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: (855) 457-3637

Date of fiscal year end: December 31, 2016

Date of reporting period: December 31, 2016

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, 2016


THE KP FUNDS		December 31, 2016



TABLE OF CONTENTS

Letter to Shareholders			1

Management Discussion and Fund Performance			2

Schedules of Investments			19

Statements of Assets and Liabilities			113

Statements of Operations			117

Statements of Changes in Net Assets			121

Financial Highlights			128

Notes to Financial Statements			130

Report of Independent Registered Public Accounting Firm			142

Trustees and Officers of the Trust			144

Disclosure of Fund Expenses			152

Approval of Investment Advisory Agreement			154

Notice to Shareholders			157

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, 2016

Dear Shareholder,

The US economic picture continued to improve through 2016 with solid GDP growth, incremental improvement on the employment and wage front, and a benign inflationary environment. Performance across the major asset classes was positive, ranging from modestly positive for US bonds and developed Non-US stocks, to strongly positive for US Stocks, commodities and emerging markets. Fixed income returns were positive for the year with the Bloomberg Barclays Aggregate Index returning 2.65%. Large Cap US stocks as measured by the Russell 1000 Index returned 12.05% for the year. Non-US equity markets did not fare as well with the MSCI ACWI ex-US Developed Markets Equity Index gaining 4.50% for the year and the MSCI Emerging Markets Equity Index returned 11.60%. Returns for inflation sensitive (or real) assets were also strongly positive. US REITs (as measured by the NAREIT Composite Index) returned 9.37% for the year, while Commodities (as measured by the Bloomberg Commodity Index) increased by 11.40%.

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, and the asset allocation is automatically adjusted over time 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 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. In terms of absolute performance, fiscal year 2016 was generally characterized by positive returns across the major asset classes. Consequently the returns for the KP Retirement Path Funds were all positive for the year, ranging from 5.24% (2015 Fund) to 8.28% (2055 Fund). The Funds underperformed their strategic benchmarks in fiscal year 2016, due to challenging market conditions for active management, and as a result, modestly trail their benchmarks by between 0.07%-0.45% since their inception in January of 2014 (through December 31, 2016).

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 2017 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, 2016


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Performance for the KP Retirement Path Funds for Fiscal Year 2016 was positive across the board on an absolute basis, but was negative on a relative basis compared to the Funds’ strategic benchmarks. In order to better understand the sources of underperformance 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 10.04% for the year versus 12.05% for the benchmark. This underperformance of -2.01% at the Fund level was largely explained by the underperformance of the active large cap growth strategy, the active large cap value strategy, and one of the active large cap blend strategies. These strategies trailed their benchmarks for the year by -3.80%, -2.55% and -1.74% 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 underperformance 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 18.38% for the year versus 21.31% for the benchmark. The underperformance of -2.93% was largely explained by the underperformance of the two active growth strategies and one of the actively managed value strategies. Because small cap is a relatively small part of the asset allocation for the KP Retirement Path Funds, this contributed to, but 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 3.03% for the year versus 4.50% for the benchmark. This underperformance of -1.47% was primarily attributable to the active ACWI ex-US strategy which trailed its benchmark by -3.30%, outweighing the outperformance of the active emerging markets strategy, which outperformed its benchmark by 2.43%. Because international equity is a large part of the asset allocation for the KP Retirement Path Funds, this was a significant source of relative underperformance across the fund family.

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 Bloomberg Barclays Capital US Aggregate Bond Index. The Fund employs four strategies including a passive Bloomberg Barclays Intermediate Government/Credit Index strategy, an active Bloomberg Barclays Aggregate strategy, an active emerging markets debt strategy, and an active bank loan strategy.


THE KP FUNDS		December 31, 2016


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

The KP Fixed Income Fund returned 4.08% for the year versus 2.65% for the benchmark. This outperformance of 1.43% was primarily due to the outperformance of the active Bloomberg Barclays Aggregate strategy, which outperformed its benchmark by 1.02%, as well as the contributions of the active emerging markets debt and active bank loan strategies. Because fixed income is a large part of the asset allocation for the KP Retirement Path Funds, this outperformance had a positive impact on 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 9.10% over the measurement period versus 10.03% for their composite benchmark. The seven underlying real assets funds had a wide range of returns, from 3.08% for the international real estate fund to 25.01% for the global natural resources fund. 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, 2016


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Definition of Comparative Indices

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 Index captures large, mid and small cap representation across 22 of 23 Developed Markets countries (excluding the United States) and 23 Emerging Markets countries. With 6,092 constituents, the index covers approximately 99% of the global equity opportunity set outside the US.

The MSCI EAFE Index captures large, mid, small and micro cap representation across 21 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 Bloomberg 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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2015 Fund, Institutional Class		5.24	%		3.07	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2015 Fund Benchmark		5.33	%		3.14	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2020 Fund, Institutional Class		5.92	%		3.26	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2020 Fund Benchmark		6.23	%		3.37	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2025 Fund, Institutional Class		6.64	%		3.40	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2025 Fund Benchmark		7.37	%		3.60	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2030 Fund, Institutional Class		7.32	%		3.51	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2030 Fund Benchmark		8.55	%		3.80	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2035 Fund, Institutional Class		7.91	%		3.66	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2035 Fund Index		9.33	%		4.03	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2040 Fund, Institutional Class		8.14	%		3.74	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2040 Fund Benchmark		9.77	%		4.14	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2045 Fund, Institutional Class		8.15	%		3.72	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2045 Fund Benchmark		9.97	%		4.17	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2050 Fund, Institutional Class		8.25	%		3.74	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2050 Fund Benchmark		10.01	%		4.19	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2055 Fund, Institutional Class		8.28	%		3.78	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2055 Fund Benchmark		10.01	%		4.19	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Retirement Path 2060 Fund, Institutional Class		8.18	%		3.81	%
S&P 500 Index		11.96	%		9.05	%
Custom Retirement 2060 Fund Benchmark		10.01	%		4.19	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Large Cap Equity Fund, Institutional Class		10.04	%		8.07	%
Russell 1000 Index		12.05	%		8.72	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Small Cap Equity Fund, Institutional Class		18.38	%		5.53	%
Russell 2000 Index		21.31	%		6.77	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP International Equity Fund, Institutional Class		3.03	%		-1.26	%
MSCI ACWI ex-US Index		4.50	%		-1.46	%

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, 2016


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, 2016
	1 Year			Annualized Inception to Date*
KP Fixed Income Fund, Institutional Class		4.08	%		2.45	%
Bloomberg Barclays U.S. Aggregate Bond Index		2.65	%		2.81	%

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, 2016


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 — 60.5%
KP Fixed Income Fund		16,214,841	$	159,878
KP International Equity Fund		3,047,966		27,218
KP Large Cap Equity Fund		7,082,856		79,257
KP Small Cap Equity Fund		1,174,846		13,182

Total Affiliated Registered Investment Companies (Cost $275,051) (000)				279,535

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 39.5%
DFA Commodity Strategy Portfolio		756,610		4,532
DFA International Real Estate Securities Portfolio		990,626		4,656
Lazard Global Listed Infrastructure Portfolio		333,137		4,721
T. Rowe Price Institutional Floating Rate Fund		450,337		4,539


Description	Shares		Value (000)
T. Rowe Price New Era Fund		134,193	$	4,517
Vanguard Inflation-Protected Securities Fund		1,344,077		13,952
Vanguard REIT Index Fund		545,584		9,870
Vanguard Short-Term Bond Index Fund		7,230,717		75,416
Vanguard Short-Term Inflation-Protected Securities Index Fund		2,458,350		60,598

Total Unaffiliated Registered Investment Companies (Cost $181,992) (000)				182,801

Total Investments — 100.0% (Cost $457,043) (000)			$	462,336

Percentages are based on Net Assets of $462,303 (000).

REIT — Real Estate Investment Trust

As of December 31, 2016, 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, 2016, 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, 2016, 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, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

169,178

43,159

(54,283

)

474

1,350

159,878

3,587

1,632

KP International Equity Fund

28,750

3,455

(5,290

)

745

(442

)

27,218

527

KP Large Cap Equity Fund

80,962

11,416

(17,849

)

2,757

1,971

79,257

1,190

1,852

KP Small Cap Equity Fund

13,967

1,197

(4,273

)

2,038

253

13,182

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


THE KP FUNDS		December 31, 2016


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 — 66.7%
KP Fixed Income Fund		24,682,990	$	243,375
KP International Equity Fund		8,759,334		78,221
KP Large Cap Equity Fund		13,469,916		150,728
KP Small Cap Equity Fund		3,775,488		42,361

Total Affiliated Registered Investment Companies (Cost $503,018) (000)				514,685

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 33.3%
DFA Commodity Strategy Portfolio		1,278,040		7,655
DFA International Real Estate Securities Portfolio		1,672,743		7,862
Lazard Global Listed Infrastructure Portfolio		562,213		7,967
T. Rowe Price Institutional Floating Rate Fund		760,072		7,662


Description	Shares		Value (000)

T. Rowe Price New Era Fund		226,552	$	7,626
Vanguard Inflation-Protected Securities Fund		2,213,281		22,974
Vanguard REIT Index Fund		897,357		16,232
Vanguard Short-Term Bond Index Fund		9,408,784		98,134
Vanguard Short-Term Inflation-Protected Securities Index Fund		3,301,063		81,371

Total Unaffiliated Registered Investment Companies (Cost $256,728) (000)				257,483

Total Investments — 100.0% (Cost $759,746) (000)			$	772,168

Percentages are based on Net Assets of $772,111 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

221,728

62,025

(41,800

)

300

1,122

243,375

5,462

2,436

KP International Equity Fund

77,118

10,689

(10,466

)

1,738

(858

)

78,221

1,515

KP Large Cap Equity Fund

140,979

23,016

(22,091

)

6,259

2,565

150,728

2,263

3,450

KP Small Cap Equity Fund

40,717

5,279

(10,865

)

6,449

781

42,361

299

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


THE KP FUNDS		December 31, 2016


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 — 74.6%
KP Fixed Income Fund		22,269,190	$	219,574
KP International Equity Fund		15,826,252		141,328
KP Large Cap Equity Fund		17,532,940		196,194
KP Small Cap Equity Fund		6,389,394		71,689

Total Affiliated Registered Investment Companies (Cost $613,106) (000)				628,785

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 25.4%
DFA Commodity Strategy Portfolio		1,403,964		8,410
DFA International Real Estate Securities Portfolio		1,837,304		8,635
Lazard Global Listed Infrastructure Portfolio		617,349		8,748
T. Rowe Price Institutional Floating Rate Fund		834,796		8,415


Description	Shares		Value (000)
T. Rowe Price New Era Fund		248,830	$	8,376
Vanguard Inflation-Protected Securities Fund		2,388,264		24,790
Vanguard REIT Index Fund		967,758		17,506
Vanguard Short-Term Bond Index Fund		6,980,292		72,804
Vanguard Short-Term Inflation-Protected Securities Index Fund		2,285,156		56,330

Total Unaffiliated Registered Investment Companies (Cost $213,652) (000)				214,014

Total Investments — 100.0% (Cost $826,758) (000)			$	842,799

Percentages are based on Net Assets of $842,733 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

181,849

59,047

(21,783

)

(146

)

607

219,574

4,916

2,187

KP International Equity Fund

127,484

22,587

(10,258

)

2,387

(872

)

141,328

2,734

KP Large Cap Equity Fund

173,397

34,621

(23,009

)

8,435

2,750

196,194

2,942

4,446

KP Small Cap Equity Fund

63,440

10,512

(14,059

)

10,708

1,088

71,689

509

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


THE KP FUNDS		December 31, 2016


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 — 83.3%
KP Fixed Income Fund		15,736,861	$	155,165
KP International Equity Fund		21,299,009		190,200
KP Large Cap Equity Fund		18,820,111		210,598
KP Small Cap Equity Fund		7,936,998		89,053

Total Affiliated Registered Investment Companies (Cost $627,844) (000)				645,016

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 16.7%
DFA Commodity Strategy Portfolio		1,293,764		7,750
DFA International Real Estate Securities Portfolio		1,692,858		7,956
Lazard Global Listed Infrastructure Portfolio		568,687		8,058
T. Rowe Price Institutional Floating Rate Fund		769,270		7,754


Description	Shares		Value (000)
T. Rowe Price New Era Fund		229,281	$	7,718
Vanguard Inflation-Protected Securities Fund		2,173,147		22,557
Vanguard REIT Index Fund		880,398		15,926
Vanguard Short-Term Bond Index Fund		2,887,031		30,112
Vanguard Short-Term Inflation-Protected Securities Index Fund		856,168		21,105

Total Unaffiliated Registered Investment Companies (Cost $129,042) (000)				128,936

Total Investments — 100.0% (Cost $756,886) (000)			$	773,952

Percentages are based on Net Assets of $773,892 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

123,062

40,614

(8,602

)

(149

)

240

155,165

3,474

1,540

KP International Equity Fund

166,221

32,558

(10,642

)

2,931

(868

)

190,200

3,679

KP Large Cap Equity Fund

179,313

39,662

(20,152

)

9,327

2,448

210,598

3,158

4,737

KP Small Cap Equity Fund

75,370

14,066

(14,758

)

13,174

1,201

89,053

634

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


THE KP FUNDS		December 31, 2016


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 — 89.8%
KP Fixed Income Fund		13,395,753	$	132,082
KP International Equity Fund		27,810,752		248,350
KP Large Cap Equity Fund		23,555,958		263,591
KP Small Cap Equity Fund		10,329,943		115,902

Total Affiliated Registered Investment Companies (Cost $737,541) (000)				759,925

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 10.2%
DFA Commodity Strategy Portfolio		1,183,792		7,091
DFA International Real Estate Securities Portfolio		1,549,040		7,280
Lazard Global Listed Infrastructure Portfolio		520,396		7,374
T. Rowe Price Institutional Floating Rate Fund		703,997		7,096


Description	Shares		Value (000)
T. Rowe Price New Era Fund		209,809	$	7,062
Vanguard Inflation-Protected Securities Fund		1,994,998		20,709
Vanguard REIT Index Fund		807,949		14,617
Vanguard Short-Term Bond Index Fund		1,104,357		11,518
Vanguard Short-Term Inflation-Protected Securities Index Fund		133,649		3,294

Total Unaffiliated Registered Investment Companies (Cost $86,227) (000)				86,041

Total Investments — 100.0% (Cost $823,768) (000)			$	845,966

Percentages are based on Net Assets of $845,902 (000).

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

105,958

32,742

(6,721

)

(55

)

158

132,082

2,957

1,312

KP International Equity Fund

207,592

49,619

(11,372

)

3,576

(1,065

)

248,350

4,802

KP Large Cap Equity Fund

221,641

51,398

(24,004

)

11,829

2,727

263,591

3,952

5,928

KP Small Cap Equity Fund

94,783

18,965

(16,222

)

17,146

1,230

115,902

828

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


THE KP FUNDS		December 31, 2016


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 — 93.4%
KP Fixed Income Fund		9,004,996	$	88,789
KP International Equity Fund		27,799,420		248,249
KP Large Cap Equity Fund		23,397,105		261,814
KP Small Cap Equity Fund		10,125,391		113,607

Total Affiliated Registered Investment Companies (Cost $691,018) (000)				712,459

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 6.6%
DFA Commodity Strategy Portfolio		813,488		4,873
DFA International Real Estate Securities Portfolio		1,064,420		5,003
Lazard Global Listed Infrastructure Portfolio		357,571		5,067


Description	Shares		Value (000)
T. Rowe Price Institutional Floating Rate Fund		483,775	$	4,876
T. Rowe Price New Era Fund		144,173		4,853
Vanguard Inflation-Protected Securities Fund		1,367,829		14,198
Vanguard REIT Index Fund		553,835		10,018
Vanguard Short-Term Bond Index Fund		141,952		1,481

Total Unaffiliated Registered Investment Companies (Cost $50,419) (000)				50,369

Total Investments — 100.0% (Cost $741,437) (000)			$	762,828

Percentages are based on Net Assets of $762,771 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2016, 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, 2016, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

68,440

24,571

(4,162

)

(164

)

104

88,789

1,988

883

KP International Equity Fund

202,440

54,956

(11,683

)

3,587

(1,051

)

248,249

4,803

KP Large Cap Equity Fund

214,291

54,990

(21,775

)

11,860

2,448

261,814

3,926

5,868

KP Small Cap Equity Fund

89,769

20,239

(14,212

)

16,735

1,076

113,607

813

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


THE KP FUNDS		December 31, 2016


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 — 94.8%
KP Fixed Income Fund		4,607,533	$	45,430
KP International Equity Fund		20,844,282		186,139
KP Large Cap Equity Fund		17,478,130		195,581
KP Small Cap Equity Fund		7,204,456		80,834

Total Affiliated Registered Investment Companies (Cost $493,750) (000)				507,984

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.2%
DFA Commodity Strategy Portfolio		464,802		2,784
DFA International Real Estate Securities Portfolio		608,295		2,859
Lazard Global Listed Infrastructure Portfolio		204,326		2,895


Description	Shares		Value (000)

T. Rowe Price Institutional Floating Rate Fund		276,379	$	2,786
T. Rowe Price New Era Fund		82,369		2,773
Vanguard Inflation-Protected Securities Fund		779,286		8,089
Vanguard REIT Index Fund		315,471		5,707

Total Unaffiliated Registered Investment Companies (Cost $27,896) (000)				27,893

Total Investments — 100.0% (Cost $521,646) (000)			$	535,877

Percentages are based on Net Assets of $535,836 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2016, 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, 2016, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

33,738

14,294

(2,517

)

(145

)

45,430

1,018

451

KP International Equity Fund

145,354

49,376

(10,431

)

2,792

(952

)

186,139

3,603

KP Large Cap Equity Fund

153,047

48,699

(16,654

)

8,668

1,821

195,581

2,935

4,364

KP Small Cap Equity Fund

60,686

17,508

(9,824

)

11,765

699

80,834

608

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


THE KP FUNDS		December 31, 2016


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		2,060,748	$	20,319
KP International Equity Fund		10,135,424		90,509
KP Large Cap Equity Fund		8,492,941		95,036
KP Small Cap Equity Fund		3,462,738		38,852

Total Affiliated Registered Investment Companies (Cost $239,279) (000)				244,716

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.0%
DFA Commodity Strategy Portfolio		216,731		1,298
DFA International Real Estate Securities Portfolio		283,547		1,333
Lazard Global Listed Infrastructure Portfolio		95,217		1,349


Description	Shares		Value (000)

T. Rowe Price Institutional Floating Rate Fund		128,789	$	1,298
T. Rowe Price New Era Fund		38,395		1,292
Vanguard Inflation-Protected Securities Fund		357,288		3,709
Vanguard REIT Index Fund		144,546		2,615

Total Unaffiliated Registered Investment Companies (Cost $12,736) (000)				12,894

Total Investments — 100.0% (Cost $252,015) (000)			$	257,610

Percentages are based on Net Assets of $257,588 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2016 , 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, 2016, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

14,013

8,060

(1,686

)

(117

)

20,319

455

201

KP International Equity Fund

60,493

34,391

(5,277

)

1,348

(446

)

90,509

1,751

KP Large Cap Equity Fund

63,855

33,735

(7,454

)

4,074

826

95,036

1,426

2,097

KP Small Cap Equity Fund

25,226

12,532

(4,804

)

5,538

360

38,852

281

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


THE KP FUNDS		December 31, 2016


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 — 95.0%
KP Fixed Income Fund		438,801	$	4,327
KP International Equity Fund		2,157,139		19,263
KP Large Cap Equity Fund		1,807,341		20,224
KP Small Cap Equity Fund		736,673		8,265

Total Affiliated Registered Investment Companies (Cost $51,094) (000)				52,079

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.0%
DFA Commodity Strategy Portfolio		47,263		283
DFA International Real Estate Securities Portfolio		61,800		290
Lazard Global Listed Infrastructure Portfolio		20,741		294


Description	Shares		Value (000)
T. Rowe Price Institutional Floating Rate Fund		28,063	$	283
T. Rowe Price New Era Fund		8,367		282
Vanguard Inflation-Protected Securities Fund		74,220		770
Vanguard REIT Index Fund		29,978		543

Total Unaffiliated Registered Investment Companies (Cost $2,734) (000)				2,745

Total Investments — 100.0% (Cost $53,828) (000)			$	54,824

Percentages are based on Net Assets of $54,819 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2016, 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, 2016, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):

Value
12/31/2015

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2016

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

2,212

2,621

(459

)

(50

)

4,327

KP International Equity Fund

9,504

11,286

(1,698

)

456

(285

)

19,263

372

KP Large Cap Equity Fund

10,050

11,409

(2,187

)

869

20,224

302

432

KP Small Cap Equity Fund

3,953

4,387

(1,264

)

1,142

8,265

—

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


THE KP FUNDS		December 31, 2016


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		72,858	$	718
KP International Equity Fund		357,991		3,197
KP Large Cap Equity Fund		299,937		3,356
KP Small Cap Equity Fund		122,154		1,371

Total Affiliated Registered Investment Companies (Cost $8,346) (000)				8,642

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.0%
DFA Commodity Strategy Portfolio		8,028		48
DFA International Real Estate Securities Portfolio		10,486		49


Description	Shares		Value (000)
Lazard Global Listed Infrastructure Portfolio		3,519	$	50
T. Rowe Price Institutional Floating Rate Fund		4,771		48
T. Rowe Price New Era Fund		1,420		48
Vanguard Inflation-Protected Securities Fund		12,004		125
Vanguard REIT Index Fund		4,856		88

Total Unaffiliated Registered Investment Companies (Cost $455) (000)				456

Total Investments — 100.0% (Cost $8,801) (000)			$	9,098

Percentages are based on Net Assets of $9,097 (000).

REIT — Real Estate Investment Trust

For the year ended December 31, 2016, 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, 2016, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2016 (000):


	Value 12/31/2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value 12/31/2016		Dividend Income		Capital Gain Distributions
KP Fixed Income Fund	$	467	$	539	$	(286	)	$	(6	)	$	4		$	718	$	16	$	7
KP International Equity Fund		2,017		2,328		(1,180	)		151			(119	)		3,197		62		—
KP Large Cap Equity Fund		2,133		2,374		(1,313	)		207			(45	)		3,356		51		73
KP Small Cap Equity Fund		841		923		(587	)		232			(38	)		1,371		10		—

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund

SECTOR WEIGHTINGS†

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
COMMON STOCK — 97.6%
Consumer Discretionary — 13.1%
Advance Auto Parts		5,301	$	897
Amazon.com*		45,544		34,152
AMC Networks, Cl A*		24,582		1,287
AutoNation*		1,013		49
AutoZone*		432		341
Bed Bath & Beyond		2,374		96
Best Buy		33,344		1,423
BorgWarner		3,097		122
Brinker International		19,207		951
Brunswick		6,161		336
CarMax*		2,689		173
Carnival		32,251		1,679
CBS, Cl B		34,462		2,192
Charter Communications, Cl A*		3,300		950
Chipotle Mexican Grill, Cl A*		451		170
Coach		3,989		140
Comcast, Cl A		147,276		10,169
Darden Restaurants		7,311		532
Delphi Automotive PLC		40,789		2,747
Dick’s Sporting Goods		9,362		497
Discovery Communications, Cl A*		5,486		148
Dollar General		52,314		3,875
Dollar Tree*		3,701		286
DR Horton		46,253		1,264
Expedia		1,880		213
Ferrari		29,360		1,707
Foot Locker		5,223		370


Description	Shares		Value (000)
Ford Motor		131,590	$	1,596
Fossil Group*		700		18
GameStop, Cl A		24,040		607
Gap		3,562		80
Garmin		1,949		95
General Motors		54,097		1,885
Genuine Parts		9,074		867
GNC Holdings, Cl A		8,556		94
Goodyear Tire & Rubber		56,038		1,730
H&R Block		3,576		82
Hanesbrands		51,698		1,115
Harley-Davidson		27,255		1,590
Harman International Industries		1,103		123
Hasbro		7,896		614
Hilton Worldwide Holdings		159,515		4,339
Home Depot		72,128		9,671
Hyatt Hotels, Cl A*		14,666		810
International Game Technology		68,479		1,748
Interpublic Group of Companies		76,995		1,802
John Wiley & Sons, Cl A		21,941		1,196
Johnson Controls International		142,107		5,853
Kohl’s		2,551		126
L Brands		3,725		245
Las Vegas Sands		15,162		810
Lear		12,559		1,662
Leggett & Platt		2,046		100
Lennar, Cl A		2,695		116
Liberty Braves Group, Cl A*		572		12
Liberty SiriusXM Group, Cl A*		5,727		198
Live Nation Entertainment*		12,271		326
LKQ*		4,400		135
Lowe’s		60,984		4,337
Macy’s		21,120		756
Marriott International, Cl A		4,834		400
Mattel		4,790		132
McDonald’s		30,972		3,770
MGM Resorts International*		209,318		6,035
Michael Kors Holdings*		5,108		220
Michaels*		43,117		882
Mohawk Industries*		1,001		200
Murphy USA*		4,259		262
Netflix*		28,366		3,512
Newell Brands		17,797		795
News, Cl A		8,268		96
NIKE, Cl B		20,432		1,039
Nordstrom		1,949		93

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
Omnicom Group		71,147	$	6,055
O’Reilly Automotive*		7,369		2,052
priceline.com*		10,999		16,125
PulteGroup		4,802		88
PVH		15,761		1,422
Ralph Lauren, Cl A		804		73
Ross Stores		37,872		2,484
Royal Caribbean Cruises		2,400		197
Scripps Networks Interactive, Cl A		1,491		106
Signet Jewelers		1,100		104
Staples		23,452		212
Starbucks		81,064		4,501
Target		44,310		3,201
TEGNA		30,648		656
Tesla Motors*		18,650		3,985
Tiffany		1,692		131
Time Warner		45,909		4,432
TJX		26,722		2,008
Toll Brothers*		14,663		455
TopBuild*		20,706		737
Tractor Supply		32,597		2,471
TripAdvisor*		1,793		83
Tupperware Brands		8,196		431
Twenty-First Century Fox, Cl A		27,068		753
Ulta Salon Cosmetics & Fragrance*		900		229
Under Armour, Cl A*		5,620		152
Urban Outfitters*		39,440		1,123
Vail Resorts		6,797		1,096
VF		5,014		268
Viacom, Cl B		4,921		173
Walt Disney		58,100		6,055
Whirlpool		4,551		827
Wyndham Worldwide		5,800		443
Wynn Resorts		1,291		112
Yum! Brands		23,859		1,511

				193,691

Consumer Staples — 7.8%
Altria Group		77,807		5,261
Archer-Daniels-Midland		120,884		5,518
Brown-Forman, Cl B		2,964		133
Bunge		11,586		837
Campbell Soup		19,044		1,152
Church & Dwight		3,700		164
Clorox		1,925		231
Coca-Cola		126,506		5,245
Colgate-Palmolive		13,431		879


Description	Shares		Value (000)
ConAgra Foods		10,715	$	424
Constellation Brands, Cl A		2,662		408
Costco Wholesale		18,147		2,906
Coty, Cl A		74,042		1,356
CVS Health		103,928		8,201
Danone		18,626		1,180
Diageo PLC		107,759		2,802
Dr Pepper Snapple Group		12,943		1,174
Energizer Holdings		6,072		271
Estee Lauder, Cl A		3,471		266
General Mills		82,609		5,103
Herbalife*		10,834		522
Hershey		2,161		224
Hormel Foods		4,370		152
Ingredion		11,338		1,417
JM Smucker		21,059		2,697
Kellogg		3,803		280
Kimberly-Clark		8,853		1,010
Kraft Heinz		9,139		798
Kroger		37,419		1,291
McCormick		1,830		171
Mead Johnson Nutrition, Cl A		12,880		911
Molson Coors Brewing, Cl B		7,632		743
Mondelez International, Cl A		23,694		1,050
Monster Beverage*		6,320		280
Nestle		63,087		4,526
Nu Skin Enterprises, Cl A		17,663		844
PepsiCo		90,915		9,512
Philip Morris International		191,446		17,515
Pilgrim’s Pride		45,876		871
Procter & Gamble		153,869		12,937
Reynolds American		22,063		1,236
Rite Aid*		11,397		94
Sysco		27,789		1,539
Tyson Foods, Cl A		42,919		2,647
Walgreens Boots Alliance		15,291		1,265
Wal-Mart Stores		110,332		7,626
Whole Foods Market		4,549		140

				115,809

Energy — 5.3%
Anadarko Petroleum		20,056		1,399
Apache		20,771		1,318
Baker Hughes		12,209		793
Cabot Oil & Gas		6,634		155
Chesapeake Energy*		12,881		90
Chevron		94,384		11,109

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
Cimarex Energy		1,400	$	190
Concho Resources*		2,300		305
ConocoPhillips		101,317		5,080
CONSOL Energy		10,227		186
Devon Energy		9,960		455
Diamond Offshore Drilling		28,410		503
Dril-Quip*		3,929		236
Ensco, Cl A		173,533		1,687
EOG Resources		43,840		4,432
EQT		2,463		161
Exxon Mobil		197,558		17,832
FMC Technologies*		13,781		490
Frank’s International		10,237		126
Halliburton		13,279		718
Helmerich & Payne		1,687		131
Hess		4,096		255
HollyFrontier		3,142		103
Kinder Morgan		90,508		1,874
Marathon Oil		13,314		231
Marathon Petroleum		44,413		2,236
Murphy Oil		5,454		170
Nabors Industries		81,898		1,343
National Oilwell Varco		5,946		223
Newfield Exploration*		2,837		115
Noble Energy		6,726		256
Occidental Petroleum		54,730		3,898
Oceaneering International		19,803		559
ONEOK		3,360		193
PBF Energy, Cl A		12,606		351
Phillips 66		22,891		1,978
Pioneer Natural Resources		4,295		773
QEP Resources		25,544		470
Range Resources		3,085		106
Rice Energy*		8,770		187
Rowan, Cl A		12,450		235
Schlumberger		104,806		8,799
Southwestern Energy*		95,806		1,037
Spectra Energy		19,427		798
Superior Energy Services		24,208		409
Tesoro		11,915		1,042
Transocean		5,391		80
Valero Energy		28,636		1,956
Williams		35,763		1,114
World Fuel Services		10,486		481

				78,668


Description	Shares		Value (000)
Financials — 16.9%
Affiliated Managers Group		800	$	116
Aflac		19,797		1,378
Allied World Assurance Holdings		24,299		1,305
Allstate		27,957		2,072
American Express		65,259		4,834
American Financial Group		8,523		751
American International Group		32,778		2,141
American National Insurance		4,116		513
Ameriprise Financial		19,067		2,115
AmTrust Financial Services		21,546		590
Aon PLC		42,757		4,769
Arthur J Gallagher		2,500		130
Aspen Insurance Holdings		32,465		1,786
Assurant		927		86
Assured Guaranty		45,735		1,727
Axis Capital Holdings		16,561		1,081
Bank of America		477,103		10,544
Bank of New York Mellon		101,261		4,798
BB&T		14,083		662
Berkshire Hathaway, Cl B*		58,953		9,608
BlackRock, Cl A		8,805		3,351
Capital One Financial		34,802		3,036
Charles Schwab		18,523		731
Chimera Investment‡		79,811		1,358
Chubb		49,134		6,492
Cincinnati Financial		2,157		163
Citigroup		206,202		12,255
Citizens Financial Group		58,882		2,098
CME Group, Cl A		22,314		2,574
CNA Financial		4,900		203
Comerica		5,300		361
Cullen		4,025		355
Discover Financial Services		44,088		3,178
Donnelley Financial Solutions*		3,709		85
ETRADE Financial		3,901		135
Everest Re Group		5,305		1,148
Federated Investors, Cl B		30,034		849
Fifth Third Bancorp		31,281		844
First American Financial		10,749		394
First Horizon National		37,840		757
First Republic Bank		5,999		553
Franklin Resources		51,627		2,043
Goldman Sachs Group		37,155		8,897
Hanover Insurance Group		16,244		1,478
Hartford Financial Services Group		21,919		1,044

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
Huntington Bancshares		17,048	$	225
Intercontinental Exchange		83,210		4,695
Invesco		15,234		462
JPMorgan Chase		311,297		26,862
KeyCorp		55,803		1,020
Leucadia National		5,247		122
Lincoln National		12,027		797
Loews		3,933		184
M&T Bank		2,324		364
Marsh & McLennan		7,801		527
MetLife		109,487		5,900
Moody’s		20,101		1,895
Morgan Stanley		217,836		9,204
Morningstar		588		43
MSCI, Cl A		7,410		584
Nasdaq		53,517		3,592
Navient		56,938		936
Northern Trust		3,092		275
Old Republic International		17,577		334
People’s United Financial		4,954		96
PNC Financial Services Group		67,279		7,869
Popular		46,481		2,037
Principal Financial Group		25,935		1,501
Progressive		9,062		322
Prudential Financial		38,121		3,967
Regions Financial		54,069		776
Reinsurance Group of America, Cl A		1,639		206
S&P Global		26,736		2,875
State Street		89,303		6,941
SunTrust Banks		101,070		5,544
Synchrony Financial		47,403		1,719
Synovus Financial		43,325		1,780
T Rowe Price Group		3,555		268
TCF Financial		43,821		858
TD Ameritrade Holding		98,471		4,293
Thomson Reuters		42,532		1,862
Torchmark		1,687		124
Travelers		70,305		8,607
Unum Group		27,169		1,194
US Bancorp		180,234		9,259
Validus Holdings		9,472		521
Voya Financial		25,590		1,004
Wells Fargo		331,264		18,256
Western Alliance Bancorp*		23,750		1,157
Willis Towers Watson		1,849		226
WR Berkley		23,371		1,554


Description	Shares		Value (000)
XL Group		3,893	$	145
Zions Bancorporation		13,402		577

				248,947

Health Care — 13.7%
Abbott Laboratories		133,120		5,113
AbbVie		24,873		1,558
Aetna		45,365		5,626
Agilent Technologies		33,632		1,532
Alexion Pharmaceuticals*		35,181		4,304
Allergan		26,984		5,667
Allscripts Healthcare Solutions*		27,247		278
AmerisourceBergen, Cl A		9,212		720
Amgen		24,645		3,603
Anthem		28,893		4,154
Baxter International		73,282		3,249
Becton Dickinson & Company		9,691		1,604
Biogen*		15,579		4,418
Boston Scientific*		27,482		594
Bristol-Myers Squibb		95,575		5,585
Bruker		45,317		960
Cardinal Health		32,744		2,357
Celgene*		30,767		3,561
Centene*		36,300		2,051
Cerner*		4,715		223
Charles River Laboratories International*		8,137		620
Cigna		35,222		4,698
Cooper		800		140
CR Bard		8,150		1,831
Danaher		123,340		9,601
DaVita*		2,248		144
Dentsply Sirona		11,486		663
Edwards Lifesciences*		3,282		308
Eli Lilly		14,655		1,078
Endo International*		3,200		53
Envision Healthcare*		1,666		106
Express Scripts Holding*		54,098		3,721
Gilead Sciences		54,936		3,934
HCA Holdings*		4,500		333
Henry Schein*		1,200		182
Hologic*		38,592		1,548
Humana		23,741		4,844
Illumina*		7,313		936
Incyte*		7,100		712
Intuitive Surgical*		9,704		6,154
Johnson & Johnson		203,050		23,393

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
Laboratory Corp of America Holdings*		1,652	$	212
LifePoint Health*		7,857		446
Mallinckrodt*		3,508		175
McKesson		30,250		4,249
Medtronic		118,539		8,444
Merck		209,595		12,339
Mettler-Toledo International*		1,992		834
Mylan*		7,167		273
Novartis		9,078		661
Patterson		1,145		47
PerkinElmer		1,596		83
Perrigo		2,032		169
Pfizer		404,311		13,131
Quest Diagnostics		2,154		198
Regeneron Pharmaceuticals*		1,129		415
ResMed		20,904		1,297
Roche Holding		3,650		834
St. Jude Medical		43,206		3,465
Stryker		33,384		4,000
Teleflex		3,240		522
Thermo Fisher Scientific		26,665		3,762
UnitedHealth Group		85,897		13,747
Universal Health Services, Cl B		9,623		1,024
Varian Medical Systems*		12,634		1,134
Vertex Pharmaceuticals*		36,708		2,704
VWR*		17,441		437
Waters*		7,308		982
WellCare Health Plans*		24,430		3,349
Zimmer Biomet Holdings		3,098		320
Zoetis, Cl A		7,472		400

				201,809

Industrials — 11.3%
3M		62,296		11,124
Acuity Brands		700		162
AECOM*		14,602		531
Alaska Air Group		73,391		6,512
Allegion		1,456		93
Allison Transmission Holdings		22,214		748
American Airlines Group		138,950		6,488
AMETEK		3,327		162
Arconic		6,955		129
Boeing		86,614		13,484
BWX Technologies, Cl W		19,006		755
Canadian National Railway		21,122		1,424
Carlisle		12,792		1,411
Caterpillar		8,788		815


Description	Shares		Value (000)
CH Robinson Worldwide		2,064	$	151
Chicago Bridge & Iron		30,886		981
Cintas		1,376		159
Copa Holdings, Cl A		1,733		157
Crane		9,308		671
CSX		63,808		2,293
Cummins		14,255		1,948
Deere		4,367		450
Delta Air Lines		55,462		2,728
Dover		2,197		165
Dun & Bradstreet		6,439		781
Eaton PLC		45,961		3,084
Emerson Electric		15,039		838
Equifax		10,598		1,253
Expeditors International of Washington		2,558		135
Fastenal		4,576		215
FedEx		23,166		4,314
Flowserve		1,943		93
Fluor		1,985		104
Fortive		53,117		2,849
Fortune Brands Home & Security		2,200		118
General Dynamics		5,143		888
General Electric		233,568		7,381
HD Supply Holdings*		7,050		300
Hertz Global Holdings*		3,773		81
Honeywell International		64,684		7,494
Huntington Ingalls Industries		21,497		3,960
Illinois Tool Works		26,016		3,186
Ingersoll-Rand		52,008		3,903
ITT		2,331		90
Jacobs Engineering Group		16,184		922
JB Hunt Transport Services		1,200		116
JetBlue Airways*		44,389		995
Kansas City Southern		10,415		884
L-3 Communications Holdings, Cl 3		15,646		2,380
Lockheed Martin		17,417		4,353
LSC Communications		24,410		724
ManpowerGroup		5,687		505
Masco		27,455		868
MSC Industrial Direct, Cl A		13,194		1,219
Nielsen Holdings		4,800		201
Norfolk Southern		19,260		2,081
Northrop Grumman		28,864		6,713
Oshkosh		13,841		894
Owens Corning		17,302		892
PACCAR		11,044		706

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
Parker-Hannifin		15,280	$	2,139
Pentair PLC		22,737		1,275
Pitney Bowes		8,297		126
Quanta Services*		55,497		1,934
Raytheon		16,674		2,368
Regal Beloit		14,904		1,032
Republic Services, Cl A		19,999		1,141
Robert Half International		2,142		104
Rockwell Automation		7,272		977
Rockwell Collins		2,036		189
Roper Technologies		1,473		270
RR Donnelley & Sons		40,456		660
Ryder System		1,765		131
Snap-on		929		159
Southwest Airlines		17,935		894
Spirit AeroSystems Holdings, Cl A		54,336		3,171
Stanley Black & Decker		19,199		2,202
Stericycle*		1,321		102
Textron		41,357		2,008
Timken		22,903		909
TransDigm Group		800		199
Trinity Industries		13,462		374
Union Pacific		51,443		5,334
United Continental Holdings*		35,852		2,613
United Parcel Service, Cl B		58,022		6,652
United Rentals*		10,232		1,080
United Technologies		61,895		6,785
Valmont Industries		2,272		320
Verisk Analytics, Cl A*		2,500		203
Waste Management		14,719		1,044
WESCO International*		9,561		636
WW Grainger		865		201
Xylem		2,922		145

				166,438

Information Technology — 19.8%
Accenture PLC, Cl A		87,076		10,199
Activision Blizzard		17,856		645
Adobe Systems*		12,592		1,296
Akamai Technologies*		12,758		851
Alibaba Group Holding ADR*		40,100		3,521
Alliance Data Systems		880		201
Alphabet, Cl C*		46,650		36,557
Amdocs		30,652		1,786
Amphenol, Cl A		4,752		319
Analog Devices		4,642		337
Apple		255,538		29,596


Description	Shares		Value (000)
Applied Materials		124,220	$	4,009
Arrow Electronics*		17,658		1,259
ASML Holding, Cl G		33,800		3,792
Autodesk*		2,808		208
Automatic Data Processing		6,968		716
Avnet		9,925		473
Broadcom, Cl A		6,132		1,084
Brocade Communications Systems		5,336		67
CA		49,248		1,565
Cadence Design Systems*		21,107		532
CDW		10,585		551
Cisco Systems		248,272		7,503
Citrix Systems*		22,019		1,967
Cognizant Technology Solutions, Cl A*		38,815		2,175
CommScope Holding*		28,300		1,053
CoreLogic*		24,063		886
Corning		22,351		542
CSRA		2,557		81
Dell Technologies — VMware Inc, Cl V*		16,588		912
Dolby Laboratories, Cl A		11,532		521
DST Systems		7,908		847
eBay*		72,095		2,141
Electronic Arts*		4,578		361
F5 Networks*		16,667		2,412
Facebook, Cl A*		205,410		23,632
Fidelity National Information Services		38,687		2,926
First Solar*		1,023		33
Fiserv*		26,364		2,802
FLIR Systems		1,947		71
Genpact*		19,836		483
Global Payments		13,282		922
Harris		1,786		183
Hewlett Packard Enterprise		87,157		2,017
HP		119,590		1,775
IAC		3,309		214
Intel		203,895		7,395
International Business Machines		42,831		7,110
Intuit		24,145		2,767
Jabil Circuit		26,040		616
Juniper Networks		43,831		1,239
KLA-Tencor		27,283		2,147
Lam Research		2,529		267
Linear Technology		3,808		237
Marvell Technology Group		24,785		344
MasterCard, Cl A		14,538		1,501

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
Maxim Integrated Products		19,192	$	740
Microchip Technology		3,446		221
Micron Technology*		55,031		1,206
Microsoft		523,746		32,546
Motorola Solutions		2,385		198
NCR*		22,163		899
NetApp		4,394		155
Nuance Communications*		24,207		361
NVIDIA		22,599		2,412
NXP Semiconductors*		53,510		5,245
Oracle		123,461		4,747
Palo Alto Networks*		6,200		775
Paychex		4,867		296
PayPal Holdings*		167,531		6,612
Qorvo*		1,800		95
QUALCOMM		74,033		4,827
Red Hat*		52,128		3,633
salesforce.com*		95,587		6,544
Seagate Technology		4,269		163
ServiceNow*		44,195		3,285
Skyworks Solutions		2,700		202
Symantec		9,437		225
Synopsys*		15,641		921
TE Connectivity		5,415		375
Tencent Holdings ADR		115,500		2,797
Teradata*		47,809		1,299
Teradyne		60,274		1,531
Texas Instruments		109,906		8,020
Total System Services		12,617		619
Vantiv, Cl A*		9,785		583
VeriSign*		1,457		111
Versum Materials*		27,577		774
Viavi Solutions*		70,196		574
Visa, Cl A		169,535		13,226
VMware, Cl A*		13,293		1,047
Western Digital		4,401		299
Western Union		33,779		734
Workday, Cl A*		22,500		1,487
Xerox		210,877		1,841
Xilinx		3,980		240
Yahoo!*		13,145		508
Zynga, Cl A*		140,401		361

				292,380

Materials — 3.1%
AdvanSix*		23,242		515
Air Products & Chemicals		3,268		470


Description	Shares		Value (000)
Albemarle		1,800	$	155
Ashland Global Holdings		2,251		246
Avery Dennison		3,540		249
Ball		2,652		199
Cabot		42,206		2,133
Celanese, Cl A		10,431		821
CF Industries Holdings		3,550		112
Crown Holdings*		58,999		3,102
Dow Chemical		79,711		4,561
Eastman Chemical		16,134		1,213
Ecolab		4,009		470
EI du Pont de Nemours		53,592		3,934
FMC		2,132		121
Freeport-McMoRan*		19,048		251
Graphic Packaging Holding		62,789		784
Huntsman		79,028		1,508
International Flavors & Fragrances		1,242		146
International Paper		30,150		1,600
LyondellBasell Industries, Cl A		45,588		3,910
Martin Marietta Materials		1,000		221
Monsanto		22,350		2,351
Mosaic		4,981		146
Newmont Mining		42,570		1,450
Nucor		26,931		1,603
PPG Industries		62,314		5,905
Praxair		4,314		505
Reliance Steel & Aluminum		19,110		1,520
Sealed Air		2,742		124
Sherwin-Williams		7,839		2,107
Steel Dynamics		29,668		1,056
Vulcan Materials		20,127		2,519
WestRock		3,978		202

				46,209

Real Estate — 1.7%
American Tower, Cl A‡		7,899		835
Apartment Investment & Management, Cl A‡		24,256		1,102
AvalonBay Communities‡		2,112		374
Boston Properties‡		7,735		973
Brixmor Property Group‡		15,927		389
Camden Property Trust‡		1,489		125
CBRE Group, Cl A*		17,745		559
Columbia Property Trust‡		9,578		207
Corporate Office Properties Trust‡		3,064		96
Crown Castle International		24,782		2,150
DDR‡		5,649		86

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
Digital Realty Trust‡		2,300	$	226
Duke Realty‡		35,979		956
Equinix‡		1,094		391
Equity LifeStyle Properties		18,342		1,322
Equity Residential‡		16,633		1,071
Essex Property Trust‡		1,032		240
Extra Space Storage‡		1,800		139
Federal Realty Investment Trust‡		1,100		156
General Growth Properties‡		62,925		1,572
HCP‡		6,695		199
Host Hotels & Resorts‡		10,618		200
Iron Mountain‡		3,886		126
Kilroy Realty‡		13,649		999
Kimco Realty‡		27,841		700
Lamar Advertising, Cl A		1,193		80
Life Storage‡		5,946		507
Macerich‡		1,845		131
Mid-America Apartment Communities‡		18,688		1,830
Outfront Media‡		31,969		795
Prologis‡		26,741		1,412
Public Storage‡		2,298		514
Realty Income‡		18,644		1,072
Retail Properties of America, Cl A‡		12,691		195
Simon Property Group‡		11,146		1,980
SL Green Realty‡		1,600		172
UDR‡		3,700		135
Ventas‡		5,313		332
Vornado Realty Trust‡		2,503		261
Welltower‡		5,403		362
Weyerhaeuser‡		11,282		339

				25,310

Telecommunication Services — 2.1%
AT&T		265,374		11,286
CenturyLink		43,357		1,031
Frontier Communications		18,642		63
Level 3 Communications*		8,466		477
SBA Communications, Cl A*		11,607		1,199
T-Mobile US*		50,400		2,899
Verizon Communications		256,411		13,687

				30,642

Utilities — 2.8%
AES		10,137		118
Alliant Energy		3,200		121
Ameren		66,383		3,482
American Electric Power		64,261		4,046


Description	Shares		Value (000)
American Water Works		2,800	$	203
Avangrid		19,257		729
CenterPoint Energy		72,668		1,791
CMS Energy		4,464		186
Consolidated Edison		21,922		1,615
Dominion Resources		9,415		721
DTE Energy		16,210		1,597
Duke Energy		46,662		3,622
Edison International		16,551		1,191
Entergy		38,589		2,835
Eversource Energy		4,949		273
Exelon		36,357		1,290
FirstEnergy		73,657		2,281
Great Plains Energy		29,818		815
Hawaiian Electric Industries		29,575		978
NextEra Energy		7,154		855
NiSource		4,946		109
NRG Energy		4,564		56
PG&E		25,082		1,524
Pinnacle West Capital		23,747		1,853
PPL		14,855		506
Public Service Enterprise Group		82,373		3,615
SCANA		21,151		1,550
Sempra Energy		3,796		382
Southern		14,737		725
Vectren		11,920		622
WEC Energy Group		4,920		289
Xcel Energy		44,860		1,826

				41,806

Total Common Stock (Cost $1,271,492) (000)				1,441,709

PREFERRED STOCK — 0.3%
Air BNB, Ser D* (A)(B)		11,406		1,198
Air BNB, Ser E* (A)(B)		6,939		729
Dropbox, Cl A* (A)(B)		29,866		287
Dropbox, Cl C* (A)(B)		1,097		12
Flipkart Online Services* (A)(B)		5,739		535
Magic Leap, Ser C* (A)(B)		13,521		311
Snapchat, Ser F* (A)(B)		12,575		386
Uber Technologies* (A)(B)		28,993		1,414

Total Preferred Stock (Cost $4,163) (000)				4,872

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


THE KP FUNDS		December 31, 2016


KP Large Cap Equity Fund


Description	Shares		Value (000)
SHORT-TERM INVESTMENT — 2.3%
State Street Institutional Treasury Money Market Fund, Cl Institutional, 0.406%, (C)		33,232,775	$	33,233

Total Short-Term Investment (Cost $33,233) (000)				33,233

Total Investments — 100.2% (Cost $1,308,888) (000)			$	1,479,814

Percentages are based on net assets of $1,476,628 (000).

A list of the open futures contracts held by the Fund at December 31, 2016, is as follows (000):

For the year ended December 31, 2016, the monthly average value of futures contracts held was $13,898 (000).

*	Non-income producing security.

‡	Real Estate Investment Trust

(A)

Rate not available.

(B)

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, 2016, was $4,872 (000) and represented 0.33% of net assets.

(C)

The rate reported is the 7-day effective yield as of December 31, 2016.

ADR — American Depositary Receipt

Cl — Class

PLC — Public Limited Company

S&P — Standard & Poor’s

The following is a list of the level of inputs used as of December 31, 2016, 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	$	1,441,709		$	—	$	—	$	1,441,709
Preferred Stock		—			—		4,872		4,872
Short-Term Investment		33,233			—		—		33,233

Total Investments in Securities	$	1,474,942		$	—	$	4,872	$	1,479,814


Other Financial Instruments	Level 1			Level 2		Level 3^		Total
Futures**
Unrealized Depreciation	$	(107	)	$	—	$	—	$	(107	)

Total Other Financial Instruments	$	(107	)	$	—	$	—	$	(107	)

**	Futures contracts are valued at the unrealized depreciation 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, 2016, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended December 31, 2016 there were no transfers in and out of 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.


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
COMMON STOCK — 95.0%
Consumer Discretionary — 14.4%
1-800-Flowers.com, Cl A*		179,137	$	1,918
A H Belo, Cl A		45,261		287
Aaron’s		5,614		180
Abercrombie & Fitch, Cl A		5,561		67
Acushnet Holdings*		63,997		1,261
AMC Entertainment Holdings, Cl A		3,409		115
American Axle & Manufacturing Holdings*		6,575		127
American Eagle Outfitters		14,211		216
American Public Education*		1,265		31
America’s Car-Mart*		700		31
Apollo Education Group, Cl A*		6,975		69
Arctic Cat		1,070		16
Asbury Automotive Group*		1,632		101
Ascena Retail Group*		14,130		87
Ascent Capital Group, Cl A*		833		14
At Home Group*		680		10
Barnes & Noble		5,162		58
Barnes & Noble Education*		4,226		48
Bassett Furniture Industries		900		27
Beazer Homes USA*		2,571		34
Belmond, Cl A*		6,834		91
Big 5 Sporting Goods		1,500		26
Big Lots		3,803		191
Biglari Holdings*		84		40


Description	Shares		Value (000)
BJ’s Restaurants*		1,906	$	75
Bloomin’ Brands		82,661		1,490
Blue Nile		901		37
Bob Evans Farms		1,621		86
Bojangles’*		107,117		1,998
Boot Barn Holdings*		1,000		13
BorgWarner		76,800		3,028
Boyd Gaming*		7,066		143
Bravo Brio Restaurant Group*		78,284		297
Bridgepoint Education*		1,200		12
Bright Horizons Family Solutions*		3,741		262
Buckle		2,338		53
Buffalo Wild Wings*		1,612		249
Build-A-Bear Workshop, Cl A*		1,000		14
Burlington Stores*		45,264		3,835
Caesars Acquisition, Cl A*		3,890		53
Caesars Entertainment*		4,607		39
Caleres		52,422		1,720
Callaway Golf		7,700		84
Cambium Learning Group*		1,200		6
Camping World Holdings, Cl A		1,000		33
Capella Education		924		81
Career Education*		5,459		55
Carriage Services, Cl A		1,300		37
Carrols Restaurant Group*		2,805		43
Carter’s		22,217		1,919
Cato, Cl A		2,086		63
Cavco Industries*		692		69
Central European Media Enterprises, Cl A*		6,400		16
Century Casinos*		1,741		14
Century Communities*		1,243		26
Cheesecake Factory		3,872		232
Chegg*		6,574		49
Cherokee*		87,561		919
Chico’s FAS		62,650		902
Children’s Place		1,601		162
Churchill Downs		1,153		173
Chuy’s Holdings*		52,896		1,716
Cinemark Holdings		31,070		1,192
Citi Trends		1,300		24
ClubCorp Holdings		156,595		2,247
Collectors Universe		611		13
Columbia Sportswear		36,703		2,139
Conn’s*		1,657		21
Container Store Group*		1,500		10
Cooper Tire & Rubber		4,728		184

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Cooper-Standard Holdings*		1,270	$	131
Core-Mark Holding		3,904		168
Cracker Barrel Old Country Store		1,635		273
Crocs*		6,019		41
CSS Industries		800		22
Culp		879		33
Daily Journal*		150		36
Dana		12,703		241
Dave & Buster’s Entertainment*		42,861		2,413
Deckers Outdoor*		2,775		154
Del Frisco’s Restaurant Group*		155,434		2,643
Del Taco Restaurants*		92,529		1,307
Delta Apparel*		700		15
Denny’s*		6,191		79
Destination XL Group*		2,800		12
DeVry Education Group		49,285		1,538
DineEquity		1,429		110
Dixie Group*		191,535		690
Dorman Products*		20,116		1,470
DSW, Cl A		75,414		1,708
Duluth Holdings, Cl B*		800		20
El Pollo Loco Holdings*		1,656		20
Eldorado Resorts*		2,500		42
Empire Resorts*		272		6
Entercom Communications, Cl A		2,107		32
Entravision Communications, Cl A		5,437		38
Eros International, Cl A*		2,416		32
Escalade		800		11
Ethan Allen Interiors		2,017		74
Etsy*		8,574		101
EW Scripps, Cl A*		4,863		94
Expedia		4,900		555
Express*		260,695		2,805
Federal-Mogul Holdings*		2,600		27
Fiesta Restaurant Group*		96,016		2,867
Finish Line, Cl A		125,430		2,359
Five Below*		4,577		183
Flexsteel Industries		530		33
Fogo De Chao*		406		6
Fossil Group*		3,426		89
Fox Factory Holding*		1,827		51
Francesca’s Holdings*		3,122		56
Fred’s, Cl A		2,885		54
FTD*		1,424		34
Gaia, Cl A*		700		6
Gannett		9,601		93


Description	Shares		Value (000)
Genesco*		1,678	$	104
Gentherm*		6,702		227
G-III Apparel Group*		3,512		104
Global Eagle Entertainment*		4,300		28
GNC Holdings, Cl A		5,606		62
Golden Entertainment		841		10
GoPro, Cl A*		8,252		72
Grand Canyon Education*		21,498		1,257
Gray Television*		5,237		57
Green Brick Partners*		1,896		19
Group 1 Automotive		1,780		139
Guess?		4,996		60
Habit Restaurants, Cl A*		128,207		2,212
Haverty Furniture		1,522		36
Helen of Troy*		2,390		202
Hemisphere Media Group, Cl A*		700		8
Hibbett Sports*		1,866		70
Hooker Furniture		926		35
Horizon Global*		1,490		36
Houghton Mifflin Harcourt*		10,131		110
Hovnanian Enterprises, Cl A*		9,898		27
HSN		51,258		1,758
Iconix Brand Group*		3,823		36
ILG		9,667		176
IMAX*		51,037		1,602
Installed Building Products*		1,643		68
International Speedway, Cl A		2,152		79
Intrawest Resorts Holdings*		1,315		23
iRobot*		27,999		1,636
Isle of Capri Casinos*		2,042		50
J Alexander’s Holdings*		1,174		13
Jack in the Box		19,517		2,179
JAKKS Pacific*		1,500		8
Jamba*		1,200		12
John Wiley & Sons, Cl A		15,056		821
Johnson Outdoors, Cl A		400		16
K12*		2,761		47
KB Home		6,814		108
Kirkland’s*		191,152		2,964
Kona Grill*		209,870		2,635
La Quinta Holdings*		6,928		98
Lands’ End*		1,400		21
La-Z-Boy, Cl Z		4,207		131
LCI Industries		2,024		218
LGI Homes*		1,261		36
Libbey		1,793		35

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Liberty Braves Group, Cl A*		3,318	$	68
Liberty Media Group, Cl C*		5,639		177
Liberty Tax		400		5
Liberty TripAdvisor Holdings, Cl A*		5,929		89
LifeLock*		7,222		173
Lifetime Brands		900		16
Lindblad Expeditions Holdings*		116,798		1,104
Lions Gate Entertainment, Cl A*		40,623		1,093
Lithia Motors, Cl A		16,372		1,585
Loral Space & Communications*		1,051		43
Luby’s*		2,000		9
Lumber Liquidators Holdings*		2,150		34
M/I Homes*		1,933		49
Malibu Boats, Cl A*		109,439		2,088
Marcus		1,519		48
Marine Products		1,132		16
MarineMax*		2,019		39
Marriott Vacations Worldwide		1,915		162
MCBC Holdings		800		12
MDC Holdings		129,022		3,310
MDC Partners, Cl A		4,183		27
Media General*		9,318		175
Meredith		20,790		1,230
Meritage Homes*		3,123		109
Metaldyne Performance Group		48,325		1,109
Modine Manufacturing*		24,268		362
Monarch Casino & Resort*		867		22
Monro Muffler Brake		12,216		699
Motorcar Parts of America*		1,494		40
Movado Group		1,351		39
MSG Networks*		4,861		105
NACCO Industries, Cl A		317		29
Nathan’s Famous*		248		16
National CineMedia		5,026		74
Nautilus*		2,504		46
New Home*		1,000		12
New Media Investment Group		3,972		64
New York Times, Cl A		10,652		142
Nexstar Broadcasting Group, Cl A		18,986		1,202
Noodles, Cl A*		800		3
Nordstrom		25,500		1,221
Norwegian Cruise Line Holdings*		19,500		829
Nutrisystem		2,378		82
Office Depot		47,179		213
Ollie’s Bargain Outlet Holdings*		1,651		47
Overstock.com*		1,000		18


Description	Shares		Value (000)
Oxford Industries		75,331	$	4,529
Panera Bread, Cl A*		4,900		1,005
Papa John’s International		2,319		198
Party City Holdco*		2,200		31
Penn National Gaming*		6,087		84
Perry Ellis International*		1,000		25
PetMed Express		1,619		37
Pier 1 Imports		410,677		3,506
Pinnacle Entertainment*		4,444		64
Planet Fitness, Cl A		2,400		48
Polaris Industries		33,630		2,771
Popeyes Louisiana Kitchen*		32,578		1,970
Potbelly*		2,100		27
PVH		6,600		596
Radio One, Cl D*		3,100		9
Reading International, Cl A*		1,400		23
Red Lion Hotels*		1,500		13
Red Robin Gourmet Burgers*		1,116		63
Red Rock Resorts, Cl A		2,455		57
Regis*		3,034		44
Rent-A-Center, Cl A		4,238		48
RH*		3,161		97
Royal Caribbean Cruises		33,400		2,741
Ruby Tuesday*		5,200		17
Ruth’s Hospitality Group		2,601		48
Saga Communications, Cl A		300		15
Salem Media Group, Cl A		1,400		9
Scholastic		2,209		105
Scientific Games, Cl A*		46,111		646
Sears Holdings*		919		9
Sears Hometown and Outlet Stores*		1,400		7
SeaWorld Entertainment		134,813		2,553
Select Comfort*		3,783		86
Sequential Brands Group*		3,205		15
Shake Shack, Cl A*		1,282		46
Shoe Carnival		1,168		32
Shutterfly*		2,956		148
Sinclair Broadcast Group, Cl A		5,645		188
Skechers U.S.A., Cl A*		31,845		783
Smith & Wesson Holding*		4,476		94
Sonic		3,843		102
Sonic Automotive, Cl A		2,284		52
Sotheby’s		4,209		168
Spartan Motors		2,716		25
Speedway Motorsports		900		20
Sportsman’s Warehouse Holdings*		2,108		20

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Stage Stores		2,581	$	11
Standard Motor Products		1,754		93
Stein Mart		272,529		1,493
Steven Madden*		5,257		188
Stoneridge*		2,192		39
Strattec Security		272		11
Strayer Education*		861		69
Sturm Ruger		1,515		80
Superior Industries International		2,051		54
Superior Uniform Group		700		14
Tailored Brands		3,992		102
Taylor Morrison Home, Cl A*		2,482		48
Tenneco*		47,606		2,974
Texas Roadhouse, Cl A		5,641		272
Tile Shop Holdings*		2,660		52
Tilly’s, Cl A*		900		12
Time		8,789		157
TopBuild*		3,147		112
Tower International		1,675		47
Townsquare Media, Cl A*		900		9
TRI Pointe Group*		12,738		146
tronc		2,178		30
Tuesday Morning*		3,666		20
UCP, Cl A*		600		7
Ulta Salon Cosmetics & Fragrance*		8,440		2,152
Unifi*		1,279		42
Unique Fabricating		700		10
Universal Electronics*		1,157		75
Vail Resorts		14,100		2,274
Vera Bradley*		1,656		19
Vince Holding*		2,154		9
Vista Outdoor*		85,270		3,146
Vitamin Shoppe*		1,973		47
Wayfair, Cl A*		2,576		90
WCI Communities*		1,900		45
Weight Watchers International*		2,400		27
West Marine*		1,300		14
Weyco Group		500		16
William Lyon Homes, Cl A*		1,953		37
Wingstop, Cl A		1,285		38
Winmark		200		25
Winnebago Industries		2,189		69
Wolverine World Wide		94,084		2,064
Workhorse Group*		934		7
World Wrestling Entertainment, Cl A		62,883		1,157
ZAGG*		280,896		1,993


Description	Shares		Value (000)
Zoe’s Kitchen*		1,560	$	37
Zumiez*		25,773		563

				134,500

Consumer Staples — 2.2%
AdvancePierre Foods Holdings		1,858		55
Alico		200		5
Alliance One International*		681		13
Amplify Snack Brands*		2,600		23
Andersons		40,568		1,814
Avon Products*		37,598		189
B&G Foods		5,600		245
Boston Beer, Cl A*		721		122
Calavo Growers		1,264		78
Cal-Maine Foods		2,526		112
Central Garden & Pet*		3,558		111
Chefs’ Warehouse*		56,430		893
Coca-Cola Bottling Consolidated		385		69
Craft Brew Alliance*		1,100		19
Darling Ingredients*		14,024		181
Dean Foods		7,830		171
elf Beauty*		800		23
Farmer Brothers*		661		24
Flowers Foods		60,092		1,200
Fresh Del Monte Produce		2,763		168
Freshpet*		1,800		18
Herbalife*		13,871		668
HRG Group*		10,147		158
Ingles Markets, Cl A		1,142		55
Inter Parfums		37,827		1,240
Inventure Foods*		129,326		1,274
J&J Snack Foods		1,283		171
John B Sanfilippo & Son		707		50
Lancaster Colony		1,601		226
Landec*		2,400		33
Lifevantage*		1,400		11
Lifeway Foods*		300		3
Limoneira		900		19
Medifast		854		36
MGP Ingredients		1,024		51
National Beverage		956		49
Natural Grocers by Vitamin Cottage*		700		8
Natural Health Trends		600		15
Nature’s Sunshine Products		800		12
Nu Skin Enterprises, Cl A		14,223		680
Nutraceutical International		700		24
Oil-Dri Corp of America		407		16

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Omega Protein*		1,786	$	45
Orchids Paper Products		738		19
Performance Food Group*		3,058		73
PriceSmart		1,715		143
Primo Water*		1,724		21
Revlon, Cl A*		1,000		29
Sanderson Farms		1,710		161
Seaboard*		948		3,747
Seneca Foods, Cl A*		535		21
Smart & Final Stores*		2,000		28
Snyder’s-Lance		102,706		3,939
SpartanNash		3,017		119
SUPERVALU*		21,717		101
Synutra International*		2,500		13
Tootsie Roll Industries		1,406		56
Turning Point Brands*		400		5
United Natural Foods*		4,232		202
Universal		9,871		630
USANA Health Sciences*		848		52
Vector Group		7,927		180
Village Super Market, Cl A		597		18
WD-40		1,206		141
Weis Markets		783		52

				20,127

Energy – 4.9%
Abraxas Petroleum*		10,600		27
Adams Resources & Energy		200		8
Alon USA Energy		2,800		32
Approach Resources*		248,539		833
Archrock		5,683		75
Ardmore Shipping		146,526		1,084
Atwood Oceanics		4,974		65
Bill Barrett*		193,414		1,352
Bristow Group		2,744		56
California Resources*		2,589		55
Callon Petroleum*		62,854		966
Capital Product Partners (A)		129,946		413
CARBO Ceramics		2,259		24
Carrizo Oil & Gas*		5,275		197
Clayton Williams Energy*		500		60
Clean Energy Fuels*		7,158		20
Cobalt International Energy*		33,325		41
Contango Oil & Gas*		1,841		17
CVR Energy		1,292		33
Dawson Geophysical*		1,647		13
Delek US Holdings		90,531		2,179


Description	Shares		Value (000)
Denbury Resources*		28,724	$	106
DHT Holdings		7,496		31
Diamondback Energy*		14,000		1,415
Dorian LPG*		1,800		15
Eclipse Resources*		432,002		1,153
Emerge Energy Services (A)		75,820		933
EP Energy, Cl A*		3,161		21
Era Group*		1,600		27
Erin Energy*		2,700		8
Evolution Petroleum		2,100		21
EXCO Resources*		12,700		11
Exterran*		2,587		62
Fairmount Santrol Holdings*		7,873		93
Forum Energy Technologies*		4,904		108
Frontline		5,481		39
GasLog		3,341		54
Gastar Exploration*		425,876		660
Gener8 Maritime*		3,206		14
Geospace Technologies*		1,114		23
Golar LNG		8,064		185
Green Plains		2,956		82
Helix Energy Solutions Group*		9,219		81
Hornbeck Offshore Services*		2,900		21
Independence Contract Drilling*		2,448		16
International Seaways*		1,266		18
Isramco*		39		5
Jones Energy, Cl A*		441,895		2,209
Key Energy Services*		14,844		472
Mammoth Energy Services*		900		14
Matador Resources*		7,089		183
Matrix Service*		2,171		49
McDermott International*		20,671		153
Natural Gas Services Group*		1,100		35
Navios Maritime Acquisition		6,900		12
Newfield Exploration*		56,100		2,272
Newpark Resources*		6,773		51
Nordic American Tankers		7,900		66
Northern Oil and Gas*		5,000		14
Oasis Petroleum*		57,990		878
Oceaneering International		218,871		6,175
Oil States International*		4,373		171
Overseas Shipholding Group, Cl A		3,800		15
Pacific Ethanol*		2,500		24
Panhandle Oil and Gas, Cl A		1,252		29
Par Pacific Holdings*		2,509		36
Parker Drilling*		9,869		26

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description		Shares		Value (000)
Parsley Energy, Cl A*			17,300	$	610
PBF Energy, Cl A			94,825		2,644
PDC Energy*			24,716		1,794
PHI*			1,000		18
Pioneer Energy Services*			6,774		46
Renewable Energy Group*			3,400		33
Resolute Energy*			46,493		1,915
REX American Resources*			462		46
RigNet*			1,100		25
Ring Energy*			291,172		3,783
RPC			36,047		714
RSP Permian*			8,224		367
Sanchez Energy*			60,062		542
Scorpio Tankers			13,350		60
SEACOR Holdings*			1,302		93
Seadrill*			30,879		105
SemGroup, Cl A			5,638		235
Ship Finance International			4,895		73
Smart Sand*			1,200		20
Synergy Resources*			15,908		142
Teekay			4,003		32
Teekay Tankers, Cl A			9,514		22
Tesco			3,775		31
TETRA Technologies*			345,606		1,735
Tidewater			4,200		14
Unit*			4,133		111
US Silica Holdings			45,718		2,591
W&T Offshore*			2,600		7
Western Refining			15,344		581
Westmoreland Coal*			1,724		30
Whiting Petroleum*			48,000		577
Willbros Group*			4,500		15
WPX Energy*			47,545		693

					45,340

Financials — 17.3%
1st Source			1,278		57
Access National			700		19
ACNB			487		15
Allegiance Bancshares*	��		897		32
Altisource Residential‡			4,273		47
Ambac Financial Group*			3,679		83
American Equity Investment Life Holding			62,359		1,406
American Financial Group			37,905		3,340
American National Bankshares			670		23
Ameris Bancorp			2,917		127


Description	Shares		Value (000)
AMERISAFE		1,547	$	96
Ames National		700		23
Anworth Mortgage Asset‡		7,818		40
Apollo Commercial Real Estate Finance		5,891		98
Ares Commercial Real Estate‡		2,400		33
Argo Group International Holdings		2,464		162
Arlington Asset Investment, Cl A		1,842		27
ARMOUR Residential‡		3,001		65
Arrow Financial		955		39
Associated Capital Group		367		12
Assurant		32,470		3,015
Astoria Financial		7,880		147
Atlantic Capital Bancshares*		1,414		27
Atlas Financial Holdings*		900		16
B. Riley Financial		759		14
Baldwin & Lyons, Cl B		700		18
Banc of California		3,985		69
BancFirst		669		62
Banco Latinoamericano de Comercio Exterior, Cl E		2,472		73
Bancorp*		80,428		632
BancorpSouth		7,382		229
Bank Mutual		83,798		793
Bank of Hawaii		35,460		3,145
Bank of Marin Bancorp		500		35
Bank of NT Butterfield & Son		1,000		31
Bank of the Ozarks		7,445		392
BankFinancial		1,240		18
Bankwell Financial Group		467		15
Banner		2,570		143
Bar Harbor Bankshares		500		24
Bear State Financial		1,400		14
Beneficial Bancorp		5,734		106
Berkshire Hills Bancorp		36,316		1,338
BGC Partners, Cl A		18,584		190
Blue Capital Reinsurance Holdings		600		11
Blue Hills Bancorp		2,013		38
BNC Bancorp		3,314		106
BofI Holding*		5,130		146
Boston Private Financial Holdings		6,686		111
Bridge Bancorp		18,565		704
Brookline Bancorp		62,586		1,026
Bryn Mawr Bank		1,360		57
BSB Bancorp*		659		19
C&F Financial		300		15
Calamos Asset Management, Cl A		1,300		11
California First National Bancorp		400		6

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Camden National		1,247	$	55
Capital Bank Financial, Cl A		1,993		78
Capital City Bank Group		800		16
Capitol Federal Financial		10,890		179
Capstar Financial Holdings*		30,812		677
Capstead Mortgage		7,801		79
Cardinal Financial		23,630		775
Carolina Financial		836		26
Cascade Bancorp*		2,506		20
Cathay General Bancorp		6,327		241
CenterState Banks		3,787		95
Central Pacific Financial		2,472		78
Central Valley Community Bancorp		900		18
Century Bancorp, Cl A		243		15
Charter Financial		1,159		19
Chemical Financial		28,382		1,537
Chemung Financial		300		11
Citizens, Cl A*		3,793		37
Citizens & Northern		1,000		26
City Holding		1,191		81
Clifton Bancorp		1,788		30
CNB Financial		1,200		32
CNO Financial Group		15,037		288
CoBiz Financial		193,226		3,264
Codorus Valley Bancorp		840		24
Cohen & Steers		37,056		1,245
Colony Capital, Cl A‡		9,602		194
Columbia Banking System		32,416		1,448
Comerica		16,400		1,117
Commerce Bancshares		53,970		3,120
Community Bank System		3,671		227
Community Trust Bancorp		1,244		62
ConnectOne Bancorp		2,319		60
County Bancorp		500		13
Cowen Group, Cl A*		2,251		35
Crawford, Cl B		1,000		13
CU Bancorp*		1,400		50
Customers Bancorp*		76,633		2,745
CVB Financial		8,632		198
CYS Investments‡		12,377		96
Diamond Hill Investment Group		248		52
Dime Community Bancshares		2,553		51
Donegal Group, Cl A		700		12
Dynex Capital‡		3,664		25
ETRADE Financial		68,800		2,384
Eagle Bancorp*		53,134		3,239


Description	Shares		Value (000)
eHealth*		1,500	$	16
EMC Insurance Group		682		20
Employers Holdings		2,620		104
Encore Capital Group*		1,945		56
Enova International*		2,272		29
Enstar Group*		971		192
Enterprise Bancorp		826		31
Enterprise Financial Services		1,567		67
Equity Bancshares, Cl A*		500		17
ESSA Bancorp		667		10
Essent Group*		115,552		3,741
EverBank Financial		8,800		171
Evercore Partners, Cl A		3,328		229
EZCORP, Cl A*		4,134		44
Farmers Capital Bank		601		25
Farmers National Banc		2,029		29
FB Financial*		700		18
FBL Financial Group, Cl A		803		63
FBR		700		9
FCB Financial Holdings, Cl A*		2,447		117
Federal Agricultural Mortgage, Cl C		701		40
Federated National Holding		1,027		19
Fidelity & Guaranty Life		972		23
Fidelity Southern		1,812		43
Fifth Street Asset Management, Cl A		300		2
Financial Engines		36,825		1,353
Financial Institutions		1,200		41
First Bancorp		2,507		74
First BanCorp*		9,713		64
First Busey		2,528		78
First Business Financial Services		600		14
First Citizens BancShares, Cl A		647		230
First Commonwealth Financial		7,234		103
First Community Bancshares		1,276		38
First Community Financial Partners*		1,110		13
First Connecticut Bancorp		45,899		1,040
First Defiance Financial		719		36
First Financial		817		43
First Financial Bancorp		43,439		1,236
First Financial Bankshares		5,438		246
First Financial Northwest		900		18
First Foundation*		1,078		31
First Horizon National		131,770		2,637
First Internet Bancorp		500		16
First Interstate BancSystem, Cl A		1,609		68
First Merchants		40,196		1,513

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
First Mid-Illinois Bancshares		600	$	20
First Midwest Bancorp		67,070		1,692
First NBC Bank Holding*		38,549		281
First Northwest Bancorp*		906		14
First of Long Island		1,745		50
First Republic Bank		22,900		2,110
FirstCash		20,192		948
Flagstar Bancorp*		1,709		46
Flushing Financial		2,269		67
FNB		292,065		4,681
FNFV Group*		5,372		74
Franklin Financial Network*		1,065		45
Fulton Financial		14,449		272
GAIN Capital Holdings		2,900		19
GAMCO Investors, Cl A		358		11
Genworth Financial, Cl A*		43,008		164
German American Bancorp		1,159		61
Glacier Bancorp		6,496		235
Global Indemnity*		700		27
Great Ajax‡		1,400		19
Great Southern Bancorp		876		48
Great Western Bancorp		55,131		2,403
Green Bancorp*		1,689		26
Green Dot, Cl A*		3,485		82
Greenhill		2,269		63
Greenlight Capital, Cl A*		2,399		55
Guaranty Bancorp		96,310		2,331
Hallmark Financial Services*		1,100		13
Hancock Holding		40,657		1,752
Hanmi Financial		2,562		89
Hannon Armstrong Sustainable Infrastructure Capital‡		103,247		1,961
Hanover Insurance Group		19,177		1,745
HarborOne Bancorp*		1,194		23
HCI Group		700		28
Heartland Financial USA		1,993		96
Hennessy Advisors		300		10
Heritage Commerce		161,006		2,323
Heritage Financial		126,666		3,262
Heritage Insurance Holdings		2,300		36
Heritage Oaks Bancorp		67,410		831
Hilltop Holdings		6,404		191
Hingham Institution for Savings		100		20
Home Bancorp		470		18
Home BancShares		10,184		283
HomeStreet*		1,930		61
HomeTrust Bancshares*		1,351		35


Description	Shares		Value (000)
Hope Bancorp		10,933	$	239
Horace Mann Educators		93,949		4,021
Horizon Bancorp		1,601		45
Houlihan Lokey, Cl A		996		31
IBERIABANK		36,085		3,022
Impac Mortgage Holdings*		800		11
Independence Holding		500		10
Independent Bank		49,130		3,380
Independent Bank Group		907		57
Infinity Property & Casualty		881		77
International Bancshares		4,673		191
International. FCStone*		1,230		49
Invesco Mortgage Capital‡		9,640		141
Investment Technology Group		2,688		53
Investors Bancorp		24,903		347
Investors Title		100		16
James River Group Holdings		1,165		48
Janus Capital Group		12,344		164
KCG Holdings, Cl A*		4,284		57
Kearny Financial		7,535		117
Kemper		3,394		150
Kinsale Capital Group		545		19
Ladder Capital, Cl A‡		3,129		43
Ladenburg Thalmann Financial Services*		8,400		20
Lake Sunapee Bank Group		640		15
Lakeland Bancorp		3,170		62
Lakeland Financial		1,969		93
LCNB		719		17
LegacyTexas Financial Group		3,791		163
LendingClub*		28,134		148
LendingTree*		519		53
Live Oak Bancshares		1,597		30
Macatawa Bank		2,160		22
Maiden Holdings		5,928		103
MainSource Financial Group		1,884		65
Manning & Napier, Cl A		1,600		12
MarketAxess Holdings		3,919		576
Marlin Business Services		800		17
MB Financial		6,392		302
MBIA*		10,745		115
MBT Financial		1,453		16
Medley Management, Cl A		300		3
Mercantile Bank		1,298		49
Merchants Bancshares		470		25
Meridian Bancorp		3,940		74
Meta Financial Group		672		69

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
MGIC Investment*		28,576	$	292
Middleburg Financial		383		13
Midland States Bancorp		301		11
MidWestOne Financial Group		674		25
Moelis, Cl A		1,518		51
Mortgage Investment Trust		2,294		39
MTGE Investment‡		3,757		59
MutualFirst Financial		444		15
National Bank Holdings, Cl A		103,801		3,310
National Bankshares		600		26
National Commerce*		700		26
National General Holdings		3,954		99
National Western Life Group, Cl A		193		60
Nationstar Mortgage Holdings*		2,642		48
Navigators Group		917		108
NBT Bancorp		3,628		152
Nelnet, Cl A		1,652		84
New Residential Investment‡		20,354		320
New York Mortgage Trust‡		8,986		59
NewStar Financial*		2,200		20
Nicolet Bankshares*		620		30
NMI Holdings, Cl A*		4,034		43
Northfield Bancorp		3,437		69
Northrim BanCorp		550		17
Northwest Bancshares		61,880		1,117
OceanFirst Financial		2,300		69
Ocwen Financial*		8,217		44
OFG Bancorp		3,533		46
Old Line Bancshares		683		16
Old National Bancorp		150,461		2,731
Old Second Bancorp		2,347		26
OM Asset Management		158,862		2,303
On Deck Capital*		3,918		18
OneBeacon Insurance Group, Cl A		33,174		532
Oppenheimer Holdings, Cl A		704		13
Opus Bank		48,737		1,465
Orchid Island Capital, Cl A‡		1,968		21
Oritani Financial		3,151		59
Orrstown Financial Services		604		14
Owens Realty Mortgage‡		1,000		19
Pacific Continental		1,698		37
Pacific Mercantile Bancorp*		1,600		12
Pacific Premier Bancorp*		11,579		409
PacWest Bancorp		24,027		1,308
Park National		1,139		136
Park Sterling		257,242		2,776


Description	Shares		Value (000)
Patriot National*		800	$	4
Peapack Gladstone Financial		1,284		40
Penns Woods Bancorp		352		18
PennyMac Financial Services, Cl A*		1,100		18
PennyMac Mortgage Investment Trust‡		5,566		91
Peoples Bancorp		1,328		43
Peoples Financial Services		600		29
People’s Utah Bancorp		1,061		28
PHH*		4,326		66
PICO Holdings*		1,900		29
Pinnacle Financial Partners		3,671		254
Piper Jaffray*		1,183		86
PJT Partners		1,447		45
PRA Group*		3,944		154
Preferred Bank		991		52
Premier Financial Bancorp		990		20
Primerica		59,464		4,111
PrivateBancorp		40,834		2,213
Prosperity Bancshares		27,277		1,958
Provident Bancorp*		360		6
Provident Financial Holdings		539		11
Provident Financial Services		5,226		148
Pzena Investment Management, Cl A		1,600		18
QCR Holdings		972		42
Radian Group		90,489		1,628
Redwood Trust‡		6,229		95
Regional Management*		900		24
Renasant		3,495		148
Republic Bancorp, Cl A		789		31
Republic First Bancorp*		4,646		39
Resource Capital‡		2,658		22
RLI		3,245		205
S&T Bancorp		2,789		109
Safeguard Scientifics*		1,644		22
Safety Insurance Group		1,175		87
Sandy Spring Bancorp		1,922		77
Seacoast Banking Corp of Florida*		2,418		53
Selective Insurance Group		4,849		209
ServisFirst Bancshares		3,943		148
Shore Bancshares		1,024		16
SI Financial Group		909		14
Sierra Bancorp		951		25
Silvercrest Asset Management Group, Cl A		700		9
Simmons First National, Cl A		2,506		156
Solar Capital		46,163		961
South State		2,020		177

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Southern First Bancshares*		468	$	17
Southern Missouri Bancorp		477		17
Southern National Bancorp of Virginia		62,365		1,019
Southside Bancshares		2,302		87
Southwest Bancorp		68,582		1,989
State Auto Financial		20,865		559
State Bank Financial		85,013		2,283
State National		2,492		35
Sterling Bancorp		10,797		253
Stewart Information Services		1,867		86
Stifel Financial*		26,842		1,341
Stock Yards Bancorp		1,735		81
Stonegate Bank		31,830		1,328
Stonegate Mortgage*		68,720		411
Suffolk Bancorp		1,000		43
Summit Financial Group		680		19
Sun Bancorp		940		24
Sunshine Bancorp*		19,128		328
Synovus Financial		39,240		1,612
TCF Financial		120,695		2,364
Territorial Bancorp		684		22
Texas Capital Bancshares*		10,156		796
Third Point Reinsurance*		5,397		62
Tiptree Financial		1,866		11
Tompkins Financial		1,185		112
Towne Bank		4,778		159
TriCo Bancshares		1,652		56
TriState Capital Holdings*		1,791		40
Triumph Bancorp*		1,400		37
Trupanion*		1,175		18
TrustCo Bank		7,457		65
Trustmark		5,753		205
UMB Financial		29,922		2,308
Umpqua Holdings		78,668		1,477
Union Bankshares		4,033		147
United Bankshares		5,594		259
United Community Banks		5,994		178
United Community Financial		4,100		37
United Financial Bancorp		4,095		74
United Fire Group		1,764		87
United Insurance Holdings		1,402		21
Universal Insurance Holdings		2,671		76
Univest Corp of Pennsylvania		2,025		63
Valley National Bancorp		21,106		246
Veritex Holdings*		674		18
Virtu Financial, Cl A		2,058		33


Description	Shares		Value (000)
Virtus Investment Partners		477	$	56
Waddell & Reed Financial, Cl A		6,802		133
Walker & Dunlop*		2,248		70
Walter Investment Management*		2,201		10
Washington Federal		7,626		262
Washington Trust Bancorp		1,216		68
WashingtonFirst Bankshares		23,361		677
Waterstone Financial		2,078		38
Webster Financial		7,697		418
WesBanco		54,291		2,338
West Bancorporation		1,400		35
Westamerica Bancorporation		6,639		418
Western Alliance Bancorp*		32,855		1,600
Western Asset Mortgage Capital‡		3,343		34
Western New England Bancorp		2,500		23
Westwood Holdings Group		652		39
Wins Finance Holdings*		100		18
Wintrust Financial		4,306		312
WisdomTree Investments		9,388		105
WMIH*		16,581		26
World Acceptance*		494		32
WSFS Financial		2,339		108
Xenith Bankshares*		630		18
Yadkin Financial		4,270		146
Zions Bancorporation		60,500		2,604

				161,569

Health Care — 10.5%
AAC Holdings*		1,000		7
Abaxis		1,791		95
ABIOMED*		15,160		1,708
Acadia Healthcare*		9,447		313
Accelerate Diagnostics*		1,881		39
Acceleron Pharma*		2,238		57
Accuray*		7,069		33
AcelRx Pharmaceuticals*		3,700		10
Aceto		2,376		52
Achillion Pharmaceuticals*		9,568		40
Aclaris Therapeutics*		1,075		29
Acorda Therapeutics*		3,511		66
Adamas Pharmaceuticals*		1,363		23
Addus HomeCare*		600		21
Adeptus Health, Cl A*		1,300		10
Aduro Biotech*		2,896		33
Advaxis*		2,927		21
Adverum Biotechnologies*		1,400		4
Aerie Pharmaceuticals*		2,467		93

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares			Value (000)
Aevi Genomic Medicine*		2,219	��	$	11
Agenus*		6,400			26
Agile Therapeutics*		1,100			6
Aimmune Therapeutics*		2,146			44
Air Methods*		2,906			93
Akebia Therapeutics*		2,934			31
Albany Molecular Research*		2,300			43
Alder Biopharmaceuticals*		3,825			80
Align Technology*		29,678			2,853
Almost Family*		700			31
AMAG Pharmaceuticals*		2,848			99
Amedisys*		2,284			97
American Renal Associates Holdings*		48,953			1,042
Amicus Therapeutics*		11,634			58
AMN Healthcare Services*		4,047			156
Amphastar Pharmaceuticals*		2,906			54
Ampio Pharmaceuticals*		4,600			4
Analogic		1,017			84
Anavex Life Sciences*		2,500			10
AngioDynamics*		2,203			37
ANI Pharmaceuticals*		647			39
Anika Therapeutics*		1,151			56
Anthera Pharmaceuticals*		3,900			3
Applied Genetic Technologies*		1,300			12
Aptevo Therapeutics*		1,689			4
Aratana Therapeutics*		2,724			20
Ardelyx*		2,550			36
Arena Pharmaceuticals*		20,022			28
Argos Therapeutics*		1,000			5
ARIAD Pharmaceuticals*		15,101			188
Array BioPharma*		14,322			126
Arrowhead Pharmaceuticals*		6,000			9
Asterias Biotherapeutics*		1,600			7
Atara Biotherapeutics*		1,897			27
Athersys*		8,000			12
AtriCure*		2,566			50
Atrion		111			56
Audentes Therapeutics*		469			9
Avexis*		595			28
Avinger*		1,100			4
AxoGen*		2,500			23
Axovant Sciences*		1,996			25
Axsome Therapeutics*		1,400			9
Bellicum Pharmaceuticals*		1,711			23
BioCryst Pharmaceuticals*		5,998			38
Bio-Path Holdings*		8,700			12


Description	Shares		Value (000)
BioScrip*		9,900	$	10
BioSpecifics Technologies*		500		28
BioTelemetry*		2,203		49
BioTime*		6,000		22
Bluebird Bio*		9,969		615
Blueprint Medicines*		1,634		46
Cambrex*		2,726		147
Cantel Medical		8,372		659
Capital Senior Living*		2,297		37
Cara Therapeutics*		1,715		16
Cardiovascular Systems*		55,314		1,339
Castlight Health, Cl B*		3,000		15
Catalent*		8,492		229
Celldex Therapeutics*		8,604		30
Cellular Biomedicine Group*		993		13
Cempra*		3,645		10
Cerus*		8,271		36
Charles River Laboratories International*		10,227		779
Chemed		10,470		1,679
ChemoCentryx*		1,879		14
Chimerix*		4,000		18
ChromaDex*		3,000		10
Cidara Therapeutics*		1,400		15
Civitas Solutions*		1,233		25
Clearside Biomedical*		673		6
Clovis Oncology*		2,595		115
Coherus Biosciences*		26,532		746
Collegium Pharmaceutical*		1,606		25
Community Health Systems*		9,014		50
Computer Programs & Systems		915		22
Concert Pharmaceuticals*		1,346		14
ConforMIS*		2,920		24
CONMED		2,252		99
Corcept Therapeutics*		6,100		44
Corindus Vascular Robotics*		2,500		2
CorVel*		900		33
Corvus Pharmaceuticals*		271		4
Cotiviti Holdings*		1,033		36
Cross Country Healthcare*		82,249		1,284
CryoLife		79,183		1,516
Curis*		9,800		30
Cutera*		1,000		17
Cynosure, Cl A*		17,902		816
Cytokinetics*		3,000		36
CytomX Therapeutics*		1,668		18
CytRx*		8,500		3

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Depomed*		72,083	$	1,299
Dermira*		2,009		61
Dimension Therapeutics*		1,300		6
Diplomat Pharmacy*		3,734		47
Durect*		10,400		14
Dynavax Technologies*		3,174		13
Eagle Pharmaceuticals*		12,283		974
Edge Therapeutics*		1,327		17
Editas Medicine*		561		9
Egalet*		1,809		14
Eiger BioPharmaceuticals*		400		5
Emergent BioSolutions*		2,652		87
Enanta Pharmaceuticals*		1,275		43
Endocyte*		2,600		7
Endologix*		6,619		38
Ensign Group		3,899		87
Entellus Medical*		612		12
Envision Healthcare*		31,236		1,977
Enzo Biochem*		3,240		22
Epizyme*		3,286		40
Esperion Therapeutics*		1,200		15
Evolent Health, Cl A*		1,306		19
Exact Sciences*		8,632		115
Exactech*		852		23
Exelixis*		111,581		1,663
FibroGen*		4,276		92
Five Prime Therapeutics*		2,203		110
Flex Pharma*		1,300		7
Flexion Therapeutics*		2,397		46
Fluidigm*		2,298		17
Fortress Biotech*		3,600		10
Foundation Medicine*		1,202		21
Fulgent Genetics*		700		8
Galena Biopharma*		1,090		2
Genesis Healthcare, Cl A*		4,000		17
GenMark Diagnostics*		3,878		47
Genomic Health*		1,525		45
Geron*		12,328		26
Glaukos*		1,365		47
Global Blood Therapeutics*		1,500		22
Globus Medical, Cl A*		5,995		149
GlycoMimetics*		1,300		8
Haemonetics*		4,370		176
Halozyme Therapeutics*		8,903		88
Halyard Health*		4,004		148
HealthEquity*		3,691		150


Description	Shares		Value (000)
HealthSouth		140,845	$	5,809
HealthStream*		2,101		53
Healthways*		46,947		1,068
Heron Therapeutics*		2,595		34
Heska*		500		36
HMS Holdings*		7,219		131
Horizon Pharma*		13,750		222
ICON*		11,445		861
ICU Medical*		9,291		1,369
Idera Pharmaceuticals*		7,300		11
IDEXX Laboratories*		33,520		3,932
Ignyta*		2,407		13
Immune Design*		1,000		6
ImmunoGen*		7,845		16
Immunomedics*		8,700		32
Impax Laboratories*		52,092		690
INC Research Holdings, Cl A*		3,536		186
Infinity Pharmaceuticals*		4,000		5
Innoviva*		6,601		71
Inogen*		1,332		89
Inotek Pharmaceuticals*		1,800		11
Inovio Pharmaceuticals*		5,419		38
Insmed*		5,056		67
Insulet*		4,924		186
Insys Therapeutics*		1,918		18
Integer Holdings*		2,497		74
Integra LifeSciences Holdings*		20,065		1,721
Intellia Therapeutics*		700		9
Intersect ENT*		34,394		416
Intra-Cellular Therapies, Cl A*		27,395		413
Invacare		2,588		34
Invitae*		2,858		23
InVivo Therapeutics Holdings*		3,200		13
iRadimed*		200		2
iRhythm Technologies*		700		21
IRIDEX*		800		11
Ironwood Pharmaceuticals, Cl A*		11,053		169
K2M Group Holdings*		122,543		2,456
Kadmon Holdings*		1,300		7
Karyopharm Therapeutics*		2,000		19
Keryx Biopharmaceuticals*		6,447		38
Kindred Healthcare		464,372		3,645
Kite Pharma*		3,350		150
La Jolla Pharmaceutical*		1,200		21
Landauer		780		38
Lannett*		2,262		50

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
LeMaitre Vascular		1,200	$	30
Lexicon Pharmaceuticals*		51,654		714
LHC Group*		1,224		56
Ligand Pharmaceuticals*		1,628		165
Lion Biotechnologies*		4,700		33
Lipocine*		1,700		6
Loxo Oncology*		1,089		35
Luminex*		3,243		66
MacroGenics*		2,603		53
Magellan Health*		2,030		153
MannKind*		26,479		17
Masimo*		3,482		235
Medicines*		5,745		195
MediciNova*		2,425		15
Medidata Solutions*		23,591		1,172
MEDNAX*		23,994		1,599
Medpace Holdings*		665		24
Meridian Bioscience		3,405		60
Merit Medical Systems*		92,657		2,455
Merrimack Pharmaceuticals*		9,965		41
Mettler-Toledo International*		2,885		1,208
MiMedx Group*		8,348		74
Minerva Neurosciences*		1,700		20
Mirati Therapeutics*		1,000		5
Molina Healthcare*		3,692		200
Momenta Pharmaceuticals*		5,307		80
MyoKardia*		1,052		14
Myovant Sciences*		1,200		15
Myriad Genetics*		5,513		92
NanoString Technologies*		9,361		209
NantHealth*		541		5
NantKwest*		1,300		7
Natera*		2,130		25
National HealthCare		914		69
National Research, Cl A		800		15
Natus Medical*		2,656		92
Nektar Therapeutics, Cl A*		12,169		149
Neogen*		3,107		205
NeoGenomics*		146,910		1,259
Neos Therapeutics*		1,122		7
Neurocrine Biosciences*		9,200		356
Nevro*		26,424		1,920
NewLink Genetics*		1,841		19
Nobilis Health*		5,800		12
Novan*		500		14
Novavax*		22,049		28


Description	Shares		Value (000)
Novocure*		4,136	$	32
NuVasive*		56,442		3,802
NxStage Medical*		5,450		143
Obalon Therapeutics*		900		8
Ocular Therapeutix*		2,000		17
Omeros*		3,303		33
Omnicell*		2,906		99
OncoMed Pharmaceuticals*		1,800		14
Ophthotech*		2,490		12
OraSure Technologies*		4,426		39
Organovo Holdings*		9,130		31
Orthofix International*		1,430		52
Osiris Therapeutics*		1,600		8
Otonomy*		1,962		31
OvaScience*		2,563		4
Owens & Minor		5,330		188
Oxford Immunotec Global*		1,900		28
Pacific Biosciences of California*		6,558		25
Pacira Pharmaceuticals*		2,976		96
Paratek Pharmaceuticals*		1,600		25
PAREXEL International*		37,258		2,449
PDL BioPharma		14,931		32
Penumbra*		2,180		139
Pfenex*		1,487		13
PharmAthene*		5,088		17
PharMerica*		2,412		61
Phibro Animal Health, Cl A		1,530		45
Portola Pharmaceuticals, Cl A*		4,022		90
PRA Health Sciences*		29,086		1,603
Prestige Brands Holdings*		27,203		1,417
Progenics Pharmaceuticals*		5,684		49
Protagonist Therapeutics*		620		14
Proteostasis Therapeutics*		700		9
Prothena*		2,971		146
Providence Service*		33,377		1,270
PTC Therapeutics*		2,716		30
Puma Biotechnology*		2,300		71
Quality Systems		4,173		55
Quidel*		58,334		1,250
Quorum Health*		2,422		18
Ra Pharmaceuticals*		900		14
Radius Health*		2,577		98
RadNet*		3,200		21
Reata Pharmaceuticals, Cl A*		464		10
REGENXBIO*		1,654		31
Regulus Therapeutics*		2,500		6

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Repligen*		2,757	$	85
Retrophin*		2,957		56
Revance Therapeutics*		1,669		35
Rigel Pharmaceuticals*		8,000		19
Rockwell Medical*		3,913		26
RTI Surgical*		4,100		13
Sage Therapeutics*		2,461		126
Sangamo BioSciences*		6,333		19
Sarepta Therapeutics*		4,095		112
SciClone Pharmaceuticals*		4,092		44
Second Sight Medical Products*		1,282		3
Select Medical Holdings*		8,717		116
Selecta Biosciences*		400		7
Senseonics Holdings*		2,900		8
Seres Therapeutics*		1,456		14
Sorrento Therapeutics*		2,100		10
Spark Therapeutics*		1,561		78
Spectranetics*		42,805		1,049
Spectrum Pharmaceuticals*		6,799		30
STAAR Surgical*		3,500		38
Stemline Therapeutics*		1,300		14
Sucampo Pharmaceuticals, Cl A*		2,100		28
Supernus Pharmaceuticals*		52,376		1,322
Surgery Partners*		1,520		24
Surgical Care Affiliates*		2,192		101
Surmodics*		1,100		28
Syndax Pharmaceuticals*		300		2
Synergy Pharmaceuticals*		14,815		90
Synthetic Biologics*		7,900		6
Syros Pharmaceuticals*		380		5
T2 Biosystems*		1,700		9
Tabula Rasa HealthCare*		700		10
Tactile Systems Technology*		340		6
Tandem Diabetes Care*		2,000		4
Team Health Holdings*		5,781		251
Teladoc*		1,694		28
Teligent*		3,381		22
TESARO*		21,524		2,894
Tetraphase Pharmaceuticals*		3,000		12
TG Therapeutics*		3,200		15
TherapeuticsMD*		12,255		71
Theravance Biopharma*		3,462		110
Titan Pharmaceuticals*		2,000		8
Tokai Pharmaceuticals*		1,000		1
TransEnterix*		5,800		8
Trevena*		3,653		21


Description	Shares		Value (000)
Triple-S Management, Cl B*		1,903	$	39
Trovagene*		1,700		4
Ultragenyx Pharmaceutical*		10,371		728
Universal American*		3,749		37
US Physical Therapy		988		69
Utah Medical Products		300		22
Vanda Pharmaceuticals*		88,782		1,415
Vascular Solutions*		1,376		77
Veracyte*		1,300		10
Versartis*		2,559		38
Vital Therapies*		1,934		8
Vocera Communications*		72,799		1,345
Voyager Therapeutics*		958		12
vTv Therapeutics, Cl A*		1,400		7
VWR*		124,870		3,124
WaVe Life Sciences*		604		16
WellCare Health Plans*		23,200		3,180
Wright Medical Group*		49,381		1,135
XBiotech*		1,428		14
Xencor*		3,126		82
Zafgen*		2,600		8
Zeltiq Aesthetics*		24,248		1,055
ZIOPHARM Oncology*		9,924		53
Zogenix*		2,026		25

				97,619

Industrials — 17.8%
AAON		3,299		109
AAR		45,949		1,519
ABM Industries		4,759		194
Acacia Research		4,419		29
ACCO Brands*		8,682		113
Actuant, Cl A		5,034		131
Advanced Disposal Services*		1,800		40
Advanced Drainage Systems		2,836		58
Advisory Board*		3,345		111
Aegion, Cl A*		2,854		68
AerCap Holdings*		37,516		1,561
Aerojet Rocketdyne Holdings*		4,865		87
Aerovironment*		1,672		45
Air Transport Services Group*		3,964		63
Aircastle		3,899		81
Alamo Group		770		59
Albany International, Cl A		18,880		874
Allegiant Travel, Cl A		1,127		188
Allied Motion Technologies		600		13
Altra Industrial Motion		31,120		1,148

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Ameresco, Cl A*		1,900	$	10
American Railcar Industries		700		32
American Superconductor*		1,200		9
American Woodmark*		1,129		85
AMETEK		48,000		2,332
Apogee Enterprises		2,433		130
Applied Industrial Technologies		3,100		184
Aqua Metals*		1,100		14
ARC Document Solutions*		3,500		18
ArcBest		36,528		1,010
Argan		1,092		77
Armstrong Flooring*		1,911		38
Astec Industries		25,586		1,726
Astronics, Cl A*		1,578		53
Atkore International Group*		992		24
Atlas Air Worldwide Holdings*		2,003		104
AZZ		12,585		804
Babcock & Wilcox Enterprises*		3,734		62
Barnes Group		38,946		1,847
Barrett Business Services		600		38
Beacon Roofing Supply*		5,095		235
Blue Bird*		400		6
BMC Stock Holdings*		11,002		215
Brady, Cl A		3,914		147
Briggs & Stratton		3,469		77
Brink’s		3,852		159
Builders FirstSource*		6,848		75
BWX Technologies, Cl W		35,495		1,409
Caesarstone*		1,946		56
CAI International*		60,498		525
Casella Waste Systems, Cl A*		79,234		983
CBIZ*		4,031		55
CEB		39,185		2,375
CECO Environmental		2,390		33
Celadon Group		371,576		2,657
Chart Industries*		2,497		90
CIRCOR International		1,346		87
CLARCOR		3,989		329
Cogint*		1,900		7
Columbus McKinnon		65,085		1,760
Comfort Systems USA		3,029		101
Commercial Vehicle Group*		155,265		859
Continental Building Products*		2,877		66
Costamare		2,161		12
Covanta Holding		119,136		1,859
Covenant Transportation Group, Cl A*		148,402		2,870


Description	Shares		Value (000)
CPI Aerostructures*		129,480	$	1,198
CRA International		651		24
CSW Industrials*		1,177		43
Cubic		2,058		99
Curtiss-Wright		3,718		366
Deluxe		50,064		3,585
DigitalGlobe*		116,196		3,328
DMC Global		1,145		18
Douglas Dynamics		1,807		61
Ducommun*		900		23
DXP Enterprises*		52,295		1,817
Dycom Industries*		37,566		3,016
Echo Global Logistics*		78,757		1,973
EMCOR Group		60,750		4,300
Encore Wire		1,651		72
Energous*		1,210		20
Energy Recovery*		2,873		30
EnerSys		3,659		286	��
Engility Holdings*		1,472		50
Ennis		2,090		36
EnPro Industries		1,763		119
ESCO Technologies		2,075		118
Essendant		3,043		64
Esterline Technologies*		2,520		225
ExOne*		892		8
Exponent		2,191		132
Federal Signal		4,900		76
Forward Air		22,337		1,058
Franklin Covey*		834		17
Franklin Electric		3,939		153
FreightCar America		1,000		15
FTI Consulting*		3,549		160
FuelCell Energy*		2,250		4
G&K Services, Cl A		1,675		162
GATX		56,568		3,482
Gencor Industries*		633		10
Generac Holdings*		5,571		227
General Cable		3,961		75
Genesee & Wyoming, Cl A*		60,043		4,168
Gibraltar Industries*		2,575		107
Global Brass & Copper Holdings		1,725		59
GMS*		700		20
Gorman-Rupp		1,439		45
GP Strategies*		17,401		498
Graham		900		20
Granite Construction		47,801		2,629

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Great Lakes Dredge & Dock*		5,100	$	21
Greenbrier		2,215		92
Griffon		2,470		65
H&E Equipment Services		2,578		60
Hardinge		1,200		13
Harsco		163,860		2,228
Hawaiian Holdings*		4,407		251
HC2 Holdings*		2,700		16
Healthcare Services Group		6,000		235
Heartland Express		3,762		77
Heidrick & Struggles International		1,600		39
Heritage-Crystal Clean*		1,100		17
Herman Miller		5,115		175
Hill International*		2,100		9
Hillenbrand		5,039		193
HNI		3,865		216
Hub Group, Cl A*		2,738		120
Hudson Technologies*		109,792		879
Hurco		500		17
Huron Consulting Group*		1,765		89
Hyster-Yale Materials Handling		770		49
ICF International*		1,474		81
IES Holdings*		639		12
InnerWorkings*		176,559		1,739
Insperity		1,282		91
Insteel Industries		1,431		51
Interface, Cl A		134,684		2,498
ITT		129,427		4,991
John Bean Technologies		19,566		1,682
Joy Global		8,403		235
Kadant		876		54
Kaman		2,191		107
KBR		292,468		4,882
Kelly Services, Cl A		2,397		55
Kennametal		41,302		1,291
KEYW Holding*		2,931		35
Kforce		2,002		46
Kimball International, Cl B		3,015		53
Kirby*		37,660		2,505
KLX*		24,437		1,102
Knight Transportation		5,715		189
Knoll		3,925		110
Korn		91,048		2,680
Kratos Defense & Security Solutions*		5,300		39
Lawson Products*		600		14
Layne Christensen*		1,478		16


Description		Shares		Value (000)
Lindsay			866	$	65
LSI Industries			1,942		19
Lydall*			1,357		84
Manitowoc			10,387		62
Marten Transport			110,814		2,582
Masonite International*			2,595		171
MasTec*			46,780		1,789
Matson			3,707		131
Matthews International, Cl A			29,535		2,270
McGrath RentCorp			130,496		5,115
Mercury Systems*			126,812		3,832
Meritor*			17,175		213
Middleby*			21,500		2,769
Milacron Holdings*			1,187		22
Miller Industries			900		24
Mistras Group*			1,401		36
Mobile Mini			3,618		109
Moog, Cl A*			46,200		3,034
MRC Global*			8,011		162
MSA Safety			2,653		184
Mueller Industries			4,835		193
Mueller Water Products, Cl A			13,312		177
Multi-Color			1,110		86
MYR Group*			1,300		49
National Presto Industries			402		43
Navigant Consulting*			3,883		102
Navistar International*			4,240		133
NCI Building Systems*			2,400		38
Neff, Cl A*			700		10
NL Industries*			1,200		10
NN			2,143		41
NOW*			9,133		187
NV5 Global*			599		20
Old Dominion Freight Line*			13,440		1,153
Omega Flex			200		11
On Assignment*	��		69,281		3,058
Orbital ATK			19,377		1,700
Orion Group Holdings*			2,300		23
Oshkosh			19,595		1,266
PAM Transportation Services*			200		5
Park-Ohio Holdings			700		30
Patrick Industries*			1,185		90
PGT Innovations*			129,160		1,480
Pitney Bowes			141,460		2,149
Plug Power*			15,992		19
Ply Gem Holdings*			1,900		31

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Powell Industries		710	$	28
Power Solutions International*		400		3
Preformed Line Products		205		12
Primoris Services		106,777		2,432
Proto Labs*		2,014		103
Quad		2,368		64
Quanex Building Products		2,796		57
Quanta Services*		47,015		1,638
Radiant Logistics*		474,300		1,850
Raven Industries		2,963		75
RBC Bearings*		13,999		1,299
Resources Connection		2,900		56
Revolution Lighting Technologies*		213,648		1,175
Rexnord*		7,098		139
Roadrunner Transportation Systems*		2,589		27
RPX*		4,055		44
Rush Enterprises, Cl A*		2,944		94
Saia*		2,058		91
Scorpio Bulkers*		4,755		24
Simpson Manufacturing		3,549		155
SiteOne Landscape Supply*		950		33
SkyWest		4,293		156
Snap-on		18,600		3,185
SP Plus*		51,223		1,442
Sparton*		800		19
Spirit Airlines*		61,395		3,553
SPX*		3,394		81
SPX FLOW*		23,217		744
Standex International		1,038		91
Steelcase, Cl A		7,377		132
Sun Hydraulics		1,900		76
Sunrun*		5,164		27
Supreme Industries, Cl A		1,059		17
Swift Transportation, Cl A*		57,074		1,390
TASER International*		4,264		103
Team*		2,360		93
Teledyne Technologies*		2,894		356
Tennant		1,430		102
Terex		74,221		2,340
Tetra Tech		4,929		213
Textainer Group Holdings		306,110		2,281
Thermon Group Holdings*		2,612		50
Titan International		3,614		41
Titan Machinery*		24,460		356
TPI Composites*		491		8
TRC*		1,600		17


Description	Shares		Value (000)
Trex*		2,521	$	162
TriMas*		3,681		87
TriNet Group*		3,440		88
Triton International		3,275		52
Triumph Group		4,027		107
TrueBlue*		3,439		85
Tutor Perini*		3,084		86
UniFirst		1,290		185
Univar*		46,306		1,314
Universal Forest Products		1,693		173
Universal Logistics Holdings		800		13
US Ecology		1,783		88
USA Truck*		600		5
Vectrus*		873		21
Veritiv*		673		36
Viad		1,643		72
Vicor*		1,300		20
VSE		703		27
Wabash National		110,063		1,741
Wabtec		14,322		1,189
WageWorks*		21,361		1,549
Watts Water Technologies, Cl A		2,378		155
Werner Enterprises		3,649		98
Wesco Aircraft Holdings*		4,545		68
WESCO International*		14,375		957
West		3,529		87
Willis Lease Finance*		400		10
Woodward		4,425		306
XPO Logistics*		8,199		354
YRC Worldwide*		2,658		35

				165,769

Information Technology — 17.5%
2U*		2,995		90
3D Systems*		9,195		122
8x8*		101,489		1,451
A10 Networks*		3,599		30
Acacia Communications*		428		26
ACI Worldwide*		51,361		932
Actua*		3,207		45
Acxiom*		54,693		1,466
ADTRAN		100,113		2,237
Advanced Energy Industries*		34,340		1,880
Advanced Micro Devices*		63,811		724
Aerohive Networks*		2,200		13
Agilysys*		1,400		15
Alarm.com Holdings*		842		23

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
ALJ Regional Holdings*		1,900	$	8
Alpha & Omega Semiconductor*		1,483		32
Ambarella*		2,739		148
Amber Road*		1,446		13
American Software, Cl A		2,106		22
Amkor Technology*		8,177		86
Angie’s List*		3,246		27
Anixter International*		2,474		201
Appfolio, Cl A*		700		17
Applied Micro Circuits*		6,199		51
Applied Optoelectronics*		1,347		32
Apptio, Cl A*		800		15
Aspen Technology*		27,119		1,483
Autobytel*		900		12
Avid Technology*		2,800		12
AVX		3,800		59
Axcelis Technologies*		2,380		35
Badger Meter		2,291		85
Bankrate*		4,168		46
Barracuda Networks*		46,397		994
Bazaarvoice*		374,233		1,815
Bel Fuse, Cl B		756		23
Belden		42,450		3,174
Benchmark Electronics*		35,510		1,083
Benefitfocus*		1,051		31
Black Box		1,300		20
Blackbaud		3,955		253
Blackhawk Network Holdings, Cl A*		34,892		1,315
Blackline*		800		22
Blucora*		3,202		47
Booz Allen Hamilton Holding, Cl A		35,300		1,273
Bottomline Technologies*		52,261		1,308
Box, Cl A*		3,986		55
Brightcove*		2,600		21
BroadSoft*		2,402		99
Brooks Automation		5,548		95
Cabot Microelectronics		25,371		1,603
CACI International, Cl A*		7,372		916
CalAmp*		65,346		948
Calix*		3,500		27
Callidus Software*		4,978		84
Carbonite*		1,600		26
Cardtronics*		3,844		210
Care.com*		1,100		9
Cass Information Systems		895		66
Cavium*		5,484		342


Description	Shares		Value (000)
CEVA*		1,609	$	54
ChannelAdvisor*		1,895		27
Ciena*		11,517		281
Cimpress*		2,141		196
Cirrus Logic*		5,332		301
Clearfield*		900		19
Cognex		19,700		1,253
Coherent*		8,267		1,136
Cohu		80,049		1,113
CommScope Holding*		75,800		2,819
CommVault Systems*		51,367		2,640
comScore*		4,090		129
Comtech Telecommunications		19,746		234
Control4*		1,641		17
Convergys		7,595		187
Cornerstone OnDemand*		4,299		182
Coupa Software*		700		18
CPI Card Group		1,500		6
Cray*		3,288		68
CSG Systems International		2,747		133
CSRA		46,360		1,476
CTS		2,558		57
Cypress Semiconductor		201,735		2,308
CYREN*		286,618		616
Daktronics		3,200		34
Datalink*		1,700		19
DHI Group*		4,097		26
Diebold Nixdorf		192,680		4,847
Digi International*		2,116		29
Digimarc*		800		24
Diodes*		3,110		80
DSP Group*		1,900		25
DST Systems		27,540		2,951
EarthLink Holdings		8,582		48
Eastman Kodak*		1,500		23
Ebix		2,059		117
Electro Scientific Industries*		2,245		13
Electronics For Imaging*		47,856		2,099
Ellie Mae*		2,793		234
EMCORE		2,400		21
Endurance International Group Holdings*		4,900		46
EnerNOC*		2,300		14
Entegris*		12,060		216
Envestnet*		3,383		119
EPAM Systems*		4,106		264
ePlus*		516		59

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Euronet Worldwide*		29,337	$	2,125
Everbridge*		900		17
EVERTEC		5,189		92
Exa*		1,132		17
Exar*		3,334		36
ExlService Holdings*		2,786		141
Extreme Networks*		8,440		42
Fabrinet*		2,847		115
Fair Isaac		2,631		314
FARO Technologies*		1,355		49
Finisar*		8,982		272
Five9*		160,364		2,275
FLIR Systems		45,633		1,651
FormFactor*		5,614		63
Forrester Research		811		35
Gartner*		8,381		847
Gigamon*		2,784		127
GigPeak*		4,800		12
Global Sources*		1,000		9
Globant*		2,099		70
Glu Mobile*		9,800		19
Gogo*		30,234		279
GrubHub*		29,697		1,117
GTT Communications*		54,324		1,562
Guidance Software*		1,700		12
Hackett Group		2,000		35
Harmonic*		6,927		35
Hortonworks*		305,375		2,537
HubSpot*		2,357		111
II-VI*		5,091		151
Immersion*		2,352		25
Imperva*		2,342		90
Impinj*		17,416		615
Infinera*		45,731		388
Information Services Group*		3,200		12
Inphi*		29,199		1,303
Insight Enterprises*		23,809		963
Instructure*		900		18
Integrated Device Technology*		11,309		266
InterDigital		2,930		268
Intersil, Cl A		11,442		255
InterXion Holding*		21,915		769
Intralinks Holdings*		3,378		46
InvenSense, Cl A*		6,677		85
Itron*		58,897		3,703
Ixia*		5,240		84


Description	Shares		Value (000)
IXYS		2,200	$	26
j2 Global		3,946		323
Jive Software*		4,714		21
Kimball Electronics*		2,450		45
Knowles*		67,218		1,123
Kopin*		5,200		15
KVH Industries*		1,300		15
Lattice Semiconductor*		9,797		72
Limelight Networks*		7,400		19
Lionbridge Technologies*		4,658		27
Liquidity Services*		34,918		340
Littelfuse		1,884		286
LivePerson*		4,351		33
Logitech International		36,185		896
LogMeIn		16,788		1,621
Lumentum Holdings*		22,785		881
MACOM Technology Solutions Holdings*		1,902		88
ManTech International, Cl A		2,019		85
Marchex, Cl B		2,200		6
Marin Software*		354,246		832
Match Group*		50,000		855
Mattersight*		318,885		1,180
MAXIMUS		5,462		305
MaxLinear, Cl A*		4,561		99
Maxwell Technologies*		2,572		13
MeetMe*		3,370		17
Mentor Graphics		8,953		330
Mesa Laboratories		245		30
Methode Electronics		3,125		129
Micron Technology*		138,700		3,040
Microsemi*		109,852		5,930
MicroStrategy, Cl A*		812		160
MINDBODY, Cl A*		55,076		1,173
Mitek Systems*		2,404		15
MKS Instruments		21,248		1,262
MobileIron*		3,500		13
Mobileye*		112,220		4,279
Model N*		234,693		2,077
MoneyGram International*		2,486		29
Monolithic Power Systems		22,101		1,811
Monotype Imaging Holdings		3,313		66
MTS Systems		1,367		78
Nanometrics*		1,932		48
NCI, Cl A		700		10
NeoPhotonics*		2,517		27
NETGEAR*		2,770		151

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Netlist*		398,357	$	406
NetScout Systems*		7,635		241
NeuStar, Cl A*		4,632		155
New Relic*		1,793		51
NIC		5,440		130
Nimble Storage*		5,141		41
Novanta*		83,031		1,744
Numerex, Cl A*		1,400		10
NVE		400		29
Oclaro*		109,429		978
ON Semiconductor*		75,815		967
OSI Systems*		1,430		109
Park City Group*		1,100		14
Park Electrochemical		1,578		29
Paycom Software*		3,759		171
Paylocity Holding*		1,760		53
PC Connection		927		26
PDF Solutions*		36,294		818
Pegasystems		2,946		106
Perficient*		2,880		50
PFSweb*		1,200		10
Photronics*		5,331		60
Planet Payment*		3,457		14
Plantronics		2,838		155
Plexus*		2,852		154
Power Integrations		2,344		159
Progress Software		4,290		137
Proofpoint*		9,331		659
PROS Holdings*		31,967		688
Pure Storage, Cl A*		5,566		63
Q2 Holdings*		2,088		60
QAD, Cl A		769		23
Qualys*		2,221		70
Quantenna Communications*		800		15
QuickLogic*		178,226		248
QuinStreet*		2,600		10
Quotient Technology*		5,235		56
Radisys*		264,988		1,174
Rambus*		9,318		128
Rapid7*		1,625		20
RealNetworks*		2,200		11
RealPage*		29,672		890
Reis		723		16
RetailMeNot*		3,400		32
Rightside Group*		1,200		10
RingCentral, Cl A*		90,987		1,874


Description	Shares		Value (000)
Rogers*		25,758	$	1,978
Rosetta Stone*		1,576		14
Rubicon Project*		3,040		23
Rudolph Technologies*		2,446		57
Sanmina*		6,262		230
Sapiens International		2,047		29
ScanSource*		2,051		83
Science Applications International		3,555		301
Seachange International*		208,054		479
SecureWorks, Cl A*		600		6
Semtech*		5,521		174
ServiceNow*		41,935		3,117
ServiceSource International*		4,983		28
SharpSpring*		113,193		597
Shopify, Cl A*		49,640		2,128
ShoreTel*		419,963		3,002
Shutterstock*		1,549		74
Sigma Designs*		2,928		18
Silicom		459		19
Silicon Laboratories*		3,518		229
Silver Spring Networks*		3,094		41
Sonus Networks*		3,896		25
SPS Commerce*		1,353		95
Square, Cl A*		104,275		1,421
Stamps.com*		23,114		2,649
Stratasys*		4,006		66
Super Micro Computer*		3,157		89
Sykes Enterprises*		3,160		91
Synaptics*		2,998		161
Synchronoss Technologies*		3,814		146
SYNNEX		2,488		301
Syntel		2,637		52
Systemax		1,100		10
Take-Two Interactive Software*		56,158		2,768
Tangoe*		2,257		18
Tech Data*		2,981		252
TechTarget*		1,400		12
Telenav*		226,272		1,595
TeleTech Holdings		1,341		41
Tessera Holding		101,931		4,506
TiVo*		40,725		851
Trade Desk, Cl A*		600		17
Travelport Worldwide		9,896		140
Trimble*		34,600		1,043
TrueCar*		4,438		55
TTM Technologies*		5,919		81

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Ubiquiti Networks*		2,224	$	129
Ultra Clean Holdings*		2,800		27
Ultratech*		1,904		46
Unisys*		4,102		61
Universal Display*		31,465		1,771
USA Technologies*		3,700		16
Vantiv, Cl A*		14,800		882
Varonis Systems*		17,065		457
VASCO Data Security International*		2,463		34
Veeco Instruments*		15,029		438
VeriFone Systems*		46,211		819
Verint Systems*		5,302		187
ViaSat*		13,031		863
Viavi Solutions*		20,050		164
VirnetX Holding*		3,600		8
Virtusa*		2,259		57
Vishay Intertechnology		204,586		3,314
Vishay Precision Group*		900		17
Web.com Group*		3,472		73
WebMD Health, Cl A*		3,192		158
WEX*		9,555		1,066
Wix.com*		26,440		1,178
Workiva, Cl A*		1,794		24
Xactly*		1,864		21
Xcerra*		4,322		33
XO Group*		2,075		40
Yelp, Cl A*		31,225		1,191
Zebra Technologies, Cl A*		15,540		1,333
Zendesk*		6,946		147
Zix*		4,700		23

				163,366

Materials — 5.5%
A Schulman		51,263		1,715
AEP Industries		330		38
AgroFresh Solutions*		2,300		6
AK Steel Holding*		26,073		266
Alamos Gold, Cl A		60,980		417
Albemarle		20,000		1,722
Allegheny Technologies		55,049		877
American Vanguard		2,305		44
Ampco-Pittsburgh		699		12
AptarGroup		38,230		2,809
Avery Dennison		37,445		2,629
Balchem		2,683		225
Berry Plastics Group*		25,430		1,239
Boise Cascade*		7,306		164


Description	Shares		Value (000)
Calgon Carbon		4,114	$	70
Carpenter Technology		53,444		1,933
Century Aluminum*		4,074		35
Chase		577		48
Chemours		15,583		344
Chemtura*		5,441		181
Clearwater Paper*		1,385		91
Cliffs Natural Resources*		18,852		159
Codexis*		2,734		13
Coeur Mining*		15,331		139
Commercial Metals		93,977		2,047
Compass Minerals International		38,376		3,007
Deltic Timber		867		67
Ferro*		6,797		97
Ferroglobe PLC*		5,340		58
Ferroglobe Representation* (C)		5,900		—
Flotek Industries*		4,471		42
Forterra*		1,500		32
FutureFuel		2,038		28
GCP Applied Technologies*		109,543		2,930
Gold Resource		4,083		18
Graphic Packaging Holding		213,480		2,664
Greif, Cl A		2,558		139
Handy & Harman*		200		5
Hawkins		785		42
Haynes International		28,145		1,210
HB Fuller		4,277		207
Headwaters*		6,226		146
Hecla Mining		32,607		171
Ingevity*		3,635		199
Innophos Holdings		1,579		83
Innospec		2,021		138
Kaiser Aluminum		1,446		112
KapStone Paper and Packaging		7,381		163
KMG Chemicals		800		31
Koppers Holdings*		1,661		67
Kraton*		31,933		909
Kronos Worldwide		165,033		1,970
Louisiana-Pacific*		12,288		233
LSB Industries*		1,685		14
Materion		1,625		64
Mercer International		124,436		1,324
Minerals Technologies		2,955		228
Multi Packaging Solutions International*		79,801		1,138
Myers Industries		1,772		25
Neenah Paper		1,355		115
Olin		14,084		361

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Olympic Steel		749	$	18
OMNOVA Solutions*		3,469		35
PH Glatfelter		3,550		85
PolyOne		155,947		4,998
Quaker Chemical		1,107		142
Rayonier Advanced Materials		3,515		54
Real Industry*		2,140		13
Ryerson Holding*		1,000		13
Schnitzer Steel Industries, Cl A		2,131		55
Schweitzer-Mauduit International		2,473		113
Sensient Technologies		17,187		1,351
Silgan Holdings		57,757		2,957
Stepan		1,681		137
Stillwater Mining*		10,450		168
Summit Materials, Cl A*		6,590		157
SunCoke Energy*		5,265		60
TerraVia Holdings*		6,500		7
TimkenSteel*		3,221		50
Trecora Resources*		1,600		22
Tredegar		2,076		50
Trinseo		2,347		139
Tronox, Cl A		5,266		54
UFP Technologies*		523		13
United States Lime & Minerals		200		15
US Concrete*		27,469		1,800
Valhi		2,200		8
Westlake Chemical		59,950		3,357
Worthington Industries		3,846		182

				51,313

Real Estate — 2.9%
Acadia Realty Trust‡		6,816		223
Agree Realty‡		2,158		99
Alexander & Baldwin		3,983		179
Alexander’s‡		175		75
Altisource Portfolio Solutions*		1,064		28
American Assets Trust‡		3,349		144
Armada Hoffler Properties‡		2,719		40
Ashford Hospitality Prime‡		2,067		28
Ashford Hospitality Trust‡		6,384		50
AV Homes*		1,000		16
Bluerock Residential Growth, Cl A‡		1,533		21
Brandywine Realty Trust‡		93,491		1,543
CareTrust‡		5,502		84
CatchMark Timber Trust, Cl A‡		3,171		36
CBL & Associates Properties‡		14,426		166
Cedar Realty Trust		6,741		44


Description	Shares		Value (000)
Chatham Lodging Trust‡		3,065	$	63
Chesapeake Lodging Trust‡		5,093		132
City Office REIT‡		2,000		26
Colony Starwood Homes‡		5,560		160
Community Healthcare Trust‡		1,030		24
Consolidated-Tomoka Land		300		16
CorEnergy Infrastructure Trust‡		976		34
CoreSite Realty‡		2,858		227
Cousins Properties‡		28,847		245
CyrusOne‡		20,030		896
DiamondRock Hospitality‡		17,138		198
DuPont Fabros Technology		6,294		276
Easterly Government Properties‡		2,657		53
EastGroup Properties‡		2,697		199
Education Realty Trust‡		6,261		265
Farmland Partners‡		1,200		13
FelCor Lodging Trust‡		42,504		340
First Industrial Realty Trust‡		9,788		275
First Potomac Realty Trust‡		4,736		52
Forestar Group*		2,791		37
Four Corners Property Trust‡		4,935		101
Franklin Street Properties‡		8,531		111
FRP Holdings*		500		19
GEO Group‡		6,332		228
Getty Realty‡		2,140		55
Gladstone Commercial‡		2,225		45
Global Medical REIT‡		1,240		11
Global Net Lease‡		13,933		109
Government Properties Income Trust‡		5,727		109
Gramercy Property Trust‡		35,309		324
Healthcare Realty Trust‡		9,526		289
Hersha Hospitality Trust, Cl A‡		3,382		73
HFF, Cl A		2,931		89
Hudson Pacific Properties		9,141		318
Independence Realty Trust‡		5,275		47
InfraREIT‡		3,253		58
Investors Real Estate Trust‡		9,895		71
iStar‡*		5,601		69
Kennedy-Wilson Holdings		7,060		145
Kite Realty Group Trust‡		7,069		166
LaSalle Hotel Properties‡		8,917		272
Lexington Realty Trust‡		19,615		212
LTC Properties‡		3,225		152
Mack-Cali Realty		7,614		221
Marcus & Millichap*		1,300		35
MedEquities Realty Trust‡		75,719		840

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Medical Properties Trust		24,657	$	303
Monmouth Real Estate Investment, Cl A‡		5,751		88
Monogram Residential Trust‡		14,411		156
National Health Investors‡		3,177		236
National Storage Affiliates Trust		2,868		63
New Senior Investment Group‡		6,234		61
New York‡		14,149		143
NexPoint Residential Trust‡		1,467		33
NorthStar Realty Europe‡		4,870		61
One Liberty Properties‡		1,079		27
Outfront Media‡		222,351		5,529
Parkway‡*		3,456		77
Pebblebrook Hotel Trust‡		6,107		182
Pennsylvania‡		5,579		106
Physicians Realty Trust‡		11,526		219
Potlatch		47,679		1,985
Preferred Apartment Communities, Cl A‡		2,000		30
PS Business Parks		1,683		196
QTS Realty Trust, Cl A‡		45,636		2,265
RAIT Financial Trust‡		7,497		25
Ramco-Gershenson Properties Trust‡		6,434		107
RE/MAX Holdings, Cl A		1,450		81
Retail Opportunity Investments‡		9,184		194
Rexford Industrial Realty‡		5,623		130
RLJ Lodging Trust‡		10,388		254
RMR Group		565		22
Ryman Hospitality Properties‡		3,704		233
Sabra Health Care‡		5,536		135
Saul Centers‡		784		52
Select Income‡		5,435		137
Seritage Growth Properties‡		2,039		87
Silver Bay Realty Trust‡		2,715		47
St. Joe*		4,125		78
STAG Industrial‡		52,591		1,255
Stratus Properties*		600		20
Summit Hotel Properties‡		7,069		113
Sunstone Hotel Investors‡		18,257		278
Tejon Ranch*		1,137		29
Terreno Realty‡		3,690		105
Tier REIT‡		3,900		68
Trinity Place Holdings*		1,582		15
UMH Properties‡		1,991		30
Universal Health Realty Income Trust‡		1,015		67
Urban Edge Properties‡		7,658		211
Urstadt Biddle Properties, Cl A‡		2,390		58


Description	Shares		Value (000)
Washington‡		6,267	$	205
Washington Prime Group‡		15,887		165
Whitestone, Cl B‡		2,137		31
Xenia Hotels & Resorts‡		8,839		172

				26,640

Telecommunication Services — 0.3%
ATN International		861		69
Boingo Wireless*		3,100		38
Cincinnati Bell*		3,436		77
Cogent Communications Holdings		3,557		147
Consolidated Communications Holdings		4,057		109
FairPoint Communications*		1,733		32
General Communication, Cl A*		2,364		46
Globalstar*		33,082		52
Hawaiian Telcom Holdco*		600		15
IDT, Cl B		1,500		28
Inteliquent		2,663		61
Intelsat*		2,400		6
Iridium Communications*		6,736		65
Lumos Networks*		1,545		24
NII Holdings*		5,600		12
ORBCOMM*		5,279		44
pdvWireless*		800		18
Shenandoah Telecommunications		3,778		103
Spok Holdings		1,800		37
Straight Path Communications*		800		27
Vonage Holdings*		210,081		1,440
Windstream Holdings		7,842		57

				2,507

Utilities — 1.7%
ALLETE		32,904		2,112
American States Water		3,127		142
AquaVenture Holdings*		10,428		257
Artesian Resources, Cl A		700		22
Atlantic Power		9,958		25
Atlantica Yield		4,807		93
Avista		5,401		216
Black Hills		4,317		265
California Water Service Group		4,114		139
Chesapeake Utilities		1,290		86
Connecticut Water Service		885		49
Consolidated Water		1,400		15
Delta Natural Gas		558		16
Dynegy, Cl A*		355,181		3,005
El Paso Electric		3,455		161

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund


Description	Shares		Value (000)
Empire District Electric		38,325	$	1,306
Genie Energy, Cl B		1,200		7
Global Water Resources		1,000		9
IDACORP		4,228		341
MGE Energy		2,985		195
Middlesex Water		1,296		56
New Jersey Resources		7,212		256
Northwest Natural Gas		2,326		139
NorthWestern		4,149		236
NRG Yield, Cl A		8,037		126
ONE Gas		4,356		279
Ormat Technologies		3,322		178
Otter Tail		3,253		133
Pattern Energy Group, Cl A		5,417		103
PNM Resources		6,818		234
Portland General Electric		7,512		325
SJW Group		1,333		75
South Jersey Industries		6,808		229
Southwest Gas Holdings		3,968		304
Spark Energy, Cl A		500		15
Spire		3,810		246
Suburban Propane Partners (A)		112,460		3,382
TerraForm Global, Cl A		7,462		29
TerraForm Power, Cl A*		7,142		91
Unitil		15,874		719
Vivint Solar*		1,800		5
WGL Holdings		4,224		322
York Water		1,050		40

				15,983

Total Common Stock (Cost $795,167) (000)				884,733

EXCHANGE TRADED FUNDS — 0.4%
iShares Russell 2000		13,251		1,787
iShares Russell 2000 Value		13,376		1,592

Total Exchange Traded Funds (Cost $2,995) (000)				3,379

RIGHTS — 0.0%*
	Number of Rights
Chelsea Therapeutics International†		2,000		—
Durata Therapeutics†		900		—
Dyax, Expires 12/31/2019		12,613		—
Leap Wireless†		2,300		—
Tobira Therapeutics, Expires 12/31/2028		900		—

Total Rights (Cost $12) (000)				—


Description	Shares		Value (000)
SHORT-TERM INVESTMENT — 5.0%
State Street Institutional Treasury Money Market Fund, Cl Institutional, 0.406% (B)		46,103,998	$	46,104

Total Short-Term Investment (Cost $46,104) (000)				46,104

Total Investments — 100.4% (Cost $844,278) (000)			$	934,216

Percentages are based on net assets of $930,815 (000).

A list of the open futures contracts held by the Fund at December 31, 2016, is as follows (000):

For the year ended December 31, 2016, the monthly average value of futures contracts held was $13,232 (000).

*	Non-income producing security.

‡	Real Estate Investment Trust

†	Expiration date is unavailable.

(A)

Security considered Master Limited Partnership. At December 31, 2016, this security amounted to $4,728 (000) or 0.5% of Net Assets.

(B)

The rate reported is the 7-day effective yield as of December 31, 2016.

(C)

Cl — Class

The following is a list of the level of inputs used as of December 31, 2016, 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	$	884,733		$	—	$	—	$	884,733
Exchange Traded Funds		3,379			—		—		3,379
Rights		—			—		—		—
Short-Term Investment		46,104			—		—		46,104

Total Investments in Securities	$	934,216		$	—	$	—	$	934,216


Other Financial Instruments	Level 1			Level 2		Level 3^		Total
Futures Contracts**
Unrealized Depreciation	$	(197	)	$	—	$	—	$	(197	)

Total Other Financial Instruments	$	(197	)	$	—	$	—	$	(197	)

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

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


THE KP FUNDS		December 31, 2016


KP Small Cap Equity Fund

For the year ended December 31, 2016, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended December 31, 2016, 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, 2016


KP International Equity Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

COMMON STOCK — 95.9%
Australia — 2.9%
AGL Energy		20,699	$	330
ALS		104,942		457
Alumina		740,245		978
Amcor		53,806		580
AMP		86,178		313
APA Group		33,336		206
Aristocrat Leisure		15,559		174
Asaleo Care		134,146		143
ASX		5,787		208
Aurizon Holdings		59,781		218
AusNet Services		56,942		65
Australia & New Zealand Banking Group		88,970		1,953
Bank of Queensland		11,372		97
Bendigo & Adelaide Bank		13,797		127
BHP Billiton		117,017		2,117
BlueScope Steel		162,215		1,087
Boral		35,384		138
Brambles		47,548		425
Caltex Australia		7,573		166
Challenger		16,280		132
CIMIC Group		2,989		75
Cleanaway Waste Management		687,267		610
Coca-Cola Amatil		141,447		1,033
Cochlear		1,677		148


Description	Shares		Value (000)

Commonwealth Bank of Australia		52,093	$	3,099
Computershare		14,270		128
Cover-More Group		66,489		93
Crown Resorts		10,292		86
CSL		13,894		1,007
Dexus Property Group‡		27,819		193
Domino’s Pizza Enterprises		1,846		87
DUET Group		72,969		144
DuluxGroup		47,182		212
Fairfax Media		628,614		404
Flight Centre Travel Group		1,602		36
Fortescue Metals Group		45,363		193
Goodman Group‡		54,981		283
GPT Group‡		53,804		195
GUD Holdings		27,985		211
Harvey Norman Holdings		17,063		63
Healthscope		49,589		82
Iluka Resources		62,724		329
Incitec Pivot		50,632		132
Insurance Australia Group		70,855		306
Lend Lease Group		15,979		169
Macquarie Group		9,159		576
Medibank		79,322		161
Metcash		182,013		299
Mirvac Group‡		109,918		169
National Australia Bank		80,766		1,788
Newcrest Mining		61,193		894
Oil Search		39,334		204
Orica		172,909		2,207
Origin Energy		52,832		251
Orora		37,168		80
Premier Investments		3,000		31
Qantas Airways		16,683		40
QBE Insurance Group		41,146		369
Ramsay Health Care		4,122		203
REA Group		1,468		59
Rio Tinto PLC		12,685		548
Santos		96,011		279
Scentre Group‡		159,320		533
SEEK		9,870		106
Sigma Pharmaceuticals		205,328		191
Sonic Healthcare		11,828		183
South32		115,509		229
Spotless Group Holdings		233,135		167
Stockland‡		70,074		232
Suncorp Group		39,409		385

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Sydney Airport		32,109	$	139
Tabcorp Holdings		25,505		89
Tatts Group		44,051		142
Telstra		128,143		471
TPG Telecom		9,905		49
Transurban Group		61,182		455
Treasury Wine Estates		22,144		171
Vicinity Centres‡		100,524		217
Vocus Communications		14,238		40
Wesfarmers		34,284		1,042
Westfield‡		60,445		409
Westpac Banking		101,666		2,392
Woodside Petroleum		22,686		510
Woolworths		38,215		665

				36,207

Austria — 0.1%
ANDRITZ		6,802		342
Erste Group Bank		8,766		256
Oesterreichische Post		9,241		310
OMV		4,318		153
Raiffeisen Bank International		3,314		61
Voestalpine		3,444		135
Wienerberger		30,008		521

				1,778

Belgium — 0.7%
Ageas		5,622		223
Anheuser-Busch InBev		40,124		4,247
Colruyt		1,889		93
Groupe Bruxelles Lambert		2,414		203
KBC Group		56,169		3,478
Proximus		4,562		131
Solvay		2,159		253
Telenet Group Holding*		1,509		84
UCB		3,676		236
Umicore		2,857		163

				9,111

Brazil — 1.5%
AES Tiete Energia		42,200		182
Ambev ADR		462,901		2,273
B2W Cia Digital*		66,168		207
Banco do Brasil		122,000		1,053
Banco Santander Brasil ADR		38,782		345
BTG Pactual Group		97,024		434
Cia de Saneamento Basico do Estado de Sao Paulo		150,600		1,332


Description	Shares		Value (000)

Cia de Saneamento de Minas Gerais-COPASA		45,300	$	508
Cia Energetica de Minas Gerais ADR		278,359		635
Cosan Industria e Comercio		34,200		401
Direcional Engenharia		25,600		36
EDP - Energias do Brasil		181,200		746
Equatorial Energia		23,200		388
Fibria Celulose		34,000		333
Fleury		10,100		111
Grendene		139,500		753
JBS		600,500		2,103
LPS Brasil Consultoria de Imoveis*		143,535		172
MRV Engenharia e Participacoes		472,900		1,589
Natura Cosmeticos		121,227		857
Porto Seguro		121,834		1,007
Positivo Informatica*		56,200		48
Raia Drogasil		80,900		1,521
Tim Participacoes		157,203		378
TOTVS		72,800		538

				17,950

Canada — 1.6%
Brookfield Asset Management, Cl A		56,188		1,854
Canadian Natural Resources		82,945		2,643
Element Financial		194,199		1,802
Fairfax Financial Holdings		3,621		1,749
Loblaw		60,873		3,212
PrairieSky Royalty		33,497		797
Ritchie Bros Auctioneers		17,916		608
Rogers Communications, Cl B		45,240		1,745
Suncor Energy		150,003		4,904

				19,314

Chile — 0.3%
CAP		11,219		80
Cia Cervecerias Unidas		77,469		809
Cia Sud Americana de Vapores*		5,047,221		131
Enaex		2,463		24
Enersis Americas ADR		1,650,868		663
Enersis Chile ADR		1,650,868		370
Inversiones La Construccion		4,669		61
Quinenco		487,604		1,146
Sociedad Quimica y Minera de Chile ADR		2,413		69

				3,353

China — 3.0%
Agricultural Bank of China, Cl H		4,839,000		1,984
Ajisen China Holdings		778,000		317

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Alibaba Group Holding ADR*		31,333	$	2,751
Baidu ADR*		6,274		1,032
Bank of China, Cl H		12,607,000		5,593
Bank of Communications, Cl H		732,000		530
BYD Electronic International		1,381,500		1,087
CECEP COSTIN New Materials Group		1,134,000		88
Changyou.com ADR*		2,671		57
China Construction Bank, Cl H		10,115,000		7,786
China Petroleum & Chemical, Cl H		2,004,000		1,421
China Railway Group, Cl H		211,000		174
China Shenhua Energy, Cl H		135,000		254
China Telecom, Cl H		5,234,000		2,416
Chongqing Rural Commercial Bank, Cl H		391,000		229
Goodbaby International Holdings		361,000		173
Harbin Electric, Cl H		444,000		207
Leju Holdings ADR*		9,889		47
Li Ning*		1,269,291		797
NetEase ADR		18,731		4,033
PetroChina, Cl H		2,200,000		1,640
Powerlong Real Estate Holdings		306,000		90
ReneSola ADR*		35,493		23
Shenzhou International Group Holdings		35,579		225
Sinotruk Hong Kong		697,000		498
TravelSky Technology, Cl H		157,000		330
Tsingtao Brewery, Cl H		116,000		438
Want Want China Holdings		1,300,996		834
Weibo ADR*		37,649		1,529
Xingda International Holdings		139,000		63
Yangzijiang Shipbuilding Holdings		47,000		26
Yingde Gases Group		135,000		50
Yirendai ADR*		2,983		62

				36,784

Colombia — 0.1%
Almacenes Exito		67,436		335
Bancolombia ADR		20,338		746

				1,081

Cyprus — 0.1%
Global Ports Investments GDR*		137,334		549

Czech Republic — 0.0%
Komercni Banka		6,477		223

Denmark — 1.7%
AP Moeller - Maersk, Cl B		302		472
Carlsberg, Cl B		33,799		2,917


Description	Shares		Value (000)

Chr Hansen Holding		2,970	$	164
Coloplast, Cl B		33,502		2,260
Danske Bank		27,244		826
DONG Energy* (A) (B)		2,412		91
DSV		5,536		246
Genmab*		1,721		286
GN Store Nord		54,127		1,121
ISS		11,470		387
Novo Nordisk, Cl B		194,789		7,026
Novozymes, Cl B		6,885		238
Pandora		3,335		436
TDC		23,000		118
Topdanmark*		8,331		212
Tryg		3,665		66
Vestas Wind Systems		41,747		2,713
William Demant Holding*		58,874		1,024

				20,603

Egypt — 0.0%
Telecom Egypt(C)		129,194		84

Finland — 0.8%
Amer Sports		11,800		314
Elisa		4,124		134
Fortum		13,292		204
Kone, Cl B		10,106		453
Metso		13,785		393
Neste		3,742		144
Nokia		139,054		672
Nokian Renkaat		18,098		675
Orion, Cl B		2,888		129
Sampo, Cl A		67,991		3,047
Stora Enso, Cl R		16,549		178
Tikkurila		113,942		2,256
UPM-Kymmene		16,014		393
Wartsila, Cl B		13,010		585

				9,577

France — 7.3%
Accor		5,117		191
Aeroports de Paris		913		98
Air France-KLM*		65,671		358
Air Liquide		77,875		8,661
Alstom		4,508		124
Arkema		2,055		201
Atos		2,594		274
AXA		92,276		2,330
BNP Paribas		56,086		3,575

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Bollore		24,884	$	88
Bouygues		6,064		217
Bureau Veritas		7,658		148
Capital Gemini		4,906		414
Carrefour		17,002		410
Casino Guichard Perrachon		1,610		77
Christian Dior		1,671		350
Cie de Saint-Gobain		15,231		710
Cie Generale des Etablissements Michelin		5,450		606
CNP Assurances		4,932		91
Credit Agricole		33,692		418
Danone		109,658		6,949
Dassault Aviation		76		85
Dassault Systemes		31,615		2,409
Edenred		32,044		634
Eiffage		1,725		120
Electricite de France		7,417		76
Elis		6,309		113
Engie		283,706		3,619
Essilor International		6,190		699
Eurazeo		1,259		74
Eurofins Scientific		2,616		1,115
Eutelsat Communications		5,156		100
Fonciere Des Regions‡		973		85
Gecina‡		1,235		171
Groupe Eurotunnel		78,261		744
Hermes International		2,186		898
ICADE‡		1,092		78
Iliad		795		153
Imerys		2,763		210
Ingenico Group		1,570		125
JCDecaux		10,645		313
Kering		2,268		509
Klepierre‡		6,398		252
LafargeHolcim		4,252		223
Lagardere		3,357		93
Legrand		68,248		3,876
L’Oreal		24,331		4,441
LVMH Moet Hennessy Louis Vuitton		37,172		7,098
Natixis		28,469		161
Neopost		11,472		359
Nokia		38,724		186
Numericable-SFR*		3,372		95
Orange		60,768		923
Pernod Ricard		71,713		7,772
Peugeot*		14,136		231


Description	Shares		Value (000)

Publicis Groupe		5,875	$	405
Remy Cointreau		719		61
Renault		5,754		511
Rexel		8,909		147
Safran		9,346		673
Sanofi		40,262		3,259
Schneider Electric		118,334		8,236
SCOR		4,628		160
SEB		648		88
Societe BIC		850		116
Societe Generale		23,351		1,149
Sodexo		2,739		315
Suez		9,222		136
Technip		5,842		417
Thales		9,262		898
TOTAL		76,331		3,915
Unibail-Rodamco‡		2,967		707
Valeo		7,147		411
Vallourec		23,983		165
Veolia Environnement		13,952		238
Vicat		3,515		213
Vinci		15,412		1,050
Virbac		335		59
Vivendi		31,422		598
Wendel		854		103
Zodiac Aerospace		42,778		983

				89,343

Germany — 6.3%
adidas		12,013		1,899
Allianz		13,886		2,295
Axel Springer		14,398		699
BASF		47,388		4,405
Bayer		120,469		12,572
Bayerische Motoren Werke		23,749		2,219
Beiersdorf		68,946		5,850
Brenntag		20,445		1,136
Commerzbank		32,083		244
Continental		3,288		636
Covestro(A) (B)		2,130		146
CTS Eventim & KGaA		14,733		464
Daimler		29,259		2,178
Deutsche Bank		41,185		748
Deutsche Boerse*		5,779		465
Deutsche Lufthansa		7,203		93
Deutsche Post		29,544		971
Deutsche Telekom		181,125		3,119

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Deutsche Wohnen		9,833	$	309
E.ON		59,994		423
Evonik Industries		4,917		147
Fielmann		3,672		243
Fraport Frankfurt Airport Services Worldwide		1,196		71
Fresenius & KGaA		12,478		975
Fresenius Medical Care & KGaA		34,687		2,938
GEA Group		9,962		401
Gerresheimer		2,237		166
Hannover Rueck		3,529		382
HeidelbergCement		4,462		416
Henkel & KGaA		3,188		332
Hochtief		642		90
HUGO BOSS		1,864		114
Infineon Technologies		33,868		589
Innogy* (A) (B)		3,965		138
K+S		5,595		134
LANXESS		2,671		175
Linde		20,243		3,327
MAN		1,078		107
Merck KGaA		40,701		4,248
METRO		5,155		171
MTU Aero Engines		14,586		1,686
Muenchener Rueckversicherungs-Gesellschaft in Muenchen		4,905		927
OSRAM Licht		2,584		136
ProSiebenSat.1 Media		58,952		2,272
RWE		14,656		182
SAP		112,992		9,851
Siemens		23,237		2,857
Stabilus*		12,746		685
Symrise		11,522		701
Telefonica Deutschland Holding		21,807		93
ThyssenKrupp		10,718		255
TUI		108,158		1,541
United Internet		3,564		139
Volkswagen		944		136
Vonovia		13,963		454
Zalando* (A) (B)		2,652		101

				78,051

Greece — 0.2%
Aegean Airlines		27,543		184
Alpha Bank AE*		52,119		104
Athens Water Supply & Sewage		11,513		68
Fourlis Holdings*		23,951		103
Grivalia Properties REIC AE‡		67,213		541


Description	Shares		Value (000)

Hellenic Petroleum		22,366	$	104
JUMBO		24,932		395
Motor Oil Hellas Corinth Refineries		68,639		946
OPAP		19,401		172
Public Power		54,106		165

				2,782

Hong Kong — 4.3%
AIA Group		1,573,800		8,879
Angang Steel, Cl H		362,000		216
ASM Pacific Technology		7,700		82
Bank of East Asia		35,791		137
BOC Hong Kong Holdings		113,500		406
C C Land Holdings		123,000		36
Cathay Pacific Airways		38,000		50
Chaowei Power Holdings		50,000		43
Cheung Kong Infrastructure Holdings		19,000		151
Cheung Kong Property Holdings		90,722		556
China High Speed Transmission Equipment Group		97,000		114
China Lesso Group Holdings		80,000		52
China Mengniu Dairy		497,000		958
China Merchants Holdings International		45,543		113
China Mobile		650,000		6,890
China National Materials		221,000		52
China Overseas Grand Oceans Group		273,000		89
China Resources Beer Holdings		385,073		765
China Resources Land		252,000		568
China Sunshine Paper Holdings		134,000		24
CIFI Holdings Group		368,000		99
CK Hutchison Holdings		217,384		2,464
CLP Holdings		50,000		459
CNOOC		496,780		621
Daphne International Holdings		432,000		43
Esprit Holdings		1,453,877		1,141
First Pacific		752,000		526
Future Land Development Holdings		282,000		58
Galaxy Entertainment Group		70,000		305
Geely Automobile Holdings		2,150,000		2,054
Global Brands Group Holding*		6,426,000		854
Guangdong Yueyun Transportation Company, Cl H		214,500		116
Guangnan Holdings		210,000		25
Hang Lung Group		25,000		87
Hang Lung Properties		68,000		144

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Hang Seng Bank		22,900	$	426
Henderson Land Development		31,075		165
Hisense Kelon Electrical Holdings, Cl A		137,000		112
HK Electric Investments & HK Electric Investments(A) (B)		73,703		61
HKT Trust		77,740		95
Hong Kong & China Gas		233,652		414
Hong Kong Exchanges and Clearing		35,286		834
Hongkong & Shanghai Hotels		273,972		304
Hysan Development		18,000		74
Industrial & Commercial Bank of China, Cl H		10,130,000		6,075
Jardine Matheson Holdings		32,600		1,801
Kerry Properties		20,000		54
Kingboard Chemical Holdings		1,033,000		3,131
Kingboard Laminates Holdings		2,356,000		2,315
Li & Fung		2,840,000		1,249
Link‡		68,500		445
Longfor Properties		133,000		169
Melco Crown Entertainment ADR		5,891		94
MGM China Holdings		29,600		61
MTR*		43,180		210
New World Development		189,863		201
NWS Holdings		49,000		80
PCCW		120,136		65
Power Assets Holdings		42,500		375
Scud Group* (C)		252,000		—
Shangri-La Asia		40,000		42
Sino Land		93,046		139
Sinopec Shanghai Petrochemical, Cl H		3,076,000		1,666
SJM Holdings		62,000		49
SmarTone Telecommunications Holdings		83,447		112
Stella International Holdings		102,448		165
Sun Hung Kai Properties		42,893		542
Swire Pacific, Cl A		16,000		153
Swire Properties		35,800		99
Techtronic Industries		41,500		149
Television Broadcasts		93,800		308
Tianneng Power International		410,000		376
Tingyi Cayman Islands Holding		511,014		621
Top Spring International Holdings		55,000		21
Weiqiao Textile, Cl H		196,500		123
Welling Holding		244,000		45
WH Group(A) (B)		231,101		187


Description	Shares		Value (000)

Wharf Holdings		40,000	$	266
Wheelock		24,000		135
Wynn Macau		46,800		74
Yue Yuen Industrial Holdings		21,500		78
Zhongsheng Group Holdings		131,500		118

				53,455

India — 1.9%
Axis Bank		46,879		311
Bank of Baroda*		87,731		198
Bharat Petroleum		184,533		1,728
Bharti Airtel		82,489		371
CESC		92,826		873
Exide Industries		72,057		192
GAIL India		21,965		142
Gujarat Alkalies & Chemicals		29,821		152
Gujarat Narmada Valley Fertilizers & Chemicals		55,910		175
Hindalco Industries		671,594		1,535
Housing Development Finance		178,716		3,325
Indian Bank		18,056		59
Indian Oil		412,264		1,975
Infosys ADR		144,838		2,148
Jindal Stainless Hisar*		44,257		58
JK Tyre & Industries		46,816		78
Kalyani Steels*		19,852		81
Kirloskar Ferrous Industries		29,669		29
Mangalore Refinery & Petrochemicals*		318,006		460
National Aluminium		89,269		86
NMDC		69,826		127
NOCIL		70,524		70
Rain Industries		52,329		42
Sundram Fasteners		17,639		75
Tata Consultancy Services		151,047		5,265
Tata Motors ADR		86,922		2,989
Thirumalai Chemicals		2,634		30
Tinplate of India		69,685		77
WNS Holdings ADR*		23,786		655

				23,306

Indonesia — 0.7%
Adaro Energy		1,540,100		194
Bank CIMB Niaga*		783,900		49
Bank Negara Indonesia Persero		3,771,200		1,547
Bank Pembangunan Daerah Jawa Barat Dan Banten		3,081,400		775
Bank Pembangunan Daerah Jawa Timur		467,000		20

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Bank Tabungan Negara Persero		8,193,200	$	1,058
Delta Dunia Makmur*		5,031,800		190
Japfa Comfeed Indonesia		739,500		80
Telekomunikasi Indonesia Persero		12,669,200		3,743
Timah Persero		1,643,700		131
United Tractors		152,900		241
XL Axiata*		750,575		129

				8,157

Ireland — 0.8%
Bank of Ireland*		5,151,473		1,269
CRH		30,187		1,048
DCC		15,379		1,145
Experian		216,141		4,193
Irish Continental Group		72,829		345
Kerry Group, Cl A		4,857		347
Paddy Power Betfair		9,689		1,035
Ryanair Holdings ADR*		845		70

				9,452

Israel — 0.5%
Azrieli Group(C)		1,299		56
Bank Hapoalim(C)		30,817		183
Bank Leumi Le-Israel*(C)		41,836		173
Bezeq The Israeli Telecommunication(C)		59,320		113
Check Point Software Technologies*		44,333		3,745
Elbit Systems(C)		674		68
Frutarom Industries(C)		1,099		56
Israel Chemicals(C)		15,975		66
Mizrahi Tefahot Bank(C)		4,336		64
Mobileye*		5,248		200
NICE-Systems(C)		1,744		119
Taro Pharmaceutical Industries*		445		47
Teva Pharmaceutical Industries(C)		26,173		939

				5,829

Italy — 1.6%
Assicurazioni Generali		35,013		520
Atlantia		12,004		281
CNH Industrial		204,244		1,777
Davide Campari-Milano		19,762		193
Enel		232,157		1,023
Eni		278,898		4,542
EXOR		3,240		140
Ferrari		3,536		206
Fiat Chrysler Automobiles		27,247		249
Intesa Sanpaolo		493,685		1,255


Description	Shares		Value (000)

Leonardo-Finmeccanica*		11,801	$	166
Luxottica Group		80,130		4,310
Mediobanca		16,505		135
Piaggio & C		493,669		824
Poste Italiane(A) (B)		15,695		104
Prysmian		5,753		148
Saipem		2,313,750		1,303
Snam		71,398		294
Technogym* (A) (B)		8,655		40
Telecom Italia		472,020		388
Terna Rete Elettrica Nazionale		43,990		202
UniCredit		410,438		1,181
UnipolSai		34,993		75

				19,356

Japan — 16.3%
ABC-Mart		1,000		57
Acom*		12,600		55
Aeon		19,000		270
Aeon Delight		1,500		42
AEON Financial Service		12,600		224
Aeon Mall		3,200		45
Aida Engineering		4,500		43
Air Water		4,600		83
Aisin Seiki		5,600		243
Ajinomoto		16,100		324
Alfresa Holdings		73,500		1,216
Alps Electric		5,400		131
Amada Holdings		10,000		112
ANA Holdings		34,000		92
Aozora Bank		36,000		127
Asahi Glass		30,000		204
Asahi Group Holdings		11,900		376
Asahi Kasei		37,000		323
Asics		4,800		96
Astellas Pharma		65,600		911
Azbil		14,900		419
Bank of Kyoto		9,000		67
Benesse Holdings		2,100		58
Bridgestone		26,900		970
Brother Industries		7,100		128
Calbee		2,200		69
Canon		32,500		916
Casio Computer		22,700		321
Central Japan Railway		4,440		731
Chiba Bank		20,000		123
Chubu Electric Power		18,800		263

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Chugai Pharmaceutical		6,700	$	192
Chugoku Bank		5,300		76
Chugoku Electric Power		7,900		93
Concordia Financial Group		34,300		165
Credit Saison		4,300		76
CYBERDYNE*		3,000		42
Dai Nippon Printing		16,000		158
Daicel		8,600		95
Daifuku		8,900		190
Dai-ichi Life Holdings		188,900		3,146
Daiichi Sankyo		18,500		379
Daikin Industries		37,800		3,472
Daito Trust Construction		2,100		316
Daiwa House Industry		22,000		602
Daiwa House Investment‡		41		104
Daiwa Securities Group		50,000		308
Dena		3,000		66
Denso		139,500		6,042
Dentsu		6,400		301
Don Quijote Holdings		3,500		130
East Japan Railway		33,400		2,886
Eisai		7,520		432
Electric Power Development		4,300		99
FamilyMart		2,500		166
FANUC		26,480		4,490
Fast Retailing		1,600		573
Fuji Electric		17,000		88
Fuji Heavy Industries		26,700		1,090
Fuji Media Holdings		85,000		1,191
FUJIFILM Holdings		86,500		3,283
Fujitsu		56,000		311
Fukuoka Financial Group		53,000		235
Hachijuni Bank		12,000		70
Hakuhodo DY Holdings		5,800		71
Hamamatsu Photonics		4,300		113
Hankyu Hanshin Holdings		7,000		225
Hikari Tsushin		600		56
Hino Motors		7,000		71
Hirose Electric		900		112
Hiroshima Bank		15,000		70
Hisamitsu Pharmaceutical		1,800		90
Hitachi		570,000		3,083
Hitachi Capital		7,500		185
Hitachi Chemical		3,300		83
Hitachi Construction Machinery		3,100		67
Hitachi High-Technologies		2,000		81
Hitachi Metals		6,300		85


Description	Shares		Value (000)

Hokuriku Electric Power		5,000	$	56
Honda Motor		49,600		1,449
Hoshizaki Electric		1,500		119
Hoya		214,900		9,031
Hulic		8,800		78
Idemitsu Kosan		2,800		74
IHI		44,000		114
Iida Group Holdings		4,000		76
Inpex		27,700		277
Isetan Mitsukoshi Holdings		82,800		892
Isuzu Motors		17,700		224
ITOCHU		61,100		811
J Front Retailing		7,400		100
Japan Airlines		10,200		298
Japan Airport Terminal		1,400		51
Japan Exchange Group		15,700		224
Japan Post Bank		12,200		146
Japan Post Holdings		94,000		1,173
Japan Prime Realty Investment‡		23		91
Japan Real Estate Investment‡		38		207
Japan Retail Fund Investment‡		77		156
Japan Tobacco		152,900		5,029
JFE Holdings		60,500		922
JGC		6,000		109
JSR		5,800		91
JTEKT		6,700		107
JX Holdings		61,800		262
Kajima		27,000		187
Kakaku.com		4,400		73
Kamigumi		7,000		67
Kaneka		9,000		73
Kansai Electric Power*		20,500		224
Kansai Paint		6,500		120
Kao		48,000		2,275
Kawasaki Heavy Industries		42,000		132
KDDI		60,300		1,527
Keihan Holdings		15,000		99
Keikyu		14,000		162
Keio		17,000		140
Keisei Electric Railway		4,000		97
Keyence		1,500		1,029
Kikkoman		5,000		160
Kintetsu Group Holdings		53,000		202
Kirin Holdings		175,100		2,848
Kobe Steel		9,600		92
Koito Manufacturing		3,200		169
Komatsu		27,600		625

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Konami Holdings		2,800	$	113
Konica Minolta		13,800		137
Kose		900		75
Kubota		221,600		3,165
Kuraray		10,400		156
Kurita Water Industries		3,100		68
Kyocera		100,500		4,999
Kyowa Hakko Kirin		7,400		102
Kyushu Electric Power		12,500		136
Kyushu Financial Group		10,000		68
Lawson		2,000		140
LINE*		1,000		34
Lion		7,000		115
LIXIL Group		65,700		1,492
M3		5,900		149
Mabuchi Motor		1,500		78
Maeda		13,000		113
Makita		3,300		221
Marubeni		48,100		273
Marui Group		20,400		298
Maruichi Steel Tube		1,700		55
Matsumotokiyoshi Holdings		4,300		212
Mazda Motor		16,600		272
McDonald’s Holdings Japan		2,100		55
Mebuki Financial Group		29,100		108
Medipal Holdings		5,000		79
MEIJI Holdings		3,400		266
Minebea		10,200		96
Miraca Holdings		1,700		76
MISUMI Group		7,900		130
Mitsubishi		72,960		1,555
Mitsubishi Chemical Holdings		40,800		265
Mitsubishi Electric		58,900		821
Mitsubishi Estate		91,000		1,812
Mitsubishi Gas Chemical		5,500		94
Mitsubishi Heavy Industries		370,000		1,686
Mitsubishi Logistics		46,000		650
Mitsubishi Materials		3,400		104
Mitsubishi Motors		20,400		116
Mitsubishi Tanabe Pharma		6,700		131
Mitsubishi UFJ Financial Group		449,100		2,768
Mitsubishi UFJ Lease & Finance		12,400		64
Mitsui		51,000		701
Mitsui Chemicals		27,000		121
Mitsui Fudosan		27,000		625
Mitsui OSK Lines		33,000		91
Mixi		1,200		44


Description	Shares		Value (000)

Mizuho Financial Group		1,537,900	$	2,761
MS&AD Insurance Group Holdings		85,600		2,654
Murata Manufacturing		5,800		777
Nabtesco		3,500		81
Nagoya Railroad		27,000		131
Namco Bandai Holdings		65,900		1,819
NEC		463,000		1,228
Nexon		5,100		74
NGK Insulators		7,800		151
NGK Spark Plug		5,400		120
NH Foods		18,000		486
Nidec		7,300		630
Nikon		53,300		829
Nintendo		3,800		798
Nippon Building Fund‡		41		227
Nippon Electric Glass		13,000		70
Nippon Express		25,000		135
Nippon Paint Holdings		4,800		131
Nippon Prologis‡		46		94
Nippon Signal		3,700		31
Nippon Steel & Sumitomo Metal		24,200		541
Nippon Suisan Kaisha		77,200		371
Nippon Telegraph & Telephone		109,200		4,589
Nippon Television Holdings		51,820		941
Nippon Yusen		49,000		91
Nissan Chemical Industries		11,300		378
Nissan Motor		104,000		1,046
Nisshin Seifun Group		6,100		92
Nissin Foods Holdings		1,700		89
Nitori Holdings		2,400		274
Nitto Denko		5,000		384
NOK		2,500		51
Nomura		4,600		67
Nomura Holdings		327,600		1,932
Nomura Real Estate Holdings		3,600		61
Nomura Real Estate Master Fund‡		119		180
Nomura Research Institute		4,070		124
NSK		13,300		154
NTT Data		42,900		2,074
NTT DOCOMO		42,200		962
NTT Urban Development		72,300		637
Obayashi		195,600		1,869
Obic		5,460		239
Odakyu Electric Railway		8,500		168
Oji Holdings		25,000		102
Olympus		8,500		294
Omron		12,000		460

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Ono Pharmaceutical		12,000	$	262
Onward Holdings		60,000		420
Oracle Japan		1,200		60
Oriental Land		6,400		362
ORIX		39,600		618
Osaka Gas		54,000		208
OSG		2,700		53
Otsuka		1,500		70
Otsuka Holdings		32,200		1,404
Panasonic		65,900		671
Park24		3,100		84
Penta-Ocean Construction		20,500		99
Pola Orbis Holdings		600		50
Rakuten		27,100		266
Recruit Holdings		11,000		442
Resona Holdings		384,240		1,971
Ricoh		19,300		163
Rinnai		1,000		81
Rohm		2,600		150
Ryohin Keikaku		1,500		294
Sankyo		1,500		48
Santen Pharmaceutical		10,700		131
Sawai Pharmaceutical		4,000		215
SBI Holdings		6,700		85
SCSK		5,100		178
Secom		18,800		1,375
Sega Sammy Holdings		5,800		86
Seibu Holdings		5,000		90
Seiko Epson		8,400		178
Sekisui Chemical		25,400		405
Sekisui House		17,600		293
Senko		5,500		37
Seven & i Holdings		80,400		3,064
Seven Bank		16,300		47
Sharp*		46,000		106
Shimadzu		7,000		112
Shimamura		600		75
Shimano		2,200		345
Shimizu		100,000		915
Shin-Etsu Chemical		39,800		3,088
Shinsei Bank		52,000		87
Shionogi		8,960		429
Shiseido		36,200		916
Shizuoka Bank		15,000		126
SHO-BOND Holdings		1,700		71
Showa Shell Sekiyu		6,000		56
SMC		1,700		406


Description	Shares		Value (000)

SoftBank Group		49,200	$	3,268
Sohgo Security Services		2,100		81
Sompo Holdings		41,500		1,406
Sony		38,400		1,075
Sony Financial Holdings		4,700		73
Stanley Electric		4,500		123
Start Today		4,800		83
Sumitomo		35,600		419
Sumitomo Chemical		171,200		814
Sumitomo Dainippon Pharma		73,800		1,269
Sumitomo Electric Industries		58,300		842
Sumitomo Heavy Industries		16,000		103
Sumitomo Metal Mining		15,000		193
Sumitomo Mitsui Financial Group		97,200		3,710
Sumitomo Mitsui Trust Holdings		38,700		1,385
Sumitomo Realty & Development		11,000		292
Sumitomo Rubber Industries		5,100		81
Sundrug		1,000		69
Suntory Beverage & Food		9,500		395
Suruga Bank		4,900		109
Suzuken		2,200		72
Suzuki Motor		10,500		370
Sysmex		4,520		262
T&D Holdings		16,800		222
Tadano		5,700		72
Taiheiyo Cement		37,000		117
Taisei		31,000		217
Taisho Pharmaceutical Holdings		1,100		91
Taiyo Nippon Sanso		4,000		46
Takashimaya		9,000		74
Takeda Pharmaceutical		21,700		898
TDK		6,400		440
TechnoPro Holdings		3,000		96
Teijin		5,200		105
Temp Holdings		12,200		189
Terumo		170,200		6,284
THK		3,600		80
Tobu Railway		29,000		144
Toho		3,300		93
Toho Gas		12,000		98
Tohoku Electric Power		90,700		1,145
Tokio Marine Holdings		28,500		1,170
Tokyo Electric Power Holdings*		41,800		169
Tokyo Electron		11,000		1,039
Tokyo Gas		112,000		506
Tokyo Tatemono		6,300		84
Tokyu		32,000		235

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Tokyu Fudosan Holdings		15,800	$	93
TonenGeneral Sekiyu		9,000		95
Toppan Printing		15,000		143
Toray Industries		45,000		364
Toshiba		121,000		292
TOTO		4,200		166
Toyo Seikan Group Holdings		62,900		1,174
Toyo Suisan Kaisha		20,800		754
Toyoda Gosei		1,700		40
Toyota Industries		6,100		291
Toyota Motor		111,700		6,574
Toyota Tsusho		6,300		164
Trend Micro		3,200		114
Tsuruha Holdings		1,100		104
Unicharm		11,700		256
United Urban Investment‡		83		126
USS		6,400		102
West Japan Railway		49,500		3,037
Yahoo Japan		42,800		164
Yakult Honsha		2,600		121
Yamada Denki		161,100		868
Yamaguchi Financial Group		6,000		65
Yamaha		5,000		153
Yamaha Motor		8,000		176
Yamato Holdings		59,620		1,212
Yamazaki Baking		4,000		77
Yaskawa Electric		7,400		115
Yokogawa Electric		7,000		101
Yokohama Rubber		3,600		65

				200,898

Luxembourg — 0.3%
Altice, Cl B*		14,195		281
ArcelorMittal		130,329		963
Millicom International Cellular		10,107		432
O’Key Group GDR		88,214		229
RTL Group		1,188		87
SES, Cl A		10,614		235
Tenaris		14,530		260
Ternium ADR		66,433		1,603

				4,090

Macau — 0.0%
Sands China		74,400		323

Malaysia — 0.8%
Allianz Malaysia		9,000		20
Brem Holding*		213,616		38
Evergreen Fibreboard		1,335,000		286


Description	Shares		Value (000)

Eversendai		174,800	$	22
Heineken Malaysia		10,000		37
HeveaBoard		137,300		46
Hong Leong Bank		17,900		54
Hong Leong Industries		5,500		12
Hua Yang		68,800		17
Insas		330,800		53
JCY International		2,674,100		292
K&N Kenanga Holdings*		85,500		8
KSL Holdings*		551,500		124
Land & General		42,966		3
Lii Hen Industries		73,300		52
Malaysian Pacific Industries		39,000		64
Muda Holdings		27,100		9
Oldtown		106,500		45
Padini Holdings		633,700		360
Petron Malaysia Refining & Marketing		146,900		136
Petronas Dagangan		45,500		241
Public Bank		413,400		1,817
Scientex		39,400		59
Shell Refining Federation of Malaya*		63,000		29
Sunway		42,300		29
Sunway Construction Group		214,880		82
Ta Ann Holdings		54,740		48
Tenaga Nasional		1,235,100		3,827
Top Glove		744,800		888
Tropicana		1,047		—
Unisem		1,138,600		599
VS Industry		1,579,200		496
WTK Holdings		144,300		32

				9,825

Mexico — 0.5%
Alpek, Cl A		733,432		876
America Movil, Cl L ADR		23,016		289
Axtel*		163,891		28
Cemex ADR*		144,082		1,156
Controladora Vuela Cia de Aviacion, Cl A*		80,585		121
Credito Real SOFOM ER		38,420		51
Gruma, Cl B		46,229		587
Grupo Aeromexico*		276,892		520
Grupo Financiero Interacciones, Cl O		94,593		369
Grupo Mexico		231,526		630
Grupo Simec, Cl B*		9,691		46

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Industrias Bachoco ADR		62,581	$	268
Industrias CH, Cl B*		37,465		239
Industrias Penoles		11,387		211
OHL Mexico		805,976		793
Prologis Property Mexico‡		210,533		302
Vitro		28,769		90

				6,576

Netherlands — 4.2%
ABN AMRO Group(A) (B)		8,216		182
Aegon		55,637		306
AerCap Holdings*		4,904		204
Airbus Group		34,364		2,273
Akzo Nobel		105,655		6,605
ASML Holding		13,554		1,522
Boskalis Westminster		24,003		834
Coca-Cola European Partners		6,492		205
Gemalto		2,323		134
Heineken		42,972		3,223
Heineken Holding		3,013		210
ING Groep		594,419		8,366
James Hardie Industries		13,011		206
Koninklijke Ahold Delhaize		85,619		1,805
Koninklijke DSM		5,565		334
Koninklijke KPN		404,822		1,199
Koninklijke Philips		63,297		1,932
Koninklijke Vopak		2,152		102
NN Group		9,669		328
NXP Semiconductors*		8,959		878
QIAGEN*		6,415		180
Randstad Holding		118,984		6,454
Relx		149,110		2,510
Royal Dutch Shell, Cl A		309,316		8,740
STMicroelectronics		19,131		217
Unilever		49,507		2,038
Wolters Kluwer		9,260		336

				51,323

New Zealand — 0.1%
Auckland International Airport		27,258		118
Contact Energy		21,645		70
Fletcher Building		20,690		152
Mercury NZ		21,271		44
Meridian Energy		36,344		66
Ryman Healthcare		10,544		59
Spark New Zealand		262,777		623

				1,132


Description	Shares		Value (000)

Norway — 0.3%
DNB		58,145	$	865
Gjensidige Forsikring		6,126		97
Marine Harvest		11,023		199
Norsk Hydro		38,906		186
Orkla		23,750		215
Schibsted, Cl A		28,168		621
Statoil		70,170		1,287
Telenor		23,024		344
Yara International		5,240		206

				4,020

Panama — 0.0%
Avianca Holdings ADR		3,928		38

Peru — 0.3%
Cia de Minas Buenaventura ADR		39,493		445
Credicorp		19,637		3,100

				3,545

Philippines — 0.1%
Cebu Air(C)		270,790		507
Energy Development(C)		4,530,600		469
Lopez Holdings(C)		1,862,000		292
Pepsi-Cola Products Philippines(C)		352,000		23
San Miguel(C)		144,580		268
Vista Land & Lifescapes(C)		567,600		57

				1,616

Poland — 0.5%
Amica Wronki		957		43
AmRest Holdings*		3,010		213
Asseco Poland		16,913		218
Bank Pekao		3,214		97
CD Projekt*		75,756		945
Grupa Lotos*		60,862		556
ING Bank Slaski		1,489		57
Polski Koncern Naftowy Orlen		112,309		2,289
Polskie Gornictwo Naftowe i Gazownictwo		1,337,820		1,800
Trakcja		32,009		108

				6,326

Portugal — 0.0%
Banco Espirito Santo* (C)		46,916		—
EDP-Energias de Portugal		69,227		211
Galp Energia		14,605		218
Jeronimo Martins		7,369		114

				543

Qatar — 0.3%
Barwa Real Estate(C)		142,526		1,302

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Doha Bank QSC(C)		7,860	$	75
Mannai		830		18
Ooredoo QSC(C)		63,688		1,783
Qatar Fuel QSC		4,233		169
Qatar General Insurance & Reinsurance SAQ		2,023		26
Qatar Islamic Bank SAQ(C)		7,532		215
Qatar National Bank SAQ(C)		5,474		245
Qatar Navigation QSC(C)		7,158		188
United Development QSC		36,420		207

				4,228

Russia — 0.8%
Gazprom PAO ADR		80,104		405
Globaltrans Investment GDR		23,919		151
Lukoil PJSC ADR		4,853		272
Magnitogorsk Iron & Steel Works GDR		93,326		651
Sberbank of Russia PJSC ADR		401,165		4,644
Tatneft PJSC ADR		2,685		111
Yandex, Cl A*		158,146		3,183

				9,417

Singapore — 1.0%
Ascendas‡		68,800		108
CapitaLand		74,000		154
CapitaLand Commercial Trust‡		58,000		59
CapitaLand Mall Trust‡		74,000		96
City Developments		11,000		63
ComfortDelGro		65,000		111
Dairy Farm International Holdings		24,400		175
DBS Group Holdings		491,983		5,892
Genting Singapore		185,000		116
GL		283,300		148
Global Logistic Properties		79,000		120
Golden Agri-Resources		209,000		62
Great Eastern Holdings		55,500		778
Haw Par		15,400		97
Hongkong Land Holdings		34,400		219
Hutchison Port Holdings Trust, Cl U		145,000		63
Jardine Cycle & Carriage		2,933		84
Keppel		43,600		174
Oversea-Chinese Banking		94,072		579
SATS		19,300		65
Sembcorp Industries		31,000		61
Singapore Airlines		16,000		107
Singapore Exchange		23,000		114
Singapore Press Holdings		45,000		110
Singapore Technologies Engineering		44,000		98


Description	Shares		Value (000)

Singapore Telecommunications		777,800	$	1,960
StarHub		15,000		29
Suntec‡		74,000		84
United Industrial		24,483		47
United Overseas Bank		54,121		762
UOL Group		15,482		64
Wilmar International		57,000		141

				12,740

South Africa — 1.1%
African Bank Investments (C)		638,711		—
Anglo American Platinum*		13,654		263
Blue Label Telecoms		171,180		227
Cashbuild		1,633		41
Cie Financiere Richemont		67,650		447
Clicks Group		29,599		249
FirstRand		338,014		1,309
Gold Fields ADR		178,860		538
Grindrod		207,895		204
Harmony Gold Mining ADR		80,885		179
Investec		51,677		341
JSE		24,113		288
KAP Industrial Holdings		106,914		58
Kumba Iron Ore		10,620		123
Liberty Holdings		21,367		173
MMI Holdings		60,998		105
Mondi		34,127		696
MTN Group		53,691		493
Murray & Roberts Holdings		249,229		209
Old Mutual		186,910		468
Peregrine Holdings		228,876		501
Randgold Resources		2,718		215
Sappi*		223,035		1,461
Sasol		17,311		503
Sibanye Gold		393,345		727
Standard Bank Group		287,389		3,174
Telkom		123,009		663
Wilson Bayly Holmes-Ovcon		12,103		136

				13,791

South Korea — 4.5%
Aekyung Petrochemical(C)		5,130		54
Autech*,(C)		7,427		57
CJ*,(C)		4,611		714
CJ O Shopping*,(C)		812		110
CKH Food & Health*,(C)		122,645		196
Dae Han Flour Mills*,(C)		104		16
Daeduck*,(C)		4,514		48

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Daehan Steel*,(C)		13,793	$	109
DK UIL*,(C)		3,201		28
Dongkuk Steel Mill*,(C)		6,065		56
Dongyang E&P*,(C)		10,103		110
DRB Industrial(C)		2,970		30
GMB Korea*,(C)		5,250		22
GS Home Shopping*,(C)		865		123
Hana Financial Group(C)		38,535		996
Hanwha Chemical*,(C)		14,580		299
Hanwha Life Insurance*,(C)		13,768		74
Hite Jinro*,(C)		13,520		236
Humax*,(C)		4,750		54
Hyosung*,(C)		4,014		484
Hyundai BNG Steel*,(C)		4,528		47
Hyundai Engineering & Construction*,(C)		6,224		221
Hyundai Heavy Industries*,(C)		1,114		135
Hyundai Motor(C)		9,539		1,153
Jahwa Electronics*,(C)		7,284		103
Kangnam Jevisco*,(C)		920		28
KB Financial Group*,(C)		11,109		394
Kia Motors(C)		63,165		2,055
KISCO*,(C)		1,295		40
Korea Electric Power*,(C)		81,358		2,968
Korea Petrochemical Industries*,(C)		6,580		1,505
Kortek*,(C)		8,267		96
KT(C)		71,014		1,729
KT Skylife*,(C)		9,103		131
Kwangju Bank*,(C)		5,257		47
Kyungchang Industrial*,(C)		16,273		73
LG*,(C)		5,181		257
LG Display ADR		177,864		2,285
LG Display(C)		22,171		578
LG Electronics(C)		62,833		2,693
LG Uplus*,(C)		67,559		641
Lotte Chemical*,(C)		7,875		2,411
Lotte Shopping*,(C)		4,347		797
Mirae Asset Life Insurance*		12,467		53
Mobase(C)		5,272		38
Moorim Paper*,(C)		35,210		78
NAVER(C)		3,465		2,227
Poongsan*,(C)		5,230		176
POSCO(C)		2,315		492
PSK*,(C)		5,764		65
RedcapTour*,(C)		1,671		25
S-1, Cl 1,(C)		2,688		195
Saeron Automotive*,(C)		4,310		30


Description	Shares		Value (000)

Sam Young Electronics*,(C)		8,260	$	83
Samchully*,(C)		548		46
Samji Electronics*,(C)		9,600		89
Samsung Electronics(C)		9,460		14,124
Samsung Fire & Marine Insurance(C)		343		76
SeAH Holdings*,(C)		225		24
Sejong Industrial*,(C)		3,340		26
Seoyon*,(C)		3,086		27
Seoyon E-Hwa*,(C)		4,880		57
Seoyon Electronics*,(C)		8,015		20
Sewon Precision Industry(C)		657		10
Shindaeyang Paper*,(C)		1,116		22
Shinhan Financial Group*,(C)		46,580		1,744
SK Hynix(C)		133,029		4,934
SK Innovation*,(C)		24,748		3,004
S-Oil(C)		30,886		2,167
Tongyang Life Insurance*,(C)		12,378		131
Woori Bank		106,196		1,121

				55,287

Spain — 1.5%
Abertis Infraestructuras		18,728		262
Acerinox		52,298		694
ACS Actividades de Construccion y Servicios		5,567		176
Aena(A) (B)		1,965		268
Amadeus IT Group, Cl A		111,948		5,088
Banco Bilbao Vizcaya Argentaria		200,112		1,351
Banco de Sabadell		157,919		220
Banco Popular Espanol		97,275		94
Banco Santander		460,467		2,403
Bankia		138,441		142
Bankinter		19,874		154
CaixaBank		98,992		327
Distribuidora Internacional de Alimentacion		17,963		88
Enagas		6,803		173
Endesa		9,501		201
Ferrovial		14,404		258
Gas Natural SDG		10,489		198
Grifols		8,957		178
Iberdrola		164,619		1,080
Industria de Diseno Textil		33,200		1,133
International Consolidated Airlines Group		24,405		132
Mapfre		31,811		97
Mediaset Espana Comunicacion		40,245		472
Red Electrica		12,598		238

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Repsol		32,927	$	465
Telefonica		141,667		1,315
Viscofan		14,940		737
Zardoya Otis		6,262		53

				17,997

Sweden — 1.7%
Alfa Laval		8,655		143
Assa Abloy, Cl B		150,555		2,794
Atlas Copco, Cl A		32,045		938
Boliden		7,969		208
Electrolux		6,928		173
Getinge, Cl B		6,038		97
Hennes & Mauritz, Cl B		164,384		4,572
Hexagon, Cl B		7,532		269
Husqvarna, Cl B		11,887		92
ICA Gruppen		2,500		76
Industrivarden, Cl C		4,708		88
Investor, Cl B		13,635		509
Kinnevik		6,796		163
L E Lundbergforetagen, Cl B		1,090		67
Lundin Petroleum*		5,676		123
Modern Times Group, Cl B		13,787		409
Nordea Bank		139,379		1,550
Oriflame Holding		1,600		48
Sandvik		110,878		1,372
Securitas, Cl B		9,089		143
Skandinaviska Enskilda Banken, Cl A		45,481		477
Skanska, Cl B		10,260		242
SKF, Cl B		11,487		211
Svenska Cellulosa, Cl B		18,207		514
Svenska Handelsbanken, Cl A		168,468		2,342
Swedbank, Cl A		27,060		654
Swedish Match		16,044		510
Tele2, Cl B		10,996		88
Telefonaktiebolaget LM Ericsson, Cl B		171,430		1,007
Telia		75,698		305
Volvo, Cl B		46,129		539

				20,723

Switzerland — 6.5%
ABB		57,283		1,208
Actelion		2,884		624
Adecco Group		25,927		1,696
Aryzta		2,672		118
Baloise Holding		1,447		182
Barry Callebaut		66		81
Chocoladefabriken Lindt & Sprungli		33		337


Description	Shares		Value (000)

Cie Financiere Richemont		35,555	$	2,354
Coca-Cola		5,556		121
Credit Suisse Group		60,479		868
DKSH Holding		2,209		152
Dufry*		1,374		171
EMS-Chemie Holding		246		125
Galenica		110		124
Geberit		6,700		2,686
Givaudan		276		506
Helvetia Holding		264		142
Julius Baer Group		6,521		290
Kuehne + Nagel International		12,113		1,601
LafargeHolcim		9,343		492
Logitech International		36,811		918
Lonza Group		1,539		266
Nestle		257,812		18,496
Novartis		168,214		12,241
Pargesa Holding		1,038		68
Partners Group Holding		506		237
Roche Holding		67,417		15,400
Schindler Holding		1,822		320
SGS		160		326
Sika		63		303
Sonova Holding		6,110		740
Swatch Group		2,298		366
Swiss Life Holding		936		265
Swiss Prime Site		2,169		178
Swiss Re		9,870		935
Swisscom		794		356
Syngenta*		2,818		1,113
UBS Group		628,761		9,849
Zurich Insurance Group		15,164		4,177

				80,432

Taiwan — 2.4%
Advanced Semiconductor Engineering ADR		29,894		151
AU Optronics ADR		725,037		2,567
Chroma ATE		170,000		398
Delta Electronics		124,516		616
Hon Hai Precision Industry GDR		503,361		1,669
Ruentex Industries		219,082		365
Silicon Motion Technology ADR		50,544		2,147
Taiwan Semiconductor Manufacturing		1,004,398		20,160
Teco Electric and Machinery		1,021,387		884
Yungtay Engineering		589,000		820

				29,777

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Thailand — 1.3%
Advanced Information Technology		233,000	$	161
AP Thailand NVDR		1,321,800		277
Asia Aviation		779,900		132
Bangchak Petroleum NVDR		260,200		243
Bangkok Bank		223,400		1,006
Banpu NVDR		1,345,100		721
Cal-Comp Electronics Thailand NVDR		1,336,719		101
Dhipaya Insurance NVDR		16,800		24
GFPT NVDR		1,194,100		491
Hana Microelectronics NVDR		655,700		722
Indorama Ventures		202,700		190
IRPC NVDR		4,200,000		563
Kasikornbank PLC		74,900		371
KCE Electronics NVDR		101,500		346
KGI Securities Thailand NVDR		902,000		98
Krung Thai Bank NVDR		757,700		375
MCS Steel NVDR		224,800		108
MFEC NVDR		216,800		32
MK Real Estate Development NVDR		71,900		8
Polyplex Thailand NVDR		159,000		68
Pruksa Holding NVDR		102,900		65
PTG Energy		196,400		180
PTT NVDR		343,100		3,565
PTT Exploration & Production NVDR		88,800		239
PTT Global Chemical NVDR		1,262,200		2,220
SC Asset NVDR		371,588		35
Siam Cement NVDR		13,500		187
Siamgas & Petrochemicals NVDR		624,900		213
SNC Former NVDR		76,300		32
Sri Trang Agro-Industry NVDR		106,400		69
Star Petroleum Refining NVDR		1,491,400		516
SVI NVDR		172,800		25
Syntec Construction NVDR		2,826,500		410
Thai Airways International NVDR		465,900		295
Thai Oil NVDR		172,100		347
Thai Storage Battery NVDR		4,900		18
Thai Vegetable Oil NVDR		176,300		199
Thanachart Capital NVDR		118,600		146
Tipco Asphalt NVDR		1,445,500		767
Tisco Financial Group NVDR		77,900		131
TMB Bank NVDR		4,978,700		292
Vanachai Group NVDR		221,100		88

				16,076


Description	Shares		Value (000)

Turkey — 0.9%
Albaraka Turk Katilim Bankasi		44,267	$	15
Anadolu Cam Sanayii*		327,928		245
Arcelik		29,206		176
Baticim Bati Anadolu Cimento Sanayii		21,859		41
Dogan Sirketler Grubu Holding*		372,395		80
EGE Seramik Sanayi ve Ticaret*		22,722		20
Emlak Konut Gayrimenkul Yatirim Ortakligi‡		388,613		329
Eregli Demir ve Celik Fabrikalari		504,929		736
Haci Omer Sabanci Holding		474,835		1,232
Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret		20,606		48
Izmir Demir Celik Sanayi*		57,810		43
Kordsa Global Endustriyel Iplik ve Kord Bezi Sanayi ve Ticaret		69,396		127
Kutahya Porselen Sanayi*		16,321		34
Logo Yazilim Sanayi Ve Ticaret*		3,014		46
Selcuk Ecza Deposu Ticaret ve Sanayi A.S.		85,387		74
Torunlar Gayrimenkul Yatirim Ortakligi‡		412,027		485
Turkiye Garanti Bankasi		1,599,100		3,456
Turkiye Halk Bankasi		244,795		648
Turkiye Is Bankasi, Cl C		919,209		1,351
Turkiye Sise ve Cam Fabrikalari		137,460		150
Turkiye Vakiflar Bankasi TAO, Cl D		674,952		832
Vestel Beyaz Esya Sanayi ve Ticaret		112,100		382
Yapi ve Kredi Bankasi		204,733		199

				10,749

United Arab Emirates — 0.2%
Aldar Properties PJSC(C)		2,491,013		1,784
National Central Cooling PJSC(C)		265,588		145
Union National Bank PJSC(C)		43,378		54

				1,983

United Kingdom — 12.8%
3i Group		172,824		1,500
Aberdeen Asset Management		25,907		82
Admiral Group		44,261		997
Amec Foster Wheeler		41,536		241
Anglo American		84,907		1,206
Anglo American PLC		41,915		599
Antofagasta		36,245		302
Ashtead Group		14,607		284
Associated British Foods		10,918		369
AstraZeneca		38,431		2,102

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Auto Trader Group(A) (B)		77,972	$	393
Aviva		121,206		727
Babcock International Group		7,596		89
BAE Systems		268,240		1,955
Barclays PLC		1,948,213		5,366
Barratt Developments		61,336		349
Berendsen		26,498		284
Berkeley Group Holdings		3,930		136
BGEO Group		13,500		496
BHP Billiton		103,960		1,674
BP		932,153		5,855
British American Tobacco		58,734		3,346
British Land‡		29,207		227
BT Group, Cl A		256,799		1,161
Bunzl		82,257		2,138
Burberry Group		12,925		238
Capita		139,805		915
Carnival		23,181		1,179
Centrica		187,971		542
Close Brothers Group		9,102		162
Cobham		52,054		105
Compass Group PLC		619,739		11,465
ConvaTec Group* (A) (B)		208,561		601
Croda International		3,795		149
Daily Mail & General Trust, Cl A		76,423		732
Devro		85,007		199
Diageo PLC		331,545		8,621
Direct Line Insurance Group		41,186		187
Dixons Carphone		28,571		125
easyJet		35,171		436
Fresnillo		6,491		98
G4S		405,355		1,175
GKN		51,283		210
GlaxoSmithKline		148,075		2,850
Glencore		641,264		2,192
GVC Holdings*		55,138		437
Hammerson‡		22,676		160
Hargreaves Lansdown		7,990		119
Hays PLC		491,488		904
Hikma Pharmaceuticals		4,246		99
HomeServe		132,343		1,011
HSBC Holdings PLC		753,550		6,091
IG Group Holdings		91,779		559
IMI		15,288		196
Imperial Brands		29,168		1,273
Inchcape		20,533		178
Informa PLC		84,890		711


Description	Shares		Value (000)

Inmarsat		13,097	$	121
InterContinental Hotels Group		5,496		246
International Personal Finance		128,029		272
Intertek Group		56,919		2,442
Intu Properties‡		28,296		98
Investec		19,819		131
ITV		708,758		1,803
J Sainsbury		49,104		151
Johnson Matthey		5,639		222
Jupiter Fund Management		67,021		366
Just Eat*		66,937		481
Kingfisher		66,918		289
Land Securities Group‡		24,266		319
Legal & General Group		178,087		543
Lloyds Banking Group		3,515,606		2,708
London Stock Exchange Group		9,474		340
Lukoil PJSC ADR		8,255		463
Marks & Spencer Group		46,658		201
McCarthy & Stone(A) (B)		40,610		81
Mediclinic International		10,645		101
Meggitt		23,369		132
Merlin Entertainments(A) (B)		248,112		1,373
Millennium & Copthorne Hotels		16,637		94
Mondi		10,700		220
Moneysupermarket.com Group		125,799		456
National Express Group		30,885		135
National Grid		154,911		1,817
NEX Group		80,022		458
Next		4,088		251
Non-Standard Finance(A) (B)		156,295		111
Northgate		19,937		121
Novolipetsk Steel PJSC GDR		4,682		87
Old Mutual		151,054		386
Paddy Power Betfair		9,812		1,061
Pagegroup		30,587		147
Pearson		23,919		241
Persimmon		9,221		202
Petrofac		16,599		178
Pets at Home Group		120,331		354
Playtech		6,981		71
Provident Financial		42,717		1,500
Prudential PLC		178,869		3,587
Reckitt Benckiser Group PLC		126,968		10,775
RELX		117,786		2,103
Rightmove		48,145		2,316
Rio Tinto PLC		136,211		5,301
Rolls-Royce Holdings PLC		372,030		3,063

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Shares		Value (000)

Rotork		40,304	$	120
Royal Bank of Scotland Group*		102,813		285
Royal Mail		27,041		154
RSA Insurance Group		30,458		220
Sage Group		31,389		253
Schroders		3,883		143
Segro‡		25,003		141
Serco Group PLC		515,848		911
Severn Trent		7,059		193
Shire		27,374		1,580
Sky PLC		59,769		730
Smith & Nephew		39,737		598
Smiths Group PLC		119,477		2,085
South32		39,607		79
Spectris		22,047		628
SSE		30,133		577
SSP Group		209,187		998
St. James’s Place		56,740		709
Stagecoach Group		153,244		408
Standard Chartered PLC		196,516		1,607
Standard Life		57,558		264
Tate & Lyle		13,078		114
Taylor Wimpey		97,757		185
Tesco		432,075		1,101
Thomas Cook Group*		525,028		564
TP ICAP		65,398		349
Travis Perkins		7,259		130
Unilever		85,767		3,480
United Utilities Group		19,868		221
Vodafone Group PLC		976,424		2,405
Weir Group		6,592		153
WH Smith		50,723		974
Whitbread		5,338		248
William Hill		26,546		95
WM Morrison Supermarkets		64,281		183
Wolseley		7,558		462
Worldpay Group (A) (B)		52,384		174
WPP PLC		493,825		11,053

				158,289

United States — 1.1%
Consumer Discretionary — 0.6%
Delphi Automotive PLC		21,474		1,446
Yum China Holdings*		131,058		3,423
Yum! Brands		27,177		1,721

				6,590


Description	Shares		Value (000)

Consumer Staples — 0.0%
Gruma, Cl B		27,136	$	343

Health Care — 0.0%
Teva Pharmaceutical Industries ADR		1,623		59

Industrials — 0.5%
Canadian National Railway		93,004		6,269

Information Technology — 0.0%
ChipMOS TECHNOLOGIES INC ADR		10,743		152
Genpact*		7,497		182
Phoenix New Media ADR*		7,968		25

				359

				13,620

Total Common Stock (Cost $1,209,506) (000)				1,181,709

PREFERRED STOCK — 0.8%
Alpargatas(A)		405,498		1,247
Banco Bradesco, Cl Preference(A)		33,498		298
Banco do Estado do Rio Grande do Sul(A)		189,200		600
Bayerische Motoren Werke, Cl Preference(A)		1,598		122
Centrais Eletricas Brasileiras*,(A)		105,800		843
Cia Brasileira de Distribuicao, Cl Preference(A)		18,665		314
Cia de Gas de Sao Paulo - COMGAS, Cl A(A)		15,855		224
Cia Energetica de Minas Gerais(A)		267,700		634
Cia Energetica de Sao Paulo, Cl Preference(A)		75,800		314
Cia Paranaense de Energia(A)		62,100		522
CJ*,(A) (C)		1,220		75
Embotelladora Andina(A)		14,922		56
FUCHS PETROLUB(A)		2,067		87
Gerdau(A)		237,400		787
Henkel & KGaA(A)		5,325		635
Itausa - Investimentos Itau(A)		286,577		729
Metalurgica Gerdau, Cl Preference*,(A)		225,600		333
Porsche Automobil Holding(A)		4,462		243
Schaeffler, Cl Preference(A)		5,146		76
Volkswagen(A)		12,976		1,821

Total Preferred Stock (Cost $10,359) (000)				9,960

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Description	Number of Rights		Value (000)
RIGHTS — 0.0%
Repsol *(C) (D)		32,927	$	12

Total Rights (Cost $–) (000)				12

SHORT-TERM INVESTMENT — 2.6%

	Shares
State Street Institutional Treasury Money Market Fund, Cl Institutional, 0.406%, (E)		31,883,212		31,883

Total Short-Term Investment (Cost $31,883) (000)				31,883

Total Investments — 99.3% (Cost $1,251,748) (000)			$	1,223,564

Percentages are based on net assets of $1,232,730 (000).

A list of the open futures contracts held by the Fund at December 31, 2016, is as follows:

Type of Contract

Number of
Contracts
Long

Expiration
Date

Unrealized
Depreciation

E-MINI MSCI Future

343

Mar-2017

(129

)

For the year ended December 31, 2016, the monthly average value of futures contracts held was $18,300 (000).

‡	Real Estate Investment Trust

*	Non-income producing security.

(A)

Rate not available.

(B)

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.” These securities have been determined to be liquid under guidelines established by the Board of Trustees.

(C)

Security is fair valued using methods determined in good faith by the Fair Value Pricing Committee of the Board of Trustees. The total market value of such securities as of December 31, 2016 was $61,243 (000) and represented 5.0% of net assets.

(D)

Expiration date not available.

(E)

The rate reported is the 7-day effective yield as of December 31, 2016.

ADR — American Depositary Receipt

Cl — Class

GDR — Global Depositary Receipt

NGN — Nigerian Naira

NOK — Norwegian Krone

PLC — Public Limited Company

REIT — Real Estate Investment Trust

The following is a list of the level of inputs used as of December 31, 2016, 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	$	36,207	$	—	$	—	$	36,207
Austria		1,778		—		—		1,778
Belgium		9,111		—		—		9,111
Brazil		17,950		—		—		17,950
Canada		19,314		—		—		19,314
Chile		3,353		—		—		3,353
China		36,784		—		—		36,784
Colombia		1,081		—		—		1,081
Cyprus		549		—		—		549
Czech Republic		223		—		—		223
Denmark		20,603		—		—		20,603
Egypt		—		84		—		84
Finland		9,577		—		—		9,577
France		89,343		—		—		89,343
Germany		78,051		—		—		78,051
Greece		2,782		—		—		2,782
Hong Kong		53,455		—		—		53,455
India		23,306		—		—		23,306
Indonesia		8,157		—		—		8,157
Ireland		9,452		—		—		9,452
Israel		3,991		1,838		—		5,829
Italy		19,356		—		—		19,356
Japan		200,898		—		—		200,898
Luxembourg		4,090		—		—		4,090
Macau		323		—		—		323
Malaysia		9,825		—		—		9,825
Mexico		6,576		—		—		6,576
Netherlands		51,323		—		—		51,323
New Zealand		1,132		—		—		1,132
Norway		4,020		—		—		4,020
Panama		38		—		—		38
Peru		3,545		—		—		3,545
Philippines		—		1,616		—		1,616
Poland		6,326		—		—		6,326
Portugal		543		—		—		543
Qatar		420		3,808		—		4,228
Russia		9,417		—		—		9,417
Singapore		12,740		—		—		12,740
South Africa		13,791		—		—		13,791
South Korea		3,460		51,827		—		55,287
Spain		17,997		—		—		17,997
Sweden		20,723		—		—		20,723
Switzerland		80,432		—		—		80,432
Taiwan		29,777		—		—		29,777
Thailand		16,076		—		—		16,076
Turkey		10,749		—		—		10,749
United Arab Emirates		—		1,983		—		1,983
United Kingdom		158,289		—		—		158,289
United States		13,620		—		—		13,620

Total Common Stock		1,120,553		61,156		—		1,181,709

Preferred Stock		9,885		75		—		9,960
Rights		—		12		—		12
Short-Term Investment		31,883		—		—		31,883

Total Investments in Securities	$	1,162,321	$	61,243	$	—	$	1,223,564

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


THE KP FUNDS		December 31, 2016


KP International Equity Fund


Other Financial Instruments	Level 1			Level 2		Level 3^		Total
Futures
Unrealized Depreciation**	$	(129	)	$	—	$	—	$	(129	)

Total Other Financial Instruments	$	(129	)	$	—	$	—	$	(129	)

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

As of December 31, 2016, the Fund held several Level 3 securities that were deemed worthless or $0 value. 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, 2016, 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, 2016, securities with a total value of $912,179 (000) transferred from Level 2 to Level 1 as a result of fair valuation of foreign equity securities. There were no other significant transfers between Level 1 and Level 2 assets for the year ended December 31, 2016.

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, 2016


KP Fixed Income Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Face Amount (000)		Value (000)

U.S. TREASURY OBLIGATIONS — 31.5%
U.S. Treasury Bonds
4.750%, 02/15/37-02/15/37	$	7,543	$	9,820
3.000%, 05/15/45-05/15/45		4,618		4,556
2.875%, 08/15/45-08/15/45		6,857		6,598
2.500%, 02/15/46-05/15/46		476		423
2.250%, 08/15/46-08/15/46		4,243		3,568
U.S. Treasury Notes
8.000%, 11/15/21-11/15/21		1,000		1,281
3.625%, 02/15/20-02/15/21		3,950		4,220
3.500%, 05/15/20-05/15/20		750		797
3.375%, 11/15/19-11/15/19		1,000		1,055
3.125%, 05/15/19-05/15/19		1,500		1,564
2.750%, 11/15/23-02/15/24		2,750		2,840
2.625%, 08/15/20-11/15/20		2,750		2,843
2.500%, 08/15/23-05/15/24		3,100		3,150
2.375%, 08/15/24-08/15/24		2,400		2,411
2.250%, 03/31/21-11/15/25		6,250		6,268
2.125%, 08/15/21-05/15/25		7,375		7,326
2.000%, 07/31/20-11/15/26		29,704		29,335
1.875%, 11/30/21-10/31/22		4,000		3,963
1.750%, 09/30/19-05/15/23		25,172		24,930
1.625%, 03/31/19-05/15/26		36,975		36,208
1.500%, 08/31/18-08/15/26		27,211		26,358
1.375%, 06/30/18-08/31/23		53,984		53,464
1.250%, 11/15/18-07/31/23		27,177		26,545
1.125%, 01/15/19-09/30/21		30,453		29,519
1.000%, 03/15/18-11/15/19		18,074		18,022
0.875%, 01/31/18-09/15/19		15,883		15,799
0.750%, 01/31/18-08/15/19		9,354		9,291
0.625%, 04/30/18-06/30/18		5,000		4,973

Total U.S. Treasury Obligations (Cost $342,312) (000)				337,127

CORPORATE OBLIGATIONS — 26.7%
Consumer Discretionary — 1.9%
21st Century Fox America
6.400%, 12/15/35		196		234


Description	Face Amount (000)		Value (000)

4.500%, 02/15/21	$	100	$	107
3.700%, 09/15/24		120		122
Amazon.com
3.300%, 12/05/21		200		207
American Honda Finance
2.450%, 09/24/20		100		100
1.700%, 02/22/19		225		218
Atento Luxco
7.375%, 01/29/20 (A)		220		221
AutoZone
2.500%, 04/15/21		100		99
Bed Bath & Beyond
3.749%, 08/01/24		25		25
CBS
3.375%, 03/01/22		150		153
Charter Communications Operating
6.484%, 10/23/45		287		332
6.384%, 10/23/35		310		354
4.464%, 07/23/22		100		104
3.579%, 07/23/20		1,488		1,518
Cleveland Clinic Foundation
4.858%, 01/01/14		378		359
Comcast
4.500%, 01/15/43		487		502
3.375%, 02/15/25		275		277
3.150%, 03/01/26		50		50
3.125%, 07/15/22		150		153
2.750%, 03/01/23		100		99
Council of Europe Development Bank
1.750%, 11/14/19		100		100
1.125%, 05/31/18		150		149
Delphi
4.150%, 03/15/24		40		41
Delphi Automotive
3.150%, 11/19/20		100		102
Diageo Investment
2.875%, 05/11/22		100		101
Discovery Communications
5.050%, 06/01/20		100		107
Dollar General
4.150%, 11/01/25		25		26
DR Horton
4.000%, 02/15/20		35		36
3.750%, 03/01/19		25		25
Expedia
4.500%, 08/15/24		100		102
Ford Motor
5.291%, 12/08/46		908		920
4.346%, 12/08/26		45		45
Ford Motor Credit
5.875%, 08/02/21		200		221
2.375%, 03/12/19		400		400
2.240%, 06/15/18		200		200

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

General Motors
6.250%, 10/02/43	$	887	$	981
3.500%, 10/02/18		200		204
General Motors Financial
4.300%, 07/13/25		100		99
4.000%, 01/15/25		150		146
3.700%, 05/09/23		100		98
3.150%, 01/15/20		150		151
3.100%, 01/15/19		100		101
2.350%, 10/04/19		50		50
Grupo Televisa
7.250%, 05/14/43 (MXN)		2,840		102
Home Depot
4.400%, 04/01/21		100		108
2.625%, 06/01/22		100		101
2.000%, 06/15/19		200		200
Kohl’s
4.000%, 11/01/21		100		105
Latam Airlines Pass-Through Trust
4.200%, 11/15/27		438		431
Lear
5.250%, 01/15/25		45		47
Lowe’s
4.625%, 04/15/20		100		107
2.500%, 04/15/26		50		47
1.150%, 04/15/19		20		20
Macy’s Retail Holdings
3.625%, 06/01/24		100		98
Magna International
3.625%, 06/15/24		50		50
Marriott International
3.125%, 10/15/21		250		243
Mattel
2.350%, 05/06/19		100		100
McDonald’s
5.350%, 03/01/18		100		104
3.375%, 05/26/25		100		101
2.750%, 12/09/20		20		20
Minerva Luxembourg
6.500%, 09/20/26 (A)		380		366
NBCUniversal Media
4.375%, 04/01/21		100		108
Newell Brands
5.500%, 04/01/46		850		976
4.000%, 12/01/24		50		51
3.150%, 04/01/21		150		153
Omnicom Group
4.450%, 08/15/20		100		106
3.600%, 04/15/26		100		99
O’Reilly Automotive
3.550%, 03/15/26		50		50
QVC
4.450%, 02/15/25		65		62


Description	Face Amount (000)		Value (000)

Scripps Networks Interactive
2.750%, 11/15/19	$	100	$	101
Staples
2.750%, 01/12/18		100		100
Starbucks
3.850%, 10/01/23		150		160
Target
2.900%, 01/15/22		200		204
Time Warner
4.875%, 03/15/20		100		107
4.750%, 03/29/21		100		107
3.600%, 07/15/25		100		99
2.100%, 06/01/19		100		100
Time Warner Cable
8.250%, 04/01/19		200		225
7.300%, 07/01/38		238		293
4.000%, 09/01/21		100		102
TJX
2.750%, 06/15/21		100		102
Toyota Motor Credit
4.250%, 01/11/21		100		108
2.750%, 05/17/21		100		101
2.250%, 10/18/23		50		48
2.100%, 01/17/19		150		151
1.550%, 07/13/18		1,975		1,952
1.200%, 04/06/18		50		50
USJ Acucar e Alcool
9.875%, 11/09/21 (A)		289		230
Viacom
4.250%, 09/01/23		100		100
3.450%, 10/04/26		576		533
2.200%, 04/01/19		100		99
Walt Disney
3.150%, 09/17/25		100		102
2.550%, 02/15/22		100		100
1.850%, 05/30/19		150		151
Wesleyan University
4.781%, 07/01/16		649		614
Whirlpool
4.000%, 03/01/24		60		62
Wyndham Worldwide
4.250%, 03/01/22		50		52

				19,747

Consumer Staples — 1.9%
Altria Group
9.250%, 08/06/19		200		236
Anheuser-Busch InBev Finance
4.900%, 02/01/46		1,243		1,344
4.700%, 02/01/36		729		767
3.650%, 02/01/26		300		305
2.650%, 02/01/21		215		216
2.150%, 02/01/19		200		201
1.900%, 02/01/19		200		200
1.250%, 01/17/18		100		100

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Anheuser-Busch InBev Worldwide
7.750%, 01/15/19	$	100	$	111
5.375%, 01/15/20		100		109
3.750%, 01/15/22		200		209
2.500%, 07/15/22		100		99
Bunge Finance
3.250%, 08/15/26		120		115
Clorox
3.500%, 12/15/24		50		51
Coca-Cola
3.300%, 09/01/21		100		104
3.200%, 11/01/23		100		103
2.875%, 10/27/25		50		49
2.550%, 06/01/26		50		47
2.450%, 11/01/20		50		51
1.875%, 10/27/20		50		50
1.375%, 05/30/19		50		50
Coca-Cola Femsa
2.375%, 11/26/18		150		151
Colgate-Palmolive
1.750%, 03/15/19		100		100
Constellation Brands
6.000%, 05/01/22		20		23
4.250%, 05/01/23		50		52
3.875%, 11/15/19		10		10
3.750%, 05/01/21		15		15
Costco Wholesale
1.700%, 12/15/19		100		100
CVS Health
5.125%, 07/20/45		240		268
4.000%, 12/05/23		150		158
3.875%, 07/20/25		120		124
3.375%, 08/12/24		100		100
2.875%, 06/01/26		50		48
2.250%, 12/05/18		150		151
2.125%, 06/01/21		50		49
CVS Pass-Through Trust
4.704%, 01/10/36 (A)		721		761
Dr Pepper Snapple Group
3.400%, 11/15/25		150		150
General Mills
5.650%, 02/15/19		100		108
Hershey
2.300%, 08/15/26		50		46
Ingredion
3.200%, 10/01/26		50		49
JM Smucker
2.500%, 03/15/20		100		100
Kellogg
4.000%, 12/15/20		100		105
Kimberly-Clark
2.750%, 02/15/26		100		97
Kraft Heinz Foods
5.200%, 07/15/45		682		714


Description	Face Amount (000)		Value (000)

4.375%, 06/01/46	$	394	$	371
3.950%, 07/15/25		150		152
3.500%, 06/06/22		225		229
2.000%, 07/02/18		735		735
Kroger
3.300%, 01/15/21		100		103
2.950%, 11/01/21		150		151
Mead Johnson Nutrition
3.000%, 11/15/20		30		30
Molson Coors Brewing
3.000%, 07/15/26		225		213
1.450%, 07/15/19		25		24
Mondelez International Holdings Netherlands BV
2.000%, 10/28/21 (A)		1,687		1,613
1.625%, 10/28/19 (A)		1,203		1,176
PepsiCo
3.600%, 03/01/24		100		104
2.850%, 02/24/26		100		99
2.375%, 10/06/26		200		189
1.250%, 04/30/18		100		100
Philip Morris International
4.500%, 03/26/20		100		107
3.375%, 08/11/25		100		101
1.875%, 02/25/21		200		196
Procter & Gamble
3.100%, 08/15/23		100		103
2.450%, 11/03/26		50		48
1.900%, 11/01/19		100		101
Reynolds American
8.125%, 06/23/19		100		114
4.450%, 06/12/25		150		159
2.300%, 06/12/18		3,807		3,831
Sigma Alimentos
4.125%, 05/02/26 (A)		270		256
Sysco
2.600%, 10/01/20		50		50
2.500%, 07/15/21		35		35
1.900%, 04/01/19		30		30
Tyson Foods
4.500%, 06/15/22		150		160
Unilever Capital
4.250%, 02/10/21		150		161
Walgreens Boots Alliance
4.800%, 11/18/44		395		406
3.450%, 06/01/26		65		64
3.300%, 11/18/21		100		102
3.100%, 06/01/23		30		30
2.700%, 11/18/19		100		101
2.600%, 06/01/21		30		30
1.750%, 05/30/18		35		35
Wal-Mart Stores
4.250%, 04/15/21		125		135
3.300%, 04/22/24		100		103
1.125%, 04/11/18		200		200

				19,943

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description		Face Amount (000)		Value (000)

Energy — 3.2%
Anadarko Petroleum
6.950%, 06/15/19		$	274	$	304
6.600%, 03/15/46			327		403
5.550%, 03/15/26			100		112
4.500%, 07/15/44			515		484
Apache
3.250%, 04/15/22			100		102
Baker Hughes
7.500%, 11/15/18			150		165
Boardwalk Pipelines
4.950%, 12/15/24			50		51
BP Capital Markets
3.535%, 11/04/24			250		254
3.245%, 05/06/22			1,980		2,022
3.062%, 03/17/22			100		101
2.750%, 05/10/23			100		98
2.237%, 05/10/19			100		101
2.112%, 09/16/21			100		98
1.676%, 05/03/19			20		20
Canadian Natural Resources
5.900%, 02/01/18			495		515
Chevron
2.954%, 05/16/26			50		49
2.566%, 05/16/23	��		50		49
2.355%, 12/05/22			150		147
2.193%, 11/15/19			90		91
2.100%, 05/16/21			50		50
1.961%, 03/03/20			50		50
1.718%, 06/24/18			300		301
1.561%, 05/16/19			50		50
CNOOC Curtis Funding No. 1
4.500%, 10/03/23 (A)			950		998
CNOOC Finance 2015 USA
3.500%, 05/05/25			200		194
Columbia Pipeline Group
2.450%, 06/01/18			100		101
ConocoPhillips
6.500%, 02/01/39			489		619
6.000%, 01/15/20			100		110
4.200%, 03/15/21			50		53
3.350%, 11/15/24			200		199
Devon Energy
3.250%, 05/15/22			100		99
Ecopetrol
5.875%, 09/18/23			100		106
Emera US Finance
2.700%, 06/15/21 (A)			150		148
Enable Midstream Partners
2.400%, 05/15/19			50		49
Enbridge Energy Partners
5.875%, 10/15/25			100		112
Encana
6.500%, 05/15/19			801		865
3.900%, 11/15/21			50		50


Description	Face Amount (000)		Value (000)

Energy Transfer Partners
6.625%, 10/15/36	$	704	$	763
4.050%, 03/15/25		150		148
3.600%, 02/01/23		100		98
2.500%, 06/15/18		150		151
EnLink Midstream Partners
5.600%, 04/01/44		482		464
5.050%, 04/01/45		190		172
2.700%, 04/01/19		800		801
Enterprise Products Operating
3.350%, 03/15/23		100		102
2.850%, 04/15/21		30		30
2.550%, 10/15/19		200		202
EOG Resources
3.150%, 04/01/25		100		98
2.625%, 03/15/23		100		97
Exxon Mobil
3.043%, 03/01/26		50		50
2.726%, 03/01/23		35		35
2.709%, 03/06/25		150		146
2.222%, 03/01/21		20		20
1.819%, 03/15/19		250		251
1.708%, 03/01/19		50		50
1.439%, 03/01/18		30		30
Fermaca Enterprises
6.375%, 03/30/38 (A)		191		188
Halliburton
3.500%, 08/01/23		100		102
Husky Energy
4.000%, 04/15/24		100		102
Kinder Morgan
5.300%, 12/01/34		840		853
3.050%, 12/01/19		710		720
Kinder Morgan Energy Partners
3.950%, 09/01/22		250		257
3.500%, 03/01/21		20		20
Magellan Midstream Partners
4.250%, 02/01/21		100		106
Marathon Oil
2.800%, 11/01/22		150		143
Marathon Petroleum
3.400%, 12/15/20		100		102
MPLX
4.875%, 12/01/24		100		103
4.500%, 07/15/23		2,250		2,285
4.000%, 02/15/25		25		24
Nabors Industries
5.100%, 09/15/23		100		100
National Oilwell Varco
2.600%, 12/01/22		100		93
Noble Energy
8.250%, 03/01/19		1,230		1,382
4.150%, 12/15/21		100		104
Occidental Petroleum
3.400%, 04/15/26		70		71
3.125%, 02/15/22		100		102

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Odebrecht Drilling Norbe VIII
6.350%, 06/30/21 (A)	$	300	$	134
ONEOK Partners
3.375%, 10/01/22		100		100
Pertamina Persero
6.450%, 05/30/44 (A)		370		375
6.000%, 05/03/42 (A)		250		240
5.250%, 05/23/21 (A)		265		279
Petrobras Global Finance BV
4.375%, 05/20/23		790		690
Petroleos de Venezuela
9.000%, 11/17/21		660		350
8.500%, 10/27/20 (A)		245		182
6.000%, 11/15/26 (A)		665		256
5.375%, 04/12/27		365		136
Petroleos Mexicanos
8.000%, 05/03/19		250		274
6.875%, 08/04/26 (A)		50		53
6.750%, 09/21/47 (A)		318		300
6.375%, 02/04/21 (A)		240		226
5.625%, 01/23/46		879		730
5.500%, 02/04/19 (A)		290		267
4.875%, 01/24/22		350		351
4.625%, 09/21/23 (A)		200		195
3.500%, 07/23/20		755		699
Petronas Capital
4.500%, 03/18/45 (A)		200		201
Phillips 66 Partners
3.605%, 02/15/25		25		24
Pioneer Natural Resources
3.450%, 01/15/21		100		102
Plains All American Pipeline
6.650%, 01/15/37		841		918
4.650%, 10/15/25		150		155
3.850%, 10/15/23		150		148
Regency Energy Partners
4.500%, 11/01/23		100		101
Schlumberger Investment
3.650%, 12/01/23		100		105
Shell International Finance
3.250%, 05/11/25		150		150
2.875%, 05/10/26		100		97
2.000%, 11/15/18		200		201
1.875%, 05/10/21		150		147
1.625%, 11/10/18		200		200
Sinopec Group Overseas Development
3.500%, 05/03/26 (A)		580		562
Spectra Energy Partners
3.500%, 03/15/25		100		98
State Oil of the Azerbaijan Republic
4.750%, 03/13/23		505		490
Statoil
3.700%, 03/01/24		100		105


Description	Face Amount (000)		Value (000)

2.450%, 01/17/23	$	125	$	122
2.250%, 11/08/19		150		151
Suncor Energy
6.100%, 06/01/18		1,040		1,101
Sunoco Logistics Partners Operations
4.400%, 04/01/21		100		105
Total Capital Canada
2.750%, 07/15/23		100		99
Total Capital International
2.700%, 01/25/23		100		99
2.100%, 06/19/19		100		100
TransCanada PipeLines
4.875%, 01/15/26		100		111
2.500%, 08/01/22		100		98
1.625%, 11/09/17		671		670
Ultrapar International
5.250%, 10/06/26 (A)		450		441
Valero Energy
9.375%, 03/15/19		29		34
3.650%, 03/15/25		100		99
Western Gas Partners
2.600%, 08/15/18		100		100
Williams Partners
6.300%, 04/15/40		874		933
5.250%, 03/15/20		250		267
3.600%, 03/15/22		100		101

				34,157

Financials — 8.9%
Aflac
3.625%, 06/15/23		100		104
African Development Bank
1.375%, 02/12/20		100		99
1.125%, 09/20/19		100		98
0.875%, 03/15/18		150		149
AIA Group
2.250%, 03/11/19 (A)		424		425
Alleghany
4.950%, 06/27/22		100		108
Allstate
5.750%, 08/15/53 (B)		200		207
American Express Credit
2.375%, 05/26/20		100		100
2.250%, 08/15/19		250		250
1.875%, 11/05/18		150		150
American International Group
4.800%, 07/10/45		400		415
4.500%, 07/16/44		290		286
3.375%, 08/15/20		150		154
3.300%, 03/01/21		150		154
2.300%, 07/16/19		100		101
Ameriprise Financial
5.300%, 03/15/20		100		108
Andina de Fomento
4.375%, 06/15/22		100		106

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Aon
5.000%, 09/30/20	$	100	$	108
Ares Capital
3.875%, 01/15/20		60		61
Asian Development Bank
2.000%, 01/22/25		100		96
1.750%, 03/21/19		100		100
1.625%, 08/26/20		300		296
1.375%, 01/15/19		100		100
1.125%, 06/05/18		150		150
1.000%, 08/16/19		100		98
0.875%, 04/26/18		100		99
Assurant
4.000%, 03/15/23		74		75
Australia & New Zealand Banking Group NY
2.700%, 11/16/20		250		251
2.550%, 11/23/21		250		248
Banco de Costa Rica
5.250%, 08/12/18 (A)		540		545
Banco Internacional del Peru SAA Interbank
6.625%, 03/19/29 (A) (B)		130		137
Banco Nacional de Costa Rica
5.875%, 04/25/21 (A)		210		212
4.875%, 11/01/18 (A)		350		352
Bank of America
5.700%, 01/24/22		100		112
4.450%, 03/03/26		130		134
4.200%, 08/26/24		165		168
4.125%, 01/22/24		1,978		2,056
4.100%, 07/24/23		100		105
4.000%, 01/22/25		100		100
3.950%, 04/21/25		200		199
3.500%, 04/19/26		50		49
3.248%, 10/21/27		2,249		2,147
2.650%, 04/01/19		450		455
2.625%, 10/19/20		350		350
2.503%, 10/21/22		100		97
2.250%, 04/21/20		250		249
2.151%, 11/09/20		100		99
2.050%, 12/07/18		405		407
2.000%, 01/11/18		150		150
1.750%, 06/05/18		250		250
Bank of Montreal
2.100%, 12/12/19		65		65
1.800%, 07/31/18		50		50
1.400%, 04/10/18		200		200
Bank of New York Mellon
3.550%, 09/23/21		100		104
3.000%, 02/24/25		100		98
2.500%, 04/15/21		100		100
2.450%, 11/27/20		100		97
2.100%, 08/01/18		200		202
Bank of Nova Scotia
2.800%, 07/21/21		100		101
2.450%, 03/22/21		50		50


Description	Face Amount (000)		Value (000)

2.050%, 10/30/18	$	100	$	100
1.950%, 01/15/19		50		50
1.650%, 06/14/19		50		49
Barclays
4.375%, 01/12/26		200		204
3.650%, 03/16/25		200		193
2.875%, 06/08/20		250		248
Barrick North America Finance
4.400%, 05/30/21		37		39
BB&T
2.450%, 01/15/20		100		101
2.050%, 05/10/21		300		294
Berkshire Hathaway
3.125%, 03/15/26		200		198
3.000%, 02/11/23		150		152
Berkshire Hathaway Finance
1.700%, 03/15/19		100		100
1.300%, 08/15/19		1,201		1,186
BGEO Group JSC
6.000%, 07/26/23 (A)		350		350
BlackRock
5.000%, 12/10/19		100		109
BMCE Bank
6.250%, 11/27/18		200		206
BNP Paribas
4.250%, 10/15/24		200		200
2.375%, 05/21/20		200		199
BOC Aviation
3.875%, 04/27/26 (A)		200		193
BPCE
2.500%, 07/15/19		250		251
Canadian Imperial Bank of Commerce
1.600%, 09/06/19		50		50
Capital One
1.650%, 02/05/18		1,737		1,734
Capital One Bank USA
2.150%, 11/21/18		250		250
Capital One Financial
4.200%, 10/29/25		100		100
3.750%, 07/28/26		100		97
3.200%, 02/05/25		50		48
2.450%, 04/24/19		100		101
Charles Schwab
4.450%, 07/22/20		100		107
Chubb
5.750%, 05/15/18		100		106
Chubb INA Holdings
3.350%, 05/15/24		100		102
Citigroup
4.400%, 06/10/25		200		204
4.125%, 07/25/28		1,261		1,245
3.750%, 06/16/24		100		102
3.500%, 05/15/23		100		100
3.400%, 05/01/26		100		97

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

3.300%, 04/27/25	$	100	$	98
3.200%, 10/21/26		818		782
2.900%, 12/08/21		100		100
2.700%, 03/30/21		1,673		1,669
2.650%, 10/26/20		100		100
2.500%, 07/29/19		100		101
2.400%, 02/18/20		100		100
2.150%, 07/30/18		70		70
1.800%, 02/05/18		500		500
1.700%, 04/27/18		100		100
Citigroup Global Markets Holdings
24.750%, 03/03/21 (A) (B) (GHS)		1,060		284
0.00%, 03/03/21 (A) (B) (GHS)		1,000		268
Citizens Financial Group
4.300%, 12/03/25		100		102
2.375%, 07/28/21		30		29
CME Group
3.000%, 03/15/25		150		150
CNA Financial
5.875%, 08/15/20		100		110
Comerica
2.125%, 05/23/19		50		50
Commonwealth Bank of Australia
2.250%, 03/13/19		250		251
Cooperatieve Rabobank UA
3.875%, 02/08/22		100		106
3.750%, 07/21/26		685		671
2.250%, 01/14/20		250		250
1.375%, 08/09/19		250		246
Credit Suisse Group Funding Guernsey
3.450%, 04/16/21		250		252
3.125%, 12/10/20		250		249
Credit Suisse New York
3.625%, 09/09/24		250		252
1.700%, 04/27/18		250		249
Deutsche Bank
3.700%, 05/30/24		85		83
2.950%, 08/20/20		100		98
1.875%, 02/13/18		250		249
Development Bank of Kazakhstan
4.125%, 12/10/22 (A)		470		452
Discover Bank
2.000%, 02/21/18		250		250
European Bank for Reconstruction & Development
1.750%, 11/26/19		150		150
1.500%, 03/16/20		200		199
European Investment Bank
3.250%, 01/29/24		250		261
2.250%, 08/15/22		250		249
2.125%, 10/15/21		300		294
1.875%, 03/15/19		150		151


Description	Face Amount (000)		Value (000)
1.750%, 06/17/19	$	300	$	301
1.625%, 12/18/18		300		297
1.375%, 06/15/20		250		243
1.250%, 05/15/18		550		544
1.125%, 08/15/18		550		543
Export Credit Bank of Turkey
5.875%, 04/24/19 (A)		200		204
5.375%, 02/08/21 (A)		725		709
Fifth Third Bancorp
2.875%, 07/27/20		250		253
Financiera de Desarrollo
4.750%, 02/08/22 (A)		440		460
FMS Wertmanagement AoeR
1.750%, 03/17/20		200		200
1.375%, 06/08/21		200		193
FS Investment
4.250%, 01/15/20		30		30
Global Bank
4.500%, 10/20/21 (A)		390		380
Goldman Sachs Group
6.150%, 04/01/18		500		526
5.750%, 01/24/22		300		337
4.750%, 10/21/45		1,315		1,388
4.000%, 03/03/24		200		208
3.750%, 05/22/25		350		351
3.625%, 01/22/23		726		742
2.750%, 09/15/20		75		75
2.625%, 04/25/21		100		99
2.600%, 04/23/20		100		100
2.550%, 10/23/19		200		201
2.350%, 11/15/27		45		44
2.300%, 12/13/19		85		85
Hanover Insurance Group
4.500%, 04/15/26		100		100
Hartford Financial Services Group
5.125%, 04/15/22		100		111
HSBC Finance
6.676%, 01/15/21		100		112
HSBC Holdings
4.375%, 11/23/26		570		574
4.250%, 08/18/25		200		202
4.000%, 03/30/22		100		104
3.900%, 05/25/26		1,197		1,205
3.600%, 05/25/23		250		252
3.400%, 03/08/21		1,794		1,824
2.950%, 05/25/21		200		200
2.650%, 01/05/22		200		195
HSBC USA
2.625%, 09/24/18		150		152
2.000%, 08/07/18		100		100
Huntington National Bank
2.000%, 06/30/18		250		250
IDBI Bank
4.125%, 04/23/20		210		211

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Industrial & Commercial Bank of China
2.905%, 11/13/20	$	250	$	250
ING Bank
2.000%, 11/26/18 (A)		1,495		1,494
Inter-American Development Bank
2.125%, 11/09/20		375		373
2.000%, 06/02/26		150		141
1.875%, 06/16/20		450		449
1.750%, 04/14/22		150		147
1.000%, 05/13/19		100		99
Intercontinental Exchange
4.000%, 10/15/23		150		157
International Bank for Reconstruction & Development
2.500%, 11/25/24		250		248
2.250%, 06/24/21		50		50
2.125%, 02/13/23		100		99
1.875%, 03/15/19		400		397
1.750%, 04/19/23		200		193
1.625%, 03/09/21		350		342
1.375%, 05/24/21		400		388
1.250%, 07/26/19		100		99
1.000%, 06/15/18		300		299
0.875%, 07/19/18		250		248
International Finance
1.625%, 07/16/20		100		100
1.250%, 07/16/18		100		100
1.125%, 07/20/21		100		95
0.875%, 06/15/18		300		298
Intesa Sanpaolo
5.250%, 01/12/24		250		263
Jefferies Group
6.875%, 04/15/21		100		114
JPMorgan Chase
6.000%, 01/15/18		300		313
4.350%, 08/15/21		250		268
3.625%, 05/13/24		1,495		1,455
3.375%, 05/01/23		200		199
3.300%, 04/01/26		100		98
3.200%, 06/15/26		100		98
3.125%, 01/23/25		150		147
2.950%, 10/01/26		1,625		1,551
2.750%, 06/23/20		300		303
2.700%, 05/18/23		100		98
2.550%, 10/29/20		530		529
2.400%, 06/07/21		1,280		1,268
2.250%, 01/23/20		1,653		1,649
1.800%, 01/25/18		250		250
1.700%, 03/01/18		250		250
JPMorgan Chase Bank
8.375%, 03/17/34 (A) (IDR)		3,000,000		224
KeyBank
3.400%, 05/20/26		250		243
KeyCorp
5.100%, 03/24/21		150		164


Description	Face Amount (000)		Value (000)

KFW
2.500%, 11/20/24	$	150	$	149
2.125%, 01/17/23		250		246
1.875%, 04/01/19		550		550
1.500%, 04/20/20		600		589
1.250%, 09/30/19		150		148
1.000%, 01/26/18		1,000		995
0.875%, 04/19/18		100		100
Landwirtschaftliche Rentenbank
2.375%, 06/10/25		100		98
1.750%, 04/15/19		100		101
1.000%, 04/04/18		200		199
Lazard Group
3.750%, 02/13/25		50		49
Liberty Mutual Group
4.850%, 08/01/44 (A)		238		235
Lima Metro Line 2 Finance
5.875%, 07/05/34 (A)		230		243
Lincoln National
3.625%, 12/12/26		100		100
Lloyds Banking Group
4.650%, 03/24/26		250		253
4.582%, 12/10/25		200		201
Loews
2.625%, 05/15/23		100		97
Magyar Export-Import Bank
4.000%, 01/30/20 (A)		450		461
Marsh & McLennan
2.350%, 09/10/19		75		75
MetLife
3.600%, 04/10/24		150		153
Metropolitan Life Global Funding I
3.450%, 12/18/26 (A)		2,054		2,073
1.300%, 04/10/17 (A)		2,266		2,267
Mitsubishi UFJ Financial Group
3.850%, 03/01/26		200		205
Moody’s
2.750%, 07/15/19		100		101
Morgan Stanley
4.875%, 11/01/22		100		107
4.000%, 07/23/25		100		102
3.875%, 01/27/26		200		202
3.700%, 10/23/24		150		152
3.125%, 07/27/26		1,043		996
2.800%, 06/16/20		100		101
2.650%, 01/27/20		100		100
2.625%, 11/17/21		120		119
2.500%, 01/24/19		250		253
2.375%, 07/23/19		550		552
1.875%, 01/05/18		200		200
MUFG Americas Holdings
3.000%, 02/10/25		200		192
Nasdaq
5.250%, 01/16/18		85		88
National Australia Bank
2.625%, 07/23/20		250		251

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

National Rural Utilities Cooperative Finance
10.375%, 11/01/18	$	150	$	173
2.700%, 02/15/23		100		99
National Savings Bank
8.875%, 09/18/18 (A)		490		518
Nomura Holdings
2.750%, 03/19/19		150		151
Nordic Investment Bank
1.125%, 03/19/18		200		200
Oesterreichische Kontrollbank
1.875%, 01/20/21		150		148
1.125%, 05/29/18		150		150
Pelabuhan Indonesia III Persero
4.875%, 10/01/24 (A)		200		201
PNC Bank
3.250%, 06/01/25		250		250
2.400%, 10/18/19		250		252
1.800%, 11/05/18		250		250
Pricoa Global Funding I
1.900%, 09/21/18 (A)		736		738
Principal Financial Group
3.400%, 05/15/25		100		99
Private Export Funding
3.250%, 06/15/25		100		103
2.250%, 03/15/20		200		203
Prudential Financial
7.375%, 06/15/19		100		113
5.625%, 06/15/43 (B)		100		104
5.375%, 05/15/45 (B)		100		102
Regions Financial
3.200%, 02/08/21		50		51
Royal Bank of Canada
2.200%, 07/27/18		150		151
2.150%, 03/15/19		200		201
2.000%, 12/10/18		50		50
1.625%, 04/15/19		150		149
1.500%, 07/29/19		1,253		1,237
Royal Bank of Scotland Group
4.800%, 04/05/26		200		200
S&P Global
4.000%, 06/15/25		100		103
Santander Holdings USA
2.700%, 05/24/19		50		50
2.650%, 04/17/20		100		99
Santander UK
2.375%, 03/16/20		100		99
Santander UK Group Holdings
3.125%, 01/08/21		100		100
Standard Chartered Bank
10.750%, 03/03/21 (A) (LKR)		76,000		486
7.280%, 06/05/19 (A) (INR)		25,000		376
Sumitomo Mitsui Banking
1.950%, 07/23/18		250		250


Description	Face Amount (000)		Value (000)

Sumitomo Mitsui Financial Group
3.784%, 03/09/26	$	50	$	51
2.934%, 03/09/21		250		252
2.632%, 07/14/26		100		93
SunTrust Banks
2.900%, 03/03/21		50		51
2.500%, 05/01/19		50		50
Svensk Exportkredit
1.875%, 06/17/19		200		200
Svenska Handelsbanken
1.625%, 03/21/18		250		250
Synchrony Financial
4.500%, 07/23/25		100		103
3.000%, 08/15/19		100		101
TD Ameritrade Holding
2.950%, 04/01/22		200		202
Toronto-Dominion Bank
2.500%, 12/14/20		100		100
2.125%, 07/02/19		150		150
1.950%, 04/02/20 (A)		473		471
1.800%, 07/13/21		100		97
1.625%, 03/13/18		150		150
Travelers
3.900%, 11/01/20		100		106
UBS
2.350%, 03/26/20		250		249
1.375%, 06/01/17		1,334		1,334
Unum Group
4.000%, 03/15/24		50		50
US Bancorp
2.950%, 07/15/22		300		302
2.375%, 07/22/26		250		231
1.950%, 11/15/18		100		101
Voya Financial
2.900%, 02/15/18		77		78
WEA Finance
4.750%, 09/17/44‡ (A)		715		707
Wells Fargo
4.900%, 11/17/45		449		461
4.750%, 12/07/46		545		553
4.125%, 08/15/23		200		207
3.550%, 09/29/25		100		100
3.300%, 09/09/24		100		99
3.000%, 01/22/21		1,623		1,553
2.550%, 12/07/20		85		85
2.100%, 07/26/21		150		146
Wells Fargo Bank
1.750%, 05/24/19		250		249
Westpac Banking
2.850%, 05/13/26		200		192
2.700%, 08/19/26		100		95
2.600%, 11/23/20		150		151
2.250%, 01/17/19		100		100
2.000%, 08/19/21		2,725		2,645
1.600%, 08/19/19		100		99

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

XLIT
5.750%, 10/01/21	$	74	$	82

				95,086

Health Care — 2.3%
Abbott Laboratories
4.900%, 11/30/46		608		624
3.750%, 11/30/26		100		99
3.400%, 11/30/23		50		50
2.900%, 11/30/21		1,586		1,581
2.550%, 03/15/22		150		147	��
2.350%, 11/22/19		70		70
AbbVie
4.450%, 05/14/46		464		444
3.200%, 11/06/22		400		386
2.850%, 05/14/23		50		49
2.300%, 05/14/21		50		49
1.800%, 05/14/18		3,128		3,130
Actavis Funding
3.800%, 03/15/25		190		190
3.450%, 03/15/22		2,890		2,933
3.000%, 03/12/20		55		56
2.350%, 03/12/18		80		81
Aetna
4.375%, 06/15/46		448		450
3.200%, 06/15/26		205		203
2.800%, 06/15/23		25		24
2.750%, 11/15/22		150		147
2.400%, 06/15/21		25		25
1.900%, 06/07/19		35		35
1.700%, 06/07/18		30		30
Agilent Technologies
3.050%, 09/22/26		65		62
AmerisourceBergen
3.400%, 05/15/24		100		101
Amgen
5.700%, 02/01/19		250		269
3.625%, 05/22/24		150		152
Anthem
3.300%, 01/15/23		200		200
AstraZeneca
2.375%, 11/16/20		150		150
1.950%, 09/18/19		100		100
Baxalta
3.600%, 06/23/22		100		101
Baxter International
2.600%, 08/15/26		100		92
Becton Dickinson
3.125%, 11/08/21		200		205
Biogen
3.625%, 09/15/22		100		103
Boston Scientific
3.375%, 05/15/22		100		102
2.850%, 05/15/20		100		101
Bristol-Myers Squibb
2.000%, 08/01/22		100		97


Description	Face Amount (000)		Value (000)

Cardinal Health
3.200%, 03/15/23	$	100	$	101
Celgene
3.875%, 08/15/25		100		102
2.250%, 05/15/19		100		100
2.125%, 08/15/18		100		100
Cigna
4.000%, 02/15/22		100		104
CR Bard
3.000%, 05/15/26		50		48
Danaher
3.350%, 09/15/25		30		31
1.650%, 09/15/18		120		120
Eli Lilly
1.250%, 03/01/18		100		100
Express Scripts Holding
4.750%, 11/15/21		100		107
3.900%, 02/15/22		150		156
Gilead Sciences
3.500%, 02/01/25		100		101
2.950%, 03/01/27		2,506		2,398
2.550%, 09/01/20		200		202
2.500%, 09/01/23		35		34
2.350%, 02/01/20		20		20
1.950%, 03/01/22		15		15
1.850%, 09/04/18		20		20
GlaxoSmithKline Capital
2.850%, 05/08/22		100		101
2.800%, 03/18/23		125		125
Howard Hughes Medical Institute
3.500%, 09/01/23		150		158
Humana
3.850%, 10/01/24		100		102
Johnson & Johnson
2.450%, 12/05/21		300		293
Laboratory Corp of America Holdings
2.625%, 02/01/20		100		100
McKesson
2.284%, 03/15/19		100		100
Medtronic
4.625%, 03/15/45		491		531
3.500%, 03/15/25		100		103
2.750%, 04/01/23		100		99
2.500%, 03/15/20		150		152
1.375%, 04/01/18		75		75
Merck
2.750%, 02/10/25		200		196
1.850%, 02/10/20		150		150
Millennium Health LLC
0.000%, 04/16/21 (B) (C) (G)		7		1
Mylan
3.950%, 06/15/26		200		187
3.750%, 12/15/20 (A)		100		101

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

New York and Presbyterian Hospital
4.763%, 08/01/16	$	545	$	510
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		107
Perrigo
4.000%, 11/15/23		200		198
Pfizer
5.200%, 08/12/20		100		111
4.125%, 12/15/46		1,245		1,266
3.000%, 06/15/23		100		102
1.500%, 06/15/18		100		100
Quest Diagnostics
2.500%, 03/30/20		150		150
Sanofi
1.250%, 04/10/18		125		125
Shire Acquisitions Investments Ireland DAC
3.200%, 09/23/26		60		56
2.875%, 09/23/23		1,063		1,008
2.400%, 09/23/21		100		97
1.900%, 09/23/19		100		99
St. Jude Medical
2.800%, 09/15/20		150		151
Stryker
3.500%, 03/15/26		25		25
3.375%, 11/01/25		50		50
2.000%, 03/08/19		30		30
Teva Pharmaceutical Finance
2.950%, 12/18/22		150		145
Teva Pharmaceutical Finance Netherlands III BV
2.800%, 07/21/23		65		61
2.200%, 07/21/21		250		239
1.700%, 07/19/19		20		20
1.400%, 07/20/18		50		50
Thermo Fisher Scientific
3.600%, 08/15/21		100		104
2.950%, 09/19/26		30		28
2.400%, 02/01/19		150		151
UnitedHealth Group
3.750%, 07/15/25		50		52
3.350%, 07/15/22		100		103
2.875%, 03/15/22		100		101
2.700%, 07/15/20		130		132
2.300%, 12/15/19		50		51
1.900%, 07/16/18		60		60
Zimmer Biomet Holdings
3.150%, 04/01/22		200		199
Zoetis
3.250%, 02/01/23		50		50

				24,955


Description	Face Amount (000)		Value (000)

Industrials — 1.7%
3M
1.625%, 06/15/19	$	100	$	100
ABB Finance USA
2.875%, 05/08/22		150		152
AerCap Ireland Capital
4.625%, 10/30/20		225		234
4.500%, 05/15/21		496		514
3.750%, 05/15/19		175		178
Air Lease
3.375%, 01/15/19		150		153
2.125%, 01/15/20		50		49
American Airlines Pass-Through Trust
4.950%, 01/15/23		160		170
Boeing
2.350%, 10/30/21		150		151
Burlington Northern Santa Fe
3.750%, 04/01/24		200		210
3.050%, 03/15/22		100		103
Canadian National Railway
5.550%, 03/01/19		100		108
Canadian Pacific Railway
2.900%, 02/01/25		100		98
Caterpillar
3.900%, 05/27/21		50		53
3.400%, 05/15/24		100		103
Caterpillar Financial Services
2.450%, 09/06/18		150		152
1.350%, 05/18/19		200		197
CSX
3.800%, 11/01/46		1,004		931
Deere
2.600%, 06/08/22		150		149
Dover
4.300%, 03/01/21		100		107
DP World
6.850%, 07/02/37 (A)		510		544
Eaton
2.750%, 11/02/22		200		198
Emerson Electric
2.625%, 02/15/23		100		99
FedEx
3.200%, 02/01/25		200		200
Fortive
3.150%, 06/15/26 (A)		150		148
GATX
2.500%, 07/30/19		150		150
GE Capital International Funding Unlimited Co
4.418%, 11/15/35		1,267		1,328
2.342%, 11/15/20		250		250
General Dynamics
2.250%, 11/15/22		100		99

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

General Electric
4.650%, 10/17/21	$	150	$	164
3.450%, 05/15/24		100		103
Georgian Oil and Gas JSC
6.750%, 04/26/21 (A)		200		208
Georgian Railway
7.750%, 07/11/22 (A)		900		958
Honeywell International
4.250%, 03/01/21		125		135
Illinois Tool Works
1.950%, 03/01/19		100		101
Ingersoll-Rand Global Holding
4.250%, 06/15/23		100		106
John Deere Capital
3.350%, 06/12/24		100		102
2.800%, 03/04/21		150		151
1.350%, 01/16/18		100		100
Johnson Controls International
3.625%, 07/02/24 (C)		43		44
Kazakhstan Temir Zholy Finance
6.375%, 10/06/20 (A)		730		782
Koninklijke Philips
5.750%, 03/11/18		100		105
L3 Technologies
5.200%, 10/15/19		125		134
Lockheed Martin
2.900%, 03/01/25		100		98
2.500%, 11/23/20		150		151
Masco
4.375%, 04/01/26		15		15
Mexico City Airport Trust
4.250%, 10/31/26 (A)		200		196
Norfolk Southern
3.250%, 12/01/21		100		103
2.900%, 06/15/26		35		33
Northrop Grumman
3.500%, 03/15/21		100		104
3.250%, 08/01/23		50		51
Owens Corning
4.200%, 12/01/24		100		102
PACCAR Financial
1.300%, 05/10/19		20		20
Parker-Hannifin
3.300%, 11/21/24		150		152
Pentair Finance
3.625%, 09/15/20		100		102
Pitney Bowes
4.625%, 03/15/24		100		98
Precision Castparts
2.500%, 01/15/23		150		148
Raytheon
2.500%, 12/15/22		150		149
Red de Carreteras de Occidente
9.000%, 06/10/28 (A) (MXN)		6,100		270


Description	Face Amount (000)		Value (000)

Republic Services
3.550%, 06/01/22	$	150	$	156
Roper Technologies
2.800%, 12/15/21		308		308
2.050%, 10/01/18		100		100
Ryder System
2.550%, 06/01/19		95		96
Southwest Airlines
2.750%, 11/06/19		50		50
Stanley Black & Decker
2.900%, 11/01/22		100		100
TTX
2.250%, 02/01/19 (A)		922		921
Union Pacific
3.646%, 02/15/24		100		104
3.250%, 08/15/25		100		102
United Airlines 2014-2 Class A Pass Through Trust
3.750%, 09/03/26		94		95
United Parcel Service
5.125%, 04/01/19		100		107
3.125%, 01/15/21		45		47
United Technologies
3.100%, 06/01/22		100		103
2.650%, 11/01/26		130		125
1.950%, 11/01/21		50		49
1.778%, 05/04/18 (C)		3,974		3,975
1.500%, 11/01/19		50		49
Verisk Analytics
4.000%, 06/15/25		50		51
Waste Management
3.500%, 05/15/24		100		103

				18,554

Information Technology — 1.2%
Activision Blizzard
3.400%, 09/15/26 (A)		50		47
Alibaba Group Holding
2.500%, 11/28/19		250		251
Alphabet
3.375%, 02/25/24		100		104
Apple
3.850%, 08/04/46		1,584		1,518
3.450%, 05/06/24		100		103
3.250%, 02/23/26		135		135
2.700%, 05/13/22		200		201
2.450%, 08/04/26		50		47
2.400%, 05/03/23		200		195
2.250%, 02/23/21		50		50
2.100%, 05/06/19		300		303
1.700%, 02/22/19		20		20
1.550%, 08/04/21		50		48
1.000%, 05/03/18		100		100
Applied Materials
2.625%, 10/01/20		50		50

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Arrow Electronics
3.500%, 04/01/22	$	100	$	99
Automatic Data Processing
2.250%, 09/15/20		50		50
Baidu
4.125%, 06/30/25		310		313
3.250%, 08/06/18		200		203
Cisco Systems
4.950%, 02/15/19		100		107
4.450%, 01/15/20		200		214
3.625%, 03/04/24		100		104
3.500%, 06/15/25		50		52
2.950%, 02/28/26		50		50
2.500%, 09/20/26		100		95
1.850%, 09/20/21		100		98
Corning
1.500%, 05/08/18		100		100
Diamond 1 Finance
8.350%, 07/15/46 (A)		304		374
8.100%, 07/15/36 (A)		309		368
6.020%, 06/15/26 (A)		60		65
5.450%, 06/15/23 (A)		85		90
4.420%, 06/15/21 (A)		100		103
3.480%, 06/01/19 (A)		265		271
eBay
2.875%, 08/01/21		150		150
Fidelity National Information Services
5.000%, 10/15/25		100		109
3.500%, 04/15/23		150		152
Fiserv
2.700%, 06/01/20		100		100
Harris
2.700%, 04/27/20		35		35
Hewlett Packard Enterprise
4.900%, 10/15/25		100		103
3.600%, 10/15/20		150		152
2.850%, 10/05/18		100		101
HP
4.650%, 12/09/21		100		107
Intel
3.700%, 07/29/25		25		26
3.300%, 10/01/21		100		104
2.700%, 12/15/22		250		251
2.450%, 07/29/20		60		61
International Business Machines
3.450%, 02/19/26		50		51
2.875%, 11/09/22		150		151
2.250%, 02/19/21		50		50
1.875%, 08/01/22		150		144
1.125%, 02/06/18		100		100
Juniper Networks
4.500%, 03/15/24		50		51
Keysight Technologies
3.300%, 10/30/19		100		102


Description	Face Amount (000)		Value (000)

KLA-Tencor
3.375%, 11/01/19	$	150	$	154
Lam Research
2.800%, 06/15/21		50		50
Mastercard
2.950%, 11/21/26		50		49
Microsoft
4.000%, 02/08/21		150		161
3.625%, 12/15/23		100		105
3.125%, 11/03/25		200		202
2.400%, 08/08/26		100		95
2.375%, 02/12/22		200		199
1.625%, 12/06/18		150		151
Motorola Solutions
3.500%, 09/01/21		100		101
NetApp
3.375%, 06/15/21		50		51
NVIDIA
2.200%, 09/16/21		250		244
Oracle
4.000%, 07/15/46		536		513
3.850%, 07/15/36		922		900
2.950%, 05/15/25		100		98
2.650%, 07/15/26		300		285
2.500%, 05/15/22		150		149
2.400%, 09/15/23		50		48
2.375%, 01/15/19		150		152
2.250%, 10/08/19		200		202
1.900%, 09/15/21		90		88
QUALCOMM
3.000%, 05/20/22		100		101
1.400%, 05/18/18		100		100
Seagate HDD Cayman
4.750%, 01/01/25		100		95
Telefonaktiebolaget LM Ericsson
4.125%, 05/15/22		50		50
Texas Instruments
1.000%, 05/01/18		100		100
Total System Services
4.800%, 04/01/26		100		108
Tyco Electronics Group
2.350%, 08/01/19		50		50
Visa
3.150%, 12/14/25		200		201
2.800%, 12/14/22		100		101
2.200%, 12/14/20		100		100
Xerox
4.500%, 05/15/21		150		156
Xilinx
2.125%, 03/15/19		50		50

				13,237

Materials — 0.7%
Air Products & Chemicals
3.350%, 07/31/24		100		103

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Airgas
3.650%, 07/15/24	$	100	$	104
Barrick
4.100%, 05/01/23		32		33
Barrick PD Australia Finance Pty
5.950%, 10/15/39		396		419
BHP Billiton Finance USA
6.500%, 04/01/19		125		137
Celanese US Holdings
5.875%, 06/15/21		20		22
4.625%, 11/15/22		20		21
Dow Chemical
8.550%, 05/15/19		225		258
DuPont (E.I.) De Nemours
4.625%, 01/15/20		100		107
2.800%, 02/15/23		100		98
Eastman Chemical
3.600%, 08/15/22		150		154
Ecolab
3.250%, 01/14/23		100		102
Goldcorp
3.700%, 03/15/23		50		49
International Paper
7.950%, 06/15/18		74		80
LyondellBasell Industries
5.000%, 04/15/19		200		211
4.625%, 02/26/55		871		810
Mexichem
5.875%, 09/17/44 (A)		490		437
Monsanto
2.125%, 07/15/19		100		100
Nacional del Cobre de Chile
4.875%, 11/04/44 (A)		152		149
3.875%, 11/03/21 (A)		1,274		1,300
Newmont Mining
3.500%, 03/15/22		100		102
Packaging Corp of America
3.650%, 09/15/24		100		100
Potash Corp of Saskatchewan
3.625%, 03/15/24		100		99
PPG Industries
2.300%, 11/15/19		100		100
Praxair
3.000%, 09/01/21		150		153
Rio Tinto Finance USA
3.750%, 06/15/25		200		206
Sherwin-Williams
3.450%, 08/01/25		100		99
Southern Copper
3.875%, 04/23/25		30		30
Vale Overseas
6.875%, 11/21/36		770		758
4.375%, 01/11/22		250		246


Description	Face Amount (000)		Value (000)

Vulcan Materials
7.500%, 06/15/21	$	50	$	59
Westlake Chemical
5.000%, 08/15/46 (A)		570		563
3.600%, 08/15/26 (A)		100		96
WestRock RKT
4.450%, 03/01/19		100		104

				7,409

Real Estate — 0.7%
Alexandria Real Estate Equities
2.750%, 01/15/20‡		50		50
American Tower
4.700%, 03/15/22‡		150		160
3.400%, 02/15/19‡		100		102
2.250%, 01/15/22‡		50		48
AvalonBay Communities
3.500%, 11/15/24‡		100		101
Boston Properties
3.850%, 02/01/23		100		103
3.700%, 11/15/18‡		100		103
2.750%, 10/01/26‡		2,319		2,120
Brixmor Operating Partnership
3.875%, 08/15/22‡		30		31
3.250%, 09/15/23‡		100		97
Camden Property Trust
3.500%, 09/15/24‡		100		99
CBL & Associates
5.250%, 12/01/23‡		150		148
Crown Castle International
5.250%, 01/15/23‡		100		108
3.700%, 06/15/26‡		35		34
2.250%, 09/01/21‡		55		53
DDR
3.500%, 01/15/21‡		100		102
Digital Realty Trust
3.625%, 10/01/22‡		100		101
Duke Realty
3.750%, 12/01/24‡		100		101
EPR Properties
4.750%, 12/15/26‡		50		50
ERP Operating
4.625%, 12/15/21		120		130
Essex Portfolio
3.375%, 04/15/26‡		100		97
HCP
5.375%, 02/01/21‡		200		218
Hospitality Properties Trust
5.250%, 02/15/26‡		100		101
5.000%, 08/15/22‡		100		106
Host Hotels & Resorts
3.750%, 10/15/23‡		100		98
Kimco Realty
4.250%, 04/01/45‡		350		336
3.200%, 05/01/21‡		50		51

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Liberty Property
4.125%, 06/15/22‡	$	100	$	104
National Retail Properties
4.000%, 11/15/25‡		35		36
3.600%, 12/15/26‡		100		98
Omega Healthcare Investors
4.375%, 08/01/23‡		50		50
Realty Income
3.250%, 10/15/22‡		100		101
Senior Housing Properties Trust
3.250%, 05/01/19‡		150		150
Simon Property Group
3.375%, 10/01/24‡		125		126
3.300%, 01/15/26‡		100		100
2.200%, 02/01/19‡		150		151
UDR
4.625%, 01/10/22‡		719		770
4.000%, 10/01/25‡		50		51
Ventas Realty
4.250%, 03/01/22‡		100		106
3.750%, 05/01/24‡		50		51
2.700%, 04/01/20‡		100		100
VEREIT Operating Partnership
4.875%, 06/01/26‡		20		20
4.600%, 02/06/24‡		15		15
4.125%, 06/01/21‡		10		10
3.000%, 02/06/19‡		25		25
Vornado Realty
2.500%, 06/30/19‡		100		100
Weingarten Realty Investors
3.250%, 08/15/26‡		50		47
Welltower
5.250%, 01/15/22‡		100		110
Weyerhaeuser
4.625%, 09/15/23‡		100		107
WP Carey
4.600%, 04/01/24‡		50		51

				7,327

Telecommunication Services — 1.3%
America Movil
5.000%, 03/30/20		200		214
AT&T
5.150%, 03/15/42		191		190
5.000%, 03/01/21		200		215
4.500%, 03/09/48		404		363
4.300%, 12/15/42		429		384
4.125%, 02/17/26		200		203
3.600%, 02/17/23		3,653		3,684
3.400%, 05/15/25		150		145
3.000%, 06/30/22		195		191
2.625%, 12/01/22		125		120
2.450%, 06/30/20		250		248
2.300%, 03/11/19		230		231
British Telecommunications
2.350%, 02/14/19		140		141


Description	Face Amount (000)		Value (000)

Deutsche Telekom International Finance
6.750%, 08/20/18	$	100	$	108
Digicel
6.000%, 04/15/21 (A)		280		253
Orange
4.125%, 09/14/21		100		106
RELX Capital
3.125%, 10/15/22		100		99
Rogers Communications
6.800%, 08/15/18		50		54
2.900%, 11/15/26		50		47
Telefonica Emisiones
3.192%, 04/27/18		250		254
Thomson Reuters
6.500%, 07/15/18		100		107
3.350%, 05/15/26		100		97
Verizon Communications
5.150%, 09/15/23		3,068		3,392
4.862%, 08/21/46		191		194
4.500%, 09/15/20		250		267
4.272%, 01/15/36		1,641		1,571
3.650%, 09/14/18		150		155
2.625%, 02/21/20		235		225
1.750%, 08/15/21		50		48
Vodafone Group
2.500%, 09/26/22		100		96
1.500%, 02/19/18		150		149

				13,551

Utilities — 2.9%
Abengoa Transmision
6.875%, 04/30/43 (A)		249		256
American Water Capital
3.400%, 03/01/25		100		102
Arizona Public Service
3.150%, 05/15/25		50		50
Berkshire Hathaway Energy
3.750%, 11/15/23		100		105
CenterPoint Energy Houston Electric
2.250%, 08/01/22		100		98
Cleco Corporate Holdings
3.743%, 05/01/26 (A)		100		98
CMS Energy
6.250%, 02/01/20		100		111
3.000%, 05/15/26		40		38
Comision Federal de Electricidad
4.875%, 01/15/24 (A)		215		214
4.750%, 02/23/27 (A)		200		192
Consolidated Edison Company of New York
5.850%, 04/01/18		100		105
Consolidated Edison of New York
5.700%, 12/01/36		575		686

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Delmarva Power & Light
4.150%, 05/15/45	$	798	$	818
Dominion Gas Holdings
4.600%, 12/15/44		167		166
2.800%, 11/15/20		150		152
2.500%, 12/15/19		1,300		1,314
Dominion Resources
2.962%, 07/01/19		1,226		1,241
1.900%, 06/15/18		200		200
DTE Energy
2.400%, 12/01/19		100		101
Duke Energy
5.050%, 09/15/19		200		216
3.950%, 10/15/23		150		157
2.100%, 06/15/18		50		50
Duke Energy Carolinas
2.950%, 12/01/26		50		49
Enel Generacion Chile
4.250%, 04/15/24		50		50
Entergy
5.125%, 09/15/20		100		108
4.000%, 07/15/22		50		52
Entergy Louisiana
2.400%, 10/01/26		100		93
Exelon
5.625%, 06/15/35		243		269
3.400%, 04/15/26		100		98
2.850%, 06/15/20		200		202
1.550%, 06/09/17		778		777
FirstEnergy Transmission
5.450%, 07/15/44 (A)		654		694
Fortis
3.055%, 10/04/26 (A)		1,758		1,644
2.100%, 10/04/21 (A)		877		848
ITC Holdings
5.300%, 07/01/43		657		719
3.650%, 06/15/24		25		25
Jersey Central Power & Light
4.700%, 04/01/24 (A)		1,243		1,323
Kansas City Power & Light
3.650%, 08/15/25		100		100
Listrindo Capital BV
4.950%, 09/14/26 (A)		250		244
Majapahit Holding BV
7.750%, 01/20/20 (A)		190		213
Metropolitan Edison
7.700%, 01/15/19		100		110
MidAmerican Energy
2.400%, 03/15/19		138		140
NextEra Energy Capital Holdings
2.700%, 09/15/19		1,402		1,420
2.056%, 09/01/17		1,418		1,424
NiSource Finance
6.400%, 03/15/18		105		111


Description	Face Amount (000)		Value (000)

Northern States Power
2.600%, 05/15/23	$	100	$	99
2.200%, 08/15/20		50		50
NSTAR Electric
2.700%, 06/01/26		50		48
2.375%, 10/15/22		100		98
Oncor Electric Delivery
7.000%, 09/01/22		100		122
ONE Gas
2.070%, 02/01/19		74		74
Pacific Gas & Electric
3.500%, 10/01/20		150		156
2.950%, 03/01/26		50		49
PECO Energy
3.150%, 10/15/25		100		100
Perusahaan Gas Negara Persero
5.125%, 05/16/24 (A)		450		462
PPL Capital Funding
3.500%, 12/01/22		150		153
Progress Energy
7.750%, 03/01/31		1,354		1,863
PSEG Power
3.000%, 06/15/21		50		50
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		113
Sempra Energy
9.800%, 02/15/19		2,664		3,086
3.750%, 11/15/25		100		101
3.550%, 06/15/24		100		101
Southern
4.400%, 07/01/46		676		668
2.750%, 06/15/20		100		101
2.450%, 09/01/18		200		202
2.350%, 07/01/21		936		920
1.850%, 07/01/19		100		100
Southern California Edison
3.500%, 10/01/23		150		156
Southern Gas Capital
3.250%, 06/15/26		30		29
Southwestern Electric Power
2.750%, 10/01/26		50		47
State Grid Overseas Investment
2.875%, 05/18/26 (A)		260		245
State Grid Overseas Investment 2013
3.125%, 05/22/23 (A)		515		512
Trinidad Generation UnLtd
5.250%, 11/04/27 (A)		200		194
Union Electric
3.500%, 04/15/24		150		154

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Virginia Electric & Power
4.000%, 11/15/46	$	558	$	556
3.100%, 05/15/25		100		100
WEC Energy Group
1.650%, 06/15/18		1,109		1,108
Wisconsin Public Service
1.650%, 12/04/18		30		30
Xcel Energy
3.350%, 12/01/26		100		100
2.600%, 03/15/22		777		774
1.200%, 06/01/17		1,015		1,014

				31,044

Total Corporate Obligations (Cost $287,598) (000)				285,010

MORTGAGE-BACKED SECURITIES — 15.3%
Agency Mortgage-Backed Obligations — 13.9%
FHLMC
4.500%, 08/01/40-04/01/46		3,837		4,151
4.000%, 07/01/24-10/01/46		8,586		9,062
3.500%, 01/01/41-08/01/46		9,907		10,165
3.000%, 01/15/43-01/15/43		9,000		8,937
FNMA
5.500%, 07/01/34-03/01/41		2,837		3,181
5.000%, 12/01/34-02/01/41		1,262		1,393
4.500%, 01/01/30-08/01/40		6,217		6,693
4.000%, 02/01/32-08/01/46		19,180		20,207
3.500%, 01/01/41-06/01/46		24,241		24,883
3.000%, 01/16/26-01/15/43		29,420		29,432
2.500%, 01/01/26-01/01/26		7,485		7,497
GNMA
4.000%, 01/01/40-01/01/40		7,200		7,644
3.500%, 01/15/41-01/15/41		14,845		15,436

				148,681

Non-Agency Mortgage-Backed Obligations — 1.4%
Alternative Loan Trust, Ser 2003-22CB, Cl 3A1
6.000%, 12/25/33-12/25/33		960		962
5.750%, 10/25/33-10/25/33		78		80
BAMLL Commercial Mortgage Securities Trust, Ser 2012-PARK, Cl A
2.959%, 12/10/30-12/10/30 (A)		829		834
Citigroup Commercial Mortgage Trust, Ser 2013-GC17, Cl A4
4.131%, 11/10/46-11/10/46		356		382
3.720%, 11/10/26-11/10/26		418		432
Citigroup Mortgage Loan Trust, Ser 2015-2, Cl 1A1 0.734%, 06/25/47-06/25/47 (A)(B)		469		406
COMM Mortgage Trust, Ser 2013-CCRE9, Cl A4 4.238%, 07/10/45-07/10/45 (B)		444		481
3.983%, 10/10/46-10/10/46		610		647


Description	Face Amount (000)		Value (000)

3.902%, 07/10/50-07/10/50	$	23	$	24
3.759%, 08/10/48-08/10/48		540		564
3.708%, 07/10/48-07/10/48		330		342
2.941%, 01/10/46-01/10/46		170		172
Commercial Mortgage Trust, Ser 2015-3BP, Cl A 3.178%, 02/10/35-02/10/35 (A)		13		13
Credit Suisse First Boston Mortgage Securities, Ser 2003-27, Cl 4A4
5.750%, 11/25/33-11/25/33		95		99
CSAIL Commercial Mortgage Trust, Ser 2016-C7, Cl A5
3.502%, 11/15/49-11/15/49		429		430
CSMC Trust, Ser 2014-USA, Cl A2 3.953%, 09/15/37-09/15/37 (A)		302		308
GS Mortgage Securities II, Ser 2015-GC30, Cl A4
3.382%, 05/10/50-05/10/50		59		60
GS Mortgage Securities Trust, Ser 2013-GC16, Cl A4
4.271%, 11/10/46-11/10/46		18		19
3.135%, 06/10/46-06/10/46		159		162
2.954%, 11/05/34-11/05/34 (A)		946		946
2.933%, 06/05/31-06/05/31 (A)		1,475		1,496
GSR Mortgage Loan Trust, Ser 2005-4F, Cl 6A1
6.500%, 02/25/35-02/25/35		102		103
HarborView Mortgage Loan Trust, Ser 2004-3, Cl 1A
2.944%, 05/19/34-05/19/34 (B)		58		59
JPMorgan Mortgage Trust, Ser 2005-A1, Cl 6T1
3.147%, 02/25/35-02/25/35 (B)		279		275
3.048%, 06/25/35-06/25/35 (B)		160		160
2.915%, 04/25/35-04/25/35 (B)		75		74
2.770%, 11/25/33-11/25/33 (B)		193		183
MLCC Mortgage Investors, Ser 2006-2, Cl 2A
2.689%, 05/25/36-05/25/36 (B)		353		341
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2013-C12, Cl A4
4.259%, 10/15/46-10/15/46 (B)		327		352
4.220%, 07/15/46-07/15/46 (B)		250		267
4.064%, 01/15/24-01/15/24		122		129
3.787%, 01/15/47-01/15/47		224		234
3.249%, 02/15/48-02/15/48		444		447
3.102%, 10/15/26-10/15/26		404		396
Morgan Stanley Capital I Trust, Ser 2014-CPT, Cl A
3.350%, 07/13/29-07/13/29 (A)		662		684

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


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Structured Adjustable Rate Mortgage Loan Trust, Ser 2004-6, Cl 1A
2.993%, 06/25/34-06/25/34 (B)	$	329	$	325
Wedgewood Real Estate Trust, Ser 2016-1, Cl A1 3.450%, 07/15/46-07/15/46 (A)(B)		3		3
Wells Fargo Commercial Mortgage Trust, Ser 2016-C37, Cl A5
3.794%, 11/15/26-11/15/26		407		421
3.789%, 12/15/47-12/15/47		366		381
3.640%, 12/15/59-12/15/59		398		406
3.617%, 09/15/57-09/15/57		96		99
Wells Fargo Mortgage Backed Securities Trust, Ser 2003-J, Cl 1A9
3.065%, 10/25/33-10/25/33 (B)		730		730
2.987%, 06/25/35-06/25/35 (B)		184		189

				15,117

Total Mortgage-Backed Securities (Cost $165,081) (000)				163,798

LOAN PARTICIPATIONS — 9.5%
Aerospace/Defense — 0.1%
Transdigm Inc., Extended Term Loan F, 1st Lien
3.750%, 06/09/23		498		502
Transdigm Inc., Term Loan D, 1st Lien
3.750%, 06/04/21		136		137
Transdigm Inc., Tranche D Term Loan, 1st Lien
3.750%, 06/04/21		10		10

				649

Airlines — 0.1%
American Airlines, Inc., 2015 Term Loan (New), 1st Lien
3.256%, 06/27/20		750		753

Automotive — 0.1%
Chrysler Group LLC, Term Loan B, 1st Lien
3.500%, 05/24/17		158		158
Horizon Global Corp., Term Loan B, 1st Lien
7.000%, 06/30/21		543		552
MPG Holdco I Inc., Term Loan B-1, 1st Lien
3.750%, 10/20/21		194		195
TI Group Automotive Systems LLC, Initial Term Loan, 1st Lien
4.500%, 06/30/22		622		629

				1,534


Description	Face Amount (000)		Value (000)
Broadcasting — 0.1%
Mission Broadcasting, Term Loan B
3.000%, 09/26/23	$	61	$	61
Nexstar Broadcasting, Term Loan B
3.000%, 09/26/23		680		685

				746

Building Materials — 0.4%
American Builders & Contractors Supply Company Inc., Term Loan B, 1st Lien
3.520%, 09/23/23		621		627
C.H.I. Overhead Doors, Inc., Initial Term Loan,
4.500%, 07/29/22		499		499
Headwaters Inc., Term Loan B, 1st Lien
4.000%, 03/24/22		24		24
Jeld-Wen, Inc., Replacement Term B-2 Loan, 1st Lien
4.750%, 07/01/22		1,248		1,262
PGT Inc., Initial Term Loan, 1st Lien
6.750%, 02/16/22		650		648
PGT, Inc., Initial Term Loan, 1st Lien
6.750%, 02/16/22		83		83
Priso Acquisition Corp., Initial Term Loan, 1st Lien
4.500%, 05/09/22		744		749
Quikrete Holdings, Inc., Initial Loan,
4.000%, 11/03/23		500		505
SRS Distribution Inc., Initial Term Loan, 1st Lien
5.250%, 08/25/22		237		240
SRS Distribution Inc., Tranche B-1 Loan, 1st Lien
5.250%, 08/25/22		50		51
Tecomet Inc., Initial Term Loan, 1st Lien
5.750%, 11/25/21		98		98

				4,786

Chemicals — 0.9%
Allnex (Luxembourg) & Cy SCA, Term Loan B-2, 1st Lien
5.130%, 09/13/23		427		429
Allnex (Luxembourg) & Cy SCA, Term Loan B-3, 1st Lien
5.130%, 06/02/23		321		323
ASP Chromaflo Intermediate Holdings, Inc., Initial Tranche B-1 Term Loan,
5.000%, 11/03/23		190		191
ASP Chromaflo Intermediate Holdings, Inc., Initial Tranche B-2 Term Loan,
5.000%, 11/03/23		247		248

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

100


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Berry Plastics Corp., Term Loan D, 1st Lien
3.500%, 02/08/20	$	970	$	976
Entegris Inc., Term Loan B, 1st Lien
3.500%, 04/30/21		13		13
Huntsman International LLC, 2023 Term B Loan, 1st Lien
3.963%, 04/01/23		480		484
3.783%, 04/01/23		178		180
Ineos Styrolution US Holding LLC, Initial Term Loan, 1st Lien
4.750%, 09/30/21		331		335
Ineos US Finance LLC, Initial Term Loan, 1st Lien
3.750%, 05/04/18		805		807
IPS Corp., 1st Lien
0.217%, 12/14/23		500		497
IPS Corp., 2nd Lien
0.254%, 12/14/24		250		246
Nexeo Solutions LLC, Initial Term Loan, 1st Lien
5.250%, 06/09/23		746		752
Ravago Holdings America Inc., Initial Term Loan, 1st Lien
5.000%, 07/13/23		672		678
SIG Combibloc Holdings SCA, Initial Term Loan, 1st Lien
4.000%, 03/11/22		768		773
Solenis International LP, Initial Term Loan, 1st Lien
4.250%, 07/31/21		489		489
Tricorbraun Holdings, Inc., Closing Date Term Loan, 1st Lien
4.750%, 11/30/23		545		551
Tricorbraun Holdings, Inc., Delayed Draw Term Loan,
3.750%, 11/29/17		55		55
Tronox Pigments (Netherlands) B. V., New Term Loan, 1st Lien
4.500%, 03/19/20		750		753
Univar USA Inc., Initial Term Loan, 1st Lien
4.250%, 07/01/22		718		724
US Farathane LLC, Term Loan B-2, 1st Lien
5.750%, 12/23/21		481		481

				9,985

Computers & Electronics — 1.6%
AF Borrower LLC, Initial Term Loan, 1st Lien
6.250%, 01/28/22		744		746


Description	Face Amount (000)		Value (000)
Applied Systems 1/14 Cov-Lite TL
4.000%, 01/25/21	$	748	$	755
Aricent Technologies, Initial Term Loan, 1st lien
5.500%, 04/14/21		200		193
Aricent Technologies, Initial Term Loan, 2nd Lien
9.500%, 04/14/22		550		467
Avago Technologies Cayman Holdings Ltd., Term B-3 Loan, 1st Lien
3.704%, 02/01/23		858		870
Campaign Monitor Finance Property Limited, Initial Term Loan, 1st Lien
6.250%, 03/18/21		48		46
Dell, Term Loan A1
2.610%, 12/31/18		1,000		999
Electrical Components International Inc., Initial Term Loan, 1st Lien
5.750%, 05/28/21		496		496
Epicor Software Corp., Term Loan B, 1st Lien
4.750%, 06/01/22		748		750
Global Healthcare Exchange LLC, Term Loan B, 1st Lien
5.250%, 08/15/22		99		99
Hyland Software Inc., Initial Term Loan, 1st Lien
4.750%, 07/01/22		585		588
Infor (US) Inc., Term Loan B, 1st Lien
3.750%, 06/03/20		686		686
Internet Brands 7/14 TL
4.750%, 07/08/21		500		502
ION Trading Technologies S.A.R.L., Term Loan B-1, 1st Lien
4.250%, 08/11/23		137		137
Kronos Incorporated, Initial Term Loan,
5.000%, 10/20/23		799		808
Landslide Holdings Inc., Initial Term Loan, 1st Lien
5.500%, 09/27/22		231		234
MA Financeco LLC, Term Loan B-2, 1st Lien
4.520%, 11/19/21		195		197
Magic Newco LLC, Initial Term Loan, 1st Lien
5.000%, 12/12/18		485		489
Mediware Information Systems Inc., Initial Term Loan, 1st Lien
5.750%, 09/28/23		246		247

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

101


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
MH Sub I LLC, Initial Term Loan, 1st Lien
4.750%, 07/08/21	$	122	$	123
Microsemi Corp., Term Loan B, 1st Lien
3.750%, 12/17/22		634		639
MRI Software LLC, Initial Term Loan, 1st Lien
5.250%, 06/23/21		498		493
NXP BV, Term Loan F, 1st Lien
3.405%, 12/07/20		413		415
Oberthur, Term Loan B-1, 1st Lien
0.000%, 12/14/23 (D)		242		244
Oberthur, Term Loan B-2, 1st Lien
0.000%, 12/14/23 (D)		392		396
ON Semiconductor Corporation, 2016 New Replacement Term Loan,
4.020%, 03/31/23		866		876
Onex Carestream Finance LP, Initial Term Loan, 1st Lien
5.000%, 06/07/19		433		419
Quintiles IMS Incorporated, Term B Dollar Loan, 1st Lien
3.500%, 03/17/21		547		550
Spectrum Brands, Inc., 2016 Replacement USD Term Loan,
5.250%, 06/23/22		—		—
3.618%, 06/23/22		197		199
3.497%, 06/23/22		458		464
SS&C European Hodlings, Term Loan B-2, 1st Lien
4.000%, 07/08/22		48		49
SS&C Technologies Inc., Term Loan B-1, 1st Lien
4.000%, 07/08/22		470		476
Sungard Availability Services Capital, Inc., Initial Term Loan, 1st Lien
6.000%, 03/29/19		500		483
TV Borrower US LLC, Intial Term Loan, 1st Lien
6.000%, 01/08/21		489		487
Wall Street Systems Delaware Inc., Initial Term Loan, 1st Lien
4.750%, 04/09/21		699		699
Western Digital Corp., Term Loan B, 1st Lien
4.500%, 04/29/23		398		404

				16,725


Description	Face Amount (000)		Value (000)
Consumer Nondurables — 0.1%
Coty Inc., New Term B USD Loan, 1st Lien
3.092%, 10/27/22	$	99	$	99
Galleria Co., Term Loan B, 1st Lien
3.750%, 01/26/23		175		176
NM Z Parent Inc. (aka Zep Inc.), 2016 Term Loan, 1st Lien
5.000%, 06/27/22		246		248
Prestige Brands Inc., Term Loan B-3, 1st Lien
3.500%, 09/03/21		653		657

				1,180

Educational Services — 0.0%
Education Management II LLC, Term Loan A, 1st Lien
5.500%, 07/02/20		129		30
Education Management II LLC, Term Loan B, 1st Lien
2.000%, 07/02/20		242		8

				38

Entertainment & Leisure — 0.3%
AMC Entertainment Inc., Initial Term Loan, 1st Lien
4.000%, 12/15/22		721		728
BC Equity Ventures LLC, Initial Term Loan, 1st Lien
7.500%, 08/24/22		499		501
ClubCorp Club Operations Inc. , Term Loan B, 1st Lien
4.000%, 12/15/22		868		877
Intrawest
4.500%, 12/09/20		750		759

				2,865

Financial Services — 0.3%
Altisource Solutions S.A R.L., Term Loan B, 1st Lien
4.500%, 12/09/20		435		425
Bats Global Markets Inc., Term Loan B, 1st Lien
4.106%, 06/30/23		451		453
Citco III Limited, Initial Term Loan , 1st Lien
4.250%, 06/29/18		969		971
Duff & Phelps Investment Management Co., Initial Term Loan, 1st Lien
4.750%, 03/14/20		497		501
NXT Capital, Inc. (NXT Capital, LLC), Term Loan, 1st Lien
5.500%, 11/23/22		750		757

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

102


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Walter Investment Management Corp., Initial Term Loan, 1st Lien
4.750%, 12/18/20	$	475	$	450

				3,557

Food & Beverage — 0.4%
B&G Foods Inc., Term Loan B, 1st Lien
3.750%, 11/02/22		597		605
Constellation Brands, Term Loan B
4.750%, 11/15/23		500		505
Del Monte Foods Inc., Initial Term Loan, 1st Lien
6.000%, 02/18/21		1		1
4.250%, 02/18/21		485		444
Pinnacle Foods Group LLC, Term Loan G, 1st Lien
3.387%, 04/29/20		871		878
US Foods Inc., Term Loan B, 1st Lien
3.750%, 06/27/23		1,490		1,505

				3,938

Forest Products — 0.1%
LBM Borrower, 1st Lien
6.250%, 08/20/22		131		130
LBM, 1st Lien
6.250%, 08/20/22		313		310
Prolamina, Term Loan, 1st Lien
5.000%, 11/17/23		500		505
Prolamina, Term Loan, 2nd Lien
9.500%, 11/18/24		125		125

				1,070

Gaming & Hotels — 0.1%
Amaya Holdings BV, Term Loan B, 1st Lien
5.000%, 08/01/21		252		253
Hilton Worldwide Finance LLC, Initial Term Loan, 1st Lien
3.500%, 10/26/20		47		47
Hilton Worldwide Holdings Inc., Extended Term Loan, 1st Lien
3.256%, 10/25/23		638		645
MGM Growth Properties Operating Partnership LP, Term Loan B, 1st Lien
3.520%, 04/25/23		268		271

				1,216

Gaming And Hotels — 0.1%
Four Seasons Holdings Inc., Term Loan 2013, 1st Lien
3.750%, 11/30/23		750		758


Description	Face Amount (000)		Value (000)
Health Care — 0.9%
ABB/Con-Cise Optical Group LLC, Initial Term Loan,
7.750%, 06/15/23	$	3	$	3
6.000%, 06/15/23		85		86
ABB/Con-cise Optical Group LLC, Initial Term Loan, 1st Lien
6.000%, 06/15/23		662		670
Alere Inc., Term Loan B, 1st Lien
4.250%, 06/20/22		131		131
Alliance HealthCare Services Inc., Initial Term Loan, 1st Lien
4.250%, 06/03/19		479		472
Alvogen Pharma US Inc., Initial Term Loan, 1st Lien
6.000%, 04/01/22		337		325
AMAG Pharmaceuticals Inc., Initial Term Loan, 1st Lien
4.750%, 08/17/21		483		482
Amneal Pharmaceuticals LLC, Term Loan B, 1st Lien
6.250%, 11/01/19		2		2
4.500%, 11/01/19		557		557
CHS/Community Health Systems Inc., Term Loan G, 1st Lien
3.750%, 12/31/19		837		811
Drumm Investors LLC, Initial Term Loan, 1st Lien
9.500%, 05/04/18		517		505
Endo Luxembourg Finance Company I S.à r.l., Term Loan B, 1st Lien
3.750%, 09/26/22		216		217
HCA Inc., Tranche B-6 Term Loan,
3.856%, 03/01/23		1,000		1,012
Iasis Healthcare LLC , Term Loan B-2, 1st Lien
4.500%, 05/03/18		632		626
JLL/Delta Dutch Newco BV, Initial Term Loan, 1st Lien
4.250%, 03/11/21		488		491
Kinetic Concepts Inc., Term Loan F, 1st Lien
5.000%, 11/04/20		488		488
Surgery Center Holdings, Inc., Initial Term Loan, 1st Lien
4.750%, 11/03/20		497		501
Surgical Care Affliates, 1st Lien
3.750%, 03/17/22		748		752
Valeant Pharmaceuticals International Inc., Delayed Draw Term Loan A, 1st Lien
4.500%, 04/01/20		122		120

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

103


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Valeant Pharmaceuticals International Inc., Term Loan E, 1st Lien
5.250%, 08/05/20	$	833	$	830
Zest Anchors, 1st Lien
0.000%, 08/16/20 (D)		500		501

				9,582

Home Furnishings — 0.1%
Serta Simmons Bedding, LLC, Initial Term Loan,
4.500%, 10/20/23		826		834

				834

Insurance — 0.5%
Acrisure LLC, Term Loan
0.500%, 11/02/23		116		117
Acrisure LLC, Term Loan B, 1st Lien
5.750%, 11/02/23		634		641
Alliant Holdings Intermediate LLC, Initial Term Loan, 1st Lien
4.753%, 08/12/22		197		198
Alliant Holdings Intermediate LLC, Term Loan B-2, 1st Lien
5.250%, 08/12/22		498		502
Hub International 10/13 (USD), Term Loan
4.000%, 10/02/20		598		603
National Financial Partners Corp., Initial Term Loan, 1st Lien
4.500%, 07/01/20		842		848
NFP Corp., Term Loan B, 1st Lien
4.500%, 12/09/23		821		827
Sedgwick Claims Management Services Inc., Initial Term Loan, 1st Lien
4.250%, 03/01/21		746		753
USI Inc., Term Loan B, 1st Lien
4.250%, 12/27/19		789		792

				5,281

Leasing — 0.1%
Fly Funding II S.à r.l., Loan, 1st Lien
3.640%, 08/09/19		739		744

Machinery — 0.2%
Blount International Inc., Initial Term Loan
8.750%, 04/12/23		1		1
Blount International Inc., Initial Term Loan, 1st Lien
7.250%, 04/12/23		498		502


Description	Face Amount (000)		Value (000)
CPM Holdings Inc., Term Loan B, 1st Lien
6.000%, 04/01/22	$	422	$	426
Culligan Term Loan
5.000%, 11/17/23		250		252
Douglas Dynamics LLC, Initial Term Loan, 1st Lien
5.250%, 12/31/21		448		450
Safway Group Holding LLC , Term Loan B, 1st Lien
5.750%, 08/21/23		748		758
SiteOne Landscape Supply, LLC, Tranche B Term Loan, 1st Lien
0.164%, 04/29/22		342		344

				2,733

Media — 0.5%
Charter Communications Operationg, Term Loan H, 1st Lien
3.005%, 01/15/24		199		200
0.000%, 01/14/22 (D)		746		750
CSC Holdings, LLC (fka CSC Holdings, Inc.), 2016 Extended Term Loan,
3.876%, 10/11/24		263		266

Entravision Communications
0.000%, 05/31/20 (D)		20		19
Entravision Communications Corp., Term Loan B, 1st Lien
3.500%, 05/29/20		273		272
Lions Gate, Term Loan B, 1st Lien
3.750%, 10/13/23		1,000		1,005
MCC Iowa LLC, Term Loan J, 1st Lien
3.750%, 06/18/21		73		74
Mission Broadcasting Inc., Term Loan B2, 1st Lien
3.750%, 10/01/20		456		459
Nexstar Broadcasting Inc., Term Loan B-2, 1st Lien
3.750%, 10/01/20		518		521
Raycom TV Broadcasting LLC, Term Loan B, 1st Lien
3.750%, 08/04/21		987		980
Ziggo BV, Term Loan B-1, 1st Lien
3.500%, 01/15/22		296		297
Ziggo BV, Term Loan B-2, 1st Lien
3.500%, 01/15/22		175		176

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

104


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Ziggo BV, Term Loan B-3, 1st Lien
3.701%, 01/15/22	$	54	$	55

				5,074

Metals & Mining — 0.0%
Novelis Inc., Initial Term Loan, 1st Lien
3.894%, 06/02/22		246		248

Oil & Gas — 0.1%
Drillships Ocean Ventures Inc., Initial Term Loan, 1st Lien
5.500%, 07/25/21		98		77
Energy Transfer Equity LP, Initial Term Loan, 1st Lien
3.387%, 12/02/19		275		275
Philadelphia Energy Solutions Refining and Marketing LLC, Term Loan B, 1st Lien
6.250%, 04/04/18		696		550
Seadrill Operating LP, Initial Term Loan, 1st Lien
4.000%, 02/21/21		364		248
Western Refining Inc., Term Loan B-2, 1st Lien
5.500%, 05/26/23		559		561

				1,711

Personal Services — 0.0%
William Morris Endeavor Entertainment LLC, Initial Term Loan, 1st Lien
5.250%, 05/06/21		497		502

				502

Printing & Publishing — 0.1%
DH Publishing, L.P., Term B-4 Loan, 1st Lien
3.385%, 08/22/22		994		999

Professional & Business Services — 1.0%
Albany Molecular Research Inc., Initial Term Loan, 1st Lien
6.006%, 07/16/21		497		502
Bright Horizons Family Solutions LLC (fka Bright Horizons Family Solutions, Inc.), Effective Date Incremental Term Loan,
3.500%, 11/30/23		972		980
Camelot U.S. Acquisition 1 Co., Initial Term Loan, 1st Lien
4.750%, 10/03/23		399		403
Emdeon Business Services LLC, Term Loan B-2, 1st Lien
3.750%, 11/02/18		746		747


Description	Face Amount (000)		Value (000)
Evertec, Term Loan A
3.106%, 01/20/17	$	1,157	$	1,145
ExamWorks Group Inc., Initial Term Loan, 1st Lien
4.750%, 07/27/23		348		350
Explorer Holdings Inc., Initial Term Loan, 1st Lien
6.000%, 04/12/23		254		259
Global Payments Inc., Term B Loan, 1st Lien
3.106%, 04/21/23		388		392
Hamilton Lane Advisors LLC, Term Loan B, 1st Lien
4.250%, 07/01/22		47		47
Harbourvest Partners LP, Initial Term Loan, 1st Lien
3.380%, 02/04/21		356		355
Heartland Dental Care Inc., Term Loan B-1, 1st Lien
5.500%, 12/21/18		746		746
IG Investments Holdings LLC, Term Loan B, 1st Lien
6.000%, 10/29/21		269		271
Infinity Acquisition LLC, Initial Term Loan, 1st Lien
4.250%, 08/06/21		1,159		1,115
LPL Holdings Inc., Extended Term Loan B, 1st Lien
4.250%, 03/29/21		743		749
Nielsen Finance LLC, Term Loan B-3, 1st Lien
3.154%, 10/04/23		750		758
NSAM LP, Term Loan B, 1st Lien
4.762%, 01/30/23		748		748
Sai Globa, Term Loan B, 1st Lien
0.000%, 12/06/23 (D)		500		504
West Corporation, Refinanced Term B-12 Loan,
3.270%, 06/17/23		746		747

				10,818

Real Estate — 0.2%
DTZ US Borrower LLC, Initial Term Loan, 1st Lien
4.250%, 11/04/21		806		810
iStar Inc., Initial Term Loan, 1st Lien
5.500%, 07/01/20		499		504
RE/MAX, LLC (fka RE/MAX International, LLC), Term Loan, 1st Lien
3.713%, 12/15/23		500		500

				1,814

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

105


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Retail Food & Drug — 0.1%
BJ’s Wholesale Club Inc., Replacement Loan, 1st Lien
4.500%, 09/26/19	$	726	$	732
Smart & Final Inc., Initial Term Loan, 1st Lien
4.338%, 11/15/22		384		383
Smart & Final Stores LLC, Term Loan, 1st Lien
4.250%, 11/15/22		234		234

				1,349

Retailing — 0.4%
1011778 B.C. Unlimited Liability Company, Term Loan B, 1st Lien
3.750%, 12/10/21		518		522
Brickman Group Holdings Inc., Initial Term Loan, 1st Lien
4.000%, 12/18/20		423		424
Brickman Group Ltd. LLC, The, Initial Term Loan, 1st Lien
4.000%, 12/18/20		63		63
Dollar Tree Inc., Term Loan B, 1st Lien
3.250%, 07/06/22		59		59
HD Supply, Inc., Term B-2 Loan, 1st Lien
3.630%, 10/17/23		748		753
KFC Holding Co., Term Loan B, 1st Lien
3.486%, 06/16/23		746		756
Landry’s Inc., Term Loan B, 1st Lien
4.000%, 10/04/23		277		280
Leslie’s Poolmart Inc., Term Loan B, 1st Lien
5.250%, 08/16/23		498		504
Pilot Travel Centers LLC, Term Loan B, 1st Lien
3.520%, 05/25/23		126		127
Trugreen Limited Partnership, Initial Term Loan, 1st Lien
6.500%, 04/07/23		499		505

				3,993

Steel — 0.1%
FMG Resources Property LTD, Initial Term Loan, 1st Lien
3.750%, 06/30/19		400		401
Zekelman Industries Inc., Term Loan B, 1st Lien
6.000%, 06/14/21		844		851

				1,252


Description	Face Amount (000)		Value (000)
Telecommunications — 0.4%
Ciena Corporation, 2016 Term Loan, 1st Lien
4.250%, 04/25/21	$	498	$	500
Commscope Inc., Tranche 5 Term Loan, 1st Lien
3.270%, 12/29/22		99		100
DigitalGlobe, 1st Lien
3.508%, 12/22/23		600		604
Genesys Telecommunications Laboratories, 1st Lien
6.250%, 11/17/23		686		697
LTS Buyer LLC, Initial Term Loan, 1st Lien
4.248%, 04/13/20		742		746
Mitel US Holdings Inc., Initial Term Loan, 1st Lien
5.500%, 04/29/22		247		249
SBA Senior Finance II LLC, Incremental Term Loan B, 1st Lien
3.250%, 03/24/21		734		737
Syniverse Holdings Inc., Term Loan B, 1st Lien
4.000%, 04/23/19		391		340
Telenet Financing USD LLC, Term Loan AF Facility,
3.704%, 01/31/25		500		504

				4,477


Transportation — 0.1%
Envision Healthcare Corporation (fka Emergency Medical Services Corporation), Initial Term Loan, 1st Lien
3.750%, 12/01/23		674		681

Total Loan Participations (Cost $101,555) (000)				101,892

SOVEREIGN DEBT — 9.0%
1MDB Global Investments
4.400%, 03/09/23		1,000		839
Abu Dhabi Government International Bond
3.125%, 05/03/26 (A)		640		628
Argentine Bonos del Tesoro
18.200%, 10/03/21 (ARS)		3,980		254
Argentine Republic Government International Bond
8.280%, 12/31/33		1,584		1,691
7.500%, 04/22/26 (A)		885		929
7.125%, 07/06/36 (A)		560		533
6.875%, 04/22/21 (A)		350		373
2.500%, 03/31/19 (C)		1,364		839

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

106


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Armenia International Bond
7.150%, 03/26/25 (A)	$	200	$	210
6.000%, 09/30/20 (A)		1,381		1,423
Azerbaijan Government International Bond
4.750%, 03/18/24 (A)		1,620		1,608
Banco Nacional de Desenvolvimento Economico e Social
6.500%, 06/10/19 (A)		560		595
Banque Centrale de Tunisie
5.750%, 01/30/25 (A)		1,230		1,144
Brazil Notas do Tesouro Nacional
10.000%, 01/01/21 (BRL)		930		275
Brazil Notas do Tesouro Nacional Serie F
10.000%, 01/01/23 (BRL)		1,670		482
Brazilian Government International Bond
5.625%, 01/07/41		150		133
5.000%, 01/27/45		590		479
4.875%, 01/22/21		190		196
4.250%, 01/07/25		1,105		1,033
2.625%, 01/05/23		1,025		912
Buenos Aires Argentina
7.500%, 06/01/27 (A)		310		316
Canada Government International Bond
1.625%, 02/27/19		100		100
1.125%, 03/19/18		150		150
Chile Government International Bond
3.125%, 01/21/26		107		105
Colombia Government International Bond
7.375%, 03/18/19		795		956
6.125%, 01/18/41		600		648
4.500%, 01/28/26		340		350
4.375%, 07/12/21		200		209
4.000%, 02/26/24		770		778
Costa Rica Government International Bond
7.158%, 03/12/45 (A)		780		723
7.000%, 04/04/44 (A)		780		713
Croatia Government International Bond
6.750%, 11/05/19		1,105		1,199
6.375%, 03/24/21 (A)		660		717
6.000%, 01/26/24 (A)		200		217
Dominican Republic International Bond
7.500%, 05/06/21 (A)		1,030		1,118
7.450%, 04/30/44 (A)		915		921
6.875%, 01/29/26 (A)		480		499
6.850%, 01/27/45 (A)		250		236
6.600%, 01/28/24 (A)		290		302
5.500%, 01/27/25 (A)		150		145


Description	Face Amount (000)		Value (000)
Ecuador Government International Bond
10.750%, 03/28/22 (A)	$	590	$	640
7.950%, 06/20/24 (A)		860		822
El Salvador Government International Bond
7.650%, 06/15/35 (A)		885		821
7.375%, 12/01/19 (A)		215		222
6.375%, 01/18/27 (A)		150		138
5.875%, 01/30/25 (A)		365		334
Export Development Canada
1.000%, 06/15/18		300		298
Export-Import Bank of Korea
4.000%, 01/14/24		200		209
2.875%, 01/21/25		200		193
Georgia Government International Bond
6.875%, 04/12/21 (A)		860		936
Ghana Government International Bond
10.750%, 10/14/30 (A)		420		496
9.250%, 09/15/22 (A)		490		523
8.125%, 01/18/26 (A)		325		320
7.875%, 08/07/23 (A)		730		718
Guatemala Government International Bond
5.750%, 06/06/22 (A)		420		451
4.500%, 05/03/26 (A)		640		615
Hashemite Kingdom of Jordan Government AID Bond
2.503%, 10/30/20		200		205
Honduras Government International Bond
8.750%, 12/16/20 (A)		1,415		1,575
7.500%, 03/15/24 (A)		405		433
Hungary Government International Bond
6.375%, 03/29/21		1,850		2,071
6.250%, 01/29/20		600		656
5.750%, 11/22/23		680		754
5.375%, 03/25/24		1,140		1,243
Indonesia Government International Bond
8.500%, 10/12/35 (A)		1,120		1,519
5.875%, 01/15/24 (A)		1,320		1,456
5.375%, 10/17/23 (A)		200		217
5.250%, 01/17/42 (A)		480		481
4.125%, 01/15/25 (A)		650		644
3.700%, 01/08/22 (A)		210		211
Israel Government International Bond
3.150%, 06/30/23		200		203
Ivory Coast Government International Bond
6.375%, 03/03/28 (A)		435		424
5.750%, 12/31/32 (A)		605		559
5.375%, 07/23/24 (A)		450		433

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

107


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Jamaica Government International Bond
8.000%, 03/15/39	$	150	$	166
7.625%, 07/09/25		470		537
6.750%, 04/28/28		690		755
Japan Bank for International Cooperation
2.375%, 04/20/26		200		192
1.750%, 11/13/18		400		396
Jordan Government International Bond
5.750%, 01/31/27 (A)		370		351
KazAgro National Management Holding
4.625%, 05/24/23 (A)		300		281
Kazakhstan Government International Bond
6.500%, 07/21/45 (A)		340		389
3.875%, 10/14/24 (A)		670		672
Kenya Government International Bond
6.875%, 06/24/24 (A)		270		254
5.875%, 06/24/19 (A)		1,358		1,388
Korea Development Bank
2.500%, 03/11/20		400		398
Korea International Bond
7.125%, 04/16/19		100		112
Kreditanstalt fuer Wiederaufbau
2.000%, 11/30/21		350		347
Lebanon Government International Bond
6.750%, 11/29/27		215		207
6.650%, 11/03/28		535		513
6.600%, 11/27/26		265		255
6.375%, 03/09/20		215		215
6.200%, 02/26/25		390		369
6.100%, 10/04/22		355		344
6.000%, 01/27/23		355		341
5.450%, 11/28/19		370		360
5.150%, 11/12/18		215		213
Mexico Government International Bond
6.050%, 01/11/40		160		173
5.550%, 01/21/45		283		289
4.350%, 01/15/47		1,078		925
4.125%, 01/21/26		400		397
4.000%, 10/02/23		500		501
3.500%, 01/21/21		250		254
Morocco Government International Bond
4.250%, 12/11/22 (A)		200		204
Nigeria Government International Bond
6.750%, 01/28/21 (A)		510		514
Panama Government International Bond
9.375%, 04/01/29		290		409


Description	Face Amount (000)		Value (000)
6.700%, 01/26/36	$	1,085	$	1,317
5.200%, 01/30/20		100		107
3.875%, 03/17/28		690		674
3.750%, 03/16/25		530		526
Paraguay Government International Bond
6.100%, 08/11/44 (A)		570		579
5.000%, 04/15/26 (A)		200		203
Peruvian Government International Bond
7.350%, 07/21/25		190		244
6.550%, 03/14/37		615		772
5.625%, 11/18/50		520		589
Philippine Government International Bond
7.750%, 01/14/31		419		589
6.375%, 10/23/34		810		1,053
5.500%, 03/30/26		200		236
4.200%, 01/21/24		200		215
3.700%, 03/01/41		210		201
Poland Government International Bond
6.375%, 07/15/19		200		222
4.000%, 01/22/24		125		128
3.000%, 03/17/23		150		147
Province of British Columbia Canada
2.000%, 10/23/22		100		98
Province of Manitoba Canada
2.050%, 11/30/20		150		150
1.125%, 06/01/18		100		100
Province of Ontario Canada
2.450%, 06/29/22		200		200
2.000%, 01/30/19		250		252
1.875%, 05/21/20		150		149
1.625%, 01/18/19		100		100
1.250%, 06/17/19		150		148
Province of Quebec Canada
2.875%, 10/16/24		100		101
2.625%, 02/13/23		200		200
2.500%, 04/20/26		100		96
Provincia de Cordoba
7.125%, 06/10/21 (A)		410		421
Qatar Government International Bond
4.625%, 06/02/46 (A)		174		174
2.375%, 06/02/21 (A)		1,248		1,221
Romanian Government International Bond
6.750%, 02/07/22 (A)		570		649
6.125%, 01/22/44 (A)		800		934
4.875%, 01/22/24 (A)		820		867
4.375%, 08/22/23 (A)		490		504
Russian Foreign Bond-Eurobond
5.625%, 04/04/42 (A)		400		430
4.875%, 09/16/23 (A)		200		211

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

108


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
Saudi Government International Bond
4.500%, 10/26/46 (A)	$	321	$	308
2.375%, 10/26/21 (A)		1,200		1,165
Senegal Government International Bond
8.750%, 05/13/21 (A)		825		921
6.250%, 07/30/24 (A)		740		737
Serbia Government International Bond
7.250%, 09/28/21 (A)		875		976
5.875%, 12/03/18 (A)		590		617
South Africa Government International Bond
5.875%, 09/16/25		200		213
5.500%, 03/09/20		150		159
4.875%, 04/14/26		240		239
4.300%, 10/12/28		1,310		1,215
Sri Lanka Government International Bond
6.850%, 11/03/25 (A)		245		240
6.825%, 07/18/26 (A)		430		423
6.250%, 10/04/20 (A)		730		744
6.000%, 01/14/19 (A)		310		319
5.875%, 07/25/22 (A)		1,255		1,233
5.125%, 04/11/19 (A)		310		313
Turkey Government International Bond
8.000%, 02/14/34		386		441
7.375%, 02/05/25		440		482
6.875%, 03/17/36		480		494
5.625%, 03/30/21		750		769
4.875%, 04/16/43		240		193
4.250%, 04/14/26		740		658
Ukraine Government AID Bonds
1.471%, 09/29/21		200		195
Ukraine Government International Bond
7.750%, 09/01/19 (A)		3,775		3,676
0.000%, 05/31/40 (A) (B)		314		94
Ukreximbank Via Biz Finance
9.625%, 04/27/22 (A)		815		797
Uruguay Government International Bond
5.100%, 06/18/50		976		878
4.500%, 08/14/24		344		359
4.375%, 10/27/27		1,310		1,313
Venezuela Government International Bond
9.250%, 09/15/27		180		91
7.750%, 10/13/19		515		286
7.650%, 04/21/25		752		342
7.000%, 12/01/18		492		267
6.000%, 12/09/20		780		376
Vietnam Government International Bond
6.750%, 01/29/20 (A)		200		217
4.800%, 11/19/24 (A)		225		221


Description	Face Amount (000)		Value (000)
Zambia Government International Bond
8.970%, 07/30/27 (A)	$	200	$	197
8.500%, 04/14/24 (A)		905		883

				96,377

Total Sovereign Debt (Cost $96,925) (000)				96,377

ASSET-BACKED SECURITIES — 5.9%
Automotive — 4.2%
Americredit Automobile Receivables Trust, Ser 2016-4, Cl C
2.410%, 07/08/22-07/08/22		854		845
AmeriCredit Automobile Receivables Trust, Ser 2016-3, Cl D
2.710%, 09/08/22-09/08/22		382		377
2.240%, 04/08/22-04/08/22		1,062		1,036
1.285%, 06/10/19-06/10/19 (B)		1,149		1,152
1.279%, 04/08/19-04/08/19 (B)		809		810
Capital Auto Receivables Asset Trust, Ser 2016-3, Cl A2A
1.360%, 04/22/19-04/22/19		906		905
CarFinance Capital Auto Trust, Ser 2015-1A, Cl A
1.750%, 06/15/21-06/15/21 (A)		610		611
CarMax Auto Owner Trust, Ser 2016-4, Cl A3
1.400%, 08/15/21-08/15/21		1,451		1,435
Chrysler Capital Auto Receivables Trust, Ser 2016-BA, Cl A3
1.640%, 07/15/21-07/15/21 (A)		1,694		1,681
CPS Auto Receivables Trust, Ser 2016-B, Cl A
2.070%, 11/15/19-11/15/19 (A)		961		962
1.770%, 06/17/19-06/17/19 (A)		647		648
1.650%, 11/15/19-11/15/19 (A)		59		59
1.620%, 01/15/20-01/15/20 (A)		2,019		2,004
1.530%, 07/15/19-07/15/19 (A)		16		16
1.490%, 04/15/19-04/15/19 (A)		56		56
1.210%, 08/15/18-08/15/18 (A)		15		15
CPS Auto Trust, Ser 2016-D, Cl A
1.500%, 06/15/20-06/15/20 (A)		1,847		1,843
Drive Auto Receivables Trust, Ser 2016-BA, Cl A2
1.380%, 03/15/17-03/15/17 (A)		929		929
DT Auto Owner Trust, Ser 2016-3A, Cl A
1.750%, 11/15/19-11/15/19 (A)		949		949
1.660%, 03/15/19-03/15/19 (A)		296		296
1.440%, 11/15/19-11/15/19 (A)		1,894		1,891
Exeter Automobile Receivables Trust, Ser 2016-1A, Cl A
2.800%, 07/15/20-07/15/20 (A)		279		279
1.840%, 11/16/20-11/16/20 (A)		2,025		2,019

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

109


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
1.600%, 06/17/19-06/17/19 (A)	$	6	$	6
1.540%, 11/15/19-11/15/19 (A)		9		9
1.320%, 01/15/19-01/15/19 (A)		39		39
First Investors Auto Owner Trust, Ser 2016-2A, Cl A1
1.536%, 11/16/20-11/16/20 (A)		1,116		1,114
1.440%, 10/15/19-10/15/19 (A)		15		15
Flagship Credit Auto Trust, Ser 2015-3, Cl A
2.380%, 10/15/20-10/15/20 (A)		336		337
2.280%, 05/15/20-05/15/20 (A)		391		392
1.630%, 06/15/20-06/15/20 (A)		7		7
1.600%, 12/15/19-12/15/19 (A)		1,629		1,627
1.470%, 03/16/20-03/16/20 (A)		1,147		1,146
1.430%, 12/16/19-12/16/19 (A)		32		32
1.210%, 04/15/19-04/15/19 (A)		46		46
Ford Credit Auto Owner Trust, Ser 2016-2, Cl A
2.030%, 12/15/27-12/15/27 (A)		959		944
1.400%, 02/15/22-02/15/22		1,467		1,442
1.220%, 03/15/21-03/15/21		2,094		2,078
Ford Credit Floorplan Master Owner Trust A, Ser 2016-5, Cl A1
1.950%, 11/15/21-11/15/21		769		769
Honda Auto Receivables Owner Trust, Ser 2016-4, Cl A4
1.650%, 01/18/23-01/18/23		1,286		1,265
1.470%, 12/18/20-12/18/20		1,825		1,811
1.330%, 11/18/22-11/18/22		1,992		1,966
Prestige Auto Receivables Trust, Ser 2016-2A, Cl C
2.880%, 11/15/22-11/15/22 (A)		223		220
Santander Drive Auto Receivables Trust, Ser 2016-3, Cl C
2.460%, 03/15/22-03/15/22		1,090		1,085
1.830%, 01/15/20-01/15/20		1,003		1,004
1.820%, 05/15/19-05/15/19		65		65
1.200%, 12/17/18-12/17/18		95		95
1.144%, 12/17/18-12/17/18 (B)		92		92
Toyota Auto Receivables Owner Trust, Ser 2016-D, Cl A3
1.230%, 10/15/20-10/15/20		4,354		4,326
United Auto Credit Securitization Trust, Ser 2016-2, Cl A
1.670%, 12/10/17-12/10/17 (A)		1,695		1,693

				44,443

Credit Card — 1.1%
Capital One Multi-Asset Execution Trust, Ser 2016-A6, Cl A
1.820%, 09/15/22-09/15/22		2,579		2,571
1.154%, 02/15/22-02/15/22 (B)		2,306		2,314
Chase Issuance Trust, Ser 2016-A3, Cl A3
1.254%, 06/15/23-06/15/23 (B)		2,387		2,393


Description	Face Amount (000)		Value (000)
Discover Card Execution Note Trust, Ser 2016-A4, Cl A4
1.390%, 03/15/22-03/15/22	$	2,704	$	2,672
World Financial Network Credit Card Master Trust, Ser 2016-B, Cl A
1.440%, 06/15/22-06/15/22		2,349		2,339

				12,289

Other Asset-Backed Securities — 0.6%
Ajax Mortgage Loan Trust, Ser 2016-C, Cl A
4.000%, 10/25/57-10/25/57 (A)		794		796
Bayview Opportunity Master Fund IIa Trust, Ser 2016-RPL3, Cl A1
3.475%, 07/28/31-07/28/31 (A)		229		227
Bayview Opportunity Master Fund IIIa Trust, Ser 2016-RN3, Cl A1
3.598%, 09/28/31-09/28/31 (A)		440		439
Bayview Opportunity Master Fund Trust, Ser 2016-LT1, Cl A1
3.475%, 10/28/31-10/28/31 (A)		137		136
NYMT Residential, Ser 2016-RP1A, Cl A
4.000%, 03/25/21-03/25/21 (A)		246		245
US Residential Opportunity Fund III Trust, Ser 2016-1III, Cl A
3.475%, 07/27/36-07/27/36 (A)		281		280
VOLT XLV, Ser 2016-NPL5, Cl A1
4.000%, 05/25/46-05/25/46 (A)		600		601
VOLT XLVIII, Ser 2016-NPL8, Cl A1
3.500%, 07/25/46-07/25/46 (A)		548		546
VOLT XXII, Ser 2015-NPL4, Cl A1
3.500%, 02/25/55-02/25/55 (A)		124		124
VOLT XXVI, Ser 2014-NPL6, Cl A1
3.125%, 09/25/43-09/25/43 (A)		1,056		1,055
VOLT XXVII, Ser 2014-NPL7, Cl A1
3.375%, 08/27/57-08/27/57 (A)		279		279
VOLT XXX, Ser 2015-NPL1, Cl A1
3.625%, 10/25/57-10/25/57 (A)		505		505
VOLT XXXI, Ser 2015-NPL2, Cl A1
3.375%, 02/25/55-02/25/55 (A)		491		492
VOLT XXXIV, Ser 2015-NPL7, Cl A1
3.250%, 02/25/55-02/25/55 (A)		213		212
VOLT XXXV, Ser 2016-NPL9, Cl A1
3.500%, 09/25/46-09/25/46 (A)		559		558

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

110


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)
VOLT XXXVI, Ser 2015-NP10, Cl A1
3.625%, 07/25/45-07/25/45 (A)	$	75	$	75
VOLT XXXVIII, Ser 2015-NP12, Cl A1
3.875%, 09/25/45-09/25/45 (A)		140		140

				6,710

Total Asset-Backed Securities (Cost $63,724) (000)				63,442

U.S. GOVERNMENT AGENCY OBLIGATIONS — 1.6%
FFCB
1.420%, 06/29/20-06/29/20		100		98
1.370%, 10/13/20-10/13/20		100		97
1.150%, 02/22/19-02/22/19		200		199
1.100%, 03/14/18-06/01/18		350		350
0.750%, 04/18/18-04/18/18		100		99
FHLB
4.125%, 03/13/20-03/13/20		750		808
1.875%, 11/29/21-11/29/21		150		149
1.625%, 06/14/19-06/14/19		400		402
1.375%, 11/15/19-02/18/21		325		321
1.250%, 01/16/19-01/16/19		250		250
1.150%, 06/22/18-06/22/18		200		199
1.125%, 06/21/19-06/21/19		300		298
1.000%, 09/26/19-09/26/19		250		247
0.875%, 10/01/18-08/05/19		250		248
0.625%, 08/07/18-08/07/18		200		198
FHLMC
6.250%, 07/15/32-07/15/32		705		970
2.375%, 01/13/22-01/13/22		2,243		2,280
1.330%, 12/30/20-12/30/20		400		386
1.250%, 08/01/19-10/02/19		700		697
1.125%, 04/15/19-04/15/19		300		299
1.050%, 05/17/18-05/17/18		250		249
1.000%, 05/11/18-05/11/18		150		149
0.750%, 01/12/18-04/09/18		850		847
FNMA
2.625%, 09/06/24-09/06/24		1,260		1,272
2.125%, 04/24/26-04/24/26		200		189
1.875%, 02/19/19-12/28/20		631		638
1.750%, 06/20/19-06/20/19		300		303
1.500%, 06/22/20-11/30/20		427		423
1.400%, 06/13/19-06/13/19		250		249
1.375%, 01/28/19-10/07/21		450		444
1.125%, 07/20/18-07/20/18		250		250
1.000%, 02/26/19-08/28/19		750		744
0.875%, 02/08/18-05/21/18		1,000		998
Tennessee Valley Authority
4.250%, 09/15/65-09/15/65		843		868
3.500%, 12/15/42-12/15/42		782		764

Total U.S. Government Agency Obligations (Cost $16,790) (000)				16,982


Description	Face Amount (000)		Value (000)
MUNICIPAL BONDS — 0.5%
Alabama Economic Settlement Authority
3.163%, 09/15/25	$	603	$	606
California State
7.350%, 11/01/39		211		299
7.300%, 10/01/39		835		1,179
California State, Department of Water Resources, Power Supply Revenue
2.000%, 05/01/22		100		97
Commonwealth Financing Authority
4.144%, 06/01/38		320		308
Florida State, Hurricane Catastrophe Fund RB
2.995%, 07/01/20		150		154
Illinois State GO
5.665%, 03/01/18		200		207
New Jersey State, Transportation Trust Fund RB
5.754%, 12/15/28		1,250		1,303
South Carolina State, Public Service Authority
2.388%, 12/01/23		100		97
University of California RB
4.767%, 05/15/15		569		541

				4,791

Total Municipal Bonds (Cost $4,864) (000)				4,791

PREFERRED STOCK — 0.0%
Education Management* (E) (G)		1,550,903		7

Total Preferred Stock (Cost $188) (000)				7

SHORT-TERM INVESTMENT — 9.9%
State Street Institutional Treasury Money Market Fund, Cl Institutional, 0.406% (F)		106,195,271		106,196

Total Short-Term Investment (Cost $106,196) (000)				106,196

Total Investments — 109.9% (Cost $1,185,233) (000)			$	1,175,622

Percentages are based on net assets of $1,069,341 (000).

A list of the open futures contracts held by the Fund at December 31, 2016, is as follow s (000):

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

111


THE KP FUNDS		December 31, 2016


KP Fixed Income Fund

For the year ended December 31, 2016, the monthly average value of futures contracts held was $(1,265) (000).

A list of the open forward foreign currency contracts held by the Fund at December 31, 2016 is as follows (000):

Counterparty

Maturity
Date

Currency
to Deliver

Currency
to Receive

Unrealized
Appreciation/
(Depreciation)

Barclays Capital

2/14/17

KRW

662,000

USD

563

Barclays Capital

2/23/17

CNH

9,044

USD

1,350

Barclays Capital

3/16/17

INR

26,570

USD

391

Barclays Capital

2/17/17

USD

379

BRL

1,248

)

BNP Paribas

1/24/17

EUR

262

USD

275

)

BNP Paribas

2/24/16

USD

370

ARS

5,890

(10

)

Citi

2/7/17

ARS

5,890

USD

350

(10

)

Citi

2/14/17

KRW

623,000

USD

533

Credit Suisse

2/21/17

MXN

8,160

USD

397

HSBC

1/24/17

JPY

57,200

USD

519

HSBC

2/15/17

MYR

2,257

USD

516

State Street

2/17/17

BRL

2,499

USD

706

(52

)

State Street

2/19/16

USD

357

BRL

1,251

UBS Securities

2/19/16

GBP

888

USD

1,088

)

For the year ended December 31, 2016, the average monthly notional amount of forward foreign currency contracts purchased and sold were $6,234 and $(1,984), respectively.

‡	Real Estate Investment Trust

*	Non-income producing security.

(1)

In U.S. Dollars unless otherwise indicated.

(A)

(B)

Variable rate security-Rate disclosed is the rate in effect on December 31, 2016.

(C)

Step Bonds-The rate reflected on the Schedule of Investments is the effective yield on December 31, 2016. The coupon on a step bond changes on a specified date.

(D)

Unsettled bank loan. Interest rate not available.

(E)

Interest rate not available.

(F)

The rate reported is the 7-day effective yield as of December 31, 2016.

(G)

ARS — Argentina Peso

BRL — Brazilian Real

Cl — Class

CNH — Chinese Yuan

EUR — Euro

FFCB — Federal Farm Credit Bank

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GBP — British Pound

GHS — Ghana Cedi

GNMA — Government National Mortgage Association

GO — General Obligation

IDR — Indonesian Rupiah

INR — Indian Rupee

JPY — Japanese Yen

KRW — Korean Won

LKR — Sri Lanka Rupee

LLC — Limited Liability Company

L.P. — Limited Partnership

Ltd. — Limited

MXN — Mexican Peso

MYR — Malaysia Ringgit

RB — Revenue Bond

Ser — Series

USD — U.S. Dollar

The following is a list of the level of inputs used as of December 31, 2016, in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1		Level 2			Level 3^		Total
U.S. Treasury Obligations	$	—	$	337,127		$	—	$	337,127
Corporate Obligations		—		285,009			1		285,010
Mortgage-Backed Securities		—		163,798			—		163,798
Loan Participations		—		101,892			—		101,892
Sovereign Debt		—		96,377			—		96,377
Asset-Backed Securities		—		63,442			—		63,442
U.S. Government Agency Obligations		—		16,982			—		16,982
Preferred Stock		—		—			7		7
Municipal Bonds		—		4,791			—		4,791
Short-Term Investment		106,196		—			—		106,196

Total Investments in Securities	$	106,196	$	1,069,418		$	8	$	1,175,622


Other Financial Instruments	Level 1		Level 2			Level 3^		Total
Futures Contracts*
Unrealized Appreciation	$	64	$	—		$	—	$	64
Forward Currency Contracts*
Unrealized Appreciation		—		181			—		181
Unrealized Depreciation		—		(82	)		—		(82	)

Total Other Financial Instruments	$	64	$	99		$	—	$	163

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

For the year ended December 31, 2016, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended December 31, 2016, securities with the total market value of $38 (000) were transferred between Level 3 and Level 2. Changes in the classification between Level 2 and Level 3 are due to the availability of observable inputs to determine 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.

112


THE KP FUNDS		December 31, 2016

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	$	275,051	$	503,018	$	613,106	$	627,844
Unaffiliated Investments at Cost		181,992		256,728		213,652		129,042

Affiliated Investments at Fair Value	$	279,535	$	514,685	$	628,785	$	645,016
Unaffiliated Investments at Fair Value		182,801		257,483		214,014		128,936
Receivable for Investment Securities Sold		173		203		117		70
Dividends Receivable		99		129		95		39
Prepaid Expenses		18		27		29		27

Total Assets		462,626		772,527		843,040		774,088

Liabilities:
Payable for Capital Shares Redeemed		171		200		114		67
Cash Overdraft		100		130		99		44
Payable due to Administrator		10		17		18		17
Payable due to Adviser		7		10		8		5
Chief Compliance Officer Fees Payable		1		2		2		2
Other Accrued Expenses		34		57		66		61

Total Liabilities		323		416		307		196

Net Assets	$	462,303	$	772,111	$	842,733	$	773,892

NET ASSETS:
Paid-in Capital	$	456,197	$	757,653	$	823,584	$	753,399
Distributions in Excess of Net Investment Income		—		—		—		—
Accumulated Net Realized Gain on Investments		813		2,036		3,108		3,427
Net Unrealized Appreciation on Investments		5,293		12,422		16,041		17,066

Net Assets	$	462,303	$	772,111	$	842,733	$	773,892

Institutional Class Shares:
Net Assets	$	462,303	$	772,111	$	842,733	$	773,892
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		46,404,739		76,433,567		82,988,826		76,219,432
Net Asset Value, Offering and Redemption Price Per Share*	$	9.96	$	10.10	$	10.15	$	10.15

†

Shares are presented unrounded.

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

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

113


THE KP FUNDS		December 31, 2016

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	$	737,541	$	691,018	$	493,750
Unaffiliated Investments at Cost		86,227		50,419		27,896

Affiliated Investments at Fair Value	$	759,925	$	712,459	$	507,984
Unaffiliated Investments at Fair Value		86,041		50,369		27,893
Receivable for Investment Securities Sold		289		98		149
Dividends Receivable		15		2		—
Prepaid Expenses		29		26		18

Total Assets		846,299		762,954		536,044

Liabilities:
Payable for Capital Shares Redeemed		286		96		147
Cash Overdraft		19		5		2
Payable due to Administrator		18		16		12
Payable due to Adviser		3		2		1
Chief Compliance Officer Fees Payable		2		2		1
Other Accrued Expenses		69		62		45

Total Liabilities		397		183		208

Net Assets	$	845,902	$	762,771	$	535,836

NET ASSETS:
Paid-in Capital	$	819,512	$	737,240	$	518,832
Undistributed/(Distributions in Excess of) Net Investment Income		—		—		39
Accumulated Net Realized Gain on Investments		4,192		4,140		2,734
Net Unrealized Appreciation on Investments		22,198		21,391		14,231

Net Assets	$	845,902	$	762,771	$	535,836

Institutional Class Shares:
Net Assets	$	845,902	$	762,771	$	535,836
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		83,013,728		74,681,656		52,507,360
Net Asset Value, Offering and Redemption Price Per Share*	$	10.19	$	10.21	$	10.20

†

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.

114


THE KP FUNDS		December 31, 2016

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	$	239,279	$	51,094	$	8,346
Unaffiliated Investments at Cost		12,736		2,734		455

Affiliated Investments at Fair Value	$	244,716	$	52,079	$	8,642
Unaffiliated Investments at Fair Value		12,894		2,745		456
Receivable for Capital Shares Sold		4		—		—
Receivable for Investment Securities Sold		—		18		—
Prepaid Expenses		8		2		—

Total Assets		257,622		54,844		9,098

Liabilities:
Payable due to Administrator		5		1		—
Payable for Investment Securities Purchased		3		—		—
Cash Overdraft		1		—		—
Chief Compliance Officer Fees Payable		1		—		—
Payable for Capital Shares Redeemed		—		18		—
Other Accrued Expenses		24		6		1

Total Liabilities		34		25		1

Net Assets	$	257,588	$	54,819	$	9,097

NET ASSETS:
Paid-in Capital	$	250,734	$	53,814	$	9,112
Distributions in Excess of Net Investment Income		—		—		—
Accumulated Net Realized Gain/(Loss) on Investments		1,259		9		(312	)
Net Unrealized Appreciation on Investments		5,595		996		297

Net Assets	$	257,588	$	54,819	$	9,097

Institutional Class Shares:
Net Assets	$	257,588	$	54,819	$	9,097
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		25,143,261		5,364,437		885,465
Net Asset Value, Offering and Redemption Price Per Share*	$	10.24	$	10.22	$	10.27

†

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.

115


THE KP FUNDS		December 31, 2016

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	$	1,308,888		$	844,278		$	1,251,748		$	1,185,233
Cost of Foreign Currency		—			—			9,859			6

Investments at Fair Value	$	1,479,814		$	934,216		$	1,223,564		$	1,175,622
Cash		23			929			—			1,887
Foreign Currency at Value		—			—			9,877			6
Dividends and Interest Receivable		1,697			651			1,693			6,672
Receivable for Investment Securities Sold		888			1,875			18			14,204
Cash Collateral for Futures Contracts		539			715			1,961			104
Reclaims Receivable		171			6			1,700			22
Receivable for Capital Shares Sold		1			62			1			—
Unrealized Appreciation on Forward Foreign Currency Contracts		—			—			—			181
Prepaid Expenses		5			4			5			2

Total Assets		1,483,138			938,458			1,238,819			1,198,700

Liabilities:
Payable for Investment Securities Purchased		5,669			7,015			4,866			128,514
Payable for Capital Shares Redeemed		299			112			239			372
Payable due to Sub-Advisers		288			335			336			175
Payable due to Adviser		59			37			48			42
Payable due to Administrator		47			30			38			33
Chief Compliance Officer Fees Payable		2			1			2			1
Unrealized Depreciation on Forward Foreign Currency Contracts		—			—			—			82
Accrued Foreign Capital Gains Tax		—			—			242			—
Other Accrued Expenses		146			113			318			140

Total Liabilities		6,510			7,643			6,089			129,359

Net Assets	$	1,476,628		$	930,815		$	1,232,730		$	1,069,341

NET ASSETS:
Paid-in Capital	$	1,305,003		$	840,212		$	1,307,578		$	1,083,370
Undistributed/(Distributions in Excess of) Net Investment Income		449			767			(1,055	)		216
Accumulated Net Realized Gain/(Loss) on Investments		367			95			(45,103	)		(4,798	)
Net Unrealized Appreciation/(Depreciation) on Investments		170,926			89,938			(28,184	)		(9,611	)
Net Unrealized Appreciation/(Depreciation) on Futures Contracts		(107	)		(197	)		(129	)		64
Net Unrealized Appreciation/(Depreciation) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		(10	)		—			(135	)		100
Accumulated Foreign Capital Gains Tax on Appreciated Securities		—			—			(242	)		—

Net Assets	$	1,476,628		$	930,815		$	1,232,730		$	1,069,341

Institutional Class Shares:
Net Assets	$	1,476,628		$	930,815		$	1,232,730		$	1,069,341
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		131,937,234			82,954,600			138,037,569			108,484,572
Net Asset Value, Offering and Redemption Price Per Share*	$	11.19		$	11.22		$	8.93		$	9.86

†

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.

116


THE KP FUNDS		For the year ended December 31, 2016

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	$	5,397		$	9,539		$	11,101		$	10,945
Income Distributions from Unaffiliated Registered Investment Companies		3,119			4,388			3,952			2,836

Total Investment Income		8,516			13,927			15,053			13,781

Expenses:
Administration Fees		123			190			198			178
Investment Advisory Fees		94			118			93			53
Trustees’ Fees		13			20			21			19
Chief Compliance Officer Fees		6			9			9			8
Custodian Fees/Transfer Agent Fees		48			75			80			72
Professional Fees		36			55			57			51
Printing Fees		34			54			56			51
Registration Fees		27			43			49			45
Other Fees		9			14			14			12

Total Expenses		390			578			577			489

Net Investment Income		8,126			13,349			14,476			13,292

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Affiliated Investments		3,132			3,610			3,573			3,021
Net Realized Loss on Unaffiliated Investments		(1,603	)		(2,096	)		(2,132	)		(1,861	)
Distributions of Realized Gains from Affiliated Registered Investment Company Shares		3,487			5,893			6,640			6,285
Distributions of Realized Gains from Unaffiliated Registered Investment Company Shares		520			859			933			849
Net Change in Unrealized Appreciation on Affiliated Investments		6,014			14,746			21,384			25,283
Net Change in Unrealized Appreciation on Unaffiliated Investments		5,292			6,779			6,179			4,966

Net Realized and Unrealized Gain on Investments		16,842			29,791			36,577			38,543

Net Increase in Net Assets Resulting from Operations	$	24,968		$	43,140		$	51,053		$	51,835

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

117


THE KP FUNDS		For the year ended December 31, 2016

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	$	12,539		$	11,530		$	8,164
Income Distributions from Unaffiliated Registered Investment Companies		2,261			1,448			917

Total Investment Income		14,800			12,978			9,081

Expenses:
Administration Fees		193			172			118
Investment Advisory Fees		35			21			12
Trustees’ Fees		20			18			12
Chief Compliance Officer Fees		9			8			6
Custodian Fees/Transfer Agent Fees		79			70			49
Professional Fees		55			48			33
Printing Fees		55			49			34
Registration Fees		50			46			33
Other Fees		14			12			9

Total Expenses		510			444			306

Net Investment Income		14,290			12,534			8,775

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Affiliated Investments		3,050			2,577			1,628
Net Realized Loss on Unaffiliated Investments		(1,724	)		(1,151	)		(799	)
Distributions of Realized Gains from Affiliated Registered Investment Company Shares		7,248			6,759			4,822
Distributions of Realized Gains from Unaffiliated Registered Investment Company Shares		775			532			304
Net Change in Unrealized Appreciation on Affiliated Investments		32,496			32,018			23,080
Net Change in Unrealized Appreciation on Unaffiliated Investments		4,154			2,765			1,635

Net Realized and Unrealized Gain on Investments		45,999			43,500			30,670

Net Increase in Net Assets Resulting from Operations	$	60,289		$	56,034		$	39,445

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

118


THE KP FUNDS		For the year ended December 31, 2016

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	$	3,913			$	833		$	139
Income Distributions from Unaffiliated Registered Investment Companies		377				78			13

Total Investment Income		4,290				911			152

Expenses:
Administration Fees		53				10			2
Investment Advisory Fees		5				1			—
Trustees’ Fees		5				1			—
Chief Compliance Officer Fees		3				1			—
Custodian Fees/Transfer Agent Fees		22		��		4			1
Registration Fees		18				4			1
Printing Fees		16				3			—
Professional Fees		15				3			—
Other Fees		4				1			—

Total Expenses		141				28			4

Net Investment Income		4,149				883			148

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain/(Loss) on Affiliated Investments		789				(152	)		(198	)
Net Realized Gain/(Loss) on Unaffiliated Investments		(453	)			(57	)		1
Distributions of Realized Gains from Affiliated Registered Investment Company Shares		2,301				475			80
Distributions of Realized Gains from Unaffiliated Registered Investment Company Shares		141				30			5
Net Change in Unrealized Appreciation on Affiliated Investments		10,843				2,417			584
Net Change in Unrealized Appreciation on Unaffiliated Investments		855				114			13

Net Realized and Unrealized Gain on Investments		14,476				2,827			485

Net Increase in Net Assets Resulting from Operations	$	18,625			$	3,710		$	633

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

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

119


THE KP FUNDS		For the year ended December 31, 2016

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	$	26,641		$	11,377		$	32,945		$	363
Interest Income		105			—			—			26,632
Less: Foreign Taxes Withheld		(48	)		(5	)		(2,838	)		5

Total Investment Income		26,698			11,372			30,107			27,000

Expenses:
Sub-Advisory Fees		3,100			3,386			3,752			1,951
Investment Advisory Fees		656			402			544			492
Administration Fees		501			307			416			376
Trustees’ Fees		16			10			13			12
Chief Compliance Officer Fees		7			4			6			5
Custodian Fees/Transfer Agent Fees		196			91			370			93
Professional Fees		58			34			48			53
Registration Fees		21			20			18			9
Printing Fees		20			34			17			16
Other Fees		15			34			233			220

Total Expenses		4,590			4,322			5,417			3,227

Net Investment Income		22,108			7,050			24,690			23,773

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain/(Loss) on Investments		29,276			8,625			(24,591	)		8,970
Net Realized Gain/(Loss) on Futures Contracts		1,545			2,493			(652	)		—
Net Realized Loss on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		(5	)		—			(753	)		(94	)
Net Change in Unrealized Appreciation on Investments		84,716			131,000			38,262			5,518
Net Change in Unrealized Appreciation/(Depreciation) on Futures Contracts		(145	)		(190	)		(177	)		64
Net Change in Unrealized Appreciation/(Depreciation) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		(2	)		—			(29	)		75

Net Realized and Unrealized Gain on Investments, Futures Contracts, Forward Contracts, Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		115,385			141,928			12,060			14,533

Net Increase in Net Assets Resulting from Operations	$	137,493		$	148,978		$	36,750		$	38,306

Amounts designated as “—” are $0 or have been rounded to $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 2015 Fund						KP Retirement Path 2020 Fund
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2016			Year ended December 31, 2015
Operations:
Net Investment Income	$	8,126		$	7,423		$	13,349		$	11,056
Net Realized Gain on Affiliated and Unaffiliated Investments		1,529			3,020			1,514			1,377
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		4,007			4,653			6,752			7,888
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		11,306			(14,165	)		21,525			(21,838	)

Net Increase/(Decrease) in Net Assets Resulting from Operations		24,968			931			43,140			(1,517	)

Distributions to Shareholders:
Investment Income		(9,953	)		(9,480	)		(16,115	)		(14,348	)
Net Realized Gains		(4,267	)		(6,305	)		(6,369	)		(5,418	)

Total Distributions to Shareholders		(14,220	)		(15,785	)		(22,484	)		(19,766	)

Capital Share Transactions:
Institutional Shares:
Issued		38,233			44,355			88,216			88,183
Reinvestment of Distributions		14,219			15,784			22,484			19,766
Redeemed		(84,189	)		(84,059	)		(66,991	)		(58,071	)

Increase/(Decrease) in Net Assets from Capital Share Transactions		(31,737	)		(23,920	)		43,709			49,878

Total Increase/(Decrease) in Net Assets		(20,989	)		(38,774	)		64,365			28,595

Net Assets:
Beginning of Year or Period		483,292			522,066			707,746			679,151

End of Year or Period	$	462,303		$	483,292		$	772,111		$	707,746

Distributions in Excess of Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		3,836			4,357			8,792			8,601
Reinvestment of Distributions		1,418			1,602			2,214			1,997
Redeemed		(8,375	)		(8,251	)		(6,639	)		(5,688	)

Net Increase/(Decrease) in Shares Outstanding from Share Transactions		(3,121	)		(2,292	)		4,367			4,910

Amounts designated as “—” are $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 2025 Fund						KP Retirement Path 2030 Fund
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2016			Year ended December 31, 2015
Operations:
Net Investment Income	$	14,476		$	11,534		$	13,292		$	10,669
Net Realized Gain on Affiliated and Unaffiliated Investments		1,441			1,057			1,160			1,693
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		7,573			9,366			7,134			9,454
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		27,563			(25,838	)		30,249			(27,138	)

Net Increase/(Decrease) in Net Assets Resulting from Operations		51,053			(3,881	)		51,835			(5,322	)

Distributions to Shareholders:
Investment Income		(17,023	)		(15,214	)		(15,171	)		(14,233	)
Net Realized Gains		(8,060	)		(3,797	)		(8,679	)		(3,526	)

Total Distributions to Shareholders		(25,083	)		(19,011	)		(23,850	)		(17,759	)

Capital Share Transactions:
Institutional Shares:
Issued		116,073			112,478			115,617			104,506
Reinvestment of Distributions		25,082			19,011			23,850			17,759
Redeemed		(43,150	)		(39,842	)		(32,733	)		(40,424	)

Increase in Net Assets from Capital Share Transactions		98,005			91,647			106,734			81,841

Total Increase in Net Assets		123,975			68,755			134,719			58,760

Net Assets:
Beginning of Year or Period		718,758			650,003			639,173			580,413

End of Year or Period	$	842,733		$	718,758		$	773,892		$	639,173

Distributions in Excess of Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		11,583			10,958			11,636			10,178
Reinvestment of Distributions		2,458			1,923			2,339			1,805
Redeemed		(4,301	)		(3,911	)		(3,278	)		(3,973	)

Net Increase in Shares Outstanding from Share Transactions		9,740			8,970			10,697			8,010

Amounts designated as “—” are $0.

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

122


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2035 Fund						KP Retirement Path 2040 Fund
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2016			Year ended December 31, 2015
Operations:
Net Investment Income	$	14,290		$	11,522		$	12,534		$	9,975
Net Realized Gain on Affiliated and Unaffiliated Investments		1,326			2,079			1,426			1,957
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		8,023			11,369			7,291			10,691
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		36,650			(31,395	)		34,783			(28,540	)

Net Increase/(Decrease) in Net Assets Resulting from Operations		60,289			(6,425	)		56,034			(5,917	)

Distributions to Shareholders:
Investment Income		(15,935	)		(15,663	)		(13,659	)		(13,742	)
Net Realized Gains		(10,502	)		(3,735	)		(10,209	)		(3,217	)

Total Distributions to Shareholders		(26,437	)		(19,398	)		(23,868	)		(16,959	)

Capital Share Transactions:
Institutional Shares:
Issued		131,864			120,532			130,554			115,819
Reinvestment of Distributions		26,437			19,398			23,868			16,959
Redeemed		(38,161	)		(42,797	)		(35,450	)		(41,543	)

Increase in Net Assets from Capital Share Transactions		120,140			97,133			118,972			91,235

Total Increase in Net Assets		153,992			71,310			151,138			68,359

Net Assets:
Beginning of Year or Period		691,910			620,600			611,633			543,274

End of Year or Period	$	845,902		$	691,910		$	762,771		$	611,633

Distributions in Excess of Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		13,338			11,721			13,235			11,245
Reinvestment of Distributions		2,587			1,971			2,333			1,722
Redeemed		(3,872	)		(4,194	)		(3,590	)		(4,068	)

Net Increase in Shares Outstanding from Share Transactions		12,053			9,498			11,978			8,899

Amounts designated as “—” are $0.

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

123


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2045 Fund						KP Retirement Path 2050 Fund
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2016			Year ended December 31, 2015
Operations:
Net Investment Income	$	8,775		$	6,756		$	4,149		$	2,757
Net Realized Gain on Affiliated and Unaffiliated Investments		829			1,679			336			481
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		5,126			7,437			2,442			3,056
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		24,715			(19,985	)		11,698			(8,471	)

Net Increase/(Decrease) in Net Assets Resulting from Operations		39,445			(4,113	)		18,625			(2,177	)

Distributions to Shareholders:
Investment Income		(9,281	)		(9,217	)		(4,419	)		(3,794	)
Net Realized Gains		(7,428	)		(2,563	)		(3,080	)		(858	)

Total Distributions to Shareholders		(16,709	)		(11,780	)		(7,499	)		(4,652	)

Capital Share Transactions:
Institutional Shares:
Issued		112,696			97,671			81,707			62,948
Reinvestment of Distributions		16,708			11,780			7,499			4,652
Redeemed		(29,789	)		(34,826	)		(15,001	)		(12,902	)

Increase in Net Assets from Capital Share Transactions		99,615			74,625			74,205			54,698

Total Increase in Net Assets		122,351			58,732			85,331			47,869

Net Assets:
Beginning of Year or Period		413,485			354,753			172,257			124,388

End of Year or Period	$	535,836		$	413,485		$	257,588		$	172,257

Undistributed/(Distributions in Excess of) Net Investment Income	$	39		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		11,444			9,501			8,265			6,121
Reinvestment of Distributions		1,636			1,196			731			471
Redeemed		(3,026	)		(3,405	)		(1,511	)		(1,260	)

Net Increase in Shares Outstanding from Share Transactions		10,054			7,292			7,485			5,332

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

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2055 Fund						KP Retirement Path 2060 Fund
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2016			Year ended December 31, 2015
Operations:
Net Investment Income	$	883		$	431		$	148		$	90
Net Realized Gain/(Loss) on Affiliated and Unaffiliated Investments		(209	)		148			(197	)		(71	)
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		505			470			85			101
Net Change in Unrealized Appreciation/(Depreciation) on Affiliated and Unaffiliated Investments		2,531			(1,473	)		597			(251	)

Net Increase/(Decrease) in Net Assets Resulting from Operations		3,710			(424	)		633			(131	)

Distributions to Shareholders:
Investment Income		(940	)		(585	)		(157	)		(124	)
Net Realized Gains		(476	)		(236	)		(99	)		(34	)

Total Distributions to Shareholders		(1,416	)		(821	)		(256	)		(158	)

Capital Share Transactions:
Institutional Shares:
Issued		28,855			18,896			6,088			7,797
Reinvestment of Distributions		1,416			821			256			158
Redeemed		(4,834	)		(4,042	)		(3,372	)		(4,370	)

Increase in Net Assets from Capital Share Transactions		25,437			15,675			2,972			3,585

Total Increase in Net Assets		27,731			14,430			3,349			3,296

Net Assets:
Beginning of Year or Period		27,088			12,658			5,748			2,452

End of Year or Period	$	54,819		$	27,088		$	9,097		$	5,748

Distributions in Excess of Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		2,927			1,844			614			758
Reinvestment of Distributions		138			84			25			16
Redeemed		(494	)		(392	)		(342	)		(428	)

Net Increase in Shares Outstanding from Share Transactions		2,571			1,536			297			346

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

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Large Cap Equity Fund						KP Small Cap Equity Fund
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2016			Year ended December 31, 2015
Operations:
Net Investment Income	$	22,108		$	16,873		$	7,050		$	5,024
Net Realized Gain on Investments and Futures Contracts		30,821			45,451			11,118			14,222
Net Realized Loss on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		(5	)		(17	)		—			—
Net Change in Unrealized Appreciation/(Depreciation) on Investments and Futures Contracts		84,571			(25,022	)		130,810			(73,228	)
Net Change in Unrealized Depreciation on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		(2	)		(2	)		—			—

Net Increase/(Decrease) in Net Assets Resulting from Operations		137,493			37,283			148,978			(53,982	)

Distributions to Shareholders:
Investment Income		(22,148	)		(16,965	)		(7,022	)		(5,273	)
Net Realized Gains		(33,245	)		(47,635	)		—			(17,173	)
Return of Capital		—			—			—			(66	)

Total Distributions to Shareholders		(55,393	)		(64,600	)		(7,022	)		(22,512	)

Capital Share Transactions:
Institutional Shares:
Issued		255,927			160,689			130,410			475,373
Reinvestment of Distributions		55,394			64,600			7,022			22,512
Redeemed		(156,489	)		(101,156	)		(129,425	)		(88,779	)

Increase in Net Assets from Capital Share Transactions		154,832			124,133			8,007			409,106

Total Increase in Net Assets		236,932			96,816			149,963			332,612

Net Assets:
Beginning of Year or Period		1,239,696			1,142,880			780,852			448,240

End of Year or Period	$	1,476,628		$	1,239,696		$	930,815		$	780,852

Undistributed/(Distributions in Excess of) Net Investment Income	$	449		$	—		$	767		$	(1	)

Share Transactions:
Institutional Shares:
Issued		23,953			14,766			13,210			44,433
Reinvestment of Distributions		4,879			6,040			624			2,336
Redeemed		(14,288	)		(9,072	)		(12,661	)		(8,431	)

Net Increase in Shares Outstanding from Share Transactions		14,544			11,734			1,173			38,338

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

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

126


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP International Equity Fund						KP Fixed Income Fund
	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2016			Year ended December 31, 2015
Operations:
Net Investment Income	$	24,690		$	21,598		$	23,773		$	18,769
Net Realized Gain/(Loss) on Investments and Futures Contracts		(25,243	)		(12,664	)		8,970			1,858
Net Realized Gain/(Loss) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		(753	)		(291	)		(94	)		182
Net Change in Unrealized Appreciation/(Depreciation) on Investments and Futures Contracts		38,085			(37,923	)		5,582			(16,719	)
Net Change in Unrealized Appreciation/(Depreciation) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		(29	)		9			75			(29	)
Change in Accrued Foreign Capital Gains Tax on Appreciated Securities		—			(39	)		—			—

Net Increase/(Decrease) in Net Assets Resulting from Operations		36,750			(29,310	)		38,306			4,061

Distributions to Shareholders:
Investment Income		(23,849	)		(22,352	)		(23,968	)		(19,468	)
Net Realized Gains		—			—			(10,691	)		(4,913	)
Return of Capital		—			(658	)		—			(4	)

Total Distributions to Shareholders		(23,849	)		(23,010	)		(34,659	)		(24,385	)

Capital Share Transactions:
Institutional Shares:
Issued		247,397			220,291			253,012			180,722
Reinvestment of Distributions		23,848			23,010			34,659			24,385
Redeemed		(78,329	)		(104,173	)		(142,299	)		(90,369	)

Increase in Net Assets from Capital Share Transactions		192,916			139,128			145,372			114,738

Total Increase in Net Assets		205,817			86,808			149,019			94,414

Net Assets:
Beginning of Year or Period		1,026,913			940,105			920,322			825,908

End of Year or Period	$	1,232,730		$	1,026,913		$	1,069,341		$	920,322

Undistributed/(Distributions in Excess of) Net Investment Income	$	(1,055	)	$	(1,724	)	$	216		$	3

Share Transactions:
Institutional Shares:
Issued		28,040			23,353			24,893			17,893
Reinvestment of Distributions		2,696			2,562			3,509			2,484
Redeemed		(8,871	)		(10,862	)		(13,957	)		(8,964	)

Net Increase in Shares Outstanding from Share Transactions		21,865			15,053			14,445			11,413

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

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

127


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			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**
2016	$	9.76	$	0.17	$	0.34		$	0.51		$	(0.22	)	$	(0.09	)	$	(0.31	)	$	9.96		5.24	%	$	462,303		0.08	%		1.69	%		15	%
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**
2016	$	9.82	$	0.18	$	0.40		$	0.58		$	(0.21	)	$	(0.09	)	$	(0.30	)	$	10.10		5.92	%	$	772,111		0.08	%		1.79	%		13	%
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**
2016	$	9.81	$	0.19	$	0.46		$	0.65		$	(0.21	)	$	(0.10	)	$	(0.31	)	$	10.15		6.64	%	$	842,733		0.07	%		1.87	%		10	%
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**
2016	$	9.76	$	0.19	$	0.52		$	0.71		$	(0.20	)	$	(0.12	)	$	(0.32	)	$	10.15		7.32	%	$	773,892		0.07	%		1.91	%		9	%
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**
2016	$	9.75	$	0.19	$	0.58		$	0.77		$	(0.20	)	$	(0.13	)	$	(0.33	)	$	10.19		7.91	%	$	845,902		0.07	%		1.89	%		9	%
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**
2016	$	9.75	$	0.18	$	0.61		$	0.79		$	(0.19	)	$	(0.14	)	$	(0.33	)	$	10.21		8.14	%	$	762,771		0.07	%		1.86	%		8	%
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**
2016	$	9.74	$	0.19	$	0.60		$	0.79		$	(0.18	)	$	(0.15	)	$	(0.33	)	$	10.20		8.15	%	$	535,836		0.07	%		1.89	%		9	%
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**
2016	$	9.75	$	0.20	$	0.60		$	0.80		$	(0.18	)	$	(0.13	)	$	(0.31	)	$	10.24		8.25	%	$	257,588		0.07	%		1.98	%		10	%
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**
2016	$	9.70	$	0.22	$	0.58		$	0.80		$	(0.18	)	$	(0.10	)	$	(0.28	)	$	10.22		8.28	%	$	54,819		0.07	%		2.26	%		16	%
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**
2016	$	9.78	$	0.21	$	0.59		$	0.80		$	(0.18	)	$	(0.13	)	$	(0.31	)	$	10.27		8.18	%	$	9,097		0.07	%		2.10	%		51	%
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	%

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

128


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 Large Cap Equity Fund - Institutional Shares**
2016	$	10.56	$	0.18	$	0.88		$	1.06		$	(0.17	)	$	(0.26	)	$	—		$	(0.43	)	$	11.19		10.04	%	$	1,476,628		0.34	%		1.65	%		50	%
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**
2016	$	9.55	$	0.08	$	1.68		$	1.76		$	(0.09	)	$	—		$	—		$	(0.09	)	$	11.22		18.38	%	$	930,815		0.53	%		0.86	%		91	%
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**
2016	$	8.84	$	0.20	$	0.07		$	0.27		$	(0.18	)	$	—		$	—		$	(0.18	)	$	8.93		3.03	%	$	1,232,730		0.49	%		2.22	%		23	%
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**
2016	$	9.79	$	0.24	$	0.16		$	0.40		$	(0.23	)	$	(0.10	)	$	—		$	(0.33	)	$	9.86		4.08	%	$	1,069,341		0.32	%		2.37	%		484	%
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.

††	Ratio does not include the expenses of the underlying funds, as applicable.

‡	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.

(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.

129


THE KP FUNDS		December 31, 2016

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

130


THE KP FUNDS		December 31, 2016

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, 2016, KP Large 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).

131


THE KP FUNDS		December 31, 2016

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, 2016, 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 shareholders. 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 3 open tax year ends, 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 gains of $242 (000), please refer to the Statement of Assets and Liabilities.

As of and during the year ended December 31, 2016, 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, 2016 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, 2016, KP Fixed Income Fund held forward foreign currency contracts.

132


THE KP FUNDS		December 31, 2016

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, 2016, 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, 2016, 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, 2016, there were no securities pledged as collateral for financial derivative instruments as governed by ISDA master agreements.

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THE KP FUNDS		December 31, 2016

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, 2016 (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		$	91		$	91		$	(1	)		$	(1	)		$	90			$	—		$	90
BNP Paribas			—			—			(11	)			(11	)			(11	)			—			(11	)
Citi			17			17			(10	)			(10	)			7				—			7
Credit Suisse			7			7			—				—				7				—			7
HSBC			43			43			—				—				43				—			43
State Street			23			23			(52	)			(52	)			(29	)			—			(29	)
UBS Securities			—			—			(8	)			(8	)			(8	)			—			(8	)

Total over the counter		$	181		$	181		$	(82	)		$	(82	)

†	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

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THE KP FUNDS		December 31, 2016

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 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, 2016, the Funds were charged as follows for these services (000):


Fund	Administration Fee		Fund	Administration Fee
KP Retirement Path 2015 Fund	$	123	KP Retirement Path 2050 Fund	$	54
KP Retirement Path 2020 Fund	$	190	KP Retirement Path 2055 Fund	$	10
KP Retirement Path 2025 Fund	$	198	KP Retirement Path 2060 Fund	$	2
KP Retirement Path 2030 Fund	$	178	KP Large Cap Equity Fund	$	501
KP Retirement Path 2035 Fund	$	193	KP Small Cap Equity Fund	$	307
KP Retirement Path 2040 Fund	$	172	KP International Equity Fund	$	416
KP Retirement Path 2045 Fund	$	118	KP Fixed Income Fund	$	376

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 Officer (“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.

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THE KP FUNDS		December 31, 2016

4. Investment Advisory Agreements:

The Trust will pay to the Adviser as compensation for the Adviser’s services rendered, a fee (the “Advisory Fee”), determined in accordance with the calculation methodology set forth below. The Advisory Fee will be computed and accrued daily on an estimated basis by the Administrator and paid monthly in arrears based on a final determination by the Administrator.

Effective November 30, 2016, the Advisory Fee payable by each Fund for any particular period will equal its pro rata portion of the total fee calculated by applying the Effective Fee Rate (defined below) to the Fund Asset Base (defined below), with each Fund’s pro rata portion determined by dividing the net assets of such Fund that are included in the Fund Asset Base by the total Fund Asset Base. The “Effective Fee Rate” will be determined by applying the following fee schedule to the Fund Asset Base:

0.05% on the first $4,000,000,000 of the Fund Asset Base;

0.04% on the Fund Asset Base between $4,000,000,001 and $7,000,000,000;

0.03% on the Fund Asset Base between $7,000,000,001 and $10,000,000,000; and

0.025% on the Fund Asset Base over $10,000,000,000.

The “Fund Asset Base” equals the Asset Class Funds’ Asset Base (defined below) plus the Target Date Funds’ Asset Base (defined below). The “Asset Class Funds’ Asset Base” equals the sum of the net assets of each Asset Class Fund. The “Target Date Funds’ Asset Base” equals the sum of the net assets of each Target Date Fund invested in investment companies to which the Adviser does not serve as investment adviser. The Fund Asset Base will be estimated daily and determined monthly based on the preceding methodology, in all cases based on the net assets as of the close of business on the preceding day in the case of the daily estimate and based on the average daily net assets average daily net assets in the month for the monthly calculation.

The Effective Fee Rate determined at the beginning of a month shall be used throughout the month for purposes of the daily estimate, and shall be recalculated for the month to make the final determination. In the event that the estimated daily fee for a Fund differs from the final determination by an amount sufficient to require an adjustment to the Net Asset Value of the Fund for any day, such difference shall be treated as a pricing error under the Trust’s policy.

Prior to November 30, 2016, the Advisory Fee was calculated daily and paid monthly at the rates listed below:


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.

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THE KP FUNDS		December 31, 2016

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, 2016, the Adviser has entered into investment sub-advisory agreements with the following parties:


Investment Sub-Adviser
KP Large Cap Equity Fund		KP International Equity Fund
AQR Capital Management, LLC		Acadian Asset Management LLC
MFS Investment Management		Marathon Asset Management LLP
PanAgora Asset Management, Inc.		MFS Investment Management
SSgA Funds Management, Inc.		SSgA Funds Management, Inc.
T.Rowe Price

KP Small Cap Equity Fund		KP Fixed Income Fund
Aristotle Capital Boston, LLC		Credit Suisse Asset Management
CastleArk Management, LLC		Loomis, Sayles & Company, LP
Columbus Circle Investors		Payden & Rygel
DePrince Race & Zollo, Inc.		SSgA Funds Management, Inc.
PENN Capital Management Company, Inc.
SSgA Funds Management, Inc.
Walthausen & Co., LLC

5. Investment Transactions:

For the year ended December 31, 2016, 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	$	70,252	$	104,357
KP Retirement Path 2020 Fund		139,907		99,070
KP Retirement Path 2025 Fund		175,746		81,336
KP Retirement Path 2030 Fund		167,325		64,561
KP Retirement Path 2035 Fund		181,456		65,973
KP Retirement Path 2040 Fund		171,478		56,951
KP Retirement Path 2045 Fund		139,719		43,162
KP Retirement Path 2050 Fund		95,131		21,942
KP Retirement Path 2055 Fund		31,857		6,469
KP Retirement Path 2060 Fund		6,556		3,612
KP Large Cap Equity Fund		774,096		662,105
KP Small Cap Equity Fund		715,324		716,630
KP International Equity Fund		441,289		249,213
KP Fixed Income Fund		813,857		773,284

In addition, KP Fixed Income Fund had purchases and sales of long-term U.S. Government securities of $3,681 (000) and $3,598 (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.

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THE KP FUNDS		December 31, 2016

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 distribution reclass and foreign exchange gain/(loss), have been reclassified to/from the following accounts during the year ended December 31, 2016 (000):


	Paid-in Capital			Undistributed Net Investment Income/(Loss)			Accumulated Net Realized Gain/(Loss)
KP Retirement Path 2015 Fund	$	—		$	1,827		$	(1,827	)
KP Retirement Path 2020 Fund		—			2,766			(2,766	)
KP Retirement Path 2025 Fund		—			2,547			(2,547	)
KP Retirement Path 2030 Fund		—			1,879			(1,879	)
KP Retirement Path 2035 Fund		—			1,645			(1,645	)
KP Retirement Path 2040 Fund		—			1,125			(1,125	)
KP Retirement Path 2045 Fund		—			545			(545	)
KP Retirement Path 2050 Fund		—			270			(270	)
KP Retirement Path 2055 Fund		—			57			(57	)
KP Retirement Path 2060 Fund		—			9			(9	)
KP Large Cap Equity Fund		—			489			(489	)
KP Small Cap Equity Fund		(390	)		740			(350	)
KP International Equity Fund		—			(172	)		172
KP Fixed Income Fund		—			408			(408	)

These reclassifications have no impact on net assets or net asset value per share of the Funds.

The tax character of dividends and distributions declared during the year or period ended December 31, 2016 and December 31, 2015 were as follows (000):


	Year		Ordinary Income		Long-Term Capital Gain		Return of Capital		Total
KP Retirement Path 2015 Fund		2016	$	10,031	$	4,189	$	—	$	14,220
		2015		11,020		4,765		—		15,785
KP Retirement Path 2020 Fund		2016		16,016		6,468		—		22,484
		2015		15,668		4,098		—		19,766
KP Retirement Path 2025 Fund		2016		16,914		8,169		—		25,083
		2015		15,988		3,023		—		19,011
KP Retirement Path 2030 Fund		2016		15,070		8,780		—		23,850
		2015		14,973		2,786		—		17,759
KP Retirement Path 2035 Fund		2016		15,839		10,598		—		26,437
		2015		16,303		3,095		—		19,398
KP Retirement Path 2040 Fund		2016		13,607		10,261		—		23,868
		2015		14,264		2,695		—		16,959
KP Retirement Path 2045 Fund		2016		9,281		7,428		—		16,709
		2015		9,604		2,176		—		11,780
KP Retirement Path 2050 Fund		2016		4,402		3,097		—		7,499
		2015		3,870		782		—		4,652
KP Retirement Path 2055 Fund		2016		946		470		—		1,416
		2015		615		206		—		821
KP Retirement Path 2060 Fund		2016		162		94		—		256
		2015		157		1		—		158
KP Large Cap Equity Fund		2016		22,452		32,941		—		55,393
		2015		30,483		34,117		—		64,600
KP Small Cap Equity Fund		2016		7,022		—		—		7,022
		2015		12,927		9,519		66		22,512
KP International Equity Fund		2016		23,849		—		—		23,849
		2015		22,352		—		658		23,010
KP Fixed Income Fund		2016		34,544		115		—		34,659
		2015		24,223		158		4		24,385

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THE KP FUNDS		December 31, 2016

As of December 31, 2016, 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	$	—	$	2,805	$	—		$	—		$	3,301		$	6,106
KP Retirement Path 2020 Fund		—		4,849		—			—			9,609			14,458
KP Retirement Path 2025 Fund		—		5,847		—			—			13,302			19,149
KP Retirement Path 2030 Fund		—		5,905		—			—			14,588			20,493
KP Retirement Path 2035 Fund		—		7,011		—			—			19,379			26,390
KP Retirement Path 2040 Fund		—		6,565		—			—			18,966			25,531
KP Retirement Path 2045 Fund		39		4,873		—			—			12,092			17,004
KP Retirement Path 2050 Fund		—		2,361		—			—			4,493			6,854
KP Retirement Path 2055 Fund		13		445		—			—			547			1,005
KP Retirement Path 2060 Fund		—		71		—			—			(86	)		(15	)
KP Large Cap Equity Fund		3,152		14,015		—			—			154,458			171,625
KP Small Cap Equity Fund		1,474		4,652		—			—			84,477			90,603
KP International Equity Fund		720		—		(21,564	)		(2,370	)		(51,634	)		(74,848	)
KP Fixed Income Fund		319		—		—			(3,132	)		(11,216	)		(14,029	)

Post-October losses represent losses realized on investment transactions from November 1, 2016 through December 31, 2016, 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 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		Long-Term		Total Capital Loss Carryforwards
KP International Equity Fund	$	5,657	$	15,907	$	21,564

The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments for Federal income tax purposes at December 31, 2016, were as follows (000):


	Federal Tax Cost		Aggregated Gross Unrealized Appreciation		Aggregated Gross Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
KP Retirement Path 2015 Fund	$	459,035	$	9,112	$	(5,811	)	$	3,301
KP Retirement Path 2020 Fund		762,559		21,137		(11,528	)		9,609
KP Retirement Path 2025 Fund		829,497		28,176		(14,874	)		13,302
KP Retirement Path 2030 Fund		759,364		30,793		(16,205	)		14,588
KP Retirement Path 2035 Fund		826,587		37,935		(18,556	)		19,379
KP Retirement Path 2040 Fund		743,862		39,169		(20,203	)		18,966
KP Retirement Path 2045 Fund		523,785		25,917		(13,825	)		12,092
KP Retirement Path 2050 Fund		253,117		10,388		(5,895	)		4,493
KP Retirement Path 2055 Fund		54,277		1,572		(1,025	)		547
KP Retirement Path 2060 Fund		9,184		324		(410	)		(86	)
KP Large Cap Equity Fund		1,325,346		198,341		(43,873	)		154,468
KP Small Cap Equity Fund		849,543		128,467		(43,794	)		84,673
KP International Equity Fund		1,274,690		82,893		(134,019	)		(51,126	)
KP Fixed Income Fund		1,186,793		3,592		(14,763	)		(11,171	)

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THE KP FUNDS		December 31, 2016

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 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.

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THE KP FUNDS		December 31, 2016

9. Other:

At December 31, 2016, 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		3		25%		1		38%
KP International Equity Fund		5		82%		—		0%
KP Fixed Income Fund		5		85%		—		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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THE KP FUNDS		December 31, 2016

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”) as of December 31, 2016, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, 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 as of December 31, 2016 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 28, 2017

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THE KP FUNDS		December 31, 2016

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



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 70 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 76 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 Value 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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THE KP FUNDS		December 31, 2016

the Fund as 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, 2016.

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 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. Director of SEI Alpha Strategy Portfolios, LP to 2013. Trustee of SEI Liquid Asset Trust to 2016.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, The Advisors’ Inner Circle Fund III, Winton Series Trust, Winton Diversified Opportunities Fund (closed-end investment company), Gallery Trust, Bishop Street Funds, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust and SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds and SEI Insurance Products Trust and SEI Catholic Values Trust. 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 Directorships: Director of SEI Alpha Strategy Portfolios, LP to 2013. Trustee of O’Connor EQUUS (closed-end investment company) to 2016. Trustee of SEI Liquid Asset Trust to 2016.

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THE KP FUNDS		December 31, 2016

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 72 yrs. old	Trustee (Since 2008)	Retired. CEO, Office of Finance, Federal Home Loan Banks, from 1992 to 2007.
JOSEPH T. GRAUSE JR. 64 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 74 yrs. old	Trustee (Since 2005)	Retired. Private investor since 1994.
BETTY L. KRIKORIAN 73 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 Value 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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THE KP FUNDS		December 31, 2016

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, Meals on Wheels, Lewes/Rehoboth Beach and West Rehoboth Land Trust.

Current 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 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 Portfolios, LP to 2013. Trustee of SEI Liquid Asset Trust to 2016.

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, 2016

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 60 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. 73 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 51 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 32 yrs. old	Treasurer, Controller and Chief Financial Officer (Since 2015)	Director, SEI Investments, Fund Accounting since 2014. 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 Value 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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THE KP FUNDS		December 31, 2016

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 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 Portfolios, LP to 2013. Trustee of SEI Liquid Asset Trust to 2016.

None.

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THE KP FUNDS		December 31, 2016

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 55 yrs. old	Chief Compliance Officer (Since 2006)	Chief Compliance Officer of SEI Structured Credit Fund, LP since June 2007. Chief Compliance Officer of SEI Alpha Strategy Portfolios, LP from June 2007 to September 2013. Chief Compliance Officer of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, The Advisors’ Inner Circle Fund III, Winton Series Trust, Winton Diversified Opportunities Fund (closed-end investment company), Gallery Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Daily Income Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Insurance Products Trust and SEI Catholic Values Trust. Chief Compliance Officer of SEI Opportunity Fund, L.P. until 2010. Chief Compliance Officer of O’Connor EQUUS (closed-end investment company) to 2016. Chief Compliance Officer of SEI Liquid Asset Trust to 2016.
DIANNE M. DESCOTEAUX 39 yrs. old	Vice President and Secretary (Since 2011)	Counsel at SEI Investments since 2010. Associate at Morgan, Lewis & Bockius LLP from 2006 to 2010.
BRIDGET E. SUDALL 36 yrs. old	Anti-Money Laundering Compliance Officer and Privacy Officer (since 2015)	Senior Associate and AML Officer, Morgan Stanley Alternative Investment Partners from April 2011 to March 2015. Investor Services Team Lead, Morgan Stanley Alternative Investment Partners from 2007 to 2011.
LISA WHITTAKER 38 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 35 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 Value 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, 2016

Other Directorships

Held by

Officer

None.

None

None.

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THE KP FUNDS		December 31, 2016

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, 2016 and held for the six-month period ended December 31, 2016.

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, 2016

DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)


	Beginning Account Value 7/1/2016		Ending Account Value 12/31/2016		Annualized Expense Ratios			Expenses Paid During Period*
KP Retirement Path 2015 Fund
Actual Fund Return	$	1,000.00	$	1,015.00		0.08	%	$	0.41
Hypothetical 5% Return	$	1,000.00	$	1,024.80		0.08	%	$	0.41
KP Retirement Path 2020 Fund
Actual Fund Return	$	1,000.00	$	1,023.70		0.08	%	$	0.41
Hypothetical 5% Return	$	1,000.00	$	1,024.80		0.08	%	$	0.41
KP Retirement Path 2025 Fund
Actual Fund Return	$	1,000.00	$	1,035.80		0.08	%	$	0.41
Hypothetical 5% Return	$	1,000.00	$	1,024.80		0.08	%	$	0.41
KP Retirement Path 2030 Fund
Actual Fund Return	$	1,000.00	$	1,049.50		0.07	%	$	0.36
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2035 Fund
Actual Fund Return	$	1,000.00	$	1,059.50		0.07	%	$	0.36
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2040 Fund
Actual Fund Return	$	1,000.00	$	1,066.10		0.07	%	$	0.36
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2045 Fund
Actual Fund Return	$	1,000.00	$	1,069.40		0.07	%	$	0.37
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36


	Beginning Account Value 7/1/2016		Ending Account Value 12/31/2016		Annualized Expense Ratios			Expenses Paid During Period*
KP Retirement Path 2050 Fund
Actual Fund Return	$	1,000.00	$	1,069.40		0.07	%	$	0.37
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2055 Fund
Actual Fund Return	$	1,000.00	$	1,070.70		0.08	%	$	0.42
Hypothetical 5% Return	$	1,000.00	$	1,024.80		0.08	%	$	0.41
KP Retirement Path 2060 Fund
Actual Fund Return	$	1,000.00	$	1,069.80		0.08	%	$	0.42
Hypothetical 5% Return	$	1,000.00	$	1,024.80		0.08	%	$	0.41
KP Large Cap Equity Fund
Actual Fund Return	$	1,000.00	$	1,086.00		0.34	%	$	1.79
Hypothetical 5% Return	$	1,000.00	$	1,023.49		0.34	%	$	1.73
KP Small Cap Equity Fund
Actual Fund Return	$	1,000.00	$	1,161.90		0.52	%	$	2.83
Hypothetical 5% Return	$	1,000.00	$	1,022.58		0.52	%	$	2.65
KP International Equity Fund
Actual Fund Return	$	1,000.00	$	1,044.50		0.48	%	$	2.47
Hypothetical 5% Return	$	1,000.00	$	1,022.79		0.48	%	$	2.45
KP Fixed Income Fund
Actual Fund Return	$	1,000.00	$	987.30		0.32	%	$	1.60
Hypothetical 5% Return	$	1,000.00	$	1,023.59		0.32	%	$	1.63

*	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, 2016

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited)

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Funds’ advisory and sub-advisory agreements must be renewed after their initial two-year term: (i) by the vote of the Board of Trustees (the “Board” or the “Trustees”) of KP Funds (the “Trust”) or by a vote of a majority of the shareholders of the Funds; and (ii) by the vote of a majority of the Trustees 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 renewal.

A Board meeting was held on November 17, 2016 to decide whether to renew the following agreements (the “Agreements”) for additional one-year terms:

•

the advisory agreement between Callan Associates Inc. (the “Adviser”) and the Trust, on behalf of the KP Large Cap Equity Fund, KP Small Cap Equity Fund, KP International Equity Fund, KP Fixed Income Fund, 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; and

•

the sub-advisory agreements between: the Adviser and SSgA Funds Management, Inc. (“SSgA”) on behalf of the KP Large Cap Equity Fund, KP Small Cap Equity Fund, KP International Equity Fund, and KP Fixed Income Fund; the Adviser and T. Rowe Price Associates, Inc. (“T. Rowe Price”) on behalf of the KP Large Cap Equity Fund; the Adviser and Marathon Asset Management LLP (“Marathon”) on behalf of the KP International Equity Fund; the Adviser and Columbus Circle Investors (“CCI”) on behalf of the KP Small Cap Equity Fund; the Adviser and MFS Investment Management (“MFS”) on behalf of the KP Large Cap Equity Fund and the KP International Equity Fund; the Adviser and DePrince Race & Zollo, Inc. (“DRZ”) on behalf of the KP Small Cap Equity Fund; the Adviser and Walthausen & Co., LLC (“Walthausen”) on behalf of the KP Small Cap Equity Fund; the Adviser and CastleArk Management LLC (“CastleArk”) on behalf of the KP Small Cap Equity Fund; the Adviser and Acadian Asset Management LLC (“Acadian”) on behalf of the KP International Equity Fund; the Adviser and Payden & Rygel on behalf of the KP Fixed Income Fund; the Adviser and Loomis, Sayles & Company, L.P. (“Loomis Sayles”) on behalf of the KP Fixed Income Fund; the Adviser and Aristotle Capital Boston, LLC (“Aristotle”) on behalf of the KP Small Cap Equity Fund; and the Adviser and PENN Capital Management Company, Inc. (“PENN Capital”) on behalf of the KP Small Cap Equity Fund (each of SSgA, T. Rowe Price, Marathon, CCI, MFS, DRZ, Walthausen, CastleArk, Acadian, Payden & Rygel, Loomis Sayles, Aristotle, and PENN Capital a “Sub-Adviser” and, collectively, the “Sub-Advisers”).

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. Prior to the meeting, the Independent Trustees of the Funds met to review and discuss the information provided and submitted a request for additional information to the Adviser and the Sub-Advisers, and information was provided in response to this request. The Trustees used this information, as well as other information that the Adviser, the Sub-Advisers and other service providers of the Funds presented or submitted to the Board at the meeting and other meetings held during the prior year, to help them decide whether to renew the Agreements for an additional year.

Specifically, the Board requested and received written materials from the Adviser, the Sub-Advisers and other service providers of the Funds regarding: (i) the nature, extent and quality of the Adviser’s and the Sub-Advisers’ services; (ii) the Adviser’s and the Sub-Advisers’ investment management personnel; (iii) the Adviser’s and the Sub-Advisers’ operations and financial condition; (iv) the Adviser’s and the Sub-Advisers’ brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the Funds’ advisory fees paid to the Adviser and the Sub-Advisers and overall fees and operating expenses compared with peer groups of mutual funds; (vi) the level of the Adviser’s and the Sub-Advisers’ profitability from their relationship with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Advisers and their affiliates; (vii) the Adviser’s and the Sub-Advisers’ potential economies of scale; (viii) the Adviser’s and the Sub-Advisers’ compliance program, including a description of material compliance matters and material compliance violations; (ix) the Adviser’s and the Sub-Advisers’ policies on and compliance procedures for personal securities transactions; and (x) the Funds’ performance compared with peer groups of mutual funds and the Funds’ benchmark indices.

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THE KP FUNDS		December 31, 2016

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited) (Continued)

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 Board meeting to help the Trustees evaluate the Adviser’s and the Sub-Advisers’ services, fees and other aspects of the Agreements. The Independent Trustees received advice from independent counsel and met in executive sessions 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 Funds, renewed the Agreements. In considering the renewal of the Agreements, the Board considered various factors that they determined were relevant, including: (i) the nature, extent and quality of the services provided by the Adviser and the Sub-Advisers; (ii) the investment performance of the Funds and the Adviser and the Sub-Advisers; (iii) the costs of the services provided and profits realized by the Adviser and the Sub-Advisers from their relationship with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Advisers and their affiliates; (iv) the extent to which economies of scale are being realized by the Adviser and the Sub-Advisers; and (v) whether fee levels reflect such economies of scale for the benefit of Fund investors, as discussed in further detail below.

Nature, Extent and Quality of Services Provided by the Adviser and the Sub-Advisers

In considering the nature, extent and quality of the services provided by the Adviser and the Sub-Advisers, the Board reviewed the portfolio management services provided by the Adviser and the Sub-Advisers to the Funds, including the quality and continuity of the Adviser’s and the Sub-Advisers’ portfolio management personnel, the resources of the Adviser and the Sub-Advisers, and the Adviser’s and the Sub-Advisers’ compliance history and compliance program. The Trustees reviewed the terms of the Agreements. The Trustees also reviewed the Adviser’s and the Sub-Advisers’ investment and risk management approaches for the Funds. The Trustees considered that the Adviser supervises and monitors the performance of the Sub-Advisers. The most recent investment adviser registration forms (“Form ADV”) for the Adviser and the Sub-Advisers were provided to the Board, as were the responses of the Adviser and the Sub-Advisers to a detailed series of questions which included, among other things, information about the investment advisory services provided by the Adviser and the Sub-Advisers to the Funds.

The Trustees also considered other services provided to the Funds by the Adviser and the Sub-Advisers such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Funds’ 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 provided to the Funds by the Adviser and the Sub-Advisers were sufficient to support renewal of the Agreements.

Investment Performance of the Funds, the Adviser and the Sub-Advisers

The Board was provided with regular reports regarding the Funds’ performance over various time periods, including since their inception, and information regarding the Funds’ performance since the Agreements were last renewed. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ performance to their benchmark indices and peer groups of mutual funds as classified by Lipper, an independent provider of investment company data, over various periods of time. Representatives from the Adviser and the Sub-Advisers provided information regarding and led discussions of factors impacting the performance of the Funds, outlining current market conditions and explaining their expectations and strategies for the future. The Trustees determined that the Funds’ performance was satisfactory, or, where the Funds’ performance was materially below their benchmarks and/or peer groups, the Trustees were satisfied by the reasons for the underperformance and/or the steps taken by the Adviser and the Sub-Advisers in an effort to improve the performance of the Funds. Based on this information, the Board concluded, within the context of its full deliberations, that the investment results that the Adviser and the Sub-Advisers had been able to achieve for the Funds were sufficient to support renewal of the Agreements.

Costs of Advisory Services, Profitability and Economies of Scale

In considering the advisory fees payable by the Funds to the Adviser, as well as the fees payable to the Sub-Advisers, the Trustees reviewed, among other things, a report of the advisory fees paid to the Adviser and the Sub-Advisers. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ net and

155


THE KP FUNDS		December 31, 2016

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited) (Continued)

gross expense ratios and advisory fees to those paid by peer groups of mutual funds as classified by Lipper. The Trustees reviewed the management fees charged by certain 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 Funds and other client accounts as well as the extensive regulatory, compliance and tax regimes to which the Funds are subject. The Trustees also considered that the fees payable to the Sub-Advisers reflected 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 rendered by the Adviser and the Sub-Advisers.

The Trustees reviewed the costs of services provided by and the profits realized by the Adviser and the Sub-Advisers from their relationship with the Funds, including both direct benefits and indirect benefits, such as research and brokerage services received under soft dollar arrangements, accruing to the Adviser and the Sub-Advisers and their affiliates. The Trustees considered how the Adviser’s and the Sub-Advisers’ profitability was affected by factors such as their organizational structures and methods for allocating expenses. The Trustees concluded that the profit margins of the Adviser and the Sub-Advisers with respect to the management of the Funds were not unreasonable. The Board also considered the Adviser’s and the Sub-Advisers’ commitment to managing the Funds.

The Trustees considered the Adviser’s and Sub-Advisers’ views relating to economies of scale in connection with the Funds as Fund assets grow and the extent to which the benefits of any such economies of scale are shared with the Funds and Fund shareholders. The Board considered the existence of any economies of scale and whether those were passed along to the Funds’ shareholders through a graduated advisory fee schedule or other means, including fee waivers. The Trustees recognized that economies of scale are difficult to identify and quantify and are rarely identifiable on a fund-by-fund basis. Based on this evaluation, the Board concluded that the advisory fees were reasonable in light of the information that was provided to the Trustees by the Adviser and the Sub-Advisers with respect to economies of scale.

Renewal 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 payable thereunder, were fair and reasonable and agreed to renew the Agreements for another year. In its deliberations, the Board did not identify any absence of information as material to its decision, or 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.

156


THE KP FUNDS		December 31, 2016

NOTICE TO SHAREHOLDERS (Unaudited)

For shareholders that do not have a December 31, 2016 taxable year end, this notice is for informational purposes only. For shareholders with a December 31, 2016 tax year end, please consult your tax adviser as to the pertinence of this notice.

For the fiscal period ended December 31, 2016 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%		29.45%		70.55%		100.00%
KP Retirement Path 2020 Fund				0.00%		28.77%		71.23%		100.00%
KP Retirement Path 2025 Fund				0.00%		32.57%		67.43%		100.00%
KP Retirement Path 2030 Fund				0.00%		36.82%		63.18%		100.00%
KP Retirement Path 2035 Fund				0.00%		40.09%		59.91%		100.00%
KP Retirement Path 2040 Fund				0.00%		42.99%		57.01%		100.00%
KP Retirement Path 2045 Fund				0.00%		44.46%		55.54%		100.00%
KP Retirement Path 2050 Fund				0.00%		41.30%		58.70%		100.00%
KP Retirement Path 2055 Fund				0.00%		33.18%		66.82%		100.00%
KP Retirement Path 2060 Fund				0.00%		36.80%		63.20%		100.00%
KP Large Cap Equity Fund				0.00%		59.47%		40.53%		100.00%
KP Small Cap Equity Fund				0.00%		0.00%		100.00%		100.00%
KP International Equity Fund				0.00%		0.00%		100.00%		100.00%
KP Fixed Income Fund				0.00%		0.33%		99.67%		100.00%

							Foreign Investors
Fund	Corporate Dividends Received Deduction⁽¹⁾		Qualifying Dividend Income⁽²⁾		U.S. Government Interest⁽³⁾		Interest Related Dividends⁽⁴⁾		Short-Term Capital Gains Dividends⁽⁵⁾
KP Retirement Path 2015 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2020 Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Retirement Path 2025 Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Retirement Path 2030 Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Retirement Path 2035 Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Retirement Path 2040 Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Retirement Path 2045 Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Retirement Path 2050 Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Retirement Path 2055 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2060 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Large Cap Equity Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Small Cap Equity Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP International Equity Fund		0.00%		0.00%		0.00%		0.00%		0.00%
KP Fixed Income Fund		0.00%		0.00%		0.00%		0.00%		100.00%

(1)

Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions).

(2)

The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Relief Reconciliation Act of 2003 and its reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law.

(3)

“U.S. Government Interest represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year. This amount is reflected as a percentage of total ordinary income distributions (the total of short term capital gain and net investment income distributions). Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders of the Funds who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.

157


THE KP FUNDS		December 31, 2016

NOTICE TO SHAREHOLDERS (Unaudited) (Continued)

(4)

The percentage in this column represents the amount of “Interest Related Dividends” and is reflected as a percentage of ordinary income distribution. Interest related dividends are exempt from U.S. withholding tax when paid for foreign investors.

(5)

The percentage in this column represents the amount of “Short-Term Capital Gain Dividends” and is reflected as a percentage of short-term capital gain distribution that is exempt from U.S. withholding tax when paid to foreign investors.

158

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-001-0300

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:


		2016						2015
		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	$	216,900	$	0	$	0	$	210,650	$	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):


	2016			2015
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 2016 and 2015, 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.

Date: March 8, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)*						/s/ Michael Beattie
						Michael Beattie, President

Date: March 8, 2017

Date: March 8, 2017

*	Print the name and title of each signing officer under his or her signature.

Type of Contract

Number of
Contracts
Long

Expiration
Date

Unrealized
Depreciation

S&P 500 Index E-MINI

Mar-2017