losing proposition. This underweight was the driver of the Fund's underperformance in 2020.

What strategies and techniques did you employ that specifically affected Fund performance?

Throughout the year, the Fund held a core long position in cash equity that tracks the S&P 500®. In addition, the Fund had long and short positions in S&P 500® futures, long and short S&P 500® call options, long and short S&P 500® put options, long and short CBOE VIX call options, and long and short VIX put options. These derivative positions were held either as expressions of the target equity allocation of the Fund given prevailing volatility, or as supplemental hedges for managing the Fund's risk.


7



What will affect the Fund going forward?

We expect worse-than-average returns, and higher volatility, for domestic risk markets on a go-forward basis. Equity indexes continue to make new highs, while most fundamental valuation metrics suggest the equity market is quite overvalued, and S&P 500® earnings have declined year-over-year for 7 of the last 8 quarters. Both investment grade and high yield corporate credit yields are near their historic lows, while domestic corporate debt outstanding hit another new record in 2020. Multiple indications of inflation expectations have steadily risen since early 2020.

In short, up to this point, the monetary and fiscal tsunami unleashed upon the markets has been the primary driver of the returns seen since the COVID-19 market nadir. In our view, it seems plausible that the market has finally reached the point where central bank liquidity can no longer be injected without stoking fears of inflation. Further, every major central bank is now at their logical policy limit: short-term rates pinned at zero, and aggressive asset purchases to support markets.

Some market observers find justification for bullish sentiment in the COVID-19 vaccine release, and the promise of societal dynamics returning to normal. But in response, we pose the following simple logical question: if the market was impervious to the sectors worst affected by COVID-19 struggling mightily for the better part of a year, should the market see material gains as a result of those sectors returning to normal operation?

Given the present situation of extremely accommodative monetary policy, and probable further fiscal stimulus from the newly-elected Democratic federal government, we view the risk of a major equity selloff as reduced. But again, we are hard-pressed to see the case for material risk asset gains in 2021. And, perhaps more importantly, given the current central bank positioning, the—in our view—absolutely irresponsible federal debt and deficit, and the already staggering level of federal stimulus, we see the entire market as extremely vulnerable to an exogenous shock.

In a tactical sense, we will continue to use our volatility metrics to inform the equity allocations of the Fund. We will increase equity exposure if we believe volatility will decrease, decrease equity exposure if we believe volatility will increase, and in the event that we are overweight equity, we will carry some form of tail risk hedge for the foreseeable future.


8



Ten Largest Holdings^

Security description Market
value
 % of net
assets
 

U.S. Treasury Note, 2.625%, 12/15/21

 

$

15,356,836

   

2.3

%

 

SPDR S&P 500 ETF Trust

  

13,523,240

   

2.0

%

 

Vanguard S&P 500 ETF

  

6,933,946

   

1.0

%

 

iShares iBoxx $ Investment Grade Corporate Bond ETF

  

6,146,785

   

0.9

%

 

Regions Financial Corp., 3.800%, 08/14/23

  

2,169,609

   

0.3

%

 

Raytheon Technologies Corp. 4.125%, 11/16/28

  

1,788,245

   

0.3

%

 

Pine Street Trust I, 4.572%, 02/15/29

  

1,778,290

   

0.3

%

 

Welltower, Inc., 4.125%, 03/15/29

  

1,749,862

   

0.3

%

 

Southern Natural Gas Co. LLC, 4.800%, 03/15/47

  

1,744,424

   

0.3

%

 

Bank 2019-BNK18, 3.584%, 05/15/62

  

1,736,682

   

0.3

%

 
  

$

52,927,919

   

8.0

%

 

^Does not include short-term investments or investments in Class 1 shares of the SFT Index 500 Fund, an affiliated Fund in Securian Funds Trust, which provides the SFT 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 fixed income investments) (Unaudited)

Ratings are obtained from Standard & Poor's, Moody's and Fitch. If only one rating is available for a security, that rating is used. A weighted average is used for holdings where more than one of the agencies have assigned a rating. Securian Asset Management provides ratings for securities that are not assigned a rating by the agencies.


9



  Comparison of Change in Investment Value*
  A Hypothetical $10,000 Investment in SFT Dynamic Managed Volatility Fund,
  the Blended Benchmark Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT Dynamic Managed Volatility Fund's shares total return compared to its Blended Benchmark Index, 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 three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2013 through December 31, 2020, 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.

Securian Asset Management, Inc. (Securian AM) and the Securian Funds Trust, on behalf of the SFT 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, 2021. The Agreement renews annually for a full year each year thereafter unless terminated by Securian AM upon at least 30 days' notice prior to the end of a contract term. The Fund is authorized to reimburse Securian AM for management fees previously waived and/or for the cost of expenses previously paid by Securian AM 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 Securian AM in this manner only applies to fees waived or reimbursements made by Securian AM within the three fiscal years prior to the date of such reimbursement. To the extent that the Fund makes such reimbursements to Securian AM, 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.


10



SFT Government Money Market Fund

Thomas Houghton, CFA and Lena Harhaj, CFA Portfolio Managers

Fund Objective

The SFT Government Money Market Fund seeks maximum current income to the extent consistent with liquidity and the preservation of capital. The Fund invests at least 99.5 percent of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash or government securities). Investment in the SFT 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.

Performance Update

The Fund generated a total net return of 0.21 percent over the 12 months ending December 31, 2020, underperforming the three-month Treasury Bill which returned 0.67 percent over the same period.

What influenced the Fund's return during the past 12 months?

The U.S. Treasury yield curve followed the decline in the Federal Funds Rate at the beginning of the year. Rates in the front end of the curve finished the year down 140-150 basis points.

What strategies and techniques did you employ that specifically affected Fund performance?

The Fund continues to pick up incremental yield versus U.S. Treasury Bills by purchasing short dated Agency Discount Notes.

What will affect the Fund going forward?

While COVID-19 continues to take a real toll, the return to normal is likely to be far more robust than in previous recoveries. Unlike most recessions, the pandemic was an exogenous event. Quick regulatory approvals and an imminent vaccine rollout were game changers, lifting a cloud of uncertainty and unleashing animal spirits.

Although markets seem fully priced and even overvalued by normal standards, we believe the stage is set for good economic growth in the coming year. We expect the current slowdown to be short-lived, and ample liquidity remains a strong support. Despite the recent rise in rates and inflation expectations, we do not believe interest rates are set to rise dramatically from current levels. The world's developed economies are awash in savings and have plenty of labor slack, and their respective central banks are determined to keep rising rates from choking off nascent economic growth.


11



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 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.

The Bloomberg Barclays U.S. Treasury Bill 1-3 Month Index is a market value-weighted index of investment-grade fixed-rate public obligations of the U.S. Treasury with maturities of three months, excluding zero coupons.

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 Government Money Market Fund), Securian Asset Management, Inc. (Securian AM) 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, Securian AM agrees to waive, reimburse or pay SFT 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. Securian AM 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 Securian AM 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 Securian AM 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%. If Securian AM 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, 2021, and shall continue in effect thereafter, provided such continuance is specifically approved by Securian AM, Securian Financial, and a majority of the Trust's independent Trustees.

Effective November 1, 2017, Securian AM and Securian Funds Trust, on behalf of the SFT Government Money Market Fund, entered into an Expense Limitation Agreement 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 Funds' business), to 0.70% of the Fund's Average daily net assets through April 30, 2021.

The Agreement renews annually for a full year each year thereafter unless terminated by Securian AM upon at least 30 days' notice prior to the end of the contract term. The Fund is authorized to reimburse Securian AM for management fees previously waived and/or for the cost of expenses previously paid by Securian AM pursuant to this agreement, provided that such reimbursement will not cause any Fund to exceed any limits in effect at the time of such reimbursement.

The Fund's ability to reimburse Securian AM in this manner only applies to fees waived or reimbursements made by Securian AM within the three fiscal years prior to the date of such reimbursement. To the extent that the Fund makes such reimbursements to Securian AM, the amount of the reimbursements will be reflected in the financial statements in the Funds' shareholder reports and in Other Expenses under Fees and Expenses of the Fund in the prospectus.


12



SFT Index 400 Mid-Cap Fund

James Seifert
Portfolio Manager

Fund Objective

The SFT 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 MidCap 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 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 MidCap 400®, and the risk of declines in the market for mid-cap stocks or in the equity markets generally.

Performance Update

The Fund's Class 2 shares generated a total net return of 13.06 percent over the 12 months ending December 31, 2020; the S&P MidCap 400® Index returned 13.66 percent over the same period.

What influenced the Fund's return during the past 12 months?

The SFT 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®.

Six of the nine sectors posted positive annual returns. The consumer non-durables sector led all sectors with a 12 month return of 36.3 percent. Technology names followed with an annual return of 32.6 percent. Energy, utility and finance sectors detracted from performance with returns of -37.1 percent, -9.7 percent and -5.9 percent, respectively. In terms of size, decile 1, (decile segments consist of 40 names) consisting of the largest of the mid-cap index and representing 20.6 percent of the weight in the index, ended the period with a return of 18.7 percent. Decile ten, representing the 40 smallest market cap names, ended the year with a return of 48.1 percent.

What other market conditions or events influenced the Fund's performance during the past 12 months?

Lower political uncertainty, another COVID-19 relief package, and news of a number of effective vaccines boosted confidence that 2021 would see a return to normal. Investors looked through near term weakness to bid up lagging asset classes, resulting in winners all around in the fourth quarter. For the full year, almost all major asset classes ended the year strongly. COVID-19 continues to weigh on real estate performance, and commodities also lagged, posting negative returns for the year. Despite the strong positive momentum, equity markets continue to price in stubbornly high volatility. While inflation expectations have perked up, rates remain at historically low levels with even the 30-year bond yielding only 1.65 percent at the end of the year.

Despite what is still the worst economic contraction in decades with consensus growth in real GDP of -3.5 percent for the year, it could have been far worse. When signs that the economy was stalling emerged in fourth quarter, Congress stepped up once again. While it remains the worst of times for more than 10 million workers who are still unemployed, aggregate personal income is higher than a year ago, a far different result than in previous shocks.

Fiscal transfers and a lack of spending opportunities not only provided needed aid but increased the savings rate. Substantial pent up demand is the backdrop for a vaccine-driven return to normal next year. Investors are not the only people looking through to a normalizing economy. Manufacturing, both in the U.S. and globally, returned to expansion territory at the end of the second quarter in 2020.


13



What will affect the Fund going forward?

While a strong rebound is likely, in our view we're not going to return to the old normal. The pandemic accelerated trends that were already in place and focused an unflinching spotlight on imbalances and sectors with weak value propositions. Work from home appears to be here to stay, and demand for office space and business travel may take years to recover. Bricks and mortar retail will never be the same. Financial services companies need to compete in a low return world, at least for now. Higher education will have to demonstrate a better value proposition for on-campus learning. The cat's out of the bag as more patients opt for telemedicine over in-person visits.

We believe new business models will emerge, and some sectors could experience a painful transition as investment and infrastructure align in new ways, while other businesses benefit as supply chains realign. Even well-performing companies will feel pressure to leverage technology to increase efficiency and scale. These changes are likely to continue to provide investment opportunities.

The pandemic bared the reality of unequal impacts with low wage, service workers suffering the most. At the same time, the "haves" have more flexibility than ever before. Low tax states with a strong quality of life are drawing attractive businesses, which sets the stage for tension between needed rebalancing and tax policy. Populism and political division are most likely here to stay.

On the bright side, the economy has been surprisingly resilient, and strong growth will likely ease the transition. While markets seem fully priced and even overvalued by normal standards, the stage is set for good economic growth in the coming year. We expect the current slowdown to be short-lived, and ample liquidity remains a strong support. However, with markets fully valued and rates at rock bottom, we believe now is a good time maintain investment discipline.


14



Ten Largest Holdings^

Security description Market
value
 % of net
Assets
 

Enphase Energy, Inc.

 

$

2,101,253

   

1.0

%

 

Trimble, Inc.

  

1,583,451

   

0.8

%

 

SolarEdge Technologies, Inc.

  

1,553,157

   

0.8

%

 

Caesars Entertainment, Inc.

  

1,466,313

   

0.7

%

 

Monolithic Power Systems, Inc.

  

1,464,920

   

0.7

%

 

Fair Isaac Corp.

  

1,439,600

   

0.7

%

 

Generac Holdings, Inc.

  

1,354,681

   

0.7

%

 

Cognex Corp.

  

1,329,038

   

0.7

%

 

Ceridian HCM Holding, Inc.

  

1,313,778

   

0.6

%

 

Masimo Corp.

  

1,288,492

   

0.6

%

 
  

$

14,894,683

   

7.3

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


15



  Comparison of Change in Investment Value*
  A Hypothetical $10,000 Investment in SFT Index 400 Mid-Cap Fund,
  S&P MidCap 400
® Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT 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, 2010 through December 31, 2020, 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 MidCap 400® provides investors with a benchmark for mid-sized companies. The index, which is distinct from the large-cap S&P 500®, is designed to measure the performance of 400 mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment.

"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 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.


16



SFT Index 500 Fund

James Seifert
Portfolio Manager

Fund Objective

The SFT 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 500® 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 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.

Performance Update

The Fund's Class 2 shares generated a total net return of 17.91 percent over the 12 months ending December 31, 2020; the S&P 500® Index returned 18.40 percent over the same period.

What influenced the Fund's return during the past 12 months?

The SFT 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®.

Seven of the nine sectors posted positive annual returns. The technology sector led all sectors with a 12 month return of 38 percent. Materials and services names followed with an annual return of 26.8 percent. Energy and Utilities sectors detracted from performance with returns of -33.4 percent and -1.9 percent, respectively. In terms of size, decile 1, (decile segments consist of 50 names) consisting of the mega-cap names and representing 51.4 percent of the weight in the index, ended the period with a return of 23.7 percent. All other decile groups ended the year with positive returns.

What other market conditions or events influenced the Fund's performance during the past 12 months?

Lower political uncertainty, another COVID-19 relief package, and news of a number of effective vaccines boosted confidence that 2021 would see a return to normal. Investors looked through near term weakness to bid up lagging asset classes, resulting in winners all around in the fourth quarter. For the full year, almost all major asset classes ended the year strongly. COVID-19 continues to weigh on real estate performance, and commodities also lagged, posting negative returns for the year. Despite the strong positive momentum, equity markets continue to price in stubbornly high volatility. While inflation expectations have perked up, rates remain at historically low levels with even the 30-year bond yielding only 1.65 percent at the end of the year.

Despite what is still the worst economic contraction in decades with consensus growth in real GDP of -3.5 percent for the year, it could have been far worse. When signs that the economy was stalling emerged in fourth quarter, Congress stepped up once again. While it remains the worst of times for more than 10 million workers who are still unemployed, aggregate personal income is higher than a year ago, a far different result than in previous shocks.

Fiscal transfers and a lack of spending opportunities not only provided needed aid but increased the savings rate. Substantial pent up demand is the backdrop for a vaccine-driven return to normal next year. Investors are not the only people looking through to a normalizing economy. Manufacturing, both in the U.S. and globally, returned to expansion territory at the end of the second quarter in 2020.


17



What will affect the Fund going forward?

While a strong rebound is likely, in our view we're not going to return to the old normal. The pandemic accelerated trends that were already in place and focused an unflinching spotlight on imbalances and sectors with weak value propositions. Work from home appears to be here to stay, and demand for office space and business travel may take years to recover. Bricks and mortar retail will never be the same. Financial services companies need to compete in a low return world, at least for now. Higher education will have to demonstrate a better value proposition for on-campus learning. The cat's out of the bag as more patients opt for telemedicine over in-person visits.

We believe new business models will emerge, and some sectors could experience a painful transition as investment and infrastructure align in new ways, while other businesses benefit as supply chains realign. Even well-performing companies will feel pressure to leverage technology to increase efficiency and scale. These changes are likely to continue to provide investment opportunities.

The pandemic bared the reality of unequal impacts with low wage, service workers suffering the most. At the same time, the "haves" have more flexibility than ever before. Low tax states with a strong quality of life are drawing attractive businesses, which sets the stage for tension between needed rebalancing and tax policy. Populism and political division are most likely here to stay.

On the bright side, the economy has been surprisingly resilient, and strong growth will likely ease the transition. While markets seem fully priced and even overvalued by normal standards, the stage is set for good economic growth in the coming year. We expect the current slowdown to be short-lived, and ample liquidity remains a strong support. However, with markets fully valued and rates at rock bottom, we believe now is a good time maintain investment discipline.


18



Ten Largest Holdings^

Security description Market
value
 % of total
net assets
 

Apple, Inc.

 

$

65,947,461

   

6.6

%

 

Microsoft Corp.

  

52,295,168

   

5.2

%

 

Amazon.com, Inc.

  

43,199,920

   

4.3

%

 

Facebook, Inc.—Class A

  

20,421,168

   

2.0

%

 

Tesla, Inc.

  

16,641,816

   

1.7

%

 

Alphabet, Inc.—Class A

  

16,387,184

   

1.6

%

 

Alphabet, Inc.—Class C

  

15,815,973

   

1.6

%

 

Berkshire Hathaway, Inc.—Class B

  

14,033,004

   

1.4

%

 

Johnson & Johnson

  

12,884,229

   

1.3

%

 

JPMorgan Chase & Co.

  

12,045,474

   

1.2

%

 
  

$

269,671,397

   

26.9

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


19



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Index 500 Fund,
S&P 500
® Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT 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, 2010 through December 31, 2020, 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.

"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 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.


20



SFT International Bond Fund

Michael Hasenstab, Ph.D. and Christine Zhu
Portfolio Managers Franklin Advisers, Inc.

Fund Objective

The SFT 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 Securian Asset Management, Inc. acts as the investment adviser for the Fund, Franklin Advisers, Inc. provides investment advice to the SFT 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.

Performance Update

The Fund generated a total net return of -6.36 percent over the 12 months ended December 31, 2020, underperforming the FTSE World Government Bond Index, which returned 10.11 percent over the same period.

What influenced the Fund's return during the past 12 months?

In calendar year 2020, the Fund's relative underperformance was primarily due to currency positions, followed by interest-rate strategies. Sovereign credit exposures had a largely neutral effect on relative results.

In currency markets, the US dollar (USD) initially strengthened in March on tremendous demand for US dollars during the financial market shocks, but then entered a broad-based weakening pattern in mid-May that largely persisted through the end December. The Fund's underweighted positions in the euro, the Australian dollar and the Mexican peso detracted from relative performance. We continued to hold long exposure in the USD against a net-negative position in the euro, as we expect the euro to weaken against the USD on negative rates in the eurozone and comparatively greater headwinds to growth and reflation efforts across Europe. We also held a net-negative position in the Australian dollar to hedge emerging market beta risks during much of the period, but reduced the position in December, as part of our tactical rotation into areas of risk and value in Asia.

Overweighted currency positions in Latin America (the Brazilian real and Argentine peso) and Asia ex Japan (the Indonesian rupiah) also detracted from relative results. However, overweighted positions in northern European currencies (the Swedish krona and Norwegian krone) contributed to relative performance, as did the Fund's overweighted positions in the Japanese yen.

Developed market sovereign bond yields fluctuated during the summer months, rising on reflation expectations but dropping in September as broad risk aversion returned to global financial markets. Sovereign bond yields also declined in several countries on ongoing monetary accommodation during the year, notably including much of Latin America and Asia, particularly Brazil, Mexico, Indonesia and India. The Fund maintained a defensive approach regarding interest rates in developed markets, while holding duration exposures in select emerging markets. Underweighted duration exposure in the U.S. detracted from relative results, as did select underweighted duration exposures in Europe. However, select overweighted duration exposures in Latin America (Argentina and Mexico) contributed to relative performance. We continue to emphasize select local-currency bonds outside of the major developed markets, in countries that we view as having resilient fundamentals and attractive risk-adjusted yields.

What other market conditions or events influenced the Fund's performance during the past 12 months?

The 2020 calendar year started optimistically, as a phase one trade deal between the U.S. and China appeared to bolster market sentiment, driving risk asset valuations higher in several markets across the globe.


21



In Europe, the European Central Bank (ECB) kept monetary policy unchanged through the end of the year, with the main refinancing operations rate remaining at 0.0 percent, and the main deposit facility rate remaining at -0.5 percent.

In Japan, Yoshihide Suga was confirmed as the new prime minister on September 16, following Shinzo Abe's resignation on August 28. Abe had been prime minister since December 2012. The Bank of Japan (BOJ) made no changes to its rates policy in 2020. Overnight interest rates remained at -0.1 percent and the yield target on the 10-year Japanese government bond remained at 0.0 percent throughout the period. Despite the BOJ's efforts to drive inflation higher during the Abenomics era, deflationary pressures returned, with core inflation (National Consumer Price Index (CPI) ex fresh food) dropping to -0.4 percent year-over-year in August and falling further to -0.9 percent in November. The BOJ announced in December that it had launched a comprehensive review of its monetary framework, scheduled to arrive in March 2021.

Nearly every country in the world declared some form of fiscal response to the economic crisis in 2020, with most countries pursuing programs that went beyond the measures they deployed during the global financial crisis. During the 12-month period Brazil cut rates by 250 basis points (bps) to 2.00 percent, Colombia cut rates by 250 bps to 1.75 percent, Mexico cut rates by 300 bps to 4.25 percent, Indonesia cut rates by 125 bps to 3.75 percent and India cut rates by 115 bps to 4.00 percent.

In markets, the yield on the 10-year US Treasury (UST) note finished the period 100 bps lower, at 0.92 percent, ranging from a pre-pandemic high of 1.92 percent on January 1 to an all-time low of 0.51 percent on August 4. The UST yield curve notably steepened from early August through the end of December, with the spread between the three-month UST bill and the 10-year UST note rising from 40 bps to 83 bps on mounting debt issuance and rising reflation expectations.

In Europe, the yield on the 10-year German Bund finished the year 38 bps lower at -0.57 percent, ranging from a pre-pandemic high of -0.19 percent on January 13 to an all-time low of -0.86 percent on March 9, during peak financial market shocks. Expanding monetary accommodation, political challenges to disbursing fiscal stimulus measures and persistent deflationary pressures kept yields suppressed across much of core Europe through the end of the year. Sovereign bond yields also declined in several countries on ongoing monetary accommodation during the year, notably including much of Latin America and Asia, particularly Brazil, Mexico, Indonesia and India.

In currency markets, the USD initially strengthened in March on tremendous demand for US dollars during the financial market shocks, but then entered a broad-based weakening pattern in mid-May that largely persisted through the end December. Many developed market and emerging market currencies alike strengthened against the USD over the final seven months of the year. In credit markets, spreads widened substantially during peak financial market volatility in February and March, but progressively tightened from April through December, with several sovereign and corporate sectors finishing the year at pre-pandemic levels.

What strategies and techniques did you employ that specifically affected Fund performance?

We continued to maintain low portfolio duration. We are significantly underweight developed market duration, preferring to hold short- to intermediate-term USTs, while holding no exposure to the long end of the curve. We hold no duration exposure in the eurozone. Instead, we continue to emphasize select local-currency bonds outside of the major developed markets, in countries that we view as having resilient fundamentals and attractive risk-adjusted yields.

In December, we shifted the emphasis of our currency allocations from a safe-haven stance toward medium-term valuation opportunities against the euro and USD. We see fundamental value in specific currencies of economies with current account surpluses, notably in northern Europe, Japan and other areas of Asia. We are also holding various unhedged local-currency positions, notably in South Korea, Indonesia, India and Ghana. We have notable long exposures in the Norwegian krone and Swedish krona against the euro, and in the Japanese yen and Chinese yuan against the USD. We continued to hold long exposure in the USD against a net-negative position in the euro, as we expect the euro to weaken against the USD on negative rates in the eurozone and comparatively greater headwinds to growth and reflation efforts across Europe. We reduced our net-negative position in the Australian dollar in December, as part of our tactical rotation into areas of risk and value in Asia.


22



We continued to broadly avoid credit sectors, which remain overvalued and vulnerable to ongoing economic damage, in our view. Nonetheless, we continue to monitor credit conditions and have become increasingly constructive in various areas of the global fixed income markets, notably in areas of Asia, as we expect vaccine distributions to improve economic activity in the second half of 2021.

What will affect the Fund going forward?

We are optimistic for the potential effectiveness of vaccine distributions in 2021, which we expect to incrementally support a rebound in economic activity midway through the year. We anticipate being constructive in a number of regions as the world transitions towards a post-COVID-19 era, with a particular focus on areas of Asia that have addressed the health crisis and economic crisis more effectively. However, it remains crucial to be highly selective as there is wide variance in how countries have contained COVID-19, handled fiscal and monetary policy, and supported their economies.

Additionally, optimism for a potential curtailment of the pandemic in the second half of the year should be counterbalanced with caution over acute near-term risks, in our view. The pandemic continues to destroy areas of economic activity as cases surge to record levels in areas of Europe, the US and Latin America, resulting in substantial risks for a number of financial assets. COVID-19 cases appear likely to reach a zenith during the winter months before vaccine distributions may cause the pandemic to ebb in the late spring and summer of 2021. Broad disinflationary effects are likely to persist until economies can return to full mobility. There will also be wide variation in distribution efficiency in countries, with several emerging markets lagging the deployments of vaccines in advanced economies, creating staggered timelines for economic recoveries and specific investment opportunities.

From a macro standpoint, fiscal and monetary policies continue to have a substantial impact on financial market valuations. Central banks are now seen as the policymaker of first and last resort during a crisis, with extreme monetary policy becoming the norm in developed economies. Emerging markets typically have less ability to pursue ultra-accommodative policies given the amplified risks to price stability and their exchange rates. Stronger institutions in developed countries allow for more extreme measures, though not without consequence; massive fiscal deficits and persistently low rates to minimize debt financing should lead to currency depreciation, notably in the euro area and the US.

We believe environmental, social and governance (ESG) factors will play a major role in rebuilding the post-COVID-19 world. Social cohesion and good governance have the power to accelerate a country's post-crisis recovery, or the lack thereof can stymie it. Tragically we have seen the consequences of weak ESG factors in specific emerging markets during the pandemic. Countries that were less prepared for a health crisis due to weaker health care systems and less developed infrastructure, and/or less prepared for an economic crisis due to fiscal imbalances, high levels of debt and external dependencies, have suffered greater damage. By contrast, countries that were in stronger fundamental shape before the crisis, with stronger institutions, lower levels of debt and more diversified economies, have generally fared better.

Widening income inequality in many countries also remains a critical issue that threatens to undermine economic stability and intensify social discord. Damaged economies and elevated unemployment from the pandemic have only worsened several pre-existing structural problems. Countries that effectively address these challenges in the years ahead can strengthen the underpinnings of their economies, while those that neglect these factors risk further instability. We expect ESG to be a defining characteristic for global fixed income markets in years ahead. Countries that are projected to improve on ESG factors often present the strongest investment opportunities.


23



Ten Largest Holdings^

Security description Market
value
 % of bond
portfolio
 

U.S. Treasury Note 2.125%, 05/15/25

 

$

5,342,520

   

5.9

%

 

U.S. Treasury Note 1.500%, 11/30/24

  

4,456,690

   

4.9

%

 

U.S. Treasury Note 2.000%, 02/15/25

  

4,432,549

   

4.9

%

 

Korea Treasury Bond 4.250%, 06/10/21

  

4,279,686

   

4.7

%

 

Korea Treasury Bond 1.375%, 12/10/29

  

4,207,892

   

4.6

%

 

U.S. Treasury Note 1.750%, 12/31/24

  

3,696,023

   

4.1

%

 

Korea Treasury Bond 3.375%, 09/10/23

  

2,668,196

   

2.9

%

 

U.S. Treasury Note 2.875%, 05/31/25

  

2,659,249

   

2.9

%

 

Mexican Bonos 6.500%, 06/09/22

  

2,559,553

   

2.8

%

 

Korea Treasury Bond 3.000%, 09/10/24

  

2,371,397

   

2.6

%

 
  

$

36,673,755

   

40.3

%

 

^Excludes short-term investments.

Country Diversification (shown as a percentage of net assets)

Currency Diversification (shown as a percentage of net assets)

African

  

1.57

%

 

Ghana Cedi

  

1.57

%

 

Americas

  

37.65

%

 

United States Dollar

  

34.97

%

 

Argentine Peso

  

1.85

%

 

Mexican Peso

  

0.79

%

 

Brazilian Real

  

0.04

%

 

Asia Pacific

  

71.87

%

 

Japanese Yen

  

49.98

%

 

Republic of Korea Won

  

17.95

%

 

Indian Rupee

  

5.02

%

 

Indonesian Rupiah

  

4.74

%

 

Chinese Yuan Renminbi

  

4.47

%

 

Australian Dollar (AUD)*

  

-10.29

%

 

Europe

  

-11.09

%

 

Norwegian Krone

  

11.44

%

 

Swedish krona

  

7.81

%

 

Euro*

  

-30.34

% 

*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.


24



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT International Bond Fund,
FTSE World Government Bond Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT International Bond Fund's Class 2 shares total return compared to the FTSE 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, 2010 through December 31, 2020, 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 FTSE 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.


25



SFT IvySM Growth Fund

Bradley M. Klapmeyer, CFA Portfolio Manager Ivy
Investment Management Company

Fund Objective

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 Securian Asset Management, Inc. acts as the investment adviser for the Fund, Ivy Investment Management Company (IICO) 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.

Performance Update

The Fund generated a total net return of 30.69 percent over the 12 months ending December 31, 2020, underperforming the Russell 1000 Growth Index which returned 38.49 percent for the same period.

What influenced the Fund's return during the past 12 months?

During the measurement period, the Fund posted a strong absolute gain, but underperformed relative to its benchmark. Stock selection within the consumer discretionary, information technology and communication services sectors was the main reason for relative underperformance.

Market returns were strongly influenced by the "tails"—on one end were hyper growers that lack proven business models throughout cycles and on the other end were cyclical value stocks that are highly dependent on accelerating economic growth prospects. This created a unique challenge for the Fund's desire to maintain a strong quality bias as many of the outperforming areas lacked the strong business model characteristics we typically require. Given that we believe quality is more durable than growth, we were forced to sacrifice on some relative growth attributes in favor of quality, and although that resulted in underperformance in 2020, we think maintaining a focus on quality growth will be rewarded through the cycle.

What other market conditions or events influenced the Fund's performance during the past 12 months?

2020 initially started, pre-pandemic, with hopes that easing credit conditions and monetary policy would ultimately lead to accelerating growth later in 2020. Oddly enough, 2020 ended with that same narrative but for 2021 with hope that another round of, again unprecedented, monetary and fiscal policy will kick-start a new, but stronger post pandemic economic cycle.

Maintaining exposure to the large-cap growth style over the past decade has been a rewarding proposition with an annual total return for the Russell 1000 Growth Index since 2010 slightly more than 17 percent. While those average annual gains are remarkable, it hasn't been a smooth ride as the past decade has been marked by its fair share of turbulence as global economies emerged from the depths of the global financial crisis. While this decade long run for growth style investing was capped with another year of strong gains, 2020 made sure it was a hard-earned return.

What strategies and techniques did you employ that specifically affected Fund performance?

Performance in consumer discretionary was the leading source of negative sector attribution. The Fund was overweight the sector but challenging stock selection more than offset this positive allocation. The most significant detractor was underweight exposure to Tesla, which posted a significant gain for the period. We maintained no exposure as we believe Telsa's valuation is embedding unrealistic long-term business economics and earnings. An


26



overweight position in two other stocks, V.F. Corp. and Booking Holdings Inc., also detracted from performance. Finally, a notable overweight position in Tractor Supply Co. was a source of positive attribution. Strength in Tractor Supply, a position initially introduced in the portfolio in January 2020, outperformed as it remained operational during COVID-19 because its products were deemed essential to consumers.

Information technology was another detractor, driven by an overweight position in Motorola Solutions, which underperformed as a result of concerns related to demand within its first responder communications business unit. Apple, Inc. was another detractor as the Fund's underweight position proved incorrect given the company's impressive returns during the period. Positive attribution wasn't absent during the period as several overweight positions, including NVIDIA Corp., PayPal Holdings, Adobe and Microsoft, provided a partial offset to challenged performance within the sector.

Within the communication services sector, the Fund continued to experience a headwind from the pervasive theme of rewarding relatively unproven business models, which stands in contrast to the Fund's well-tenured process and philosophy. Underweight positions in Netflix, Pinterest and Roku were sources of detraction, while an overweight in Electronic Arts, despite gaining double digits in the period, added to the relative underperformance within the sector. Positive attribution was present as the Fund continued to avoid traditional media companies that significantly underperformed the sector.

Industrials was a source of positive attribution driven by the Fund's stock selection within the sector. Underweight positions in aerospace and defense stalwarts such as Boeing and Lockheed Martin were bright spots. A continued overweight in CoStar Group, as in recent years, again proved to be a source of positive attribution. The Fund experienced a headwind to performance with overweight positions in several long-term holdings such as Stanley Black & Decker, Caterpillar, Northrop Grumman and J.B. Hunt Transport Services.

Lastly, Fund exposure to the real estate and materials sectors, while relatively small, provided positive sources of attribution through both positive allocation and stock selection.

What will affect the Fund going forward?

Supported by low interest rates, flowing fiscal stimulus and improving global growth prospects, the markets will likely enter 2021 with a sustained desire to swing for the fences. As such, it is possible to see continued strength in the near-term from hyper-growth dream stocks and lower quality, deeply cyclical value names.

We see these tail trades, or "barbell strategies," as temporary. Neither has deep roots attached to quality businesses. We believe as the year progresses the persistence and intensity of outperformance from these tails will cede momentum to more durable investment strategies. We are hopeful that macro and stylist influences on the market will diminish leaving a market better tuned for stock picking, not macro or factor guessing.

The catalyst driving our view of a more rational market environment is simply related to the "rubber meeting the road." Market valuation expansion has been a significant portion of growth style returns over the past two years, which embeds a high level of expectations around accelerating growth or sustaining high levels of rapid growth. We believe that parts of the market—work from home, pandemic beneficiaries and hyper-growth stocks—have built in expectations of years of forward good news based on current low interest rates, contained inflation, upsized fiscal stimulus and stronger near-term economic prospects. We think these high expectations of sustained growth along with a broadening economic recovery and upward movement in rates, poses a real risk to the growth tail of the market.

Our empirically proven investment philosophy is based on the fleeting nature of growth sustainability and that growth, if ultimately durable, needs to be attached to a quality business. As such, we have always started our stock selection process with good business model selection and believe quality is paramount to controlling downside risk and driving strong multi-year returns. Although the current environment may be recklessly rewarding only those companies with the highest near-term growth or strongest pandemic revisions, we stand firm in our assessment that quality is more durable than growth. We believe starting with quality while avoiding the temptation to chase growth for growth's sake (at any cost) will reap significant and more predictable benefits over a multi-year horizon.


27



Ten Largest Holdings^

Security description Market
value
 % of net
assets
 

Microsoft Corp.

 

$

60,341,656

   

10.0

%

 

Apple, Inc.

  

53,483,093

   

8.8

%

 

Amazon.com, Inc.

  

41,265,303

   

6.8

%

 

Alphabet, Inc.—Class A

  

27,197,468

   

4.5

%

 

Visa, Inc.—Class A

  

26,988,439

   

4.5

%

 

Facebook, Inc.—Class A

  

22,041,280

   

3.6

%

 

PayPal Holdings, Inc.

  

19,013,995

   

3.1

%

 

Adobe, Inc.

  

18,808,513

   

3.1

%

 

Motorola Solutions, Inc.

  

18,400,492

   

3.0

%

 

Intuit, Inc.

  

17,718,863

   

2.9

%

 
  

$

305,259,102

   

50.3

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


28



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Ivy
SM Growth Fund,
the Russell 1000 Growth Index and Consumer Price Index (CPI)

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, 2020, 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 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.

'Ivy' is the registered service mark of Ivy Distributors, Inc., an affiliate of IICO.


29



SFT IvySM Small Cap Growth Fund

Timothy J. Miller, CFA, Kenneth G. McQuade, CFA, Bradley P. Halverson, CFA Portfolio Managers Ivy Investment Management Company

Fund Objective

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 Securian Asset Management, Inc. acts as the investment adviser for the Fund, Ivy Investment Management Company (IICO) 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.

Performance Update

The Fund generated a total net return of 36.26 percent over the 12 months ending December 31, 2020, outperforming the Russell 2000 Growth Index which returned 34.63 percent over the same period.

What influenced the Fund's return during the past 12 months?

The Fund outperformed its benchmark for the measurement period. The Fund's steady focus on sustainable, quality growth companies provided a consistent lead over the benchmark during a period of tremendous volatility and mood swings in the market. After a strong start to the year, COVID-19 focused investor expectations on industries and companies that could weather the turmoil or indeed prosper.

What other market conditions or events influenced the Fund's performance during the past 12 months?

One needed more than "2020" vision to foresee the events that would transpire last year and how the market could rise so much in the midst of all of the chaos. The broad market gains in the U.S. were good last year and the small-cap market gains were great.

Growth stocks were the leaders across the entire market cap spectrum, as investors gravitated to the durability and predictability of companies in the technology, healthcare, and emerging growth industries. COVID-19 caused a sharp correction in the spring, but the rapid and forceful response of fiscal and monetary policy provided the catalyst for the stock market to foresee better days ahead. Confidence in that foresight was further enhanced by the rapid development and success of a vaccine late in the year, sparking a broader year-end rally.

What strategies and techniques did you employ that specifically affected Fund performance?

There were clear winners that thrived during the economic contraction, including health care service companies such as Teledoc, or critical software vendors whose subscription model proved resilient, or consumer companies exposed to outdoor recreation. The Fund made a few adjustments to increase exposure in these stocks while reducing exposure in the most vulnerable industries such as travel and entertainment and energy. The correction lasted about a month, and then the impact of aggressive fiscal stimulus and monetary accommodation turned sentiment around quickly. The rally was led by the stocks hit the hardest during the correction, and then a tug of war ensued over the balance of the year between defensive COVID-19 beneficiaries versus a reopening recovery trade. The challenge for the Fund was to maintain the significant outperformance generated prior to the bottom. By year-end only a small portion of that gain had been forfeited. The two leading sectors for the Fund were the two largest weights, information technology and health care.

Information technology was a significant contributor to Fund performance during the year as the sector handily beat the index and stock selection nicely outpaced sector returns. As the world lurched into lockdown in March,


30



the digital transformation theme of the past decade suddenly accelerated as the necessity to work remotely impacted all types of organizations worldwide. Many technology companies became immediate beneficiaries as reliance on software, communications, technology and digital tools became mission critical. The Fund has historically been overweight information technology because the market, over a full market cycle, has rewarded strong, enduring business models operating in large, exploitable markets. This year was turbocharged as software, semiconductors and information technology services were key contributing industries, bolstered by strong stock selection leading to significant returns in excess of the Fund's benchmark. Notable performance came from Five9, a company providing crucial cloud call-center software; Enphase Energy, a company delivering solar inverters and batteries to the U.S. residential market; and Monolithic Power, a leading analog semiconductor company. In the year ahead, we believe demand for these technologies will remain robust and we expect to retain an overweight sector stance devoted to strong growth companies. Still, we are conscientious of elevated valuations and continue to evaluate position sizes and seek for new opportunities of innovative companies we believe are well positioned for sustained growth and profitability.

Health care produced the strongest return of any sector and, as the largest weighted sector in the Fund's benchmark, created a significant performance hurdle to keep up with. COVID-19 was the obvious key focal point that created many direct impacts such as minimal capacity for non-emergency procedures, lower private pay from rising unemployment, massive vaccine and treatment funding and significant stress on staffing. Another incremental aspect of the pandemic was the rapid development and acceptance of novel technologies that could make health care delivery more efficient, more effective and more customized, such as genetic testing, vaccine technologies and gene editing. Biotech was the largest contributing segment. Biotechnology produced a strong double-digit annual return in the Fund's benchmark on the back of accelerated adoption of technologies along with low interest rates, easy credit and an accommodating Food and Drug Administration. Despite the tough performance hurdle, we outperformed within health care due to strong stock selection including multiple names that more than doubled their returns in the year. Although we remained underweight the sector to avoid much of biotech's more binary risk profiles, stock selection more than offset the weighting headwind. Looking forward, we think demand for more efficiency and individualized treatments along with available funding for development keeps the fundamental outlook bright for the more novel niches in health care, likely at the expense of outdated facilities and invasive therapies. As a result, we continue to gravitate toward innovation and services that facilitate value-based health care in more cost-effective settings.

The balance of the portfolio was a net drag on performance for the year. As the market migrated to a recovery-oriented environment in the latter half of the year, the cyclical, value-oriented portion of the Fund's benchmark led the way. Stocks in the energy, machinery and materials sectors were the outperformers and these areas were underweight positions in the Fund.

Consumer discretionary was a strong absolute performer and the Fund performed in line with the Fund's benchmark. The shortfall in industrials was primarily due to the cyclical phenomena mentioned above, and a bit of a speculative flurry of performance in solar stocks. Finally, financials was a drag on returns due to disappointing stock performance from a few names such as eHealth and Houlihan Lokey. The former has been sold.

What will affect the Fund going forward?

As unpredictable as 2020 was, the lesson learned was to maintain the Fund's core stock selection discipline, which has proven over the years to be a successful strategy. We believe the market ultimately rewards the small-cap growth companies that deliver sales and earnings growth and returns on capital that merit the high valuations often achieved.

The pandemic in some cases validated and accelerated the adoption of the innovative growth models that the Fund is always pursuing. The outlook for 2021 seems brighter with the rollout of the vaccine but there will undoubtedly be the unexpected turn of events that lead to market volatility. Innovation is in full stride however, which we think is an ideal environment to invest in small-cap growth companies.


31



Ten Largest Holdings^

Security description Market
value
 % of stock
portfolio
 

Five9, Inc.

 

$

7,542,277

   

3.6

%

 

CareDx, Inc.

  

6,452,107

   

3.0

%

 

Varonis Systems, Inc.

  

6,092,836

   

2.9

%

 

Globant SA

  

5,309,249

   

2.5

%

 

Monolithic Power Systems, Inc.

  

5,255,034

   

2.5

%

 

PetIQ, Inc.

  

4,842,701

   

2.3

%

 

The Brink's Co.

  

4,627,728

   

2.2

%

 

Mercury Systems, Inc.

  

4,457,421

   

2.1

%

 

Vericel Corp.

  

4,370,940

   

2.1

%

 

Q2 Holdings, Inc.

  

4,136,139

   

2.0

%

 
  

$

53,086,432

   

25.2

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


32



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Ivy
SM Small Cap Growth Fund,
the Russell 2000 Growth Index and Consumer Price Index (CPI)

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, 2020, 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 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.

'Ivy' is the registered service mark of Ivy Distributors, Inc., an affiliate of IICO.


33



SFT Managed Volatility Equity Fund

Craig M. Stapleton, CFA, FRM, Jeremy Gogos, Ph.D., CFA and Merlin Erickson Portfolio Managers

Fund Objective

The SFT 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 percent S&P 500® BMI International Developed Low Volatility Index and 20 percent Bloomberg Barclays U.S. 3-Month Treasury Bellwether Index (collectively, the Blended Benchmark Index). The SFT 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 Fund's 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.

Performance Update

The Fund generated a total net return of -5.35 percent, with a volatility of 11.87 percent, over the 12 months ending December 31, 2020. 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 -1.96 percent, with a volatility of 23.35 percent, over the same period.

What influenced the Fund's return during the past 12 months?

Equity volatility is what guides the asset allocation of this strategy. When equity volatility is low, the equity exposure of this strategy will be high. Conversely, when equity volatility is high, the equity exposure of this strategy will be low. Clearly, in 2020, COVID-19 was the predominant driver of market volatility.

The S&P 500 realized 34.43 percent volatility for 2020, the sixth highest calendar-year volatility in the index's 93-year history. 2008 is the only year in the modern era more volatile (40.97 percent realized volatility). All other higher years occurred in the 1920s and 1930s. Realized one-month volatility began 2020 quite low, entering the year at 6.90 percent. As such, the Fund's equity exposure was at 98.95 percent. In early February, as the market began to appreciate how truly disruptive COVID-19 could be, volatility began to escalate. From 02/21/2020 through 03/27/2020, the Fund was steadily de-risked from 99.52 percent to 13.61 percent equity exposure. This reduction in equity exposure was concurrent with one-month volatility increasing from 13.90 percent to 97.12 percent over the same time period. 03/27/2020 turned out to be the peak of one-month realized volatility in the COVID-19 market panic, but it stayed above 40 percent through the end of April. Indeed, the Fund did not begin adding back equity exposure in earnest until mid-May, and volatility did not drop enough for the Fund to get to "neutral" weight—i.e. 80 percent exposure—until late July. September and October also saw brief periods of volatility rising to the mid 20 percent range, and so the Fund was underweight equity for most of Q3 and Q4. One-month volatility closed out 2020 at 8.3 percent, and the Fund finished 2020 with 87.54 percent linear S&P exposure, approximately 11.59 percent exposure in long S&P 500 call options, and approximately 1.30 percent exposure in long Chicago Board of Options Exchange (CBOE) Volatility Index (VIX) puts.

All told, the Fund's average equity exposure for 2020 was 64.52 percent, which contributed -5.43 percent to the overall Fund return on a net basis. The benchmark equity component contributed -2.09 percent to the Blended Benchmark Index return. The Fund's fixed income and cash assets averaged 35.48 percent weight for the year, and contributed 0.08 percent to the overall Fund return on a net basis. The benchmark fixed income component delivered 0.13 percent to the Blended Benchmark Index return.


34



What other market conditions or events influenced the Fund's performance during the past 12 months?

Following are just some of the financial extremes witnessed in 2020:

•  March 2020 saw a realized volatility of 93.42 percent, the most volatile month ever in the S&P 500 history.

•  The CBOE VIX set a new closing record of 82.7 on 03/16/2020.

•  The 33.92 percent drawdown from 02/20/2020 through 03/23/2020 was the ninth-largest S&P loss ever in 23 business days, and all other such periods that surpassed it were in 1929 and 1931.

•  Similarly, over the next 103 days, the S&P 500 rallied 51.50 percent, surpassing its pre-COVID-19 high. The speed of this rally is also unmatched in the last 87 years; only periods from 1932 and 1933 saw a larger S&P 500 price appreciation in the same number of business days.

•  International indexes (Nikkei 225, Hang Seng, FTSE 100, EuroStoxx 50) also saw rapid drawdowns in the 25-35 percent range in response to COVID-19.

•  The highest single-week Initial Jobless Claims (IJC) number during the Great Financial Crisis (GFC) was 665,000; during the week of 03/20/2020, the IJC number jumped from 282,000 to 3,307,000, and experienced forty-one continuous weeks of prints above the GFC peak.

•  The US 10-year Treasury rate set a new record low of 0.51 percent on 08/04/2020.

•  Second quarter of 2020 saw the largest quarter-over-quarter US Gross Domestic Product (GDP) contraction in history -31.40 percent.

In addition to these "top-level" anomalies, there were other very troubling developments underneath:

•  The well-known concentration of S&P 500 market cap in tech names was not helped by Tesla joining the index. As of year end, 24.86 percent of the S&P 500 market cap was concentrated in Apple, Amazon, Facebook, Alphabet (Google), Microsoft, Tesla, and Netflix. Also of note, Tesla saw a 743 percent return for 2020.

•  The best-performing S&P 500 sector in 2020 was Information Technology. The worst-performing sector was Energy. The performance gap between the two was the largest on record, going back to 2002. COVID-19 created an environment where industries that benefit from "work from home" (delivery retail, tech, etc.) were handed outlandish returns, and most other real-economy sectors were punished.

•  The Growth and Value sub-indexes of the S&P 500 tell a similar story. The outperformance of Growth over Value in 2020 is the largest on record back to 1994. The next largest Growth-Value gap was in 1998, leading up to the DotCom bubble.

•  The current projection for S&P 500 earnings growth year-over-year for the fourth quarter 2020 is -8.8 percent; yet the S&P 500 closed 2020 at a new all-time high.

We continue to view the equity markets as generally overvalued, and the absurd performance of the top equity sectors and names as liquidity fueled mania. To that end, consider the peak-to-trough performance of both the Fund and the Fund's benchmark through the COVID-19 panic. The Fund achieved its goal of mitigating severe drawdowns. However, with the Federal Reserve (Fed) unexpectedly cutting its target policy rate to 0.0 percent (03/13/2020) and pledging to inject trillions of short-term liquidity into the financial system, and the roughly $2 trillion CARES act passing on 03/27/2020, any asset allocation that involved being underweight equity was a losing proposition. This underweight was one primary driver of the Fund's underperformance in 2020. The other driver was the Fund's tilt toward value and low volatility stocks in its cash equity holdings. As alluded to above, these equity factors were extremely challenged in 2020.


35



What strategies and techniques did you employ that specifically affected Fund performance?

Throughout the year, the Fund held a core long position in cash equity that represents low volatility domestic and international equity. In addition, the Fund had long and short positions in S&P 500 futures, long and short S&P 500 call options, long and short S&P 500 put options, long and short VIX call options, and long and short VIX put options. These derivative positions were held either as expressions of the target equity allocation of the Fund given prevailing volatility, or as supplemental hedges for managing the Fund's risk.

What will affect the Fund going forward?

We expect worse-than-average returns, and higher volatility, for domestic risk markets on a go-forward basis. Equity indexes continue to make new highs, while most fundamental valuation metrics suggest the equity market is quite overvalued, and S&P 500 earnings have declined year-over-year for 7 of the last 8 quarters. Both investment grade and high yield corporate credit yields are near their historic lows, while domestic corporate debt outstanding hit another new record in 2020. Multiple indications of inflation expectations have steadily risen since early 2020.

In short, up to this point, the monetary and fiscal tsunami unleashed upon the markets has been the primary driver of the returns seen since the COVID-19 market nadir. In our view, it seems plausible that the market has finally reached the point where central bank liquidity can no longer be injected without stoking fears of inflation. And further, every major central bank is now at their logical policy limit: short-term rates pinned at zero, and aggressive asset purchases to support markets.

Some market observers find justification for bullish sentiment in the COVID-19 vaccine release, and the promise of societal dynamics returning to normal. But in response, we pose the following simple logical question: if the market was impervious to the sectors worst affected by COVID-19 struggling mightily for the better part of a year, should the market see material gains as a result of those sectors returning to normal operation?

Given the present situation of extremely accommodative monetary policy, and probable further fiscal stimulus from the newly-elected Democratic federal government, we view the risk of a major equity selloff as reduced. But again, we are hard-pressed to see the case for material risk asset gains in 2021. And, perhaps more importantly, given the current central bank positioning, the—in our view—absolutely irresponsible federal debt and deficit, and the already staggering level of federal stimulus, we see the entire market as extremely vulnerable to an exogenous shock.

In a tactical sense, we will continue to use our volatility metrics to inform the equity allocations of the Funds. We will increase equity exposure if we believe volatility will decrease, decrease equity exposure if we believe volatility will increase, and in the event that we are overweight equity, we will carry some form of tail risk hedge for the foreseeable future.


36



Ten Largest Holdings^

Security description Market
value
 % of market
value
 

iShares Edge MSCI Minimum Volatility USA ETF

 

$

114,923,012

   

32.3

%

 

iShares Edge MSCI Minimum Volatility EAFE ETF

  

91,455,132

   

25.7

%

 

iShares Core High Dividend ETF

  

66,318,585

   

18.7

%

 

iShares Edge MSCI Minimum Volatility Emerging Markets ETF

  

21,871,832

   

6.2

%

 

iShares MSCI Germany ETF

  

16,877,240

   

4.7

%

 

BlackRock Short Maturity Bond ETF

  

13,809,042

   

3.9

%

 
  

$

325,254,843

   

91.5

%

 

    

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


37



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Managed Volatility Equity Fund,
the Blended Benchmark Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT Managed Volatility Equity Fund's shares total return compared to its Blended Benchmark Index, comprised of 60 percent of the S&P 500® Low Volatility Index, 20% S&P 500® 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, 2020, 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.

Securian Asset Management, Inc. (Securian AM) and the Securian Funds Trust, on behalf of the SFT 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, 2021. The Agreement renews annually for a full year each year thereafter unless terminated by Securian AM upon at least 30 days' notice prior to the end of a contract term. The Fund is authorized to reimburse Securian AM for management fees previously waived and/or for the cost of expenses previously paid by Securian AM 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 Securian AM in this manner only applies to fees waived or reimbursements made by Securian AM within the three fiscal years prior to the date of such reimbursement. To the extent that the Fund makes such reimbursements to Securian AM, 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 500® 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 500® 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 Bellwether Index tracks the market for the on-the-run 3-month Treasury bill issued by the U.S. government.


38



SFT Real Estate Securities Fund

Matthew Richmond, Lowell Bolken, CFA and Joshua Klaetsch, CFA Portfolio Managers

Fund Objective

The SFT 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 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.

Performance Update

The Fund's Class 2 shares generated a total net return of -2.83 percent over the 12 months ending December 31, 2020, outperforming the FTSE NAREIT Equity REITs Index which returned -8.00 percent over the same period.

What influenced the Fund's return during the past 12 months?

Real estate stocks delivered negative returns for the year ending December 31, 2020, widely underperforming the S&P 500® for the second consecutive year. The COVID-19 pandemic ushered in unprecedented economic strife on main-street America, leading to significant occupancy losses and operating uncertainty across the commercial real estate landscape. The majority of damage was inflicted throughout the first half of the year, with steady improvement in operating conditions being achieved in the second half. With the economy effectively shuttered in the second quarter and job losses exceeding 20 million (as opposed to 8 million in the Global Financial Crisis of 2008) it comes as little surprise that real estate demand suffered wide-reaching effects.

COVID-19 continues to weigh on real estate demand across most property types, but the welcome news of effective vaccines has shifted the outlook for the sector. Relative to earlier in the year, rental collections have improved dramatically and the sector appears to have stabilized. Significant laggards, including retail and hotels can now see a light at the end of what has been a very long tunnel. While it will likely take years for demand to return to pre-COVID-19 levels, the specter of widespread tenant bankruptcies has faded. Optimism surrounding a return to normal activity levels across the economy and space demand resumption is driving expectations of 5% cash flow growth for REITs in 2021.

What other market conditions or events influenced the Fund's performance during the past 12 months?

Data Centers and Cell Tower owners were the standouts among the property types, while retail and hotel owners suffered near catastrophic business interruption. Demand for space remains strong, with enterprise migrations in datacenters and 5G buildouts in towers expected to accelerate. At the same time, edge and cloud computing, mobile data usage growth, and artificial intelligence are all expected to provide tailwinds to demand for the foreseeable future. We continue to see the communications infrastructure names as attractively valued when considering their growth prospects and defensive lease structures, and the portfolio remains overweight to this sector.

Industrial REITs were another clear winner throughout the pandemic as on-line shopping exploded and consumers continued to execute a secular shift from 'bricks and mortar' shopping to E-Commerce with same day delivery.

Single family rental REITs also delivered solid performance. A limited supply of affordable and available inventory, coupled with surging demand from renters fleeing large, urban areas drove near sector leading returns for single family rental REITs.

As if "bricks & mortar" retailers needed another problem in the fight for consumer dollars, the pandemic all but destroyed the demand for in-person shopping. Another year of significant store closures and bankruptcy filings resulted in dismal performance for mall REITs, whose returns lagged the index by nearly 30%.


39



Office REITs were another casualty of COVID-19, as the world reverted to a work-from-home model. We believe this phenomenon has staying power that will impinge office demand for the foreseeable future. Demand and rental rates will likely take years to recover (if ever) to pre-COVID-19 levels in certain urban markets.

What strategies and techniques did you employ that specifically affected Fund performance?

The Portfolio delivered negative returns, but widely outperformed its benchmark and finished in the top quartile of peers. We properly anticipated the wide-ranging influence of the pandemic and quickly shifted the portfolio to a "defensive" posture in the late first quarter. Our investment philosophy consistently favors companies we believe own well-located, high-quality properties that feature stable balance sheets, exhibit improving property fundamentals and have above-average cash flow growth prospects. Those characteristics have proven over time to result in favorable performance.

Office stocks underperformed the index, but selection decisions within the sector aided the portfolio's relative performance. A long-held overweight position in a biotech/life science owner was a sizable outperformer. This company benefited from owning a high quality portfolio of buildings with a highly attractive tenant roster. Near complete avoidance of New York City (NYC) office owners also benefitted the portfolio. Owners of NYC office faced significant challenges now and into the forseeable future with the COVID-19 fallout expected to impact demand for years, as dense urban office leasing will become taboo in the post-COVID-19 world. We also reduced our holdings in West Coast centric office owners as conditions in that region have deteriorated.

Data Center and Cell Tower REITs were among the top performers in 2020, and the portfolio's overweight position was a significant contributor to benchmark-relative performance. We continue to see the communications infrastructure names as attractively valued when considering their growth prospects and defensive lease structures, and the portfolio remains overweight to this sector.

Retail REITs dramatically lagged the Fund's benchmark as COVID-19-related business disruption drove record bankruptcies and tenant disruption. Later in the year, particularly following "Pfizer Monday", Retail REITs became a prime beneficiary within the reopening rally. We continue to have concerns over tenant health in the space, but also recognize the steep discounted valuations available at today's pricing. We shifted the portfolio to an overweight position as we became increasingly optimistic that retail fundamentals will improve in a post-vaccine environment.

Hotel REITs and operating companies continued to feel the impacts of restricted travel throughout the year and their stock performance relative to the REIT benchmark reflected that reality. While business and air travel remain largely shut down, hotel REIT management teams have noted a surprising uptick in leisure demand at drive-to resort properties. Similarly to Retail, we have taken advantage of depressed pricing to initiate an overweight position predicated on improving lodging trends in 2021.

What will affect the Fund going forward?

The Federal Reserve's (Fed) intentions are clear—rates are to remain anchored near zero until inflation takes hold. The Fed remains committed to maintaining an aggressive pace of asset purchases, even as its balance sheet has grown by over $3.2 trillion since the end of February. Congress seems to understand that fiscal policy needs to play a leading role. The late passage of a new COVID-19 relief bill provides for ongoing enhanced unemployment benefits, $600 stimulus checks, and continued aid for small businesses and transportation. At a value of $900 billion, while smaller than the $2.5 trillion CARES Act, the package still weighs in at over 4 percent of GDP. Under a Biden administration, we believe policymakers are likely to support actions that seek to drive growth until the tide lifts all boats.

While a strong rebound is likely, in our view we're not going to return to the old normal. The pandemic accelerated trends that were already in place and focused an unflinching spotlight on imbalances and sectors with weak value propositions. Work from home appears to be here to stay, and demand for office space and business travel will likely face a long recovery; as will bricks and mortar retail. Indeed, many office, hotel, and retail properties will never recover pre-COVID-19 occupancy levels. We have been careful to avoid companies that we believe are more exposed to these trends, and have focused the portfolio's positioning to take advantage of those we believe will recover and thrive in a post-COVID-19 world.

On the bright side, the economy has been surprisingly resilient, and strong growth will ease the transition back to normality. REIT stocks remain attractively valued, particularly against the backdrop of Fed actions, improving economic growth, and forever low interest rates. Slow vaccine rollout, new vaccine-resistant strains, and higher 10-year Treasury rates are all risks that could cause the group to deliver uninspiring returns again in 2021.


40



Ten Largest Holdings^

Security description Market
value
 % of net
assets
 

ProLogis, Inc.

 

$

9,695,024

   

7.7

%

 

Equinix, Inc.

  

7,737,426

   

6.1

%

 

Welltower, Inc.

  

4,775,418

   

3.8

%

 

Simon Property Group, Inc.

  

4,560,689

   

3.6

%

 

Digital Realty Trust, Inc.

  

4,324,810

   

3.4

%

 

Public Storage

  

4,318,391

   

3.4

%

 

AvalonBay Communities, Inc.

  

3,806,362

   

3.0

%

 

Ventas, Inc.

  

3,408,084

   

2.7

%

 

Duke Realty Corp.

  

3,341,492

   

2.7

%

 

Invitation Homes, Inc.

  

3,329,370

   

2.6

%

 
  

$

49,297,066

   

39.0

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


41



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Real Estate Securities Fund,
FTSE NAREIT Equity REITs Index, and Consumer Price Index (CPI)

On the chart above you can see how the SFT Real Estate Securities Fund's Class 2 shares total return compared to the FTSE NAREIT Equity REITs Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2010 through December 31, 2020, 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.

FTSE NAREIT Equity REITs Index is a broad-based index consisting of real estate investment trusts.


42



SFT T. Rowe Price Value Fund

Mark Finn, CFA, CPA
Portfolio Manager T. Rowe Price

Fund Objective

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 Securian Asset 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.

Performance Update

The Fund generated a total net return of 10.06 percent over the 12 months ending December 31, 2020, outperforming the Russell 1000 Value Index which returned 2.80 percent over the same period.

What influenced the Fund's return during the past 12 months?

Overall, outperformance was driven by stock selection and, to a lesser extent, sector allocation.

The information technology sector was the leading contributor to relative results due to stock selection, particularly Microsoft. During the year, shares of Microsoft rose as the company reported robust growth within its Intelligent Cloud segment. Additionally, investors appeared to prioritize Microsoft's solid fundamentals, defensible business model, and attractive growth potential. Health care also contributed to relative returns due to beneficial security choices. An underweight allocation and stock selection in the energy sector boosted relative performance.

Conversely, the consumer staples sector was the main detractor from relative returns due to security selection, notably Tyson Foods. Shares of Tyson Foods plummeted in the first quarter and struggled to recover during the remainder of the year as the company grappled with a shift from commercial to residential consumption. Shares were also pressured due to reports of COVID-19 outbreaks at numerous plants. Stock selection in the consumer discretionary sector also weighed on relative results, although an underweight allocation moderated losses.

What other market conditions or events influenced the Fund's return during the last 12 months?

U.S. stocks rose for the one-year period, despite the COVID-19 pandemic and related economic dislocations. Equities declined sharply at the beginning of the year as COVID-19 spreads quickly in the U.S., prompting government officials to close schools, non-essential businesses, and public facilities. Stocks rebounded during the second quarter, driven by the Federal Reserve's and federal government's massive stimulus efforts, as well as slowing global COVID-19 infection rates. The rebound continued during much of the third quarter, as a faster-than-expected rebound in the economy coupled with reports of progress in developing several possible COVID-19 vaccines and treatments boosted stocks. During the final months of the year, stocks benefited from reduced political uncertainty as former Vice President Joe Biden defeated incumbent President Donald Trump in the November 3 presidential election. Stocks also received a major boost following positive announcements in the development and eventual distribution of approved COVID-19 vaccines.


43



What strategies and techniques did you employ that affected Fund performance?

The portfolio buys and holds fundamentally strong, attractively valued companies that have potential for better performance. Our holdings are typically higher-quality companies that generate strong free cash flow and trade for less than our estimated sum-of-the-parts valuation. Leaning into cyclicality during the early parts of 2020 ultimately benefited our relative performance.

What will affect the Fund going forward?

We expect the cyclical rally to continue into 2021 as the vaccines are rolled out. Throughout the year, we have kept our focus on keeping the quality of the portfolio high while increasing cyclical exposure during the second half of 2020. Leaning into cyclicality ultimately benefited our clients, as the portfolio has continued to outperform the Fund's benchmark since September, when value stocks began to lead growth stocks.

In a scenario where the economy continues to normalize, value is likely to outperform given a higher concentration of cyclically sensitive companies. The potential for rate stabilization combined with consumer strength provides the prospect for financials to rebound. Given where the market stands, and the large valuation disparities between value and growth names, we are confident our portfolio is positioned well to withstand a variety of market environments, including a potential cyclical rally. Long term, our focus remains on avoiding secular risk and keeping the quality of the portfolio high.


44



Ten Largest Holdings^

Security description

 Market
value
 % of net
assets
 

Morgan Stanley

 

$

9,371,615

   

4.5

%

 

Alphabet, Inc.—Class C

  

9,036,197

   

4.4

%

 

Microsoft Corp.

  

6,244,442

   

3.0

%

 

NextEra Energy, Inc.

  

5,958,063

   

2.9

%

 

QUALCOMM, Inc.

  

5,712,902

   

2.8

%

 

ProLogis, Inc.

  

5,290,850

   

2.6

%

 

Danaher Corp.

  

5,009,479

   

2.4

%

 

General Electric Co.

  

4,433,616

   

2.1

%

 

Thermo Fisher Scientific, Inc.

  

4,387,182

   

2.1

%

 

Applied Materials, Inc.

  

4,170,447

   

2.0

%

 
  

$

59,614,793

   

28.8

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


45



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT T. Rowe Price Value Fund,
the Russell 1000 Value Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT T. Rowe Price Value Fund's shares total return compared to the Russell 1000 Value 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, 2020, 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.

Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.


46



SFT Wellington Core Equity Fund

Mammen Chally, CFA, David A. Siegle, CFA and Douglas W. McLane, CFA Portfolio Managers Wellington Management Company LLC

Fund Objective

The SFT Wellington Core Equity Fund seeks long-term capital appreciation. The Fund pursues its objective by investing primarily in a diversified portfolio of common stocks. Securian Asset Management, Inc. acts as the investment adviser for the Fund, Wellington Management Company LLP 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.

Performance Update

The Fund's Class 2 shares generated a total net return of 17.96 percent over the period ending December 31, 2020, underperforming the S&P 500® Index, which returned 18.40 percent over the same period.

What influenced the Fund's return during the past 12 months?

During the period, sector allocation, a fall-out of our bottom-up stock selection process, was the primary driver of positive performance, while security selection slightly detracted. The Fund's underweight position to energy and overweight to health care contributed to relative performance while an underweight to information technology and overweight to consumer staples detracted, partially offsetting results. Weak selection in information technology (not owning Nvidia, underweight to Apple), consumer discretionary (overweights to PVH and VF), and real estate (overweights to Boston Properties and American Tower) was partially offset by stronger selection in consumer staples (overweight to Monster Beverage, not owning Coca-Cola), industrials (not owning Boeing, overweight to FedEx), and utilities (overweight to NextEra Energy, not owning Dominion Energy).

What other market conditions or events influenced the Fund's performance during the past 12 months?

United States (U.S.) equities, as measured by the S&P 500® Index posted positive results over the trailing 12-month period ending December 31, 2020. U.S. equities ended the first quarter sharply lower after achieving record highs in February, as COVID-19 spreads rapidly throughout the country, causing unprecedented market disruptions and financial damage, and heightening fears of a severe economic downturn. Many states adopted extraordinary measures to fight the contagion, while companies shuttered stores and production, withdrew earnings guidance, and drew down credit lines at a record pace as borrowing costs soared. Volatility surged to extreme levels, and the S&P 500® Index suffered its fastest-ever decline into a bear market. U.S. equities ended the second-quarter higher after an extraordinary rally drove U.S. stocks to their largest quarterly gain since the fourth quarter of 1998. The unprecedented scale of the fiscal and monetary stimulus implemented by Congress and the U.S. Federal Reserve (Fed) in response to the pandemic was the most influential driver of the market's rebound in the second quarter. Risk sentiment eased at the end of the quarter on concerns about a sharp rise in infections in some southern and western states, the rapid speed of the market's rebound, and cautious economic-outlook comments from the Fed.

In the third-quarter, U.S. equities extended their strong rally, with markets bolstered by substantial monetary support from the Fed, a broadening U.S. economic recovery, better-than-expected corporate earnings, and promising trials for COVID-19 vaccines. The U.S. economy gradually recovered during the quarter; however, the path to a sustainable economic recovery was clouded by concerns about a resurgence in COVID-19 infections in many areas of the country, an undetermined timeline for vaccines, high unemployment, elevated debt burdens, and uncertainty about additional fiscal stimulus. In September, the S&P 500® Index declined for the first time in five months. The Fed signaled that it expects to hold interest rates near zero until inflation is on track to moderately


47



exceed 2 percent. During the fourth-quarter U.S. equities rallied, bolstered by better-than-expected third-quarter earnings, economic resilience, substantial monetary support from the U.S. Federal Reserve (Fed), and optimism that vaccines will support a broad reopening of the U.S. economy in 2021. A sharp escalation in COVID-19 infections across the country and renewed restrictions to curb the spread of the virus were overshadowed by highly encouraging vaccine developments. In December, the government unveiled a long-awaited fifth stimulus package, worth approximately $900 billion. The Fed committed to purchasing at least $120 billion of U.S. government debt per month. Joe Biden was elected president after a closely contested election, removing a key element of uncertainty for the market. Third-quarter earnings results for companies in the S&P 500® Index were significantly better than expected.

What strategies and techniques did you employ that affected Fund performance?

Over the period, the Fund increased exposure to health care and financials while we decreased exposure to information technology and communication services. We established a new position in Texas Instruments, a U.S.-based semiconductor design and manufacturing company. Overall, we are positive on semiconductors as they could serve as leaders during the recovery due to broad geographical exposure, continued investment in infrastructure spending (5G), and the true technology edges. Texas Instruments is also a high quality company with a clean balance sheet and strong competitive position.

We eliminated our position in U.S. REIT, Boston Properties. Due to the stay-at-home policies during the period, physical occupancy within the company's properties has been low. The company has formed a Heath and Security Task Force to prepare buildings for re-occupancy. Earnings per share for the third quarter of 2020 were lower year-over-year. The company has had to write-off accrued rent and accounts receivable of tenants primarily in the retail, fitness, and entertainment sectors.

What will affect the Fund going forward?

As of this writing, the Georgia runoff election for the U.S. Senate is now complete, and it appears the control of the U.S. Senate will flip to the democrats. As time passes, we will consider the various policy implications from this event given the alignment of majorities for both legislative houses and the presidency. As far as we can tell, the administration's initial focus will be on COVID-19 containment, stimulus, and economic reopening. There is also a lot of talk around infrastructure. We are assuming most of these initiatives are largely financed with borrowings by the government. Depending on how this plays out relative to the rest of the world, it seems to suggest U.S. Dollar weakness, higher rates, or some combination of the two.

It is encouraging that we have started vaccinating the population even if the pace of the initial roll out has been disappointing relative to earlier expectations. Despite worries about different strains, at least so far, we remain optimistic of putting the pandemic behind us this year. Given the efficacy of the various vaccines there still may be some lasting lifestyle changes and we are mindful of that. Despite that, we expect unemployment rates to come down in 2021 as a recovery takes hold, especially in some of the hardest-hit industries.

On the cautious side, we are very mindful of pockets of extreme speculation and valuations that are hard to justify. In some of these cases, access to this very cheap capital can accelerate the business model from the original plan. On the positive side, the combination of a high savings rate, stimulus payments, and rehiring more recently implies a very healthy consumer when the economic recovery takes shape.

As always, we continue to focus on the long term. While we did make some changes, we continue to be incremental and mindful of the impact of volatility.


48



Ten Largest Holdings^

Security description Market
value
 % of stock
portfolio
 

Apple, Inc.

 

$

7,279,241

   

5.6

%

 

Amazon.com, Inc.

  

5,761,509

   

4.4

%

 

Alphabet, Inc.—Class A

  

5,561,127

   

4.3

%

 

Microsoft Corp.

  

4,963,525

   

3.8

%

 

The Walt Disney Co.

  

3,471,228

   

2.7

%

 

Facebook, Inc.—Class A

  

3,371,614

   

2.6

%

 

JPMorgan Chase & Co.

  

3,003,681

   

2.3

%

 

The Procter & Gamble Co.

  

2,995,406

   

2.3

%

 

UnitedHealth Group, Inc.

  

2,772,827

   

2.1

%

 

Bank of America Corp.

  

2,523,125

   

1.9

%

 
  

$

41,703,283

   

32.0

%

 

^Excludes short-term investments.

Sector Diversification (shown as a percentage of net assets)


49



Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Wellington Core Equity Fund,
the S&P 500
® Index and Consumer Price Index (CPI)

On the chart above you can see how the SFT Wellington 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, 2020, 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.


50



Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees
Securian Funds Trust:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of SFT Core Bond Fund, SFT Dynamic Managed Volatility Fund, SFT Government Money Market Fund, SFT Index 400 Mid-Cap Fund, SFT Index 500 Fund, SFT International Bond Fund, SFT IvySM Growth Fund, SFT IvySM Small Cap Growth Fund, SFT Managed Volatility Equity Fund, SFT Real Estate Securities Fund, SFT T. Rowe Price Value Fund, and SFT Wellington Core Equity Fund (collectively, the Funds), including the schedules of investments in securities, as of December 31, 2020, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each Fund as of December 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2020, by correspondence with custodians and brokers, or other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

  

We have served as the auditor of one or more Securian Funds Trust investment companies since 1985.

Minneapolis, Minnesota
February 18, 2021


51



SFT Core Bond Fund
Investments in Securities

December 31, 2020

(Percentages of each investment category relate to total net assets)

  

Principal

 

Value(a)

 

Long-Term Debt Securities (99.3%)

 

Government Obligations (23.5%)

 

Other Government Obligations (1.7%)

 
Provincial or Local Government
Obligations (1.7%)
 
Douglas County Public
Utility District No. 1,
5.450%, 09/01/40
 

$

1,185,000

  

$

1,645,846

  
Municipal Electric
Authority of Georgia,
6.655%, 04/01/57
  

1,176,000

   

1,817,673

  
Ohio State Water
Development Authority,
4.817%, 12/01/30
  

250,000

   

308,572

  
Port Authority of
New York & New Jersey
 

4.458%, 10/01/62

  

1,150,000

   

1,529,891

  

4.926%, 10/01/51

  

2,055,000

   

2,861,629

  
Texas A&M University,
4.000%, 05/15/31
  

325,000

   

367,770

  
     

8,531,381

  
U.S. Government Agencies and
Obligations (21.8%)
 
Federal Home Loan Mortgage Corporation
(FHLMC) (4.4%)
 
0.803%, 01/25/23
(1-Month USD LIBOR +
0.650%) (b)
  

39,137

   

39,189

  
1.098%, 10/25/29
(1-Month USD LIBOR +
0.950%) (b)
  

450,000

   

419,792

  

2.500%, 03/01/28

  

321,288

   

339,850

  

2.500%, 04/01/28

  

117,045

   

123,724

  

3.000%, 08/01/42

  

396,756

   

430,620

  

3.000%, 12/01/42

  

161,602

   

175,368

  

3.000%, 01/01/43

  

216,594

   

235,683

  

3.000%, 02/01/43

  

521,140

   

569,936

  

3.000%, 04/01/43

  

807,356

   

876,292

  

3.000%, 10/25/46

  

132,782

   

132,484

  
3.448%, 10/25/27
(1-Month USD LIBOR +
3.300%) (b)
  

895,441

   

918,293

  

3.500%, 10/01/25

  

122,569

   

130,093

  

3.500%, 05/01/32

  

163,959

   

177,265

  

3.500%, 03/01/42

  

666,336

   

726,975

  

3.500%, 08/01/42

  

511,514

   

559,364

  

3.500%, 05/25/45

  

565,387

   

570,083

  
3.598%, 10/25/29
(1-Month USD LIBOR +
3.450%) (b)
  

4,000,000

   

4,131,146

  

4.000%, 09/01/40

  

541,716

   

602,100

  

4.000%, 11/01/40

  

1,080,096

   

1,211,056

  

4.000%, 02/01/41

  

233,576

   

258,130

  

4.000%, 03/01/41

  

244,360

   

274,355

  

4.500%, 04/01/23

  

11,269

   

12,180

  

4.500%, 09/01/40

  

86,188

   

95,423

  

4.500%, 01/01/41

  

460,196

   

516,738

  

4.500%, 02/01/41

  

223,185

   

249,736

  

4.500%, 03/01/41

  

485,527

   

545,188

  

4.500%, 04/01/41

  

421,631

   

473,433

  
  

Principal

 

Value(a)

 
4.698%, 10/25/24
(1-Month USD LIBOR +
4.550%) (b)
 

$

85,571

  

$

87,761

  
4.948%, 05/25/28
(1-Month USD LIBOR +
4.800%) (b)
  

1,335,409

   

1,388,657

  

5.000%, 03/01/23

  

6,708

   

7,406

  

5.000%, 05/01/29

  

19,311

   

21,543

  

5.000%, 04/01/35

  

86,421

   

95,947

  

5.000%, 08/01/35

  

42,909

   

49,865

  

5.000%, 11/01/35

  

78,520

   

91,326

  

5.000%, 11/01/39

  

443,368

   

515,578

  

5.000%, 04/01/40

  

123,342

   

140,987

  

5.000%, 08/01/40

  

95,686

   

109,916

  

5.500%, 11/01/23

  

60,154

   

67,116

  

5.500%, 05/01/34

  

486,200

   

569,879

  

5.500%, 10/01/34

  

176,466

   

206,668

  

5.500%, 07/01/35

  

173,130

   

201,362

  

5.500%, 10/01/35

  

208,583

   

245,013

  

5.500%, 12/01/38

  

120,100

   

140,095

  
5.700%, 07/25/28
(1-Month USD LIBOR +
5.550%) (b)
  

2,385,871

   

2,489,670

  

6.000%, 09/01/22

  

9,311

   

9,568

  

6.000%, 11/01/33

  

248,718

   

298,922

  

6.250%, 12/15/23

  

19,043

   

20,146

  

6.500%, 09/01/32

  

23,961

   

28,472

  

6.500%, 11/01/32

  

23,251

   

27,192

  

6.500%, 06/01/36

  

148,208

   

178,552

  

7.000%, 12/01/37

  

38,148

   

45,231

  
     

21,831,368

  
Federal National Mortgage Association
(FNMA) (5.4%)
 

2.500%, 03/01/27

  

183,207

   

193,505

  

2.500%, 11/01/27

  

310,986

   

324,407

  

2.500%, 03/01/28

  

205,860

   

217,358

  

2.500%, 07/01/28

  

289,293

   

305,990

  

3.000%, 06/01/22

  

29,193

   

30,588

  

3.000%, 09/01/22

  

22,267

   

23,331

  

3.000%, 11/01/27

  

130,877

   

137,489

  

3.000%, 06/01/28

  

115,221

   

122,739

  

3.000%, 09/01/42

  

111,488

   

121,003

  

3.000%, 01/01/46

  

293,180

   

308,739

  

3.500%, 11/01/25

  

142,533

   

151,308

  

3.500%, 01/01/26

  

173,730

   

184,427

  

3.500%, 12/01/32

  

140,831

   

152,247

  

3.500%, 11/01/40

  

370,516

   

409,404

  

3.500%, 01/01/41

  

460,850

   

502,986

  

3.500%, 02/01/41

  

606,868

   

660,571

  

3.500%, 04/01/41

  

251,488

   

275,004

  

3.500%, 11/01/41

  

1,650,024

   

1,812,020

  

3.500%, 12/01/41

  

377,266

   

406,914

  

3.500%, 05/01/42

  

165,743

   

181,154

  

3.500%, 01/01/43

  

399,558

   

434,076

  

3.500%, 02/01/43

  

398,538

   

442,318

  

3.500%, 05/01/43

  

1,462,374

   

1,609,643

  
3.798%, 09/25/29
(1-Month USD LIBOR +
3.650%) (b)
  

187,705

   

192,091

  

4.000%, 06/25/23

  

33,108

   

33,680

  

4.000%, 12/01/40

  

75,822

   

82,919

  

See accompanying notes to financial statements.
52



SFT Core Bond Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 

4.000%, 04/01/41

 

$

917,717

  

$

1,020,034

  

4.000%, 09/01/41

  

337,922

   

373,375

  

4.000%, 11/01/41

  

164,938

   

180,950

  

4.000%, 06/01/42

  

474,197

   

522,327

  

4.000%, 09/01/43

  

297,602

   

326,492

  
4.448%, 02/25/25
(1-Month USD LIBOR +
4.300%) (b)
  

1,068,721

   

1,089,302

  

4.500%, 04/01/21

  

150

   

158

  

4.500%, 04/01/25

  

22,769

   

24,206

  

4.500%, 05/25/34

  

537,000

   

625,997

  

4.500%, 05/01/35

  

169,868

   

187,774

  

4.500%, 07/01/35

  

322,949

   

356,201

  

4.500%, 09/01/37

  

127,279

   

140,693

  

4.500%, 06/01/39

  

133,178

   

149,539

  

4.500%, 04/01/41

  

1,142,057

   

1,303,104

  

4.500%, 07/01/41

  

871,151

   

970,659

  

4.500%, 07/01/47

  

335,113

   

371,760

  
4.548%, 01/25/24
(1-Month USD LIBOR +
4.400%) (b)
  

69,710

   

70,267

  
4.598%, 01/25/29
(1-Month USD LIBOR +
4.450%) (b)
  

1,234,508

   

1,285,467

  

5.000%, 06/25/23

  

32,491

   

33,700

  

5.000%, 07/01/23

  

24,552

   

27,108

  

5.000%, 11/01/33

  

148,865

   

171,978

  

5.000%, 03/01/34

  

104,441

   

118,273

  

5.000%, 05/01/34

  

31,031

   

35,971

  

5.000%, 12/01/34

  

153,850

   

177,990

  

5.000%, 07/01/35

  

137,290

   

159,354

  

5.000%, 08/01/35

  

46,876

   

54,503

  

5.000%, 03/01/38

  

73,589

   

85,562

  

5.000%, 04/01/38

  

103,581

   

120,564

  

5.000%, 06/01/39

  

84,252

   

97,747

  

5.000%, 12/01/39

  

338,678

   

394,424

  

5.000%, 06/01/40

  

48,139

   

55,922

  

5.000%, 04/01/41

  

310,586

   

361,117

  

5.500%, 08/01/23

  

15,058

   

16,801

  

5.500%, 02/01/24

  

24,039

   

26,821

  

5.500%, 04/01/33

  

453,830

   

528,153

  

5.500%, 05/01/33

  

6,837

   

7,857

  

5.500%, 12/01/33

  

54,272

   

63,307

  

5.500%, 01/01/34

  

107,737

   

125,706

  

5.500%, 02/01/34

  

116,223

   

134,083

  

5.500%, 03/01/34

  

191,541

   

223,471

  

5.500%, 04/01/34

  

98,725

   

114,617

  

5.500%, 05/01/34

  

4,368

   

4,892

  

5.500%, 09/01/34

  

140,455

   

159,453

  

5.500%, 10/01/34

  

42,500

   

49,691

  

5.500%, 01/01/35

  

72,059

   

84,760

  

5.500%, 02/01/35

  

206,475

   

238,708

  

5.500%, 04/01/35

  

194,602

   

228,265

  

5.500%, 06/01/35

  

35,501

   

40,151

  

5.500%, 08/01/35

  

107,623

   

125,347

  

5.500%, 10/01/35

  

284,690

   

334,721

  

5.500%, 11/01/35

  

53,933

   

63,589

  

5.500%, 09/01/36

  

91,223

   

106,814

  

5.500%, 12/01/39

  

63,519

   

74,159

  

6.000%, 08/01/23

  

22,337

   

23,289

  

6.000%, 09/01/32

  

10,123

   

11,972

  

6.000%, 10/01/32

  

367,394

   

438,216

  

6.000%, 11/01/32

  

344,673

   

409,432

  

6.000%, 03/01/33

  

300,584

   

358,726

  
  

Principal

 

Value(a)

 

6.000%, 04/01/33

 

$

11,637

  

$

13,072

  

6.000%, 12/01/33

  

98,688

   

118,350

  

6.000%, 08/01/34

  

36,364

   

42,850

  

6.000%, 09/01/34

  

16,041

   

19,280

  

6.000%, 11/01/34

  

12,136

   

13,881

  

6.000%, 12/01/34

  

82,696

   

99,305

  

6.000%, 11/01/36

  

11,012

   

13,139

  

6.000%, 01/01/37

  

105,370

   

125,708

  

6.000%, 08/01/37

  

68,118

   

80,495

  

6.000%, 12/01/37

  

2,062

   

2,315

  

6.000%, 10/01/38

  

111,630

   

131,743

  

6.500%, 11/01/23

  

14,686

   

15,404

  

6.500%, 12/01/31

  

50,135

   

59,384

  

6.500%, 02/01/32

  

162,392

   

193,500

  

6.500%, 04/01/32

  

109,762

   

128,705

  

6.500%, 05/01/32

  

25,906

   

29,534

  

6.500%, 07/01/32

  

218,507

   

256,650

  

6.500%, 08/01/32

  

87,760

   

102,701

  

6.500%, 09/01/32

  

55,197

   

64,726

  

6.500%, 10/01/32

  

75,611

   

89,100

  

6.500%, 09/01/34

  

9,486

   

10,979

  

6.500%, 11/01/34

  

3,303

   

3,891

  

6.500%, 03/01/35

  

61,645

   

72,941

  

6.500%, 02/01/36

  

6,708

   

7,516

  

6.500%, 09/01/37

  

62,578

   

73,203

  

6.500%, 11/01/37

  

39,406

   

47,491

  

7.000%, 07/01/31

  

47,524

   

57,699

  

7.000%, 09/01/31

  

144,431

   

170,327

  

7.000%, 11/01/31

  

145,153

   

168,365

  

7.000%, 02/01/32

  

68,963

   

81,853

  

7.000%, 03/01/32

  

14,495

   

17,374

  

7.000%, 07/01/32

  

53,120

   

61,817

  

7.000%, 10/01/37

  

15,037

   

16,155

  

7.500%, 07/25/22

  

2,857

   

2,900

  

7.500%, 04/01/31

  

51,651

   

57,906

  

7.500%, 05/01/31

  

19,078

   

21,938

  
     

26,673,627

  
Government National Mortgage Association
(GNMA) (2.0%)
 

0.004%, 06/17/45 (b) (c)

  

337,198

   

34

  

0.643%, 07/16/40 (b) (c)

  

18,864

   

  

1.000%, 12/20/42

  

67,808

   

66,283

  

3.000%, 03/15/45

  

850,809

   

891,987

  

3.000%, 04/15/45

  

1,363,720

   

1,429,533

  

3.000%, 05/15/45

  

109,646

   

115,622

  

3.250%, 04/20/33

  

126,238

   

133,871

  

3.250%, 03/20/35

  

996,366

   

1,056,657

  

3.250%, 11/20/35

  

503,487

   

533,288

  

3.250%, 01/20/36

  

858,769

   

909,602

  

3.500%, 11/15/40

  

63,878

   

68,487

  

3.500%, 04/20/46

  

585,512

   

627,956

  

3.750%, 03/20/46

  

730,337

   

813,140

  

4.000%, 07/20/31

  

295,925

   

319,650

  

4.000%, 04/20/39

  

202,896

   

219,091

  

4.000%, 12/20/40

  

587,513

   

666,694

  

4.000%, 01/15/41

  

34,324

   

37,464

  

4.000%, 02/15/41

  

249,712

   

281,237

  

4.000%, 10/15/41

  

176,395

   

194,481

  

4.000%, 12/20/44

  

87,529

   

96,563

  

4.500%, 06/15/40

  

167,676

   

189,202

  

5.000%, 05/15/33

  

51,388

   

57,738

  

5.000%, 12/15/39

  

65,825

   

76,517

  

See accompanying notes to financial statements.
53



SFT Core Bond Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 

5.000%, 01/15/40

 

$

639,139

  

$

725,093

  

5.000%, 07/15/40

  

175,445

   

199,884

  

5.500%, 07/15/38

  

174,011

   

203,335

  

5.500%, 10/15/38

  

258,143

   

304,126

  

8.500%, 10/15/22

  

4,217

   

4,234

  
     

10,221,769

  

U.S. Treasury (10.0%)

 

U.S. Treasury Bond

 

1.125%, 08/15/40

  

2,988,000

   

2,828,796

  

1.250%, 05/15/50

  

11,155,000

   

10,119,676

  

5.375%, 02/15/31 (d)

  

5,115,000

   

7,353,212

  

U.S. Treasury Note

 

0.250%, 05/31/25

  

7,682,000

   

7,667,296

  

0.250%, 07/31/25

  

1,550,000

   

1,545,459

  

0.250%, 10/31/25

  

615,000

   

612,357

  

0.375%, 03/31/22

  

600,000

   

601,898

  

0.500%, 05/31/27

  

5,020,000

   

5,002,352

  

0.500%, 08/31/27

  

1,975,000

   

1,962,965

  

0.625%, 11/30/27

  

5,050,000

   

5,049,211

  

0.625%, 08/15/30

  

3,500,000

   

3,412,500

  

0.875%, 11/15/30

  

1,500,000

   

1,495,078

  

1.500%, 01/31/27

  

1,500,000

   

1,589,883

  

2.250%, 02/15/27 (d)

  

150,000

   

165,803

  

2.750%, 02/15/28

  

200,000

   

229,352

  
     

49,635,838

  

Vendee Mortgage Trust (0.0%)

 
Vendee Mortgage Trust,
7.793%, 02/15/25
  

17,951

   

19,447

  
Total government obligations
(cost: $111,033,067)
    

116,913,430

  

Asset-Backed Securities (14.9%)

 
AmeriCredit Automobile
Receivables Trust
2.740%, 12/08/22
  

1,250,000

   

1,261,964

  

3.180%, 07/18/23

  

3,250,000

   

3,348,680

  
Bank of The West
Auto Trust,
3.210%, 04/15/25 (e)
  

2,293,000

   

2,343,115

  
Bear Stearns Asset
Backed Securities Trust,
1.123%, 02/25/34
(1-Month USD LIBOR +
0.975%) (b)
  

361,951

   

354,344

  
CarMax Auto Owner Trust,
2.950%, 11/15/23
  

1,950,000

   

2,013,257

  
Chase Funding Trust
0.708%, 02/25/33
(1-Month USD LIBOR +
0.560%) (b)
  

150,059

   

141,723

  
0.788%, 08/25/32
(1-Month USD LIBOR +
0.640%) (b)
  

94,443

   

90,773

  

Chesapeake Funding II LLC

 

3.260%, 11/15/29 (e)

  

375,000

   

380,198

  

3.380%, 08/15/29 (e)

  

275,000

   

277,102

  

3.570%, 04/15/30 (e)

  

1,200,000

   

1,224,921

  

3.710%, 05/15/29 (e)

  

1,925,000

   

1,934,557

  
Commonbond Student
Loan Trust
 

2.550%, 05/25/41 (e)

  

250,952

   

257,727

  

5.280%, 05/25/41 (e)

  

36,048

   

39,359

  
  

Principal

 

Value(a)

 
Commonbond Student
Loan Trust 2018-A-GS
0.648%, 02/25/44
(1-Month USD LIBOR +
0.500%) (b) (e)
 

$

500,376

  

$

495,376

  

3.210%, 02/25/44 (e)

  

1,296,927

   

1,346,087

  
Commonbond Student
Loan Trust 2019-A-GS,
2.540%, 01/25/47 (e)
  

2,927,083

   

3,000,865

  
Drive Auto Receivables
Trust
 

3.530%, 12/15/23 (e)

  

294,589

   

299,018

  

3.990%, 01/15/25

  

3,325,000

   

3,402,053

  

5.300%, 07/15/24 (e)

  

1,045,000

   

1,060,448

  
Earnest Student Loan
Program LLC
 

2.650%, 01/25/41 (e)

  

1,896,006

   

1,922,389

  

2.720%, 01/25/41 (e)

  

166,296

   

167,775

  

3.020%, 05/25/34 (e)

  

207,628

   

208,685

  
Exeter Automobile
Receivables Trust
2016-2, 8.250%,
04/17/23 (e)
  

1,203,983

   

1,207,627

  
Foursight Capital
Automobile Receivables
Trust, 5.280%,
08/15/24 (e)
  

3,850,000

   

3,868,280

  
GM Financial Consumer
Automobile Receivables
Trust, 2.770%, 07/17/23
  

800,000

   

813,690

  
Home Partners of America
2018-1 Trust, 1.053%,
07/17/37 (1-Month USD
LIBOR + 0.900%) (b) (e)
  

1,215,398

   

1,212,680

  
Invitation Homes
2018-SFR1 Trust
1.403%, 03/17/37
(1-Month USD LIBOR +
1.250%) (b) (e)
  

3,500,000

   

3,497,109

  
1.603%, 03/17/37
(1-Month USD LIBOR +
1.450%) (b) (e)
  

999,636

   

999,636

  
Invitation Homes
2018-SFR3 Trust
1.153%, 07/17/37
(1-Month USD LIBOR +
1.000%) (b) (e)
  

1,966,191

   

1,966,191

  
1.803%, 07/17/37
(1-Month USD LIBOR +
1.650%) (b) (e)
  

1,500,000

   

1,501,865

  
Invitation Homes
2018-SFR4 Trust,
1.553%, 01/17/38
(1-Month USD LIBOR +
1.400%) (b) (e)
  

5,050,000

   

5,049,998

  
Invitation Homes Trust,
1.439%, 06/17/37
(1-Month USD LIBOR +
1.280%) (b) (e)
  

1,500,000

   

1,495,425

  
Kubota Credit Owner
Trust 2020-2, 0.410%,
06/15/23 (e)
  

2,150,000

   

2,152,379

  

See accompanying notes to financial statements.
54



SFT Core Bond Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 
Morgan Stanley Dean
Witter Capital I, Inc.,
0.708%, 08/25/32
(1-Month USD LIBOR +
0.560%) (b)
 

$

178,343

  

$

172,873

  
Navient Private Education
Loan Trust, 1.310%,
01/15/69 (e)
  

2,250,000

   

2,272,881

  
Progress Residential
2018-SFR1 Trust,
3.684%, 03/17/35 (e)
  

500,000

   

500,774

  
Progress Residential
2019-SFR2 Trust,
3.446%, 05/17/36 (e)
  

2,500,000

   

2,575,858

  
Progress Residential Trust,
3.565%, 08/17/34 (e)
  

1,525,000

   

1,542,828

  
Saxon Asset Securities
Trust, 0.688%, 03/25/35
(1-Month USD LIBOR +
0.540%) (b)
  

270,238

   

255,144

  
Sofi Professional Loan
Program 2017-F LLC,
2.840%, 01/25/41 (e)
  

1,068,028

   

1,091,672

  
Sofi Professional Loan
Program 2018-A LLC,
2.950%, 02/25/42 (e)
  

1,054,781

   

1,076,845

  
SoFi Professional Loan
Program LLC, 2.650%,
09/25/40 (e)
  

798,500

   

822,677

  
Towd Point
Mortgage Trust
 

3.000%, 06/25/58 (b) (e)

  

3,118,328

   

3,309,332

  

3.750%, 04/25/55 (b) (e)

  

2,505,000

   

2,698,436

  

4.188%, 11/25/57 (b) (e)

  

3,154,000

   

3,438,445

  
Tricon American Homes
Trust, 1.832%,
11/17/39 (e)
  

975,000

   

968,014

  
Volvo Financial
Equipment LLC
Series 2018-1, 3.060%,
12/15/25 (e)
  

1,300,000

   

1,317,684

  
Westlake Automobile
Receivables Trust
2017-2, 4.630%,
07/15/24 (e)
  

2,550,000

   

2,561,516

  
Total asset-backed securities
(cost: $73,057,099)
    

73,940,275

  

Other Mortgage-Backed Securities (10.9%)

 
Collateralized Mortgage Obligations/Mortgage
Revenue Bonds (5.9%)
 
Agate Bay Mortgage Trust,
3.793%, 01/25/45 (b) (e)
  

199,779

   

205,394

  
Bear Stearns Mortgage
Securities, Inc.,
8.000%, 11/25/29
  

36,232

   

18,806

  
Bellemeade Re 2018-1,
Ltd., 1.748%, 04/25/28
(1-Month USD LIBOR +
1.600%) (b) (e) (f)
  

961,413

   

959,922

  
Bellemeade Re 2018-3,
Ltd., 1.998%, 10/25/28
(1-Month USD LIBOR +
1.850%) (b) (e) (f)
  

2,073,741

   

2,069,730

  
  

Principal

 

Value(a)

 
Citigroup Mortgage Loan
Trust, Inc., 3.000%,
09/25/64 (b) (e)
 

$

327,208

  

$

346,062

  
COLT 2019-2 Mortgage
Loan Trust, 3.337%,
05/25/49 (b) (e)
  

1,414,400

   

1,422,851

  

CSMC Trust

 

3.313%, 08/25/43 (b) (e)

  

2,666,825

   

2,695,826

  

3.500%, 06/25/47 (b) (e)

  

2,550,000

   

2,627,714

  
Eagle RE 2020-1 Ltd.,
1.598%, 01/25/30 (b) (e)
  

4,725,000

   

4,664,641

  
GS Mortgage-Backed
Securities Trust,
2.993%, 07/25/44 (b) (e)
  

2,110,021

   

1,932,818

  

JP Morgan Mortgage Trust

 

2.530%, 11/25/33 (b)

  

81,760

   

80,802

  

3.347%, 10/25/46 (b) (e)

  

285,649

   

290,507

  

3.398%, 06/25/29 (b) (e)

  

171,549

   

175,920

  

3.560%, 10/25/45 (b) (e)

  

1,375,000

   

1,369,479

  

3.611%, 05/25/43 (b) (e)

  

226,553

   

226,447

  
MRFC Mortgage
Pass-Through Trust
Series 1998-2,
6.750%, 06/25/28
  

4,609

   

4,690

  
Prudential Home
Mortgage Securities,
7.639%, 09/28/24 (b) (e)
  

310

   

299

  
PSMC Trust, 3.500%,
02/25/48 (b) (e)
  

677,853

   

680,738

  
Radnor RE 2019-1, Ltd.,
2.098%, 02/25/29
(1-Month USD LIBOR +
1.950%) (b) (e) (f)
  

726,645

   

726,769

  
Seasoned Credit Risk
Transfer Trust
4.000%, 07/25/56 (b)
  

2,602,000

   

2,617,904

  

4.000%, 08/25/56 (b) (e)

  

1,200,000

   

1,216,356

  
Sequoia Mortgage Trust
3.163%, 11/25/30 (b) (e)
  

494,056

   

500,750

  

3.512%, 06/25/43 (b)

  

1,233,388

   

1,254,040

  

3.711%, 07/25/45 (b) (e)

  

376,743

   

389,613

  

3.868%, 01/25/45 (b) (e)

  

279,821

   

286,624

  
Structured Asset Mortgage
Investments, Inc.,
6.750%, 05/02/30 (b)
  

9,498

   

398

  
WinWater Mortgage Loan
Trust 2015-4, 3.703%,
06/20/45 (b) (e)
  

2,429,007

   

2,479,063

  
     

29,244,163

  
Commercial Mortgage-Backed
Securities (5.0%)
 
BAMLL Commercial
Mortgage Securities
Trust 2014-520M,
4.185%, 08/15/46 (b) (e)
  

1,350,000

   

1,583,799

  
BB-UBS Trust, 4.026%,
11/05/36 (b) (e)
  

1,000,000

   

950,100

  
CFCRE Commercial
Mortgage Trust,
3.839%, 12/10/54
  

500,000

   

567,050

  

See accompanying notes to financial statements.
55



SFT Core Bond Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 
Citigroup Commercial
Mortgage Trust
2018-TBR, 0.989%,
12/15/36 (1-Month USD
LIBOR + 0.830%) (b) (e)
 

$

4,000,000

  

$

3,924,953

  
CSMC Trust, 3.304%,
09/15/37 (e)
  

357,244

   

357,398

  
Hometown Commercial
Mortgage, 6.057%,
06/11/39 (e)
  

28,292

   

13,111

  
Irvine Core Office Trust,
2.068%, 05/15/48 (e)
  

132,974

   

134,870

  
JPMCC Commercial
Mortgage Securities
Trust, 3.723%, 03/15/50
  

1,000,000

   

1,142,312

  
Morgan Stanley Bank of
America Merrill Lynch
Trust, 3.720%, 12/15/49
  

225,000

   

257,582

  
Morgan Stanley Capital I
Trust, 3.451%,
08/05/34 (e)
  

700,000

   

695,877

  
One Market Plaza Trust,
3.614%, 02/10/32 (e)
  

2,500,000

   

2,590,814

  
UBS Commercial
Mortgage Trust
 

3.580%, 12/15/50

  

3,500,000

   

3,971,075

  

3.724%, 06/15/50

  

2,750,000

   

3,044,133

  

4.061%, 12/15/50 (b)

  

1,505,000

   

1,731,240

  
Wells Fargo Commercial
Mortgage Trust
3.184%, 04/15/50
  

1,544,000

   

1,688,836

  

3.637%, 06/15/48

  

1,905,000

   

2,127,102

  
     

24,780,252

  
Total other mortgage-backed securities
(cost: $52,847,238)
    

54,024,415

  

Corporate Obligations (50.0%)

 

Basic Materials (0.3%)

 

Chemicals (0.3%)

 
Albemarle Corp., 1.271%,
11/15/22 (3-Month USD
LIBOR + 1.050%) (b)
  

1,530,000

   

1,526,376

  

Communications (3.0%)

 

Media (1.1%)

 
Comcast Corp., 3.300%,
04/01/27
  

2,120,000

   

2,410,641

  
The Walt Disney Co.,
3.600%, 01/13/51
  

2,750,000

   

3,328,872

  
     

5,739,513

  

Telecommunication (1.9%)

 

AT&T, Inc.

 

2.300%, 06/01/27

  

650,000

   

693,250

  

3.550%, 09/15/55 (e)

  

4,012,000

   

3,998,380

  

3.650%, 06/01/51

  

650,000

   

680,610

  
Crown Castle Towers LLC,
3.222%, 05/15/42 (e)
  

2,375,000

   

2,400,267

  
Verizon Communications,
Inc., 1.321%, 05/15/25
(3-Month USD LIBOR +
1.100%) (b)
  

1,500,000

   

1,540,276

  
     

9,312,783

  
  

Principal

 

Value(a)

 

Consumer Cyclical (1.8%)

 

Auto/Truck Parts & Equipment — Original (1.5%)

 
Ford Motor Credit Co. LLC,
5.750%, 02/01/21
 

$

2,190,000

  

$

2,195,475

  
General Motors Financial
Co., Inc., 1.080%,
04/09/21 (3-Month USD
LIBOR + 0.850%) (b)
  

1,650,000

   

1,651,004

  
Hyundai Capital America
2.850%, 11/01/22 (e)
  

3,000,000

   

3,108,895

  

3.250%, 09/20/22 (e)

  

625,000

   

650,700

  
     

7,606,074

  

Retail (0.3%)

 
AutoZone, Inc.,
3.625%, 04/15/25
  

1,375,000

   

1,540,225

  

Consumer, Non-cyclical (3.2%)

 

Agricultural Operations (0.2%)

 
Bunge, Ltd. Finance Corp.,
1.630%, 08/17/25
  

1,000,000

   

1,033,514

  

Agricultural Products (0.3%)

 
Altria Group, Inc.,
5.800%, 02/14/39
  

955,000

   

1,258,283

  

Drugstore Chains (0.8%)

 
CVS Pass-Through Trust
5.298%, 01/11/27 (e)
  

856,987

   

916,505

  

5.880%, 01/10/28

  

308,589

   

349,740

  

6.036%, 12/10/28

  

1,886,347

   

2,191,517

  

6.943%, 01/10/30

  

489,379

   

585,146

  
     

4,042,908

  

Food (0.3%)

 
Ingredion, Inc., 3.900%,
06/01/50
  

1,160,000

   

1,386,834

  

Health Care Products (0.5%)

 
Dentsply Sirona, Inc.,
3.250%, 06/01/30
  

2,465,000

   

2,745,347

  

Pharmaceuticals (0.9%)

 
Johnson & Johnson,
2.250%, 09/01/50
  

1,750,000

   

1,757,825

  
Viatris, Inc.
2.300%, 06/22/27 (e)
  

1,400,000

   

1,490,469

  

3.850%, 06/22/40 (e)

  

1,000,000

   

1,128,672

  
     

4,376,966

  

Public Thoroughfares (0.2%)

 
Transurban Finance Co.
Pty, Ltd., 2.450%,
03/16/31 (e) (f)
  

1,100,000

   

1,153,938

  

Energy (8.4%)

 

Oil & Gas (0.6%)

 
Equinor ASA, 3.000%,
04/06/27 (f)
  

2,800,000

   

3,117,382

  

Oil, Gas & Consumable Fuels (2.0%)

 
HollyFrontier Corp.,
2.625%, 10/01/23
  

1,700,000

   

1,737,410

  

See accompanying notes to financial statements.
56



SFT Core Bond Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 
Marathon Petroleum
Corp., 5.850%, 12/15/45
 

$

2,270,000

  

$

2,805,090

  
Noble Energy, Inc.,
3.900%, 11/15/24
  

2,035,000

   

2,270,909

  
The Williams Cos., Inc.,
3.350%, 08/15/22
  

628,000

   

653,141

  
Valero Energy Corp.,
1.367%, 09/15/23
(3-Month USD LIBOR +
1.150%) (b)
  

2,500,000

   

2,506,372

  
     

9,972,922

  

Pipelines (5.8%)

 

Boardwalk Pipelines L.P.

 

3.400%, 02/15/31

  

450,000

   

469,544

  

4.450%, 07/15/27

  

538,000

   

602,203

  

4.800%, 05/03/29

  

1,095,000

   

1,254,749

  

4.950%, 12/15/24

  

1,000,000

   

1,116,080

  
El Paso Natural Gas Co.
LLC, 8.375%, 06/15/32
  

675,000

   

950,562

  
Enterprise Products
Operating LLC, 3.003%,
06/01/67 (3-Month USD
LIBOR + 2.778%) (b)
  

2,180,000

   

1,870,440

  
EQM Midstream Partners
L.P., 6.500%, 07/15/48
  

975,000

   

1,014,000

  
Gray Oak Pipeline LLC
2.600%, 10/15/25 (e)
  

1,400,000

   

1,442,934

  

3.450%, 10/15/27 (e)

  

1,525,000

   

1,592,888

  
Kinder Morgan Energy
Partners L.P., 5.800%,
03/01/21
  

1,000,000

   

1,008,141

  
MPLX L.P.
1.330%, 09/09/22
(3-Month USD LIBOR +
1.100%) (b)
  

2,230,000

   

2,230,378

  

5.250%, 01/15/25

  

2,450,000

   

2,514,312

  

5.500%, 02/15/49

  

1,700,000

   

2,238,582

  
Sabine Pass Liquefaction
LLC, 4.500%, 05/15/30 (e)
  

825,000

   

977,854

  
Sunoco Logistics Partners
Operations L.P., 6.850%,
02/15/40
  

2,150,000

   

2,531,020

  
Tennessee Gas Pipeline
Co. LLC, 8.375%,
06/15/32
  

1,850,000

   

2,659,414

  
Western Midstream
Operating L.P.
3.950%, 06/01/25
  

2,250,000

   

2,295,000

  

6.250%, 02/01/50

  

1,665,000

   

1,831,500

  
     

28,599,601

  

Financial (14.4%)

 

Banks (9.6%)

 
Athene Global Funding,
3.000%, 07/01/22 (e)
  

1,275,000

   

1,318,462

  
Bank of America Corp.,
3.974%, 02/07/30
(3-Month USD LIBOR +
1.210%) (b)
  

4,040,000

   

4,758,442

  

BBVA USA

 

3.500%, 06/11/21

  

850,000

   

859,603

  

3.875%, 04/10/25

  

2,500,000

   

2,803,475

  
  

Principal

 

Value(a)

 
Citibank NA, 0.824%,
05/20/22 (3-Month USD
LIBOR + 0.600%) (b)
 

$

3,650,000

  

$

3,656,389

  
Citizens Bank NA/
Providence, 1.201%,
03/29/23 (3-Month USD
LIBOR + 0.950%) (b)
  

3,150,000

   

3,190,887

  
Discover Bank, 3.450%,
07/27/26
  

1,900,000

   

2,124,947

  
HSBC Holdings PLC,
3.262%, 03/13/23
(3-Month USD LIBOR +
1.055%) (b) (f)
  

1,875,000

   

1,936,774

  

JPMorgan Chase & Co.

 
3.540%, 05/01/28
(3-Month USD LIBOR +
1.380%) (b)
  

1,500,000

   

1,711,624

  
3.558%, 04/01/21
(3-Month USD LIBOR +
3.320%) (b)
  

1,700,000

   

1,670,148

  
3.684%, 04/30/21
(3-Month USD LIBOR +
3.470%) (b)
  

734,000

   

732,499

  

4.600%, 02/01/25 (b)

  

1,175,000

   

1,213,188

  
Midwest Connector
Capital Co. LLC, 3.625%,
04/01/22 (e)
  

2,300,000

   

2,340,291

  

Morgan Stanley

 

3.125%, 07/27/26

  

800,000

   

894,213

  

5.500%, 07/28/21

  

740,000

   

761,759

  
Regions Financial Corp.,
3.800%, 08/14/23
  

1,675,000

   

1,817,048

  
Synovus Financial Corp.,
3.125%, 11/01/22
  

2,580,000

   

2,678,868

  
The Goldman Sachs
Group, Inc., 0.994%,
10/31/22 (3-Month USD
LIBOR + 0.780%) (b)
  

1,050,000

   

1,054,278

  
Truist Bank, 0.812%,
05/17/22 (3-Month USD
LIBOR + 0.590%) (b)
  

2,850,000

   

2,867,324

  
Truist Financial Corp.,
5.050%, 12/15/24
(3-Month USD LIBOR +
3.102%) (b)
  

1,770,000

   

1,796,550

  
US Bancorp
3.000%, 07/30/29
  

765,000

   

854,431

  
5.300%, 04/15/27
(3-Month USD LIBOR +
2.914%) (b)
  

800,000

   

899,800

  

Wells Fargo & Co.

 

2.393%, 06/02/28 (b)

  

4,125,000

   

4,391,566

  

3.000%, 10/23/26

  

1,100,000

   

1,218,766

  
     

47,551,332

  

Capital Markets (0.4%)

 
Stifel Financial Corp.,
4.000%, 05/15/30
  

1,850,000

   

2,114,065

  

Diversified Financial Services (1.1%)

 
DY7 Leasing LLC,
2.578%, 12/10/25
  

52,377

   

54,784

  
Helios Leasing I LLC,
1.825%, 05/16/25
  

60,188

   

61,681

  

See accompanying notes to financial statements.
57



SFT Core Bond Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 
Pine Street Trust I,
4.572%, 02/15/29 (e)
 

$

1,450,000

  

$

1,719,013

  
The Charles Schwab
Corp., 4.625%, 03/01/22
(3-Month USD LIBOR +
3.315%) (b)
  

2,200,000

   

2,238,500

  
USAA Capital Corp.,
1.500%, 05/01/23 (e)
  

1,250,000

   

1,282,192

  
     

5,356,170

  

Insurance (2.8%)

 
AIG Global Funding,
0.800%, 07/07/23 (e)
  

1,390,000

   

1,403,700

  
Brown & Brown, Inc.,
2.375%, 03/15/31
  

1,100,000

   

1,151,275

  
Equitable Financial Life
Global Funding, 1.400%,
07/07/25 (e)
  

2,450,000

   

2,516,370

  
Kemper Corp., 2.400%,
09/30/30
  

2,785,000

   

2,835,294

  
Teachers Insurance &
Annuity Association of
America, 4.270%,
05/15/47 (e)
  

2,500,000

   

3,126,157

  
Unum Group, 5.750%,
08/15/42
  

2,310,000

   

2,805,310

  
     

13,838,106

  

Real Estate Investment Trust — Office Property (0.4%)

 
SL Green Operating
Partnership L.P., 1.201%,
08/16/21 (3-Month USD
LIBOR + 0.980%) (b)
  

2,000,000

   

1,995,354

  

Real Estate Investment Trust — Residential (0.1%)

 

UDR, Inc., 4.000%, 10/01/25

  

400,000

   

453,941

  

Health Care (1.4%)

 

Health Care Providers & Services (1.4%)

 
NYU Langone Hospitals,
4.428%, 07/01/42
  

1,480,000

   

1,663,603

  
Sinai Health System,
3.034%, 01/20/36
  

1,285,000

   

1,332,321

  
The New York and
Presbyterian Hospital
 

2.256%, 08/01/40

  

3,175,000

   

3,105,609

  

2.606%, 08/01/60

  

650,000

   

641,598

  
     

6,743,131

  

Industrials (1.0%)

 

Aerospace & Defense (0.2%)

 
General Dynamics Corp.,
3.000%, 05/11/21
  

1,150,000

   

1,161,078

  

Machinery (0.3%)

 
Westinghouse Air Brake
Technologies Corp.,
3.200%, 06/15/25
  

1,350,000

   

1,456,460

  

Transportation (0.5%)

 

CSX Corp.

 

4.250%, 11/01/66

  

1,085,000

   

1,452,285

  

4.750%, 11/15/48

  

625,000

   

857,301

  
     

2,309,586

  
  

Principal

 

Value(a)

 

Technology (1.7%)

 

Computers (1.7%)

 

Apple, Inc.

 

0.750%, 05/11/23

 

$

965,000

  

$

976,512

  

1.125%, 05/11/25

  

2,435,000

   

2,504,068

  
Dell International LLC /
EMC Corp., 5.300%,
10/01/29 (e)
  

1,475,000

   

1,808,276

  

Leidos, Inc.

 

2.950%, 05/15/23 (e)

  

1,950,000

   

2,051,609

  

3.625%, 05/15/25 (e)

  

975,000

   

1,090,138

  
     

8,430,603

  

Transportation (4.2%)

 

Airlines (4.2%)

 
Air Canada 2013-1 Class B
Pass Through Trust,
5.375%, 11/15/22 (e) (f)
  

634,631

   

636,104

  
Air Canada 2017-1 Class A
Pass Through Trust,
3.550%, 07/15/31 (e) (f)
  

1,952,280

   

1,709,265

  
American Airlines 2013-1
Class B Pass Through
Trust, 5.625%,
07/15/22 (e)
  

641,452

   

640,119

  
American Airlines 2016-1
Class B Pass Through
Trust, 5.250%, 07/15/25
  

843,291

   

716,134

  
American Airlines 2017-1
Class B Pass Through
Trust, 4.950%, 08/15/26
  

696,500

   

588,898

  
British Airways 2019-1
Class A Pass Through
Trust, 3.350%,
12/15/30 (e)
  

1,389,373

   

1,316,692

  
British Airways 2020-1
Class A Pass Through
Trust, 4.250%,
05/15/34 (e)
  

925,000

   

988,594

  
Delta Air Lines 2015-1
Class B Pass Through
Trust, 4.250%, 01/30/25
  

1,225,728

   

1,253,179

  
Delta Air Lines 2020-1
Class A Pass Through
Trust, 2.500%, 12/10/29
  

1,814,159

   

1,723,208

  
Hawaiian Airlines 2013-1
Class B Pass Through
Certificates, 4.950%,
07/15/23
  

1,754,603

   

1,599,514

  
JetBlue 2020-1 Class A
Pass Through Trust,
4.000%, 05/15/34
  

860,000

   

928,243

  
United Airlines 2014-1
Class B Pass Through
Trust, 4.750%, 10/11/23
  

350,300

   

351,668

  
United Airlines 2014-2
Class B Pass Through
Trust, 4.625%, 03/03/24
  

1,472,063

   

1,481,310

  
United Airlines 2016-1
Class B Pass Through
Trust, 3.650%, 07/07/27
  

919,479

   

901,710

  

See accompanying notes to financial statements.
58



SFT Core Bond Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 
United Airlines 2019-2
Class B Pass Through
Trust, 3.500%, 11/01/29
 

$

1,448,319

  

$

1,352,754

  
United Airlines 2020-1
Class A Pass Through
Trust, 5.875%, 04/15/29
  

2,000,000

   

2,160,425

  
US Airways 2012-2 Class B
Pass Through Trust,
6.750%, 12/03/22
  

1,564,028

   

1,520,547

  
US Airways 2013-1 Class B
Pass Through Trust,
5.375%, 05/15/23
  

997,442

   

949,928

  
     

20,818,292

  

Utilities (10.6%)

 

Electric Companies (0.5%)

 
Indianapolis Power &
Light Co., 4.700%,
09/01/45 (e)
  

1,900,000

   

2,396,862

  

Electric Utilities (6.2%)

 
Cleco Corporate Holdings
LLC, 3.743%, 05/01/26
  

1,125,000

   

1,245,033

  
Entergy Mississippi LLC,
3.250%, 12/01/27
  

1,100,000

   

1,205,687

  
Entergy Texas, Inc.,
3.450%, 12/01/27
  

1,885,000

   

2,060,767

  
Eversource Energy,
3.800%, 12/01/23
  

2,400,000

   

2,627,436

  
Exelon Generation Co.
LLC, 3.250%, 06/01/25
  

1,430,000

   

1,559,289

  
FirstEnergy Transmission
LLC, 5.450%, 07/15/44 (e)
  

2,000,000

   

2,537,727

  
IPALCO Enterprises, Inc.,
3.700%, 09/01/24
  

1,175,000

   

1,280,718

  
MidAmerican Energy Co.,
4.250%, 07/15/49
  

1,750,000

   

2,349,602

  
Pacific Gas and Electric Co.
1.750%, 06/16/22
  

2,000,000

   

2,005,644

  

4.500%, 07/01/40

  

1,500,000

   

1,676,611

  
PacifiCorp, 3.300%,
03/15/51
  

1,410,000

   

1,617,442

  
PPL Capital Funding, Inc.,
2.905%, 03/30/67
(3-Month USD LIBOR +
2.665%) (b)
  

2,175,000

   

1,875,896

  

The AES Corp.

 

1.375%, 01/15/26 (e)

  

620,000

   

625,321

  

3.300%, 07/15/25 (e)

  

1,825,000

   

1,989,250

  
Vistra Operations Co. LLC,
3.700%, 01/30/27 (e)
  

2,550,000

   

2,811,850

  
Xcel Energy, Inc., 3.500%,
12/01/49
  

3,040,000

   

3,553,833

  
     

31,022,106

  
  

Principal

 

Value(a)

 

Electric — Integrated (2.1%)

 
Ameren Corp.,
3.500%, 01/15/31
 

$

2,150,000

  

$

2,480,571

  
Exelon Corp.
4.050%, 04/15/30
  

1,000,000

   

1,183,284

  

4.700%, 04/15/50

  

1,410,000

   

1,874,922

  
Florida Power & Light Co.
0.602%, 07/28/23
(3-Month USD LIBOR +
0.380%) (b)
  

3,200,000

   

3,200,651

  

2.850%, 04/01/25

  

1,450,000

   

1,577,966

  
     

10,317,394

  

Gas Utilities (1.8%)

 
Piedmont Natural Gas
Co., Inc., 3.350%,
06/01/50
  

1,800,000

   

2,009,331

  
Southern Co. Gas
Capital Corp.
3.875%, 11/15/25
  

2,605,000

   

2,923,568

  

4.400%, 05/30/47

  

775,000

   

973,203

  
The East Ohio Gas Co.
1.300%, 06/15/25 (e)
  

1,380,000

   

1,406,120

  

3.000%, 06/15/50 (e)

  

1,685,000

   

1,836,734

  
     

9,148,956

  
Total corporate obligations
(cost: $233,383,987)
    

248,526,102

  
Total long-term debt securities
(cost: $470,321,391)
    

493,404,222

  

Short-Term Securities (0.3%)

 

Investment Companies (0.3%)

 
State Street Institutional
U.S. Government Money
Market Fund, current
rate 0.030%
  

1,570,800

   

1,570,800

  
Total short-term securities
(cost: $1,570,800)
    

1,570,800

  
Total investments in securities
(cost: $471,892,191) (g)
    

494,975,022

  
Cash and other assets in
excess of liabilities (0.4%)
    

2,037,607

  

Total net assets (100.0%)

   

$

497,012,629

  

See accompanying notes to financial statements.
59



SFT Core 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)  Variable rate security.

(c)  Interest-only security that entitles holders to receive only interest on the underlying mortgages. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The yield to maturity of an interest-only security is sensitive to the rate of principal payments on the underlying mortgage assets. The rate disclosed represents the market yield based upon the current cost basis and estimated timing and amount of future cash flows.

(d)  Fully or partially pledged as initial margin deposits on open futures contracts.

Holdings of Open Futures Contracts

On December 31, 2020, securities with an aggregate market value of $1,548,113 have been pledged to cover margin requirements for the following open futures contracts:

Description

 Expiration
Date
 Number of
Contracts
 Position
Type
 Notional
Amount
 Market
Value
 Unrealized
Appreciation/
(Depreciation)(a)
 

5 Year U.S. Treasury Note

 

March 2021

  

167

  

Long

 

$

21,029,358

  

$

21,069,399

  

$

40,041

  

10 Year U.S. Ultra

 

March 2021

  

125

  

Short

  

(19,661,787

)

  

(19,544,922

)

  

116,865

  

U.S. Long Bond

 

March 2021

  

252

  

Long

  

44,204,991

   

43,643,250

   

(561,741

)

 

U.S. Ultra Bond

 

March 2021

  

58

  

Short

  

(12,627,082

)

  

(12,386,625

)

  

240,457

  
          

$

32,781,102

  

$

(164,378

)

 

(e)  Security sold within terms of a private placement memorandum exempt from registration pursuant to Rule 144A under 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.

(f)  Foreign security: The Fund held 2.5% of net assets in foreign securities at December 31, 2020.

(g)  At December 31, 2020 the cost of investments for federal income tax purposes was $471,868,524. The aggregate unrealized appreciation and depreciation of investments based on this cost were:

Gross unrealized appreciation

 

$

27,481,617

  

Gross unrealized depreciation

  

(4,539,497

)

 

Net unrealized appreciation

 

$

22,942,120

  

See accompanying notes to financial statements.
60



SFT Dynamic Managed Volatility Fund
Investments in Securities

December 31, 2020

(Percentages of each investment category relate to total net assets)

  

Principal

 

Value(a)

 

Long-Term Debt Securities (27.7%)

 

Government Obligations (2.4%)

 
U.S. Government Agencies and
Obligations (2.4%)
 
Federal Home Loan Mortgage
Corporation (FHLMC) (0.1%)
 

3.000%, 09/01/43

 

$

90,311

  

$

96,063

  

3.500%, 10/01/44

  

121,397

   

130,150

  

3.500%, 11/01/44

  

116,928

   

125,339

  

3.500%, 12/01/44

  

125,598

   

134,603

  
     

486,155

  
Federal National Mortgage Association
(FNMA) (0.1%)
 

3.000%, 04/01/43

  

148,124

   

157,857

  

3.000%, 05/01/43

  

54,687

   

57,932

  

3.000%, 06/01/43

  

199,351

   

212,517

  

3.500%, 08/01/42

  

83,181

   

90,963

  

3.500%, 02/01/43

  

99,634

   

110,580

  
     

629,849

  

U.S. Treasury (2.2%)

 
U.S. Treasury Note,
2.625%, 12/15/21 (b)
  

15,000,000

   

15,356,836

  
Total government obligations
(cost: $16,018,860)
    

16,472,840

  

Other Mortgage-Backed Securities (0.2%)

 

Commercial Mortgage-Backed Securities (0.2%)

 
Bank 2019-BNK18,
3.584%, 05/15/62
  

1,500,000

   

1,736,682

  
Total other mortgage-backed securities
(cost: $1,544,239)
    

1,736,682

  

Corporate Obligations (25.1%)

 

Basic Materials (0.2%)

 

Chemicals (0.2%)

 
Nutrien, Ltd.,
3.000%, 04/01/25 (c)
  

1,000,000

   

1,080,153

  

Mining (0.0%)

 
BHP Billiton Finance USA,
Ltd., 2.875%, 02/24/22 (c)
  

122,000

   

125,480

  

Communications (1.7%)

 

Cable/Satellite TV (0.4%)

 

Comcast Corp.

 

4.200%, 08/15/34 (b)

  

500,000

   

626,645

  

4.650%, 07/15/42 (b)

  

250,000

   

338,734

  

6.400%, 05/15/38

  

1,000,000

   

1,557,942

  
     

2,523,321

  

Diversified Telecommunication Services (0.7%)

 

AT&T, Inc.

 

2.550%, 12/01/33 (d)

  

943,000

   

966,705

  

3.550%, 09/15/55 (d)

  

1,405,000

   

1,400,230

  

3.800%, 12/01/57 (d)

  

75,000

   

78,370

  

4.500%, 05/15/35

  

1,000,000

   

1,213,436

  
Verizon Communications,
Inc., 2.987%, 10/30/56 (d)
  

1,194,000

   

1,201,896

  
     

4,860,637

  
  

Principal

 

Value(a)

 

Internet & Catalog Retail (0.2%)

 
Amazon.com, Inc.,
3.875%, 08/22/37
 

$

1,000,000

  

$

1,247,469

  

Media (0.2%)

 

ViacomCBS, Inc.

 

3.500%, 01/15/25

  

750,000

   

822,771

  

4.000%, 01/15/26

  

250,000

   

286,126

  
     

1,108,897

  

Telecommunication (0.2%)

 
Crown Castle Towers LLC,
3.663%, 05/15/45 (d)
  

1,000,000

   

1,077,093

  
Vodafone Group PLC,
4.125%, 05/30/25 (c)
  

500,000

   

571,748

  
     

1,648,841

  

Wireless Telecommunication Services (0.0%)

 
Rogers Communications,
Inc., 4.100%, 10/01/23 (c)
  

250,000

   

273,372

  

Consumer Cyclical (0.7%)

 

Auto/Truck Parts & Equipment — Original (0.1%)

 
Harley-Davidson Financial
Services, Inc.,
3.550%, 05/21/21 (d)
  

575,000

   

581,306

  

Food & Staples Retailing (0.2%)

 
The Kroger Co.,
4.450%, 02/01/47
  

1,000,000

   

1,258,469

  

Home Furnishings (0.1%)

 
Harman International
Industries, Inc.,
4.150%, 05/15/25
  

1,000,000

   

1,113,477

  

Retail (0.3%)

 
AutoZone, Inc.,
3.250%, 04/15/25
  

1,000,000

   

1,095,678

  
Target Corp.,
3.500%, 07/01/24 (b)
  

750,000

   

830,271

  
     

1,925,949

  

Consumer Staples (0.8%)

 

Beverages (0.1%)

 
The Coca-Cola Co.,
3.200%, 11/01/23 (b)
  

500,000

   

542,113

  

Consumer Products — Miscellaneous (0.1%)

 
Johnson (S.C.) & Son, Inc.,
3.350%, 09/30/24 (d)
  

750,000

   

806,330

  

Food Products (0.2%)

 
General Mills, Inc.,
4.150%, 02/15/43
  

1,000,000

   

1,250,015

  

Household Products (0.2%)

 
Kimberly-Clark Corp.,
3.900%, 05/04/47
  

1,000,000

   

1,295,724

  

Personal Care (0.2%)

 
The Estee Lauder Cos.,
Inc., 4.150%, 03/15/47
  

1,000,000

   

1,312,177

  

See accompanying notes to financial statements.
61



SFT Dynamic Managed Volatility Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 

Consumer, Non-cyclical (1.6%)

 

Beverages (0.2%)

 
Anheuser-Busch InBev
Worldwide, Inc.,
4.375%, 04/15/38
 

$

1,000,000

  

$

1,238,198

  

Commercial Service — Finance (0.0%)

 
Moody's Corp.,
4.875%, 02/15/24
  

250,000

   

281,507

  

Diagnostic Equipment (0.4%)

 

Abbott Laboratories

 

3.875%, 09/15/25

  

750,000

   

858,984

  

4.750%, 11/30/36

  

1,000,000

   

1,375,519

  

4.750%, 04/15/43

  

250,000

   

351,060

  
     

2,585,563

  

Drugstore Chains (0.0%)

 
CVS Pass-Through Trust,
6.943%, 01/10/30
  

149,201

   

178,398

  

Food (0.4%)

 
Mars, Inc.,
3.950%, 04/01/49 (d)
  

1,000,000

   

1,274,264

  
Tyson Foods, Inc.,
5.150%, 08/15/44
  

1,000,000

   

1,379,989

  
     

2,654,253

  

Pharmaceuticals (0.6%)

 
AbbVie, Inc.,
3.800%, 03/15/25
  

670,000

   

747,169

  
Bristol-Myers Squibb Co.,
3.875%, 08/15/25
  

1,000,000

   

1,140,791

  
Novartis Capital Corp.,
3.400%, 05/06/24 (b)
  

500,000

   

548,503

  
Takeda Pharmaceutical
Co., Ltd., 5.000%,
11/26/28 (c)
  

1,000,000

   

1,242,500

  
     

3,678,963

  

Energy (3.0%)

 

Oil & Gas (0.7%)

 
Baker Hughes a GE Co.
LLC / Baker Hughes
Co-Obligor, Inc.,
3.337%, 12/15/27
  

1,000,000

   

1,120,292

  
BP Capital Markets
America, Inc., 4.234%,
11/06/28
  

1,000,000

   

1,195,078

  
Cimarex Energy Co.,
3.900%, 05/15/27
  

1,000,000

   

1,102,138

  
Valero Energy Corp.,
4.350%, 06/01/28
  

1,000,000

   

1,138,205

  
     

4,555,713

  

Oil, Gas & Consumable Fuels (0.8%)

 
Chevron Corp.,
3.191%, 06/24/23 (b)
  

250,000

   

265,891

  
EOG Resources, Inc.,
2.625%, 03/15/23
  

250,000

   

260,891

  
Marathon Petroleum Corp.,
3.625%, 09/15/24
  

750,000

   

818,467

  
  

Principal

 

Value(a)

 
Noble Energy, Inc.,
3.900%, 11/15/24
 

$

1,000,000

  

$

1,115,926

  
Phillips 66,
4.650%, 11/15/34
  

1,000,000

   

1,211,536

  
Total Capital International
SA, 3.750%, 04/10/24 (c)
  

750,000

   

829,220

  
Valero Energy Corp.,
3.650%, 03/15/25
  

1,000,000

   

1,094,068

  
     

5,595,999

  

Pipelines (1.5%)

 
Columbia Pipeline Group,
Inc., 4.500%, 06/01/25
  

1,000,000

   

1,150,036

  
Energy Transfer Operating
L.P., 4.900%, 03/15/35
  

1,000,000

   

1,100,962

  
Enterprise Products
Operating LLC,
5.750%, 03/01/35
  

250,000

   

315,243

  
Florida Gas Transmission
Co. LLC, 4.350%,
07/15/25 (d)
  

1,000,000

   

1,135,632

  
Kinder Morgan, Inc.,
5.300%, 12/01/34
  

750,000

   

924,282

  
Magellan Midstream
Partners L.P., 4.200%,
10/03/47
  

1,000,000

   

1,138,993

  
MPLX L.P., 5.250%,
01/15/25
  

500,000

   

513,125

  
Plains All American
Pipeline L.P./PAA
Finance Corp., 3.850%,
10/15/23
  

250,000

   

267,305

  
Southern Natural Gas Co.
LLC, 4.800%, 03/15/47 (d)
  

1,500,000

   

1,744,424

  
Sunoco Logistics Partners
Operations L.P., 4.250%,
04/01/24
  

1,000,000

   

1,082,779

  

The Williams Cos., Inc.

 

3.750%, 06/15/27

  

500,000

   

570,518

  

4.300%, 03/04/24

  

500,000

   

550,950

  
     

10,494,249

  

Financial (7.7%)

 

Banks (2.9%)

 
Associated Banc-Corp.,
4.250%, 01/15/25
  

750,000

   

812,657

  

Bank of America Corp.

 

3.950%, 04/21/25

  

1,000,000

   

1,127,289

  

4.183%, 11/25/27

  

1,000,000

   

1,160,086

  
4.244%, 04/24/38
(3-Month USD LIBOR +
1.814%) (e)
  

1,000,000

   

1,231,916

  

5.700%, 01/24/22

  

250,000

   

264,214

  
Capital One Financial
Corp.
 

4.250%, 04/30/25

  

1,500,000

   

1,712,121

  

4.750%, 07/15/21

  

250,000

   

255,833

  

Citigroup, Inc.

 

3.300%, 04/27/25

  

750,000

   

831,722

  
3.980%, 03/20/30
(3-Month USD LIBOR +
1.338%) (e)
  

1,000,000

   

1,176,008

  

See accompanying notes to financial statements.
62



SFT Dynamic Managed Volatility Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 
Discover Bank, 4.250%,
03/13/26
 

$

500,000

  

$

575,235

  
Fifth Third Bank, 3.950%,
07/28/25
  

1,000,000

   

1,142,349

  
JPMorgan Chase & Co.,
3.125%, 01/23/25
  

1,000,000

   

1,095,259

  
KeyBank NA, 3.180%,
10/15/27
  

1,000,000

   

1,036,838

  
PNC Bank NA 

2.450%, 07/28/22

  

1,000,000

   

1,032,753

  

3.800%, 07/25/23

  

250,000

   

271,013

  

4.050%, 07/26/28

  

1,000,000

   

1,184,945

  
Regions Financial Corp.,
3.800%, 08/14/23
  

2,000,000

   

2,169,609

  
Synchrony Bank, 3.000%,
06/15/22
  

1,000,000

   

1,032,630

  
The Goldman Sachs
Group, Inc., 3.850%,
01/26/27
  

1,000,000

   

1,141,195

  
Truist Bank, 2.750%,
05/01/23
  

250,000

   

263,287

  
     

19,516,959

  

Capital Markets (0.3%)

 
E*TRADE Financial Corp.,
2.950%, 08/24/22
  

1,000,000

   

1,038,834

  
The Bank of New York
Mellon Corp., 3.442%,
02/07/28 (3-Month USD
LIBOR + 1.069%) (e)
  

1,000,000

   

1,141,859

  
     

2,180,693

  

Diversified Financial Services (1.0%)

 
American Express Credit
Corp., 3.300%, 05/03/27
  

1,000,000

   

1,140,944

  
CME Group, Inc., 3.000%,
03/15/25
  

1,000,000

   

1,096,343

  
Discover Financial
Services, 3.750%,
03/04/25
  

1,000,000

   

1,100,597

  
Eaton Vance Corp.,
3.500%, 04/06/27
  

1,000,000

   

1,122,887

  
Pine Street Trust I,
4.572%, 02/15/29 (d)
  

1,500,000

   

1,778,290

  
TD Ameritrade Holding
Corp., 2.950%, 04/01/22
  

700,000

   

720,294

  
     

6,959,355

  

Insurance (1.5%)

 
American Financial Group,
Inc., 4.500%, 06/15/47
  

1,000,000

   

1,208,752

  
Assured Guaranty US
Holdings, Inc., 5.000%,
07/01/24
  

500,000

   

571,772

  
First American Financial
Corp., 4.600%, 11/15/24
  

750,000

   

831,276

  
Liberty Mutual Group,
Inc., 4.250%, 06/15/23 (d)
  

750,000

   

816,040

  
Manulife Financial Corp.,
4.150%, 03/04/26 (c)
  

750,000

   

872,371

  
Marsh & McLennan Cos.,
Inc., 4.350%, 01/30/47
  

1,000,000

   

1,324,918

  
  

Principal

 

Value(a)

 
Metropolitan Life Global
Funding I, 3.875%,
04/11/22 (d)
 

$

250,000

  

$

261,288

  
Old Republic International
Corp., 4.875%, 10/01/24
  

750,000

   

855,092

  
Pacific Life Insurance Co.,
4.300%, 10/24/67
(3-Month USD LIBOR +
2.796%) (d) (e)
  

1,000,000

   

1,135,000

  
StanCorp Financial Group,
Inc., 5.000%, 08/15/22
  

750,000

   

797,940

  
The Hanover Insurance
Group, Inc., 4.500%,
04/15/26
  

1,000,000

   

1,167,477

  
     

9,841,926

  

Property / Casualty Insurance (0.2%)

 
Arch Capital Finance LLC,
4.011%, 12/15/26 (b)
  

1,000,000

   

1,162,789

  

Real Estate Investment Trust — Diversified (0.1%)

 
Retail Properties of
America, Inc., 4.000%,
03/15/25 (b)
  

1,000,000

   

1,023,975

  

Real Estate Investment Trust — Health Care (0.8%)

 
Healthcare Realty Trust,
Inc., 3.875%, 05/01/25
  

1,000,000

   

1,107,852

  
Healthcare Trust of
America Holdings L.P.,
3.750%, 07/01/27
  

1,000,000

   

1,133,554

  
Physicians Realty L.P.,
4.300%, 03/15/27
  

1,000,000

   

1,108,270

  
Welltower, Inc., 4.125%,
03/15/29
  

1,500,000

   

1,749,862

  
     

5,099,538

  

Real Estate Investment Trust — Office Property (0.1%)

 
Alexandria Real Estate
Equities, Inc., 4.500%,
07/30/29
  

500,000

   

610,352

  

Real Estate Investment Trust — Residential (0.1%)

 
UDR, Inc., 4.000%,
10/01/25
  

750,000

   

851,139

  

Real Estate Investment Trust — Shopping Centers (0.0%)

 
Retail Opportunity
Investments Partnership
L.P., 5.000%, 12/15/23
  

250,000

   

268,119

  

Real Estate Investment Trust — Single Tenant (0.2%)

 
Office Properties Income
Trust, 4.500%, 02/01/25
  

750,000

   

794,638

  
Tanger Properties L.P.,
3.875%, 12/01/23
  

500,000

   

519,328

  
     

1,313,966

  

Real Estate Investment Trust — Storage (0.1%)

 
CubeSmart L.P., 4.375%,
12/15/23
  

500,000

   

547,198

  

See accompanying notes to financial statements.
63



SFT Dynamic Managed Volatility Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 

Specialized REITs (0.4%)

 
American Tower Corp.,
3.375%, 10/15/26
 

$

1,000,000

  

$

1,123,352

  
Essex Portfolio L.P.,
3.500%, 04/01/25
  

1,000,000

   

1,108,033

  
Goodman US Finance
Four LLC, 4.500%,
10/15/37 (d)
  

500,000

   

582,348

  
Healthpeak Properties,
Inc., 4.250%, 11/15/23
  

13,000

   

14,229

  
     

2,827,962

  

Health Care (1.5%)

 

Health Care Providers & Services (0.6%)

 
Aetna, Inc., 3.875%,
08/15/47
  

1,000,000

   

1,192,674

  
Anthem, Inc., 4.375%,
12/01/47
  

1,000,000

   

1,288,922

  
Laboratory Corp. of
America Holdings,
4.000%, 11/01/23
  

250,000

   

272,247

  

UnitedHealth Group, Inc.

 

2.750%, 02/15/23 (b)

  

250,000

   

261,629

  

3.750%, 07/15/25 (b)

  

1,000,000

   

1,139,336

  
     

4,154,808

  

Pharmaceuticals (0.9%)

 
AbbVie, Inc., 3.600%,
05/14/25
  

1,000,000

   

1,114,088

  
Bristol-Myers Squibb Co.,
3.250%, 11/01/23
  

500,000

   

542,139

  
Cardinal Health, Inc.,
3.750%, 09/15/25
  

1,000,000

   

1,128,985

  
Eli Lilly & Co., 3.950%,
05/15/47
  

1,000,000

   

1,278,068

  
Mead Johnson Nutrition
Co., 5.900%, 11/01/39
  

1,000,000

   

1,483,385

  
Mylan, Inc., 4.200%,
11/29/23
  

500,000

   

546,739

  
     

6,093,404

  

Industrials (3.6%)

 

Aerospace & Defense (0.9%)

 
General Dynamics Corp.,
3.500%, 05/15/25
  

1,000,000

   

1,117,802

  
L3Harris Technologies,
Inc., 3.832%, 04/27/25
  

1,000,000

   

1,122,404

  
Raytheon Technologies
Corp.
 

3.700%, 12/15/23

  

500,000

   

543,690

  

4.050%, 05/04/47

  

1,000,000

   

1,245,736

  

4.125%, 11/16/28

  

1,500,000

   

1,788,245

  
     

5,817,877

  

Air Freight & Logistics (0.2%)

 
FedEx Corp., 4.400%,
01/15/47
  

1,000,000

   

1,263,522

  

Building Products (0.2%)

 
CRH America Finance, Inc.,
4.400%, 05/09/47 (d)
  

1,000,000

   

1,228,399

  
  

Principal

 

Value(a)

 

Containers & Packaging (0.2%)

 
Amcor Finance USA, Inc.,
4.500%, 05/15/28
 

$

1,000,000

  

$

1,194,680

  

Electrical Equipment (0.2%)

 
Flex. Ltd., 4.750%,
06/15/25 (c)
  

1,000,000

   

1,135,028

  

Electronic Parts Distributions (0.2%)

 
Avnet, Inc., 3.750%,
12/01/21
  

1,500,000

   

1,536,276

  

Environmental Control (0.3%)

 
Republic Services, Inc.,
3.950%, 05/15/28
  

1,000,000

   

1,172,660

  
Waste Management, Inc.,
3.900%, 03/01/35
  

1,000,000

   

1,224,459

  
     

2,397,119

  

Industrial Conglomerates (0.2%)

 

3M Co., 3.625%, 10/15/47

  

1,000,000

   

1,192,372

  

Machinery (0.3%)

 
Caterpillar Financial
Services Corp.
2.850%, 05/17/24
  

1,000,000

   

1,076,496

  

3.750%, 11/24/23 (b)

  

750,000

   

822,877

  
     

1,899,373

  

Miscellaneous Manufacturing (0.4%)

 
Carlisle Cos., Inc.,
3.750%, 12/01/27
  

1,000,000

   

1,131,467

  
Textron, Inc.
3.875%, 03/01/25
  

750,000

   

824,033

  

4.300%, 03/01/24

  

500,000

   

549,133

  
     

2,504,633

  

Road & Rail (0.0%)

 
Kansas City Southern,
4.300%, 05/15/43
  

250,000

   

293,989

  

Transportation (0.2%)

 
Burlington Northern
Santa Fe LLC, 3.750%,
04/01/24
  

350,000

   

383,666

  
Penske Truck Leasing Co.
L.P. / PTL Finance Corp.,
3.900%, 02/01/24 (d)
  

1,000,000

   

1,091,972

  
     

1,475,638

  

Trucking & Leasing (0.3%)

 

GATX Corp.

 

3.250%, 03/30/25

  

1,000,000

   

1,097,422

  

4.550%, 11/07/28

  

1,000,000

   

1,207,182

  
     

2,304,604

  

Information Technology (1.0%)

 

Communications Equipment (0.2%)

 
QUALCOMM, Inc.,
4.650%, 05/20/35
  

1,000,000

   

1,337,703

  

See accompanying notes to financial statements.
64



SFT Dynamic Managed Volatility Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 

Computers (0.2%)

 
Apple, Inc., 4.375%,
05/13/45 (b)
 

$

1,000,000

  

$

1,370,466

  

Interactive Media & Services (0.1%)

 
eBay, Inc., 3.450%,
08/01/24
  

750,000

   

819,275

  

IT Services (0.1%)

 
Global Payments, Inc.,
4.800%, 04/01/26
  

750,000

   

890,041

  

Software (0.4%)

 
Fiserv, Inc., 3.850%,
06/01/25
  

1,000,000

   

1,127,207

  
Oracle Corp., 3.800%,
11/15/37
  

1,000,000

   

1,207,847

  
     

2,335,054

  

Materials (0.6%)

 

Chemicals (0.4%)

 
The Dow Chemical Co.,
3.500%, 10/01/24
  

496,000

   

543,315

  
The Mosaic Co., 5.450%,
11/15/33
  

200,000

   

248,651

  
The Sherwin-Williams Co.,
3.950%, 01/15/26
  

1,000,000

   

1,143,756

  
Yara International ASA,
4.750%, 06/01/28 (c) (d)
  

1,000,000

   

1,185,807

  
     

3,121,529

  

Construction Materials (0.2%)

 
Vulcan Materials Co.,
4.500%, 06/15/47
  

1,000,000

   

1,238,779

  

Transportation (0.4%)

 

Airlines (0.2%)

 
American Airlines 2015-2
Class A Pass Through
Trust, 4.000%, 03/22/29
  

786,862

   

730,997

  
British Airways 2013-1
Class A Pass Through
Trust, 4.625%,
12/20/25 (d)
  

624,848

   

621,358

  
United Airlines 2013-1
Class A Pass Through
Trust, 4.300%, 02/15/27
  

175,701

   

177,454

  
     

1,529,809

  

Transport — Rail (0.2%)

 
Norfolk Southern Corp.,
3.850%, 01/15/24
  

500,000

   

545,624

  
Union Pacific Corp.,
3.750%, 03/15/24
  

500,000

   

546,435

  
     

1,092,059

  

Utilities (2.3%)

 

Electric Utilities (1.1%)

 
Ameren Illinois Co.,
3.700%, 12/01/47
  

1,000,000

   

1,226,068

  
Arizona Public Service Co.,
4.350%, 11/15/45
  

1,000,000

   

1,288,859

  
  

Principal

 

Value(a)

 
Duke Energy Progress LLC,
3.600%, 09/15/47
 

$

1,000,000

  

$

1,211,649

  
Entergy Louisiana LLC,
3.300%, 12/01/22
  

250,000

   

262,075

  
Northern States Power
Co., 3.750%, 12/01/47
  

1,000,000

   

1,212,974

  
Oglethorpe Power Corp.,
4.250%, 04/01/46
  

800,000

   

849,859

  
Oklahoma Gas & Electric
Co., 4.150%, 04/01/47
  

1,000,000

   

1,232,584

  
PPL Capital Funding, Inc.,
3.400%, 06/01/23
  

250,000

   

265,498

  
     

7,549,566

  

Electric — Integrated (0.0%)

 
Berkshire Hathaway
Energy Co., 3.750%,
11/15/23
  

250,000

   

272,224

  

Gas Utilities (0.7%)

 
National Fuel Gas Co.,
4.750%, 09/01/28
  

1,000,000

   

1,073,509

  

ONEOK, Inc.

 

4.000%, 07/13/27

  

500,000

   

557,522

  

4.350%, 03/15/29

  

1,500,000

   

1,701,148

  
Washington Gas Light Co.,
3.796%, 09/15/46
  

1,000,000

   

1,192,578

  
     

4,524,757

  

Multi-Utilities (0.2%)

 
Dominion Energy Gas
Holdings LLC, 3.550%,
11/01/23
  

250,000

   

269,370

  
National Fuel Gas Co.,
5.200%, 07/15/25
  

1,000,000

   

1,122,038

  
     

1,391,408

  

Water Utilities (0.3%)

 
American Water Capital
Corp., 3.750%, 09/01/47
  

1,000,000

   

1,224,800

  
Aquarion Co., 4.000%,
08/15/24 (d)
  

500,000

   

546,581

  
     

1,771,381

  
Total corporate obligations
(cost: $148,358,495)
    

170,156,317

  
Total long-term debt securities
(cost: $165,921,594)
    

188,365,839

  

Mutual Funds (36.9%)

 

Investment Companies (36.9%)

 
iShares iBoxx $
Investment Grade
Corporate Bond ETF
  

44,500

   

6,146,785

  

SFT Index 500 Fund (f)

  

14,224,618

   

223,777,991

  
SPDR S&P 500 ETF
Trust (b)
  

36,170

   

13,523,240

  

Vanguard S&P 500 ETF

  

20,175

   

6,933,946

  
Total mutual funds
(cost: $123,653,387)
    

250,381,962

  

See accompanying notes to financial statements.
65



SFT Dynamic Managed Volatility Fund
Investments in Securities – continued

  

Principal

 

Value(a)

 

Short-Term Securities (32.8%)

 

Investment Companies (32.8%)

 
State Street Institutional
U.S. Government Money
Market Fund, current
rate 0.030%
 

$

222,112,587

  

$

222,112,587

  
Total short-term securities
(cost: $222,112,587)
    

222,112,587

  
Total investments excluding
purchased options (97.4%)
(cost: $511,687,568)
    

660,860,388

  
Total purchased options
outstanding (0.1%)
(cost: $379,942)
    

338,818

  
Total investments in securities
(cost: $512,067,510) (g)
    

661,199,206

  
Cash and other assets in
excess of liabilities (2.5%)
    

16,988,730

  

Total net assets (100.0%)

   

$

678,187,936

  

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, 2020, securities with an aggregate market value of $30,778,213 have been pledged to cover margin requirements for the following open futures contracts:

Description

 Expiration
Date
 Number of
Contracts
 Position
Type
 Notional
Amount
 Market
Value
 Unrealized
Appreciation/
(Depreciation)(a)
 

S&P 500 E-Mini Index Future

 

March 2021

  

746

  

Long

 

$

138,032,875

  

$

139,830,240

  

$

1,797,365

  

(c)  Foreign security: The Fund held 1.1% of net assets in foreign securities at December 31, 2020.

(d)  Security sold within terms of a private placement memorandum exempt from registration pursuant to Rule 144A under 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)  Affiliated security.

(g)  At December 31, 2020 the cost of investments for federal income tax purposes was $513,839,554. The aggregate unrealized appreciation and depreciation of investments based on this cost were:

Gross unrealized appreciation

 

$

149,225,120

  

Gross unrealized depreciation

  

(77,908

)

 

Net unrealized appreciation

 $

149,147,212

  

See accompanying notes to financial statements.
66



SFT Dynamic Managed Volatility Fund
Investments in Securities – continued

Put Options Purchased:

The Fund had the following put options purchased open at December 31, 2020:

Description

 

Exercise Price

 

Expiration Date

 

Number of Contracts

 

Notional Amount

 

Value(a)

 

CBOE Volatility Index

 

$

21

  

January 2021

  

2,018

  

$

201,800

  

$

203,818

  

CBOE Volatility Index

  

20

  

January 2021

  

2,250

   

225,000

   

135,000

  
          

$

338,818

  

Put Options Written:

The Fund had the following put options written open at December 31, 2020:

Description

 

Exercise Price

 

Expiration Date

 

Number of Contracts

 

Notional Amount

 

Value(a)

 

CBOE Volatility Index

 

$

11

  

January 2021

  

1,961

  

$

196,100

  

$

(9,805

)

 

See accompanying notes to financial statements.
67



SFT Government Money Market Fund
Investments in Securities

December 31, 2020

(Percentages of each investment category relate to total net assets)

  

Principal

 

Value(a)

 

Short-Term Securities (100.3%)

 

U.S. Government Obligations (91.9%)

 

Discount Notes (91.9%)

 
Federal Home Loan Bank (91.9%)
0.060%, 01/11/21 (b)
 

$

15,000,000

  

$

14,999,729

  

0.061%, 01/14/21 (b)

  

20,000,000

   

19,999,531

  

0.073%, 01/27/21 (b)

  

25,000,000

   

24,998,646

  

0.079%, 02/11/21 (b)

  

15,000,000

   

14,998,633

  

0.079%, 02/17/21 (b)

  

15,000,000

   

14,998,433

  

0.080%, 03/10/21 (b)

  

1,400,000

   

1,399,788

  

0.085%, 02/24/21 (b)

  

15,000,000

   

14,998,088

  

0.088%, 01/27/21 (b)

  

5,000,000

   

4,999,675

  

0.090%, 04/23/21 (b)

  

3,000,000

   

2,999,160

  

0.091%, 01/15/21 (b)

  

6,500,000

   

6,499,757

  

0.091%, 05/19/21 (b)

  

10,000,000

   

9,996,550

  

U.S. Treasury Bill

 

0.063%, 02/25/21

  

30,000,000

   

29,997,113

  

0.079%, 02/04/21

  

10,000,000

   

9,999,244

  

0.094%, 01/14/21

  

10,000,000

   

9,999,640

  

Total U.S. government obligations

    

180,883,987

  
  

Shares

 

Value(a)

 

Investment Companies (8.4%)

 
State Street Institutional
U.S. Government Money
Market Fund, current
rate 0.030%
  

16,559,064

  

$

16,559,064

  
Total short-term securities
(cost: $197,443,051)
    

197,443,051

  
Total investments in securities
(cost: $197,443,051) (c)
    

197,443,051

  
Liabilities in excess of cash
and other assets (-0.3%)
    

(566,063

)

 

Total net assets (100.0%)

   

$

196,876,988

  

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)  Also represents the cost of securities for federal income tax purposes at December 31, 2020.

See accompanying notes to financial statements.
68



SFT Index 400 Mid-Cap Fund
Investments in Securities

December 31, 2020

(Percentages of each investment category relate to total net assets)

  

Shares

 

Value(a)

 

Common Stocks (95.5%)

 

Communication Services (0.1%)

 

Wireless Telecommunication Services (0.1%)

 
Telephone & Data
Systems, Inc.
  

9,437

  

$

175,245

  

Consumer Discretionary (15.0%)

 

Auto Components (1.6%)

 

Adient PLC (b) (c)

  

8,900

   

309,453

  

Dana, Inc.

  

13,696

   

267,346

  
Fox Factory Holding
Corp. (b)
  

3,924

   

414,806

  

Gentex Corp.

  

23,230

   

788,194

  

Lear Corp.

  

5,179

   

823,616

  
The Goodyear Tire &
Rubber Co.
  

22,099

   

241,100

  

Visteon Corp. (b)

  

2,600

   

326,352

  
     

3,170,867

  

Automobiles (0.5%)

 

Harley-Davidson, Inc.

  

14,530

   

533,251

  

Thor Industries, Inc.

  

5,248

   

488,011

  
     

1,021,262

  

Diversified Consumer Services (1.1%)

 
Adtalem Global
Education, Inc. (b)
  

4,937

   

167,611

  
Graham Holdings Co. –
Class B
  

358

   

190,950

  
Grand Canyon
Education, Inc. (b)
  

4,441

   

413,502

  

H&R Block, Inc.

  

17,387

   

275,758

  
Service Corp.
International/US
  

16,375

   

804,012

  

Strategic Education, Inc.

  

2,270

   

216,399

  

WW International, Inc. (b)

  

4,453

   

108,653

  
     

2,176,885

  

Hotels, Restaurants & Leisure (3.8%)

 

Boyd Gaming Corp.

  

7,612

   

326,707

  
Caesars Entertainment,
Inc. (b)
  

19,743

   

1,466,313

  
Choice Hotels
International, Inc.
  

2,695

   

287,637

  

Churchill Downs, Inc.

  

3,347

   

651,962

  
Cracker Barrel Old
Country Store, Inc.
  

2,194

   

289,432

  

Jack in the Box, Inc.

  

2,096

   

194,509

  
Marriott Vacations
Worldwide Corp.
  

3,887

   

533,374

  
Papa John's
International, Inc.
  

3,086

   

261,847

  
Penn National Gaming,
Inc. (b)
  

13,977

   

1,207,193

  
Scientific Games Corp. –
Class A (b)
  

5,304

   

220,063

  
Six Flags Entertainment
Corp.
  

7,169

   

244,463

  

Texas Roadhouse, Inc.

  

6,191

   

483,889

  

The Wendy's Co.

  

16,993

   

372,487

  

Wingstop, Inc.

  

2,774

   

367,694

  
  

Shares

 

Value(a)

 
Wyndham
Destinations, Inc.
  

8,139

  

$

365,115

  
Wyndham Hotels &
Resorts, Inc.
  

8,831

   

524,915

  
     

7,797,600

  

Household Durables (1.4%)

 

Helen of Troy, Ltd. (b) (c)

  

2,359

   

524,146

  

KB Home

  

8,349

   

279,858

  

Taylor Morrison Home Corp. (b)

  

12,317

   

315,931

  
Tempur Sealy
International, Inc. (b)
  

18,191

   

491,157

  

Toll Brothers, Inc.

  

10,884

   

473,128

  

TopBuild Corp. (b)

  

3,113

   

573,041

  

TRI Pointe Group, Inc. (b)

  

12,022

   

207,380

  
     

2,864,641

  

Internet & Catalog Retail (0.5%)

 

GrubHub, Inc. (b)

  

8,792

   

652,982

  

TripAdvisor, Inc. (b)

  

9,115

   

262,330

  
     

915,312

  

Leisure Equipment & Products (0.8%)

 

Brunswick Corp.

  

7,426

   

566,158

  

Mattel, Inc. (b)

  

32,992

   

575,711

  

Polaris, Inc.

  

5,497

   

523,754

  
     

1,665,623

  

Media (1.3%)

 

Cable One, Inc.

  

518

   

1,153,959

  

Cinemark Holdings, Inc.

  

10,192

   

177,443

  
John Wiley & Sons, Inc. –
Class A
  

4,136

   

188,850

  

TEGNA, Inc.

  

20,782

   

289,909

  
The New York Times Co. –
Class A
  

13,726

   

710,595

  
World Wrestling
Entertainment, Inc. –
Class A
  

4,426

   

212,669

  
     

2,733,425

  

Multiline Retail (0.7%)

 

Kohl's Corp.

  

14,944

   

608,071

  

Nordstrom, Inc.

  

10,313

   

321,869

  
Ollie's Bargain Outlet
Holdings, Inc. (b)
  

5,391

   

440,822

  
     

1,370,762

  

Specialty Retail (2.4%)

 
American Eagle
Outfitters, Inc.
  

14,178

   

284,552

  

AutoNation, Inc. (b)

  

5,574

   

389,010

  

Dick's Sporting Goods, Inc.

  

6,226

   

349,963

  

Five Below, Inc. (b)

  

5,296

   

926,694

  

Foot Locker, Inc.

  

9,895

   

400,154

  

Lithia Motors, Inc. Class A

  

2,490

   

728,748

  

Murphy USA, Inc.

  

2,518

   

329,531

  

RH (b)

  

1,499

   

670,833

  

Urban Outfitters, Inc. (b)

  

6,488

   

166,093

  

Williams-Sonoma, Inc.

  

7,260

   

739,358

  
     

4,984,936

  

See accompanying notes to financial statements.
69



SFT Index 400 Mid-Cap Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 

Textiles, Apparel & Luxury Goods (0.9%)

 

Carter's, Inc.

  

4,137

  

$

389,168

  

Columbia Sportswear Co.

  

2,879

   

251,567

  

Deckers Outdoor Corp. (b)

  

2,721

   

780,328

  
Skechers U.S.A., Inc. –
Class A (b)
  

12,852

   

461,901

  
     

1,882,964

  

Consumer Staples (2.7%)

 

Beverages (0.4%)

 
The Boston Beer Co.,
Inc. – Class A (b)
  

885

   

879,947

  

Food & Staples Retailing (0.6%)

 

Casey's General Stores, Inc.

  

3,484

   

622,312

  
Grocery Outlet Holding
Corp. (b)
  

8,095

   

317,729

  
Sprouts Farmers Market,
Inc. (b)
  

11,181

   

224,738

  
     

1,164,779

  

Food Products (1.3%)

 

Flowers Foods, Inc.

  

18,654

   

422,140

  

Ingredion, Inc.

  

6,350

   

499,555

  

Lancaster Colony Corp.

  

1,798

   

330,347

  

Post Holdings, Inc. (b)

  

5,807

   

586,565

  

Sanderson Farms, Inc.

  

1,818

   

240,340

  
The Hain Celestial Group,
Inc. (b)
  

7,822

   

314,053

  

Tootsie Roll Industries, Inc.

  

1,599

   

47,490

  

TreeHouse Foods, Inc. (b)

  

5,356

   

227,576

  
     

2,668,066

  

Household Products (0.1%)

 

Energizer Holdings, Inc.

  

5,520

   

232,833

  

Personal Products (0.3%)

 

Coty, Inc. – Class A

  

26,863

   

188,578

  

Edgewell Personal Care Co.

  

5,152

   

178,156

  
Nu Skin Enterprises, Inc. –
Class A
  

4,837

   

264,246

  
     

630,980

  

Consumer, Non-cyclical (0.3%)

 

IT Services (0.3%)

 

CoreLogic, Inc.

  

7,373

   

570,080

  

Energy (1.2%)

 

Energy Equipment & Services (0.1%)

 

ChampionX Corp. (b)

  

17,617

   

269,540

  

Oil, Gas & Consumable Fuels (1.1%)

 

Antero Midstream Corp.

  

27,109

   

209,010

  

Cimarex Energy Co.

  

9,665

   

362,534

  

CNX Resources Corp. (b)

  

21,284

   

229,867

  

EQT Corp.

  

26,125

   

332,049

  

Equitrans Midstream Corp.

  

38,536

   

309,829

  

Murphy Oil Corp.

  

13,686

   

165,601

  

World Fuel Services Corp.

  

6,019

   

187,552

  

WPX Energy, Inc. (b)

  

38,292

   

312,080

  
     

2,108,522

  
  

Shares

 

Value(a)

 

Financial (14.5%)

 

Capital Markets (2.5%)

 
Affiliated Managers
Group, Inc.
  

4,299

  

$

437,208

  

Eaton Vance Corp.

  

10,825

   

735,342

  

Evercore, Inc. – Class A

  

3,812

   

417,948

  
Factset Research
Systems, Inc.
  

3,590

   

1,193,675

  
Federated Hermes,
Inc. – Class B
  

8,947

   

258,479

  
Interactive Brokers Group,
Inc. – Class A
  

7,562

   

460,677

  
Janus Henderson Group
PLC (c)
  

14,101

   

458,424

  

SEI Investments Co.

  

11,374

   

653,664

  

Stifel Financial Corp.

  

9,764

   

492,691

  
     

5,108,108

  

Commercial Banks (6.0%)

 

Associated Banc-Corp.

  

14,559

   

248,231

  

BancorpSouth Bank

  

9,140

   

250,802

  

Bank of Hawaii Corp.

  

3,789

   

290,313

  

Bank OZK

  

11,459

   

358,323

  

Cathay General Bancorp

  

7,098

   

228,485

  

CIT Group, Inc.

  

9,339

   

335,270

  
Commerce
Bancshares, Inc.
  

9,992

   

656,474

  

Cullen/Frost Bankers, Inc.

  

5,302

   

462,493

  

East West Bancorp, Inc.

  

13,419

   

680,477

  
First Financial
Bankshares, Inc.
  

13,471

   

487,313

  

First Horizon Corp.

  

52,591

   

671,061

  

FNB Corp.

  

30,584

   

290,548

  

Fulton Financial Corp.

  

15,380

   

195,634

  

Glacier Bancorp, Inc.

  

9,044

   

416,114

  

Hancock Whitney Corp.

  

8,191

   

278,658

  

Home BancShares, Inc.

  

14,404

   

280,590

  
International
Bancshares Corp.
  

5,278

   

197,608

  

PacWest Bancorp

  

11,070

   

281,178

  
Pinnacle Financial
Partners, Inc.
  

7,190

   

463,036

  

Prosperity Bancshares, Inc.

  

8,774

   

608,565

  

Signature Bank

  

5,078

   

687,003

  

Sterling Bancorp

  

18,424

   

331,264

  

Synovus Financial Corp.

  

14,011

   

453,536

  

TCF Financial Corp.

  

14,454

   

535,087

  
Texas Capital
Bancshares, Inc. (b)
  

4,783

   

284,588

  

Trustmark Corp.

  

6,012

   

164,188

  

UMB Financial Corp.

  

4,079

   

281,410

  

Umpqua Holdings Corp.

  

20,876

   

316,063

  

United Bankshares, Inc.

  

12,300

   

398,520

  

Valley National Bancorp

  

38,285

   

373,279

  

Webster Financial Corp.

  

8,550

   

360,382

  

Wintrust Financial Corp.

  

5,463

   

333,735

  
     

12,200,228

  

Consumer Finance (0.6%)

 

FirstCash, Inc.

  

3,924

   

274,837

  

Navient Corp.

  

17,658

   

173,402

  

PROG Holdings, Inc.

  

6,404

   

344,983

  

SLM Corp.

  

35,570

   

440,712

  
     

1,233,934

  

See accompanying notes to financial statements.
70



SFT Index 400 Mid-Cap Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 

Diversified Financial Services (0.2%)

 
Jefferies Financial
Group, Inc.
  

19,613

  

$

482,480

  

Diversified REITs (0.1%)

 

PS Business Parks, Inc.

  

1,877

   

249,397

  

Insurance (4.2%)

 

Alleghany Corp.

  

1,382

   

834,300

  
American Financial
Group, Inc.
  

6,668

   

584,250

  
Brighthouse Financial,
Inc. (b)
  

8,484

   

307,163

  

Brown & Brown, Inc.

  

22,349

   

1,059,566

  

CNO Financial Group, Inc.

  

13,175

   

292,880

  
First American Financial
Corp.
  

10,583

   

546,400

  
Genworth Financial, Inc. –
Class A (b)
  

47,967

   

181,315

  

Kemper Corp.

  

5,828

   

447,765

  

Kinsale Capital Group, Inc.

  

2,020

   

404,263

  

Mercury General Corp.

  

2,480

   

129,481

  
Old Republic International
Corp.
  

26,805

   

528,327

  

Primerica, Inc.

  

3,725

   

498,889

  
Reinsurance Group of
America, Inc.
  

6,440

   

746,396

  
RenaissanceRe Holdings,
Ltd. (c)
  

4,816

   

798,589

  

RLI Corp.

  

3,741

   

389,625

  
Selective Insurance
Group, Inc.
  

5,672

   

379,911

  
The Hanover Insurance
Group, Inc.
  

3,531

   

412,845

  
     

8,541,965

  

Thrifts & Mortgage Finance (0.9%)

 

Essent Group, Ltd. (c)

  

10,657

   

460,382

  

LendingTree, Inc. (b)

  

1,050

   

287,480

  

MGIC Investment Corp.

  

32,095

   

402,792

  
New York Community
Bancorp, Inc.
  

43,975

   

463,936

  

Washington Federal, Inc.

  

7,186

   

184,968

  
     

1,799,558

  

Health Care (10.6%)

 

Biotechnology (1.9%)

 
Arrowhead
Pharmaceuticals, Inc. (b)
  

9,740

   

747,350

  
Emergent BioSolutions,
Inc. (b)
  

4,268

   

382,413

  

Exelixis, Inc. (b)

  

29,409

   

590,239

  
Halozyme Therapeutics,
Inc. (b)
  

12,045

   

514,442

  
Ligand Pharmaceuticals,
Inc. (b)
  

1,503

   

149,473

  

Repligen Corp. (b)

  

4,711

   

902,769

  
United Therapeutics
Corp. (b)
  

4,212

   

639,339

  
     

3,926,025

  

Health Care Equipment & Supplies (3.2%)

 

Avanos Medical, Inc. (b)

  

4,534

   

208,020

  

Cantel Medical Corp.

  

3,513

   

277,035

  
  

Shares

 

Value(a)

 
Globus Medical, Inc. –
Class A (b)
  

7,215

  

$

470,562

  

Haemonetics Corp. (b)

  

4,813

   

571,544

  

Hill-Rom Holdings, Inc.

  

6,333

   

620,444

  

ICU Medical, Inc. (b)

  

1,891

   

405,601

  
Integra LifeSciences
Holdings Corp. (b)
  

6,710

   

435,613

  

LivaNova PLC (b) (c)

  

4,606

   

304,963

  

Masimo Corp. (b)

  

4,801

   

1,288,492

  

Neogen Corp. (b)

  

5,028

   

398,721

  

NuVasive, Inc. (b)

  

4,861

   

273,820

  

Penumbra, Inc. (b)

  

3,220

   

563,500

  

Quidel Corp. (b)

  

3,607

   

647,998

  
     

6,466,313

  

Health Care Providers & Services (2.9%)

 
Acadia Healthcare Co.,
Inc. (b)
  

8,435

   

423,943

  

Amedisys, Inc. (b)

  

3,138

   

920,470

  

Chemed Corp.

  

1,546

   

823,415

  

Encompass Health Corp.

  

9,425

   

779,353

  

HealthEquity, Inc. (b)

  

7,286

   

507,907

  

LHC Group, Inc. (b)

  

2,995

   

638,893

  

Molina Healthcare, Inc. (b)

  

5,621

   

1,195,474

  

Patterson Cos., Inc.

  

8,233

   

243,944

  

Tenet Healthcare Corp. (b)

  

10,002

   

399,380

  
     

5,932,779

  

Life Sciences Tools & Services (1.9%)

 

Bio-Techne Corp.

  

3,644

   

1,157,152

  
Charles River Laboratories
International, Inc. (b)
  

4,715

   

1,178,090

  

Medpace Holdings, Inc. (b)

  

2,547

   

354,542

  
PRA Health Sciences,
Inc. (b)
  

6,081

   

762,801

  

Syneos Health, Inc. (b)

  

7,196

   

490,264

  
     

3,942,849

  

Pharmaceuticals (0.7%)

 
Jazz Pharmaceuticals
PLC (b) (c)
  

5,281

   

871,629

  

Nektar Therapeutics (b)

  

17,006

   

289,102

  
Prestige Consumer
Healthcare, Inc. (b)
  

4,749

   

165,598

  
     

1,326,329

  

Industrials (16.9%)

 

Aerospace & Defense (1.0%)

 

Axon Enterprise, Inc. (b)

  

6,024

   

738,121

  

Curtiss-Wright Corp.

  

3,934

   

457,721

  

Hexcel Corp.

  

7,918

   

383,944

  

Mercury Systems, Inc. (b)

  

5,308

   

467,422

  
     

2,047,208

  

Air Freight & Logistics (0.5%)

 

XPO Logistics, Inc. (b)

  

8,665

   

1,032,868

  

Airlines (0.2%)

 

JetBlue Airways Corp. (b)

  

29,809

   

433,423

  

Building Products (1.8%)

 
Builders FirstSource,
Inc. (b)
  

19,446

   

793,591

  

See accompanying notes to financial statements.
71



SFT Index 400 Mid-Cap Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 

Lennox International, Inc.

  

3,281

  

$

898,896

  

Owens Corning

  

10,259

   

777,222

  
Simpson Manufacturing
Co., Inc.
  

4,110

   

384,079

  

Trex Co., Inc. (b)

  

10,976

   

918,911

  
     

3,772,699

  

Commercial Services & Supplies (2.0%)

 

Clean Harbors, Inc. (b)

  

4,818

   

366,650

  
Healthcare Services
Group, Inc.
  

7,055

   

198,245

  

Herman Miller, Inc.

  

5,583

   

188,705

  

HNI Corp.

  

4,044

   

139,356

  

IAA, Inc. (b)

  

12,746

   

828,235

  

KAR Auction Services, Inc.

  

12,252

   

228,010

  

MSA Safety, Inc.

  

3,395

   

507,179

  

Stericycle, Inc. (b)

  

8,678

   

601,646

  

Tetra Tech, Inc.

  

5,097

   

590,131

  

The Brink's Co.

  

4,685

   

337,320

  
     

3,985,477

  

Construction & Engineering (1.3%)

 

AECOM (b)

  

14,291

   

711,406

  

Dycom Industries, Inc. (b)

  

2,967

   

224,068

  

EMCOR Group, Inc.

  

5,207

   

476,232

  

Fluor Corp.

  

11,863

   

189,452

  

KBR, Inc.

  

13,510

   

417,864

  

MasTec, Inc. (b)

  

5,321

   

362,786

  

Valmont Industries, Inc.

  

2,044

   

357,557

  
     

2,739,365

  

Electrical Equipment (2.8%)

 

Acuity Brands, Inc.

  

3,491

   

422,725

  

Belden, Inc.

  

4,223

   

176,944

  

EnerSys

  

4,007

   

332,822

  

Generac Holdings, Inc. (b)

  

5,957

   

1,354,681

  

Hubbell, Inc.

  

5,141

   

806,057

  

nVent Electric PLC (c)

  

16,126

   

375,575

  

Regal Beloit Corp.

  

3,840

   

471,590

  

Sunrun, Inc. (b)

  

14,792

   

1,026,269

  

Woodward, Inc.

  

5,534

   

672,547

  
     

5,639,210

  

Industrial Conglomerates (0.4%)

 

Carlisle Cos., Inc.

  

5,060

   

790,271

  

Machinery (4.4%)

 

AGCO Corp.

  

5,822

   

600,190

  

Colfax Corp. (b)

  

9,544

   

364,963

  

Crane Co.

  

4,682

   

363,604

  

Donaldson Co., Inc.

  

11,966

   

668,660

  

Graco, Inc.

  

15,882

   

1,149,063

  

ITT, Inc.

  

8,190

   

630,794

  

Kennametal, Inc.

  

7,894

   

286,079

  
Lincoln Electric
Holdings, Inc.
  

5,637

   

655,301

  

Nordson Corp.

  

5,099

   

1,024,644

  

Oshkosh Corp.

  

6,464

   

556,356

  

Terex Corp.

  

6,569

   

229,192

  

The Middleby Corp. (b)

  

5,271

   

679,537

  

The Timken Co.

  

6,429

   

497,347

  

The Toro Co.

  

10,171

   

964,618

  

Trinity Industries, Inc.

  

8,008

   

211,331

  
     

8,881,679

  
  

Shares

 

Value(a)

 

Marine (0.1%)

 

Kirby Corp. (b)

  

5,691

  

$

294,965

  

Professional Services (0.8%)

 

ASGN, Inc. (b)

  

4,998

   

417,483

  

FTI Consulting, Inc. (b)

  

3,380

   

377,614

  

Insperity, Inc.

  

3,381

   

275,281

  

Manpowergroup, Inc.

  

5,453

   

491,751

  
     

1,562,129

  

Road & Rail (0.8%)

 
Avis Budget Group,
Inc. (b)
  

4,888

   

182,322

  
Knight-Swift
Transportation
Holdings, Inc.
  

11,913

   

498,202

  

Landstar System, Inc.

  

3,627

   

488,412

  

Ryder System, Inc.

  

5,108

   

315,470

  

Werner Enterprises, Inc.

  

5,502

   

215,788

  
     

1,700,194

  

Trading Companies & Distributors (0.8%)

 

GATX Corp.

  

3,299

   

274,411

  
MSC Industrial Direct Co.,
Inc. – Class A
  

4,321

   

364,649

  

Univar Solutions, Inc. (b)

  

16,029

   

304,711

  

Watsco, Inc.

  

3,083

   

698,454

  
     

1,642,225

  

Information Technology (16.4%)

 

Communications Equipment (1.0%)

 

Ciena Corp. (b)

  

14,628

   

773,090

  

InterDigital, Inc.

  

2,829

   

171,664

  
Lumentum Holdings,
Inc. (b)
  

7,157

   

678,483

  

NetScout Systems, Inc. (b)

  

6,936

   

190,185

  

ViaSat, Inc. (b)

  

6,081

   

198,545

  
     

2,011,967

  

Computers & Peripherals (0.2%)

 

NCR Corp. (b)

  

12,219

   

459,068

  
Electronic Equipment, Instruments &
Components (3.6%)
 

Arrow Electronics, Inc. (b)

  

7,161

   

696,765

  

Avnet, Inc.

  

9,368

   

328,910

  

Cognex Corp.

  

16,554

   

1,329,038

  

Coherent, Inc. (b)

  

2,255

   

338,295

  

II-VI, Inc. (b)

  

9,832

   

746,839

  

Jabil, Inc.

  

12,758

   

542,598

  

Littelfuse, Inc.

  

2,350

   

598,451

  

National Instruments Corp.

  

12,441

   

546,658

  

SYNNEX Corp.

  

3,901

   

317,697

  

Trimble, Inc. (b)

  

23,715

   

1,583,451

  
Vishay Intertechnology,
Inc.
  

12,566

   

260,242

  
     

7,288,944

  

Interactive Media & Services (0.3%)

 

j2 Global, Inc. (b)

  

4,062

   

396,817

  

Yelp, Inc. (b)

  

6,576

   

214,838

  
     

611,655

  

See accompanying notes to financial statements.
72



SFT Index 400 Mid-Cap Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 

IT Services (2.2%)

 
Alliance Data Systems
Corp.
  

4,523

  

$

335,154

  
CACI International, Inc. –
Class A (b)
  

2,437

   

607,617

  

Concentrix Corp. (b)

  

3,901

   

385,029

  
LiveRamp Holdings,
Inc. (b)
  

6,286

   

460,072

  

MAXIMUS, Inc.

  

5,825

   

426,332

  

Perspecta, Inc.

  

12,969

   

312,294

  

Sabre Corp.

  

30,075

   

361,501

  
Science Applications
International Corp.
  

5,519

   

522,318

  

Teradata Corp. (b)

  

10,361

   

232,812

  

WEX, Inc. (b)

  

4,182

   

851,162

  
     

4,494,291

  

Semiconductors & Semiconductor Equipment (5.3%)

 

Cirrus Logic, Inc. (b)

  

5,494

   

451,607

  

CMC Materials, Inc.

  

2,688

   

406,694

  

Cree, Inc. (b)

  

10,459

   

1,107,608

  

Enphase Energy, Inc. (b)

  

11,975

   

2,101,253

  

First Solar, Inc. (b)

  

8,036

   

794,921

  

MKS Instruments, Inc.

  

5,226

   

786,252

  
Monolithic Power
Systems, Inc.
  

4,000

   

1,464,920

  

Semtech Corp. (b)

  

6,161

   

444,146

  
Silicon Laboratories,
Inc. (b)
  

4,153

   

528,843

  
SolarEdge Technologies,
Inc. (b)
  

4,867

   

1,553,157

  

Synaptics, Inc. (b)

  

3,214

   

309,830

  

Universal Display Corp.

  

4,062

   

933,448

  
     

10,882,679

  

Software (3.8%)

 

ACI Worldwide, Inc. (b)

  

11,068

   

425,343

  

Blackbaud, Inc.

  

4,698

   

270,417

  

CDK Global, Inc.

  

11,535

   

597,859

  
Ceridian HCM Holding,
Inc. (b)
  

12,329

   

1,313,778

  
CommVault Systems,
Inc. (b)
  

4,405

   

243,905

  

Fair Isaac Corp. (b)

  

2,817

   

1,439,600

  
Manhattan Associates,
Inc. (b)
  

6,021

   

633,289

  

Paylocity Holding Corp. (b)

  

3,580

   

737,158

  

PTC, Inc. (b)

  

9,953

   

1,190,478

  

Qualys, Inc. (b)

  

3,177

   

387,181

  
Sailpoint Technologies
Holdings, Inc. (b)
  

8,617

   

458,769

  
     

7,697,777

  

Leisure and Consumer Staples (0.7%)

 

Food & Staples Retailing (0.2%)

 
BJ's Wholesale Club
Holdings, Inc. (b)
  

13,013

   

485,125

  

Food Products (0.5%)

 

Darling Ingredients, Inc. (b)

  

15,363

   

886,138

  

Pilgrim's Pride Corp. (b)

  

4,617

   

90,539

  
     

976,677

  
  

Shares

 

Value(a)

 

Materials (5.4%)

 

Chemicals (2.5%)

 
Ashland Global
Holdings, Inc.
  

5,168

  

$

409,306

  

Avient Corp.

  

8,671

   

349,268

  

Cabot Corp.

  

5,365

   

240,781

  

Ingevity Corp. (b)

  

3,908

   

295,953

  
Minerals
Technologies, Inc.
  

3,213

   

199,592

  

NewMarket Corp.

  

728

   

289,955

  

Olin Corp.

  

13,468

   

330,774

  

RPM International, Inc.

  

12,317

   

1,118,137

  
Sensient Technologies
Corp.
  

3,990

   

294,342

  

The Chemours Co.

  

15,593

   

386,550

  

The Scotts Miracle-Gro Co.

  

3,857

   

768,083

  

Valvoline, Inc.

  

17,562

   

406,385

  
     

5,089,126

  

Construction Materials (0.2%)

 

Eagle Materials, Inc.

  

3,955

   

400,839

  

Containers & Packaging (0.9%)

 

Aptargroup, Inc.

  

6,135

   

839,820

  

Greif, Inc. – Class A

  

2,424

   

113,637

  

O-I Glass, Inc.

  

14,898

   

177,286

  

Silgan Holdings, Inc.

  

7,442

   

275,950

  

Sonoco Products Co.

  

9,519

   

564,001

  
     

1,970,694

  

Metals & Mining (1.5%)

 

Commercial Metals Co.

  

11,381

   

233,766

  
Compass Minerals
International, Inc.
  

3,196

   

197,257

  
Reliance Steel &
Aluminum Co.
  

6,043

   

723,649

  

Royal Gold, Inc.

  

6,219

   

661,453

  

Steel Dynamics, Inc.

  

18,944

   

698,465

  

United States Steel Corp.

  

20,893

   

350,376

  
Worthington
Industries, Inc.
  

3,402

   

174,659

  
     

3,039,625

  

Paper & Forest Products (0.3%)

 

Domtar Corp.

  

5,232

   

165,593

  

Louisiana-Pacific Corp.

  

10,363

   

385,192

  
     

550,785

  

Real Estate (8.5%)

 

Health Care REITs (1.3%)

 
Healthcare Realty
Trust, Inc.
  

12,897

   

381,751

  
Medical Properties
Trust, Inc.
  

50,809

   

1,107,128

  
Omega Healthcare
Investors, Inc.
  

21,518

   

781,534

  

Physicians Realty Trust

  

19,739

   

351,354

  
     

2,621,767

  

See accompanying notes to financial statements.
73



SFT Index 400 Mid-Cap Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 

Hotels & Resort REITs (0.4%)

 

Park Hotels & Resorts, Inc.

  

22,334

  

$

383,028

  

Pebblebrook Hotel Trust

  

12,410

   

233,308

  

Service Properties Trust

  

15,624

   

179,520

  
     

795,856

  

Industrial REITs (0.8%)

 

EastGroup Properties, Inc.

  

3,696

   

510,270

  
First Industrial Realty
Trust, Inc.
  

12,233

   

515,376

  
Rexford Industrial
Realty, Inc.
  

12,373

   

607,638

  
     

1,633,284

  

Office REITs (1.4%)

 
Corporate Office
Properties Trust
  

10,633

   

277,309

  

Cousins Properties, Inc.

  

14,083

   

471,780

  

Douglas Emmett, Inc.

  

15,627

   

455,996

  

Highwoods Properties, Inc.

  

9,849

   

390,316

  
Hudson Pacific
Properties, Inc.
  

14,422

   

346,416

  

JBG SMITH Properties

  

10,547

   

329,805

  

Kilroy Realty Corp.

  

9,941

   

570,613

  
     

2,842,235

  

Real Estate Investment Trust (0.3%)

 
Apartment Income REIT
Corp. (b)
  

14,111

   

542,004

  

Real Estate Management & Development (0.4%)

 

Jones Lang LaSalle, Inc.

  

4,863

   

721,523

  

Residential REITs (0.7%)

 
American Campus
Communities, Inc.
  

13,046

   

557,977

  

Camden Property Trust

  

9,232

   

922,462

  
     

1,480,439

  

Retail REITs (1.0%)

 
Brixmor Property
Group, Inc.
  

28,104

   

465,121

  
National Retail
Properties, Inc.
  

16,468

   

673,871

  

Spirit Realty Capital, Inc.

  

10,830

   

435,041

  

The Macerich Co.

  

10,626

   

113,380

  

Urban Edge Properties

  

10,398

   

134,550

  

Weingarten Realty Investors

  

11,418

   

247,428

  
     

2,069,391

  

Specialized REITs (2.2%)

 

CoreSite Realty Corp.

  

4,047

   

507,008

  

CyrusOne, Inc.

  

11,350

   

830,252

  

EPR Properties

  

7,073

   

229,872

  
Lamar Advertising Co. –
Class A
  

8,192

   

681,738

  

Life Storage, Inc.

  

4,556

   

543,941

  

PotlatchDeltic Corp.

  

6,339

   

317,077

  

Rayonier, Inc.

  

12,941

   

380,207

  
Sabra Health Care
REIT, Inc.
  

19,615

   

340,713

  

STORE Capital Corp.

  

22,403

   

761,254

  
     

4,592,062

  
  Shares/
Principal
 

Value(a)

 

Utilities (3.2%)

 

Electric Utilities (0.7%)

 

ALLETE, Inc.

  

4,926

  

$

305,116

  
Hawaiian Electric
Industries, Inc.
  

10,349

   

366,251

  

IDACORP, Inc.

  

4,783

   

459,312

  

PNM Resources, Inc.

  

7,550

   

366,402

  
     

1,497,081

  

Gas Utilities (1.2%)

 

National Fuel Gas Co.

  

8,623

   

354,664

  
New Jersey
Resources Corp.
  

9,112

   

323,932

  

ONE Gas, Inc.

  

5,033

   

386,383

  
Southwest Gas
Holdings, Inc.
  

5,330

   

323,797

  

Spire, Inc.

  

4,893

   

313,348

  

UGI Corp.

  

19,757

   

690,705

  
     

2,392,829

  

Multi-Utilities (0.8%)

 

Black Hills Corp.

  

5,948

   

365,505

  
MDU Resources
Group, Inc.
  

19,008

   

500,671

  

NorthWestern Corp.

  

4,794

   

279,538

  

OGE Energy Corp.

  

18,960

   

604,065

  
     

1,749,779

  

Water Utilities (0.5%)

 

Essential Utilities, Inc.

  

21,157

   

1,000,514

  
Total common stocks
(cost: $132,795,177)
    

194,913,963

  

Short-Term Securities (4.7%)

 

Investment Companies (4.2%)

 
State Street Institutional
U.S. Government Money
Market Fund, current
rate 0.030%
  

8,665,399

   

8,665,399

  

U.S. Government Obligations (0.5%)

 
U.S. Treasury Bill, current
rate 0.093%, 05/20/21 (d)
 

$

1,000,000

   

999,693

  
Total short-term securities
(cost: $9,664,775)
    

9,665,092

  
Total investments in securities
(cost: $142,459,952) (e)
    

204,579,055

  
Liabilities in excess of cash
and other assets (-0.2%)
    

(407,692

)

 

Total net assets (100.0%)

   

$

204,171,363

  

See accompanying notes to financial statements.
74



SFT Index 400 Mid-Cap 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)  Non-income producing security.

(c)  Foreign security: The Fund held 2.0% of net assets in foreign securities at December 31, 2020.

(d)  Fully or partially pledged as initial margin deposits on open futures contracts.

Holdings of Open Futures Contracts

On December 31, 2020, securities with an aggregate market value of $999,693 have been pledged to cover margin requirements for the following open futures contracts:

Description

 Expiration
Date
 Number of
Contracts
 Position
Type
 Notional
Amount
 Market
Value
 Unrealized
Appreciation/
(Depreciation)(a)
 

S&P Mid 400@ E-Mini Index Future

 

March 2021

  

40

  

Long

 

$

9,034,078

  

$

9,214,000

  

$

179,922

  

(e)  At December 31, 2020 the cost of investments for federal income tax purposes was $143,006,852. The aggregate unrealized appreciation and depreciation of investments based on this cost were:

Gross unrealized appreciation

 

$

70,731,150

  

Gross unrealized depreciation

  

(8,979,025

)

 

Net unrealized appreciation

 

$

61,752,125

  

See accompanying notes to financial statements.
75



SFT Index 500 Fund
Investments in Securities

December 31, 2020

(Percentages of each investment category relate to total net assets)

  

Shares

 

Value(a)

 

Common Stocks (98.1%)

 

Communication Services (1.8%)

 

Diversified Telecommunication Services (1.4%)

 

AT&T, Inc.

  

221,606

  

$

6,373,389

  

CenturyLink, Inc.

  

30,707

   

299,393

  
Verizon
Communications, Inc.
  

128,687

   

7,560,361

  
     

14,233,143

  

Media (0.1%)

 

Fox Corp. – Class A

  

10,497

   

305,672

  

Fox Corp. – Class B

  

4,810

   

138,913

  

ViacomCBS, Inc. – Class B

  

17,569

   

654,621

  
     

1,099,206

  

Wireless Telecommunication Services (0.3%)

 
T-Mobile US, Inc. –
Class A (b)
  

18,141

   

2,446,314

  

Consumer Discretionary (15.4%)

 

Auto Components (0.2%)

 

Aptiv PLC (c)

  

8,397

   

1,094,045

  

BorgWarner, Inc.

  

7,604

   

293,819

  
     

1,387,864

  

Automobiles (1.9%)

 

Ford Motor Co.

  

121,519

   

1,068,152

  

General Motors Co.

  

39,169

   

1,630,997

  

Tesla, Inc. (b)

  

23,583

   

16,641,816

  
     

19,340,965

  

Distributors (0.1%)

 

Genuine Parts Co.

  

4,410

   

442,896

  

LKQ Corp. (b)

  

8,707

   

306,835

  

Pool Corp.

  

1,270

   

473,075

  
     

1,222,806

  

Entertainment (1.0%)

 

The Walt Disney Co. (b)

  

56,303

   

10,200,977

  

Hotels & Resort REITs (0.1%)

 
Hilton Worldwide
Holdings, Inc.
  

8,628

   

959,951

  

Hotels, Restaurants & Leisure (1.6%)

 

Carnival Corp. (c)

  

23,128

   

500,953

  
Chipotle Mexican
Grill, Inc. (b)
  

899

   

1,246,652

  

Darden Restaurants, Inc.

  

4,038

   

481,007

  

Domino's Pizza, Inc.

  

1,270

   

486,994

  

Las Vegas Sands Corp.

  

10,214

   

608,754

  
Marriott International,
Inc. – Class A
  

8,270

   

1,090,978

  

McDonald's Corp.

  

23,172

   

4,972,248

  
MGM Resorts
International
  

12,749

   

401,721

  
Norwegian Cruise Line
Holdings, Ltd. (b) (c)
  

9,815

   

249,596

  
Royal Caribbean
Cruises, Ltd. (c)
  

5,790

   

432,455

  

Starbucks Corp.

  

36,500

   

3,904,770

  
  

Shares

 

Value(a)

 

Wynn Resorts, Ltd.

  

2,955

  

$

333,413

  

Yum! Brands, Inc.

  

9,381

   

1,018,401

  
     

15,727,942

  

Household Durables (0.4%)

 

DR Horton, Inc.

  

10,312

   

710,703

  

Garmin, Ltd. (c)

  

4,556

   

545,171

  

Leggett & Platt, Inc.

  

4,119

   

182,472

  

Lennar Corp. – Class A

  

8,555

   

652,148

  

Mohawk Industries, Inc. (b)

  

1,813

   

255,542

  

Newell Brands, Inc.

  

11,743

   

249,304

  

NVR, Inc. (b)

  

109

   

444,705

  

PulteGroup, Inc.

  

8,337

   

359,491

  

Whirlpool Corp.

  

1,935

   

349,248

  
     

3,748,784

  

Internet & Catalog Retail (5.5%)

 

Amazon.com, Inc. (b)

  

13,264

   

43,199,920

  

Booking Holdings, Inc. (b)

  

1,274

   

2,837,542

  

Etsy, Inc. (b)

  

3,921

   

697,585

  

Expedia Group, Inc.

  

4,181

   

553,564

  

Netflix, Inc. (b)

  

13,739

   

7,429,089

  
     

54,717,700

  

Leisure Equipment & Products (0.0%)

 

Hasbro, Inc.

  

3,935

   

368,080

  

Media (1.2%)

 
Charter Communications,
Inc. – Class A (b)
  

4,538

   

3,002,114

  

Comcast Corp. – Class A

  

141,991

   

7,440,328

  
Discovery, Inc. –
Class A (b)
  

4,912

   

147,802

  
Discovery, Inc. –
Class C (b)
  

9,173

   

240,241

  
DISH Network Corp. –
Class A (b)
  

7,689

   

248,662

  
Live Nation
Entertainment, Inc. (b)
  

4,429

   

325,443

  

News Corp. – Class A

  

12,158

   

218,479

  

News Corp. – Class B

  

3,693

   

65,625

  

Omnicom Group, Inc.

  

6,685

   

416,944

  
The Interpublic Group of
Cos., Inc.
  

12,129

   

285,274

  
     

12,390,912

  

Multiline Retail (0.5%)

 

Dollar General Corp.

  

7,619

   

1,602,276

  

Dollar Tree, Inc. (b)

  

7,314

   

790,204

  

Target Corp.

  

15,573

   

2,749,102

  
     

5,141,582

  

Specialty Retail (2.2%)

 

Advance Auto Parts, Inc.

  

2,099

   

330,614

  

AutoZone, Inc. (b)

  

755

   

895,007

  

Best Buy Co., Inc.

  

7,142

   

712,700

  

CarMax, Inc. (b)

  

5,066

   

478,534

  

Home Depot, Inc. (The)

  

33,480

   

8,892,958

  

L Brands, Inc.

  

7,264

   

270,148

  

Lowe's Cos., Inc.

  

22,786

   

3,657,381

  

See accompanying notes to financial statements.
76



SFT Index 500 Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 
O'Reilly
Automotive, Inc. (b)
  

2,253

  

$

1,019,640

  

Ross Stores, Inc.

  

11,071

   

1,359,630

  

The Gap, Inc.

  

6,397

   

129,155

  

The TJX Cos., Inc.

  

37,337

   

2,549,744

  

Tiffany & Co.

  

3,354

   

440,883

  

Tractor Supply Co.

  

3,609

   

507,353

  
Ulta Salon Cosmetics &
Fragrance, Inc. (b)
  

1,778

   

510,571

  
     

21,754,318

  

Textiles, Apparel & Luxury Goods (0.7%)

 

Hanesbrands, Inc.

  

10,832

   

157,931

  

NIKE, Inc. – Class B

  

39,022

   

5,520,442

  

PVH Corp.

  

2,192

   

205,807

  

Ralph Lauren Corp.

  

1,433

   

148,659

  

Tapestry, Inc.

  

8,626

   

268,096

  
Under Armour, Inc. –
Class A (b)
  

5,824

   

99,998

  
Under Armour, Inc. –
Class C (b)
  

6,052

   

90,054

  

VF Corp.

  

9,945

   

849,402

  
     

7,340,389

  

Consumer Staples (6.7%)

 

Beverages (1.6%)

 
Brown-Forman Corp. –
Class B
  

5,618

   

446,238

  
Constellation Brands,
Inc. – Class A
  

5,219

   

1,143,222

  
Molson Coors Beverage
Co. – Class B
  

5,814

   

262,735

  
Monster Beverage
Corp. (b)
  

11,492

   

1,062,780

  

PepsiCo, Inc.

  

42,976

   

6,373,341

  

The Coca-Cola Co.

  

120,278

   

6,596,045

  
     

15,884,361

  

Food & Staples Retailing (1.7%)

 

Costco Wholesale Corp.

  

13,722

   

5,170,175

  

CVS Health Corp.

  

40,705

   

2,780,152

  

Sysco Corp.

  

15,840

   

1,176,278

  

The Kroger Co.

  

24,080

   

764,781

  
Walgreens Boots
Alliance, Inc.
  

22,350

   

891,318

  

Walmart, Inc.

  

43,113

   

6,214,739

  
     

16,997,443

  

Food Products (1.0%)

 

Archer-Daniels-Midland Co.

  

17,302

   

872,194

  

Campbell Soup Co.

  

6,298

   

304,508

  

Conagra Brands, Inc.

  

15,192

   

550,862

  

General Mills, Inc.

  

19,010

   

1,117,788

  

Hormel Foods Corp.

  

8,731

   

406,952

  

Kellogg Co.

  

7,909

   

492,177

  
Lamb Weston
Holdings, Inc.
  

4,497

   

354,094

  

McCormick & Co., Inc.

  

7,734

   

739,370

  
Mondelez International,
Inc. – Class A
  

44,475

   

2,600,453

  

The Hershey Co.

  

4,587

   

698,738

  

The JM Smucker Co.

  

3,533

   

408,415

  
  

Shares

 

Value(a)

 

The Kraft Heinz Co.

  

20,151

  

$

698,434

  
Tyson Foods, Inc. –
Class A
  

9,146

   

589,368

  
     

9,833,353

  

Household Products (1.6%)

 

Church & Dwight Co., Inc.

  

7,706

   

672,194

  

Colgate-Palmolive Co.

  

26,656

   

2,279,355

  

Kimberly-Clark Corp.

  

10,577

   

1,426,097

  

The Clorox Co.

  

3,920

   

791,526

  

The Procter & Gamble Co.

  

77,111

   

10,729,224

  
     

15,898,396

  

Personal Care (0.2%)

 
The Estee Lauder Cos.,
Inc. – Class A
  

7,031

   

1,871,582

  

Tobacco (0.6%)

 

Altria Group, Inc.

  

57,793

   

2,369,513

  
Philip Morris
International, Inc.
  

48,429

   

4,009,437

  
     

6,378,950

  

Energy (2.2%)

 

Energy Equipment & Services (0.2%)

 

Baker Hughes Co.

  

21,327

   

444,668

  

Halliburton Co.

  

27,491

   

519,580

  

Nov, Inc.

  

12,074

   

165,776

  

Schlumberger, Ltd. (c)

  

43,289

   

944,999

  

TechnipFMC PLC (c)

  

13,137

   

123,487

  
     

2,198,510

  

Oil, Gas & Consumable Fuels (2.0%)

 

Apache Corp.

  

11,738

   

166,562

  

Cabot Oil & Gas Corp.

  

12,395

   

201,791

  

Chevron Corp.

  

59,865

   

5,055,599

  

Concho Resources, Inc.

  

6,104

   

356,168

  

ConocoPhillips

  

33,211

   

1,328,108

  

Devon Energy Corp.

  

11,895

   

188,060

  

Diamondback Energy, Inc.

  

4,880

   

236,192

  

EOG Resources, Inc.

  

18,142

   

904,742

  

Exxon Mobil Corp.

  

131,490

   

5,420,018

  

Hess Corp.

  

8,499

   

448,662

  

HollyFrontier Corp.

  

4,582

   

118,445

  

Kinder Morgan, Inc.

  

60,544

   

827,636

  

Marathon Oil Corp.

  

24,548

   

163,735

  

Marathon Petroleum Corp.

  

20,234

   

836,878

  

Occidental Petroleum Corp.

  

26,063

   

451,151

  

Phillips 66

  

13,583

   

949,995

  
Pioneer Natural
Resources Co.
  

5,113

   

582,320

  

The Williams Cos., Inc.

  

37,740

   

756,687

  

Valero Energy Corp.

  

12,681

   

717,364

  
     

19,710,113

  

Financial (10.2%)

 

Capital Markets (2.7%)

 

Ameriprise Financial, Inc.

  

3,669

   

712,997

  

BlackRock, Inc.

  

4,411

   

3,182,713

  

CBOE Global Markets, Inc.

  

3,354

   

312,324

  

CME Group, Inc.

  

11,164

   

2,032,406

  

Franklin Resources, Inc.

  

8,415

   

210,291

  

Intercontinental Exchange, Inc.

  

17,454

   

2,012,272

  

See accompanying notes to financial statements.
77



SFT Index 500 Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 

Invesco, Ltd. (c)

  

11,713

  

$

204,158

  
MarketAxess
Holdings, Inc.
  

1,169

   

666,985

  

Moody's Corp.

  

5,023

   

1,457,876

  

Morgan Stanley

  

44,447

   

3,045,953

  

MSCI, Inc.

  

2,547

   

1,137,312

  

Nasdaq, Inc.

  

3,475

   

461,271

  

Northern Trust Corp.

  

6,472

   

602,802

  
Raymond James
Financial, Inc.
  

3,754

   

359,145

  

S&P Global, Inc.

  

7,482

   

2,459,558

  

State Street Corp.

  

10,971

   

798,469

  

T Rowe Price Group, Inc.

  

7,041

   

1,065,937

  
The Bank of New York
Mellon Corp.
  

25,352

   

1,075,939

  

The Charles Schwab Corp.

  

46,388

   

2,460,419

  
The Goldman Sachs
Group, Inc.
  

10,700

   

2,821,697

  
     

27,080,524

  

Commercial Banks (3.8%)

 

Bank of America Corp.

  

236,742

   

7,175,650

  

Citigroup, Inc.

  

64,745

   

3,992,177

  
Citizens Financial
Group, Inc.
  

13,281

   

474,929

  

Comerica, Inc.

  

4,296

   

239,975

  

Fifth Third Bancorp

  

22,155

   

610,813

  

First Republic Bank

  

5,355

   

786,810

  
Huntington
Bancshares, Inc.
  

31,636

   

399,563

  

JPMorgan Chase & Co.

  

94,794

   

12,045,474

  

KeyCorp

  

30,366

   

498,306

  

M&T Bank Corp.

  

3,948

   

502,580

  
People's United
Financial, Inc.
  

13,212

   

170,831

  

Regions Financial Corp.

  

29,868

   

481,472

  

SVB Financial Group (b)

  

1,632

   

632,939

  
The PNC Financial
Services Group, Inc.
  

13,176

   

1,963,224

  

Truist Financial Corp.

  

41,924

   

2,009,417

  

US Bancorp

  

42,631

   

1,986,178

  

Wells Fargo & Co.

  

128,575

   

3,880,393

  

Zions Bancorp NA

  

5,099

   

221,501

  
     

38,072,232

  

Consumer Finance (0.5%)

 

American Express Co.

  

20,282

   

2,452,297

  

Capital One Financial Corp.

  

14,224

   

1,406,042

  
Discover Financial
Services
  

9,531

   

862,841

  

Synchrony Financial

  

16,884

   

586,044

  
     

5,307,224

  

Insurance (3.2%)

 

Aflac, Inc.

  

20,315

   

903,408

  
American International
Group, Inc.
  

26,792

   

1,014,345

  

Aon PLC (c)

  

7,109

   

1,501,918

  

Arthur J Gallagher & Co.

  

5,955

   

736,693

  

Assurant, Inc.

  

1,755

   

239,066

  
Berkshire Hathaway,
Inc. – Class B (b)
  

60,521

   

14,033,004

  

Chubb, Ltd. (c)

  

14,036

   

2,160,421

  
  

Shares

 

Value(a)

 

Cincinnati Financial Corp.

  

4,606

  

$

402,426

  

Everest Re Group, Ltd. (c)

  

1,252

   

293,081

  

Globe Life, Inc.

  

2,974

   

282,411

  
Hartford Financial
Services Group, Inc.
  

11,143

   

545,784

  

Lincoln National Corp.

  

5,649

   

284,201

  

Loews Corp.

  

7,265

   

327,070

  
Marsh & McLennan
Cos., Inc.
  

15,772

   

1,845,324

  

MetLife, Inc.

  

23,788

   

1,116,847

  
Principal Financial
Group, Inc.
  

7,945

   

394,152

  

Prudential Financial, Inc.

  

12,314

   

961,354

  

The Allstate Corp.

  

9,456

   

1,039,498

  

The Progressive Corp.

  

18,211

   

1,800,704

  

The Travelers Cos., Inc.

  

7,877

   

1,105,695

  

Unum Group

  

6,313

   

144,820

  
Willis Towers
Watson PLC (c)
  

4,009

   

844,616

  

WR Berkley Corp.

  

4,366

   

289,990

  
     

32,266,828

  

Health Care (12.9%)

 

Biotechnology (1.8%)

 

AbbVie, Inc.

  

54,903

   

5,882,857

  
Alexion
Pharmaceuticals, Inc. (b)
  

6,805

   

1,063,213

  

Amgen, Inc.

  

18,104

   

4,162,472

  

Biogen, Inc. (b)

  

4,785

   

1,171,655

  

Gilead Sciences, Inc.

  

38,982

   

2,271,091

  

Incyte Corp. (b)

  

5,788

   

503,440

  
Regeneron
Pharmaceuticals, Inc. (b)
  

3,326

   

1,606,824

  
Vertex
Pharmaceuticals, Inc. (b)
  

8,087

   

1,911,282

  
     

18,572,834

  

Health Care Equipment & Supplies (3.7%)

 

Abbott Laboratories

  

55,117

   

6,034,760

  

ABIOMED, Inc. (b)

  

1,425

   

461,985

  

Align Technology, Inc. (b)

  

2,232

   

1,192,736

  

Baxter International, Inc.

  

15,885

   

1,274,612

  

Becton Dickinson and Co.

  

9,019

   

2,256,734

  

Boston Scientific Corp. (b)

  

44,530

   

1,600,853

  

Danaher Corp.

  

19,661

   

4,367,495

  

Dentsply Sirona, Inc.

  

6,796

   

355,839

  

DexCom, Inc. (b)

  

2,986

   

1,103,984

  
Edwards Lifesciences
Corp. (b)
  

19,381

   

1,768,129

  

Hologic, Inc. (b)

  

7,992

   

582,057

  
IDEXX
Laboratories, Inc. (b)
  

2,688

   

1,343,651

  

Intuitive Surgical, Inc. (b)

  

3,656

   

2,990,974

  

Medtronic PLC (c)

  

41,858

   

4,903,246

  

ResMed, Inc.

  

4,506

   

957,795

  

STERIS PLC (c)

  

2,645

   

501,333

  

Stryker Corp.

  

10,167

   

2,491,322

  

Teleflex, Inc.

  

1,454

   

598,423

  

The Cooper Cos., Inc.

  

1,566

   

568,959

  
Varian Medical
Systems, Inc. (b)
  

2,761

   

483,203

  

See accompanying notes to financial statements.
78



SFT Index 500 Fund
Investments in Securities – continued

  

Shares

 

Value(a)

 
West Pharmaceutical
Services, Inc.
  

2,330

  

$

660,112

  
Zimmer Biomet
Holdings, Inc.
  

6,446

   

993,264

  
     

37,491,466

  

Health Care Providers & Services (2.3%)

 

AmerisourceBergen Corp.

  

4,512

   

441,093

  

Anthem, Inc.

  

7,734

   

2,483,310

  

Cardinal Health, Inc.

  

9,124

   

488,682

  

Centene Corp. (b)

  

18,030

   

1,082,341

  

Cigna Corp.

  

11,235

   

2,338,902

  

DaVita, Inc. (b)

  

2,298

   

269,785

  

HCA Healthcare, Inc.

  

8,207

   

1,349,723

  

Henry Schein, Inc. (b)

  

4,383

   

293,047

  

Humana, Inc.

  

4,112

   

1,687,030

  
Laboratory Corp. of
America Holdings (b)
  

2,984

   

607,393

  

McKesson Corp.

  

4,993

   

868,383

  

Quest Diagnostics, Inc.

  

4,127

   

491,815

  

UnitedHealth Group, Inc.

  

29,507

   

10,347,515

  
Universal Health Services,
Inc. – Class B
  

2,330

   

320,375

  
     

23,069,394

  

Health Care Technology (0.1%)

 

Cerner Corp.

  

9,534

   

748,228

  

Life Sciences Tools & Services (1.2%)

 

Agilent Technologies, Inc.

  

9,516

   

1,127,551

  
Bio-Rad Laboratories,
Inc. – Class A (b)
  

692

   

403,394

  

Illumina, Inc. (b)

  

4,540

   

1,679,800

  

IQVIA Holdings, Inc. (b)

  

5,962

   

1,068,212

  
Mettler-Toledo
International, Inc. (b)
  

767

   

874,135

  

PerkinElmer, Inc.

  

3,434

   

492,779

  
Thermo Fisher
Scientific, Inc.
  

12,326

   

5,741,204

  

Waters Corp. (b)

  

1,944

   

480,984

  
     

11,868,059

  

Pharmaceuticals (3.8%)

 

Bristol-Myers Squibb Co.

  

70,274

   

4,359,096

  

Catalent, Inc. (b)

  

5,121

   

532,943

  

Eli Lilly & Co.

  

24,691

   

4,168,828

  

Johnson & Johnson

  

81,867

   

12,884,229

  

Merck & Co., Inc.

  

78,679

   

6,435,942

  

Perrigo Co. PLC (c)

  

4,173

   

186,617

  

Pfizer, Inc.

  

172,856

   

6,362,829

  

Viatris, Inc. (b)

  

37,518

   

703,087

  

Zoetis, Inc.

  

14,780

   

2,446,090

  
     

38,079,661

  

Industrials (8.3%)

 

Aerospace & Defense (1.5%)

 

General Dynamics Corp.

  

7,228

   

1,075,671

  

Howmet Aerospace, Inc.

  

12,135

   

346,333

  
Huntington Ingalls
Industries, Inc.
  

1,189

   

202,701

  

L3Harris Technologies, Inc.

  

6,534

   

1,235,057

  

Lockheed Martin Corp.

  

7,657

   

2,718,082

  

Northrop Grumman Corp.

  

4,822

   

1,469,360

  
  

Shares

 

Value(a)

 
Raytheon
Technologies Corp.
  

47,229

  

$

3,377,346

  
Teledyne
Technologies, Inc. (b)
  

1,186

   

464,888

  

The Boeing Co.

  

16,502

   

3,532,418

  

TransDigm Group, Inc. (b)

  

1,669

   

1,032,860

  
     

15,454,716

  

Air Freight & Logistics (0.7%)

 
CH Robinson
Worldwide, Inc.
  

4,150

   

389,561

  
Expeditors International
of Washington, Inc.
  

5,239

   

498,281

  

FedEx Corp.

  

7,513

   

1,950,525

  
United Parcel Service,
Inc. – Class B
  

22,242

   

3,745,553

  
     

6,583,920

  

Airlines (0.3%)

 

Alaska Air Group, Inc.

  

3,843

   

199,836

  
American Airlines
Group, Inc.
  

18,994

   

299,535

  

Delta Air Lines, Inc.

  

19,832

   

797,445

  

Southwest Airlines Co.

  

18,356

   

855,573

  
United Airlines
Holdings, Inc. (b)
  

9,101

   

393,618

  
     

2,546,007

  

Buil