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)
Paul J. Thibodeaux, 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, 2021
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, 2021
SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
SFT Core Bond Fund
SFT Delaware IvySM Growth Fund (Formerly SFT IvySM Growth Fund)
SFT Delaware IvySM Small Cap Growth Fund (Formerly SFT IvySM Small Cap Growth Fund)
SFT Equity Stabilization Fund (Formerly SFT Managed Volatility Equity Fund)
SFT Government Money Market Fund
SFT Index 400 Mid-Cap Fund
SFT Index 500 Fund
SFT International Bond Fund
SFT Real Estate Securities Fund
SFT T. Rowe Price Value Fund
SFT Wellington Core Equity Fund
TABLE OF CONTENTS
Page No. | |||||||
Letter from the President | 1 | ||||||
Portfolio Manager Reviews | |||||||
SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund) | 2 | ||||||
SFT Core Bond Fund | 7 | ||||||
SFT Delaware IvySM Growth Fund (Formerly SFT IvySM Growth Fund) | 11 | ||||||
SFT Delaware IvySM Small Cap Growth Fund (Formerly SFT IvySM Small Cap Growth Fund) | 15 | ||||||
SFT Equity Stabilization Fund (Formerly SFT Managed Volatility Equity Fund) | 19 | ||||||
SFT Government Money Market Fund | 24 | ||||||
SFT Index 400 Mid-Cap Fund | 26 | ||||||
SFT Index 500 Fund | 30 | ||||||
SFT International Bond 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 Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund) | 52 | ||||||
SFT Core Bond Fund | 58 | ||||||
SFT Delaware IvySM Growth Fund (Formerly SFT IvySM Growth Fund) | 67 | ||||||
SFT Delaware IvySM Small Cap Growth Fund (Formerly SFT IvySM Small Cap Growth Fund) | 69 | ||||||
SFT Equity Stabilization Fund (Formerly SFT Managed Volatility Equity Fund) | 71 | ||||||
SFT Government Money Market Fund | 72 | ||||||
SFT Index 400 Mid-Cap Fund | 73 | ||||||
SFT Index 500 Fund | 80 | ||||||
SFT International Bond Fund | 88 | ||||||
SFT Real Estate Securities Fund | 92 | ||||||
SFT T. Rowe Price Value Fund | 93 | ||||||
SFT Wellington Core Equity Fund | 96 | ||||||
Financial Statements | |||||||
Statements of Assets and Liabilities | 98 | ||||||
Statements of Operations | 100 | ||||||
Statements of Changes in Net Assets | 102 | ||||||
Financial Highlights | 107 | ||||||
Notes to Financial Statements | 119 | ||||||
Fund Expense Examples | 137 | ||||||
Proxy Voting and Quarterly Holdings Information | 138 | ||||||
Statement Regarding Liquidity Risk Management Program | 140 | ||||||
Trustees and Executive Officers | 141 |
Letter from the President
Another year of surviving the pandemic has brought many opportunities and challenges, even as our healthcare, education, and supply-chain systems remain strained. However, strong market performance for the year reflected an increase in earnings, expectations for robust economic growth and confidence that the predicted Federal Reserve rate hikes will be sufficient to keep a lid on inflation.
We appear to be facing a prolonged pandemic, that is potentially changing to endemic—something we will live with going forward. While the economy has opened, new variants put added pressure on society and businesses. Companies have rolled back return-to-office dates and are having a difficult time filling open positions. A lack of willing workers is a headwind, stemming in part from early retirements, lower immigration, and persistent pandemic effects. So far, companies have been able to push through price increases to maintain margins, but resultant inflation has been higher and more persistent than expected. Companies will have their work cut out for them should growth slow from current high levels and wage pressures increase.
2021 saw exceptional market returns across most major asset classes. The S&P 500® ended the year up 28.7 percent, ending just off its record high. Fixed income returns were down, with the Bloomberg U.S. Aggregate Bond Index at -1.54 percent for the year.
As we look forward to 2022, we believe we are likely to see more volatility as the markets navigate concerns of monetary tightening, high valuations and the mid-term election cycle. The crosscurrents between near-term inflationary concerns and longer-term secular declines in inflation and potential growth will likely be a story for some time. We remain optimistic that the Federal Reserve will find the right balance, while being alert to the possibility that the inflation and interest rates regimes could change.
As always, we believe the best investment tactic is to position for the long-term and use diversification to reduce risk of a downside surprise.
Sincerely,
David Kuplic
President, Securian Funds Trust
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SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
Craig M. Stapleton, CFA, FRM, Jeremy Gogos, Ph.D., CFA and Merlin Erickson Portfolio Managers
Fund Objective
The SFT Balanced Stabilization Fund seeks to maximize risk-adjusted total return relative to its blended benchmark index comprised of 60 percent S&P 500® Index and 40 percent Bloomberg U.S. Aggregate Bond Index (collectively, the Blended Benchmark Index). The SFT Balanced Stabilization 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 13.46 percent over the 12 months ending December 31, 2021. The Blended Benchmark Index returned 15.86 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 the Fund's 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.
In 2021, markets experienced rather low equity volatility, especially since the COVID-19 pandemic saw three appreciable domestic waves in this period, Russia-NATO tensions continued to escalate in Eastern Europe, China-U.S. relations continued to degrade, and the Federal Reserve (Fed) was confronted with the catch-22 of escalating inflation in the face of multiple risk asset bubbles. Realized volatility on the S&P 500® saw a minimum of 6.55 percent, and a maximum of 21.10 percent, over the course of the year. Thus, the Fund's equity exposure ranged from a minimum of 44.76 percent to a maximum of 80.46 percent.
The long run realized volatility of the S&P 500® is 18.73 percent. Given that the highest level of realized volatility seen in the first three quarters of 2021 was only a bit above average, at 19.48 percent, the Fund held a fairly high equity exposure during this time, averaging 68.93 percent. Equity volatility escalated somewhat during Q4 of 2021, and so the Fund held an average equity exposure of 57.94 percent during this period. The S&P 500® produced a total return of 11.02 percent in Q4, despite the fact that volatility escalated to 21.10 percent toward the end of the year. This equity underweight in Q4 was the primary driver of the Fund's performance lag relative to the benchmark.
The fixed income portion of the Fund outperformed the Blended Benchmark Index's fixed income allocation, which generated -0.29 percent and -0.71 percent of portfolio return, respectively. While we do not view materially higher interest rates as a likely possibility, we maintained a shorter duration than the Blended Benchmark Index for essentially all of 2021, given the asymmetric nature of possible rate paths going forward.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Calendar year 2021 was, by superficial metrics, boring relative to 2020:
• Realized volatility was 13.10 percent for the year, a 46th percentile rank historically.
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• The 26.89 percent S&P 500® price return was a fairly high 86th percentile rank historically, and the return-per-unit-of-risk of 2.05—i.e. the ratio of 26.89 to 13.10—was similarly an 84th percentile value historically.
• "Growth" continued to outperform "Value"; the S&P Growth Index returned 32.00 percent for the year, while the S&P Value index returned 24.86 percent.
• Rates rose over 2021, but short and intermediate rates saw much larger increases than the long end:
o 5 Year U.S. Treasury +91 basis points
o 10 Year U.S. Treasury +60 basis points
o 30 Year U.S. Treasury +26 basis points
Make no mistake, despite the benign superficial metrics, we continue to view risk markets as distorted by easy monetary policy, and ripe for risk asset repricing:
• The S&P 500® and Nasdaq Composite finished the year down only 0.56 percent and 7.55 percent, respectively, from their all-time highs.
• Fundamental equity valuations remain at, or near, all-time highs; for example, the Shiller Price-Earnings (PE) ratio closed out 2021 at 39.63, a level eclipsed only during the Dotcom bubble.
• The average monthly Consumer Price Index (CPI) year-over-year reading for 2021 was 4.70 percent, the highest calendar-year average since 1990.
• The abnormal inflation induced by the pandemic, via supply-chain disruption, direct-to-consumer stimulus, and demand-driven repricing of labor, leaves the Fed squarely in the monetary policy corner it has painted itself into.
In addition to elevated valuations, many market observers (including us) have highlighted the ongoing concentration of S&P 500® market cap in a very small number of technology behemoths. 2021 saw no improvement in this situation; the top seven S&P 500® companies by market cap—Apple, Microsoft, Google, Amazon, Tesla, Meta (Facebook), and NVIDIA—comprised over 27 percent of the total S&P 500® market capitalization at the end of 2021. In an equal-weighted index, these seven names would only comprise about 1.4 percent of the index.
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 positions in S&P 500® futures, long and short S&P 500® put options, long and short Chicago Board Options Exchange (CBOE) Volatility Index (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 believe the Fed can no longer continue to foster easy monetary conditions, which have been a boon to risk assets for most of the period since the Great Financial Crisis. Inflation has sprawled out from equity and bond valuations to real consumer product prices, and so the Fed adopted a much more hawkish stance in late 2021; it began tapering its asset purchases in November, and currently expects to completely stop purchasing assets by early 2022. Further, the market is pricing in multiple rate hikes thereafter, which—assuming the usual 25 basis point increase—will leave the front end of the Treasury curve around 1.00 percent at the end of 2022.
The Fed last attempted to hike its policy rate over the 2016-2018 time frame. It hiked its policy rate from 0 to 2.25 percent, over the period December 15, 2015 through December 19, 2018. Over the same time frame, the 10 Year U.S. Treasury rate moved only 50 basis points, from 2.30 percent to 2.80 percent. By mid-2019 the yield curve was deeply inverted, the S&P 500® had seen a -20 percent pullback (Q4 of 2018), and the Fed was forced to contemplate cutting its policy rate, which it began to do over the second half of 2019.
3
Admittedly, we believe the current supply chain issues, elevated demand of stimulus-enriched consumers, and potential wage increases necessitated by the extreme difficulty employers are currently facing in hiring, could all sustain inflation long enough to naturally force rates higher, thereby helping the Fed in its tightening campaign. But we think it more likely that the Fed's current attempt to tighten monetary policy will elicit a negative reaction from risk markets, similar to late 2018.
We anticipate that geopolitics will be a headwind for risk assets in the coming year:
• Domestically, the political climate continues to be deeply divisive, to the point where even rifts within the Democratic Party seem likely to derail President Biden's infrastructure initiative, which would have benefited the economy and been a major step in the "monetary to fiscal policy" handoff that could have provided a clearer path forward for the Fed.
• China continues to have an abysmal human rights record, as well as obvious aspirations to challenge the U.S. for global dominance. Simultaneously, China's GDP growth has been slowing as of late. Given how pivotal China's contribution to global growth has been, unanticipated economic slowing in China could have global repercussions, as could sanctions or other diplomatic steps that could be undertaken in the event of escalating U.S.-China tensions.
• Russia is also a geopolitical wildcard, as it has amassed a huge military buildup near the Ukrainian border. Given that Russia already annexed Crimea in 2014 and has generally been escalating its rhetoric regarding NATO in Eastern Europe, the risk of Russia attacking Ukraine and, by extension, Western Europe and the U.S. being dragged into a conflict, should not be underestimated.
In short, we anticipate elevated equity volatility, and see more potential downside risk than upside reward, in 2022.
In a tactical sense, we will continue to use our volatility metrics to inform the equity allocation 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.
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Ten Largest Holdings^
Security description | Market value | % of net assets | |||||||||
iShares Core S&P 500 ETF | $ | 50,293,826 | 6.9 | % | |||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 30,523,994 | 4.2 | % | ||||||||
SPDR S&P 500 ETF Trust | 17,179,303 | 2.4 | % | ||||||||
Vanguard S&P 500 ETF | 8,807,800 | 1.2 | % | ||||||||
Southern Natural Gas Co. LLC 4.800%, 3/15/47 | 1,804,880 | 0.2 | % | ||||||||
Pine Street Trust I 4.572%, 2/15/29 | 1,694,796 | 0.2 | % | ||||||||
Raytheon Technologies Corp. 4.125%, 11/16/28 | 1,677,588 | 0.2 | % | ||||||||
Welltower, Inc. 4.125%, 3/15/29 | 1,672,577 | 0.2 | % | ||||||||
Bank 2019-BNK18 3.584%, 5/15/62 | 1,646,535 | 0.2 | % | ||||||||
ONEOK, Inc. 4.35%, 3/15/29 | 1,641,090 | 0.2 | % | ||||||||
$ | 116,942,389 | 15.9 | % |
^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 Balanced Stabilization 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)
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, Inc. provides ratings for securities that are not assigned a rating by the agencies.
5
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Balanced Stabilization Fund,
the Blended Benchmark Index and Consumer Price Index (CPI)
On the chart above you can see how the SFT Balanced Stabilization 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 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, 2021, 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 Balanced Stabilization 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 Expense Limitation Agreement was terminated on May 1, 2021. 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 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 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.
6
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 -0.54 percent over the 12 months ending December 31, 2021, outperforming the Bloomberg U.S. Aggregate Bond Index which returned -1.54 percent over the same period.
What influenced the Fund's return during the past 12 months?
Strong market performance reflected an explosive increase in earnings, expectations for robust economic growth and confidence that predicted rate hikes will be sufficient to keep a lid on inflation. Investors are also betting that companies can maintain margins even as growth slows and supply chain pressures and calls for higher wages persist. While we saw several significant waves of new COVID-19 variants, markets proved resilient as each subsequent episode had less of an impact. Estimates for economic growth have come down since June, but earnings have continued to surprise to the upside with Factset estimating earnings per share (EPS) growth at over 40 percent in 2021.
Risk assets surged at the end of the quarter with the S&P 500® returning 28.7 percent for the year, ending just off its record high. In the last quarter of the year, policymakers bowed to the market consensus that inflation is likely to remain higher than targeted. Investors took the news of a course correction in stride as the Federal Open Market Committee projected a faster taper of asset purchases and pulled forward guidance for rate hikes. The shift to a tighter stance is a global phenomenon, as a number of central banks raised rates. Despite the new bias, financial conditions remain extremely easy and projected hikes are modest in comparison. Market pricing now reflects an extended, but not out of control, breach of the Federal Reserve's (Fed) 2 percent stated inflation target. Investors believe that central bank actions will release enough steam for inflation to average under 3 percent over the next 5 years as measured by the Fed 5-year break-even rate.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Yields broke out of their recent range and moved up across the curve, particularly in the short end, finishing at the highs of the year. The rise in yields during the year resulted in negative total returns across all tenors of the curve. Investment grade corporate bonds, particularly on the long end, underperformed Treasuries, and the securitized sector during the fourth quarter. Industrials performed the worst during the period but finished the year with the best excess returns in the corporate sector. In the securitized Commercial Mortgage-Backed Securities (CMBS) and Asset-Backed Securities (ABS) sector, overall it was option adjusted spreads (OAS) vs. Treasuries of the CMBS and ABS sectors that widened modestly during the quarter, but outperformed Mortgage-Backed Securities (MBS) and Treasuries over the full year. MBS was the only fixed-income sector that underperformed Treasuries on the year. While corporate bonds outperformed Treasuries for the year, high quality bonds produced a negative nominal total return in 2021, the first since 2013.
7
What strategies and techniques did you employ that specifically affected Fund performance?
Positive security selection results were the primary driver of the Fund's outperformance for the year. The Fund's positions in the industrial sector, particularly in pipelines and airlines, contributed to much of the positive results. Performance of several positions in the single-family rental sector in ABS, credit-risk transfer securities in MBS and in financials also contributed. The Fund also benefitted from the decision to underweight Agency MBS, and overweight corporate bonds, local authority bonds, CMBS and Collateralized Mortgage Obligations (CMO).
As corporate spreads tightened to multi-year tight levels during the first half of the year, the portfolio management team actively reduced corporate exposure through most of the year. This decision paid dividends as corporate bonds produced negative excess returns in the second half of the year. The decision to increase exposure to the securitized sector, particularly in ABS and non-Agency CMO, offset some of that benefit in the second half of the year.
Consistent with our philosophy, overall duration did not exhibit material differences from the Fund's benchmark in 2021 and interest rate positioning contributed very little to performance relative to the Fund's benchmark.
What will affect the Fund going forward?
After weaker-than-expected Q3 Gross Domestic Product (GDP) growth, we anticipate strong growth to finish the year and slower, but still above-trend, growth in 2022. An agonizingly slow normalization of the economy continues to present unique challenges to forecasters. New COVID-19 variants continue to pop up, and supply chains are still out of whack. Another year of higher-than-normal investment and stronger imports should ease the supply situation, but Omicron may slow this process.
Consumer spending is likely to be robust as the continued overhang of unspent savings and investment gains propels growth next year. Even so, the handoff from public support to private employment isn't complete. A lack of willing workers is a headwind, stemming from early retirements, lower immigration, and persistent pandemic effects. We expect the labor market to stabilize next year, but with tighter conditions than the pre-pandemic balance. So far, companies have been able to push through price increases to maintain margins, but resultant inflation has been higher and more persistent than expected. Consumers are frustrated that key financial goals like home ownership or a new car purchase feel more out of reach as wage increases fall short of inflation. We're not too worried about a recession, but weaker consumer sentiment and a tight labor market are likely to continue to pressure policymakers and employers.
The big question on investors' minds is whether buyers will continue to accept rates that don't keep pace with inflation. As the pandemic wanes and labor and supply chain challenges resolve, we believe inflation is likely to fall in 2022. However, companies report they expect supply chain pressures to persist for now, confidence in pricing power is growing, labor is making gains, and housing effects will lag. These challenges skew inflation risk to the upside in the coming year.
Despite these risks, rates may remain subdued. High levels of debt, an aging population, disruptive technological change, and concentrated wealth remain powerful forces. The present comfort with long term rates near 2 percent reflects a belief that these impulses will dominate. However, de-globalization and supply chain rationalization, pressure to address climate change and inequality, and depressed levels of immigration present more serious structural challenges. Other factors may exacerbate supply and demand imbalances. These include more fiscal/monetary policy coordination with an emphasis on direct cash support and policy tilts towards higher regulation and trust busting at a time when potential growth is slowing. These factors increase the risk that inflation could remain higher than desired for some time, creating both political and financial policy stress.
The combination of monetary tightening, high valuations and an election cycle are likely to be a more volatile mix in the coming year. The battle between longer term disinflationary secular trends and declining potential growth versus the hotter mix of easy financial conditions, populist policies and the costs of climate mitigation is likely to be the story for some time. Like the Fed, we need to be data driven and alert to the possibility that the inflation and rates regimes could change.
8
Ten Largest Holdings^
Security description | Market value | % of net assets | |||||||||
U.S. Treasury Bond 1.750%, 8/15/41 | $ | 14,517,480 | 2.7 | % | |||||||
U.S. Treasury Note 1.125%, 2/29/28 | 8,212,189 | 1.5 | % | ||||||||
U.S. Treasury Note 0.625%, 12/31/27 | 7,660,000 | 1.4 | % | ||||||||
U.S. Treasury Bond 2.000%, 8/15/51 | 7,169,531 | 1.4 | % | ||||||||
U.S. Treasury Note 5.375%, 2/15/31 | 6,841,313 | 1.3 | % | ||||||||
U.S. Treasury Bond 1.375%, 11/15/40 | 6,534,430 | 1.2 | % | ||||||||
U.S. Treasury Bond 1.875%, 2/15/41 | 6,522,778 | 1.2 | % | ||||||||
U.S. Treasury Note 0.875% 9/30/26 | 5,213,820 | 1.0 | % | ||||||||
U.S. Treasury Note 0.625%, 10/15/24 | 5,162,352 | 1.0 | % | ||||||||
Invitation Homes 2018-SFR4 Trust 1.509%, 1/17/38 | 5,047,747 | 1.0 | % | ||||||||
$ | 72,881,640 | 13.7 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of investments)
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, Inc. 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 Core Bond Fund,
Bloomberg 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 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, 2011 through December 31, 2021, 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 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.
10
SFT Delaware IvySM Growth Fund (Formerly SFT IvySM Growth Fund)
Bradley M. Klapmeyer, CFA, Brad Angermeier, CFA Portfolio Managers Delaware Investments Fund Advisers
Fund Objective
The SFT Delaware 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. The investment adviser for the Fund is Securian Asset Management, Inc. Delaware Investments Fund Advisers serves as investment sub-adviser to the Fund and provides investment advice under a sub-advisory agreement. Prior to May 3, 2021, the Fund was sub-advised by Ivy Investment Management Company. 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 30.29 percent over the 12 months ending December 31, 2021, outperforming the Russell 1000 Growth Index which returned 27.60 percent over the same period.
What influenced the Fund's return during the past 12 months?
During the measurement period, the Fund had a strong return, outperforming its benchmark. Stock selection drove most of the performance in the fiscal year. From a sector perspective, information technology was the largest contributor to relative performance followed by healthcare. Communication services and consumer discretionary were the largest negative contributors. We stuck to our discipline over the period, which was rewarded as many of the pandemic-driven excesses of 2020 continued to unwind in 2021. We maintained a focus on quality growth companies which we believe will be rewarded through the cycle.
What other market conditions or events influenced the Fund's performance during the past 12 months?
The last quarter of the period included notable action at the Federal Reserve (Fed), which began to forecast a more aggressive pace of interest rate hikes during 2022. The Fed's forecast confirmed what we were already seeing in the data—inflationary pressures are widespread and creeping into wages. The Fed also intends to move quickly to reduce the size of its balance sheet. The most notable aspect of these announcements is the move away from zero interest rate policy, which the market has generally taken in stride.
Outside of sustained inflationary pressure, overall economic indicators remained supportive of near-term growth. Housing data remained strong (although constrained by lack of available inventory), the labor market was robust, manufacturing orders and production remained near record levels bolstered by lean inventory, and spending on services continued its path toward normalization after a significant decline in 2020.
Materials, information technology, consumer staples, and real estate were the best performing sectors within the Fund's benchmark, although it is important to note that there was significant dispersion of returns within each of the sectors. Communication services, utilities, financials, healthcare, and industrials were the worst performing sectors for the period.
The fourth quarter proved brutal for many high-growth stocks in the Fund's benchmark as the market rotated from expensive risk toward quality. These dynamics were evident in factor returns, with quality factors (return on assets and return on equity) and value factors (price to free cash flow, free cash flow to enterprise value) outperforming. Earlier in the year we noted quality was outperforming but still taking a backseat to the value trade, but as 2021 progressed it appears quality was riding front seat. The fourth quarter saw significant underperformance of risk factors (beta), and momentum factors (price returns and relative strength) generally lagged as well.
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What strategies and techniques did you employ that specifically affected Fund performance?
Information technology was the largest positive contributor during the period. The Fund was overweight the sector, but positive stock selection was far more impactful to performance than sector allocation. Overweight positions in Gartner, Motorola Solutions, Intuit and NVIDIA were the largest contributors to outperformance. Avoidance of Mastercard, Zoom and Block (formerly known as Square) also contributed positively. Those positive contributors were partially offset by underperformance from overweight positions in Visa and PayPal. We continue to believe Visa is a wide-moat business and the eventual acceleration of its profitable cross-border transactions should improve sentiment and put the stock back on its trajectory of long-term compounding.
Healthcare was also a positive contributor, with all the performance within this sector coming from stock selection rather than sector allocation. The Fund's overweight position in UnitedHealth Group was the largest positive contributor, and positions in Danaher and Zoetis also contributed positively. Overweight positions in Cooper Companies and Cerner Corp. were two of the largest detractors, and the Fund's avoidance of Eli Lilly also contributed negatively during the period. Cerner's stock performed better late in the year following news of Oracle's proposed acquisition of the company.
Within communication services, the Fund's overweight position in Alphabet (parent company of Google) was a positive contributor, and the Fund also benefited from avoiding underperforming internet businesses such as Netflix, Spotify, Roku and Match as well as traditional telecommunication businesses such as Charter Communications and Altice, which underperformed during the period. Those positive contributions were more than offset by underperformance from overweight positions in Electronic Arts and Pinterest, which both suffered from the market rotation away from pandemic beneficiaries.
Consumer discretionary was also a meaningful negative contributor during the period. The Fund's avoidance of Tesla was the largest negative contributor, and positions in Ferrari and Booking Holdings were also sources of underperformance. Those negative contributors were partially offset by strong performance from the Fund's position in Home Depot and by the avoidance of Peloton, the latter of which was down significantly during the fiscal year after artificially high pandemic demand began evaporating in the face of rising competitive intensity. The Fund's position in Home Depot has been reduced after strong performance in 2021, and we continue to avoid Tesla given what we believe are unrealistic expectations priced into the stock.
What will affect the Fund going forward?
We think the backdrop for 2022 looks more balanced with multiple Fed interest rate hikes, a reduced Fed balance sheet, a reduction in federal outlays, normalization of the frantic inventory and logistics situation, a slowdown in manufacturing growth, and lingering inflationary pressures. There appear to be supportive forces to economic growth, but these will all act as new counterbalancing forces during 2022.
We do pause when we consider the (unknown) impacts of coming off record levels of monetary and fiscal stimulus while markets are still sitting with historically high valuation multiples. A cocktail of high multiples and decelerating growth could suggest the market needs to reassess the underlying assumptions for growth and valuations, particularly in richly valued growth stocks. Conceptually we like the idea that the tailwinds supporting the market for the past decade—easy money and multiple expansion—are ebbing as it potentially implies lower market and stock correlations and increased dispersion of returns. We believe these are ingredients for an environment ripe for skilled active stock picking and business model selection.
We do see further risk to the growthy tail due to the overestimation of growth sustainability for many names in the growth universe. Any future drawdown that occurs from this overestimation could be painful as the impact is twofold—a normalization of growth expectations (negative revisions) and a compression of the valuation multiple.
While we see pockets of risk in highly valued, unproven businesses, we do see attractive opportunities for strong multi-year returns in many higher quality (strong returns on assets, profitability, and lower volatility) growth businesses. Importantly, we believe the secular growth dynamics in high-quality stocks will help these stocks sustain a premium relative valuation if market volatility increases.
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Our conviction is high that quality is more persistent than growth, and that starting with quality business models, then selecting growth through a discipled selection process should be fruitful across economic cycles.
Ten Largest Holdings^
Security description | Market value | % of net assets | |||||||||
Microsoft Corp. | $ | 85,809,357 | 12.2 | % | |||||||
Apple, Inc. | 62,488,659 | 8.9 | % | ||||||||
Amazon.com, Inc. | 45,803,829 | 6.5 | % | ||||||||
Alphabet, Inc. Class A | 39,744,492 | 5.6 | % | ||||||||
NVIDIA Corp. | 30,530,089 | 4.3 | % | ||||||||
Visa, Inc. Class A | 29,143,594 | 4.1 | % | ||||||||
Motorola Solutions, Inc. | 28,560,017 | 4.0 | % | ||||||||
VeriSign, Inc. | 26,338,140 | 3.7 | % | ||||||||
UnitedHealth Group, Inc. | 23,871,736 | 3.4 | % | ||||||||
Meta Platforms, Inc. Class A | 20,044,106 | 2.8 | % | ||||||||
$ | 392,334,019 | 55.5 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
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Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Delaware IvySM Growth Fund,
the Russell 1000 Growth Index and Consumer Price Index (CPI)
On the chart above you can see how the SFT Delaware 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, 2021, 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 the Delaware Investments Fund Advisers, the Fund's sub-adviser.
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SFT Delaware IvySM Small Cap Growth Fund (Formerly SFT IvySM Small Cap Growth Fund)
Timothy J. Miller, CFA, Kenneth G. McQuade, CFA Portfolio Managers Delaware Investments Fund Advisers
Fund Objective
The SFT Delaware 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. The investment adviser for the Fund is Securian Asset Management, Inc. Delaware Investments Fund Advisers serves as investment sub-adviser to the Fund and provides investment advice under a sub-advisory agreement. Prior to May 3, 2021, the Fund was sub-advised by Ivy Investment Management Company. 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 4.58 percent over the 12 months ending December 31, 2021, outperforming the Russell 2000 Growth Index which returned 2.83 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Fund slightly outperformed its benchmark for the fiscal year. A larger gain generated through mid-year was diminished in the second half as pressure from the rotation to value stocks hurt Fund performance. For the measurement period, the sectors contributing to positive performance included healthcare, consumer discretionary, and communication services. On the downside, industrials, information technology, and real estate were the primary drags on performance.
What other market conditions or events influenced the Fund's performance during the past 12 months?
The small-cap growth market fizzled heading into year-end 2021. After producing big returns in 2020, Russell 2000 Growth Index was the worst-performing Russell index for the calendar year. A variety of forces accounted for the tepid returns, including valuation factors, interest rate concerns, and a strong cyclical earnings recovery, which mostly benefitted value stocks. In addition, there was another surge from the mega-cap stocks, which drove a 12 percent gain in the Russell 1000 Growth Index compared to the virtually flat performance of Russell 2000 Growth Index. The FANG+ group of mega-cap company stocks accounted for nearly half of the Russell 1000 Growth Index performance in the fourth quarter.
Concerns over rising inflation and implications for sooner than expected Federal Reserve tightening cast a big cloud (pun intended) over the highly valued small-cap software stocks that are a large and important component of the information technology sector. A similar impact was felt by biotechnology and medical technology stocks. Small-cap value continued its outperformance versus small-cap growth during the quarter as investors responded favorably to a strong earnings growth recovery in the cyclical areas of industrials, materials, and consumer discretionary.
What strategies and techniques did you employ that specifically affected Fund performance?
Healthcare was the largest weighted sector in the Fund's benchmark while also the worst performing sector, down greater than 20 percent for the fiscal year. COVID-19 was the obvious key focal point that created many direct impacts such as minimal capacity for many medical procedures, lower private pay from higher unemployment, lack of capacity for clinical trials, and significant stress on healthcare staffing. The result was slower volumes, lower profitability, and less visibility along most of the sector. Biotechnology was the worst performing segment due to the
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mentioned fundamental issues along with rising interest rates affecting speculative valuations. The Fund remained underweight healthcare due to an underweight position in biotechnology, which was the primary reason for relative outperformance. In addition, the Fund had exposure across the risk spectrum including exposure to medical staffing and more efficient healthcare delivery, which contributed to positive stock selection.
Information technology is the other large weighting in the Fund, and it was impacted primarily by the macro factors mentioned above. While the fundamental picture for the sector appears to remain healthy, the combination of lower relative earnings growth and higher interest rates have impacted these stocks. Information technology has been a stellar performer over the past few years with valuations reaching record levels, which has made the group vulnerable to these trends. The Fund had reduced exposure to the most extreme valued software names throughout the fiscal year but nevertheless maintained an above-average weighting in the group, which impacted performance. Within the information technology sector, the principal drag was from the software industry whereas the Fund's semiconductor and information technology services industry holdings were positive contributors.
Consumer discretionary and industrials were the next two greatest sector weightings during the measurement period. Positive returns were generated in consumer discretionary led primarily by the hotel, gaming, and restaurant industries. Companies such as Marriott Vacations, Churchill Downs, and Wyndham Hotels were beneficiaries of the healthy consumer spending trends. The industrials sector was a meaningful outperformer for the benchmark during the measurement period. Sector performance was quite volatile throughout the fiscal year based on investors' reactions to economic measures. The more cyclical segments performed better overall with the strongest being road and rail, building products, and construction and engineering. The more unestablished growth segments such as alternative energy and services were underperformers. The Fund had some exposure to cyclical names but maintained greater exposure to secular growth names, which were a relative detractor for the fiscal year. The aerospace and defense segment was also a negative contributor as it is considered a more defensive segment. It was also impacted by concerns of federal budget constraints and manufacturer operating issues. The Fund's higher exposure to defense was also a detractor.
What will affect the Fund going forward?
We think macroeconomic factors will continue to pose a challenge for the Fund in the near term, which heightens the Fund's emphasis on quality growth companies and diversification. We believe small-cap growth and innovation however will not slow down in a period of modestly rising interest rates, and companies delivering above-average growth and returns should be rewarded in the stock market. Further, we believe the current instability in the markets provides great opportunities to position the Fund in these types of companies across the growth spectrum.
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Ten Largest Holdings^
Security description | Market value | % of stock portfolio | |||||||||
Globant SA | $ | 6,109,051 | 3.0 | % | |||||||
SiTime Corp. | 5,294,681 | 2.6 | % | ||||||||
Knight-Swift Transportation Holdings, Inc. | 5,021,212 | 2.5 | % | ||||||||
Varonis Systems, Inc. | 4,995,413 | 2.4 | % | ||||||||
Tandem Diabetes Care, Inc. | 4,958,580 | 2.4 | % | ||||||||
Vocera Communications, Inc. | 4,449,904 | 2.2 | % | ||||||||
Omnicell, Inc. | 4,448,026 | 2.2 | % | ||||||||
Marriott Vacations Worldwide Corp. | 4,337,210 | 2.1 | % | ||||||||
CryoPort, Inc. | 4,182,491 | 2.0 | % | ||||||||
Pinnacle Financial Parters, Inc. | 4,058,655 | 2.0 | % | ||||||||
$ | 47,855,223 | 23.4 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
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Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Delaware IvySM Small Cap Growth Fund,
the Russell 2000 Growth Index and Consumer Price Index (CPI)
On the chart above you can see how the SFT Delaware 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, 2021, 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 the Delaware Investments Fund Advisers, the Fund's sub-adviser.
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SFT Equity Stabilization Fund (Formerly SFT Managed Volatility Equity Fund)
Craig M. Stapleton, CFA, FRM, Jeremy Gogos, Ph.D., CFA and Merlin Erickson Portfolio Managers
Fund Objective
The SFT Equity Stabilization 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 U.S. 3-Month Treasury Bellwether Index (collectively, the Blended Benchmark Index). The SFT Equity Stabilization Fund invests at least 80 percent 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 12.18 percent over the 12 months ending December 31, 2021. The Blended Benchmark Index returned 16.48 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 the Fund's 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.
In 2021, markets experienced rather low equity volatility, especially in light of the fact that the COVID-19 pandemic saw three appreciable domestic waves in this period, Russia-NATO tensions continued to escalate in Eastern Europe, China-U.S. relations continued to degrade, and the Federal Reserve (Fed) was confronted with the catch-22 of escalating inflation in the face of multiple risk asset bubbles. Realized volatility on the S&P 500® saw a minimum of 6.55 percent, and a maximum of 21.10 percent, over the course of the year. The Volatility Index (VIX) continued to be elevated, relative to historical norms. Its lowest value in 2021 was 15.01, and its maximum value was 37.21. It is also noteworthy that the average implied-realized spread for the year was 7.15 percent, which is the second-highest value in the full VIX history. The Fund equity exposure ranged from a minimum of 84.37 percent to a maximum of 100 percent.
The long run realized volatility of the S&P 500® is 18.73 percent. Given that the highest level of realized volatility seen in the first three quarters of 2021 was only a bit above average, at 19.48 percent, the Fund held a fairly high equity exposure during this time, averaging 95.82 percent. Equity volatility escalated somewhat during Q4 of 2021, and in response the Fund held an average equity exposure of 92.25 percent during this period, and it closed out the year at 90.41 percent.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Calendar year 2021 was, by superficial metrics, boring relative to 2020:
• Realized volatility was 13.10 percent for the year, a 46th percentile rank historically.
• The 26.89 percent S&P 500® price return was a fairly high 86th percentile rank historically, and the return-per-unit-of-risk of 2.05—i.e. the ratio of 26.89 to 13.10—was similarly an 84th percentile value historically.
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• "Growth" continued to outperform "Value"; the S&P Growth Index returned 32.00 percent for the year, while the S&P Value index returned 24.86 percent.
• Rates rose over 2021, but short and intermediate rates saw much larger increases than the long end:
o 5 Year U.S. Treasury +91 basis points
o 10 Year U.S. Treasury +60 basis points
o 30 Year U.S. Treasury +26 basis points
Make no mistake, despite the benign superficial metrics, we continue to view risk markets as distorted by easy monetary policy, and ripe for risk asset repricing:
• The S&P and Nasdaq finished the year down only 0.56 percent and 7.55 percent, respectively, from their all-time highs.
• Fundamental equity valuations remain at, or near, all-time highs; for example, the Shiller Price-Earnings (PE) ratio closed out 2021 at 39.63, a level eclipsed only during the Dotcom bubble.
• The average monthly Consumer Price Index (CPI) year-over-year reading for 2021 was 4.70 percent, the highest calendar-year average since 1990.
• The abnormal inflation induced by the pandemic, via supply-chain disruption, direct-to-consumer stimulus, and demand-driven repricing of labor, leaves the Fed squarely in the monetary policy corner it has painted itself into.
In addition to elevated valuations, many market observers (including us) have highlighted the ongoing concentration of S&P 500® market cap in a very small number of technology behemoths. 2021 saw no improvement in this situation; the top seven S&P 500® companies by market cap—Apple, Microsoft, Google, Amazon, Tesla, Meta (Facebook), and NVIDIA—comprised over 27 percent of the total S&P 500® market capitalization at the end of 2021. In an equal-weighted index, these seven names would only comprise about 1.4 percent of the index.
What strategies and techniques did you employ that specifically affected Fund performance?
Throughout the year, the Fund held a core long position in domestic and international minimum volatility and dividend-focused cash equity. In addition, the Fund had long positions in S&P 500® futures, long and short S&P 500® put options, long and short Chicago Board Options Exchange (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.
What will affect the Fund going forward?
We believe the Fed can no longer continue to foster easy monetary conditions, which have been a boon to risk assets for most of the period since the Great Financial Crisis. Inflation has sprawled out from equity and bond valuations to real consumer product prices, and so the Fed adopted a much more hawkish stance in late 2021; it began tapering its asset purchases in November, and currently expects to completely stop purchasing assets by early 2022. Further, the market is pricing in multiple rate hikes, which assuming the usual 25bp increase, we believe will leave the front end of the Treasury curve around 1.00 percent at the end of 2022.
The Fed last attempted to hike its policy rate over the 2016-2018 time frame. It hiked its policy rate from 0 to 2.25 percent, over the period December 15, 2015 through December 19, 2018. Over the same time frame, the 10 Year U.S. Treasury rate moved only 50 basis points, from 2.30 percent to 2.80 percent. By mid-2019 the yield curve was actually deeply inverted, the S&P 500® had seen a -20 percent pullback (Q4 of 2018), and the Fed was forced to contemplate cutting its policy rate, which it began to do over the back half of 2019.
Admittedly, we believe the current supply chain issues, elevated demand of stimulus-enriched consumers, and potential wage increases necessitated by the extreme difficulty employers are currently facing in hiring, could all
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sustain inflation long enough to naturally force rates higher, thereby helping the Fed in its tightening campaign. But we think it more likely that the Fed's current attempt to tighten monetary policy will elicit a negative reaction from risk markets, similar to what late 2018 witnessed.
We anticipate that geopolitics will be a headwind for risk assets in the coming year:
• Domestically, the political climate continues to be deeply divisive, to the point where even rifts within the Democratic Party seem likely to derail President Biden's infrastructure initiative, which would have benefited the economy and been a major step in the "monetary to fiscal policy" handoff that could have provided a clearer path forward for the Fed.
• China continues to have an abysmal human rights record, as well as obvious aspirations to challenge the U.S. for global dominance. Simultaneously, China's GDP growth has been slowing as-of late. Given how pivotal China's contribution to global growth has been, unanticipated economic slowing in China could have global repercussions, as could sanctions or other diplomatic steps that could be undertaken in the event of escalating U.S.-China tensions.
• Russia is also a geopolitical wildcard, as it has amassed a huge military buildup near the Ukrainian border. Given that Russia already annexed Crimea in 2014, and has generally been escalating its rhetoric regarding NATO in Eastern Europe, the risk of Russia attacking Ukraine and, by extension, Western Europe and the U.S. being dragged into a conflict, should not be underestimated.
In short, we anticipate elevated equity volatility, and see more potential downside risk than upside reward, in 2022.
In a tactical sense, we will continue to use our volatility metrics to inform the equity allocation 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.
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Ten Largest Holdings^
Security description | Market value | % of market value | |||||||||
iShares Edge MSCI Minimum Volatility USA ETF | $ | 117,860,945 | 31.7 | % | |||||||
iShares Edge MSCI Minimum Volatility EAFE ETF | 87,848,141 | 23.6 | % | ||||||||
iShares Core High Dividend ETF | 65,260,445 | 17.5 | % | ||||||||
iShares Edge MSCI Minimum Volatility Emerging Markets ETF | 22,494,899 | 6.0 | % | ||||||||
iShares MSCI Germany ETF | 17,413,785 | 4.7 | % | ||||||||
BlackRock Short Maturity Bond ETF | 15,915,069 | 4.3 | % | ||||||||
$ | 326,793,284 | 87.8 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
22
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Equity Stabilization Fund,
the Blended Benchmark Index and Consumer Price Index (CPI)
On the chart above you can see how the SFT Equity Stabilization 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 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, 2021, 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 Equity Stabilization 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 Expense Limitation Agreement was terminated on May 1, 2021. 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 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 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.
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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 0.00 percent over the 12 months ending December 31, 2021, underperforming the 3-month U.S. Treasury Bill which returned 0.04 percent over the same period.
What influenced the Fund's return during the past 12 months?
The front-end of the U.S. Treasury curve was unchanged for much of the year. However, during the fourth quarter the front-end steepened with rates on the 3-month U.S. Treasury Bill ending at just 3 basis points and the 1-year U.S. Treasury Bill ending at 37.6 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?
We expect a more volatile interest rate environment as the Federal Reserve (Fed) ends its open market purchases of Treasuries and mortgage-backed securities in the next couple months, and then begins hiking rates by March or April. The market has priced in three to four hikes by the end of this year. Yields in the very short end of the rates curve have barely responded yet, but we expect yields on short-term Treasury bills and other money-market instruments to respond upward as the Fed gets closer to the anticipated hike in rates. While this will introduce more volatility into the market, it should provide more income for money-market investors as these short-term rates rise.
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The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. 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 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 (Trust) approved a Restated Net Investment Income Maintenance Agreement among the 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, 2022, 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 the 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 Fund's business), to 0.70% of the Fund's Average daily net assets through April 30, 2022.
The Agreement renews annually for a full year each year thereafter unless terminated by Securian AM upon at least 30 day's 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 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 in the Fund's prospectus.
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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 23.99 percent over the 12 months ending December 31, 2021; the S&P MidCap 400® returned 24.76 percent over the same period.
What influenced the Fund's return during the past 12 months?
The SFT MidCap 400 Index 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 MidCap 400®.
All nine sectors posted positive annual returns. The energy sector led all sectors with a 12 month return of 60.5 percent. Transportation names followed with an annual return of 36.3 percent. In terms of size, decile 10, (decile segments consist of 40 names) the smallest capitalized names and representing 3.6 percent of the weight in the index, ended the period with a return of 46.9 percent. All other decile groups ended the year with strong double-digit returns.
What other market conditions or events influenced the Fund's performance during the past 12 months?
While we saw several significant waves of new COVID-19 variants, markets proved resilient as each subsequent episode had less of an impact. Estimates for economic growth have come down since June, but earnings have continued to surprise to the upside with Factset estimating earnings per share (EPS) growth at over 40 percent in 2021. Risk assets surged at the end of the fourth quarter with the broader market ending the year just off its record high.
With markets awash in liquidity, there were a few warning signs. Bubbles and speculative bets emerged in meme stocks, crypto currencies, non-fungible tokens, and dry powder set aside for venture capital. Equity market breadth narrowed, and retail participation surged as investors chased returns. With the strong finish to the year, high valuations dismiss the risks of rate hikes, mean reverting margins, labor bargaining power, and anti-trust action.
What will affect the Fund going forward?
We're likely to see more volatility in the coming year as markets navigate concerns about easy financial conditions against a backdrop of above-trend growth and inflation. Companies will have their work cut out as growth slows from heady levels and price pressures continue.
After weaker-than-expected Q3 gross domestic product (GDP) growth, we anticipate a strong finish to the year and slower, but still above-trend, growth in 2022. An agonizingly slow normalization of the economy continues to present unique challenges to forecasters. New COVID-19 variants continue to pop up, and supply chains are still
26
out of whack. Another year of higher-than-normal investment and stronger imports could ease the supply situation, but Omicron may slow this process. We believe consumer spending is likely to be robust as the continued overhang of unspent savings and investment gains propels growth next year. Even so, the handoff from public support to private employment isn't complete. A lack of willing workers is a headwind, stemming from early retirements, lower immigration, and persistent pandemic effects. We believe the labor market will stabilize next year, but with tighter conditions than the pre-pandemic balance. So far, companies have been able to push through price increases to maintain margins, but resultant inflation has been higher and more persistent than expected. Consumers are frustrated that key financial goals like home ownership or a new car purchase feel more out of reach as wage increases fall short of inflation. We're not too worried about a recession, but weaker consumer sentiment and a tight labor market are likely to continue to pressure policymakers and employers.
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Ten Largest Holdings^
Security description | Market value | % of net assets | |||||||||
Molina Healthcare, Inc. | $ | 1,666,103 | 0.7 | % | |||||||
Camden Property Trust | 1,635,637 | 0.7 | % | ||||||||
Builders FirstSource, Inc. | 1,470,098 | 0.6 | % | ||||||||
Trex Co., Inc. | 1,396,750 | 0.6 | % | ||||||||
Masimo Corp. | 1,330,100 | 0.6 | % | ||||||||
Medical Properties Trust, Inc. | 1,260,022 | 0.5 | % | ||||||||
Nordson Corp. | 1,237,549 | 0.5 | % | ||||||||
Cognex Corp. | 1,232,263 | 0.5 | % | ||||||||
Graco, Inc. | 1,227,198 | 0.5 | % | ||||||||
Jones Lang LaSalle, Inc. | 1,224,689 | 0.5 | % | ||||||||
$ | 13,680,409 | 5.7 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
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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, 2011 through December 31, 2021, 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® Index 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.
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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 28.03 percent over the 12 months ending December 31, 2021; the S&P 500® returned 28.71 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®.
All nine sectors posted positive annual returns. The energy sector led all sectors with a 12 month return of 56.5 percent. Consumer durable names followed with an annual return of 45.6 percent. In terms of size, decile 10, (decile segments consist of 50 names) the smallest capitalized names and representing just 1 percent of the weight in the index, ended the period with a return of 40.5 percent. All other decile groups ended the year with strong double-digit returns.
What other market conditions or events influenced the Fund's performance during the past 12 months?
While we saw several significant waves of new COVID-19 variants, markets proved resilient as each subsequent episode had less of an impact. Estimates for economic growth have come down since June, but earnings have continued to surprise to the upside with Factset estimating earnings per share (EPS) growth at over 40 percent in 2021. Risk assets surged at the end of the fourth quarter with the S&P 500® ending the year just off its record high.
With markets awash in liquidity, there were a few warning signs. Bubbles and speculative bets emerged in meme stocks, crypto currencies, non-fungible tokens, and dry powder set aside for venture capital. Equity market breadth narrowed, and retail participation surged as investors chased returns. With the strong finish to the year, high valuations dismiss the risks of rate hikes, mean reverting margins, labor bargaining power, and anti-trust action.
What will affect the Fund going forward?
We're likely to see more volatility in the coming year as markets navigate concerns about easy financial conditions against a backdrop of above-trend growth and inflation. Companies will have their work cut out as growth slows from heady levels and price pressures continue.
After weaker-than-expected Q3 gross domestic product (GDP) growth, we anticipate a strong finish to the year and slower, but still above-trend, growth in 2022. An agonizingly slow normalization of the economy continues to present unique challenges to forecasters. New COVID-19 variants continue to pop up, and supply chains are still out of whack. Another year of higher-than-normal investment and stronger imports could ease the supply situation, but Omicron may slow this process. We believe consumer spending is likely to be robust as the continued
30
overhang of unspent savings and investment gains propels growth next year. Even so, the handoff from public support to private employment isn't complete. A lack of willing workers is a headwind, stemming from early retirements, lower immigration, and persistent pandemic effects. We believe the labor market will stabilize next year, but with tighter conditions than the pre-pandemic balance. So far, companies have been able to push through price increases to maintain margins, but resultant inflation has been higher and more persistent than expected. Consumers are frustrated that key financial goals like home ownership or a new car purchase feel more out of reach as wage increases fall short of inflation. We're not too worried about a recession, but weaker consumer sentiment and a tight labor market are likely to continue to pressure policymakers and employers.
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Ten Largest Holdings^
Security description | Market value | % of total net assets | |||||||||
Apple, Inc. | $ | 82,420,536 | 6.7 | % | |||||||
Microsoft Corp. | 75,197,789 | 6.1 | % | ||||||||
Amazon.com, Inc. | 43,329,748 | 3.5 | % | ||||||||
Alphabet, Inc.—Class A | 25,960,375 | 2.1 | % | ||||||||
Tesla, Inc. | 25,600,496 | 2.1 | % | ||||||||
Alphabet, Inc.—Class C | 24,094,924 | 2.0 | % | ||||||||
Meta Platforms, Inc.—Class A | 23,702,248 | 1.9 | % | ||||||||
NVIDIA Corp. | 21,896,784 | 1.8 | % | ||||||||
Berkshire Hathaway, Inc.—Class B | 16,307,161 | 1.3 | % | ||||||||
UnitedHealth Group, Inc | 14,113,649 | 1.1 | % | ||||||||
$ | 352,623,710 | 28.6 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
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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, 2011 through December 31, 2021, 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.
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SFT International Bond Fund
David Hoffman, CFA, Managing Director
Jack P. McIntyre, CFA, Anujeet Sareen, CFA, Brian Kloss, JD, CPA and Tracy Chen, CFA, CAIA Portfolio Managers Brandywine Global Investment Management, LLC
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. The investment adviser for the Fund is Securian Asset Management, Inc. Brandywine Global Investment Management, LLC (Brandywine Global) serves as investment sub-adviser to the Fund and provides investment advice under a sub-advisory agreement. Prior to May 1, 2021, the Fund was sub-advised by Franklin Advisers, Inc. 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's Class 2 shares generated a total net return of -4.02 percent over the 12 months ending December 31, 2021, outperforming the FTSE World Government Bond Index which returned -6.98 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Fund outperformed the benchmark for the full 12-month period. Brandywine Global began managing the Fund on May 1, 2021. For the eight months from May 1, 2021 through December 31, 2021, the Fund's relative under performance was primarily due to sovereign bond and currency exposures. Corporate credit exposures were positive from a relative results perspective versus the benchmark.
Developed market interest rates generally moved higher for the full calendar year in 2021 as growth and inflation remained robust in most global economies. However, the move higher was not linear as U.S. rates increased in the first few months of the year, declined in the summer months, and then moved higher again to finish the calendar year. We began the year with a significant underweight in developed market duration which included a small short exposure to longer dated U.S. Treasuries. This posturing contributed to performance for the first part of the year as interest rates moved higher. However, when rates declined in the summer months and began to move higher in the fall, our macro outlook shifted and we increased developed market duration in the portfolio by approximately 3.3 years and closed our short treasury position. While we continued to be underweight from a duration perspective versus the benchmark, the timing of this positioning shift proved to be a headwind (most notably in U.S. Treasuries) towards the end of the year as interest rates continued to move modestly higher in most markets.
The Fund's bond positions in Emerging Markets (EM) were also a headwind in 2021. Yields moved higher in most EM markets in calendar year 2021 as investors became concerned about slowing growth in China, high and persistent inflation, and the drag on effects of the COVID-19 pandemic. The largest detractor on the EM bond side was our position in long-dated Mexican sovereign bonds.
While the Fund is predominately hedged from a currency perspective, the U.S. Dollar (USD) remained strong for much of the calendar year and our small exposure to foreign currency positions were a minor detractor to relative results.
34
What other market conditions or events influenced the Fund's performance during the past 12 months?
The calendar year 2021 started off with optimism as investors focused on the newly approved vaccines to battle the COVID-19 pandemic. This led to a "re-opening" trade that benefited risk assets in most major markets around the globe and drove interest rates higher in developed markets. As the vaccine roll-out gained steam, markets were hoping for a return to pre-pandemic normalcy and a boost to global growth. Unfortunately, this re-opening phase proved short lived as the emergence of the Delta and ultimately the Omicron variants became widespread. While the markets remained resilient and populations learned better to live with the virus, the addition of both variants added to market volatility and uncertainty.
In the U.S., investors focused on developments around the pandemic, high inflation, supply chain disruptions, labor shortages and a Federal Reserve (Fed) that may be changing course. The market seemed to take these uncertainties in stride for much of the year as growth and employment remained strong. Towards the end of the year, markets began to price in a monetary policy change as both the Fed and investors are expecting a balance sheet unwind and potential rate hikes in 2022. This was likely one of the drivers for the drift higher in U.S. rates late in the year.
The Chinese economy dealt with two significant shocks during the calendar year. The first was a crisis in their real estate sector, sparked by a missed interest payment by property developer Evergrande. Evergrande is the largest and most levered property developer in China. The company faced liquidity and solvency risks which caused knock-on effects to other property developers in China. The contagion effect largely impacted the bonds and equities of property developers in China, but the news sent shock waves around the globe as investors tried to determine how a default might impact the global economy. In addition, China saw a steep decline in GDP growth during Q2 and Q3 of the year. Both of these events had ripple effects to global markets, most notably select EM markets that trade heavily with China. In response to both of these shocks, the Chinese government announced a number of fiscal and monetary stimulus measures aimed at stabilizing the real estate market and improving growth.
In Europe the European Central Bank (ECB) vowed to continue supportive monetary policies for the foreseeable future and signaled they do not plan to tighten monetary policy in the near term. They also plan to continue to provide support to peripheral countries such as Italy, Portugal and Spain. This was a positive development for the Fund's European sovereign exposure.
Monetary policy in developing countries has come full circle since the height of the pandemic. In 2020 and early 2021 massive stimulus was used to help prop up their economies amid the COVID-19 driven downturn. A handful of these central banks then reversed course mid-year given rising inflation and monetary policy tightening accelerated during the fourth quarter. Despite a rally in December, the EM bond asset class posted a negative return during the fourth quarter and for the full calendar year.
What strategies and techniques did you employ that specifically affected Fund performance?
We maintained an underweight duration position versus the Fund's benchmark for the full calendar year in 2021. We favored this posturing due to the potential for rising rates. We were significantly underweight for the first part of the year but increased duration in the September and October months. We elected to increase duration due to a number of increased risks to the economy. These risks include: 1.) continued slow growth and a potential hard landing in China 2.) a policy mistake by the Fed as they look to raise interest rates in 2022 3.) additional COVID-19 variants and 4.) potentially slowing global growth and inflation in 2022. The increase in duration occurred through adding sovereign positions in the U.S., France, UK and China. Even with this increase in duration, we continue to be underweight versus the Fund's benchmark by over 3 years.
The increase in duration also resulted in a slight reduction in a few of our EM bond positions. While we continue to favor select EM bond positions due to attractive yields and valuations, we recognize that many of these economies may continue to face near term challenges associated with slow growth in China, high inflation, and the COVID-19 pandemic. While we feel these risks are priced in at current asset levels and we are constructive on EM bonds longer-term, we were comfortable with a slight reduction to these positions given the current environment.
35
While our investment grade corporate credit exposures contributed to performance in 2021, we continued to reduce exposure to this sector in 2021 primarily due to rich valuations. Corporate credit spreads are close to all time tights and we tend to exit the majority of our credit exposure when spreads tighten. We monitor the sector closely and may look to increase exposure if spreads widen from current levels.
On the currency front, our USD exposure remained relatively stable during the calendar year 2021. Our dollar exposure was approximately 97 percent of the portfolio for most of the year. We had minor changes in our minimal foreign currency positions during the year. These included slightly reducing EM exposure and increasing developed markets such as Canada, Japan and Norway. As this portfolio is predominately hedged back to the USD, currency is not expected to be a significant driver of returns or volatility.
What will affect the Fund going forward?
We remain constructive on global growth as we look forward to calendar year 2022. We expect global markets to move from a recovery phase to an expansion phase with the U.S. leading and China lagging from a growth perspective. There are a number of important macro considerations as we move into the new year. A few of the key areas of focus will be on growth, inflation, global monetary policy, and the continuing COVID-19 pandemic.
On the growth front, we expect continued strength in global growth but fading momentum from the growth peak in 2021. On the developed market front, we expect the U.S. to lead from a growth perspective, followed by Europe and China. We are seeing signs that the Chinese economy may be bottoming which is encouraging. The top three priorities for the Chinese government include tackling high levels of debt, reversing deteriorating demographics and boosting labor productivity. Their central bank is committed to stabilizing and improving growth in 2022. They announced a number of stimulus measures in 2021 and we believe they may do more in 2022 to shore up their economy. If Chinese growth picks up in 2022 this could be a positive development for the broad market and something that is not fully priced into asset values.
As for U.S. growth and inflation, all eyes will be on the Fed in 2022. Growth has ticked lower over the last few months but is still running at above trend levels. Inflation has continued to run high, but we have reason to believe it could drop over the coming quarters as the market and supply chains normalize and longer-term disinflationary pressures persist. The Fed is expected to raise interest rates several times this year and will also look to shrink their balance sheet through unwinding asset purchases. If the Fed moves too aggressively this could put pressure on U.S. growth and inflation. The USD appears overvalued at current levels but higher relative growth and a Fed that is expected to tighten monetary policy should continue to support the demand for dollars in the near term.
Emerging markets have been the first to change course from a monetary policy perspective, providing significant stimulus in 2020 and early 2021 but tightening policy in late 2021 to curb high inflation. If inflation pressures subside and Chinese growth improves, this could benefit emerging market positions. We continue to find attractive value opportunities within EM positions but remain selective given the current macro backdrop.
The COVID-19 pandemic continues to be a significant risk and uncertainty for the global economy. If the current Omicron variant fades in 2022 and therapeutics continue to improve this could benefit global growth as a second re-opening phase could occur. Households continue to have a high level of savings that could be spent as the global economy continues to re-open and normalize.
As always, we continue to apply our time-tested philosophy and process that combines rigorous macro and security level research and seeks to invest in the best risk/return opportunities in our investment universe.
36
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
U.S. Treasury Note 0.134%, 1/31/23 | $ | 28,310,890 | 31.2 | % | |||||||
Korea Treasury Bond 2.000% 6/10/31 | 4,824,863 | 5.3 | % | ||||||||
U.S. Treasury Note 0.114%, 7/31/23 | 4,430,014 | 4.9 | % | ||||||||
Province of Ontario Canada 2.600%, 6/02/25 | 3,696,972 | 4.1 | % | ||||||||
Republic of Poland Government Bond 4.000%, 10/25/23 | 2,733,465 | 3.0 | % | ||||||||
Norway Government Bond 2.000%, 5/24/23 | 2,720,381 | 3.0 | % | ||||||||
Mexican Bonos 7.750%, 11/13/42 | 2,547,331 | 2.8 | % | ||||||||
Mexican Bonos 8.500%, 11/18/38 | 2,214,601 | 2.4 | % | ||||||||
Mexican Bonos 8.500%, 05/31/29 | 2,122,105 | 2.3 | % | ||||||||
U.S. Treasury Bond 1.875%, 11/15/51 | 2,013,688 | 2.2 | % | ||||||||
$ | 55,614,310 | 61.2 | % |
^Excludes short-term investments.
Country Diversification (shown as a percentage of net assets)
Currency Diversification (shown as a percentage of net assets)
African | 0.31 | % | |||||
South African Rand | 0.31 | % | |||||
Americas | 101.57 | % | |||||
United States Dollar | 98.12 | % | |||||
Chilean Peso | 1.30 | % | |||||
Canadian Dollar | 0.82 | % | |||||
Brazilian Real | 0.69 | % | |||||
Mexican Peso | 0.60 | % | |||||
Colombian Peso | 0.04 | % | |||||
Asia Pacific | -0.35 | % | |||||
Australian Dollar | 0.59 | % | |||||
Malaysian Ringgit | 0.54 | % | |||||
Thailand Baht | 0.14 | % | |||||
South Korean Won | 0.08 | % | |||||
Japanese Yen* | -1.70 | % | |||||
Europe | -1.53 | % | |||||
Polish Zloty | 1.34 | % | |||||
Norwegian Krone | 1.03 | % | |||||
Hungarian Forint | 0.51 | % | |||||
Russian Ruble | 0.42 | % | |||||
British Pound* | -0.79 | % | |||||
Euro* | -4.04 | % |
*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.
37
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, 2011 through December 31, 2021, 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.
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 44.05 percent over the 12 months ending December 31, 2021, outperforming the FTSE NAREIT Equity REITs Index which returned 43.24 percent over the same period.
What influenced the Fund's return during the past 12 months?
Real estate stocks finished the year with a flourish. The FTSE NAREIT Equity REITs Index returned 16.31 percent in the fourth quarter, a resounding cap to a year of record performance. For the calendar year, the index returned 43.24 percent. Despite the unwelcome emergence of the COVID-19 Omicron variant, investors running for cover from inflation and rapid improvement in real estate conditions combined to propel the sector. The same can be said for calendar year performance, with each quarter seemingly delivering better-than-expected operations across the sector. The improvement wasn't uniform, and certainly there will be property sectors which are slower to improve, but it appears unmistakably that a recovery is underway.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Healthcare REIT performance during 2021 was in the bottom half of all REIT sectors in the benchmark, owing to pandemic headwinds in the form of lower move-in volumes, worker shortage-related payroll pressure, and general elevation of overall property expenses. These are primarily issues for skilled nursing facilities and senior housing, whose occupancy recoveries have been choppy in 2021 due first to the COVID-19 Delta variant and later to the Omicron variant.
Both warehouse properties and self-storage facilities experienced record operating conditions. Work from home, regional relocations, and housing demand have attracted new customers during the pandemic. A pleasant surprise has been that they are now renting space for longer periods of time than has been typical in the past. As such, rents are above pre-pandemic levels and occupancies are at record highs.
The economic re-opening and pent-up consumer demand acted as tailwinds for retail REITs for much of the measurement period, with both malls and shopping centers performing well ahead of the benchmark. Leasing momentum and retailer health both continue to improve while the stocks feature an attractive valuation.
Rent growth momentum accelerated for multi-family rental and single-family rental REITs as job gains led to a significant acceleration in new lease rate growth in 2021. We think this momentum may likely increase as embedded rent growth combined with projected market rent growth should overwhelm current supply deliveries into 2022 in most markets.
Office companies were a notable detractor from relative performance. A series of large, national employers publicly announced delays or outright cancelations to their return to office plans. While we believe office demand will be negatively impacted for the foreseeable future, the price at which office stocks trade today more than factors in a weaker outlook. We believe some of this pricing gap will be closed as 2022 unfolds, assuming no new significant COVID-19 variants emerge.
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What strategies and techniques did you employ that specifically affected Fund performance?
The Fund outperformed its benchmark and peers for the measurement period ended December 31, 2021. The primary drivers of relative performance were an underweighting to healthcare REITs, an overweight position to self-storage, an overweight position in the second half of the year to shopping center companies, and an overweight position to apartment owners.
Life science is a smaller but growing subsector that we believe has a steeper demand curve longer term. The Fund's overweight position to the best large-cap performer in the group, which owns a diverse portfolio of high-quality assets helped drive sector outperformance during the period. This, and other strategic underweight positions in skilled nursing facilities and hospitals explains why healthcare was the highest outperformer in the Fund of all sectors relative to the benchmark for 2021.
Within multi-family rentals, the Fund was overweight the Sun Belt to begin calendar year 2021 while underweight the benchmark overall. Coastal exposure was added gradually throughout the first half of the calendar year, which eventually led to a sector overweight to the benchmark. We expect these companies will continue to thrive as large coastal market employers return to normal operations in 2022. We remain overweight the sector.
Every single property sector delivered positive returns during the fourth quarter, but owners of warehouse properties were among the strongest performers. An overweight position to self-storage owners was another leading driver of Fund performance.
What will affect the Fund going forward?
With rich valuations across asset classes, we think a Federal Reserve (Fed) misstep resulting in a repricing of interest rates would spell trouble. The big question on investors' minds is whether buyers can continue to accept rates that don't keep pace with inflation. As the pandemic wanes and labor and supply chain challenges resolve, we think inflation is likely to fall in 2022. However, companies are still experiencing chain pressures, confidence in pricing power is growing, labor is making gains, and housing effects will lag. We think these challenges have the potential to skew inflation risk to the upside in the coming year.
Despite these risks, interest rates may remain subdued. We think high levels of debt, an aging population, disruptive technological change, and concentrated wealth remain powerful forces. The present comfort with long-term rates near two percent reflects a belief that these impulses will dominate. However, de-globalization and supply chain rationalization, pressure to address climate change and inequality, and depressed levels of immigration have the potential to present more serious structural challenges. Other factors may exacerbate supply and demand imbalances. These include more fiscal/monetary policy coordination with an emphasis on direct cash support and policy tilts toward higher regulation and trust busting at a time when potential growth is slowing. These factors increase the risk that inflation could remain higher than desired for some time, creating both political and financial policy stress.
At the property level, recovery in the nation's property markets remains intact and appears to have significant upside in many sectors. We doubt that all property types will return to pre-pandemic cash flow levels in lockstep. Those with short duration lease profiles such as apartments, single family rentals, and self-storage units should continue to fare well in a rising inflation environment. The pandemic accelerated trends that were already in place and focused an unflinching spotlight on those with strong and with bleak futures. Hybrid work arrangements appear here to stay, particularly with the rapid emergent of the Delta variant, causing demand for office space and business travel to likely face a long recovery. As will brick and mortar retail. However, foot traffic at retail facilities has recovered sharply and gives us optimism that consumers will continue to shop in person as well as online. Meanwhile, we believe strongly in "new economy" sectors such as data centers and cell towers, but current valuations give us pause.
REIT stocks remain attractively valued, particularly against the backdrop of Fed actions, improving economic growth, and historically low interest rates. The Delta variant causing a reversion to more cautious social behavior across the country, and the emergence of a "stagflationary" economic backdrop have emerged as the primary risks to the group in the coming quarters.
40
Ten Largest Holdings^
Security description | Market value | % of net assets | |||||||||
ProLogis, Inc. | $ | 17,220,029 | 9.9 | % | |||||||
Public Storage | 10,712,416 | 6.2 | % | ||||||||
Equinix, Inc. | 8,487,159 | 4.9 | % | ||||||||
Simon Property Group, Inc. | 8,001,122 | 4.6 | % | ||||||||
Digital Realty Trust, Inc. | 7,534,662 | 4.3 | % | ||||||||
AvalonBay Communities, Inc. | 7,281,159 | 4.2 | % | ||||||||
Invitation Homes, Inc. | 5,413,596 | 3.1 | % | ||||||||
Welltower, Inc. | 4,760,235 | 2.7 | % | ||||||||
Essex Property Trust, Inc. | 4,614,213 | 2.7 | % | ||||||||
Duke Realty Corp. | 4,476,648 | 2.6 | % | ||||||||
$ | 78,501,239 | 45.2 | % |
^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, 2011 through December 31, 2021, 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 29.43 percent over the 12 months ending December 31, 2021, outperforming the Russell 1000 Value Index which returned 25.16 percent over the same period.
What influenced the Fund's return during the past 12 months?
Overall, outperformance was driven by stock selection, although sector allocation was negative.
The communication services sector was the leading contributor to relative results due to stock selection. Alphabet benefited throughout the period as advertising spending proved resilient and as the company showed significant revenue growth within its core search franchise, advertising business, and cloud segment. Late in the period, the company reported accelerated search advertising revenue, propelled by Alphabet's retail vertical. Stock selection in the information technology sector, notably Microsoft, and the financials sector, particularly American International Group, also benefited relative performance over the year.
Conversely, our underweight to energy was the main detractor from relative returns, as energy was the top-performing sector amid robust oil and natural gas demand. In our view, the oil market is fundamentally oversupplied and there may be more terminal value risk in the sector due to the energy transition versus what is currently priced in. Stock selection in the materials sector, specifically Westrock, also weighed on relative returns.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Even though the COVID-19 pandemic continued, major U.S. stock indexes climbed in 2021, extending the brisk rebound that started in March 2020. Many indexes repeatedly reached record highs throughout the year. Equities advanced as the economy reopened and recovered—facilitated by the rollout of COVID-19 vaccines and some federal fiscal relief—and as corporations reported robust earnings growth. Elevated inflation, which stemmed in part from shortages of some goods and materials and global supply chain disruptions; the emergence of variants of the coronavirus; and the Federal Reserve's (Fed) decision to taper its monthly asset purchases starting in November were among the factors that occasionally weighed on the financial markets.
What strategies and techniques did you employ that specifically affected Fund performance?
The Fund 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. Over the course of 2021, the Fund benefited as we reduced cyclical exposure and leaned into more out-of-favor names while keeping a keen focus on quality.
43
What will affect the Fund going forward?
Given the strength in the market since bottoming in early 2020, we are cognizant of our beta and seek to maintain a balanced portfolio. In our view, there are two likely economic outcomes from the current environment: The first would be a "Goldilocks" scenario, where the Fed is able to successfully contain inflation by tightening monetary policy, all while economic growth persists and the economy continues to reopen; in the other scenario, the Fed has to take a more aggressive approach to rein in inflation, resulting in a more difficult economic environment.
Against this backdrop, our outlook for the market is more tepid than it has been in the past several years. There are reasons for optimism, including a strong consumer; pent-up demand for services; and strong, but decelerating, corporate fundamentals. Similarly, there are reasons for concern that cloud the outlook, including COVID-19, the Fed's tightrope walk, inflation, and the end of stimulus. Given these considerations, we are looking to increase the defensiveness of the portfolio without pushing it into a bunker. Overall, our focus continues to be on finding high-quality companies facing controversy or stress that are addressable in the near to intermediate term. We believe this balanced approach should lead to a portfolio that has the potential to serve our clients well in a variety of market environments.
44
Ten Largest Holdings^
Security description | Market value | % of net assets | |||||||||
Alphabet, Inc. Class C | $ | 14,754,415 | 6.2 | % | |||||||
Microsoft Corp. | 12,060,435 | 5.0 | % | ||||||||
American International Group, Inc. | 6,946,984 | 2.9 | % | ||||||||
Bank of America Corp. | 6,614,996 | 2.8 | % | ||||||||
Prologis, Inc. | 6,517,384 | 2.7 | % | ||||||||
Danaher Corp. | 6,481,168 | 2.7 | % | ||||||||
General Electric Co. | 6,194,398 | 2.6 | % | ||||||||
Charles Schwab Corp. | 4,655,271 | 1.9 | % | ||||||||
Thermo Fisher Scientific, Inc. | 4,491,192 | 1.9 | % | ||||||||
Broadcom, Inc. | 4,317,845 | 1.8 | % | ||||||||
$ | 73,034,088 | 30.5 | % |
^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, 2021, 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 23.87 percent over the period ending December 31, 2021, underperforming the S&P 500® Index, which returned 28.71 percent over the same period.
What influenced the Fund's return during the past 12 months?
During the period, security selection was the primary driver of underperformance, and sector allocation, a fall-out of our bottom-up stock selection process, detracted from relative performance. Weak selection in information technology (underweight to NVDIA, overweight to Global Payments), consumer discretionary (overweight to VF, underweight to Tesla), and consumer staples (underweight to Costco, overweight to Monster Beverage) was partially offset by stronger selection in health care (overweights to Eli Lilly and UnitedHealth Group), communication services (overweight to Alphabet, not owning Comcast), and financials (overweights to Bank of America and Morgan Stanley). The Fund's underweight position to energy and overweight to consumer staples detracted from relative performance while underweight positions in consumer discretionary and utilities contributed, partially offsetting results.
What other market conditions or events influenced the Fund's performance during the past 12 months?
U.S. equities, as measured by the S&P 500® Index posted positive results over the trailing 12-month period ending December 31, 2021. In the first-quarter of 2021, U.S. equities rallied, bolstered by an accelerating vaccine rollout, substantial fiscal and monetary policy tailwinds, and upbeat forecasts for economic growth and earnings. Expectations for a strong rebound in the U.S. economy sparked inflationary fears, contributing to a pro-cyclical rotation. The Democrats secured slim majorities in both houses of Congress after winning control of the Senate, bolstering President Biden's prospects of advancing his legislative agenda. In the second-quarter of 2021, U.S. equities rallied for the fifth consecutive quarter amid a backdrop of improving vaccination rates, accelerating economic growth, and a broader reopening of the economy. Inflation rose sharply during the quarter, as robust demand for goods and services, along with significant global supply-chain disruptions, drove consumer and producer prices sharply higher. During the third-quarter of 2021, U.S. equities rose against a backdrop of accommodative monetary policy, robust corporate earnings, and strong demand for goods and services. Growth stocks outperformed their value counterparts for the quarter; however, surging Treasury yields sparked a sharp sell-off in shares of large technology companies at the end of September, triggering a powerful rotation into value stocks.
U.S. equities surged in the fourth-quarter, registering their seventh consecutive quarterly gain. Risk sentiment was bolstered by robust equity inflows, strong corporate earnings, favorable economic data, and extremely accommodative financial conditions. The rapid spread of the Omicron variant led to the largest increase in U.S. COVID-19 cases since the onset of the pandemic, prompting a flurry of new restrictions and event cancellations. Inflation continued to surge against a backdrop of severe supply and labor shortages, rising energy prices, and high demand for goods and services, heightening scrutiny of the Federal Reserve (Fed) amid anxiety
47
about a potential policy mistake. In November, inflation accelerated to its highest level since 1982, as the Consumer Price Index rose 6.8 percent annually at the headline level and 4.9 percent at the core level. President Joe Biden signed into law a roughly U.S. $1 trillion infrastructure bill, but the fate of the Democrats' U.S. $1.75 trillion spending and climate change plan is uncertain after Democratic Senator Joe Manchin withheld support for the current version of the plan due to concerns that it will exacerbate soaring inflation.
What strategies and techniques did you employ that specifically affected Fund performance?
Over the period, the Fund increased exposure to communication services and industrials while we decreased exposure to consumer staples and real estate. Our largest new position was Netflix, a subscription based streaming provider. While the company's subscriber growth remains strong, we believe margins will improve, and free cash flow will transition from negative to positive. This will help the company to self-finance going forward, keeping debt in check while increasing content spend and the ability to resume buybacks with excess cash as we look out a few years.
On the flipside, our largest elimination was NextEra Energy, a U.S.-based electric power provider. We eliminated the position in favor of other ideas that had more attractive risk/reward as the valuation of NextEra became stretched.
What will affect the Fund going forward?
As we bring 2021 to a close, it appears that negotiations on the large spending bill have resumed, and we have extended the debt ceiling. Our expectation remains that the total package, which includes the bipartisan bill signed into law, will support growth in 2022.
Consistent with the last several months, the more critical question surrounds expectations for inflation as companies struggle to offset costs with pricing and are seeing margin compression. The Fed has subtly changed its view on tightening monetary conditions over the last few months, and we continue to monitor this very closely. Labor force participation rates should continue to increase as stimulus effects wane, limiting the risk of runaway inflation. Additionally, so far, we are encouraged by the lower mortality in the face of the Omicron variant. As confidence returns, we do expect inflation to be sustained into 2022.
Outside of that, not much has changed from an outlook perspective. Geopolitical risks remain, the partisan divide within the U.S. is extreme, and the recovery in markets affected by COVID-19 remains uneven due to the uptake of vaccines and restrictions on travel. Still, we are encouraged that demand remains strong and supply chain disruptions are slowly getting resolved. Ultimately, as we start the new year, we view any potential increase in volatility as an opportunity for our approach, which is driven by stock selection.
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 | |||||||||
Alphabet, Inc.—Class A | $ | 8,117,506 | 5.6 | % | |||||||
Microsoft Corp. | 8,111,366 | 5.6 | % | ||||||||
Apple, Inc. | 6,965,183 | 4.8 | % | ||||||||
Amazon.com, Inc. | 5,321,607 | 3.7 | % | ||||||||
UnitedHealth Group, Inc. | 3,773,080 | 2.6 | % | ||||||||
Meta Platforms, Inc.—Class A | 3,388,726 | 2.3 | % | ||||||||
JPMorgan Chase & Co. | 3,282,279 | 2.3 | % | ||||||||
Bank of America Corp. | 3,218,629 | 2.2 | % | ||||||||
Procter & Gamble Co. | 3,050,767 | 2.1 | % | ||||||||
Thermo Fisher Scientific, Inc. | 2,452,107 | 1.7 | % | ||||||||
$ | 47,681,250 | 32.9 | % |
^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, 2021, 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 Balanced Stabilization Fund (formerly SFT Dynamic Managed Volatility Fund), SFT Core Bond Fund, SFT Delaware IvySM Growth Fund (formerly SFT IvySM Growth Fund), SFT Delaware IvySM Small Cap Growth Fund (formerly SFT IvySM Small Cap Growth Fund), SFT Equity Stabilization Fund (formerly SFT Managed Volatility Equity Fund), SFT Government Money Market Fund, SFT Index 400 Mid-Cap Fund, SFT Index 500 Fund, SFT International Bond 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, as of December 31, 2021, 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, 2021, 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 Company 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, 2021, 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 17, 2022
51
SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (21.0%) | |||||||||||
Government Obligations (0.1%) | |||||||||||
U.S. Government Agencies and Obligations (0.1%) | |||||||||||
Federal Home Loan Mortgage Corp. (0.0%) | |||||||||||
3.000%, 09/01/43 | $ | 60,805 | $ | 64,373 | |||||||
3.500%, 10/01/44 | 67,026 | 71,817 | |||||||||
3.500%, 11/01/44 | 65,378 | 70,056 | |||||||||
3.500%, 12/01/44 | 71,752 | 76,884 | |||||||||
283,130 | |||||||||||
Federal National Mortgage Association (0.1%) | |||||||||||
3.000%, 04/01/43 | 94,767 | 99,811 | |||||||||
3.000%, 05/01/43 | 32,733 | 34,472 | |||||||||
3.000%, 06/01/43 | 139,956 | 147,438 | |||||||||
3.500%, 08/01/42 | 62,762 | 67,390 | |||||||||
3.500%, 02/01/43 | 83,289 | 90,693 | |||||||||
439,804 | |||||||||||
Total government obligations (cost: $676,911) | 722,934 | ||||||||||
Other Mortgage-Backed Securities (0.2%) | |||||||||||
Commercial Mortgage-Backed Securities (0.2%) | |||||||||||
Bank 2019-BNK18, 3.584%, 05/15/62 | 1,500,000 | 1,646,535 | |||||||||
Total other mortgage-backed securities (cost: $1,543,749) | 1,646,535 | ||||||||||
Corporate Obligations (20.7%) | |||||||||||
Basic Materials (0.2%) | |||||||||||
Chemicals (0.2%) | |||||||||||
Nutrien Ltd., 3.000%, 04/01/25 (b) | 1,000,000 | 1,041,152 | |||||||||
Mining (0.0%) | |||||||||||
BHP Billiton Finance USA Ltd., 2.875%, 02/24/22 (b) | 122,000 | 122,460 | |||||||||
Communications (1.5%) | |||||||||||
Cable/Satellite TV (0.3%) | |||||||||||
Comcast Corp. | |||||||||||
2.887%, 11/01/51 (c) | 1,319,000 | 1,282,410 | |||||||||
2.937%, 11/01/56 (c) | 327,000 | 312,079 | |||||||||
4.200%, 08/15/34 (d) | 500,000 | 586,913 | |||||||||
2,181,402 | |||||||||||
Diversified Telecommunication Services (0.6%) | |||||||||||
AT&T, Inc. | |||||||||||
2.550%, 12/01/33 | 943,000 | 921,822 | |||||||||
3.550%, 09/15/55 | 1,405,000 | 1,409,438 | |||||||||
3.800%, 12/01/57 | 75,000 | 77,565 | |||||||||
4.500%, 05/15/35 | 1,000,000 | 1,156,117 | |||||||||
Verizon Communications, Inc., 2.987%, 10/30/56 | 1,194,000 | 1,117,883 | |||||||||
4,682,825 | |||||||||||
Internet & Catalog Retail (0.2%) | |||||||||||
Amazon.com, Inc., 3.875%, 08/22/37 | 1,000,000 | 1,169,319 |
Principal | Value(a) | ||||||||||
Media (0.2%) | |||||||||||
ViacomCBS, Inc. | |||||||||||
3.500%, 01/15/25 | $ | 750,000 | $ | 791,062 | |||||||
4.000%, 01/15/26 | 250,000 | 270,475 | |||||||||
1,061,537 | |||||||||||
Telecommunication (0.2%) | |||||||||||
Crown Castle Towers LLC, 3.663%, 05/15/45 (c) | 1,000,000 | 1,038,221 | |||||||||
Vodafone Group PLC, 4.125%, 05/30/25 (b) | 500,000 | 540,783 | |||||||||
1,579,004 | |||||||||||
Wireless Telecommunication Services (0.0%) | |||||||||||
Rogers Communications, Inc., 4.100%, 10/01/23 (b) | 250,000 | 260,660 | |||||||||
Consumer Cyclical (0.6%) | |||||||||||
Food & Staples Retailing (0.2%) | |||||||||||
Kroger Co., 4.450%, 02/01/47 | 1,000,000 | 1,216,897 | |||||||||
Home Furnishings (0.1%) | |||||||||||
Harman International Industries, Inc., 4.150%, 05/15/25 | 1,000,000 | 1,077,356 | |||||||||
Retail (0.3%) | |||||||||||
AutoZone, Inc., 3.250%, 04/15/25 | 1,000,000 | 1,049,619 | |||||||||
Target Corp., 3.500%, 07/01/24 (d) | 750,000 | 794,680 | |||||||||
1,844,299 | |||||||||||
Consumer Staples (0.4%) | |||||||||||
Consumer Products — Miscellaneous (0.1%) | |||||||||||
SC Johnson & Son, Inc., 3.350%, 09/30/24 (c) | 750,000 | 786,560 | |||||||||
Household Products (0.1%) | |||||||||||
Kimberly-Clark Corp., 3.900%, 05/04/47 | 1,000,000 | 1,202,357 | |||||||||
Personal Care (0.2%) | |||||||||||
Estee Lauder Cos., Inc., 4.150%, 03/15/47 | 1,000,000 | 1,264,020 | |||||||||
Consumer, Non-cyclical (1.7%) | |||||||||||
Beverages (0.2%) | |||||||||||
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 04/15/38 | 1,000,000 | 1,171,107 | |||||||||
Commercial Service — Finance (0.0%) | |||||||||||
Moody's Corp., 4.875%, 02/15/24 | 250,000 | 267,307 | |||||||||
Diagnostic Equipment (0.3%) | |||||||||||
Abbott Laboratories | |||||||||||
3.875%, 09/15/25 | 750,000 | 813,467 | |||||||||
4.750%, 11/30/36 | 1,000,000 | 1,277,224 | |||||||||
4.750%, 04/15/43 | 250,000 | 326,982 | |||||||||
2,417,673 |
See accompanying notes to financial statements.
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SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Drugstore Chains (0.0%) | |||||||||||
CVS Pass-Through Trust, 6.943%, 01/10/30 | $ | 136,964 | $ | 162,821 | |||||||
Food (0.4%) | |||||||||||
Mars, Inc., 3.950%, 04/01/49 (c) | 1,000,000 | 1,202,708 | |||||||||
Tyson Foods, Inc., 5.150%, 08/15/44 | 1,000,000 | 1,305,038 | |||||||||
2,507,746 | |||||||||||
Food Products (0.1%) | |||||||||||
General Mills, Inc., 3.000%, 02/01/51 | 1,002,000 | 1,007,892 | |||||||||
Pharmaceuticals (0.7%) | |||||||||||
AbbVie, Inc. | |||||||||||
3.600%, 05/14/25 | 1,000,000 | 1,060,890 | |||||||||
3.800%, 03/15/25 | 670,000 | 713,452 | |||||||||
Bristol-Myers Squibb Co. | |||||||||||
3.250%, 11/01/23 | 500,000 | 521,663 | |||||||||
3.875%, 08/15/25 | 1,000,000 | 1,077,410 | |||||||||
Novartis Capital Corp., 3.400%, 05/06/24 (d) | 500,000 | 527,525 | |||||||||
Takeda Pharmaceutical Co. Ltd., 5.000%, 11/26/28 (b) | 1,000,000 | 1,172,042 | |||||||||
5,072,982 | |||||||||||
Energy (2.5%) | |||||||||||
Oil & Gas (1.2%) | |||||||||||
Baker Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 3.337%, 12/15/27 | 1,000,000 | 1,064,386 | |||||||||
BP Capital Markets America, Inc., 4.234%, 11/06/28 | 1,000,000 | 1,128,496 | |||||||||
Chevron Corp., 3.191%, 06/24/23 | 250,000 | 257,778 | |||||||||
Chevron USA, Inc., 3.900%, 11/15/24 | 1,000,000 | 1,073,380 | |||||||||
Coterra Energy, Inc., 3.900%, 05/15/27 (c) | 1,000,000 | 1,077,500 | |||||||||
EOG Resources, Inc., 2.625%, 03/15/23 | 250,000 | 254,343 | |||||||||
Marathon Petroleum Corp., 3.625%, 09/15/24 | 750,000 | 789,375 | |||||||||
Phillips 66, 4.650%, 11/15/34 | 1,000,000 | 1,173,559 | |||||||||
TotalEnergies Capital International SA, 3.750%, 04/10/24 (b) | 750,000 | 794,071 | |||||||||
Valero Energy Corp., 4.350%, 06/01/28 | 1,000,000 | 1,100,902 | |||||||||
8,713,790 | |||||||||||
Pipelines (1.3%) | |||||||||||
Columbia Pipeline Group, Inc., 4.500%, 06/01/25 | 1,000,000 | 1,088,702 | |||||||||
Energy Transfer LP | |||||||||||
4.250%, 04/01/24 | 1,000,000 | 1,051,250 | |||||||||
4.900%, 03/15/35 | 1,000,000 | 1,125,000 |
Principal | Value(a) | ||||||||||
Enterprise Products Operating LLC, 5.750%, 03/01/35 | $ | 250,000 | $ | 311,764 | |||||||
Florida Gas Transmission Co. LLC, 4.350%, 07/15/25 (c) | 1,000,000 | 1,080,018 | |||||||||
Kinder Morgan, Inc., 5.300%, 12/01/34 | 750,000 | 901,859 | |||||||||
Magellan Midstream Partners LP, 4.200%, 10/03/47 | 1,000,000 | 1,086,251 | |||||||||
Plains All American Pipeline LP/PAA Finance Corp., 3.850%, 10/15/23 | 250,000 | 259,353 | |||||||||
Southern Natural Gas Co. LLC, 4.800%, 03/15/47 (c) | 1,500,000 | 1,804,880 | |||||||||
Williams Cos., Inc. | |||||||||||
3.750%, 06/15/27 | 500,000 | 539,237 | |||||||||
4.300%, 03/04/24 | 500,000 | 528,036 | |||||||||
9,776,350 | |||||||||||
Financial (6.3%) | |||||||||||
Banks (2.2%) | |||||||||||
Associated Banc-Corp., 4.250%, 01/15/25 | 750,000 | 795,543 | |||||||||
Bank of America Corp. | |||||||||||
3.950%, 04/21/25 | 1,000,000 | 1,069,910 | |||||||||
4.183%, 11/25/27 | 1,000,000 | 1,091,864 | |||||||||
4.244%, 04/24/38 (3-Month USD LIBOR + 1.814%) (e) | 1,000,000 | 1,171,769 | |||||||||
5.700%, 01/24/22 | 250,000 | 250,719 | |||||||||
Capital One Financial Corp., 4.250%, 04/30/25 | 1,500,000 | 1,622,286 | |||||||||
Citigroup, Inc. | |||||||||||
3.300%, 04/27/25 | 750,000 | 795,085 | |||||||||
3.980%, 03/20/30 (3-Month USD LIBOR + 1.338%) (e) | 1,000,000 | 1,103,589 | |||||||||
Discover Bank, 4.250%, 03/13/26 | 500,000 | 546,122 | |||||||||
Fifth Third Bank NA, 3.950%, 07/28/25 | 1,000,000 | 1,089,053 | |||||||||
Goldman Sachs Group, Inc., 3.850%, 01/26/27 | 1,000,000 | 1,074,215 | |||||||||
JPMorgan Chase & Co., 3.125%, 01/23/25 | 1,000,000 | 1,048,433 | |||||||||
KeyBank NA, 3.180%, 10/15/27 | 1,000,000 | 1,007,133 | |||||||||
PNC Bank NA | |||||||||||
2.450%, 07/28/22 | 1,000,000 | 1,009,629 | |||||||||
3.800%, 07/25/23 | 250,000 | 260,466 | |||||||||
4.050%, 07/26/28 | 1,000,000 | 1,122,732 | |||||||||
Synchrony Bank, 3.000%, 06/15/22 | 1,000,000 | 1,008,760 | |||||||||
Truist Bank, 2.750%, 05/01/23 | 250,000 | 256,267 | |||||||||
16,323,575 | |||||||||||
Capital Markets (0.3%) | |||||||||||
Bank of New York Mellon Corp., 3.442%, 02/07/28 (3-Month USD LIBOR + 1.069%) (e) | 1,000,000 | 1,077,107 |
See accompanying notes to financial statements.
53
SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
Investments in Securities – continued
Principal | Value(a) | ||||||||||
E*TRADE Financial Corp., 2.950%, 08/24/22 | $ | 1,000,000 | $ | 1,012,757 | |||||||
2,089,864 | |||||||||||
Diversified Financial Services (0.9%) | |||||||||||
American Express Co., 3.300%, 05/03/27 (c) | 1,000,000 | 1,068,768 | |||||||||
CME Group, Inc., 3.000%, 03/15/25 | 1,000,000 | 1,049,913 | |||||||||
Discover Financial Services, 3.750%, 03/04/25 | 1,000,000 | 1,059,440 | |||||||||
Eaton Vance Corp., 3.500%, 04/06/27 | 1,000,000 | 1,074,292 | |||||||||
Pine Street Trust I, 4.572%, 02/15/29 (c) | 1,500,000 | 1,694,796 | |||||||||
TD Ameritrade Holding Corp., 2.950%, 04/01/22 | 700,000 | 701,505 | |||||||||
6,648,714 | |||||||||||
Insurance (1.3%) | |||||||||||
American Financial Group, Inc., 4.500%, 06/15/47 | 1,000,000 | 1,196,011 | |||||||||
Assured Guaranty US Holdings, Inc., 5.000%, 07/01/24 | 330,000 | 359,104 | |||||||||
First American Financial Corp., 4.600%, 11/15/24 | 750,000 | 811,330 | |||||||||
Hanover Insurance Group, Inc., 4.500%, 04/15/26 | 1,000,000 | 1,092,323 | |||||||||
Liberty Mutual Group, Inc., 4.250%, 06/15/23 (c) | 750,000 | 783,304 | |||||||||
Manulife Financial Corp., 4.150%, 03/04/26 (b) | 750,000 | 820,542 | |||||||||
Marsh & McLennan Cos., Inc., 4.350%, 01/30/47 | 1,000,000 | 1,256,614 | |||||||||
Metropolitan Life Global Funding I, 3.875%, 04/11/22 (c) | 250,000 | 252,432 | |||||||||
Old Republic International Corp., 4.875%, 10/01/24 | 750,000 | 817,364 | |||||||||
Pacific Life Insurance Co., 4.300%, 10/24/67 (3-Month USD LIBOR + 2.796%) (c) (e) | 1,000,000 | 1,149,600 | |||||||||
StanCorp Financial Group, Inc., 5.000%, 08/15/22 | 750,000 | 768,162 | |||||||||
9,306,786 | |||||||||||
Property / Casualty Insurance (0.2%) | |||||||||||
Arch Capital Finance LLC, 4.011%, 12/15/26 (d) | 1,000,000 | 1,099,024 | |||||||||
Real Estate Investment Trust — Diversified (0.1%) | |||||||||||
Kite Realty Group Trust, 4.000%, 03/15/25 (d) | 1,000,000 | 1,049,358 | |||||||||
Real Estate Investment Trust — Health Care (0.7%) | |||||||||||
Healthcare Realty Trust, Inc., 3.875%, 05/01/25 | 1,000,000 | 1,061,603 | |||||||||
Healthcare Trust of America Holdings LP, 3.750%, 07/01/27 | 1,000,000 | 1,085,618 |
Principal | Value(a) | ||||||||||
Physicians Realty LP, 4.300%, 03/15/27 | $ | 1,000,000 | $ | 1,108,498 | |||||||
Welltower, Inc., 4.125%, 03/15/29 | 1,500,000 | 1,672,577 | |||||||||
4,928,296 | |||||||||||
Real Estate Investment Trust — Office Property (0.1%) | |||||||||||
Alexandria Real Estate Equities, Inc., 4.500%, 07/30/29 | 500,000 | 575,738 | |||||||||
Real Estate Investment Trust — Shopping Centers (0.0%) | |||||||||||
Retail Opportunity Investments Partnership LP, 5.000%, 12/15/23 | 250,000 | 263,916 | |||||||||
Real Estate Investment Trust — Single Tenant (0.1%) | |||||||||||
Office Properties Income Trust, 4.500%, 02/01/25 | 750,000 | 787,619 | |||||||||
Specialized REITs (0.4%) | |||||||||||
American Tower Corp., 3.375%, 10/15/26 | 1,000,000 | 1,061,737 | |||||||||
Essex Portfolio LP, 3.500%, 04/01/25 | 1,000,000 | 1,056,948 | |||||||||
Goodman US Finance Four LLC, 4.500%, 10/15/37 (c) | 500,000 | 580,413 | |||||||||
2,699,098 | |||||||||||
Health Care (1.0%) | |||||||||||
Health Care Providers & Services (0.6%) | |||||||||||
Aetna, Inc., 3.875%, 08/15/47 | 1,000,000 | 1,116,459 | |||||||||
Anthem, Inc., 4.375%, 12/01/47 | 1,000,000 | 1,225,062 | |||||||||
Laboratory Corp. of America Holdings, 4.000%, 11/01/23 | 250,000 | 261,757 | |||||||||
UnitedHealth Group, Inc. | |||||||||||
2.750%, 02/15/23 (d) | 250,000 | 254,180 | |||||||||
3.750%, 07/15/25 (d) | 1,000,000 | 1,083,263 | |||||||||
3,940,721 | |||||||||||
Pharmaceuticals (0.4%) | |||||||||||
Cardinal Health, Inc., 3.750%, 09/15/25 | 1,000,000 | 1,072,714 | |||||||||
Mead Johnson Nutrition Co., 5.900%, 11/01/39 | 1,000,000 | 1,422,505 | |||||||||
Mylan, Inc., 4.200%, 11/29/23 | 500,000 | 524,130 | |||||||||
3,019,349 | |||||||||||
Industrials (2.8%) | |||||||||||
Aerospace & Defense (0.8%) | |||||||||||
General Dynamics Corp., 3.500%, 05/15/25 | 1,000,000 | 1,067,650 | |||||||||
L3Harris Technologies, Inc., 3.832%, 04/27/25 | 1,000,000 | 1,066,877 | |||||||||
Raytheon Technologies Corp. | |||||||||||
3.700%, 12/15/23 | 500,000 | 522,849 | |||||||||
4.050%, 05/04/47 | 1,000,000 | 1,166,705 | |||||||||
4.125%, 11/16/28 | 1,500,000 | 1,677,588 | |||||||||
5,501,669 |
See accompanying notes to financial statements.
54
SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Air Freight & Logistics (0.2%) | |||||||||||
FedEx Corp., 4.400%, 01/15/47 | $ | 1,000,000 | $ | 1,180,868 | |||||||
Building Products (0.2%) | |||||||||||
CRH America Finance, Inc., 4.400%, 05/09/47 (c) | 1,000,000 | 1,209,505 | |||||||||
Containers & Packaging (0.2%) | |||||||||||
Amcor Finance USA, Inc., 4.500%, 05/15/28 | 1,000,000 | 1,145,579 | |||||||||
Electrical Equipment (0.1%) | |||||||||||
Flex Ltd., 4.750%, 06/15/25 (b) | 1,000,000 | 1,088,836 | |||||||||
Environmental Control (0.1%) | |||||||||||
Republic Services, Inc., 3.950%, 05/15/28 | 1,000,000 | 1,108,914 | |||||||||
Industrial Conglomerates (0.2%) | |||||||||||
3M Co., 3.625%, 10/15/47 | 1,000,000 | 1,145,064 | |||||||||
Machinery (0.2%) | |||||||||||
Caterpillar Financial Services Corp. | |||||||||||
2.850%, 05/17/24 | 1,000,000 | 1,044,379 | |||||||||
3.750%, 11/24/23 (d) | 750,000 | 789,158 | |||||||||
1,833,537 | |||||||||||
Miscellaneous Manufacturing (0.3%) | |||||||||||
Carlisle Cos., Inc., 3.750%, 12/01/27 | 1,000,000 | 1,077,688 | |||||||||
Textron, Inc. | |||||||||||
3.875%, 03/01/25 | 750,000 | 802,186 | |||||||||
4.300%, 03/01/24 | 500,000 | 527,526 | |||||||||
2,407,400 | |||||||||||
Road & Rail (0.0%) | |||||||||||
Kansas City Southern/Old, 4.300%, 05/15/43 | 250,000 | 291,464 | |||||||||
Transportation (0.2%) | |||||||||||
Burlington Northern Santa Fe LLC, 3.750%, 04/01/24 | 350,000 | 368,487 | |||||||||
Penske Truck Leasing Co. L.P. / PTL Finance Corp., 3.900%, 02/01/24 (c) | 1,000,000 | 1,047,893 | |||||||||
1,416,380 | |||||||||||
Trucking & Leasing (0.3%) | |||||||||||
GATX Corp. | |||||||||||
3.250%, 03/30/25 | 1,000,000 | 1,046,931 | |||||||||
4.550%, 11/07/28 | 1,000,000 | 1,138,142 | |||||||||
2,185,073 | |||||||||||
Information Technology (0.9%) | |||||||||||
Communications Equipment (0.2%) | |||||||||||
QUALCOMM, Inc., 4.650%, 05/20/35 | 1,000,000 | 1,243,981 | |||||||||
Computers (0.2%) | |||||||||||
Apple, Inc., 4.375%, 05/13/45 (d) | 1,000,000 | 1,266,832 |
Principal | Value(a) | ||||||||||
Interactive Media & Services (0.1%) | |||||||||||
eBay, Inc., 3.450%, 08/01/24 | $ | 750,000 | $ | 787,517 | |||||||
IT Services (0.1%) | |||||||||||
Global Payments, Inc., 4.800%, 04/01/26 | 750,000 | 832,024 | |||||||||
Software (0.3%) | |||||||||||
Fiserv, Inc., 3.850%, 06/01/25 | 1,000,000 | 1,068,509 | |||||||||
Oracle Corp., 3.800%, 11/15/37 | 1,000,000 | 1,040,242 | |||||||||
2,108,751 | |||||||||||
Materials (0.5%) | |||||||||||
Chemicals (0.3%) | |||||||||||
Mosaic Co., 5.450%, 11/15/33 | 200,000 | 247,727 | |||||||||
Sherwin-Williams Co., 3.950%, 01/15/26 | 1,000,000 | 1,088,046 | |||||||||
Yara International ASA, 4.750%, 06/01/28 (b) (c) | 1,000,000 | 1,128,149 | |||||||||
2,463,922 | |||||||||||
Construction Materials (0.2%) | |||||||||||
Vulcan Materials Co., 4.500%, 06/15/47 | 1,000,000 | 1,231,037 | |||||||||
Transportation (0.3%) | |||||||||||
Airlines (0.2%) | |||||||||||
American Airlines 2015-2 Class A Pass Through Trust, 4.000%, 03/22/29 | 739,482 | 713,600 | |||||||||
British Airways 2013-1 Class A Pass Through Trust, 4.625%, 12/20/25 (c) | 501,053 | 521,094 | |||||||||
United Airlines 2013-1 Class A Pass Through Trust, 4.300%, 02/15/27 | 163,240 | 170,303 | |||||||||
1,404,997 | |||||||||||
Transport — Rail (0.1%) | |||||||||||
Norfolk Southern Corp., 3.850%, 01/15/24 | 500,000 | 523,508 | |||||||||
Union Pacific Corp., 3.750%, 03/15/24 | 500,000 | 525,597 | |||||||||
1,049,105 | |||||||||||
Utilities (2.0%) | |||||||||||
Electric Utilities (0.9%) | |||||||||||
Ameren Illinois Co., 3.700%, 12/01/47 | 1,000,000 | 1,141,434 | |||||||||
Arizona Public Service Co., 4.350%, 11/15/45 | 1,000,000 | 1,176,642 | |||||||||
Duke Energy Progress LLC, 3.600%, 09/15/47 | 1,000,000 | 1,111,418 | |||||||||
Entergy Louisiana LLC, 3.300%, 12/01/22 | 250,000 | 253,755 | |||||||||
Northern States Power Co., 3.750%, 12/01/47 | 1,000,000 | 1,075,426 | |||||||||
Oglethorpe Power Corp., 4.250%, 04/01/46 | 800,000 | 857,414 |
See accompanying notes to financial statements.
55
SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Oklahoma Gas & Electric Co., 4.150%, 04/01/47 | $ | 1,000,000 | $ | 1,190,717 | |||||||
6,806,806 | |||||||||||
Electric — Integrated (0.1%) | |||||||||||
Berkshire Hathaway Energy Co., 3.750%, 11/15/23 | 250,000 | 260,890 | |||||||||
Gas Utilities (0.8%) | |||||||||||
National Fuel Gas Co. | |||||||||||
4.750%, 09/01/28 | 1,000,000 | 1,105,138 | |||||||||
5.200%, 07/15/25 | 1,000,000 | 1,093,649 | |||||||||
ONEOK, Inc. | |||||||||||
4.000%, 07/13/27 | 500,000 | 541,097 | |||||||||
4.350%, 03/15/29 | 1,500,000 | 1,641,090 | |||||||||
Washington Gas Light Co., 3.796%, 09/15/46 | 1,000,000 | 1,151,453 | |||||||||
5,532,427 | |||||||||||
Multi-Utilities (0.0%) | |||||||||||
Eastern Energy Gas Holdings LLC, 3.550%, 11/01/23 | 250,000 | 260,281 | |||||||||
Water Utilities (0.2%) | |||||||||||
American Water Capital Corp., 3.750%, 09/01/47 | 1,000,000 | 1,117,685 | |||||||||
Aquarion Co., 4.000%, 08/15/24 (c) | 500,000 | 527,410 | |||||||||
1,645,095 | |||||||||||
Total corporate obligations (cost: $137,410,211) | 150,727,528 | ||||||||||
Total long-term debt securities (cost: $139,630,871) | 153,096,997 |
Shares | Value(a) | ||||||||||
Mutual Funds (54.0%) | |||||||||||
Investment Companies (54.0%) | |||||||||||
iShares Core S&P 500 ETF | 105,440 | $ | 50,293,826 | ||||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 230,335 | 30,523,994 | |||||||||
SFT Index 500 Fund (f) | 14,224,618 | 287,214,638 | |||||||||
SPDR S&P 500 ETF Trust (d) | 36,170 | 17,179,303 | |||||||||
Vanguard S&P 500 ETF | 20,175 | 8,807,800 | |||||||||
Total mutual funds (cost: $198,787,901) | 394,019,561 | ||||||||||
Short-Term Securities (30.1%) | |||||||||||
Investment Companies (30.1%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 219,836,453 | 219,836,453 | |||||||||
Total short-term securities (cost: $219,836,453) | 219,836,453 | ||||||||||
Total investments excluding purchased options (105.1%) (cost: $558,255,225) | 766,953,011 | ||||||||||
Total purchased options outstanding (0.0%) (cost: $315,725) | 115,735 | ||||||||||
Total investments in securities (cost: $558,570,950) (g) | 767,068,746 | ||||||||||
Liabilities in excess of cash and other assets (5.1%) | (37,525,917 | ) | |||||||||
Total net assets (100.0%) | $ | 729,542,829 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the notes to financial statements.
(b) Foreign security: The Fund held 1.0% of net assets in foreign securities at December 31, 2021.
(c) 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.
(d) Fully or partially pledged as initial margin deposits on futures contracts. At December 31, 2021 the Fund does not hold open contracts.
(e) Variable rate security.
(f) Affiliated security.
(g) At December 31, 2021, the cost of investments for federal income tax purposes was $558,394,674. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 209,008,956 | |||||
Gross unrealized depreciation | (336,780 | ) | |||||
Net unrealized appreciation | $ | 208,672,176 |
See accompanying notes to financial statements.
56
SFT Balanced Stabilization Fund (Formerly SFT Dynamic Managed Volatility Fund)
Investments in Securities – continued
Call Options Purchased:
The Fund had the following call options purchased open at December 31, 2021:
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Value(a) | ||||||||||||||||||
CBOE Volatility Index | $ | 22 | January 2022 | 237 | $ | 23,700 | $ | 86,505 | |||||||||||||||
S&P 500 Index | 3,900 | January 2022 | 79 | 7,900 | 29,230 | ||||||||||||||||||
$ | 115,735 |
Put Options Written:
The Fund had the following put options written open at December 31, 2021:
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Value(a) | ||||||||||||||||||
CBOE Volatility Index | $ | 12 | January 2022 | 237 | $ | 23,700 | $ | (1,896 | ) |
See accompanying notes to financial statements.
57
SFT Core Bond Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (98.8%) | |||||||||||
Government Obligations (28.3%) | |||||||||||
Other Government Obligations (1.6%) | |||||||||||
Provincial or Local Government Obligations (1.6%) | |||||||||||
Douglas County Public Utility District No. 1, 5.450%, 09/01/40 | $ | 1,185,000 | $ | 1,566,866 | |||||||
Municipal Electric Authority of Georgia, 6.655%, 04/01/57 | 1,163,000 | 1,799,801 | |||||||||
Ohio State Water Development Authority, 4.817%, 12/01/30 | 250,000 | 299,330 | |||||||||
Port Authority of New York & New Jersey | |||||||||||
4.458%, 10/01/62 | 1,150,000 | 1,529,787 | |||||||||
4.926%, 10/01/51 | 2,055,000 | 2,862,389 | |||||||||
Texas A&M University, 4.000%, 05/15/31 | 325,000 | 352,355 | |||||||||
8,410,528 | |||||||||||
U.S. Government Agencies and Obligations (26.7%) | |||||||||||
Federal Home Loan Mortgage Corp. (3.1%) | |||||||||||
0.744%, 01/25/23 (1-Month USD LIBOR + 0.650%) (b) | 15,894 | 15,899 | |||||||||
1.053%, 10/25/29 (1-Month USD LIBOR + 0.950%) (b) | 450,000 | 431,350 | |||||||||
2.500%, 03/01/28 | 221,584 | 230,131 | |||||||||
2.500%, 04/01/28 | 82,069 | 85,049 | |||||||||
3.000%, 08/01/42 | 319,399 | 337,974 | |||||||||
3.000%, 12/01/42 | 126,860 | 134,240 | |||||||||
3.000%, 01/01/43 | 170,597 | 181,545 | |||||||||
3.000%, 02/01/43 | 434,068 | 463,837 | |||||||||
3.000%, 04/01/43 | 612,044 | 648,024 | |||||||||
3.000%, 10/25/46 | 54,286 | 55,524 | |||||||||
3.403%, 10/25/27 (1-Month USD LIBOR + 3.300%) (b) | 325,764 | 330,344 | |||||||||
3.500%, 10/01/25 | 75,631 | 78,795 | |||||||||
3.500%, 05/01/32 | 100,318 | 106,995 | |||||||||
3.500%, 03/01/42 | 465,386 | 499,546 | |||||||||
3.500%, 08/01/42 | 384,325 | 412,635 | |||||||||
3.500%, 05/25/45 | 233,279 | 231,141 | |||||||||
3.553%, 10/25/29 (1-Month USD LIBOR + 3.450%) (b) | 4,000,000 | 4,113,044 | |||||||||
4.000%, 09/01/40 | 359,468 | 397,896 | |||||||||
4.000%, 11/01/40 | 840,926 | 928,500 | |||||||||
4.000%, 02/01/41 | 159,430 | 176,534 | |||||||||
4.000%, 03/01/41 | 183,963 | 204,742 | |||||||||
4.500%, 04/01/23 | 5,252 | 5,666 | |||||||||
4.500%, 09/01/40 | 47,684 | 52,292 | |||||||||
4.500%, 01/01/41 | 283,535 | 312,943 | |||||||||
4.500%, 02/01/41 | 156,865 | 171,950 | |||||||||
4.500%, 03/01/41 | 360,199 | 394,761 | |||||||||
4.500%, 04/01/41 | 306,364 | 345,627 |
Principal | Value(a) | ||||||||||
4.653%, 10/25/24 (1-Month USD LIBOR + 4.550%) (b) | $ | 37,734 | $ | 38,810 | |||||||
4.903%, 05/25/28 (1-Month USD LIBOR + 4.800%) (b) | 925,325 | 948,870 | |||||||||
5.000%, 03/01/23 | 2,389 | 2,605 | |||||||||
5.000%, 05/01/29 | 15,527 | 16,920 | |||||||||
5.000%, 04/01/35 | 41,314 | 46,159 | |||||||||
5.000%, 08/01/35 | 30,691 | 34,688 | |||||||||
5.000%, 11/01/35 | 52,719 | 59,131 | |||||||||
5.000%, 11/01/39 | 313,750 | 353,953 | |||||||||
5.000%, 04/01/40 | 87,518 | 98,773 | |||||||||
5.000%, 08/01/40 | 68,004 | 76,273 | |||||||||
5.500%, 11/01/23 | 31,092 | 34,312 | |||||||||
5.500%, 05/01/34 | 401,348 | 457,353 | |||||||||
5.500%, 10/01/34 | 150,773 | 171,707 | |||||||||
5.500%, 07/01/35 | 151,707 | 174,838 | |||||||||
5.500%, 10/01/35 | 171,285 | 197,281 | |||||||||
5.500%, 12/01/38 | 81,286 | 94,443 | |||||||||
5.653%, 07/25/28 (1-Month USD LIBOR + 5.550%) (b) | 1,620,617 | 1,685,149 | |||||||||
6.000%, 11/01/33 | 178,692 | 212,217 | |||||||||
6.250%, 12/15/23 | 9,824 | 10,151 | |||||||||
6.500%, 09/01/32 | 20,092 | 23,671 | |||||||||
6.500%, 11/01/32 | 18,535 | 21,499 | |||||||||
6.500%, 06/01/36 | 118,926 | 141,313 | |||||||||
7.000%, 12/01/37 | 36,976 | 43,445 | |||||||||
16,290,545 | |||||||||||
Federal National Mortgage Association (3.7%) | |||||||||||
2.500%, 03/01/27 | 128,363 | 133,639 | |||||||||
2.500%, 11/01/27 | 202,394 | 210,650 | |||||||||
2.500%, 03/01/28 | 147,643 | 153,018 | |||||||||
2.500%, 07/01/28 | 208,108 | 216,283 | |||||||||
3.000%, 06/01/22 | 4,406 | 4,426 | |||||||||
3.000%, 09/01/22 | 5,124 | 5,159 | |||||||||
3.000%, 11/01/27 | 89,965 | 94,084 | |||||||||
3.000%, 06/01/28 | 81,621 | 85,445 | |||||||||
3.000%, 09/01/42 | 87,490 | 92,824 | |||||||||
3.000%, 01/01/46 | 97,963 | 103,113 | |||||||||
3.500%, 11/01/25 | 92,724 | 97,434 | |||||||||
3.500%, 01/01/26 | 100,477 | 105,168 | |||||||||
3.500%, 12/01/32 | 100,475 | 107,192 | |||||||||
3.500%, 11/01/40 | 292,302 | 313,754 | |||||||||
3.500%, 01/01/41 | 320,207 | 345,268 | |||||||||
3.500%, 02/01/41 | 409,943 | 440,102 | |||||||||
3.500%, 04/01/41 | 204,250 | 219,229 | |||||||||
3.500%, 11/01/41 | 1,137,547 | 1,220,789 | |||||||||
3.500%, 12/01/41 | 240,762 | 258,475 | |||||||||
3.500%, 05/01/42 | 123,717 | 132,837 | |||||||||
3.500%, 01/01/43 | 289,642 | 310,889 | |||||||||
3.500%, 02/01/43 | 333,155 | 362,770 | |||||||||
3.500%, 05/01/43 | 1,116,329 | 1,210,209 | |||||||||
3.753%, 09/25/29 (1-Month USD LIBOR + 3.650%) (b) | 180,812 | 188,367 | |||||||||
4.000%, 12/01/40 | 44,489 | 48,544 | |||||||||
4.000%, 04/01/41 | 706,457 | 777,796 | |||||||||
4.000%, 09/01/41 | 214,783 | 236,068 |
See accompanying notes to financial statements.
58
SFT Core Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
4.000%, 11/01/41 | $ | 111,545 | $ | 121,579 | |||||||
4.000%, 06/01/42 | 310,183 | 341,011 | |||||||||
4.000%, 09/01/43 | 185,285 | 200,598 | |||||||||
4.403%, 02/25/25 (1-Month USD LIBOR + 4.300%) (b) | 544,685 | 554,525 | |||||||||
4.500%, 04/01/25 | 12,611 | 13,205 | |||||||||
4.500%, 05/25/34 | 537,000 | 612,069 | |||||||||
4.500%, 05/01/35 | 114,947 | 129,026 | |||||||||
4.500%, 07/01/35 | 266,167 | 291,813 | |||||||||
4.500%, 09/01/37 | 97,359 | 106,696 | |||||||||
4.500%, 06/01/39 | 103,920 | 115,971 | |||||||||
4.500%, 04/01/41 | 896,852 | 991,252 | |||||||||
4.500%, 07/01/41 | 592,117 | 650,383 | |||||||||
4.500%, 07/01/47 | 250,896 | 278,707 | |||||||||
4.503%, 01/25/24 (1-Month USD LIBOR + 4.400%) (b) | 39,533 | 40,977 | |||||||||
4.553%, 01/25/29 (1-Month USD LIBOR + 4.450%) (b) | 1,178,882 | 1,220,807 | |||||||||
5.000%, 06/25/23 | 14,430 | 14,708 | |||||||||
5.000%, 07/01/23 | 11,492 | 12,191 | |||||||||
5.000%, 11/01/33 | 109,303 | 124,596 | |||||||||
5.000%, 03/01/34 | 89,674 | 101,204 | |||||||||
5.000%, 05/01/34 | 20,057 | 22,604 | |||||||||
5.000%, 12/01/34 | 114,691 | 130,728 | |||||||||
5.000%, 07/01/35 | 103,630 | 117,947 | |||||||||
5.000%, 08/01/35 | 39,708 | 44,864 | |||||||||
5.000%, 03/01/38 | 52,682 | 60,485 | |||||||||
5.000%, 04/01/38 | 80,486 | 92,521 | |||||||||
5.000%, 06/01/39 | 67,625 | 75,825 | |||||||||
5.000%, 12/01/39 | 269,916 | 302,538 | |||||||||
5.000%, 06/01/40 | 34,727 | 39,352 | |||||||||
5.000%, 04/01/41 | 265,985 | 298,623 | |||||||||
5.500%, 08/01/23 | 7,088 | 7,831 | |||||||||
5.500%, 02/01/24 | 12,783 | 14,122 | |||||||||
5.500%, 04/01/33 | 398,682 | 459,012 | |||||||||
5.500%, 05/01/33 | 5,921 | 6,671 | |||||||||
5.500%, 12/01/33 | 42,722 | 49,161 | |||||||||
5.500%, 01/01/34 | 81,073 | 91,246 | |||||||||
5.500%, 02/01/34 | 84,510 | 97,437 | |||||||||
5.500%, 03/01/34 | 138,569 | 157,269 | |||||||||
5.500%, 04/01/34 | 86,290 | 100,398 | |||||||||
5.500%, 05/01/34 | 2,573 | 2,827 | |||||||||
5.500%, 09/01/34 | 94,271 | 107,490 | |||||||||
5.500%, 10/01/34 | 31,941 | 36,484 | |||||||||
5.500%, 01/01/35 | 62,177 | 71,463 | |||||||||
5.500%, 02/01/35 | 157,585 | 179,054 | |||||||||
5.500%, 04/01/35 | 145,490 | 165,579 | |||||||||
5.500%, 06/01/35 | 17,612 | 20,247 | |||||||||
5.500%, 08/01/35 | 85,027 | 95,726 | |||||||||
5.500%, 10/01/35 | 188,285 | 216,454 | |||||||||
5.500%, 11/01/35 | 39,596 | 45,974 | |||||||||
5.500%, 09/01/36 | 72,949 | 82,987 | |||||||||
5.500%, 12/01/39 | 46,311 | 52,858 | |||||||||
6.000%, 08/01/23 | 10,378 | 10,663 | |||||||||
6.000%, 09/01/32 | 8,223 | 9,746 | |||||||||
6.000%, 10/01/32 | 301,319 | 358,021 | |||||||||
6.000%, 11/01/32 | 306,553 | 363,661 | |||||||||
6.000%, 03/01/33 | 230,565 | 271,825 | |||||||||
6.000%, 12/01/33 | 80,794 | 96,725 | |||||||||
6.000%, 08/01/34 | 19,235 | 22,473 | |||||||||
6.000%, 09/01/34 | 14,085 | 17,045 |
Principal | Value(a) | ||||||||||
6.000%, 11/01/34 | $ | 11,387 | $ | 13,328 | |||||||
6.000%, 12/01/34 | 66,447 | 78,082 | |||||||||
6.000%, 11/01/36 | 8,724 | 10,393 | |||||||||
6.000%, 01/01/37 | 86,809 | 103,417 | |||||||||
6.000%, 08/01/37 | 52,589 | 62,759 | |||||||||
6.000%, 10/01/38 | 89,509 | 106,844 | |||||||||
6.500%, 11/01/23 | 7,474 | 7,776 | |||||||||
6.500%, 12/01/31 | 37,413 | 43,923 | |||||||||
6.500%, 02/01/32 | 133,404 | 157,701 | |||||||||
6.500%, 04/01/32 | 90,301 | 104,024 | |||||||||
6.500%, 05/01/32 | 22,365 | 26,453 | |||||||||
6.500%, 07/01/32 | 155,862 | 180,685 | |||||||||
6.500%, 08/01/32 | 70,892 | 83,769 | |||||||||
6.500%, 09/01/32 | 44,921 | 52,164 | |||||||||
6.500%, 10/01/32 | 59,379 | 68,523 | |||||||||
6.500%, 09/01/34 | 3,088 | 3,600 | |||||||||
6.500%, 11/01/34 | 3,133 | 3,612 | |||||||||
6.500%, 03/01/35 | 48,729 | 55,511 | |||||||||
6.500%, 09/01/37 | 60,407 | 69,771 | |||||||||
6.500%, 11/01/37 | 35,107 | 41,487 | |||||||||
7.000%, 07/01/31 | 38,673 | 46,088 | |||||||||
7.000%, 09/01/31 | 110,167 | 129,276 | |||||||||
7.000%, 11/01/31 | 102,909 | 120,428 | |||||||||
7.000%, 02/01/32 | 50,485 | 59,222 | |||||||||
7.000%, 03/01/32 | 10,705 | 12,730 | |||||||||
7.000%, 07/01/32 | 45,324 | 52,864 | |||||||||
7.000%, 10/01/37 | 14,583 | 16,209 | |||||||||
7.500%, 04/01/31 | 41,902 | 46,657 | |||||||||
7.500%, 05/01/31 | 17,746 | 20,709 | |||||||||
19,568,791 | |||||||||||
Government National Mortgage Association (1.4%) | |||||||||||
0.000%, 06/17/45 (b) (c) (d) | 122,923 | 14 | |||||||||
1.000%, 12/20/42 | 48,193 | 47,454 | |||||||||
3.000%, 03/15/45 | 494,408 | 510,579 | |||||||||
3.000%, 04/15/45 | 992,493 | 1,027,602 | |||||||||
3.000%, 05/15/45 | 52,439 | 54,287 | |||||||||
3.250%, 04/20/33 | 105,723 | 109,819 | |||||||||
3.250%, 03/20/35 | 912,556 | 963,328 | |||||||||
3.250%, 11/20/35 | 446,736 | 471,571 | |||||||||
3.250%, 01/20/36 | 759,793 | 802,070 | |||||||||
3.500%, 11/15/40 | 61,228 | 64,584 | |||||||||
3.500%, 04/20/46 | 320,351 | 333,421 | |||||||||
3.750%, 03/20/46 | 604,522 | 638,550 | |||||||||
4.000%, 07/20/31 | 255,852 | 271,848 | |||||||||
4.000%, 04/20/39 | 185,862 | 197,053 | |||||||||
4.000%, 12/20/40 | 492,874 | 541,336 | |||||||||
4.000%, 01/15/41 | 23,851 | 26,211 | |||||||||
4.000%, 02/15/41 | 199,529 | 217,535 | |||||||||
4.000%, 10/15/41 | 123,561 | 135,991 | |||||||||
4.000%, 12/20/44 | 58,603 | 63,090 | |||||||||
4.500%, 06/15/40 | 139,756 | 157,753 | |||||||||
5.000%, 05/15/33 | 37,045 | 42,101 | |||||||||
5.000%, 12/15/39 | 53,335 | 61,538 | |||||||||
5.000%, 01/15/40 | 478,635 | 559,687 | |||||||||
5.000%, 07/15/40 | 94,970 | 107,632 | |||||||||
5.500%, 07/15/38 | 121,072 | 134,883 | |||||||||
5.500%, 10/15/38 | 202,157 | 223,117 | |||||||||
8.500%, 10/15/22 | 1,624 | 1,617 | |||||||||
7,764,671 |
See accompanying notes to financial statements.
59
SFT Core Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
U.S. Treasury (18.5%) | |||||||||||
U.S. Treasury Bond | |||||||||||
1.375%, 11/15/40 | $ | 7,150,000 | $ | 6,534,430 | |||||||
1.750%, 08/15/41 | 14,928,000 | 14,517,480 | |||||||||
1.875%, 02/15/41 | 6,570,000 | 6,522,778 | |||||||||
2.000%, 11/15/41 | 2,250,000 | 2,282,344 | |||||||||
2.000%, 08/15/51 | 7,000,000 | 7,169,531 | |||||||||
2.250%, 05/15/41 | 750,000 | 790,078 | |||||||||
2.375%, 05/15/51 | 359,000 | 398,377 | |||||||||
5.375%, 02/15/31 (e) | 5,115,000 | 6,841,313 | |||||||||
U.S. Treasury Note | |||||||||||
0.125%, 01/15/24 | 5,000,000 | 4,936,719 | |||||||||
0.250%, 05/31/25 | 3,000,000 | 2,918,906 | |||||||||
0.375%, 04/15/24 | 2,325,000 | 2,301,750 | |||||||||
0.500%, 11/30/23 | 2,000,000 | 1,992,500 | |||||||||
0.500%, 05/31/27 | 5,020,000 | 4,809,787 | |||||||||
0.625%, 10/15/24 | 5,203,000 | 5,162,352 | |||||||||
0.625%, 12/31/27 | 8,000,000 | 7,660,000 | |||||||||
0.750%, 11/15/24 | 2,500,000 | 2,486,719 | |||||||||
0.875%, 09/30/26 | 5,305,000 | 5,213,820 | |||||||||
1.125%, 02/29/28 | 8,328,000 | 8,212,189 | |||||||||
1.250%, 05/31/28 | 1,485,000 | 1,471,310 | |||||||||
1.250%, 06/30/28 | 1,215,000 | 1,203,419 | |||||||||
1.375%, 11/15/31 | 3,065,000 | 3,030,519 | |||||||||
1.500%, 11/30/28 | 1,250,000 | 1,256,055 | |||||||||
2.250%, 02/15/27 (e) | 150,000 | 157,219 | |||||||||
2.750%, 02/15/28 | 200,000 | 216,250 | |||||||||
98,085,845 | |||||||||||
Vendee Mortgage Trust (0.0%) | |||||||||||
Vendee Mortgage Trust, 7.793%, 02/15/25 | 8,126 | 8,125 | |||||||||
Total government obligations (cost: $145,250,023) | 150,128,505 | ||||||||||
Asset-Backed Securities (14.4%) | |||||||||||
AmeriCredit Automobile Receivables Trust, 3.180%, 07/18/23 | 3,250,000 | 3,265,946 | |||||||||
AMSR 2021-SFR4 Trust, 2.417%, 12/17/38 (f) | 4,950,000 | 4,904,554 | |||||||||
AMSR Trust, 2.278%, 08/17/38 (f) | 1,150,000 | 1,133,095 | |||||||||
Bank of The West Auto Trust, 3.210%, 04/15/25 (f) | 2,293,000 | 2,299,721 | |||||||||
Bear Stearns Asset Backed Securities Trust, 1.067%, 02/25/34 (1-Month USD LIBOR + 0.975%) (b) | 361,951 | 364,287 | |||||||||
CarMax Auto Owner Trust | |||||||||||
2.950%, 11/15/23 | 1,950,000 | 1,959,252 | |||||||||
2.800%, 04/15/26 | 1,400,000 | 1,428,807 | |||||||||
Chase Funding Trust | |||||||||||
0.652%, 02/25/33 (1-Month USD LIBOR + 0.560%) (b) | 141,556 | 136,995 | |||||||||
0.742%, 08/25/32 (1-Month USD LIBOR + 0.640%) (b) | 94,443 | 92,203 | |||||||||
Commonbond Student Loan Trust | |||||||||||
2.550%, 05/25/41 (f) | 153,900 | 156,065 | |||||||||
5.280%, 05/25/41 (f) | 23,317 | 23,421 |
Principal | Value(a) | ||||||||||
Commonbond Student Loan Trust 2018-A-GS | |||||||||||
0.603%, 02/25/44 (1-Month USD LIBOR + 0.500%) (b) (f) | $ | 321,688 | $ | 320,329 | |||||||
3.210%, 02/25/44 (f) | 833,418 | 853,101 | |||||||||
Commonbond Student Loan Trust 2019-A-GS, 2.540%, 01/25/47 (f) | 1,712,125 | 1,735,121 | |||||||||
Commonbond Student Loan Trust 2021-A-GS, 1.200%, 03/25/52 (f) | 708,605 | 706,450 | |||||||||
Drive Auto Receivables Trust | |||||||||||
3.530%, 12/15/23 (f) | 17,007 | 17,023 | |||||||||
3.990%, 01/15/25 | 652,786 | 655,175 | |||||||||
Exeter Automobile Receivables Trust 2020-3, 1.730%, 07/15/26 | 1,850,000 | 1,863,923 | |||||||||
FirstKey Homes Trust | |||||||||||
1.788%, 08/17/38 (f) | 2,075,000 | 2,040,617 | |||||||||
2.058%, 09/17/38 (f) | 1,950,000 | 1,901,543 | |||||||||
Home Partners of America 2021-1 Trust, 1.698%, 09/17/41 (f) | 3,669,185 | 3,579,683 | |||||||||
Home Partners of America 2021-3 Trust, 2.649%, 01/17/41 (f) | 4,000,000 | 3,987,573 | |||||||||
Invitation Homes 2018-SFR1 Trust, 1.359%, 03/17/37 (1-Month USD LIBOR + 1.250%) (b) (f) | 3,499,498 | 3,495,054 | |||||||||
Invitation Homes 2018-SFR3 Trust, 1.109%, 07/17/37 (1-Month USD LIBOR + 1.000%) (b) (f) | 484,603 | 484,942 | |||||||||
Invitation Homes 2018-SFR4 Trust, 1.509%, 01/17/38 (1-Month USD LIBOR + 1.400%) (b) (f) | 5,049,767 | 5,047,747 | |||||||||
Invitation Homes Trust, 1.390%, 06/17/37 (1-Month USD LIBOR + 1.280%) (b) (f) | 1,499,764 | 1,498,730 | |||||||||
Kubota Credit Owner Trust 2020-2, 0.410%, 06/15/23 (f) | 771,009 | 770,959 | |||||||||
Morgan Stanley Dean Witter Capital I, Inc., 0.662%, 08/25/32 (1-Month USD LIBOR + 0.560%) (b) | 178,343 | 176,636 | |||||||||
Navient Private Education Refi Loan Trust | |||||||||||
0.940%, 07/15/69 (f) | 2,102,265 | 2,080,791 | |||||||||
1.310%, 01/15/69 (f) | 1,257,507 | 1,253,428 | |||||||||
Navient Private Education Refi Loan Trust 2021-C, 1.060%, 10/15/69 (f) | 1,053,948 | 1,038,452 | |||||||||
Navient Private Education Refi Loan Trust 2021-F, 1.110%, 02/18/70 (f) | 1,830,172 | 1,799,398 |
See accompanying notes to financial statements.
60
SFT Core Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Progress Residential 2019-SFR2 Trust, 3.446%, 05/17/36 (f) | $ | 2,500,000 | $ | 2,501,550 | |||||||
Progress Residential Trust, 2.341%, 08/17/40 (f) | 1,525,000 | 1,476,458 | |||||||||
Santander Bank NA — SBCLN, 1.833%, 12/15/31 (f) | 1,675,000 | 1,673,957 | |||||||||
Santander Consumer Auto Receivables Trust 2021-A, 1.570%, 01/15/27 (f) | 1,500,000 | 1,483,168 | |||||||||
Santander Drive Auto Receivables Trust, 1.120%, 01/15/26 | 2,225,000 | 2,231,519 | |||||||||
Saxon Asset Securities Trust, 0.632%, 03/25/35 (1-Month USD LIBOR + 0.540%) (b) | 253,062 | 250,511 | |||||||||
SoFi Professional Loan Program 2021-B Trust, 1.140%, 02/15/47 (f) | 2,583,664 | 2,538,799 | |||||||||
SoFi Professional Loan Program LLC | |||||||||||
2.650%, 09/25/40 (f) | 424,666 | 428,996 | |||||||||
2.840%, 01/25/41 (f) | 543,884 | 552,155 | |||||||||
2.950%, 02/25/42 (f) | 518,480 | 523,198 | |||||||||
Towd Point Mortgage Trust | |||||||||||
3.000%, 06/25/58 (b) (f) | 2,301,046 | 2,377,854 | |||||||||
3.750%, 04/25/55 (b) (f) | 2,505,000 | 2,574,300 | |||||||||
3.950%, 11/25/57 (b) (f) | 3,154,000 | 3,307,209 | |||||||||
Tricon American Homes Trust, 1.832%, 11/17/39 (f) | 975,000 | 947,885 | |||||||||
Tricon Residential 2021-SFR1 Trust, 2.244%, 07/17/38 (f) | 2,300,000 | 2,266,445 | |||||||||
Total asset-backed securities (cost: $76,524,169) | 76,205,025 | ||||||||||
Other Mortgage-Backed Securities (14.9%) | |||||||||||
Collateralized Mortgage Obligations/Mortgage Revenue Bonds (9.8%) | |||||||||||
Agate Bay Mortgage Trust, 3.563%, 01/25/45 (b) (f) | 122,428 | 123,689 | |||||||||
Bear Stearns Mortgage Securities, Inc., 8.000%, 11/25/29 | 27,983 | 26,684 | |||||||||
Bellemeade Re Ltd. | |||||||||||
1.702%, 04/25/28 (1-Month USD LIBOR + 1.600%) (b) (f) (g) | 264,906 | 264,906 | |||||||||
1.953%, 10/25/28 (1-Month USD LIBOR + 1.850%) (b) (f) (g) | 2,073,741 | 2,073,743 | |||||||||
Citigroup Mortgage Loan Trust 2021-INV1 | |||||||||||
2.500%, 05/25/51 (b) (f) | 2,153,346 | 2,172,918 | |||||||||
2.500%, 05/25/51 (b) (f) | 3,731,057 | 3,764,968 | |||||||||
Citigroup Mortgage Loan Trust, Inc., 3.000%, 09/25/64 (b) (f) | 211,128 | 214,346 | |||||||||
CSMC Trust | |||||||||||
3.298%, 08/25/43 (b) (f) | 1,446,043 | 1,439,533 | |||||||||
3.500%, 06/25/47 (b) (f) | 1,263,611 | 1,279,121 |
Principal | Value(a) | ||||||||||
Eagle RE Ltd., 1.552%, 01/25/30 (1-Month USD LIBOR + 1.450%) (b) (f) | $ | 4,725,000 | $ | 4,639,940 | |||||||
FARM 21-1 Mortgage Trust, 2.180%, 01/25/51 (b) (d) (f) | 1,745,693 | 1,731,577 | |||||||||
Flagstar Mortgage Trust | |||||||||||
2.500%, 07/25/51 (b) (f) | 2,461,017 | 2,486,762 | |||||||||
2.500%, 08/25/51 (b) (f) | 2,578,999 | 2,605,994 | |||||||||
GS Mortgage-Backed Securities Trust, 2.454%, 07/25/44 (b) (f) | 2,110,021 | 2,096,467 | |||||||||
JP Morgan Mortgage Trust | |||||||||||
2.268%, 11/25/33 (b) | 50,111 | 50,864 | |||||||||
2.500%, 04/25/52 (b) (f) | 4,610,047 | 4,639,040 | |||||||||
2.500%, 08/25/51 (b) (f) | 2,400,000 | 2,355,096 | |||||||||
3.286%, 10/25/46 (b) (f) | 257,282 | 259,658 | |||||||||
3.418%, 06/25/29 (b) (f) | 103,354 | 103,337 | |||||||||
3.667%, 05/25/47 (b) (f) | 2,960,503 | 2,998,573 | |||||||||
JP Morgan Trust 2015-6, 3.519%, 10/25/45 (b) (f) | 1,375,000 | 1,349,068 | |||||||||
MRFC Mortgage Pass-Through Trust Series 1998-2, 6.750%, 06/25/28 | 3,814 | 3,865 | |||||||||
PMT Loan Trust, 2.500%, 07/25/51 (b) (f) | 4,640,620 | 4,683,866 | |||||||||
Prudential Home Mortgage Securities 7.480%, 09/28/24 (b) (f) | 103 | 100 | |||||||||
Radnor RE Ltd., 2.053%, 02/25/29 (1-Month USD LIBOR + 1.950%) (b) (f) (g) | 726,645 | 726,646 | |||||||||
Seasoned Credit Risk Transfer Trust | |||||||||||
4.000%, 07/25/56 (b) | 2,602,000 | 2,591,699 | |||||||||
4.000%, 08/25/56 (b) (f) | 1,200,000 | 1,217,670 | |||||||||
Sequoia Mortgage Trust | |||||||||||
3.156%, 11/25/30 (b) (f) | 331,318 | 334,725 | |||||||||
3.500%, 06/25/43 (b) | 630,594 | 625,563 | |||||||||
3.609%, 02/25/47 (b) (f) | 1,099,332 | 1,105,027 | |||||||||
3.723%, 07/25/45 (b) (f) | 271,514 | 274,549 | |||||||||
3.909%, 01/25/45 (b) (f) | 176,451 | 176,596 | |||||||||
Shellpoint Co-Originator Trust, 3.633%, 04/25/47 (b) (f) | 1,455,014 | 1,450,624 | |||||||||
Structured Asset Mortgage Investments, Inc., 6.750%, 05/02/30 (b) | 9,396 | 308 | |||||||||
WinWater Mortgage Loan Trust 2015-4, 3.688%, 06/20/45 (b) (f) | 1,763,617 | 1,790,741 | |||||||||
51,658,263 | |||||||||||
Commercial Mortgage-Backed Securities (5.1%) | |||||||||||
BAMLL Commercial Mortgage Securities Trust 2014-520M, 4.185%, 08/15/46 (b) (f) | 1,350,000 | 1,589,949 | |||||||||
BB-UBS Trust, 4.026%, 11/05/36 (b) (f) | 1,000,000 | 987,030 |
See accompanying notes to financial statements.
61
SFT Core Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
CFCRE Commercial Mortgage Trust, 3.839%, 12/10/54 | $ | 500,000 | $ | 543,225 | |||||||
Citigroup Commercial Mortgage Trust 2018-TBR, 0.940%, 12/15/36 (1-Month USD LIBOR + 0.830%) (b) (f) | 4,000,000 | 3,986,680 | |||||||||
CSMC Trust, 3.304%, 09/15/37 (f) | 357,244 | 369,362 | |||||||||
Hometown Commercial Mortgage, 6.057%, 06/11/39 (f) | 28,292 | 8,714 | |||||||||
Irvine Core Office Trust, 2.068%, 05/15/48 (f) | 77,451 | 78,034 | |||||||||
JPMCC Commercial Mortgage Securities Trust, 3.723%, 03/15/50 | 1,000,000 | 1,079,540 | |||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, 3.720%, 12/15/49 | 225,000 | 244,469 | |||||||||
Morgan Stanley Capital I Trust, 3.451%, 08/05/34 (f) | 700,000 | 695,821 | |||||||||
ONE 2021-PARK Mortgage Trust, 0.810%, 03/15/36 (1-Month USD LIBOR + 0.700%) (b) (f) | 3,050,000 | 3,025,874 | |||||||||
One Market Plaza Trust, 3.614%, 02/10/32 (f) | 2,500,000 | 2,500,925 | |||||||||
UBS Commercial Mortgage Trust | |||||||||||
3.580%, 12/15/50 | 3,500,000 | 3,792,460 | |||||||||
3.724%, 06/15/50 | 2,750,000 | 2,941,098 | |||||||||
4.061%, 12/15/50 (b) | 1,505,000 | 1,634,310 | |||||||||
Wells Fargo Commercial Mortgage Trust | |||||||||||
3.184%, 04/15/50 | 1,544,000 | 1,617,232 | |||||||||
3.637%, 06/15/48 | 1,905,000 | 2,024,939 | |||||||||
27,119,662 | |||||||||||
Total other mortgage-backed securities (cost: $78,641,368) | 78,777,925 | ||||||||||
Corporate Obligations (41.2%) | |||||||||||
Communications (1.4%) | |||||||||||
Media (0.4%) | |||||||||||
Comcast Corp., 3.300%, 04/01/27 | 2,120,000 | 2,282,091 | |||||||||
Telecommunication (1.0%) | |||||||||||
AT&T, Inc. | |||||||||||
2.300%, 06/01/27 | 650,000 | 661,401 | |||||||||
3.550%, 09/15/55 | 4,012,000 | 4,024,674 | |||||||||
3.650%, 06/01/51 | 650,000 | 671,468 | |||||||||
5,357,543 | |||||||||||
Consumer Cyclical (1.0%) | |||||||||||
Auto/Truck Parts & Equipment — Original (1.0%) | |||||||||||
General Motors Financial Co., Inc., 0.810%, 03/08/24 (SOFRRATE + 0.760%) (b) | 1,775,000 | 1,778,999 | |||||||||
Hyundai Capital America 2.850%, 11/01/22 (f) | 3,000,000 | 3,046,515 |
Principal | Value(a) | ||||||||||
3.250%, 09/20/22 (f) | $ | 625,000 | $ | 636,238 | |||||||
5,461,752 | |||||||||||
Consumer, Non-cyclical (2.6%) | |||||||||||
Agricultural Operations (0.6%) | |||||||||||
Bunge Ltd. Finance Corp. | |||||||||||
1.630%, 08/17/25 | 1,000,000 | 996,345 | |||||||||
2.750%, 05/14/31 | 2,000,000 | 2,027,772 | |||||||||
3,024,117 | |||||||||||
Commercial Services (0.7%) | |||||||||||
Block Financial LLC | |||||||||||
2.500%, 07/15/28 | 1,005,000 | 1,004,243 | |||||||||
3.875%, 08/15/30 | 1,025,000 | 1,092,456 | |||||||||
Global Payments, Inc., 2.150%, 01/15/27 | 1,950,000 | 1,952,116 | |||||||||
4,048,815 | |||||||||||
Drugstore Chains (1.0%) | |||||||||||
CVS Pass-Through Trust | |||||||||||
5.298%, 01/11/27 (f) | 727,562 | 785,328 | |||||||||
5.880%, 01/10/28 | 272,310 | 303,393 | |||||||||
6.036%, 12/10/28 | 1,693,415 | 1,926,258 | |||||||||
6.943%, 01/10/30 | 1,777,798 | 2,113,415 | |||||||||
5,128,394 | |||||||||||
Pharmaceuticals (0.3%) | |||||||||||
Johnson & Johnson, 2.250%, 09/01/50 | 1,750,000 | 1,638,047 | |||||||||
Energy (5.2%) | |||||||||||
Oil & Gas (1.8%) | |||||||||||
Chevron USA, Inc., 3.900%, 11/15/24 | 2,035,000 | 2,184,328 | |||||||||
DT Midstream, Inc. | |||||||||||
4.125%, 06/15/29 (f) | 1,357,000 | 1,394,317 | |||||||||
4.375%, 06/15/31 (f) | 685,000 | 714,113 | |||||||||
Equinor ASA, 3.000%, 04/06/27 (g) | 2,800,000 | 2,953,426 | |||||||||
NGPL PipeCo LLC, 3.250%, 07/15/31 (f) | 1,965,000 | 1,998,484 | |||||||||
9,244,668 | |||||||||||
Oil, Gas & Consumable Fuels (0.7%) | |||||||||||
HollyFrontier Corp., 2.625%, 10/01/23 | 1,700,000 | 1,731,649 | |||||||||
Marathon Petroleum Corp., 5.850%, 12/15/45 | 1,505,000 | 1,903,825 | |||||||||
3,635,474 | |||||||||||
Pipelines (2.7%) | |||||||||||
Boardwalk Pipelines LP, 4.950%, 12/15/24 | 1,000,000 | 1,081,106 | |||||||||
El Paso Natural Gas Co. LLC, 8.375%, 06/15/32 | 675,000 | 963,187 | |||||||||
Energy Transfer LP, 6.850%, 02/15/40 | 2,150,000 | 2,730,500 | |||||||||
Enterprise Products Operating LLC, 2.948%, 06/01/67 (3-Month USD LIBOR + 2.778%) (b) | 2,180,000 | 1,962,796 |
See accompanying notes to financial statements.
62
SFT Core Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
EQM Midstream Partners LP, 6.500%, 07/15/48 | $ | 975,000 | $ | 1,177,312 | |||||||
Gray Oak Pipeline LLC, 3.450%, 10/15/27 (f) | 1,525,000 | 1,593,424 | |||||||||
Midwest Connector Capital Co. LLC, 3.625%, 04/01/22 (f) | 2,300,000 | 2,310,568 | |||||||||
Tennessee Gas Pipeline Co. LLC, 8.375%, 06/15/32 | 1,850,000 | 2,625,032 | |||||||||
14,443,925 | |||||||||||
Financial (14.0%) | |||||||||||
Banks (7.0%) | |||||||||||
Athene Global Funding, 3.000%, 07/01/22 (f) | 1,275,000 | 1,289,279 | |||||||||
Bank of America Corp., 3.974%, 02/07/30 (3-Month USD LIBOR + 1.210%) (b) | 4,040,000 | 4,448,848 | |||||||||
Discover Bank, 3.450%, 07/27/26 | 1,900,000 | 2,009,723 | |||||||||
Goldman Sachs Group, Inc., 2.383%, 07/21/32 (SOFRRATE + 1.248%) (b) | 3,785,000 | 3,734,497 | |||||||||
HSBC Holdings PLC, 3.262%, 03/13/23 (3-Month USD LIBOR + 1.055%) (b) (g) | 1,875,000 | 1,883,559 | |||||||||
JPMorgan Chase & Co. | |||||||||||
3.540%, 05/01/28 (3-Month USD LIBOR + 1.380%) (b) | 1,500,000 | 1,627,156 | |||||||||
4.600%, 02/01/25 (SOFRRATE + 3.125%) (b) | 1,175,000 | 1,198,500 | |||||||||
Morgan Stanley | |||||||||||
0.529%, 01/25/24 (SOFRRATE + 0.455%) (b) | 3,700,000 | 3,685,992 | |||||||||
3.125%, 07/27/26 | 800,000 | 847,730 | |||||||||
PNC Bank NA, 3.875%, 04/10/25 | 4,500,000 | 4,832,784 | |||||||||
Synovus Financial Corp., 3.125%, 11/01/22 | 2,580,000 | 2,619,879 | |||||||||
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 | 809,495 | |||||||||
5.300%, 04/15/27 (3-Month USD LIBOR + 2.914%) (b) | 800,000 | 863,464 | |||||||||
Wells Fargo & Co. | |||||||||||
2.393%, 06/02/28 (SOFRRATE + 2.100%) (b) | 4,125,000 | 4,190,823 | |||||||||
3.000%, 10/23/26 | 1,100,000 | 1,155,855 | |||||||||
36,994,134 |
Principal | Value(a) | ||||||||||
Diversified Financial Services (2.6%) | |||||||||||
Charles Schwab Corp., 4.625%, 03/01/22 (3-Month USD LIBOR + 3.315%) (b) | $ | 2,200,000 | $ | 2,205,500 | |||||||
DY7 Leasing LLC, 2.578%, 12/10/25 | 41,902 | 43,176 | |||||||||
Helios Leasing I LLC, 1.825%, 05/16/25 | 47,243 | 47,935 | |||||||||
Macquarie Group Ltd., 2.691%, 06/23/32 (SOFRRATE + 1.440%) (b) (f) (g) | 4,575,000 | 4,553,347 | |||||||||
Main Street Capital Corp., 3.000%, 07/14/26 | 2,550,000 | 2,551,232 | |||||||||
Pine Street Trust I, 4.572%, 02/15/29 (f) | 1,450,000 | 1,638,303 | |||||||||
Sixth Street Specialty Lending, Inc., 3.875%, 11/01/24 | 1,305,000 | 1,363,444 | |||||||||
USAA Capital Corp., 1.500%, 05/01/23 (f) | 1,250,000 | 1,261,887 | |||||||||
13,664,824 | |||||||||||
Finance (2.7%) | |||||||||||
Blackstone Secured Lending Fund, 2.125%, 02/15/27 (f) | 2,625,000 | 2,550,584 | |||||||||
Citigroup, Inc., 1.281%, 11/03/25 (SOFRRATE + 0.528%) (b) | 2,625,000 | 2,614,692 | |||||||||
Phillips Edison Grocery Center Operating Partnership I LP, 2.625%, 11/15/31 | 2,100,000 | 2,042,197 | |||||||||
Seasoned Credit Risk Transfer Trust, 2.000%, 03/25/61 | 1,585,525 | 1,596,427 | |||||||||
State Street Corp., 2.200%, 03/03/31 | 2,001,000 | 1,987,289 | |||||||||
The Bank of New York Mellon Corp., 3.750%, 12/20/26 (5-Year CMT + 2.630%) (b) | 3,600,000 | 3,613,500 | |||||||||
14,404,689 | |||||||||||
Insurance (1.7%) | |||||||||||
Equitable Financial Life Global Funding, 1.400%, 07/07/25 (f) | 2,450,000 | 2,431,980 | |||||||||
Security Benefit Global Funding, 1.250%, 05/17/24 (f) | 2,250,000 | 2,238,759 | |||||||||
Teachers Insurance & Annuity Association of America, 4.270%, 05/15/47 (f) | 2,500,000 | 3,031,148 | |||||||||
Unum Group, 5.750%, 08/15/42 | 1,300,000 | 1,594,044 | |||||||||
9,295,931 |
See accompanying notes to financial statements.
63
SFT Core Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Health Care (2.2%) | |||||||||||
Health Care Providers & Services (1.7%) | |||||||||||
New York & Presbyterian Hospital | |||||||||||
2.256%, 08/01/40 | $ | 3,175,000 | $ | 3,017,977 | |||||||
2.606%, 08/01/60 | 650,000 | 617,017 | |||||||||
NYU Langone Hospitals | |||||||||||
3.380%, 07/01/55 | 2,354,000 | 2,439,850 | |||||||||
4.428%, 07/01/42 | 1,570,000 | 1,911,031 | |||||||||
Sinai Health System, 3.034%, 01/20/36 | 1,220,000 | 1,232,963 | |||||||||
9,218,838 | |||||||||||
Pharmaceuticals (0.5%) | |||||||||||
Viatris, Inc. | |||||||||||
2.300%, 06/22/27 | 1,400,000 | 1,409,590 | |||||||||
3.850%, 06/22/40 | 1,000,000 | 1,065,209 | |||||||||
2,474,799 | |||||||||||
Industrials (1.4%) | |||||||||||
Transportation (1.4%) | |||||||||||
CSX Corp. | |||||||||||
4.250%, 11/01/66 | 1,085,000 | 1,330,681 | |||||||||
4.750%, 11/15/48 | 625,000 | 814,514 | |||||||||
Kansas City Southern, 3.125%, 06/01/26 | 1,500,000 | 1,572,997 | |||||||||
Triton Container International Ltd. | |||||||||||
2.050%, 04/15/26 (f) (g) | 2,340,000 | 2,323,138 | |||||||||
3.150%, 06/15/31 (f) (g) | 1,285,000 | 1,293,468 | |||||||||
7,334,798 | |||||||||||
Technology (1.3%) | |||||||||||
Computers (0.7%) | |||||||||||
Dell International LLC / EMC Corp., 5.300%, 10/01/29 | 1,475,000 | 1,737,063 | |||||||||
Leidos, Inc., 2.950%, 05/15/23 | 1,950,000 | 1,996,313 | |||||||||
3,733,376 | |||||||||||
Semiconductor Equipment (0.6%) | |||||||||||
TSMC Arizona Corp. | |||||||||||
1.750%, 10/25/26 | 1,550,000 | 1,549,989 | |||||||||
2.500%, 10/25/31 | 1,675,000 | 1,696,616 | |||||||||
3,246,605 | |||||||||||
Transportation (3.3%) | |||||||||||
Airlines (3.3%) | |||||||||||
Air Canada 2017-1 Class A Pass Through Trust, 3.550%, 07/15/31 (f) (g) | 1,840,920 | 1,788,677 | |||||||||
American Airlines 2016-1 Class B Pass Through Trust, 5.250%, 07/15/25 | 716,526 | 709,361 | |||||||||
American Airlines 2017-1 Class B Pass Through Trust, 4.950%, 08/15/26 | 606,000 | 594,638 | |||||||||
British Airways 2019-1 Class A Pass Through Trust, 3.350%, 12/15/30 (f) | 1,225,917 | 1,213,658 |
Principal | Value(a) | ||||||||||
British Airways 2020-1 Class A Pass Through Trust, 4.250%, 05/15/34 (f) | $ | 531,124 | $ | 563,849 | |||||||
Delta Air Lines 2015-1 Class B Pass Through Trust, 4.250%, 01/30/25 | 1,102,082 | 1,119,212 | |||||||||
Delta Air Lines 2020-1 Class A Pass Through Trust, 2.500%, 12/10/29 | 1,642,477 | 1,636,945 | |||||||||
Hawaiian Airlines 2013-1 Class B Pass Through Certificates, 4.950%, 07/15/23 | 1,046,987 | 1,046,987 | |||||||||
JetBlue 2020-1 Class A Pass Through Trust, 4.000%, 05/15/34 | 803,724 | 870,313 | |||||||||
United Airlines 2014-1 Class B Pass Through Trust, 4.750%, 10/11/23 | 288,196 | 289,928 | |||||||||
United Airlines 2014-2 Class B Pass Through Trust, 4.625%, 03/03/24 | 1,222,864 | 1,244,264 | |||||||||
United Airlines 2016-1 Class B Pass Through Trust, 3.650%, 07/07/27 | 819,271 | 810,112 | |||||||||
United Airlines 2019-2 Class B Pass Through Trust, 3.500%, 11/01/29 | 1,265,913 | 1,250,319 | |||||||||
United Airlines 2020-1 Class A Pass Through Trust, 5.875%, 04/15/29 | 1,806,600 | 1,973,711 | |||||||||
United Airlines 2020-1 Class B Pass Through Trust, 4.875%, 07/15/27 | 2,065,400 | 2,142,852 | |||||||||
17,254,826 | |||||||||||
Utilities (8.8%) | |||||||||||
Electric Companies (0.5%) | |||||||||||
Indianapolis Power & Light Co., 4.700%, 09/01/45 (f) | 1,900,000 | 2,407,365 | |||||||||
Electric Utilities (5.7%) | |||||||||||
AES Corp. | |||||||||||
1.375%, 01/15/26 | 620,000 | 602,093 | |||||||||
3.300%, 07/15/25 (f) | 1,825,000 | 1,898,097 | |||||||||
American Transmission System, Inc., 2.650%, 01/15/32 (f) | 2,300,000 | 2,326,535 | |||||||||
Cleco Corporate Holdings LLC, 3.743%, 05/01/26 | 1,125,000 | 1,196,864 | |||||||||
Duke Energy Carolinas LLC | |||||||||||
4.000%, 09/30/42 | 550,000 | 630,926 | |||||||||
4.250%, 12/15/41 | 4,030,000 | 4,753,421 | |||||||||
Entergy Mississippi LLC, 3.250%, 12/01/27 | 1,100,000 | 1,164,497 | |||||||||
Entergy Texas, Inc., 3.450%, 12/01/27 | 1,957,000 | 2,069,758 | |||||||||
Eversource Energy, 3.800%, 12/01/23 | 2,400,000 | 2,516,700 | |||||||||
FirstEnergy Transmission LLC, 5.450%, 07/15/44 (f) | 2,000,000 | 2,510,000 | |||||||||
IPALCO Enterprises, Inc., 3.700%, 09/01/24 | 1,175,000 | 1,229,344 |
See accompanying notes to financial statements.
64
SFT Core Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
MidAmerican Energy Co. | |||||||||||
4.250%, 07/15/49 | $ | 1,750,000 | $ | 2,158,202 | |||||||
4.400%, 10/15/44 | 480,000 | 590,975 | |||||||||
Pacific Gas and Electric Co., 1.750%, 06/16/22 | 1,525,000 | 1,523,615 | |||||||||
PacifiCorp, 3.300%, 03/15/51 | 1,410,000 | 1,472,111 | |||||||||
PG&E Energy Recovery Funding LLC, 1.460%, 07/15/33 | 1,700,000 | 1,679,495 | |||||||||
PPL Capital Funding, Inc., 2.885%, 03/30/67 (3-Month USD LIBOR + 2.665%) (b) | 2,147,000 | 1,999,394 | |||||||||
30,322,027 | |||||||||||
Electric — Integrated (0.7%) | |||||||||||
Ameren Corp., 3.500%, 01/15/31 | 1,125,000 | 1,217,510 | |||||||||
Exelon Corp., 4.050%, 04/15/30 | 1,000,000 | 1,113,037 | |||||||||
Florida Power & Light Co., 2.850%, 04/01/25 | 1,450,000 | 1,513,265 | |||||||||
3,843,812 | |||||||||||
Gas Utilities (1.9%) | |||||||||||
East Ohio Gas Co. | |||||||||||
1.300%, 06/15/25 (f) | 1,380,000 | 1,360,839 | |||||||||
3.000%, 06/15/50 (f) | 1,685,000 | 1,660,247 | |||||||||
Piedmont Natural Gas Co., Inc., 3.350%, 06/01/50 | 1,800,000 | 1,863,518 | |||||||||
Southern Co. Gas Capital Corp. | |||||||||||
3.875%, 11/15/25 | 2,605,000 | 2,777,045 | |||||||||
4.400%, 05/30/47 | 775,000 | 911,884 | |||||||||
6.000%, 10/01/34 | 1,090,000 | 1,395,618 | |||||||||
9,969,151 | |||||||||||
Total corporate obligations (cost: $211,590,105) | 218,430,001 | ||||||||||
Total long-term debt securities (cost: $512,005,665) | 523,541,456 |
Shares | Value(a) | ||||||||||
Short-Term Securities (0.8%) | |||||||||||
Investment Companies (0.8%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 4,468,964 | $ | 4,468,964 | ||||||||
Total short-term securities (cost: $4,468,964) | 4,468,964 | ||||||||||
Total investments in securities (cost: $516,474,629) (h) | 528,010,420 | ||||||||||
Cash and other assets in excess of liabilities (0.4%) | 2,320,225 | ||||||||||
Total net assets (100.0%) | $ | 530,330,645 |
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) These securities are being fair valued according to procedures approved by the Board of Trustees of Securian Funds Trust.
(e) Fully or partially pledged as initial margin deposits on open futures contracts.
(f) 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.
(g) Foreign security: The Fund held 3.4% of net assets in foreign securities at December 31, 2021.
See accompanying notes to financial statements.
65
SFT Core Bond Fund
Investments in Securities – continued
(h) At December 31, 2021, the cost of investments for federal income tax purposes was $516,702,043. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 16,129,170 | |||||
Gross unrealized depreciation | (4,761,651 | ) | |||||
Net unrealized appreciation | $ | 11,367,519 |
Holdings of Open Futures Contracts
On December 31, 2021, securities with an aggregate market value of $1,442,313 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 2022 | 135 | Long | $ | 16,263,608 | $ | 16,331,836 | $ | 68,228 | ||||||||||||||||||
10 Year U.S. Ultra | March 2022 | 119 | Short | (17,174,740 | ) | (17,426,063 | ) | (251,323 | ) | ||||||||||||||||||
U.S. Long Bond | March 2022 | 251 | Long | 39,848,856 | 40,269,813 | 420,957 | |||||||||||||||||||||
U.S. Ultra Bond | March 2022 | 57 | Short | (11,057,405 | ) | (11,236,125 | ) | (178,720 | ) | ||||||||||||||||||
$ | 27,939,461 | $ | 59,142 |
See accompanying notes to financial statements.
66
SFT Delaware IvySM Growth Fund (Formerly SFT IvySM Growth Fund)
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (99.7%) | |||||||||||
Communication Services (0.7%) | |||||||||||
Interactive Media & Services (0.7%) | |||||||||||
Pinterest, Inc. Class A (b) | 132,775 | $ | 4,826,371 | ||||||||
Consumer Discretionary (12.5%) | |||||||||||
Automobiles (2.0%) | |||||||||||
Ferrari NV (c) | 55,112 | 14,264,088 | |||||||||
Hotels, Restaurants & Leisure (1.2%) | |||||||||||
Booking Holdings, Inc. (b) | 3,557 | 8,534,061 | |||||||||
Internet & Catalog Retail (6.5%) | |||||||||||
Amazon.com, Inc. (b) | 13,737 | 45,803,829 | |||||||||
Specialty Retail (1.8%) | |||||||||||
Home Depot, Inc. | 30,196 | 12,531,642 | |||||||||
Textiles, Apparel & Luxury Goods (1.0%) | |||||||||||
NIKE, Inc. Class B | 42,597 | 7,099,642 | |||||||||
Consumer Staples (2.6%) | |||||||||||
Beverages (2.3%) | |||||||||||
Coca-Cola Co. | 279,450 | 16,546,235 | |||||||||
Personal Care (0.3%) | |||||||||||
Estee Lauder Cos., Inc. Class A | 4,987 | 1,846,187 | |||||||||
Financial (3.6%) | |||||||||||
Capital Markets (3.6%) | |||||||||||
Intercontinental Exchange, Inc. | 90,687 | 12,403,261 | |||||||||
S&P Global, Inc. | 26,875 | 12,683,119 | |||||||||
25,086,380 | |||||||||||
Health Care (11.6%) | |||||||||||
Health Care Equipment & Supplies (4.6%) | |||||||||||
Cooper Cos., Inc. | 31,765 | 13,307,629 | |||||||||
Danaher Corp. | 26,851 | 8,834,247 | |||||||||
Intuitive Surgical, Inc. (b) | 27,999 | 10,060,041 | |||||||||
32,201,917 | |||||||||||
Health Care Providers & Services (3.4%) | |||||||||||
UnitedHealth Group, Inc. | 47,540 | 23,871,736 | |||||||||
Health Care Technology (2.3%) | |||||||||||
Cerner Corp. | 174,106 | 16,169,224 | |||||||||
Pharmaceuticals (1.3%) | |||||||||||
Zoetis, Inc. | 38,803 | 9,469,096 | |||||||||
Industrials (9.3%) | |||||||||||
Machinery (1.2%) | |||||||||||
Stanley Black & Decker, Inc. | 44,203 | 8,337,570 |
Shares | Value(a) | ||||||||||
Professional Services (5.4%) | |||||||||||
CoStar Group, Inc. (b) | 236,576 | $ | 18,696,601 | ||||||||
TransUnion | 105,463 | 12,505,803 | |||||||||
Verisk Analytics, Inc. | 30,786 | 7,041,682 | |||||||||
38,244,086 | |||||||||||
Road & Rail (2.7%) | |||||||||||
JB Hunt Transport Services, Inc. | 58,094 | 11,874,414 | |||||||||
Union Pacific Corp. | 27,963 | 7,044,718 | |||||||||
18,919,132 | |||||||||||
Information Technology (59.4%) | |||||||||||
Communications Equipment (4.0%) | |||||||||||
Motorola Solutions, Inc. | 105,116 | 28,560,017 | |||||||||
Computers & Peripherals (8.9%) | |||||||||||
Apple, Inc. | 351,910 | 62,488,659 | |||||||||
Interactive Media & Services (9.3%) | |||||||||||
Alphabet, Inc. Class A (b) | 13,719 | 39,744,492 | |||||||||
Alphabet, Inc. Class C (b) | 2,139 | 6,189,388 | |||||||||
Meta Platforms, Inc. Class A (b) | 59,593 | 20,044,106 | |||||||||
65,977,986 | |||||||||||
IT Services (11.5%) | |||||||||||
Broadridge Financial Solutions, Inc. | 69,629 | 12,729,574 | |||||||||
PayPal Holdings, Inc. (b) | 67,171 | 12,667,107 | |||||||||
VeriSign, Inc. (b) | 103,767 | 26,338,140 | |||||||||
Visa, Inc. Class A | 134,482 | 29,143,594 | |||||||||
80,878,415 | |||||||||||
Semiconductors & Semiconductor Equipment (4.3%) | |||||||||||
NVIDIA Corp. | 103,805 | 30,530,089 | |||||||||
Software (21.4%) | |||||||||||
Adobe, Inc. (b) | 23,890 | 13,547,063 | |||||||||
Autodesk, Inc. (b) | 17,153 | 4,823,252 | |||||||||
Electronic Arts, Inc. | 137,895 | 18,188,350 | |||||||||
Intuit, Inc. | 25,698 | 16,529,468 | |||||||||
Microsoft Corp. | 255,142 | 85,809,357 | |||||||||
Salesforce.com, Inc. (b) | 46,981 | 11,939,282 | |||||||||
150,836,772 | |||||||||||
Total common stocks (cost: $351,685,716) | 703,023,134 |
See accompanying notes to financial statements.
67
SFT Delaware IvySM Growth Fund (Formerly SFT IvySM Growth Fund)
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Short-Term Securities (0.4%) | |||||||||||
Investment Companies (0.4%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 2,889,142 | $ | 2,889,142 | ||||||||
Total short-term securities (cost: $2,889,142) | 2,889,142 | ||||||||||
Total investments in securities (cost: $354,574,858) (d) | 705,912,276 | ||||||||||
Liabilities in excess of cash and other assets (-0.1%) | (475,759 | ) | |||||||||
Total net assets (100.0%) | $ | 705,436,517 |
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, 2021.
(d) At December 31, 2021, the cost of investments for federal income tax purposes was $355,409,881. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 354,914,241 | |||||
Gross unrealized depreciation | (4,411,846 | ) | |||||
Net unrealized appreciation | $ | 350,502,395 |
See accompanying notes to financial statements.
68
SFT Delaware IvySM Small Cap Growth Fund (Formerly SFT IvySM Small Cap Growth Fund)
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (98.0%) | |||||||||||
Communication Services (0.6%) | |||||||||||
Media (0.6%) | |||||||||||
Gray Television, Inc. | 57,684 | $ | 1,162,910 | ||||||||
Consumer Discretionary (18.9%) | |||||||||||
Auto Components (2.8%) | |||||||||||
Fox Factory Holding Corp. (b) | 23,169 | 3,941,047 | |||||||||
Visteon Corp. (b) | 15,988 | 1,776,906 | |||||||||
5,717,953 | |||||||||||
Entertainment (1.1%) | |||||||||||
Monarch Casino & Resort, Inc. (b) | 30,757 | 2,274,480 | |||||||||
Hotels, Restaurants & Leisure (9.0%) | |||||||||||
Churchill Downs, Inc. | 15,311 | 3,688,420 | |||||||||
Marriott Vacations Worldwide Corp. | 25,667 | 4,337,210 | |||||||||
Portillo's, Inc. Class A (b) | 10,695 | 401,490 | |||||||||
Red Rock Resorts, Inc. Class A | 70,335 | 3,869,128 | |||||||||
Sweetgreen, Inc. Class A (b) | 6,323 | 202,336 | |||||||||
Texas Roadhouse, Inc. | 30,328 | 2,707,684 | |||||||||
Wyndham Hotels & Resorts, Inc. | 35,466 | 3,179,527 | |||||||||
18,385,795 | |||||||||||
Household Durables (0.6%) | |||||||||||
TopBuild Corp. (b) | 4,761 | 1,313,608 | |||||||||
Leisure Equipment & Products (1.3%) | |||||||||||
Malibu Boats, Inc. Class A (b) | 40,176 | 2,761,297 | |||||||||
Media (1.8%) | |||||||||||
Nexstar Media Group, Inc. Class A | 24,002 | 3,623,822 | |||||||||
Specialty Retail (0.4%) | |||||||||||
EVgo, Inc. (b) | 80,028 | 795,478 | |||||||||
Textiles, Apparel & Luxury Goods (1.9%) | |||||||||||
Deckers Outdoor Corp. (b) | 10,362 | 3,795,704 | |||||||||
Consumer, Non-cyclical (0.7%) | |||||||||||
Beverages (0.7%) | |||||||||||
Duckhorn Portfolio, Inc. (b) | 65,447 | 1,527,533 | |||||||||
Energy (1.6%) | |||||||||||
Energy Equipment & Services (1.2%) | |||||||||||
Cactus, Inc. Class A | 49,044 | 1,870,048 | |||||||||
Liberty Oilfield Services, Inc. Class A (b) | 57,402 | 556,799 | |||||||||
2,426,847 | |||||||||||
Oil, Gas & Consumable Fuels (0.4%) | |||||||||||
SM Energy Co. | 30,261 | 892,094 | |||||||||
Financial (5.0%) | |||||||||||
Capital Markets (1.3%) | |||||||||||
Focus Financial Partners, Inc. Class A (b) | 23,700 | 1,415,364 |
Shares | Value(a) | ||||||||||
Hamilton Lane, Inc. Class A | 3,413 | $ | 353,655 | ||||||||
Open Lending Corp. Class A (b) | 42,745 | 960,908 | |||||||||
2,729,927 | |||||||||||
Commercial Banks (3.7%) | |||||||||||
Pinnacle Financial Partners, Inc. | 42,499 | 4,058,655 | |||||||||
Seacoast Banking Corp. of Florida | 44,538 | 1,576,200 | |||||||||
Veritex Holdings, Inc. | 48,200 | 1,917,395 | |||||||||
7,552,250 | |||||||||||
Health Care (24.4%) | |||||||||||
Biotechnology (6.6%) | |||||||||||
Blueprint Medicines Corp. (b) | 7,527 | 806,217 | |||||||||
CareDx, Inc. (b) | 86,326 | 3,926,106 | |||||||||
Insmed, Inc. (b) | 36,307 | 989,003 | |||||||||
Organogenesis Holdings, Inc. (b) | 122,809 | 1,134,755 | |||||||||
PTC Therapeutics, Inc. (b) | 17,502 | 697,105 | |||||||||
Twist Bioscience Corp. (b) | 7,568 | 585,687 | |||||||||
Veracyte, Inc. (b) | 30,770 | 1,267,724 | |||||||||
Vericel Corp. (b) | 102,266 | 4,019,054 | |||||||||
13,425,651 | |||||||||||
Health Care Equipment & Supplies (6.1%) | |||||||||||
Axonics, Inc. (b) | 50,963 | 2,853,928 | |||||||||
CryoPort, Inc. (b) | 70,686 | 4,182,491 | |||||||||
Tactile Systems Technology, Inc. (b) | 27,194 | 517,502 | |||||||||
Tandem Diabetes Care, Inc. (b) | 32,943 | 4,958,580 | |||||||||
12,512,501 | |||||||||||
Health Care Providers & Services (6.3%) | |||||||||||
AMN Healthcare Services, Inc. (b) | 29,662 | 3,628,552 | |||||||||
Castle Biosciences, Inc. (b) | 35,288 | 1,512,797 | |||||||||
Joint Corp. (b) | 19,793 | 1,300,202 | |||||||||
PetIQ, Inc. (b) | 151,887 | 3,449,354 | |||||||||
Progyny, Inc. (b) | 61,390 | 3,090,986 | |||||||||
12,981,891 | |||||||||||
Health Care Technology (4.4%) | |||||||||||
Omnicell, Inc. (b) | 24,651 | 4,448,026 | |||||||||
Vocera Communications, Inc. (b) | 68,629 | 4,449,904 | |||||||||
8,897,930 | |||||||||||
Life Sciences Tools & Services (0.6%) | |||||||||||
Quanterix Corp. (b) | 28,790 | 1,220,697 | |||||||||
Pharmaceuticals (0.4%) | |||||||||||
Pacira BioSciences, Inc. (b) | 14,141 | 850,864 | |||||||||
Industrials (14.5%) | |||||||||||
Air Freight & Logistics (1.0%) | |||||||||||
Air Transport Services Group, Inc. (b) | 66,435 | 1,951,860 |
See accompanying notes to financial statements.
69
SFT Delaware IvySM Small Cap Growth Fund (Formerly SFT IvySM Small Cap Growth Fund)
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Commercial Services & Supplies (2.6%) | |||||||||||
Brink's Co. | 33,239 | $ | 2,179,481 | ||||||||
Clean Harbors, Inc. (b) | 30,685 | 3,061,443 | |||||||||
5,240,924 | |||||||||||
Construction & Engineering (1.6%) | |||||||||||
Valmont Industries, Inc. | 13,246 | 3,318,123 | |||||||||
Electrical Equipment (2.2%) | |||||||||||
EnerSys | 24,242 | 1,916,573 | |||||||||
Regal Rexnord Corp. | 15,339 | 2,610,391 | |||||||||
4,526,964 | |||||||||||
Machinery (3.5%) | |||||||||||
Altra Industrial Motion Corp. | 19,597 | 1,010,617 | |||||||||
John Bean Technologies Corp. | 16,382 | 2,515,620 | |||||||||
Kornit Digital Ltd. (b) (c) | 14,012 | 2,133,327 | |||||||||
RBC Bearings, Inc. (b) | 7,613 | 1,537,598 | |||||||||
7,197,162 | |||||||||||
Road & Rail (2.5%) | |||||||||||
Knight-Swift Transportation Holdings, Inc. | 82,396 | 5,021,212 | |||||||||
Trading Companies & Distributors (1.1%) | |||||||||||
Herc Holdings, Inc. | 15,064 | 2,358,269 | |||||||||
Information Technology (30.0%) | |||||||||||
Communications Equipment (1.7%) | |||||||||||
Viavi Solutions, Inc. (b) | 195,543 | 3,445,468 | |||||||||
Computers & Peripherals (1.6%) | |||||||||||
NCR Corp. (b) | 84,219 | 3,385,604 | |||||||||
IT Services (3.6%) | |||||||||||
Shift4 Payments, Inc. Class A (b) | 62,545 | 3,623,232 | |||||||||
Switch, Inc. Class A | 128,973 | 3,693,786 | |||||||||
7,317,018 | |||||||||||
Semiconductors & Semiconductor Equipment (6.4%) | |||||||||||
Allegro MicroSystems, Inc. (b) | 107,520 | 3,890,074 | |||||||||
Monolithic Power Systems, Inc. | 7,806 | 3,850,934 | |||||||||
SiTime Corp. (b) | 18,099 | 5,294,681 | |||||||||
13,035,689 |
Shares | Value(a) | ||||||||||
Software (16.7%) | |||||||||||
BTRS Holdings, Inc. (b) | 150,954 | 1,180,460 | |||||||||
CyberArk Software, Ltd. (b) (c) | 2,948 | 510,829 | |||||||||
Domo, Inc. Class B (b) | 50,465 | 2,503,064 | |||||||||
Five9, Inc. (b) | 21,988 | 3,019,392 | |||||||||
ForgeRock, Inc. Class A (b) | 17,426 | 465,100 | |||||||||
Globant SA (b) (c) | 19,450 | 6,109,051 | |||||||||
LivePerson, Inc. (b) | 51,732 | 1,847,867 | |||||||||
Mimecast Ltd. (b) (c) | 42,197 | 3,357,615 | |||||||||
Paycor HCM, Inc. (b) | 74,677 | 2,151,444 | |||||||||
Q2 Holdings, Inc. (b) | 33,860 | 2,689,838 | |||||||||
Sailpoint Technologies Holdings, Inc. (b) | 41,997 | 2,030,135 | |||||||||
SimilarWeb Ltd. (b) (c) | 32,082 | 574,589 | |||||||||
Smartsheet, Inc. Class A (b) | 36,615 | 2,835,833 | |||||||||
Varonis Systems, Inc. (b) | 102,407 | 4,995,413 | |||||||||
34,270,630 | |||||||||||
Leisure and Consumer Staples (2.3%) | |||||||||||
Beverages (0.5%) | |||||||||||
MGP Ingredients, Inc. | 11,913 | $ | 1,012,486 | ||||||||
Food & Staples Retailing (1.6%) | |||||||||||
BJ's Wholesale Club Holdings, Inc. (b) | 47,857 | 3,204,983 | |||||||||
Food Products (0.2%) | |||||||||||
Sovos Brands, Inc. (b) | 34,473 | 518,819 | |||||||||
Total common stocks (cost: $149,182,859) | 200,654,443 | ||||||||||
Short-Term Securities (2.0%) | |||||||||||
Investment Companies (2.0%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 4,009,272 | 4,009,272 | |||||||||
Total short-term securities (cost: $4,009,272) | 4,009,272 | ||||||||||
Total investments in securities (cost: $153,192,131) (d) | 204,663,715 | ||||||||||
Cash and other assets in excess of liabilities (0.0%) | 2,511 | ||||||||||
Total net assets (100.0%) | $ | 204,666,226 |
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 6.2% of net assets in foreign securities at December 31, 2021.
(d) At December 31, 2021, the cost of investments for federal income tax purposes was $153,718,753. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 59,616,537 | |||||
Gross unrealized depreciation | (8,671,575 | ) | |||||
Net unrealized appreciation | $ | 50,944,962 |
See accompanying notes to financial statements.
70
SFT Equity Stabilization Fund (Formerly SFT Managed Volatility Equity Fund)
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Mutual Funds (87.8%) | |||||||||||
Investment Companies (87.8%) | |||||||||||
BlackRock Short Maturity Bond ETF | 318,620 | $ | 15,915,069 | ||||||||
iShares Core High Dividend ETF | 646,207 | 65,260,445 | |||||||||
iShares Edge MSCI Minimum Volatility EAFE ETF | 1,144,303 | 87,848,141 | |||||||||
iShares Edge MSCI Minimum Volatility Emerging Markets ETF | 358,085 | 22,494,899 | |||||||||
iShares Edge MSCI Minimum Volatility USA ETF (b) | 1,456,872 | 117,860,945 | |||||||||
iShares MSCI Germany ETF | 531,232 | 17,413,785 | |||||||||
Total mutual funds (cost: $249,435,058) | 326,793,284 |
Shares | Value(a) | ||||||||||
Short-Term Securities (10.0%) | |||||||||||
Investment Companies (10.0%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 37,113,352 | $ | 37,113,352 | ||||||||
Total investments excluding purchased options (cost: $286,548,410) | 363,906,636 | ||||||||||
Total purchased options outstanding (0.0%) (cost: $153,913) | 49,110 | ||||||||||
Total investments in securities (cost: $286,702,323) (c) | 363,955,746 | ||||||||||
Cash and other assets in excess of liabilities (2.2%) | 8,376,989 | ||||||||||
Total net assets (100.0%) | $ | 372,332,735 |
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.
(c) At December 31, 2021, the cost of investments for federal income tax purposes was $288,653,990. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 75,310,064 | |||||
Gross unrealized depreciation | (84,046 | ) | |||||
Net unrealized appreciation | $ | 75,226,018 |
Holdings of Open Futures Contracts
On December 31, 2021, securities with an aggregate market value of $14,238,400 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 2022 | 106 | Long | $ | 25,295,036 | $ | 25,220,050 | $ | (74,986 | ) |
Put Options Purchased:
The Fund had the following put options purchased open at December 31, 2021:
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Value(a) | ||||||||||||||||||
CBOE Volatility Index | $ | 22 | January 2022 | 94 | $ | 9,400 | $ | 34,310 | |||||||||||||||
S&P 500 Index | 3,900 | January 2022 | 40 | 4,000 | 14,800 | ||||||||||||||||||
$ | 49,110 |
Put Options Written:
The Fund had the following put options written open at December 31, 2021:
Description | Exercise Price | Expiration Date | Number of Contracts | Notional Amount | Value(a) | ||||||||||||||||||
CBOE Volatility Index | $ | 12 | January 2022 | 94 | $ | 9,400 | $ | (752 | ) |
See accompanying notes to financial statements.
71
SFT Government Money Market Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Short-Term Securities (100.2%) | |||||||||||
U.S. Government Obligations (94.5%) | |||||||||||
Discount Notes (94.5%) | |||||||||||
Federal Home Loan Bank 0.025%, 02/14/22 (b) | $ | 8,000,000 | $ | 7,999,756 | |||||||
0.038%, 01/14/22 (b) | 40,000,000 | 39,999,422 | |||||||||
0.039%, 01/21/22 (b) | 10,000,000 | 9,999,778 | |||||||||
0.044%, 02/02/22 (b) | 20,000,000 | 19,999,200 | |||||||||
0.045%, 02/11/22 (b) | 1,400,000 | 1,399,928 | |||||||||
0.045%, 02/25/22 (b) | 10,000,000 | 9,999,313 | |||||||||
0.045%, 03/01/22 (b) | 2,000,000 | 1,999,852 | |||||||||
0.045%, 04/01/22 (b) | 10,000,000 | 9,998,875 | |||||||||
0.048%, 02/09/22 (b) | 10,000,000 | 9,999,469 | |||||||||
U.S. Treasury Bill 0.033%, 02/08/22 | 10,000,000 | 9,999,646 | |||||||||
0.038%, 03/31/22 | 20,000,000 | 19,997,404 | |||||||||
0.039%, 02/03/22 | 15,000,000 | 14,999,457 | |||||||||
0.045%, 01/27/22 | 10,000,000 | 9,999,668 | |||||||||
0.045%, 03/03/22 | 10,000,000 | 9,999,238 | |||||||||
0.046%, 02/10/22 | 10,000,000 | 9,999,483 | |||||||||
Total U.S. government obligations | 186,390,489 |
Shares | Value(a) | ||||||||||
Investment Companies (5.7%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 11,170,627 | $ | 11,170,627 | ||||||||
Total short-term securities (cost: $197,561,116) | 197,561,116 | ||||||||||
Total investments in securities (cost: $197,561,116) (c) | 197,561,116 | ||||||||||
Liabilities in excess of cash and other assets (-0.2%) | (482,767 | ) | |||||||||
Total net assets (100.0%) | $ | 197,078,349 |
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, 2021.
See accompanying notes to financial statements.
72
SFT Index 400 Mid-Cap Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (94.7%) | |||||||||||
Communication Services (0.2%) | |||||||||||
Diversified Telecommunication Services (0.2%) | |||||||||||
Iridium Communications, Inc. (b) | 11,832 | $ | 488,543 | ||||||||
Consumer Discretionary (15.8%) | |||||||||||
Auto Components (1.7%) | |||||||||||
Adient PLC (b) (c) | 8,349 | 399,750 | |||||||||
Dana, Inc. | 12,918 | 294,789 | |||||||||
Fox Factory Holding Corp. (b) | 3,824 | 650,462 | |||||||||
Gentex Corp. | 21,184 | 738,262 | |||||||||
Goodyear Tire & Rubber Co. (b) | 25,099 | 535,111 | |||||||||
Lear Corp. | 5,358 | 980,246 | |||||||||
Visteon Corp. (b) | 2,500 | 277,850 | |||||||||
3,876,470 | |||||||||||
Automobiles (0.5%) | |||||||||||
Harley-Davidson, Inc. | 13,697 | 516,240 | |||||||||
Thor Industries, Inc. | 4,965 | 515,218 | |||||||||
1,031,458 | |||||||||||
Diversified Consumer Services (0.8%) | |||||||||||
Graham Holdings Co. – Class B | 358 | 225,479 | |||||||||
Grand Canyon Education, Inc. (b) | 3,589 | 307,613 | |||||||||
H&R Block, Inc. | 15,730 | 370,599 | |||||||||
Service Corp. International | 14,770 | 1,048,522 | |||||||||
1,952,213 | |||||||||||
Entertainment (0.1%) | |||||||||||
World Wrestling Entertainment, Inc. – Class A | 3,948 | 194,794 | |||||||||
Hotels, Restaurants & Leisure (2.8%) | |||||||||||
Boyd Gaming Corp. (b) | 7,312 | 479,448 | |||||||||
Choice Hotels International, Inc. | 2,943 | 459,079 | |||||||||
Churchill Downs, Inc. | 3,147 | 758,112 | |||||||||
Cracker Barrel Old Country Store, Inc. | 2,080 | 267,571 | |||||||||
Jack in the Box, Inc. | 1,943 | 169,974 | |||||||||
Marriott Vacations Worldwide Corp. | 3,787 | 639,927 | |||||||||
Papa John's International, Inc. | 2,886 | 385,194 | |||||||||
Scientific Games Corp. – Class A (b) | 8,642 | 577,545 | |||||||||
Six Flags Entertainment Corp. (b) | 6,869 | 292,482 | |||||||||
Texas Roadhouse, Inc. | 6,262 | 559,071 | |||||||||
Travel + Leisure Co. | 7,639 | 422,208 | |||||||||
Wendy's Co. | 15,809 | 377,045 | |||||||||
Wingstop, Inc. | 2,668 | 461,030 | |||||||||
Wyndham Hotels & Resorts, Inc. | 8,287 | 742,930 | |||||||||
6,591,616 |
Shares | Value(a) | ||||||||||
Household Durables (1.9%) | |||||||||||
Helen of Troy Ltd. (b) (c) | 2,147 | $ | 524,877 | ||||||||
KB Home | 7,676 | 343,348 | |||||||||
Leggett & Platt, Inc. | 11,946 | 491,697 | |||||||||
Taylor Morrison Home Corp. (b) | 11,006 | 384,770 | |||||||||
Tempur Sealy International, Inc. | 17,242 | 810,891 | |||||||||
Toll Brothers, Inc. | 10,218 | 739,681 | |||||||||
TopBuild Corp. (b) | 3,013 | 831,317 | |||||||||
TRI Pointe Group, Inc. (b) | 9,954 | 277,617 | |||||||||
4,404,198 | |||||||||||
Interactive Media & Services (0.1%) | |||||||||||
TripAdvisor, Inc. (b) | 8,815 | 240,297 | |||||||||
Leisure Equipment & Products (1.2%) | |||||||||||
Brunswick Corp. | 6,950 | 700,074 | |||||||||
Callaway Golf Co. (b) | 10,405 | 285,513 | |||||||||
Mattel, Inc. (b) | 31,296 | 674,742 | |||||||||
Polaris, Inc. | 5,107 | 561,310 | |||||||||
YETI Holdings, Inc. (b) | 7,841 | 649,470 | |||||||||
2,871,109 | |||||||||||
Media (0.9%) | |||||||||||
Cable One, Inc. | 448 | 790,026 | |||||||||
John Wiley & Sons, Inc. – Class A | 3,836 | 219,688 | |||||||||
New York Times Co. – Class A | 14,885 | 718,945 | |||||||||
TEGNA, Inc. | 19,727 | 366,133 | |||||||||
2,094,792 | |||||||||||
Multiline Retail (0.8%) | |||||||||||
Kohl's Corp. | 13,482 | 665,876 | |||||||||
Macy's, Inc. | 27,739 | 726,207 | |||||||||
Nordstrom, Inc. (b) | 9,904 | 224,028 | |||||||||
Ollie's Bargain Outlet Holdings, Inc. (b) | 5,345 | 273,611 | |||||||||
1,889,722 | |||||||||||
Specialty Retail (3.2%) | |||||||||||
American Eagle Outfitters, Inc. | 13,687 | 346,555 | |||||||||
AutoNation, Inc. (b) | 3,581 | 418,440 | |||||||||
Dick's Sporting Goods, Inc. | 5,777 | 664,297 | |||||||||
Five Below, Inc. (b) | 5,022 | 1,039,002 | |||||||||
Foot Locker, Inc. | 8,078 | 352,443 | |||||||||
GameStop Corp. – Class A (b) | 5,580 | 828,016 | |||||||||
Lithia Motors, Inc. Class A | 2,790 | 828,490 | |||||||||
Murphy USA, Inc. | 2,132 | 424,780 | |||||||||
RH (b) | 1,599 | 856,968 | |||||||||
Urban Outfitters, Inc. (b) | 5,809 | 170,552 | |||||||||
Victoria's Secret & Co. (b) | 6,489 | 360,399 | |||||||||
Williams-Sonoma, Inc. | 6,637 | 1,122,516 | |||||||||
7,412,458 |
See accompanying notes to financial statements.
73
SFT Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Textiles, Apparel & Luxury Goods (1.8%) | |||||||||||
Capri Holdings Ltd. (b) (c) | 13,476 | $ | 874,727 | ||||||||
Carter's, Inc. | 3,786 | 383,219 | |||||||||
Columbia Sportswear Co. | 3,135 | 305,474 | |||||||||
Crocs, Inc. (b) | 5,271 | 675,848 | |||||||||
Deckers Outdoor Corp. (b) | 2,456 | 899,657 | |||||||||
Hanesbrands, Inc. | 31,277 | 522,952 | |||||||||
Skechers U.S.A., Inc. – Class A (b) | 11,997 | 520,670 | |||||||||
4,182,547 | |||||||||||
Consumer Staples (2.2%) | |||||||||||
Beverages (0.2%) | |||||||||||
Boston Beer Co., Inc. – Class A (b) | 885 | 447,014 | |||||||||
Food & Staples Retailing (0.5%) | |||||||||||
Casey's General Stores, Inc. | 3,384 | 667,832 | |||||||||
Grocery Outlet Holding Corp. (b) | 7,728 | 218,548 | |||||||||
Sprouts Farmers Market, Inc. (b) | 10,054 | 298,403 | |||||||||
1,184,783 | |||||||||||
Food Products (1.2%) | |||||||||||
Flowers Foods, Inc. | 17,751 | 487,620 | |||||||||
Hain Celestial Group, Inc. (b) | 8,319 | 354,473 | |||||||||
Ingredion, Inc. | 5,909 | 571,046 | |||||||||
Lancaster Colony Corp. | 1,797 | 297,583 | |||||||||
Post Holdings, Inc. (b) | 5,256 | 592,509 | |||||||||
Sanderson Farms, Inc. | 1,918 | 366,491 | |||||||||
2,669,722 | |||||||||||
Household Products (0.1%) | |||||||||||
Energizer Holdings, Inc. | 5,541 | 222,194 | |||||||||
Personal Products (0.2%) | |||||||||||
Coty, Inc. – Class A (b) | 30,041 | 315,430 | |||||||||
Nu Skin Enterprises, Inc. – Class A | 4,396 | 223,097 | |||||||||
538,527 | |||||||||||
Energy (2.0%) | |||||||||||
Energy Equipment & Services (0.4%) | |||||||||||
ChampionX Corp. (b) | 18,098 | 365,761 | |||||||||
NOV, Inc. | 34,939 | 473,423 | |||||||||
839,184 | |||||||||||
Oil, Gas & Consumable Fuels (1.6%) | |||||||||||
Antero Midstream Corp. | 29,017 | 280,885 | |||||||||
CNX Resources Corp. (b) | 18,916 | 260,095 | |||||||||
DTE Midstream LLC (b) | 8,587 | 412,004 | |||||||||
EQT Corp. (b) | 27,043 | 589,808 | |||||||||
Equitrans Midstream Corp. | 36,362 | 375,983 | |||||||||
HollyFrontier Corp. | 13,306 | 436,171 | |||||||||
Murphy Oil Corp. | 12,919 | 337,315 | |||||||||
Targa Resources Corp. | 20,506 | 1,071,233 | |||||||||
3,763,494 |
Shares | Value(a) | ||||||||||
Financial (12.9%) | |||||||||||
Capital Markets (1.9%) | |||||||||||
Affiliated Managers Group, Inc. | 3,695 | $ | 607,864 | ||||||||
Evercore, Inc. – Class A | 3,456 | 469,498 | |||||||||
Federated Hermes, Inc. – Class B | 8,649 | 325,029 | |||||||||
Interactive Brokers Group, Inc. – Class A | 7,833 | 622,097 | |||||||||
Janus Henderson Group PLC (c) | 15,278 | 640,759 | |||||||||
Jefferies Financial Group, Inc. | 17,595 | 682,686 | |||||||||
SEI Investments Co. | 9,492 | 578,443 | |||||||||
Stifel Financial Corp. | 9,297 | 654,695 | |||||||||
4,581,071 | |||||||||||
Commercial Banks (5.9%) | |||||||||||
Associated Banc-Corp. | 13,441 | 303,632 | |||||||||
Bank of Hawaii Corp. | 3,589 | 300,615 | |||||||||
Bank OZK | 10,826 | 503,734 | |||||||||
Cadence Bank | 17,519 | 521,891 | |||||||||
Cathay General Bancorp | 6,909 | 297,018 | |||||||||
CIT Group, Inc. | 8,791 | 451,330 | |||||||||
Commerce Bancshares, Inc. | 9,908 | 681,076 | |||||||||
Cullen/Frost Bankers, Inc. | 5,080 | 640,436 | |||||||||
East West Bancorp, Inc. | 12,723 | 1,001,046 | |||||||||
First Financial Bankshares, Inc. | 11,390 | 579,068 | |||||||||
First Horizon Corp. | 48,433 | 790,911 | |||||||||
FNB Corp. | 28,555 | 346,372 | |||||||||
Fulton Financial Corp. | 14,447 | 245,599 | |||||||||
Glacier Bancorp, Inc. | 9,625 | 545,738 | |||||||||
Hancock Whitney Corp. | 7,689 | 384,604 | |||||||||
Home BancShares, Inc. | 13,438 | 327,215 | |||||||||
International Bancshares Corp. | 4,674 | 198,131 | |||||||||
PacWest Bancorp | 10,412 | 470,310 | |||||||||
Pinnacle Financial Partners, Inc. | 6,825 | 651,787 | |||||||||
Prosperity Bancshares, Inc. | 8,234 | 595,318 | |||||||||
Sterling Bancorp | 17,181 | 443,098 | |||||||||
Synovus Financial Corp. | 13,032 | 623,842 | |||||||||
Texas Capital Bancshares, Inc. (b) | 4,537 | 273,354 | |||||||||
UMB Financial Corp. | 3,859 | 409,478 | |||||||||
Umpqua Holdings Corp. | 19,402 | 373,294 | |||||||||
United Bankshares, Inc. | 12,187 | 442,144 | |||||||||
Valley National Bancorp | 36,365 | 500,019 | |||||||||
Webster Financial Corp. | 8,024 | 448,060 | |||||||||
Wintrust Financial Corp. | 5,115 | 464,544 | |||||||||
13,813,664 | |||||||||||
Consumer Finance (0.6%) | |||||||||||
FirstCash Holdings, Inc. | 3,624 | 271,111 | |||||||||
Navient Corp. | 14,435 | 306,311 | |||||||||
PROG Holdings, Inc. | 5,080 | 229,159 | |||||||||
SLM Corp. | 26,258 | 516,495 | |||||||||
1,323,076 | |||||||||||
Diversified Financial Services (0.3%) | |||||||||||
Voya Financial, Inc. | 9,940 | 659,122 |
See accompanying notes to financial statements.
74
SFT Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Insurance (3.5%) | |||||||||||
Alleghany Corp. (b) | 1,280 | $ | 854,515 | ||||||||
American Financial Group, Inc. | 5,928 | 814,033 | |||||||||
Brighthouse Financial, Inc. (b) | 7,149 | 370,318 | |||||||||
CNO Financial Group, Inc. | 11,044 | 263,289 | |||||||||
First American Financial Corp. | 9,857 | 771,113 | |||||||||
Hanover Insurance Group, Inc. | 3,199 | 419,261 | |||||||||
Kemper Corp. | 5,263 | 309,412 | |||||||||
Kinsale Capital Group, Inc. | 1,920 | 456,749 | |||||||||
Mercury General Corp. | 2,380 | 126,283 | |||||||||
Old Republic International Corp. | 25,500 | 626,790 | |||||||||
Primerica, Inc. | 3,524 | 540,123 | |||||||||
Reinsurance Group of America, Inc. | 6,098 | 667,670 | |||||||||
RenaissanceRe Holdings Ltd. (c) | 4,122 | 697,978 | |||||||||
RLI Corp. | 3,541 | 396,946 | |||||||||
Selective Insurance Group, Inc. | 5,372 | 440,182 | |||||||||
Unum Group | 18,230 | 447,911 | |||||||||
8,202,573 | |||||||||||
Thrifts & Mortgage Finance (0.7%) | |||||||||||
Essent Group Ltd. (c) | 9,891 | 450,337 | |||||||||
MGIC Investment Corp. | 29,161 | 420,502 | |||||||||
New York Community Bancorp, Inc. | 41,605 | 507,997 | |||||||||
Washington Federal, Inc. | 5,834 | 194,739 | |||||||||
1,573,575 | |||||||||||
Health Care (9.4%) | |||||||||||
Biotechnology (1.4%) | |||||||||||
Arrowhead Pharmaceuticals, Inc. (b) | 9,350 | 619,905 | |||||||||
Exelixis, Inc. (b) | 28,254 | 516,483 | |||||||||
Halozyme Therapeutics, Inc. (b) | 12,609 | 507,008 | |||||||||
Neurocrine Biosciences, Inc. (b) | 8,488 | 722,923 | |||||||||
United Therapeutics Corp. (b) | 4,012 | 866,913 | |||||||||
3,233,232 | |||||||||||
Health Care Equipment & Supplies (3.1%) | |||||||||||
Envista Holdings Corp. (b) | 14,362 | 647,152 | |||||||||
Globus Medical, Inc. – Class A (b) | 7,015 | 506,483 | |||||||||
Haemonetics Corp. (b) | 4,570 | 242,393 | |||||||||
ICU Medical, Inc. (b) | 1,791 | 425,076 | |||||||||
Integra LifeSciences Holdings Corp. (b) | 6,510 | 436,105 | |||||||||
LivaNova PLC (b) (c) | 4,740 | 414,417 | |||||||||
Masimo Corp. (b) | 4,543 | 1,330,100 | |||||||||
Neogen Corp. (b) | 9,538 | 433,121 | |||||||||
NuVasive, Inc. (b) | 4,561 | 239,361 | |||||||||
Penumbra, Inc. (b) | 3,218 | 924,596 | |||||||||
Quidel Corp. (b) | 3,397 | 458,561 |
Shares | Value(a) | ||||||||||
STAAR Surgical Co. (b) | 4,250 | $ | 388,025 | ||||||||
Tandem Diabetes Care, Inc. (b) | 5,752 | 865,791 | |||||||||
7,311,181 | |||||||||||
Health Care Providers & Services (2.9%) | |||||||||||
Acadia Healthcare Co., Inc. (b) | 8,059 | 489,181 | |||||||||
Amedisys, Inc. (b) | 2,894 | 468,481 | |||||||||
Chemed Corp. | 1,411 | 746,475 | |||||||||
Encompass Health Corp. | 8,923 | 582,315 | |||||||||
HealthEquity, Inc. (b) | 7,478 | 330,827 | |||||||||
LHC Group, Inc. (b) | 2,795 | 383,558 | |||||||||
Molina Healthcare, Inc. (b) | 5,238 | 1,666,103 | |||||||||
Option Care Health, Inc. (b) | 12,404 | 352,770 | |||||||||
Patterson Cos., Inc. | 7,732 | 226,934 | |||||||||
Progyny, Inc. (b) | 6,173 | 310,810 | |||||||||
R1 RCM, Inc. (b) | 11,904 | 303,433 | |||||||||
Tenet Healthcare Corp. (b) | 9,600 | 784,224 | |||||||||
6,645,111 | |||||||||||
Life Sciences Tools & Services (1.5%) | |||||||||||
Bruker Corp. | 9,080 | 761,903 | |||||||||
Medpace Holdings, Inc. (b) | 2,646 | 575,876 | |||||||||
Repligen Corp. (b) | 4,585 | 1,214,291 | |||||||||
Syneos Health, Inc. (b) | 9,306 | 955,540 | |||||||||
3,507,610 | |||||||||||
Pharmaceuticals (0.5%) | |||||||||||
Jazz Pharmaceuticals PLC (b) (c) | 5,523 | 703,630 | |||||||||
Perrigo Co. PLC (c) | 11,891 | 462,560 | |||||||||
1,166,190 | |||||||||||
Industrials (18.0%) | |||||||||||
Aerospace & Defense (0.9%) | |||||||||||
Axon Enterprise, Inc. (b) | 5,924 | 930,068 | |||||||||
Curtiss-Wright Corp. | 3,515 | 487,425 | |||||||||
Hexcel Corp. (b) | 7,419 | 384,304 | |||||||||
Mercury Systems, Inc. (b) | 5,008 | 275,741 | |||||||||
2,077,538 | |||||||||||
Air Freight & Logistics (0.3%) | |||||||||||
GXO Logistics, Inc. (b) | 8,840 | 802,937 | |||||||||
Airlines (0.2%) | |||||||||||
JetBlue Airways Corp. (b) | 28,421 | 404,715 | |||||||||
Building Products (2.7%) | |||||||||||
Builders FirstSource, Inc. (b) | 17,152 | 1,470,098 | |||||||||
Carlisle Cos., Inc. | 4,675 | 1,159,961 | |||||||||
Lennox International, Inc. | 3,060 | 992,542 | |||||||||
Owens Corning | 9,000 | 814,500 | |||||||||
Simpson Manufacturing Co., Inc. | 3,891 | 541,121 | |||||||||
Trex Co., Inc. (b) | 10,344 | 1,396,750 | |||||||||
6,374,972 | |||||||||||
Commercial Services & Supplies (1.5%) | |||||||||||
Brink's Co. | 4,365 | 286,213 | |||||||||
Clean Harbors, Inc. (b) | 4,488 | 447,768 | |||||||||
IAA, Inc. (b) | 11,988 | 606,833 | |||||||||
MillerKnoll, Inc. | 6,786 | 265,943 |
See accompanying notes to financial statements.
75
SFT Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
MSA Safety, Inc. | 3,268 | $ | 493,337 | ||||||||
Stericycle, Inc. (b) | 8,137 | 485,291 | |||||||||
Tetra Tech, Inc. | 4,849 | 823,360 | |||||||||
3,408,745 | |||||||||||
Construction & Engineering (1.3%) | |||||||||||
AECOM (b) | 12,919 | 999,285 | |||||||||
Dycom Industries, Inc. (b) | 2,667 | 250,058 | |||||||||
EMCOR Group, Inc. | 4,820 | 614,020 | |||||||||
Fluor Corp. (b) | 12,582 | 311,656 | |||||||||
MasTec, Inc. (b) | 5,090 | 469,705 | |||||||||
Valmont Industries, Inc. | 1,944 | 486,972 | |||||||||
3,131,696 | |||||||||||
Electrical Equipment (1.9%) | |||||||||||
Acuity Brands, Inc. | 3,182 | 673,693 | |||||||||
EnerSys | 3,707 | 293,075 | |||||||||
Hubbell, Inc. | 4,877 | 1,015,733 | |||||||||
nVent Electric PLC (c) | 14,976 | 569,088 | |||||||||
Regal Rexnord Corp. | 6,084 | 1,035,375 | |||||||||
Sunrun, Inc. (b) | 18,468 | 633,452 | |||||||||
Vicor Corp. (b) | 1,921 | 243,929 | |||||||||
4,464,345 | |||||||||||
Machinery (4.8%) | |||||||||||
AGCO Corp. | 5,544 | 643,215 | |||||||||
Colfax Corp. (b) | 12,061 | 554,444 | |||||||||
Crane Co. | 4,462 | 453,919 | |||||||||
Donaldson Co., Inc. | 11,070 | 656,008 | |||||||||
Flowserve Corp. | 11,582 | 354,409 | |||||||||
Graco, Inc. | 15,222 | 1,227,198 | |||||||||
ITT, Inc. | 7,621 | 778,790 | |||||||||
Kennametal, Inc. | 7,398 | 265,662 | |||||||||
Lincoln Electric Holdings, Inc. | 5,326 | 742,817 | |||||||||
Middleby Corp. (b) | 4,989 | 981,636 | |||||||||
Nordson Corp. | 4,848 | 1,237,549 | |||||||||
Oshkosh Corp. | 6,155 | 693,730 | |||||||||
Terex Corp. | 6,159 | 270,688 | |||||||||
Timken Co. | 6,184 | 428,490 | |||||||||
Toro Co. | 9,501 | 949,245 | |||||||||
Trinity Industries, Inc. | 7,325 | 221,215 | |||||||||
Woodward, Inc. | 5,604 | 613,414 | |||||||||
11,072,429 | |||||||||||
Marine (0.1%) | |||||||||||
Kirby Corp. (b) | 5,390 | 320,274 | |||||||||
Professional Services (1.5%) | |||||||||||
ASGN, Inc. (b) | 4,644 | 573,070 | |||||||||
CACI International, Inc. – Class A (b) | 2,165 | 582,840 | |||||||||
FTI Consulting, Inc. (b) | 3,131 | 480,358 | |||||||||
Insperity, Inc. | 3,181 | 375,708 | |||||||||
KBR, Inc. | 12,525 | 596,440 | |||||||||
ManpowerGroup, Inc. | 4,863 | 473,316 | |||||||||
Science Applications International Corp. | 5,097 | 426,058 | |||||||||
3,507,790 |
Shares | Value(a) | ||||||||||
Road & Rail (1.9%) | |||||||||||
Avis Budget Group, Inc. (b) | 3,590 | $ | 744,458 | ||||||||
Knight-Swift Transportation Holdings, Inc. | 14,785 | 900,998 | |||||||||
Landstar System, Inc. | 3,427 | 613,502 | |||||||||
Ryder System, Inc. | 4,808 | 396,323 | |||||||||
Saia, Inc. (b) | 2,362 | 796,065 | |||||||||
Werner Enterprises, Inc. | 5,444 | 259,461 | |||||||||
XPO Logistics, Inc. (b) | 8,840 | 684,481 | |||||||||
4,395,288 | |||||||||||
Trading Companies & Distributors (0.9%) | |||||||||||
GATX Corp. | 3,199 | 333,304 | |||||||||
MSC Industrial Direct Co., Inc. – Class A | 4,214 | 354,229 | |||||||||
Univar Solutions, Inc. (b) | 15,227 | 431,685 | |||||||||
Watsco, Inc. | 2,957 | 925,186 | |||||||||
2,044,404 | |||||||||||
Information Technology (13.9%) | |||||||||||
Communications Equipment (0.9%) | |||||||||||
Ciena Corp. (b) | 13,879 | 1,068,267 | |||||||||
Lumentum Holdings, Inc. (b) | 6,476 | 684,966 | |||||||||
Viasat, Inc. (b) | 6,576 | 292,895 | |||||||||
2,046,128 | |||||||||||
Computers & Peripherals (0.3%) | |||||||||||
NCR Corp. (b) | 11,784 | 473,717 | |||||||||
Xerox Holdings Corp. | 12,225 | 276,774 | |||||||||
750,491 | |||||||||||
Electronic Equipment, Instruments & Components (3.1%) | |||||||||||
Arrow Electronics, Inc. (b) | 6,236 | 837,308 | |||||||||
Avnet, Inc. | 8,823 | 363,772 | |||||||||
Belden, Inc. | 4,023 | 264,432 | |||||||||
Cognex Corp. | 15,847 | 1,232,263 | |||||||||
Coherent, Inc. (b) | 2,255 | 601,047 | |||||||||
II-VI, Inc. (b) | 9,506 | 649,545 | |||||||||
Jabil, Inc. | 12,838 | 903,153 | |||||||||
Littelfuse, Inc. | 2,250 | 708,030 | |||||||||
National Instruments Corp. | 11,812 | 515,830 | |||||||||
TD SYNNEX Corp. | 3,701 | 423,246 | |||||||||
Vishay Intertechnology, Inc. | 11,801 | 258,088 | |||||||||
Vontier Corp. | 15,049 | 462,456 | |||||||||
7,219,170 | |||||||||||
Interactive Media & Services (0.1%) | |||||||||||
Yelp, Inc. (b) | 6,101 | 221,100 | |||||||||
IT Services (1.8%) | |||||||||||
Alliance Data Systems Corp. | 4,462 | 297,035 | |||||||||
Concentrix Corp. | 3,901 | 696,797 | |||||||||
Genpact Ltd. (c) | 15,489 | 822,156 | |||||||||
Kyndryl Holdings, Inc. (b) | 15,970 | 289,057 | |||||||||
LiveRamp Holdings, Inc. (b) | 6,091 | 292,064 | |||||||||
Maximus, Inc. | 5,512 | 439,141 | |||||||||
Sabre Corp. (b) | 28,936 | 248,560 | |||||||||
The Western Union Co. | 36,006 | 642,347 | |||||||||
WEX, Inc. (b) | 3,982 | 559,033 | |||||||||
4,286,190 |
See accompanying notes to financial statements.
76
SFT Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Semiconductors & Semiconductor Equipment (4.1%) | |||||||||||
Amkor Technology, Inc. | 8,884 | $ | 220,234 | ||||||||
Azenta, Inc. | 6,663 | 687,022 | |||||||||
Cirrus Logic, Inc. (b) | 5,065 | 466,081 | |||||||||
CMC Materials, Inc. | 2,588 | 496,094 | |||||||||
First Solar, Inc. (b) | 8,867 | 772,848 | |||||||||
Lattice Semiconductor Corp. (b) | 12,231 | 942,521 | |||||||||
MKS Instruments, Inc. | 4,973 | 866,147 | |||||||||
Power Integrations, Inc. | 5,404 | 501,978 | |||||||||
Semtech Corp. (b) | 5,722 | 508,858 | |||||||||
Silicon Laboratories, Inc. (b) | 3,633 | 749,924 | |||||||||
SiTime Corp. (b) | 1,410 | 412,481 | |||||||||
SunPower Corp. (b) | 7,350 | 153,395 | |||||||||
Synaptics, Inc. (b) | 3,518 | 1,018,496 | |||||||||
Universal Display Corp. | 3,943 | 650,713 | |||||||||
Wolfspeed, Inc. (b) | 10,355 | 1,157,378 | |||||||||
9,604,170 | |||||||||||
Software (3.6%) | |||||||||||
ACI Worldwide, Inc. (b) | 10,436 | 362,129 | |||||||||
Aspen Technology, Inc. (b) | 5,990 | 911,678 | |||||||||
Blackbaud, Inc. (b) | 3,670 | 289,857 | |||||||||
CDK Global, Inc. | 10,598 | 442,360 | |||||||||
Cerence, Inc. (b) | 3,390 | 259,810 | |||||||||
CommVault Systems, Inc. (b) | 4,013 | 276,576 | |||||||||
Digital Turbine, Inc. (b) | 7,842 | 478,284 | |||||||||
Envestnet, Inc. (b) | 4,889 | 387,893 | |||||||||
Fair Isaac Corp. (b) | 2,445 | 1,060,323 | |||||||||
Manhattan Associates, Inc. (b) | 5,686 | 884,116 | |||||||||
Mimecast Ltd. (b) (c) | 5,482 | 436,203 | |||||||||
Paylocity Holding Corp. (b) | 3,555 | 839,549 | |||||||||
Qualys, Inc. (b) | 2,977 | 408,504 | |||||||||
Sailpoint Technologies Holdings, Inc. (b) | 8,335 | 402,914 | |||||||||
Teradata Corp. (b) | 9,684 | 411,279 | |||||||||
Ziff Davis, Inc. (b) | 4,323 | 479,248 | |||||||||
8,330,723 | |||||||||||
Leisure and Consumer Staples (1.1%) | |||||||||||
Food & Staples Retailing (0.6%) | |||||||||||
BJ's Wholesale Club Holdings, Inc. (b) | 12,198 | 816,900 | |||||||||
Performance Food Group Co. (b) | 13,782 | 632,456 | |||||||||
1,449,356 | |||||||||||
Food Products (0.5%) | |||||||||||
Darling Ingredients, Inc. (b) | 14,434 | 1,000,132 | |||||||||
Pilgrim's Pride Corp. (b) | 4,317 | 121,739 | |||||||||
1,121,871 | |||||||||||
Materials (6.2%) | |||||||||||
Chemicals (2.5%) | |||||||||||
Ashland Global Holdings, Inc. | 5,021 | 540,561 | |||||||||
Avient Corp. | 8,187 | 458,063 | |||||||||
Cabot Corp. | 5,065 | 284,653 | |||||||||
Chemours Co. | 14,595 | 489,808 | |||||||||
Ingevity Corp. (b) | 3,444 | 246,935 |
Shares | Value(a) | ||||||||||
Minerals Technologies, Inc. | 2,913 | $ | 213,086 | ||||||||
NewMarket Corp. | 628 | 215,228 | |||||||||
Olin Corp. | 12,847 | 738,959 | |||||||||
RPM International, Inc. | 11,638 | 1,175,438 | |||||||||
Scotts Miracle-Gro Co. | 3,637 | 585,557 | |||||||||
Sensient Technologies Corp. | 3,780 | 378,227 | |||||||||
Valvoline, Inc. | 16,111 | 600,779 | |||||||||
5,927,294 | |||||||||||
Construction Materials (0.3%) | |||||||||||
Eagle Materials, Inc. | 3,643 | 606,414 | |||||||||
Containers & Packaging (0.7%) | |||||||||||
AptarGroup, Inc. | 5,915 | 724,469 | |||||||||
Greif, Inc. – Class A | 2,324 | 140,300 | |||||||||
Silgan Holdings, Inc. | 7,425 | 318,087 | |||||||||
Sonoco Products Co. | 8,718 | 504,685 | |||||||||
1,687,541 | |||||||||||
Metals & Mining (2.4%) | |||||||||||
Alcoa Corp. | 16,758 | 998,442 | |||||||||
Cleveland-Cliffs, Inc. (b) | 40,683 | 885,669 | |||||||||
Commercial Metals Co. | 10,714 | 388,811 | |||||||||
Compass Minerals International, Inc. | 2,996 | 153,036 | |||||||||
Reliance Steel & Aluminum Co. | 5,593 | 907,296 | |||||||||
Royal Gold, Inc. | 5,883 | 618,950 | |||||||||
Steel Dynamics, Inc. | 16,885 | 1,048,052 | |||||||||
United States Steel Corp. | 24,125 | 574,416 | |||||||||
Worthington Industries, Inc. | 2,869 | 156,820 | |||||||||
5,731,492 | |||||||||||
Paper & Forest Products (0.3%) | |||||||||||
Louisiana-Pacific Corp. | 7,881 | 617,476 | |||||||||
Real Estate (9.8%) | |||||||||||
Diversified REITs (0.5%) | |||||||||||
PS Business Parks, Inc. | 1,777 | 327,270 | |||||||||
STORE Capital Corp. | 21,929 | 754,358 | |||||||||
1,081,628 | |||||||||||
Health Care REITs (0.9%) | |||||||||||
Healthcare Realty Trust, Inc. | 13,214 | 418,091 | |||||||||
Medical Properties Trust, Inc. | 53,323 | 1,260,022 | |||||||||
Physicians Realty Trust | 19,730 | 371,516 | |||||||||
2,049,629 | |||||||||||
Hotels & Resort REITs (0.2%) | |||||||||||
Park Hotels & Resorts, Inc. (b) | 21,109 | 398,538 | |||||||||
Industrial REITs (1.2%) | |||||||||||
EastGroup Properties, Inc. | 3,678 | 838,032 | |||||||||
First Industrial Realty Trust, Inc. | 11,680 | 773,216 | |||||||||
Rexford Industrial Realty, Inc. | 13,568 | 1,100,501 | |||||||||
2,711,749 |
See accompanying notes to financial statements.
77
SFT Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Office REITs (1.5%) | |||||||||||
Corporate Office Properties Trust | 9,974 | $ | 278,973 | ||||||||
Cousins Properties, Inc. | 13,234 | 533,065 | |||||||||
Douglas Emmett, Inc. | 15,636 | 523,806 | |||||||||
Highwoods Properties, Inc. | 9,345 | 416,694 | |||||||||
Hudson Pacific Properties, Inc. | 13,574 | 335,414 | |||||||||
JBG SMITH Properties | 10,224 | 293,531 | |||||||||
Kilroy Realty Corp. | 9,399 | 624,657 | |||||||||
SL Green Realty Corp. | 5,922 | 424,607 | |||||||||
3,430,747 | |||||||||||
Real Estate Management & Development (0.5%) | |||||||||||
Jones Lang LaSalle, Inc. (b) | 4,547 | 1,224,689 | |||||||||
Residential REITs (1.3%) | |||||||||||
American Campus Communities, Inc. | 12,375 | 708,964 | |||||||||
Apartment Income REIT Corp. | 13,976 | 764,067 | |||||||||
Camden Property Trust | 9,154 | 1,635,637 | |||||||||
3,108,668 | |||||||||||
Retail REITs (1.2%) | |||||||||||
Brixmor Property Group, Inc. | 26,533 | 674,204 | |||||||||
Kite Realty Group Trust | 19,616 | 427,237 | |||||||||
Macerich Co. | 19,003 | 328,372 | |||||||||
National Retail Properties, Inc. | 15,648 | 752,199 | |||||||||
Spirit Realty Capital, Inc. | 11,044 | 532,210 | |||||||||
Urban Edge Properties | 9,774 | 185,706 | |||||||||
2,899,928 | |||||||||||
Specialized REITs (2.5%) | |||||||||||
CyrusOne, Inc. | 11,367 | 1,019,847 | |||||||||
EPR Properties | 6,608 | 313,814 | |||||||||
Lamar Advertising Co. – Class A | 7,781 | 943,835 | |||||||||
Life Storage, Inc. | 7,346 | 1,125,260 | |||||||||
National Storage Affiliates Trust | 7,314 | 506,129 | |||||||||
Omega Healthcare Investors, Inc. | 21,322 | 630,918 | |||||||||
Pebblebrook Hotel Trust | 11,682 | 261,326 | |||||||||
PotlatchDeltic Corp. | 6,012 | 362,043 | |||||||||
Rayonier, Inc. | 12,821 | 517,456 | |||||||||
Sabra Health Care REIT, Inc. | 20,481 | 277,313 | |||||||||
5,957,941 | |||||||||||
Utilities (3.2%) | |||||||||||
Electric Utilities (1.0%) | |||||||||||
ALLETE, Inc. | 4,626 | 306,935 | |||||||||
Hawaiian Electric Industries, Inc. | 9,703 | 402,675 | |||||||||
IDACORP, Inc. | 4,530 | 513,294 | |||||||||
OGE Energy Corp. | 17,852 | 685,160 | |||||||||
PNM Resources, Inc. | 7,597 | 346,499 | |||||||||
2,254,563 |
Shares/ Principal | Value(a) | ||||||||||
Gas Utilities (1.2%) | |||||||||||
National Fuel Gas Co. | 8,177 | $ | 522,837 | ||||||||
New Jersey Resources Corp. | 8,548 | 350,981 | |||||||||
ONE Gas, Inc. | 4,793 | 371,889 | |||||||||
Southwest Gas Holdings, Inc. | 5,408 | 378,831 | |||||||||
Spire, Inc. | 4,593 | 299,556 | |||||||||
UGI Corp. | 18,652 | 856,313 | |||||||||
2,780,407 | |||||||||||
Multi-Utilities (0.5%) | |||||||||||
Black Hills Corp. | 5,648 | 398,579 | |||||||||
MDU Resources Group, Inc. | 18,154 | 559,869 | |||||||||
NorthWestern Corp. | 4,716 | 269,567 | |||||||||
1,228,015 | |||||||||||
Water Utilities (0.5%) | |||||||||||
Essential Utilities, Inc. | 20,599 | 1,105,960 | |||||||||
Total common stocks (cost: $138,843,897) | 220,748,551 | ||||||||||
Long-Term Debt Securities (0.4%) | |||||||||||
Government Obligation (0.4%) | |||||||||||
U.S. Treasury (0.4%) | |||||||||||
U.S. Treasury Note, 1.750%, 05/15/22 (d) | $ | 1,000,000 | 1,005,781 | ||||||||
Total long-term debt securities (cost: $1,006,216) | 1,005,781 | ||||||||||
Short-Term Securities (4.9%) | |||||||||||
Investment Companies (4.9%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 11,401,598 | 11,401,598 | |||||||||
Total short-term securities (cost: $11,401,598) | 11,401,598 | ||||||||||
Total investments in securities (cost: $151,251,711) (e) | 233,155,930 | ||||||||||
Liabilities in excess of cash and other assets (0.0%) | (1,256 | ) | |||||||||
Total net assets (100.0%) | $ | 233,154,674 |
See accompanying notes to financial statements.
78
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 3.0% of net assets in foreign securities at December 31, 2021.
(d) Fully or partially pledged as initial margin deposits on open futures contracts.
(e) At December 31, 2021, the cost of investments for federal income tax purposes was $151,705,345. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 87,068,120 | |||||
Gross unrealized depreciation | (5,415,065 | ) | |||||
Net unrealized appreciation | $ | 81,653,055 |
Holdings of Open Futures Contracts
On December 31, 2021, securities with an aggregate market value of $1,005,781 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 2022 | 43 | Long | $ | 11,999,640 | $ | 12,202,110 | $ | 202,470 |
See accompanying notes to financial statements.
79
SFT Index 500 Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.8%) | |||||||||||
Communication Services (1.3%) | |||||||||||
Diversified Telecommunication Services (0.9%) | |||||||||||
AT&T, Inc. | 212,661 | $ | 5,231,461 | ||||||||
Lumen Technologies, Inc. | 27,442 | 344,397 | |||||||||
Verizon Communications, Inc. | 123,295 | 6,406,408 | |||||||||
11,982,266 | |||||||||||
Interactive Media & Services (0.1%) | |||||||||||
Match Group, Inc. (b) | 8,430 | 1,114,867 | |||||||||
Media (0.1%) | |||||||||||
Fox Corp. – Class A | 9,505 | 350,734 | |||||||||
Fox Corp. – Class B | 4,351 | 149,109 | |||||||||
ViacomCBS, Inc. – Class B | 17,993 | 543,029 | |||||||||
1,042,872 | |||||||||||
Wireless Telecommunication Services (0.2%) | |||||||||||
T-Mobile US, Inc. (b) | 17,421 | 2,020,488 | |||||||||
Consumer Discretionary (14.4%) | |||||||||||
Auto Components (0.1%) | |||||||||||
Aptiv PLC (b) (c) | 8,034 | 1,325,209 | |||||||||
BorgWarner, Inc. | 7,088 | 319,456 | |||||||||
1,644,665 | |||||||||||
Automobiles (2.5%) | |||||||||||
Ford Motor Co. | 116,899 | 2,427,992 | |||||||||
General Motors Co. (b) | 43,236 | 2,534,926 | |||||||||
Tesla, Inc. (b) | 24,225 | 25,600,496 | |||||||||
30,563,414 | |||||||||||
Distributors (0.1%) | |||||||||||
Genuine Parts Co. | 4,210 | 590,242 | |||||||||
LKQ Corp. | 7,915 | 475,137 | |||||||||
Pool Corp. | 1,170 | 662,220 | |||||||||
1,727,599 | |||||||||||
Entertainment (0.7%) | |||||||||||
Walt Disney Co. (b) | 54,114 | 8,381,718 | |||||||||
Hotels & Resort REITs (0.1%) | |||||||||||
Hilton Worldwide Holdings, Inc. (b) | 8,265 | 1,289,257 | |||||||||
Hotels, Restaurants & Leisure (1.7%) | |||||||||||
Booking Holdings, Inc. (b) | 1,224 | 2,936,658 | |||||||||
Caesars Entertainment, Inc. (b) | 6,306 | 589,800 | |||||||||
Carnival Corp. (b) (c) | 23,957 | 482,015 | |||||||||
Chipotle Mexican Grill, Inc. (b) | 849 | 1,484,264 | |||||||||
Darden Restaurants, Inc. | 3,838 | 578,156 | |||||||||
Domino's Pizza, Inc. | 1,070 | 603,833 | |||||||||
Las Vegas Sands Corp. (b) | 10,211 | 384,342 | |||||||||
Marriott International, Inc. – Class A (b) | 8,111 | 1,340,262 | |||||||||
McDonald's Corp. | 22,281 | 5,972,868 | |||||||||
MGM Resorts International | 11,591 | 520,204 | |||||||||
Norwegian Cruise Line Holdings Ltd. (b) (c) | 10,990 | 227,933 |
Shares | Value(a) | ||||||||||
Penn National Gaming, Inc. (b) | 4,890 | $ | 253,546 | ||||||||
Royal Caribbean Cruises Ltd. (b) (c) | 6,627 | 509,616 | |||||||||
Starbucks Corp. | 35,140 | 4,110,326 | |||||||||
Wynn Resorts Ltd. (b) | 3,125 | 265,750 | |||||||||
Yum! Brands, Inc. | 8,674 | 1,204,472 | |||||||||
21,464,045 | |||||||||||
Household Durables (0.4%) | |||||||||||
DR Horton, Inc. | 9,681 | 1,049,905 | |||||||||
Garmin Ltd. (c) | 4,456 | 606,774 | |||||||||
Lennar Corp. – Class A | 8,070 | 937,411 | |||||||||
Mohawk Industries, Inc. (b) | 1,613 | 293,856 | |||||||||
Newell Brands, Inc. | 11,223 | 245,110 | |||||||||
NVR, Inc. (b) | 109 | 644,067 | |||||||||
PulteGroup, Inc. | 7,539 | 430,929 | |||||||||
Whirlpool Corp. | 1,835 | 430,601 | |||||||||
4,638,653 | |||||||||||
Internet & Catalog Retail (4.3%) | |||||||||||
Amazon.com, Inc. (b) | 12,995 | 43,329,748 | |||||||||
Etsy, Inc. (b) | 3,721 | 814,676 | |||||||||
Expedia Group, Inc. (b) | 4,293 | 775,831 | |||||||||
Netflix, Inc. (b) | 13,246 | 7,979,920 | |||||||||
52,900,175 | |||||||||||
Leisure Equipment & Products (0.0%) | |||||||||||
Hasbro, Inc. | 3,835 | 390,326 | |||||||||
Media (0.9%) | |||||||||||
Charter Communications, Inc. – Class A (b) | 3,684 | 2,401,857 | |||||||||
Comcast Corp. – Class A | 135,782 | 6,833,908 | |||||||||
Discovery, Inc. – Class A (b) | 5,018 | 118,124 | |||||||||
Discovery, Inc. – Class C (b) | 9,018 | 206,512 | |||||||||
DISH Network Corp. – Class A (b) | 7,345 | 238,272 | |||||||||
Interpublic Group of Cos., Inc. | 11,691 | 437,828 | |||||||||
Live Nation Entertainment, Inc. (b) | 4,022 | 481,393 | |||||||||
News Corp. – Class A | 11,619 | 259,220 | |||||||||
News Corp. – Class B | 3,593 | 80,843 | |||||||||
Omnicom Group, Inc. | 6,256 | 458,377 | |||||||||
11,516,334 | |||||||||||
Multiline Retail (0.5%) | |||||||||||
Dollar General Corp. | 6,969 | 1,643,499 | |||||||||
Dollar Tree, Inc. (b) | 6,697 | 941,063 | |||||||||
Target Corp. | 14,534 | 3,363,749 | |||||||||
5,948,311 | |||||||||||
Specialty Retail (2.4%) | |||||||||||
Advance Auto Parts, Inc. | 1,898 | 455,292 | |||||||||
AutoZone, Inc. (b) | 626 | 1,312,340 | |||||||||
Bath & Body Works, Inc. | 7,845 | 547,503 | |||||||||
Best Buy Co., Inc. | 6,565 | 667,004 | |||||||||
CarMax, Inc. (b) | 4,756 | 619,374 | |||||||||
Gap, Inc. | 6,360 | 112,254 | |||||||||
Home Depot, Inc. | 31,429 | 13,043,349 |
See accompanying notes to financial statements.
80
SFT Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Lowe's Cos., Inc. | 20,621 | $ | 5,330,116 | ||||||||
O'Reilly Automotive, Inc. (b) | 2,041 | 1,441,416 | |||||||||
Ross Stores, Inc. | 10,555 | 1,206,225 | |||||||||
TJX Cos., Inc. | 35,734 | 2,712,925 | |||||||||
Tractor Supply Co. | 3,409 | 813,387 | |||||||||
Ulta Beauty, Inc. (b) | 1,578 | 650,673 | |||||||||
28,911,858 | |||||||||||
Textiles, Apparel & Luxury Goods (0.7%) | |||||||||||
NIKE, Inc. – Class B | 37,961 | 6,326,960 | |||||||||
PVH Corp. | 2,092 | 223,112 | |||||||||
Ralph Lauren Corp. | 1,433 | 170,326 | |||||||||
Tapestry, Inc. | 8,172 | 331,783 | |||||||||
Under Armour, Inc. – Class A (b) | 5,524 | 117,054 | |||||||||
Under Armour, Inc. – Class C (b) | 6,404 | 115,528 | |||||||||
VF Corp. | 9,708 | 710,820 | |||||||||
7,995,583 | |||||||||||
Consumer Staples (6.1%) | |||||||||||
Beverages (1.4%) | |||||||||||
Brown-Forman Corp. – Class B | 5,418 | 394,755 | |||||||||
Coca-Cola Co. | 115,770 | 6,854,742 | |||||||||
Constellation Brands, Inc. – Class A | 4,892 | 1,227,745 | |||||||||
Molson Coors Beverage Co. – Class B | 5,514 | 255,574 | |||||||||
Monster Beverage Corp. (b) | 11,188 | 1,074,496 | |||||||||
PepsiCo, Inc. | 41,175 | 7,152,509 | |||||||||
16,959,821 | |||||||||||
Food & Staples Retailing (1.7%) | |||||||||||
Costco Wholesale Corp. | 13,131 | 7,454,468 | |||||||||
CVS Health Corp. | 39,311 | 4,055,323 | |||||||||
Kroger Co. | 20,096 | 909,545 | |||||||||
Sysco Corp. | 15,194 | 1,193,489 | |||||||||
Walgreens Boots Alliance, Inc. | 21,324 | 1,112,260 | |||||||||
Walmart, Inc. | 42,346 | 6,127,043 | |||||||||
20,852,128 | |||||||||||
Food Products (0.8%) | |||||||||||
Archer-Daniels-Midland Co. | 16,614 | 1,122,940 | |||||||||
Campbell Soup Co. | 5,989 | 260,282 | |||||||||
Conagra Brands, Inc. | 14,266 | 487,184 | |||||||||
General Mills, Inc. | 18,007 | 1,213,312 | |||||||||
Hershey Co. | 4,265 | 825,150 | |||||||||
Hormel Foods Corp. | 8,364 | 408,247 | |||||||||
Kellogg Co. | 7,547 | 486,178 | |||||||||
Kraft Heinz Co. | 21,086 | 756,987 | |||||||||
Lamb Weston Holdings, Inc. | 4,297 | 272,344 | |||||||||
McCormick & Co., Inc. | 7,391 | 714,044 | |||||||||
Mondelez International, Inc. – Class A | 41,517 | 2,752,992 | |||||||||
The JM Smucker Co. | 3,141 | 426,611 | |||||||||
Tyson Foods, Inc. – Class A | 8,687 | 757,159 | |||||||||
10,483,430 |
Shares | Value(a) | ||||||||||
Household Products (1.4%) | |||||||||||
Church & Dwight Co., Inc. | 7,173 | $ | 735,233 | ||||||||
Clorox Co. | 3,620 | 631,183 | |||||||||
Colgate-Palmolive Co. | 25,053 | 2,138,023 | |||||||||
Kimberly-Clark Corp. | 10,002 | 1,429,486 | |||||||||
Procter & Gamble Co. | 71,999 | 11,777,596 | |||||||||
16,711,521 | |||||||||||
Personal Care (0.2%) | |||||||||||
Estee Lauder Cos., Inc. – Class A | 6,931 | 2,565,856 | |||||||||
Tobacco (0.6%) | |||||||||||
Altria Group, Inc. | 54,672 | 2,590,906 | |||||||||
Philip Morris International, Inc. | 46,291 | 4,397,645 | |||||||||
6,988,551 | |||||||||||
Energy (2.5%) | |||||||||||
Energy Equipment & Services (0.2%) | |||||||||||
Baker Hughes Co. | 26,029 | 626,258 | |||||||||
Halliburton Co. | 26,656 | 609,623 | |||||||||
Schlumberger NV (c) | 41,770 | 1,251,011 | |||||||||
2,486,892 | |||||||||||
Oil, Gas & Consumable Fuels (2.3%) | |||||||||||
APA Corp. | 10,818 | 290,896 | |||||||||
Chevron Corp. | 57,340 | 6,728,849 | |||||||||
ConocoPhillips | 39,278 | 2,835,086 | |||||||||
Coterra Energy, Inc. | 24,130 | 458,470 | |||||||||
Devon Energy Corp. | 18,700 | 823,735 | |||||||||
Diamondback Energy, Inc. | 5,008 | 540,113 | |||||||||
EOG Resources, Inc. | 17,341 | 1,540,401 | |||||||||
Exxon Mobil Corp. | 126,077 | 7,714,652 | |||||||||
Hess Corp. | 8,131 | 601,938 | |||||||||
Kinder Morgan, Inc. | 58,071 | 921,006 | |||||||||
Marathon Oil Corp. | 23,185 | 380,698 | |||||||||
Marathon Petroleum Corp. | 18,332 | 1,173,065 | |||||||||
Occidental Petroleum Corp. | 26,347 | 763,799 | |||||||||
Phillips 66 | 13,009 | 942,632 | |||||||||
Pioneer Natural Resources Co. | 6,710 | 1,220,415 | |||||||||
Valero Energy Corp. | 12,142 | 911,985 | |||||||||
Williams Cos., Inc. | 36,086 | 939,679 | |||||||||
28,787,419 | |||||||||||
Financial (10.5%) | |||||||||||
Capital Markets (2.9%) | |||||||||||
Ameriprise Financial, Inc. | 3,314 | 999,701 | |||||||||
Bank of New York Mellon Corp. | 22,625 | 1,314,060 | |||||||||
BlackRock, Inc. | 4,311 | 3,946,979 | |||||||||
Cboe Global Markets, Inc. | 3,154 | 411,282 | |||||||||
Charles Schwab Corp. | 44,771 | 3,765,241 | |||||||||
CME Group, Inc. | 10,647 | 2,432,414 | |||||||||
Factset Research Systems, Inc. | 1,121 | 544,817 | |||||||||
Franklin Resources, Inc. | 8,352 | 279,708 | |||||||||
Goldman Sachs Group, Inc. | 10,113 | 3,868,728 | |||||||||
Intercontinental Exchange, Inc. | 16,726 | 2,287,615 | |||||||||
Invesco Ltd. (c) | 10,141 | 233,446 |
See accompanying notes to financial statements.
81
SFT Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
MarketAxess Holdings, Inc. | 1,169 | $ | 480,775 | ||||||||
Moody's Corp. | 4,807 | 1,877,518 | |||||||||
Morgan Stanley | 42,750 | 4,196,340 | |||||||||
MSCI, Inc. | 2,447 | 1,499,252 | |||||||||
Nasdaq, Inc. | 3,475 | 729,785 | |||||||||
Northern Trust Corp. | 6,152 | 735,841 | |||||||||
Raymond James Financial, Inc. | 5,481 | 550,292 | |||||||||
S&P Global, Inc. | 7,234 | 3,413,942 | |||||||||
State Street Corp. | 10,859 | 1,009,887 | |||||||||
T Rowe Price Group, Inc. | 6,641 | 1,305,886 | |||||||||
35,883,509 | |||||||||||
Commercial Banks (3.9%) | |||||||||||
Bank of America Corp. | 214,477 | 9,542,082 | |||||||||
Citigroup, Inc. | 59,092 | 3,568,566 | |||||||||
Citizens Financial Group, Inc. | 12,655 | 597,949 | |||||||||
Comerica, Inc. | 3,819 | 332,253 | |||||||||
Fifth Third Bancorp | 20,362 | 886,765 | |||||||||
First Republic Bank | 5,355 | 1,105,861 | |||||||||
Huntington Bancshares, Inc. | 43,076 | 664,232 | |||||||||
JPMorgan Chase & Co. | 88,008 | 13,936,067 | |||||||||
KeyCorp | 27,727 | 641,326 | |||||||||
M&T Bank Corp. | 3,748 | 575,618 | |||||||||
People's United Financial, Inc. | 12,711 | 226,510 | |||||||||
PNC Financial Services Group, Inc. | 12,523 | 2,511,112 | |||||||||
Regions Financial Corp. | 28,351 | 618,052 | |||||||||
Signature Bank | 1,806 | 584,187 | |||||||||
SVB Financial Group (b) | 1,777 | 1,205,232 | |||||||||
Truist Financial Corp. | 39,753 | 2,327,538 | |||||||||
US Bancorp | 40,184 | 2,257,135 | |||||||||
Wells Fargo & Co. | 118,741 | 5,697,193 | |||||||||
Zions Bancorp NA | 4,659 | 294,262 | |||||||||
47,571,940 | |||||||||||
Consumer Finance (0.6%) | |||||||||||
American Express Co. | 18,683 | 3,056,539 | |||||||||
Capital One Financial Corp. | 12,675 | 1,839,015 | |||||||||
Discover Financial Services | 8,727 | 1,008,492 | |||||||||
Synchrony Financial | 16,297 | 756,018 | |||||||||
6,660,064 | |||||||||||
Insurance (3.1%) | |||||||||||
Aflac, Inc. | 18,124 | 1,058,260 | |||||||||
Allstate Corp. | 8,537 | 1,004,378 | |||||||||
American International Group, Inc. | 24,726 | 1,405,920 | |||||||||
Aon PLC (c) | 6,561 | 1,971,974 | |||||||||
Arthur J Gallagher & Co. | 6,145 | 1,042,622 | |||||||||
Assurant, Inc. | 1,655 | 257,948 | |||||||||
Berkshire Hathaway, Inc. – Class B (b) | 54,539 | 16,307,161 | |||||||||
Brown & Brown, Inc. | 6,915 | 485,986 | |||||||||
Chubb Ltd. (c) | 12,827 | 2,479,587 | |||||||||
Cincinnati Financial Corp. | 4,406 | 501,976 | |||||||||
Everest Re Group Ltd. (c) | 1,152 | 315,556 | |||||||||
Globe Life, Inc. | 2,674 | 250,607 | |||||||||
Hartford Financial Services Group, Inc. | 10,135 | 699,721 | |||||||||
Lincoln National Corp. | 5,058 | 345,259 |
Shares | Value(a) | ||||||||||
Loews Corp. | 5,900 | $ | 340,784 | ||||||||
Marsh & McLennan Cos., Inc. | 14,947 | 2,598,088 | |||||||||
MetLife, Inc. | 21,292 | 1,330,537 | |||||||||
Principal Financial Group, Inc. | 7,292 | 527,430 | |||||||||
Progressive Corp. | 17,380 | 1,784,057 | |||||||||
Prudential Financial, Inc. | 11,256 | 1,218,350 | |||||||||
Travelers Cos., Inc. | 7,288 | 1,140,062 | |||||||||
Willis Towers Watson PLC (c) | 3,709 | 880,851 | |||||||||
WR Berkley Corp. | 4,066 | 334,998 | |||||||||
38,282,112 | |||||||||||
Health Care (12.7%) | |||||||||||
Biotechnology (1.7%) | |||||||||||
AbbVie, Inc. | 52,648 | 7,128,539 | |||||||||
Amgen, Inc. | 16,766 | 3,771,847 | |||||||||
Biogen, Inc. (b) | 4,345 | 1,042,453 | |||||||||
Gilead Sciences, Inc. | 37,356 | 2,712,419 | |||||||||
Incyte Corp. (b) | 5,591 | 410,379 | |||||||||
Moderna, Inc. (b) | 10,531 | 2,674,663 | |||||||||
Regeneron Pharmaceuticals, Inc. (b) | 3,211 | 2,027,811 | |||||||||
Vertex Pharmaceuticals, Inc. (b) | 7,527 | 1,652,929 | |||||||||
21,421,040 | |||||||||||
Health Care Equipment & Supplies (3.5%) | |||||||||||
Abbott Laboratories | 52,656 | 7,410,805 | |||||||||
ABIOMED, Inc. (b) | 1,325 | 475,900 | |||||||||
Align Technology, Inc. (b) | 2,232 | 1,466,826 | |||||||||
Baxter International, Inc. | 14,848 | 1,274,552 | |||||||||
Becton Dickinson and Co. | 8,520 | 2,142,610 | |||||||||
Boston Scientific Corp. (b) | 42,436 | 1,802,681 | |||||||||
Cooper Cos., Inc. | 1,466 | 614,166 | |||||||||
Danaher Corp. | 18,972 | 6,241,978 | |||||||||
Dentsply Sirona, Inc. | 6,479 | 361,463 | |||||||||
Dexcom, Inc. (b) | 2,886 | 1,549,638 | |||||||||
Edwards Lifesciences Corp. (b) | 18,514 | 2,398,489 | |||||||||
Hologic, Inc. (b) | 7,508 | 574,812 | |||||||||
IDEXX Laboratories, Inc. (b) | 2,588 | 1,704,095 | |||||||||
Intuitive Surgical, Inc. (b) | 10,668 | 3,833,012 | |||||||||
Medtronic PLC (c) | 40,078 | 4,146,069 | |||||||||
ResMed, Inc. | 4,306 | 1,121,627 | |||||||||
STERIS PLC (c) | 2,975 | 724,145 | |||||||||
Stryker Corp. | 9,968 | 2,665,643 | |||||||||
Teleflex, Inc. | 1,354 | 444,762 | |||||||||
West Pharmaceutical Services, Inc. | 2,230 | 1,045,892 | |||||||||
Zimmer Biomet Holdings, Inc. | 6,138 | 779,772 | |||||||||
42,778,937 | |||||||||||
Health Care Providers & Services (2.4%) | |||||||||||
AmerisourceBergen Corp. | 4,412 | 586,311 | |||||||||
Anthem, Inc. | 7,218 | 3,345,832 | |||||||||
Cardinal Health, Inc. | 8,391 | 432,052 | |||||||||
Centene Corp. (b) | 17,317 | 1,426,921 | |||||||||
Cigna Corp. | 9,870 | 2,266,448 | |||||||||
DaVita, Inc. (b) | 1,898 | 215,916 | |||||||||
HCA Healthcare, Inc. | 7,132 | 1,832,353 |
See accompanying notes to financial statements.
82
SFT Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Henry Schein, Inc. (b) | 4,083 | $ | 316,555 | ||||||||
Humana, Inc. | 3,830 | 1,776,584 | |||||||||
Laboratory Corp. of America Holdings (b) | 2,884 | 906,182 | |||||||||
McKesson Corp. | 4,542 | 1,129,005 | |||||||||
Quest Diagnostics, Inc. | 3,567 | 617,127 | |||||||||
UnitedHealth Group, Inc. | 28,107 | 14,113,649 | |||||||||
Universal Health Services, Inc. – Class B | 2,130 | 276,176 | |||||||||
29,241,111 | |||||||||||
Health Care Technology (0.1%) | |||||||||||
Cerner Corp. | 8,672 | 805,369 | |||||||||
Life Sciences Tools & Services (1.4%) | |||||||||||
Agilent Technologies, Inc. | 8,991 | 1,435,413 | |||||||||
Bio-Rad Laboratories, Inc. – Class A (b) | 692 | 522,854 | |||||||||
Bio-Techne Corp. | 1,170 | 605,288 | |||||||||
Charles River Laboratories International, Inc. (b) | 1,510 | 568,938 | |||||||||
Illumina, Inc. (b) | 4,655 | 1,770,948 | |||||||||
IQVIA Holdings, Inc. (b) | 5,633 | 1,589,295 | |||||||||
Mettler-Toledo International, Inc. (b) | 707 | 1,199,927 | |||||||||
PerkinElmer, Inc. | 3,758 | 755,584 | |||||||||
Thermo Fisher Scientific, Inc. | 11,786 | 7,864,091 | |||||||||
Waters Corp. (b) | 1,844 | 687,074 | |||||||||
16,999,412 | |||||||||||
Pharmaceuticals (3.6%) | |||||||||||
Bristol-Myers Squibb Co. | 66,101 | 4,121,397 | |||||||||
Catalent, Inc. (b) | 5,021 | 642,839 | |||||||||
Eli Lilly & Co. | 23,682 | 6,541,442 | |||||||||
Johnson & Johnson | 78,399 | 13,411,717 | |||||||||
Merck & Co., Inc. | 75,186 | 5,762,255 | |||||||||
Organon & Co. | 7,515 | 228,832 | |||||||||
Pfizer, Inc. | 167,153 | 9,870,385 | |||||||||
Viatris, Inc. | 35,918 | 485,970 | |||||||||
Zoetis, Inc. | 14,077 | 3,435,210 | |||||||||
44,500,047 | |||||||||||
Industrials (7.6%) | |||||||||||
Aerospace & Defense (1.3%) | |||||||||||
Boeing Co. (b) | 16,365 | 3,294,602 | |||||||||
General Dynamics Corp. | 6,847 | 1,427,394 | |||||||||
Howmet Aerospace, Inc. | 11,365 | 361,748 | |||||||||
Huntington Ingalls Industries, Inc. | 1,189 | 222,034 | |||||||||
L3Harris Technologies, Inc. | 5,831 | 1,243,402 | |||||||||
Lockheed Martin Corp. | 7,316 | 2,600,180 | |||||||||
Northrop Grumman Corp. | 4,443 | 1,719,752 | |||||||||
Raytheon Technologies Corp. | 44,574 | 3,836,038 | |||||||||
Teledyne Technologies, Inc. (b) | 1,368 | 597,666 | |||||||||
TransDigm Group, Inc. (b) | 1,569 | 998,323 | |||||||||
16,301,139 |
Shares | Value(a) | ||||||||||
Air Freight & Logistics (0.6%) | |||||||||||
CH Robinson Worldwide, Inc. | 3,850 | $ | 414,375 | ||||||||
Expeditors International of Washington, Inc. | 5,039 | 676,687 | |||||||||
FedEx Corp. | 7,305 | 1,889,365 | |||||||||
United Parcel Service, Inc. – Class B | 21,731 | 4,657,823 | |||||||||
7,638,250 | |||||||||||
Airlines (0.2%) | |||||||||||
Alaska Air Group, Inc. (b) | 3,643 | 189,800 | |||||||||
American Airlines Group, Inc. (b) | 19,230 | 345,371 | |||||||||
Delta Air Lines, Inc. (b) | 19,006 | 742,754 | |||||||||
Southwest Airlines Co. (b) | 17,572 | 752,785 | |||||||||
United Airlines Holdings, Inc. (b) | 9,611 | 420,770 | |||||||||
2,451,480 | |||||||||||
Building Products (0.5%) | |||||||||||
Allegion PLC (c) | 2,638 | 349,377 | |||||||||
AO Smith Corp. | 3,950 | 339,107 | |||||||||
Carrier Global Corp. | 25,772 | 1,397,873 | |||||||||
Fortune Brands Home & Security, Inc. | 3,997 | 427,279 | |||||||||
Johnson Controls International PLC (c) | 21,054 | 1,711,901 | |||||||||
Masco Corp. | 7,218 | 506,848 | |||||||||
Trane Technologies PLC (c) | 7,032 | 1,420,675 | |||||||||
6,153,060 | |||||||||||
Commercial Services & Supplies (0.4%) | |||||||||||
Cintas Corp. | 2,590 | 1,147,810 | |||||||||
Copart, Inc. (b) | 6,290 | 953,690 | |||||||||
Republic Services, Inc. | 6,216 | 866,821 | |||||||||
Rollins, Inc. | 6,694 | 229,002 | |||||||||
Waste Management, Inc. | 11,406 | 1,903,661 | |||||||||
5,100,984 | |||||||||||
Construction & Engineering (0.1%) | |||||||||||
Jacobs Engineering Group, Inc. | 3,807 | 530,049 | |||||||||
Quanta Services, Inc. | 4,243 | 486,502 | |||||||||
1,016,551 | |||||||||||
Electrical Equipment (0.5%) | |||||||||||
AMETEK, Inc. | 6,830 | 1,004,283 | |||||||||
Eaton Corp. PLC (c) | 11,839 | 2,046,016 | |||||||||
Emerson Electric Co. | 17,755 | 1,650,682 | |||||||||
Generac Holdings, Inc. (b) | 1,917 | 674,631 | |||||||||
Rockwell Automation, Inc. | 3,413 | 1,190,625 | |||||||||
6,566,237 | |||||||||||
Industrial Conglomerates (1.0%) | |||||||||||
3M Co. | 17,086 | 3,034,986 | |||||||||
General Electric Co. | 32,702 | 3,089,358 | |||||||||
Honeywell International, Inc. | 20,506 | 4,275,706 | |||||||||
Roper Technologies, Inc. | 3,162 | 1,555,261 | |||||||||
Textron, Inc. | 6,519 | 503,267 | |||||||||
12,458,578 |
See accompanying notes to financial statements.
83
SFT Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Machinery (1.5%) | |||||||||||
Caterpillar, Inc. | 16,109 | $ | 3,330,375 | ||||||||
Cummins, Inc. | 4,210 | 918,369 | |||||||||
Deere & Co. | 8,420 | 2,887,134 | |||||||||
Dover Corp. | 4,280 | 777,248 | |||||||||
Fortive Corp. | 10,644 | 812,031 | |||||||||
IDEX Corp. | 2,249 | 531,484 | |||||||||
Illinois Tool Works, Inc. | 8,487 | 2,094,592 | |||||||||
Ingersoll Rand, Inc. | 12,138 | 750,978 | |||||||||
Otis Worldwide Corp. | 12,576 | 1,094,992 | |||||||||
PACCAR, Inc. | 10,279 | 907,224 | |||||||||
Parker-Hannifin Corp. | 3,805 | 1,210,447 | |||||||||
Pentair PLC (c) | 4,849 | 354,122 | |||||||||
Snap-On, Inc. | 1,555 | 334,916 | |||||||||
Stanley Black & Decker, Inc. | 4,782 | 901,981 | |||||||||
Westinghouse Air Brake Technologies Corp. | 5,473 | 504,118 | |||||||||
Xylem, Inc. | 5,351 | 641,692 | |||||||||
18,051,703 | |||||||||||
Professional Services (0.4%) | |||||||||||
Equifax, Inc. | 3,663 | 1,072,490 | |||||||||
IHS Markit Ltd. (c) | 11,839 | 1,573,640 | |||||||||
Nielsen Holdings PLC (c) | 10,610 | 217,611 | |||||||||
Robert Half International, Inc. | 3,252 | 362,663 | |||||||||
United Rentals, Inc. (b) | 2,193 | 728,712 | |||||||||
Verisk Analytics, Inc. | 4,756 | 1,087,840 | |||||||||
5,042,956 | |||||||||||
Road & Rail (0.9%) | |||||||||||
CSX Corp. | 66,052 | 2,483,555 | |||||||||
JB Hunt Transport Services, Inc. | 2,471 | 505,073 | |||||||||
Norfolk Southern Corp. | 7,213 | 2,147,382 | |||||||||
Old Dominion Freight Line, Inc. | 2,750 | 985,545 | |||||||||
Union Pacific Corp. | 19,145 | 4,823,200 | |||||||||
10,944,755 | |||||||||||
Trading Companies & Distributors (0.2%) | |||||||||||
Fastenal Co. | 17,070 | 1,093,504 | |||||||||
WW Grainger, Inc. | 1,286 | 666,457 | |||||||||
1,759,961 | |||||||||||
Information Technology (35.0%) | |||||||||||
Communications Equipment (0.9%) | |||||||||||
Arista Networks, Inc. (b) | 6,653 | 956,369 | |||||||||
Cisco Systems, Inc. | 125,602 | 7,959,399 | |||||||||
F5, Inc. (b) | 1,821 | 445,617 | |||||||||
Juniper Networks, Inc. | 9,657 | 344,851 | |||||||||
Motorola Solutions, Inc. | 5,045 | 1,370,727 | |||||||||
11,076,963 | |||||||||||
Computers & Peripherals (6.9%) | |||||||||||
Apple, Inc. (d) | 464,158 | 82,420,536 | |||||||||
NetApp, Inc. | 6,587 | 605,938 | |||||||||
Seagate Technology Holdings PLC (c) | 6,085 | 687,483 | |||||||||
Western Digital Corp. (b) | 9,280 | 605,149 | |||||||||
84,319,106 |
Shares | Value(a) | ||||||||||
Electronic Equipment, Instruments & Components (0.5%) | |||||||||||
Amphenol Corp. – Class A | 17,767 | $ | 1,553,902 | ||||||||
CDW Corp. | 4,027 | 824,649 | |||||||||
Corning, Inc. | 22,829 | 849,924 | |||||||||
IPG Photonics Corp. (b) | 998 | 171,796 | |||||||||
Keysight Technologies, Inc. (b) | 5,462 | 1,127,957 | |||||||||
TE Connectivity Ltd. (c) | 9,642 | 1,555,640 | |||||||||
Trimble, Inc. (b) | 7,453 | 649,827 | |||||||||
6,733,695 | |||||||||||
Interactive Media & Services (6.2%) | |||||||||||
Akamai Technologies, Inc. (b) | 4,823 | 564,484 | |||||||||
Alphabet, Inc. – Class A (b) | 8,961 | 25,960,375 | |||||||||
Alphabet, Inc. – Class C (b) | 8,327 | 24,094,924 | |||||||||
eBay, Inc. | 18,642 | 1,239,693 | |||||||||
Meta Platforms, Inc. – Class A (b) | 70,469 | 23,702,248 | |||||||||
Twitter, Inc. (b) | 23,812 | 1,029,155 | |||||||||
76,590,879 | |||||||||||
IT Services (4.4%) | |||||||||||
Accenture PLC – Class A (c) | 18,835 | 7,808,049 | |||||||||
Automatic Data Processing, Inc. | 12,566 | 3,098,524 | |||||||||
Broadridge Financial Solutions, Inc. | 3,441 | 629,084 | |||||||||
Cognizant Technology Solutions Corp. – Class A | 15,611 | 1,385,008 | |||||||||
DXC Technology Co. (b) | 7,461 | 240,170 | |||||||||
EPAM Systems, Inc. (b) | 1,689 | 1,129,012 | |||||||||
Fidelity National Information Services, Inc. | 18,134 | 1,979,326 | |||||||||
Fiserv, Inc. (b) | 17,601 | 1,826,808 | |||||||||
FleetCor Technologies, Inc. (b) | 2,394 | 535,873 | |||||||||
Gartner, Inc. (b) | 2,411 | 806,046 | |||||||||
Global Payments, Inc. | 8,603 | 1,162,954 | |||||||||
International Business Machines Corp. | 26,622 | 3,558,296 | |||||||||
Jack Henry & Associates, Inc. | 2,188 | 365,374 | |||||||||
Leidos Holdings, Inc. | 4,149 | 368,846 | |||||||||
Mastercard, Inc. – Class A | 25,875 | 9,297,405 | |||||||||
Paychex, Inc. | 9,487 | 1,294,975 | |||||||||
PayPal Holdings, Inc. (b) | 34,900 | 6,581,442 | |||||||||
VeriSign, Inc. (b) | 2,888 | 733,032 | |||||||||
Visa, Inc. – Class A | 49,941 | 10,822,714 | |||||||||
53,622,938 | |||||||||||
Office Electronics (0.1%) | |||||||||||
Zebra Technologies Corp. – Class A (b) | 1,610 | 958,272 | |||||||||
Semiconductors & Semiconductor Equipment (6.2%) | |||||||||||
Advanced Micro Devices, Inc. (b) | 35,927 | 5,169,895 | |||||||||
Analog Devices, Inc. | 15,976 | 2,808,102 | |||||||||
Applied Materials, Inc. | 26,889 | 4,231,253 | |||||||||
Broadcom, Inc. | 12,286 | 8,175,227 | |||||||||
Enphase Energy, Inc. (b) | 4,018 | 735,053 |
See accompanying notes to financial statements.
84
SFT Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Intel Corp. | 121,116 | $ | 6,237,474 | ||||||||
KLA Corp. | 4,485 | 1,929,043 | |||||||||
Lam Research Corp. | 4,258 | 3,062,141 | |||||||||
Microchip Technology, Inc. | 16,524 | 1,438,579 | |||||||||
Micron Technology, Inc. | 33,313 | 3,103,106 | |||||||||
Monolithic Power Systems, Inc. | 1,310 | 646,262 | |||||||||
NVIDIA Corp. | 74,451 | 21,896,784 | |||||||||
NXP Semiconductors NV (c) | 7,858 | 1,789,895 | |||||||||
Qorvo, Inc. (b) | 3,259 | 509,675 | |||||||||
QUALCOMM, Inc. | 33,354 | 6,099,446 | |||||||||
Skyworks Solutions, Inc. | 4,828 | 749,016 | |||||||||
SolarEdge Technologies, Inc. (b) | 1,564 | 438,812 | |||||||||
Teradyne, Inc. | 4,764 | 779,057 | |||||||||
Texas Instruments, Inc. | 27,421 | 5,168,036 | |||||||||
Xilinx, Inc. | 7,394 | 1,567,750 | |||||||||
76,534,606 | |||||||||||
Software (9.6%) | |||||||||||
Activision Blizzard, Inc. | 23,099 | 1,536,776 | |||||||||
Adobe, Inc. (b) | 14,150 | 8,023,899 | |||||||||
ANSYS, Inc. (b) | 2,627 | 1,053,742 | |||||||||
Autodesk, Inc. (b) | 6,504 | 1,828,860 | |||||||||
Cadence Design Systems, Inc. (b) | 8,206 | 1,529,188 | |||||||||
Ceridian HCM Holding, Inc. (b) | 4,056 | 423,690 | |||||||||
Citrix Systems, Inc. | 3,628 | 343,172 | |||||||||
Electronic Arts, Inc. | 8,341 | 1,100,178 | |||||||||
Fortinet, Inc. (b) | 4,039 | 1,451,617 | |||||||||
Intuit, Inc. | 8,502 | 5,468,656 | |||||||||
Microsoft Corp. | 223,590 | 75,197,789 | |||||||||
NortonLifeLock, Inc. | 17,265 | 448,545 | |||||||||
Oracle Corp. | 48,031 | 4,188,783 | |||||||||
Paycom Software, Inc. (b) | 1,440 | 597,874 | |||||||||
PTC, Inc. (b) | 3,100 | 375,565 | |||||||||
Salesforce.com, Inc. (b) | 29,155 | 7,409,160 | |||||||||
ServiceNow, Inc. (b) | 5,980 | 3,881,678 | |||||||||
Synopsys, Inc. (b) | 4,546 | 1,675,201 | |||||||||
Take-Two Interactive Software, Inc. (b) | 3,404 | 604,959 | |||||||||
Tyler Technologies, Inc. (b) | 1,286 | 691,804 | |||||||||
117,831,136 | |||||||||||
Technology Hardware Storage & Peripherals (0.2%) | |||||||||||
Hewlett Packard Enterprise Co. | 38,954 | 614,304 | |||||||||
HP, Inc. | 34,322 | 1,292,910 | |||||||||
1,907,214 | |||||||||||
Materials (2.5%) | |||||||||||
Chemicals (1.7%) | |||||||||||
Air Products & Chemicals, Inc. | 6,544 | 1,991,077 | |||||||||
Albemarle Corp. | 3,492 | 816,325 | |||||||||
Celanese Corp. | 3,181 | 534,599 | |||||||||
CF Industries Holdings, Inc. | 6,325 | 447,684 | |||||||||
Corteva, Inc. | 21,706 | 1,026,260 | |||||||||
Dow, Inc. | 22,025 | 1,249,258 | |||||||||
DuPont de Nemours, Inc. | 15,429 | 1,246,355 |
Shares | Value(a) | ||||||||||
Eastman Chemical Co. | 3,905 | $ | 472,154 | ||||||||
Ecolab, Inc. | 7,370 | 1,728,928 | |||||||||
FMC Corp. | 3,684 | 404,835 | |||||||||
International Flavors & Fragrances, Inc. | 7,579 | 1,141,776 | |||||||||
Linde PLC (c) | 15,238 | 5,278,900 | |||||||||
LyondellBasell Industries NV – Class A (c) | 7,732 | 713,122 | |||||||||
Mosaic Co. | 11,001 | 432,229 | |||||||||
PPG Industries, Inc. | 7,025 | 1,211,391 | |||||||||
Sherwin-Williams Co. | 7,226 | 2,544,708 | |||||||||
21,239,601 | |||||||||||
Commercial Services & Supplies (0.0%) | |||||||||||
Avery Dennison Corp. | 2,430 | 526,265 | |||||||||
Construction Materials (0.1%) | |||||||||||
Martin Marietta Materials, Inc. | 1,899 | 836,548 | |||||||||
Vulcan Materials Co. | 3,947 | 819,318 | |||||||||
1,655,866 | |||||||||||
Containers & Packaging (0.3%) | |||||||||||
Amcor PLC (c) | 45,658 | 548,353 | |||||||||
Ball Corp. | 9,599 | 924,096 | |||||||||
International Paper Co. | 11,508 | 540,646 | |||||||||
Packaging Corp. of America | 2,782 | 378,769 | |||||||||
Sealed Air Corp. | 4,394 | 296,463 | |||||||||
WestRock Co. | 7,951 | 352,706 | |||||||||
3,041,033 | |||||||||||
Metals & Mining (0.4%) | |||||||||||
Freeport-McMoRan, Inc. | 43,731 | 1,824,894 | |||||||||
Newmont Corp. | 23,735 | 1,472,045 | |||||||||
Nucor Corp. | 8,511 | 971,531 | |||||||||
4,268,470 | |||||||||||
Real Estate (2.7%) | |||||||||||
Health Care REITs (0.2%) | |||||||||||
Healthpeak Properties, Inc. | 16,008 | 577,729 | |||||||||
Ventas, Inc. | 11,887 | 607,663 | |||||||||
Welltower, Inc. | 12,962 | 1,111,751 | |||||||||
2,297,143 | |||||||||||
Hotels & Resort REITs (0.0%) | |||||||||||
Host Hotels & Resorts, Inc. (b) | 21,206 | 368,772 | |||||||||
Industrial REITs (0.4%) | |||||||||||
Duke Realty Corp. | 11,341 | 744,423 | |||||||||
Prologis, Inc. | 21,957 | 3,696,681 | |||||||||
4,441,104 | |||||||||||
Office REITs (0.1%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 4,199 | 936,209 | |||||||||
Boston Properties, Inc. | 4,205 | 484,332 | |||||||||
Vornado Realty Trust | 4,677 | 195,779 | |||||||||
1,616,320 |
See accompanying notes to financial statements.
85
SFT Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Real Estate Services (0.1%) | |||||||||||
CBRE Group, Inc. – Class A (b) | 9,933 | $ | 1,077,830 | ||||||||
Residential REITs (0.3%) | |||||||||||
AvalonBay Communities, Inc. | 4,141 | 1,045,975 | |||||||||
Equity Residential | 10,121 | 915,951 | |||||||||
Essex Property Trust, Inc. | 1,910 | 672,759 | |||||||||
Mid-America Apartment Communities, Inc. | 3,433 | 787,668 | |||||||||
UDR, Inc. | 8,655 | 519,213 | |||||||||
3,941,566 | |||||||||||
Retail REITs (0.3%) | |||||||||||
Federal Realty Investment Trust | 2,047 | 279,047 | |||||||||
Kimco Realty Corp. | 18,357 | 452,500 | |||||||||
Realty Income Corp. | 16,848 | 1,206,148 | |||||||||
Regency Centers Corp. | 4,588 | 345,706 | |||||||||
Simon Property Group, Inc. | 9,717 | 1,552,485 | |||||||||
3,835,886 | |||||||||||
Specialized REITs (1.3%) | |||||||||||
American Tower Corp. | 13,518 | 3,954,015 | |||||||||
Crown Castle International Corp. | 12,837 | 2,679,595 | |||||||||
Digital Realty Trust, Inc. | 8,372 | 1,480,756 | |||||||||
Equinix, Inc. | 2,752 | 2,327,752 | |||||||||
Extra Space Storage, Inc. | 3,926 | 890,142 | |||||||||
Iron Mountain, Inc. | 8,595 | 449,776 | |||||||||
Public Storage | 4,530 | 1,696,757 | |||||||||
SBA Communications Corp. | 3,234 | 1,258,091 | |||||||||
Weyerhaeuser Co. | 22,270 | 917,078 | |||||||||
15,653,962 | |||||||||||
Utilities (2.5%) | |||||||||||
Electric Utilities (1.5%) | |||||||||||
Alliant Energy Corp. | 7,419 | 456,046 | |||||||||
American Electric Power Co., Inc. | 14,998 | 1,334,372 | |||||||||
Duke Energy Corp. | 22,850 | 2,396,965 | |||||||||
Edison International | 11,265 | 768,836 | |||||||||
Entergy Corp. | 5,985 | 674,210 | |||||||||
Evergy, Inc. | 6,828 | 468,469 | |||||||||
Eversource Energy | 10,159 | 924,266 | |||||||||
Exelon Corp. | 29,043 | 1,677,524 | |||||||||
FirstEnergy Corp. | 16,163 | 672,219 | |||||||||
NextEra Energy, Inc. | 58,433 | 5,455,305 | |||||||||
Pinnacle West Capital Corp. | 3,275 | 231,182 | |||||||||
PPL Corp. | 22,356 | 672,021 | |||||||||
Southern Co. | 31,561 | 2,164,453 | |||||||||
Xcel Energy, Inc. | 15,992 | 1,082,659 | |||||||||
18,978,527 |
Shares | Value(a) | ||||||||||
Gas Utilities (0.1%) | |||||||||||
Atmos Energy Corp. | 3,873 | $ | 405,774 | ||||||||
ONEOK, Inc. | 13,236 | 777,748 | |||||||||
1,183,522 | |||||||||||
Independent Power Producers & Energy Traders (0.1%) | |||||||||||
AES Corp. | 19,792 | 480,945 | |||||||||
NRG Energy, Inc. | 7,261 | 312,804 | |||||||||
793,749 | |||||||||||
Multi-Utilities (0.7%) | |||||||||||
Ameren Corp. | 7,587 | 675,319 | |||||||||
CenterPoint Energy, Inc. | 18,727 | 522,671 | |||||||||
CMS Energy Corp. | 8,627 | 561,186 | |||||||||
Consolidated Edison, Inc. | 10,496 | 895,519 | |||||||||
Dominion Energy, Inc. | 24,119 | 1,894,789 | |||||||||
DTE Energy Co. | 5,747 | 686,996 | |||||||||
NiSource, Inc. | 11,617 | 320,745 | |||||||||
Public Service Enterprise Group, Inc. | 15,016 | 1,002,018 | |||||||||
Sempra Energy | 9,509 | 1,257,850 | |||||||||
WEC Energy Group, Inc. | 9,318 | 904,498 | |||||||||
8,721,591 | |||||||||||
Water Utilities (0.1%) | |||||||||||
American Water Works Co., Inc. | 5,332 | 1,007,002 | |||||||||
Total common stocks (cost: $338,877,662) | 1,201,220,262 | ||||||||||
Short-Term Securities (2.2%) | |||||||||||
Investment Companies (2.2%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 26,472,532 | 26,472,532 | |||||||||
Total short-term securities (cost: $26,472,532) | 26,472,532 | ||||||||||
Total investments in securities (cost: $365,350,194) (e) | 1,227,692,794 | ||||||||||
Cash and other assets in excess of liabilities (0.0%) | 263,045 | ||||||||||
Total net assets (100.0%) | $ | 1,227,955,839 |
See accompanying notes to financial statements.
86
SFT Index 500 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 3.4% of net assets in foreign securities at December 31, 2021.
(d) Fully or partially pledged as initial margin deposits on open futures contracts.
(e) At December 31, 2021 the cost of investments for federal income tax purposes was $368,423,002. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 868,357,898 | |||||
Gross unrealized depreciation | (8,384,387 | ) | |||||
Net unrealized appreciation | $ | 859,973,511 |
Holdings of Open Futures Contracts
On December 31, 2021, securities with an aggregate market value of $24,859,800 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 2022 | 107 | Long | $ | 24,754,256 | $ | 25,457,975 | $ | 703,719 |
See accompanying notes to financial statements.
87
SFT International Bond Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Principal(b) | Value(a) | ||||||||||
Long-Term Debt Securities (96.9%) | |||||||||||
Australia (6.3%) | |||||||||||
Financial (2.0%) | |||||||||||
Commonwealth Bank of Australia (USD) 0.449%, 07/07/25 (SOFRRATE + 0.400%) (c) (d) | 1,860,000 | $ | 1,859,745 | ||||||||
Government (4.3%) | |||||||||||
Australia Government Bond (AUD) 5.750%, 07/15/22 | 2,370,000 | 1,774,251 | |||||||||
New South Wales Treasury Corp. (AUD) 4.000%, 04/20/23 | 530,000 | 403,455 | |||||||||
Queensland Treasury Corp. (AUD) 4.250%, 07/21/23 (c) | 1,050,000 | 806,764 | |||||||||
Western Australian Treasury Corp. (AUD) 6.000%, 10/16/23 | 1,110,000 | 883,225 | |||||||||
3,867,695 | |||||||||||
Brazil (2.5%) | |||||||||||
Government (2.5%) | |||||||||||
Brazil Notas do Tesouro Nacional Serie F (BRL) 10.000%, 01/01/27 | 10,750,000 | 1,787,534 | |||||||||
10.000%, 01/01/29 | 2,940,000 | 509,415 | |||||||||
2,296,949 | |||||||||||
Canada (9.3%) | |||||||||||
Financial (5.2%) | |||||||||||
Bank of Montreal (USD) 0.730%, 03/10/23 (SOFRRATE + 0.680%) (d) | 1,600,000 | 1,607,797 | |||||||||
Bank of Nova Scotia (USD) 0.600%, 09/15/23 (SOFRRATE + 0.550%) (d) | 1,810,000 | 1,815,247 | |||||||||
Canadian Imperial Bank of Commerce (USD) 0.850%, 03/17/23 (SOFRRATE + 0.800%) (d) | 1,320,000 | 1,324,950 | |||||||||
4,747,994 | |||||||||||
Government (4.1%) | |||||||||||
Province of Ontario Canada (CAD) 2.600%, 06/02/25 | 4,500,000 | 3,696,972 | |||||||||
Colombia (3.2%) | |||||||||||
Government (3.2%) | |||||||||||
Colombian TES (COP) 6.000%, 04/28/28 | 7,900,000,000 | 1,754,829 | |||||||||
6.250%, 11/26/25 | 4,800,000,000 | 1,135,689 | |||||||||
2,890,518 |
Principal(b) | Value(a) | ||||||||||
Malaysia (3.2%) | |||||||||||
Government (3.2%) | |||||||||||
Malaysia Government Bond (MYR) 3.480%, 03/15/23 | 4,570,000 | $ | 1,113,244 | ||||||||
3.882%, 03/10/22 | 2,320,000 | 558,972 | |||||||||
3.899%, 11/16/27 | 3,350,000 | 829,957 | |||||||||
3.955%, 09/15/25 | 1,700,000 | 420,874 | |||||||||
2,923,047 | |||||||||||
Mexico (9.5%) | |||||||||||
Energy (1.0%) | |||||||||||
Petroleos Mexicanos (USD) 7.690%, 01/23/50 | 950,000 | 920,280 | |||||||||
Government (8.5%) | |||||||||||
Mexican Bonos (MXN) 7.750%, 11/13/42 | 53,400,000 | 2,547,331 | |||||||||
8.000%, 11/07/47 | 17,300,000 | 842,826 | |||||||||
8.500%, 05/31/29 | 40,800,000 | 2,122,105 | |||||||||
8.500%, 11/18/38 | 42,800,000 | 2,214,601 | |||||||||
7,726,863 | |||||||||||
Norway (3.0%) | |||||||||||
Government (3.0%) | |||||||||||
Norway Government Bond (NOK) 2.000%, 05/24/23 (c) | 23,700,000 | 2,720,381 | |||||||||
Poland (3.0%) | |||||||||||
Government (3.0%) | |||||||||||
Republic of Poland Government Bond (PLN) 4.000%, 10/25/23 | 10,900,000 | 2,733,465 | |||||||||
Russia (0.4%) | |||||||||||
Government (0.4%) | |||||||||||
Russian Federal Bond—OFZ (RUB) 7.650%, 04/10/30 (e) | 29,000,000 | 371,402 | |||||||||
South Africa (3.9%) | |||||||||||
Government (3.9%) | |||||||||||
Republic of South Africa Government Bond (ZAR) 6.500%, 02/28/41 | 40,570,000 | 1,694,077 | |||||||||
8.750%, 02/28/48 | 34,600,000 | 1,813,358 | |||||||||
3,507,435 | |||||||||||
South Korea (7.3%) | |||||||||||
Government (7.3%) | |||||||||||
Korea Treasury Bond (KRW) 1.875%, 03/10/51 | 2,350,000,000 | 1,804,186 | |||||||||
2.000%, 06/10/31 | 5,850,000,000 | 4,824,863 | |||||||||
6,629,049 |
See accompanying notes to financial statements.
88
SFT International Bond Fund
Investments in Securities – continued
Principal(b) | Value(a) | ||||||||||
United States (45.3%) | |||||||||||
Consumer, Cyclical (0.9%) | |||||||||||
General Motors Co. (USD) 6.250%, 10/02/43 | 355,000 | $ | 487,295 | ||||||||
6.800%, 10/01/27 | 250,000 | 306,942 | |||||||||
794,237 | |||||||||||
Financial (1.6%) | |||||||||||
Athene Global Funding (USD) 0.750%, 05/24/24 (SOFRRATE + 0.700%) (c) (d) | 1,460,000 | 1,461,775 | |||||||||
Government (39.5%) | |||||||||||
U.S. Treasury Bond (USD) 1.875%, 11/15/51 | 2,020,000 | 2,013,688 | |||||||||
U.S. Treasury Note (USD) 0.114%, 07/31/23 (3-Month U.S. Treasury Money Market Yield + 0.029%) (d) | 4,430,000 | 4,430,014 | |||||||||
U.S. Treasury Note (USD) 0.119%, 04/30/23 (3-Month U.S. Treasury Money Market Yield + 0.034%) (d) | 1,095,000 | 1,095,105 | |||||||||
U.S. Treasury Note (USD) 0.134%, 01/31/23 (3-Month U.S. Treasury Money Market Yield + 0.049%) (d) | 28,300,000 | 28,310,890 | |||||||||
35,849,697 |
Principal(b)/ Shares | Value(a) | ||||||||||
Industrial (3.3%) | |||||||||||
Boeing Co. (USD) 3.950%, 08/01/59 | 340,000 | $ | 353,868 | ||||||||
5.705%, 05/01/40 | 200,000 | 256,563 | |||||||||
5.805%, 05/01/50 | 570,000 | 772,125 | |||||||||
5.930%, 05/01/60 | 330,000 | 456,811 | |||||||||
Caterpillar Financial Services Corp. (USD) 0.200%, 11/17/22 (SOFRRATE + 0.150%) (d) | 1,105,000 | 1,104,363 | |||||||||
2,943,730 | |||||||||||
Total long-term debt securities (cost: $89,997,113) | 87,941,234 | ||||||||||
Short-Term Securities (2.3%) | |||||||||||
Investment Companies (2.3%) | |||||||||||
United States (2.3%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 2,105,349 | 2,105,349 | |||||||||
Total short-term securities (cost: $2,105,349) | 2,105,349 | ||||||||||
Total investments in securities (cost: $92,102,462) (f) | 90,046,583 | ||||||||||
Cash and other assets in excess of liabilities (0.8%) | 706,812 | ||||||||||
Total net assets (100.0%) | $ | 90,753,395 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the notes to financial statements.
(b) Principal amounts for foreign debt securities are denominated in the currencies indicated. United States debt securities are denominated in U.S. Dollars.
(c) 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.
(d) Variable rate security.
(e) This security has been determined to be illiquid pursuant to the procedures of the Funds' Liquidity Risk Management Program.
(f) At December 31, 2021 the cost of investments for federal income tax purposes was 92,250,077. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 942,194 | |||||
Gross unrealized depreciation | (3,014,029 | ) | |||||
Net unrealized depreciation | $ | (2,071,835 | ) |
See accompanying notes to financial statements.
89
SFT International Bond Fund
Investments in Securities – continued
Foreign Forward Currency Contracts
On December 31, 2021, SFT International Bond Fund had entered into forward foreign currency contracts that obligate the Fund to deliver currencies at specified future dates. Unrealized appreciation and depreciation on these contracts is included in the accompanying financial statements. The terms of the open contracts were as follows:
Settlement Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Appreciation(a) | Unrealized Depreciation(a) | Counterparty | ||||||||||||||||||||||||||
01/12/22 | 527,224 | USD | 2,200,000 | MYR | $ | 674 | $ | – | BLC | ||||||||||||||||||||||
01/12/22 | 12,430,000 | MYR | 2,964,111 | USD | – | (18,510 | ) | BLC | |||||||||||||||||||||||
01/20/22 | 10,530,000 | BRL | 1,888,213 | USD | 4,606 | – | JPM | ||||||||||||||||||||||||
01/20/22 | 1,222,639 | USD | 4,840,000 | PLN | – | (22,927 | ) | JPM | |||||||||||||||||||||||
01/20/22 | 11,140,000 | PLN | 2,721,967 | USD | – | (39,352 | ) | MSC | |||||||||||||||||||||||
01/26/22 | 4,660,000 | EUR | 5,435,049 | USD | 133,445 | – | JPM | ||||||||||||||||||||||||
01/26/22 | 1,726,925 | USD | 1,520,000 | EUR | 2,354 | – | JPM | ||||||||||||||||||||||||
01/31/22 | 12,000,000,000 | COP | 3,159,516 | USD | 220,557 | – | JPM | ||||||||||||||||||||||||
02/04/22 | 1,130,837 | USD | 930,000,000 | CLP | – | (43,855 | ) | JPM | |||||||||||||||||||||||
02/04/22 | 94,563 | USD | 80,000,000 | CLP | – | (1,059 | ) | JPM | |||||||||||||||||||||||
02/11/22 | 6,910,000,000 | KRW | 5,909,620 | USD | 93,794 | – | HSB | ||||||||||||||||||||||||
02/11/22 | 260,000,000 | KRW | 217,847 | USD | – | (983 | ) | HSB | |||||||||||||||||||||||
02/11/22 | 640,000,000 | KRW | 536,854 | USD | – | (1,804 | ) | HSB | |||||||||||||||||||||||
02/14/22 | 270,000 | CAD | 217,926 | USD | 4,177 | – | GSC | ||||||||||||||||||||||||
02/14/22 | 65,100,000 | ZAR | 4,222,310 | USD | 166,968 | – | HSB | ||||||||||||||||||||||||
02/14/22 | 340,240 | USD | 5,400,000 | ZAR | – | (3,852 | ) | JPM | |||||||||||||||||||||||
02/14/22 | 114,199 | USD | 1,800,000 | ZAR | – | (2,070 | ) | JPM | |||||||||||||||||||||||
02/14/22 | 114,695 | USD | 1,800,000 | ZAR | – | (2,566 | ) | JPM | |||||||||||||||||||||||
02/14/22 | 114,838 | USD | 1,800,000 | ZAR | – | (2,709 | ) | JPM | |||||||||||||||||||||||
02/14/22 | 37,125 | USD | 600,000 | ZAR | 252 | – | HSB | ||||||||||||||||||||||||
02/14/22 | 537,594 | USD | 680,000 | CAD | 737 | – | HSB | ||||||||||||||||||||||||
02/14/22 | 410,000 | CAD | 319,967 | USD | – | (4,615 | ) | MSC | |||||||||||||||||||||||
02/22/22 | 466,197 | USD | 150,000,000 | HUF | – | (5,389 | ) | HSB | |||||||||||||||||||||||
02/24/22 | 149,000,000 | MXN | 7,073,402 | USD | – | (145,530 | ) | NAB | |||||||||||||||||||||||
02/25/22 | 530,000 | GBP | 715,269 | USD | – | (2,437 | ) | HSB | |||||||||||||||||||||||
03/03/22 | 178,000,000 | JPY | 1,578,700 | USD | 32,272 | – | JPM | ||||||||||||||||||||||||
03/07/22 | 5,180,000 | AUD | 3,678,266 | USD | – | (88,351 | ) | JPM | |||||||||||||||||||||||
03/07/22 | 349,980 | USD | 490,000 | AUD | 6,322 | – | JPM | ||||||||||||||||||||||||
03/09/22 | 123,793 | USD | 4,200,000 | THB | 1,904 | – | HSB | ||||||||||||||||||||||||
03/10/22 | 4,850,000 | NOK | 547,607 | USD | – | (1,774 | ) | BLC | |||||||||||||||||||||||
03/10/22 | 541,410 | USD | 4,850,000 | NOK | 7,971 | – | MSC | ||||||||||||||||||||||||
03/21/22 | 210,492 | USD | 270,000 | CAD | 3,225 | – | HSB | ||||||||||||||||||||||||
03/21/22 | 163,182 | USD | 1,470,000 | NOK | 3,295 | – | MSC | ||||||||||||||||||||||||
03/21/22 | 211,078 | USD | 1,900,000 | NOK | 4,095 | – | MSC | ||||||||||||||||||||||||
03/21/22 | 19,440,000 | NOK | 2,194,708 | USD | – | (6,856 | ) | BLC | |||||||||||||||||||||||
03/21/22 | 201,150 | USD | 260,000 | CAD | 4,651 | – | HSB | ||||||||||||||||||||||||
03/21/22 | 4,270,000 | CAD | 3,331,253 | USD | – | (48,643 | ) | MSC | |||||||||||||||||||||||
$ | 691,299 | $ | (443,282 | ) |
Currency Legend
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CLP Chilean Peso
COP Colombian Peso
EUR Euro
GBP British Pound
HUF Hungarian Forint
JPY Japanese Yen
KRW South Korean Won
MXN Mexican Peso
MYR Malaysian Ringgit
NOK Norwegian Krone
PLN Polish Zloty
RUB Russian Ruble
Currency Legend
THB Thai Baht
USD United States Dollar
ZAR South African Rand
Counterparty Legend
BLC Barclays Bank PLC
GSC Goldman Sachs
HSB HSBC Bank PLC
JPM JPMorgan Chase Bank NA
MSC Morgan Stanley and Co., Inc
NAB National Australia Bank Ltd.
See accompanying notes to financial statements.
90
SFT International Bond Fund
Investments in Securities – continued
Holdings of Open Futures Contracts
On December 31, 2021, $315,449 in cash has 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) | |||||||||||||||||||||
Euro-OAT Future | March 2022 | 26 | Long | $ | 4,915,192 | $ | 4,823,887 | $ | (91,305 | ) | |||||||||||||||||
Long Gilt Future | March 2022 | 35 | Long | 5,915,141 | 5,920,979 | 5,838 | |||||||||||||||||||||
U.S. Ultra Bond | March 2022 | 16 | Long | 3,184,891 | 3,154,000 | (30,891 | ) | ||||||||||||||||||||
$ | 13,898,866 | $ | (116,358 | ) |
See accompanying notes to financial statements.
91
SFT Real Estate Securities Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (98.4%) | |||||||||||
Real Estate (98.4%) | |||||||||||
Diversified REITs (0.8%) | |||||||||||
Essential Properties Realty Trust, Inc. | 45,900 | $ | 1,323,297 | ||||||||
Health Care REITs (5.5%) | |||||||||||
Healthpeak Properties, Inc. | 37,300 | 1,346,157 | |||||||||
Ventas, Inc. | 68,696 | 3,511,740 | |||||||||
Welltower, Inc. | 55,500 | 4,760,235 | |||||||||
9,618,132 | |||||||||||
Hotels & Resort REITs (5.1%) | |||||||||||
Host Hotels & Resorts, Inc. (b) | 229,946 | 3,998,761 | |||||||||
MGM Growth Properties LLC Class A | 14,600 | 596,410 | |||||||||
Park Hotels & Resorts, Inc. (b) | 154,000 | 2,907,520 | |||||||||
RLJ Lodging Trust | 93,100 | 1,296,883 | |||||||||
8,799,574 | |||||||||||
Industrial REITs (15.0%) | |||||||||||
Duke Realty Corp. | 68,200 | 4,476,648 | |||||||||
First Industrial Realty Trust, Inc. | 27,400 | 1,813,880 | |||||||||
Prologis, Inc. | 102,281 | 17,220,029 | |||||||||
Rexford Industrial Realty, Inc. | 31,600 | 2,563,076 | |||||||||
26,073,633 | |||||||||||
Office REITs (7.6%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 15,522 | 3,460,785 | |||||||||
Boston Properties, Inc. | 14,783 | 1,702,706 | |||||||||
Douglas Emmett, Inc. | 24,300 | 814,050 | |||||||||
Highwoods Properties, Inc. | 27,700 | 1,235,143 | |||||||||
Kilroy Realty Corp. | 34,836 | 2,315,201 | |||||||||
SL Green Realty Corp. | 18,800 | 1,347,960 | |||||||||
Vornado Realty Trust | 55,300 | 2,314,858 | |||||||||
13,190,703 | |||||||||||
Residential REITs (24.6%) | |||||||||||
American Campus Communities, Inc. | 43,600 | 2,497,844 | |||||||||
American Homes 4 Rent Class A | 78,500 | 3,423,385 | |||||||||
AvalonBay Communities, Inc. | 28,826 | 7,281,159 | |||||||||
Camden Property Trust | 18,100 | 3,234,108 | |||||||||
Equity LifeStyle Properties, Inc. | 22,800 | 1,998,648 |
Shares | Value(a) | ||||||||||
Equity Residential | 33,200 | $ | 3,004,600 | ||||||||
Essex Property Trust, Inc. | 13,100 | 4,614,213 | |||||||||
Invitation Homes, Inc. | 119,400 | 5,413,596 | |||||||||
Mid-America Apartment Communities, Inc. | 12,700 | 2,913,888 | |||||||||
Sun Communities, Inc. | 19,800 | 4,157,406 | |||||||||
UDR, Inc. | 71,500 | 4,289,285 | |||||||||
42,828,132 | |||||||||||
Retail REITs (15.4%) | |||||||||||
Agree Realty Corp. | 28,300 | 2,019,488 | |||||||||
Brixmor Property Group, Inc. | 113,000 | 2,871,330 | |||||||||
Kimco Realty Corp. | 128,200 | 3,160,130 | |||||||||
Kite Realty Group Trust | 101,000 | 2,199,780 | |||||||||
National Retail Properties, Inc. | 52,900 | 2,542,903 | |||||||||
Realty Income Corp. | 44,129 | 3,159,195 | |||||||||
Regency Centers Corp. | 37,700 | 2,840,695 | |||||||||
Simon Property Group, Inc. | 50,079 | 8,001,122 | |||||||||
26,794,643 | |||||||||||
Specialized REITs (24.4%) | |||||||||||
American Tower Corp. | 9,400 | 2,749,500 | |||||||||
Digital Realty Trust, Inc. | 42,600 | 7,534,662 | |||||||||
Equinix, Inc. | 10,034 | 8,487,159 | |||||||||
Extra Space Storage, Inc. | 19,100 | 4,330,543 | |||||||||
Life Storage, Inc. | 22,850 | 3,500,163 | |||||||||
Pebblebrook Hotel Trust | 50,700 | 1,134,159 | |||||||||
Public Storage | 28,600 | 10,712,416 | |||||||||
SBA Communications Corp. | 3,700 | 1,439,374 | |||||||||
VICI Properties, Inc. | 80,741 | 2,431,111 | |||||||||
42,319,087 | |||||||||||
Total common stocks (cost: 125,016,010) | 170,947,201 | ||||||||||
Short-Term Securities (1.5%) | |||||||||||
Investment Companies (1.5%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 2,666,489 | 2,666,489 | |||||||||
Total short-term securities (cost: $2,666,489) | 2,666,489 | ||||||||||
Total investments in securities (cost: 127,682,499) (c) | 173,613,690 | ||||||||||
Cash and other assets in excess of liabilities (0.1%) | 193,890 | ||||||||||
Total net assets (100.0%) | $ | 173,807,580 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the notes to financial statements.
(b) Non-income producing security.
(c) At December 31, 2021 the cost of investments for federal income tax purposes was $129,360,582. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 44,472,133 | |||||
Gross unrealized depreciation | (219,025 | ) | |||||
Net unrealized appreciation | $ | 44,253,108 |
See accompanying notes to financial statements.
92
SFT T. Rowe Price Value Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (99.1%) | |||||||||||
Communication Services (0.6%) | |||||||||||
Wireless Telecommunication Services (0.6%) | |||||||||||
T-Mobile US, Inc. (b) | 11,103 | $ | 1,287,726 | ||||||||
Consumer Discretionary (9.4%) | |||||||||||
Automobiles (0.6%) | |||||||||||
General Motors Co. (b) | 25,000 | 1,465,750 | |||||||||
Entertainment (1.6%) | |||||||||||
Walt Disney Co. (b) | 25,008 | 3,873,489 | |||||||||
Hotels & Resort REITs (1.2%) | |||||||||||
Hilton Worldwide Holdings, Inc. (b) | 18,629 | 2,905,938 | |||||||||
Hotels, Restaurants & Leisure (3.2%) | |||||||||||
Booking Holdings, Inc. (b) | 550 | 1,319,577 | |||||||||
Marriott International, Inc. Class A (b) | 12,867 | 2,126,143 | |||||||||
Starbucks Corp. | 5,000 | 584,850 | |||||||||
Yum! Brands, Inc. | 26,218 | 3,640,631 | |||||||||
7,671,201 | |||||||||||
Media (0.7%) | |||||||||||
Charter Communications, Inc. Class A (b) | 1,460 | 951,876 | |||||||||
Comcast Corp. Class A | 11,100 | 558,663 | |||||||||
1,510,539 | |||||||||||
Multiline Retail (0.6%) | |||||||||||
Dollar General Corp. | 6,100 | 1,438,563 | |||||||||
Specialty Retail (1.5%) | |||||||||||
Home Depot, Inc. | 5,135 | 2,131,077 | |||||||||
Ross Stores, Inc. | 4,400 | 502,832 | |||||||||
TJX Cos., Inc. | 11,862 | 900,563 | |||||||||
3,534,472 | |||||||||||
Consumer Staples (2.5%) | |||||||||||
Beverages (0.6%) | |||||||||||
Coca-Cola Co. | 25,700 | 1,521,697 | |||||||||
Food & Staples Retailing (1.0%) | |||||||||||
Walmart, Inc. | 15,769 | 2,281,617 | |||||||||
Food Products (0.6%) | |||||||||||
Mondelez International, Inc. Class A | 21,662 | 1,436,407 | |||||||||
Household Products (0.3%) | |||||||||||
Kimberly-Clark Corp. | 4,700 | 671,724 | |||||||||
Financial (16.5%) | |||||||||||
Capital Markets (4.2%) | |||||||||||
Charles Schwab Corp. | 55,354 | 4,655,271 | |||||||||
Goldman Sachs Group, Inc. | 1,313 | 502,289 | |||||||||
Morgan Stanley | 27,426 | 2,692,136 | |||||||||
State Street Corp. | 24,786 | 2,305,098 | |||||||||
10,154,794 |
Shares | Value(a) | ||||||||||
Commercial Banks (4.1%) | |||||||||||
Bank of America Corp. | 148,685 | $ | 6,614,996 | ||||||||
PNC Financial Services Group, Inc. | 4,185 | 839,176 | |||||||||
Wells Fargo & Co. | 49,192 | 2,360,232 | |||||||||
9,814,404 | |||||||||||
Diversified Financial Services (0.7%) | |||||||||||
Equitable Holdings, Inc. | 50,326 | 1,650,189 | |||||||||
Insurance (7.5%) | |||||||||||
American International Group, Inc. | 122,177 | 6,946,984 | |||||||||
Chubb Ltd. (c) | 21,505 | 4,157,132 | |||||||||
Hartford Financial Services Group, Inc. | 42,405 | 2,927,641 | |||||||||
Marsh & McLennan Cos., Inc. | 4,197 | 729,522 | |||||||||
MetLife, Inc. | 14,338 | 895,982 | |||||||||
Travelers Cos., Inc. | 14,472 | 2,263,855 | |||||||||
17,921,116 | |||||||||||
Health Care (18.8%) | |||||||||||
Biotechnology (1.6%) | |||||||||||
AbbVie, Inc. | 28,088 | 3,803,115 | |||||||||
Health Care Equipment & Supplies (5.3%) | |||||||||||
Abbott Laboratories | 3,522 | 495,686 | |||||||||
Becton Dickinson and Co. | 6,599 | 1,659,516 | |||||||||
Danaher Corp. | 19,699 | 6,481,168 | |||||||||
Medtronic PLC (c) | 33,482 | 3,463,713 | |||||||||
STERIS PLC (c) | 2,000 | 486,820 | |||||||||
Stryker Corp. | 818 | 218,750 | |||||||||
12,805,653 | |||||||||||
Health Care Providers & Services (5.9%) | |||||||||||
Anthem, Inc. | 7,692 | 3,565,550 | |||||||||
Centene Corp. (b) | 38,697 | 3,188,633 | |||||||||
Cigna Corp. | 4,335 | 995,446 | |||||||||
HCA Healthcare, Inc. | 12,397 | 3,185,037 | |||||||||
UnitedHealth Group, Inc. | 6,338 | 3,182,563 | |||||||||
14,117,229 | |||||||||||
Life Sciences Tools & Services (3.6%) | |||||||||||
Agilent Technologies, Inc. | 16,117 | 2,573,079 | |||||||||
PerkinElmer, Inc. | 7,654 | 1,538,914 | |||||||||
Thermo Fisher Scientific, Inc. | 6,731 | 4,491,192 | |||||||||
8,603,185 | |||||||||||
Pharmaceuticals (2.4%) | |||||||||||
AstraZeneca PLC ADR (c) | 63,262 | 3,685,011 | |||||||||
Elanco Animal Health, Inc. (b) | 26,650 | 756,327 | |||||||||
Eli Lilly & Co. | 3,809 | 1,052,122 | |||||||||
Johnson & Johnson | 610 | 104,353 | |||||||||
Merck & Co., Inc. | 1,500 | 114,960 | |||||||||
5,712,773 | |||||||||||
Industrials (12.3%) | |||||||||||
Air Freight & Logistics (0.7%) | |||||||||||
United Parcel Service, Inc. Class B | 8,241 | 1,766,376 | |||||||||
Commercial Services & Supplies (1.2%) | |||||||||||
Republic Services, Inc. | 20,010 | 2,790,395 |
See accompanying notes to financial statements.
93
SFT T. Rowe Price Value Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Construction & Engineering (0.5%) | |||||||||||
Jacobs Engineering Group, Inc. | 8,253 | $ | 1,149,065 | ||||||||
Electrical Equipment (0.7%) | |||||||||||
Hubbell, Inc. | 8,356 | 1,740,304 | |||||||||
Industrial Conglomerates (3.9%) | |||||||||||
General Electric Co. | 65,570 | 6,194,398 | |||||||||
Honeywell International, Inc. | 5,195 | 1,083,210 | |||||||||
Siemens AG (c) | 12,109 | 2,102,457 | |||||||||
9,380,065 | |||||||||||
Machinery (0.9%) | |||||||||||
Deere & Co. | 2,600 | 891,514 | |||||||||
Fortive Corp. | 17,607 | 1,343,238 | |||||||||
2,234,752 | |||||||||||
Professional Services (0.4%) | |||||||||||
United Rentals, Inc. (b) | 2,769 | 920,111 | |||||||||
Road & Rail (4.0%) | |||||||||||
CSX Corp. | 80,105 | 3,011,948 | |||||||||
Norfolk Southern Corp. | 13,407 | 3,991,398 | |||||||||
Union Pacific Corp. | 9,794 | 2,467,402 | |||||||||
9,470,748 | |||||||||||
Information Technology (20.1%) | |||||||||||
Communications Equipment (0.4%) | |||||||||||
Motorola Solutions, Inc. | 3,800 | 1,032,460 | |||||||||
Interactive Media & Services (6.1%) | |||||||||||
Alphabet, Inc. Class C (b) | 5,099 | 14,754,415 | |||||||||
IT Services (1.1%) | |||||||||||
Accenture PLC – Class A (c) | 4,300 | 1,782,565 | |||||||||
Cognizant Technology Solutions Corp. – Class A | 2,700 | 239,544 | |||||||||
Mastercard, Inc. Class A | 1,500 | 538,980 | |||||||||
2,561,089 | |||||||||||
Semiconductors & Semiconductor Equipment (5.8%) | |||||||||||
Analog Devices, Inc. | 6,988 | 1,228,281 | |||||||||
Applied Materials, Inc. | 14,505 | 2,282,507 | |||||||||
ASML Holding NV (c) | 1,822 | 1,450,567 | |||||||||
Broadcom, Inc. | 6,489 | 4,317,845 | |||||||||
KLA Corp. | 4,082 | 1,755,709 | |||||||||
Lam Research Corp. | 1,180 | 848,597 | |||||||||
QUALCOMM, Inc. | 10,509 | 1,921,781 | |||||||||
13,805,287 | |||||||||||
Software (6.7%) | |||||||||||
Microsoft Corp. | 35,860 | 12,060,435 | |||||||||
Salesforce.com, Inc. (b) | 15,351 | 3,901,150 | |||||||||
15,961,585 | |||||||||||
Leisure and Consumer Staples (0.6%) | |||||||||||
Beverages (0.6%) | |||||||||||
Keurig Dr Pepper, Inc. | 41,346 | 1,524,014 | |||||||||
Materials (6.4%) | |||||||||||
Chemicals (3.8%) | |||||||||||
Air Products & Chemicals, Inc. | 3,100 | 943,206 |
Shares | Value(a) | ||||||||||
International Flavors & Fragrances, Inc. | 9,627 | $ | 1,450,308 | ||||||||
Linde PLC (c) | 10,087 | 3,494,439 | |||||||||
Sherwin-Williams Co. | 9,336 | 3,287,766 | |||||||||
9,175,719 | |||||||||||
Commercial Services & Supplies (0.1%) | |||||||||||
Avery Dennison Corp. | 630 | 136,439 | |||||||||
Construction Materials (0.8%) | |||||||||||
Martin Marietta Materials, Inc. | 2,890 | 1,273,103 | |||||||||
Vulcan Materials Co. | 3,283 | 681,485 | |||||||||
1,954,588 | |||||||||||
Containers & Packaging (1.3%) | |||||||||||
Packaging Corp. of America | 5,381 | 732,623 | |||||||||
WestRock Co. | 55,370 | 2,456,213 | |||||||||
3,188,836 | |||||||||||
Metals & Mining (0.4%) | |||||||||||
BHP Group Ltd. ADR (c) | 14,589 | 880,446 | |||||||||
Real Estate (4.8%) | |||||||||||
Health Care REITs (0.3%) | |||||||||||
Welltower, Inc. | 7,557 | 648,164 | |||||||||
Industrial REITs (2.7%) | |||||||||||
Prologis, Inc. | 38,711 | 6,517,384 | |||||||||
Office REITs (0.4%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 4,001 | 892,063 | |||||||||
Residential REITs (1.2%) | |||||||||||
Camden Property Trust | 9,954 | 1,778,581 | |||||||||
Equity LifeStyle Properties, Inc. | 12,398 | 1,086,808 | |||||||||
2,865,389 | |||||||||||
Specialized REITs (0.2%) | |||||||||||
Weyerhaeuser Co. | 12,649 | 520,886 | |||||||||
Utilities (7.1%) | |||||||||||
Electric Utilities (4.7%) | |||||||||||
Entergy Corp. | 7,606 | 856,816 | |||||||||
Eversource Energy | 7,076 | 643,774 | |||||||||
NextEra Energy, Inc. | 40,212 | 3,754,192 | |||||||||
PG&E Corp. (b) | 84,512 | 1,025,976 | |||||||||
Southern Co. | 44,726 | 3,067,309 | |||||||||
Xcel Energy, Inc. | 28,858 | 1,953,687 | |||||||||
11,301,754 | |||||||||||
Independent Power Producers & Energy Traders (0.2%) | |||||||||||
AES Corp. | 21,672 | 526,630 | |||||||||
Multi-Utilities (2.2%) | |||||||||||
CMS Energy Corp. | 4,757 | 309,443 | |||||||||
Dominion Energy, Inc. | 17,867 | 1,403,631 | |||||||||
NiSource, Inc. | 10,500 | 289,905 | |||||||||
Sempra Energy | 23,406 | 3,096,146 | |||||||||
5,099,125 | |||||||||||
Total common stocks (cost: $194,075,746) | 236,979,670 |
See accompanying notes to financial statements.
94
SFT T. Rowe Price Value Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Preferred Stocks (0.2%) | |||||||||||
Utilities (0.2%) | |||||||||||
AES Corp. , 6.875% | 2,456 | $ | 235,776 | ||||||||
Southern Co. Series 2019, 6.750% | 5,052 | 271,545 | |||||||||
Total Preferred Stocks (cost: $500,617) | 507,321 | ||||||||||
Short-Term Securities (0.5%) | |||||||||||
Investment Companies (0.5%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 789,586 | 789,586 | |||||||||
T. Rowe Price Reserve Investment Fund, current rate 0.060% | 509,623 | 509,623 | |||||||||
Total short-term securities (cost: $1,299,209) | 1,299,209 | ||||||||||
Total investments in securities (cost: $195,875,572) (d) | 238,786,200 | ||||||||||
Cash and other assets in excess of liabilities (0.2)% | 546,626 | ||||||||||
Total net assets (100.0%) | $ | 239,332,826 |
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 9.0% of net assets in foreign securities at December 31, 2021.
(d) At December 31, 2021, the cost of investments for federal income tax purposes was $196,818,874. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 43,169,283 | |||||
Gross unrealized depreciation | (1,201,957 | ) | |||||
Net unrealized appreciation | $ | 41,967,326 |
See accompanying notes to financial statements.
95
SFT Wellington Core Equity Fund
Investments in Securities
December 31, 2021
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (99.4%) | |||||||||||
Communications (1.0%) | |||||||||||
Diversified Telecommunication Services (1.0%) | |||||||||||
Verizon Communications, Inc. | 26,394 | $ | 1,371,432 | ||||||||
Consumer Discretionary (14.8%) | |||||||||||
Automobiles (1.8%) | |||||||||||
Ford Motor Co. | 49,809 | 1,034,533 | |||||||||
Tesla, Inc. (b) | 1,456 | 1,538,672 | |||||||||
2,573,205 | |||||||||||
Entertainment (1.6%) | |||||||||||
Walt Disney Co. (b) | 14,883 | 2,305,228 | |||||||||
Hotels, Restaurants & Leisure (2.6%) | |||||||||||
Airbnb, Inc. – Class A (b) | 4,912 | 817,799 | |||||||||
Booking Holdings, Inc. (b) | 432 | 1,036,467 | |||||||||
McDonald's Corp. | 7,078 | 1,897,400 | |||||||||
3,751,666 | |||||||||||
Internet & Catalog Retail (5.0%) | |||||||||||
Amazon.com, Inc. (b) | 1,596 | 5,321,607 | |||||||||
Netflix, Inc. (b) | 3,281 | 1,976,605 | |||||||||
7,298,212 | |||||||||||
Specialty Retail (1.6%) | |||||||||||
TJX Cos., Inc. | 30,532 | 2,317,989 | |||||||||
Textiles, Apparel & Luxury Goods (2.2%) | |||||||||||
NIKE, Inc. – Class B | 11,003 | 1,833,870 | |||||||||
VF Corp. | 19,105 | 1,398,868 | |||||||||
3,232,738 | |||||||||||
Consumer Staples (6.3%) | |||||||||||
Beverages (2.2%) | |||||||||||
Constellation Brands, Inc. – Class A | 7,400 | 1,857,178 | |||||||||
Monster Beverage Corp. (b) | 13,364 | 1,283,478 | |||||||||
3,140,656 | |||||||||||
Food & Staples Retailing (1.1%) | |||||||||||
Walmart, Inc. | 10,871 | 1,572,925 | |||||||||
Household Products (3.0%) | |||||||||||
Colgate-Palmolive Co. | 15,726 | 1,342,057 | |||||||||
Procter & Gamble Co. | 18,650 | 3,050,767 | |||||||||
4,392,824 | |||||||||||
Energy (1.2%) | |||||||||||
Oil, Gas & Consumable Fuels (1.2%) | |||||||||||
EOG Resources, Inc. | 20,244 | 1,798,275 | |||||||||
Financial (11.8%) | |||||||||||
Capital Markets (3.7%) | |||||||||||
BlackRock, Inc. | 1,751 | 1,603,145 | |||||||||
Charles Schwab Corp. | 17,077 | 1,436,176 | |||||||||
Morgan Stanley | 23,364 | 2,293,410 | |||||||||
5,332,731 |
Shares | Value(a) | ||||||||||
Commercial Banks (5.2%) | |||||||||||
Bank of America Corp. | 72,345 | $ | 3,218,629 | ||||||||
JPMorgan Chase & Co. | 20,728 | 3,282,279 | |||||||||
PNC Financial Services Group, Inc. | 4,787 | 959,889 | |||||||||
7,460,797 | |||||||||||
Consumer Finance (1.3%) | |||||||||||
American Express Co. | 11,543 | 1,888,435 | |||||||||
Insurance (1.6%) | |||||||||||
Chubb Ltd. (c) | 7,001 | 1,353,364 | |||||||||
Progressive Corp. | 9,745 | 1,000,324 | |||||||||
2,353,688 | |||||||||||
Health Care (14.4%) | |||||||||||
Biotechnology (1.1%) | |||||||||||
Regeneron Pharmaceuticals, Inc. (b) | 2,550 | 1,610,376 | |||||||||
Health Care Equipment & Supplies (5.1%) | |||||||||||
Abbott Laboratories | 10,202 | 1,435,829 | |||||||||
Baxter International, Inc. | 16,113 | 1,383,140 | |||||||||
Becton Dickinson and Co. | 5,348 | 1,344,915 | |||||||||
Danaher Corp. | 5,897 | 1,940,172 | |||||||||
Hologic, Inc. (b) | 16,375 | 1,253,670 | |||||||||
7,357,726 | |||||||||||
Health Care Providers & Services (3.5%) | |||||||||||
Laboratory Corp. of America Holdings (b) | 4,092 | 1,285,747 | |||||||||
UnitedHealth Group, Inc. | 7,514 | 3,773,080 | |||||||||
5,058,827 | |||||||||||
Life Sciences Tools & Services (1.7%) | |||||||||||
Thermo Fisher Scientific, Inc. | 3,675 | 2,452,107 | |||||||||
Pharmaceuticals (3.0%) | |||||||||||
Eli Lilly & Co. | 8,475 | 2,340,965 | |||||||||
Merck & Co., Inc. | 27,253 | 2,088,670 | |||||||||
4,429,635 | |||||||||||
Industrials (8.5%) | |||||||||||
Aerospace & Defense (1.1%) | |||||||||||
Raytheon Technologies Corp. | 18,017 | 1,550,543 | |||||||||
Air Freight & Logistics (1.1%) | |||||||||||
FedEx Corp. | 6,099 | 1,577,445 | |||||||||
Building Products (1.1%) | |||||||||||
Fortune Brands Home & Security, Inc. | 14,368 | 1,535,939 | |||||||||
Commercial Services & Supplies (0.6%) | |||||||||||
Republic Services, Inc. | 5,868 | 818,293 | |||||||||
Electrical Equipment (1.0%) | |||||||||||
AMETEK, Inc. | 10,311 | 1,516,129 |
See accompanying notes to financial statements.
96
SFT Wellington Core Equity Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Machinery (2.6%) | |||||||||||
Deere & Co. | 3,727 | $ | 1,277,951 | ||||||||
IDEX Corp. | 5,371 | 1,269,275 | |||||||||
Illinois Tool Works, Inc. | 5,109 | 1,260,901 | |||||||||
3,808,127 | |||||||||||
Professional Services (1.0%) | |||||||||||
Equifax, Inc. | 5,029 | 1,472,441 | |||||||||
Information Technology (36.6%) | |||||||||||
Communications Equipment (2.4%) | |||||||||||
F5, Inc. (b) | 5,627 | 1,376,983 | |||||||||
Motorola Solutions, Inc. | 7,431 | 2,019,003 | |||||||||
3,395,986 | |||||||||||
Computers & Peripherals (5.7%) | |||||||||||
Apple, Inc. | 39,225 | 6,965,183 | |||||||||
NetApp, Inc. | 14,017 | 1,289,424 | |||||||||
8,254,607 | |||||||||||
Electronic Equipment, Instruments & Components (2.0%) | |||||||||||
CDW Corp. | 7,255 | 1,485,679 | |||||||||
Corning, Inc. | 38,257 | 1,424,308 | |||||||||
2,909,987 | |||||||||||
Interactive Media & Services (8.6%) | |||||||||||
Alphabet, Inc. – Class A (b) | 2,802 | 8,117,506 | |||||||||
GoDaddy, Inc. – Class A (b) | 10,544 | 894,764 | |||||||||
Meta Platforms, Inc. – Class A (b) | 10,075 | 3,388,726 | |||||||||
12,400,996 | |||||||||||
IT Services (3.4%) | |||||||||||
Fidelity National Information Services, Inc. | 9,721 | 1,061,047 | |||||||||
Global Payments, Inc. | 6,443 | 870,965 | |||||||||
Leidos Holdings, Inc. | 10,369 | 921,804 | |||||||||
Mastercard, Inc. Class A | 5,821 | 2,091,602 | |||||||||
4,945,418 | |||||||||||
Semiconductors & Semiconductor Equipment (6.0%) | |||||||||||
Advanced Micro Devices, Inc. (b) | 11,538 | 1,660,318 | |||||||||
KLA Corp. | 3,401 | 1,462,804 | |||||||||
NVIDIA Corp. | 2,777 | 816,743 |
Shares | Value(a) | ||||||||||
QUALCOMM, Inc. | 9,024 | $ | 1,650,219 | ||||||||
Teradyne, Inc. | 6,200 | 1,013,886 | |||||||||
Texas Instruments, Inc. | 11,116 | 2,095,033 | |||||||||
8,699,003 | |||||||||||
Software (8.5%) | |||||||||||
Microsoft Corp. | 24,118 | 8,111,366 | |||||||||
Palo Alto Networks, Inc. (b) | 1,836 | 1,022,211 | |||||||||
Salesforce.com, Inc. (b) | 7,946 | 2,019,317 | |||||||||
Workday, Inc. – Class A (b) | 4,381 | 1,196,802 | |||||||||
12,349,696 | |||||||||||
Materials (1.1%) | |||||||||||
Chemicals (1.1%) | |||||||||||
PPG Industries, Inc. | 9,213 | 1,588,690 | |||||||||
Real Estate (1.7%) | |||||||||||
Specialized REITs (1.7%) | |||||||||||
American Tower Corp. | 5,195 | 1,519,538 | |||||||||
Gaming and Leisure Properties, Inc. | 18,984 | 923,761 | |||||||||
2,443,299 | |||||||||||
Utilities (2.0%) | |||||||||||
Electric Utilities (2.0%) | |||||||||||
American Electric Power Co., Inc. | 17,175 | 1,528,060 | |||||||||
Duke Energy Corp. | 12,686 | 1,330,761 | |||||||||
2,858,821 | |||||||||||
Total common stocks (cost: $82,970,740) | 143,824,892 | ||||||||||
Short-Term Securities (0.7%) | |||||||||||
Investment Companies (0.7%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.025% | 1,032,020 | 1,032,020 | |||||||||
Total short-term securities (cost: $1,032,020) | 1,032,020 | ||||||||||
Total investments in securities (cost: $84,002,760) (d) | 144,856,912 | ||||||||||
Liabilities in excess of cash and other assets (-0.1%) | (97,030 | ) | |||||||||
Total net assets (100.0%) | $ | 144,759,882 |
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 0.9% of net assets in foreign securities at December 31, 2021.
(d) At December 31, 2021 the cost of investments for federal income tax purposes was $84,091,033. The aggregate unrealized appreciation and depreciation of investments based on this cost were:
Gross unrealized appreciation | $ | 60,980,654 | |||||
Gross unrealized depreciation | (214,775 | ) | |||||
Net unrealized appreciation | $ | 60,765,879 |
See accompanying notes to financial statements.
97
Securian Funds Trust
Statements of Assets and Liabilities
December 31, 2021
SFT Balanced Stabilization Fund(a) | SFT Core Bond Fund | SFT Delaware IvySM Growth Fund(a) | SFT Delaware IvySM Small Cap Growth Fund(a) | SFT Equity Stabilization Fund(a) | SFT Government Money Market Fund | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Investments in securities, at market value – see accompanying schedule for detailed listing* | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 479,854,108 | $ | 528,010,420 | $ | 705,912,276 | $ | 204,663,715 | $ | 363,955,746 | $ | 197,561,116 | |||||||||||||||
Affiliated issuers (note 8) | 287,214,638 | – | – | – | – | – | |||||||||||||||||||||
Cash on demand deposit | 9,000,000 | 95,326 | – | – | 7,225,000 | – | |||||||||||||||||||||
Due from broker1 | – | 200,000 | – | – | 500,000 | – | |||||||||||||||||||||
Foreign currency on deposit2 | – | – | – | – | – | – | |||||||||||||||||||||
Receivable: | |||||||||||||||||||||||||||
Fund shares sold | 234,701 | – | – | – | 862,983 | – | |||||||||||||||||||||
Investment securities sold (including paydowns) | – | 5 | – | 215,943 | – | – | |||||||||||||||||||||
Dividends and accrued interest | 1,362,701 | 2,499,974 | 184,548 | 45,788 | 132,105 | 327 | |||||||||||||||||||||
Refundable foreign income taxes withheld | – | – | – | – | – | – | |||||||||||||||||||||
Adviser (note 4) | – | – | – | – | – | 96,775 | |||||||||||||||||||||
Variation margin on futures contracts | – | 30,004 | – | – | – | – | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | – | – | – | – | – | – | |||||||||||||||||||||
Prepaid expenses | 9,997 | 22,069 | 22,743 | 13,146 | 18,543 | 17,453 | |||||||||||||||||||||
Total assets | 777,676,145 | 530,857,798 | 706,119,567 | 204,938,592 | 372,694,377 | 197,675,671 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Due to custodian | – | – | – | – | – | – | |||||||||||||||||||||
Due to broker3 | – | – | – | – | – | – | |||||||||||||||||||||
Payable: | |||||||||||||||||||||||||||
Fund shares repurchased | – | 161,814 | 89,603 | 35,507 | – | 470,241 | |||||||||||||||||||||
Investment securities purchased | 47,571,505 | – | – | – | – | – | |||||||||||||||||||||
Adviser | 500,795 | 300,270 | 532,146 | 193,989 | 254,301 | 92,682 | |||||||||||||||||||||
Variation margin on futures contracts | – | – | – | – | 72,780 | – | |||||||||||||||||||||
Accrued expenses | 59,120 | 65,069 | 61,301 | 42,870 | 33,809 | 34,399 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | – | – | – | – | – | – | |||||||||||||||||||||
Options written at value4 | 1,896 | – | – | – | 752 | – | |||||||||||||||||||||
Total liabilities | 48,133,316 | 527,153 | 683,050 | 272,366 | 361,642 | 597,322 | |||||||||||||||||||||
Net assets applicable to outstanding capital stock | $ | 729,542,829 | $ | 530,330,645 | $ | 705,436,517 | $ | 204,666,226 | $ | 372,332,735 | $ | 197,078,349 | |||||||||||||||
Net Assets Consist of: | |||||||||||||||||||||||||||
Paid in capital** | $ | 419,649,332 | $ | 407,499,855 | $ | (8,278,403 | ) | $ | 28,560,501 | $ | 279,376,072 | $ | 197,076,283 | ||||||||||||||
Total distributable earnings | 309,893,497 | 122,830,790 | 713,714,920 | 176,105,725 | 92,956,663 | 2,066 | |||||||||||||||||||||
Net assets | $ | 729,542,829 | $ | 530,330,645 | $ | 705,436,517 | $ | 204,666,226 | $ | 372,332,735 | $ | 197,078,349 | |||||||||||||||
Net assets by class: | |||||||||||||||||||||||||||
Class 1 | $ | N/A | $ | 7,751,122 | $ | N/A | $ | N/A | $ | N/A | $ | N/A | |||||||||||||||
Class 2 | 729,542,829 | 522,579,523 | 705,436,517 | 204,666,226 | 372,332,735 | 197,078,349 | |||||||||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||||||||||
Class 1 | N/A | 2.747 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Class 2 | 21.210 | 2.659 | 37.202 | 26.750 | 14.363 | 1.000 | |||||||||||||||||||||
* Identified cost | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 451,570,950 | $ | 516,474,629 | $ | 354,574,858 | $ | 153,192,131 | $ | 286,702,323 | $ | 197,561,116 | |||||||||||||||
Affiliated issuers | 107,000,000 | – | – | – | – | – | |||||||||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||||||||||
Class 1 | N/A | 2,822,011 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
Class 2 | 34,397,043 | 196,529,659 | 18,962,349 | 7,651,143 | 25,922,790 | 197,078,349 | |||||||||||||||||||||
1 Collateral for open future contracts | $ | – | $ | 200,000 | $ | – | $ | – | $ | 500,000 | $ | – | |||||||||||||||
2 Foreign currency on deposit (cost) | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||||||
3 Collateral for open foreign currency contracts | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||||||
4 Premiums received | $ | 2,133 | $ | – | $ | – | $ | – | $ | 846 | $ | – |
(a) See Note 1 of accompanying notes to financial statements regarding former names of the funds.
See accompanying notes to financial statements.
98
SFT Index 400 Mid-Cap Fund | SFT Index 500 Fund | SFT International Bond Fund | SFT Real Estate Securities Fund | SFT T. Rowe Price Value Fund | SFT Wellington Core Equity Fund | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Investments in securities, at market value – see accompanying schedule for detailed listing* | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 233,155,930 | $ | 1,227,692,794 | $ | 90,046,583 | $ | 173,613,690 | $ | 238,786,200 | $ | 144,856,912 | |||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Cash on demand deposit | – | 50,338 | – | – | – | 15,363 | |||||||||||||||||||||
Due from broker1 | – | – | 315,449 | – | – | – | |||||||||||||||||||||
Foreign currency on deposit2 | – | – | 612 | – | – | – | |||||||||||||||||||||
Receivable: | |||||||||||||||||||||||||||
Fund shares sold | 1,901 | 12,331 | 147 | 953 | 58,744 | – | |||||||||||||||||||||
Investment securities sold (including paydowns) | – | – | – | 93,766 | 1,723,184 | – | |||||||||||||||||||||
Dividends and accrued interest | 214,425 | 721,652 | 614,005 | 442,312 | 179,797 | 67,807 | |||||||||||||||||||||
Refundable foreign income taxes withheld | – | – | 25,146 | – | 75 | – | |||||||||||||||||||||
Adviser (note 4) | – | – | – | – | – | – | |||||||||||||||||||||
Variation margin on futures contracts | 5,047 | – | 84,625 | – | – | – | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | – | – | 691,299 | – | – | – | |||||||||||||||||||||
Prepaid expenses | 12,698 | 29,558 | 11,308 | 12,212 | 32,838 | 12,326 | |||||||||||||||||||||
Total assets | 233,390,001 | 1,228,506,673 | 91,789,174 | 174,162,933 | 240,780,838 | 144,952,408 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Due to custodian | – | – | – | – | 173,371 | – | |||||||||||||||||||||
Due to broker3 | – | – | 450,000 | – | – | – | |||||||||||||||||||||
Payable: | |||||||||||||||||||||||||||
Fund shares repurchased | 113,575 | 67,423 | 9,886 | 95,813 | – | 44,698 | |||||||||||||||||||||
Investment securities purchased | – | – | – | 85,994 | 1,034,951 | – | |||||||||||||||||||||
Adviser | 79,001 | 330,393 | 75,548 | 138,699 | 189,792 | 114,840 | |||||||||||||||||||||
Variation margin on futures contracts | – | 73,023 | – | – | – | – | |||||||||||||||||||||
Accrued expenses | 42,751 | 79,995 | 57,063 | 34,847 | 49,898 | 32,988 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | – | – | 443,282 | – | – | – | |||||||||||||||||||||
Options written at value4 | – | – | – | – | – | – | |||||||||||||||||||||
Total liabilities | 235,327 | 550,834 | 1,035,779 | 355,353 | 1,448,012 | 192,526 | |||||||||||||||||||||
Net assets applicable to outstanding capital stock | $ | 233,154,674 | $ | 1,227,955,839 | $ | 90,753,395 | $ | 173,807,580 | $ | 239,332,826 | $ | 144,759,882 | |||||||||||||||
Net Assets Consist of: | |||||||||||||||||||||||||||
Paid in capital** | $ | (47,595,099 | ) | $ | (115,766,537 | ) | $ | 97,960,279 | $ | 8,466,884 | $ | 65,164,922 | $ | 18,915,519 | |||||||||||||
Total distributable earnings | 280,749,773 | 1,343,722,376 | (7,206,884 | ) | 165,340,696 | 174,167,904 | 125,844,363 | ||||||||||||||||||||
Net assets | $ | 233,154,674 | $ | 1,227,955,839 | $ | 90,753,395 | $ | 173,807,580 | $ | 239,332,826 | $ | 144,759,882 | |||||||||||||||
Net assets by class: | |||||||||||||||||||||||||||
Class 1 | $ | 25,326,953 | $ | 365,210,241 | $ | 1,778,894 | $ | 13,201,417 | $ | N/A | $ | 3,019,615 | |||||||||||||||
Class 2 | 207,827,721 | 862,745,598 | 88,974,501 | 160,606,163 | 239,332,826 | 141,740,267 | |||||||||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||||||||||
Class 1 | 7.786 | 20.191 | 2.367 | 7.964 | N/A | 27.698 | |||||||||||||||||||||
Class 2 | 7.538 | 19.547 | 2.291 | 7.709 | 22.533 | 27.173 | |||||||||||||||||||||
* Identified cost | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 151,251,711 | $ | 365,350,194 | $ | 92,102,462 | $ | 127,682,499 | $ | 195,875,572 | $ | 84,002,760 | |||||||||||||||
Affiliated issuers | – | – | – | – | – | – | |||||||||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||||||||||
Class 1 | 3,252,680 | 18,087,448 | 751,552 | 1,657,717 | N/A | 109,018 | |||||||||||||||||||||
Class 2 | 27,570,966 | 44,136,167 | 38,833,423 | 20,833,661 | 10,621,291 | 5,216,297 | |||||||||||||||||||||
1 Collateral for open future contracts | $ | – | $ | – | $ | 315,449 | $ | – | $ | – | $ | – | |||||||||||||||
2 Foreign currency on deposit (cost) | $ | – | $ | – | $ | 615 | $ | – | $ | – | $ | – | |||||||||||||||
3 Collateral for open foreign currency contracts | $ | – | $ | – | $ | (450,000 | ) | $ | – | $ | – | $ | – | ||||||||||||||
4 Premiums received | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – |
99
Securian Funds Trust
Statements of Operations
Year ended December 31, 2021
SFT Balanced Stabilization Fund(a) | SFT Core Bond Fund | SFT Delaware IvySM Growth Fund(a) | SFT Delaware IvySM Small Cap Growth Fund(a) | SFˇT Equity Stabilization Fund(a) | SFT Government Money Market Fund | ||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||
Interest1 | $ | 6,093,410 | $ | 12,881,595 | $ | 16,441 | $ | 54,084 | $ | – | $ | 73,273 | |||||||||||||||
Dividends1 | 516,165 | 2,231 | 3,764,785 | 777,649 | 7,118,493 | 7,284 | |||||||||||||||||||||
Foreign tax withholding | – | – | (14,608 | ) | – | – | – | ||||||||||||||||||||
Total investment income | 6,609,575 | 12,883,826 | 3,766,618 | 831,733 | 7,118,493 | 80,557 | |||||||||||||||||||||
Expenses (note 4): | |||||||||||||||||||||||||||
Investment advisory fee | 3,898,232 | 2,046,872 | 4,225,644 | 1,854,741 | 1,979,016 | 517,639 | |||||||||||||||||||||
Rule 12b-1 fees | 1,771,924 | 1,263,856 | 1,636,270 | 545,512 | 899,553 | 485,043 | |||||||||||||||||||||
Audit and accounting services | 248,324 | 276,471 | 185,372 | 113,730 | 125,673 | 132,107 | |||||||||||||||||||||
Administrative services fee | 36,901 | 60,899 | 34,000 | 34,000 | 33,900 | 55,099 | |||||||||||||||||||||
Legal fees | 31,389 | 30,695 | 62,658 | 39,323 | 32,942 | 31,711 | |||||||||||||||||||||
Custodian fees | 12,223 | 13,752 | 12,208 | 16,123 | 12,051 | 9,832 | |||||||||||||||||||||
Printing and shareholder reports | 8,353 | 8,420 | 17,470 | 11,884 | 8,353 | 8,226 | |||||||||||||||||||||
Trustee's fees | 28,801 | 28,801 | 28,801 | 28,801 | 28,801 | 28,801 | |||||||||||||||||||||
S&P licensing fee | – | – | – | – | – | – | |||||||||||||||||||||
Insurance | 10,209 | 10,209 | 10,209 | 10,209 | 10,209 | 10,209 | |||||||||||||||||||||
Other | 3,824 | 16,716 | 65,572 | 20,942 | 12,745 | 5,254 | |||||||||||||||||||||
Total expenses before fees waived | 6,050,180 | 3,756,691 | 6,278,204 | 2,675,265 | 3,143,243 | 1,283,921 | |||||||||||||||||||||
Less fees waived (note 4) | (120,740 | ) | – | – | – | (87,034 | ) | (1,203,364 | ) | ||||||||||||||||||
Total expenses net of fees waived | 5,929,440 | 3,756,691 | 6,278,204 | 2,675,265 | 3,056,209 | 80,557 | |||||||||||||||||||||
Net investment income (loss) | 680,135 | 9,127,135 | (2,511,586 | ) | (1,843,532 | ) | 4,062,284 | – | |||||||||||||||||||
Realized gains (losses) on investments and foreign currencies: | |||||||||||||||||||||||||||
Investments (note 3) | |||||||||||||||||||||||||||
Unaffiliated issuers | (4,564,005 | ) | 639,191 | 80,986,462 | 35,928,303 | 7,366,975 | – | ||||||||||||||||||||
Written options contracts | 2,830,676 | – | – | – | 1,453,697 | – | |||||||||||||||||||||
Foreign forward currency contracts | – | – | – | – | – | – | |||||||||||||||||||||
Foreign currency transactions | – | – | – | – | – | – | |||||||||||||||||||||
Net increase from litigation payments | – | 31,764 | 8,363 | 5,811 | – | – | |||||||||||||||||||||
Futures contracts | 32,506,886 | (1,138,041 | ) | – | – | 4,828,219 | – | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||
Unaffiliated issuers, net of foreign capital gains tax | (4,070,547 | ) | (11,547,040 | ) | 95,694,143 | (23,831,963 | ) | 23,587,005 | – | ||||||||||||||||||
Affiliated issuers (note 8) | 63,436,647 | – | – | – | – | – | |||||||||||||||||||||
Written options contracts | 6,454 | – | – | – | 2,358 | – | |||||||||||||||||||||
Translation of assets and liabilities in foreign currency | – | – | – | – | – | – | |||||||||||||||||||||
Foreign forward currency contracts | – | – | – | – | – | – | |||||||||||||||||||||
Futures contracts | (1,797,365 | ) | 223,520 | – | – | (74,986 | ) | – | |||||||||||||||||||
Net gains (losses) on investments | 88,348,746 | (11,790,606 | ) | 176,688,968 | 12,102,151 | 37,163,268 | – | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 89,028,881 | $ | (2,663,471 | ) | $ | 174,177,382 | $ | 10,258,619 | $ | 41,225,552 | $ | – | ||||||||||||||
1 All income is from unaffiliated issuers. | |||||||||||||||||||||||||||
2 Change in unrealized appreciation or depreciation on deferred foreign capital gains tax | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – |
(a) See Note 1 of accompanying notes to financial statements regarding former names of the funds.
See accompanying notes to financial statements.
100
SFT Index 400 Mid-Cap Fund | SFT Index 500 Fund | SFT International Bond Fund | SFT Real Estate Securities Fund | SFT T. Rowe Price Value Fund | SFT Wellington Core Equity Fund | ||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||
Interest1 | $ | 1,074 | $ | – | $ | 2,095,270 | $ | – | $ | – | $ | 67 | |||||||||||||||
Dividends1 | 2,790,203 | 15,426,345 | 753 | 2,889,002 | 3,293,814 | 1,722,655 | |||||||||||||||||||||
Foreign tax withholding | (719 | ) | (2,080 | ) | (87,928 | ) | – | (27,125 | ) | – | |||||||||||||||||
Total investment income | 2,790,558 | 15,424,265 | 2,008,095 | 2,889,002 | 3,266,689 | 1,722,722 | |||||||||||||||||||||
Expenses (note 4): | |||||||||||||||||||||||||||
Investment advisory fee | 337,566 | 1,615,461 | 548,221 | 1,031,886 | 1,514,766 | 893,809 | |||||||||||||||||||||
Rule 12b-1 fees | 511,621 | 1,995,773 | 224,263 | 346,969 | 565,211 | 338,494 | |||||||||||||||||||||
Audit and accounting services | 135,726 | 255,230 | 152,547 | 124,350 | 115,272 | 119,023 | |||||||||||||||||||||
Administrative services fee | 34,001 | 34,000 | 65,900 | 34,000 | 34,000 | 34,000 | |||||||||||||||||||||
Legal fees | 30,697 | 44,446 | 69,092 | 30,697 | 31,742 | 30,697 | |||||||||||||||||||||
Custodian fees | 15,442 | 14,772 | 43,188 | 12,059 | 39,957 | 14,042 | |||||||||||||||||||||
Printing and shareholder reports | 8,353 | 8,353 | 12,815 | 8,353 | 8,353 | 8,353 | |||||||||||||||||||||
Trustee's fees | 28,801 | 28,801 | 28,801 | 28,801 | 28,801 | 28,801 | |||||||||||||||||||||
S&P licensing fee | 16,277 | 63,255 | – | – | – | – | |||||||||||||||||||||
Insurance | 10,209 | 10,209 | 10,209 | 10,209 | 10,209 | 10,209 | |||||||||||||||||||||
Other | 9,371 | 30,960 | 21,280 | 7,170 | 20,975 | 6,577 | |||||||||||||||||||||
Total expenses before fees waived | 1,138,064 | 4,101,260 | 1,176,316 | 1,634,494 | 2,369,286 | 1,484,005 | |||||||||||||||||||||
Less fees waived (note 4) | – | – | – | – | – | – | |||||||||||||||||||||
Total expenses net of fees waived | 1,138,064 | 4,101,260 | 1,176,316 | 1,634,494 | 2,369,286 | 1,484,005 | |||||||||||||||||||||
Net investment income (loss) | 1,652,494 | 11,323,005 | 831,779 | 1,254,508 | 897,403 | 238,717 | |||||||||||||||||||||
Realized gains (losses) on investments and foreign currencies: | |||||||||||||||||||||||||||
Investments (note 3) | |||||||||||||||||||||||||||
Unaffiliated issuers | 23,632,407 | 50,629,185 | (6,747,469 | ) | 18,190,448 | 55,575,486 | 14,589,182 | ||||||||||||||||||||
Written options contracts | – | – | – | – | – | – | |||||||||||||||||||||
Foreign forward currency contracts | – | – | (2,919,206 | ) | – | – | – | ||||||||||||||||||||
Foreign currency transactions | – | – | (146,729 | ) | – | (2,633 | ) | – | |||||||||||||||||||
Net increase from litigation payments | 9,537 | 7,297 | – | – | 19,489 | 12,985 | |||||||||||||||||||||
Futures contracts | 2,206,307 | 3,962,145 | (70,565 | ) | – | – | – | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||
Unaffiliated issuers, net of foreign capital gains tax | 19,785,116 | 208,197,617 | 2,843,592 | 34,305,944 | 696,219 | 14,573,796 | |||||||||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Written options contracts | – | – | – | – | – | – | |||||||||||||||||||||
Translation of assets and liabilities in foreign currency | – | – | (24,586 | ) | – | 98 | – | ||||||||||||||||||||
Foreign forward currency contracts | – | – | 2,689,823 | – | – | – | |||||||||||||||||||||
Futures contracts | 22,548 | 429,705 | (116,358 | ) | – | – | – | ||||||||||||||||||||
Net gains (losses) on investments | 45,655,915 | 263,225,949 | (4,491,498 | ) | 52,496,392 | 56,288,659 | 29,175,963 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 47,308,409 | $ | 274,548,954 | $ | (3,659,719 | ) | $ | 53,750,900 | $ | 57,186,062 | $ | 29,414,680 | ||||||||||||||
1 All income is from unaffiliated issuers. | |||||||||||||||||||||||||||
2 Change in unrealized appreciation or depreciation on deferred foreign capital gains tax | $ | – | $ | – | $ | 55,308 | $ | – | $ | – | $ | – |
101
Securian Funds Trust
Statements of Changes in Net Assets
Year ended December 31, 2021 and year ended December 31, 2020
SFT Balanced Stabilization Fund(a) | SFT Core Bond Fund | SFT Delaware IvySM Growth Fund(a) | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income | $ | 680,135 | $ | 2,885,317 | $ | 9,127,135 | $ | 11,094,078 | $ | (2,511,586 | ) | $ | (874,827 | ) | |||||||||||||
Net realized gains (losses) on investments | 30,773,557 | 18,085,375 | (467,086 | ) | 11,188,237 | 80,994,825 | 63,715,946 | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 57,575,189 | 44,245,570 | (11,323,520 | ) | 9,630,011 | 95,694,143 | 86,666,599 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 89,028,881 | 65,216,262 | (2,663,471 | ) | 31,912,326 | 174,177,382 | 149,507,718 | ||||||||||||||||||||
Distributions to shareholders: | |||||||||||||||||||||||||||
From distributable earnings | |||||||||||||||||||||||||||
Class 2 | – | – | – | – | – | – | |||||||||||||||||||||
Decrease in net assets from distributions | – | – | – | – | – | – | |||||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 2,557,649 | 888,112 | – | – | |||||||||||||||||||||
Class 2 | 20,502,040 | 66,737,165 | 57,112,903 | 17,474,501 | 533,469 | 1,136,939 | |||||||||||||||||||||
Value of distributions reinvested | |||||||||||||||||||||||||||
Class 2 | – | – | – | – | – | – | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (321,527 | ) | (766,595 | ) | – | – | |||||||||||||||||||
Class 2 | (58,176,028 | ) | (31,570,215 | ) | (23,367,538 | ) | (40,373,412 | ) | (75,521,572 | ) | (89,240,113 | ) | |||||||||||||||
Increase (decrease) in net assets from capital stock transactions | (37,673,988 | ) | 35,166,950 | 35,981,487 | (22,777,394 | ) | (74,988,103 | ) | (88,103,174 | ) | |||||||||||||||||
Total increase (decrease) in net assets | 51,354,893 | 100,383,212 | 33,318,016 | 9,134,932 | 99,189,279 | 61,404,544 | |||||||||||||||||||||
Net assets at beginning of period | 678,187,936 | 577,804,724 | 497,012,629 | 487,877,697 | 606,247,238 | 544,842,694 | |||||||||||||||||||||
Net assets at end of period | $ | 729,542,829 | $ | 678,187,936 | $ | 530,330,645 | $ | 497,012,629 | $ | 705,436,517 | $ | 606,247,238 | |||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 931,524 | 332,559 | – | – | |||||||||||||||||||||
Class 2 | 1,040,728 | 3,896,625 | 21,495,901 | 6,723,644 | 18,676 | 51,028 | |||||||||||||||||||||
Issued on reinvestment of distributions | |||||||||||||||||||||||||||
Class 2 | – | – | – | – | – | – | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (117,009 | ) | (293,488 | ) | – | – | |||||||||||||||||||
Class 2 | (2,916,842 | ) | (1,828,550 | ) | (8,812,950 | ) | (15,912,214 | ) | (2,287,884 | ) | (3,757,367 | ) | |||||||||||||||
Net change from capital transactions | (1,876,114 | ) | 2,068,075 | 13,497,466 | (9,149,499 | ) | (2,269,208 | ) | (3,706,339 | ) |
(a) See Note 1 of accompanying notes to financial statements regarding former names of the funds.
See accompanying notes to financial statements.
102
SFT Delaware IvySM Small Cap Growth Fund(a) | SFT Equity Stabilization Fund(a) | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | (1,843,532 | ) | $ | (1,423,523 | ) | $ | 4,062,284 | $ | 4,962,934 | |||||||||
Net realized gains (losses) on investments | 35,934,114 | 24,114,747 | 13,648,891 | (20,999,825 | ) | ||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (23,831,963 | ) | 34,510,775 | 23,514,377 | (5,573,289 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 10,258,619 | 57,201,999 | 41,225,552 | (21,610,180 | ) | ||||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From distributable earnings | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Decrease in net assets from distributions | – | – | – | – | |||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | – | – | – | – | |||||||||||||||
Class 2 | 1,835,165 | 1,129,856 | 11,333,212 | 10,751,053 | |||||||||||||||
Value of distributions reinvested | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | – | – | – | – | |||||||||||||||
Class 2 | (19,261,342 | ) | (23,219,247 | ) | (35,808,323 | ) | (24,036,565 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | (17,426,177 | ) | (22,089,391 | ) | (24,475,111 | ) | (13,285,512 | ) | |||||||||||
Total increase (decrease) in net assets | (7,167,558 | ) | 35,112,608 | 16,750,441 | (34,895,692 | ) | |||||||||||||
Net assets at beginning of period | 211,833,784 | 176,721,176 | 355,582,294 | 390,477,986 | |||||||||||||||
Net assets at end of period | $ | 204,666,226 | $ | 211,833,784 | $ | 372,332,735 | $ | 355,582,294 | |||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | – | – | – | – | |||||||||||||||
Class 2 | 67,382 | 52,292 | 820,033 | 852,322 | |||||||||||||||
Issued on reinvestment of distributions | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | – | – | – | – | |||||||||||||||
Class 2 | (697,889 | ) | (1,184,615 | ) | (2,668,223 | ) | (1,947,315 | ) | |||||||||||
Net change from capital transactions | (630,507 | ) | (1,132,323 | ) | (1,848,190 | ) | (1,094,993 | ) |
103
Securian Funds Trust
Statements of Changes in Net Assets – continued
Year ended December 31, 2021 and year ended December 31, 2020
SFT Government Money Market Fund | SFT Index 400 Mid-Cap Fund | SFT Index 500 Fund | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income | $ | – | $ | 391,549 | $ | 1,652,494 | $ | 1,804,434 | $ | 11,323,005 | $ | 12,682,491 | |||||||||||||||
Net realized gains (losses) on investments | – | – | 25,848,251 | 9,896,826 | 54,598,627 | 57,681,701 | |||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | – | – | 19,807,664 | 11,356,767 | 208,627,322 | 81,016,150 | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | – | 391,549 | 47,308,409 | 23,058,027 | 274,548,954 | 151,380,342 | |||||||||||||||||||||
Distributions to shareholders: | |||||||||||||||||||||||||||
From distributable earnings | |||||||||||||||||||||||||||
Class 2 | – | (391,549 | ) | – | – | – | – | ||||||||||||||||||||
Decrease in net assets from distributions | – | (391,549 | ) | – | – | – | – | ||||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 5,959,281 | 1,964,813 | 29,049,479 | 7,352,443 | |||||||||||||||||||||
Class 2 | 38,077,001 | 58,941,198 | 2,325,362 | 4,604,250 | 19,582,173 | 12,379,911 | |||||||||||||||||||||
Value of distributions reinvested | |||||||||||||||||||||||||||
Class 2 | – | 391,549 | – | – | – | – | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (573,325 | ) | (332,878 | ) | (14,455,661 | ) | (1,431,736 | ) | |||||||||||||||||
Class 2 | (37,875,640 | ) | (50,806,705 | ) | (26,036,416 | ) | (23,318,726 | ) | (84,212,900 | ) | (80,640,952 | ) | |||||||||||||||
Increase (decrease) in net assets from capital stock transactions | 201,361 | 8,526,042 | (18,325,098 | ) | (17,082,541 | ) | (50,036,909 | ) | (62,340,334 | ) | |||||||||||||||||
Total increase (decrease) in net assets | 201,361 | 8,526,042 | 28,983,311 | 5,975,486 | 224,512,045 | 89,040,008 | |||||||||||||||||||||
Net assets at beginning of period | 196,876,988 | 188,350,946 | 204,171,363 | 198,195,877 | 1,003,443,794 | 914,403,786 | |||||||||||||||||||||
Net assets at end of period | $ | 197,078,349 | $ | 196,876,988 | $ | 233,154,674 | $ | 204,171,363 | $ | 1,227,955,839 | $ | 1,003,443,794 | |||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 803,253 | 404,539 | 1,537,397 | 543,123 | |||||||||||||||||||||
Class 2 | 38,077,001 | 58,941,198 | 326,818 | 1,091,233 | 1,090,964 | 923,044 | |||||||||||||||||||||
Issued on reinvestment of distributions | |||||||||||||||||||||||||||
Class 2 | – | 391,549 | – | – | – | – | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (78,858 | ) | (63,527 | ) | (745,439 | ) | (109,305 | ) | |||||||||||||||||
Class 2 | (37,875,640 | ) | (50,806,705 | ) | (3,734,848 | ) | (4,722,525 | ) | (4,855,719 | ) | (6,307,407 | ) | |||||||||||||||
Net change from capital transactions | 201,361 | 8,526,042 | (2,683,635 | ) | (3,290,280 | ) | (2,972,797 | ) | (4,950,545 | ) |
See accompanying notes to financial statements.
104
SFT International Bond Fund | SFT Real Estate Securities Fund | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 831,779 | $ | 1,058,253 | $ | 1,254,508 | $ | 1,768,741 | |||||||||||
Net realized gains (losses) on investments | (9,883,969 | ) | (9,644,165 | ) | 18,190,448 | (1,575,537 | ) | ||||||||||||
Net change in unrealized appreciation or depreciation of investments | 5,392,471 | 2,268,281 | 34,305,944 | (4,155,015 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | (3,659,719 | ) | (6,317,631 | ) | 53,750,900 | (3,961,811 | ) | ||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From distributable earnings | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Decrease in net assets from distributions | – | – | – | – | |||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 685,192 | 323,164 | 3,897,473 | 955,799 | |||||||||||||||
Class 2 | 7,322,451 | 6,978,780 | 10,951,153 | 5,095,931 | |||||||||||||||
Value of distributions reinvested | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (376,322 | ) | (101,613 | ) | (375,521 | ) | (234,691 | ) | |||||||||||
Class 2 | (4,372,840 | ) | (10,143,196 | ) | (20,337,710 | ) | (10,142,004 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | 3,258,481 | (2,942,865 | ) | (5,864,605 | ) | (4,324,965 | ) | ||||||||||||
Total increase (decrease) in net assets | (401,238 | ) | (9,260,496 | ) | 47,886,295 | (8,286,776 | ) | ||||||||||||
Net assets at beginning of period | 91,154,633 | 100,415,129 | 125,921,285 | 134,208,061 | |||||||||||||||
Net assets at end of period | $ | 90,753,395 | $ | 91,154,633 | $ | 173,807,580 | $ | 125,921,285 | |||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 287,069 | 130,501 | 542,889 | 183,812 | |||||||||||||||
Class 2 | 3,148,037 | 2,895,845 | 1,590,621 | 1,052,070 | |||||||||||||||
Issued on reinvestment of distributions | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (158,139 | ) | (40,555 | ) | (56,722 | ) | (47,116 | ) | |||||||||||
Class 2 | (1,885,931 | ) | (4,168,472 | ) | (3,079,110 | ) | (2,034,097 | ) | |||||||||||
Net change from capital transactions | 1,391,036 | (1,182,681 | ) | (1,002,322 | ) | (845,331 | ) |
105
Securian Funds Trust
Statements of Changes in Net Assets – continued
Year ended December 31, 2021 and year ended December 31, 2020
SFT T. Rowe Price Value Fund | SFT Wellington Core Equity Fund | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 897,403 | $ | 1,831,234 | $ | 238,717 | $ | 434,520 | |||||||||||
Net realized gains (losses) on investments | 55,592,342 | (1,273,706 | ) | 14,602,167 | 4,836,299 | ||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 696,317 | 19,023,820 | 14,573,796 | 14,746,053 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 57,186,062 | 19,581,348 | 29,414,680 | 20,016,872 | |||||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From distributable earnings | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Decrease in net assets from distributions | – | – | – | – | |||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | – | – | 1,136,597 | 436,384 | |||||||||||||||
Class 2 | 10,386,456 | 5,813,976 | 885,222 | 606,908 | |||||||||||||||
Value of distributions reinvested | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | – | – | (304,280 | ) | (235,014 | ) | |||||||||||||
Class 2 | (34,589,303 | ) | (20,223,461 | ) | (16,668,396 | ) | (15,410,363 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | (24,202,847 | ) | (14,409,485 | ) | (14,950,857 | ) | (14,602,085 | ) | |||||||||||
Total increase (decrease) in net assets | 32,983,215 | 5,171,863 | 14,463,823 | 5,414,787 | |||||||||||||||
Net assets at beginning of period | 206,349,611 | 201,177,748 | 130,296,059 | 124,881,272 | |||||||||||||||
Net assets at end of period | $ | 239,332,826 | $ | 206,349,611 | $ | 144,759,882 | $ | 130,296,059 | |||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | – | – | 43,942 | 23,395 | |||||||||||||||
Class 2 | 480,185 | 469,196 | 37,894 | 37,494 | |||||||||||||||
Issued on reinvestment of distributions | |||||||||||||||||||
Class 2 | – | – | – | – | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | – | – | (12,427 | ) | (12,208 | ) | |||||||||||||
Class 2 | (1,710,343 | ) | (1,335,815 | ) | (682,712 | ) | (824,599 | ) | |||||||||||
Net change from capital transactions | (1,230,158 | ) | (866,619 | ) | (613,303 | ) | (775,918 | ) |
See accompanying notes to financial statements.
106
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Financial Highlights
SFT Balanced Stabilization Fund(a)
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 18.697 | $ | 16.892 | $ | 13.983 | $ | 14.401 | $ | 12.210 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (b) | .019 | .082 | .185 | .162 | .116 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 2.494 | 1.723 | 2.724 | (.580 | ) | 2.075 | |||||||||||||||||
Total from investment operations | 2.513 | 1.805 | 2.909 | (.418 | ) | 2.191 | |||||||||||||||||
Net asset value, end of period | $ | 21.210 | $ | 18.697 | $ | 16.892 | $ | 13.983 | $ | 14.401 | |||||||||||||
Total return (c) | 13.46 | % | 10.67 | % | 20.81 | % | (2.90 | )% | 17.94 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 729,543 | $ | 678,188 | $ | 577,805 | $ | 415,233 | $ | 373,124 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses before waiver (d) | .85 | % | .86 | % | .90 | % | .98 | % | .98 | % | |||||||||||||
Expenses net of waiver (d)(e) | .84 | % | .80 | % | .80 | % | .80 | % | .80 | % | |||||||||||||
Net investment income | .10 | % | .48 | % | 1.18 | % | 1.12 | % | .87 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 5.8 | % | – | % | 1.2 | % | 2.2 | % | 1.7 | % |
(a) See Note 1 of accompanying notes to financial statements regarding former names of the funds.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Ratio is net of fees waived by the advisor and distributor (see Note 4).
107
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Financial Highlights – continued
SFT Core Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.755 | $ | 2.571 | $ | 2.355 | $ | 2.368 | $ | 2.257 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .056 | .067 | .078 | .077 | .069 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | (.064 | ) | .117 | .138 | (.090 | ) | .042 | ||||||||||||||||
Total from investment operations | (.008 | ) | .184 | .216 | (.013 | ) | .111 | ||||||||||||||||
Net asset value, end of period | $ | 2.747 | $ | 2.755 | $ | 2.571 | $ | 2.355 | $ | 2.368 | |||||||||||||
Total return (b) | (0.29 | )% | 7.15 | % | 9.18 | % | (0.59 | )% | 4.95 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 7,751 | $ | 5,530 | $ | 5,060 | $ | 3,640 | $ | 2,608 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .49 | % | .48 | % | .49 | % | .50 | % | .49 | % | |||||||||||||
Net investment income | 2.03 | % | 2.52 | % | 3.11 | % | 3.29 | % | 2.96 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 67.3 | % | 93.0 | % | 130.4 | % | 151.1 | % | 159.8 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.673 | $ | 2.501 | $ | 2.297 | $ | 2.316 | $ | 2.212 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .047 | .059 | .070 | .069 | .062 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | (.061 | ) | .113 | .134 | (.088 | ) | .042 | ||||||||||||||||
Total from investment operations | (.014 | ) | .172 | .204 | (.019 | ) | .104 | ||||||||||||||||
Net asset value, end of period | $ | 2.659 | $ | 2.673 | $ | 2.501 | $ | 2.297 | $ | 2.316 | |||||||||||||
Total return (b) | (0.54 | )% | 6.88 | % | 8.90 | % | (0.84 | )% | 4.69 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 522,580 | $ | 491,483 | $ | 482,818 | $ | 434,229 | $ | 382,697 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .74 | % | .73 | % | .74 | % | .75 | % | .74 | % | |||||||||||||
Net investment income | 1.78 | % | 2.28 | % | 2.87 | % | 3.04 | % | 2.71 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 67.3 | % | 93.0 | % | 130.4 | % | 151.1 | % | 159.8 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
108
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Financial Highlights – continued
SFT Delaware IvySM Growth Fund(a)
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 28.554 | $ | 21.848 | $ | 16.007 | $ | 15.662 | $ | 12.120 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (loss) (b) | (.124 | ) | (.038 | ) | (.005 | ) | .008 | .022 | |||||||||||||||
Net realized and unrealized gain on investments | 8.772 | 6.744 | 5.846 | .337 | 3.520 | ||||||||||||||||||
Total from investment operations | 8.648 | 6.706 | 5.841 | .345 | 3.542 | ||||||||||||||||||
Net asset value, end of period | $ | 37.202 | $ | 28.554 | $ | 21.848 | $ | 16.007 | $ | 15.662 | |||||||||||||
Total return (c) | 30.29 | % | 30.69 | % | 36.49 | % | 2.21 | % | 29.22 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 705,437 | $ | 606,247 | $ | 544,843 | $ | 453,883 | $ | 504,437 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (d) | .96 | % | .97 | % | .98 | % | .97 | % | .97 | % | |||||||||||||
Net investment income (loss) | (.38 | )% | (.16 | )% | (.03 | )% | .04 | % | .16 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 14.4 | % | 28.9 | % | 29.9 | % | 42.3 | % | 40.5 | % |
(a) See Note 1 of accompanying notes to financial statements regarding former names of the funds.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
109
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Financial Highlights – continued
SFT Delaware IvySM Small Cap Growth Fund(a)
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.579 | $ | 18.772 | $ | 15.181 | $ | 15.802 | $ | 12.611 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment loss (b) | (.233 | ) | (.161 | ) | (.146 | ) | (.102 | ) | (.111 | ) | |||||||||||||
Net realized and unrealized gain(loss) on investments | 1.404 | 6.968 | 3.737 | (.519 | ) | 3.302 | |||||||||||||||||
Total from investment operations | 1.171 | 6.807 | 3.591 | (.621 | ) | 3.191 | |||||||||||||||||
Net asset value, end of period | $ | 26.750 | $ | 25.579 | $ | 18.772 | $ | 15.181 | $ | 15.802 | |||||||||||||
Total return (c) | 4.58 | % | 36.26 | % | 23.66 | % | (3.93 | )% | 25.30 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 204,666 | $ | 211,834 | $ | 176,721 | $ | 163,367 | $ | 184,233 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (d) | 1.23 | % | 1.24 | % | 1.23 | % | 1.21 | % | 1.22 | % | |||||||||||||
Net investment loss | (.84 | )% | (.83 | )% | (.81 | )% | (.59 | )% | (.78 | )% | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 47.1 | % | 53.6 | % | 43.3 | % | 53.1 | % | 54.4 | % |
(a) See Note 1 of accompanying notes to financial statements regarding former names of the funds.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
110
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Financial Highlights – continued
SFT Equity Stabilization Fund(a)
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.804 | $ | 13.527 | $ | 11.594 | $ | 12.195 | $ | 10.483 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (b) | .154 | .173 | .275 | .220 | .169 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 1.405 | (.896 | ) | 1.658 | (.821 | ) | 1.543 | ||||||||||||||||
Total from investment operations | 1.559 | (.723 | ) | 1.933 | (.601 | ) | 1.712 | ||||||||||||||||
Net asset value, end of period | $ | 14.363 | $ | 12.804 | $ | 13.527 | $ | 11.594 | $ | 12.195 | |||||||||||||
Total return (c) | 12.18 | % | (5.35 | )% | 16.67 | % | (4.93 | )% | 16.33 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 372,333 | $ | 355,582 | $ | 390,478 | $ | 298,485 | $ | 261,481 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses before waiver (d) | .87 | % | .88 | % | .90 | % | .97 | % | .99 | % | |||||||||||||
Expenses net of waiver (e) | .85 | % | .80 | % | .80 | % | .80 | % | .80 | % | |||||||||||||
Net investment income | 1.13 | % | 1.38 | % | 2.17 | % | 1.82 | % | 1.48 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 3.4 | % | 20.1 | % | – | % | – | % | 9.2 | % |
(a) See Note 1 of accompanying notes to financial statements regarding former names of the funds.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Ratio is net of fees waived by the advisor and distributor (see Note 4).
111
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Financial Highlights – continued
SFT Government Money Market Fund
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | – | .002 | .015 | .012 | .001 | ||||||||||||||||||
Net realized and unrealized gain on investments | – | – | – | – | – | ||||||||||||||||||
Total from investment operations | – | .002 | .015 | .012 | .001 | ||||||||||||||||||
Less distributions: | |||||||||||||||||||||||
Distributions from net investment income | – | (.002 | ) | (.015 | ) | (.012 | ) | (.001 | ) | ||||||||||||||
Net asset value, end of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Total return (b) | – | % | 0.21 | % | 1.50 | % | 1.18 | % | 0.13 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 197,078 | $ | 196,877 | $ | 188,351 | $ | 72,761 | $ | 66,980 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses before waiver | .66 | % | .68 | % | .83 | % | .90 | % | .92 | % | |||||||||||||
Expenses net of waiver (c)(d) | .04 | % | .29 | % | .70 | % | .70 | % | .78 | % | |||||||||||||
Net investment income | – | % | .20 | % | 1.35 | % | 1.18 | % | .13 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(d) Ratio is net of fees waived by the advisor and distributor (see Note 4).
112
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Financial Highlights – continued
SFT Index 400 Mid-Cap Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 6.264 | $ | 5.527 | $ | 4.392 | $ | 4.955 | $ | 4.275 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .068 | .065 | .067 | .065 | .055 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 1.454 | .672 | 1.068 | (.628 | ) | .625 | |||||||||||||||||
Total from investment operations | 1.522 | .737 | 1.135 | (.563 | ) | .680 | |||||||||||||||||
Net asset value, end of period | $ | 7.786 | $ | 6.264 | $ | 5.527 | $ | 4.392 | $ | 4.955 | |||||||||||||
Total return (b) | 24.30 | % | 13.34 | % | 25.82 | % | (11.36 | )% | 15.90 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 25,327 | $ | 15,838 | $ | 12,088 | $ | 7,662 | $ | 6,378 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .28 | % | .31 | % | .29 | % | .27 | % | .26 | % | |||||||||||||
Net investment income | .93 | % | 1.27 | % | 1.31 | % | 1.29 | % | 1.21 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 15.3 | % | 14.4 | % | 15.1 | % | 14.6 | % | 16.6 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 6.079 | $ | 5.377 | $ | 4.284 | $ | 4.845 | $ | 4.191 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .050 | .050 | .054 | .050 | .042 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 1.409 | .652 | 1.039 | (.611 | ) | .612 | |||||||||||||||||
Total from investment operations | 1.459 | .702 | 1.093 | (.561 | ) | .654 | |||||||||||||||||
Net asset value, end of period | $ | 7.538 | $ | 6.079 | $ | 5.377 | $ | 4.284 | $ | 4.845 | |||||||||||||
Total return (b) | 23.99 | % | 13.06 | % | 25.51 | % | (11.58 | )% | 15.61 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 207,828 | $ | 188,333 | $ | 186,108 | $ | 182,703 | $ | 220,335 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .53 | % | .56 | % | .54 | % | .52 | % | .51 | % | |||||||||||||
Net investment income | .71 | % | 1.02 | % | 1.09 | % | 1.03 | % | .95 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 15.3 | % | 14.4 | % | 15.1 | % | 14.6 | % | 16.6 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
113
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Financial Highlights – continued
SFT Index 500 Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.732 | $ | 13.309 | $ | 10.144 | $ | 10.629 | $ | 8.745 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .215 | .217 | .215 | .192 | .175 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 4.244 | 2.206 | 2.950 | (.677 | ) | 1.709 | |||||||||||||||||
Total from investment operations | 4.459 | 2.423 | 3.165 | (.485 | ) | 1.884 | |||||||||||||||||
Net asset value, end of period | $ | 20.191 | $ | 15.732 | $ | 13.309 | $ | 10.144 | $ | 10.629 | |||||||||||||
Total return (b) | 28.35 | % | 18.20 | % | 31.20 | % | (4.56 | )% | 21.54 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 365,210 | $ | 272,088 | $ | 224,410 | $ | 164,095 | $ | 167,661 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .19 | % | .20 | % | .20 | % | .20 | % | .20 | % | |||||||||||||
Net investment income | 1.19 | % | 1.62 | % | 1.81 | % | 1.74 | % | 1.82 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 2.3 | % | 3.3 | % | 2.6 | % | 2.4 | % | 2.7 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.268 | $ | 12.949 | $ | 9.894 | $ | 10.393 | $ | 8.573 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .164 | .179 | .181 | .160 | .148 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 4.115 | 2.140 | 2.874 | (.659 | ) | 1.672 | |||||||||||||||||
Total from investment operations | 4.279 | 2.319 | 3.055 | (.499 | ) | 1.820 | |||||||||||||||||
Net asset value, end of period | $ | 19.547 | $ | 15.268 | $ | 12.949 | $ | 9.894 | $ | 10.393 | |||||||||||||
Total return (b) | 28.03 | % | 17.91 | % | 30.88 | % | (4.80 | )% | 21.23 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 862,746 | $ | 731,356 | $ | 689,994 | $ | 630,692 | $ | 708,275 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .44 | % | .45 | % | .45 | % | .45 | % | .45 | % | |||||||||||||
Net investment income | .94 | % | 1.38 | % | 1.56 | % | 1.49 | % | 1.57 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 2.3 | % | 3.3 | % | 2.6 | % | 2.4 | % | 2.7 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
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Financial Highlights – continued
SFT International Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.458 | $ | 2.620 | $ | 2.570 | $ | 2.533 | $ | 2.499 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .028 | .035 | .116 | .091 | .102 | ||||||||||||||||||
Net realized and unrealized (loss) on investments | (.119 | ) | (.197 | ) | (.066 | ) | (.054 | ) | (.068 | ) | |||||||||||||
Total from investment operations | (.091 | ) | (.162 | ) | .050 | .037 | .034 | ||||||||||||||||
Net asset value, end of period | $ | 2.367 | $ | 2.458 | $ | 2.620 | $ | 2.570 | $ | 2.533 | |||||||||||||
Total return (b) | (3.70 | )%(c) | (6.18 | )%(c) | 1.93 | % | 1.46 | % | 1.38 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 1,779 | $ | 1,531 | $ | 1,396 | $ | 1,237 | $ | 1,134 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (d) | 1.04 | % | .98 | % | 1.01 | % | .95 | % | .98 | % | |||||||||||||
Net investment income | 1.16 | % | 1.40 | % | 4.43 | % | 3.57 | % | 3.97 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 124.2 | % | 62.1 | % | 23.4 | % | 20.4 | % | 58.7 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.385 | $ | 2.549 | $ | 2.507 | $ | 2.477 | $ | 2.450 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .021 | .028 | .108 | .082 | .093 | ||||||||||||||||||
Net realized and unrealized (loss) on investments | (.115 | ) | (.192 | ) | (.066 | ) | (.052 | ) | (.066 | ) | |||||||||||||
Total from investment operations | (.094 | ) | (.164 | ) | .042 | .030 | .027 | ||||||||||||||||
Net asset value, end of period | $ | 2.291 | $ | 2.385 | $ | 2.549 | $ | 2.507 | $ | 2.477 | |||||||||||||
Total return (b) | (3.94 | )%(c) | (6.43 | )%(c) | 1.68 | % | 1.21 | % | 1.12 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 88,974 | $ | 89,624 | $ | 99,019 | $ | 103,430 | $ | 106,869 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (d) | 1.29 | % | 1.23 | % | 1.26 | % | 1.20 | % | 1.23 | % | |||||||||||||
Net investment income | .91 | % | 1.15 | % | 4.20 | % | 3.32 | % | 3.72 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 124.2 | % | 62.1 | % | 23.4 | % | 20.4 | % | 58.7 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) The return includes adjustments in accordance with generally accepted accounting principles required at period end date.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
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Financial Highlights – continued
SFT Real Estate Securities Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 5.515 | $ | 5.661 | $ | 4.534 | $ | 4.781 | $ | 4.526 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .061 | .087 | .096 | .085 | .081 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 2.388 | (.233 | ) | 1.031 | (.332 | ) | .174 | ||||||||||||||||
Total from investment operations | 2.449 | (.146 | ) | 1.127 | (.247 | ) | .255 | ||||||||||||||||
Net asset value, end of period | $ | 7.964 | $ | 5.515 | $ | 5.661 | $ | 4.534 | $ | 4.781 | |||||||||||||
Total return (b) | 44.41 | % | (2.59 | )% | 24.87 | % | (5.16 | )% | 5.63 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 13,201 | $ | 6,461 | $ | 5,858 | $ | 4,122 | $ | 3,583 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .87 | % | .91 | % | .88 | % | .87 | % | .85 | % | |||||||||||||
Net investment income | .91 | % | 1.69 | % | 1.79 | % | 1.83 | % | 1.75 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 59.7 | % | 74.9 | % | 55.5 | % | 70.0 | % | 75.4 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 5.352 | $ | 5.508 | $ | 4.422 | $ | 4.674 | $ | 4.436 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .055 | .073 | .082 | .072 | .070 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 2.302 | (.229 | ) | 1.004 | (.324 | ) | .168 | ||||||||||||||||
Total from investment operations | 2.357 | (.156 | ) | 1.086 | (.252 | ) | .238 | ||||||||||||||||
Net asset value, end of period | $ | 7.709 | $ | 5.352 | $ | 5.508 | $ | 4.422 | $ | 4.674 | |||||||||||||
Total return (b) | 44.05 | % | (2.83 | )% | 24.56 | % | (5.40 | )% | 5.37 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 160,607 | $ | 119,460 | $ | 128,350 | $ | 116,067 | $ | 132,372 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.12 | % | 1.16 | % | 1.13 | % | 1.12 | % | 1.10 | % | |||||||||||||
Net investment income | .85 | % | 1.46 | % | 1.59 | % | 1.60 | % | 1.55 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 59.7 | % | 74.9 | % | 55.5 | % | 70.0 | % | 75.4 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
116
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Financial Highlights – continued
SFT T. Rowe Price Value Fund
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.411 | $ | 15.818 | $ | 12.568 | $ | 13.933 | $ | 11.747 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .082 | .147 | .186 | .174 | .153 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 5.040 | 1.446 | 3.064 | (1.539 | ) | 2.033 | |||||||||||||||||
Total from investment operations | 5.122 | 1.593 | 3.250 | (1.365 | ) | 2.186 | |||||||||||||||||
Net asset value, end of period | $ | 22.533 | $ | 17.411 | $ | 15.818 | $ | 12.568 | $ | 13.933 | |||||||||||||
Total return (b) | 29.43 | % | 10.06 | % | 25.86 | % | (9.80 | )% | 18.61 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 239,333 | $ | 206,350 | $ | 201,178 | $ | 181,589 | $ | 226,215 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.05 | % | 1.06 | % | 1.06 | % | 1.04 | % | 1.03 | % | |||||||||||||
Net investment income | .40 | % | 1.01 | % | 1.28 | % | 1.26 | % | 1.20 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 100.1 | % | 113.2 | % | 131.1 | % | 140.0 | % | 90.4 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
117
Securian Funds Trust
Financial Highlights – continued
SFT Wellington Core Equity Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 22.304 | $ | 18.861 | $ | 14.069 | $ | 14.369 | $ | 11.834 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .105 | .116 | .120 | .099 | .084 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 5.289 | 3.327 | 4.672 | (.399 | ) | 2.451 | |||||||||||||||||
Total from investment operations | 5.394 | 3.443 | 4.792 | (.300 | ) | 2.535 | |||||||||||||||||
Net asset value, end of period | $ | 27.698 | $ | 22.304 | $ | 18.861 | $ | 14.069 | $ | 14.369 | |||||||||||||
Total return (b) | 24.18 | % | 18.25 | % | 34.06 | % | (2.09 | )% | 21.42 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 3,020 | $ | 1,729 | $ | 1,251 | $ | 757 | $ | 706 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .84 | % | .86 | % | .86 | % | .84 | % | .85 | % | |||||||||||||
Net investment income | .42 | % | .61 | % | .71 | % | .66 | % | .64 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 14.4 | % | 23.0 | % | 14.9 | % | 21.6 | % | 138.0 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.936 | $ | 18.596 | $ | 13.906 | $ | 14.238 | $ | 11.755 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .042 | .068 | .077 | .060 | .051 | ||||||||||||||||||
Net realized and unrealized gain(loss) on investments | 5.195 | 3.272 | 4.613 | (.392 | ) | 2.432 | |||||||||||||||||
Total from investment operations | 5.237 | 3.340 | 4.690 | (.332 | ) | 2.483 | |||||||||||||||||
Net asset value, end of period | $ | 27.173 | $ | 21.936 | $ | 18.596 | $ | 13.906 | $ | 14.238 | |||||||||||||
Total return (b) | 23.87 | % | 17.96 | % | 33.73 | % | (2.33 | )% | 21.12 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 141,740 | $ | 128,567 | $ | 123,630 | $ | 102,769 | $ | 120,185 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.08 | % | 1.11 | % | 1.11 | % | 1.09 | % | 1.10 | % | |||||||||||||
Net investment income | .17 | % | .37 | % | .47 | % | .40 | % | .40 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 14.4 | % | 23.0 | % | 14.9 | % | 21.6 | % | 138.0 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
118
Securian Funds Trust
Notes to Financial Statements
December 31, 2021
(1) Organization
Securian Funds Trust (Trust) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the 1940 Act) each of whose Funds operate as a no-load, diversified open-end management investment company, except SFT Delaware IvySM Growth Fund and the SFT International Bond Fund which operate as non-diversified, open-end management investment companies. The Trust is a series trust that includes the Funds and share classes listed below:
Fund Name | Share Class 1 | Share Class 2 | |||||||||
SFT Balanced Stabilization Fund (formerly SFT Dynamic Managed Volatility Fund) | NA | 🗸 | |||||||||
SFT Core Bond Fund | 🗸 | 🗸 | |||||||||
SFT Delaware IvySM Growth Fund (formerly SFT IvySM Growth Fund) | NA | 🗸 | |||||||||
SFT Delaware IvySM Small Cap Growth Fund (formerly SFT IvySM Small Cap Growth Fund) | NA | 🗸 | |||||||||
SFT Equity Stabilization Fund (formerly SFT Managed Volatility Equity Fund) | NA | 🗸 | |||||||||
SFT Government Money Market Fund | NA | 🗸 | |||||||||
SFT Index 400 Mid-Cap Fund | 🗸 | 🗸 | |||||||||
SFT Index 500 Fund | 🗸 | 🗸 | |||||||||
SFT International Bond Fund | 🗸 | 🗸 | |||||||||
SFT Real Estate Securities Fund | 🗸 | 🗸 | |||||||||
SFT T. Rowe Price Value Fund | NA | 🗸 | |||||||||
SFT Wellington Core Equity Fund | 🗸 | 🗸 |
Securian Asset Management, Inc. (Securian AM), a wholly-owned subsidiary of Securian Financial Group, Inc. (Securian Financial Group), serves as the investment adviser to each of the Funds in the Trust pursuant to an investment advisory agreement between Securian AM and the Trust. The Funds' prospectus provides a detailed description of each Fund's investment objective, policies, and strategies.
Class 2 shares are subject to a Rule 12b-1 distribution fee. Both classes of shares have identical voting, dividend, liquidation and other rights, and the same terms and conditions, except that Class 1 shares are not subject to a Rule 12b-1 distribution fee. Income, expenses (other than Rule 12b-1 fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.
The Trust accounts for the assets, liabilities, and operations of each Fund separately. Shares of the Funds are not offered directly to the public, but sold only to Minnesota Life Insurance Company (Minnesota Life) and Securian Life Insurance Company (Securian Life) in connection with Minnesota Life and Securian Life variable life insurance policies and variable annuity contracts, and to certain other separate accounts of life insurance affiliates of Minnesota Life and Securian Life, and may also be offered to certain qualified plans.
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, "Financial Services—Investment Companies." The significant accounting policies followed consistently by the Trust are as follows:
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities, as of the statement of assets and liabilities date and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
119
Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies
Investments in Securities
Each Fund's net asset value is generally calculated as of the close of normal trading on the New York Stock Exchange (typically 3:00 p.m. Central Time). Investments in securities traded on a U.S. or foreign securities exchange are valued at the last sale price on that exchange prior to the time when assets are valued; securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued on the basis of the last current bid price by an independent pricing service or at a price deemed best to reflect fair value quoted by dealers who make markets in these securities. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality and prepayment speeds, as applicable. When market quotations are not readily available, securities are valued at fair value as determined in good faith by the Securian AM Valuation Committee (Valuation Committee) and in accordance with the Board of Trustees (Board) approved valuation policies and procedures. The Board has delegated the daily oversight of the securities valuation function to the Valuation Committee whose members ensure the valuations comply with the valuation policies and affirms the reasonableness of the fair valuation determinations. The fair valued securities are reviewed by the Board at their quarterly meetings.
A Fund's investments will also be valued at fair value by the Valuation Committee if Securian AM determines that an event impacting the value of an investment occurred after the close of the security's primary exchange or market (for example, a foreign exchange or market) and before the time the Fund's net asset value is calculated. If a significant event impacting the value of a security or group of securities occurs, the Valuation Committee is immediately notified and the members meet promptly to determine whether fair value pricing is needed in accordance with the Fund's valuation procedures and, if so, to approve the pricing methodology to be used.
Short-term securities, with the exception of those held in the SFT Government Money Market Fund, are valued at market value. Pursuant to Rule 2a-7 of the 1940 Act, all securities in the SFT Government Money Market Fund are valued at amortized cost, which approximates market value, in order to attempt to maintain a constant net asset value of $1.00 per share. However, there is no assurance the SFT Government Money Market Fund will maintain the $1.00 net asset value.
Security transactions are accounted for on the date the securities are purchased or sold. Realized gains and losses are calculated using the first in, first out basis. Paydowns of securities are recorded as receivables as of the due date, which varies by the issuer. Dividend income is recognized on the ex-dividend date or upon dividend notification for certain foreign securities, and interest income, including amortization of bond premium and accretion of bond discount computed on an effective yield basis, is accrued daily.
Foreign Currency Translations and Forward Foreign Currency Contracts
Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars at the closing rate of exchange. Foreign currency amounts related to the purchase or sale of securities, income and expenses are translated at the exchange rate on the transaction date.
Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between trade and settlement dates on security transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.
The Funds do not separately report changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities.
120
Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
SFT International Bond Fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuations. A forward foreign currency contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date. SFT International Bond Fund may also enter into these contracts for purposes of increasing exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The net U.S. dollar value of foreign currency underlying all contractual commitments held by SFT International Bond Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. SFT International Bond Fund is subject to the credit risk that the other party will not complete the obligations of the contract. The fair values of the forward foreign currency exchange contracts are obtained from an independent pricing source.
Futures Transactions
To gain exposure to, or for protection from market changes, the Funds (excluding the SFT Government Money Market Fund) may buy and sell financial futures contracts traded on any U.S. or foreign exchange. The Funds may also buy and write put and call options on these futures contracts. Risks of entering into futures contracts and related options include the possibility of an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities.
Upon entering into a futures contract, a Fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value as determined by each relevant clearing agency and is aggregated at a Futures Commission Merchant (FCM) which is registered with the Commodity Futures Trading Commission or the applicable regulator. Subsequent payments (variation margin) are made or received by a Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. A Fund recognizes a realized gain or loss when the contract is closed or expired. In the event of default, counterparty risk is significantly reduced as creditors to the FCM do not have claim to a Fund's assets in the segregated account. For a listing of open futures contracts see the Investments in Securities for each Fund.
Interest Rate Swaps
The SFT International Bond Fund may enter into interest rate swap contracts primarily to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange interest rate cash flows during the life of the agreement. Each party's payment obligation is computed based on different interest rates, applied to a notional amount. Interest rate swaps often exchange payments based on a fixed rate for payments linked to a floating rate.
These agreements are executed on a registered exchange (centrally cleared interest rate swaps), significantly reducing risk from counterparty default. Upon entering into an interest rate swap contract, a Fund is required to pledge an initial margin, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized appreciation and depreciation until the payments are made.
Options Transactions
Each Fund (excluding the SFT Government Money Market Fund) may write (i.e., sell) covered call and secured put options and purchase and sell put and call options written by others. An option is a type of derivative financial instrument. The Funds may invest in derivative financial instruments, including options, in order to manage risk or gain exposure to various other investments or markets. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that a Fund may incur a loss if the market price of the security decreases and the option is exercised.
121
Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Option contracts are valued daily and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. The Funds designate collateral consisting of cash, U.S. government securities or other liquid assets sufficient to collateralize the market value of written options.
Repurchase Agreements
Each Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. Each Fund requires at all times that the repurchase agreement be collateralized by cash, U.S. Government securities, U.S. Government agencies securities or corporate securities having a value equal to, or in excess of, the value of the repurchase agreement. If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of those securities has declined, a Fund may incur a loss upon disposition of the securities. Repurchase agreements are carried at amortized cost. At December 31, 2021, no Funds were invested in repurchase agreements.
Federal Taxes
Each Fund, other than SFT Balanced Stabilization Fund, SFT Equity Stabilization Fund, SFT International Bond Fund, and SFT T. Rowe Price Value Fund, qualifies as a partnership for federal income tax purposes under the Internal Revenue Code of 1986, as amended (Code). A Fund is treated, for federal income tax purposes, as a partnership if it has more than one shareholder. A Fund's election to be treated as a partnership is not expected to result in any material adverse federal income tax consequences to any owner of a variable annuity contract or variable life insurance policy, or in the tax treatment of any such contract or policy. As a partnership, a Fund is not subject to income tax, and any income, gains, deductions, or losses of the Fund will instead pass through and be considered for federal income tax purposes by its partners, which will be Minnesota Life and Securian Life through their respective separate accounts. SFT Balanced Stabilization Fund, SFT Equity Stabilization Fund and SFT T. Rowe Price Value Fund are treated as disregarded entities for federal income tax purposes. While the Trust anticipates that each Fund other than SFT Balanced Stabilization Fund, SFT Equity Stabilization Fund, and SFT T. Rowe Price Value Fund will always have two shareholders, Minnesota Life and Securian Life, a wholly owned subsidiary of Minnesota Life, such ownership could change and accordingly a Fund may at some time have only one shareholder and would be treated as a disregarded entity for federal income tax purposes. A disregarded entity is disregarded for federal income tax purposes as an entity separate from its owner, and the owner is treated as directly owning the assets of the disregarded entity and considers for federal income tax purposes the income, gains, deductions, and losses relating to those assets.
SFT International Bond Fund qualifies as a regulated investment company for federal income tax purposes. The Fund's policy is to comply with the requirements of subchapter M of the Code that are applicable to regulated investment companies and to distribute all (or a sufficient amount) of its taxable income and net capital gain to its shareholders. Therefore, no income tax provision is required.
The FASB ASC Topic 740, "Income Taxes" (ASC 740), provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. The Funds have evaluated the implications of ASC 740 for all open tax years, and have determined there is no impact to the Funds' financial statements as of the year ended December 31, 2021. The Funds' federal and state income returns for which the
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(2) Summary of Significant Accounting Policies – (continued)
applicable statutes of limitations have not expired (2018, 2019, 2020 and 2021) remain subject to examination by the Internal Revenue Service and states' department of revenue.
Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of temporary book-to-tax differences.
Distributions to Shareholders
Distributions to shareholders from net investment income and realized gains (if any) for the SFT Government Money Market Fund are declared daily and reinvested at month-end in additional shares of capital stock.
Distributions to shareholders from net investment income and realized gains (if any) for the SFT International Bond Fund are generally declared and reinvested in additional shares of capital stock on an annual basis. The SFT International Bond Fund uses consent dividends in place of regular distributions. The Funds that are partnerships and disregarded entities (those funds other than SFT Government Money Market Fund and SFT International Bond Fund) are not required to and will not distribute taxable income.
The federal income tax character of distributions paid to shareholders during the fiscal year ended December 31, 2021 was as follows:
December 31, 2021 | December 31, 2020 | ||||||||||||||||||
Fund | Ordinary Income | Long-Term Capital Gain | Ordinary Income | Long-Term Capital Gain | |||||||||||||||
SFT International Bond Fund | $ | — | $ | — | $ | — | $ | — |
At December 31, 2021, as a result of permanent book-to-tax difference, the following reclassification adjustments were made on the Statements of Assets and Liabilities primarily relate to net operating losses:
Fund | Paid-In Capital | Total Distributable Earnings (Loss) | |||||||||
SFT International Bond Fund | $ | (7,371,382 | ) | $ | 7,371,382 |
Distributable Earnings
As of December 31, 2021, the components of distributable earnings on a federal income tax basis were:
Fund | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Unrealized Appreciation/ (Depreciation) | Post October Capital/ Late Year Ordinary Loss | Capital Loss Carryforward | ||||||||||||||||||
SFT International Bond Fund | $ | — | $ | — | $ | (2,087,664 | ) | $ | — | $ | (5,119,220 | ) |
For the year ending December 31, 2021, the SFT International Bond Fund had a foreign tax credit of $158,743 and foreign sourced income of $1,675,556.
Securities Purchased on a When-Issued or Forward Commitment Basis
Delivery and payment for securities which have been purchased or sold by a Fund on a when-issued or forward commitment basis can take place a month or more after the transaction date. During this period, such securities are subject to market fluctuations. As of December 31, 2021, the Funds' did not hold any when-issued or forward commitments.
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(2) Summary of Significant Accounting Policies – (continued)
Cross-Trades
The Funds are permitted to purchase and sell securities (i.e., "cross-trade") from and to other Funds within the Trust as well as outside of the Trust, where both accounts are managed by the same adviser or sub-adviser pursuant to "Cross-Trading" procedures adopted by the Board. These procedures have been designed to ensure that any cross-trade of securities by a respective Fund from and to another Fund that is or could be considered an affiliate of the Funds under certain limited circumstances by virtue of having a common investment adviser, common officer, or common trustee complies with Rule 17a-7 under the 1940 Act. Further, as defined under these procedures, each cross-trade is effected at the current market price to save costs where allowed. Pursuant to these procedures, for the year ended December 31, 2021, the Funds engaged in the following cross-trades, which resulted in the following net realized gains (losses):
Purchases | Sales | Net Realized Gains (Losses) | |||||||||||||
SFT T. Rowe Price Value Fund | $ | 70,717 | $ | – | $ | – | |||||||||
SFT Wellington Core Equity Fund | – | 27,120 | 6,398 |
(3) Investment Security Transactions
The cost of purchases and proceeds from sales of investment securities, other than temporary investments in short-term securities, for the year ended December 31, 2021 were as follows:
Non-U.S. Government | U.S. Government* | ||||||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | |||||||||||||||
SFT Balanced Stabilization Fund | $ | 75,134,515 | $ | 11,946,154 | $ | – | $ | 15,000,000 | |||||||||||
SFT Core Bond Fund | 160,639,907 | 125,795,709 | 266,436,161 | 213,793,155 | |||||||||||||||
SFT Delaware IvySM Growth Fund | 92,870,125 | 170,282,630 | – | – | |||||||||||||||
SFT Delaware IvySM Small Cap Growth Fund | 99,532,682 | 117,400,950 | – | – | |||||||||||||||
SFT Equity Stabilization Fund | 10,726,095 | 43,553,983 | – | – | |||||||||||||||
SFT Index 400 Mid-Cap Fund | 31,619,215 | 48,457,345 | 1,016,836 | – | |||||||||||||||
SFT Index 500 Fund | 25,461,466 | 67,001,705 | – | – | |||||||||||||||
SFT International Bond Fund | 70,000,418 | 53,179,052 | 55,155,424 | 43,830,803 | |||||||||||||||
SFT Real Estate Securities Fund | 86,548,784 | 89,410,086 | – | – | |||||||||||||||
SFT T. Rowe Price Value Fund | 223,187,991 | 247,490,967 | – | – | |||||||||||||||
SFT Wellington Core Equity Fund | 19,572,781 | 34,950,316 | – | – |
* Includes U.S. government-sponsored enterprise securities.
(4) Expenses and Related Party Transactions
The Funds have an investment advisory agreement with Securian AM, a wholly-owned subsidiary of Securian Financial Group. Under the advisory agreement, Securian AM manages the Funds' investments and provides research, statistical and advisory services and pays related office rental and executive expenses and salaries.
Each Fund pays Securian AM an annual fee, based on average daily net assets, in the following amounts:
Fund | Annual Fee on Net Assets | ||||||
SFT Balanced Stabilization Fund (a) | 0.55% of assets to $750 million; and 0.50% of assets exceeding $750 million | ||||||
SFT Core Bond Fund (b) | 0.40% of assets to $750 million; and 0.35% of assets exceeding $750 million | ||||||
SFT Delaware IvySM Growth Fund (c) | 0.67% of assets to $300 million; and 0.625% of next $200 million of assets; and 0.60% of next $500 million of assets; and 0.50% of assets exceeding $1 billion | ||||||
SFT Delaware IvySM Small Cap Growth Fund (d) | 0.85% of assets to $300 million; and 0.80% of next $200 million of assets; and 0.75% of next $500 million of assets; and 0.70% of assets exceeding $1 billion |
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(4) Expenses and Related Party Transactions – (continued)
Fund | Annual Fee on Net Assets | ||||||
SFT Equity Stabilization Fund (a) | 0.55% of assets to $750 million; and 0.50% of assets exceeding $750 million | ||||||
SFT Government Money Market Fund (e) | 0.25% of assets to $750 million; and 0.20% of assets exceeding $750 million | ||||||
SFT Index 400 Mid-Cap Fund | 0.15% of net assets to $1 billion; and 0.10% of net assets exceeding $1 billion | ||||||
SFT Index 500 Fund | 0.15% of net assets to $1 billion; and 0.10% of net assets exceeding $1 billion | ||||||
SFT International Bond Fund (f) | 0.60% of assets to $300 million; and 0.575% of next $200 million of assets; and 0.55% of next $500 million of assets; and 0.50% of assets exceeding $1 billion | ||||||
SFT Real Estate Securities Fund (g) | 0.70% of assets to $300 million; and 0.675% of next $200 million of assets; and 0.65% of next $500 million of assets; and 0.60% of assets exceeding $1 billion | ||||||
SFT T. Rowe Price Value Fund (h) | 0.67% of assets to $300 million; and 0.65% of next $200 million of assets; and 0.625% of next $500 million of assets; and 0.60% of assets exceeding $1 billion | ||||||
SFT Wellington Core Equity Fund (i) | 0.65% of assets to $300 million; and 0.625% of next $200 million of assets; and 0.60% of next $500 million of assets; and 0.55% of assets exceeding $1 billion |
(a) Prior to May 1, 2021, the Fund's investment advisory fee was 0.55% of all assets.
(b) Prior to May 1, 2021, the Fund's investment advisory fee was 0.40% of net assets to $1 billion; and 0.35% of net assets exceeding $1 billion.
(c) Prior to May 1, 2021, the Fund's investment advisory fee was 0.67% of net assets to $500 million; and 0.625% of next $300 million of net assets; and 0.60% of next $200 million of net assets; and 0.50% of net assets exceeding $1 billion.
(d) Prior to May 1, 2021, the Fund's investment advisory fee was 0.85% of net assets to $1 billion; and 0.80% of next $2 billion of net assets; and 0.76% of net assets exceeding $3 billion.
(e) Prior to May 1, 2021, the Fund's investment advisory fee was 0.30% of net assets to $1 billion; and 0.25% of net assets exceeding $1 billion.
(f) Prior to May 1, 2021, the Fund's investment advisory fee was 0.60% of net assets to $1 billion; and 0.55% of net assets exceeding $1 billion.
(g) Prior to May 1, 2021, the Fund's investment advisory fee was 0.70% of net assets to $1 billion; and 0.65% of net assets exceeding $1 billion.
(h) Prior to May 1, 2021, the Fund's investment advisory fee was 0.67% of net assets to $1 billion; and 0.65% of next $1.5 billion of net assets; and 0.60% of net assets exceeding $2.5 billion.
(i) Prior to May 1, 2021, the Fund's investment advisory fee was 0.65% of all assets.
For the period January 1, 2021 through April 30, 2021, Securian AM had a sub-advisory agreement with Franklin Advisers, Inc. (Franklin), a registered investment advisor for the SFT International Bond Fund, under which Securian AM paid Franklin an annual fee of 0.37% based on average daily net assets. Effective May 1, 2021, Securian AM replaced Franklin with Brandywine Global Investment Management, LLC (Brandywine) as sub-advisor to SFT International Bond Fund, under which Securian AM pays Brandywine an annual fee of 0.30% based on average daily net assets.
For the period January 1, 2021 through April 30, 2021, Securian AM had a sub-advisory agreement with Ivy Investment Management Company (IICO), a registered investment advisor for the SFT Delaware IvySM Growth Fund and the SFT Delaware IvySM Small Cap Growth Fund, under which Securian AM paid IICO an annual fee ranging from 0.33% to 0.55% and 0.40% to 0.82%, respectively, based on average daily net assets. On April 30, 2021, Macquarie Group Limited (Macquarie) completed a transaction whereby Macquarie acquired Waddell & Reed Financial, Inc. (WDR), the parent company of IICO (the Transaction). The Transaction constituted a change of control of IICO. As a result of the change of control effected by the Transaction and pursuant to the 1940 Act, the previous investment sub-advisory agreement between IICO and Securian AM was automatically terminated on that date. In anticipation of the Transaction, on March 31, 2021 the Board of Trustees of the Trust
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(4) Expenses and Related Party Transactions – (continued)
voted unanimously to approve a new investment sub-advisory agreement between Securian AM and Delaware Investments Fund Advisers (DIFA), a series of Macquarie Investment Management Business Trust, which took effect at the close of the Transaction (the New Sub-Advisory Agreement). The New Sub-Advisory Agreement was effective May 3, 2021, under which Securian AM pays DIFA an annual fee for SFT Delaware IvySM Growth Fund and the SFT Delaware IvySM Small Cap Growth Fund ranging from 0.33% to 0.55% and 0.40% to 0.82%, respectively, based on average daily net assets.
Securian AM has a sub-advisory agreement with T. Rowe Price Associates, Inc. (T. Rowe Price), a registered investment advisor for the SFT T. Rowe Price Value Fund, under which Securian AM pays T. Rowe Price an annual fee ranging from 0.25% to 0.48% based on average daily net assets.
Securian AM has a sub-advisory agreement with Wellington Management Company LLP (Wellington Management), a registered investment advisor for the SFT Wellington Core Equity Fund, under which Securian AM pays Wellington Management an annual fee ranging from 0.28% to 0.31% based on average daily net assets.
The Trust bears certain other operating expenses including independent trustees' fees, federal registration fees, printing and shareholder report expenses, legal fees, audit fees, custodian fees, compensation paid to the Trust's Chief Compliance Officer, and other miscellaneous expenses. Each Fund will pay all expenses directly related to its individual operations.
Operating expenses not attributable to a specific Fund are generally allocated based upon the proportionate daily net assets of each Fund.
Administrative Services Fee
The Trust has an agreement with Securian Financial Group under which Securian Financial Group provides accounting, legal, security valuations and other administrative services. Each Fund reimburses Securian Financial Group quarterly for the actual costs incurred in performing such services, as determined in accordance with Securian Financial Group's customary cost accounting procedures consistently applied. Total quarterly administrative fees by Fund range from $7,000 to $24,200.
Accounting Services
The Trust has an agreement with State Street Bank and Trust Company (State Street) in which State Street provides daily fund accounting and investment administration services. In 2021, these fees ranged from 0.01% to 0.05% of net assets depending on the size and makeup of the respective Fund. The fees are based upon a calculation of multiple factors including base fees, size of assets, and certain other fees.
Distribution Fees
The Trust has adopted a Rule 12b-1 Distribution Plan which covers all of its Class 2 shares (Covered Funds). Each Covered Fund pays distribution fees at the annual rate of 0.25% of the average daily net assets of the Covered Fund. These fees are paid out of the Covered Fund's assets, which reduces a Covered Fund's net assets as do other Covered Fund expenses. The fees are paid to Securian Financial Services, Inc. (Securian Financial), the Trust's underwriter, to pay for distribution-related expenses and activities in connection with the distribution of the Covered Fund's shares. Securian Financial may also use the fees to pay insurance companies, dealers, or others for certain non-distribution services as provided for in the distribution plan.
Net Investment Income Maintenance Agreement for the SFT Government Money Market Fund
Effective May 1, 2012, the Board approved a Restated Net Investment Income Maintenance Agreement among the Trust (on behalf of SFT Government Money Market Fund), Securian AM and Securian Financial. 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
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(4) Expenses and Related Party Transactions – (continued)
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 runs through April 30, 2022.
As of December 31, 2021, the amounts waived and eligible for recovery are as follows:
Agreement | Advisory Fees Waived for the year ended December 31, | 12b-1 Fees Waived for the year ended December 31, | Excess Expense Waived for the year ended December 31, | Total eligible for recovery as of December 31, | Expiring December 31, | ||||||||||||||||||||||||||||||
Fund | Date | 2021* | 2021* | 2021* | 2021 | 2022 | 2023 | 2024 | |||||||||||||||||||||||||||
SFT Government Money Market Fund | May 1, 2012 | $ | 517,639 | $ | 485,043 | $ | 200,682 | $ | 1,979,365 | $ | — | $ | 776,001 | $ | 1,203,364 |
* This amount is reflected in fees waived in the accompanying Statements of Operations.
SFT Balanced Stabilization Fund, SFT Equity Stabilization Fund, and SFT Government Money Market Fund Expense Waivers
Securian AM and the Trust, on behalf of the SFT Balanced Stabilization Fund, SFT Equity Stabilization Fund and SFT Government Money Market Fund, have entered into Expense Limitation Agreements which limit the operating expenses of these Funds, excluding certain expenses (such as interest expense, acquired fund fees, cash overdraft fees, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business). The Agreements for SFT Balanced Stabilization Fund and SFT Equity Stabilization Fund were terminated effective May 1, 2021. The SFT Government Money Market Fund Agreement runs through April 30, 2022.
The SFT Government Money Market 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 Funds are authorized to reimburse Securian AM for management fees previously waived and/or for the cost of expenses previously paid by Securian AM pursuant to their respective Expense Limitation Agreement, provided that such reimbursement will not cause any Fund to exceed any limits in effect at the time of such reimbursement. A 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 Funds' prospectus.
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(4) Expenses and Related Party Transactions – (continued)
As of December 31, 2021, the amounts waived and eligible for recovery are as follows:
Agreement | Expense | Advisory Fees Waived for the year ended December 31, | Total eligible for recovery as of December 31, | Expiring December 31, | |||||||||||||||||||||||||||
Fund | Date | Limit | 2021* | 2021 | 2022 | 2023 | 2024 | ||||||||||||||||||||||||
SFT Balanced Stabilization Fund | May 1, 2013 | 0.80 | %** | $ | 120,740 | $ | 965,941 | $ | 471,221 | $ | 373,980 | $ | 120,740 | ||||||||||||||||||
SFT Equity Stabilization Fund | November 18, 2015 | 0.80 | %** | $ | 87,034 | $ | 705,646 | $ | 344,250 | $ | 274,362 | $ | 87,034 | ||||||||||||||||||
SFT Government Money Market Fund | November 1, 2017 | 0.70 | % | $ | — | $ | 128,729 | $ | 128,729 | $ | — | $ | — |
* This amount is reflected in fees waived in the accompanying Statements of Operations.
** For the period January 1, 2021 through April 30, 2021.
(5) Illiquid Investments
Non-Money Market Funds—Pursuant to Rule 22e-4 under the 1940 Act, no Fund may acquire an "illiquid investment" if, immediately after the acquisition, the Fund would have invested more than 15% of its net assets in illiquid investments. Rule 22e-4 generally defines an illiquid investment as any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. At December 31, 2021, the SFT International Bond Fund held one illiquid security with a market value of $371,402, which represents 0.4% of net assets.
Government Money Market Funds—Money market funds are governed by Rule 2a-7 under the 1940 Act. By definition, a government money market fund is a fund that invests 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully. Consequently, the SFT Government Money Market Fund currently limits investments in "illiquid securities" to 0.5% of net assets at the time of purchase. Rule 2a-7 defines an illiquid security as a security that cannot be sold or disposed of in the ordinary course of business within seven calendar days at approximately the value ascribed to it by the Fund. At December 31, 2021, the Fund did not hold illiquid securities.
(6) Fair Value Measurement
The Trust utilizes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs when determining fair value. The hierarchy also establishes a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs include information market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the Trust's estimates about the assumptions market participants would use in valuing the financial asset and liability based on the best information available in the circumstances. Level 1 includes unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, credit risk and prepayment speed). Level 3 includes unobservable inputs, which may include the advisor's own assumptions in determining the fair value of an investment or are based on independent non-binding broker quotes. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swaps, and written options.
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(6) Fair Value Measurement – (continued)
The following is a summary of the levels used for the year ended December 31, 2021, in valuing the Fund's assets and liabilities (please see the Investments in Securities for each Fund for a listing of all securities within each category):
Fair Value Measurement at December 31, 2021 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT Balanced Stabilization Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | $ | — | $ | 722,934 | $ | — | $ | 722,934 | |||||||||||
Other Mortgage-Backed Securities | — | 1,646,535 | — | 1,646,535 | |||||||||||||||
Corporate Obligations | — | 150,727,528 | — | 150,727,528 | |||||||||||||||
Purchased Options | 115,735 | — | — | 115,735 | |||||||||||||||
Investment Companies | 613,856,014 | — | — | 613,856,014 | |||||||||||||||
Total Investments | 613,971,749 | 153,096,997 | — | 767,068,746 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Written Options | (1,896 | ) | — | — | (1,896 | ) | |||||||||||||
SFT Core Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | — | 150,128,505 | — | 150,128,505 | |||||||||||||||
Asset-Backed Securities | — | 76,205,025 | — | 76,205,025 | |||||||||||||||
Other Mortgage-Backed Securities | — | 78,777,925 | — | 78,777,925 | |||||||||||||||
Corporate Obligations | — | 218,430,001 | — | 218,430,001 | |||||||||||||||
Investment Companies | 4,468,964 | — | — | 4,468,964 | |||||||||||||||
Total Investments | 4,468,964 | 523,541,456 | — | 528,010,420 | |||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Futures Contracts | 489,185 | — | — | 489,185 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Futures Contracts | (430,043 | ) | — | — | (430,043 | ) | |||||||||||||
SFT Delaware IvySM Growth Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 703,023,134 | — | — | 703,023,134 | |||||||||||||||
Investment Companies | 2,889,142 | — | — | 2,889,142 | |||||||||||||||
Total Investments | 705,912,276 | — | — | 705,912,276 | |||||||||||||||
SFT Delaware IvySM Small Cap Growth Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 200,654,443 | — | — | 200,654,443 | |||||||||||||||
Investment Companies | 4,009,272 | — | — | 4,009,272 | |||||||||||||||
Total Investments | 204,663,715 | — | — | 204,663,715 | |||||||||||||||
SFT Equity Stabilization Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Investment Companies | 363,906,636 | �� | — | — | 363,906,636 | ||||||||||||||
Purchased Options | 49,110 | — | — | 49,110 | |||||||||||||||
Total Investments | 363,955,746 | — | — | 363,955,746 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Futures Contracts | (74,986 | ) | — | — | (74,986 | ) | |||||||||||||
Written Options | (752 | ) | — | — | (752 | ) |
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(6) Fair Value Measurement – (continued)
Fair Value Measurement at December 31, 2021 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT Government Money Market Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
U.S. Government Obligations | $ | — | $ | 186,390,489 | $ | — | $ | 186,390,489 | |||||||||||
Investment Companies | 11,170,627 | — | — | 11,170,627 | |||||||||||||||
Total Investments | 11,170,627 | 186,390,489 | — | 197,561,116 | |||||||||||||||
SFT Index 400 Mid-Cap Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 220,748,551 | — | — | 220,748,551 | |||||||||||||||
U.S. Government Obligations | — | 1,005,781 | — | 1,005,781 | |||||||||||||||
Investment Companies | 11,401,598 | — | — | 11,401,598 | |||||||||||||||
Total Investments | 232,150,149 | 1,005,781 | — | 233,155,930 | |||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Futures Contracts | 202,470 | — | — | 202,470 | |||||||||||||||
SFT Index 500 Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 1,201,220,262 | — | — | 1,201,220,262 | |||||||||||||||
Investment Companies | 26,472,532 | — | — | 26,472,532 | |||||||||||||||
Total Investments | 1,227,692,794 | — | — | 1,227,692,794 | |||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Futures Contracts | 703,719 | — | — | 703,719 | |||||||||||||||
SFT International Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Long-Term Debt Securities | — | 87,941,234 | — | 87,941,234 | |||||||||||||||
Investment Companies | 2,105,349 | — | — | 2,105,349 | |||||||||||||||
Total Investments | 2,105,349 | 87,941,234 | — | 90,046,583 | |||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Futures Contracts | 5,838 | — | — | 5,838 | |||||||||||||||
Forward Foreign Currency Contracts | — | 691,299 | — | 691,299 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* | |||||||||||||||||||
Futures Contracts | (122,196 | ) | — | — | (122,196 | ) | |||||||||||||
Forward Foreign Currency Contracts | — | (443,282 | ) | — | (443,282 | ) | |||||||||||||
SFT Real Estate Securities Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 170,947,201 | — | — | 170,947,201 | |||||||||||||||
Investment Companies | 2,666,489 | — | — | 2,666,489 | |||||||||||||||
Total Investments | 173,613,690 | — | — | 173,613,690 | |||||||||||||||
SFT T. Rowe Price Value Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 236,979,670 | — | — | 236,979,670 | |||||||||||||||
Preferred Stocks | 507,321 | — | — | 507,321 | |||||||||||||||
Investment Companies | 1,299,209 | — | — | 1,299,209 | |||||||||||||||
Total Investments | 238,786,200 | — | — | 238,786,200 |
130
Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Fair Value Measurement at December 31, 2021 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT Wellington Core Equity Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | $ | 143,824,892 | $ | — | $ | — | $ | 143,824,892 | |||||||||||
Investment Companies | 1,032,020 | — | — | 1,032,020 | |||||||||||||||
Total Investments | 144,856,912 | — | — | 144,856,912 |
* Investments in Other Financial Instruments are derivative instruments reflected in the Investment in Securities. All derivatives currently held are reflected at the gross unrealized appreciation (depreciation) on the investments.
Level 2 Measurements:
Government obligations comprised of U.S. Treasury, agency and government guaranteed fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on quoted prices in markets that are not active or using matrix pricing or other similar techniques using standard market observable inputs such as the benchmark U.S. Treasury yield curve, the spread of the U.S. Treasury curve for the identical security and comparable securities that are actively traded.
Asset-backed and other mortgage-backed securities comprised of RMBS, CMBS and ABS fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information including: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans, etc.
Corporate obligations comprised of U.S. corporate and foreign corporate fixed maturity securities – These securities are principally valued using the market and income approaches. Valuation is based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques that use standard market observable inputs such as benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Investment grade privately placed securities are valued using discounted cash flow methodologies using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer.
Long-term and short-term debt securities comprised of foreign government and state and political subdivision fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market observable inputs including benchmark U.S. Treasury or other yields, issuer ratings, broker-dealer quotes, issuer spreads and reported trades of similar securities, including those within the same sub-sector or with a similar maturity or credit rating.
Forward Foreign Currency – These derivatives are traded in the over-the-counter derivative market and are principally valued using market price quotations or industry recognized modeling techniques. The significant inputs to the models are observable in the market or can be derived from or corroborated by observable market data. These significant inputs may include interest rates, foreign currency exchange rates, interest rate curves, contractual terms, market prices, and measures of volatility.
The Funds' policy is to recognize transfers between the levels as of the end of the period. There were no transfers of financial assets between Levels 1, 2 and 3 during the period.
131
Securian Funds Trust
Notes to Financial Statements – continued
(7) Derivative Instruments Reporting
The Trust provides, when applicable, disclosures of the location, by line item, of fair value amounts in the Statement of Assets and Liabilities and the location, by line item, of amounts of gains and losses reported in the Statement of Operations. The derivative instruments outstanding as of period end are disclosed in the Investments in Securities. The following tables represent the average monthly volume of the Fund's derivative transactions during the year ended December 31, 2021:
Average Notional Amount | |||||||
SFT Balanced Stabilization Fund | |||||||
Futures Contracts | $ | 199,431,889 | (a) | ||||
Purchased options contracts | 861,697 | ||||||
Written options contracts | (372,985 | )(a) | |||||
SFT Core Bond Fund | |||||||
Futures Contracts | $ | 88,442,437 | |||||
SFT Equity Stabilization Fund | |||||||
Futures Contracts | $ | 39,800,275 | |||||
Purchased Options contracts | 442,388 | ||||||
Written options contracts | (189,530 | )(a) | |||||
SFT Index 400 Mid-Cap Fund | |||||||
Futures Contracts | $ | 9,455,895 | |||||
SFT Index 500 Fund | |||||||
Futures Contracts | $ | 16,376,874 | |||||
SFT International Bond Fund | |||||||
Futures Contracts | $ | 7,745,287 | (b) | ||||
Forward foreign currency contracts | 72,688,958 | (a) |
(a) Positions were open for eleven months during the period.
(b) Positions were open for eight months during the period.
Equity derivatives were purchased or sold to manage the SFT Index 400 Mid-Cap and SFT Index 500 Funds' shareholder liquidity and to attempt to replicate intended stock investments to maintain fully invested Funds. Equity index options are utilized by the SFT Balanced Stabilization Fund and the SFT Equity Stabilization Fund to manage the equity exposure while attempting to reduce the volatility and risk of the Funds.
Interest rate derivatives were purchased or sold in the SFT Core Bond Fund and SFT International Bond Fund to both manage the average duration of the fixed income portfolio and to hedge against the effects of interest rate changes on a portfolio's current or intended investments.
Foreign exchange derivatives were used to attempt to hedge against the effects of exchange rate changes within the SFT International Bond Fund's current or intended investments in foreign securities, as well as to more efficiently obtain exposure to foreign currencies or to take advantage of cross currency markets in order to benefit from valuation differentials and shifts in pricing within the currency markets.
132
Securian Funds Trust
Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
The tables below detail the risk exposure of each Fund from derivative instruments:
Risk Exposure | |||||||||||||||
Equity Contracts | Interest Rate Contracts | Foreign Exchange Contracts | |||||||||||||
SFT Balanced Stabilization Fund | |||||||||||||||
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||
Investments in securities, at market value (purchased options) | $ | 115,735 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||
Written options contracts | $ | (1,896 | ) | $ | — | $ | — | ||||||||
The Effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2021 | |||||||||||||||
Net Realized Gain (Loss) on Derivatives: | |||||||||||||||
Futures contracts | $ | 32,506,886 | $ | — | $ | — | |||||||||
Purchased options contracts | (6,314,001 | ) | — | — | |||||||||||
Written options contracts | 2,830,676 | — | — | ||||||||||||
Total | $ | 29,023,561 | $ | — | $ | — | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Derivatives: | |||||||||||||||
Futures contracts | $ | (1,797,365 | ) | $ | — | $ | — | ||||||||
Purchased options contracts | (158,866 | ) | — | — | |||||||||||
Written options contracts | 6,454 | — | — | ||||||||||||
Total | $ | (1,949,777 | ) | $ | — | $ | — | ||||||||
SFT Core Bond Fund | |||||||||||||||
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||
Variation margin on futures contracts* | $ | — | $ | 489,185 | $ | — | |||||||||
Liabilities: | |||||||||||||||
Variation margin on futures contracts* | $ | — | $ | (430,043 | ) | $ | — | ||||||||
The Effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2021 | |||||||||||||||
Net Realized Gain (Loss) on Derivatives: | |||||||||||||||
Futures contracts | $ | — | $ | (1,138,041 | ) | $ | — | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on Derivatives: | |||||||||||||||
Futures contracts | $ | — | $ | 223,520 | $ | — |
133
Securian Funds Trust
Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
Risk Exposure | |||||||||||||||
Equity Contracts | Interest Rate Contracts | Foreign Exchange Contracts | |||||||||||||
SFT Equity Stabilization Fund | |||||||||||||||
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||
Investments in securities, at market value (purchased options) | $ | 49,110 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||
Variation margin on futures contracts* | $ | (74,986 | ) | $ | — | $ | — | ||||||||
Written options contracts | (752 | ) | — | — | |||||||||||
Total | $ | (75,738 | ) | $ | — | $ | — | ||||||||
The Effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2021 | |||||||||||||||
Net Realized Gain (Loss) on Derivatives: | |||||||||||||||
Futures contracts | $ | 4,828,219 | $ | — | $ | — | |||||||||
Purchased options contracts | (3,329,351 | ) | — | — | |||||||||||
Written options contracts | 1,453,697 | — | — | ||||||||||||
Total | $ | 2,952,565 | $ | — | $ | — | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Derivatives: | |||||||||||||||
Futures contracts | $ | (74,986 | ) | $ | — | $ | — | ||||||||
Purchased options contracts | (82,998 | ) | — | — | |||||||||||
Written options contracts | 2,358 | — | — | ||||||||||||
Total | $ | (155,626 | ) | $ | — | $ | — | ||||||||
SFT Index 400 Mid-Cap Fund | |||||||||||||||
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||
Variation margin on futures contracts* | $ | 202,470 | $ | — | $ | — | |||||||||
The Effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2021 | |||||||||||||||
Net Realized Gain (Loss) on Derivatives: | |||||||||||||||
Futures contracts | $ | 2,206,307 | $ | — | $ | — | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Derivatives: | |||||||||||||||
Futures contracts | $ | 22,548 | $ | — | $ | — | |||||||||
SFT Index 500 Fund | |||||||||||||||
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||
Variation margin on futures contracts* | $ | 703,719 | $ | — | $ | — | |||||||||
The Effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2021 | |||||||||||||||
Net Realized Gain (Loss) on Derivatives: | |||||||||||||||
Futures contracts | $ | 3,962,145 | $ | — | $ | — | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Derivatives: | |||||||||||||||
Futures contracts | $ | 429,705 | $ | — | $ | — |
134
Securian Funds Trust
Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
Risk Exposure | |||||||||||||||
Equity Contracts | Interest Rate Contracts | Foreign Exchange Contracts | |||||||||||||
SFT International Bond Fund | |||||||||||||||
Fair Value of Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2021 | |||||||||||||||
Assets: | |||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $ | — | $ | — | $ | 691,299 | |||||||||
Variation margin on futures contracts* | — | 5,838 | — | ||||||||||||
Total | $ | — | $ | 5,838 | $ | 691,299 | |||||||||
Liabilities: | |||||||||||||||
Unrealized depreciation on forward foreign currency contracts | $ | — | $ | — | $ | (443,282 | ) | ||||||||
Variation margin on futures contracts* | — | (122,196 | ) | — | |||||||||||
Total | $ | — | $ | (122,196 | ) | $ | (443,282 | ) | |||||||
The Effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 2021 | |||||||||||||||
Net Realized Gain (Loss) on Derivatives: | |||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | (2,919,206 | ) | ||||||||
Futures contracts | — | (70,565 | ) | — | |||||||||||
Total | $ | — | $ | (70,565 | ) | $ | (2,919,206 | ) | |||||||
Net Change in Unrealized Appreciation (Depreciation) on Derivatives: | |||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | 2,689,823 | |||||||||
Futures contracts | — | (116,358 | ) | — | |||||||||||
Total | $ | — | $ | (116,358 | ) | $ | 2,689,823 |
* Includes cumulative appreciation/depreciation of futures contracts as reported in the notes to the Schedules of Investments in Securities. Only the current day's variation margin is reported within the Statement of Assets and Liabilities.
The Funds may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. The Funds manage credit risk related to derivatives by entering into transactions with highly rated counterparties. Generally, the current credit exposure of the derivative contracts is limited to the positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting arrangements and any collateral received pursuant to credit support annexes. Because exchange traded derivatives are purchased through regulated exchanges and positions are settled regularly, the Funds have minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments. For the year ended December 31, 2021 none of the Funds' derivatives were subject to master netting arrangements.
(8) Affiliated Ownership
The SFT Balanced Stabilization Fund invests in underlying securities and other investment companies, of which certain underlying funds (affiliated underlying funds) may be deemed to be under common control with the SFT Balanced Stabilization Fund because they share the same investment advisor, Securian AM, and because they are overseen by the same Board. The SFT Balanced Stabilization Fund will achieve its equity exposure by investing primarily in Class 1 Shares of the SFT Index 500 Fund, an affiliated fund in the Trust that seeks investment results that correspond generally to the price and yield performance of the common stocks included in the
135
Securian Funds Trust
Notes to Financial Statements – continued
(8) Affiliated Ownership – (continued)
Standard & Poor's 500® Index. A summary of all transactions with the affiliated SFT Index 500 Fund as of December 31, 2021 are as follows:
As of December 31, 2021 | |||||||||||||||||||
Fund/ Underlying Fund | Beginning Value as of January 1, 2021 | Change in Unrealized Appreciation/ Depreciation | Ending Value | Share Balance | |||||||||||||||
SFT Balanced Stabilization Fund | |||||||||||||||||||
SFT Index 500 Fund | $ | 223,777,991 | $ | 63,436,647 | $ | 287,214,638 | 14,224,618 |
(9) Other Risks
An outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and was declared a pandemic by the World Health Organization. The impact of COVID-19 has been and could be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund's investments. This may impact liquidity in the marketplace, which in turn may affect the Fund's ability to meet redemption requests. Public health crises caused by the COVID-19 pandemic may exacerbate other pre-existing political, social, and economic risks in certain countries or globally. The duration of the COVID-19 pandemic and its effects cannot be determined.
(10) Recent Accounting Pronouncements
In October 2020, the Securities and Exchange Commission (SEC) adopted new regulations governing the use of derivatives by registered investment companies. Rule 18f-4 will impose limits on the amount of derivatives a fund could enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, and require funds whose use of derivatives is more than a limited specified exposure to establish and maintain a derivatives risk management program and appoint a derivatives risk manager. While the new rule became effective February 19, 2021, funds will not be required to fully comply with the new rule until August 19, 2022. It is not currently clear what impact, if any, the new rule will have on the availability, liquidity or performance of derivatives. When fully implemented, the new rule may require changes in how a Fund will use derivatives, may adversely affect a Fund's performance, and may increase costs related to a Fund's use of derivatives.
On December 3, 2020, the SEC adopted new rule 2a-5 (Valuation Rule) under the Investment Company Act of 1940, establishing an updated regulatory framework for fund valuation. The Valuation Rule, in part, provides a framework for good faith fair value determination and permits a Board to designate fair value determinations to a fund's investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Valuation Rule became effective on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Valuation Rule and its effect on the Funds.
(11) Subsequent Events
Management has evaluated subsequent events for the Trust through the date of the filing, and has concluded there were no material events that would require disclosure.
136
Securian Funds Trust
Other Information
(unaudited)
Fund Expenses Paid by Shareholders
Shareholders of the Trust incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; (the Trust does not impose transaction costs, but you will incur such costs in connection with the variable life insurance policies and variable annuity contracts that invest in the Funds) and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Trust expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2021 through December 31, 2021. Expenses paid during the period in the tables below are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by number of days in most recent fiscal half-year divided by 365 to reflect the entire year.
Actual Expenses
The table below provides information about actual account values and actual expenses for the Funds. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table for the fund you own under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Actual Expenses | |||||||||||||||||||||||||||||||
CLASS 1 | CLASS 2 | ||||||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | |||||||||||||||||||||||||
SFT Balanced Stabilization Fund | $ | 1,000 | NA | NA | NA | $ | 1,055.00 | 0.85 | % | $ | 4.40 | ||||||||||||||||||||
SFT Core Bond Fund | 1,000 | $ | 999.60 | 0.49 | % | $ | 2.47 | 998.30 | 0.74 | % | 3.73 | ||||||||||||||||||||
SFT Delaware IvySM Growth Fund | 1,000 | NA | NA | NA | 1,132.00 | 0.96 | % | 5.16 | |||||||||||||||||||||||
SFT Delaware IvySM Small Cap Growth Fund | 1,000 | NA | NA | NA | 945.10 | 1.24 | % | 6.08 | |||||||||||||||||||||||
SFT Equity Stabilization Fund | 1,000 | NA | NA | NA | 1,048.30 | 0.87 | % | 4.49 | |||||||||||||||||||||||
SFT Government Money Market Fund | 1,000 | NA | NA | NA | 1,000.00 | 0.03 | % | 0.15 | |||||||||||||||||||||||
SFT Index 400 Mid-Cap Fund | 1,000 | 1,058.60 | 0.28 | % | 1.45 | 1,057.30 | 0.53 | % | 2.75 | ||||||||||||||||||||||
SFT Index 500 Fund | 1,000 | 1,114.90 | 0.19 | % | 1.01 | 1,113.50 | 0.44 | % | 2.34 | ||||||||||||||||||||||
SFT International Bond Fund | 1,000 | 989.10 | 1.06 | % | 5.31 | 987.90 | 1.31 | % | 6.56 | ||||||||||||||||||||||
SFT Real Estate Securities Fund | 1,000 | 1,172.20 | 0.87 | % | 4.76 | 1,170.80 | 1.12 | % | 6.13 | ||||||||||||||||||||||
SFT T. Rowe Price Value Fund | 1,000 | NA | NA | NA | 1,089.60 | 1.05 | % | 5.53 | |||||||||||||||||||||||
SFT Wellington Core Equity Fund | 1,000 | 1,103.20 | 0.84 | % | 4.45 | 1,101.80 | 1.08 | % | 5.72 |
137
Securian Funds Trust
Other Information – continued
(unaudited)
Hypothetical Example for Comparison Purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds' actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Funds' and other funds. To do so, compare the 5% hypothetical example of the funds you own with the 5% hypothetical examples that appear in the shareholder reports of other similar funds.
Hypothetical Expenses | |||||||||||||||||||||||||||||||
CLASS 1 | CLASS 2 | ||||||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | |||||||||||||||||||||||||
SFT Balanced Stabilization Fund | $ | 1,000 | NA | NA | NA | $ | 1,020.92 | 0.85 | % | $ | 4.33 | ||||||||||||||||||||
SFT Core Bond Fund | 1,000 | $ | 1,022.74 | 0.49 | % | $ | 2.50 | 1,021.48 | 0.74 | % | 3.77 | ||||||||||||||||||||
SFT Delaware IvySM Growth Fund | 1,000 | NA | NA | NA | 1,020.37 | 0.96 | % | 4.89 | |||||||||||||||||||||||
SFT Delaware IvySM Small Cap Growth Fund | 1,000 | NA | NA | NA | 1,018.95 | 1.24 | % | 6.31 | |||||||||||||||||||||||
SFT Equity Stabilization Fund | 1,000 | NA | NA | NA | 1,020.82 | 0.87 | % | 4.43 | |||||||||||||||||||||||
SFT Government Money Market Fund | 1,000 | NA | NA | NA | 1,025.05 | 0.03 | % | 0.15 | |||||||||||||||||||||||
SFT Index 400 Mid-Cap Fund | 1,000 | 1,023.79 | 0.28 | % | 1.43 | 1,022.53 | 0.53 | % | 2.70 | ||||||||||||||||||||||
SFT Index 500 Fund | 1,000 | 1,024.25 | 0.19 | % | 0.97 | 1,022.99 | 0.44 | % | 2.24 | ||||||||||||||||||||||
SFT International Bond Fund | 1,000 | 1,019.86 | 1.06 | % | 5.40 | 1,018.60 | 1.31 | % | 6.67 | ||||||||||||||||||||||
SFT Real Estate Securities Fund | 1,000 | 1,020.82 | 0.87 | % | 4.43 | 1,019.56 | 1.12 | % | 5.70 | ||||||||||||||||||||||
SFT T. Rowe Price Value Fund | 1,000 | NA | NA | NA | 1,019.91 | 1.05 | % | 5.35 | |||||||||||||||||||||||
SFT Wellington Core Equity Fund | 1,000 | 1,020.97 | 0.84 | % | 4.28 | 1,019.76 | 1.08 | % | 5.50 |
Please note that the expenses shown in both tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the information provided in the hypothetical example table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Proxy Voting Policies and Procedures
A description of the policies and procedures that Securian AM uses to vote proxies related to each Fund's portfolio securities is set forth in the Trust's Statement of Additional Information which is available without charge, upon request, by calling, toll-free, 800-995-3850 or on the Securities and Exchange Commission's website at www.sec.gov. The Trust will provide this document within three business days of receipt of a request, by first-class mail or other means designed to ensure equally prompt delivery.
Proxy Voting Record
The Trust's proxy voting record for the 12 month period ended June 30 is available by calling, toll-free, 866-330-7355 or on the Securities and Exchange Commission's website at www.sec.gov no later than August 31 each year. The Trust will also provide this information, within three business days of receipt of a request, by first-class mail or other means designed to ensure equally prompt delivery.
138
Securian Funds Trust
Other Information – continued
(unaudited)
Availability of Quarterly Schedule of Investments
The Trust files its complete schedule of investment holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Previously, the Trust filed a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-PORT and N-Q are available on the SEC's website at www.sec.gov.
139
Securian Funds Trust
Statement Regarding Liquidity Risk Management Program
(unaudited)
The following statement discusses the operation and effectiveness of the Funds' liquidity risk management program for the period from January 1, 2021 through December 31, 2021 and describes the Board's review of the Funds' liquidity risk management program that took place during the six-month period ended June 30, 2022.
The Funds have adopted a Liquidity Risk Management Program (the "LRM Program"). The Funds' Board has appointed the Securian AM Liquidity Risk Oversight Committee (the "Committee") as the administrator of the LRM Program. In its capacity as program administrator, the Committee oversees and monitors the LRM Program for the Funds. In addition, the Committee assesses and manages the Funds' liquidity risk, which is the risk that a Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund. The Committee assesses and manages liquidity risk by classifying and reviewing periodically the classification of Fund investments for liquidity risk management purposes; reporting periodically to the Board on Fund liquidity risk and the status of the LRM Program; and determining the policies, procedures and controls necessary to create and maintain the LRM Program, among other means. The Committee's process of determining the degree of liquidity of the Funds' investments is supported by one or more third-party liquidity assessment vendors.
The Funds' Board reviewed a report prepared by the Committee to address the operation of the LRM Program, assess its adequacy and effectiveness of implementation, including (if applicable), the operation of the highly liquid investment minimum and any material changes to the LRM Program for the period from January 1, 2021 through December 31, 2021 (the "Covered Period"). To prepare this report, the Committee discussed the operation and effectiveness of the Funds' third-party liquidity assessment services in light of the liquidity risks posed by each Fund. Additionally, the Committee reviewed portfolio managers' responses to the LRM Program's Annual Liquidity Risk Assessment Review Checklist for each Fund. As a result of its review, the Committee reported the following to the Board:
— The Funds' LRM Program operated effectively during the Covered Period, was adequately designed and was effectively implemented.
— Because each Fund primarily holds assets that are highly liquid investments, the Funds do not have highly liquid investments minimums. It is expected each Fund will continue to primarily hold assets that are highly liquid investments for the foreseeable future.
— There were no material changes to the LRM Program during the Covered Period.
— There were no breaches of any Fund's restriction on holding greater than 15% illiquid assets.
140
Securian Funds Trust
Trustees and Executive Officers
(unaudited)
Under Delaware law, the Board of Trustees of the Trust has overall responsibility for managing the Trust in good faith and in a manner reasonably believed to be in the best interests of the Trust. The Trustees meet periodically throughout the year to oversee the Trust's activities, review contractual arrangements with companies that provide services to the Trust, and review the performance of the Trust and its Funds. One of the four current Trustees is considered an "interested person" (as defined in the Investment Company Act of 1940) of the Trust. The other three Trustees, because they are not interested persons of the Trust, are considered independent ("Independent Trustees") and are not employees or officers of, and have no financial interest in, the Trust's investment adviser, Securian Asset Management, Inc. ("Securian AM") or its affiliated companies, including Minnesota Life Insurance Company. 75% of the Board of Trustees is required to be comprised of Independent Trustees.
Only executive officers and other officers who perform policy-making functions with the Trust are listed. None of the Trustees is a director of any public company (a company required to file reports under the Securities Exchange Act of 1934) or of any registered investment companies other than the Trust. Each Trustee serves for an indefinite term, until his or her resignation, death or removal.
The Funds' Statement of Additional Information contains additional information about the Funds' Trustees and is available without charge upon request, by calling, toll free, 800-995-3850.
Position with Trust
Name, Address(1) and Length of Principal Occupation(s)
and Year of Birth, Time Served(2) During Past 5 Years
Independent Trustees
Julie K. Getchell 1954 Trustee since 2011
Retired; Senior Financial Consultant Cargill, 2009-2012; Chief Financial Officer, La Grosse Global Fund Services, 2007-2009; Senior Managing Director, Black River Asset Management, 2005-2007; Consultant, Black River Asset Management, 2004-2005; Chief Financial Officer, Prestige Resorts & Destinations, 2001-2003; Chief Operating Officer, Insight Investment Management, Inc., 1991-1996; Chartered Financial Analyst; CPA—inactive
Linda L. Henderson 1949 Trustee since 2007
Retired; Professional Adviser, Carlson School of Management, working with faculty and MBA students managing Carlson Growth Fund. Semi-retirement, 2004-2007. RBC Wealth Management (formerly Dain Bosworth and Dain Rauscher) 1985-2004. Senior Vice President and Director of Fixed Income Research and Strategies, 2000-2004. Director of Retail Fixed Income. 1996-2000. Director of Financial Services, 1994-1996. Manager of the Investment Management Group, 1992-1994. Consultant, Investment Management Group, 1991-1992. Investment Executive, 1985-1991. Assistant Professor of Business Administration/Finance, University of Wisconsin-River Falls, 1980-1985. Chartered Financial Analyst
William C. Melton 1947 Trustee since 2002
Retired; member, State of Minnesota Council of Economic Advisors from 1988 to 1994, and again from 2010 to the present; various senior positions at American Express Financial Advisors (formerly Investors Diversified Services and, thereafter, IDS/American Express) from 1982 through 1997, including Chief Economist and, thereafter, Chief International Economist
Interested Trustee and Principal Executive Officer
David M. Kuplic 1957 Trustee since 2016 and President since 2011
Retired; Senior Vice President, Minnesota Life Insurance Company from June 2007 to June 2021; President and CEO, Securian AM from November 2017 to June 2021; Senior Vice President and Director, Advantus Capital
141
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
Management, Inc., February 2006 to November 2017; Senior Vice President, Securian Financial Group, Inc. from June 2007 to June 2021; Senior Vice President, Securian Life Insurance Company from June 2007 to June 2021; President and Director, Marketview Properties, LLC (entity holding real estate assets) from January 2010 to June 2021; President and Director, Marketview Properties II, LLC (entity holding real estate assets) from March 2010 to June 2021; President and Director, Marketview Properties III, LLC (entity holding real estate assets) from January 2012 to June 2021; President and Director, Marketview Properties IV, LLC (entity holding real estate assets) from January 2012 to June 2021
Other Executive Officers(3)
Kevin L. Ligtenberg 1973 Vice President and Treasurer since 2021
Vice President, Director of Investment Operations, Securian AM since August 2021; Director of Investment Operations, Securian AM from May 2021 to July 2021; Manager of Investment Operations, Securian AM from March 2013 to May 2021
Christopher B. Owens 1977 Vice President since 2020
Second Vice President—Retail Life and Annuity Sales, Securian Financial Group, Inc. since June 2018; National Sales Vice President—Retail Life and Annuity Sales, Securian Financial Group, Inc., October 2011 to June 2018
Paul Jason Thibodeaux 1979 Secretary since 2021
Senior Investment Counsel, Securian AM since January, 2018; Attorney with the law firm of Gray Plant Mooty (now known as Lathrop GPM, LLP) from 2014 to 2018
(1) Unless otherwise noted, the address of each Trustee and officer is the address of the Trust: 400 Robert Street North, St. Paul, Minnesota 55101.
(2) The years reflect when a person became a director or officer of Advantus Series Fund, the predecessor to the Trust.
(3) Although not a corporate officer of the Trust, Michael T. Steinert, born in 1975, has served as the Trust's Chief Compliance Officer since August 2017. Mr. Steinert is also Senior Vice President, Chief Operating Officer, Treasurer, and Chief Compliance Officer of Securian Asset Management, Inc.
142
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This offering is available through Securian Financial Services, Inc., a registered broker/dealer. Securian Financial Services, Inc. is the distributor of Minnesota Life and Securian Life variable insurance products.
This report may be used as sales literature in connection with the offer or sale of variable annuity or variable life insurance contracts funded by Securian Funds Trust ("Trust") if preceded or accompanied by (a) the current prospectus for the Trust and such contracts and (b) the current applicable variable annuity or variable life performance report.
Securian Financial Services, Inc.
www.securian.com
Securities Dealer, Member FINRA/SIPC.
Registered Investment Advisor
400 Robert Street North, St. Paul, MN 55101-2098
1.888.237.1838
F38897 Rev 2-2022
Minnesota Life Insurance Company
A Securian Company
Securian Life Insurance Company
A New York admitted insurer
400 Robert Street North
St. Paul, MN 55101-2098
PRESORTED STANDARD
U.S. POSTAGE PAID
CAROL STREAM, IL
PERMIT NO. 1480
©2021 Securian Funds Trust All rights reserved.
F38897 Rev 2-2022
Call 1-800-995-3850 to receive your financial documents electronically. It's fast and convenient.
ITEM 2. CODE OF ETHICS.
Filed herewith as Exhibit 12(a)(1). During the period covered by this report, there has been no amendment to the code of ethics that relates to any element of the code of ethics definition set forth in paragraph (b) of Item 2 of Form N-CSR, nor has the registrant granted a waiver, including an implicit waiver, from a provision of the code of ethics to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions that relates to one or more of the items set forth in paragraph (b) of Item 2 of form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the Trust has determined that Julie K. Getchell, a member of the Board's Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee financial expert," and has designated Ms. Getchell as the Audit Committee's financial expert. Ms. Getchell is an "independent" Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) | Audit Fees |
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant to the registrant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
2021 | 2020 | |||||
$ | 333,668 | $ | 328,090 |
(b) | Audit-Related Fees |
The aggregate fees billed in each of the last two fiscal years for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item 4 were as follows:
2021 | 2020 | |||||
$- | $- |
There were no fees billed in each of the last two fiscal years for assurance and related services rendered by the principal accountant to the registrant's investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(c) | Tax Fees |
The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice, tax planning and tax return preparation were as follows:
2021 | 2020 | |||||
$ | 8,525 | $ | 7,400 |
There were no fees billed in each of the last two fiscal years for professional services rendered by the principal accountant to the investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) | All Other Fees |
The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registrant, other than the services reported in paragraphs (a) – (c) of this Item 4 were as follows:
2021 | 2020 | |||||
$ | 3,941 | $ | 6,165 |
There were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant, other than the services reported in paragraphs (a) – (c) of this Item 4, that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e)(1) Registrant's audit committee has adopted the following pre-approval policies and procedures in accordance with paragraph (c)(7) of Rule 2-01 of Regulation S-X:
SECURIAN FUNDS TRUST
AUDIT COMMITTEE POLICY
Regarding Pre-Approval of Services Provided by the Independent Auditor
The Audit Committee (the “Committee”) of the Securian Funds Trust (the “Trust”) has responsibility for ensuring that all services performed by the independent audit firm (the “Auditor”) for the Trust do not impair the Auditor’s independence. This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations. In this regard, the Committee should:
● | Understand the nature of the professional services expected to be provided and their impact on the Auditor’s independence and audit quality |
● | Examine and evaluate the safeguards put into place by the Trust and the Auditor to safeguard independence |
● | Meet semi-annually with the engagement partner of the Auditor |
● | Consider approving categories of service that are not deemed to impair independence for a one-year period |
It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.
Policy for Audit and Non-Audit Services Provided to the Trust
On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the Auditor directly for the Trust. At least annually the Committee will receive a report from the Auditor of all audit and non-audit services, which were approved during the year.
The engagement of the Auditor for any non-audit service requires the written pre-approval of the Trust’s Treasurer, and all non-audit services performed by the Auditor will be disclosed in the required SEC periodic filings.
In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:
Audit Services
The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:
● | Annual Trust financial statement audits | |
● | SEC and regulatory filings and consents |
Audit-related Services
In addition, the following categories of audit-related services are deemed to be consistent with the role of the Auditor and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
● | Accounting consultations | |
● | Trust merger support services | |
● | Other accounting related matters | |
● | Agreed Upon Procedure Reports | |
● | Attestation Reports | |
● | Other Internal Control Reports |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee of $20,000 or more are subject to pre-approval by the Committee on a case-by-case basis. Individual projects with an estimated fee of less than $20,000 are subject to pre-approval by the then-serving Chair of the Committee on a case-by-case basis. The Chair shall thereafter report to the full Committee on any such matters at the Committee’s next regularly scheduled meeting.
Tax Services
The following categories of tax services are deemed to be consistent with the role of the Auditor and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
● | Tax compliance services related to the filing or amendment of the following: |
o | Federal, state and local income tax compliance; and, |
o | Sales and use tax compliance |
● | Timely RIC qualification reviews | |
● | Tax distribution analysis and planning | |
● | Tax authority examination services | |
● | Tax appeals support services | |
● | Accounting methods studies | |
● | Trust merger support services | |
● | Tax consulting services and related projects |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee of $20,000 or more are subject to pre-approval by the Committee on a case-by-case basis. Individual projects with an estimated fee of less than $20,000 are subject to pre-approval by the then-serving Chair of the Committee on a case-by-case basis. The Chair shall thereafter report to the full Committee on any such matters at the Committee’s next regularly scheduled meeting.
Other Non-audit Services
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the Auditor without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.
Proscribed Services
In accordance with SEC rules on independence, the Auditor is prohibited from performing services in the following categories of non-audit services:
● | Management functions | |
● | Accounting and bookkeeping services | |
● | Internal audit services | |
● | Financial information systems design and implementation | |
● | Valuation services supporting the financial statements | |
● | Actuarial services supporting the financial statements | |
● | Executive recruitment | |
● | Expert services (e.g., litigation support) | |
● | Investment banking |
Policy for Pre approval of Non-Audit Services Provided to Other Affiliated Entities
The Committee is also responsible for pre-approving certain non-audit services provided to Securian Asset Management, Inc. (“Securian AM”) and any other entity under common control with Securian AM that provides ongoing services to the Trust. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the Trust.
Although the Committee is not required to pre-approve all services provided to Securian AM and affiliated service providers, the Committee will annually receive a report from the Auditor on the aggregate fees for all services provided to Securian AM and its affiliates.
Securian Funds Trust
Pre-approval of services
(e)(2) None of the services provided to the registrant described in paragraphs (b) – (d) of this Item 4 were pre-approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees billed for each of the last two fiscal years by the registrant's accountant for services rendered to the registrant and to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant were as follows:
2021 | 2020 | |||||
$ | - | $ | - |
(h) The registrant's audit committee has considered that the provision of the non-audit services rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable. Schedule I – Investments in Securities of Unaffiliated Issuers is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The registrant has a governance committee of its board of trustees, the members of which are all trustees who are not “interested persons” of the registrant, as defined in Section 2(a)(19) of the Investment Company Act of 1940 (“independent trustees”). The governance committee, which operates in accordance with a separate governance committee charter approved by the board of trustees, selects and recommends to the board of trustees individuals for nomination as independent trustees. The names of potential independent trustee candidates are drawn from a number of sources, including recommendations from management of Securian Asset Management, Inc., the registrant’s investment adviser. Each candidate is evaluated by the governance committee with respect to the relevant business and industry experience that would enable the candidate to serve effectively as an independent trustee, as well as his or her compatibility with respect to business philosophy and style. The members of the governance committee may conduct an in-person interview of each viable candidate using a standardized questionnaire. When all of the viable candidates have been evaluated and interviewed, the governance committee determines which of the viable candidates should be presented to the board of trustees for selection to become a member of the board of trustees.
Inasmuch as the registrant does not hold annual meetings of shareholders and meetings of shareholders occur only intermittently, the governance committee does not at present consider nominees recommended by shareholders.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a)(1) Not applicable.
(a)(2) Not applicable.
(a)(3) Not applicable.
(a)(4) Not applicable.
(b) Not applicable.
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit:
Exhibit 99.CODE ETH attached hereto.
(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Investment Company Act of 1940 (17 CFR 270.30a-2):
Exhibit 99.CERT attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Securities Exchange Act of 1934, provide the certifications required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14 under the Securities Exchange Act of 1934 (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the registrant specifically incorporates it by reference:
Exhibit 99.906 CERT attached hereto
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Securian Funds Trust
By (Signature and Title) | /s/ David M. Kuplic | |
David M. Kuplic, President |
Date: February 18, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ David M. Kuplic | |
David M. Kuplic, President (Principal Executive Officer) |
By (Signature and Title) | /s/ Kevin L. Ligtenberg | |
Kevin L. Ligtenberg, Treasurer (Principal Financial Officer) |
Date: February 18, 2022