KP Funds NCSR Certified annual shareholder report (management investment company)

KP Funds N-CSRCertified annual shareholder report (management investment company)

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 811-22838

The KP Funds

(Exact name of registrant as specified in charter)

CT Corporation

101 Federal Street

Boston, MA 02110

(Address of principal executive offices) (Zip code)

SEI Investments

One Freedom Valley Drive

Oaks, PA 19456

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 342-5734

Date of fiscal year end: December 31, 2015

Date of reporting period: December 31, 2015

Item 1. Reports to Stockholders.


The KP Funds

LOGO

KP Retirement Path 2015 Fund: KPRAX

KP Retirement Path 2020 Fund: KPRBX

KP Retirement Path 2025 Fund: KPRCX

KP Retirement Path 2030 Fund: KPRDX

KP Retirement Path 2035 Fund: KPREX

KP Retirement Path 2040 Fund: KPRFX

KP Retirement Path 2045 Fund: KPRGX

KP Retirement Path 2050 Fund: KPRHX

KP Retirement Path 2055 Fund: KPRIX

KP Retirement Path 2060 Fund: KPRJX

KP Large Cap Equity Fund: KPLCX

KP Small Cap Equity Fund: KPSCX

KP International Equity Fund: KPIEX

KP Fixed Income Fund: KPFIX

Annual Report

December 31, 2015


THE KP FUNDS		December 31, 2015



TABLE OF CONTENTS

Shareholder’s Letter			1

Management Discussion and Fund Performance			2

Schedules of Investments			19

Statements of Assets and Liabilities			110

Statements of Operations			114

Statements of Changes in Net Assets			118

Financial Highlights			125

Notes to Financial Statements			126

Report of Independent Registered Public Accounting Firm			137

Trustees and Officers of the Trust			138

Disclosure of Fund Expenses			146

Approval of Investment Advisory Agreement			148

Notice to Shareholders			150

The Funds file their complete schedules of investments with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after period end. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 855-457-3637 (855-4KPFNDS); and (ii) on the Commission’s website at http://www.sec.gov.


THE KP FUNDS		December 31, 2015

Dear Shareholder,

Fiscal Year 2015 was characterized by a healthy US economy, a strengthening US dollar, further slowing in the Chinese economy, and a continuation of the plunge in commodities prices that began in 2014. Performance across the major asset classes ranged from modestly positive for US stocks and bonds, to sharply negative for commodities and emerging markets. Fixed income returns were slightly positive for the year with the Barclays U.S. Aggregate Bond Index returning 0.55%. Large Cap US stocks as measured by the Russell 1000 Index returned 0.92% for the year. Non-US equity markets did not fare as well with the MSCI ACWI ex-US Index losing 5.66% for the year and the MSCI Emerging Markets Equity Index dropping by 14.60%. Returns for inflation sensitive (or real) assets were also modestly positive to sharply negative. US REITs (as measured by the FTSE NAREIT Composite Index) returned 2.05% for the year, while Commodities (as measured by the Bloomberg Commodity Index) dropped by 24.70%.

The KP Retirement Path Funds were launched during the early part of January 2014 to provide participants in KP-sponsored defined contribution plans with diversified exposure to all of these asset classes, as well as a number of others including small cap US equity, natural resource equity, global listed infrastructure, Treasury Inflation Protected Securities, floating rate notes, emerging market debt, and short term bonds. Each of the 10 KP Retirement Path Funds is designed with a specific retirement date in mind. Participants are expected to choose the fund that best aligns with the year that they turn 65 and then contribute to the Fund appropriately over the course of their career. The Funds are designed to take care of the rest by investing in a diversified mix of strategies and asset classes which automatically adjusts to become increasingly conservative over time. By gradually changing its asset allocation in this way, each Fund is designed to help shareholders achieve the appropriate balance between long-term capital growth, inflation protection, and current income for each stage of their savings and investing career.

Since the KP Retirement Path Funds’ inception we have been quite pleased with the performance of the operational infrastructure that was assembled to coordinate the activities of the 19 different investment management organizations responsible for the management of the Funds’ assets. We have also been satisfied from an investment performance perspective. All of the KP Retirement Path Funds outperformed their strategic benchmarks in fiscal year 2015, and with the exception of the KP Retirement Path 2015 and 2020 Funds, are ahead of their benchmarks since their inception in January of 2014 (through December 31, 2015). In terms of absolute performance, fiscal year 2015 was generally characterized by flat to negative returns across the major asset classes. Consequently the returns for the KP Retirement Path Funds ranged from modestly positive (0.14% for the 2015 Fund) to modestly negative (-0.73% for the 2040 Fund).

We continue to believe that the KP Retirement Path Funds are well-designed and include a diverse set of complementary asset classes and strategies managed by a highly capable team of sub-advisors. We remain confident that the Funds are well-positioned to achieve their objectives going into 2016 and beyond.

Respectfully Submitted,




Gregory C. Allen		Ivan S. Cliff, CFA
Portfolio Manager		Portfolio Manager
President, Director of Research		Director of Investment Research

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. For performance data current to the most recent month end, please call 855-4-KPFNDS.


THE KP FUNDS		December 31, 2015


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Performance for the KP Retirement Path Funds for Fiscal Year 2015 was modestly positive to modestly negative on an absolute basis, but was positive across the board on a relative basis compared to the Funds’ strategic benchmarks. In order to better understand the sources of outperformance for the year it is helpful to review the design of the Funds.

Each of the KP Retirement Path Funds is itself a “fund-of-funds”. This means that each of the Funds is composed of a collection of sub-funds, each with a specific purpose that contributes to the overall design. At the highest level these sub-funds can be grouped into six major categories which include: large cap US equities, small cap US equities, international equities, broad fixed income, real (or inflation sensitive) assets, and short term fixed income. Each of the KP Retirement Path Funds varies its exposure to these asset categories over time to ensure that it is achieving the appropriate balance of capital appreciation, current income, inflation protection, and capital preservation. The 2060 Fund, for example, is primarily invested in large cap US equity, small cap US equity, and international equity. The 2015 Fund, on the other hand, has a much greater emphasis on broad fixed income, real assets, and short term fixed income.

The performance of each Fund is compared to its own strategic benchmark. The strategic benchmarks are designed to reflect the target asset allocation for each Fund, while also assuming that each of the underlying asset classes is implemented using a passive index. While Management makes extensive use of passive strategies in the Funds’ implementation to keep costs low, we also employ a number of active strategies in our attempt to add value relative to the strategic benchmarks. Management does not attempt to add value by trying to time markets using tactical asset allocation. Instead we have designed a sophisticated rebalancing algorithm that keeps the Funds very close to their strategic asset allocation targets over time. As a result, virtually all of the relative performance of the Funds versus their strategic benchmarks can be explained by the relative performance of the strategies within each of the six underlying asset classes. Given this understanding, we can now put the relative performance of the KP Retirement Path Funds into perspective by examining the relative performance of each of the underlying asset classes.

The KP Retirement Path Funds achieve their large cap US equity exposure through the use of the KP Large Cap Equity Fund. This Fund is benchmarked to the Russell 1000 Index. The Fund employs five strategies including: a passive S&P 500 Index strategy; an active large cap growth strategy; an active large cap value strategy, and two active large cap blend strategies. The Fund returned 2.91% for the year versus 0.92% for the benchmark. This outperformance of 1.99% at the Fund level was largely explained by the outperformance of the both the active large cap growth strategy and the active large cap value strategy. These strategies outperformed their benchmarks for the year by 5.01% and 3.86% respectively. Because large cap is a significant part of the asset allocation for all of the KP Retirement Path Funds, this was a meaningful source of outperformance across the entire fund family.

The KP Retirement Path Funds achieve their small cap US equity exposure through the use of the KP Small Cap Equity Fund. This Fund is benchmarked to the Russell 2000 Index. The Fund employs seven strategies including a passive Russell 2000 strategy, two active small cap growth strategies, two active small cap value strategies, and two active small cap blend strategies. The Fund returned -4.73% for the year versus -4.41% for the benchmark. This underperformance of -0.32% was largely explained by the underperformance of one of the actively managed value strategies. We have spent considerable time analyzing the performance and have concluded that the underperformance is cyclical and consistent with the sub-advisor’s long-term investment approach. We remain confident in the sub-advisor and the strategy. Because the underperformance at the fund level was minimal, and because small cap is a relatively small part of the asset allocation for the KP Retirement Path Funds, this was not a significant source of relative underperformance across the fund family.

The KP Retirement Path Funds achieve their international equity exposure through the use of the KP International Equity Fund. This Fund is benchmarked to the MSCI ACWI ex-US Index. The Fund employs four strategies including a passive MSCI EAFE strategy, an active MSCI EAFE strategy, an active MSCI ACWI ex-US strategy, and an active emerging markets strategy. The Fund returned -2.79% for the year versus -5.66% for the benchmark. This outperformance of 1.81% was primarily attributable to the active ACWI ex-US strategy which outperformed its benchmark by over 9%. Because international equity is a large part of the asset allocation for the KP Retirement Path Funds, this was a significant source of relative outperformance across the fund family.


THE KP FUNDS		December 31, 2015


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

The KP Retirement Path Funds achieve their broad fixed income exposure through the use of the KP Fixed Income Fund. This Fund is benchmarked to the Barclays U.S. Aggregate Bond Index. The Fund employs four strategies including a passive Barclays Intermediate Government/Credit Index strategy, an active Barclays U.S. Aggregate strategy, an active emerging market debt strategy, and an active bank loan strategy. The KP Fixed Income Fund returned 0.57% for the year versus 0.55% for the benchmark. This relatively modest outperformance of 0.02% did not significantly impact the relative performance of the KP Retirement Path Fund series.

The KP Retirement Path Funds achieve their real assets exposure through the use of a diversified collection of non-affiliated sub-funds each specializing in a different inflation-sensitive strategy. Collectively these strategies returned -3.50% over the measurement period versus -6.41% for their composite benchmark. Four of the seven underlying real assets funds met or exceeded the performance of their respective benchmarks over the measurement period. The global infrastructure strategy did particularly well outperforming its benchmark by over 20% for the year. Because real assets are a relatively small part of the asset allocation for the KP Retirement Path Funds, they had only a modest impact on the relative performance across the series.

The KP Retirement Path Funds achieve their short term fixed income exposure through the use of low-cost index strategies. These sub-funds performed in line with their benchmarks and did not have a material effect on the relative performance across the series.

To determine if one of these funds is an appropriate investment for you, carefully consider the fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information may be found in the fund’s summary and full prospectuses, which may be obtained by calling (855)4-KPFNDS or by visiting the website at www.kp-funds.com. Please read the prospectus carefully before investing.

The KP Retirement Path Funds and the KP Core Funds are mutual funds. They are part of The KP Funds Series Trust, an open-end management investment company that offers shares of diversified portfolios. The funds are advised by Callan Associates Inc., a registered investment advisor. They are administered by SEI Investments Global Funds Services and distributed by SEI investments Distribution Co., which are not affiliated with Callan Associates.

Only participants in the Kaiser Permanente defined contribution plans and 403(b) plans can invest in the funds.

There can be no assurance that a Fund will achieve its stated objectives. An investor may experience losses, at any time, including near, at or after the Fund’s target year. In addition, there is no guarantee that an investor’s investment in the fund will provide any income at or through the years following the Fund’s target year in amounts adequate to meet the investor’s goals or retirement needs.

Investing involves risk including loss of principal. Bond and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Mortgage-backed securities are subject to pre-payment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities. Non-investment grade bonds involve greater risks of default and are more volatile than investment grade securities, due to the speculative nature of the investment. International investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. These risks are heightened when investing in emerging markets or in a single state.

Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Underlying Fund would be adversely affected. The use of leverage by the fund managers may accelerate the velocity of potential losses. Furthermore, the use of derivatives are often more volatile than other investments and magnify the Fund’s gains or losses. Diversification does not protect against market loss.


THE KP FUNDS		December 31, 2015


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Definition of Comparitive Indices

The S&P Target Date^® Series comprises eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date.

The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the Russell 3000 Index.

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The MSCI ACWI ex-US Indes is a free float-adjusted market capitalization-weighted index comprised of equity securities issued by companies from 44 developed market and emerging market countries. It is designed to be a broad measure of the performance of world equity markets excluding the US.

The MSCI EAFE Index captures large, mid, small and micro cap representation across 22 Developed Markets countries (excluding Canada and the United States).

The MSCI Emerging Markets Equity Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

The Barclays U.S. Aggregate Bond Index is a broad-based and measures the performance of the U.S. investment grade bond market. It invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States – including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year.

The FTSE NAREIT Composite Index is a headline index that consists of all REITs included in the FTSE NAREIT All REITs Index that also meet the minimum size and liquidity criteria. The FTSE NAREIT Composite Index is free float adjusted.

The S&P 500 Index is based on market capitalizations of 500 large companies having common stock listed on the New York Stock Exchange or NASDAQ.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2015 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2015 Fund, Institutional Class		0.14	%		1.99	%
S&P Target Date 2015 Index		-0.16	%		2.56	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2015 Fund Benchmark		-0.79	%		2.04	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2020 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2020 Fund, Institutional Class		-0.10	%		1.94	%
S&P Target Date 2020 Index		-0.19	%		2.68	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2020 Fund Benchmark		-1.13	%		1.94	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2025 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2025 Fund, Institutional Class		-0.35	%		1.79	%
S&P Target Date 2025 Index		-0.25	%		2.65	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2025 Fund Benchmark		-1.58	%		1.74	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2030 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2030 Fund, Institutional Class		-0.52	%		1.63	%
S&P Target Date 2030 Index		-0.30	%		2.69	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2030 Fund Benchmark		-2.11	%		1.47	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2035 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2035 Fund, Institutional Class		-0.70	%		1.57	%
S&P Target Date 2035 Index		-0.30	%		2.32	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2035 Fund Benchmark		-2.28	%		1.44	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2040 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2040 Fund, Institutional Class		-0.73	%		1.58	%
S&P Target Date 2040 Index		-0.40	%		2.72	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2040 Fund Benchmark		-2.38	%		1.40	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2045 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2045 Fund, Institutional Class		-0.66	%		1.55	%
S&P Target Date 2045 Index		-0.46	%		2.70	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2045 Fund Benchmark		-2.45	%		1.36	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2050 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2050 Fund, Institutional Class		-0.70	%		1.53	%
S&P Target Date 2050 Index		-0.47	%		2.73	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2050 Fund Benchmark		-2.45	%		1.36	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2055 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2055 Fund, Institutional Class		-0.66	%		1.57	%
S&P Target Date 2055+ Index		-0.54	%		2.69	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2055 Fund Benchmark		-2.45	%		1.36	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2060 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Retirement Path 2060 Fund, Institutional Class		-0.60	%		1.66	%
S&P Target Date 2055+ Index		-0.54	%		2.69	%
S&P 500 Index		1.38	%		7.62	%
Custom Retirement 2060 Fund Benchmark		-2.45	%		1.36	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Large Cap Equity Fund, Institutional Class		2.91	%		7.08	%
Russell 1000 Index		0.92	%		7.08	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Small Cap Equity Fund, Institutional Class		-4.73	%		-0.44	%
Russell 2000 Index		-4.41	%		0.09	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP International Equity Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP International Equity Fund, Institutional Class		-2.79	%		-3.36	%
MSCI ACWI ex-US Index		-5.66	%		-4.36	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends after the deduction of withholding taxes and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2015
	1 Year			Annualized Inception to Date*
KP Fixed Income Fund, Institutional Class		0.57	%		1.64	%
Barclays U.S. Aggregate Bond Index		0.55	%		2.89	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2015 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 60.6%
KP Fixed Income Fund		17,280,736	$	169,178
KP International Equity Fund		3,252,220		28,750
KP Large Cap Equity Fund		7,666,824		80,962
KP Small Cap Equity Fund		1,462,544		13,967

Total Affiliated Registered Investment Companies (Cost $294,387) (000)				292,857

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 39.4%
DFA Commodity Strategy Portfolio		762,407		4,064
DFA International Real Estate Securities Portfolio		964,492		4,784
Lazard Global Listed Infrastructure Portfolio		378,105		5,074
T Rowe Price Institutional Floating Rate Fund		511,373		4,986


Description	Shares		Value (000)

T Rowe Price New Era Fund		157,367	$	4,291
Vanguard Inflation-Protected Securities Fund		1,440,956		14,799
Vanguard REIT Index Fund		588,952		10,301
Vanguard Short-Term Bond Index Fund		7,532,519		78,564
Vanguard Short-Term Inflation-Protected Securities Index Fund		2,630,342		63,601

Total Unaffiliated Registered Investment Companies (Cost $194,947) (000)				190,464

Total Investments — 100.0% (Cost $489,334) (000)			$	483,321

Percentages are based on Net Assets of $483,292 (000).

REIT — Real Estate Investment Trust

As of December 31, 2015, all of the Fund’s investments were considered Level 1 in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles.

For the year ended December 31, 2015, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year. During the year ended, December 31, 2015, there were no Level 3 investments.

For further financial information on individual registered investment companies, available upon request at no charge, please go to the Securities Exchange Commission’s website at http://www.sec.gov or the individual registered investment company’s website.

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

179,272

17,413

(24,051

)

(3,820

)

364

169,178

3,586

921

KP International Equity Fund

36,117

5,018

(11,355

)

(1,191

)

161

28,750

627

—

KP Large Cap Equity Fund

91,163

16,933

(26,119

)

(4,479

)

3,464

80,962

1,111

3,163

KP Small Cap Equity Fund

18,769

756

(4,604

)

(1,336

)

382

13,967

310

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2020 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 67.9%
KP Fixed Income Fund		22,648,430	$	221,728
KP International Equity Fund		8,723,758		77,118
KP Large Cap Equity Fund		13,350,265		140,979
KP Small Cap Equity Fund		4,263,580		40,717

Total Affiliated Registered Investment Companies (Cost $483,621) (000)				480,542

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 32.1%
DFA Commodity Strategy Portfolio		1,181,587		6,298
DFA International Real Estate Securities Portfolio		1,444,794		7,166
Lazard Global Listed Infrastructure Portfolio		554,686		7,444
T Rowe Price Institutional Floating Rate Fund		731,127		7,128


Description	Shares		Value (000)

T Rowe Price New Era Fund		241,901	$	6,597
Vanguard Inflation-Protected Securities Fund		2,063,977		21,197
Vanguard REIT Index Fund		860,226		15,045
Vanguard Short-Term Bond Index Fund		8,219,696		85,731
Vanguard Short-Term Inflation-Protected Securities Index Fund		2,921,466		70,642

Total Unaffiliated Registered Investment Companies (Cost $233,272) (000)				227,248

Total Investments — 100.0% (Cost $716,893) (000)			$	707,790

Percentages are based on Net Assets of $707,746 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

203,183

40,904

(17,499

)

(5,116

)

256

221,728

4,691

1,188

KP International Equity Fund

83,146

12,534

(15,202

)

(3,475

)

115

77,118

1,681

—

KP Large Cap Equity Fund

141,974

17,352

(15,623

)

(4,833

)

2,109

140,979

1,932

5,455

KP Small Cap Equity Fund

45,732

3,195

(5,143

)

(3,444

)

377

40,717

272

900

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2025 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 76.0%
KP Fixed Income Fund		18,574,929	$	181,849
KP International Equity Fund		14,421,249		127,484
KP Large Cap Equity Fund		16,420,166		173,397
KP Small Cap Equity Fund		6,642,980		63,440

Total Affiliated Registered Investment Companies (Cost $551,875) (000)				546,170

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 24.0%
DFA Commodity Strategy Portfolio		1,308,783		6,976
DFA International Real Estate Securities Portfolio		1,445,252		7,168
Lazard Global Listed Infrastructure Portfolio		558,596		7,496
T Rowe Price Institutional Floating Rate Fund		734,302		7,159


Description	Shares		Value (000)

T Rowe Price New Era Fund		242,738	$	6,619
Vanguard Inflation-Protected Securities Fund		2,069,823		21,257
Vanguard REIT Index Fund		870,129		15,220
Vanguard Short-Term Bond Index Fund		5,533,200		57,711
Vanguard Short-Term Inflation-Protected Securities Index Fund		1,779,476		43,028

Total Unaffiliated Registered Investment Companies (Cost $178,451) (000)				172,634

Total Investments — 100.0% (Cost $730,326) (000)			$	718,804

Percentages are based on Net Assets of $718,758 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

154,110

41,793

(9,931

)

(4,259

)

136

181,849

3,844

969

KP International Equity Fund

125,339

20,594

(12,274

)

(6,199

)

127,484

2,778

—

KP Large Cap Equity Fund

162,823

25,258

(10,939

)

(5,150

)

1,405

173,397

2,376

6,682

KP Small Cap Equity Fund

64,322

8,030

(4,083

)

(5,138

)

309

63,440

423

1,400

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2030 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 85.1%
KP Fixed Income Fund		12,570,183	$	123,062
KP International Equity Fund		18,803,276		166,221
KP Large Cap Equity Fund		16,980,387		179,313
KP Small Cap Equity Fund		7,892,121		75,370

Total Affiliated Registered Investment Companies (Cost $552,077) (000)				543,966

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 14.9%
DFA Commodity Strategy Portfolio		1,108,687		5,909
DFA International Real Estate Securities Portfolio		1,309,137		6,493
Lazard Global Listed Infrastructure Portfolio		507,791		6,815
T Rowe Price Institutional Floating Rate Fund		653,820		6,375


Description	Shares		Value (000)

T Rowe Price New Era Fund		208,654	$	5,690
Vanguard Inflation-Protected Securities Fund		1,850,031		19,000
Vanguard REIT Index Fund		753,656		13,181
Vanguard Short-Term Bond Index Fund		1,827,509		19,061
Vanguard Short-Term Inflation-Protected Securities Index Fund		526,086		12,721

Total Unaffiliated Registered Investment Companies (Cost $100,317) (000)				95,245

Total Investments — 100.0% (Cost $652,394) (000)			$	639,211

Percentages are based on Net Assets of $639,173 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

105,525

30,912

(10,614

)

(2,926

)

165

123,062

2,601

653

KP International Equity Fund

154,873

33,946

(14,320

)

(8,263

)

(15

)

166,221

3,620

—

KP Large Cap Equity Fund

168,027

24,304

(8,990

)

(5,189

)

1,161

179,313

2,455

6,893

KP Small Cap Equity Fund

73,021

12,878

(4,789

)

(6,164

)

424

75,370

503

1,660

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2035 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 91.0%
KP Fixed Income Fund		10,823,140	$	105,958
KP International Equity Fund		23,483,271		207,592
KP Large Cap Equity Fund		20,988,690		221,641
KP Small Cap Equity Fund		9,924,949		94,783

Total Affiliated Registered Investment Companies (Cost $640,086) (000)				629,974

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 9.0%
DFA Commodity Strategy Portfolio		1,011,654		5,392
DFA International Real Estate Securities Portfolio		1,125,024		5,580
Lazard Global Listed Infrastructure Portfolio		437,965		5,877


Description	Shares		Value (000)

T Rowe Price Institutional Floating Rate Fund		562,448	$	5,484
T Rowe Price New Era Fund		190,385		5,192
Vanguard Inflation-Protected Securities Fund		1,600,186		16,434
Vanguard REIT Index Fund		649,704		11,364
Vanguard Short-Term Bond Index Fund		637,860		6,653

Total Unaffiliated Registered Investment Companies (Cost $66,316) (000)				61,976

Total Investments — 100.0% (Cost $706,402) (000)			$	691,950

Percentages are based on Net Assets of $691,910 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

87,544

31,564

(10,718

)

(2,595

)

163

105,958

2,240

560

KP International Equity Fund

188,304

44,785

(14,883

)

(10,577

)

(37

)

207,592

4,522

—

KP Large Cap Equity Fund

203,230

33,346

(9,660

)

(6,518

)

1,243

221,641

3,034

8,515

KP Small Cap Equity Fund

89,785

17,945

(5,764

)

(7,657

)

474

94,783

632

2,087

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2040 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 94.0%
KP Fixed Income Fund		6,990,762	$	68,440
KP International Equity Fund		22,900,470		202,440
KP Large Cap Equity Fund		20,292,739		214,291
KP Small Cap Equity Fund		9,399,926		89,769

Total Affiliated Registered Investment Companies (Cost $585,517) (000)				574,940

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 6.0%
DFA Commodity Strategy Portfolio		671,746		3,580
DFA International Real Estate Securities Portfolio		702,128		3,483
Lazard Global Listed Infrastructure Portfolio		293,551		3,939


Description	Shares		Value (000)

T Rowe Price Institutional Floating Rate Fund		369,572	$	3,603
T Rowe Price New Era Fund		122,458		3,339
Vanguard Inflation-Protected Securities Fund		1,064,619		10,934
Vanguard REIT Index Fund		448,758		7,850

Total Unaffiliated Registered Investment Companies (Cost $39,543) (000)				36,728

Total Investments — 100.0% (Cost $625,060) (000)			$	611,668

Percentages are based on Net Assets of $611,633 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2015, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended, December 31, 2015, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

57,133

22,114

(9,241

)

(1,705

)

139

68,440

1,447

361

KP International Equity Fund

180,501

48,306

(15,798

)

(10,483

)

(86

)

202,440

4,406

—

KP Large Cap Equity Fund

192,565

37,643

(10,797

)

(6,497

)

1,377

214,291

2,931

8,222

KP Small Cap Equity Fund

81,843

19,943

(5,160

)

(7,262

)

405

89,769

598

1,976

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2045 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 95.0%
KP Fixed Income Fund		3,446,232	$	33,738
KP International Equity Fund		16,442,762		145,354
KP Large Cap Equity Fund		14,493,042		153,047
KP Small Cap Equity Fund		6,354,584		60,686

Total Affiliated Registered Investment Companies (Cost $401,671) (000)				392,825

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.0%
DFA Commodity Strategy Portfolio		379,161		2,021
DFA International Real Estate Securities Portfolio		421,627		2,091
Lazard Global Listed Infrastructure Portfolio		160,009		2,147


Description	Shares		Value (000)

T Rowe Price Institutional Floating Rate Fund		214,463	$	2,091
T Rowe Price New Era Fund		69,518		1,896
Vanguard Inflation-Protected Securities Fund		598,595		6,148
Vanguard REIT Index Fund		245,257		4,289

Total Unaffiliated Registered Investment Companies (Cost $22,321) (000)				20,683

Total Investments — 100.0% (Cost $423,992) (000)			$	413,508

Percentages are based on Net Assets of $413,485 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2015, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended, December 31, 2015, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

28,127

11,881

(5,507

)

(853

)

33,738

713

178

KP International Equity Fund

123,742

42,452

(13,000

)

(7,594

)

(246

)

145,354

3,248

—

KP Large Cap Equity Fund

131,628

36,448

(11,347

)

(5,121

)

1,439

153,047

2,092

5,852

KP Small Cap Equity Fund

53,723

15,810

(4,235

)

(4,935

)

323

60,686

409

1,334

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2050 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 95.0%
KP Fixed Income Fund		1,431,379	$	14,013
KP International Equity Fund		6,843,126		60,493
KP Large Cap Equity Fund		6,046,756		63,855
KP Small Cap Equity Fund		2,641,497		25,226

Total Affiliated Registered Investment Companies (Cost $168,993) (000)				163,587

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.0%
DFA Commodity Strategy Portfolio		165,011		880
DFA International Real Estate Securities Portfolio		178,630		886
Lazard Global Listed Infrastructure Portfolio		66,772		896


Description	Shares		Value (000)

T Rowe Price Institutional Floating Rate Fund		93,113	$	908
T Rowe Price New Era Fund		30,451		830
Vanguard Inflation-Protected Securities Fund		248,534		2,552
Vanguard REIT Index Fund		98,925		1,730

Total Unaffiliated Registered Investment Companies (Cost $9,379) (000)				8,682

Total Investments — 100.0% (Cost $178,372) (000)			$	172,269

Percentages are based on Net Assets of $172,257 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2015 , there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended, December 31, 2015, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

10,063

6,312

(2,029

)

(363

)

14,013

295

KP International Equity Fund

43,120

25,183

(4,392

)

(3,206

)

(212

)

60,493

1,307

—

KP Large Cap Equity Fund

46,237

23,802

(4,462

)

(2,222

)

500

63,855

868

2,403

KP Small Cap Equity Fund

18,858

10,136

(1,840

)

(2,060

)

132

25,226

167

550

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2055 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 94.9%
KP Fixed Income Fund		225,982	$	2,212
KP International Equity Fund		1,075,131		9,504
KP Large Cap Equity Fund		951,743		10,050
KP Small Cap Equity Fund		413,916		3,953

Total Affiliated Registered Investment Companies (Cost $27,151) (000)				25,719

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.1%
DFA Commodity Strategy Portfolio		26,893		143
DFA International Real Estate Securities Portfolio		28,796		143
Lazard Global Listed Infrastructure Portfolio		10,758		144


Description	Shares		Value (000)

T Rowe Price Institutional Floating Rate Fund		14,990	$	146
T Rowe Price New Era Fund		4,992		136
Vanguard Inflation-Protected Securities Fund		37,930		390
Vanguard REIT Index Fund		15,335		269

Total Unaffiliated Registered Investment Companies (Cost $1,474) (000)				1,371

Total Investments — 100.0% (Cost $28,625) (000)			$	27,090

Percentages are based on Net Assets of $27,088 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2015, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended, December 31, 2015, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):

Value
12/31/2014

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2015

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

1,014

1,574

(318

)

(61

)

2,212

KP International Equity Fund

4,418

7,060

(1,404

)

(526

)

(44

)

9,504

204

—

KP Large Cap Equity Fund

4,674

7,255

(1,567

)

(473

)

161

10,050

135

369

KP Small Cap Equity Fund

1,924

2,957

(627

)

(327

)

3,953

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Retirement Path 2060 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 95.0%
KP Fixed Income Fund		47,748	$	467
KP International Equity Fund		228,206		2,017
KP Large Cap Equity Fund		201,940		2,133
KP Small Cap Equity Fund		88,087		841

Total Affiliated Registered Investment Companies (Cost $5,746) (000)				5,458

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.0%
DFA Commodity Strategy Portfolio		5,768		31
DFA International Real Estate Securities Portfolio		6,233		31
Lazard Global Listed Infrastructure Portfolio		2,333		31


Description	Shares		Value (000)

T Rowe Price Institutional Floating Rate Fund		3,246	$	32
T Rowe Price New Era Fund		1,071		29
Vanguard Inflation-Protected Securities Fund		7,904		81
Vanguard REIT Index Fund		3,146		55

Total Unaffiliated Registered Investment Companies (Cost $302) (000)				290

Total Investments — 100.0% (Cost $6,048) (000)			$	5,748

Percentages are based on Net Assets of $5,748 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2015, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended, December 31, 2015, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2015 (000):


	Value 12/31/2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value 12/31/2015		Dividend Income		Capital Gain Distributions
KP Fixed Income Fund	$	196	$	641	$	(358	)	$	(9	)	$	(3	)	$	467	$	9	$	2
KP International Equity Fund		858		2,848		(1,545	)		(60	)		(84	)		2,017		43		—
KP Large Cap Equity Fund		907		2,949		(1,649	)		(100	)		26			2,133		28		80
KP Small Cap Equity Fund		369		1,171		(624	)		(77	)		2			841		6		18

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares			Value (000)
COMMON STOCK — 98.1%
Consumer Discretionary — 14.2%
Aaron’s		6,645		$	149
Advance Auto Parts		8,765			1,319
Amazon.com*		41,609			28,123
AutoNation*		1,013			60
AutoZone*		394			292
Bed Bath & Beyond*		11,275			544
Best Buy		65,032			1,980
Big Lots		10,587			408
BorgWarner		2,797			121
Brinker International		2,620			126
Cablevision Systems, Cl A		2,973			95
CarMax*		26,189			1,413
Carnival		36,295			1,977
Carter’s		4,926			439
CBS, Cl B		10,147			478
Chipotle Mexican Grill, Cl A*		3,206			1,538
Choice Hotels International		2,867			145
Coach		3,889			127
Comcast, Cl A		172,714			9,746
Darden Restaurants		16,213			1,032
Delphi Automotive PLC		34,805			2,984
Dick’s Sporting Goods		13,961			494
Dillard’s, Cl A		5,068			333
Discovery Communications, Cl A*		5,086			131
Dollar General		6,721			483
Dollar Tree*		3,101	��		239
DR Horton		4,195			134
DSW, Cl A		6,621			158


Description	Shares		Value (000)
Expedia		9,822	$	1,221
Ferrari*		11,460		550
Foot Locker		25,756		1,676
Ford Motor		84,733		1,194
Fossil Group*		1,186		43
GameStop, Cl A		3,961		111
Gap		18,715		462
Garmin		1,649		61
General Motors		49,615		1,687
Gentex		25,989		416
Genuine Parts		2,115		182
GNC Holdings, Cl A		24,088		747
Goodyear Tire & Rubber		57,761		1,887
Graham Holdings, Cl B		321		156
Groupon, Cl A*		90,361		277
H&R Block		3,076		102
Hanesbrands		79,800		2,349
Harley-Davidson		26,604		1,208
Harman International Industries		903		85
Hasbro		7,796		525
Hilton Worldwide Holdings		172,878		3,700
Home Depot		80,584		10,657
Interpublic Group of Companies		86,766		2,020
John Wiley & Sons, Cl A		7,906		356
Johnson Controls		59,947		2,367
Kohl’s		2,451		117
L Brands		10,051		963
Lear		10,356		1,272
Leggett & Platt		6,126		257
Lennar, Cl A		2,395		117
Liberty Interactive QVC Group, Cl A*		4,127		113
Lowe’s		118,521		9,012
Macy’s		26,102		913
Marriott International, Cl A		2,592		174
Mattel		4,590		125
McDonald’s		23,663		2,796
MGM Resorts International*		168,818		3,836
Michael Kors Holdings*		8,330		334
Michaels*		4,265		94
Mohawk Industries*		901		171
MSG Networks*		5,887		122
Murphy USA*		12,473		758
Netflix*		12,708		1,454
Newell Rubbermaid		16,609		732
News, Cl A		43,712		585
NIKE, Cl B		143,210		8,951
Nordstrom		1,749		87

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
Omnicom Group		50,823	$	3,845
O’Reilly Automotive*		1,369		347
priceline.com*		9,089		11,588
PulteGroup		9,276		165
PVH		12,289		905
Ralph Lauren, Cl A		804		90
Ross Stores		5,372		289
Royal Caribbean Cruises		21,600		2,186
Scripps Networks Interactive, Cl A		1,291		71
Signet Jewelers		1,000		124
Sirius XM Holdings*		159,266		648
Skechers U.S.A., Cl A*		12,636		382
Staples		21,952		208
Starbucks		62,247		3,737
Starwood Hotels & Resorts Worldwide		8,478		587
Target		74,063		5,378
TEGNA		30,948		790
Tesla Motors*		10,550		2,532
Thomson Reuters		42,532		1,610
Tiffany		1,492		114
Time		2,659		42
Time Warner		41,530		2,686
Time Warner Cable		7,109		1,319
TJX		14,054		997
TopBuild*		6,681		206
Tractor Supply		33,443		2,859
TripAdvisor*		1,493		127
Twenty-First Century Fox, Cl A		23,035		626
Under Armour, Cl A*		2,400		193
Urban Outfitters*		1,290		29
VF		4,714		293
Viacom, Cl B		50,507		2,079
Walt Disney		32,876		3,455
Whirlpool		3,988		586
Wyndham Worldwide		1,465		106
Wynn Resorts		1,091		76
Yum! Brands		27,824		2,033

				175,398

Consumer Staples — 7.2%
Altria Group		74,507		4,337
Archer-Daniels-Midland		96,608		3,544
Brown-Forman, Cl B		1,382		137
Bunge		16,414		1,121
Campbell Soup		2,413		127
Church & Dwight		1,700		144


Description	Shares		Value (000)
Clorox		1,725	$	219
Coca-Cola		70,412		3,025
Coca-Cola Enterprises		17,802		877
Colgate-Palmolive		12,131		808
ConAgra Foods		10,283		434
Constellation Brands, Cl A		3,523		502
Costco Wholesale		20,116		3,249
CVS Health		99,394		9,718
Danone		28,785		1,948
Diageo PLC		118,546		3,244
Dr Pepper Snapple Group		3,799		354
Estee Lauder, Cl A		14,559		1,282
Flowers Foods		6,968		150
General Mills		70,295		4,053
Hershey		1,961		175
Hormel Foods		1,835		145
JM Smucker		1,568		193
Kellogg		3,403		246
Keurig Green Mountain		1,600		144
Kimberly-Clark		9,630		1,226
Kraft Heinz		14,867		1,082
Kroger		53,719		2,247
McCormick		1,530		131
Mead Johnson Nutrition, Cl A		2,552		201
Molson Coors Brewing, Cl B		8,290		779
Mondelez International, Cl A		37,257		1,671
Monster Beverage*		2,030		302
Nestle		53,966		4,017
Nu Skin Enterprises, Cl A		10,332		391
PepsiCo		47,682		4,764
Philip Morris International		135,786		11,937
Pilgrim’s Pride*		17,257		381
Procter & Gamble		114,781		9,115
Reynolds American		20,563		949
Rite Aid*		11,397		89
Sysco		6,986		286
Tyson Foods, Cl A		3,974		212
Walgreens Boots Alliance		32,876		2,800
Wal-Mart Stores		111,371		6,827
Whole Foods Market		4,549		152

				89,735

Energy — 3.9%
Anadarko Petroleum		6,977		339
Apache		4,896		218
Baker Hughes		14,789		682
Cabot Oil & Gas		5,834		103

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
California Resources*		37,992	$	88
Cameron International*		2,418		153
Chesapeake Energy*		7,081		32
Chevron		58,482		5,261
Cimarex Energy		1,200		107
Columbia Pipeline Group		5,346		107
ConocoPhillips		16,746		782
CONSOL Energy		3,147		25
CVR Energy		8,637		340
Devon Energy		4,965		159
Diamond Offshore Drilling		921		19
Ensco, Cl A		3,207		49
EOG Resources		35,934		2,544
EP Energy, Cl A*		52,033		228
EQT		2,163		113
Exxon Mobil		147,847		11,525
FMC Technologies*		13,381		388
Frank’s International		20,474		342
Halliburton		11,379		387
Helmerich & Payne		1,487		80
Hess		3,096		150
HollyFrontier		19,301		770
Kinder Morgan		24,723		369
Marathon Oil		8,414		106
Marathon Petroleum		55,471		2,876
Murphy Oil		16,515		371
Nabors Industries		34,791		296
National Oilwell Varco		42,305		1,417
Newfield Exploration*		2,237		73
Noble Energy		5,926		195
Occidental Petroleum		52,710		3,564
Oil States International*		7,038		192
ONEOK		2,860		71
PBF Energy, Cl A		12,606		464
Phillips 66		6,445		527
Pioneer Natural Resources		3,695		463
QEP Resources		27,649		370
Range Resources		2,285		56
Schlumberger		63,756		4,447
Southwestern Energy*		5,311		38
Spectra Energy		8,668		207
Superior Energy Services		48,416		652
Tesoro		11,352		1,196
Transocean*		4,691		58
Valero Energy		67,611		4,781
Williams		17,551		451

				48,231


Description	Shares		Value (000)
Financials — 17.2%
ACE		29,707	$	3,471
Affiliated Managers Group*		700		112
Aflac		30,882		1,850
Alleghany*		1,418		678
Allied World Assurance Holdings		9,484		353
Allstate		29,120		1,808
American Express		62,248		4,329
American Financial Group		26,096		1,881
American International Group		37,059		2,297
American National Insurance		4,570		467
American Tower, Cl A‡		5,688		551
Ameriprise Financial		18,788		1,999
Aon PLC		37,501		3,458
Apartment Investment & Management, Cl A‡		2,154		86
Arch Capital Group*		6,765		472
Aspen Insurance Holdings		15,337		741
Assurant		927		75
Assured Guaranty		29,724		786
AvalonBay Communities‡		1,812		334
Axis Capital Holdings		1,670		94
Bank of America		344,998		5,806
Bank of Hawaii		6,381		401
Bank of New York Mellon		136,870		5,642
BB&T		50,906		1,925
Berkshire Hathaway, Cl B*		47,199		6,232
BlackRock, Cl A		8,521		2,902
BOK Financial		8,925		534
Boston Properties‡		2,067		264
Capital One Financial		32,475		2,344
CBL & Associates Properties‡		43,131		533
CBRE Group, Cl A*		41,869		1,448
Charles Schwab		16,323		537
Chubb		24,681		3,274
Cincinnati Financial		1,857		110
Citigroup		171,814		8,891
CME Group, Cl A		4,550		412
CNA Financial		5,964		210
Comerica		28,705		1,201
Corporate Office Properties Trust‡		17,779		388
Crown Castle International‡		13,922		1,204
Discover Financial Services		17,790		954
ETRADE Financial		4,101		122
East West Bancorp		39,646		1,648
Equinix‡		844		255
Equity Commonwealth‡ *		3,807		106

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
Equity LifeStyle Properties‡		18,163	$	1,211
Equity Residential‡		4,884		398
Essex Property Trust‡		932		223
Everest Re Group		3,000		549
Federated Investors, Cl B		12,454		357
Fifth Third Bancorp		10,214		205
Franklin Resources		70,229		2,586
General Growth Properties‡		70,031		1,906
Goldman Sachs Group		37,661		6,788
Hanover Insurance Group		29,588		2,407
Hartford Financial Services Group		14,838		645
HCP‡		6,295		241
Host Hotels & Resorts‡		9,718		149
Huntington Bancshares		18,287		202
Intercontinental Exchange		19,736		5,058
Invesco		11,557		387
Iron Mountain‡		2,586		70
Jones Lang LaSalle		10,060		1,608
JPMorgan Chase		298,965		19,741
KeyCorp		135,592		1,788
Kimco Realty‡		26,941		713
Legg Mason		1,385		54
Leucadia National		4,347		76
Lincoln National		12,820		644
Loews		3,633		139
M&T Bank		2,124		257
Macerich‡		1,745		141
Marsh & McLennan		7,101		394
McGraw Hill Financial		11,770		1,160
MetLife		119,002		5,737
Mid-America Apartment Communities‡		6,533		593
Moody’s		8,475		850
Morgan Stanley		222,948		7,092
Morningstar		3,044		245
MSCI, Cl A		20,262		1,461
Nasdaq		71,723		4,172
Navient		5,308		61
Northern Trust		10,671		769
Old Republic International		37,676		702
People’s United Financial		4,254		69
Plum Creek Timber‡		2,408		115
PNC Financial Services Group		51,945		4,951
Popular		8,975		254
Post Properties‡		24,821		1,468
Principal Financial Group		47,046		2,116
Progressive		7,662		244


Description	Shares		Value (000)
Prologis‡		6,869	$	295
Prudential Financial		41,151		3,350
Public Storage‡		3,511		870
Realty Income‡		3,200		165
Regions Financial		17,101		164
Reinsurance Group of America, Cl A		7,624		652
SEI Investments		15,307		802
Signature Bank*		1,943		298
Simon Property Group‡		5,754		1,119
SL Green Realty‡		1,300		147
State Street		78,103		5,183
SunTrust Banks		91,535		3,921
Synchrony Financial*		11,226		341
Synovus Financial		67,328		2,180
T Rowe Price Group		3,355		240
TD Ameritrade Holding		54,700		1,899
Torchmark		1,487		85
Travelers		74,832		8,445
Unum Group		9,983		332
US Bancorp		142,981		6,101
Validus Holdings		3,803		176
Ventas‡		4,513		255
Vornado Realty Trust‡		2,303		230
Voya Financial		35,750		1,319
Wells Fargo		310,072		16,855
Welltower‡		4,803		327
Weyerhaeuser‡		6,730		202
Willis Group Holdings		100		5
WR Berkley		23,371		1,280
XL Group, Cl A		20,201		791
Zions Bancorporation		41,343		1,129

				213,339

Health Care — 18.2%
Abbott Laboratories		164,966		7,409
AbbVie		33,775		2,001
Aetna		29,100		3,146
Agilent Technologies		30,379		1,270
Alexion Pharmaceuticals*		48,442		9,240
Allergan*		34,842		10,888
Allscripts Healthcare Solutions*		27,247		419
AmerisourceBergen, Cl A		21,537		2,234
Amgen		23,976		3,892
Anthem		43,140		6,015
Baxalta		7,446		291
Baxter International		25,721		981
Becton Dickinson & Company		13,255		2,042

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
Biogen*		12,941	$	3,964
BioMarin Pharmaceutical*		13,400		1,404
Bio-Rad Laboratories, Cl A*		1,542		214
Boston Scientific*		17,728		327
Bristol-Myers Squibb		94,672		6,512
Cardinal Health		54,079		4,828
Celgene*		49,014		5,870
Centene*		6,455		425
Cerner*		4,015		242
Charles River Laboratories International*		25,957		2,087
Cigna		21,095		3,087
Community Health Systems*		35,564		943
CR Bard		16,924		3,206
DaVita HealthCare Partners*		2,148		150
DENTSPLY International		10,441		635
Edwards Lifesciences*		13,722		1,084
Eli Lilly		59,248		4,992
Endo International*		2,900		178
Express Scripts Holding*		68,677		6,003
Gilead Sciences		98,874		10,005
HCA Holdings*		14,818		1,002
Henry Schein*		1,100		174
Hologic*		48,438		1,874
Humana		16,754		2,991
Illumina*		4,900		941
IMS Health Holdings*		13,149		335
Incyte*		30,116		3,266
Intrexon*		7,070		213
Intuitive Surgical*		10,389		5,674
Ionis Pharmaceuticals*		11,479		711
Johnson & Johnson		184,229		18,924
Laboratory Corp of America Holdings*		1,352		167
LifePoint Health*		11,224		824
Mallinckrodt*		27,430		2,047
McKesson		22,500		4,438
Medivation*		27,383		1,324
Medtronic		90,773		6,982
Merck		143,033		7,555
Mettler-Toledo International*		1,592		540
Mylan*		5,667		306
Novartis		8,838		766
Patterson		1,145		52
PerkinElmer		1,596		85
Perrigo		1,932		280
Pfizer		586,547		18,934
Quest Diagnostics		5,540		394


Description	Shares		Value (000)
Quintiles Transnational Holdings*		8,929	$	613
Regeneron Pharmaceuticals*		5,191		2,818
ResMed		20,904		1,122
Roche Holding		3,553		980
Sirona Dental Systems*		4,379		480
St. Jude Medical		57,978		3,581
Stryker		12,780		1,188
Teleflex		3,240		426
Tenet Healthcare*		1,373		42
Thermo Fisher Scientific		25,419		3,606
United Therapeutics*		9,164		1,435
UnitedHealth Group		89,248		10,499
Universal Health Services, Cl B		15,071		1,801
Valeant Pharmaceuticals International*		29,060		2,954
Varian Medical Systems*		1,229		99
Vertex Pharmaceuticals*		33,175		4,174
VWR*		17,441		494
Waters*		7,208		970
Zimmer Biomet Holdings		2,398		246
Zoetis, Cl A		35,074		1,681

				225,992

Industrials — 12.6%
3M		48,732		7,341
ADT		2,349		77
AECOM*		14,602		439
AGCO		1,504		68
Alaska Air Group		42,354		3,410
Allegion		1,156		76
American Airlines Group		137,577		5,826
AMETEK		3,127		168
AO Smith		4,969		381
Babcock & Wilcox, Cl W*		30,354		964
Boeing		102,492		14,819
Canadian National Railway		20,564		1,149
Canadian Pacific Railway		17,700		2,259
Caterpillar		18,394		1,250
CH Robinson Worldwide		1,964		122
Cintas		10,231		932
Copart*		1,887		72
Crane		7,509		359
CSX		37,032		961
Cummins		8,857		780
Danaher		147,529		13,702
Deere		12,483		952
Delta Air Lines		73,964		3,749

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
Dover		1,997	$	122
Dun & Bradstreet		467		49
Eaton PLC		42,140		2,193
Emerson Electric		8,918		427
Equifax		23,879		2,659
Expeditors International of Washington		2,358		106
Fastenal		3,676		150
FedEx		19,866		2,960
Flowserve		43,223		1,819
Fluor		1,985		94
General Dynamics		31,805		4,369
General Electric		244,822		7,626
Hertz Global Holdings*		11,862		169
Honeywell International		58,187		6,026
Huntington Ingalls Industries		24,996		3,171
Illinois Tool Works		25,056		2,322
Ingersoll-Rand		3,467		192
ITT		4,820		175
Jacobs Engineering Group*		11,922		500
JB Hunt Transport Services		1,100		81
JetBlue Airways*		59,883		1,356
Kansas City Southern		1,392		104
Kennametal		12,408		238
L-3 Communications Holdings, Cl 3		1,054		126
Lincoln Electric Holdings		6,793		352
Lockheed Martin		22,933		4,980
ManpowerGroup		3,131		264
Masco		56,043		1,586
Nielsen Holdings		4,800		224
Norfolk Southern		7,722		653
Northrop Grumman		40,352		7,619
Orbital ATK		1,155		103
Owens Corning		15,652		736
PACCAR		4,917		233
Parker-Hannifin		13,048		1,265
Pentair PLC		22,098		1,095
Pitney Bowes		2,752		57
Precision Castparts		3,487		809
Quanta Services*		9,531		193
Raytheon		10,348		1,289
Republic Services, Cl A		3,071		135
Robert Half International		5,922		279
Rockwell Automation		6,972		715
Rockwell Collins		1,736		160
Roper Technologies		1,373		261
RR Donnelley & Sons		6,066		89


Description	Shares		Value (000)
Ryder System		692	$	39
Snap-on		729		125
Southwest Airlines		49,132		2,116
Spirit AeroSystems Holdings, Cl A*		63,702		3,190
Spirit Airlines*		14,541		579
SPX FLOW*		4,790		134
Stanley Black & Decker		14,112		1,506
Stericycle*		1,149		139
Terex		16,137		298
Textron		70,390		2,957
Timken		2,376		68
Trinity Industries		13,462		323
Triumph Group		7,505		298
Tyco International PLC		91,136		2,906
Union Pacific		24,803		1,940
United Continental Holdings*		83,133		4,764
United Parcel Service, Cl B		56,630		5,450
United Rentals*		1,300		94
United Technologies		59,686		5,734
Verisk Analytics, Cl A*		2,100		161
Wabtec		26,600		1,892
Waste Management		7,458		398
WESCO International*		6,683		292
WW Grainger		765		155
Xylem		2,222		81

				155,626

Information Technology — 19.1%
Accenture PLC, Cl A		95,990		10,031
Activision Blizzard		6,900		267
Adobe Systems*		6,610		621
Akamai Technologies*		26,494		1,394
Alliance Data Systems*		880		243
Alphabet, Cl C*		38,263		29,430
Amdocs		36,611		1,998
Amphenol, Cl A		30,606		1,599
Analog Devices		13,520		748
Apple		268,374		28,249
Applied Materials		15,799		295
Arrow Electronics*		3,626		196
ASML Holding, Cl G		15,100		1,340
Autodesk*		2,908		177
Automatic Data Processing		6,168		523
Avago Technologies, Cl A		10,584		1,536
Avnet		39,661		1,699
Broadcom, Cl A		13,922		805
Broadridge Financial Solutions		23,971		1,288

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
Brocade Communications Systems		101,309	$	930
CA		3,866		110
Cadence Design Systems*		36,515		760
CDW		13,065		549
Cisco Systems		252,458		6,855
Citrix Systems*		22,353		1,691
Cognizant Technology Solutions, Cl A*		9,875		593
Computer Sciences		37,993		1,242
CoreLogic*		37,933		1,284
Corning		16,223		297
CSRA		9,541		286
DST Systems		2,379		271
eBay*		95,846		2,634
Electronic Arts*		17,666		1,214
EMC		48,733		1,251
F5 Networks*		17,091		1,657
Facebook, Cl A*		163,717		17,135
Fidelity National Information Services		36,498		2,212
First Solar*		24,616		1,624
Fiserv*		32,151		2,941
FLIR Systems		1,947		55
Genpact*		28,033		700
Global Payments		14,164		914
Harris		1,686		147
Hewlett Packard Enterprise		39,948		607
HP		104,800		1,241
IAC		4,744		285
Ingram Micro, Cl A		52,014		1,580
Intel		111,720		3,849
International Business Machines		41,851		5,760
Intuit		9,064		875
Juniper Networks		126,790		3,499
KLA-Tencor		1,991		138
Lam Research		2,129		169
Leidos Holdings		38,336		2,157
Linear Technology		3,008		128
LinkedIn, Cl A*		12,300		2,768
Marvell Technology Group		135,130		1,192
MasterCard, Cl A		17,904		1,743
Maxim Integrated Products		3,882		148
Microchip Technology		2,846		132
Micron Technology*		64,742		917
Microsoft		456,960		25,352
Mobileye*		21,400		905
Motorola Solutions		2,185		150
NCR*		32,446		794


Description	Shares		Value (000)
NetApp		3,794	$	101
NetSuite*		21,400		1,811
Nuance Communications*		24,207		481
NVIDIA		13,317		439
NXP Semiconductors*		19,400		1,634
ON Semiconductor*		12,909		126
Oracle		137,371		5,018
Palo Alto Networks*		8,200		1,444
Pandora Media*		6,790		91
Paychex		4,167		220
PayPal Holdings*		98,197		3,555
Qorvo*		1,800		92
QUALCOMM		20,294		1,014
Rackspace Hosting*		20,820		527
Red Hat*		23,930		1,982
salesforce.com*		51,130		4,009
SanDisk*		2,578		196
Seagate Technology		3,969		145
ServiceNow*		28,500		2,467
Skyworks Solutions		11,057		850
Symantec		8,737		183
TE Connectivity		5,215		337
Tencent Holdings ADR		107,200		2,103
Teradata*		5,802		153
Teradyne		43,619		902
Texas Instruments		81,048		4,442
Total System Services		16,624		828
Vantiv, Cl A*		9,785		464
VeriSign*		1,257		110
Visa, Cl A		162,528		12,604
Western Digital		4,319		259
Western Union		33,179		594
Workday, Cl A*		12,300		980
Xerox		131,974		1,403
Xilinx		4,823		227
Yahoo!*		11,745		391
Yelp, Cl A*		14,546		419
Zynga, Cl A*		216,779		581

				237,362

Materials — 2.9%
Air Products & Chemicals		2,568		334
Airgas		916		127
Alcoa		18,065		178
Ashland		1,343		138
Avery Dennison		1,268		79
Ball		1,852		135

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
Bemis		7,536	$	337
Cabot		33,958		1,388
CF Industries Holdings		3,050		124
Crown Holdings*		35,197		1,784
Dow Chemical		95,465		4,915
Eastman Chemical		1,868		126
Ecolab		3,509		401
EI du Pont de Nemours		43,593		2,903
FMC		1,832		72
Freeport-McMoRan*		14,148		96
Graphic Packaging Holding		28,533		366
Huntsman		19,574		223
International Flavors & Fragrances		1,042		125
International Paper		5,376		203
LyondellBasell Industries, Cl A		59,613		5,180
Martin Marietta Materials		900		123
Monsanto		15,896		1,566
Mosaic		44,651		1,232
Newmont Mining		35,409		637
Nucor		4,455		179
Owens-Illinois*		19,177		334
PPG Industries		53,926		5,329
Praxair		3,914		401
Reliance Steel & Aluminum		11,822		685
Sealed Air		12,364		551
Sherwin-Williams		1,050		273
Steel Dynamics		8,735		156
Vulcan Materials		44,127		4,191
Westlake Chemical		13,405		728
WestRock		3,278		150

				35,769

Telecommunication Services — 1.4%
AT&T		94,954		3,267
CenturyLink		60,620		1,525
Frontier Communications		15,742		74
Level 3 Communications*		4,000		218
Telephone & Data Systems		13,425		348
T-Mobile US*		47,600		1,862
Verizon Communications		204,638		9,458
Vodafone Group PLC		185,738		605

				17,357

Utilities — 1.4%
AES		9,337		89
AGL Resources		1,607		102
Ameren		15,627		676
American Electric Power		36,551		2,130


Description	Shares		Value (000)
CenterPoint Energy		5,847	$	107
CMS Energy		3,764		136
Consolidated Edison		3,811		245
Dominion Resources		7,915		535
DTE Energy		2,408		193
Duke Energy		34,885		2,490
Edison International		4,268		253
Entergy		2,454		168
Eversource Energy		4,349		222
Exelon		12,336		343
FirstEnergy		5,833		185
NextEra Energy		6,254		650
NiSource		4,346		85
NRG Energy		4,564		54
Pepco Holdings		3,435		89
PG&E		17,616		937
Pinnacle West Capital		27,883		1,798
PPL		9,199		314
Public Service Enterprise Group		73,337		2,837
SCANA		10,695		647
Sempra Energy		3,196		300
Southern		12,337		577
TECO Energy		3,211		86
Vectren		2,771		117
WEC Energy Group		4,320		222
Westar Energy, Cl A		11,284		479
Xcel Energy		20,724		744

				17,810

Total Common Stock (Cost $1,131,173) (000)				1,216,619

PREFERRED STOCK — 0.4%
Air BNB, Ser D* (A)		11,406		1,062
Air BNB, Ser E* (A)		6,939		646
Dropbox, Cl A* (A)		29,866		281
Dropbox, Cl C* (A)		1,097		10
Flipkart Online Services* (A)		5,739		816
Uber Technologies* (A)		28,993		1,414

Total Preferred Stock (Cost $3,465) (000)				4,229

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Large Cap Equity Fund


Description	Shares		Value (000)
SHORT-TERM INVESTMENT (B) — 1.7%
State Street Institutional Liquid Reserves Fund, Institutional Class, 0.000%		21,481,836	$	21,482

Total Short-Term Investment (Cost $21,482) (000)				21,482

Total Investments — 100.2% (Cost $1,156,120) (000)			$	1,242,330

Percentages are based on net assets of $1,239,696 (000).

A list of the open futures contracts held by the Fund at December 31, 2015, is as follows:

For the year ended December 31, 2015, the monthly average value of futures contracts held was $8,648 (000).

*	Non-income producing security.

‡	Real Estate Investment Trust

(A)

Security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of December 31, 2015, was $4,229 (000) and represented 0.34% of net assets.

(B)

The rate reported is the 7-day effective yield as of December 31, 2015.

ADR — American Depositary Receipt

Cl — Class

PLC — Public Limited Company

S&P — Standard & Poors

The following is a list of the level of inputs used as of December 31, 2015, in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1		Level 2		Level 3^{^}		Total
Common Stock	$	1,216,619	$	—	$	—	$	1,216,619
Preferred Stock		—		—		4,229		4,229
Short-Term Investment		21,482		—		—		21,482

Total Investments in Securities	$	1,238,101	$	—	$	4,229	$	1,242,330


Other Financial Instruments	Level 1		Level 2		Level 3		Total
Futures Contracts**
Unrealized Appreciation	$	38	$	—	$	—	$	38

Total Other Financial Instruments	$	38	$	—	$	—	$	38

**	Futures contracts are valued at the unrealized appreciation on the instrument.

A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments at the beginning and/or end of the year in relation to net assets. Management has concluded that Level 3 investments are not material in relation to net assets.

For the year ended December 31, 2015, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
COMMON STOCK — 95.7%
Consumer Discretionary — 15.8%
1-800-Flowers.com, Cl A*		170,374	$	1,240
2U*		2,200		62
A H Belo, Cl A		51,686		258
Abercrombie & Fitch, Cl A		40,346		1,089
AMC Entertainment Holdings, Cl A		1,700		41
AMC Networks, Cl A*		20,900		1,561
American Axle & Manufacturing Holdings*		6,630		126
American Eagle Outfitters		107,700		1,669
American Public Education*		1,300		24
America’s Car-Mart*		600		16
Apollo Education Group, Cl A*		7,900		61
Arctic Cat		900		15
Asbury Automotive Group*		2,389		161
Ascena Retail Group*		14,859		146
Ascent Capital Group, Cl A*		1,108		19
Barnes & Noble		4,697		41
Barnes & Noble Education*		2,526		25
Bassett Furniture Industries		800		20
Beazer Homes USA*		167,157		1,920
bebe stores		3,200		2
Belmond, Cl A*		8,510		81
Big 5 Sporting Goods		1,400		14
Big Lots		63,425		2,445
Biglari Holdings*		134		44
BJ’s Restaurants*		1,961		85
Black Diamond*		1,800		8


Description	Shares		Value (000)
Bloomin’ Brands		11,113	$	188
Blue Nile*		886		33
Bob Evans Farms		1,931		75
Bojangles’*		600		10
Boot Barn Holdings*		1,000		12
Boyd Gaming*		61,906		1,230
Bravo Brio Restaurant Group*		77,988		702
Bridgepoint Education*		1,200		9
Bright Horizons Family Solutions*		3,200		214
Buckle		26,250		808
Buffalo Wild Wings*		1,627		260
Build-A-Bear Workshop, Cl A*		1,000		12
Burlington Stores*		17,839		765
Caesars Acquisition, Cl A*		3,900		27
Caesars Entertainment*		4,400		35
CalAtlantic Group		6,855		260
Caleres		3,796		102
Callaway Golf		7,198		68
Capella Education		1,100		51
Career Education*		5,800		21
Carmike Cinemas*		79,152		1,815
Carriage Services, Cl A		1,300		31
Carrols Restaurant Group*		2,900		34
Carter’s		20,900		1,860
Cato, Cl A		2,300		85
Cavco Industries*		800		67
Central European Media Enterprises, Cl A*		4,900		13
Century Communities*		1,100		19
Cheesecake Factory		4,263		197
Chegg*		6,873		46
Cherokee*		600		10
Chico’s FAS		180,851		1,930
Children’s Place		1,800		99
Christopher & Banks*		2,800		5
Churchill Downs		1,207		171
Chuy’s Holdings*		109,943		3,445
Citi Trends		1,300		28
ClubCorp Holdings		71,106		1,299
Collectors Universe		400		6
Columbia Sportswear		2,600		127
Conn’s*		2,160		51
Container Store Group*		1,500		12
Cooper Tire & Rubber		4,974		188
Cooper-Standard Holding*		1,200		93
Core-Mark Holding		9,256		759
Cracker Barrel Old Country Store		1,717		218

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Crocs*		6,890	$	71
Crown Media Holdings, Cl A*		2,800		16
CSS Industries		800		23
Culp		1,000		25
Cumulus Media, Cl A*		12,400		4
Daily Journal*		50		10
Dana Holding		13,372		185
Dave & Buster’s Entertainment*		30,695		1,281
Deckers Outdoor*		2,900		137
Del Frisco’s Restaurant Group*		163,475		2,618
Denny’s*		7,684		76
Destination XL Group*		2,800		15
DeVry Education Group		101,113		2,559
Diamond Resorts International*		3,734		95
DineEquity		1,500		127
Dixie Group*		197,266		1,032
Dorman Products*		2,334		111
DreamWorks Animation SKG, Cl A*		6,800		175
Drew Industries		2,082		127
DSW, Cl A		32,577		777
El Pollo Loco Holdings*		1,200		15
Eldorado Resorts*		1,900		21
Empire Resorts*		180		3
Entercom Communications, Cl A*		2,100		24
Entravision Communications, Cl A		5,300		41
Eros International, Cl A*		2,300		21
Escalade		800		11
Ethan Allen Interiors		2,081		58
Etsy*		1,400		12
EVINE Live*		3,600		6
EW Scripps, Cl A		5,226		99
Expedia		16,100		2,001
Express*		7,345		127
Federal-Mogul Holdings*		2,600		18
Fenix Parts*		1,400		10
Fiesta Restaurant Group*		64,619		2,171
Finish Line, Cl A		92,990		1,681
Five Below*		4,763		153
Flexsteel Industries		400		18
Fogo De Chao*		700		11
Foot Locker		44,000		2,864
Fox Factory Holding*		1,500		25
Francesca’s Holdings*		3,300		57
Fred’s, Cl A		75,893		1,242
FTD*		1,500		39
Genesco*		2,089		119
Gentherm*		3,104		147


Description	Shares		Value (000)
G-III Apparel Group*		38,273	$	1,694
Global Eagle Entertainment*		4,300		42
GNC Holdings, Cl A		60,840		1,887
Grand Canyon Education*		4,244		170
Gray Television*		5,800		95
Green Brick Partners*		1,400		10
Group 1 Automotive		1,999		151
Guess?		5,396		102
Habit Restaurants, Cl A*		22,758		525
Harman International Industries		26,003		2,449
Harte-Hanks		4,173		14
Haverty Furniture		1,600		34
Helen of Troy*		15,871		1,496
Hemisphere Media Group, Cl A*		700		10
Hibbett Sports*		2,300		70
Hooker Furniture		800		20
Horizon Global*		1,439		15
Houghton Mifflin Harcourt*		11,879		259
Hovnanian Enterprises, Cl A*		9,898		18
HSN		2,848		144
Iconix Brand Group*		3,823		26
IMAX*		28,655		1,018
Installed Building Products*		1,800		45
International Speedway, Cl A		2,500		84
Interval Leisure Group		3,200		50
Intrawest Resorts Holdings*		1,100		9
iRobot*		2,650		94
Isle of Capri Casinos*		1,800		25
J Alexander’s Holdings*		1,174		13
Jack in the Box		3,313		254
JAKKS Pacific*		1,500		12
Jamba*		1,200		16
Jarden*		35,340		2,018
John Wiley & Sons, Cl A		18,089		815
Johnson Outdoors, Cl A		400		9
Journal Media Group		2,307		28
K12*		2,700		24
KB Home		6,854		85
Kirkland’s		105,603		1,531
Kona Grill*		800		13
Krispy Kreme Doughnuts*		128,857		1,941
La Quinta Holdings*		8,200		112
Lands’ End*		1,400		33
La-Z-Boy, Cl Z		4,597		112
LGI Homes*		1,200		29
Libbey		2,010		43
Liberty Tax		400		10

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Liberty TripAdvisor Holdings, Cl A*		6,500	$	197
LifeLock*		8,395		120
Lifetime Brands		900		12
Lindblad Expeditions Holdings*		129,791		1,442
Lithia Motors, Cl A		2,035		217
Loral Space & Communications*		1,200		49
Lumber Liquidators Holdings*		2,149		37
M/I Homes*		25,488		559
Malibu Boats, Cl A*		112,749		1,845
Marcus		1,500		28
Marine Products		600		4
MarineMax*		103,753		1,911
Marriott Vacations Worldwide		2,289		130
Mattress Firm Holding*		1,700		76
MCBC Holdings*		39,412		539
MDC Holdings		3,487		89
MDC Partners, Cl A		3,855		84
Media General*		8,389		135
Men’s Wearhouse		102,272		1,501
Meredith		39,427		1,704
Meritage Homes*		3,487		119
Metaldyne Performance Group		44,700		820
Modine Manufacturing*		172,371		1,560
Mohawk Industries*		5,600		1,061
Monarch Casino & Resort*		700		16
Monro Muffler Brake		17,753		1,176
Morgans Hotel Group*		2,400		8
Motorcar Parts of America*		32,525		1,100
Movado Group		1,351		35
NACCO Industries, Cl A		400		17
National CineMedia		73,729		1,158
Nautilus*		2,500		42
New Home*		700		9
New Media Investment Group		4,104		80
New York Times, Cl A		12,389		166
Newell Rubbermaid		29,500		1,300
Nexstar Broadcasting Group, Cl A		2,695		158
Noodles, Cl A*		800		8
Norwegian Cruise Line Holdings*		17,200		1,008
Nutrisystem		2,300		50
Ollie’s Bargain Outlet Holdings*		1,100		19
Outerwall		1,626		59
Overstock.com*		1,000		12
Oxford Industries		27,712		1,768
Panera Bread, Cl A*		3,000		584
Papa John’s International		2,600		145
Papa Murphy’s Holdings*		900		10


Description	Shares		Value (000)
Party City Holdco*		2,300	$	30
Penn National Gaming*		60,739		973
Pep Boys-Manny Moe & Jack*		4,888		90
Performance Sports Group*		4,100		39
Perry Ellis International*		1,000		18
PetMed Express		1,500		26
Pier 1 Imports		279,621		1,423
Pinnacle Entertainment*		5,216		162
Planet Fitness, Cl A*		1,500		23
Pool		3,730		301
Popeyes Louisiana Kitchen*		31,197		1,825
Potbelly*		2,100		25
Reading International, Cl A*		26,895		353
Red Robin Gourmet Burgers*		1,200		74
Regis*		3,700		52
Rent-A-Center, Cl A		4,600		69
Rentrak*		1,200		57
Restoration Hardware Holdings*		2,910		231
Ruby Tuesday*		5,200		29
Ruth’s Hospitality Group		2,800		45
Saga Communications, Cl A		300		12
Scholastic		2,400		93
Scientific Games, Cl A*		3,958		36
SeaWorld Entertainment		149,170		2,936
Select Comfort*		4,387		94
Sequential Brands Group*		2,272		18
SFX Entertainment*		3,200		1
Shake Shack, Cl A*		400		16
Shoe Carnival		1,165		27
Shutterfly*		3,221		144
Sinclair Broadcast Group, Cl A		5,809		189
Sizmek*		1,700		6
Skullcandy*		1,600		8
Smith & Wesson Holding*		4,445		98
Sonic		4,700		152
Sonic Automotive, Cl A		2,931		67
Sotheby’s		5,397		139
Speedway Motorsports		900		19
Sportsman’s Warehouse Holdings*		97,130		1,253
Stage Stores		2,581		24
Standard Motor Products		1,614		61
Stein Mart		198,731		1,337
Steven Madden*		54,165		1,637
Stoneridge*		2,400		36
Strattec Security		272		15
Strayer Education*		908		55
Sturm Ruger		1,689		101

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Superior Industries International		1,831	$	34
Superior Uniform Group		700		12
Systemax*		1,100		9
Taylor Morrison Home, Cl A*		2,900		46
Tempur Sealy International*		22,500		1,584
Tenneco*		16,688		766
Texas Roadhouse, Cl A		6,260		224
Tile Shop Holdings*		82,900		1,360
Tilly’s, Cl A*		900		6
Time		9,485		149
Toll Brothers*		30,800		1,026
Tower International		1,954		56
Townsquare Media, Cl A*		900		11
Tractor Supply		21,100		1,804
TRI Pointe Group*		14,043		178
Tribune Publishing		1,900		18
Tuesday Morning*		3,400		22
Tumi Holdings*		4,800		80
UCP, Cl A*		54,349		391
Ulta Salon Cosmetics & Fragrance*		15,740		2,913
Under Armour, Cl A*		18,883		1,522
Unifi*		1,198		34
Unique Fabricating		43,211		533
Universal Electronics*		1,300		67
Universal Technical Institute		1,600		7
Vail Resorts		11,454		1,466
Vera Bradley*		1,900		30
Vince Holding*		800		4
Visteon*		20,790		2,379
Vitamin Shoppe*		2,605		85
VOXX International, Cl A*		1,400		7
Wayfair, Cl A*		1,800		86
WCI Communities*		1,400		31
Weight Watchers International*		2,400		55
Wendy’s		78,075		841
West Marine*		1,300		11
Weyco Group		500		13
William Lyon Homes, Cl A*		1,800		30
Wingstop*		700		16
Winmark		200		19
Winnebago Industries		2,100		42
Wolverine World Wide		9,007		151
World Wrestling Entertainment, Cl A		58,914		1,051
ZAGG*		2,100		23
Zoe’s Kitchen*		1,600		45
Zumiez*		1,670		25

				123,623


Description	Shares		Value (000)
Consumer Staples — 1.9%
Alico		200	$	8
Amplify Snack Brands*		1,600		18
Andersons		68,898		2,180
B&G Foods		22,347		783
Blue Buffalo Pet Products*		15,100		283
Boston Beer, Cl A*		779		157
Boulder Brands*		5,100		56
Calavo Growers		1,300		64
Cal-Maine Foods		2,800		130
Casey’s General Stores		3,356		405
Castle Brands*		7,400		9
Central Garden & Pet, Cl A*		3,800		52
Chefs’ Warehouse*		53,247		889
Coca-Cola Bottling Consolidated		400		73
Craft Brew Alliance*		900		8
Darling Ingredients*		14,897		157
Dean Foods		8,255		142
Diamond Foods*		2,400		93
Elizabeth Arden*		2,225		22
Fairway Group Holdings, Cl A*		1,700		1
Farmer Brothers*		500		16
Flowers Foods		28,600		615
Fresh Del Monte Produce		3,000		117
Fresh Market*		3,800		89
Freshpet*		1,800		15
Herbalife*		16,500		886
HRG Group*		6,621		90
Ingles Markets, Cl A		1,100		48
Inter Parfums		1,287		31
Inventure Foods*		132,598		941
J&J Snack Foods		1,280		149
John B Sanfilippo & Son		700		38
Lancaster Colony		1,641		189
Landec*		2,200		26
Lifeway Foods*		300		3
Limoneira		900		13
Medifast		1,000		30
MGP Ingredients		1,000		26
National Beverage*		1,000		45
Natural Grocers by Vitamin Cottage*		700		14
Natural Health Trends		600		20
Nature’s Sunshine Products		800		8
Nu Skin Enterprises, Cl A		14,283		541
Nutraceutical International*		600		15
Oil-Dri Corp of America		300		11
Omega Protein*		1,700		38

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Orchids Paper Products		700	$	22
Performance Food Group*		1,400		32
Post Holdings*		27,378		1,688
PriceSmart		1,652		137
Revlon, Cl A*		900		25
Sanderson Farms		2,026		157
Seaboard*		22		64
Seneca Foods, Cl A*		700		20
Smart & Final Stores*		2,000		36
Snyder’s-Lance		4,176		143
SpartanNash		3,341		72
SUPERVALU*		22,825		155
Synutra International*		1,100		5
Tootsie Roll Industries		1,542		49
TreeHouse Foods*		3,713		291
United Natural Foods*		4,329		170
Universal		1,961		110
USANA Health Sciences*		500		64
Vector Group		7,446		176
Village Super Market, Cl A		500		13
WD-40		1,287		126
Weis Markets		897		40
WhiteWave Foods, Cl A*		32,240		1,254

				14,393

Energy — 2.2%
Abraxas Petroleum*		7,700		8
Adams Resources & Energy		200		8
Alon USA Energy		2,800		42
Approach Resources*		3,300		6
Archrock		6,052		46
Ardmore Shipping		104,296		1,327
Atwood Oceanics		5,400		55
Basic Energy Services*		2,700		7
Bill Barrett*		3,571		14
Bonanza Creek Energy*		4,175		22
Bristow Group		3,187		83
C&J Energy Services*		4,600		22
Callon Petroleum*		5,400		45
Capital Product Partners (C)		114,400		631
CARBO Ceramics		73,691		1,267
Carrizo Oil & Gas*		23,245		688
Clayton Williams Energy*		500		15
Clean Energy Fuels*		5,852		21
Cloud Peak Energy*		5,201		11
Contango Oil & Gas*		1,241		8
Delek US Holdings		5,200		128


Description	Shares		Value (000)
DHT Holdings		8,500	$	69
Dorian LPG*		1,800		21
Eclipse Resources*		5,400		10
Energy Fuels*		3,000		9
Energy XXI		7,788		8
Era Group*		1,600		18
Evolution Petroleum		1,500		7
EXCO Resources*		12,700		16
Exterran*		3,026		49
Fairmount Santrol Holdings*		4,699		11
Forum Energy Technologies*		5,300		66
Frontline		20,700		62
GasLog		3,327		28
Gastar Exploration*		6,000		8
Gener8 Maritime*		1,700		16
Geospace Technologies*		1,114		16
Green Plains		82,317		1,886
Gulfmark Offshore, Cl A		2,155		10
Halcon Resources*		6,260		8
Hallador Energy		800		4
Helix Energy Solutions Group*		9,771		51
Hornbeck Offshore Services*		2,900		29
Independence Contract Drilling*		600		3
ION Geophysical*		10,870		5
Isramco*		39		3
Jones Energy, Cl A*		2,600		10
Key Energy Services*		11,450		6
Matador Resources*		6,600		130
Matrix Service*		2,100		43
McDermott International*		20,984		70
Natural Gas Services Group*		1,000		22
Navios Maritime Acquisition		6,900		21
Newfield Exploration*		23,900		778
Newpark Resources*		6,698		35
Nordic American Offshore		1,500		8
Nordic American Tankers		7,800		121
North Atlantic Drilling*		480		1
Northern Oil and Gas*		5,000		19
Oasis Petroleum*		12,600		93
Oceaneering International		22,547		846
Oil States International*		4,700		128
Pacific Ethanol*		2,000		10
Panhandle Oil and Gas, Cl A		1,200		19
Par Pacific Holdings*		1,500		35
Parker Drilling*		9,402		17
Parsley Energy, Cl A*		8,288		153
Patterson-UTI Energy		185,385		2,797

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
PDC Energy*		3,425	$	183
Peabody Energy		1,360		10
Penn Virginia*		5,614		2
PHI*		1,000		16
Pioneer Energy Services*		5,274		11
Renewable Energy Group*		3,700		34
REX American Resources*		500		27
Rex Energy*		4,129		4
RigNet*		900		19
Ring Energy*		76,666		540
RSP Permian*		5,300		129
Sanchez Energy*		4,096		18
SandRidge Energy*		31,200		6
Scorpio Tankers		16,075		129
SEACOR Holdings*		1,600		84
SemGroup, Cl A		3,923		113
Seventy Seven Energy*		4,000		4
Ship Finance International		5,200		86
Solazyme*		6,500		16
Stone Energy*		4,344		19
Superior Energy Services		71,869		968
Synergy Resources*		8,700		74
Teekay Tankers, Cl A		8,200		56
Tesco		2,900		21
TETRA Technologies*		6,131		46
Tidewater		4,200		29
TransAtlantic Petroleum*		2,200		3
Triangle Petroleum*		3,200		2
Ultra Petroleum*		12,800		32
Unit*		4,500		55
Uranium Energy*		9,200		10
US Silica Holdings		94,621		1,773
W&T Offshore		2,600		6
Western Refining		6,097		217
Westmoreland Coal*		1,324		8

				16,979

Financials — 20.9%
1st Source		1,320		41
Acadia Realty Trust‡		6,000		199
Access National		700		14
Agree Realty‡		1,400		48
Alexander & Baldwin		4,353		154
Alexander’s‡		175		67
Altisource Asset Management*		65		1
Altisource Portfolio Solutions*		1,064		30
Altisource Residential‡		5,100		63


Description	Shares		Value (000)
Ambac Financial Group*		3,600	$	51
American Assets Trust‡		3,238		124
American Capital Mortgage Investment‡		4,700		66
American Equity Investment Life Holding		57,283		1,377
American Financial Group		35,535		2,561
American National Bankshares		800		20
American Residential Properties‡		2,900		55
Ameris Bancorp		2,800		95
AMERISAFE		1,666		85
Ames National		700		17
Anchor BanCorp Wisconsin*		700		30
Anworth Mortgage Asset‡		8,498		37
Apollo Commercial Real Estate Finance‡		5,136		88
Apollo Residential Mortgage‡		2,500		30
Ares Commercial Real Estate‡		2,400		27
Argo Group International Holdings		2,499		150
Arlington Asset Investment, Cl A		1,700		22
Armada Hoffler Properties‡		2,000		21
ARMOUR Residential‡		3,612		79
Arrow Financial		928		25
Ashford*		44		2
Ashford Hospitality Prime‡		2,061		30
Ashford Hospitality Trust‡		6,533		41
Associated Capital Group*		500		15
Assurant		34,320		2,764
Astoria Financial		8,067		128
Atlas Financial Holdings*		900		18
AV Homes*		900		12
Baldwin & Lyons, Cl B		700		17
Banc of California		2,900		42
BancFirst		600		35
Banco Latinoamericano de Comercio Exterior, Cl E		2,800		73
Bancorp*		69,321		442
BancorpSouth		8,644		207
Bank Mutual		3,900		30
Bank of Hawaii		46,020		2,895
Bank of Marin Bancorp		500		27
Bank of the Ozarks		32,365		1,601
BankFinancial		1,600		20
Banner		1,816		83
Bar Harbor Bankshares		400		14
BBCN Bancorp		6,936		119
BBX Capital, Cl A*	��	519		8
Bear State Financial*		1,400		15

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Beneficial Bancorp*		7,539	$	100
Berkshire Hills Bancorp		34,345		1,000
BGC Partners, Cl A		16,053		157
Blue Hills Bancorp		2,400		37
Bluerock Residential Growth, Cl A‡		1,300		15
BNC Bancorp		52,056		1,321
BofI Holding*		5,200		109
Boston Private Financial Holdings		6,974		79
Bridge Bancorp		58,497		1,780
Brookline Bancorp		5,800		67
Bryn Mawr Bank		1,600		46
BSB Bancorp*		800		19
C1 Financial*		700		17
Calamos Asset Management, Cl A		1,300		13
Camden National		700		31
Campus Crest Communities‡		101,251		689
Capital Bank Financial, Cl A		1,834		59
Capital City Bank Group		800		12
Capitol Federal Financial		12,685		159
Capstead Mortgage‡		8,500		74
Cardinal Financial		22,353		509
CareTrust‡		3,737		41
Cascade Bancorp*		90,926		552
Cash America International		2,300		69
CatchMark Timber Trust, Cl A‡		3,700		42
Cathay General Bancorp		7,111		223
Cedar Realty Trust‡		7,025		50
CenterState Banks		3,700		58
Central Pacific Financial		1,900		42
Century Bancorp, Cl A		300		13
Charter Financial		1,159		15
Chatham Lodging Trust‡		3,400		70
Chemical Financial		50,265		1,723
Chesapeake Lodging Trust‡		5,179		130
Citizens, Cl A*		3,800		28
Citizens & Northern		900		19
City Holding		1,237		56
Clifton Bancorp		2,189		31
CNB Financial		1,200		22
CNO Financial Group		17,026		325
CoBiz Financial		198,519		2,664
Cohen & Steers		44,244		1,349
Colony Capital, Cl A‡		9,700		189
Columbia Banking System		64,071		2,083
Commerce Bancshares		59,430		2,528
Community Bank System		3,554		142
Community Trust Bancorp		1,488		52


Description	Shares		Value (000)
CommunityOne Bancorp*		900	$	12
ConnectOne Bancorp		2,460		46
Consolidated-Tomoka Land		4,826		253
CorEnergy Infrastructure Trust‡		1,140		17
CoreSite Realty‡		2,100		119
Corporate Office Properties Trust‡		99,843		2,180
Cousins Properties‡		18,778		177
Cowen Group, Cl A*		9,004		34
Crawford, Cl B		2,200		12
CU Bancorp*		1,400		36
CubeSmart‡		14,426		442
Customers Bancorp*		69,624		1,895
CVB Financial		9,518		161
CyrusOne‡		5,708		214
CYS Investments‡		13,404		96
DCT Industrial Trust‡		7,895		295
Diamond Hill Investment Group		300		57
DiamondRock Hospitality‡		17,954		173
Dime Community Bancshares		2,543		44
Donegal Group, Cl A		700		10
DuPont Fabros Technology‡		5,530		176
Dynex Capital‡		4,600		29
ETRADE Financial		46,300		1,372
Eagle Bancorp*		51,154		2,582
Easterly Government Properties‡		1,200		21
EastGroup Properties‡		2,893		161
Education Realty Trust‡		4,885		185
eHealth*		1,500		15
EMC Insurance Group		450		11
Employers Holdings		2,700		74
Encore Capital Group*		2,300		67
Enova International*		1,972		13
Enstar Group*		800		120
Enterprise Bancorp		600		14
Enterprise Financial Services		1,800		51
EPR Properties‡		5,082		297
Equity One‡		6,400		174
Essent Group*		107,307		2,350
EverBank Financial		8,441		135
Evercore Partners, Cl A		24,573		1,329
EZCORP, Cl A*		3,900		19
Farmers Capital Bank*		500		14
FBL Financial Group, Cl A		800		51
FCB Financial Holdings, Cl A*		2,500		89
Federal Agricultural Mortgage, Cl C		900		28
Federated National Holding		1,300		38
FelCor Lodging Trust‡		12,572		92

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Fidelity & Guaranty Life		42,424	$	1,076
Fidelity Southern		1,312		29
Fifth Street Asset Management, Cl A		300		1
Financial Engines		4,535		153
Financial Institutions		1,200		34
First American Financial		9,326		335
First Bancorp		2,300		44
First BanCorp*		8,600		28
First Busey		1,869		39
First Business Financial Services		600		15
First Cash Financial Services*		2,517		94
First Citizens BancShares, Cl A		644		166
First Commonwealth Financial		7,938		72
First Community Bancshares		1,300		24
First Connecticut Bancorp		55,971		974
First Defiance Financial		700		26
First Financial		900		31
First Financial Bancorp		97,407		1,760
First Financial Bankshares		5,542		167
First Foundation*		13,486		318
First Industrial Realty Trust‡		9,577		212
First Interstate BancSystem, Cl A		1,800		52
First Merchants		7,074		180
First Midwest Bancorp		72,103		1,329
First NBC Bank Holding*		1,200		45
First of Long Island		1,046		31
First Potomac Realty Trust‡		5,418		62
FirstMerit		14,370		268
Flagstar Bancorp*		1,600		37
Flushing Financial		2,486		54
FNB		236,195		3,152
FNFV Group*		6,800		76
Forestar Group*		2,722		30
Fox Chase Bancorp		800		16
Franklin Financial Network*		47,212		1,482
Franklin Street Properties‡		7,951		82
FRP Holdings*		500		17
Fulton Financial		15,300		199
GAIN Capital Holdings		2,900		24
GAMCO Investors, Cl A		500		16
GEO Group‡		6,452		187
German American Bancorp		1,000		33
Getty Realty‡		2,006		34
Glacier Bancorp		6,749		179
Gladstone Commercial‡		1,500		22
Global Indemnity, Cl A*		700		20


Description	Shares		Value (000)
Government Properties Income Trust‡		6,200	$	98
Gramercy Property Trust‡		37,509		290
Great Ajax‡		500		6
Great Southern Bancorp		1,000		45
Great Western Bancorp		38,314		1,112
Green Bancorp*		1,000		10
Green Dot, Cl A*		4,100		67
Greenhill		53,327		1,525
Greenlight Capital, Cl A*		2,651		50
Guaranty Bancorp		1,100		18
Hallmark Financial Services*		1,100		13
Hampton Roads Bankshares*		2,000		4
Hancock Holding		73,025		1,838
Hanmi Financial		2,883		68
Hannon Armstrong Sustainable Infrastructure Capital‡		97,054		1,836
Hatteras Financial‡		8,500		112
HCI Group		700		24
Healthcare Realty Trust‡		8,947		253
Heartland Financial USA		1,600		50
Heritage Commerce		2,300		28
Heritage Financial		130,334		2,455
Heritage Insurance Holdings		2,200		48
Heritage Oaks Bancorp		1,900		15
Hersha Hospitality Trust, Cl A‡		4,300		94
HFF, Cl A		3,321		103
Highwoods Properties‡		8,164		356
Hilltop Holdings*		6,899		133
Hingham Institution for Savings		100		12
Home BancShares		5,163		209
HomeStreet*		1,800		39
HomeTrust Bancshares*		1,800		36
Horace Mann Educators		88,370		2,932
Horizon Bancorp		1,100		31
Houlihan Lokey, Cl A		1,300		34
Hudson Pacific Properties‡		6,674		188
IBERIABANK		37,252		2,051
Impac Mortgage Holdings*		800		14
Independence Holding		500		7
Independence Realty Trust‡		2,275		17
Independent Bank		69,565		3,178
Independent Bank Group		700		22
Infinity Property & Casualty		4,256		350
InfraREIT‡		1,700		31
Inland Real Estate‡		8,017		85
International Bancshares		4,881		125

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
International. FCStone*		1,400	$	47
Invesco Mortgage Capital‡		10,752		133
Investment Technology Group		2,800		48
Investors Bancorp		30,153		375
Investors Real Estate Trust‡		10,306		72
iStar‡ *		115,886		1,359
James River Group Holdings		800		27
Janus Capital Group		12,787		180
JG Wentworth, Cl A*		800		1
KCG Holdings, Cl A*		2,824		35
Kearny Financial		7,832		99
Kemper		3,913		146
Kennedy-Wilson Holdings		8,020		193
Kite Realty Group Trust‡		7,218		187
Ladder Capital, Cl A‡		3,600		45
Ladenburg Thalmann Financial Services*		8,400		23
Lakeland Bancorp		2,889		34
Lakeland Financial		1,500		70
LaSalle Hotel Properties‡		10,093		254
LegacyTexas Financial Group		4,135		103
LendingTree*		500		45
Lexington Realty Trust‡		17,924		143
Live Oak Bancshares		600		9
LTC Properties‡		3,100		134
Mack-Cali Realty‡		7,764		181
Maiden Holdings		4,534		68
MainSource Financial Group		2,000		46
Marcus & Millichap*		1,200		35
MarketAxess Holdings		9,341		1,042
Marlin Business Services		800		13
MB Financial		6,514		211
MBIA*		11,600		75
Medical Properties Trust‡		20,911		241
Medley Management, Cl A		300		2
Mercantile Bank		1,300		32
Merchants Bancshares		300		9
Meridian Bancorp		4,934		70
Meta Financial Group		600		28
Metro Bancorp		1,100		35
MGIC Investment*		118,475		1,046
MidWestOne Financial Group		500		15
Moelis, Cl A		1,600		47
Monmouth Real Estate Investment, Cl A‡		5,460		57
Monogram Residential Trust‡		15,000		146
Mortgage Investment Trust‡		2,300		30


Description	Shares		Value (000)
National Bank Holdings, Cl A		157,668	$	3,370
National Bankshares		500		18
National Commerce*		600		15
National General Holdings		3,400		74
National Health Investors‡		3,299		201
National Interstate		500		13
National Penn Bancshares		12,179		150
National Storage Affiliates Trust‡		2,200		38
National Western Life Group, Cl A		193		49
Nationstar Mortgage Holdings*		3,600		48
Navigators Group*		987		85
NBT Bancorp		3,922		109
Nelnet, Cl A		1,959		66
New Residential Investment‡		234,171		2,847
New Senior Investment Group‡		7,700		76
New York‡		14,600		168
New York Mortgage Trust‡		9,810		52
NewBridge Bancorp		2,756		34
NewStar Financial*		2,200		20
NexPoint Residential Trust‡		1,300		17
NMI Holdings, Cl A*		4,300		29
Northfield Bancorp		3,900		62
Northwest Bancshares		124,273		1,665
OceanFirst Financial		1,000		20
Ocwen Financial*		9,500		66
OFG Bancorp		3,383		25
Old National Bancorp		170,744		2,315
Old Second Bancorp*		2,700		21
OM Asset Management		1,900		29
On Deck Capital*		1,000		10
One Liberty Properties‡		1,000		21
OneBeacon Insurance Group, Cl A		1,925		24
Oppenheimer Holdings, Cl A		704		12
Opus Bank		23,304		862
Orchid Island Capital, Cl A‡		2,300		23
Oritani Financial		3,559		59
Outfront Media‡		99,992		2,182
Pacific Continental		1,500		22
Pacific Premier Bancorp*		2,000		43
PacWest Bancorp		21,886		943
Park National		1,189		108
Park Sterling		329,454		2,412
Parkway Properties‡		7,641		119
Patriot National*		800		5
Peapack Gladstone Financial		1,200		25
Pebblebrook Hotel Trust‡		6,224		174
Penns Woods Bancorp		352		15

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Pennsylvania‡		6,238	$	136
PennyMac Financial Services, Cl A*		1,100		17
PennyMac Mortgage Investment Trust‡		6,567		100
Peoples Bancorp		1,700		32
Peoples Financial Services		600		23
PHH*		4,417		72
Physicians Realty Trust‡		7,600		128
PICO Holdings*		1,900		20
Pinnacle Financial Partners		3,100		159
Piper Jaffray*		1,300		53
Potlatch‡		57,922		1,752
PRA Group*		4,361		152
Preferred Apartment Communities, Cl A‡		1,500		20
Preferred Bank		1,000		33
Primerica		55,330		2,613
PrivateBancorp		124,589		5,112
Prosperity Bancshares		73,199		3,504
Provident Financial Services		57,913		1,168
PS Business Parks‡		1,685		147
Pzena Investment Management, Cl A		800		7
QCR Holdings		800		19
QTS Realty Trust*		41,300		1,862
Radian Group		17,143		230
RAIT Financial Trust‡		6,800		18
Ramco-Gershenson Properties Trust‡		7,130		118
RCS Capital, Cl A*		3,500		1
RE/MAX Holdings, Cl A		900		34
Redwood Trust‡		7,400		98
Regional Management*		900		14
Renasant		3,622		125
Republic Bancorp, Cl A		700		18
Resource America, Cl A		1,100		7
Resource Capital‡		2,658		34
Retail Opportunity Investments‡		8,900		159
Rexford Industrial Realty‡		4,600		75
RLI		3,696		228
RLJ Lodging Trust‡		11,403		247
RMR Group*		168		2
Rouse Properties‡		3,400		50
Ryman Hospitality Properties‡		3,769		195
S&T Bancorp		3,174		98
Sabra Health Care‡		5,900		119
Safeguard Scientifics*		1,600		23
Safety Insurance Group		1,403		79
Sandy Spring Bancorp		2,070		56


Description	Shares		Value (000)
Saul Centers‡		800	$	41
Sberbank of Russia Via SB Capital* (A)		2,200		33
Select Income‡		5,688		113
Selective Insurance Group		4,948		166
ServisFirst Bancshares		1,900		90
Sierra Bancorp		800		14
Signature Bank*		29,227		4,484
Silver Bay Realty Trust‡		3,000		47
Simmons First National, Cl A		2,654		136
Solar Capital		43,429		714
South State		2,100		151
Southern National Bancorp of Virginia		12,409		162
Southside Bancshares		2,028		49
Southwest Bancorp		91,100		1,592
Sovran Self Storage‡		3,092		332
St. Joe*		4,800		89
STAG Industrial‡		48,662		898
Starwood Waypoint Residential Trust‡		3,396		77
State Auto Financial		1,300		27
State Bank Financial		95,121		2,000
State National		3,100		30
Sterling Bancorp		10,445		169
Stewart Information Services		1,900		71
Stifel Financial*		5,910		250
Stock Yards Bancorp		1,200		45
Stonegate Bank		62,052		2,039
Stonegate Mortgage*		60,929		332
STORE Capital‡		3,200		74
Suffolk Bancorp		1,000		28
Summit Hotel Properties‡		7,700		92
Sun Bancorp*		740		15
Sun Communities‡		4,395		301
Sunstone Hotel Investors‡		18,077		226
SVB Financial Group*		13,300		1,581
Symetra Financial		6,523		207
Synovus Financial		42,455		1,375
Talmer Bancorp, Cl A		143,431		2,598
Tanger Factory Outlet Centers‡		37,035		1,211
Tejon Ranch*		1,000		19
Terreno Realty‡		3,800		86
Territorial Bancorp		684		19
Texas Capital Bancshares*		9,498		469
Third Point Reinsurance*		7,617		102
Tiptree Financial		2,800		17
Tompkins Financial		1,391		78

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Towne Bank		4,060	$	85
TriCo Bancshares		1,800		49
TriState Capital Holdings*		1,600		22
Triumph Bancorp*		1,400		23
TrustCo Bank		8,770		54
Trustmark		5,928		137
UMB Financial		21,896		1,019
UMH Properties‡		1,700		17
Umpqua Holdings		74,676		1,187
Union Bankshares		56,909		1,436
United Bankshares		6,031		223
United Community Banks		4,716		92
United Community Financial		3,800		22
United Development Funding IV‡		2,800		31
United Financial Bancorp		3,951		51
United Fire Group		1,900		73
United Insurance Holdings		1,700		29
Universal Health Realty Income Trust‡		998		50
Universal Insurance Holdings		2,847		66
Univest Corp of Pennsylvania		1,834		38
Urban Edge Properties‡		7,700		181
Urstadt Biddle Properties, Cl A‡		2,571		49
Valley National Bancorp		20,173		199
Virtu Financial, Cl A		1,800		41
Virtus Investment Partners		550		65
Walker & Dunlop*		2,300		66
Walter Investment Management*		2,925		42
Washington‡		6,160		167
Washington Federal		8,494		202
Washington Trust Bancorp		1,185		47
WashingtonFirst Bankshares		22,226		503
Waterstone Financial		2,600		37
Webster Financial		34,195		1,272
WesBanco		29,086		873
West Bancorporation		1,300		26
Westamerica Bancorporation		51,364		2,401
Western Alliance Bancorp*		7,431		266
Western Asset Mortgage Capital‡		3,451		35
Westwood Holdings Group		600		31
Whitestone, Cl B‡		1,900		23
Wilshire Bancorp		6,300		73
Winthrop Realty Trust‡		98,127		1,273
Wintrust Financial		4,110		199
WisdomTree Investments		9,904		155
World Acceptance*		600		22
WSFS Financial		2,700		87
Xenia Hotels & Resorts‡		9,700		149


Description	Shares		Value (000)
Yadkin Financial		2,081	$	52
Zions Bancorporation		18,800		513

				163,532

Health Care — 12.3%
AAC Holdings*		500		10
Abaxis		2,033		113
ABIOMED*		16,603		1,499
Acadia Healthcare*		16,843		1,052
ACADIA Pharmaceuticals*		7,094		253
Accelerate Diagnostics*		1,744		37
Acceleron Pharma*		1,800		88
Accuray*		6,069		41
Aceto		2,600		70
Achillion Pharmaceuticals*		10,400		112
Acorda Therapeutics*		3,904		167
Adamas Pharmaceuticals*		700		20
Addus HomeCare*		500		12
Adeptus Health, Cl A*		13,543		738
Aduro Biotech*		600		17
Advaxis*		2,200		22
Aegerion Pharmaceuticals*		2,198		22
Aerie Pharmaceuticals*		1,700		41
Affimed*		1,000		7
Affymetrix*		6,894		70
Agenus*		6,200		28
Agile Therapeutics*		1,100		11
Aimmune Therapeutics*		1,000		18
Air Methods*		66,808		2,801
Akebia Therapeutics*		2,100		27
Albany Molecular Research*		1,900		38
Alder Biopharmaceuticals*		2,100		69
Alimera Sciences*		2,600		6
Alliance HealthCare Services*		400		4
Almost Family*		700		27
AMAG Pharmaceuticals*		3,000		91
Amedisys*		29,328		1,153
Amicus Therapeutics*		10,300		100
AMN Healthcare Services*		4,300		134
Amphastar Pharmaceuticals*		2,300		33
Amsurg, Cl A*		54,306		4,128
Anacor Pharmaceuticals*		19,115		2,158
Analogic		1,071		88
AngioDynamics*		2,100		25
ANI Pharmaceuticals*		700		32
Anika Therapeutics*		1,200		46
Antares Pharma*		10,100		12

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares			Value (000)
Anthera Pharmaceuticals*		3,900		$	18
Applied Genetic Technologies*		400			8
Aratana Therapeutics*		2,200			12
Ardelyx*		1,600			29
Arena Pharmaceuticals*		19,028			36
ARIAD Pharmaceuticals*		14,700			92
Array BioPharma*		13,000			55
Arrowhead Research*		4,600			28
Assembly Biosciences*		1,000			8
Atara Biotherapeutics*		1,500			40
athenahealth*		3,300			530
AtriCure*		47,665			1,070
Atrion		128			49
aTyr Pharma*		700	��		7
Avalanche Biotechnologies*		1,400			13
Axovant Sciences*		1,400			25
Bellicum Pharmaceuticals*		600			12
BioCryst Pharmaceuticals*		6,637			68
BioDelivery Sciences International*		3,600			17
BioScrip*		5,800			10
BioSpecifics Technologies*		500			21
BioTelemetry*		2,100			25
BioTime*		4,400			18
Blueprint Medicines*		700			18
Calithera Biosciences*		500			4
Cambrex*		16,456			775
Cantel Medical		20,478			1,273
Capital Senior Living*		2,345			49
Cara Therapeutics*		1,500			25
Carbylan Therapeutics*		1,300			5
Cardiovascular Systems*		56,736			858
Castlight Health, Cl B*		3,000			13
Catalent*		7,300			183
Catalyst Pharmaceuticals*		5,300			13
Celldex Therapeutics*		8,604			135
Cellular Biomedicine Group*		700			15
Cempra*		2,500			78
Cepheid*		6,251			228
Cerus*		7,400			47
Charles River Laboratories International*		9,363			753
Chemed		10,153			1,521
ChemoCentryx*		2,400			19
Chiasma*		800			16
Chimerix*		4,000			36
Cidara Therapeutics*		600			10
Civitas Solutions*		1,000			29


Description	Shares		Value (000)
Clovis Oncology*		2,437	$	85
Coherus Biosciences*		18,782		431
Collegium Pharmaceutical*		700		19
Computer Programs & Systems		882		44
Concert Pharmaceuticals*		1,100		21
ConforMIS*		1,000		17
CONMED		2,466		109
Connecture*		700		3
Corcept Therapeutics*		4,500		22
Corindus Vascular Robotics*		2,500		8
Corium International*		900		7
CorMedix*		3,300		7
CorVel*		600		26
Cross Country Healthcare*		115,752		1,897
CryoLife		2,400		26
CTI BioPharma*		12,600		15
Curis*		7,900		23
Cutera*		1,000		13
Cynosure, Cl A*		30,703		1,372
Cytokinetics*		3,000		31
CytRx*		4,200		11
Depomed*		5,300		96
Dermira*		1,500		52
DexCom*		28,135		2,304
Dicerna Pharmaceuticals*		1,400		17
Diplomat Pharmacy*		3,000		103
Durect*		7,900		17
Dyax*		12,613		475
Dynavax Technologies*		3,340		81
Eagle Pharmaceuticals*		13,160		1,167
Emergent BioSolutions*		2,679		107
Enanta Pharmaceuticals*		1,400		46
EndoChoice Holdings*		900		8
Endocyte*		2,600		10
Endologix*		5,339		53
Ensign Group		4,686		106
Entellus Medical*		500		8
Epizyme*		2,100		34
Esperion Therapeutics*		31,735		706
Evolent Health, Cl A*		1,500		18
Exact Sciences*		7,880		73
Exactech*		800		15
ExamWorks Group*		3,600		96
Exelixis*		19,775		112
Fibrocell Science*		2,400		11
FibroGen*		4,100		125
Five Prime Therapeutics*		2,000		83

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Five Star Quality Care*		3,300	$	10
Flex Pharma*		400		5
Flexion Therapeutics*		1,200		23
Fluidigm*		2,298		25
Foamix Pharmaceuticals*		1,600		13
Foundation Medicine*		1,102		23
Galena Biopharma*		12,000		18
Genesis Healthcare, Cl A*		2,200		8
GenMark Diagnostics*		3,000		23
Genocea Biosciences*		1,600		8
Genomic Health*		1,300		46
Geron*		12,900		62
Glaukos*		700		17
Global Blood Therapeutics*		600		19
Globus Medical, Cl A*		6,196		172
Greatbatch*		14,582		766
Haemonetics*		4,553		147
Halozyme Therapeutics*		9,579		166
Halyard Health*		4,200		140
Hanger*		2,815		46
Harvard Bioscience*		3,200		11
HealthEquity*		3,300		83
HealthSouth		78,076		2,718
HealthStream*		2,100		46
Healthways*		2,600		33
HeartWare International*		1,570		79
Heron Therapeutics*		2,500		67
Heska*		500		19
HMS Holdings*		8,042		99
Hologic*		44,300		1,714
ICU Medical*		11,500		1,297
Idera Pharmaceuticals*		7,300		23
IDEXX Laboratories*		36,820		2,685
Ignyta*		2,100		28
Immune Design*		1,000		20
ImmunoGen*		7,845		106
Immunomedics*		7,100		22
Impax Laboratories*		6,378		273
Imprivata*		600		7
INC Research Holdings, Cl A*		1,200		58
Infinity Pharmaceuticals*		4,000		31
Inogen*		21,690		870
Inovio Pharmaceuticals*		6,600		44
Insmed*		5,524		100
Insulet*		4,913		186
Insys Therapeutics*		1,884		54
Integra LifeSciences Holdings*		2,443		166


Description	Shares		Value (000)
Intercept Pharmaceuticals*		4,527	$	676
Intersect ENT*		1,600		36
Intra-Cellular Therapies, Cl A*		11,900		640
Invacare		3,004		52
Invitae*		500		4
InVivo Therapeutics Holdings*		1,900		14
Invuity*		600		5
iRadimed*		25,030		702
Ironwood Pharmaceuticals, Cl A*		11,348		132
K2M Group Holdings*		41,800		825
Karyopharm Therapeutics*		1,700		23
Keryx Biopharmaceuticals*		8,177		41
Kindred Healthcare		227,711		2,712
Kite Pharma*		2,586		159
La Jolla Pharmaceutical*		1,200		32
Landauer		800		26
Lannett*		2,300		92
LDR Holding*		2,100		53
LeMaitre Vascular		1,200		21
Lexicon Pharmaceuticals*		3,871		52
LHC Group*		1,200		54
Ligand Pharmaceuticals*		20,900		2,265
Lion Biotechnologies*		3,200		25
LivaNova*		3,922		233
Loxo Oncology*		800		23
Luminex*		3,500		75
MacroGenics*		2,700		84
Magellan Health*		2,444		151
MannKind*		21,932		32
Masimo*		3,815		158
MedAssets*		5,300		164
Medgenics*		1,700		10
Medicines*		5,790		216
Medidata Solutions*		4,951		244
MEDNAX*		22,514		1,613
Meridian Bioscience		3,816		78
Merit Medical Systems*		85,560		1,591
Merrimack Pharmaceuticals*		9,700		77
MiMedx Group*		9,900		93
Mirati Therapeutics*		1,000		32
Molina Healthcare*		54,635		3,285
Momenta Pharmaceuticals*		5,553		82
Myriad Genetics*		32,565		1,406
NanoString Technologies*		1,300		19
NantKwest*		900		16
Natera*		1,100		12
National HealthCare		800		49

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
National Research, Cl A		800	$	13
Natus Medical*		27,973		1,344
Navidea Biopharmaceuticals*		12,700		17
Nektar Therapeutics*		11,550		195
Neogen*		3,173		179
NeoGenomics*		97,040		764
Neos Therapeutics*		600		9
Neurocrine Biosciences*		16,783		949
Nevro*		15,086		1,018
NewLink Genetics*		1,841		67
Nivalis Therapeutics*		700		5
Nobilis Health*		2,200		6
Northwest Biotherapeutics*		3,600		12
Novavax*		23,334		196
NuVasive*		14,851		804
NxStage Medical*		62,730		1,374
Ocata Therapeutics*		3,400		29
Ocular Therapeutix*		1,100		10
Omeros*		3,000		47
Omnicell*		3,182		99
OncoMed Pharmaceuticals*		1,400		32
Oncothyreon*		7,800		17
Ophthotech*		2,100		165
OraSure Technologies*		4,800		31
Orexigen Therapeutics*		7,427		13
Organovo Holdings*		8,700		22
Orthofix International*		1,759		69
Osiris Therapeutics		1,600		17
Otonomy*		1,300		36
OvaScience*		1,900		19
Owens & Minor		5,459		196
Oxford Immunotec Global*		1,900		22
Pacific Biosciences of California*		4,900		64
Pacira Pharmaceuticals*		24,870		1,910
Paratek Pharmaceuticals*		900		17
PAREXEL International*		35,218		2,399
PDL BioPharma		15,031		53
Penumbra*		400		22
Peregrine Pharmaceuticals*		14,200		17
Pernix Therapeutics Holdings*		2,800		8
Pfenex*		1,200		15
PharMerica*		2,800		98
Phibro Animal Health, Cl A		1,400		42
Portola Pharmaceuticals, Cl A*		4,099		211
POZEN*		2,300		16
PRA Health Sciences*		1,600		72
Press Ganey Holdings*		1,000		32


Description	Shares		Value (000)
Prestige Brands Holdings*		25,091	$	1,292
Progenics Pharmaceuticals*		6,500		40
Proteon Therapeutics*		800		12
Prothena*		2,700		184
Providence Service*		34,799		1,633
PTC Therapeutics*		28,570		926
Quality Systems		4,500		73
Quidel*		53,632		1,137
Radius Health*		2,900		178
RadNet*		2,500		15
Raptor Pharmaceutical*		6,300		33
Regulus Therapeutics*		2,500		22
Relypsa*		3,000		85
Repligen*		2,900		82
Retrophin*		3,100		60
Revance Therapeutics*		1,400		48
Rigel Pharmaceuticals*		6,700		20
Rockwell Medical*		4,500		46
RTI Surgical*		4,100		16
Sage Therapeutics*		1,200		70
Sagent Pharmaceuticals*		96,304		1,532
Sangamo BioSciences*		5,400		49
Sarepta Therapeutics*		3,700		143
SciClone Pharmaceuticals*		4,000		37
SeaSpine Holdings*		647		11
Second Sight Medical Products*		1,100		6
Select Medical Holdings		8,800		105
Sequenom*		9,900		16
Seres Therapeutics*		800		28
Sientra*		400		2
Sorrento Therapeutics*		2,100		18
Spark Therapeutics*		800		36
Spectranetics*		78,147		1,177
Spectrum Pharmaceuticals*		6,199		37
STAAR Surgical*		3,200		23
Stemline Therapeutics*		1,300		8
STERIS		28,724		2,164
Sucampo Pharmaceuticals, Cl A*		2,100		36
Supernus Pharmaceuticals*		39,420		530
Surgery Partners*		1,400		29
Surgical Care Affiliates*		1,900		76
SurModics*		1,100		22
Synergy Pharmaceuticals*		7,900		45
Synta Pharmaceuticals*		5,800		2
T2 Biosystems*		600		7
Tandem Diabetes Care*		135,017		1,595
Team Health Holdings*		6,268		275

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Teladoc*		900	$	16
Teligent*		4,000		36
TESARO*		2,100		110
Tetraphase Pharmaceuticals*		3,000		30
TG Therapeutics*		2,900		35
TherapeuticsMD*		11,400		118
Theravance		6,900		73
Theravance Biopharma		2,400		39
Threshold Pharmaceuticals*		4,700		2
Tobira Therapeutics*		100		1
Tokai Pharmaceuticals*		1,000		9
TransEnterix*		3,000		7
Trevena*		2,400		25
Triple-S Management, Cl B*		2,069		49
Trovagene*		1,700		9
Trupanion*		1,600		16
Ultragenyx Pharmaceutical*		7,700		864
Unilife*		9,600		5
Universal American		4,900		34
US Physical Therapy		1,000		54
Utah Medical Products		300		18
Vanda Pharmaceuticals*		3,500		33
Vascular Solutions*		1,600		55
Veracyte*		1,300		9
Verastem*		2,500		5
Versartis*		1,600		20
Vitae Pharmaceuticals*		1,300		24
Vital Therapies*		1,200		14
VIVUS*		7,568		8
Vocera Communications*		1,899		23
WellCare Health Plans*		27,880		2,180
West Pharmaceutical Services		6,268		377
Wright Medical Group*		7,793		188
XBiotech*		500		5
Xencor*		2,100		31
XenoPort*		4,900		27
XOMA*		6,400		9
Zafgen*		1,200		8
Zeltiq Aesthetics*		2,900		83
ZIOPHARM Oncology*		10,110		84
Zogenix*		2,312		34

				96,284

Industrials — 16.4%
AAON		3,612		84
AAR		3,199		84
ABM Industries		4,847		138


Description	Shares		Value (000)
Acacia Research		198,965	$	853
ACCO Brands*		9,800		70
Accuride*		3,700		6
Active Power*		255,313		332
Actuant, Cl A		5,381		129
Advanced Drainage Systems		2,800		67
Advisory Board*		3,662		182
Aegion, Cl A*		3,000		58
AerCap Holdings*		33,500		1,446
Aerojet Rocketdyne Holdings*		5,493		86
Aerovironment*		1,500		44
Air Transport Services Group*		4,800		48
Aircastle		5,500		115
Alamo Group		800		42
Albany International, Cl A		11,216		410
Allegiant Travel, Cl A		1,128		189
Allegion		32,600		2,149
Allied Motion Technologies		600		16
Allison Transmission Holdings		93,650		2,424
Altra Industrial Motion		31,807		798
Ameresco, Cl A*		1,900		12
American Railcar Industries		700		32
American Science & Engineering		14,367		595
American Woodmark*		1,100		88
AO Smith		14,000		1,073
Apogee Enterprises		25,080		1,091
Applied Industrial Technologies		3,594		146
ARC Document Solutions*		3,500		15
ArcBest		42,644		912
Argan		1,000		32
Astec Industries		42,021		1,710
Astronics, Cl A*		1,886		77
Atlas Air Worldwide Holdings*		2,300		95
AZZ		17,822		990
Barnes Group		37,640		1,332
Barrett Business Services		600		26
Beacon Roofing Supply*		40,529		1,668
BG Staffing		36,982		554
Blount International*		4,100		40
BMC Stock Holdings*		136,905		2,292
Brady, Cl A		4,191		96
Briggs & Stratton		68,088		1,178
Brink’s		4,130		119
Builders FirstSource*		85,580		948
CAI International*		48,066		485
Carlisle		29,910		2,652
Casella Waste Systems, Cl A*		67,560		404

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
CBIZ*		4,491	$	44
CDI		900		6
CEB		2,942		181
CECO Environmental		2,800		22
Celadon Group		102,933		1,018
Chart Industries*		2,779		50
Chicago Bridge & Iron		56,510		2,203
CIRCOR International		1,400		59
Civeo*		7,851		11
CLARCOR		9,117		453
Columbus McKinnon		47,223		893
Comfort Systems USA		3,260		93
Commercial Vehicle Group*		148,680		410
Continental Building Products*		57,610		1,006
Covenant Transportation Group, Cl A*		800		15
CPI Aerostructures*		129,480		1,260
CRA International*		800		15
Crane		35,816		1,713
Cubic		1,949		92
Curtiss-Wright		4,077		279
Deluxe		47,464		2,589
DigitalGlobe*		70,227		1,100
Douglas Dynamics		1,771		37
Ducommun*		900		15
DXP Enterprises*		996		23
Dycom Industries*		51,322		3,590
Eagle Bulk Shipping*		2,000		7
Echo Global Logistics*		2,400		49
EMCOR Group		57,693		2,772
Encore Wire		1,851		69
EnerSys		3,819		214
Engility Holdings		1,400		45
Ennis		2,200		42
Enphase Energy*		1,600		6
EnPro Industries		2,000		88
ESCO Technologies		2,400		87
Essendant		3,404		111
Esterline Technologies*		2,575		209
ExOne*		700		7
Exponent		2,250		112
Federal Signal		5,696		90
Forward Air		16,981		730
Franklin Covey*		900		15
Franklin Electric		4,169		113
FreightCar America		1,000		19
FTI Consulting*		3,728		129
FuelCell Energy*		1,650		8


Description	Shares		Value (000)
Furmanite*		3,195	$	21
G&K Services, Cl A		1,746		110
GATX		59,520		2,532
Generac Holdings*		6,009		179
General Cable		4,442		60
Genesee & Wyoming, Cl A*		14,528		780
Gibraltar Industries*		2,400		61
Global Brass & Copper Holdings		1,800		38
Golden Ocean Group		5,290		6
Gorman-Rupp		1,573		42
GP Strategies*		1,000		25
Graco		8,670		625
Graham		900		15
Granite Construction		118,046		5,064
Great Lakes Dredge & Dock*		5,100		20
Greenbrier		2,285		75
Griffon		3,000		53
H&E Equipment Services		2,531		44
Harsco		7,100		56
Hawaiian Holdings*		4,100		145
HC2 Holdings*		1,900		10
Healthcare Services Group		6,378		222
Heartland Express		4,284		73
HEICO		5,202		264
Heidrick & Struggles International		1,500		41
Heritage-Crystal Clean*		800		8
Herman Miller		5,339		153
Hill International*		2,100		8
Hillenbrand		5,616		166
HNI		3,905		141
Hub Group, Cl A*		3,182		105
Hurco		500		13
Huron Consulting Group*		2,034		121
Hyster-Yale Materials Handling		773		41
ICF International*		1,600		57
InnerWorkings*		148,298		1,112
Insperity		1,700		82
Insteel Industries		1,475		31
Interface, Cl A		5,923		113
JetBlue Airways*		79,100		1,792
John Bean Technologies		20,842		1,039
Kadant		900		37
Kaman		2,445		100
KBR		184,802		3,127
Kelly Services, Cl A		2,848		46
KEYW Holding*		2,800		17
Kforce		2,200		56

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Kimball International, Cl B		2,900	$	28
KLX*		4,600		142
Knight Transportation		5,300		128
Knoll		81,440		1,531
Korn		4,366		145
Kratos Defense & Security Solutions*		3,700		15
Lawson Products*		600		14
LB Foster, Cl A		800		11
Lindsay		1,100		80
LSI Industries		1,600		20
Lydall*		1,605		57
Marten Transport		99,817		1,766
Masco		60,000		1,698
Masonite International*		18,426		1,128
MasTec*		5,902		103
Matson		3,865		164
Matthews International, Cl A		31,961		1,708
McGrath RentCorp		148,783		3,749
Meritor*		8,900		74
Middleby*		9,826		1,060
Milacron Holdings*		1,400		18
Miller Industries		900		20
Mistras Group*		1,200		23
Mobile Mini		4,151		129
Moog, Cl A*		3,406		206
MRC Global*		9,300		120
MSA Safety		51,494		2,238
Mueller Industries		5,174		140
Mueller Water Products, Cl A		14,090		121
Multi-Color		1,100		66
MYR Group*		1,700		35
National Presto Industries		400		33
Navigant Consulting*		36,439		585
Navios Maritime Holdings		6,700		12
Navistar International*		4,600		41
NCI Building Systems*		225,696		2,801
Neff, Cl A*		700		5
NL Industries*		300		1
NN		2,400		38
Nortek*		900		39
Northwest Pipe*		700		8
NV5 Global*		500		11
Omega Flex		200		7
On Assignment*		62,414		2,805
Orbital ATK		18,010		1,609
Orion Marine Group*		2,300		10
Oshkosh		41,824		1,633


Description	Shares		Value (000)
PAM Transportation Services*		200	$	6
Park-Ohio Holdings		700		26
Patrick Industries*		1,150		50
Pendrell*		12,200		6
PGT*		155,212		1,768
Pitney Bowes		132,530		2,738
Plug Power*		15,992		34
Ply Gem Holdings*		1,600		20
Powell Industries		734		19
Power Solutions International*		400		7
PowerSecure International*		107,190		1,613
Preformed Line Products		100		4
Primoris Services		83,832		1,847
Proto Labs*		2,128		136
Quad		2,200		20
Quanex Building Products		2,800		58
Radiant Logistics*		114,800		394
Raven Industries		3,370		53
RBC Bearings*		2,060		133
Regal Beloit		41,275		2,414
Republic Airways Holdings*		4,000		16
Resources Connection		3,000		49
Revolution Lighting Technologies*		873,073		694
Rexnord*		8,905		161
Roadrunner Transportation Systems*		92,528		873
RPX*		4,900		54
Rush Enterprises, Cl A*		3,131		69
Safe Bulkers		3,200		3
Saia*		2,229		50
Scorpio Bulkers*		2,556		25
Simpson Manufacturing		3,685		126
SkyWest		4,600		87
SP Plus*		48,413		1,157
Sparton*		700		14
Standex International		11,070		920
Steelcase, Cl A		7,066		105
Sun Hydraulics		4,085		130
Sunrun*		1,800		21
Swift Transportation, Cl A*		115,330		1,594
TAL International Group		2,647		42
TASER International*		4,812		83
Team*		1,944		62
Teledyne Technologies*		3,093		274
Tennant		1,641		92
Tetra Tech		79,084		2,058
Textainer Group Holdings		2,100		30
Thermon Group Holdings*		2,600		44

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Titan International		3,700	$	15
Titan Machinery*		22,100		242
TRC*		1,600		15
Trex*		2,700		103
TriMas*		30,669		572
TriNet Group*		3,700		72
Trinity Industries		97,940		2,353
TrueBlue*		3,689		95
Tutor Perini*		103,742		1,737
Twin Disc		700		7
Ultrapetrol Bahamas*		2,700		—
UniFirst		25,073		2,614
Univar*		3,600		61
Universal Forest Products		1,723		118
Universal Truckload Services		400		6
US Ecology		1,900		69
USA Truck*		600		10
UTi Worldwide*		8,489		60
Vectrus*		700		15
Veritiv*		600		22
Viad		1,600		45
Vicor*		1,200		11
Virgin America*		2,200		79
Volt Information Sciences*		1,000		8
VSE		300		19
Wabash National*		123,170		1,457
Wabtec		13,700		974
WageWorks*		3,100		141
Watts Water Technologies, Cl A		2,495		124
Werner Enterprises		4,000		94
Wesco Aircraft Holdings*		5,006		60
West		4,700		101
Woodward		5,692		283
Xerium Technologies*		700		8
XPO Logistics*		6,193		169
YRC Worldwide*		3,042		43

				127,813

Information Technology — 19.3%
6D Global Technologies* (B)		2,200		6
A10 Networks*		3,200		21
ACI Worldwide*		45,425		972
Activision Blizzard		16,700		646
Actua*		3,207		37
Acxiom*		6,805		142
ADTRAN		146,632		2,526
Advanced Energy Industries*		32,861		928


Description	Shares		Value (000)
Advanced Micro Devices*		57,500	$	165
Aerohive Networks*		2,200		11
Agilysys*		1,400		14
Alarm.com Holdings*		1,000		17
Alliance Fiber Optic Products*		1,400		21
Alpha & Omega Semiconductor*		1,800		17
Ambarella*		2,700		150
Amber Road*		900		5
American Software, Cl A		2,000		20
Amkor Technology*		9,000		55
Angie’s List*		3,761		35
Anixter International*		2,500		151
Appfolio, Cl A*		700		10
Applied Micro Circuits*		7,400		47
Applied Optoelectronics*		1,600		27
Aspen Technology*		45,932		1,734
AVG Technologies*		3,700		74
Avid Technology*		2,300		17
Avnet		60,730		2,602
AVX		4,200		51
Axcelis Technologies*		10,900		28
Badger Meter		1,368		80
Bankrate*		6,068		81
Barracuda Networks*		600		11
Bazaarvoice*		248,697		1,089
Bel Fuse, Cl B		900		16
Belden		25,584		1,220
Benchmark Electronics*		33,800		699
Benefitfocus*		21,700		790
Black Box		1,300		12
Blackbaud		19,724		1,299
Blackhawk Network Holdings, Cl A*		4,734		209
Blucora*		3,458		34
Booz Allen Hamilton Holding, Cl A		17,100		528
Bottomline Technologies*		60,967		1,813
Box, Cl A*		1,100		15
Brightcove*		2,500		16
BroadSoft*		2,628		93
Brooks Automation		6,000		64
Cabot Microelectronics*		2,171		95
CACI International, Cl A*		13,759		1,277
CalAmp*		3,274		65
Calix*		3,500		28
Callidus Software*		82,288		1,528
Carbonite*		1,300		13
Cardtronics*		4,063		137
Care.com*		2,000		14

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Cascade Microtech*		1,000	$	16
Cass Information Systems		1,100		57
Cavium*		22,360		1,469
CEVA*		1,900		44
ChannelAdvisor*		57,870		801
Checkpoint Systems		3,200		20
Ciber*		6,500		23
Ciena*		10,608		219
Cimpress*		2,919		237
Cirrus Logic*		5,683		168
Clearfield*		900		12
Coherent*		2,136		139
Cohu		87,152		1,052
CommScope Holding*		37,600		973
CommVault Systems*		3,938		155
comScore*		2,983		123
Comtech Telecommunications		1,200		24
Constant Contact*		2,900		85
Control4*		2,000		15
Convergys		8,814		219
Cornerstone OnDemand*		4,602		159
CPI Card Group*		1,500		16
Cray*		3,600		117
Criteo ADR*		13,424		532
CSG Systems International		2,870		103
CTS		2,766		49
Cvent*		1,900		66
Cypress Semiconductor		253,492		2,487
CYREN*		292,662		498
Daktronics		3,200		28
Datalink*		1,400		10
Demandware*		2,900		157
DHI Group*		3,300		30
Diebold		115,738		3,482
Digi International*		2,000		23
Digimarc*		500		18
Digital Turbine*		4,900		7
Diodes*		3,300		76
DSP Group*		1,700		16
DST Systems		25,810		2,943
DTS*		1,600		36
EarthLink Holdings		9,200		68
Eastman Kodak*		1,500		19
Ebix		2,200		72
Electro Rent		1,200		11
Electronics For Imaging*		71,404		3,337
Ellie Mae*		2,599		157


Description	Shares		Value (000)
EMCORE*		2,400	$	15
Endurance International Group Holdings*		5,200		57
EnerNOC*		2,300		9
Entegris*		12,209		162
Envestnet*		3,402		102
EPAM Systems*		4,194		330
Epiq Systems		3,000		39
ePlus*		500		47
Euronet Worldwide*		58,589		4,243
Everi Holdings*		5,378		24
EVERTEC		5,492		92
Everyday Health*		1,900		11
Exar*		123,635		758
ExlService Holdings*		32,553		1,463
Extreme Networks*		8,100		33
Fabrinet*		39,419		939
Fair Isaac		2,706		255
Fairchild Semiconductor International, Cl A*		10,000		207
FARO Technologies*		1,400		41
FEI		3,606		288
Finisar*		9,175		133
First Solar*		17,300		1,142
Five9*		2,400		21
Fleetmatics Group*		3,310		168
FormFactor*		4,600		41
Forrester Research		800		23
Gartner*		7,846		712
Gigamon*		2,200		58
GigOptix*		462,727		1,407
Global Payments		31,920		2,059
Globant*		1,400		53
Glu Mobile*		9,800		24
Gogo*		5,100		91
GrubHub*		6,500		157
GSI Group*		77,346		1,053
GTT Communications*		49,795		850
Guidance Software*		1,700		10
Guidewire Software*		6,073		365
Hackett Group		2,000		32
Harmonic*		6,927		28
Heartland Payment Systems		19,108		1,812
Hortonworks*		500		11
HubSpot*		1,700		96
II-VI*		4,735		88
Imation*		3,400		5

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Immersion*		2,352	$	27
Imperva*		16,390		1,038
Infinera*		83,845		1,519
Infoblox*		5,055		93
Inphi*		45,652		1,234
Insight Enterprises*		25,874		650
Integrated Device Technology*		97,166		2,561
Interactive Intelligence Group*		1,600		50
InterDigital		3,200		157
Internap*		4,500		29
Intersil, Cl A		11,266		144
InterXion Holding*		41,020		1,237
Intralinks Holdings*		3,000		27
InvenSense, Cl A*		6,929		71
Itron*		28,600		1,035
Ixia*		5,200		65
IXYS		2,000		25
j2 Global		27,150		2,234
Jive Software*		3,300		13
Kimball Electronics*		2,150		24
Knowles*		60,280		804
Kopin*		5,200		14
KVH Industries*		1,300		12
Lattice Semiconductor*		9,172		59
Lexmark International, Cl A		66,213		2,149
Limelight Networks*		4,500		7
Lionbridge Technologies*		5,400		27
Liquidity Services*		32,800		213
Littelfuse		12,361		1,323
LivePerson*		4,240		29
LogMeIn*		15,121		1,015
Lumentum Holdings*		6,316		139
Luxoft Holding, Cl A*		1,600		123
M/A-COM TTechnology Solutions Holdings*		2,100		86
Manhattan Associates*		6,530		432
ManTech International, Cl A		2,200		67
Marchex, Cl B		2,200		9
Marin Software*		349,020		1,249
Marketo*		14,796		425
Mattson Technology*		5,200		18
MAXIMUS		5,660		318
MaxLinear, Cl A*		4,606		68
Mentor Graphics		8,915		164
Mercury Systems*		52,286		960
Mesa Laboratories		300		30
Methode Electronics		8,460		269


Description	Shares		Value (000)
Microsemi*		55,762	$	1,817
MicroStrategy, Cl A*		800		143
Mimecast*		45,138		433
MINDBODY, Cl A*		800		12
MKS Instruments		4,838		174
MobileIron*		3,500		13
Mobileye*		74,720		3,159
Model N*		233,771		2,609
ModusLink Global Solutions*		3,600		9
MoneyGram International*		2,486		16
Monolithic Power Systems		17,400		1,109
Monotype Imaging Holdings		3,700		87
Monster Worldwide*		7,500		43
MoSys*		208,382		227
MTS Systems		1,395		88
Multi-Fineline Electronix*		700		14
Nanometrics*		1,800		27
NeoPhotonics*		2,000		22
NETGEAR*		2,769		116
NetScout Systems*		7,948		244
NeuStar, Cl A*		5,000		120
New Relic*		500		18
Newport*		3,150		50
NIC		5,790		114
Nimble Storage*		4,600		42
Novatel Wireless*		3,900		7
Nuance Communications*		185,050		3,682
NVE		400		22
NVIDIA		47,900		1,579
Oclaro*		7,400		26
OmniVision Technologies*		4,962		144
OPOWER*		2,300		24
OSI Systems*		16,020		1,420
Park City Group*		700		8
Park Electrochemical		1,773		27
Paycom Software*		2,700		102
Paylocity Holding*		30,800		1,249
PC Connection		700		16
PDF Solutions*		2,400		26
Pegasystems		31,159		857
Perficient*		3,306		57
PFSweb*		1,200		15
Photronics*		5,494		68
Plantronics		3,074		146
Plexus*		2,832		99
PMC-Sierra*		15,618		181
Polycom*		11,777		148

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Power Integrations		2,483	$	121
Progress Software*		4,264		102
Proofpoint*		55,022		3,578
PROS Holdings*		48,640		1,121
Pure Storage, Cl A*		2,500		39
Q2 Holdings*		45,455		1,199
QAD, Cl A		1,000		21
Qlik Technologies*		7,906		250
QLogic*		7,915		97
Qualys*		2,300		76
Quantum*		18,600		17
QuinStreet*		2,600		11
Quotient Technology*		4,500		31
Rackspace Hosting*		141,930		3,593
Radisys*		319,765		886
Rambus*		9,900		115
Rapid7*		800		12
RealD*		3,800		40
RealNetworks*		2,200		9
RealPage*		35,380		794
Reis		723		17
RetailMeNot*		3,200		32
RingCentral, Cl A*		107,523		2,535
Rocket Fuel*		1,600		6
Rofin-Sinar Technologies*		2,300		62
Rogers*		52,400		2,701
Rovi*		36,900		615
Rubicon Project*		2,400		39
Ruckus Wireless*		74,193		795
Rudolph Technologies*		2,800		40
Sanmina*		7,138		147
Sapiens International		2,047		21
ScanSource*		2,547		82
Science Applications International		4,009		184
SciQuest*		2,100		27
Seachange International*		44,508		300
Semtech*		5,608		106
ServiceNow*		39,935		3,457
ServiceSource International*		5,700		26
SharpSpring		117,478		374
ShoreTel*		182,398		1,614
Shutterstock*		1,803		58
Sigma Designs*		2,600		16
Silicon Graphics International*		2,900		17
Silicon Laboratories*		3,700		180
Silver Spring Networks*		2,900		42
Sonus Networks*		3,796		27


Description	Shares		Value (000)
SPS Commerce*		16,900	$	1,187
SS&C Technologies Holdings		24,525		1,674
Stamps.com*		34,940		3,829
Stratasys*		4,600		108
Super Micro Computer*		3,300		81
Sykes Enterprises*		3,400		105
Synaptics*		3,282		264
Synchronoss Technologies*		3,514		124
SYNNEX		2,494		224
Syntel*		2,700		122
Take-Two Interactive Software*		7,341		256
Tangoe*		3,000		25
Tech Data*		3,200		212
TechTarget*		1,400		11
TeleCommunication Systems, Cl A*		3,900		19
Telenav*		2,100		12
TeleTech Holdings		1,300		36
Tessera Technologies		4,747		142
Textura*		1,800		39
TiVo*		8,591		74
Travelport Worldwide		9,484		122
Travelzoo*		700		6
TrueCar*		3,600		34
TTM Technologies*		4,553		30
TubeMogul*		1,300		18
Tyler Technologies*		12,192		2,125
Ubiquiti Networks*		2,732		87
Ultra Clean Holdings*		2,500		13
Ultratech*		2,204		44
Unisys*		4,561		50
United Online*		1,000		12
Universal Display*		14,941		813
Vantiv, Cl A*		11,200		531
Varonis Systems*		500		9
VASCO Data Security International*		2,400		40
Veeco Instruments*		39,124		804
Verint Systems*		5,319		216
ViaSat*		3,773		230
Violin Memory*		6,800		6
VirnetX Holding*		3,600		9
Virtusa*		2,599		107
Vishay Intertechnology		277,220		3,340
Vishay Precision Group*		900		10
Web.com Group*		48,096		962
WebMD Health, Cl A*		3,290		159
Wix.com*		1,600		36
Workiva, Cl A*		700		12

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Xactly*		1,400	$	12
Xcerra*		4,100		25
XO Group*		2,200		35
Xura*		2,100		52
Zendesk*		62,750		1,659
Zix*		4,700		24

				150,336

Materials — 4.9%
A Schulman		2,628		81
AEP Industries*		300		23
AK Steel Holding*		13,452		30
Alamos Gold, Cl A		52,202		172
American Vanguard		2,200		31
AptarGroup		53,895		3,916
Avery Dennison		41,285		2,587
Axiall		85,462		1,316
Balchem		2,665		162
Berry Plastics Group*		49,350		1,785
Boise Cascade*		63,236		1,615
Cabot		96,843		3,958
Calgon Carbon		4,800		83
Carpenter Technology		4,500		136
Century Aluminum*		4,264		19
Chase		600		24
Chemtura*		33,629		917
Clearwater Paper*		1,700		77
Cliffs Natural Resources		11,300		18
Coeur Mining*		10,276		25
Commercial Metals		199,899		2,737
Compass Minerals International		37,031		2,788
Core Molding Technologies*		700		9
Deltic Timber		940		55
Ferro*		91,203		1,014
Ferroglobe		5,800		62
Flotek Industries*		4,900		56
FutureFuel		2,300		31
Greif, Cl A		31,023		956
Handy & Harman*		200		4
Hawkins		800		29
Haynes International		33,035		1,212
HB Fuller		4,568		167
Headwaters*		94,381		1,592
Hecla Mining		32,922		62
Horsehead Holding*		4,429		9
Innophos Holdings		1,687		49
Innospec		2,090		114


Description	Shares		Value (000)
Intrepid Potash*		4,574	$	13
Kaiser Aluminum		1,508		126
KapStone Paper and Packaging		7,429		168
KMG Chemicals		700		16
Koppers Holdings		1,548		28
Kraton Performance Polymers*		41,239		685
Kronos Worldwide		164,586		928
Louisiana-Pacific*		12,355		223
LSB Industries*		1,500		11
Materion		1,653		46
Minerals Technologies		3,107		142
Multi Packaging Solutions International*		38,857		674
Myers Industries		2,098		28
Neenah Paper		1,464		91
Olin		14,229		246
Olympic Steel		700		8
OMNOVA Solutions*		4,000		25
PH Glatfelter		3,876		71
PolyOne		92,883		2,949
Quaker Chemical		1,134		88
Rayonier Advanced Materials		3,000		29
Real Industry*		1,700		14
Rentech*		1,910		7
Ryerson Holding*		600		3
Schnitzer Steel Industries, Cl A		2,058		30
Schweitzer-Mauduit International		2,644		111
Senomyx*		3,500		13
Sensient Technologies		4,137		260
Silgan Holdings		12,300		661
Stepan		1,800		89
Stillwater Mining*		10,628		91
Summit Materials, Cl A*		2,335		47
SunCoke Energy		5,324		18
TimkenSteel		3,000		25
Trecora Resources*		1,600		20
Tredegar		1,800		25
Trinseo*		1,000		28
Tronox, Cl A		4,797		19
United States Lime & Minerals		100		5
US Concrete*		22,601		1,190
Valhi		2,200		3
Vulcan Materials		11,075		1,052
Wausau Paper		3,600		37
Worthington Industries		4,232		128

				38,392

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
Telecommunication Services — 0.8%
8x8*		88,463	$	1,013
Atlantic Telegraph-Network		892		70
Boingo Wireless*		3,100		21
Cincinnati Bell*		18,700		67
Cogent Communications Holdings		36,981		1,283
Consolidated Communications Holdings		4,496		94
FairPoint Communications*		1,600		26
General Communication, Cl A*		2,800		55
Globalstar*		42,382		61
Hawaiian Telcom Holdco*		900		22
IDT, Cl B		1,300		15
inContact*		218,315		2,084
Inteliquent		3,000		53
Intelsat*		2,400		10
Iridium Communications*		6,348		53
Lumos Networks		1,616		18
NTELOS Holdings*		1,300		12
ORBCOMM*		5,900		43
pdvWireless*		1,200		33
Shenandoah Telecommunications		2,100		90
Spok Holdings		1,800		33
Straight Path Communications*		700		12
Vonage Holdings*		141,800		814
Windstream Holdings		9,000		58
Zayo Group Holdings*		18,800		500

				6,540

Utilities — 1.2%
Abengoa Yield		4,300		83
AGL Resources		17,300		1,104
ALLETE		32,521		1,654
American States Water		3,273		137
Artesian Resources, Cl A		700		19
Atlantic Power		8,600		17
Avista		5,400		191
Black Hills		4,476		208
California Water Service Group		4,200		98
Chesapeake Utilities		1,390		79
Cleco		5,224		273
Connecticut Water Service		923		35
Consolidated Water		1,400		17
Dynegy, Cl A*		11,037		149
El Paso Electric		3,480		134
Empire District Electric		56,277		1,580
Genie Energy, Cl B		1,200		13


Description	Shares		Value (000)
IDACORP		4,474	$	304
Laclede Group		3,800		226
MGE Energy		2,982		138
Middlesex Water		1,300		35
New Jersey Resources		7,416		244
Northwest Natural Gas		2,440		123
NorthWestern		4,100		222
NRG Yield, Cl A		8,644		125
ONE Gas		4,700		236
Ormat Technologies		3,300		120
Otter Tail		3,274		87
Pattern Energy Group, Cl A		4,701		98
Piedmont Natural Gas		6,823		389
PNM Resources		7,109		217
Portland General Electric		7,900		287
SJW		1,300		39
South Jersey Industries		6,196		146
Southwest Gas		4,005		221
Spark Energy, Cl A		200		4
Talen Energy*		7,400		46
TerraForm Global, Cl A		4,000		22
Unitil		1,117		40
Vivint Solar*		1,800		17
WGL Holdings		4,253		268
York Water		1,000		25

				9,470

Total Common Stock (Cost $788,172) (000)				747,362

EXCHANGE TRADED FUNDS — 0.3%
iShares Russell 2000		12,393		1,395
iShares Russell 2000 Value		10,645		979

Total Exchange Traded Funds (Cost $2,626) (000)				2,374


RIGHTS — 0.0%
	Number of Rights
Chelsea Therapeutics International* (B)†		2,000		—
Durata Therapeutics* (B)†		900		—
Furiex Pharmaceuticals* (B)†		300		—
Leap Wireless* (B)†		2,300		—

Total Rights (Cost $—) (000)				—

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Small Cap Equity Fund


Description	Shares		Value (000)
SHORT-TERM INVESTMENT (D) — 4.0%
State Street Institutional Liquid Reserves Fund, Institutional Class, 0.000%		30,887,842	$	30,888

Total Short-Term Investment (Cost $30,888) (000)				30,888

Total Investments — 100.0% (Cost $821,686) (000)			$	780,624

Percentages are based on net assets of $780,852 (000).

A list of the open futures contracts held by the Fund at December 31, 2015 is as follows (000):

For the year ended December 31, 2015, the monthly average value of futures contracts held was $7,050 (000).

*	Non-income producing security.

‡	Real Estate Investment Trust

†	Expiration date is unavailable.

(A)

Security sold within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “accredited investors.” This security has been determined to be liquid under guidelines established by the Board of Trustees.

(B)

(C)

Security considered Master Limited Partnership. At December 31, 2015, this security amounted to $631 (000) or 0.1% of net assets.

(D)

The rate reported is the 7-day effective yield as of December 31, 2015.

ADR

— American Depositary Receipt

Cl —

Class

The following is a list of the level of inputs used as of December 31, 2015, in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1			Level 2		Level 3‡		Total
Common Stock	$	747,356		$	—	$	6	$	747,362
Exchange Traded Funds		2,374			—		—		2,374
Rights		—			—		—		—
Short-Term Investment		30,888			—		—		30,888

Total Investments in Securities	$	780,618		$	—	$	6	$	780,624


Other Financial Instruments	Level 1			Level 2		Level 3		Total
Futures Contracts†
Unrealized Depreciation	$	(7	)	$	—	$	—	$	(7	)

Total Other Financial Instruments	$	(7	)	$	—	$	—	$	(7	)

†	Futures contracts are valued at the unrealized depreciation on the instrument.

‡

For the year ended December 31, 2015, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended December 31, 2015, there were transfers between Level 1 and Level 3 assets and liabilities due to changes in the availability of observable inputs used to determine fair value. All transfers, if any, are recognized by the Fund at the end of the year.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund

Sector Weightings† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
COMMON STOCK — 95.3%
Australia — 2.6%
AGL Energy		16,399	$	215
ALS		83,363		228
Alumina		640,507		535
Amcor		44,699		436
AMP		75,204		318
APA Group		29,094		183
Aristocrat Leisure		12,123		90
Asciano		15,444		98
ASX		4,575		141
Aurizon Holdings		51,692		164
AusNet Services		43,860		47
Australia & New Zealand Banking Group		73,163		1,481
Bank of Queensland		8,852		90
Bendigo & Adelaide Bank		10,720		93
BHP Billiton		97,358		1,259
BlueScope Steel		137,142		439
Boral		18,154		78
Brambles		39,844		335
Caltex Australia		6,381		175
Challenger		13,878		88
CIMIC Group		2,400		42
Coca-Cola Amatil		108,860		735
Cochlear		1,541		107
Commonwealth Bank of Australia		42,455		2,632


Description	Shares		Value (000)
Computershare		10,768	$	91
Crown Resorts		8,607		78
CSL		11,489		880
Dexus Property Group‡		25,387		138
DUET Group		56,544		94
DuluxGroup		41,030		198
Fairfax Media		535,786		358
Flight Centre Travel Group		1,071		31
Fortescue Metals Group		34,218		46
Goodman Group‡		45,676		208
GPT Group‡		43,142		149
GUD Holdings		19,983		123
Harvey Norman Holdings		13,709		42
Healthscope		42,267		82
Iluka Resources		63,121		280
Incitec Pivot		44,462		127
Insurance Australia Group		60,750		245
Lend Lease Group		13,505		140
Macquarie Group		7,589		455
Medibank		65,309		102
Metcash*		160,656		188
Mirvac Group‡		87,386		125
National Australia Bank		65,758		1,440
Newcrest Mining*		42,014		396
Oil Search		33,383		162
Orica		139,810		1,570
Origin Energy		41,208		141
Orora		34,000		55
Platinum Asset Management		5,133		30
Premier Investments		3,000		31
Qantas Airways*		12,184		36
QBE Insurance Group		34,820		318
Ramsay Health Care		3,472		171
REA Group		1,468		59
Rio Tinto PLC		10,328		335
SAI Global		52,751		160
Santos		78,108		210
Scentre Group‡		134,839		409
SEEK		7,366		82
Sigma Pharmaceuticals		181,235		114
Sonic Healthcare		9,615		125
South32*		93,414		72
Stockland‡		61,746		184
Suncorp Group		32,708		288
Sydney Airport		25,384		117
Tabcorp Holdings		20,800		71

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Tatts Group		34,032	$	108
Telstra		108,263		441
TPG Telecom		7,269		52
Transpacific Industries Group		590,992		337
Transurban Group		51,423		391
Treasury Wine Estates		18,496		111
Vicinity Centres‡		88,034		180
Wesfarmers		28,241		854
Westfield‡ *		50,109		345
Westpac Banking		83,105		2,023
Woodside Petroleum		18,769		393
Woolworths		31,934		567

				26,567

Austria — 0.2%
ANDRITZ		6,332		310
Erste Group Bank*		7,257		228
Oesterreichische Post		9,415		344
OMV		3,480		99
Raiffeisen Bank International*		3,314		49
Voestalpine		2,687		83
Wienerberger		28,978		538

				1,651

Belgium — 0.8%
Ageas		4,906		228
Anheuser-Busch InBev		36,126		4,472
Colruyt		1,601		82
Delhaize Group		2,587		253
Groupe Bruxelles Lambert		1,979		169
KBC Groep		34,052		2,133
Proximus		3,595		117
Solvay		1,803		193
Telenet Group Holding*		1,219		66
UCB		3,151		284
Umicore		2,250		94

				8,091

Brazil — 1.5%
Ambev		372,779		1,670
B2W Cia Digital*		41,168		158
Banco do Brasil		315,800		1,177
BM&FBovespa-Bolsa de Valores Mercadorias e Futuros		118,600		326
Braskem ADR		46,552		630
BRF		78,200		1,095
BTG Pactual Group		51,000		193
Cia Energetica de Minas Gerais ADR		278,359		418
EDP-Energias do Brasil		315,000		959


Description	Shares		Value (000)
Fibria Celulose		165,500	$	2,171
FII BTG Pactual Corporate Office Fund, Cl Institutional‡		2,117		50
Fleury		39,900		161
Grendene		139,500		594
JBS		543,400		1,696
Light		118,400		296
LPS Brasil Consultoria de Imoveis*		78,900		45
Magazine Luiza		15,838		71
MRV Engenharia e Participacoes		202,200		444
Multiplus		27,000		254
Natura Cosmeticos		18,027		107
Porto Seguro		31,300		228
QGEP Participacoes		82,200		121
Raia Drogasil*		113,000		1,013
Smiles		8,600		76
Tim Participacoes		97,503		169
TOTVS		42,036		330
Ultrapar Participacoes		41,300		631

				15,083

Canada — 1.2%
Brookfield Asset Management, Cl A		15,324		483
Canadian National Railway		73,196		4,090
Canadian Natural Resources		38,344		837
Element Financial		126,093		1,522
Loblaw		32,498		1,535
Rogers Communications, Cl B		20,915		721
Suncor Energy		79,084		2,042
Valeant Pharmaceuticals International*		14,322		1,456

				12,686

Chile — 0.2%
Cia Cervecerias Unidas		66,908		906
Cia Sud Americana de Vapores*		3,215,578		62
Enersis		1,601,974		387
Inversiones La Construccion		4,669		48
Quinenco		234,402		414
Sociedad Quimica y Minera de Chile ADR		1,398		27

				1,844

China — 2.6%
361 Degrees International		138,000		52
Agricultural Bank of China, Cl H		453,000		185
Ajisen China Holdings		474,000		211
Alibaba Group Holding ADR*		32,573		2,647
Aupu Group Holding		140,000		41

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Baidu ADR*		3,823	$	723
Bank of China, Cl H		7,712,000		3,432
Bank of Communications, Cl H		1,116,000		782
Beijing Capital International Airport, Cl H		80,000		86
CECEP COSTIN New Materials Group		1,134,000		135
China Construction Bank, Cl H		8,717,000		5,948
China Distance Education Holdings ADR*		2,688		39
China Eastern Airlines, Cl H*		1,292,000		735
China Lodging Group ADR		4,101		128
China Ming Yang Wind Power Group ADR*		15,685		36
China Petroleum & Chemical, Cl H		1,242,000		750
China Southern Airlines, Cl H		1,306,000		1,009
China Telecom, Cl H		4,740,000		2,219
Chongqing Rural Commercial Bank, Cl H		391,000		236
Goodbaby International Holdings*		319,000		116
Harbin Electric, Cl H		290,000		138
Li Ning*		1,060,791		573
Mindray Medical International ADR		8,389		228
NetEase ADR		18,731		3,395
New Oriental Education & Technology Group ADR*		28,291		888
Peak Sport Products		376,000		105
Shenzhou International Group Holdings		20,579		119
Sinotruk Hong Kong		632,500		251
TravelSky Technology, Cl H		636,000		1,043
Tsingtao Brewery, Cl H		60,000		272
Want Want China Holdings		440,996		328
XTEP International Holdings		98,500		53
Yangzijiang Shipbuilding Holdings		47,000		36
Yingde Gases Group		165,000		76

				27,015

Colombia — 0.1%
Almacenes Exito		30,547		130
Bancolombia ADR		12,500		335
Ecopetrol ADR		8,556		60
Grupo Aval Acciones y Valores ADR		16,158		105

				630

Cyprus — 0.0%
Global Ports Investments GDR*		74,229		243


Description	Shares		Value (000)
Czech Republic — 0.0%
Komercni Banka		800	$	159

Denmark — 1.8%
AP Moeller-Maersk, Cl B		265		346
Carlsberg, Cl B		29,923		2,652
Chr Hansen Holding		2,409		152
Coloplast, Cl B		38,060		3,098
Danske Bank		24,389		657
DSV		4,576		181
GN Store Nord		50,857		928
ISS		9,782		355
Novo Nordisk, Cl B		78,775		4,587
Novozymes, Cl B		5,817		280
Pandora		2,797		354
TDC		20,000		100
Topdanmark*		7,644		219
Tryg		2,822		57
Vestas Wind Systems		51,424		3,619
William Demant Holding*		11,733		1,125

				18,710

Finland — 0.8%
Amer Sports		4,398		128
Elisa		3,768		142
Fortum*		11,585		176
Kone, Cl B		8,547		363
Metso		12,610		284
Neste		3,030		91
Nokia		92,569		663
Nokian Renkaat		12,051		433
Orion, Cl B		2,593		90
Sampo, Cl A		67,168		3,410
Stora Enso, Cl R		13,600		124
Tikkurila		70,007		1,226
UPM-Kymmene		12,944		242
Wartsila, Cl B		12,062		550

				7,922

France — 7.0%
Accor		5,062		220
Aeroports de Paris		682		80
Air France-KLM*		75,091		575
Air Liquide		55,147		6,225
Alcatel-Lucent*		70,408		279
Alstom*		5,662		174
Arkema		1,618		114
Atos		2,255		190
AXA		79,885		2,194

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
BNP Paribas		49,084	$	2,792
Bollore		20,836		98
Bouygues		5,260		209
Bureau Veritas		68,041		1,361
Capital Gemini		4,147		387
Carrefour		14,020		406
Casino Guichard Perrachon		1,355		63
Christian Dior		1,359		232
Cie de Saint-Gobain		12,301		534
Cie Generale des Etablissements Michelin		4,715		451
CNP Assurances		4,000		54
Credit Agricole		26,838		318
Danone		103,387		6,995
Dassault Systemes		25,119		2,014
Edenred		29,020		551
Electricite de France		5,755		85
Elis*		4,284		71
Engie		211,216		3,755
Essilor International		5,168		646
Eurazeo		998		69
Eurofins Scientific		2,466		864
Eutelsat Communications		4,374		131
Fonciere Des Regions‡		744		67
Gecina‡		840		102
Groupe Eurotunnel		71,906		896
Hermes International		1,968		666
ICADE‡		860		58
Iliad		620		149
Imerys		2,378		167
Ingenico Group		1,337		170
JCDecaux		1,698		65
Kering		1,926		331
Klepierre‡		5,376		240
LafargeHolcim*		4,252		215
Lagardere		2,789		83
Legrand		59,130		3,360
L’Oreal		12,758		2,157
LVMH Moet Hennessy Louis Vuitton		30,843		4,863
Natixis		21,895		124
Neopost		10,837		266
Numericable-SFR*		2,877		105
Orange		49,906		841
Pernod Ricard		56,796		6,505
Peugeot*		11,296		199
Publicis Groupe		4,809		322
Remy Cointreau		502		36


Description	Shares		Value (000)
Renault		4,855	$	490
Rexel		6,919		92
Safran		7,886		543
Sanofi		34,164		2,917
Schneider Electric		93,692		5,357
SCOR		3,630		137
Societe BIC		764		126
Societe Generale		18,221		844
Sodexo		2,285		224
Suez Environnement		7,843		147
Technip		5,216		260
Thales		8,164		614
TOTAL		61,371		2,757
Unibail-Rodamco‡		2,483		629
Valeo		2,022		314
Vallourec		8,144		76
Veolia Environnement*		11,212		267
Vicat		3,398		205
Vinci		12,028		774
Vivendi		29,284		634
Wendel		722		86
Zodiac Aerospace		12,562		300

				71,917

Germany — 6.5%
adidas		7,223		706
Allianz		11,431		2,025
Axel Springer		13,117		732
BASF		41,569		3,183
Bayer		91,903		11,682
Bayerische Motoren Werke		21,257		2,233
Beiersdorf		57,041		5,218
Brenntag		13,933		724
Commerzbank*		27,114		282
Continental		2,769		676
CTS Eventim & KGaA		13,790		551
Daimler		24,080		2,018
Deutsche Bank		34,634		846
Deutsche Boerse		4,701		414
Deutsche Lufthansa*		5,196		82
Deutsche Post		24,379		687
Deutsche Telekom		158,779		2,869
Deutsche Wohnen		8,720		243
E.ON		95,540		927
Evonik Industries		3,344		112
Fielmann		3,399		252
Fraport Frankfurt Airport Services Worldwide		941		60

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Fresenius & KGaA		9,598	$	688
Fresenius Medical Care & KGaA		32,644		2,752
GEA Group		8,903		362
Gerresheimer		2,151		168
Hannover Rueck		3,375		386
HeidelbergCement		3,514		288
Henkel & KGaA		2,513		242
HUGO BOSS		1,632		136
Infineon Technologies		28,584		420
K+S		5,005		129
Kabel Deutschland Holding		516		64
LANXESS		2,163		100
Linde		27,186		3,955
MAN		805		81
Merck KGaA		32,204		3,155
METRO		4,170		134
MTU Aero Engines		11,478		1,122
Muenchener Rueckversicherungs-Gesellschaft in Muenchen		4,191		840
OSRAM Licht		2,103		88
ProSiebenSat.1 Media		45,112		2,286
RWE		11,566		147
SAP		90,015		7,182
Siemens		19,832		1,950
Symrise		10,328		687
Telefonica Deutschland Holding		14,583		77
ThyssenKrupp		9,605		191
TUI		87,447		1,569
United Internet		2,937		162
Volkswagen		835		129
Vonovia*		11,820		367
Zalando* (A)		2,333		92

				66,471

Greece — 0.1%
Aegean Airlines		18,687		139
Alpha Bank AE*		2,068		6
Athens Water Supply & Sewage		11,513		63
Hellenic Petroleum*		8,311		36
Intracom Holdings*		29,411		9
Motor Oil Hellas Corinth Refineries		48,576		523
Navios Maritime Acquisition		88,107		265
OPAP		12,002		106
Public Power		22,622		97

				1,244

Hong Kong — 4.2%
AIA Group		1,251,600		7,523
ASM Pacific Technology		6,000		47


Description	Shares		Value (000)
Bank of East Asia		28,311	$	105
BOC Hong Kong Holdings		92,000		280
Cathay Pacific Airways		28,000		48
Cheung Kong Infrastructure Holdings		15,000		139
Cheung Kong Property Holdings		160,740		1,045
China Child Care		338,000		35
China Lesso Group Holdings		326,000		228
China Lilang		148,000		109
China Mengniu Dairy		306,000		499
China Merchants Holdings International		65,593		208
China Mobile		556,500		6,248
China Resources Beer Holdings		294,805		631
China Travel International Investment Hong Kong		230,000		96
China Unicom Hong Kong		2,036,000		2,476
CK Hutchison Holdings		156,384		2,104
CLP Holdings		48,000		407
CNOOC		265,780		277
Daphne International Holdings*		550,000		92
Dawnrays Pharmaceutical Holdings		72,000		56
Esprit Holdings		1,009,477		1,116
First Pacific		628,000		417
Future Land Development Holdings		444,000		77
Galaxy Entertainment Group*		56,000		176
Geely Automobile Holdings		1,150,000		612
Genting Singapore		135,000		73
Global Brands Group Holding*		6,140,000		1,161
Guangdong Yueyun Transportation Company, Cl H		214,500		161
Guangnan Holdings		260,000		34
Guangzhou R&F Properties		236,400		291
Hang Lung Properties		55,000		125
Hang Seng Bank		19,400		369
Henderson Land Development		28,432		174
HK Electric Investments & HK Electric Investments (A)		73,703		62
HKT Trust, Cl Miscellaneous		62,740		81
Hong Kong & China Gas		176,320		346
Hong Kong Exchanges and Clearing		28,643		730
Hongkong & Shanghai Hotels		237,972		267
Hysan Development		15,000		62
Industrial & Commercial Bank of China, Cl H		67,000		40
Jardine Matheson Holdings		20,400		990
Kerry Properties		15,500		42

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Li & Fung		2,710,000	$	1,838
Link‡		55,500		332
Longfor Properties		133,000		199
Melco Crown Entertainment ADR		2,757		46
MGM China Holdings		23,600		30
MTR		34,765		172
New World Development		161,037		158
Nexteer Automotive Group		53,000		59
Noble Group		98,000		28
NWS Holdings		38,658		58
PCCW		97,136		57
People’s Insurance Group of China, Cl H		647,000		316
Ping An Insurance Group of China, Cl H		566,000		3,126
Pou Sheng International Holdings*		266,000		64
Power Assets Holdings		35,500		326
Scud Group* (B)		252,000		—
Shangri-La Asia		26,000		25
Sino Land		72,172		105
Sinopec Shanghai Petrochemical, Cl H*		2,428,000		964
SJM Holdings		48,000		34
Sky Light Holdings		180,000		58
Skyworth Digital Holdings		1,148,000		748
SmarTone Telecommunications Holdings		72,385		110
Stella International Holdings		43,948		110
Sun Hung Kai Properties		43,893		529
Swire Pacific, Cl A		14,000		157
Swire Properties		26,800		77
Techtronic Industries		36,000		147
Television Broadcasts		79,700		329
Tencent Holdings		127,100		2,501
Tianjin Port Development Holdings		438,000		73
Top Spring International Holdings		79,000		40
Uni-President China Holdings		49,000		38
Universal Health International Group Holding		181,000		70
Weiqiao Textile, Cl H		196,500		92
WH Group* (A)		131,849		74
Wharf Holdings		35,000		194
Wheelock		22,000		93
Wynn Macau*		36,800		43
Youyuan International Holdings		231,000		77
Yue Yuen Industrial Holdings		17,500		60

				43,616


Description	Shares		Value (000)
Hungary — 0.0%
OTP Bank		10,660	$	220

India — 0.7%
Dr Reddy’s Laboratories ADR		41,725		1,931
Infosys ADR		221,033		3,703
Tata Motors ADR*		2,436		72
WNS Holdings ADR*		50,063		1,561

				7,267

Indonesia — 0.7%
Adaro Energy		1,540,100		57
Agung Podomoro Land*		6,405,900		154
AKR Corporindo		1,120,300		580
Bank Mandiri Persero		561,900		377
Bank Negara Indonesia Persero		3,771,200		1,363
Bank Pembangunan Daerah Jawa Barat Dan Banten		2,147,800		117
Bank Pembangunan Daerah Jawa Timur		467,000		15
Bank Tabungan Negara Persero		6,373,700		595
Elnusa		2,968,800		53
Gudang Garam		70,000	��	278
Kawasan Industri Jababeka		57,839		1
Matahari Department Store		144,600		184
PT Energi Mega Persada*		13,967,200		51
PT Multipolar*		2,202,700		41
Telekomunikasi Indonesia Persero		8,354,300		1,877
Unilever Indonesia		44,500		119
United Tractors		722,600		891
XL Axiata*		369,600		97

				6,850

Ireland — 0.7%
Bank of Ireland*		4,919,706		1,806
CRH		25,725		747
DCC		13,247		1,106
Experian		86,528		1,536
Irish Continental Group		75,807		446
Kerry Group, Cl A		4,025		334
Paddy Power		7,850		1,050
Ryanair Holdings ADR		785		68

				7,093

Israel — 0.4%
Azrieli Group		819		31
Bank Hapoalim		25,021		129
Bank Leumi Le-Israel*		33,089		115
Bezeq The Israeli Telecommunication		44,326		98

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Check Point Software Technologies*		24,652	$	2,006
Delek Group		88		18
Israel Chemicals		12,849		52
Mizrahi Tefahot Bank		3,276		39
Mobileye*		1,979		84
NICE-Systems		1,340		77
Taro Pharmaceutical Industries*		231		36
Teva Pharmaceutical Industries		21,649		1,414

				4,099

Italy — 1.3%
Assicurazioni Generali		29,447		541
Atlantia		10,281		274
Banca Monte dei Paschi di Siena*		69,798		93
Banco Popolare*		8,559		119
CNH Industrial		155,815		1,073
Davide Campari-Milano		19,657		171
Enel		174,872		738
Enel Green Power		46,614		95
Eni		63,821		958
EXOR		2,328		106
Fiat Chrysler Automobiles*		21,849		307
Finmeccanica*		10,670		149
Intesa Sanpaolo		410,523		1,368
Luxottica Group		39,073		2,559
Mediobanca		13,368		128
Piaggio & C		303,906		773
Prysmian		5,202		114
Saipem*		69,925		570
Snam		52,347		274
Telecom Italia*		422,762		502
Terna Rete Elettrica Nazionale		39,299		203
UniCredit		346,877		1,929
Unione di Banche Italiane		22,043		149
UnipolSai		29,438		76

				13,269

Japan — 16.6%
ABC-Mart		700		38
Acom*		9,400		45
Aeon		16,300		253
AEON Financial Service		2,500		56
Aeon Mall		3,200		55
Air Water		4,000		64
Aisin Seiki		5,000		217
Ajinomoto		14,000		334
Alfresa Holdings		75,000		1,483
Alps Electric		4,200		115


Description	Shares		Value (000)
Amada Holdings		8,500	$	81
ANA Holdings		29,000		84
Aozora Bank		27,000		95
Asahi Glass		23,000		133
Asahi Group Holdings		9,600		302
Asahi Kasei		31,000		211
Asics		3,700		77
Astellas Pharma		67,100		964
Azbil		12,800		329
Bank of Kyoto		8,000		74
Bank of Yokohama		96,000		593
Benesse Holdings		1,700		49
Bridgestone		16,400		567
Brother Industries		5,400		63
Calbee		1,800		76
Canon		26,800		816
Casio Computer		4,800		113
Central Japan Railway		3,640		651
Chiba Bank		85,000		609
Chubu Electric Power		15,600		214
Chugai Pharmaceutical		5,800		204
Chugoku Bank		3,800		51
Chugoku Electric Power		6,800		90
Citizen Holdings		7,200		52
Credit Saison		3,500		69
Dai Nippon Printing		13,000		130
Daicel		7,400		110
Daihatsu Motor		4,300		58
Dai-ichi Life Insurance		157,400		2,628
Daiichi Sankyo		16,200		337
Daikin Industries		5,800		427
Daito Trust Construction		1,700		198
Daiwa House Industry		15,200		441
Daiwa Securities Group		40,000		246
Denso		129,000		6,221
Dentsu		12,600		690
Don Quijote Holdings		2,800		99
East Japan Railway		28,800		2,732
Eisai		6,220		415
Electric Power Development		3,500		125
FamilyMart		1,400		65
FANUC		20,880		3,639
Fast Retailing		1,300		460
Fuji Electric		14,000		59
Fuji Heavy Industries		14,800		616
Fuji Media Holdings		58,200		688
FUJIFILM Holdings		87,100		3,658

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Fujitsu		259,000	$	1,301
Fukuoka Financial Group		18,000		89
GungHo Online Entertainment*		8,100		22
Gunma Bank		9,000		52
Hachijuni Bank		9,000		55
Hakuhodo DY Holdings		5,800		63
Hamamatsu Photonics		3,200		88
Hankyu Hanshin Holdings		30,000		195
Hikari Tsushin		400		27
Hino Motors		5,700		66
Hirose Electric		700		85
Hiroshima Bank		12,000		68
Hisamitsu Pharmaceutical		1,600		67
Hitachi		428,000		2,445
Hitachi Chemical		2,500		40
Hitachi Construction Machinery		2,100		33
Hitachi High-Technologies		1,500		40
Hitachi Metals		5,000		62
Hokuhoku Financial Group		30,000		61
Hokuriku Electric Power		4,000		59
Honda Motor		193,300		6,244
Hoshizaki Electric		1,100		68
Hoya		170,000		7,003
Hulic		7,300		64
Idemitsu Kosan		2,100		34
IHI		33,000		91
Iida Group Holdings		4,000		74
Inpex		262,700		2,592
Isetan Mitsukoshi Holdings		54,800		716
Isuzu Motors		15,500		168
ITOCHU		39,900		476
Itochu Techno-Solutions		1,400		28
Iyo Bank		5,800		57
J Front Retailing		5,600		81
Japan Airlines*		3,000		108
Japan Airport Terminal		1,000		44
Japan Exchange Group		14,200		222
Japan Post Bank		10,000		146
Japan Post Holdings		88,600		1,375
Japan Prime Realty Investment‡		19		65
Japan Real Estate Investment‡		34		165
Japan Retail Fund Investment‡		58		112
Japan Tobacco		139,400		5,130
JFE Holdings		74,300		1,167
JGC		5,000		77
Joyo Bank		15,000		71
JSR		4,500		71


Description	Shares		Value (000)
JTEKT		4,700	$	77
JX Holdings		54,400		230
Kajima		20,000		120
Kakaku.com*		3,700		73
Kamigumi		5,000		43
Kaneka		8,000		83
Kansai Electric Power*		18,300		221
Kansai Paint		6,000		91
Kao		41,900		2,169
Kawasaki Heavy Industries		34,000		127
KDDI		43,900		1,149
Keihan Electric Railway		13,000		87
Keikyu		11,000		91
Keio		14,000		121
Keisei Electric Railway		7,000		89
Keyence		1,100		609
Kikkoman		4,000		140
Kinden		7,000		89
Kintetsu Group Holdings		43,000		175
Kirin Holdings		146,500		2,000
Kobe Steel		71,000		78
Koito Manufacturing		2,500		103
Komatsu		23,400		385
Konami Holdings		2,400		58
Konica Minolta		10,900		110
Kose		700		65
Kubota		28,000		437
Kuraray		9,300		113
Kurita Water Industries		2,500		53
Kyocera		66,700		3,122
Kyowa Hakko Kirin		6,000		95
Kyushu Electric Power*		10,100		111
Kyushu Financial Group		8,000		56
Lawson		1,600		130
LIXIL Group		42,800		956
M3*		4,600		96
Mabuchi Motor		1,200		65
Makita		2,900		169
Marubeni		40,200		208
Marui Group		67,600		1,109
Maruichi Steel Tube		1,300		38
Mazda Motor		13,800		288
McDonald’s Holdings Japan*		1,700		37
Medipal Holdings		3,500		60
MEIJI Holdings		3,000		248
Minebea		8,000		69
Miraca Holdings		1,300		57

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Mitsubishi		71,760	$	1,203
Mitsubishi Chemical Holdings		33,000		211
Mitsubishi Electric		49,000		519
Mitsubishi Estate		86,000		1,798
Mitsubishi Gas Chemical		8,000		41
Mitsubishi Heavy Industries		253,000		1,110
Mitsubishi Logistics		44,000		583
Mitsubishi Materials		26,000		82
Mitsubishi Motors		15,200		130
Mitsubishi Tanabe Pharma		5,200		90
Mitsubishi UFJ Financial Group		469,600		2,936
Mitsubishi UFJ Lease & Finance		12,400		64
Mitsui		43,100		515
Mitsui Chemicals		19,000		85
Mitsui Fudosan		24,000		607
Mitsui OSK Lines		27,000		69
Mixi		1,200		45
Mizuho Financial Group		1,507,900		3,037
MS&AD Insurance Group Holdings		80,400		2,378
Murata Manufacturing		5,000		719
Nabtesco		2,800		57
Nagoya Railroad		21,000		87
Namco Bandai Holdings		39,100		825
NEC		227,000		720
Nexon		3,000		49
NGK Insulators		7,000		158
NGK Spark Plug		4,200		112
NH Foods		22,000		434
NHK Spring		4,200		42
Nidec		5,600		407
Nikon		7,800		105
Nintendo		8,500		1,167
Nippon Building Fund‡		37		176
Nippon Electric Glass		11,000		55
Nippon Express		20,000		95
Nippon Paint Holdings		3,500		85
Nippon Prologis‡		32		58
Nippon Steel & Sumitomo Metal		18,500		369
Nippon Suisan Kaisha		93,400		526
Nippon Telegraph & Telephone		103,600		4,155
Nippon Television Holdings		11,520		210
Nippon Yusen		38,000		92
Nissan Motor		62,600		663
Nisshin Seifun Group		5,300		87
Nissin Foods Holdings		1,500		80
Nitori Holdings		1,800		151
Nitto Denko		4,000		295


Description	Shares		Value (000)
NOK		2,500	$	59
Nomura Holdings		203,200		1,140
Nomura Real Estate Holdings		2,900		54
Nomura Real Estate Master Fund‡		86		107
Nomura Research Institute		2,900		112
NSK		11,000		120
NTT Data		41,500		2,025
NTT DOCOMO		36,000		740
NTT Urban Development		43,700		420
Obayashi		211,000		1,960
Obic		1,560		83
Odakyu Electric Railway		15,000		162
Oji Holdings		21,000		85
Olympus		6,800		271
Omron		5,100		168
Ono Pharmaceutical		2,000		357
Onward Holdings		56,000		346
Oracle Japan*		1,000		47
Oriental Land		5,100		310
ORIX		33,400		474
Osaka Gas		49,000		177
Otsuka		1,200		59
Otsuka Holdings		32,500		1,163
Panasonic		55,600		569
Park24		2,200		53
Rakuten*		23,700		273
Recruit Holdings		4,000		118
Resona Holdings		374,940		1,822
Ricoh		18,400		190
Rinnai		900		80
Rohm		2,300		116
Ryohin Keikaku		600		122
Sankyo		1,100		41
Sanrio		1,200		28
Santen Pharmaceutical		8,800		145
SBI Holdings		5,100		55
Secom		21,900		1,495
Sega Sammy Holdings		4,600		43
Seibu Holdings		3,000		61
Seiko Epson		7,000		109
Sekisui Chemical		10,000		132
Sekisui House		19,700		334
Seven & i Holdings		69,700		3,209
Seven Bank		12,800		57
Shikoku Electric Power*		4,200		66
Shimadzu		6,000		101
Shimamura		500		59

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Shimano		2,000	$	308
Shimizu		71,000		581
Shin-Etsu Chemical		32,200		1,765
Shinsei Bank		42,000		78
Shionogi		7,460		340
Shiseido		34,700		726
Shizuoka Bank		13,000		127
Showa Shell Sekiyu		4,400		36
SMC		1,400		364
SoftBank Group		24,100		1,226
Sohgo Security Services		1,700		80
Sompo Japan Nipponkoa Holdings		33,900		1,115
Sony		31,700		786
Sony Financial Holdings		3,900		70
Stanley Electric		3,400		75
Sumitomo		28,600		294
Sumitomo Chemical		385,200		2,232
Sumitomo Dainippon Pharma		69,400		821
Sumitomo Electric Industries		55,800		797
Sumitomo Forestry		19,800		268
Sumitomo Heavy Industries		13,000		59
Sumitomo Metal Mining		12,000		145
Sumitomo Mitsui Financial Group		81,200		3,093
Sumitomo Mitsui Trust Holdings		82,000		313
Sumitomo Realty & Development		9,000		258
Sumitomo Rubber Industries		4,200		55
Suntory Beverage & Food		4,000		175
Suruga Bank		4,900		102
Suzuken		1,800		69
Suzuki Motor		9,300		285
Sysmex		3,620		235
T&D Holdings		14,100		188
Taiheiyo Cement		28,000		82
Taisei		26,000		173
Taisho Pharmaceutical Holdings		700		49
Taiyo Nippon Sanso		4,000		36
Takashimaya		7,000		63
Takeda Pharmaceutical		19,800		995
TDK		3,000		194
Teijin		21,000		72
Terumo		141,300		4,426
THK		2,800		52
Tobu Railway		24,000		118
Toho		2,800		78
Toho Gas		10,000		65
Tohoku Electric Power		82,900		1,044
Tokio Marine Holdings		17,200		670


Description	Shares			Value (000)
Tokyo Electric Power*		35,200		$	204
Tokyo Electron		16,900			1,023
Tokyo Gas		56,000			265
Tokyo Tatemono		5,000			55
Tokyu		29,000			231
Tokyu Fudosan Holdings		12,100			76
TonenGeneral Sekiyu		7,000			59
Toppan Printing		14,000			130
Toray Industries		36,000			337
Toshiba*		103,000			214
TOTO		3,500			124
Toyo Seikan Group Holdings		65,400			1,216
Toyo Suisan Kaisha		22,200			778
Toyoda Gosei		1,700			39
Toyota Industries		10,800			582
Toyota Motor		109,820			6,794
Toyota Tsusho		5,000			117
Trend Micro*		2,500			102
Unicharm		9,700			199
United Urban Investment‡		62			84
USS		5,100			77
West Japan Railway		29,100	��		2,025
Yahoo Japan		33,600			138
Yakult Honsha		2,100			103
Yamada Denki		98,900			430
Yamaguchi Financial Group		5,000			59
Yamaha		4,100			99
Yamaha Motor		6,200			141
Yamato Holdings		58,020			1,237
Yamazaki Baking		3,000			68
Yaskawa Electric		6,400			88
Yokogawa Electric		5,000			61
Yokohama Rubber		2,500			38

					170,311

Luxembourg — 0.1%
Altice, Cl B*		12,140			176
ArcelorMittal*		64,943			271
Millicom International Cellular		6,561			378
O’Key Group GDR		76,540			153
RTL Group		1,045			87
SES ADR		8,286			230
Tenaris		11,160			134
Ternium ADR		8,233			102

					1,531

Macau — 0.0%
Sands China		62,800			215

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Malaysia — 0.7%
AirAsia		488,000	$	146
Allianz Malaysia		9,000		22
Brem Holding		205,400		45
Carlsberg Brewery Malaysia		16,800		46
Evergreen Fibreboard*		890,000		489
Guinness Anchor		10,000		31
HeveaBoard		137,300		52
Hong Leong Industries		19,400		27
Hua Yang		51,600		22
Insas		330,800		59
JCY International		2,984,400		594
K&N Kenanga Holdings		85,500		11
KKB Engineering		89,900		34
Kossan Rubber Industries		58,100		126
KSL Holdings		551,500		171
Kulim Malaysia		81,600		72
Land & General		603,500		53
LBS Bina Group		46,900		16
Malaysia Building Society		292,000		96
Malaysia Marine and Heavy Engineering Holdings*		66,700		16
Malaysian Pacific Industries		43,300		94
MISC		169,600		370
MMC		64,500		29
Muda Holdings		27,100		14
Muhibbah Engineering		108,600		56
Petronas Dagangan		225,100		1,304
Scientex		21,600		49
Sunway		345,800		248
Sunway Construction Group*		500,580		163
TA Enterprise		139,600		19
Teo Seng Capital		117,000		41
Top Glove		351,700		1,113
Tropicana		1,047		—
UEM Edgenta		42,200		33
Unisem		1,138,600		632
VS Industry		1,579,200		577
WTK Holdings		144,300		44
YTL Power International		801,205		276

				7,190

Mexico — 1.0%
Alpek, Cl A		267,123		375
America Movil, Cl L ADR		14,509		204
Axtel*		163,891		83
Controladora Comercial Mexicana		28,448		78


Description	Shares		Value (000)
Controladora Vuela Cia de Aviacion ADR*		107,125	$	593
Gruma, Cl B		54,588		766
Grupo Aeromexico*		276,892		632
Grupo Aeroportuario del Pacifico, Cl B		146,210		1,750
Grupo Comercial Chedraui		126,189		336
Grupo Financiero Banorte, Cl O		22,436		124
Grupo Financiero Inbursa, Cl O		993,259		1,792
Grupo Financiero Interacciones, Cl O		162,422		985
Industrias Bachoco ADR		267		13
Megacable Holdings		32,034		119
OHL Mexico*		805,976		844
Vitro		41,639		130
Wal-Mart de Mexico		639,345		1,614

				10,438

Netherlands — 3.6%
Aegon		45,151		257
AerCap Holdings*		2,164		93
Airbus Group		28,080		1,892
Akzo Nobel		83,073		5,567
ASML Holding		11,279		986
Boskalis Westminster		21,275		860
Gemalto		1,954		117
Heineken		43,610		3,704
Heineken Holding		2,468		191
ING Groep		451,780		6,030
James Hardie Industries		11,103		141
Koninklijke Ahold		68,444		1,449
Koninklijke DSM		4,419		222
Koninklijke KPN		284,798		1,081
Koninklijke Philips		55,405		1,412
Koninklijke Vopak		1,613		70
NN Group		5,836		207
NXP Semiconductors*		2,913		245
OCI*		1,992		49
QIAGEN*		5,209		144
Randstad Holding		71,488		4,458
Relx		24,832		415
Royal Dutch Shell, Cl A		217,405		4,944
STMicroelectronics		15,124		102
TNT Express*		12,360		105
Unilever		41,012		1,771
Wolters Kluwer		7,321		245

				36,757

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
New Zealand — 0.1%
Auckland International Airport		23,759	$	93
Contact Energy		17,331		56
Fletcher Building		16,278		82
Meridian Energy		27,065		44
Mighty River Power		15,091		29
Ryman Healthcare		10,544		61
Spark New Zealand		255,216		576

				941

Norway — 0.3%
DNB		51,861		642
Gjensidige Forsikring*		5,368		86
Norsk Hydro		33,011		123
Orkla		19,264		153
Schibsted, Cl A*		26,590		863
Statoil		60,001		840
Telenor		19,079		319
Yara International		4,480		192

				3,218

Panama — 0.0%
Avianca Holdings ADR		3,928		17

Peru — 0.3%
Cia de Minas Buenaventura ADR*		23,903		102
Credicorp		25,751		2,506

				2,608

Philippines — 0.2%
ABS-CBN Holdings		61,800		82
Cebu Air		270,790		474
Energy Development		2,761,500		362
First Gen		898,300		433
Globe Telecom		7,150		280
Lopez Holdings		1,296,700		182
Pepsi-Cola Products Philippines*		352,000		28
San Miguel		144,580		153
Vista Land & Lifescapes		567,600		62
Xurpas		129,700		42

				2,098

Poland — 0.8%
Amica Wronki		2,919		129
AmRest Holdings*		1,330		64
Asseco Poland		16,913		245
Bank Pekao		1,936		71
Budimex		1,934		96
CD Projekt Red*		15,425		87
Ciech*		8,239		180


Description	Shares		Value (000)
Enea		149,141	$	430
Eurocash		88,229		1,090
Grupa Azoty*		1,925		49
Kernel Holding		29,873		369
Orange Polska		321,323		534
PGE		378,477		1,234
Polski Koncern Naftowy Orlen		112,309		1,936
Polskie Gornictwo Naftowe i Gazownictwo		1,337,820		1,743
Trakcja*		21,426		69

				8,326

Portugal — 0.0%
Banco Comercial Portugues, Cl R*		960,017		51
Banco Espirito Santo* (B)		46,916		—
EDP-Energias de Portugal		60,164		217
Galp Energia		9,113		106
Jeronimo Martins		5,949		77

				451

Qatar — 0.3%
Barwa Real Estate		142,526		1,565
Doha Bank QSC		7,860		96
Mannai		6,490		170
Ooredoo QSC		7,657		158
Qatar Gas Transport		15,321		98
Qatar Islamic Bank SAQ		3,328		97
Qatar National Bank SAQ		4,562		220
Qatar Navigation QSC		7,158		187

				2,591

Russia — 0.3%
Gazprom PAO ADR		295,195		1,092
Globaltrans Investment GDR*		13,181		60
Lukoil PJSC ADR		7,973		259
Magnitogorsk Iron & Steel Works GDR		93,326		312
Sberbank of Russia ADR		77,747		455
Sistema GDR		33,108		195
Yandex, Cl A*		38,486		605

				2,978

Singapore — 1.0%
Ascendas‡		48,000		77
CapitaLand		61,000		143
CapitaLand Commercial Trust‡		42,000		40
CapitaLand Mall Trust‡		66,000		89
City Developments		9,000		48
ComfortDelGro		51,000		109
DBS Group Holdings		378,316		4,437

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
GL		250,000	$	154
Global Logistic Properties		83,000		126
Golden Agri-Resources		163,000		39
Great Eastern Holdings		46,600		666
Haw Par		13,900		81
Hongkong Land Holdings		14,400		101
Hutchison Port Holdings Trust, Cl U		128,000		68
Jardine Cycle & Carriage		3,333		82
Keppel		38,000		174
Oversea-Chinese Banking		77,258		478
Sembcorp Industries		21,000		45
Sembcorp Marine		17,000		21
Singapore Airlines		14,000		111
Singapore Exchange		19,000		103
Singapore Press Holdings		38,000		106
Singapore Technologies Engineering		37,000		78
Singapore Telecommunications		625,500		1,612
StarHub		15,000		39
Suntec‡		51,000		56
United Industrial		24,219		49
United Overseas Bank		45,988		634
UOL Group		11,482		50
Wilmar International		44,000		91

				9,907

South Africa — 1.5%
African Bank Investments* (B)		638,711		—
Anglo American Platinum*		1,848		22
Blue Label Telecoms		149,723		118
Brait*		187,595		2,029
Clicks Group		80,105		460
FirstRand		855,977		2,342
Grindrod		128,622		94
Investec		84,378		595
JSE		16,985		141
KAP Industrial Holdings		396,998		177
Liberty Holdings		21,367		159
MMI Holdings		60,998		87
Mpact		33,448		102
MTN Group		22,700		195
Murray & Roberts Holdings		249,229		129
Old Mutual		114,542		307
Peregrine Holdings		228,876		434
Pick n Pay Holdings		47,024		85
Pioneer Foods Group		12,769		131
Randgold Resources		2,455		150
Sanlam		93,740		366


Description	Shares		Value (000)
Sappi*		123,654	$	521
Sasol		101,350		2,759
Sibanye Gold		589,050		871
SPAR Group		9,998		119
Standard Bank Group		245,922		1,799
Steinhoff International Holdings		129,685		658
Telkom		109,811		457

				15,307

South Korea — 3.8%
Aekyung Petrochemical		513		24
Asia Paper Manufacturing		1,464		21
BGF retail		6,490		949
BNK Financial Group		13,245		95
CJ		4,611		979
CJ O Shopping		489		79
CKH Food & Health*		116,805		315
Dae Han Flour Mills		210		33
Daedong		8,015		24
Daehan Steel		5,581		40
Daesung Holdings		3,710		34
Daou Data		19,087		251
DK UIL		3,201		33
Dong-A Hwasung, Cl A		293		1
Dongbu Insurance		1,904		114
Dongwon Development		17,700		58
Dongyang E&P		10,103		121
DRB Industrial		2,883		29
GMB Korea		5,250		21
GS Home Shopping		520		74
GS Retail		22,323		1,020
Hana Financial Group		23,500		471
Hanil Cement		880		79
Hanil E-Hwa		4,880		63
Hanwha Life Insurance		36,927		232
Heungkuk Fire & Marine Insurance*		9,159		33
Hite Jinro		8,270		165
HwaSung Industrial		8,033		82
Hyosung		4,014		398
Hyundai Development-Engineering & Construction		2,217		73
Hyundai Hy Communications & Networks		10,918		32
Hyundai Motor		5,814		734
Hyundai Securities		11,899		65
KB Financial Group		13,590		384
Kia Motors		63,165		2,821
KISCO		1,295		44

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Kolon Global*		2,793	$	34
Korea District Heating		905		44
Korea Electric Power		74,698		3,180
Korea Petrochemical Industries		6,015		872
KT*		17,765		428
KT Skylife		9,103		134
Kunsul Chemical Industrial		920		31
Kwangju Bank*		5,257		34
Kyungchang Industrial		16,273		82
LG		3,266		196
LG Chemical		1,649		457
LG Display ADR		177,864		1,858
LG Innotek		9,391		782
LG Uplus		73,358		649
Lotte Chemical		7,875		1,621
Lotte Shopping		3,214		633
Mcnex		1,654		44
Mobase		5,272		36
Moorim Paper*		35,210		92
RedcapTour		1,671		33
S&T Motiv		1,240		90
S-1, Cl 1		3,798		322
Saeron Automotive		4,310		31
Sam Young Electronics		8,260		89
Samsung Electronics		9,874		10,560
Samyang Genex (B)		366		66
SeAH Holdings		225		25
Sejong Industrial		3,340		29
Seoyon		3,086		33
Sewon Precision Industry		657		12
Shindaeyang Paper		1,116		24
Shinhan Financial Group		29,240		986
SK Hynix		100,698		2,611
SK Innovation*		6,937		764
SL		3,748		55
S-Oil		15,035		1,013
Ssangyong Cement Industrial*		14,360		200
Tongyang Life Insurance		19,392		192
Woori Bank		106,196		799
YES24		4,530		35

				39,167

Spain — 1.4%
Abertis Infraestructuras		13,349		209
Acerinox		46,340		474
ACS Actividades de Construccion y Servicios		4,568		134


Description	Shares		Value (000)
Aena* (A)		1,756	$	201
Amadeus IT Holding, Cl A		80,672		3,564
Banco Bilbao Vizcaya Argentaria		159,684		1,168
Banco de Sabadell		127,642		226
Banco Popular Espanol		40,606		134
Banco Santander		377,073		1,859
Bankia		121,058		141
Bankinter		15,932		113
CaixaBank		63,897		224
Distribuidora Internacional de Alimentacion*		14,617		86
Enagas		5,120		145
Endesa		8,289		167
Ferrovial		11,220		253
Gas Natural SDG		9,139		186
Grifols*		3,901		180
Iberdrola		135,205		960
Industria de Diseno Textil		27,374		936
International Consolidated Airlines Group		21,229		191
Mapfre		26,348		66
Mediaset Espana Comunicacion		36,559		398
Red Electrica		2,636		220
Repsol		25,799		283
Telefonica		112,885		1,246
Viscofan		14,176		856
Zardoya Otis		4,333		51

				14,671

Sweden — 1.7%
Alfa Laval		6,939		127
Assa Abloy, Cl B		139,182		2,915
Atlas Copco, Cl A		26,420		635
Boliden		6,464		109
Electrolux		5,878		142
Getinge, Cl B		4,730		124
Hennes & Mauritz, Cl B		115,168		4,092
Hexagon, Cl B		6,215		231
Husqvarna, Cl B		9,796		65
ICA Gruppen		2,024		73
Industrivarden, Cl C		3,879		66
Investment Kinnevik, Cl B		6,152		190
Investor, Cl B		11,521		425
Lundin Petroleum*		5,146		75
Modern Times Group, Cl B		13,205		338
Nordea Bank		116,166		1,279
Oriflame Holding*		1,600		26
Sandvik		60,912		531

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Securitas, Cl B		8,219	$	126
Skandinaviska Enskilda Banken, Cl A		37,006		390
Skanska, Cl B		9,887		192
SKF, Cl B		9,615		156
Svenska Cellulosa, Cl B		14,905		433
Svenska Handelsbanken, Cl A		153,556		2,040
Swedbank, Cl A		22,865		504
Swedish Match		14,545		515
Tele2, Cl B		7,309		73
Telefonaktiebolaget LM Ericsson, Cl B		148,179		1,432
TeliaSonera		63,754		317
Volvo, Cl B		39,053		363

				17,984

Switzerland — 6.9%
ABB		60,415		1,082
Actelion		2,607		362
Adecco		19,340		1,317
Aryzta		2,039		104
Baloise Holding		1,182		150
Barry Callebaut*		56		61
Chocoladefabriken Lindt & Sprungli		26		367
Cie Financiere Richemont		31,959		2,303
Coca-Cola		4,736		101
Credit Suisse Group		45,073		971
Dufry*		966		116
EMS-Chemie Holding		189		83
Galenica		95		149
Geberit		6,384		2,166
Givaudan		234		425
Helvetia Holding		233		132
Julius Baer Group		5,579		271
Kuehne + Nagel International		9,671		1,329
LafargeHolcim		6,197		310
Logitech International		38,394		589
Lonza Group		1,289		210
Nestle		203,701		15,145
Novartis		137,036		11,778
Pargesa Holding		788		50
Partners Group Holding		379		137
Roche Holding		53,554		14,758
Schindler Holding		1,581		266
SGS		140		267
Sika		56		202
Sonova Holding		15,628		1,986
Sulzer		599		56
Swatch Group		1,988		355


Description	Shares			Value (000)
Swiss Life Holding		836		$	226
Swiss Prime Site		1,636			128
Swiss Re		8,847			867
Swisscom		659			330
Syngenta		2,335			924
Transocean*		8,866			110
UBS Group*		475,755			9,272
Zurich Insurance Group		3,774			972

					70,427

Taiwan — 2.4%
AU Optronics ADR		725,037			2,110
ChipMOS TECHNOLOGIES		13,900			275
Chroma ATE		69,000			134
Chunghwa Telecom ADR		53,841			1,617
Delta Electronics		90,516			427
Hon Hai Precision Industry GDR		619,692			1,867
Siliconware Precision Industries ADR		156,658			1,214
Taiwan Semiconductor Manufacturing		891,519			16,047
Teco Electric and Machinery		540,387			432
Yungtay Engineering		360,000			520

					24,643

Thailand — 1.3%
Advanced Information Technology		233,000			181
Amata		259,300			88
AP Thailand		1,321,800	��		195
Bangchak Petroleum		260,200			238
Bangkok Bank		200,700			852
Bangkok Expressway (B)		185,800			233
Cal-Comp Electronics Thailand		1,336,719			125
Delta Electronics Thailand		278,100			590
Dhipaya Insurance		16,800			17
GFPT		1,194,100			327
Hana Microelectronics		615,200			608
Indorama Ventures		724,600			427
IRPC		1,259,900			150
Kasikornbank PLC		46,400			192
KCE Electronics		582,400			1,125
KGI Securities Thailand		902,000			86
Krung Thai Bank		513,200			237
Krungthai Card		72,000			195
Lalin Property		282,000			29
MFEC		216,800			30
MK Real Estate Development		283,600			34
PTG Energy		196,400			71

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
PTT		343,100	$	2,316
PTT Global Chemical		1,451,100		2,005
Raimon Land*		3,087,200		107
Regional Container Lines		164,800		24
SC Asset		371,588		29
Siam Cement		13,500		172
Siamgas & Petrochemicals		624,900		180
SNC Former		76,300		29
Sri Trang Agro-Industry		106,400		30
Srithai Superware		442,500		27
SVI*		862,800		118
Syntec Construction		2,491,000		197
Thai Airways International*		292,100		74
Thai Vegetable Oil		176,300		110
Thanachart Capital		71,700		73
Tipco Asphalt		1,445,500		1,635
Tisco Financial Group		77,900		92
TMB Bank		1,793,500		120
Vanachai Group		221,100		88

				13,456

Turkey — 1.1%
Adana Cimento Sanayii, Cl A		51,928		110
Akcansa Cimento		36,973		167
Akfen Gayrimenkul Yatirim Ortakligi‡ *		58,474		27
Albaraka Turk Katilim Bankasi		44,267		20
Alcatel-Lucent Teletas Telekomunikasyon*		176,119		386
Anadolu Anonim Turk Sigorta Sirketi		148,517		81
Baticim Bati Anadolu Cimento Sanayii		23,088		48
BIM Birlesik Magazalar		36,963		651
Celebi Hava Servisi		16,773		205
Cimsa Cimento Sanayi ve Ticaret		95,842		503
EGE Endustri VE Ticaret		1,141		123
EGE Seramik Sanayi ve Ticaret		22,722		31
GSD Holdings		389,164		139
Haci Omer Sabanci Holding		474,835		1,348
Selcuk Ecza Deposu Ticaret ve Sanayi A.S.		85,387		70
Soda Sanayii		476,472		692
Tat Gida Sanayi*		167,107		318
TAV Havalimanlari Holding		31,391		196
Torunlar Gayrimenkul Yatirim Ortakligi‡		95,613		106
Tupras Turkiye Petrol Rafinerileri*		35,065		837
Turk Hava Yollari*		571,867		1,451
Turkiye Garanti Bankasi		437,669		1,069


Description	Shares		Value (000)
Turkiye Halk Bankasi		244,795	$	872
Turkiye Is Bankasi, Cl C		919,209		1,451
Turkiye Sise ve Cam Fabrikalari		127,402		140
Vestel Beyaz Esya Sanayi ve Ticaret		112,100		432

				11,473

United Arab Emirates — 0.1%
Aldar Properties PJSC		735,867		465
National Central Cooling PJSC		111,276		36
Union National Bank PJSC		43,378		55

				556

United Kingdom — 15.9%
3i Group		159,642		1,132
Aberdeen Asset Management		22,029		94
Admiral Group		41,026		1,004
Aggreko		6,088		82
Amec Foster Wheeler		40,319		255
Anglo American		37,227		166
Anglo American PLC		34,379		153
Antofagasta		15,576		108
ARM Holdings		34,466		528
Ashtead Group		13,104		217
Associated British Foods		9,001		443
AstraZeneca		31,605		2,155
Auto Trader Group (A)		18,289		120
Aviva		101,692		773
Babcock International Group		5,934		89
BAE Systems		244,146		1,798
Barclays PLC		1,622,981		5,251
Barratt Developments		54,113		498
Berendsen		25,269		402
Betfair Group		23,342		1,341
BG Group PLC		214,739		3,116
BGEO Group		8,367		235
BHP Billiton		89,641		1,011
BP		794,377		4,169
British American Tobacco		48,455		2,698
British Land‡		24,766		287
BT Group, Cl A		209,561		1,457
Bunzl		76,773		2,130
Burberry Group		11,507		203
Cable & Wireless Communications		604,776		663
Capita		133,264		2,376
Carnival		22,973		1,308
Centrica		150,389		484
Close Brothers Group		6,431		127
Cobham		26,908		113

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Compass Group PLC		672,106	$	11,650
Croda International		3,240		145
Daily Mail & General Trust, Cl A		73,176		755
Delphi Automotive PLC		20,247		1,736
Devro		85,241		365
Diageo PLC		275,773		7,559
Direct Line Insurance Group		35,747		215
Dixons Carphone		23,131		171
easyJet		3,671		94
Fresnillo		5,948		62
G4S		327,761		1,091
GKN		44,117		201
GlaxoSmithKline		127,482		2,582
Glencore*		552,522		738
GVC Holdings*		16,667		114
Hammerson‡		20,428		181
Hargreaves Lansdown		6,485		144
Hays PLC		309,533		665
HomeServe		127,368		774
HSBC Holdings		123,571		982
HSBC Holdings PLC		1,070,021		8,477
ICAP		132,994		1,000
IG Group Holdings		62,125		735
IMI		12,780		162
Imperial Tobacco Group PLC		23,980		1,269
Inchcape		26,993		313
Informa PLC		56,981		516
Inmarsat		11,730		197
InterContinental Hotels Group		5,721		224
International Personal Finance		120,803		514
Intertek Group		53,140		2,180
Intu Properties‡		22,401		105
Investec		13,144		93
ITV		571,810		2,333
J Sainsbury		32,261		123
Johnson Matthey		4,959		195
Jupiter Fund Management		61,016		406
Just Eat*		62,742		457
Kingfisher		55,756		271
Land Securities Group‡		19,236		334
Legal & General Group		149,783		592
Lloyds Banking Group		2,882,172		3,114
London Stock Exchange Group		7,975		323
Lukoil PJSC ADR		61		2
Marks & Spencer Group		41,820		280
Meggitt		19,043		105
Melrose Industries		22,666		97


Description	Shares		Value (000)
Merlin Entertainments (A)		231,693	$	1,556
Michael Page International		23,165		165
Millennium & Copthorne Hotels		14,685		101
Mondi		8,946		176
Moneysupermarket.com Group		143,511		776
National Express Group		33,124		163
National Grid		93,793		1,298
Next		3,674		395
Non-Standard Finance* (A)		54,324		68
Northgate		17,597		102
Old Mutual		124,887		329
Pearson		19,850		215
Persimmon		7,920		237
Petrofac		14,876		175
Pets at Home Group		112,755		458
Provident Financial		39,689		1,970
Prudential PLC		169,352		3,826
Reckitt Benckiser Group PLC		107,577		9,972
RELX		108,276		1,913
Rexam		105,105		936
Rightmove		45,512		2,771
Rio Tinto PLC		112,218		3,273
Rolls-Royce Holdings PLC		335,973		2,846
Royal Bank of Scotland Group*		87,915		392
Royal Mail		23,295		153
RSA Insurance Group		26,596		167
SABMiller		24,306		1,463
Sage Group		26,157		232
Schroders		2,938		129
Segro‡		19,796		125
Serco Group PLC*		482,782		674
Severn Trent		6,180		198
Shire		14,852		1,027
Sky PLC		315,907		5,178
Smith & Nephew		34,462		616
Smiths Group PLC		169,319		2,348
South32*		48,396		37
Spectris		20,909		558
Sports Direct International*		6,310		54
SSE		25,050		564
SSP Group		184,132		882
St. James’s Place		23,926		356
Stagecoach Group		136,213		595
Standard Chartered PLC		267,832		2,226
Standard Life		50,106		288
Tate & Lyle		11,158		99
Taylor Wimpey		84,018		250

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund


Description	Shares		Value (000)
Tesco*		375,287	$	827
Thomas Cook Group*		382,138		683
Travis Perkins		6,470		188
Unilever		76,899		3,317
United Utilities Group		16,506		228
Vodafone Group PLC		843,160		2,748
Weir Group		4,852		72
WH Smith		30,326		791
Whitbread		4,640		301
William Hill		21,019		123
WM Morrison Supermarkets		52,426		115
Wolseley		6,578		357
WPP PLC		431,202		9,952

				163,661

United States — 0.5%
Consumer Discretionary — 0.4%
Yum! Brands		56,263		4,110

Consumer Staples — 0.0%
Gruma, Cl B		27,136		380

Energy — 0.1%
Tsakos Energy Navigation		82,699		655

Information Technology — 0.0%
Genpact*		7,483		187

				5,332

Total Common Stock (Cost $1,041,910) (000)				978,901

PREFERRED STOCK — 0.6%
Alpargatas		210,898		380
Banco Bradesco		8,280		40
Banco do Estado do Rio Grande do Sul		103,300		153
Bayerische Motoren Werke		1,288		108
Centrais Eletricas Brasileiras*		43,300		114
Cia Brasileira de Distribuicao		11,776		125
Cia Energetica de Minas Gerais		267,700		414
Cia Paranaense de Energia		61,000		374
CJ		1,220		136
Eletropaulo Metropolitana Eletricidade de Sao Paulo, Cl B*		72,300		154
Embotelladora Andina		14,922		44
FUCHS PETROLUB		1,729		82
Henkel & KGaA		4,497		504
Itau Unibanco Holding		29,040		194
Porsche Automobil Holding		3,990		219
Suzano Papel e Celulose, Cl A		157,300		743
Vale		40,700		105


Description	Shares		Value (000)
Volkswagen		11,789	$	1,709

Total Preferred Stock (Cost $8,960) (000)				5,598

PARTICIPATION NOTES — 0.1%
HSBC Bank (Axis Bank), Expires 7/21/2017*		28,143		191
HSBC Bank (Bank of Baroda), Expires 6/30/2016*		96,782		229
HSBC Bank (Bharti Airtel), Expires 8/1/2016*		69,004		356
HSBC Bank (CESC), Expires 3/31/2017*		56,964		442

Total Participation Notes (Cost $1,308) (000)				1,218

WARRANTS — 0.0%

	Number of Warrants
VS Industry, Expires 1/3/2019, Strike Price 1.65 MYR*		394,800		—

Total Warrants (Cost $–) (000)				—

RIGHTS — 0.0%

	Number of Rights
Ascendas Real Estate Investment Trust, Expires 1/17/2016, Strike Price 2.218 SGD*		1,800		—
Banco Bradesco, Expires 5/2/2016, Strike Price 17.21 BRL*		271		—
BNK Financial Group, Expires 1/19/2016, Strike Price 7,570 KRW*		2,898		2
Non-Standard Finance, Expires 1/17/2016, Strike Price 0.85 GBP*		97,124		—
Repsol*†		25,799		13
UBI Banca, Expires 1/12/16*		22,043		—

Total Rights (Cost $–) (000)				15

SHORT-TERM INVESTMENT (C) — 3.1%

	Shares
State Street Institutional Liquid Reserves Fund, Institutional Class, 0.000%		32,065,951		32,066
Total Short-Term Investment (Cost $32,066) (000)				32,066

Total Investments — 99.1% (Cost $1,084,244) (000)			$	1,017,798

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP International Equity Fund

Percentages are based on net assets of $1,026,913 (000).

A list of the open futures contracts held by the Fund at December 31, 2015 is as follow s (000):

Type of Contract

Number of
Contracts
Long

Expiration

Date

Unrealized
Appreciation

E-MINI MSCI Future

342

Mar-2016

For the year ended December 31, 2015, the monthly average value of futures contracts held was $10,337 (000).

*	Non-income producing security.

‡	Real Estate Investment Trust

†	Expiration date is unavailable.

(A)

(B)

(C)

The rate reported is the 7-day effective yield as of December 31, 2015.

ADR

— American Depositary Receipt

BRL

— Brazilian Lira

Cl —

Class

GBP

— British Pound

GDR

— Global Depositary Receipt

KRW

— Korean Won

MSCI

— Morgan Stanley Capital International

MYR

— Malaysian Ringgit

PLC

— Public Limited Company

SGD

— Singapore Dollar

The following is a list of the level of inputs used as of December 31, 2015, there in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock
Australia	$	354	$	26,213	$	—	$	26,567
Austria		—		1,651		—		1,651
Belgium		—		8,091		—		8,091
Brazil		15,083		—		—		15,083
Canada		12,686		—		—		12,686
Chile		1,844		—		—		1,844
China		8,084		18,931		—		27,015
Colombia		630		—		—		630
Cyprus		—		243		—		243
Czech Republic		—		159		—		159
Denmark		—		18,710		—		18,710
Finland		—		7,922		—		7,922
France		392		71,525		—		71,917
Germany		1,661		64,810		—		66,471
Greece		271		973		—		1,244
Hong Kong		1,150		42,466		—		43,616
Hungary		—		220		—		220
India		7,267		—		—		7,267
Indonesia		—		6,850		—		6,850
Ireland		4,306		2,787		—		7,093
Israel		2,126		1,973		—		4,099
Italy		—		13,269		—		13,269
Japan		1,802		168,509		—		170,311


Investments in Securities	Level 1		Level 2		Level 3^		Total
Luxembourg	$	278	$	1,253	$	—	$	1,531
Macau		—		215		—		215
Malaysia		1,071		6,119		—		7,190
Mexico		10,438		—		—		10,438
Netherlands		1,021		35,736		—		36,757
New Zealand		—		941		—		941
Norway		425		2,793		—		3,218
Panama		17		—		—		17
Peru		2,608		—		—		2,608
Philippines		42		2,056		—		2,098
Poland		69		8,257		—		8,326
Portugal		—		451		—		451
Qatar		2,591		—		—		2,591
Russia		944		2,034		—		2,978
Singapore		154		9,753		—		9,907
South Africa		836		14,471		—		15,307
South Korea		4,128		34,973		66		39,167
Spain		201		14,470		—		14,671
Sweden		26		17,958		—		17,984
Switzerland		11,258		59,169		—		70,427
Taiwan		20,266		4,377		—		24,643
Thailand		71		13,152		233		13,456
Turkey		166		11,307		—		11,473
United Arab Emirates		520		36		—		556
United Kingdom		3,857		159,804		—		163,661
United States		5,332		—		—		5,332

Total Common Stock		123,975		854,627		299		978,901

Preferred Stock		2,796		2,802		—		5,598
Participation Notes		—		1,218		—		1,218
Warrants		—		—		—		—
Rights		—		15		—		15
Short-Term Investment		32,066		—		—		32,066

Total Investments in Securities	$	158,837	$	858,662	$	299	$	1,017,798


Other Financial Instruments	Level 1		Level 2		Level 3		To tal
Futures Contracts**
Unrealized Appreciation	$	48	$	—	$	—	$	48

Total Other Financial Instruments	$	48	$	—	$	—	$	48

**	Futures contracts are valued at the unrealized appreciation on the instrument.

^{^}

A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments in at the beginning and/or end of the year in relation to net assets. Management has concluded that Level 3 investments are not material in relation to net assets.

For the year ended December 31, 2015, there were transfers between Level 1 and Level 2 assets and liabilities. Changes in the classifications between Levels 1 and 2 occur when foreign equity securities are fair valued using other observable market based inputs in place of the closing exchange price due to events occurring after the close of the exchange or market on which the investment is principally traded. Transfers, if any, between levels are considered to have occurred as of the end of the year. For the year ended December 31, 2015, securities with a total value of $299 (000) were transferred from Level 1 to Level 3 due to a halt in trading of these securities.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Face Amount (000)		Value (000)
CORPORATE OBLIGATIONS — 29.4%
Consumer Discretionary — 2.7%
21st Century Fox America
4.750%, 09/15/44	$	666	$	640
4.500%, 02/15/21		100		108
3.700%, 09/15/24 (A)		120		121
Amazon.com 1.200%, 11/29/17		200		199
American Honda Finance
1.200%, 07/14/17		100		100
0.950%, 05/05/17		100		99
Atento Luxco 7.375%, 01/29/20 (A)		220		203
AutoZone 2.500%, 04/15/21		100		98
Avianca Holdings 8.375%, 05/10/20 (A)		530		343
Bed Bath & Beyond 3.749%, 08/01/24		25		24
CBS 3.375%, 03/01/22		150		148
Cleveland Clinic Foundation 4.858%, 01/01/14		453		439
Comcast
6.500%, 01/15/17		250		263
4.200%, 08/15/34		1,460		1,446
3.375%, 02/15/25		275		278
Delphi 4.150%, 03/15/24		40		40
Diageo Capital 5.750%, 10/23/17		200		215
DIRECTV Holdings
5.150%, 03/15/42		191		178
5.000%, 03/01/21		200		216
4.450%, 04/01/24		100		103


Description	Face Amount (000)⁽¹⁾		Value (000)
Discovery Communications 5.050%, 06/01/20		100	$	106
Dollar General 4.150%, 11/01/25		25		25
ERAC USA Finance 2.350%, 10/15/19 (A)		1,682		1,658
Ford Motor Credit
3.200%, 01/15/21		1,081		1,074
3.000%, 06/12/17		200		202
2.375%, 03/12/19		400		394
2.240%, 06/15/18		200		198
1.684%, 09/08/17		200		197
1.461%, 03/27/17		2,146		2,126
Gap 5.950%, 04/12/21		100		106
General Motors
6.250%, 10/02/43		541		572
3.500%, 10/02/18		200		202
2.625%, 07/10/17		1,175		1,178
General Motors Financial
4.000%, 01/15/25		100		95
3.150%, 01/15/20		150		149
3.100%, 01/15/19		1,266		1,264
Grupo Televisa
7.250%, 05/14/43	(MXN)	2,840		137
6.125%, 01/31/46		230		229
Home Depot
4.400%, 04/01/21		100		110
2.000%, 06/15/19		100		101
Johnson Controls
4.625%, 07/02/44		711		603
3.625%, 07/02/24		43		41
Kohl’s 4.000%, 11/01/21		100		103
Latam Airlines Pass-Through Trust 4.200%, 11/15/27 (A)		460		431
Lowe’s 4.625%, 04/15/20		100		108
Macy’s Retail Holdings 3.625%, 06/01/24		100		92
Magna International 3.625%, 06/15/24		50		49
Marriott International 3.125%, 10/15/21		100		100
Mattel 2.350%, 05/06/19		100		99
McDonald’s
5.350%, 03/01/18		100		107
4.875%, 12/09/45		628		632
3.700%, 01/30/26		1,140		1,139
3.375%, 05/26/25		100		98
2.750%, 12/09/20		443		443
NBCUniversal Media 4.375%, 04/01/21		100		109

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Newell Rubbermaid 4.000%, 12/01/24	$	50	$	46
Omnicom Group 4.450%, 08/15/20		100		107
QVC 4.450%, 02/15/25		65		60
Scripps Networks Interactive 2.750%, 11/15/19		100		98
Staples 2.750%, 01/12/18		100		99
Target 2.900%, 01/15/22		200		204
Time Warner
4.875%, 03/15/20		100		108
4.850%, 07/15/45		552		526
4.750%, 03/29/21		100		108
3.600%, 07/15/25		913		889
2.100%, 06/01/19		100		99
Time Warner Cable
8.250%, 04/01/19		200		230
7.300%, 07/01/38		208		225
4.000%, 09/01/21		100		101
TJX 2.750%, 06/15/21		100		102
Toyota Motor Credit
2.750%, 05/17/21		100		101
2.150%, 03/12/20		300		300
2.100%, 01/17/19		200		200
1.550%, 07/13/18		100		100
1.450%, 01/12/18		1,194		1,192
Viacom
4.250%, 09/01/23		100		97
2.200%, 04/01/19		100		98
Walt Disney
3.150%, 09/17/25		100		101
2.550%, 02/15/22		100		101
1.850%, 05/30/19		150		150
Whirlpool 4.000%, 03/01/24		60		61
Wyndham Worldwide 4.250%, 03/01/22		50		50

				25,091

Consumer Staples — 1.4%
Altria Group 9.250%, 08/06/19		200		245
Anheuser-Busch InBev Finance
2.150%, 02/01/19		200		199
1.250%, 01/17/18		100		99
Anheuser-Busch InBev Worldwide
7.750%, 01/15/19		100		115
5.375%, 01/15/20		100		111
2.500%, 07/15/22		100		96
Beam Suntory 1.875%, 05/15/17		100		100


Description	Face Amount (000)		Value (000)
Bunge Finance 3.200%, 06/15/17	$	100	$	101
Clorox 3.500%, 12/15/24		50		50
Coca-Cola
3.300%, 09/01/21		100		105
3.200%, 11/01/23		100		103
2.875%, 10/27/25		50		49
2.450%, 11/01/20		50		51
1.875%, 10/27/20		50		50
Coca-Cola Femsa 2.375%, 11/26/18		150		150
Colgate-Palmolive 1.750%, 03/15/19		100		100
ConAgra Foods 1.900%, 01/25/18		100		99
Costco Wholesale 1.700%, 12/15/19		100		99
CVS Health
5.750%, 06/01/17		100		106
5.125%, 07/20/45		300		316
4.875%, 07/20/35		662		683
4.000%, 12/05/23		150		156
3.875%, 07/20/25		120		122
3.375%, 08/12/24		100		99
2.250%, 12/05/18		150		151
Dr Pepper Snapple Group 3.400%, 11/15/25		150		147
General Mills 5.650%, 02/15/19		100		110
JM Smucker 2.500%, 03/15/20		100		99
Kellogg 4.000%, 12/15/20		100		105
Kimberly-Clark 1.900%, 05/22/19		150		149
Kraft Foods Group
6.875%, 01/26/39		175		208
3.500%, 06/06/22		125		126
Kraft Heinz Foods
5.000%, 07/15/35 (A)		389		399
3.950%, 07/15/25 (A)		150		151
2.800%, 07/02/20 (A)		150		150
1.600%, 06/30/17 (A)		1,265		1,261
Kroger
6.400%, 08/15/17		100		107
3.300%, 01/15/21		100		102
Mead Johnson Nutrition 3.000%, 11/15/20		30		30
Mondelez International 4.000%, 02/01/24		100		103
PepsiCo
7.900%, 11/01/18		200		234
3.600%, 03/01/24		100		105
2.150%, 10/14/20		150		149
1.250%, 04/30/18		100		100

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Philip Morris International
5.650%, 05/16/18	$	250	$	273
4.500%, 03/26/20		100		109
Procter & Gamble
3.100%, 08/15/23		100		104
1.900%, 11/01/19		100		101
Reynolds American
8.125%, 06/23/19		100		118
5.700%, 08/15/35		996		1,091
4.450%, 06/12/25		150		157
2.300%, 08/21/17		1,813		1,825
Sysco 2.600%, 10/01/20		50		50
Tyson Foods 4.500%, 06/15/22		150		160
Unilever Capital 2.200%, 03/06/19		100		102
USJ Acucar e Alcool 9.875%, 11/09/19 (A)		340		131
Walgreens Boots Alliance
4.800%, 11/18/44		529		478
3.300%, 11/18/21		100		98
2.700%, 11/18/19		100		100
Wal-Mart Stores
4.250%, 04/15/21		125		138
3.300%, 04/22/24		50		51
1.125%, 04/11/18		200		199

				12,675

Energy — 3.8%
Anadarko Petroleum
6.375%, 09/15/17		200		210
4.500%, 07/15/44		440		337
Apache 3.250%, 04/15/22		100		95
Baker Hughes 7.500%, 11/15/18		150		169
Boardwalk Pipelines 4.950%, 12/15/24		50		43
BP Capital Markets
3.535%, 11/04/24		250		243
3.062%, 03/17/22		100		98
2.750%, 05/10/23		100		94
2.315%, 02/13/20		125		123
2.237%, 05/10/19		100		100
Cameron International 1.400%, 06/15/17		50		49
Canadian Natural Resources
6.750%, 02/01/39		91		86
5.700%, 05/15/17		100		102
Cenovus Energy
5.700%, 10/15/19		125		131
3.000%, 08/15/22		1,926		1,708
Chevron
3.326%, 11/17/25		150		151
2.419%, 11/17/20		791		787


Description	Face Amount (000)		Value (000)
2.355%, 12/05/22	$	150	$	143
2.193%, 11/15/19		90		90
1.961%, 03/03/20		150		148
1.718%, 06/24/18		100		99
Chevron Phillips Chemical 1.700%, 05/01/18 (A)		837		827
CNOOC Curtis Funding No. 1 4.500%, 10/03/23 (A)		950		981
CNOOC Finance 2015 Australia Property 2.625%, 05/05/20		200		196
CNOOC Finance 2015 USA 3.500%, 05/05/25		200		190
Columbia Pipeline Group 2.450%, 06/01/18 (A)		100		98
ConocoPhillips
6.000%, 01/15/20		100		111
5.750%, 02/01/19		200		217
4.150%, 11/15/34		187		162
3.350%, 11/15/24		100		91
Continental Resources 5.000%, 09/15/22		100		74
Devon Energy
5.000%, 06/15/45		377		286
3.250%, 05/15/22		816		693
2.250%, 12/15/18		150		137
Ecopetrol 5.875%, 09/18/23		100		92
Enable Midstream Partners 2.400%, 05/15/19		50		44
Enbridge 5.600%, 04/01/17		100		103
Enbridge Energy Partners 5.875%, 12/15/16		150		147
Encana 6.625%, 08/15/37		528		427
Energy Transfer Partners
3.600%, 02/01/23		100		82
2.500%, 06/15/18		150		144
Ensco 4.700%, 03/15/21		100		81
Enterprise Products Operating
5.100%, 02/15/45		277		232
4.900%, 05/15/46		290		237
3.350%, 03/15/23		100		90
2.550%, 10/15/19		200		192
EOG Resources
3.150%, 04/01/25		100		94
2.625%, 03/15/23		100		95
Exxon Mobil
2.709%, 03/06/25		150		147
1.819%, 03/15/19		150		150
Fermaca Enterprises 6.375%, 03/30/38 (A)		196		183

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Halliburton
3.500%, 08/01/23	$	100	$	98
2.700%, 11/15/20		839		829
Hess 8.125%, 02/15/19		50		57
Husky Energy 4.000%, 04/15/24		100		92
KazMunayGas National 6.375%, 04/09/21 (A)		430		442
Kinder Morgan
5.300%, 12/01/34		274		216
5.050%, 02/15/46		434		322
3.050%, 12/01/19		50		46
2.000%, 12/01/17		200		193
Kinder Morgan Energy Partners
3.950%, 09/01/22		250		218
3.500%, 03/01/21		20		18
Magellan Midstream Partners 4.250%, 02/01/21		100		100
Marathon Oil
5.200%, 06/01/45		293		208
2.800%, 11/01/22		150		120
2.700%, 06/01/20		1,351		1,191
Marathon Petroleum 3.400%, 12/15/20		784		770
MPLX
4.875%, 12/01/24 (A)		100		90
4.000%, 02/15/25		25		21
Nabors Industries 5.100%, 09/15/23		100		79
National Oilwell Varco 2.600%, 12/01/22		100		87
Noble Energy 4.150%, 12/15/21		200		194
Occidental Petroleum 3.125%, 02/15/22		100		98
Odebrecht Drilling Norbe VIII 6.350%, 06/30/21 (A)		330		119
ONEOK Partners 3.375%, 10/01/22		100		81
Pertamina Persero
6.450%, 05/30/44 (A)		370		322
6.000%, 05/03/42 (A)		540		442
5.250%, 05/23/21 (A)		485		484
Petroleos de Venezuela
9.000%, 11/17/21		660		264
6.000%, 11/15/26 (A)		665		245
5.375%, 04/12/27		1,200		435
Petroleos Mexicanos
8.000%, 05/03/19		250		275
6.625%, 06/15/35		1,040		929
6.375%, 01/23/45		190		161
5.625%, 01/23/46 (A)		819		627
5.500%, 06/27/44		500		376
4.875%, 01/24/22		350		337
3.500%, 07/23/20 (A)		300		269


Description	Face Amount (000)		Value (000)
Petronas Capital
4.500%, 03/18/45 (A)	$	200	$	190
3.500%, 03/18/25 (A)		200		192
3.125%, 03/18/22 (A)		455		444
Phillips 66 2.950%, 05/01/17		100		101
Phillips 66 Partners 3.605%, 02/15/25		25		22
Pioneer Natural Resources 3.450%, 01/15/21		100		92
Plains All American Pipeline
4.650%, 10/15/25		1,053		919
3.850%, 10/15/23		150		126
Pride International 8.500%, 06/15/19		20		20
Regency Energy Partners 4.500%, 11/01/23		1,682		1,455
Schlumberger Holdings
4.000%, 12/21/25 (A)		1,089		1,074
3.000%, 12/21/20 (A)		1,266		1,250
Schlumberger Investment 3.650%, 12/01/23		100		101
Shell International Finance
3.250%, 05/11/25		150		147
2.000%, 11/15/18		200		200
1.125%, 08/21/17		150		149
Southwestern Energy 4.950%, 01/23/25		100		63
Spectra Energy Partners 3.500%, 03/15/25		100		87
State Oil of the Azerbaijan Republic 4.750%, 03/13/23		1,045		883
Statoil
3.700%, 03/01/24		100		101
2.450%, 01/17/23		125		119
2.250%, 11/08/19		150		149
Suncor Energy 6.100%, 06/01/18		100		108
Total Capital Canada 2.750%, 07/15/23		100		96
Total Capital International
2.100%, 06/19/19		100		99
1.550%, 06/28/17		200		201
TransCanada PipeLines
6.350%, 05/15/67 (B)		100		76
2.500%, 08/01/22		100		92
1.625%, 11/09/17		2,621		2,599
Valero Energy
9.375%, 03/15/19		29		34
3.650%, 03/15/25		100		95
Western Gas Partners 2.600%, 08/15/18		100		97
Williams 4.550%, 06/24/24		50		35

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Williams Partners
6.300%, 04/15/40	$	354	$	272
5.250%, 03/15/20		250		232

				34,384

Financials — 10.2%
Abbey National Treasury Services
2.375%, 03/16/20		100		100
1.650%, 09/29/17		100		100
ACE INA Holdings
3.350%, 05/15/24		100		101
2.875%, 11/03/22		150		149
Aflac 2.650%, 02/15/17		200		203
African Development Bank
1.375%, 02/12/20		100		98
0.875%, 05/15/17		205		204
Alexandria Real Estate Equities 2.750%, 01/15/20‡		50		49
Alleghany 4.950%, 06/27/22		100		107
American Express 7.000%, 03/19/18		150		166
American Express Credit
2.375%, 03/24/17		200		200
2.250%, 08/15/19		150		150
1.875%, 11/05/18		150		150
American International Group
4.800%, 07/10/45		277		268
3.375%, 08/15/20		150		154
2.300%, 07/16/19		100		99
American Tower
4.700%, 03/15/22‡		150		158
3.400%, 02/15/19‡		100		102
Ameriprise Financial 5.300%, 03/15/20		100		111
Andina de Fomento 4.375%, 06/15/22		100		106
Aon 5.000%, 09/30/20		100		109
Ares Capital 3.875%, 01/15/20		60		61
Asian Development Bank
2.000%, 01/22/25		100		97
1.750%, 03/21/19		100		101
1.625%, 08/26/20		100		99
1.125%, 03/15/17		450		449
0.750%, 07/28/17		100		99
Assurant 4.000%, 03/15/23		74		74
Australia & New Zealand Banking Group New York 1.250%, 01/10/17		250		250
AvalonBay Communities 3.500%, 11/15/24‡		100		100


Description	Face Amount (000)		Value (000)
Banco de Costa Rica 5.250%, 08/12/18 (A)	$	540	$	541
Banco Nacional de Costa Rica 4.875%, 11/01/18 (A)		350		347
Banco Regional SAECA 8.125%, 01/24/19 (A)		390		397
Bank of America
5.700%, 01/24/22		100		113
4.200%, 08/26/24		165		164
4.100%, 07/24/23		100		103
4.000%, 04/01/24		450		456
3.950%, 04/21/25		100		97
3.875%, 08/01/25		444		451
2.650%, 04/01/19		450		451
2.625%, 10/19/20		2,032		2,007
2.250%, 04/21/20		250		244
2.050%, 12/07/18		3,104		3,095
2.000%, 01/11/18		150		150
1.950%, 05/12/18		1,223		1,216
1.750%, 06/05/18		250		248
1.700%, 08/25/17		140		140
1.250%, 02/14/17		250		250
Bank of Ceylon 6.875%, 05/03/17 (A)		210		211
Bank of China 5.000%, 11/13/24 (A)		440		453
Bank of Georgia 7.750%, 07/05/17		330		341
Bank of Montreal
1.800%, 07/31/18		50		50
1.400%, 04/10/18		200		198
Bank of New York Mellon
3.550%, 09/23/21		100		105
3.000%, 02/24/25		100		98
2.450%, 11/27/20		50		50
2.100%, 08/01/18		200		201
Bank of Nova Scotia
2.800%, 07/21/21		100		100
2.050%, 10/30/18		100		100
1.300%, 07/21/17		100		100
Barclays
3.650%, 03/16/25		200		192
2.875%, 06/08/20		250		250
BB&T 2.450%, 01/15/20		100		101
Berkshire Hathaway 1.900%, 01/31/17		250		252
BioMed Realty 2.625%, 05/01/19‡		50		49
BlackRock 5.000%, 12/10/19		100		111
BMCE Bank 6.250%, 11/27/18		200		206
BNP Paribas
4.250%, 10/15/24		200		198
2.375%, 05/21/20		200		198

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Boston Properties
3.850%, 02/01/23‡	$	100	$	102
3.700%, 11/15/18‡		100		104
BPCE 1.625%, 02/10/17		250		249
Branch Banking & Trust 1.000%, 04/03/17		250		249
Brixmor Operating Partnership 3.875%, 08/15/22‡		30		30
Camden Property Trust 3.500%, 09/15/24‡		100		98
Capital One 1.650%, 02/05/18		1,737		1,720
Capital One Bank USA 2.150%, 11/21/18		250		248
Capital One Financial
4.200%, 10/29/25		100		99
3.200%, 02/05/25		50		48
2.450%, 04/24/19		100		100
CBL & Associates 5.250%, 12/01/23‡		150		144
Charles Schwab 4.450%, 07/22/20		100		109
Chubb 5.750%, 05/15/18		100		109
Citigroup
4.450%, 09/29/27		308		306
4.400%, 06/10/25		1,088		1,099
3.750%, 06/16/24		100		102
3.500%, 05/15/23		100		98
3.300%, 04/27/25		100		98
2.650%, 10/26/20		100		99
2.500%, 07/29/19		100		100
2.400%, 02/18/20		100		99
2.150%, 07/30/18		70		70
1.800%, 02/05/18		500		498
1.700%, 04/27/18		100		99
Citizens Financial Group 4.300%, 12/03/25		100		101
CME Group 3.000%, 03/15/25		150		147
CNA Financial 5.875%, 08/15/20		100		111
Comerica 2.125%, 05/23/19		50		50
Commonwealth Bank of Australia 2.250%, 03/13/19		250		251
Cooperatieve Centrale Raiffeisen-Boerenleenbank
3.875%, 02/08/22		300		316
2.250%, 01/14/20		250		249
Council of Europe Development Bank
1.750%, 11/14/19		100		100
1.125%, 05/31/18		150		149


Description	Face Amount (000)		Value (000)
Credit Suisse Group Funding Guernsey 3.125%, 12/10/20 (A)	$	2,520	$	2,509
Credit Suisse New York
3.625%, 09/09/24		250		252
1.750%, 01/29/18		250		249
1.700%, 04/27/18		250		248
Crown Castle Holdings 3.849%, 04/15/23		50		49
DDR 3.500%, 01/15/21‡		100		99
Deutsche Bank
6.000%, 09/01/17		100		106
3.700%, 05/30/24		85		85
2.950%, 08/20/20		100		100
1.875%, 02/13/18		250		248
Development Bank of Kazakhstan 4.125%, 12/10/22 (A)		970		853
Digital Realty Trust 3.625%, 10/01/22‡		100		96
Discover Bank 2.000%, 02/21/18		250		248
Duke Realty 3.750%, 12/01/24‡		100		97
ERP Operating 4.625%, 12/15/21‡		200		217
European Bank for Reconstruction & Development 1.500%, 03/16/20		200		198
European Investment Bank
3.250%, 01/29/24		250		266
2.250%, 08/15/22		250		250
2.125%, 10/15/21		100		100
1.875%, 03/15/19		150		151
1.750%, 06/17/19		300		301
1.625%, 12/18/18		2,208		2,186
1.375%, 06/15/20		150		147
1.250%, 05/15/18		150		149
1.125%, 09/15/17		650		648
1.000%, 08/17/17		200		199
0.875%, 04/18/17		250		249
Export Credit Bank of Turkey
5.875%, 04/24/19 (A)		200		207
5.000%, 09/23/21 (A)		620		608
Export-Import Bank of India 4.000%, 01/14/23		270		273
Fifth Third Bancorp 2.875%, 07/27/20		100		100
FMS Wertmanagement AoeR 1.750%, 03/17/20		200		199
Goldman Sachs Group
6.150%, 04/01/18		500		543
5.750%, 01/24/22		300		341
4.750%, 10/21/45		740		735
4.250%, 10/21/25		200		198
4.000%, 03/03/24		200		205

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
3.750%, 05/22/25	$	100	$	101
3.625%, 01/22/23		673		681
2.750%, 09/15/20		75		75
2.600%, 04/23/20		100		99
2.550%, 10/23/19		200		200
Hartford Financial Services Group 5.125%, 04/15/22		100		110
HCP 5.375%, 02/01/21‡		200		218
Hospitality Properties Trust 5.000%, 08/15/22‡		100		103
Host Hotels & Resorts 3.750%, 10/15/23‡		100		96
HSBC Finance 6.676%, 01/15/21		100		115
HSBC Holdings 4.000%, 03/30/22		100		105
HSBC USA
2.625%, 09/24/18		150		152
1.500%, 11/13/17		150		149
1.300%, 06/23/17		200		199
Huntington National Bank 2.000%, 06/30/18		250		248
IDBI Bank 4.125%, 04/23/20		410		409
Industrial & Commercial Bank of China
3.231%, 11/13/19		250		254
2.905%, 11/13/20		250		248
ING Bank 2.000%, 11/26/18 (A)		1,309		1,304
Inter-American Development Bank
2.125%, 01/15/25		125		121
1.875%, 06/16/20		300		300
1.750%, 04/14/22		150		147
1.125%, 03/15/17		400		401
1.000%, 07/14/17		100		100
Intercontinental Exchange 4.000%, 10/15/23		150		155
International Bank for Reconstruction & Development
2.500%, 11/25/24		100		101
2.250%, 06/24/21		50		50
2.125%, 02/13/23		100		100
1.875%, 03/15/19		400		397
1.625%, 02/10/22		200		194
1.000%, 11/15/17		500		497
0.875%, 04/17/17		250		250
International Bank of Azerbaijan 5.625%, 06/11/19		400		363
International Finance
1.625%, 07/16/20		100		99
1.250%, 07/16/18		100		100
0.875%, 06/15/18		300		296
Intesa Sanpaolo 5.250%, 01/12/24		250		268


Description	Face Amount (000)		Value (000)
Jefferies Group 6.875%, 04/15/21	$	100	$	112
JPMorgan Chase
6.000%, 01/15/18		300		324
4.250%, 10/15/20		1,014		1,040
3.900%, 07/15/25		573		591
3.625%, 05/13/24		100		101
3.375%, 05/01/23		200		197
3.125%, 01/23/25		150		146
2.750%, 06/23/20		100		100
2.550%, 10/29/20		991		983
2.250%, 01/23/20		1,587		1,561
1.800%, 01/25/18		250		250
1.700%, 03/01/18		250		249
1.350%, 02/15/17		300		299
KeyCorp 5.100%, 03/24/21		150		164
KFW
2.500%, 11/20/24		150		150
2.125%, 01/17/23		250		247
1.875%, 04/01/19		750		750
1.500%, 04/20/20		350		345
1.000%, 01/26/18		900		892
0.875%, 12/15/17		400		397
Kimco Realty 3.200%, 05/01/21‡		50		50
Landwirtschaftliche Rentenbank
2.375%, 06/10/25		100		99
1.750%, 04/15/19		100		100
1.000%, 04/04/18		200		199
Lazard Group 3.750%, 02/13/25		50		46
Liberty Property 4.125%, 06/15/22‡		100		101
Lloyds Bank
3.500%, 05/14/25		200		201
2.000%, 08/17/18		200		200
Loews 2.625%, 05/15/23		100		95
Magyar Export-Import Bank 4.000%, 01/30/20 (A)		450		453
Manufacturers & Traders Trust 1.400%, 07/25/17		250		249
Marsh & McLennan 2.350%, 09/10/19		75		75
MetLife
3.600%, 04/10/24		150		153
1.903%, 12/15/17		89		89
Metropolitan Life Global Funding I 1.300%, 04/10/17 (A)		2,266		2,265
MFB Magyar Fejlesztesi Bank 6.250%, 10/21/20 (A)		200		220
Moody’s 2.750%, 07/15/19		100		101

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Morgan Stanley
4.875%, 11/01/22	$	100	$	106
4.750%, 03/22/17		250		259
4.000%, 07/23/25		971		1,000
3.700%, 10/23/24		150		151
2.800%, 06/16/20		100		100
2.650%, 01/27/20		100		100
2.500%, 01/24/19		250		251
2.375%, 07/23/19		550		548
1.875%, 01/05/18		200		200
MUFG Union Bank 2.125%, 06/16/17		250		252
Murray Street Investment Trust I 1.494%, 03/09/17 (C)		150		155
Nasdaq 5.250%, 01/16/18		85		90
National Australia Bank 2.625%, 07/23/20		250		252
National Retail Properties 4.000%, 11/15/25‡		35		34
National Rural Utilities Cooperative Finance 10.375%, 11/01/18		150		183
National Savings Bank 8.875%, 09/18/18 (A)		490		504
Nomura Holdings 2.750%, 03/19/19		150		151
Nordic Investment Bank 1.125%, 03/19/18		200		199
Oesterreichische Kontrollbank
1.125%, 05/29/18		150		149
0.750%, 05/19/17		150		149
PLA Administradora Industrial S de RL 5.250%, 11/10/22‡(A)		200		195
PNC Bank
2.700%, 11/01/22		250		243
2.400%, 10/18/19		250		251
1.800%, 11/05/18		250		249
1.125%, 01/27/17		100		100
Power Sector Assets & Liabilities Management 7.390%, 12/02/24 (A)		330		425
Pricoa Global Funding I 1.900%, 09/21/18 (A)		602		600
Principal Financial Group 3.400%, 05/15/25		100		98
Private Export Funding
3.250%, 06/15/25		100		103
2.250%, 03/15/20		200		203
Prudential Financial
5.625%, 06/15/43 (B)		100		102
5.375%, 05/15/45 (B)		100		100
Realty Income 3.250%, 10/15/22‡		100		97


Description	Face Amount (000)⁽¹⁾		Value (000)
Royal Bank of Canada
2.200%, 07/27/18		150	$	151
2.150%, 03/15/19		200		201
2.000%, 12/10/18		3,535		3,532
Santander Holdings USA 2.650%, 04/17/20		100		98
Santander UK Group Holdings 5.625%, 09/15/45 (A)		537		536
Senior Housing Properties Trust 3.250%, 05/01/19‡		150		149
Simon Property Group
3.375%, 10/01/24‡		125		126
2.200%, 02/01/19‡		150		151
Societe Generale 5.625%, 11/24/45 (A)		585		561
Standard Chartered Bank 7.280%, 06/05/19 (A)	(INR)	25,000		374
Sumitomo Mitsui Banking
3.650%, 07/23/25		250		252
1.950%, 07/23/18		250		249
SunTrust Banks
3.500%, 01/20/17		100		102
2.500%, 05/01/19		50		50
Svensk Exportkredit 1.875%, 06/17/19		200		200
Svenska Handelsbanken 1.625%, 03/21/18		250		249
Synchrony Financial
4.500%, 07/23/25		100		100
3.000%, 08/15/19		100		100
TIAA Asset Management Finance
4.125%, 11/01/24 (A)		184		185
2.950%, 11/01/19 (A)		532		533
Toronto-Dominion Bank
2.500%, 12/14/20		2,332		2,331
2.125%, 07/02/19		100		100
1.950%, 04/02/20 (A)		473		465
1.625%, 03/13/18		150		150
Travelers 3.900%, 11/01/20		100		106
Turkiye Vakiflar Bankasi Tao 5.000%, 10/31/18 (A)		320		323
UBS
2.350%, 03/26/20		250		250
1.375%, 06/01/17		1,584		1,576
UDR
4.625%, 01/10/22‡		1,239		1,321
4.000%, 10/01/25‡		50		50
Unum Group 4.000%, 03/15/24		50		50
US Bancorp
2.950%, 07/15/22		300		298
1.950%, 11/15/18		100		101

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Ventas Realty
3.750%, 05/01/24‡	$	50	$	49
2.700%, 04/01/20‡		100		99
Vornado Realty 2.500%, 06/30/19‡		100		99
Voya Financial 2.900%, 02/15/18		100		101
WEA Finance 3.250%, 10/05/20 (A)		2,054		2,062
Wells Fargo
5.625%, 12/11/17		500		536
4.900%, 11/17/45		804		811
3.550%, 09/29/25		100		101
3.300%, 09/09/24		100		100
3.000%, 01/22/21		200		198
2.600%, 07/22/20		250		249
2.550%, 12/07/20		2,290		2,279
Welltower 5.250%, 01/15/22‡		100		108
Westpac Banking
4.875%, 11/19/19		200		218
2.600%, 11/23/20		2,037		2,045
2.250%, 01/17/19		100		100
Weyerhaeuser 4.625%, 09/15/23‡		100		104
WP Carey 4.600%, 04/01/24‡		50		50
XLIT 5.750%, 10/01/21		74		82

				93,917

Health Care — 2.3%
Abbott Laboratories 2.550%, 03/15/22		150		149
AbbVie
4.500%, 05/14/35		1,035		1,014
3.200%, 11/06/22		250		246
1.800%, 05/14/18		1,799		1,791
1.750%, 11/06/17		200		199
Actavis 1.875%, 10/01/17		100		100
Actavis Funding
4.550%, 03/15/35		247		240
3.800%, 03/15/25		190		189
3.450%, 03/15/22		150		150
3.000%, 03/12/20		1,309		1,308
2.350%, 03/12/18		80		80
Aetna 2.750%, 11/15/22		150		146
AmerisourceBergen 3.400%, 05/15/24		100		98
Amgen
5.700%, 02/01/19		250		276
4.400%, 05/01/45		89		82
3.125%, 05/01/25		100		95


Description	Face Amount (000)		Value (000)
Anthem 3.300%, 01/15/23	$	200	$	194
AstraZeneca
3.375%, 11/16/25		1,146		1,138
2.375%, 11/16/20		2,390		2,373
1.950%, 09/18/19		100		99
Baxalta 3.600%, 06/23/22 (A)		100		100
Becton Dickinson
3.875%, 05/15/24		100		101
3.734%, 12/15/24		150		151
1.800%, 12/15/17		100		100
Biogen 3.625%, 09/15/22		100		101
Boston Scientific 2.850%, 05/15/20		100		99
Bristol-Myers Squibb 2.000%, 08/01/22		100		97
Cardinal Health 3.200%, 03/15/23		100		99
Celgene
3.875%, 08/15/25		100		100
2.250%, 05/15/19		100		99
2.125%, 08/15/18		200		200
Cigna 4.000%, 02/15/22		100		103
City of Hope 5.623%, 11/15/43		465		519
Covidien International Finance 6.000%, 10/15/17		100		108
Eli Lilly 1.250%, 03/01/18		100		100
Express Scripts Holding
3.900%, 02/15/22		150		154
1.250%, 06/02/17		55		55
Gilead Sciences
4.750%, 03/01/46		899		910
3.500%, 02/01/25		100		101
2.550%, 09/01/20		200		200
2.350%, 02/01/20		20		20
1.850%, 09/04/18		20		20
GlaxoSmithKline Capital
2.850%, 05/08/22		100		101
2.800%, 03/18/23		125		124
Howard Hughes Medical Institute 3.500%, 09/01/23		150		155
Johnson & Johnson 2.450%, 12/05/21		100		101
Laboratory Corp of America Holdings 2.625%, 02/01/20		100		99
McKesson
2.284%, 03/15/19		100		99
1.292%, 03/10/17		100		100

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Medtronic
4.625%, 03/15/45	$	399	$	411
4.375%, 03/15/35		772		780
3.500%, 03/15/25		100		101
2.750%, 04/01/23		200		195
2.500%, 03/15/20		150		151
1.375%, 04/01/18		75		75
Merck
2.750%, 02/10/25		200		195
1.850%, 02/10/20		150		149
Novartis Capital
3.400%, 05/06/24		100		103
3.000%, 11/20/25		50		50
Novartis Securities Investment 5.125%, 02/10/19		100		110
NYU Hospitals Center 5.750%, 07/01/43		288		329
Perrigo 4.000%, 11/15/23		200		195
Pfizer
5.200%, 08/12/20		100		112
3.000%, 06/15/23		100		101
1.500%, 06/15/18		100		100
1.100%, 05/15/17		100		100
Quest Diagnostics 2.500%, 03/30/20		150		148
Roche Holdings 3.000%, 11/10/25 (A)		1,454		1,440
Sanofi 1.250%, 04/10/18		125		124
St. Jude Medical 2.800%, 09/15/20		150		150
Stryker 3.375%, 11/01/25		50		49
Teva Pharmaceutical Finance 2.950%, 12/18/22		150		144
Thermo Fisher Scientific
3.600%, 08/15/21		100		101
2.400%, 02/01/19		150		150
UnitedHealth Group
4.750%, 07/15/45		708		746
3.750%, 07/15/25		50		52
2.875%, 03/15/22		100		100
2.700%, 07/15/20		130		131
2.300%, 12/15/19		50		50
1.900%, 07/16/18		60		60
Zimmer Biomet Holdings 3.150%, 04/01/22		200		197
Zoetis 3.250%, 02/01/23		50		48

				21,230

Industrials — 2.6%
3M 1.625%, 06/15/19		100		100


Description	Face Amount (000)		Value (000)
ABB Finance USA 2.875%, 05/08/22	$	150	$	148
Air Lease 3.375%, 01/15/19		150		151
American Airlines Pass-Through Trust 4.950%, 01/15/23		174		183
BAE Systems Holdings
3.850%, 12/15/25 (A)		1,060		1,049
2.850%, 12/15/20 (A)		839		837
Boeing 2.350%, 10/30/21		150		149
Burlington Northern Santa Fe
5.650%, 05/01/17		100		105
5.150%, 09/01/43		1,168		1,232
3.050%, 03/15/22		100		100
Canadian National Railway 5.550%, 03/01/19		100		110
Canadian Pacific Railway
6.125%, 09/15/15		414		420
2.900%, 02/01/25		100		94
Caterpillar
3.900%, 05/27/21		50		53
3.400%, 05/15/24		100		101
Caterpillar Financial Services 1.000%, 03/03/17		300		299
CSX 7.375%, 02/01/19		100		115
Danaher
3.350%, 09/15/25		30		30
1.650%, 09/15/18		120		120
Deere 2.600%, 06/08/22		150		148
Dover 4.300%, 03/01/21		100		108
DP World 6.850%, 07/02/37 (A)		440		432
Eaton 2.750%, 11/02/22		200		194
Emerson Electric 2.625%, 02/15/23		100		98
Eskom Holdings 5.750%, 01/26/21 (A)		650		566
FedEx 3.200%, 02/01/25		100		97
GATX 2.500%, 07/30/19		150		148
GE Capital International Funding 2.342%, 11/15/20 (A)		1,782		1,767
General Dynamics 2.250%, 11/15/22		100		96
General Electric 5.250%, 12/06/17		375		400

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)⁽¹⁾		Value (000)
General Electric Capital
4.650%, 10/17/21		150	$	166
3.450%, 05/15/24		100		103
2.900%, 01/09/17		150		153
Georgian Railway 7.750%, 07/11/22 (A)		900		911
Honeywell International 4.250%, 03/01/21		125		137
Illinois Tool Works 1.950%, 03/01/19		100		100
Ingersoll-Rand Global Holding 4.250%, 06/15/23		100		103
John Deere Capital
3.350%, 06/12/24		100		102
2.800%, 03/04/21		100		100
1.350%, 01/16/18		100		99
Kazakhstan Temir Zholy Finance 6.375%, 10/06/20 (A)		730		718
Koninklijke Philips 5.750%, 03/11/18		100		107
L-3 Communications 5.200%, 10/15/19		125		132
Lockheed Martin
4.700%, 05/15/46		200		205
3.550%, 01/15/26		1,487		1,492
2.900%, 03/01/25		100		96
2.500%, 11/23/20		1,758		1,748
Norfolk Southern 3.250%, 12/01/21		100		100
Northrop Grumman 3.250%, 08/01/23		50		50
Owens Corning 4.200%, 12/01/24		100		97
PACCAR Financial 1.400%, 11/17/17		55		55
Parker-Hannifin 3.300%, 11/21/24		150		151
Pentair Finance 3.625%, 09/15/20		100		100
Pitney Bowes 4.625%, 03/15/24		100		98
Precision Castparts 2.500%, 01/15/23		150		145
Raytheon 2.500%, 12/15/22		150		147
Red de Carreteras de Occidente 9.000%, 06/10/28 (A)	(MXN)	6,100		340
Republic Services 3.550%, 06/01/22		150		153
Roper Technologies 2.050%, 10/01/18		100		99
Ryder System 2.550%, 06/01/19		95		94


Description	Face Amount (000)		Value (000)
Siemens Financieringsmaatschappij 1.450%, 05/25/18 (A)	$	1,259	$	1,249
Southwest Airlines 2.750%, 11/06/19		50		50
Stanley Black & Decker 2.900%, 11/01/22		100		98
Union Pacific
4.375%, 11/15/65		394		365
3.646%, 02/15/24		100		104
3.250%, 08/15/25		100		102
United Parcel Service
5.125%, 04/01/19		100		110
3.125%, 01/15/21		45		47
United Technologies
3.100%, 06/01/22		100		102
1.800%, 06/01/17		150		151
1.550%, 05/04/18 (C)		3,974		3,934
Verisk Analytics 4.000%, 06/15/25		50		49
Waste Management 3.500%, 05/15/24		100		101

				24,013

Information Technology — 1.6%
Alibaba Group Holding 2.500%, 11/28/19		250		244
Amphenol 1.550%, 09/15/17		100		100
Apple
3.450%, 05/06/24		100		104
2.700%, 05/13/22		200		200
2.400%, 05/03/23		200		195
2.100%, 05/06/19		150		152
1.000%, 05/03/18		100		99
Applied Materials 2.625%, 10/01/20		50		50
Arrow Electronics 3.500%, 04/01/22		100		96
Automatic Data Processing 2.250%, 09/15/20		50		50
Baidu
4.125%, 06/30/25		310		307
3.250%, 08/06/18		200		203
Broadcom 3.500%, 08/01/24		40		40
Cisco Systems
4.950%, 02/15/19		100		109
4.450%, 01/15/20		200		218
3.500%, 06/15/25		50		51
Corning 1.500%, 05/08/18		100		98
eBay 2.875%, 08/01/21		150		148

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
EMC 3.375%, 06/01/23	$	100	$	81
Fidelity National Information Services
5.000%, 10/15/25		100		103
3.500%, 04/15/23		150		143
Fiserv 2.700%, 06/01/20		100		99
Google 3.375%, 02/25/24		100		105
Harris 2.700%, 04/27/20		35		34
Hewlett Packard Enterprise
4.900%, 10/15/25 (A)		1,504		1,475
3.600%, 10/15/20 (A)		150		150
2.850%, 10/05/18 (A)		100		100
HP
4.650%, 12/09/21		100		100
2.750%, 01/14/19		200		200
Intel
3.700%, 07/29/25		25		26
3.300%, 10/01/21		100		103
2.700%, 12/15/22		100		99
2.450%, 07/29/20		60		61
International Business Machines
3.625%, 02/12/24		100		103
2.875%, 11/09/22		2,757		2,736
1.875%, 08/01/22		150		142
1.625%, 05/15/20		150		146
1.125%, 02/06/18		100		99
Juniper Networks 4.500%, 03/15/24		50		50
Keysight Technologies 3.300%, 10/30/19		100		98
KLA-Tencor 3.375%, 11/01/19		150		152
Microsoft
4.450%, 11/03/45		875		902
4.200%, 11/03/35		541		553
4.000%, 02/08/21		150		163
3.625%, 12/15/23		100		105
2.375%, 02/12/22		200		198
1.625%, 12/06/18		150		151
Motorola Solutions 3.500%, 09/01/21		100		94
NetApp 3.375%, 06/15/21		50		49
Oracle
2.950%, 05/15/25		100		98
2.500%, 05/15/22		150		147
2.375%, 01/15/19		150		152
2.250%, 10/08/19		200		202
1.200%, 10/15/17		150		150
QUALCOMM
3.000%, 05/20/22		100		99
1.400%, 05/18/18		100		99


Description	Face Amount (000)		Value (000)
Seagate HDD Cayman 4.750%, 01/01/25	$	100	$	83
Telefonaktiebolaget LM Ericsson 4.125%, 05/15/22		50		51
Texas Instruments 1.000%, 05/01/18		100		99
Tyco Electronics Group 2.350%, 08/01/19		50		50
Visa
4.300%, 12/14/45		929		943
4.150%, 12/14/35		342		345
3.150%, 12/14/25		100		100
2.800%, 12/14/22		100		100
2.200%, 12/14/20		100		100
Western Union 2.875%, 12/10/17		100		101
Xerox 4.500%, 05/15/21		150		152
Xilinx 2.125%, 03/15/19		50		50

				14,205

Materials — 0.8%
Air Products & Chemicals 3.350%, 07/31/24		100		100
Airgas 3.650%, 07/15/24		100		99
Alcoa 6.150%, 08/15/20		1,074		1,109
Barrick 4.100%, 05/01/23		32		27
Barrick PD Australia Finance Property 5.950%, 10/15/39		794		542
BHP Billiton Finance USA
6.500%, 04/01/19		125		137
1.625%, 02/24/17		100		100
Cemex Finance 9.375%, 10/12/22 (A)		330		347
CF Industries 7.125%, 05/01/20		100		113
Dow Chemical 8.550%, 05/15/19		225		265
DuPont (E.I.) De Nemours
4.625%, 01/15/20		100		105
2.800%, 02/15/23		100		95
Eastman Chemical 2.400%, 06/01/17		100		101
Freeport-McMoRan
3.550%, 03/01/22		150		87
2.375%, 03/15/18		150		117
Goldcorp 3.700%, 03/15/23		50		46

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
International Paper 7.950%, 06/15/18	$	125	$	142
LyondellBasell Industries 5.000%, 04/15/19		250		266
Mexichem 5.875%, 09/17/44 (A)		260		218
Monsanto 2.125%, 07/15/19		100		100
Nacional del Cobre de Chile
4.875%, 11/04/44 (A)		392		313
4.500%, 09/16/25 (A)		310		292
3.875%, 11/03/21 (A)		340		327
3.000%, 07/17/22 (A)		200		180
Newmont Mining 3.500%, 03/15/22		100		89
OCP 5.625%, 04/25/24 (A)		410		416
Packaging Corp of America 3.650%, 09/15/24		100		97
Potash Corp of Saskatchewan 3.625%, 03/15/24		100		97
PPG Industries 2.300%, 11/15/19		100		99
Praxair 3.000%, 09/01/21		150		152
Rio Tinto Finance USA
3.750%, 06/15/25		100		91
2.250%, 12/14/18		243		237
1.625%, 08/21/17		100		98
Sherwin-Williams 3.450%, 08/01/25		100		101
Southern Copper 3.875%, 04/23/25		30		27
Vale Overseas
6.250%, 01/23/17		310		310
4.375%, 01/11/22		250		189
WestRock RKT 4.450%, 03/01/19		100		104

				7,335

Telecommunication Services — 1.0%
America Movil 5.000%, 03/30/20		200		217
AT&T
4.500%, 05/15/35		346		320
4.300%, 12/15/42		385		329
3.400%, 05/15/25		150		144
3.000%, 06/30/22		195		190
2.625%, 12/01/22		125		118
2.450%, 06/30/20		250		246
1.600%, 02/15/17		200		201
1.400%, 12/01/17		100		100
CCO Safari II
6.384%, 10/23/35 (A)		539		544
4.464%, 07/23/22 (A)		100		100
3.579%, 07/23/20 (A)		1,221		1,214


Description	Face Amount (000)		Value (000)
Deutsche Telekom International Finance 6.750%, 08/20/18	$	100	$	112
Digicel Group 7.125%, 04/01/22 (A)		200		150
Eileme 2 11.625%, 01/31/20 (A)		400		424
Ooredoo International Finance 3.875%, 01/31/28 (A)		458		434
Orange 4.125%, 09/14/21		100		106
RELX Capital 3.125%, 10/15/22		100		97
Rogers Communications 6.800%, 08/15/18		50		56
Telefonica Emisiones 3.192%, 04/27/18		250		255
Thomson Reuters 6.500%, 07/15/18		100		110
Verizon Communications
5.150%, 09/15/23		375		412
4.672%, 03/15/55		357		310
4.522%, 09/15/48		667		596
4.500%, 09/15/20		250		269
4.272%, 01/15/36		1,398		1,262
3.650%, 09/14/18		150		157
2.625%, 02/21/20		200		201
1.350%, 06/09/17		100		100
VimpelCom Holdings 7.504%, 03/01/22 (A)		450		450
Vodafone Group
2.950%, 02/19/23		150		141
1.500%, 02/19/18		150		148

				9,513

Utilities — 3.0%
Abengoa Transmision 6.875%, 04/30/43 (A)		250		259
American Electric Power 1.650%, 12/15/17		150		149
Arizona Public Service 3.150%, 05/15/25		50		50
Berkshire Hathaway Energy
3.750%, 11/15/23		100		102
1.100%, 05/15/17		150		149
CenterPoint Energy Houston Electric 2.250%, 08/01/22		100		96
CMS Energy 6.250%, 02/01/20		100		113
Comision Federal de Electricidad
6.125%, 06/16/45 (A)		675		619
4.875%, 01/15/24 (A)		215		212

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Consolidated Edison Company of New York 5.850%, 04/01/18	$	100	$	108
Dominion Gas Holdings
4.600%, 12/15/44		141		131
2.800%, 11/15/20		150		150
2.500%, 12/15/19		464		464
Dominion Resources 1.900%, 06/15/18		1,148		1,137
DTE Energy 2.400%, 12/01/19		100		100
Duke Energy
5.050%, 09/15/19		200		218
3.950%, 10/15/23		150		154
2.100%, 06/15/18		50		50
Empresa Nacional de Electricidad 4.250%, 04/15/24		50		49
Entergy
5.125%, 09/15/20		100		107
4.000%, 07/15/22		50		51
Exelon
5.625%, 06/15/35		183		195
2.850%, 06/15/20		200		199
1.550%, 06/09/17		778		775
FirstEnergy Transmission 5.450%, 07/15/44 (A)		654		659
Florida Power & Light 3.125%, 12/01/25		1,065		1,067
ITC Holdings
5.300%, 07/01/43		657		673
3.650%, 06/15/24		25		24
Jersey Central Power & Light 4.300%, 01/15/26 (A)		972		978
Kansas City Power & Light 3.650%, 08/15/25		100		101
Majapahit Holding BV 7.750%, 01/20/20 (A)		190		213
Metropolitan Edison 7.700%, 01/15/19		100		114
MidAmerican Energy 4.250%, 05/01/46		444		439
NextEra Energy Capital Holdings
2.700%, 09/15/19		1,402		1,396
2.056%, 09/01/17		1,418		1,419
1.586%, 06/01/17		1,254		1,250
NiSource Finance 6.400%, 03/15/18		105		114
Northern States Power
2.600%, 05/15/23		100		98
2.200%, 08/15/20		50		49
NSTAR Electric 2.375%, 10/15/22		100		96
Oncor Electric Delivery
7.000%, 09/01/22		100		120
4.550%, 12/01/41		820		786


Description	Face Amount (000)		Value (000)
ONE Gas 2.070%, 02/01/19	$	74	$	74
Pacific Gas & Electric 3.500%, 10/01/20		1,020		1,036
PECO Energy 3.150%, 10/15/25		100		100
Perusahaan Gas Negara Persero 5.125%, 05/16/24 (A)		450		430
PPL Capital Funding 3.500%, 12/01/22		150		151
Progress Energy 7.750%, 03/01/31		946		1,219
Public Service Electric & Gas
3.050%, 11/15/24		25		25
2.300%, 09/15/18		100		101
Puget Energy 6.500%, 12/15/20		100		115
Sempra Energy
9.800%, 02/15/19		3,339		4,041
3.750%, 11/15/25		100		100
3.550%, 06/15/24		100		99
Southern
2.750%, 06/15/20		100		99
2.150%, 09/01/19		877		860
1.300%, 08/15/17		1,071		1,061
Southern California Edison 3.500%, 10/01/23		150		155
Southern Power
5.250%, 07/15/43		380		362
1.850%, 12/01/17		470		470
TransAlta 1.900%, 06/03/17		31		30
Union Electric 3.500%, 04/15/24		150		154
Virginia Electric & Power 3.100%, 05/15/25		100		99
WEC Energy Group
6.250%, 05/15/67 (B)		100		75
1.650%, 06/15/18		789		782
Wisconsin Public Service 1.650%, 12/04/18		30		30
Xcel Energy 1.200%, 06/01/17		1,015		1,010

				27,911

Total Corporate Obligations (Cost $275,741) (000)				270,274

U.S. TREASURY OBLIGATIONS — 29.2%
U.S. Treasury Bonds
4.750%, 02/15/37-02/15/37		5,302		7,030
3.000%, 05/15/45-05/15/45		5,641		5,615
2.875%, 08/15/45-08/15/45		6,291		6,110

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
U.S. Treasury Notes
8.000%, 11/15/21-11/15/21	$	1,000	$	1,335
3.625%, 02/15/20-02/15/21		4,600		4,982
3.375%, 11/15/19-11/15/19		2,000		2,136
2.750%, 11/15/23-02/15/24		2,850		2,971
2.625%, 08/15/20-11/15/20		3,800		3,948
2.500%, 08/15/23-05/15/24		3,925		4,017
2.375%, 08/15/24-08/15/24		2,150		2,172
2.250%, 04/30/21-11/15/25		9,127		9,164
2.125%, 08/15/21-05/15/25		7,175		7,211
2.000%, 09/30/20-08/15/25		23,014		22,793
1.875%, 05/31/22-10/31/22		3,780		3,738
1.750%, 09/30/19-05/15/23		15,800		15,631
1.625%, 06/30/19-11/15/22		24,671		24,590
1.500%, 08/31/18-05/31/20		4,750		4,746
1.375%, 06/30/18-10/31/20		47,720		47,128
1.250%, 11/15/18-02/29/20		9,910		9,826
1.000%, 03/15/18-09/30/19		11,965		11,882
0.875%, 02/28/17-10/15/18		38,817		38,596
0.750%, 03/15/17-12/31/17		10,332		10,291
0.625%, 05/31/17-11/30/17		17,600		17,491
0.500%, 07/31/17-07/31/17		4,900		4,863

Total U.S. Treasury Obligations (Cost $269,687) (000)				268,266

MORTGAGE-BACKED SECURITIES — 16.7%
Agency Mortgage-Backed Obligations — 14.9%
FHLMC
4.500%, 07/01/40-09/01/43		4,421		4,821
4.000%, 01/15/41-09/01/45		5,678		6,004
3.500%, 01/01/41-01/01/41		8,145		8,384
3.000%, 01/01/27-08/01/43		7,369		7,427
FHLMC Multifamily Structured Pass-Through Certificates, Ser K050, Cl A2
3.334%, 08/25/25-08/25/25 (B)		519		531
3.284%, 06/25/25-06/25/25 (B)		422		432
3.241%, 09/25/24-09/25/24		523		535
3.010%, 07/25/25-07/25/25		328		329
FNMA
5.500%, 07/01/34-08/01/37		2,769		3,116
4.500%, 05/01/39-10/01/42		5,151		5,601
4.000%, 11/15/34-12/01/45		20,303		21,530
3.500%, 10/01/30-11/01/45		25,622		26,500
3.000%, 01/16/26-01/15/43		14,700		14,842
2.500%, 01/01/26-01/01/26		6,320		6,370
GNMA
4.500%, 08/20/45-08/20/45		4,001		4,306
4.000%, 08/20/45-10/20/45		6,786		7,214
3.500%, 01/15/41-01/15/41		11,610		12,079
3.000%, 01/15/43-01/15/43		6,970		7,064

				137,085

Non-Agency Mortgage-Backed Obligations — 1.8%
Alternative Loan Trust, Ser 2003-20CB, Cl 2A1 5.750%, 10/25/33-10/25/33		101		105


Description	Face Amount (000)		Value (000)
Banc of America Commercial Mortgage Trust, Ser 2006-6, Cl A3
5.369%, 10/10/45-10/10/45	$	70	$	70
3.705%, 09/15/48-09/15/48		230		235
Banc of America Funding, Ser 2005-4, Cl 1A3 5.500%, 08/25/35-08/25/35		61		62
Citigroup Commercial Mortgage Trust, Ser 2015-GC35, Cl A4 3.818%, 11/10/48-11/10/48		373		382
Citigroup Mortgage Loan Trust, Ser 2015-2, Cl 1A1 0.421%, 06/25/47-06/25/47 (A)(B)		551		510
Commercial Mortgage Pass-Through Trust, Ser 2012-9W57, Cl A 2.365%, 02/10/29-02/10/29 (A)		2,126		2,140
Commercial Mortgage Trust, Ser 2013-CR11, Cl A3 3.983%, 10/10/46-10/10/46		610		644
3.774%, 10/10/53-10/10/53		480		489
3.630%, 10/10/48-10/10/48		262		264
3.620%, 07/10/50-07/10/50		283		286
3.178%, 02/10/35-02/10/35 (A)		325		319
CSAIL Commercial Mortgage Trust, Ser 2015-C4, Cl A4 3.808%, 11/15/48-11/15/48		469		481
3.504%, 06/15/57-06/15/57		108		109
CSMC Trust, Ser 2014-USA, Cl A2 3.953%, 09/15/37-09/15/37 (A)		264		271
Fosse Master Issuer, Ser 2015-1A, Cl A2 0.615%, 10/18/54-10/18/54 (A)(B)		807		805
GS Mortgage Securities Trust, Ser 2015-590M, Cl A 3.621%, 10/10/35-10/10/35 (A)		397		402
2.933%, 06/05/31-06/05/31 (A)		1,116		1,130
GSR Mortgage Loan Trust, Ser 2005-4F, Cl 6A1 6.500%, 02/25/35-02/25/35		160		162
HarborView Mortgage Loan Trust, Ser 2004-3, Cl 1A 2.757%, 05/19/34-05/19/34 (B)		70		70
JPMBB Commercial Mortgage Securities Trust, Ser 2015-C30, Cl A5 3.822%, 07/15/48-07/15/48		386		397
3.598%, 11/15/48-11/15/48		281		283

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
JPMorgan Mortgage Trust, Ser 2005-A3, Cl 4A1 2.812%, 06/25/35-06/25/35 (B)	$	191	$	193
2.710%, 02/25/35-02/25/35 (B)		404		403
2.377%, 04/25/35-04/25/35 (B)		91		88
2.104%, 11/25/33-11/25/33 (B)		276		268
LB-UBS Commercial Mortgage Trust, Ser 2006-C7, Cl A2 5.300%, 11/15/38-11/15/38		233		235
MLCC Mortgage Investors, Ser 2006-2, Cl 2A 2.218%, 05/25/36-05/25/36 (B)		469		465
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2014-C14, Cl A4 3.787%, 01/15/47-01/15/47		218		228
Morgan Stanley Capital I Trust, Ser 2015-UBS8, Cl A4 3.809%, 12/15/48-12/15/48		282		287
3.350%, 07/13/29-07/13/29 (A)		646		658
Provident Funding Mortgage Loan Trust, Ser 2005-2, Cl 1A1A 2.547%, 10/25/35-10/25/35 (B)		365		358
RALI Series Trust, Ser 2003-QS7, Cl A2 4.750%, 04/25/33-04/25/33		244		247
RBS Commercial Funding Trust, Ser 2013-GSP, Cl A 3.834%, 01/13/32-01/13/32 (A)(B)		522		541
Silverstone Master Issuer, Ser 2015-1A, Cl 2A2 0.867%, 01/21/70-01/21/70 (A)(B)		833		830
Structured Adjustable Rate Mortgage Loan Trust, Ser 2004-6, Cl 1A 2.444%, 06/25/34-06/25/34 (B)		531		516
Wells Fargo Commercial Mortgage Trust, Ser 2015-P2, Cl A4 3.809%, 12/15/48-12/15/48		286		293
3.789%, 12/15/47-12/15/47		298		305
3.617%, 09/15/57-09/15/57		166		167
Wells Fargo Mortgage Backed Securities Trust, Ser 2005-AR10, Cl 2A2 2.738%, 06/25/35-06/25/35 (B)		492		500
2.735%, 10/25/33-10/25/33 (B)		844		848

				17,046

Total Mortgage-Backed Securities (Cost $154,540) (000)				154,131


Description	Face Amount (000)		Value (000)
LOAN PARTICIPATIONS — 9.1%
Aerospace/Defense — 0.0%
Transdigm Inc., Tranche D Term Loan 0.048%, 08/14/20	$	148	$	144

Automotive — 0.4%
Allison Transmission, Inc., Term B-3 Loan 0.045%, 08/12/22		980		973
FCA US LLC (fka Chrysler Group LLC), Tranche B Term Loan 0.025%, 04/17/18		270		267
Federal-Mogul Corporation, Tranche C Term Loan 0.060%, 11/02/20		321		281
Gates Global LLC, Initial Dollar Term Loan 0.080%, 04/02/21		618		579
Horizon Global Corporation, Term B Loan 0.060%, 08/04/19		49		48
MPG Holdco I Inc., Tranche B-1 Term Loan 0.038%, 06/30/21		196		192
Tower Automotive Holdings USA, LLC, Initial Term Loan 0.035%, 06/23/22		927		885
Trinseo Materials Operating S.C.A. (Trinseo Materials Finance, Inc.), Term B Loan 0.040%, 04/10/20		224		220
Visteon Corporation, Delayed Draw Term B Loan 3.500%, 04/09/21		58		58

				3,503

Building Materials — 0.1%
Headwaters Incorporated, Term Loan 0.095%, 08/18/23		25		25
Quikrete Holdings, Inc., Initial Loan (First Lien) 0.040%, 08/27/21		476		470
Summit Materials, LLC, Restatement Effective Date Term Loan 0.030%, 10/14/21		75		73
Tecomet Inc., Term Loan 5.750%, 11/25/21		99		89
VAT Lux II S.a.r.l. (fka Virtuoso Lux II S.a.r.l.) (aka Virtuoso US LLC), Term Loan 0.043%, 03/17/22		39		38

				695

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Chemicals — 0.6%
Aruba Investments, Inc., Term B-1 Loan 0.040%, 12/17/19	$	17	$	16
AZ Chem US Inc., Initial Term Loan (First Lien) 0.084%, 07/31/19		312		310
Berry Plastics Corporation, Term D Loan 0.060%, 11/03/21		980		960
Berry Plastics Corporation, Term F Loan 0.053%, 02/12/21		122		120
ColourOz Investment 1 GmbH, Term C Loan 4.500%, 09/03/21		14		14
ColourOz Investment 2 LLC, Term B-2 Loan 4.500%, 05/03/21		85		83
Entegris, Inc., Tranche B Term Loan 0.078%, 08/01/22		17		17
Gemini HDPE LLC, Term B Loan 0.043%, 02/21/18		148		146
Ineos US Finance LLC, Term Loan 0.045%, 08/03/22		888		862
MacDermid Incorporated (Platform Specialty Products Corporation), Tranche B-3 Term Loan 0.083%, 02/25/21		50		48
MacDermid Incorporated, Tranche B Term Loan
4.500%, 06/07/20		55		53
0.063%, 04/24/17		441		427
MacDermid Incorporated, Tranche B-2 Term Loan 0.005%, 04/24/17		50		48
Minerals Technologies Inc., Term B-1 Loan 0.035%, 03/19/21		110		109
NVLX Acquisition, LLC, Term Loan (First Lien) 0.038%, 03/31/21		124		123
PolyOne Corporation, Term B Loan 3.750%, 11/11/22		50		50
PQ Corporation, 2014 Term Loan 0.045%, 01/15/20		550		545
SIG Combibloc Holdings S.C.A. (fka Onex Wizard Acquisition Company II S.C.A.), Initial Dollar Term Loan 0.005%, 07/08/19		397		390


Description	Face Amount (000)		Value (000)
Signode Industrial Group Lux S.A. (Signode Industrial Group US Inc.), Initial Term B Loan 0.088%, 02/28/19	$	332	$	320
Solenis International L.P., Term Loan 4.250%, 06/02/21		494		472
The Chemours Company, Tranche B Term Loan 0.065%, 03/19/21		100		91
TI Group Automotive Systems, L.L.C., Initial US Term Loan 0.048%, 12/10/20		125		122
Univar USA Inc., Initial Dollar Term Loan 0.018%, 05/27/20		324		313

				5,639

Computers & Electronics — 1.2%
Answers Corporation, Term Loan 6.250%, 10/01/21		248		166
Ascend Learning, LLC, Term Loan (First Lien) 0.095%, 04/14/22		172		170
Avago 2/16 Cov-Lite Delayed Draw, Term B-1 Loan (First Lien) 0.038%, 02/01/23 (H)		900		891
Avago Technologies Cayman Ltd. (Avago Technologies Holdings Luxembourg S.A R.L.), Term Loan 0.078%, 10/09/21		1,122		1,118
Campaign Monitor Finance Property Limited (CM Delaware LLC), Term Loan 0.015%, 03/01/17		49		47
CompuCom Systems, Inc., Term Loan 0.001%, 05/15/20		235		148
Dell International LLC, Term B-2 Loan 0.063%, 12/19/17		597		592
Deltek, Inc., Term Loan (First Lien) 0.010%, 08/16/21		220		218
EIG Investors Corp., Term Loan 0.040%, 04/23/20		595		578
Evergreen Skills Lux S.À R.L., Initial Term Loan 0.040%, 11/23/18		198		152
First Data Corporation, 2018 New Dollar Term Loan 0.105%, 01/22/21		75		74
Global Healthcare Exchange LLC, Term B Loan 5.500%, 08/15/22		100		99

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Go Daddy Operating Company, LLC, Initial Term Loan 0.100%, 11/22/20	$	517	$	513
Hyland Software, Inc., Initial Term Loan 0.050%, 12/10/21		591		581
Infor (US), Inc. (fka Lawson Software Inc.) , Tranche B-5 Term Loan 0.033%, 04/19/19		961		900
ION Trading Technologies S.A.R.L., Tranche B-1 Dollar Term Loan (First Lien) 0.077%, 07/30/19		138		133
Italics Merger Sub Inc., Term Loan 0.033%, 04/19/19		224		216
Kronos Incorporated, Incremental Term Loan 0.050%, 06/20/19		296		291
Lattice Semiconductor Corporation, Term B Loan 5.250%, 03/05/21		50		46
MA Financeco., LLC, Initial Tranche B Term Loan 0.063%, 04/24/17		197		195
MA Financeco., LLC, Initial Tranche C Term Loan 0.063%, 04/24/17		95		94
Magic Newco, LLC, USD Term Loan 0.055%, 11/13/20		490		489
MH Sub I, LLC (Micro Holding Corp.), Initial Term Loan (First Lien) 0.045%, 06/07/20		124		119
Microsemi 12/15, Term B Loan (First Lien) 0.033%, 01/15/23 (H)		150		145
NXP B.V. (NXP Funding LLC), Tranche B Loan 0.045%, 05/21/20		175		174
Onex Carestream Finance LP, Term Loan (First Lien 2013) 0.048%, 05/21/21		460		411
Red Prairie Crown Parent, LLC, New Term Loan (First Lien) 0.093%, 02/02/23		394		349
Renaissance Learning, Inc., Term Loan 4.500%, 04/09/21		298		284
Spectrum Brands, Inc., Term Loan 0.005%, 02/25/20		190		189
SS&C European Holdings, S.a.r.l, Term B-2 Loan 0.060%, 10/18/20		28		28


Description	Face Amount (000)		Value (000)
SS&C Technologies, Inc., Term B-1 Loan 0.055%, 06/30/18	$	193	$	191
SunEdison Semiconductor B.V., Term Loan 6.500%, 05/27/19		180		178
Sybil Finance B.V., Term B Loan 4.250%, 03/20/20		219		217
Vertafore, Inc., Term Loan 2013 0.065%, 03/16/22		937		926
Wall Street Systems Delaware, Inc., Term Loan 0.065%, 12/04/20		468		459

				11,381

Consumer Nondurables — 0.2%
Coty Inc., Term B Loan 0.078%, 01/03/20		100		99
Galleria Co., Term B Loan 0.000%, 10/21/22 (E)		175		173
KIK Custom Products Inc., Term Loan 0.040%, 03/05/21		150		145
NM Z Parent Inc. (aka Zep Inc.), Initial Term Loan 0.085%, 10/11/21		249		247
Revlon Consumer Products Corporation, Acquisition Facility 4.000%, 10/08/19		962		956

				1,620

Educational Services — 0.1%
Education Management II LLC, Tranche A Term Loan 0.043%, 11/04/21 (D)		129		59
Education Management II LLC, Tranche B Term Loan 0.043%, 11/04/21 (D)		226		56
Laureate Education, Inc., New Series 2018 Extended Term Loan 0.053%, 10/15/21		238		196
Nord Anglia Education Finance LLC, Initial Term Loan 0.098%, 12/12/17		301		293

				604

Entertainment & Leisure — 0.0%
AMC Entertainment Inc., Initial Term Loan 0.103%, 03/22/18		224		224
CDS U.S. Intermediate Holdings, Inc. (Cirque Du Soleil Canada Inc.), Initial Term Loan (First Lien) 0.063%, 03/18/21		50		47

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
ClubCorp Club Operations, Inc., Term Loan 4.250%, 07/24/20 (E)	$	200	$	199

				470

Financial Services — 0.3%
Altisource Solutions S.A R.L. , Term B Loan 0.093%, 07/01/19		40		34
Armor Holding II LLC, Term Loan (First Lien) 0.060%, 05/10/19		396		384
MCS AMS Sub-Holdings LLC, Initial Term Loan 7.500%, 10/15/19		434		352
NXT Capital, Inc. (NXT Capital, LLC), Second Amendment Term Loan 0.060%, 11/08/19		74		74
NXT Capital, Inc., (NXT Capital, LLC), Initial Term Loan 6.250%, 09/04/18		98		98
Ocwen Loan Servicing, LLC, Initial Term Loan 0.098%, 12/12/17		155		155
RCS Capital Corporation, Term Loan (First Lien) 0.140%, 12/27/17 (D)		195		137
The Citco Group Limited, Term Loan 0.038%, 05/12/22		980		967
Walter Investment Management Corp., Tranche B Term Loan 0.053%, 12/02/21		475		407

				2,608

Food & Beverage — 0.5%
AdvancePierre Foods, Inc., Term Loan (First Lien) 0.058%, 07/10/17		490		488
B&G Foods, Inc., Term B Loan 3.750%, 10/22/21		700		698
Blue Buffalo Company, Ltd., Term B-3 Loan 0.058%, 09/23/21		496		494
Charger OpCo B.V. (Oak Tea, Inc.), Term B-1 USD Loan 0.033%, 03/06/20		146		144
Del Monte Foods Inc., Term Loan 5.500%, 02/18/21		2		2
4.250%, 02/18/21		490		470
Dole Food Company, Inc., Tranche B Term Loan 0.038%, 10/29/18		924		916


Description	Face Amount (000)		Value (000)
JBS USA, LLC, 2015 Incremental Term Loan 0.048%, 09/30/20	$	75	$	75
Phillips Pet Food & Supplies, Initial Term Loan 0.048%, 11/25/20		491		443
Pinnacle Foods Finance LLC, Tranche G Term Loan 0.005%, 07/22/20		871		856
Post Holdings, Inc., Series A Incremental Term Loan 0.095%, 07/15/20		171		171

				4,757

Forest Products — 0.1%
Ply Gem Industries, Inc., Initial Term Loan 4.000%, 02/01/21		491		481

Gaming & Hotels — 0.4%
Amaya Holdings B.V., Initial Term B Loan (First Lien) 0.040%, 07/29/22		297		277
Boyd Gaming Corporation, Term B Loan 0.093%, 11/14/22		814		809
CityCenter Holdings, LLC, Term B Loan 4.250%, 10/16/20		244		242
Hilton Worldwide Holdings Inc., Intitial Term Loan 0.056%, 06/30/17 (B)		704		702
MGM Resorts International (MGM Grand Detroit, LLC), Term B Loan 0.065%, 02/12/19		980		965
Scientific Games International, Inc., Initial Term B-2 Loan 0.050%, 10/01/21		74		68
Scientific Games International, Inc., Initial Term Loan 0.098%, 10/18/20		490		447

				3,510

Health Care — 1.1%
Acadia Healthcare Company, Inc., Tranche B Term Loan 0.058%, 02/11/22		25		25
ADMI Corp. (aka Aspen Dental), Initial Term Loan 0.053%, 04/29/22		25		25
Alere Inc. (fka IM US Holdings, LLC), B Term Loan 0.060%, 04/16/21		162		160
Alliance HealthCare Services, Inc., Initial Term Loan 0.055%, 08/19/21		484		452

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
AMAG Pharmaceuticals, Inc., Initial Term Loan 0.053%, 02/04/22	$	100	$	95
Amneal Pharmaceuticals LLC, Term Loan B 0.098%, 11/01/19		563		551
Ardent Legacy Acquisitions, Inc.(Ardent Mergeco, L.L.C.), Term Loan 0.065%, 07/01/19		50		49
Auris Luxembourg III S.A R.L., Facility B4 0.050%, 08/04/22		273		272
CHS/Community Health Systems, Inc., Incremental 2019 Term G Loan 0.038%, 11/02/18		346		337
CHS/Community Health Systems, Inc., Incremental 2021 Term H Loan 0.090%, 12/24/19		637		626
DaVita HealthCare Partners Inc. (fka DaVita Inc.), Tranche B Term Loan 0.053%, 12/01/21		271		269
DJO Finance LLC, Initial Term Loan 0.043%, 02/18/21		200		194
DPX Holdings B.V. (fka JLL/Delta Dutch Newco B.V.), 2015 Incremental Dollar Term Loan 0.043%, 08/20/18		493		474
Endo Luxembourg Finance Company I S.à r.l., 2015 Incremental Term B Loan 0.038%, 12/17/20		275		271
Greatbatch Ltd., Term B Loan 0.033%, 03/04/19		100		99
Grifols Worldwide Operations Limited, U.S. Tranche B Term Loan 0.048%, 10/21/21		393		389
Hill-Rom Holdings, Inc., Initial Term B Loan 0.056%, 06/30/17		146		146
Horizon Pharma, Inc., 2015 Term Loan 4.500%, 02/15/15		224		210
Iasis Healthcare LLC , Term B Loan 0.038%, 03/11/18		638		625
Indivior Finance S.a r.l., Initial Term Loan 0.050%, 11/07/22		95		89
Jaguar Holdings Company, Initial Term Loan 0.040%, 08/06/21		448		434


Description	Face Amount (000)		Value (000)
Kindred Healthcare, Inc., Term B Loan 0.093%, 11/29/18	$	616	$	592
Kinetic Concepts, Inc., Dollar Term E-1 Loan 0.040%, 03/05/21		492		473
Life Time Fitness, Inc., Closing Date Term B Loan 0.040%, 07/29/22		124		121
Mallinckrodt International Finance S.A., Incremental Term B-1 Loan 0.033%, 12/19/20		99		96
Mallinckrodt International Finance S.A., Initial Term B Loan 0.050%, 06/15/18		147		143
MediArena Acquisition B.V. (fka AP NMT Acquisition B.V.), Dollar Term B Loan 0.065%, 11/30/18		248		219
Millennium Health LLC, Initial Term Loan 0.000%, 12/21/20 (D)		229		209
Opal Acquisition, Inc., Term B Loan 0.030%, 11/26/19		347		280
Ortho-Clinical Diagnostics Holdings Luxembourg S.À R.L., Initial Term Loan 0.053%, 06/27/18		246		208
Physio-Control International, Inc., Initial Term Loan (First Lien) 0.038%, 06/03/22		50		49
Radnet Management, Inc., Tranche B Term Loan 0.043%, 10/11/18		24		24
RegionalCare Hospital Partners, Inc., Term B-2 Loan 6.000%, 04/23/19		223		219
Sage Products Holdings III, LLC, Replacement Term Loan (First Lien) 0.053%, 02/02/22		215		211
Steward Health Care System LLC, Term B Loan 0.025%, 02/28/19		490		480
Valeant Pharmaceuticals International, Inc., Series E-1 Tranche B Term Loan 0.085%, 11/03/21		864		827

				9,943

The accompanying notes are an integral part of the financial statements.

100


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Home Furnishings — 0.0%
Serta Simmons Holdings, LLC , Term Loan 0.043%, 10/10/18	$	457	$	453

				453

Insurance — 0.2%
Alliant Holdings Intermediate, LLC, Initial Term Loan 0.043%, 06/03/19		199		194
Asurion, LLC (fka Asurion Corporation), Incremental Tranche B-2 Term Loan 0.068%, 07/31/19		683		622
Carecore National, LLC, Term Loan 0.063%, 05/08/21		346		298
USI, Inc. (fka Compass Investors Inc.), Initial Term Loan 0.039%, 02/28/17		395		381

				1,495

Leasing — 0.1%
Avis Budget Car Rental, LLC, Tranche B Term Loan 0.043%, 02/15/21		490		488
International Lease Finance Corporation, Term B Loan 0.095%, 06/19/18		225		224

				712

Machinery — 0.4%
Apex Tool Group, LLC, Term Loan 0.058%, 11/01/19		310		296
CPM Holdings Inc., Term B Loan 6.000%, 04/01/22		25		24
Doosan Bobcat Inc.(fka Doosan Infracore International, Inc.), Tranche B Term Loan 0.078%, 10/22/21		934		923
Gardner Denver, Inc., Initial Dollar Term Loan 0.081%, 12/31/18		980		879
Husky Injection Molding Systems Ltd. , New Term Loan 0.061%, 12/22/15		221		212
International Equipment Solutions, LLC, Term B Loan 0.050%, 06/18/18		442		411
Milacron LLC, Term B Loan 0.035%, 03/19/21		116		114
NXT Capital, Inc. (NXT Capital, LLC), Term Loan Facility 0.060%, 11/08/19		490		488


Description	Face Amount (000)		Value (000)
Rexnord LLC/ RBS Global, Inc., Term B Loan 0.060%, 04/17/20	$	496	$	480
Schaeffler AG (formerly named INA Beteiligungsgesellschaft mit beschränkter Haftung), Facility B-USD 0.060%, 10/22/21		34		34

				3,861

Media — 0.5%
Altice France S.A., USD Term Loan 0.035%, 05/22/20		50		48
Charter Communications Operating, LLC (aka CCO Safari LLC), Term I Loan 0.045%, 09/15/20		200		199
CSC Holdings, LLC (fka CSC Holdings, Inc.), Initial Term Loan 0.070%, 10/29/19		400		399
Hubbard Radio, LLC, Term B Loan 0.058%, 09/17/20		69		64
MCC Iowa LLC, Tranche J Term Loan 0.035%, 05/31/22		74		73
Mission Broadcasting Inc., Term B-2 Loan 3.750%, 10/01/20		461		457
Nexstar Broadcasting Group, Inc., Term B-2 Loan 3.750%, 10/01/20		523		519
Raycom TV Broadcasting, LLC, Term B Loan 3.750%, 08/04/21		997		987
Sinclair Television Group, Inc., Incremental Tranche B-1 Term Loan 0.045%, 12/01/18		796		790
TWCC Holding Corp., Term B-1 Loan 0.080%, 06/19/18		408		407
Univision Communications Inc., Replacement First-Lien Term Loan 0.048%, 02/12/21		496		485
Ziggo B.V., US$ B1 Facility 0.035%, 02/13/17		111		107
Ziggo B.V., US$ B2 Facility 0.070%, 06/26/20		71		69
Ziggo B.V., US$ B3 Facility 0.090%, 11/11/22		118		114

				4,718

The accompanying notes are an integral part of the financial statements.

101


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Metals & Mining — 0.1%
Dynacast International LLC, Term B-1 Loan (First Lien) 0.045%, 04/09/20	$	50	$	48
Murray Energy Corporation, Term B-1 Loan 0.045%, 12/19/22		25		19
Murray Energy Corporation, Term B-2 Loan 0.030%, 10/31/19		174		110
Novelis Inc., Term B Loan 0.045%, 11/22/18		249		237
Oxbow Carbon LLC (Oxbow Calcining LLC.), Tranche B Term Loan (2013) 0.043%, 10/25/20		897		837

				1,251

Not For Profit — 0.1%
National Mentor Holdings Inc., Term B Loan 4.250%, 01/31/21		491		475

Oil & Gas — 0.2%
Ameriforge Group Inc., Initial Term Loan (First Lien) 0.068%, 09/30/15		340		106
CITGO Holding, Inc., Term Loan 0.043%, 11/19/19		83		83
CITGO Petroleum Corporation, Term B Loan 0.075%, 05/16/21		99		95
Drillships Ocean Ventures Inc., Term Loan 0.038%, 01/31/20		99		46
Energy Transfer Equity, L.P., Term B Loan 0.085%, 12/22/16		1,175		1,049
Fieldwood Energy LLC, Closing Date Loan 0.045%, 05/08/19		397		258
Floatel Delaware LLC (Floatel International Ltd.), Initial Term Loan 0.075%, 02/14/19		98		43
Seadrill Operating LP (Seadrill Partners Finco LLC), Initial Term Loan 0.025%, 12/12/19		368		152
Targa Resources Corp., Term B Loan 5.750%, 02/12/22		28		27

				1,859

Personal Services — 0.0%
Ancestry.com Inc., Initial Term Loan 0.053%, 09/01/21		299		296


Description	Face Amount (000)		Value (000)
Match Group, Inc., Term B-1 Loan 0.040%, 10/31/19	$	125	$	123
Wash Multifamily Laundry Systems LLC, Initial Canadian Term Loan (First Lien) 0.055%, 07/30/21		4		4
Wash Multifamily Laundry Systems LLC., Initial US Term Loan (First Lien) 0.053%, 10/01/21		21		21

				444

Printing & Publishing — 0.1%
Merrill Communications LLC, Initial Term Loan 6.250%, 05/27/22		50		42
MGOC, Inc. (fka Media General, Inc.), Term B Loan 0.045%, 11/20/19		45		45
Springer SBM Two GmbH, Initial Term B9 Loan 0.045%, 03/13/20		323		308
Zebra Technologies Corporation, Initial Term Loan 0.060%, 05/31/21		185		185

				580

Professional & Business Services — 0.8%
Acosta, Inc. (fka Acosta Holdco, Inc.), Tranche B-1 Loan 0.043%, 09/26/21		297		282
Astro AB Borrower, Inc., Initial Term Loan (First Lien) 0.055%, 07/31/19		25		24
Bright Horizons Family Solutions, Inc., Term B Loan 0.000%, 01/30/20		980		975
CBS Outdoor Americas Capital LLC (CBS Outdoor Americas Capital Corporation), Term B Loan 0.030%, 05/03/20		938		925
Emerald Expositions Holding, Inc., Initial Term Loan 0.055%, 06/09/19		238		233
Extreme Reach, Inc., Initial Term Loan 0.050%, 06/24/19		421		412
Garda World Security Corporation, Term B Delayed Draw Loan 0.037%, 03/23/18		200		190
Garda World Security Corporation, Term B Loan 0.042%, 03/24/21		830		790
Getty Images, Inc., Term B Loan 0.103%, 08/21/18		682		425

The accompanying notes are an integral part of the financial statements.

102


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Grosvenor Capital Management, L.P., Initial Term Loan 3.750%, 01/04/21	$	914	$	879
Guggenheim Partners Investment Management Holdings, LLC, Initial Term Loan 4.250%, 10/01/16		543		539
Hamilton Lane Advisors LLC, Term B Loan 0.050%, 12/17/21		50		49
Harbourvest Partners LLC, New Term Loan 0.065%, 11/13/21		397		391
IG Investments Holdings LLC, Term B Loan 6.000%, 10/29/21		272		270
inVentiv Health, Inc. (f.k.a. Ventiv Health, Inc.), Term B-4 Loan 0.070%, 01/30/19		250		248
KC MergerSub, Inc., Initial Term Loan 0.065%, 10/19/22		125		122
PRA Holdings, Inc., Tranche B-1 Loan 0.095%, 10/22/21		289		285
Salient Partners L.P., Term Loan 7.500%, 06/09/21		74		71
Truven Health Analytics Inc. (fka Thomson Reuters Inc.), New Tranche B Term Loan 0.038%, 07/08/22		198		190

				7,300

Real Estate — 0.1%
Auction.com LLC, Term Loan 6.000%, 05/12/19		99		98
DTZ U.S. Borrower, LLC (DTZ AUS Holdco PTY Limited), 2015-1 Additional Term Loan (First Lien) 0.043%, 06/08/20		274		267
The Servicemaster Company, LLC, Initial Term Loan 0.055%, 12/20/20		694		685

				1,050

Retail Food & Drug — 0.2%
Albertson’s LLC, Term B-2 Loan 0.045%, 04/28/22		496		494
Albertson’s LLC, Term B-3 Loan 5.125%, 08/09/19		193		190
Albertson’s LLC, Term B-4 Loan 0.105%, 01/31/23		74		74


Description	Face Amount (000)		Value (000)
General Nutrition Centers, Inc., Amended Tranche B Term Loan 0.043%, 02/21/18	$	872	$	845
Supervalu Inc., New Term B Loan 0.043%, 07/01/21 (B)		595		586

				2,189

Retailing — 0.5%
1011778 B.C. Unlimited Liability Company (New Red Finance, Inc.) (aka Burger King/Tim Horton’s), Term B-2 Loan 0.038%, 12/10/21		775		768
99 Cents Only Stores, Term B-2 Loan 4.500%, 01/11/19		185		119
Ascena Retail Group, Inc. (Anntaylor Retail, Inc.) , Tranche B Term Loan 0.004%, 02/19/19		175		163
Bass Pro Group, LLC, New Tem Loan (2015) 0.105%, 09/22/17		247		237
Brickman Group Holdings, Inc., Initial Term Loan (First Lien) 0.055%, 11/15/21		490		474
Dollar Tree, Inc., Term B-1 Loan 0.060%, 12/30/16		258		257
Evergreen Acquisition Company 1 L.P., Term C Loan 5.000%, 09/09/19		150		122
J. Crew Group, Inc., Term Loan 0.035%, 03/17/21		246		159
Michaels Stores, Inc., Incremental 2014 Term Loan 0.048%, 06/07/20		61		60
Michaels Stores, Inc., Term B Loan 0.120%, 06/12/19		739		731
Party City Holdings Inc. (Party City Corporation), Term Loan 0.050%, 03/31/21		274		266
PetSmart, Inc., Tranche B-1 Loan 0.050%, 10/25/17		448		435
Pilot Travel Centers LLC, Refinancing Tranche B Term Loan 0.050%, 11/27/20		127		127
The Men’s Wearhouse, Inc., Tranche B Term Loan 0.053%, 04/15/22		78		69
The Neiman Marcus Group Inc., Other Term Loan 0.040%, 01/28/20		397		350

				4,337

The accompanying notes are an integral part of the financial statements.

103


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Securities & Trusts — 0.1%
AlixPartners, LLP, Term B Loan 0.064%, 08/13/18	$	50	$	50
Assured Partners Inc., Term Loan (First Lien) 5.750%, 10/14/22		75		74
Clipper Acquisitions Corp., Term B Loan 0.083%, 06/02/20		461		447
Corporate Capital Trust Inc., Initial Term B Loan 0.058%, 11/09/18		74		73

				644

Shipping & Ship Building — 0.0%
Stena International S.a r.l, Term B Loan 4.000%, 03/03/21		172		144

Steel — 0.1%
FMG Resources (August 2006) Property Limited (FMG America Finance, Inc.), Term Loan 0.033%, 12/31/18		980		724
JMC Steel Group, Inc., Initial Term Loan 0.053%, 08/14/20		246		236

				960

Telecommunications — 0.2%
Commscope, Inc., Tranche 5 Term Loan 0.040%, 09/10/20		100		99
Intelsat Jackson Holdings , Ltd., Tranche B-2 Term Loan 0.045%, 11/28/21 (B)		1,000		944
IPC Corp., Term B-1 Loan 0.045%, 08/15/20		149		139
Mitel US Holdings, Inc., Term Loan 0.055%, 02/15/18		274		270
SBA Senior Finance II LLC, Incremental Tranche B-1 Term Loan 0.098%, 07/01/22		197		193
Syniverse Holdings, Inc., Term B Loan 4.000%, 04/23/19		400		289

				1,934

Transportation — 0.1%
Envision Healthcare Corporation (fka Emergency Medical Services Corporation), Initial Term Loan
0.038%, 09/26/22		979		971


Description	Face Amount (000)		Value (000)
Kenan Advantage Group Holdings Corp., Delayed Draw Term 1 Loan 0.055%, 08/06/21	$	5	$	5
Kenan Advantage Group Holdings Corp., Initial Canadian Term Loan 0.105%, 02/04/22		11		11
Kenan Advantage Group Holdings Corp., Initial U.S. Term Loan 0.060%, 04/01/21		34		34
Travelport Finance (Luxembourg) S.à r.l., Initial Term Loan 0.070%, 05/14/19		248		242

				1,263

Utilities — 0.3%
Calpine Construction Finance Company, L.P., Term B-2 Loan 0.055%, 08/14/20		980		926
Calpine Corporation, Term Loan 0.113%, 10/31/16		299		284
Dynegy Holdings Inc., Tranche B-2 Term Loan 0.043%, 03/11/21		490		472
Energy Future Intermediate Holding Company LLC (EFIH Finance Inc.), Term Loan 0.085%, 12/22/16		150		149
Granite Acquisition, Inc., Term B Loan 0.043%, 11/01/19		213		190
Granite Acquisition, Inc., Term C Loan 0.048%, 08/06/21		9		8
La Frontera Generation, LLC, Term Loan 0.028%, 03/31/18		338		318
Longview Power LLC, Term B Loan 7.000%, 04/13/21		199		171
TPF II Power, LLC (TPF II Covert Midco, LLC), Term Loan 0.048%, 08/14/20		123		120
Viva Alamo LLC, Initial Term Loan 0.085%, 11/25/20		248		186

				2,824

Total Loan Participations (Cost $88,578) (000)				83,848

SOVEREIGN DEBT — 7.6%
Argentine Republic Government International Bond 8.750%, 06/02/17 (F)		240		274
8.280%, 12/31/33 (F)		1,252		1,440
3.750%, 03/31/19 (C) (F)		1,369		856
Armenia International Bond 7.150%, 03/26/25 (A)		490		474
6.000%, 09/30/20 (A)		1,181		1,145

The accompanying notes are an integral part of the financial statements.

104


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Banco Nacional de Desenvolvimento Economico e Social 6.500%, 06/10/19 (A)	$	560	$	547
Banque Centrale de Tunisie 5.750%, 01/30/25 (A)		1,230		1,065
Brazilian Government International Bond 4.250%, 01/07/25		835		672
2.625%, 01/05/23		400		304
Canada Government International Bond 1.625%, 02/27/19		100		100
1.125%, 03/19/18		150		150
Chile Government International Bond 3.250%, 09/14/21		100		104
Colombia Government International Bond 7.375%, 03/18/19		380		421
6.125%, 01/18/41		520		502
5.625%, 02/26/44		200		182
5.000%, 06/15/45		260		217
4.375%, 07/12/21		200		201
4.000%, 02/26/24		345		329
Costa Rica Government International Bond 7.158%, 03/12/45 (A)		400		335
7.000%, 04/04/44 (A)		420		350
Croatia Government International Bond 6.750%, 11/05/19		1,255		1,344
6.375%, 03/24/21 (A)		460		489
Dominican Republic International Bond 7.500%, 05/06/21 (A)		1,130		1,212
7.450%, 04/30/44 (A)		1,025		1,033
6.850%, 01/27/45 (A)		250		236
6.600%, 01/28/24 (A)		290		301
5.500%, 01/27/25 (A)		630		606
Ecuador Government International Bond
10.500%, 03/24/20 (A)		330		266
7.950%, 06/20/24 (A)		450		332
Egypt Government International Bond 5.875%, 06/11/25 (A)		510		442
El Salvador Government International Bond 7.375%, 12/01/19 (A)		215		214
6.375%, 01/18/27 (A)		150		127
5.875%, 01/30/25 (A)		365		305
Export Development Canada 1.000%, 05/15/17		400		397
Export-Import Bank of Korea 4.000%, 01/11/17		400		415
Georgia Government International Bond 6.875%, 04/12/21 (A)		860		889


Description	Face Amount (000)⁽¹⁾		Value (000)
Ghana Government International Bond 10.750%, 10/14/30 (A)		420	$	426
8.125%, 01/18/26 (A)		910		710
7.875%, 08/07/23 (A)		240		189
Guatemala Government Bond 5.750%, 06/06/22 (A)		420		440
Hashemite Kingdom of Jordan Government AID Bond 2.503%, 10/30/20		200		205
Honduras Government International Bond 8.750%, 12/16/20 (A)		725		801
7.500%, 03/15/24 (A)		325		342
Hungary Government International Bond 6.250%, 01/29/20		500		559
5.375%, 03/25/24		260		285
4.125%, 02/19/18		760		791
Hydro-Quebec 1.375%, 06/19/17		200		200
India Government International Bond 7.160%, 05/20/23	(INR)	26,000		377
Indonesia Government International Bond 8.500%, 10/12/35 (A)		800		995
5.875%, 01/15/24 (A)		600		643
5.375%, 10/17/23 (A)		200		208
5.250%, 01/17/42 (A)		200		180
4.125%, 01/15/25 (A)		650		623
Israel Government International Bond 3.150%, 06/30/23		200		203
Italy Government International Bond 5.375%, 06/12/17		200		210
Ivory Coast Government International Bond 6.375%, 03/03/28 (A)		435		396
5.750%, 12/31/32 (A)		1,020		907
Jamaica Government International Bond 7.875%, 07/28/45		300		292
7.625%, 07/09/25		470		498
6.750%, 04/28/28		720		715
Japan Bank for International Cooperation 1.750%, 11/13/18		400		394
KazAgro National Management Holding 4.625%, 05/24/23 (A)		300		258
Kazakhstan Government International Bond 6.500%, 07/21/45 (A)		680		668

The accompanying notes are an integral part of the financial statements.

105


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)⁽¹⁾		Value (000)
Kenya Government International Bond 6.875%, 06/24/24 (A)		495	$	433
5.875%, 06/24/19 (A)		1,158		1,092
Korea Development Bank 2.500%, 03/11/20		200		201
Korea International Bond 7.125%, 04/16/19		100		116
Lithuania Government International Bond 6.125%, 03/09/21 (A)		200		230
Macedonia Government International Bond 4.875%, 12/01/20 (A)		(EUR) 300		322
Mexico Government International Bond 6.050%, 01/11/40		160		175
5.625%, 01/15/17		150		156
5.550%, 01/21/45		348		357
4.750%, 03/08/44		344		313
4.600%, 01/23/46		240		212
4.000%, 10/02/23		400		405
3.500%, 01/21/21		250		254
Mongolia Government International Bond 5.125%, 12/05/22 (A)		400		317
4.125%, 01/05/18 (A)		220		201
Morocco Government International Bond 4.250%, 12/11/22 (A)		200		198
Nigeria Government International Bond 6.750%, 01/28/21 (A)		310		288
Pakistan Government International Bond 8.250%, 04/15/24 (A)		650		662
7.250%, 04/15/19 (A)		440		451
Panama Government International Bond 9.375%, 04/01/29		290		418
6.700%, 01/26/36		1,395		1,656
5.200%, 01/30/20		2,281		2,475
3.750%, 03/16/25		365		358
Peruvian Government International Bond 7.350%, 07/21/25		300		376
6.550%, 03/14/37		800		924
5.625%, 11/18/50		420		429
Philippine Government International Bond 7.750%, 01/14/31		529		743
6.375%, 10/23/34		810		1,056
4.200%, 01/21/24		200		217
Poland Government International Bond 6.375%, 07/15/19		200		228
4.000%, 01/22/24		335		352
3.000%, 03/17/23		440		436


Description	Face Amount (000)⁽¹⁾		Value (000)
Province of British Columbia Canada 1.200%, 04/25/17		200	$	200
Province of Manitoba Canada 1.125%, 06/01/18		100		99
Province of Ontario Canada 2.450%, 06/29/22		200		198
2.000%, 01/30/19		250		251
1.875%, 05/21/20		150		149
Province of Quebec Canada 2.875%, 10/16/24		100		101
2.625%, 02/13/23		200		198
Republic of Azerbaijan International Bond 4.750%, 03/18/24 (A)		450		420
Republic of Paraguay 6.100%, 08/11/44 (A)		570		544
4.625%, 01/25/23 (A)		240		233
Romanian Government International Bond 6.750%, 02/07/22 (A)		840		987
6.125%, 01/22/44 (A)		300		350
4.875%, 01/22/24 (A)		690		740
4.375%, 08/22/23 (A)		890		926
Russian Federal Bond-OFZ 7.500%, 02/27/19		(RUB) 31,000		399
Russian Foreign Bond-Eurobond 5.625%, 04/04/42 (A)		400		378
Senegal Government International Bond 8.750%, 05/13/21 (A)		825		862
6.250%, 07/30/24 (A)		740		659
Serbia International Bond 5.875%, 12/03/18 (A)		590		620
5.250%, 11/21/17 (A)		410		426
South Africa Government International Bond 5.875%, 05/30/22		690		716
5.500%, 03/09/20		150		154
Sri Lanka Government International Bond 6.850%, 11/03/25 (A)		490		461
6.250%, 10/04/20 (A)		530		508
6.000%, 01/14/19 (A)		310		304
5.875%, 07/25/22 (A)		1,055		963
5.125%, 04/11/19 (A)		310		294
Tanzania Government International Bond 6.538%, 03/09/20 (B)		1,290		1,216
Turkey Government International Bond 8.000%, 02/14/34		386		483
7.500%, 07/14/17		150		160
7.375%, 02/05/25		540		631
7.000%, 03/11/19		100		109
6.875%, 03/17/36		480		538

The accompanying notes are an integral part of the financial statements.

106


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
5.750%, 03/22/24	$	200	$	211
4.875%, 04/16/43		240		211
Ukraine Government International Bond 7.750%, 09/01/20 (A)		1,300		1,173
3.365%, 05/31/40 (A)(B)		314		124
Uruguay Government International Bond 5.100%, 06/18/50		1,088		938
4.500%, 08/14/24		904		918
4.375%, 10/27/27		1,310		1,287
Venezuela Government International Bond 9.250%, 09/15/27		180		74
7.650%, 04/21/25		652		241
7.000%, 03/31/38		222		83
6.000%, 12/09/20		680		253
Vietnam Government International Bond 6.750%, 01/29/20 (A)		200		219
4.800%, 11/19/24 (A)		1,115		1,071
Zambia Government International Bond 8.970%, 07/30/27 (A)		570		449
8.500%, 04/14/24 (A)		905		718

Total Sovereign Debt (Cost $72,974) (000)				70,089

ASSET-BACKED SECURITIES — 4.9%
Automotive — 3.9%
Ally Auto Receivables Trust, Ser 2015-2, Cl A4 1.840%, 06/15/20-06/15/20		492		490
1.490%, 11/15/19-11/15/19		345		343
1.390%, 09/16/19-09/16/19		813		811
AmeriCredit Automobile Receivables, Ser 2015-4, Cl A3 1.700%, 07/08/20-07/08/20		420		418
1.026%, 04/08/19-04/08/19 (B)		1,377		1,377
AmeriCredit Automobile Receivables Trust, Ser 2014-3, Cl B 1.920%, 11/08/19-11/08/19		320		320
California Republic Auto Receivables Trust, Ser 2015-3, Cl A3 1.620%, 11/15/19-11/15/19		948		943
1.570%, 12/16/19-12/16/19		1,382		1,371
1.310%, 08/15/19-08/15/19		1,725		1,712
Carfinance Capital Auto Trust, Ser 2014-1A, Cl A 1.460%, 12/17/18-12/17/18 (A)		19		19
CarFinance Capital Auto Trust, Ser 2015-1A, Cl A 1.750%, 06/15/21-06/15/21 (A)		529		525


Description	Face Amount (000)		Value (000)
CarMax Auto Owner Trust, Ser 2015-2, Cl A4 1.800%, 03/15/21-03/15/21	$	945	$	938
1.560%, 11/16/20-11/16/20		1,641		1,625
CPS Auto Receivables Trust, Ser 2015-C, Cl A 1.770%, 06/17/19-06/17/19 (A)		1,127		1,124
1.640%, 04/16/18-04/16/18 (A)		52		51
1.210%, 08/15/18-08/15/18 (A)		24		24
Drive Auto Receivables Trust, Ser 2015-DA, Cl A2A 1.230%, 06/15/18-06/15/18 (A)		1,621		1,619
1.001%, 02/15/18-02/15/18 (A)(B)		786		786
0.930%, 12/15/17-12/15/17 (A)		763		763
DT Auto Owner Trust, Ser 2015-3A, Cl A 1.660%, 03/15/19-03/15/19 (A)		1,365		1,361
Exeter Automobile Receivables Trust, Ser 2014-3A, Cl A 1.320%, 01/15/19-01/15/19 (A)		778		776
1.290%, 05/15/18-05/15/18 (A)		27		27
1.060%, 08/15/18-08/15/18 (A)		15		15
Flagship Credit Auto Trust, Ser 2015-3, Cl A 2.380%, 10/15/20-10/15/20 (A)		406		404
1.980%, 10/15/20-10/15/20 (A)		789		785
1.210%, 04/15/19-04/15/19 (A)		249		249
Ford Credit Auto Owner Trust, Ser 2015-C, Cl A4 1.740%, 02/15/21-02/15/21		891		885
1.580%, 08/15/20-08/15/20		1,544		1,533
1.410%, 02/15/20-02/15/20		543		541
Ford Credit Floorplan Master Owner Trust, Ser 2015-5, Cl A 2.420%, 08/15/22-08/15/22		503		500
Honda Auto Receivables Owner Trust, Ser 2015-3, Cl A4 1.560%, 10/18/21-10/18/21		710		706
1.230%, 09/23/19-09/23/19		1,030		1,022
Hyundai Auto Receivables Trust, Ser 2015-C, Cl A3 1.460%, 02/18/20-02/18/20		325		324
1.050%, 04/15/19-04/15/19		1,098		1,094
0.690%, 04/16/18-04/16/18		1,861		1,857
Nissan Auto Receivables Owner Trust, Ser 2015-C, Cl A3 1.370%, 05/15/20-05/15/20		934		927
1.110%, 05/15/19-05/15/19		884		882
Santander Drive Auto Receivables Trust, Ser 2015-4, Cl C 2.970%, 03/15/21-03/15/21		683		682
2.740%, 12/15/21-12/15/21		251		249
2.440%, 04/15/21-04/15/21		324		322
2.070%, 04/15/20-04/15/20		807		805
1.830%, 01/15/20-01/15/20		991		986

The accompanying notes are an integral part of the financial statements.

107


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
1.820%, 05/15/19-05/15/19	$	112	$	112
1.200%, 12/17/18-12/17/18		1,420		1,416
1.081%, 12/17/18-12/17/18 (B)		675		675
0.651%, 01/16/18-01/16/18 (B)		239		239
USAA Auto Owner Trust, Ser 2015-1, Cl A3 1.200%, 06/17/19-06/17/19		600		598
World Omni Auto Receivables Trust, Ser 2014-B, Cl A4 1.680%, 12/15/20-12/15/20		971		970

				36,201

Credit Cards — 0.7%
BA Credit Card Trust, Ser 2015-A2, Cl A 1.360%, 09/15/20-09/15/20		845		840
Capital One Multi-Asset Execution Trust, Ser 2015-A7, Cl A7 1.450%, 08/16/21-08/16/21		1,379		1,367
0.691%, 06/15/22-06/15/22		400		400
0.371%, 07/15/20-07/15/20 (B)		1,292		1,285
Chase Issuance Trust, Ser 2015-A2, Cl A2 1.590%, 02/18/20-02/18/20		1,250		1,250
Discover Card Execution Note Trust, Ser 2015-A2, Cl A 1.900%, 10/17/22-10/17/22		848		834
Synchrony Credit Card Master Note Trust, Ser 2015-3, Cl A 1.740%, 09/15/21-09/15/21		431		428
World Financial Network Credit Card Master Trust, Ser 2015-A, Cl A 0.811%, 02/15/22-02/15/22(B)		408		406

				6,810

Other Asset-Backed Securities — 0.3%
Oak Hill Advisors Residential Loan Trust, Ser 2015-NPL2, Cl A1 3.721%, 07/25/55-07/25/55 (A)		534		528
US Residential Opportunity Fund Trust, Ser 2015-1IV, Cl A 3.721%, 01/27/35-02/27/35 (A)		606		602
VOLT XXII, Ser 2015-NPL4, Cl A1 3.500%, 02/25/55-02/25/55 (A)		301		297
VOLT XXX, Ser 2015-NPL1, Cl A1 3.625%, 10/25/57-10/25/57 (A)		649		647
VOLT XXXI, Ser 2015-NPL2, Cl A1 3.375%, 02/25/55-02/25/55 (A)		451		445

				2,519

Total Asset-Backed Securities (Cost $45,735) (000)				45,530


Description	Face Amount (000)/Shares		Value (000)
U.S. GOVERNMENT AGENCY OBLIGATIONS — 1.9%
FFCB 4.875%, 01/17/17-01/17/17	$	200	$	208
1.100%, 03/14/18-06/01/18		350		349
FHLB 4.875%, 05/17/17-05/17/17		400		421
4.125%, 03/13/20-03/13/20		750		822
1.000%, 06/21/17-12/19/17		765		764
0.625%, 10/26/17-10/26/17		350		347
FHLMC 6.250%, 07/15/32-07/15/32		674		937
5.000%, 02/16/17-02/16/17		850		889
2.375%, 01/13/22-01/13/22		2,130		2,160
2.100%, 12/30/20-12/30/20		200		200
1.500%, 12/14/18-12/14/18		100		100
1.250%, 10/02/19-10/02/19		200		197
1.050%, 05/17/18-05/17/18		250		248
1.000%, 03/08/17-12/15/17		1,900		1,900
0.875%, 02/22/17-02/22/17		300		300
0.750%, 01/12/18-01/12/18		250		248
FNMA 5.000%, 05/11/17-05/11/17		750		790
2.625%, 09/06/24-09/06/24		1,189		1,201
1.875%, 02/19/19-12/28/20		631		638
1.750%, 06/20/19-11/25/20		450		452
1.500%, 06/22/20-11/30/20		627		618
1.125%, 07/20/18-07/20/18		250		249
0.875%, 02/08/18-05/21/18		1,000		992
0.750%, 04/20/17-04/20/17		1,000		997
Tennessee Valley Authority 4.250%, 09/15/65-09/15/65		742		725
3.500%, 12/15/42-12/15/42		750		692

Total U.S. Government Agency Obligations (Cost $17,253) (000)				17,444

MUNICIPAL BONDS — 0.4%
Florida State, Hurricane Catastrophe Fund RB 2.995%, 07/01/20		150		152
Illinois State GO 5.665%, 03/01/18		200		211
5.100%, 06/01/33		1,210		1,145
New Jersey State, Transportation Trust Fund RB 5.754%, 12/15/28		900		936
New York State, Metropolitan Transportation Authority RB 6.814%, 11/15/40		485		642
University of California RB 4.767%, 05/15/15		489		459

Total Municipal Bonds (Cost $3,585) (000)				3,545

COMMON STOCK — 0.0%
Education Management* (D)		1,549,179		—
Millenium Health LLC*		6,690		58

Total Common Stock (Cost $122) (000)				58

The accompanying notes are an integral part of the financial statements.

108


THE KP FUNDS		December 31, 2015


KP Fixed Income Fund


Description	Shares		Value (000)
PREFERRED STOCK — 0.0%
Education Management, 7.500%* (D)		1,724	$	23

Total Preferred Stock (Cost $122) (000)				23

SHORT-TERM INVESTMENT — 8.7%
State Street Institutional Liquid Reserves Fund, Institutional Class, 0.000%, (G)		79,750,255		79,750

Total Short-Term Investment (Cost $79,750) (000)				79,750

Total Investments — 107.9% (Cost $1,008,087) (000)			$	992,958

Percentages are based on net assets of $920,322 (000).

A list of the open forward foreign currency contracts held by the Fund at December 31, 2015 is as follows (000):

Counter-
party

Maturity
Date

Currency
to Deliver

Currency
to Receive

Unrealized
Apprecia-
tion/
(Deprecia-
tion)

HSBC

1/21/16

USD 632

COP 2,016,000

HSBC

1/21/16

COP 2,016,000

USD 660

BNP Paribas

1/28/16

EUR 1,365

USD 1,465

(20

)

Barclays

2/12/16

TRY 1,312

USD 438

)

Barclays

2/18/16

KRW 523

USD 449

Credit
Suisse

2/19/16

MXN 8,730

USD 517

Barclays

2/24/16

CNY 5,786

USD 880

For the year ended December 31, 2015, the average monthly notional forward foreign currency contracts purchased and sold were $2,146 and $(5,852), respectively.

‡	Real Estate Investment Trust

(1)

In U.S. Dollars unless otherwise indicated.

(A)

(B)

Variable rate security — Rate disclosed is the rate in effect on December 31, 2015.

(C)

Step Bonds — The rate reflected on the Schedule of Investments is the effective yield on December 31, 2015. The coupon on a step bond changes on a specified date.

(D)

(E)

Unsettled bank loan. Interest rate not available.

(F)

Security in default on interest payments.

(G)

The rate reported is the 7-day effective yield as of December 31, 2015.

(H)

Unfunded bank loan.

— Class

CNY

— Chinese Yuan

COP

— Colombian Peso

EUR

— Euro

FFCB

— Federal Farm Credit Bank

FHLB

— Federal Home Loan Bank

FHLMC

— Federal Home Loan Mortgage Corporation

FNMA

— Federal National Mortgage Association

GNMA

— Government National Mortgage Association

GO	— General Obligation

INR

— Indian Rupee

KRW

— Korean Won

LLC

— Limited Liability Company

LP	— Limited Partnership

Ltd.

— Limited

MXN

— Mexican Peso

RB	— Revenue Bond

RUB

— Russian Ruble

Ser

— Series

TRY

— Turkish Lira

USD

— U.S. Dollar

The following is a list of the level of inputs used as of December 31, 2015, in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1		Level 2			Level 3‡		Total
Corporate Obligations	$	—	$	270,274		$	—	$	270,274
U.S. Treasury Obligations		—		268,266			—		268,266
Mortgage-Backed Securities		—		154,131			—		154,131
Loan Participations		—		83,329			519		83,848
Sovereign Debt		—		70,089			—		70,089
Asset-Backed Securities		—		45,530			—		45,530
U.S. Government Agency Obligations		—		17,444			—		17,444
Municipal Bonds		—		3,545			—		3,545
Common Stock		58		—			—		58
Preferred Stock		—		—			23		23
Short-Term Investment		79,750		—			—		79,750

Total Investments in Securities	$	79,808	$	912,608		$	542	$	992,958


Other Financial Instruments	Level 1		Level 2			Level 3‡		Total
Forward Currency Contracts*
Unrealized Appreciation	$	—	$	52		$	—	$	52
Unrealized Depreciation		—		(26	)		—		(26	)

Total Other Financial Instruments	$	—	$	26		$	—	$	26

‡

*	Forward foreign currency contracts are valued at the unrealized appreciation/(depreciation) on the instrument.

For the year ended December 31, 2015, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended December 31, 2015, there was a transfer between Level 2 and Level 3 assets and liabilities. Changes in the classification between Level 2 and Level 3 are due to the availability of observable inputs to determine value. For the year ended December 31, 2015, securities with the total market value of $542 (000) were transferred between Level 2 and Level 3. All transfers, if any, are recognized by the Fund at the end of the year.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

109


THE KP FUNDS		December 31, 2015

STATEMENTS OF ASSETS AND LIABILITIES (000)


		KP Retirement Path 2015 Fund			KP Retirement Path 2020 Fund			KP Retirement Path 2025 Fund			KP Retirement Path 2030 Fund

Assets:
Affiliated Investments at Cost		$	294,387		$	483,621		$	551,875		$	552,077
Unaffiliated Investments at Cost			194,947			233,272			178,451			100,317

Affiliated Investments at Fair Value		$	292,857		$	480,542		$	546,170		$	543,966
Unaffiliated Investments at Fair Value			190,464			227,248			172,634			95,245
Income Distributions Receivable			115			132			99			48
Receivable for Investment Securities Sold			4			137			—			107
Receivable for Capital Shares Sold			—			—			98			—
Prepaid Expenses			21			29			29			26

Total Assets			483,461			708,088			719,030			639,392

Liabilities:	��
Payable for Investment Securities Purchased			115			132			191			48
Payable due to Administrator			11			15			16			14
Payable due to Adviser			8			9			7			4
Chief Compliance Officer Fees Payable			1			2			2			2
Payable for Capital Shares Redeemed			—			132			—			102
Other Accrued Expenses			34			52			56			49

Total Liabilities			169			342			272			219

Net Assets		$	483,292		$	707,746		$	718,758		$	639,173

NET ASSETS:
Paid-in Capital		$	487,934		$	713,944		$	725,579		$	646,665
Undistributed Net Investment Income			—			—			—			—
Accumulated Net Realized Gain on Investments			1,371			2,905			4,701			5,691
Net Unrealized Depreciation on Investments			(6,013	)		(9,103	)		(11,522	)		(13,183	)

Net Assets		$	483,292		$	707,746		$	718,758		$	639,173

Institutional Class Shares:
Net Assets		$	483,292		$	707,746		$	718,758		$	639,173
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†			49,526,155			72,066,925			73,248,664			65,522,189
Net Asset Value, Offering and Redemption Price Per Share*		$	9.76		$	9.82		$	9.81		$	9.76

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

110


THE KP FUNDS		December 31, 2015

STATEMENTS OF ASSETS AND LIABILITIES (000)


	KP Retirement Path 2035 Fund			KP Retirement Path 2040 Fund			KP Retirement Path 2045 Fund

Assets:
Affiliated Investments at Cost	$	640,086		$	585,517		$	401,671
Unaffiliated Investments at Cost		66,316			39,543			22,321

Affiliated Investments at Fair Value	$	629,974		$	574,940		$	392,825
Unaffiliated Investments at Fair Value		61,976			36,728			20,683
Receivable for Investment Securities Sold		87			2			118
Income Distributions Receivable		29			14			8
Receivable for Capital Shares Sold		—			3			—
Prepaid Expenses		28			24			17

Total Assets		692,094			611,711			413,651

Liabilities:
Payable for Capital Shares Redeemed		82			—			115
Payable for Investment Securities Purchased		29			14			8
Payable due to Administrator		15			13			9
Payable due to Adviser		3			2			1
Chief Compliance Officer Fees Payable		2			2			1
Other Accrued Expenses		53			47			32

Total Liabilities		184			78			166

Net Assets	$	691,910		$	611,633		$	413,485

NET ASSETS:
Paid-in Capital	$	699,372		$	618,268		$	419,217
Undistributed Net Investment Income		—			—			—
Accumulated Net Realized Gain on Investments		6,990			6,757			4,752
Net Unrealized Depreciation on Investments		(14,452	)		(13,392	)		(10,484	)

Net Assets	$	691,910		$	611,633		$	413,485

Institutional Class Shares:
Net Assets	$	691,910		$	611,633		$	413,485
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		70,960,951			62,703,883			42,452,538
Net Asset Value, Offering and Redemption Price Per Share*	$	9.75		$	9.75		$	9.74

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

111


THE KP FUNDS		December 31, 2015

STATEMENTS OF ASSETS AND LIABILITIES (000)


	KP Retirement Path 2050 Fund			KP Retirement Path 2055 Fund			KP Retirement Path 2060 Fund

Assets:
Affiliated Investments at Cost	$	168,993		$	27,151		$	5,746
Unaffiliated Investments at Cost		9,379			1,474			302

Affiliated Investments at Fair Value	$	163,587		$	25,719		$	5,458
Unaffiliated Investments at Fair Value		8,682			1,371			290
Income Distributions Receivable		4			1			—
Receivable for Capital Shares Sold		1			—			—
Receivable for Investment Securities Sold		—			10			—
Prepaid Expenses		6			1			—

Total Assets		172,280			27,102			5,748

Liabilities:
Payable for Investment Securities Purchased		4			1			—
Payable due to Administrator		4			1			—
Payable due to Adviser		—			—			—
Payable for Capital Shares Redeemed		—			10			—
Other Accrued Expenses		15			2			—

Total Liabilities		23			14			—

Net Assets	$	172,257		$	27,088		$	5,748

NET ASSETS:
Paid-in Capital	$	176,529		$	28,377		$	6,140
Undistributed Net Investment Income		—			—			—
Accumulated Net Realized Gain/(Loss) on Investments		1,831			246			(92	)
Net Unrealized Depreciation on Investments		(6,103	)		(1,535	)		(300	)

Net Assets	$	172,257		$	27,088		$	5,748

Institutional Class Shares:
Net Assets	$	172,257		$	27,088		$	5,748
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		17,658,454			2,792,582			587,854
Net Asset Value, Offering and Redemption Price Per Share*	$	9.75		$	9.70		$	9.78

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

112


THE KP FUNDS		December 31, 2015

STATEMENTS OF ASSETS AND LIABILITIES (000)


	KP Large Cap Equity Fund			KP Small Cap Equity Fund			KP International Equity Fund			KP Fixed Income Fund

Assets:
Investments at Cost	$	1,156,120		$	821,686		$	1,084,244		$	1,008,087
Cost of Foreign Currency		—			1			6,194			23

Investments at Fair Value	$	1,242,330		$	780,624		$	1,017,798		$	992,958
Cash		9			—			14			2,084
Foreign Currency at Value		—			1			6,197			22
Dividends and Interest Receivable		1,237			703			1,144			5,289
Receivable for Investment Securities Sold		1,232			1,150			241			32,819
Cash Collateral for Futures Contracts		428			356			1,508			—
Receivable from Broker		—			—			350			—
Reclaims Receivable		116			3			1,168			6
Receivable for Capital Shares Sold		22			700			16			37
Unrealized Appreciation on Forward Foreign Currency Contracts		—			—			—			52
Prepaid Expenses		7			10			5			5

Total Assets		1,245,381			783,547			1,028,441			1,033,272

Liabilities:
Payable for Investment Securities Purchased		4,972			2,052			87			112,419
Payable due to Sub-Advisers		247			280			287			155
Payable due to Adviser		52			34			43			39
Payable for Capital Shares Redeemed		133			52			114			128
Variation Margin Payable		89			74			385			—
Payable due to Administrator		40			25			33			29
Chief Compliance Officer Fees Payable		2			2			2			2
Payable for Trustees’ Fees		1			—			—			—
Unrealized Depreciation on Forward Foreign Currency Contracts		—			—			—			26
Accrued Foreign Capital Gains Tax		—			—			242			—
Other Accrued Expenses		149			176			335			152

Total Liabilities		5,685			2,695			1,528			112,950

Net Assets	$	1,239,696		$	780,852		$	1,026,913		$	920,322

NET ASSETS:
Paid-in Capital	$	1,150,171		$	832,595		$	1,114,662		$	937,998
Undistributed/(Distributions in Excess of) Net Investment Income		—			(1	)		(1,724	)		3
Accumulated Net Realized Gain/(Loss) on Investments		3,285			(10,673	)		(19,279	)		(2,575	)
Net Unrealized Appreciation/(Depreciation) on Investments		86,210			(41,062	)		(66,446	)		(15,129	)
Net Unrealized Appreciation/(Depreciation) on Futures Contracts		38			(7	)		48			—
Net Unrealized Appreciation/(Depreciation) on Foreign Currency Contracts and Foreign Currency Translation		(8	)		—			(106	)		25
Accumulated Foreign Capital Gains Tax on Appreciated Securities		—			—			(242	)		—

Net Assets	$	1,239,696		$	780,852		$	1,026,913		$	920,322

Institutional Class Shares:
Net Assets	$	1,239,696		$	780,852		$	1,026,913		$	920,322
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		117,392,550			81,781,894			116,173,468			94,039,520
Net Asset Value, Offering and Redemption Price Per Share*	$	10.56		$	9.55		$	8.84		$	9.79

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

113


THE KP FUNDS		For the year ended December 31, 2015

STATEMENTS OF OPERATIONS (000)


	KP Retirement Path 2015 Fund			KP Retirement Path 2020 Fund			KP Retirement Path 2025 Fund			KP Retirement Path 2030 Fund

Investment Income:
Income Distributions from Affiliated Registered Investment Companies	$	5,417		$	8,576		$	9,421		$	9,179
Income Distributions from Unaffiliated Registered Investment Companies		2,398			3,000			2,604			1,899

Total Investment Income		7,815			11,576			12,025			11,078

Expenses:
Administration Fees		131			181			179			160
Investment Advisory Fees		98			110			81			45
Trustees’ Fees		12			16			16			14
Chief Compliance Officer Fees		5			7			7			6
Custodian Fees/Transfer Agent Fees		58			81			81			71
Registration Fees		36			52			54			47
Professional Fees		30			43			43			39
Printing Fees		13			18			18			16
Offering Costs		2			2			2			2
Other Fees		7			10			10			9

Total Expenses		392			520			491			409

Net Investment Income		7,423			11,056			11,534			10,669

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Affiliated Investments		4,371			2,857			1,874			1,735
Net Realized Loss on Unaffiliated Investments		(1,351	)		(1,480	)		(817	)		(42	)
Distributions of Realized Gains from Affiliated Registered Investment Companies		4,394			7,543			9,051			9,206
Distributions of Realized Gains from Unaffiliated Registered Investment Companies		259			345			315			248
Net Change in Unrealized Depreciation on Affiliated Investments		(10,826	)		(16,868	)		(20,746	)		(22,542	)
Net Change in Unrealized Depreciation on Unaffiliated Investments		(3,339	)		(4,970	)		(5,092	)		(4,596	)

Net Realized and Unrealized Loss on Investments		(6,492	)		(12,573	)		(15,415	)		(15,991	)

Net Increase/(Decrease) in Net Assets Resulting from Operations	$	931		$	(1,517	)	$	(3,881	)	$	(5,322	)

The accompanying notes are an integral part of the financial statements.

114


THE KP FUNDS		For the year ended December 31, 2015

STATEMENTS OF OPERATIONS (000)


	KP Retirement Path 2035 Fund			KP Retirement Path 2040 Fund			KP Retirement Path 2045 Fund

Investment Income:
Income Distributions from Affiliated Registered Investment Companies	$	10,428		$	9,382		$	6,462
Income Distributions from Unaffiliated Registered Investment Companies		1,517			956			535

Total Investment Income		11,945			10,338			6,997

Expenses:
Administration Fees		173			152			101
Investment Advisory Fees		29			18			10
Trustees’ Fees		15			13			9
Chief Compliance Officer Fees		7			6			4
Custodian Fees/Transfer Agent Fees		78			68			45
Registration Fees		51			45			31
Professional Fees		42			37			25
Printing Fees		17			15			10
Offering Costs		2			1			1
Other Fees		9			8			5

Total Expenses		423			363			241

Net Investment Income		11,522			9,975			6,756

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Affiliated Investments		1,843			1,835			1,606
Net Realized Gain on Unaffiliated Investments		236			122			73
Distributions of Realized Gains from Affiliated Registered Investment Companies		11,162			10,559			7,364
Distributions of Realized Gains from Unaffiliated Registered Investment Companies		207			132			73
Net Change in Unrealized Depreciation on Affiliated Investments		(27,347	)		(25,947	)		(18,503	)
Net Change in Unrealized Depreciation on Unaffiliated Investments		(4,048	)		(2,593	)		(1,482	)

Net Realized and Unrealized Loss on Investments		(17,947	)		(15,892	)		(10,869	)

Net Decrease in Net Assets Resulting from Operations	$	(6,425	)	$	(5,917	)	$	(4,113	)

The accompanying notes are an integral part of the financial statements.

115


THE KP FUNDS		For the year ended December 31, 2015

STATEMENTS OF OPERATIONS (000)


	KP Retirement Path 2050 Fund			KP Retirement Path 2055 Fund			KP Retirement Path 2060 Fund

Investment Income:
Income Distributions from Affiliated Registered Investment Companies	$	2,637		$	412		$	86
Income Distributions from Unaffiliated Registered Investment Companies		214			31			6

Total Investment Income		2,851			443			92

Expenses:
Administration Fees		39			5			1
Investment Advisory Fees		4			1			—
Trustees’ Fees		3			—			—
Chief Compliance Officer Fees		2			—			—
Custodian Fees/Transfer Agent Fees		17			2			1
Registration Fees		13			2			—
Professional Fees		10			1			—
Printing Fees		4			1			—
Offering Costs		—			—			—
Other Fees		2			—			—

Total Expenses		94			12			2

Net Investment Income		2,757			431			90

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain (Loss) on Affiliated Investments		450			146			(59	)
Net Realized Gain (Loss) on Unaffiliated Investments		31			2			(12	)
Distributions of Realized Gains from Affiliated Registered Investment Companies		3,026			465			100
Distributions of Realized Gains from Unaffiliated Registered Investment Companies		30			5			1
Net Change in Unrealized Depreciation on Affiliated Investments		(7,851	)		(1,387	)		(246	)
Net Change in Unrealized Depreciation on Unaffiliated Investments		(620	)		(86	)		(5	)

Net Realized and Unrealized Loss on Investments		(4,934	)		(855	)		(221	)

Net Decrease in Net Assets Resulting from Operations	$	(2,177	)	$	(424	)	$	(131	)

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

116


THE KP FUNDS		For the year ended December 31, 2015

STATEMENTS OF OPERATIONS (000)


	KP Large Cap Equity Fund			KP Small Cap Equity Fund			KP International Equity Fund			KP Fixed Income Fund

Investment Income:
Dividend Income	$	21,144		$	9,140		$	29,163		$	138
Interest Income		—			—			18			21,661
Less: Foreign Taxes Withheld		(60	)		(14	)		(2,477	)		—

Total Investment Income		21,084			9,126			26,704			21,799

Expenses:
Sub-Advisory Fees		2,835			3,125			3,448			1,839
Investment Advisory Fees		609			370			506			446
Administration Fees		451			271			375			330
Trustees’ Fees		15			9			12			11
Chief Compliance Officer Fees		7			5			6			5
Custodian Fees/Transfer Agent Fees		139			159			543			140
Pricing Fees		60			39			131			191
Professional Fees		47			49			39			34
Printing Fees		15			14			12			11
Registration Fees		12			55			20			13
Other Fees		21			6			14			10

Total Expenses		4,211			4,102			5,106			3,030

Net Investment Income		16,873			5,024			21,598			18,769

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain/(Loss) on Investments		44,959			14,950			(11,789	)		1,858
Net Realized Gain/(Loss) on Futures Contracts		492			(728	)		(875	)		—
Net Realized Gain/(Loss) on Foreign Currency Transactions		(17	)		—			(291	)		182
Net Change in Unrealized Depreciation on Investments		(24,916	)		(73,179	)		(38,202	)		(16,719	)
Net Change in Unrealized Appreciation/(Depreciation) on Futures Contracts		(106	)		(49	)		279			—
Net Change in Unrealized Appreciation/(Depreciation) on Foreign Currency Translation		(2	)		—			9			(29	)
Change in Accrued Foreign Capital Gains Tax on Appreciated Securities		—			—			(39	)		—

Net Realized and Unrealized Gain/(Loss) on Investments		20,410			(59,006	)		(50,908	)		(14,708	)

Net Increase/(Decrease) in Net Assets Resulting from Operations	$	37,283		$	(53,982	)	$	(29,310	)	$	4,061

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

117


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2015 Fund						KP Retirement Path 2020 Fund
	Year ended December 31, 2015			Period Ended December 31, 2014*			Year ended December 31, 2015			Period Ended December 31, 2014*
Operations:
Net Investment Income	$	7,423		$	8,826		$	11,056		$	11,404
Net Realized Gain on Affiliated and Unaffiliated Investments		3,020			4,501			1,377			3,467
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Companies		4,653			4,511			7,888			6,229
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		(14,165	)		8,152			(21,838	)		12,735

Net Increase/(Decrease) in Net Assets Resulting from Operations		931			25,990			(1,517	)		33,835

Distributions to Shareholders:
Investment Income		(9,480	)		(12,276	)		(14,348	)		(16,187	)
Net Realized Gains		(6,305	)		(3,502	)		(5,418	)		(2,563	)

Total Distributions to Shareholders		(15,785	)		(15,778	)		(19,766	)		(18,750	)

Capital Share Transactions:
Institutional Class Shares:
Issued		44,355			610,854			88,183			714,084
Reinvestment of Distributions		15,784			15,779			19,766			18,750
Redeemed		(84,059	)		(114,779	)		(58,071	)		(68,768	)

Increase/(Decrease) in Net Assets from Capital Share Transactions		(23,920	)		511,854			49,878			664,066

Total Increase/(Decrease) in Net Assets		(38,774	)		522,066			28,595			679,151

Net Assets:
Beginning of Year or Period		522,066			—			679,151			—

End of Year or Period	$	483,292		$	522,066		$	707,746		$	679,151

Undistributed Net Investment Income	$	—		$	43		$	—		$	54

Share Transactions:
Institutional Class Shares:
Issued		4,357			61,560			8,601			72,092
Reinvestment of Distributions		1,602			1,555			1,997			1,843
Redeemed		(8,251	)		(11,297	)		(5,688	)		(6,778	)

Net Increase/(Decrease) in Shares Outstanding from Share Transactions		(2,292	)		51,818			4,910			67,157

*	Commenced operations on January 10, 2014.

Amounts designated as “—” are $0.

The accompanying notes are an integral part of the financial statements.

118


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2025 Fund						KP Retirement Path 2030 Fund
	Year ended December 31, 2015			Period Ended December 31, 2014*			Year ended December 31, 2015			Period Ended December 31, 2014*
Operations:
Net Investment Income	$	11,534		$	11,036		$	10,669		$	10,052
Net Realized Gain on Affiliated and Unaffiliated Investments		1,057			2,126			1,693			1,916
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Companies		9,366			6,300			9,454			5,835
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		(25,838	)		14,316			(27,138	)		13,955

Net Increase/(Decrease) in Net Assets Resulting from Operations		(3,881	)		33,778			(5,322	)		31,758

Distributions to Shareholders:
Investment Income		(15,214	)		(15,973	)		(14,233	)		(14,781	)
Net Realized Gains		(3,797	)		(1,734	)		(3,526	)		(1,388	)

Total Distributions to Shareholders		(19,011	)		(17,707	)		(17,759	)		(16,169	)

Capital Share Transactions:
Institutional Class Shares:
Issued		112,478			665,568			104,506			594,808
Reinvestment of Distributions		19,011			17,707			17,759			16,169
Redeemed		(39,842	)		(49,343	)		(40,424	)		(46,153	)

Increase in Net Assets from Capital Share Transactions		91,647			633,932			81,841			564,824

Total Increase in Net Assets		68,755			650,003			58,760			580,413

Net Assets:
Beginning of Year or Period		650,003			—			580,413			—

End of Year or Period	$	718,758		$	650,003		$	639,173		$	580,413

Undistributed Net Investment Income	$	—		$	54		$	—		$	45

Share Transactions:
Institutional Class Shares:
Issued		10,958			67,419			10,178			60,493
Reinvestment of Distributions		1,923			1,740			1,805			1,591
Redeemed		(3,911	)		(4,880	)		(3,973	)		(4,572	)

Net Increase in Shares Outstanding from Share Transactions		8,970			64,279			8,010			57,512

*	Commenced operations on January 10, 2014.

Amounts designated as “—” are $0.

The accompanying notes are an integral part of the financial statements.

119


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2035 Fund						KP Retirement Path 2040 Fund
	Year ended December 31, 2015			Period Ended December 31, 2014*			Year ended December 31, 2015			Period Ended December 31, 2014*
Operations:
Net Investment Income	$	11,522		$	10,656		$	9,975		$	9,317
Net Realized Gain on Affiliated and Unaffiliated Investments		2,079			1,641			1,957			1,695
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Companies		11,369			6,252			10,691			5,373
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		(31,395	)		16,943			(28,540	)		15,148

Net Increase/(Decrease) in Net Assets Resulting from Operations		(6,425	)		35,492			(5,917	)		31,533

Distributions to Shareholders:
Investment Income		(15,663	)		(15,882	)		(13,742	)		(13,950	)
Net Realized Gains		(3,735	)		(1,249	)		(3,217	)		(1,342	)

Total Distributions to Shareholders		(19,398	)		(17,131	)		(16,959	)		(15,292	)

Capital Share Transactions:
Institutional Class Shares:
Issued		120,532			631,139			115,819			559,412
Reinvestment of Distributions		19,398			17,131			16,959			15,292
Redeemed		(42,797	)		(46,031	)		(41,543	)		(47,671	)

Increase in Net Assets from Capital Share Transactions		97,133			602,239			91,235			527,033

Total Increase in Net Assets		71,310			620,600			68,359			543,274

Net Assets:
Beginning of Year or Period		620,600			—			543,274			—

End of Year or Period	$	691,910		$	620,600		$	611,633		$	543,274

Undistributed Net Investment Income	$	—		$	40		$	—		$	24

Share Transactions:
Institutional Class Shares:
Issued		11,721			64,349			11,245			57,035
Reinvestment of Distributions		1,971			1,685			1,722			1,503
Redeemed		(4,194	)		(4,571	)		(4,068	)		(4,733	)

Net Increase in Shares Outstanding from Share Transactions		9,498			61,463			8,899			53,805

*	Commenced operations on January 10, 2014.

Amounts designated as “—” are $0.

The accompanying notes are an integral part of the financial statements.

120


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2045 Fund						KP Retirement Path 2050 Fund
	Year ended December 31, 2015			Period Ended December 31, 2014*			Year ended December 31, 2015			Period Ended December 31, 2014*
Operations:
Net Investment Income	$	6,756		$	6,081		$	2,757		$	2,119
Net Realized Gain on Affiliated and Unaffiliated Investments		1,679			915			481			276
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Companies		7,437			3,476			3,056			1,217
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		(19,985	)		9,501			(8,471	)		2,368

Net Increase/(Decrease) in Net Assets Resulting from Operations		(4,113	)		19,973			(2,177	)		5,980

Distributions to Shareholders:
Investment Income		(9,217	)		(9,126	)		(3,794	)		(3,181	)
Net Realized Gains		(2,563	)		(686	)		(858	)		(242	)

Total Distributions to Shareholders		(11,780	)		(9,812	)		(4,652	)		(3,423	)

Capital Share Transactions:
Institutional Class Shares:
Issued		97,671			371,828			62,948			141,817
Reinvestment of Distributions		11,780			9,812			4,652			3,423
Redeemed		(34,826	)		(37,048	)		(12,902	)		(23,409	)

Increase in Net Assets from Capital Share Transactions		74,625			344,592			54,698			121,831

Total Increase in Net Assets		58,732			354,753			47,869			124,388

Net Assets:
Beginning of Year or Period		354,753			—			124,388			—

End of Year or Period	$	413,485		$	354,753		$	172,257		$	124,388

Undistributed Net Investment Income	$	—		$	14		$	—		$	6

Share Transactions:
Institutional Class Shares:
Issued		9,501			37,898			6,121			14,352
Reinvestment of Distributions		1,196			965			471			337
Redeemed		(3,405	)		(3,702	)		(1,260	)		(2,363	)

Net Increase in Shares Outstanding from Share Transactions		7,292			35,161			5,332			12,326

*	Commenced operations on January 10, 2014.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

121


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2055 Fund						KP Retirement Path 2060 Fund
	Year ended December 31, 2015			Period Ended December 31, 2014*			Year ended December 31, 2015			Period Ended December 31, 2014*
Operations:
Net Investment Income	$	431		$	212		$	90		$	40
Net Realized Gain/(Loss) on Affiliated and Unaffiliated Investments		148			58			(71	)		(57	)
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Companies		470			124			101			27
Net Change in Unrealized Depreciation on Affiliated and Unaffiliated Investments		(1,473	)		(62	)		(251	)		(49	)

Net Increase/(Decrease) in Net Assets Resulting from Operations		(424	)		332			(131	)		(39	)

Distributions to Shareholders:
Investment Income		(585	)		(321	)		(124	)		(64	)
Net Realized Gains		(236	)		(55	)		(34	)		—

Total Distributions to Shareholders		(821	)		(376	)		(158	)		(64	)

Capital Share Transactions:
Institutional Class Shares:
Issued		18,896			20,142			7,797			10,241
Reinvestment of Distributions		821			376			158			64
Redeemed		(4,042	)		(7,816	)		(4,370	)		(7,750	)

Increase in Net Assets from Capital Share Transactions		15,675			12,702			3,585			2,555

Total Increase in Net Assets		14,430			12,658			3,296			2,452

Net Assets:
Beginning of Year or Period		12,658			—			2,452			—

End of Year or Period	$	27,088		$	12,658		$	5,748		$	2,452

Undistributed Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Class Shares:
Issued		1,844			2,013			758			1,016
Reinvestment of Distributions		84			37			16			6
Redeemed		(392	)		(793	)		(428	)		(780	)

Net Increase in Shares Outstanding from Share Transactions		1,536			1,257			346			242

*	Commenced operations on January 10, 2014.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

122


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Large Cap Equity Fund						KP Small Cap Equity Fund
	Year ended December 31, 2015			Period Ended December 31, 2014*			Year ended December 31, 2015			Period Ended December 31, 2014*
Operations:
Net Investment Income	$	16,873		$	16,059		$	5,024		$	3,707
Net Realized Gain/(Loss) on Investments and Futures Contracts		45,451			20,967			14,222			(7,413	)
Net Realized Gain/(Loss) on Foreign Currency Transactions		(17	)		11			—			—
Net Change in Unrealized Appreciation/(Depreciation) on Investments and Futures Contracts		(25,022	)		111,270			(73,228	)		32,159
Net Change in Unrealized Depreciation on Foreign Currency Translation		(2	)		(6	)		—			—

Net Increase/(Decrease) in Net Assets Resulting from Operations		37,283			148,301			(53,982	)		28,453

Distributions to Shareholders:
Investment Income		(16,965	)		(16,071	)		(5,273	)		(3,768	)
Net Realized Gains		(47,635	)		(15,388	)		(17,173	)		—
Return of Capital		—			—			(66	)		—

Total Distributions to Shareholders		(64,600	)		(31,459	)		(22,512	)		(3,768	)

Capital Share Transactions:
Institutional Class Shares:
Issued		160,689			1,130,162			475,373			490,707
Reinvestment of Distributions		64,600			31,459			22,512			3,768
Redeemed		(101,156	)		(135,583	)		(88,779	)		(70,920	)

Increase in Net Assets from Capital Share Transactions		124,133			1,026,038			409,106			423,555

Total Increase in Net Assets		96,816			1,142,880			332,612			448,240

Net Assets:
Beginning of Year or Period		1,142,880			—			448,240			—

End of Year or Period	$	1,239,696		$	1,142,880		$	780,852		$	448,240

Undistributed/(Distributions in Excess of) Net Investment Income	$	—		$	37		$	(1	)	$	6

Share Transactions:
Institutional Class Shares:
Issued		14,766			115,747			44,433			50,097
Reinvestment of Distributions		6,040			2,859			2,336			361
Redeemed		(9,072	)		(12,947	)		(8,431	)		(7,014	)

Net Increase in Shares Outstanding from Share Transactions		11,734			105,659			38,338			43,444

*	Commenced operations on January 10, 2014.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

123


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP International Equity Fund						KP Fixed Income Fund
	Year ended December 31, 2015			Period Ended December 31, 2014*			Year ended December 31, 2015			Period Ended December 31, 2014*
Operations:
Net Investment Income	$	21,598		$	21,257		$	18,769		$	14,382
Net Realized Gain/(Loss) on Investments and Futures Contracts		(12,664	)		1,800			1,858			8,446
Net Realized Gain/(Loss) on Foreign Currency Transactions		(291	)		(476	)		182			(316	)
Net Change in Unrealized Appreciation/(Depreciation) on Investments and Futures Contracts		(37,923	)		(28,475	)		(16,719	)		1,590
Net Change in Unrealized Appreciation/(Depreciation) on Foreign Currency Translation		9			(115	)		(29	)		54
Change in Accrued Foreign Capital Gains Tax on Appreciated Securities		(39	)		(203	)		—			—

Net Increase/(Decrease) in Net Assets Resulting from Operations		(29,310	)		(6,212	)		4,061			24,156

Distributions to Shareholders:
Investment Income		(22,352	)		(21,912	)		(19,468	)		(14,362	)
Net Realized Gains		—			(7,963	)		(4,913	)		(7,150	)
Return of Capital		(658	)		(1,486	)		(4	)		—

Total Distributions to Shareholders		(23,010	)		(31,361	)		(24,385	)		(21,512	)

Capital Share Transactions:
Institutional Class Shares:
Issued		220,291			1,023,253			180,722			1,031,745
Reinvestment of Distributions		23,010			31,361			24,385			21,511
Redeemed		(104,173	)		(76,936	)		(90,369	)		(230,092	)

Increase in Net Assets from Capital Share Transactions		139,128			977,678			114,738			823,164

Total Increase in Net Assets		86,808			940,105			94,414			825,808

Net Assets:
Beginning of Year or Period		940,105			—			825,908			100

End of Year or Period	$	1,026,913		$	940,105		$	920,322		$	825,908

Undistributed/(Distributions in Excess of) Net Investment Income	$	(1,724	)	$	(967	)	$	3		$	16

Share Transactions:
Institutional Class Shares:
Issued		23,353			105,541			17,893			103,538
Reinvestment of Distributions		2,562			3,317			2,484			2,143
Redeemed		(10,862	)		(7,738	)		(8,964	)		(23,064	)

Net Increase in Shares Outstanding from Share Transactions		15,053			101,120			11,413			82,617

*	Commenced operations on January 10, 2014.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

124


THE KP FUNDS

FINANCIAL HIGHLIGHTS

For the year or period ended December 31,

For a share outstanding throughout the periods


	Net Asset Value, Beginning of Year or Period		Net Investment Income†		Net Realized and Unrealized Gain/ (Loss) on Investments			Total from Operations			Distributions from Investment Income			Distributions from Net Realized Capital Gains			Return of Capital			Total Distributions			Net Asset Value, End of Year or Period		Total Return‡			Net Assets End of Year or Period (000)		Ratio of Expenses to Average Net Assets††			Ratio of Net Investment Income to Average Net Assets			Portfolio Turnover‡

*KP Retirement Path 2015 Fund - Institutional Shares**
2015	$	10.07	$	0.15	$	(0.13	)	$	0.02		$	(0.20	)	$	(0.13	)	$	—		$	(0.33	)	$	9.76		0.14	%	$	483,292		0.08	%		1.45	%		24	%
2014@	$	10.00	$	0.18	$	0.20		$	0.38		$	(0.24	)	$	(0.07	)	$	—		$	(0.31	)	$	10.07		3.82	%	$	522,066		0.10	%		1.81	%		23	%

*KP Retirement Path 2020 Fund - Institutional Shares**
2015	$	10.11	$	0.16	$	(0.17	)	$	(0.01	)	$	(0.20	)	$	(0.08	)	$	—		$	(0.28	)	$	9.82		(0.10	)%	$	707,746		0.07	%		1.56	%		19	%
2014@	$	10.00	$	0.19	$	0.21		$	0.40		$	(0.25	)	$	(0.04	)	$	—		$	(0.29	)	$	10.11		3.96	%	$	679,151		0.09	%		1.92	%		11	%

*KP Retirement Path 2025 Fund - Institutional Shares**
2015	$	10.11	$	0.17	$	(0.21	)	$	(0.04	)	$	(0.21	)	$	(0.05	)	$	—		$	(0.26	)	$	9.81		(0.35	)%	$	718,758		0.07	%		1.64	%		12	%
2014@	$	10.00	$	0.20	$	0.20		$	0.40		$	(0.26	)	$	(0.03	)	$	—		$	(0.29	)	$	10.11		3.92	%	$	650,003		0.09	%		1.98	%		8	%

*KP Retirement Path 2030 Fund - Institutional Shares**
2015	$	10.09	$	0.17	$	(0.22	)	$	(0.05	)	$	(0.22	)	$	(0.06	)	$	—		$	(0.28	)	$	9.76		(0.52	)%	$	639,173		0.07	%		1.70	%		9	%
2014@	$	10.00	$	0.20	$	0.17		$	0.37		$	(0.26	)	$	(0.02	)	$	—		$	(0.28	)	$	10.09		3.78	%	$	580,413		0.08	%		2.02	%		8	%

*KP Retirement Path 2035 Fund - Institutional Shares**
2015	$	10.10	$	0.18	$	(0.25	)	$	(0.07	)	$	(0.23	)	$	(0.05	)	$	—		$	(0.28	)	$	9.75		(0.70	)%	$	691,910		0.06	%		1.71	%		7	%
2014@	$	10.00	$	0.20	$	0.19		$	0.39		$	(0.27	)	$	(0.02	)	$	—		$	(0.29	)	$	10.10		3.86	%	$	620,600		0.08	%		2.01	%		7	%

*KP Retirement Path 2040 Fund - Institutional Shares**
2015	$	10.10	$	0.17	$	(0.25	)	$	(0.08	)	$	(0.22	)	$	(0.05	)	$	—		$	(0.27	)	$	9.75		(0.73	)%	$	611,633		0.06	%		1.68	%		7	%
2014@	$	10.00	$	0.20	$	0.20		$	0.40		$	(0.27	)	$	(0.03	)	$	—		$	(0.30	)	$	10.10		3.91	%	$	543,274		0.08	%		2.02	%		8	%

*KP Retirement Path 2045 Fund - Institutional Shares**
2015	$	10.09	$	0.18	$	(0.25	)	$	(0.07	)	$	(0.22	)	$	(0.06	)	$	—		$	(0.28	)	$	9.74		(0.66	)%	$	413,485		0.06	%		1.71	%		9	%
2014@	$	10.00	$	0.21	$	0.17		$	0.38		$	(0.27	)	$	(0.02	)	$	—		$	(0.29	)	$	10.09		3.76	%	$	354,753		0.08	%		2.06	%		8	%

*KP Retirement Path 2050 Fund - Institutional Shares**
2015	$	10.09	$	0.19	$	(0.26	)	$	(0.07	)	$	(0.22	)	$	(0.05	)	$	—		$	(0.27	)	$	9.75		(0.70	)%	$	172,257		0.06	%		1.82	%		9	%
2014@	$	10.00	$	0.22	$	0.16		$	0.38		$	(0.27	)	$	(0.02	)	$	—		$	(0.29	)	$	10.09		3.76	%	$	124,388		0.08	%		2.19	%		10	%

*KP Retirement Path 2055 Fund - Institutional Shares**
2015	$	10.07	$	0.23	$	(0.30	)	$	(0.07	)	$	(0.21	)	$	(0.09	)	$	—		$	(0.30	)	$	9.70		(0.66	)%	$	27,088		0.06	%		2.19	%		21	%
2014@	$	10.00	$	0.24	$	0.15		$	0.39		$	(0.27	)	$	(0.05	)	$	—		$	(0.32	)	$	10.07		3.81	%	$	12,658		0.10	%		2.44	%		28	%

*KP Retirement Path 2060 Fund - Institutional Shares**
2015	$	10.12	$	0.22	$	(0.28	)	$	(0.06	)	$	(0.22	)	$	(0.06	)	$	—		$	(0.28	)	$	9.78		(0.60	)%	$	5,748		0.06	%		2.09	%		100	%
2014@	$	10.00	$	0.20	$	0.19^		$	0.39		$	(0.27	)	$	—		$	—		$	(0.27	)	$	10.12		3.92	%	$	2,452		0.15	%		1.98	%		340	%

*KP Large Cap Equity Fund - Institutional Shares**
2015	$	10.82	$	0.15	$	0.17		$	0.32		$	(0.15	)	$	(0.43	)	$	—		$	(0.58	)	$	10.56		2.91	%	$	1,239,696		0.35	%		1.38	%		126	%
2014@	$	10.00	$	0.16	$	0.96		$	1.12		$	(0.15	)	$	(0.15	)	$	—		$	(0.30	)	$	10.82		11.21	%	$	1,142,880		0.35	%		1.62	%		126	%

*KP Small Cap Equity Fund - Institutional Shares**
2015	$	10.32	$	0.07	$	(0.55	)	$	(0.48	)	$	(0.07	)	$	(0.22	)	$	—	⁽¹⁾	$	(0.29	)	$	9.55		(4.73	)%	$	780,852		0.55	%		0.68	%		154	%
2014@	$	10.00	$	0.09	$	0.32		$	0.41		$	(0.09	)	$	—		$	—		$	(0.09	)	$	10.32		4.06	%	$	448,240		0.59	%		0.97	%		212	%

*KP International Equity Fund - Institutional Shares**
2015	$	9.30	$	0.20	$	(0.46	)	$	(0.26	)	$	(0.19	)	$	—		$	(0.01	)	$	(0.20	)	$	8.84		(2.79	)%	$	1,026,913		0.50	%		2.13	%		21	%
2014@	$	10.00	$	0.26	$	(0.64	)	$	(0.38	)	$	(0.22	)	$	(0.08	)	$	(0.02	)	$	(0.32	)	$	9.30		(3.83	)%	$	940,105		0.54	%		2.61	%		115	%

*KP Fixed Income Fund - Institutional Shares**
2015	$	10.00	$	0.21	$	(0.16	)	$	0.05		$	(0.21	)	$	(0.05	)	$	—	⁽¹⁾	$	(0.26	)	$	9.79		0.57	%	$	920,322		0.34	%		2.10	%		533	%
2014@	$	10.00	$	0.20	$	0.07		$	0.27		$	(0.18	)	$	(0.09	)	$	—		$	(0.27	)	$	10.00		2.68	%	$	825,908		0.36	%		1.99	%		496	%

*	Commenced operations on January 10, 2014.

@	For the period ended December 31, 2014. All ratios for the period have been annualized.

†	Per share calculations were performed using the average shares method.

‡	Total return and portfolio turnover are for the period indicated and have not been annualized. Returns shown do not reflect the deduction of taxes that a shareholder would pay of Fund distributions or the redemption of Fund shares.

^	The amount shown for a share outstanding throughout the period does not accord with the aggregate net realized and unrealized losses on investments for the period because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the Fund.

††	Ratio does not include the expenses of the underlying funds, as applicable.

(1)

Amount less than $0.01 per share.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

125


THE KP FUNDS		December 31, 2015

NOTES TO FINANCIAL STATEMENTS

1. Organization

The KP Funds (the “Trust”), was organized on March 25, 2013 as a statutory trust under the laws of the Commonwealth of Massachusetts. The Trust is an open-end registered management investment company comprised of fourteen funds: KP Retirement Path 2015 Fund, KP Retirement Path 2020 Fund, KP Retirement Path 2025 Fund, KP Retirement Path 2030 Fund, KP Retirement Path 2035 Fund, KP Retirement Path 2040 Fund, KP Retirement Path 2045 Fund, KP Retirement Path 2050 Fund, KP Retirement Path 2055 Fund, and KP Retirement Path 2060 Fund (collectively, the “Target Date Funds”); and the KP Large Cap Equity Fund, KP Small Cap Equity Fund, KP International Equity Fund, and KP Fixed Income Fund (collectively, the “Asset Class Funds” and collectively with the Target Date Funds, the “Funds” and each a “Fund”). The investment objective of the Target Date Funds is to seek a balance of long-term capital growth, inflation protection, and current income. The investment objective of KP Large Cap Equity, KP Small Cap Equity and KP International Equity Funds is to seek long-term capital appreciation. The investment objective of KP Fixed Income Fund is to provide current income consistent with the preservation of capital. The Funds are diversified for purposes of the Investment Company Act of 1940, as amended (the “1940 Act”). The assets of each Fund of the Trust are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds are registered to offer Institutional Class Shares.

Callan Associates Inc. serves as the Funds’ investment adviser (the “Adviser”). The Adviser will engage a number of sub-advisers (the “Sub-Advisers”) to manage a portion of the Asset Class Funds’ assets. On September 3, 2013, the Trust was seeded with an issuance of 10,000 shares of the Institutional Class Shares of the KP Fixed Income Fund at an aggregate purchase price of $100,000. The Funds commenced operations on January 10, 2014.

2. Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Trust. The Funds are investment companies in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Therefore, the Funds follow the accounting and reporting guidance for investment companies.

Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of assets, the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and such differences could be material.

Security Valuation — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on an exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm ET if a security’s primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Such methodologies generally consider such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. On the first day a new debt security purchase is recorded, if a price is not available on the automated pricing feeds from our primary and secondary pricing vendors nor is it available from an independent broker, the security may be valued at its purchase price. Each day thereafter, the debt security will be valued according to the Trusts’ Fair Value Procedures until an independent source can be secured. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, provided that it is determined the amortized cost continues to approximate fair value. Should existing credit, liquidity or interest rate conditions in the relevant markets and issuer specific circumstances suggest that amortized cost does not approximate fair value, then the amortized cost method may not be used. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment

126


THE KP FUNDS		December 31, 2015

companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Securities for which market prices are not available through the above methods are valued in accordance with Fair Value Procedures established by the Funds’ Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a Fair Value Pricing Committee (the “Committee”) designated by the Funds’ Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been delisted from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; or the security’s primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. As of December 31, 2015, KP Large Cap Equity, KP Small Cap Equity, KP International Equity and KP Fixed Income Funds had securities valued in accordance with fair value procedures. Refer to the schedule of investments for further details.

For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security’s last trade and the time at which the Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates its net asset value if an event that could materially affect the value of those securities (a “Significant Event”) has occurred between the time of the security’s last close and the time that the Fund calculates net asset value. A Significant Event may relate to a single issuer or to an entire market sector. If the Adviser of the Fund becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates its net asset value, it may request that a Committee meeting be called.

KP International Equity Fund uses MarkIt Fair Value (“MarkIt”) as a third party fair valuation vendor. MarkIt provides a fair value for foreign securities held by KP International Equity Fund based on certain factors and methodologies (involving, generally, tracking valuation correlations between the U.S. market and each non-U.S. security) applied by MarkIt in the event that there is a movement in the U.S. market that exceeds a specific threshold established by the Committee. The Committee establishes a “confidence interval” which is used to determine the level of correlation between the value of a foreign security and movements in the U.S. market before a particular security is fair valued when the threshold is exceeded. In the event that the threshold established by the Committee is exceeded on a specific day, KP International Equity Fund values its non-U.S. securities that exceed the applicable “confidence interval” based upon the fair values provided by MarkIt. In such event, it is not necessary to hold a Committee meeting. In the event that the Adviser believes that the fair values provided by MarkIt are not reliable, the Adviser may contact SEI Global Fund Services (the “Administrator”) to request that a meeting of the Committee be held.

If a local market in which KP International Equity Fund owns securities is closed for one or more days, the Fund shall value all securities held in that corresponding currency based on the fair value prices provided by MarkIt using the predetermined confidence interval discussed above.

In accordance with the authoritative guidance on fair value measurement under U.S. GAAP, the Funds disclose fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

•

Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;

•

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board, etc.); and

•

Level 3 — Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).

127


THE KP FUNDS		December 31, 2015

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement. For the year ended December 31, 2015, there have been no significant changes to the Funds’ fair value methodologies.

Federal Income Taxes — It is each Fund’s intention to continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to share-holders. Accordingly, no provision for Federal income taxes has been made in the financial statements.

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last 2 open tax year ends, since inception, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

KP International Equity Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. KP International Equity Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. Tax is monitoring and accruing foreign capital cap gains for $242 (000), please refer to Statements of Assets and Liabilities.

As of and during the year ended December 31, 2015, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended December 31, 2015 the Funds did not incur any interest or penalties.

Security Transactions and Investment Income — Security transactions are accounted for on trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sales of investment securities are based on the specific identification method. Dividend income is recorded on the ex-dividend date, and interest income is recognized on the accrual basis from settlement date and includes the amortization of premiums and the accretion of discount calculated using the effective interest method. Realized gains (losses) on paydowns of mortgage-backed and asset-backed securities are recorded as an adjustment to interest income.

Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and gains and losses on investments and net change in unrealized appreciation (depreciation) on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.

Forward Foreign Currency Exchange Contracts — The Funds may enter into forward foreign currency exchange contracts to protect the value of securities held and related receivables and payables against changes in future foreign exchange rates. A forward currency contract is an agreement between two parties to buy and sell currency at a set price on a future date. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked-to-market daily using the current forward rate and the change in market value is recorded by the Funds as unrealized gain or loss. The Funds recognize realized gains or losses when the contract is closed, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Any realized or unrealized gains (losses) during the year are presented on the Statements of Operations. As of and during the year ended December 31, 2015, KP Fixed Income Fund held forward foreign currency contracts.

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THE KP FUNDS		December 31, 2015

Futures Contracts — To the extent consistent with its investment objective and strategies, the Funds may use futures contracts for tactical hedging purposes as well as to enhance the Fund’s returns. Initial margin deposits of cash or securities are made upon entering into futures contracts. The contracts are marked to market daily and the resulting changes in value are accounted for as unrealized gains and losses. Variation margin payments are paid or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the amount invested in the contract.

Risks of entering into futures contracts include the possibility that there will be an imperfect price correlation between the futures and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a position prior to its maturity date. Third, the futures contract involves the risk that a Fund could lose more than the original margin deposit required to initiate a futures transaction.

Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. Refer to each Fund’s Schedule of Investments for details regarding open futures contracts as of December 31, 2015, if applicable.

Master Netting Arrangements — A fund is subject to various netting arrangements with select counterparties (“Master Agreements”). Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Since different types of transactions have different mechanics and are sometimes traded out of different legal entities of a particular counterparty organization, each type of transaction may be covered by a different Master Agreement, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a fund to close out and net its total exposure to a specific counterparty entity in the event of a default with respect to all the transactions governed under a single agreement with a specific counterparty entity.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Securities and U.S. dollar cash are generally the preferred forms of collateral. Securities and cash pledged as collateral are reflected as assets in the Statement of Assets and Liabilities as either a component of investments at value (securities) or deposits due from counterparties (cash). Cash collateral received is not typically held in a segregated account and as such is reflected as a liability in the Statement of Assets and Liabilities as deposits due to counterparties. The market value of any securities received as collateral is not reflected as a component of net asset value. A fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

It is the Funds’ policy to present the variation margin of the futures contracts separately on the Statements of Assets and Liabilities as the Funds do not have master netting agreements with the counterparties to the futures contracts. Refer to each Fund’s Schedule of Investments for details regarding futures contracts as of December 31, 2015, if applicable.

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) generally govern OTC financial derivative transactions entered into by a fund and select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add additional counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third party custodian.

As of December 31, 2015, there were no securities pledged as collateral for financial derivative instruments as governed by ISDA master agreements.

129


THE KP FUNDS		December 31, 2015

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged for the KP Fixed Income Fund as of December 31, 2015 (000):


	Financial Derivative Assets				Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Total Over the Counter		Forward Foreign Currency Contracts			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral (Received)/ Pledged		Net Exposures^†
Barclays	$	10	$	10	$	(6	)	$	(6	)	$	4		$	—	$	4
BNP Paribas		—		—		(20	)		(20	)		(20	)		—		(20	)
Credit Suisse First Boston		13		13		—			—			13			—		13
HSBC		29		29		—			—			29			—		29

Total over the counter	$	52	$	52	$	(26	)	$	(26	)

†

Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity.

Participation Notes (P-Notes) — To the extent consistent with its Investment Objective and Strategies, a Fund may acquire P-Notes issued by participating banks or broker-dealers. P-Notes are participation interest notes that are designed to offer a return linked to a particular underlying equity, debt, currency or market. The P-Notes in which the Fund may invest will typically have a maturity of one year. When purchasing a P-Note, the posting of margin is not required because the full cost of the P-Note (plus commission) is paid at the time of purchase. When the P-Note matures, the issuer will pay to, or receive from, the purchaser the difference between the minimal value of the underlying instrument at the time of purchase and that instrument’s value at maturity. Investments in P-Notes involve the same risks associated with a direct investment in the underlying foreign companies of foreign securities markets that they seek to replicate. In addition, there can be no assurance that the trading price of P-Notes will equal the underlying value of the foreign companies or foreign securities markets that they seek to replicate. The holder of a participation note that is linked to a particular underlying security is entitled to receive any dividends paid in connection with an underlying security or instrument. However, the holder of a participation note does not receive voting rights as it would if it directly owned the underlying security or instrument. P-Notes are generally traded over the counter. P-Notes constitute general unsecured contractual obligations of the banks or broker-dealers that issue them and the counterparty. There is also counterparty risk associated with these investments because the Fund is relying on the creditworthiness of such counterparty and has no rights under a participation note against the issuer of the underlying security. In addition, the Fund will incur transaction costs as a result of investments in P-Notes.

Investments in Real Estate Investment Trusts (“REITs”) — Dividend income is recorded based on the income included in distributions received from the REIT investments using published REIT reclassifications including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

Master Limited Partnerships (“MLPs”) — Entities commonly referred to as “MLPs” are generally organized under state law as limited partnerships or limited liability companies. The Fund intends to invest in MLPs receiving partnership taxation treatment under the Internal Revenue Code of 1986 (the “Code”), and whose interests or “units” are traded on securities exchanges like shares of corporate stock. To be treated as a partnership for U.S. federal income tax purposes, an MLP whose units are traded on a securities exchange must receive at least 90% of its income from qualifying sources such as interest, dividends, real estate rents, gain from the sale or disposition of real property, income and gain from mineral or natural resources activities, income and gain from the transportation or storage of certain fuels, and, in certain circumstances, income and gain from commodities or futures, forwards and options with respect to commodities. Mineral or natural resources activities include exploration, development, production, processing, mining, refining, marketing and transportation (including pipelines) of oil and gas, minerals, geothermal energy, fertilizer, timber or industrial source carbon dioxide. An MLP consists of a general partner and limited partners (or in the case of MLPs organized as limited liability companies, a managing member and members). The general partner or managing member typically controls the operations and management of the MLP and has an ownership stake in the partnership. The limited partners or members, through their ownership of limited partner or member interests, provide capital to the entity, are intended to have no role in the operation and management of the entity and receive

130


THE KP FUNDS		December 31, 2015

cash distributions. The MLPs themselves generally do not pay U.S. federal income taxes. Thus, unlike investors in corporate securities, direct MLP investors are generally not subject to double taxation (i.e., corporate level tax and tax on corporate dividends). Currently, most MLPs operate in the energy and/or natural resources sector.

Expenses — Expenses of the Trust can be directly attributed to a particular Fund are borne by that Fund. Expenses which cannot be directly attributed to a Fund are apportioned among the Funds of the Trust based on the number of funds and/or relative net assets. In addition to the expenses reflected on the Statement of Operations, the Target Date Funds indirectly bear expenses of the underlying funds (registered investment companies) in which they invest. Because each of the underlying funds have varied expense and fee levels, and the Target Date Funds may own different amounts of shares of these funds at different times, the amount of fees and expenses incurred indirectly will vary.

Dividends and Distributions to Shareholders — The Funds will distribute substantially all of their net investment income and net realized capital gains, if any, at least annually. All dividends and distributions are recorded on ex-dividend date.

3. Administration, Distribution, Transfer Agent and Custody Agreements:

The Funds and the Administrator are parties to an Administration Agreement under which the Administrator provides administrative services to the Funds. For these services, the Administrator is paid an asset based fee which will vary depending on the average daily net assets of the Funds. For the year ended December 31, 2015, the Funds were charged as follows for these services (000):


Fund	Administration Fee		Fund	Administration Fee
KP Retirement Path 2015 Fund	$	131	KP Retirement Path 2050 Fund	$	39
KP Retirement Path 2020 Fund	$	181	KP Retirement Path 2055 Fund	$	5
KP Retirement Path 2025 Fund	$	179	KP Retirement Path 2060 Fund	$	1
KP Retirement Path 2030 Fund	$	160	KP Large Cap Equity Fund	$	451
KP Retirement Path 2035 Fund	$	173	KP Small Cap Equity Fund	$	271
KP Retirement Path 2040 Fund	$	152	KP International Equity Fund	$	375
KP Retirement Path 2045 Fund	$	101	KP Fixed Income Fund	$	330

The Trust and SEI Investments Distribution Co. (the “Distributor”) are parties to a Distribution Agreement. The Distributor receives no fees under the agreement.

Certain officers of the Trust are also officers of the Administrator, which is a wholly-owned subsidiary of SEI Investments Company, and/or the Distributor. Such officers are paid no fees by the Trust, other than the Chief Compliance Offcier (“CCO”) as described below, for serving as officers of the Trust.

A portion of the services provided by the CCO and his staff, whom are employees of the Administrator, are paid for by the Trust as incurred. The services include regulatory oversight of the Trust’s Advisors and service providers as required by SEC regulations. The CCO’s services and fees have been approved by and are reviewed by the Board.

Northeast Retirement Services, Inc. serves as the Transfer Agent and dividend disbursing agent for the Funds under a transfer agency agreement.

State Street Bank and Trust Company serves as custodian (the “Custodian”) for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased and sold by the Funds.

131


THE KP FUNDS		December 31, 2015

4. Investment Advisory Agreements:

Under the terms of an investment advisory agreement, the Adviser provides investment advisory services to the Funds, calculated daily and paid monthly at the following annual rates (shown as a percentage of the average daily net assets of each Fund):


Fund		Annual Advisory Fee
KP Retirement Path 2015 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2020 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2025 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2030 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2035 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2040 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2045 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2050 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2055 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Retirement Path 2060 Fund		0.00% of the Fund’s average daily net assets invested in Affiliated Underlying Funds.¹ 0.05% of the Fund’s average daily net assets invested in Unaffiliated Underlying Funds.²
KP Large Cap Equity Fund		0.05% of the Fund’s average daily net assets.
KP Small Cap Equity Fund		0.05% of the Fund’s average daily net assets.
KP International Equity Fund		0.05% of the Fund’s average daily net assets.
KP Fixed Income Fund		0.05% of the Fund’s average daily net assets.

¹	“Affiliated Underlying Funds” are Underlying Funds to which the Adviser serves as investment adviser.

²	“Unaffiliated Underlying Funds” are Underlying Funds to which the Adviser does not serve as investment adviser.

The Adviser has entered into sub-advisory agreements with each sub-adviser under which the sub-adviser makes investment decisions for the assets it has been allocated to manage. For its service, each sub-adviser receives a fee based on the specified percentage of that portion of the Fund’s assets allocated to that sub-adviser. The total fees paid to sub-advisors directly are labeled as “Sub-Advisory Fees” on the Statements of Operations.

As of December 31, 2015, the Adviser has entered into investment sub-advisory agreements with the following parties:


Investment Sub-Adviser
KP Large Cap Equity Fund		SSgA Funds Management, Inc.
AQR Capital Management, LLC		Walthausen & Co., LLC
MFS Investment Management		KP International Equity Fund
PanAgora Asset Management, Inc.		Acadian Asset Management LLC
SSgA Funds Management, Inc.		Marathon Asset Management LLP
T.Rowe Price Associates, Inc.		MFS Investment Management
KP Small Cap Equity Fund		SSgA Funds Management, Inc.
Aristotle Capital Boston, LLC		KP Fixed Income Fund
CastleArk Management, LLC		Eaton Vance Management
Columbus Circle Investors		Loomis, Sayles & Company, LP
DePrince Race & Zollo, Inc.		Payden & Rygel
PENN Capital Management Company, Inc.		SSgA Funds Management, Inc.

132


THE KP FUNDS		December 31, 2015

5. Investment Transactions:

For the year ended December 31, 2015, the Funds had purchases and sales of investment securities other than long-term U.S. Government and short-term securities as follows (000):


	Purchases		Sales and Maturities
KP Retirement Path 2015 Fund	$	121,746	$	149,386
KP Retirement Path 2020 Fund		180,050		130,977
KP Retirement Path 2025 Fund		178,532		84,938
KP Retirement Path 2030 Fund		139,309		55,022
KP Retirement Path 2035 Fund		145,189		44,459
KP Retirement Path 2040 Fund		137,730		42,685
KP Retirement Path 2045 Fund		112,568		35,546
KP Retirement Path 2050 Fund		69,040		13,144
KP Retirement Path 2055 Fund		19,813		4,052
KP Retirement Path 2060 Fund		7,990		4,371
KP Large Cap Equity Fund		1,579,544		1,503,986
KP Small Cap Equity Fund		1,462,030		1,090,837
KP International Equity Fund		339,453		210,835
KP Fixed Income Fund		745,244		658,604

In addition, KP Fixed Income Fund had purchases and sales of long-term U.S. Government securities of $3,529,210 (000) and $3,508,271 (000), respectively.

6. Federal Tax Information:

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. Federal income tax regulations, which may differ from those amounts determined under U.S. GAAP. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital, undistributed net investment income or accumulated net realized gain, as appropriate, in the period that the differences arise.

The following permanent differences primarily attributable to the reclassification of short-term capital gains from affiliated registered investment companies, return of capital, REIT adjustments, PFIC gain reclass, paydowns and foreign exchange gain/(loss), have been reclassified to/from the following accounts during the year ended December 31, 2015 (000):


	Paid-in Capital			Undistributed Net Investment Income/(Loss)		Accumulated Net Realized Gain/(Loss)
KP Retirement Path 2015 Fund	$	—		$	2,014	$	(2,014	)
KP Retirement Path 2020 Fund		—			3,238		(3,238	)
KP Retirement Path 2025 Fund		—			3,626		(3,626	)
KP Retirement Path 2030 Fund		—			3,519		(3,519	)
KP Retirement Path 2035 Fund		—			4,101		(4,101	)
KP Retirement Path 2040 Fund		—			3,743		(3,743	)
KP Retirement Path 2045 Fund		—			2,447		(2,447	)
KP Retirement Path 2050 Fund		—			1,031		(1,031	)
KP Retirement Path 2055 Fund		—			154		(154	)
KP Retirement Path 2060 Fund		—			34		(34	)
KP Large Cap Equity Fund		—			55		(55	)
KP Small Cap Equity Fund		(66	)		242		(176	)
KP International Equity Fund		(658	)		655		3
KP Fixed Income Fund		(4	)		686		(682	)

These reclassifications have no impact on net assets or net asset value per share of the Funds.

133


THE KP FUNDS		December 31, 2015

The tax character of dividends and distributions declared during the year or period ended December 31, 2015 and December 31, 2014 were as follows (000):


	Year		Ordinary Income		Long-Term Capital Gain		Return of Capital		Total
KP Retirement Path 2015 Fund		2015	$	11,020	$	4,765	$	—	$	15,785
		2014		15,778		—		—		15,778
KP Retirement Path 2020 Fund		2015		15,668		4,098		—		19,766
		2014		18,750		—		—		18,750
KP Retirement Path 2025 Fund		2015		15,988		3,023		—		19,011
		2014		17,707		—		—		17,707
KP Retirement Path 2030 Fund		2015		14,973		2,786		—		17,759
		2014		16,169		—		—		16,169
KP Retirement Path 2035 Fund		2015		16,303		3,095		—		19,398
		2014		17,131		—		—		17,131
KP Retirement Path 2040 Fund		2015		14,264		2,695		—		16,959
		2014		15,292		—		—		15,292
KP Retirement Path 2045 Fund		2015		9,604		2,176		—		11,780
		2014		9,812		—		—		9,812
KP Retirement Path 2050 Fund		2015		3,870		782		—		4,652
		2014		3,423		—		—		3,423
KP Retirement Path 2055 Fund		2015		615		206		—		821
		2014		376		—		—		376
KP Retirement Path 2060 Fund		2015		157		1		—		158
		2014		64		—		—		64
KP Large Cap Equity Fund		2015		30,483		34,117		—		64,600
		2014		30,595		864		—		31,459
KP Small Cap Equity Fund		2015		12,927		9,519		66		22,512
		2014		3,768		—		—		3,768
KP International Equity Fund		2015		22,352		—		658		23,010
		2014		29,553		322		1,486		31,361
KP Fixed Income Fund		2015		24,223		158		4		24,385
		2014		21,512		—		—		21,512

As of December 31, 2015, the components of distributable earnings/(accumulated losses) on a tax basis were as follows (000):


	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Capital Loss Carryforwards			Post October Losses			Unrealized Appreciation/ (Depreciation)			Total Distributable Earnings/ (Accumulated Losses)
KP Retirement Path 2015 Fund	$	—	$	1,762	$	—		$	—		$	(6,404	)	$	(4,642	)
KP Retirement Path 2020 Fund		—		3,326		—			—			(9,524	)		(6,198	)
KP Retirement Path 2025 Fund		—		5,110		—			—			(11,931	)		(6,821	)
KP Retirement Path 2030 Fund		—		6,077		—			—			(13,569	)		(7,492	)
KP Retirement Path 2035 Fund		—		7,529		—			—			(14,991	)		(7,462	)
KP Retirement Path 2040 Fund		—		7,251		—			—			(13,886	)		(6,635	)
KP Retirement Path 2045 Fund		—		5,296		—			—			(11,028	)		(5,732	)
KP Retirement Path 2050 Fund		—		2,102		—			—			(6,374	)		(4,272	)
KP Retirement Path 2055 Fund		—		327		—			—			(1,616	)		(1,289	)
KP Retirement Path 2060 Fund		—		65		—			—			(457	)		(392	)
KP Large Cap Equity Fund		648		8,197		—			—			80,680			89,525
KP Small Cap Equity Fund		—		—		—			(5,197	)		(46,546	)		(51,743	)
KP International Equity Fund		—		—		(1,786	)		(6,767	)		(79,196	)		(87,749	)
KP Fixed Income Fund		—		—		—			(1,439	)		(16,237	)		(17,676	)

Post-October losses represent losses realized on investment transactions from November 1, 2015 through December 31, 2015, that, in accordance with Federal income tax regulations, the Funds elect to defer and treat as having arisen in the following fiscal year.

For Federal income tax purposes, capital loss carryforwards may be carried forward and applied against all future capital gains. Under the Regulated Investment Company Modernization Act of 2010, Funds are permitted to carry

134


THE KP FUNDS		December 31, 2015

forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. Capital loss carryforwards, all of which are not subject to expiration, are as follows (000):

Short-Term

Loss

Total
Capital Loss
Carryforwards

KP International Equity Fund

1,786

During the year ended December 31, 2015, the KP Retirement Path 2060 Fund and KP Small Cap Equity Fund utilized $26 (000) and $3,557 (000), respectively, in capital loss carryforwards to offset capital gains.

For Federal income tax purposes the difference between Federal tax cost and book cost primarily relates to wash sales, which cannot be used for Federal income tax purposes in the current year and have been deferred for use in future years. The aggregate gross unrealized appreciation and depreciation for the investments held (excluding foreign currency) by the Funds at December 31, 2015, were as follows (000):


	Federal Tax Cost		Aggregated Gross Unrealized Appreciation		Aggregated Gross Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
KP Retirement Path 2015 Fund	$	489,725	$	5,151	$	(11,555	)	$	(6,404	)
KP Retirement Path 2020 Fund		717,314		10,244		(19,768	)		(9,524	)
KP Retirement Path 2025 Fund		730,735		11,943		(23,874	)		(11,931	)
KP Retirement Path 2030 Fund		652,780		12,172		(25,741	)		(13,569	)
KP Retirement Path 2035 Fund		706,941		14,006		(28,997	)		(14,991	)
KP Retirement Path 2040 Fund		625,554		12,966		(26,852	)		(13,886	)
KP Retirement Path 2045 Fund		424,536		7,444		(18,472	)		(11,028	)
KP Retirement Path 2050 Fund		178,643		1,656		(8,030	)		(6,374	)
KP Retirement Path 2055 Fund		28,706		5		(1,621	)		(1,616	)
KP Retirement Path 2060 Fund		6,205		1		(458	)		(457	)
KP Large Cap Equity Fund		1,161,642		132,172		(51,484	)		80,688
KP Small Cap Equity Fund		827,170		50,029		(96,575	)		(46,546	)
KP International Equity Fund		1,096,664		64,475		(143,341	)		(78,866	)
KP Fixed Income Fund		1,009,219		2,489		(18,750	)		(16,261	)

7. Risks:

As with all mutual funds, a shareholder of a fund is subject to the risk that his or her investment could lose money. The Funds are subject to the principal risks noted below, any of which may adversely affect the fund’s net asset value and ability to meet its investment objective. A more complete description of principal risks is included in the prospectus under the heading “Principal Risks”.

Credit Risk — Credit risk is the risk that the issuer of a security or the counterparty to a contract will default or otherwise become unable to honor a financial obligation.

Fixed Income Market Risk — Fixed income market risk is the risk that the prices of a fund’s fixed income securities, including structured notes, respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar.

Interest Rate Risk — Interest rate risk is the risk that the value of fixed income securities, including U.S. Government securities, will fall due to rising interest rates.

Derivatives Risk — A fund’s use of futures contracts and forward contracts is subject to market risk, leverage risk, correlation risk and liquidity risk. Leverage risk is the risk that the use of leverage may amplify the effects of market volatility on a fund’s share price and may also cause a fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations. Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time and the price that a fund would like. A fund may have to lower the price, sell

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other securities instead or forego an investment opportunity, any of which could have a negative effect on a fund’s management or performance. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. A fund’s use of forward contracts is also subject to credit risk and valuation risk. Credit risk is described above. Valuation risk is the risk that the derivative may be difficult to value and/or valued incorrectly. Each of these risks could cause a fund to lose more than the principal amount invested in a derivative instrument.

Foreign Currency Risk — Foreign currency risk may arise from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Risks may also arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and are generally limited to the amount of unrealized gain on the contracts at the date of default.

Foreign Investment Risk — The risk that non-U.S. securities may be subject to additional risks due to, among other things, political, social and economic developments abroad, currency movements, and different legal, regulatory and tax environments. These additional risks may be heightened with respect to emerging market countries since political turmoil and rapid changes in economic conditions are more likely to occur in these countries.

8. Indemnifications:

In the normal course of business, the Funds enter into contracts with third-party service providers that contain a variety of representations and warranties and that provide general indemnifications. Additionally, under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. The Funds’ maximum exposure under these arrangements is unknown, as it involves possible future claims that may or may not be made against the Funds. Based on experience, the Adviser is of the view that the risk of loss to the Funds in connection with the Funds’ indemnification obligation is remote; however, there can be no assurance that such obligations will not result in material liabilities that adversely affect the Funds.

9. Other:

At December 31, 2015, the percentage of total shares outstanding held by shareholders each owning 10% or greater of the aggregate total shares outstanding for each Fund, which are comprised of an omnibus account that are held on behalf of various individual shareholders, was as follows:


	Number of affiliated shareholders		% of outstanding shares held		Number of non-affiliated shareholders		% of outstanding shares held
KP Retirement Path 2015 Fund		—		0%		1		100%
KP Retirement Path 2020 Fund		—		0%		1		100%
KP Retirement Path 2025 Fund		—		0%		1		100%
KP Retirement Path 2030 Fund		—		0%		1		100%
KP Retirement Path 2035 Fund		—		0%		1		100%
KP Retirement Path 2040 Fund		—		0%		1		100%
KP Retirement Path 2045 Fund		—		0%		1		100%
KP Retirement Path 2050 Fund		—		0%		1		100%
KP Retirement Path 2055 Fund		—		0%		1		100%
KP Retirement Path 2060 Fund		—		0%		1		100%
KP Large Cap Equity Fund		6		87%		—		0%
KP Small Cap Equity Fund		2		24%		1		40%
KP International Equity Fund		5		83%		—		0%
KP Fixed Income Fund		5		87%		—		0%

10. Subsequent Events:

The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no additional disclosures and/or adjustments were required to the financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of The KP Funds

and the Shareholders of the Funds, as defined:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of KP Retirement Path 2015 Fund, KP Retirement Path 2020 Fund, KP Retirement Path 2025 Fund, KP Retirement Path 2030 Fund, KP Retirement Path 2035 Fund, KP Retirement Path 2040 Fund, KP Retirement Path 2045 Fund, KP Retirement Path 2050 Fund, KP Retirement Path 2055 Fund, KP Retirement Path 2060 Fund, KP Large Cap Equity Fund, KP Small Cap Equity Fund, KP International Equity Fund and KP Fixed Income Fund (constituting The KP Funds, hereafter referred to as the “Funds”) at December 31, 2015, the results of each of their operations for the year then ended, and the changes in each of their net assets and their financial highlights for the year then ended and for the period January 10, 2014 (commencement of operations) through December 31, 2014, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian, brokers, and the transfer agent of the investee funds, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 26, 2016

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TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)

Set forth below are the names, ages, position with the Trust, term of office, length of time served and the principal occupations for the last five years of each of the persons currently serving as Trustees and Officers of the Trust. Trustees who are deemed not to be “interested persons” of the Trust are referred to as “Independent Board Members.” Messrs. Nesher and Doran are Trustees who may be deemed to be “interested” persons of the Fund as



Name, Address, Age¹	Position(s) Held with the Trust and Length of Time Served²	Principal Occupation(s) During the Past 5 Years
INTERESTED
BOARD MEMBERS^3,4

ROBERT A. NESHER 69 yrs. old	Chairman of the Board of Trustees (Since 1991)	SEI employee 1974 to present; currently performs various services on behalf of SEI Investments for which Mr. Nesher is compensated.
WILLIAM M. DORAN 1701 Market Street Philadelphia, PA 19103 75 yrs. old	Trustee (Since 1991)	Self-Employed Consultant since 2003. Partner at Morgan, Lewis & Bockius LLP (law firm) from 1976 to 2003, counsel to the Trust, SEI Investments, SIMC, the Administrator and the Distributor.

1	Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.

2	Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trust’s Declaration of Trust.

3	Denotes Trustees who may be deemed to be “interested” persons of the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Distributor and/or its affiliates.

4	Board Members oversee 14 funds in The KP Funds Trust.

5	Directorships of Companies required to report to the securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., “public companies”) or other investment companies under the 1940 Act.

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that term is defined in the 1940 Act by virtue of their affiliation with the Trust’s Distributor. The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-855-457-3637. The following chart lists Trustees and Officers as of December 31, 2015.

Other Directorships

Held by

Board Member⁵

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust, SEI Asset Allocation Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds and SEI Insurance Products Trust. President and Director of SEI Structured Credit Fund, L.P. Director of SEI Global Master Fund plc, SEI Global Assets Fund plc, SEI Global Investments Fund plc, SEI Investments – Global Funds Services, Limited, SEI Investments Global, Limited, SEI Investments (Europe) Ltd., SEI Investments – Unit Trust Management (UK) Limited, SEI Multi-Strategy Funds PLC and SEI Global Nominee Ltd.

Former Directorships: Director of SEI Opportunity Fund, L.P. to 2010 and Director if SEI Alpha Strategy Protfolio to 2013.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, The Advisors’ Inner Circle Fund III, Bishop Street Funds, O’Connor EQUUS, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust, SEI Asset Allocation Trust and SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Insurance Products Trust, Winton Series Trust and Winton Diversified Opportunities Fund. Director of SEI Investments (Europe), Limited, SEI Investments – Global Funds Services, Limited, SEI Investments Global, Limited, SEI Investments (Asia), Limited, SEI Global Nominee Ltd. and SEI Investments – Unit Trust Management (UK) Limited. Director of the Distributor since 2003.

Former Dirctorships: Director of SEI Alpha Strategy Portfolios, LP to 2013.

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TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)



Name, Address, Age¹	Position(s) Held with the Trust and Length of Time Served²	Principal Occupation(s) During the Past 5 Years
INDEPENDENT
BOARD MEMBERS^3,4

JOHN K. DARR 71 yrs. old	Trustee (Since 2008)	Retired. CEO, Office of Finance, Federal Home Loan Banks, from 1992 to 2007.
JOSEPH T. GRAUSE JR. 63 yrs. old	Trustee (Since 2011)	Self-employed consultant since January 2012. Director of Endowments and Foundations, Morningstar Investment Management, Morningstar, Inc., February 2010 to May 2011; Director of International Consulting and Chief Executive Officer of Morningstar Associates Europe Limited, Morningstar, Inc., May 2007 to February 2010; Country Manager – Morningstar UK Limited, Morningstar, Inc., June 2005 to May 2007.
MITCHELL A. JOHNSON 73 yrs. old	Trustee (Since 2005)	Retired. Private investor and self-employed consultant (strategic investments) since 1994.
BETTY L. KRIKORIAN 72 yrs. old	Trustee (Since 2005)	Vice President, Compliance, AARP Financial Inc. from 2008 to 2010. Self-Employed Legal and Financial Services Consultant since 2003. Counsel (in-house) for State Street Bank from 1995 to 2003.

1	Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.

2	Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trust’s Declaration of Trust.

3	Denotes Trustees who may be deemed to be “interested” persons of the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Distributor and/or its affiliates.

4	Board Members oversee 14 funds in The KP Funds Trust.

5	Directorships of Companies required to report to the securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., “public companies”) or other investment companies under the 1940 Act.

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Other Directorships

Held by

Board Member⁵

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds. Director, Federal Home Loan Banks of Pittsburgh. Director, Manna, Inc. (non-profit developer of affordable housing for ownership).

Curernt Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds. Director, The Korea Fund, Inc.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Institutional Investments Trust, SEI Liquid Asset Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds and SEI Insurance Products Trust. Director, Federal Agricultural Mortgage Corporation (Farmer Mac) since 1997.

Former Directorships: Director of SEI Alpha Strategy Porfolios, LP to 2013.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds.

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THE KP FUNDS		December 31, 2015

TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)



Name, Address, Age¹	Position(s) Held with the Trust and Length of Time Served²	Principal Occupation(s) During the Past 5 Years
INDEPENDENT
BOARD MEMBERS^3,4

BRUCE R. SPECA 59 yrs. old	Trustee (Since 2011)	Global Head of Asset Allocation, Manulife Asset Management (subsidiary of Manulife Financial), June 2010 to May 2011; Executive Vice President – Investment Management Services, John Hancock Financial Services (subsidiary of Manulife Financial), June 2003 to June 2010.
GEORGE J. SULLIVAN, JR. 72 yrs. old	Trustee Lead Independent Trustee (Since 1999)	Retired since January 2012. Self-employed Consultant, Newfound Consultants Inc. April 1997 to December 2011.
OFFICERS

MICHAEL BEATTIE 50 yrs. old	President (Since 2011)	Director of Client Service at SEI from 2004 to 2011. Vice President at SEI from 2009 to November 2011.
STEPHEN CONNORS 31 yrs. old	Treasurer, Controller and Chief Financial Officer (Since 2015)	Director, SEI Investments, Fund Accounting since December 2015. Audit Manager, Deloitte & Touche LLP, from 2011 to 2014. Audit Supervisor, BBD, LLP (formerly Briggs, Bunting & Dougherty, LLP), from 2007 to 2011.

1	Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.

2	Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trust’s Declaration of Trust.

3	Denotes Trustees who may be deemed to be “interested” persons of the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Distributor and/or its affiliates.

4	Board Members oversee 14 funds in The KP Funds Trust.

5	Directorships of Companies required to report to the securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., “public companies”) or other investment companies under the 1940 Act.

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Other Directorships

Held by Board Member/Officer⁵

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds.

Current Directorships: Trustee/ Director of State Street Navigator Securities Lending Trust, The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, SEI Structured Credit Fund, LP, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust, SEI Asset Allocation Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds and SEI Insurance Products Trust. Member of the independent review committee for SEI’s Canadian-registered mutual funds.

Former Directorships: Director of SEI Opportunity Fund, L.P. to 2010. Director of SEI Alpha Strategy Porfolios, LP to 2013.

None.

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THE KP FUNDS		December 31, 2015

TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)



Name, Address, Age¹	Position(s) Held with the Trust and Length of Time Served²	Principal Occupation(s) During the Past 5 Years
OFFICERS (continued)

RUSSELL EMERY 52 yrs. old	Chief Compliance Officer (Since 2006)	Chief Compliance Officer of SEI Structured Credit Fund, LP since 2007. Chief Compliance Officer of SEI Opportunity Fund, L.P., SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Daily Income Trust, SEI Liquid Asset Trust, SEI Tax Exempt Trust, The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds since 2006, SEI Adviser Managed Trust since 2010, New Covenant Funds since 2012, SEI Insurance Products Trust and The KP Funds since 2013, The Advisors’ Inner Circle Fund III and O’Connor EQUUS and Winton Series Trust since 2014 and Winton Diversified Opportnities Fund since 2015.
DIANNE M. DESCOTEAUX 38 yrs. old	Vice President and Secretary (Since 2011)	Counsel at SEI Investments since 2010. Associate at Morgan, Lewis & Bockius LLP from 2006 to 2010.
BRIDGETT E. SUDALL 35 yrs.old	Anti-Money Laundering Compliance Officer and Privacy Officer (since 2015)	Anti-Money Laundering Compliance Officerand Privacy Officer since 2015. Senior Associate and AML Officer, Morgan Stanley Alternative Investment Partners, April 2011 to March 2015. Investor Services Team Lead, Morgan Stanley Alternative Investment Partners, July 2007 to April 2011.
LISA WHITTAKER 37 yrs.old	Vice President and Assistant Secretary (since 2013)	Attorney, SEI Investments Company (2012-present). Associate Counsel, The Glenmede Trust Company (2011-2012). Associate, Drinker Biddle & Reath LLP (2006-2011).
JOHN Y. KIM 34 yrs. old	Vice President and Assistant Secretary (since 2014)	Attorney, SEI Investments Company (2014-present). Associate Stradley Ronon Stevens & Young (2009-2014).

1	Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.

2	Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trust’s Declaration of Trust.

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THE KP FUNDS		December 31, 2015

Other Directorships

Held by

Officer

None.

None

None.

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THE KP FUNDS		December 31, 2015

DISCLOSURE OF FUND EXPENSES (Unaudited)

All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns.

Operating expenses such as these are deducted from the mutual fund‘s gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the mutual fund’s average net assets; this percentage is known as the mutual fund’s expense ratio.

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 invested on July 1, 2015 and held for the six-month period ended December 31, 2015.

The table on the next page illustrates your Fund’s costs in two ways:

• Actual fund return. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in your Fund, to estimate the expenses you paid over that period. Simply divide your actual starting account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

• Hypothetical 5% return. This section helps you compare your Fund’s costs with those of other mutual funds. It assumes that your Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expense Paid During Period” column with those that appear in the same charts in the shareholder reports for other mutual funds.

NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown do not apply to your specific investment.

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THE KP FUNDS		December 31, 2015

DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)


	Beginning Account Value 7/1/2015		Ending Account Value 12/31/2015		Annualized Expense Ratios			Expenses Paid During Period*
KP Retirement Path 2015 Fund
Actual Fund Return	$	1,000.00	$	987.70		0.08	%	$	0.40
Hypothetical 5% Return	$	1,000.00	$	1,024.80		0.08	%	$	0.41
KP Retirement Path 2020 Fund
Actual Fund Return	$	1,000.00	$	981.50		0.07	%	$	0.35
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2025 Fund
Actual Fund Return	$	1,000.00	$	973.40		0.07	%	$	0.35
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2030 Fund
Actual Fund Return	$	1,000.00	$	965.10		0.06	%	$	0.30
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2035 Fund
Actual Fund Return	$	1,000.00	$	960.70		0.06	%	$	0.30
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2040 Fund
Actual Fund Return	$	1,000.00	$	957.60		0.06	%	$	0.30
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2045 Fund
Actual Fund Return	$	1,000.00	$	956.40		0.06	%	$	0.30
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31


	Beginning Account Value 7/1/2015		Ending Account Value 12/31/2015		Annualized Expense Ratios			Expenses Paid During Period*
KP Retirement Path 2050 Fund
Actual Fund Return	$	1,000.00	$	956.10		0.06	%	$	0.30
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2055 Fund
Actual Fund Return	$	1,000.00	$	957.30		0.06	%	$	0.30
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2060 Fund
Actual Fund Return	$	1,000.00	$	957.10		0.06	%	$	0.30
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Large Cap Equity Fund
Actual Fund Return	$	1,000.00	$	1,002.20		0.35	%	$	1.77
Hypothetical 5% Return	$	1,000.00	$	1,023.44		0.35	%	$	1.79
KP Small Cap Equity Fund
Actual Fund Return	$	1,000.00	$	902.00		0.55	%	$	2.64
Hypothetical 5% Return	$	1,000.00	$	1,022.43		0.55	%	$	2.80
KP International Equity Fund
Actual Fund Return	$	1,000.00	$	920.60		0.50	%	$	2.42
Hypothetical 5% Return	$	1,000.00	$	1,022.68		0.50	%	$	2.55
KP Fixed Income Fund
Actual Fund Return	$	1,000.00	$	999.70		0.34	%	$	1.71
Hypothetical 5% Return	$	1,000.00	$	1,023.49		0.34	%	$	1.73

*	Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

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THE KP FUNDS		December 31, 2015

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited)

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Fund’s sub-advisory agreements must be approved: (i) by a vote of a majority of the shareholders of the Fund; and (ii) by the vote of a majority of the members of the Board of Trustees (the “Board” or the “Trustees”) of KP Funds (the “Trust”) who are not parties to the agreements or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.

A Board meeting was held on August 24, 2015 to decide whether to approve the following agreements (the “Agreements”) for initial two-year terms:

•

the Sub-Advisory Agreements between the Adviser and AQR Capital Management, LLC and PanAgora Asset Management, Inc. (the “Sub-Advisers”) on behalf of the KP Large Cap Equity Fund.

In preparation for the meeting, the Trustees requested that the Adviser and the Sub-Advisers furnish information necessary to evaluate the terms of the Agreements. The Trustees used this information, as well as other information that the Adviser, the Sub-Advisers and other service providers of the Fund presented or submitted to the Board at the meeting, to help them decide whether to approve the Agreements for initial two-year terms.

Specifically, the Board requested and received written materials from the Adviser, the Sub-Advisers and other service providers of the Fund regarding: (i) the nature, extent and quality of the services to be provided by the Sub-Advisers; (ii) the Sub-Advisers’ investment management personnel; (iii) the Sub-Advisers’ operations and financial condition; (iv) the Sub-Advisers’ brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the Fund’s proposed advisory fees to be paid to the Sub-Advisers and overall fees and operating expenses; (vi) the Sub-Advisers’ compliance program, including a description of material compliance matters and material compliance violations; (vii) the Sub-Advisers’ policies on and compliance procedures for personal securities transactions; (viii) the Sub-Advisers’ investment experience; (ix) the Adviser’s rationale for recommending the Sub-Advisers; and (x) the Sub-Advisers’ performance in managing similar accounts.

Representatives from the Adviser and the Sub-Advisers, along with other Fund service providers, presented additional information and participated in question and answer sessions at the meeting to help the Trustees evaluate the Sub-Advisers’ services, fees and other aspects of the Agreements. The Independent Trustees received advice from independent counsel and met in executive session outside the presence of Fund management and the Adviser and the Sub-Advisers.

At the Board meeting, the Trustees, including all of the Independent Trustees, based on their evaluation of the information provided by the Adviser, the Sub-Advisers and other service providers of the Fund, approved the Agreements. In considering the approval of the Agreements, the Board considered various factors that they determined were relevant, including: (i) the nature, extent and quality of the services to be provided by the Sub-Advisers; and (ii) the fees to be paid to the Sub-Advisers, as discussed in further detail below.

Nature, Extent and Quality of Services Provided by the Sub-Advisers

In considering the nature, extent and quality of the services to be provided by the Sub-Advisers, the Board reviewed the portfolio management services to be provided by the Sub-Advisers to the Fund, including the quality and continuity of the Sub-Advisers’ portfolio management personnel, the resources of the Sub-Advisers and the Sub-Advisers’ compliance history and compliance program. The Trustees reviewed the terms of the proposed Agreements. The Trustees also reviewed the Sub-Advisers’ proposed investment and risk management approaches for the Fund. The Trustees considered that the Adviser would supervise and monitor the performance of the Sub-Advisers. The most recent investment adviser registration forms (“Form ADV”) for the Sub-Advisers were provided to the Board, as were the responses of the Sub-Advisers to a detailed series of questions which included, among other things, information about the investment advisory services to be provided by the Sub-Advisers to the Fund.

The Trustees also considered other services to be provided to the Fund by the Sub-Advisers such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Fund’s investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. Based on the factors above, as well as those discussed below, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of the services to be provided to the Fund by the Sub-Advisers would be satisfactory.

148


THE KP FUNDS		December 31, 2015

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited) (Continued)

Costs of Advisory Services

In considering the advisory fees payable to the Sub-Advisers, the Trustees reviewed, among other things, a report of the proposed advisory fees to be paid to the Sub-Advisers. The Trustees also reviewed pro forma fee and expense information, as well as the management fees charged by the Sub-Advisers to other clients with comparable mandates. The Trustees considered any differences in management fees and took into account the respective demands, resources and complexity associated with the Fund and other client accounts as well as the extensive regulatory, compliance and tax regimes to which the Fund is subject. The Trustees also considered that the fees payable to the Sub-Advisers would reflect arms-length negotiations between the Adviser and the Sub-Advisers. The Board concluded, within the context of its full deliberations, that the advisory fees were reasonable in light of the nature and quality of the services expected to be rendered by the Sub-Advisers. The Board also considered the Sub-Advisers’ commitment to managing the Fund.

Because the Sub-Advisers are new to the Fund and have not managed Fund assets, they did not yet have an investment performance record with respect to the Fund and it was not possible to determine the profitability that the Sub-Advisers might achieve with respect to the Fund or the extent to which economies of scale would be realized by the Sub-Advisers as the assets of the Fund grow. Accordingly, the Trustees did not make any conclusions regarding the Sub-Advisers’ investment performance with respect to the Fund, the Sub-Advisers’ profitability, or the extent to which economies of scale would be realized by the Sub-Advisers as the assets of the Fund grow, but will do so during future considerations of the Agreements.

Approval of the Agreements

Based on the Board’s deliberations and its evaluation of the information described above and other factors and information it believed relevant in the exercise of its reasonable business judgment, the Board, including all of the Independent Trustees, with the assistance of Fund counsel and Independent Trustees’ counsel, unanimously concluded that the terms of the Agreements, including the fees to be paid thereunder, were fair and reasonable and agreed to approve the Agreements for initial terms of two years. In its deliberations, the Board did not identify any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.

149


THE KP FUNDS		December 31, 2015

NOTICE TO SHAREHOLDERS (Unaudited)

For shareholders that do not have a December 31, 2015 taxable year end, this notice is for informational purposes only. For shareholders with a December 31, 2015 tax year end, please consult your tax adviser as to the pertinence of this notice.

For the fiscal period ended December 31, 2015 the Funds are designating the following with regard to distributions paid during the period:


Fund	Return of Capital (Tax Basis)			Long-Term Capital Gains Distributions (Tax Basis)			Ordinary Income Distributions (Tax Basis)			Total Distributions (Tax Basis)
KP Retirement Path 2015 Fund		0.00	%		30.19	%		69.81	%		100.00	%
KP Retirement Path 2020 Fund		0.00	%		20.73	%		79.27	%		100.00	%
KP Retirement Path 2025 Fund		0.00	%		15.90	%		84.10	%		100.00	%
KP Retirement Path 2030 Fund		0.00	%		15.69	%		84.31	%		100.00	%
KP Retirement Path 2035 Fund		0.00	%		15.96	%		84.04	%		100.00	%
KP Retirement Path 2040 Fund		0.00	%		15.89	%		84.11	%		100.00	%
KP Retirement Path 2045 Fund		0.00	%		18.47	%		81.53	%		100.00	%
KP Retirement Path 2050 Fund		0.00	%		16.81	%		83.19	%		100.00	%
KP Retirement Path 2055 Fund		0.00	%		25.13	%		74.87	%		100.00	%
KP Retirement Path 2060 Fund		0.00	%		0.78	%		99.22	%		100.00	%
KP Large Cap Equity Fund		0.00	%		52.81	%		47.19	%		100.00	%
KP Small Cap Equity Fund		0.30	%		42.28	%		57.42	%		100.00	%
KP International Equity Fund		2.86	%		0.00	%		97.14	%		100.00	%
KP Fixed Income Fund		0.02	%		0.66	%		99.32	%		100.00	%

150

The KP Funds

Investment Adviser

Callan Associates Inc.

600 Montgomery Street, Suite 800

San Francisco, CA 94111

Administrator

SEI Investments

Global Funds Services

One Freedom Valley Drive

Oaks, Pennsylvania 19456

Distributor

SEI Investments Distribution Co.

One Freedom Valley Drive

Oaks, Pennsylvania 19456

Legal Counsel

Morgan, Lewis & Bockius LLP

1701 Market Street

Philadelphia, Pennsylvania 19103-2921

More information about the Funds is available, without charge, through the following:

Statement of Additional Information (“SAI”): The SAI includes detailed information about the Funds. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus.

Annual and Semi-Annual Reports: These reports list the Funds’ holdings and contain information from the Adviser about investment strategies, and recent market conditions and trends and their impact on Fund performance. The reports also contain detailed financial information about the Funds.

To Obtain an SAI, Annual or Semi-Annual Report, or More Information:


*By Telephone:*		855-457-3637 (855-4KPFNDS)

*By Mail:*		The KP Funds
		c/o SEI Investments
		One Freedom Valley Drive
		Oaks, PA 19546

*By Internet:*		www.kp-funds.com

From the SEC: You can also obtain the SAI or the Annual and Semi-Annual Reports, as well as other information about The KP Funds, from the EDGAR Database on the SEC’s website at: http://www.sec.gov. You may review and copy documents at the SEC Public Reference Room in Washington, DC (for information on the operation of the Public Reference Room, call 202-551-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: U.S. Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-1520. You may also obtain this information, upon payment of a duplicating fee, by e-mailing the SEC at the following address: publicinfo@sec.gov.

The Trust’s Investment Company Act registration number is 811-22838

KPF-AR-001-0200

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, controller or principal accounting officer, and any person who performs a similar function. . There have been no amendments to or waivers granted to this code of ethics.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant’s board of trustees has determined that the Registrant has at least one audit committee financial expert serving on the audit committee.

(a)(2) The audit committee financial experts are John Darr and George Sullivan, and they are independent as defined in Form N-CSR Item 3(a)(2).

Item 4. Principal Accountant Fees and Services.

Fees billed by PricewaterhouseCoopers LLP (“PwC”) related to the Trust

PwC billed the Trust aggregate fees for services rendered to the Trust for the last fiscal year were as follows:


		2015						2014
		All fees and services to the Trust that were pre- approved		All fees and services to service affiliates that were pre- approved		All other fees and services to service affiliates that did not require pre- approval		All fees and services to the Trust that were pre- approved		All fees and services to service affiliates that were pre- approved		All other fees and services to service affiliates that did not require pre- approval
(a)	Audit Fees	$	210,650	$	0	$	0	$	205,650	$	0	$	0
(b)	Audit-Related Fees		N/A	$	0	$	0		N/A	$	0	$	0
(c)	Tax Fees		N/A	$	0	$	0		N/A	$	0	$	0
(d)	All Other Fees		N/A	$	0	$	0		N/A	$	0	$	0

(e)(1)

All requests or applications for services to be provided by the independent auditor shall be submitted to the Chief Financial Officer (“CFO”) of the Registrant and must include a detailed description of the services proposed to be rendered. The Registrant ‘s CFO will determine whether such services (1) require specific pre-approval, (2) are included within the list of services that have received the general pre-approval of the audit committee or (3) have been previously pre-approved in connection with the independent auditor’s annual engagement letter for the applicable year or otherwise.

Requests or applications to provide services that require specific pre-approval by the audit committee will be submitted to the audit committee by the CFO. The audit committee will be informed by the CFO on a quarterly basis of all services rendered by the independent auditor. The audit committee has delegated specific pre-approval authority to either the audit committee chair or financial experts, provided that the estimated fee for any such proposed pre-approved service does not exceed $100,000 and any pre-approval decisions are reported to the audit committee at its next regularly scheduled meeting.

All services to be provided by the independent auditor shall be provided pursuant to a signed written engagement letter with the Registrant, the investment advisor or applicable control affiliate (except that matters as to which an engagement letter would be impractical because of timing issues or because the matter is small may not be the subject of an engagement letter) that sets forth both the services to be provided by the independent auditor and the total fees to be paid to the independent auditor for those services.

In addition, the audit committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the independent auditor and to assure the auditor’s independence from the Registrant, such as reviewing a formal written statement from the independent auditor delineating all relationships between the independent auditor and the Registrant, and discussing with the independent auditor its methods and procedures for ensuring independence.

(e)(2) Percentage of fees billed applicable to non-audit services approved pursuant to the “de minimus” exception of Rule 2-01(c)(7)(i)(C) were as follows (PwC):


	2015			2014
Audit-Related Fees		0	%		0	%
Tax Fees		0	%		0	%
All Other Fees		0	%		0	%

(f) Not applicable.

(g) The aggregate non-audit fees and services billed by PwC for services rendered to the Registrant, and 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 for the last two fiscal years were $0 and $0 for 2015 and 2014, respectively.

(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved by the audit committee of Registrant’s Board of Trustees. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable to open-end management investment companies.

Item 6. Schedule of Investments.

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005.

Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

Not applicable to open-end management investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees during the period covered by this report.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of Ethics attached hereto.

(a)(2) A separate certification for the principal executive officer and the principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.

(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an exhibit.

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)		The KP Funds

By (Signature and Title)*		/s/ Michael Beattie
		Michael Beattie, President

Date: March 8, 2016

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/ Michael Beattie
		Michael Beattie, President

Date: March 8, 2016

By (Signature and Title)*		/s/ Stephen Connors
		Stephen Connors,
		Treasurer, Controller and CFO

Date: March 8, 2016

*	Print the name and title of each signing officer under his or her signature.

Type of Contract

Number of
Contracts
Long

Expiration
Date

Unrealized
Appreciation

S&P 500 Index E-MINI

Mar-2016