EMPOWER FUNDS, INC.
EMPOWER SECUREFOUNDATION® BALANCED FUND
Schedule of Investments
As of March 28, 2024 (Unaudited)
Shares | Fair Value | |
BOND MUTUAL FUNDS | ||
36,436,048 | Empower Bond Index Fund Institutional Class(a) | $302,419,193 |
TOTAL BOND MUTUAL FUNDS — 34.97% (Cost $351,830,104) | $302,419,193 | |
EQUITY MUTUAL FUNDS | ||
10,966,889 | Empower International Index Fund Institutional Class(a) | 119,648,761 |
20,882,829 | Empower S&P 500® Index Fund Institutional Class(a) | 179,801,153 |
11,707,905 | Empower S&P Mid Cap 400® Index Fund Institutional Class(a) | 101,273,381 |
11,868,236 | Empower S&P Small Cap 600® Index Fund Institutional Class(a) | 79,398,502 |
3,830,773 | Fidelity® Emerging Markets Index Fund Institutional Class | 39,342,036 |
TOTAL EQUITY MUTUAL FUNDS — 60.07% (Cost $516,002,370) | $519,463,833 |
Account Balance | Fair Value | |
FIXED INTEREST CONTRACT | ||
43,118,794(b) | Empower of America Contract(a) 1.80%(c) | $ 43,118,794 |
TOTAL FIXED INTEREST CONTRACT — 4.99% (Cost $43,118,794) | $43,118,794 | |
TOTAL INVESTMENTS — 100.03% (Cost $910,951,268) | $865,001,820 | |
OTHER ASSETS & LIABILITIES, NET — (0.03)% | $(271,514) | |
TOTAL NET ASSETS — 100.00% | $864,730,306 |
(a) | Issuer is considered an affiliate of the Fund, see Notes to Schedule of Investments. |
(b) | Account Balance and Cost represent net deposits. |
(c) | Variable rate contract which is not based on a published reference rate and spread, but determined by the issuer and is based on current market conditions. Interest rate shown reflects the rate in effect at March 28, 2024. See Notes to Schedule of Investments. |
See Notes to Schedule of Investments.
March 28, 2024
EMPOWER FUNDS, INC.
EMPOWER SECUREFOUNDATION® BALANCED ETF FUND
Schedule of Investments
As of March 28, 2024 (Unaudited)
Shares | Fair Value | |
BOND EXCHANGE TRADED FUNDS | ||
113,980 | Vanguard Total Bond Market ETF | $ 8,278,367 |
TOTAL BOND EXCHANGE TRADED FUNDS — 38.99% (Cost $9,390,103) | $8,278,367 | |
EQUITY EXCHANGE TRADED FUNDS | ||
57,416 | Vanguard FTSE Developed Markets ETF(a) | 2,880,561 |
22,643 | Vanguard FTSE Emerging Markets ETF | 945,798 |
22,602 | Vanguard Russell 2000 ETF | 1,922,526 |
9,128 | Vanguard S&P 500® ETF | 4,387,829 |
24,076 | Vanguard S&P Mid-Cap 400® ETF(a) | 2,480,069 |
EQUITY EXCHANGE TRADED FUNDS — 59.43% (Cost $9,430,897) | $12,616,783 | |
GOVERNMENT MONEY MARKET MUTUAL FUNDS | ||
339,231 | Federated Hermes Government Obligations Fund Institutional Class, 5.19%(b) | 339,231 |
TOTAL GOVERNMENT MONEY MARKET MUTUAL FUNDS — 1.60% (Cost $339,231) | $339,231 | |
Principal Amount | ||
SHORT TERM INVESTMENTS | ||
Repurchase Agreements — 4.90% | ||
$48,039 | Undivided interest of 0.03% in a repurchase agreement (principal amount/value $177,916,671 with a maturity value of $178,022,037) with RBC Capital Markets Corp, 5.33%, dated 3/28/24 to be repurchased at $48,039 on 4/1/24 collateralized by U.S. Treasury securities and various U.S. Government Agency securities, 0.00% - 8.00%, 4/4/24 - 3/1/54, with a value of $181,475,005.(c) | 48,039 |
Principal Amount | Fair Value | |
Repurchase Agreements — (continued) | ||
$992,461 | Undivided interest of 0.72% in a repurchase agreement (principal amount/value $138,121,676 with a maturity value of $138,203,475) with Bank of Montreal, 5.33%, dated 3/28/24 to be repurchased at $992,461 on 4/1/24 collateralized by Federal National Mortgage Association securities, 3.50% - 7.00%, 8/1/33 - 3/1/54, with a value of $140,884,109.(c) | $ 992,461 |
TOTAL SHORT TERM INVESTMENTS — 4.90% (Cost $1,040,500) | $1,040,500 | |
TOTAL INVESTMENTS — 104.92% (Cost $20,200,731) | $22,274,881 | |
OTHER ASSETS & LIABILITIES, NET — (4.92)% | $(1,044,436) | |
TOTAL NET ASSETS — 100.00% | $21,230,445 |
(a) | All or a portion of the security is on loan at March 28, 2024. |
(b) | Rate shown is the 7-day yield as of March 28, 2024. |
(c) | Collateral received for securities on loan. |
ETF | Exchange Traded Fund |
See Notes to Schedule of Investments.
March 28, 2024
EMPOWER FUNDS, INC.
Notes to Schedule of Investments (Unaudited)
Security Valuation
The Board of Directors of the Funds has adopted policies and procedures for the valuation of the Funds’ securities and assets, and has appointed the Fair Value Pricing Committee of the investment adviser, Empower Capital Management, LLC (ECM or the Adviser), to complete valuation determinations under those policies and procedures. Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended, the Board of Directors approved the Adviser as the Funds’ valuation designee to make all fair value determinations with respect to the Funds’ investments, subject to oversight by the Board of Directors.
Investments in shares of the underlying mutual funds are valued at the net asset value as reported by the underlying mutual fund, which may be obtained from pricing services or other pricing sources. The inputs used by the pricing services are reviewed quarterly or when the pricing vendor issues updates to its pricing methodologies. The Empower SecureFoundation® Balanced ETF Fund generally values its Exchange Traded Funds (ETFs) based on market prices determined at the close of regular trading on the New York Stock Exchange (NYSE) on each day the NYSE is open for trading. The net asset value of each class of a Fund's shares is determined by dividing the net assets attributable to each class of shares of such Fund by the number of issued and outstanding shares of each class of the Fund on each valuation date.
Investments in fixed interest contracts issued by Empower of America (Empower of America Contract) are valued at the amount of net deposits plus accrued interest, determined on a daily basis. The Empower of America Contract is backed by the general account of Empower of America.
Short term securities purchased with less than 60 days remaining until maturity and all U.S. Treasury Bills are valued on the basis of amortized cost, which has been determined to approximate fair value. Short term securities purchased with more than 60 days remaining until maturity are valued using pricing services, or in the event a price is not available from a pricing service, may be priced using other methodologies approved by the Board of Directors, including model pricing or pricing on the basis of quotations from brokers or dealers, and will continue to be priced until final maturity.
Independent pricing services are approved by the Board of Directors and are utilized for all investment types when available. In some instances valuations from independent pricing services are not available or do not reflect events in the market between the time the market closed and the valuation time and therefore fair valuation procedures are implemented. The fair value for some securities may be obtained from pricing services or other pricing sources. The inputs used by the pricing services are reviewed quarterly or when the pricing vendor issues updates to its pricing methodologies. Developments that might trigger fair value pricing could be natural disasters, government actions or fluctuations in domestic and foreign markets.
The following table provides examples of the inputs that are commonly used for valuing particular classes of securities. These classifications are not exclusive, and any inputs may be used to value any other security class.
Class | Inputs |
Exchange Traded Funds | Exchange traded close price |
Government Money Market Mutual Funds | Net asset value of underlying mutual fund |
Short Term Investments | Maturity date, credit quality and interest rates |
The Funds classify their valuations into three levels based upon the observability of inputs to the valuation of each Fund's investments. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. Classification is based on the lowest level of input significant to the fair value measurement. The three levels are defined as follows:
Level 1 – Unadjusted quoted prices for identical securities in active markets.
Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. These may
March 28, 2024
include quoted prices for similar assets in active markets.
Level 3 – Unobservable inputs to the extent observable inputs are not available. Unobservable inputs reflect a Fund’s own assumptions and would be based on the best information available under the circumstances.
As of March 28, 2024, investments in the underlying ETFs, underlying mutal funds and Government Money Market Mutual Funds are valued using Level 1 inputs. Investments in the Empower of America Contract and short term securities are valued using Level 2 inputs. More information regarding the sector classifications are included in the Schedule of Investments.
Fund-of-Funds Structure Risk
Since each Fund invests directly in underlying funds, all risks associated with the eligible underlying funds apply to each Fund. To the extent each Fund invests more of its assets in one underlying fund than another, each Fund will have greater exposure to the risks of that underlying fund.
Repurchase Agreements
The Empower SecureFoundation® Balanced ETF Fund may engage in repurchase agreement transactions with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund will purchase securities at a specified price with an agreement to sell the securities to the same counterparty at a specified time, price and interest rate. The Fund’s custodian and/or securities lending agent receives delivery of the underlying securities collateralizing a repurchase agreement. Collateral is at least equal to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon the Fund’s ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights.
Transactions with Affiliates
The Empower SecureFoundation® Balanced Fund may invest in the Empower of America Contract pursuant to exemptive relief issued by the U.S. Securities and Exchange Commission. The Empower of America Contract has a stable principal value and accrues a fixed rate of interest, which is reflected in the daily valuation of the Fund. Empower of America calculates the interest rate in the same way it calculates guaranteed interest rates for similar contracts (on a calendar quarter or other periodic basis). As a result of Empower of America being an affiliated entity, the Fund is exposed to the risk of unanticipated industry conditions as well as risks specific to a single corporation. If Empower of America were to become insolvent, the Empower of America Contract would be settled commensurate with other policy holder obligations.
The amounts deposited will accrue interest at a declared rate of interest, adjustable on a calendar quarter or other periodic basis, guaranteed to be no less than 1.00%. The investment in the Empower of America Contract may be terminated by Empower of America or the Fund upon 7 days prior written notice. The guaranteed interest rate paid will be at least as favorable as the guaranteed interest rate paid on other similar products issued by Empower of America.
The following table is a summary of the transactions for each underlying investment during the period ended March 28, 2024, in which the issuer was an affiliate of the Fund, as defined in the 1940 Act.
Empower SecureFoundation® Balanced Fund | |||||||||||||
Affiliate | Shares Held/ Account Balance 03/28/2024 | Value 12/31/2023 | Purchase Cost | Sales Cost | Net Realized Gain (Loss) | Net Change Unrealized Appreciation (Depreciation) | Dividends and Interest Received | Distributions Received | Value 03/28/2024 | ||||
BOND MUTUAL FUNDS 34.97% | |||||||||||||
Empower Bond Index Fund Institutional Class | 36,436,048 | $306,835,831 | $7,446,041 | $10,641,808 | $(1,313,123) | $(1,220,871) | $- | $- | $302,419,193 | ||||
(1,313,123) | (1,220,871) | 0 | 0 | 302,419,193 | |||||||||
EQUITY MUTUAL FUNDS 55.52% | |||||||||||||
Empower International Index Fund Institutional Class | 10,966,889 | 122,874,810 | 241,117 | 8,449,979 | 1,797,780 | 4,982,813 | - | - | 119,648,761 |
March 28, 2024
Empower SecureFoundation® Balanced Fund | |||||||||||||
Affiliate | Shares Held/ Account Balance 03/28/2024 | Value 12/31/2023 | Purchase Cost | Sales Cost | Net Realized Gain (Loss) | Net Change Unrealized Appreciation (Depreciation) | Dividends and Interest Received | Distributions Received | Value 03/28/2024 | ||||
Empower S&P 500® Index Fund Institutional Class | 20,882,829 | $183,486,997 | $290,347 | $18,866,574 | $3,158,619 | $14,890,383 | $- | $- | $179,801,153 | ||||
Empower S&P Mid Cap 400® Index Fund Institutional Class | 11,707,905 | 102,747,468 | 216,055 | 7,523,002 | 3,777,571 | 5,832,860 | - | - | 101,273,381 | ||||
Empower S&P Small Cap 600® Index Fund Institutional Class | 11,868,236 | 80,486,432 | 831,765 | 2,776,517 | 1,067,782 | 856,822 | - | - | 79,398,502 | ||||
9,801,752 | 26,562,878 | 0 | 0 | 480,121,797 | |||||||||
FIXED INTEREST CONTRACT 4.99% | |||||||||||||
Empower of America Contract | 43,118,794 | 43,793,168 | 857,231 | 1,720,512 | - | - | 188,907 | - | 43,118,794 | ||||
0 | 0 | 188,907 | 0 | 43,118,794 | |||||||||
Total | $8,488,629 | $25,342,007 | $188,907 | $0 | $825,659,784 |
March 28, 2024