UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03364
EMPOWER FUNDS, INC.
(Exact name of registrant as specified in charter)
8515 E. Orchard Road, Greenwood Village, Colorado 80111
(Address of principal executive offices)
(Address of principal executive offices)
Jonathan D. Kreider
President and Chief Executive Officer
Empower Funds, Inc.
Empower Funds, Inc.
8515 E. Orchard Road
Greenwood Village, Colorado 80111
(Name and address of agent for service)
Registrant's telephone number, including area code: (866) 831-7129
Date of fiscal year end: April 30
Date of reporting period: October 31, 2022
Item 1. REPORTS TO STOCKHOLDERS
EMPOWER FUNDS, INC.
Empower Core Strategies: Flexible Bond Fund
(Formerly Great-West Core Strategies: Flexible Bond Fund)
(Institutional Class and Investor Class)
(Institutional Class and Investor Class)
Semi-Annual Report
October 31, 2022
This report and the financial statements attached are submitted for general information and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein is to be considered an offer of the sale of shares of the Fund. Such offering is made only by the prospectus of the Fund, which includes details as to offering price and other information.
Summary of Investments by Ratings as of October 31, 2022 (unaudited)
Rating | Percentage of Fund Investments |
Aaa | 42.28% |
Aa1 | 0.10 |
Aa2 | 2.32 |
Aa3 | 0.78 |
A1 | 4.70 |
A2 | 5.23 |
A3 | 4.73 |
Baa1 | 7.34 |
Baa2 | 10.73 |
Baa3 | 6.44 |
Ba1 | 0.47 |
Ba2 | 0.21 |
Ba3 | 0.32 |
B1 | 0.11 |
B2 | 0.26 |
B3 | 0.18 |
Equities | 0.61 |
Not Rated | 2.02 |
Short Term Investments | 11.17 |
Total | 100.00% |
Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2022 to October 31, 2022).
Actual Expenses
The first row of the table below provides information about actual account values and actual expenses. You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first row under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second row of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second row of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value | Ending Account Value | Expenses Paid During Period* | |||
(05/01/22) | (10/31/22) | (05/01/22 – 10/31/22) | |||
Institutional Class | |||||
Actual | $1,000.00 | $ 930.60 | $2.19 | ||
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.90 | $2.29 | ||
Investor Class | |||||
Actual | $1,000.00 | $ 930.20 | $3.75 | ||
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.30 | $3.92 |
* Expenses are equal to the Fund's annualized expense ratio of 0.45% for the Institutional Class shares and 0.77% for the Investor Class shares, multiplied by the average account value over the period, multiplied by 184/365 days to reflect the one-half year period. Performance does not include any fees or expenses of IRAs or your financial professional brokerage commissions, if applicable. If such fees or expenses were included, returns would be lower. |
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
ASSET-BACKED SECURITIES | ||
Non-Agency — 10.23% | ||
$ 751,979 | 510 Asset Backed Trust(a)(b) Series 2021-NPL1 Class A1 2.24%, 06/25/2061 | $ 689,368 |
Aaset Trust(a) | ||
Series 2021-1A Class A | ||
693,090 | 2.95%, 11/16/2041 | 548,427 |
Series 2021-2A Class A | ||
960,604 | 2.80%, 01/15/2047 | 748,063 |
105,000 | Affirm Asset Securitization Trust(a) Series 2021-B Class C 1.40%, 08/17/2026 | 94,244 |
5,292 | Ally Auto Receivables Trust Series 2019-4 Class A3 1.84%, 06/17/2024 | 5,277 |
American Credit Acceptance Receivables Trust(a) | ||
Series 2019-3 Class D | ||
6,129 | 2.89%, 09/12/2025 | 6,080 |
Series 2020-1 Class D | ||
850,000 | 2.39%, 03/13/2026 | 839,229 |
Series 2020-4 Class D | ||
85,000 | 1.77%, 12/14/2026 | 80,028 |
Series 2021-1 Class D | ||
2,000,000 | 1.14%, 03/15/2027 | 1,898,247 |
Series 2021-2 Class D | ||
1,750,000 | 1.34%, 07/13/2027 | 1,640,517 |
Series 2021-3 Class D | ||
3,730,000 | 1.34%, 11/15/2027 | 3,491,140 |
Series 2021-4 Class D | ||
3,440,000 | 1.82%, 02/14/2028 | 3,116,283 |
Series 2022-1 Class D | ||
400,000 | 2.46%, 03/13/2028 | 354,705 |
AmeriCredit Automobile Receivables Trust | ||
Series 2018-3 Class D | ||
5,000 | 4.04%, 11/18/2024 | 4,950 |
Series 2019-2 Class D | ||
10,000 | 2.99%, 06/18/2025 | 9,691 |
Series 2019-3 Class D | ||
5,000 | 2.58%, 09/18/2025 | 4,807 |
Series 2020-1 Class D | ||
20,000 | 1.80%, 12/18/2025 | 18,582 |
Series 2020-2 Class D | ||
350,000 | 2.13%, 03/18/2026 | 324,331 |
Series 2020-3 Class D | ||
120,000 | 1.49%, 09/18/2026 | 110,251 |
Series 2021-1 Class D | ||
385,000 | 1.21%, 12/18/2026 | 347,077 |
3,400,000 | Apidos XXXVII(a)(c) Series 2021-37A Class B 5.92%, 10/22/2034 3-mo. LIBOR + 1.60% | 3,172,200 |
210,000 | Aqua Finance Trust(a) Series 2021-A Class B 2.40%, 07/17/2046 | 173,084 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
$ 3,850,000 | Ares LXII Ltd(a)(c) Series 2021-62A Class B 6.01%, 01/25/2034 3-mo. LIBOR + 1.65% | $ 3,577,035 |
Avis Budget Rental Car Funding AESOP LLC(a) | ||
Series 2018-1A Class B | ||
535,000 | 4.00%, 09/20/2024 | 527,202 |
Series 2018-1A Class C | ||
100,000 | 4.73%, 09/20/2024 | 98,131 |
Series 2019-2A Class A | ||
130,000 | 3.35%, 09/22/2025 | 124,536 |
Series 2020-1A Class C | ||
1,795,000 | 3.02%, 08/20/2026 | 1,578,625 |
Series 2020-2A Class A | ||
925,000 | 2.02%, 02/20/2027 | 817,956 |
Series 2020-2A Class B | ||
210,000 | 2.96%, 02/20/2027 | 187,350 |
Series 2020-2A Class C | ||
110,000 | 4.25%, 02/20/2027 | 98,228 |
Series 2021-1A Class C | ||
105,000 | 2.13%, 08/20/2027 | 87,518 |
Series 2021-2A Class C | ||
450,000 | 2.35%, 02/20/2028 | 369,072 |
1,585,000 | BHG Securitization Trust(a) Series 2022-A Class B 2.70%, 02/20/2035 | 1,356,838 |
900,000 | BlueMountain Ltd(a)(c) Series 2018-2A Class B 4.61%, 08/15/2031 3-mo. LIBOR + 1.70% | 841,807 |
2,900,000 | BlueMountain XXXIII Ltd(a)(c) Series 2021-33A Class B 4.68%, 11/20/2034 3-mo. LIBOR + 1.70% | 2,685,110 |
355,000 | Brex Commercial Charge Card Master Trust(a) Series 2021-1 Class A 2.09%, 07/15/2024 | 348,962 |
79,890 | Business Jet Securities LLC(a) Series 2021-1A Class B 2.92%, 04/15/2036 | 64,625 |
497,865 | CAL Funding IV Ltd(a) Series 2020-1A Class A 2.22%, 09/25/2045 | 428,464 |
2,000,000 | Carlyle Global Market Strategies Ltd(a)(c) Series 2021-3SA Class A2 5.58%, 04/15/2034 3-mo. LIBOR + 1.50% | 1,857,600 |
CarMax Auto Owner Trust | ||
Series 2019-3 Class D | ||
5,000 | 2.85%, 01/15/2026 | 4,826 |
Series 2020-1 Class D | ||
5,000 | 2.64%, 07/15/2026 | 4,780 |
Series 2020-2 Class C | ||
15,000 | 4.23%, 11/17/2025 | 14,618 |
Series 2020-3 Class D | ||
5,000 | 2.53%, 01/15/2027 | 4,678 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Series 2020-4 Class D | ||
$ 1,830,000 | 1.75%, 04/15/2027 | $ 1,652,609 |
Series 2021-1 Class D | ||
500,000 | 1.28%, 07/15/2027 | 441,163 |
Series 2022-1 Class D | ||
300,000 | 2.47%, 07/17/2028 | 269,117 |
Carvana Auto Receivables Trust | ||
Series 2021-N3 Class C | ||
550,000 | 1.02%, 06/12/2028 | 531,174 |
Series 2021-N4 Class C | ||
300,000 | 1.72%, 09/11/2028 | 286,219 |
Series 2021-N4 Class D | ||
680,000 | 2.30%, 09/11/2028 | 610,456 |
Series 2021-P3 Class C | ||
550,000 | 1.93%, 10/12/2027 | 452,333 |
Series 2021-P4 Class C | ||
325,000 | 2.33%, 02/10/2028 | 271,921 |
544,102 | CLI Funding VIII LLC(a) Series 2021-1A Class A 1.64%, 02/18/2046 | 461,541 |
585,000 | College Ave Student Loans LLC(a) Series 2021-A Class C 2.92%, 07/25/2051 | 515,311 |
Commonbond Student Loan Trust(a) | ||
Series 2019-AGS Class B | ||
180,314 | 3.04%, 01/25/2047 | 149,197 |
Series 2020-1 Class A | ||
42,207 | 1.69%, 10/25/2051 | 36,673 |
CoreVest American Finance Trust(a) | ||
Series 2020-2 Class C | ||
590,000 | 4.60%, 05/15/2052(d) | 533,213 |
Series 2021-1 Class C | ||
155,000 | 2.80%, 04/15/2053 | 117,106 |
Series 2021-2 Class C | ||
320,000 | 2.48%, 07/15/2054 | 229,471 |
Series 2021-3 Class D | ||
220,000 | 3.47%, 10/15/2054 | 163,388 |
Credit Acceptance Auto Loan Trust(a) | ||
Series 2020-2A Class C | ||
295,000 | 2.73%, 11/15/2029 | 283,322 |
Series 2020-3A Class C | ||
500,000 | 2.28%, 02/15/2030 | 464,907 |
Series 2021-2A Class C | ||
400,000 | 1.64%, 06/17/2030 | 356,279 |
Series 2021-3A Class C | ||
250,000 | 1.63%, 09/16/2030 | 220,675 |
Series 2021-4 Class C | ||
2,453,000 | 1.94%, 02/18/2031 | 2,201,517 |
DB Master Finance LLC(a) | ||
Series 2019-1A Class A23 | ||
415,160 | 4.35%, 05/20/2049 | 365,463 |
Series 2021-1A Class A2II | ||
1,032,200 | 2.49%, 11/20/2051 | 826,167 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
$ 230,000 | Dell Equipment Finance Trust(a) Series 2020-2 Class D 1.92%, 03/23/2026 | $ 224,122 |
Domino's Pizza Master Issuer LLC(a) | ||
Series 2017-1A Class A23 | ||
188,595 | 4.12%, 07/25/2047 | 169,377 |
Series 2018-1A Class A2II | ||
384,000 | 4.33%, 07/25/2048 | 350,088 |
Series 2019-1A Class A2 | ||
2,723,000 | 3.67%, 10/25/2049 | 2,271,374 |
Series 2021-1A Class A2I | ||
1,103,200 | 2.66%, 04/25/2051 | 884,740 |
Drive Auto Receivables Trust | ||
Series 2019-4 Class D | ||
4,952 | 2.70%, 02/16/2027 | 4,857 |
Series 2020-1 Class D | ||
1,505,000 | 2.70%, 05/17/2027 | 1,474,373 |
Series 2020-2 Class D | ||
1,000,000 | 3.05%, 05/15/2028 | 972,319 |
Series 2021-1 Class D | ||
500,000 | 1.45%, 01/16/2029 | 460,271 |
Series 2021-2 Class D | ||
3,360,000 | 1.39%, 03/15/2029 | 3,038,440 |
1,200,000 | Dryden Senior Loan Fund(a)(c) Series 2017-50A Class B 5.73%, 07/15/2030 3-mo. LIBOR + 1.65% | 1,140,139 |
DT Auto Owner Trust(a) | ||
Series 2019-3A Class D | ||
2,986,296 | 2.96%, 04/15/2025 | 2,937,065 |
Series 2019-4A Class D | ||
10,000 | 2.85%, 07/15/2025 | 9,844 |
Series 2020-3A Class C | ||
345,000 | 1.47%, 06/15/2026 | 333,171 |
Series 2021-1A Class D | ||
3,170,000 | 1.16%, 11/16/2026 | 2,902,044 |
Series 2021-2A Class D | ||
2,970,000 | 1.50%, 02/16/2027 | 2,733,783 |
Series 2021-3A Class D | ||
2,765,000 | 1.31%, 05/17/2027 | 2,440,400 |
Series 2021-4A Class D | ||
790,000 | 1.99%, 09/15/2027 | 703,906 |
Series 2022-1A Class D | ||
1,470,000 | 3.40%, 12/15/2027 | 1,332,836 |
158,733 | EDvestinU Private Education Loan Issue No 3 LLC(a) Series 2021-A Class A 1.80%, 11/25/2045 | 131,816 |
80,619 | Elara HGV Timeshare Issuer LLC(a) Series 2021-A Class C 2.09%, 08/27/2035 | 69,884 |
86,368 | ELFI Graduate Loan Program LLC(a)(d) Series 2021-A Class B 2.09%, 12/26/2046 | 73,005 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Exeter Automobile Receivables Trust | ||
Series 2019-4A Class D | ||
$ 18,476 | 2.58%, 09/15/2025(a) | $ 18,111 |
Series 2021-1A Class D | ||
2,460,000 | 1.08%, 11/16/2026 | 2,306,613 |
Series 2021-3A Class D | ||
3,705,000 | 1.55%, 06/15/2027 | 3,332,222 |
Series 2022-1A Class D | ||
3,021,000 | 3.02%, 06/15/2028 | 2,693,703 |
Series 2022-2A Class D | ||
200,000 | 4.56%, 07/17/2028 | 185,208 |
Series 2022-5A Class A2 | ||
3,860,000 | 5.29%, 01/15/2025 | 3,854,586 |
First Investors Auto Owner Trust(a) | ||
Series 2019-1A Class D | ||
350,000 | 3.55%, 04/15/2025 | 347,120 |
Series 2021-1A Class D | ||
415,000 | 1.62%, 03/15/2027 | 378,595 |
Series 2022-1A Class D | ||
400,000 | 3.79%, 06/15/2028 | 357,049 |
Series 2022-2A Class D | ||
420,000 | 8.71%, 10/16/2028 | 419,958 |
FirstKey Homes Trust(a) | ||
Series 2020-SFR2 Class F1 | ||
1,015,000 | 3.02%, 10/19/2037 | 869,285 |
Series 2021-SFR1 Class E1 | ||
535,000 | 2.39%, 08/17/2038 | 438,980 |
Series 2021-SFR2 Class E1 | ||
360,000 | 2.26%, 09/17/2038 | 293,762 |
Series 2021-SFR2 Class E2 | ||
225,000 | 2.36%, 09/17/2038 | 182,002 |
Series 2022-SFR2 Class D | ||
635,000 | 4.50%, 07/17/2039 | 561,560 |
Flagship Credit Auto Trust(a) | ||
Series 2019-3 Class D | ||
85,000 | 2.86%, 12/15/2025 | 81,320 |
Series 2019-4 Class D | ||
10,000 | 3.12%, 01/15/2026 | 9,525 |
Series 2020-1 Class D | ||
15,000 | 2.48%, 03/16/2026 | 14,001 |
Series 2020-4 Class D | ||
190,000 | 2.18%, 02/16/2027 | 177,513 |
Series 2021-1 Class D | ||
255,000 | 1.27%, 03/15/2027 | 229,872 |
Series 2021-2 Class D | ||
310,000 | 1.59%, 06/15/2027 | 272,394 |
Series 2021-3 Class D | ||
475,000 | 1.65%, 09/15/2027 | 413,178 |
Series 2021-4 Class C | ||
610,000 | 1.96%, 12/15/2027 | 558,481 |
Ford Credit Auto Owner Trust | ||
Series 2019-C Class A3 | ||
1,170 | 1.87%, 03/15/2024 | 1,167 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Series 2020-B Class A3 | ||
$ 13,028 | 0.56%, 10/15/2024 | $ 12,851 |
Foursight Capital Automobile Receivables Trust(a) | ||
Series 2021-1 Class D | ||
530,000 | 1.32%, 03/15/2027 | 491,199 |
Series 2021-2 Class D | ||
360,000 | 1.92%, 09/15/2027 | 330,052 |
Freedom Financial Trust(a) | ||
Series 2021-2 Class C | ||
100,000 | 1.94%, 06/19/2028 | 96,055 |
Series 2021-3FP Class D | ||
495,000 | 2.37%, 11/20/2028 | 438,022 |
Series 2022-1FP Class D | ||
410,000 | 3.35%, 03/19/2029 | 376,431 |
FRTKL Trust(a) | ||
Series 2021-SFR1 Class E1 | ||
165,000 | 2.37%, 09/17/2038 | 135,165 |
Series 2021-SFR1 Class E2 | ||
140,000 | 2.52%, 09/17/2038 | 114,361 |
GLS Auto Receivables Issuer Trust(a) | ||
Series 2020-1A Class C | ||
10,000 | 2.72%, 11/17/2025 | 9,833 |
Series 2021-1A Class D | ||
1,285,000 | 1.68%, 01/15/2027 | 1,211,147 |
Series 2021-2A Class D | ||
545,000 | 1.42%, 04/15/2027 | 489,374 |
Series 2021-3A Class D | ||
785,000 | 1.48%, 07/15/2027 | 693,855 |
Series 2021-4A Class D | ||
1,790,000 | 2.48%, 10/15/2027 | 1,589,735 |
GM Financial Consumer Automobile Receivables Trust | ||
Series 2019-4 Class A3 | ||
2,368 | 1.75%, 07/16/2024 | 2,358 |
Series 2020-1 Class A3 | ||
2,132 | 1.84%, 09/16/2024 | 2,117 |
Series 2020-4 Class A3 | ||
6,949 | 0.38%, 08/18/2025 | 6,762 |
Series 2021-1 Class A3 | ||
487,431 | 0.35%, 10/16/2025 | 471,388 |
Series 2021-2 Class A3 | ||
1,550,000 | 0.51%, 04/16/2026 | 1,477,759 |
296,250 | Hardee's Funding LLC(a) Series 2021-1A Class A2 2.87%, 06/20/2051 | 229,689 |
Hertz Vehicle Financing III LLC(a) | ||
Series 2022-1A Class D | ||
1,704,000 | 4.85%, 06/25/2026 | 1,484,538 |
Series 2022-3A Class D | ||
1,283,000 | 6.31%, 03/25/2025 | 1,224,171 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
$ 900,000 | Hertz Vehicle Financing LLC(a) Series 2022-4A Class D 6.56%, 09/25/2026 | $ 822,581 |
Home Partners of America Trust(a) | ||
Series 2021-1 Class E | ||
88,043 | 2.58%, 09/17/2041 | 70,106 |
Series 2021-2 Class E1 | ||
1,285,248 | 2.85%, 12/17/2026 | 1,094,968 |
Series 2021-2 Class E2 | ||
618,282 | 2.95%, 12/17/2026 | 523,245 |
Honda Auto Receivables Owner Trust | ||
Series 2019-4 Class A3 | ||
36,628 | 1.83%, 01/18/2024 | 36,436 |
Series 2020-1 Class A4 | ||
30,000 | 1.63%, 10/21/2026 | 29,315 |
HPEFS Equipment Trust(a) | ||
Series 2021-1A Class D | ||
190,000 | 1.03%, 03/20/2031 | 178,738 |
Series 2022-1A Class D | ||
420,000 | 2.40%, 11/20/2029 | 382,110 |
6,800,000 | HPS Loan Management Ltd(a)(c) Series 15A-19 Class A1R 5.36%, 01/22/2035 3-mo. SOFR + 1.32% | 6,478,686 |
JPMorgan Chase Bank NA(a) | ||
Series 2021-1 Class D | ||
104,561 | 1.17%, 09/25/2028 | 100,118 |
Series 2021-3 Class D | ||
155,765 | 1.01%, 02/26/2029 | 146,813 |
2,250,000 | KKR Ltd(a)(c) Series 31A Class B 5.74%, 04/20/2034 3-mo. LIBOR + 1.50% | 2,067,750 |
360,228 | Laurel Road Prime Student Loan Trust(a) Series 2020-A Class A2FX 1.40%, 11/25/2050 | 323,619 |
982,040 | Lunar Structured Aircraft Portfolio Notes(a) Series 2021-1 Class A 2.64%, 10/15/2046 | 783,283 |
1,875,059 | MAPS Ltd(a) Series 2021-1A Class A 2.52%, 06/15/2046 | 1,500,004 |
2,250,000 | Marathon Ltd(a)(c) Series 2021-16A Class A2 5.78%, 04/15/2034 3-mo. LIBOR + 1.70% | 2,067,075 |
Marlette Funding Trust(a) | ||
Series 2021-2A Class C | ||
120,000 | 1.50%, 09/15/2031 | 109,851 |
Series 2021-3A Class C | ||
310,000 | 1.81%, 12/15/2031 | 270,281 |
455,000 | Mercury Financial Credit Card Master Trust(a) Series 2021-1A Class A 1.54%, 03/20/2026 | 429,705 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
$ 130,930 | Merlin Aviation Holdings Designated Activity Co(a)(b) Series 2016-1 Class A 4.50%, 12/15/2032 | $ 99,033 |
100,000 | Mission Lane Credit Card Master Trust(a) Series 2021-A Class B 2.24%, 09/15/2026 | 95,995 |
MVW Owner Trust(a) | ||
Series 2019-1A Class C | ||
26,953 | 3.33%, 11/20/2036 | 24,892 |
Series 2021-1WA Class C | ||
697,019 | 1.94%, 01/22/2041 | 614,612 |
Series 2021-2A Class C | ||
1,263,567 | 2.23%, 05/20/2039 | 1,106,559 |
Navient Private Education Refi Loan Trust(a) | ||
Series 2020-HA Class A | ||
60,297 | 1.31%, 01/15/2069 | 54,344 |
Series 2021-A Class A | ||
367,544 | 0.84%, 05/15/2069 | 310,455 |
Series 2021-A Class B | ||
720,000 | 2.24%, 05/15/2069 | 487,988 |
Series 2021-EA Class B | ||
235,000 | 2.03%, 12/16/2069 | 145,686 |
Series 2021-FA Class B | ||
505,000 | 2.12%, 02/18/2070 | 309,588 |
1,542,187 | Navigator Aircraft Ltd(a)(b) Series 2021-1 Class A 2.77%, 11/15/2046 | 1,269,611 |
Nelnet Student Loan Trust(a) | ||
Series 2021-DA Class C | ||
195,000 | 3.50%, 04/20/2062 | 148,409 |
Series 2021-DA Class D | ||
100,000 | 4.38%, 04/20/2062 | 73,748 |
Nissan Auto Receivables Owner Trust | ||
Series 2019-C Class A3 | ||
926 | 1.93%, 07/15/2024 | 922 |
Series 2020-A Class A3 | ||
12,459 | 1.38%, 12/16/2024 | 12,269 |
2,100,000 | Octagon Investment Partners Ltd(a)(c) Series 2019-4A Class A1R 4.07%, 05/12/2031 3-mo. LIBOR + 1.15% | 2,039,992 |
2,250,000 | OneMain Direct Auto Receivables Trust(a) Series 2021-1A Class D 1.62%, 11/14/2030 | 1,859,318 |
OneMain Financial Issuance Trust(a) | ||
Series 2018-2A Class A | ||
260,000 | 3.57%, 03/14/2033 | 254,181 |
Series 2018-2A Class B | ||
200,000 | 3.89%, 03/14/2033 | 188,867 |
Series 2020-2A Class A | ||
2,755,000 | 1.75%, 09/14/2035 | 2,381,906 |
Series 2021-1A Class D | ||
350,000 | 2.47%, 06/16/2036 | 261,443 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Series 2022-S1 Class D | ||
$ 770,000 | 5.20%, 05/14/2035 | $ 686,015 |
576,000 | Planet Fitness Master Issuer LLC(a) Series 2018-1A Class A2II 4.67%, 09/05/2048 | 539,046 |
Prestige Auto Receivables Trust(a) | ||
Series 2020-1A Class E | ||
330,000 | 3.67%, 02/15/2028 | 319,306 |
Series 2022-1A Class D | ||
1,235,000 | 8.08%, 08/15/2028 | 1,219,620 |
Progress Residential Trust(a) | ||
Series 2021-SFR2 Class E1 | ||
465,000 | 2.55%, 04/19/2038 | 387,799 |
Series 2021-SFR3 Class E1 | ||
165,000 | 2.54%, 05/17/2026 | 137,613 |
Series 2021-SFR3 Class E2 | ||
140,000 | 2.69%, 05/17/2026 | 116,453 |
Series 2021-SFR4 Class E1 | ||
100,000 | 2.41%, 05/17/2038 | 83,010 |
Series 2021-SFR4 Class E2 | ||
100,000 | 2.56%, 05/17/2038 | 82,979 |
Series 2021-SFR5 Class E1 | ||
230,000 | 2.21%, 07/17/2038 | 188,647 |
Series 2021-SFR5 Class E2 | ||
100,000 | 2.36%, 07/17/2038 | 81,546 |
Series 2021-SFR6 Class E1 | ||
300,000 | 2.43%, 07/17/2038 | 247,441 |
Series 2021-SFR6 Class E2 | ||
155,000 | 2.53%, 07/17/2038 | 126,519 |
Series 2021-SFR7 Class E1 | ||
365,000 | 2.59%, 08/17/2040 | 276,536 |
Series 2021-SFR7 Class E2 | ||
100,000 | 2.64%, 08/17/2040 | 75,371 |
Series 2021-SFR9 Class E1 | ||
165,000 | 2.81%, 11/17/2040 | 126,062 |
Series 2021-SFR9 Class E2 | ||
115,000 | 3.01%, 11/17/2040 | 87,338 |
100,000 | Republic Finance Issuance Trust(a) Series 2021-A Class C 3.53%, 12/22/2031 | 85,503 |
275,631 | Santander Bank NA(a) Series 2021-1A Class B 1.83%, 12/15/2031 | 264,275 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Santander Drive Auto Receivables Trust | ||
Series 2019-3 Class D | ||
$ 6,440 | 2.68%, 10/15/2025 | $ 6,399 |
Series 2020-1 Class C | ||
172,462 | 4.11%, 12/15/2025 | 171,327 |
Series 2020-1 Class D | ||
390,000 | 5.35%, 03/15/2028 | 387,616 |
Series 2020-2 Class D | ||
210,000 | 2.22%, 09/15/2026 | 203,867 |
Series 2020-3 Class D | ||
5,000 | 1.64%, 11/16/2026 | 4,778 |
Series 2020-4 Class D | ||
40,000 | 1.48%, 01/15/2027 | 38,038 |
Series 2021-1 Class D | ||
2,500,000 | 1.13%, 11/16/2026 | 2,368,067 |
Series 2021-2 Class D | ||
1,100,000 | 1.35%, 07/15/2027 | 1,027,218 |
Series 2021-3 Class D | ||
1,030,000 | 1.33%, 09/15/2027 | 960,531 |
Series 2021-4 Class D | ||
2,655,000 | 1.67%, 10/15/2027 | 2,447,658 |
Series 2022-5 Class C | ||
1,100,000 | 4.74%, 10/16/2028 | 1,056,741 |
SCF Equipment Leasing LLC(a) | ||
Series 2021-1A Class D | ||
100,000 | 1.93%, 09/20/2030 | 86,744 |
Series 2022-1A Class D | ||
355,000 | 3.79%, 11/20/2031 | 306,134 |
Sierra Timeshare Receivables Funding LLC(a) | ||
Series 2019-2A Class C | ||
110,563 | 3.12%, 05/20/2036 | 102,526 |
Series 2019-3A Class C | ||
73,191 | 3.00%, 08/20/2036 | 68,034 |
Series 2021-1A Class C | ||
58,668 | 1.79%, 11/20/2037 | 53,451 |
822,303 | S-Jets Ltd(a) Series 2017-1 Class A 3.97%, 08/15/2042 | 615,691 |
SMB Private Education Loan Trust(a) | ||
Series 2020-A Class A2A | ||
688,873 | 2.23%, 09/15/2037 | 616,277 |
Series 2021-A Class A2A2 | ||
538,896 | 4.14%, 01/15/2053(c) 1-mo. LIBOR + 0.73% | 510,230 |
Series 2021-B Class B | ||
345,000 | 2.65%, 07/17/2051 | 268,888 |
Series 2021-D Class B | ||
330,000 | 2.31%, 03/17/2053 | 249,674 |
Series 2021-E Class B | ||
700,000 | 2.49%, 02/15/2051 | 522,004 |
130,000 | SoFi Consumer Loan Program Trust(a) Series 2021-1 Class D 2.04%, 09/25/2030 | 116,502 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
$ 100,000 | SoFi Professional Loan Program LLC(a)(d) Series 2017-A Class C 4.43%, 03/26/2040 | $ 86,450 |
987,537 | Taco Bell Funding LLC(a) Series 2021-1A Class A2II 2.29%, 08/25/2051 | 770,189 |
355,333 | Textainer Marine Containers VII Ltd(a) Series 2021-1A Class A 1.68%, 02/20/2046 | 293,514 |
380,325 | TIF Funding II LLC(a) Series 2021-1A Class A 1.65%, 02/20/2046 | 312,391 |
Toyota Auto Receivables Owner Trust | ||
Series 2019-D Class A3 | ||
3,929 | 1.92%, 01/16/2024 | 3,915 |
Series 2020-C Class A3 | ||
4,614 | 0.44%, 10/15/2024 | 4,532 |
Tricon American Homes Trust(a) | ||
Series 2019-SFR1 Class D | ||
5,000 | 3.20%, 03/17/2038 | 4,463 |
Series 2020-SFR2 Class E1 | ||
100,000 | 2.73%, 11/17/2039 | 80,269 |
Tricon Residential Trust(a) | ||
Series 2021-SFR1 Class E1 | ||
200,000 | 2.79%, 07/17/2038 | 167,863 |
Series 2021-SFR1 Class E2 | ||
535,000 | 2.89%, 07/17/2038 | 445,141 |
VCAT LLC(a)(b) | ||
Series 2021-NPL1 Class A1 | ||
220,396 | 2.29%, 12/26/2050 | 210,214 |
Series 2021-NPL5 Class A1 | ||
989,107 | 1.87%, 08/25/2051 | 899,417 |
Series 2021-NPL6 Class A1 | ||
1,305,703 | 1.92%, 09/25/2051 | 1,205,955 |
2,250,000 | Venture Ltd(a)(c) Series 2021-42A Class B 5.63%, 04/15/2034 3-mo. LIBOR + 1.55% | 2,040,525 |
179,542 | VOLT XCII LLC(a)(b) Series 2021-NPL1 Class A1 1.89%, 02/27/2051 | 161,931 |
477,238 | VOLT XCIII LLC(a)(b) Series 2021-NPL2 Class A1 1.89%, 02/27/2051 | 438,425 |
411,594 | VOLT XCIV LLC(a)(b) Series 2021-NPL3 Class A1 2.24%, 02/27/2051 | 356,876 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
$ 308,483 | VOLT XCVI LLC(a)(b) Series 2021-NPL5 Class A1 2.12%, 03/27/2051 | $ 280,297 |
777,853 | VOLT XCVII LLC(a)(b) Series 2021-NPL6 Class A1 2.24%, 04/25/2051 | 703,362 |
843,651 | WAVE Trust(a) Series 2017-1A Class A 3.84%, 11/15/2042 | 610,643 |
Wendy's Funding LLC(a) | ||
Series 2018-1A Class A2II | ||
166,687 | 3.88%, 03/15/2048 | 144,408 |
Series 2021-1A Class A2I | ||
523,375 | 2.37%, 06/15/2051 | 405,496 |
Westlake Automobile Receivables Trust(a) | ||
Series 2019-3A Class D | ||
8,777 | 2.72%, 11/15/2024 | 8,705 |
Series 2020-2A Class C | ||
500,000 | 2.01%, 07/15/2025 | 493,869 |
Series 2020-2A Class D | ||
600,000 | 2.76%, 01/15/2026 | 579,641 |
Series 2021-1A Class D | ||
1,030,000 | 1.23%, 04/15/2026 | 961,583 |
Series 2021-2A Class D | ||
535,000 | 1.23%, 12/15/2026 | 485,638 |
Series 2021-3A Class D | ||
1,060,000 | 2.12%, 01/15/2027 | 950,568 |
Series 2022-1A Class D | ||
1,700,000 | 3.49%, 03/15/2027 | 1,549,925 |
853,888 | Willis Engine Structured Trust VI(a) Series 2021-A Class A 3.10%, 05/15/2046 | 617,421 |
1,000,000 | World Omni Select Auto Trust Series 2021-A Class D 1.44%, 11/15/2027 | 896,524 |
TOTAL ASSET-BACKED SECURITIES — 10.23% (Cost $177,945,613) | $ 160,378,811 | |
CORPORATE BONDS AND NOTES | ||
Basic Materials — 1.55% | ||
400,000 | Alpek SAB de CV(a) 3.25%, 02/25/2031 | 305,898 |
Anglo American Capital PLC(a) | ||
400,000 | 4.50%, 03/15/2028 | 363,355 |
2,415,000 | 2.63%, 09/10/2030 | 1,852,722 |
425,000 | 2.88%, 03/17/2031 | 326,670 |
855,000 | Ashland LLC(a) 3.38%, 09/01/2031 | 668,935 |
1,350,000 | ATI Inc 5.88%, 12/01/2027 | 1,227,064 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Basic Materials — (continued) | ||
Braskem Netherlands Finance BV(a) | ||
$ 410,000 | 4.50%, 01/31/2030 | $ 332,682 |
415,000 | 5.88%, 01/31/2050 | 301,572 |
Celanese US Holdings LLC | ||
660,000 | 6.33%, 07/15/2029 | 613,939 |
490,000 | 6.38%, 07/15/2032(e) | 445,842 |
First Quantum Minerals Ltd(a) | ||
4,815,000 | 7.50%, 04/01/2025 | 4,670,550 |
200,000 | 6.88%, 03/01/2026 | 187,680 |
1,790,000 | 6.88%, 10/15/2027 | 1,664,391 |
1,070,000 | FMG Resources Pty Ltd(a)(e) 4.38%, 04/01/2031 | 850,436 |
Freeport-McMoRan Inc | ||
5,000 | 4.38%, 08/01/2028 | 4,511 |
1,685,000 | 4.25%, 03/01/2030 | 1,474,881 |
1,695,000 | 4.63%, 08/01/2030 | 1,498,500 |
1,180,000 | 5.40%, 11/14/2034 | 1,048,826 |
Glencore Funding LLC(a) | ||
5,000 | 4.00%, 03/27/2027 | 4,597 |
10,000 | 3.88%, 10/27/2027 | 9,000 |
35,000 | 4.88%, 03/12/2029 | 32,181 |
3,090,000 | 2.50%, 09/01/2030(e) | 2,377,308 |
2,010,000 | 2.85%, 04/27/2031 | 1,555,953 |
300,000 | 2.63%, 09/23/2031 | 224,933 |
635,000 | Novelis Corp 4.75%, 01/30/2030 | 539,461 |
958,000 | Orbia Advance Corp SAB de CV(a) 2.88%, 05/11/2031 | 707,548 |
1,280,000 | Suzano Austria GmbH 3.75%, 01/15/2031 | 1,024,000 |
130,000 | Volcan Cia Minera SAA(a) 4.38%, 02/11/2026 | 109,105 |
24,422,540 | ||
Communications — 4.99% | ||
4,895,000 | Amazon.com Inc 0.45%, 05/12/2024 | 4,590,363 |
515,000 | Block Communications Inc(a) 4.88%, 03/01/2028 | 447,550 |
CCO Holdings LLC / CCO Holdings Capital Corp | ||
3,000 | 5.50%, 05/01/2026(a) | 2,888 |
50,000 | 5.13%, 05/01/2027(a) | 46,324 |
505,000 | 4.50%, 08/15/2030(a) | 409,838 |
3,390,000 | 4.25%, 02/01/2031(a) | 2,678,100 |
140,000 | 4.75%, 02/01/2032(a) | 112,007 |
290,000 | 4.50%, 05/01/2032 | 229,100 |
2,890,000 | 4.25%, 01/15/2034(a) | 2,124,150 |
Charter Communications Operating LLC / Charter Communications Operating Capital | ||
785,000 | 2.80%, 04/01/2031 | 595,133 |
150,000 | 2.30%, 02/01/2032 | 107,006 |
190,000 | 4.40%, 04/01/2033 | 157,842 |
10,000 | 5.13%, 07/01/2049 | 7,374 |
4,130,000 | 4.80%, 03/01/2050 | 2,922,914 |
Principal Amount | Fair Value | |
Communications — (continued) | ||
$ 1,315,000 | 4.40%, 12/01/2061 | $ 833,807 |
2,235,000 | 3.95%, 06/30/2062 | 1,308,413 |
CommScope Inc(a) | ||
85,000 | 7.13%, 07/01/2028 | 71,989 |
1,780,000 | 4.75%, 09/01/2029 | 1,505,585 |
2,805,000 | CommScope Technologies LLC(a) 5.00%, 03/15/2027 | 2,270,956 |
CSC Holdings LLC(a) | ||
200,000 | 5.75%, 01/15/2030 | 153,000 |
10,375,000 | 4.63%, 12/01/2030 | 7,467,640 |
DISH DBS Corp | ||
5,765,000 | 5.25%, 12/01/2026(a) | 5,008,344 |
4,090,000 | 5.13%, 06/01/2029 | 2,747,041 |
Expedia Group Inc | ||
5,250,000 | 3.25%, 02/15/2030 | 4,231,066 |
485,000 | 2.95%, 03/15/2031(e) | 368,056 |
1,680,000 | Go Daddy Operating Co LLC / GD Finance Co Inc(a) 3.50%, 03/01/2029 | 1,393,274 |
iHeartCommunications Inc | ||
970,000 | 8.38%, 05/01/2027 | 871,344 |
840,000 | 5.25%, 08/15/2027(a) | 764,543 |
650,000 | 4.75%, 01/15/2028(a) | 567,125 |
Lamar Media Corp | ||
170,000 | 3.75%, 02/15/2028 | 149,192 |
650,000 | 4.00%, 02/15/2030(e) | 551,921 |
Netflix Inc | ||
165,000 | 4.88%, 04/15/2028 | 156,587 |
550,000 | 5.88%, 11/15/2028 | 545,875 |
1,030,000 | 6.38%, 05/15/2029 | 1,050,476 |
175,000 | 5.38%, 11/15/2029(a) | 166,250 |
3,510,000 | 4.88%, 06/15/2030(a)(e) | 3,250,216 |
435,000 | Nokia OYJ 4.38%, 06/12/2027 | 400,039 |
485,000 | Sirius XM Radio Inc(a) 5.00%, 08/01/2027 | 446,200 |
SoftBank Group Corp | ||
1,265,000 | 4.63%, 07/06/2028 | 1,008,837 |
340,000 | 5.25%, 07/06/2031 | 259,760 |
235,000 | Sprint Capital Corp 6.88%, 11/15/2028 | 242,515 |
Time Warner Cable LLC | ||
1,355,000 | 5.50%, 09/01/2041 | 1,063,431 |
4,475,000 | 4.50%, 09/15/2042 | 3,055,647 |
T-Mobile USA Inc | ||
450,000 | 2.40%, 03/15/2029 | 367,707 |
2,155,000 | 3.38%, 04/15/2029 | 1,865,907 |
2,245,000 | 3.88%, 04/15/2030 | 1,985,925 |
2,640,000 | 3.50%, 04/15/2031 | 2,219,730 |
810,000 | 2.70%, 03/15/2032 | 633,421 |
Uber Technologies Inc(a) | ||
250,000 | 8.00%, 11/01/2026 | 250,925 |
1,195,000 | 7.50%, 09/15/2027 | 1,194,724 |
2,115,000 | 6.25%, 01/15/2028(e) | 2,009,250 |
11,860,000 | 4.50%, 08/15/2029(e) | 10,166,392 |
1,485,000 | Virgin Media Finance PLC(a) 5.00%, 07/15/2030 | 1,190,061 |
78,223,760 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Consumer, Cyclical — 2.22% | ||
1011778 BC Unlimited Liability Co / New Red Finance Inc(a) | ||
$ 5,000 | 5.75%, 04/15/2025(e) | $ 4,981 |
325,000 | 3.88%, 01/15/2028 | 285,651 |
1,675,000 | 4.00%, 10/15/2030 | 1,367,219 |
1,365,000 | 7-Eleven Inc(a) 0.80%, 02/10/2024 | 1,287,248 |
880,000 | Allison Transmission Inc(a) 3.75%, 01/30/2031 | 702,025 |
American Airlines Pass Through Trust | ||
Series 2016-1 Class B | ||
4,873 | 5.25%, 01/15/2024 | 4,701 |
Series 2017-2 Class B | ||
2,725 | 3.70%, 10/15/2025 | 2,388 |
Series 2016-3 Class B | ||
16,742 | 3.75%, 10/15/2025 | 14,470 |
Series 2019-1 Class B | ||
19,063 | 3.85%, 02/15/2028 | 15,362 |
Series 2016-3 Class A | ||
137,068 | 3.25%, 10/15/2028 | 104,050 |
Series 2017-2 Class A | ||
3,782 | 3.60%, 10/15/2029 | 2,868 |
40,000 | AutoNation Inc 4.75%, 06/01/2030 | 34,442 |
10,000 | AutoZone Inc 3.63%, 04/15/2025 | 9,606 |
3,779 | British Airways Pass Through Trust(a) Series 2019-1 Class A 3.35%, 06/15/2029 | 3,202 |
Carnival Corp(a) | ||
1,260,000 | 5.75%, 03/01/2027 | 873,161 |
1,050,000 | 6.00%, 05/01/2029 | 696,431 |
915,000 | Ford Motor Co 3.25%, 02/12/2032 | 687,000 |
General Motors Co | ||
295,000 | 5.20%, 04/01/2045 | 227,615 |
1,345,000 | 5.40%, 04/01/2048 | 1,058,165 |
2,200,000 | 5.95%, 04/01/2049 | 1,862,618 |
General Motors Financial Co Inc | ||
60,000 | 5.70%, Perpetual(e)(f) | 51,000 |
35,000 | 5.75%, Perpetual(e)(f) | 28,697 |
585,000 | 1.05%, 03/08/2024 | 548,565 |
1,010,000 | Genm Capital Labuan Ltd(a) 3.88%, 04/19/2031 | 606,702 |
2,120,000 | Goodyear Tire & Rubber Co(e) 4.88%, 03/15/2027 | 1,929,200 |
Hilton Domestic Operating Co Inc(a) | ||
1,305,000 | 4.00%, 05/01/2031 | 1,090,912 |
110,000 | 3.63%, 02/15/2032 | 87,587 |
Hilton Grand Vacations Borrower Escrow LLC / Hilton Grand Vacations Borrower Esc(a) | ||
500,000 | 5.00%, 06/01/2029 | 428,815 |
Principal Amount | Fair Value | |
Consumer, Cyclical — (continued) | ||
$ 535,000 | 4.88%, 07/01/2031 | $ 437,362 |
1,429,424 | JetBlue Pass Through Trust Series 2020-1 Class A 4.00%, 11/15/2032 | 1,258,753 |
365,000 | Lithia Motors Inc(a) 3.88%, 06/01/2029 | 294,080 |
Marriott International Inc | ||
5,000 | 5.75%, 05/01/2025 | 5,045 |
175,000 | 4.63%, 06/15/2030 | 156,984 |
1,310,000 | 2.85%, 04/15/2031 | 1,019,262 |
715,000 | Marriott Ownership Resorts Inc(a) 4.50%, 06/15/2029 | 598,616 |
NCL Corp Ltd(a) | ||
885,000 | 5.88%, 03/15/2026 | 724,594 |
930,000 | 5.88%, 02/15/2027 | 830,025 |
515,000 | NCL Finance Ltd(a) 6.13%, 03/15/2028 | 400,412 |
230,000 | PulteGroup Inc 6.00%, 02/15/2035 | 204,404 |
Royal Caribbean Cruises Ltd(a) | ||
220,000 | 4.25%, 07/01/2026 | 174,911 |
1,805,000 | 5.50%, 04/01/2028 | 1,389,850 |
Scientific Games International Inc(a) | ||
1,735,000 | 7.00%, 05/15/2028 | 1,679,012 |
35,000 | 7.25%, 11/15/2029 | 33,835 |
390,000 | Tapestry Inc 3.05%, 03/15/2032 | 286,938 |
3,240,000 | Target Corp 2.25%, 04/15/2025 | 3,044,828 |
Travel + Leisure Co | ||
120,000 | 6.63%, 07/31/2026(a) | 116,845 |
65,000 | 6.00%, 04/01/2027 | 60,691 |
2,260,000 | 4.50%, 12/01/2029(a) | 1,841,900 |
875,000 | 4.63%, 03/01/2030(a) | 706,313 |
645,000 | 4.63%, 03/01/2030 | 520,653 |
156,210 | United Airlines Pass Through Trust Series 2020-1 Class B 4.88%, 01/15/2026 | 145,275 |
Warnermedia Holdings Inc(a) | ||
595,000 | 4.05%, 03/15/2029 | 505,541 |
2,390,000 | 4.28%, 03/15/2032 | 1,930,518 |
Yum! Brands Inc | ||
1,035,000 | 4.75%, 01/15/2030(a) | 925,031 |
1,105,000 | 3.63%, 03/15/2031 | 886,762 |
680,000 | 4.63%, 01/31/2032 | 581,420 |
34,774,541 | ||
Consumer, Non-Cyclical — 2.73% | ||
1,275,000 | Adani Ports & Special Economic Zone Ltd(a) 4.20%, 08/04/2027 | 1,028,631 |
Ashtead Capital Inc(a) | ||
470,000 | 4.25%, 11/01/2029 | 408,762 |
290,000 | 5.50%, 08/11/2032 | 262,134 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Consumer, Non-Cyclical — (continued) | ||
Bausch Health Cos Inc(a) | ||
$ 130,000 | 7.00%, 01/15/2028 | $ 52,000 |
660,000 | 5.00%, 01/30/2028 | 255,902 |
335,000 | 4.88%, 06/01/2028 | 205,188 |
70,000 | 5.00%, 02/15/2029 | 27,325 |
80,000 | 6.25%, 02/15/2029 | 31,200 |
470,000 | 5.25%, 01/30/2030 | 182,125 |
1,535,000 | 5.25%, 02/15/2031 | 602,487 |
530,000 | Block Inc 3.50%, 06/01/2031 | 426,650 |
230,000 | Catalent Pharma Solutions Inc(a) 3.13%, 02/15/2029 | 188,209 |
Centene Corp | ||
380,000 | 3.00%, 10/15/2030 | 305,900 |
3,900,000 | 2.50%, 03/01/2031 | 2,993,250 |
1,030,000 | 2.63%, 08/01/2031 | 788,187 |
Charles River Laboratories International Inc(a) | ||
155,000 | 3.75%, 03/15/2029 | 134,075 |
610,000 | 4.00%, 03/15/2031 | 513,149 |
1,725,000 | Cigna Corp 4.38%, 10/15/2028 | 1,623,777 |
CVS Pass Through Trust(a) | ||
Series 2013 | ||
783,911 | 4.70%, 01/10/2036 | 710,322 |
Series 2014 | ||
273,637 | 4.16%, 08/11/2036(e) | 237,874 |
140,000 | Darling Ingredients Inc(a) 6.00%, 06/15/2030 | 134,750 |
215,000 | Element Fleet Management Corp(a) 1.60%, 04/06/2024 | 202,272 |
40,000 | Encompass Health Corp 4.75%, 02/01/2030 | 34,100 |
Gartner Inc(a) | ||
140,000 | 3.63%, 06/15/2029 | 119,000 |
895,000 | 3.75%, 10/01/2030 | 751,796 |
3,750,000 | GlaxoSmithKline Capital PLC 0.53%, 10/01/2023 | 3,603,924 |
Global Payments Inc | ||
505,000 | 5.30%, 08/15/2029 | 475,654 |
320,000 | 2.90%, 11/15/2031 | 244,209 |
1,085,000 | 5.40%, 08/15/2032 | 1,001,489 |
HCA Inc | ||
1,850,000 | 4.13%, 06/15/2029 | 1,632,456 |
1,675,000 | 3.50%, 09/01/2030 | 1,387,570 |
1,810,000 | Hologic Inc(a) 3.25%, 02/15/2029 | 1,538,138 |
JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc(a) | ||
660,000 | 3.00%, 02/02/2029 | 534,708 |
435,000 | 3.75%, 12/01/2031 | 341,195 |
40,000 | Lamb Weston Holdings Inc(a) 4.88%, 05/15/2028 | 37,183 |
790,000 | Molina Healthcare Inc(a) 3.88%, 05/15/2032 | 658,860 |
1,310,000 | Natura Cosmeticos SA(a)(e) 4.13%, 05/03/2028 | 1,020,123 |
Principal Amount | Fair Value | |
Consumer, Non-Cyclical — (continued) | ||
$ 1,250,000 | NBM US Holdings Inc(a) 7.00%, 05/14/2026 | $ 1,206,884 |
Pilgrim's Pride Corp(a) | ||
265,000 | 5.88%, 09/30/2027 | 259,022 |
630,000 | 4.25%, 04/15/2031 | 524,671 |
1,905,000 | 3.50%, 03/01/2032 | 1,458,716 |
Post Holdings Inc | ||
2,000 | 5.75%, 03/01/2027(a) | 1,933 |
14,000 | 5.75%, 03/01/2027 | 13,533 |
635,000 | 4.63%, 04/15/2030(a) | 535,823 |
910,000 | 4.50%, 09/15/2031(a) | 752,752 |
1,000,000 | S&P Global Inc(a) 4.25%, 05/01/2029 | 932,715 |
1,020,000 | Smithfield Foods Inc(a) 3.00%, 10/15/2030 | 775,109 |
Tenet Healthcare Corp(a) | ||
5,000 | 4.88%, 01/01/2026 | 4,725 |
560,000 | 6.25%, 02/01/2027 | 534,419 |
645,000 | 4.63%, 06/15/2028 | 565,984 |
90,000 | 6.13%, 10/01/2028 | 77,895 |
125,000 | Teva Pharmaceutical Finance Co LLC 6.15%, 02/01/2036 | 102,439 |
Teva Pharmaceutical Finance Netherlands III BV | ||
6,045,000 | 3.15%, 10/01/2026 | 5,108,025 |
575,000 | 4.75%, 05/09/2027 | 507,438 |
275,000 | 5.13%, 05/09/2029(e) | 236,005 |
3,420,000 | 4.10%, 10/01/2046 | 2,069,497 |
1,445,000 | TriNet Group Inc(a) 3.50%, 03/01/2029 | 1,197,544 |
1,300,000 | Unilever Capital Corp 2.60%, 05/05/2024 | 1,255,809 |
42,815,512 | ||
Energy — 2.28% | ||
Aker BP ASA(a) | ||
835,000 | 2.00%, 07/15/2026 | 725,035 |
3,075,000 | 4.00%, 01/15/2031 | 2,607,373 |
605,000 | 3.10%, 07/15/2031 | 475,343 |
Cheniere Corpus Christi Holdings LLC | ||
15,000 | 5.13%, 06/30/2027 | 14,634 |
1,075,000 | 3.70%, 11/15/2029 | 936,265 |
Continental Resources Inc(a) | ||
6,695,000 | 5.75%, 01/15/2031 | 6,070,059 |
3,170,000 | 2.88%, 04/01/2032 | 2,312,549 |
DCP Midstream Operating LP | ||
220,000 | 5.13%, 05/15/2029 | 206,004 |
2,000,000 | 3.25%, 02/15/2032 | 1,592,307 |
340,000 | Diamondback Energy Inc(e) 3.13%, 03/24/2031 | 277,839 |
855,000 | Ecopetrol SA(e) 4.63%, 11/02/2031 | 589,234 |
Energean Israel Finance Ltd(a) | ||
480,000 | 5.38%, 03/30/2028 | 421,200 |
625,000 | 5.88%, 03/30/2031 | 528,125 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Energy — (continued) | ||
$ 1,085,000 | Energy Transfer LP 3.75%, 05/15/2030 | $ 922,243 |
445,000 | EnLink Midstream Partners LP 5.45%, 06/01/2047 | 338,107 |
1,230,000 | EQM Midstream Partners LP 5.50%, 07/15/2028 | 1,098,550 |
EQT Corp | ||
330,000 | 6.13%, 02/01/2025 | 330,815 |
450,000 | 5.68%, 10/01/2025 | 444,833 |
220,000 | 3.13%, 05/15/2026(a) | 199,648 |
2,505,000 | 3.90%, 10/01/2027 | 2,251,419 |
310,000 | 5.70%, 04/01/2028 | 301,661 |
540,000 | 5.00%, 01/15/2029 | 501,639 |
940,000 | 3.63%, 05/15/2031(a) | 781,967 |
Hess Midstream Operations LP(a) | ||
590,000 | 5.63%, 02/15/2026 | 578,654 |
265,000 | 4.25%, 02/15/2030 | 226,615 |
925,000 | Leviathan Bond Ltd(a) 6.13%, 06/30/2025 | 878,123 |
165,000 | NGPL PipeCo LLC(a) 4.88%, 08/15/2027 | 153,313 |
Occidental Petroleum Corp | ||
135,000 | 5.55%, 03/15/2026 | 137,025 |
910,000 | 8.88%, 07/15/2030 | 1,032,850 |
80,000 | 6.63%, 09/01/2030 | 83,204 |
85,000 | 6.13%, 01/01/2031 | 85,224 |
40,000 | 7.50%, 05/01/2031 | 43,000 |
790,000 | 7.88%, 09/15/2031 | 859,765 |
Ovintiv Inc | ||
125,000 | 8.13%, 09/15/2030 | 133,915 |
30,000 | 7.20%, 11/01/2031 | 30,626 |
170,000 | 7.38%, 11/01/2031 | 176,213 |
1,515,000 | 6.50%, 08/15/2034 | 1,471,458 |
470,000 | 6.63%, 08/15/2037 | 459,676 |
45,000 | 6.50%, 02/01/2038 | 42,769 |
75,000 | Petroleos Mexicanos 5.95%, 01/28/2031 | 54,051 |
Plains All American Pipeline LP / PAA Finance Corp | ||
650,000 | 3.55%, 12/15/2029 | 541,635 |
585,000 | 4.30%, 01/31/2043 | 393,110 |
815,000 | Sabine Pass Liquefaction LLC 4.50%, 05/15/2030 | 743,352 |
215,000 | Southwestern Energy Co 4.75%, 02/01/2032 | 185,588 |
90,000 | Targa Resources Corp 5.20%, 07/01/2027 | 86,808 |
Targa Resources Partners LP / Targa Resources Partners Finance Corp | ||
270,000 | 5.50%, 03/01/2030 | 249,245 |
270,000 | 4.88%, 02/01/2031 | 238,224 |
225,000 | 4.00%, 01/15/2032 | 184,632 |
1,475,000 | Valero Energy Partners LP 4.50%, 03/15/2028 | 1,388,215 |
Principal Amount | Fair Value | |
Energy — (continued) | ||
Western Midstream Operating LP | ||
$ 255,000 | 4.30%, 02/01/2030 | $ 224,349 |
125,000 | 5.45%, 04/01/2044 | 101,371 |
850,000 | 5.30%, 03/01/2048 | 686,375 |
95,000 | 5.50%, 08/15/2048 | 76,622 |
335,000 | 5.50%, 02/01/2050 | 260,791 |
35,733,647 | ||
Financial — 10.74% | ||
AerCap Ireland Capital Designated Activity Co / AerCap Global Aviation Trust | ||
1,900,000 | 3.88%, 01/23/2028 | 1,631,389 |
930,000 | 3.00%, 10/29/2028 | 751,320 |
1,165,000 | 3.30%, 01/30/2032 | 874,392 |
980,000 | Agile Group Holdings Ltd 6.05%, 10/13/2025 | 183,293 |
1,320,000 | AIG Global Funding(a) 0.65%, 06/17/2024 | 1,226,312 |
Air Lease Corp | ||
825,000 | 4.65%, Perpetual(f) | 687,556 |
10,000 | 3.38%, 07/01/2025 | 9,256 |
825,000 | 3.00%, 02/01/2030 | 641,882 |
3,935,000 | 3.13%, 12/01/2030 | 3,051,578 |
Aircastle Ltd | ||
345,000 | 5.25%, Perpetual(a)(f) | 258,008 |
20,000 | 4.25%, 06/15/2026 | 17,652 |
Ally Financial Inc | ||
3,570,000 | 4.70%, Perpetual(f) | 2,461,463 |
200,000 | 4.63%, 03/30/2025 | 192,416 |
1,960,000 | 5.75%, 11/20/2025 | 1,885,675 |
615,000 | 2.20%, 11/02/2028 | 468,977 |
2,970,000 | 8.00%, 11/01/2031 | 3,046,065 |
1,475,000 | American Express Co 5.85%, 11/05/2027 | 1,473,938 |
185,000 | American Homes 4 Rent LP REIT 2.38%, 07/15/2031 | 136,390 |
Antares Holdings LP(a) | ||
260,000 | 3.95%, 07/15/2026 | 221,248 |
1,385,000 | 2.75%, 01/15/2027 | 1,093,629 |
2,160,000 | 3.75%, 07/15/2027 | 1,720,822 |
Ares Capital Corp | ||
1,190,000 | 2.88%, 06/15/2028 | 929,289 |
1,800,000 | 3.20%, 11/15/2031(e) | 1,260,161 |
Athene Global Funding(a) | ||
3,360,000 | 1.72%, 01/07/2025 | 3,079,375 |
980,000 | 1.61%, 06/29/2026 | 832,434 |
230,000 | 2.55%, 11/19/2030 | 172,222 |
2,915,000 | Athene Holding Ltd 3.50%, 01/15/2031 | 2,285,636 |
Aviation Capital Group LLC(a) | ||
450,000 | 5.50%, 12/15/2024 | 432,963 |
710,000 | 1.95%, 01/30/2026 | 593,043 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Financial — (continued) | ||
$ 225,000 | Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand(a) 5.38%, 04/17/2025 | $ 218,250 |
Banco Santander SA | ||
2,200,000 | 0.70%, 06/30/2024 | 2,112,431 |
1,200,000 | 2.75%, 12/03/2030 | 830,733 |
Bank of America Corp | ||
75,000 | 3.00%, 12/20/2023 | 74,730 |
2,590,000 | 0.52%, 06/14/2024 | 2,500,198 |
295,000 | 0.81%, 10/24/2024 | 279,890 |
3,975,000 | 4.18%, 11/25/2027 | 3,641,078 |
Barclays PLC | ||
1,240,000 | 4.38%, Perpetual(f) | 823,000 |
3,000,000 | 2.28%, 11/24/2027 | 2,482,177 |
2,555,000 | 3.56%, 09/23/2035 | 1,801,504 |
1,010,000 | Barings BDC Inc(a) 3.30%, 11/23/2026 | 834,330 |
2,745,000 | Blackstone Secured Lending Fund 2.13%, 02/15/2027 | 2,215,454 |
BNP Paribas SA(a) | ||
2,370,000 | 1.68%, 06/30/2027 | 1,985,993 |
2,035,000 | 2.59%, 01/20/2028 | 1,713,048 |
Brixmor Operating Partnership LP REIT | ||
60,000 | 2.25%, 04/01/2028 | 47,942 |
25,000 | 4.13%, 05/15/2029 | 21,416 |
1,795,000 | 4.05%, 07/01/2030 | 1,489,030 |
Central China Real Estate Ltd | ||
200,000 | 7.25%, 04/24/2023 | 54,000 |
615,000 | 7.25%, 07/16/2024 | 77,503 |
200,000 | 7.25%, 08/13/2024 | 25,393 |
205,000 | 7.50%, 07/14/2025 | 21,243 |
400,000 | CIFI Holdings Group Co Ltd 6.00%, 07/16/2025 | 27,568 |
Citigroup Inc | ||
2,030,000 | 3.50%, 05/15/2023 | 2,012,096 |
4,230,000 | 2.01%, 01/25/2026 | 3,864,476 |
3,340,000 | 3.07%, 02/24/2028 | 2,944,579 |
155,000 | CNO Financial Group Inc 5.25%, 05/30/2029 | 141,669 |
145,000 | Corporate Office Properties LP REIT 2.75%, 04/15/2031 | 104,771 |
600,000 | Country Garden Holdings Co Ltd 3.30%, 01/12/2031 | 42,677 |
3,110,000 | Credit Agricole SA 4.00%, 01/10/2033 | 2,606,930 |
945,000 | Credit Suisse AG 3.70%, 02/21/2025 | 864,379 |
Credit Suisse Group AG(a) | ||
585,000 | 2.19%, 06/05/2026 | 493,008 |
1,585,000 | 6.37%, 07/15/2026 | 1,474,660 |
1,545,000 | 6.44%, 08/11/2028 | 1,394,488 |
250,000 | 3.87%, 01/12/2029 | 199,981 |
500,000 | 6.54%, 08/12/2033 | 435,241 |
Principal Amount | Fair Value | |
Financial — (continued) | ||
$ 3,010,000 | Crown Castle Inc REIT 2.50%, 07/15/2031 | $ 2,315,978 |
355,000 | Danske Bank A/S(a) 5.38%, 01/12/2024 | 349,844 |
Deutsche Bank AG | ||
1,900,000 | 1.45%, 04/01/2025 | 1,732,070 |
745,000 | 3.55%, 09/18/2031 | 554,438 |
2,855,000 | 3.73%, 01/14/2032 | 2,011,117 |
200,000 | 3.74%, 01/07/2033 | 136,156 |
395,000 | EPR Properties REIT 3.60%, 11/15/2031 | 266,664 |
2,400,000 | Equinix Inc REIT(e) 1.45%, 05/15/2026 | 2,062,858 |
20,000 | Fidelity & Guaranty Life Holdings Inc(a) 5.50%, 05/01/2025 | 19,550 |
4,590,000 | Fidelity National Financial Inc 3.40%, 06/15/2030 | 3,681,984 |
FS KKR Capital Corp | ||
565,000 | 3.40%, 01/15/2026 | 497,423 |
1,110,000 | 3.13%, 10/12/2028 | 850,115 |
960,000 | Global Atlantic Finance Co(a) 4.40%, 10/15/2029 | 786,699 |
620,000 | GLP Capital LP / GLP Financing II Inc REIT 3.25%, 01/15/2032 | 462,154 |
Goldman Sachs Group Inc | ||
2,895,000 | 0.63%, 11/17/2023 | 2,887,566 |
2,580,000 | 0.66%, 09/10/2024 | 2,456,009 |
4,255,000 | 1.76%, 01/24/2025 | 4,021,103 |
13,000 | Healthpeak Properties Inc REIT 3.40%, 02/01/2025 | 12,397 |
Icahn Enterprises LP / Icahn Enterprises Finance Corp | ||
10,000 | 4.75%, 09/15/2024 | 9,731 |
10,000 | 6.25%, 05/15/2026 | 9,605 |
1,315,000 | 5.25%, 05/15/2027 | 1,211,628 |
3,175,000 | 4.38%, 02/01/2029 | 2,650,712 |
215,000 | Intesa Sanpaolo SpA(a) 4.20%, 06/01/2032 | 145,541 |
Iron Mountain Inc REIT(a) | ||
430,000 | 5.00%, 07/15/2028 | 384,678 |
2,195,000 | 5.25%, 07/15/2030 | 1,893,874 |
JPMorgan Chase & Co | ||
1,340,000 | 1.58%, 04/22/2027 | 1,152,471 |
4,115,000 | 2.95%, 02/24/2028 | 3,620,997 |
Kaisa Group Holdings Ltd(g) | ||
2,215,000 | 9.38%, 06/30/2024 | 149,513 |
400,000 | 10.50%, 01/15/2025 | 24,575 |
2,310,000 | 11.25%, 04/16/2025 | 153,038 |
200,000 | 9.95%, 07/23/2025 | 12,800 |
200,000 | 11.70%, 11/11/2025 | 13,800 |
200,000 | 11.65%, 06/01/2026 | 12,669 |
30,000 | Kreditanstalt fuer Wiederaufbau 0.25%, 10/19/2023 | 28,750 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Financial — (continued) | ||
Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp REIT(a) | ||
$ 310,000 | 5.25%, 10/01/2025 | $ 285,891 |
895,000 | 4.25%, 02/01/2027 | 751,675 |
Logan Group Co Ltd | ||
605,000 | 4.25%, 07/12/2025 | 46,317 |
405,000 | 4.85%, 12/14/2026 | 30,745 |
Morgan Stanley | ||
1,910,000 | 0.53%, 01/25/2024 | 1,881,401 |
2,755,000 | 0.79%, 01/22/2025 | 2,571,639 |
4,370,000 | 2.63%, 02/18/2026 | 4,050,202 |
2,145,000 | 4.35%, 09/08/2026 | 2,042,436 |
2,815,000 | 2.48%, 01/21/2028 | 2,433,138 |
360,000 | Nasdaq Inc 0.45%, 12/21/2022 | 357,904 |
1,140,000 | National Securities Clearing Corp(a)(e) 0.40%, 12/07/2023 | 1,085,088 |
1,360,000 | Nationstar Mortgage Holdings Inc(a) 5.75%, 11/15/2031 | 1,043,282 |
1,580,000 | Nationwide Building Society(a) 0.55%, 01/22/2024 | 1,482,234 |
NatWest Group PLC | ||
1,280,000 | 1.64%, 06/14/2027 | 1,063,486 |
845,000 | 5.52%, 09/30/2028 | 787,921 |
Navient Corp | ||
57,000 | 7.25%, 09/25/2023 | 57,168 |
2,210,000 | 5.00%, 03/15/2027 | 1,862,710 |
720,000 | 5.63%, 08/01/2033 | 507,308 |
1,840,000 | New York Life Global Funding(a) 0.85%, 01/15/2026 | 1,620,202 |
575,000 | Oaktree Specialty Lending Corp 2.70%, 01/15/2027 | 476,837 |
OneMain Finance Corp | ||
1,330,000 | 5.38%, 11/15/2029(e) | 1,090,600 |
915,000 | 4.00%, 09/15/2030 | 690,825 |
Owl Rock Capital Corp | ||
753,000 | 2.63%, 01/15/2027 | 602,845 |
1,425,000 | 2.88%, 06/11/2028 | 1,075,026 |
1,345,000 | Owl Rock Technology Finance Corp 2.50%, 01/15/2027 | 1,080,675 |
10,000 | Regency Centers LP REIT 2.95%, 09/15/2029 | 8,123 |
110,000 | Retail Opportunity Investments Partnership LP REIT 4.00%, 12/15/2024 | 104,837 |
Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc | ||
3,565,000 | 2.88%, 10/15/2026(a) | 2,974,743 |
220,000 | 3.63%, 03/01/2029(a) | 170,500 |
220,000 | 3.63%, 03/01/2029 | 170,500 |
5,590,000 | 3.88%, 03/01/2031(a) | 4,156,165 |
Principal Amount | Fair Value | |
Financial — (continued) | ||
$ 4,780,000 | 4.00%, 10/15/2033(a) | $ 3,338,687 |
Santander Holdings USA Inc | ||
15,000 | 3.50%, 06/07/2024 | 14,384 |
1,255,000 | 3.24%, 10/05/2026 | 1,111,598 |
2,340,000 | SBA Communications Corp REIT 3.13%, 02/01/2029 | 1,891,258 |
Shimao Group Holdings Ltd | ||
200,000 | 6.13%, 02/21/2024(g) | 12,000 |
1,300,000 | 5.60%, 07/15/2026 | 58,833 |
200,000 | 5.20%, 01/16/2027(g) | 11,000 |
410,000 | 3.45%, 01/11/2031(g) | 12,921 |
600,000 | Sino-Ocean Land Treasure IV Ltd 4.75%, 01/14/2030 | 54,393 |
5,000 | Sirius International Group Ltd(a) 4.60%, 11/01/2026 | 4,442 |
400,000 | SITE Centers Corp REIT 4.70%, 06/01/2027 | 369,444 |
Societe Generale SA(a) | ||
670,000 | 4.75%, 11/24/2025 | 616,277 |
2,385,000 | 3.65%, 07/08/2035 | 1,746,143 |
15,000 | Spirit Realty LP REIT 3.40%, 01/15/2030 | 11,976 |
Standard Chartered PLC(a) | ||
810,000 | 4.64%, 04/01/2031 | 685,250 |
3,375,000 | 3.27%, 02/18/2036 | 2,352,849 |
1,755,000 | Stewart Information Services Corp 3.60%, 11/15/2031 | 1,319,022 |
295,000 | Sumitomo Mitsui Financial Group Inc 0.51%, 01/12/2024 | 277,968 |
Sunac China Holdings Ltd(g) | ||
200,000 | 5.95%, 04/26/2024 | 11,527 |
580,000 | 6.50%, 01/10/2025 | 31,944 |
790,000 | 7.00%, 07/09/2025 | 43,450 |
410,000 | 6.50%, 01/26/2026 | 22,611 |
Synchrony Bank | ||
640,000 | 5.40%, 08/22/2025 | 618,657 |
1,300,000 | 5.63%, 08/23/2027 | 1,225,433 |
205,000 | Synchrony Financial 4.38%, 03/19/2024 | 200,411 |
Times China Holdings Ltd | ||
810,000 | 6.20%, 03/22/2026(g) | 45,443 |
200,000 | 5.75%, 01/14/2027 | 9,861 |
UniCredit SpA(a) | ||
210,000 | 1.98%, 06/03/2027 | 171,792 |
1,045,000 | 5.86%, 06/19/2032 | 865,816 |
200,000 | 5.46%, 06/30/2035 | 149,016 |
2,145,000 | US Bancorp 2.22%, 01/27/2028 | 1,872,538 |
VICI Properties LP / VICI Note Co Inc REIT(a) | ||
745,000 | 5.63%, 05/01/2024 | 735,509 |
915,000 | 4.63%, 06/15/2025 | 857,545 |
1,055,000 | 4.50%, 09/01/2026 | 960,101 |
1,275,000 | 4.25%, 12/01/2026 | 1,161,359 |
890,000 | 3.88%, 02/15/2029 | 749,415 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Financial — (continued) | ||
$ 195,000 | Welltower Inc REIT 4.25%, 04/01/2026 | $ 184,562 |
Yuzhou Group Holdings Co Ltd(g) | ||
625,000 | 7.70%, 02/20/2025 | 17,662 |
310,000 | 8.30%, 05/27/2025 | 8,913 |
205,000 | 7.85%, 08/12/2026 | 5,898 |
400,000 | 6.35%, 01/13/2027 | 11,621 |
168,464,709 | ||
Industrial — 1.39% | ||
Avnet Inc | ||
890,000 | 4.63%, 04/15/2026 | 843,998 |
410,000 | 5.50%, 06/01/2032 | 366,247 |
Boeing Co | ||
1,900,000 | 2.20%, 02/04/2026 | 1,679,020 |
5,000 | 2.25%, 06/15/2026 | 4,376 |
4,285,000 | 2.95%, 02/01/2030 | 3,432,623 |
150,000 | 5.15%, 05/01/2030 | 138,598 |
235,000 | 3.63%, 02/01/2031 | 195,108 |
5,000 | 3.38%, 06/15/2046 | 2,999 |
5,000 | 3.63%, 03/01/2048 | 3,028 |
2,955,000 | 3.75%, 02/01/2050 | 1,890,716 |
Cemex SAB de CV(a) | ||
1,295,000 | 5.13%, Perpetual(f) | 1,069,087 |
905,000 | 5.20%, 09/17/2030 | 769,744 |
2,895,000 | 3.88%, 07/11/2031 | 2,203,573 |
Embraer Netherlands Finance BV | ||
5,000 | 5.05%, 06/15/2025 | 4,731 |
1,260,000 | 5.40%, 02/01/2027 | 1,151,689 |
1,046,000 | GE Capital International Funding Co Unlimited Co 4.42%, 11/15/2035 | 922,877 |
200,000 | GMR Hyderabad International Airport Ltd(a) 4.25%, 10/27/2027 | 156,600 |
5,000 | Huntington Ingalls Industries Inc 3.84%, 05/01/2025 | 4,760 |
910,000 | IHS Holding Ltd(a) 5.63%, 11/29/2026 | 685,412 |
Jabil Inc | ||
660,000 | 1.70%, 04/15/2026 | 572,263 |
2,625,000 | 3.00%, 01/15/2031 | 2,040,203 |
515,000 | JELD-WEN Inc(a) 4.88%, 12/15/2027 | 384,128 |
405,000 | Sensata Technologies BV(a) 4.00%, 04/15/2029 | 341,091 |
790,000 | Sensata Technologies Inc(a) 3.75%, 02/15/2031 | 629,037 |
1,215,000 | TD SYNNEX Corp 1.75%, 08/09/2026 | 1,026,260 |
540,000 | TopBuild Corp(a) 4.13%, 02/15/2032 | 422,806 |
905,000 | TransDigm Inc(a) 6.25%, 03/15/2026 | 892,701 |
21,833,675 |
Principal Amount | Fair Value | |
Technology — 1.63% | ||
Broadcom Inc | ||
$ 1,370,000 | 4.15%, 11/15/2030 | $ 1,178,299 |
820,000 | 2.60%, 02/15/2033(a) | 582,885 |
825,000 | 3.14%, 11/15/2035(a) | 572,281 |
1,070,000 | 3.19%, 11/15/2036(a) | 729,808 |
CDW LLC / CDW Finance Corp | ||
605,000 | 2.67%, 12/01/2026 | 520,317 |
165,000 | 4.25%, 04/01/2028 | 145,398 |
700,000 | 3.25%, 02/15/2029 | 572,257 |
2,860,000 | 3.57%, 12/01/2031 | 2,246,370 |
2,615,000 | Entegris Escrow Corp(a) 4.75%, 04/15/2029 | 2,310,532 |
1,010,000 | Fidelity National Information Services Inc 5.10%, 07/15/2032 | 950,678 |
Marvell Technology Inc | ||
545,000 | 2.45%, 04/15/2028 | 445,702 |
465,000 | 2.95%, 04/15/2031 | 360,844 |
Microchip Technology Inc | ||
310,000 | 4.33%, 06/01/2023 | 308,001 |
840,000 | 0.98%, 09/01/2024 | 770,891 |
Micron Technology Inc | ||
5,000 | 5.33%, 02/06/2029 | 4,635 |
380,000 | 6.75%, 11/01/2029 | 380,218 |
3,760,000 | 4.66%, 02/15/2030 | 3,355,567 |
325,000 | MSCI Inc(a) 3.25%, 08/15/2033 | 251,241 |
NXP BV / NXP Funding LLC / NXP USA Inc | ||
15,000 | 3.15%, 05/01/2027 | 13,268 |
290,000 | 4.40%, 06/01/2027 | 271,876 |
1,320,000 | Open Text Holdings Inc(a) 4.13%, 02/15/2030 | 1,051,050 |
2,060,000 | Oracle Corp 3.95%, 03/25/2051 | 1,347,675 |
950,000 | Qorvo Inc(a) 3.38%, 04/01/2031 | 714,875 |
2,710,000 | Salesforce Inc 0.63%, 07/15/2024 | 2,524,109 |
Seagate HDD Cayman | ||
220,000 | 4.09%, 06/01/2029 | 176,183 |
135,000 | 3.38%, 07/15/2031 | 96,356 |
140,000 | Skyworks Solutions Inc 1.80%, 06/01/2026 | 119,412 |
335,000 | SS&C Technologies Inc(a) 5.50%, 09/30/2027 | 311,480 |
Western Digital Corp | ||
1,590,000 | 4.75%, 02/15/2026 | 1,468,969 |
1,965,000 | 2.85%, 02/01/2029 | 1,519,299 |
355,000 | 3.10%, 02/01/2032 | 245,813 |
25,546,289 | ||
Utilities — 0.46% | ||
AES Corp | ||
605,000 | 3.95%, 07/15/2030(a) | 512,011 |
255,000 | 2.45%, 01/15/2031 | 192,294 |
2,855,000 | Calpine Corp(a) 3.75%, 03/01/2031 | 2,339,029 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Utilities — (continued) | ||
$ 285,000 | Edison International 4.95%, 04/15/2025 | $ 280,284 |
5,000 | IPALCO Enterprises Inc 4.25%, 05/01/2030 | 4,298 |
NRG Energy Inc(a) | ||
395,000 | 4.45%, 06/15/2029 | 348,996 |
490,000 | 5.25%, 06/15/2029 | 444,675 |
2,070,000 | 3.63%, 02/15/2031 | 1,647,244 |
Pacific Gas & Electric Co | ||
525,000 | 5.45%, 06/15/2027 | 495,034 |
100,000 | 3.25%, 06/01/2031 | 77,821 |
1,130,000 | 4.30%, 03/15/2045 | 761,183 |
210,000 | 4.25%, 03/15/2046 | 139,754 |
10,000 | Vistra Operations Co LLC(a) 3.70%, 01/30/2027 | 8,940 |
7,251,563 | ||
TOTAL CORPORATE BONDS AND NOTES — 27.99% (Cost $542,023,408) | $ 439,066,236 | |
CONVERTIBLE BONDS | ||
Communications — 0.64% | ||
25,000 | Cable One Inc(h) 8.55%, 03/15/2026 | 19,400 |
DISH Network Corp | ||
2,330,000 | 15.53%, 12/15/2025(h) | 1,568,556 |
6,130,000 | 3.38%, 08/15/2026 | 4,238,895 |
1,245,000 | Snap Inc(h) 10.05%, 05/01/2027 | 857,182 |
1,115,000 | Spotify USA Inc(h) 7.69%, 03/15/2026 | 885,310 |
295,000 | Twitter Inc(h) 0.45%, 03/15/2026 | 290,575 |
2,615,000 | Uber Technologies Inc(h) 6.75%, 12/15/2025 | 2,159,759 |
10,019,677 | ||
Consumer, Cyclical — 0.29% | ||
415,000 | JetBlue Airways Corp 0.50%, 04/01/2026 | 307,308 |
1,985,000 | NCL Corp Ltd(a) 1.13%, 02/15/2027 | 1,513,562 |
115,000 | Peloton Interactive Inc(h) 12.11%, 02/15/2026 | 82,230 |
330,000 | Penn Entertainment Inc 2.75%, 05/15/2026 | 521,730 |
1,735,000 | Southwest Airlines Co(e) 1.25%, 05/01/2025 | 2,133,182 |
4,558,012 | ||
Consumer, Non-Cyclical — 0.49% | ||
BioMarin Pharmaceutical Inc | ||
870,000 | 0.60%, 08/01/2024 | 870,000 |
3,080,000 | 1.25%, 05/15/2027(e) | 3,081,230 |
120,000 | Guardant Health Inc(h) 8.22%, 11/15/2027 | 84,828 |
Principal Amount | Fair Value | |
Consumer, Non-Cyclical — (continued) | ||
$ 570,000 | Ionis Pharmaceuticals Inc(h) 0.56%, 04/01/2026 | $ 559,312 |
675,000 | Livongo Health Inc 0.88%, 06/01/2025 | 581,850 |
3,460,000 | Teladoc Health Inc 1.25%, 06/01/2027 | 2,590,788 |
7,768,008 | ||
Technology — 0.14% | ||
70,000 | Bentley Systems Inc 0.38%, 07/01/2027 | 54,460 |
995,000 | RingCentral Inc(h) 9.23%, 03/15/2026 | 758,688 |
675,000 | Splunk Inc 1.13%, 06/15/2027 | 573,750 |
1,115,000 | Unity Software Inc(a)(h) 9.29%, 11/15/2026 | 810,605 |
2,197,503 | ||
TOTAL CONVERTIBLE BONDS — 1.56% (Cost $29,057,560) | $ 24,543,200 | |
FOREIGN GOVERNMENT BONDS AND NOTES | ||
3,475,000 | European Investment Bank 0.25%, 09/15/2023 | 3,342,688 |
3,455,000 | Inter-American Development Bank 0.50%, 05/24/2023 | 3,377,642 |
65,000 | Province of Quebec Canada 0.60%, 07/23/2025 | 58,289 |
TOTAL FOREIGN GOVERNMENT BONDS AND NOTES — 0.43% (Cost $7,002,466) | $ 6,778,619 | |
MORTGAGE-BACKED SECURITIES | ||
Non-Agency — 2.09% | ||
775,000 | BANK Series 2021-BN35 Class AS 2.46%, 06/15/2064 | 581,463 |
1,645,000 | BBSG Mortgage Trust(a) Series 2016-MRP Class A 3.28%, 06/05/2036 | 1,419,927 |
158,179 | BB-UBS Trust(a) Series 2012-TFT Class A 2.89%, 06/05/2030 | 152,295 |
1,090,000 | BINOM Securitization Trust(a)(d) Series 2022-RPL1 Class M1 3.00%, 02/25/2061 | 913,766 |
BPR Trust(a)(c) | ||
Series 2021-NRD Class F | ||
1,185,000 | 10.29%, 12/15/2023 1-mo. SOFR + 6.87% | 1,091,464 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Series 2022-STAR Class A | ||
$ 1,145,000 | 6.61%, 08/15/2024 1-mo. SOFR + 3.23% | $ 1,127,818 |
1,910,000 | BX Commercial Mortgage Trust(a)(c) Series 2022-AHP Class B 5.22%, 01/17/2039 1-mo. SOFR + 1.84% | 1,834,250 |
683,108 | CIM Trust(a)(b) Series 2021-NR2 Class A1 2.57%, 07/25/2059 | 616,369 |
405,000 | COMM Mortgage Trust(a) Series 2012-CR3 Class AM 3.42%, 10/15/2045 | 364,626 |
104,902 | Commercial Mortgage Pass Through Certificates(a) Series 2012-LTRT Class A2 3.40%, 10/05/2030 | 89,566 |
1,040,000 | CoreVest American Finance Trust(a)(b) Series 2021-RTL1 Class A1 2.24%, 03/28/2029 | 934,692 |
Credit Suisse Mortgage Trust(a) | ||
Series 2014-USA Class B | ||
600,000 | 4.18%, 09/15/2037 | 512,239 |
Series 2014-USA Class C | ||
100,000 | 4.34%, 09/15/2037 | 81,996 |
Series 2014-USA Class D | ||
200,000 | 4.37%, 09/15/2037 | 153,189 |
Series 2021-RPL1 Class A1 | ||
328,147 | 1.67%, 09/27/2060(d) | 306,625 |
Series 2021-RPL4 Class A1 | ||
974,186 | 1.80%, 12/27/2060(d) | 900,903 |
Extended Stay America Trust(a)(c) | ||
Series 2021-ESH Class C | ||
400,239 | 5.11%, 07/15/2038 1-mo. LIBOR + 1.70% | 378,692 |
Series 2021-ESH Class D | ||
200,119 | 5.66%, 07/15/2038 1-mo. LIBOR + 2.25% | 189,096 |
404,778 | GCAT Trust(a)(d) Series 2019-RPL1 Class A1 2.65%, 10/25/2068 | 378,396 |
GS Mortgage Securities Trust | ||
Series 2013-G1 Class B | ||
460,000 | 3.65%, 04/10/2031(a)(d) | 442,857 |
Series 2013-PEMB Class A | ||
300,000 | 3.55%, 03/05/2033(a)(d) | 271,474 |
Series 2013-PEMB Class B | ||
250,000 | 3.55%, 03/05/2033(a)(d) | 217,639 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Series 2014-GC18 Class AS | ||
$ 370,000 | 4.38%, 01/10/2047 | $ 351,640 |
Series 2014-GC18 Class B | ||
990,000 | 4.89%, 01/10/2047(d) | 902,486 |
Series 2020-GC47 Class A4 | ||
1,500,000 | 2.12%, 05/12/2053 | 1,172,454 |
725,000 | JPMorgan Chase Commercial Mortgage Securities Trust(a)(d) Series 2012-LC9 Class C 4.32%, 12/15/2047 | 714,493 |
Legacy Mortgage Asset Trust(a) | ||
Series 2020-GS5 Class A1 | ||
103,998 | 3.25%, 06/25/2060(b) | 99,983 |
Series 2020-RPL1 Class A2 | ||
875,000 | 3.25%, 09/25/2059(d) | 748,240 |
Series 2021-GS2 Class A1 | ||
448,371 | 1.75%, 04/25/2061(b) | 414,418 |
Series 2021-GS4 Class A1 | ||
197,050 | 1.65%, 11/25/2060(b) | 178,987 |
600,000 | Med Trust(a)(c) Series 2021-MDLN Class C 5.21%, 11/15/2038 1-mo. LIBOR + 1.80% | 566,947 |
Mill City Mortgage Loan Trust(a)(d) | ||
Series 2019-1 Class M1 | ||
479,117 | 3.50%, 10/25/2069 | 414,393 |
Series 2019-GS1 Class M2 | ||
125,000 | 3.25%, 07/25/2059 | 106,081 |
Series 2021-NMR1 Class M2 | ||
750,000 | 2.50%, 11/25/2060 | 605,837 |
99,689 | Morgan Stanley BAML Commercial Mortgage Securities Trust(a) Series 2012-CKSV Class A2 3.28%, 10/15/2030 | 80,250 |
Morgan Stanley Bank of America Merrill Lynch Trust(d) | ||
Series 2013-C11 Class B | ||
195,000 | 4.35%, 08/15/2046 | 134,419 |
Series 2013-C12 Class C | ||
65,000 | 4.76%, 10/15/2046 | 61,155 |
Series 2016-C30 Class C | ||
785,000 | 4.10%, 09/15/2049 | 657,957 |
Preston Ridge Partners Mortgage LLC(a) | ||
Series 2021-1 Class A1 | ||
557,904 | 2.12%, 01/25/2026(d) | 512,039 |
Series 2021-10 Class A1 | ||
714,769 | 2.49%, 10/25/2026(b) | 648,036 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
Series 2021-2 Class A1 | ||
$ 236,633 | 2.12%, 03/25/2026(d) | $ 218,073 |
Series 2021-3 Class A1 | ||
718,713 | 1.87%, 04/25/2026(b) | 624,571 |
Series 2021-4 Class A1 | ||
145,897 | 1.87%, 04/25/2026(b) | 127,679 |
Series 2021-5 Class A1 | ||
690,061 | 1.79%, 06/25/2026(b) | 615,412 |
Series 2021-8 Class A1 | ||
613,506 | 1.74%, 09/25/2026(d) | 556,751 |
Series 2021-9 Class A1 | ||
782,869 | 2.36%, 10/25/2026(b) | 689,518 |
Series 2022-5 Class A1 | ||
1,920,000 | 6.90%, 09/27/2027(b) | 1,893,533 |
840,000 | RBS Commercial Funding Inc Trust(a)(d) Series 2013-GSP Class A 3.83%, 01/15/2032 | 804,560 |
760,000 | Toorak Mortgage Corp Ltd(a)(b) Series 2021-1 Class A1 2.24%, 06/25/2024 | 718,429 |
Towd Point Mortgage Trust(a)(d) | ||
Series 2016-3 Class M2 | ||
280,000 | 4.00%, 04/25/2056 | 268,822 |
Series 2017-1 Class M1 | ||
260,000 | 3.75%, 10/25/2056 | 238,912 |
Series 2017-3 Class A2 | ||
100,000 | 3.00%, 07/25/2057 | 94,361 |
Series 2017-4 Class M2 | ||
200,000 | 3.25%, 06/25/2057 | 163,742 |
Series 2018-5 Class M1 | ||
685,000 | 3.25%, 07/25/2058 | 490,323 |
Series 2019-4 Class A1 | ||
499,309 | 2.90%, 10/25/2059 | 455,145 |
Series 2019-4 Class M1 | ||
140,000 | 3.50%, 10/25/2059 | 108,769 |
Series 2020-1 Class A2B | ||
100,000 | 3.25%, 01/25/2060 | 77,059 |
Series 2020-2 Class A2B | ||
125,000 | 3.00%, 04/25/2060 | 97,204 |
100,000 | UBS Commercial Mortgage Trust(d) Series 2018-C14 Class C 5.26%, 12/15/2051 | 81,107 |
110,000 | UBS-Barclays Commercial Mortgage Trust(a)(d) Series 2012-C2 Class BEC 4.65%, 05/10/2063 | 103,642 |
Wells Fargo Commercial Mortgage Trust | ||
Series 2013-LC12 Class B | ||
210,000 | 4.30%, 07/15/2046(d) | 197,079 |
Series 2016-C36 Class AS | ||
1,345,000 | 3.42%, 11/15/2059 | 1,181,462 |
Series 2016-C36 Class B | ||
160,000 | 3.67%, 11/15/2059(d) | 132,948 |
Principal Amount | Fair Value | |
Non-Agency — (continued) | ||
WFRBS Commercial Mortgage Trust | ||
Series 2012-C7 Class C | ||
$ 198,471 | 4.69%, 06/15/2045(d) | $ 141,411 |
Series 2013-C15 Class B | ||
770,000 | 4.53%, 08/15/2046(d) | 728,237 |
Series 2014-C20 Class B | ||
245,000 | 4.38%, 05/15/2047 | 218,827 |
Series 2014-C24 Class B | ||
60,000 | 4.20%, 11/15/2047(d) | 54,226 |
Series 2014-C24 Class C | ||
340,000 | 4.29%, 11/15/2047(d) | 277,656 |
32,688,615 | ||
U.S. Government Agency — 34.83% | ||
Federal Home Loan Mortgage Corp | ||
6,378 | 2.50%, 01/01/2029 | 6,057 |
61,587 | 3.00%, 11/01/2034 | 56,810 |
18,958 | 2.50%, 06/01/2035 | 17,114 |
166,604 | 2.00%, 09/01/2035 | 146,416 |
123,270 | 2.00%, 10/01/2035 | 108,371 |
308,391 | 2.00%, 12/01/2035 | 271,114 |
42,083 | 3.00%, 09/01/2036 | 38,527 |
8,309,595 | 2.50%, 03/01/2037 | 7,513,030 |
2,738,536 | 2.50%, 04/01/2037 | 2,476,283 |
3,771,698 | 2.00%, 01/01/2042 | 3,103,408 |
3,713,330 | 2.50%, 01/01/2042 | 3,135,552 |
45,123 | 3.00%, 12/01/2046 | 39,189 |
33,448 | 4.00%, 05/01/2047 | 31,304 |
23,191 | 4.50%, 10/01/2047 | 22,191 |
31,693 | 4.00%, 02/01/2048 | 29,415 |
3,223 | 4.50%, 06/01/2048 | 3,084 |
8,048 | 4.00%, 10/01/2048 | 7,465 |
9,451 | 3.50%, 09/01/2049 | 8,415 |
553,062 | 3.50%, 10/01/2049 | 491,604 |
14,003 | 3.00%, 11/01/2049 | 11,992 |
4,456,390 | 3.00%, 02/01/2051 | 3,825,958 |
744,822 | 2.00%, 05/01/2051 | 589,400 |
4,540,273 | 3.00%, 07/01/2051 | 3,894,237 |
4,739,413 | 3.00%, 09/01/2051 | 4,063,923 |
3,595,265 | 2.50%, 10/01/2051 | 2,954,063 |
4,309,972 | 2.50%, 02/01/2052 | 3,547,874 |
4,447,487 | 3.00%, 04/01/2052 | 3,803,041 |
4,352,154 | 3.50%, 05/01/2052 | 3,838,028 |
9,176,979 | 4.00%, 06/01/2052 | 8,352,394 |
15,925,372 | 4.50%, 07/01/2052 | 14,980,705 |
8,586,010 | 4.00%, 08/01/2052 | 7,813,128 |
4,238,658 | 4.50%, 08/01/2052 | 3,989,214 |
3,969,675 | 5.00%, 09/01/2052 | 3,836,713 |
3,900,000 | 5.50%, 09/01/2052 | 3,863,950 |
7,917,212 | 5.00%, 10/01/2052 | 7,691,649 |
3,897,480 | 5.50%, 10/01/2052 | 3,859,499 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
U.S. Government Agency — (continued) | ||
Federal Home Loan Mortgage Corp Multifamily Structured Pass Through Certificates | ||
Series K045 Class A2 | ||
$ 2,572,988 | 3.02%, 01/25/2025 | $ 2,469,401 |
Series K058 Class A2 | ||
2,000,000 | 2.65%, 08/25/2026 | 1,847,772 |
Series K059 Class A2 | ||
650,000 | 3.12%, 09/25/2026(d) | 610,578 |
Series K061 Class A2 | ||
4,380,000 | 3.35%, 11/25/2026(d) | 4,130,497 |
Series K061 Class AM | ||
2,068,605 | 3.44%, 11/25/2026(d) | 1,948,067 |
Series K062 Class AM | ||
2,500,000 | 3.51%, 12/25/2026 | 2,358,892 |
Series K063 Class A2 | ||
882,076 | 3.43%, 01/25/2027(d) | 835,309 |
Series K064 Class A1 | ||
1,449,576 | 2.89%, 10/25/2026 | 1,398,311 |
Series K064 Class A2 | ||
505,000 | 3.22%, 03/25/2027 | 473,768 |
Series K066 Class AM | ||
2,507,000 | 3.20%, 06/25/2027 | 2,321,756 |
Series K067 Class A2 | ||
75,000 | 3.19%, 07/25/2027 | 69,954 |
Series K069 Class A2 | ||
2,305,000 | 3.19%, 09/25/2027(d) | 2,145,513 |
Series K069 Class AM | ||
2,500,000 | 3.25%, 09/25/2027(d) | 2,307,317 |
Series K070 Class A2 | ||
2,750,000 | 3.30%, 11/25/2027(d) | 2,568,490 |
Series K071 Class A2 | ||
2,630,000 | 3.29%, 11/25/2027 | 2,451,773 |
Series K073 Class A2 | ||
2,300,000 | 3.35%, 01/25/2028 | 2,146,186 |
Series K073 Class AM | ||
100,000 | 3.45%, 01/25/2028 | 93,201 |
Series K074 Class A2 | ||
2,750,000 | 3.60%, 01/25/2028 | 2,594,316 |
Series K075 Class A2 | ||
2,344,000 | 3.65%, 02/25/2028(d) | 2,215,407 |
Series K076 Class A2 | ||
2,000,000 | 3.90%, 04/25/2028 | 1,911,342 |
Series K077 Class A2 | ||
2,500,000 | 3.85%, 05/25/2028(d) | 2,382,166 |
Series K078 Class A2 | ||
2,250,000 | 3.85%, 06/25/2028 | 2,142,950 |
Series K078 Class AM | ||
2,500,000 | 3.92%, 06/25/2028 | 2,377,980 |
Series K084 Class A2 | ||
2,250,000 | 3.78%, 10/25/2028(d) | 2,117,854 |
Series K095 Class A1 | ||
28,227 | 2.63%, 11/25/2028 | 26,225 |
Series K115 Class A2 | ||
9,300,000 | 1.38%, 06/25/2030 | 7,214,249 |
Series K152 Class A2 | ||
8,975,000 | 3.08%, 01/25/2031 | 7,939,203 |
Principal Amount | Fair Value | |
U.S. Government Agency — (continued) | ||
Series K154 Class A2 | ||
$ 7,000,000 | 3.42%, 04/25/2032 | $ 6,446,249 |
Series K157 Class A2 | ||
8,500,000 | 3.99%, 05/25/2033(d) | 8,019,193 |
Series K158 Class A2 | ||
8,500,000 | 3.90%, 12/25/2030(d) | 7,957,851 |
Series K737 Class A2 | ||
2,250,000 | 2.53%, 10/25/2026 | 2,059,110 |
Series K740 Class A2 | ||
750,000 | 1.47%, 09/25/2027 | 639,552 |
Series KJ41 Class A2 | ||
8,225,000 | 3.47%, 02/25/2031 | 7,481,713 |
Federal Home Loan Mortgage Corp Real Estate Mortgage Investment Conduit | ||
Series 4769 Class QL | ||
3,997,487 | 3.50%, 09/15/2047 | 3,627,069 |
Series 5238 Class BC | ||
4,412,592 | 4.00%, 09/25/2049 | 4,181,057 |
4,868,415 | Federal Home Loan Mortgage Corp Small Balance Mortgage Trust(d) Series 2021-SB93 Class A10F 1.81%, 10/25/2031 | 4,060,489 |
601,941 | Federal Home Loan Mortgage Corp Structured Agency Credit Risk Real Estate Mortgage Investment Conduit Trust(a)(c) Series 2022-DNA3 Class M1A 5.00%, 04/25/2042 1-mo. SOFR + 2.00% | 589,902 |
Federal National Mortgage Association | ||
253,109 | 3.00%, 10/01/2033 | 233,669 |
20,479 | 3.00%, 06/01/2034 | 18,892 |
21,508 | 3.00%, 07/01/2034 | 19,841 |
7,278 | 3.00%, 10/01/2034 | 6,712 |
19,009 | 3.00%, 11/01/2034 | 17,589 |
312,281 | 2.00%, 10/01/2035 | 274,538 |
303,434 | 2.00%, 11/01/2035 | 266,754 |
306,879 | 2.00%, 12/01/2035 | 269,789 |
321,649 | 2.00%, 01/01/2036 | 283,550 |
4,107,461 | 2.00%, 11/01/2036 | 3,610,748 |
7,646,726 | 2.00%, 02/01/2037 | 6,721,742 |
3,579,930 | 2.00%, 03/01/2037 | 3,146,997 |
3,400,060 | 2.50%, 03/01/2037 | 3,074,242 |
4,496,257 | 2.50%, 04/01/2037 | 4,065,636 |
2,814,053 | 3.00%, 06/01/2037 | 2,589,914 |
3,958,659 | 2.50%, 02/01/2042 | 3,342,983 |
8,548,882 | 2.50%, 03/01/2047 | 7,105,001 |
5,526,739 | 3.50%, 07/01/2047 | 5,014,203 |
26,433 | 4.00%, 09/01/2047 | 24,557 |
8,472 | 3.50%, 03/01/2048 | 7,607 |
5,941 | 4.00%, 06/01/2048 | 5,497 |
4,562,474 | 3.00%, 01/01/2049 | 3,968,695 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
U.S. Government Agency — (continued) | ||
$ 6,627 | 3.00%, 12/01/2049 | $ 5,667 |
6,117 | 3.00%, 01/01/2050 | 5,255 |
29,922 | 2.50%, 05/01/2050 | 24,762 |
290,930 | 2.50%, 06/01/2050 | 240,314 |
160,051 | 2.50%, 07/01/2050 | 132,268 |
18,090 | 2.50%, 08/01/2050 | 14,904 |
676,673 | 2.00%, 05/01/2051 | 535,372 |
4,827,592 | 2.50%, 08/01/2051 | 3,966,624 |
10,580,658 | 2.00%, 10/01/2051 | 8,346,090 |
3,681,021 | 2.50%, 10/01/2051 | 3,025,690 |
7,757,955 | 2.50%, 01/01/2052 | 6,370,134 |
8,043,132 | 3.50%, 01/01/2052 | 7,096,777 |
12,667,612 | 2.50%, 02/01/2052 | 10,422,786 |
4,147,001 | 2.50%, 03/01/2052 | 3,416,292 |
16,080,872 | 3.00%, 03/01/2052 | 13,765,766 |
4,067,398 | 3.00%, 04/01/2052 | 3,478,032 |
3,953,074 | 3.50%, 04/01/2052 | 3,515,035 |
4,516,287 | 3.00%, 05/01/2052 | 3,861,901 |
9,392,187 | 4.00%, 05/01/2052 | 8,553,267 |
27,220,871 | 4.00%, 06/01/2052 | 24,787,840 |
4,299,907 | 4.00%, 07/01/2052 | 3,918,502 |
4,311,600 | 4.50%, 07/01/2052 | 4,051,978 |
3,930,498 | 5.00%, 07/01/2052 | 3,806,819 |
17,329,059 | 4.00%, 08/01/2052 | 15,777,412 |
6,370,830 | 5.00%, 08/01/2052 | 6,155,169 |
4,074,514 | 4.50%, 09/01/2052 | 3,826,238 |
3,919,942 | 5.00%, 09/01/2052 | 3,789,402 |
4,087,117 | 4.50%, 10/01/2052 | 3,842,382 |
7,863,263 | 5.00%, 10/01/2052 | 7,610,883 |
4,150,000 | 5.00%, 11/01/2052 | 4,023,340 |
Federal National Mortgage Association Alternative Credit Enhancement Security | ||
Series 2016-M5 Class A2 | ||
2,500,000 | 2.47%, 04/25/2026 | 2,306,201 |
Series 2017-M1 Class A2 | ||
1,965,944 | 2.41%, 10/25/2026(d) | 1,791,034 |
Series 2018-M2 Class A2 | ||
2,155,653 | 2.91%, 01/25/2028(d) | 1,978,281 |
Series 2018-M3 Class A2 | ||
4,405,748 | 3.07%, 02/25/2030(d) | 3,967,690 |
Federal National Mortgage Association Real Estate Mortgage Investment Conduit | ||
Series 2022-35 Class CK | ||
4,376,974 | 4.00%, 03/25/2047 | 4,168,304 |
Series 2022-42 Class BA | ||
4,415,355 | 4.00%, 06/25/2050 | 4,211,513 |
Government National Mortgage Association | ||
21,164 | 3.50%, 04/20/2047 | 19,182 |
12,799 | 4.00%, 04/20/2047 | 11,982 |
21,039 | 3.00%, 02/20/2048 | 18,551 |
27,446 | 3.50%, 02/20/2048 | 24,978 |
3,886,813 | 2.50%, 03/20/2051 | 3,284,348 |
2,488,118 | 3.00%, 08/20/2051 | 2,180,273 |
8,959,515 | 2.50%, 11/20/2051 | 7,617,962 |
Principal Amount | Fair Value | |
U.S. Government Agency — (continued) | ||
$ 9,256,262 | 2.00%, 12/20/2051 | $ 7,627,265 |
8,627,331 | 3.50%, 02/20/2052 | 7,778,448 |
8,634,587 | 3.50%, 06/20/2052 | 7,752,921 |
4,259,380 | 4.00%, 07/20/2052 | 3,929,197 |
4,365,866 | 3.50%, 08/20/2052 | 3,911,961 |
8,657,621 | 4.00%, 08/20/2052 | 7,987,066 |
8,798,979 | 4.50%, 08/20/2052 | 8,348,659 |
4,094,565 | 4.50%, 09/20/2052 | 3,884,996 |
3,975,000 | 5.00%, 09/20/2052 | 3,878,490 |
3,950,000 | 5.00%, 10/20/2052 | 3,856,505 |
Uniform Mortgage-Backed Security(i) | ||
19,900,000 | 4.00%, TBA | 18,086,923 |
16,300,000 | 4.50%, TBA | 15,288,891 |
15,625,000 | 5.50%, TBA | 15,410,682 |
546,340,139 | ||
TOTAL MORTGAGE-BACKED SECURITIES — 36.92% (Cost $636,468,236) | $ 579,028,754 | |
U.S. TREASURY BONDS AND NOTES | ||
United States Treasury Note/Bond | ||
8,380,000 | 0.13%, 01/31/2023(j) | 8,298,002 |
7,070,000 | 0.13%, 03/31/2023 | 6,946,551 |
11,880,000 | 0.13%, 07/31/2023 | 11,486,475 |
22,905,000 | 0.25%, 09/30/2023 | 22,010,274 |
3,740,000 | 0.50%, 11/30/2023 | 3,578,566 |
8,795,000 | 0.88%, 01/31/2024 | 8,391,323 |
17,910,000 | 1.50%, 02/29/2024 | 17,192,901 |
16,900,000 | 0.75%, 08/31/2026 | 14,755,813 |
16,100,000 | 2.63%, 05/31/2027 | 15,006,332 |
9,300,000 | 2.63%, 07/31/2029 | 8,443,383 |
12,640,000 | 1.88%, 02/15/2032 | 10,510,950 |
15,200,000 | 1.75%, 08/15/2041 | 9,920,375 |
34,670,000 | 2.00%, 11/15/2041 | 23,635,189 |
4,200,000 | 2.38%, 02/15/2042 | 3,066,656 |
11,400,000 | 3.25%, 05/15/2042 | 9,638,344 |
5,000,000 | 2.50%, 02/15/2045 | 3,598,242 |
3,525,000 | 2.00%, 02/15/2050 | 2,242,368 |
20,280,000 | 1.25%, 05/15/2050 | 10,449,745 |
3,750,000 | 1.63%, 11/15/2050 | 2,144,531 |
14,300,000 | 2.00%, 08/15/2051 | 9,008,441 |
7,700,000 | 1.88%, 11/15/2051 | 4,690,383 |
33,980,000 | 2.25%, 02/15/2052 | 22,787,838 |
23,840,000 | 2.88%, 05/15/2052 | 18,502,075 |
TOTAL U.S. TREASURY BONDS AND NOTES — 15.70% (Cost $290,436,250) | $ 246,304,757 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Shares | Fair Value | |
COMMON STOCK | ||
Communications — 0.18% | ||
285,795 | Altice USA Inc Class A(k) | $ 1,889,105 |
6,475 | T-Mobile US Inc(k) | 981,351 |
2,870,456 | ||
Consumer, Non-Cyclical — 0.00%(l) | ||
515 | Clarivate PLC(k) | 5,320 |
TOTAL COMMON STOCK — 0.18% (Cost $4,862,456) | $ 2,875,776 | |
CONVERTIBLE PREFERRED STOCK | ||
Communications — 0.20% | ||
2,541 | 2020 Cash Mandatory Exchangeable Trust 5.25%(a) | 3,155,922 |
Energy — 0.00%(l) | ||
396 | El Paso Energy Capital Trust I 4.75% | 17,820 |
Financial — 0.23% | ||
1,596 | Bank of America Corp 7.25% | 1,845,535 |
1,539 | Wells Fargo & Co 7.50% | 1,781,392 |
3,626,927 | ||
Technology — 0.04% | ||
11,140 | Clarivate PLC 5.25% | 510,912 |
TOTAL CONVERTIBLE PREFERRED STOCK — 0.47% (Cost $8,400,945) | $ 7,311,581 | |
GOVERNMENT MONEY MARKET MUTUAL FUNDS | ||
2,090,000 | BlackRock FedFund Institutional Class(m), 2.87%(n) | 2,090,000 |
2,102,000 | Dreyfus Institutional Preferred Government Plus Money Market Fund Class SL(m), 3.13%(n) | 2,102,000 |
2,600,000 | Goldman Sachs Financial Square Government Fund Institutional Class(m), 3.09%(n) | 2,600,000 |
2,600,000 | Invesco Government & Agency Portfolio Institutional Class(m), 3.09%(n) | 2,600,000 |
1,130,000 | JPMorgan U.S. Government Money Market Fund Capital Shares(m), 2.80%(n) | 1,130,000 |
Shares | Fair Value | |
Government Money Market Mutual Funds — (continued) | ||
2,190,000 | Morgan Stanley Institutional Liquidity Government Portfolio Institutional Class(m), 2.85%(n) | $ 2,190,000 |
TOTAL GOVERNMENT MONEY MARKET MUTUAL FUNDS — 0.81% (Cost $12,712,000) | $ 12,712,000 | |
Principal Amount | ||
SHORT TERM INVESTMENTS | ||
U.S. Government Agency Bonds and Notes — 5.44% | ||
$85,300,000 | Federal Home Loan Bank(h) 2.74%, 11/01/2022 | 85,300,000 |
U.S. Treasury Bonds and Notes — 4.92% | ||
U.S. Treasury Bills(h) | ||
49,300,000 | 3.06%, 11/15/2022 | 49,241,463 |
8,105,000 | 3.00%, 12/08/2022(e) | 8,080,054 |
20,000,000 | 4.03%, 01/26/2023 | 19,809,104 |
77,130,621 | ||
Repurchase Agreements — 1.50% | ||
6,345,265 | Undivided interest of 85.08% in a repurchase agreement (principal amount/value $7,474,430 with a maturity value of $7,475,063) with Citigroup Global Markets Inc, 3.05%, dated 10/31/22 to be repurchased at $6,345,265 on 11/1/22 collateralized by U.S. Treasury securities, 3.38% - 4.38%, 10/31/24 - 8/15/42, with a value of $7,623,919.(m) | 6,345,265 |
8,618,776 | Undivided interest of 85.29% in a repurchase agreement (principal amount/value $10,132,689 with a maturity value of $10,133,547) with RBC Capital Markets Corp, 3.05%, dated 10/31/22 to be repurchased at $8,618,776 on 11/1/22 collateralized by U.S. Treasury securities and various U.S. Government Agency securities, 0.50% - 5.00%, 2/28/26 - 10/20/52, with a value of $10,335,343.(m) | 8,618,776 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
Principal Amount | Fair Value | |
Repurchase Agreements — (continued) | ||
$ 8,618,776 | Undivided interest of 88.57% in a repurchase agreement (principal amount/value $9,753,550 with a maturity value of $9,754,376) with Bank of America Securities Inc, 3.05%, dated 10/31/22 to be repurchased at $8,618,776 on 11/1/22 collateralized by various U.S. Government Agency securities, 0.01% - 5.50%, 2/25/32 - 1/1/61, with a value of $9,948,621.(m) | $ 8,618,776 |
23,582,817 | ||
TOTAL SHORT TERM INVESTMENTS — 11.86% (Cost $186,013,438) | $ 186,013,438 | |
TOTAL INVESTMENTS — 106.15% (Cost $1,894,922,372) | $1,665,013,172 | |
OTHER ASSETS & LIABILITIES, NET — (6.15)% | $ (96,528,820) | |
TOTAL NET ASSETS — 100.00% | $1,568,484,352 |
(a) | Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. |
(b) | Step bond; a zero coupon bond that converts to a fixed rate or variable interest rate at a designated future date. Rate disclosed represents effective yield at October 31, 2022. Maturity date disclosed represents final maturity date. |
(c) | Adjustable rate security; interest rate is subject to change. Interest rate shown reflects the rate in effect at October 31, 2022. |
(d) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
(e) | All or a portion of the security is on loan at October 31, 2022. |
(f) | Security has no contractual maturity date and pays an indefinite stream of interest. |
(g) | Security in default. |
(h) | Zero coupon bond; the interest rate shown is the effective yield on date of purchase. |
(i) | Single-class security backed by mortgage loans purchased by either Freddie Mac or Fannie Mae. |
(j) | All or a portion of the security has been segregated to cover initial margin requirements on open futures contracts. |
(k) | Non-income producing security. |
(l) | Represents less than 0.005% of net assets. |
(m) | Collateral received for securities on loan. |
(n) | Rate shown is the 7-day yield as of October 31, 2022. |
LIBOR | London Interbank Offered Rate is the interest rate banks charge each other for short-term loans. |
LP | Limited Partnership |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate is the secured interbank overnight interest rate and reference rate established as an alternative to LIBOR. |
TBA | To Be Announced |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Schedule of Investments
As of October 31, 2022 (Unaudited)
At October 31, 2022, the Fund held the following outstanding exchange traded futures contracts: | |||||
Description | Number of Contracts | Notional Amount | Expiration Date | Fair Value and Net Unrealized Depreciation | |
Long | |||||
U.S. 10 Year Treasury Ultra Futures | 247 | USD | 28,648,141 | December 2022 | $(1,125,634) |
U.S. Ultra Bond Futures | 254 | USD | 32,424,687 | December 2022 | (2,496,688) |
Net Depreciation | $(3,622,322) |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
Statement of Assets and Liabilities
As of October 31, 2022 (Unaudited)
Empower Core Strategies: Flexible Bond Fund | |
ASSETS: | |
Investments in securities, fair value (including $34,960,338 of securities on loan)(a) | $1,641,430,355 |
Repurchase agreements, fair value(b) | 23,582,817 |
Cash | 42,513,402 |
Cash pledged on futures contracts | 153,850 |
Interest receivable | 8,966,356 |
Subscriptions receivable | 6,190,633 |
Receivable for investments sold | 2,216,265 |
Total Assets | 1,725,053,678 |
LIABILITIES: | |
Payable for TBA investments purchased | 49,503,054 |
Payable for director fees | 10,539 |
Payable for investments purchased | 67,874,987 |
Payable for other accrued fees | 165,276 |
Payable for shareholder services fees | 457,176 |
Payable to investment adviser | 497,542 |
Payable upon return of securities loaned | 36,294,817 |
Redemptions payable | 1,214,936 |
Variation margin on futures contracts | 550,999 |
Total Liabilities | 156,569,326 |
NET ASSETS | $1,568,484,352 |
NET ASSETS REPRESENTED BY: | |
Capital stock, $0.10 par value | $18,688,279 |
Paid-in capital in excess of par | 1,837,977,801 |
Undistributed/accumulated deficit | (288,181,728) |
NET ASSETS | $1,568,484,352 |
NET ASSETS BY CLASS | |
Investor Class | $1,557,610,619 |
Institutional Class | $10,873,733 |
CAPITAL STOCK: | |
Authorized | |
Investor Class | 780,000,000 |
Institutional Class | 15,000,000 |
Issued and Outstanding | |
Investor Class | 185,740,782 |
Institutional Class | 1,142,004 |
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE: | |
Investor Class | $8.39 |
Institutional Class | $9.52 |
(a) Cost of investments | $1,871,339,555 |
(b) Cost of repurchase agreements | $23,582,817 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
Statement of Operations
For the period ended October 31, 2022 (Unaudited)
Empower Core Strategies: Flexible Bond Fund | |
INVESTMENT INCOME: | |
Interest | $24,004,829 |
Income from securities lending | 83,663 |
Dividends | 243,471 |
Total Income | 24,331,963 |
EXPENSES: | |
Management fees | 3,272,145 |
Shareholder services fees – Investor Class | 2,995,138 |
Audit and tax fees | 20,808 |
Custodian fees | 24,259 |
Director's fees | 16,586 |
Legal fees | 8,931 |
Pricing fees | 28,467 |
Registration fees | 198,096 |
Shareholder report fees | 18,124 |
Transfer agent fees | 3,752 |
Other fees | 12,203 |
Total Expenses | 6,598,509 |
Less amount waived by investment adviser | 18,498 |
Net Expenses | 6,580,011 |
NET INVESTMENT INCOME | 17,751,952 |
NET REALIZED AND UNREALIZED GAIN (LOSS): | |
Net realized loss on investments and foreign currency transactions | (53,396,590) |
Net realized loss on futures contracts | (37,295) |
Net Realized Loss | (53,433,885) |
Net change in unrealized depreciation on investments | (80,158,270) |
Net change in unrealized depreciation on futures contracts | (3,622,322) |
Net Change in Unrealized Depreciation | (83,780,592) |
Net Realized and Unrealized Loss | (137,214,477) |
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $(119,462,525) |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
Statement of Changes in Net Assets
For the period ended October 31, 2022 and fiscal year ended April 30, 2022
Empower Core Strategies: Flexible Bond Fund | October 31, 2022 (Unaudited) | April 30, 2022 | |
OPERATIONS: | |||
Net investment income | $17,751,952 | $10,971,714 | |
Net realized loss | (53,433,885) | (19,972,151) | |
Net change in unrealized depreciation | (83,780,592) | (143,660,024) | |
Net Decrease in Net Assets Resulting from Operations | (119,462,525) | (152,660,461) | |
DISTRIBUTIONS TO SHAREHOLDERS: | |||
From net investment income and net realized gains | |||
Investor Class | - | (6,953,436) | |
Institutional Class | - | (44,921) | |
From Net Investment Income and Net Realized Gains | 0 | (6,998,357) | |
CAPITAL SHARE TRANSACTIONS: | |||
Shares sold | |||
Investor Class | 301,464,603 | 1,219,321,196 | |
Institutional Class | 3,339,399 | 9,338,816 | |
Shares issued in reinvestment of distributions | |||
Investor Class | - | 6,953,436 | |
Institutional Class | - | 44,921 | |
Shares redeemed | |||
Investor Class | (398,620,581) | (245,893,151) | |
Institutional Class | (2,319,906) | (2,127,668) | |
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | (96,136,485) | 987,637,550 | |
Total Increase (Decrease) in Net Assets | (215,599,010) | 827,978,732 | |
NET ASSETS: | |||
Beginning of Period | 1,784,083,362 | 956,104,630 | |
End of Period | $1,568,484,352 | $1,784,083,362 | |
CAPITAL SHARE TRANSACTIONS - SHARES: | |||
Shares sold | |||
Investor Class | 34,177,156 | 124,662,550 | |
Institutional Class | 333,055 | 844,488 | |
Shares issued in reinvestment of distributions | |||
Investor Class | - | 709,588 | |
Institutional Class | - | 4,047 | |
Shares redeemed | |||
Investor Class | (44,962,428) | (25,462,666) | |
Institutional Class | (231,841) | (193,515) | |
Net Increase (Decrease) | (10,684,058) | 100,564,492 |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Financial Highlights
Selected data for a share of capital stock of the Fund throughout the periods indicated.
Income (Loss) from Investment Operations: | Less Distributions: | ||||||||
Net asset value, beginning of period | Net investment income(a) | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Total Distributions | Net asset value, end of period | Total Return(b) | |
Investor Class | |||||||||
10/31/2022(Unaudited) | $ 9.02 | 0.09 | (0.72) | (0.63) | — | — | — | $ 8.39 | (6.98%) (c) |
4/30/2022 | $ 9.85 | 0.07 | (0.86) | (0.79) | (0.04) | — | (0.04) | $ 9.02 | (8.04%) |
4/30/2021 (d) | $10.00 | 0.03 | (0.17) | (0.14) | (0.01) | — | (0.01) | $ 9.85 | (1.35%) (c) |
Institutional Class | |||||||||
10/31/2022(Unaudited) | $10.23 | 0.12 | (0.83) | (0.71) | — | — | — | $ 9.52 | (6.94%) (c) |
4/30/2022 | $11.14 | 0.12 | (0.98) | (0.86) | (0.05) | — | (0.05) | $10.23 | (7.72%) |
4/30/2021 | $10.86 | 0.17 | 0.11 | 0.28 | (0.00) (e) | — | (0.00) (e) | $11.14 | 2.60% |
4/30/2020 | $10.13 | 0.28 | 0.65 | 0.93 | (0.20) | — | (0.20) | $10.86 | 9.32% |
4/30/2019 (f) | $10.00 | 0.27 | 0.12 | 0.39 | (0.26) | (0.00) (e) | (0.26) | $10.13 | 3.93% (c) |
Net assets, end of period (000) | Ratio of expenses to average net assets (before reimbursement and/or waiver, if applicable) | Ratio of expenses to average net assets (after reimbursement and/or waiver, if applicable) | Ratio of net investment income to average net assets (after reimbursement and/or waiver, if applicable) | Portfolio turnover rate(g)(h) | ||
Investor Class | ||||||
10/31/2022(Unaudited) | $1,557,611 | 0.77% (i) | 0.77% (i) | 2.06% (i) | 76% (c) | |
04/30/2022 | $1,773,436 | 0.76% | 0.76% | 0.76% | 210% | |
04/30/2021 (d) | $ 951,807 | 0.79% (i) | 0.79% (i) | 0.42% (i) | 180% | |
Institutional Class | ||||||
10/31/2022(Unaudited) | $ 10,874 | 0.80% (i) | 0.45% (i) | 2.42% (i) | 76% (c) | |
04/30/2022 | $ 10,647 | 0.88% | 0.45% | 1.09% | 210% | |
04/30/2021 | $ 4,298 | 1.13% | 0.45% | 1.50% | 180% | |
04/30/2020 | $ 10,459 | 1.37% | 0.45% | 2.64% | 60% | |
04/30/2019 (f) | $ 8,949 | 1.67% (i) | 0.45% (i) | 3.21% (i) | 17% (c) |
(a) | Per share amounts are based upon average shares outstanding. |
(b) | Total return shown net of expenses reimbursed and/or waived, if applicable. Without the expense reimbursement and/or waiver, the return shown would have been lower. |
(c) | Not annualized for periods less than one full year. |
(d) | Investor Class inception date was September 3, 2020. |
(e) | Amount was less than $0.01 per share. |
(f) | Institutional Class inception date was June 25, 2018. |
(g) | Portfolio turnover is calculated at the Fund level. |
(h) | Portfolio turnover includes purchases and sales from mortgage dollar roll transactions which occurred during the period, if any. Excluding these transactions, the portfolio turnover would have been 42% for the period ended October 31, 2022 and 40% and 51% for the years ended April 30, 2022 and 2021, respectively. |
(i) | Annualized. |
See Notes to Financial Statements.
Semi-Annual Report - October 31, 2022
EMPOWER FUNDS, INC.
EMPOWER CORE STRATEGIES: FLEXIBLE BOND FUND
Notes to Financial Statements (Unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Empower Funds, Inc. (Empower Funds), a Maryland corporation, was organized on December 7, 1981 and is registered under the Investment Company Act of 1940 (the 1940 Act) as an open-end management investment company. Empower Funds presently consists of forty-five funds. Interests in the Empower Core Strategies: Flexible Bond Fund (the Fund) are included herein. The investment objective of the Fund is to seek to provide total return, consistent with two components: (1) changes in the market value of its portfolio holdings (both realized and unrealized appreciation); and (2) income received from its portfolio holdings. The Fund is diversified as defined in the 1940 Act. The Fund shares are available through certain broker-dealers, custodians or trustees of individual retirement accounts, or other financial intermediaries who have entered into agreements with the Fund’s distributor to make the shares available.
The Fund offers two share classes, referred to as Investor Class and Institutional Class shares. All shares of the Fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, expenses (other than those attributable to a specific class) and realized and unrealized gains and losses are allocated daily to each class of shares based on the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against operations of that class. Expenses incurred by Empower Funds, which are not Fund specific, are allocated based on relative net assets or other appropriate allocation methods.
The outbreak of the novel strain of coronavirus, specifically identified as "COVID-19", has affected the worldwide economy, the financial health of individual companies and the market in general. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Fund in future periods.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Fund is also an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services - Investment Companies. The following is a summary of the significant accounting policies of the Fund.
Security Valuation
The Board of Directors of the Fund has adopted policies and procedures for the valuation of the Fund’s securities and assets, and has appointed the Fair Value Pricing Committee of the investment adviser, Empower Capital Management, LLC, to complete valuation determinations under those policies and procedures. Effective September 8, 2022, pursuant to Rule 2a-5, the Board of Directors approved the Adviser as the Fund’s valuation designee to make all fair value determinations with respect to the Fund’s investments, subject to oversight by the Board of Directors.
The Fund generally values its securities 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 (NAV) of each class of the Fund's shares is determined by dividing the net assets attributable to each class of shares of the Fund by the number of issued and outstanding shares of each class of the Fund on each valuation date.
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For securities that are traded on only one exchange, the last sale price as of the close of business of that exchange will be used. If the closing price is not available, the current bid as of the close of business will be used. For securities traded on more than one exchange, or upon one or more exchanges and in the over-the-counter (OTC) market, the last sale price as of the close of business on the market which the security is traded most extensively will be used. If the closing price is not available, the current bid as of the close of business will be used. For securities that principally trade on the NASDAQ National Market System, the NASDAQ official closing price will be used.
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.
Fixed income investments are valued using evaluated bid prices from approved pricing services when available and appropriate based on the conditions of the market. If a price cannot be located from either the primary or secondary sources, or if the market is determined to be illiquid or inactive, other appropriate sources, which may include the use of an internally developed valuation model, another external pricing vendor or sourcing a price from a broker, may be used.
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.
Foreign exchange rates are determined at a time that corresponds to the closing of the NYSE.
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. Broker quotes are analyzed through an internal review process, which includes a review of known market conditions and other relevant data. 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 |
Asset-Backed Securities | Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs may also include new issue data, collateral performance, and monthly payment information. |
Corporate Bonds and Notes | Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs also may include observations of equity and credit default swap curves related to issuer. |
Convertible Bonds, Convertible Preferred Stock | Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs also may include exchange prices. |
Foreign Government Bonds and Notes | Benchmark yields, executed trades, broker/dealer quotes, credit information, collateral attributes, issuer spreads, benchmark securities, treasury/swap maturity curves, issuer spread curves, evaluated bids, market corroborated inputs, offers and reference data including market research publications. |
Mortgage-Backed Securities | Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market |
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research publications. Inputs may also include new issue data, collateral performance, TBA prices, monthly payment information and third party real estate analysis. | |
U.S. Treasury Bonds and Notes | Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. |
Common Stock | Exchange traded close price, bids, evaluated bids, open and close price of the local exchange, exchange rates, fair values based on significant market movement and various index data. |
Government Money Market Mutual Funds | Net asset value of underlying mutual fund. |
Short Term Investments | Maturity date, credit quality and interest rates. |
Futures Contracts | Exchange traded close price. |
The Fund classifies its valuations into three levels based upon the observability of inputs to the valuation of the 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 include quoted prices for similar assets in active markets.
Level 3 – Unobservable inputs to the extent observable inputs are not available and may include prices obtained from single broker quotes. Unobservable inputs reflect the Fund’s own assumptions and would be based on the best information available under the circumstances.
As of October 31, 2022, the inputs used to value the Fund’s investments are detailed in the following table. More information regarding the sector classifications, as applicable, are included in the Schedule of Investments.
Level 1 | Level 2 | Level 3 | Total | ||||
Assets | |||||||
Investments, at fair value: | |||||||
Asset-Backed Securities | $ — | $ 160,378,811 | $ — | $ 160,378,811 | |||
Corporate Bonds and Notes | — | 439,066,236 | — | 439,066,236 | |||
Convertible Bonds | — | 24,543,200 | — | 24,543,200 | |||
Foreign Government Bonds and Notes | — | 6,778,619 | — | 6,778,619 | |||
Mortgage-Backed Securities | — | 579,028,754 | — | 579,028,754 | |||
U.S. Treasury Bonds and Notes | — | 246,304,757 | — | 246,304,757 | |||
Common Stock | 2,875,776 | — | — | 2,875,776 | |||
Convertible Preferred Stock | 6,800,669 | 510,912 | — | 7,311,581 | |||
Government Money Market Mutual Funds | 12,712,000 | — | — | 12,712,000 | |||
Short Term Investments | — | 186,013,438 | — | 186,013,438 | |||
Total Assets | $ 22,388,445 | $ 1,642,624,727 | $ 0 | $ 1,665,013,172 | |||
Liabilities | |||||||
Other Financial Investments: | |||||||
Futures Contracts(a) | (3,622,322) | — | — | (3,622,322) | |||
Total Liabilities | $ (3,622,322) | $ 0 | $ 0 | $ (3,622,322) |
(a) | Futures Contracts are reported at the security’s unrealized appreciation (depreciation), which represents the change in the contract’s value from trade date. |
Semi-Annual Report - October 31, 2022
Repurchase Agreements
The 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 a 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.
To Be Announced Transactions
The Fund may invest in securities known as To Be Announced (TBA) securities. TBA’s are Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or Government National Mortgage Association issued mortgage backed securities for forward settlement, in which the buyer and seller decide on trade parameters, but the exact pools are unknown until two days before settlement date. The transactions arise when securities are purchased or sold with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield at the time of entering into the transaction. TBA transactions generally settle monthly on a specified date. TBA’s are included in Investments in securities, fair value on the Statement of Assets and Liabilities.
Dollar Rolls
The Fund may enter into dollar roll transactions, pursuant to which it sells a mortgage-backed TBA and simultaneously agrees to purchase a similar, but not identical, TBA with the same issuer, rate, and terms on a later date at a set price from the same counterparty. The Fund may execute a “roll” to obtain better underlying mortgage securities or to enhance returns. The Fund generally enters into dollar roll transactions with the intention of taking possession of the underlying mortgage securities but may close a contract prior to settlement or “roll” settlement to a later date if deemed to be in the best interest of the Fund. Actual mortgages received by the Fund may be less favorable than those anticipated. The Fund accounts for dollar roll transactions as purchases and sales, which has the effect of increasing its portfolio turnover rate.
Foreign Currency Translations and Transactions
The accounting records of the Fund are maintained in U.S. dollars. Investment securities, and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the current exchange rate. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the dates of the transactions.
The Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Fund and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. These gains and losses are included in net realized gain or loss and change in net unrealized appreciation or depreciation on the Statement of Operations.
Security Transactions
Security transactions are accounted for on the date the security is purchased or sold (trade date). Realized gains and losses from investments sold are determined on a specific lot selection. Dividend income for the Fund is accrued as of the ex-dividend date and interest income, including amortization of discounts and premiums, is recorded daily.
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Federal Income Taxes and Distributions to Shareholders
The Fund intends to comply with provisions under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remains open for the three preceding fiscal reporting period ends. State tax returns may remain open for an additional fiscal year.
Distributions to shareholders from net investment income of the Fund, if any, are declared and paid twice annually. Capital gain distributions of the Fund, if any, are declared and paid at least annually. Distributions are reinvested in additional shares of the Fund at net asset value and are declared separately for each class. Distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
Net investment income (loss) and net realized gain (loss) for federal income tax purposes may differ from those reported on the financial statements because of temporary and permanent book-tax basis differences. Book-tax differences may include but are not limited to the following: wash sales, distribution adjustments and market discount adjustments.
The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation for federal income tax purposes as of October 31, 2022 were as follows:
Federal tax cost of investments | $1,897,277,322 |
Gross unrealized appreciation on investments | 983,521 |
Gross unrealized depreciation on investments | (236,869,993) |
Net unrealized depreciation on investments | $(235,886,472) |
2. DERIVATIVE FINANCIAL INSTRUMENTS
The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates.
In pursuit of the Fund's investment objectives, the Fund may seek to use derivatives to increase or decrease its exposure to the following market risks:
Equity Risk - The risk that relates to the change in value of equity securities as they relate to increases or decreases in the general market.
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell or close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligations to the Fund. Investing in derivatives may also involve greater risks than investing directly in the underlying assets, such as losses in excess of any initial investment and collateral received. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts
The Fund uses futures contracts to capitalize on expected changes in the shape of the yield curve and to control overall interest rate exposure. A futures contract is an agreement between two parties to buy or sell a specified underlying investment for a fixed price at a specified future date. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange.The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the value of the contracts and the underlying securities that comprise the index, or that the clearinghouse will fail to perform its obligations.
Futures contracts are reported in a table following the Schedule of Investments. Upon entering into a futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Receipts or payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuations in the fair value of the underlying security. This is recorded as variation margin on futures contracts on the Statement of Assets and Liabilities. When the Fund enters into a closing transaction, it will realize, for book
Semi-Annual Report - October 31, 2022
purposes, a gain or loss equal to the difference between the value of the futures contract at the time it was opened or purchased and its value at the time it was closed, and is reflected in net realized gain or loss on the Statement of Operations. The Fund held an average of 177 futures contracts, net of both long and short positions, for the reporting period.
Derivative Financial Instruments Categorized by Risk Exposure
Valuation of derivative investments as of October 31, 2022 is as follows:
Liability Derivatives | ||||
Risk Exposure | Statement of Assets and Liabilities Location | Fair Value | ||
Equity contracts (futures contracts) | Net unrealized depreciation on futures contracts | $(3,622,322) (a) |
(a)Includes cumulative depreciation of futures contracts as reported in the Fund’s Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
The effect of derivative investments for the period ended October 31, 2022 is as follows:
Realized Gain or (Loss) | Change in Unrealized Appreciation (Depreciation) | |||||
Risk Exposure | Statement of Operations Location | Statement of Operations Location | ||||
Equity contracts (futures contracts) | Net realized loss on futures contracts | $(37,295) | Net change in unrealized depreciation on futures contracts | $(3,622,322) |
3. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Empower Funds has entered into an investment advisory agreement with Empower Capital Management, LLC (ECM or the Adviser), a wholly-owned subsidiary of Empower Annuity Insurance Company of America (Empower of America). As compensation for its services to Empower Funds, the Adviser receives monthly compensation at the annual rate of 0.38% of the Fund’s average daily net assets. Certain administration and accounting services fees for the Fund are included in the investment advisory agreement.
The Adviser has contractually agreed to waive fees or reimburse expenses that exceed an annual rate of 0.45% of the Fund's average daily net assets attributable to each Class, including management fees and expenses paid directly by the Fund, excluding shareholder service fees and certain extraordinary expenses (the "Expense Limit"). The agreement's current term ends on August 28, 2023 and automatically renews for one-year unless terminated upon written notice within 90 days of the end of the current term or upon termination of the investment advisory agreement. The amount waived or reimbursed, if any, is reflected in the Statement of Operations.
The Adviser is permitted upon approval by the Board of Directors to recoup amounts waived or reimbursed by the Fund in future periods, not exceeding three years following the particular waiver/reimbursement, provided the total annual operating expenses of each Class of the Fund plus such recoupment do not exceed the lesser of the Expense Limit that was in place at the time of the waiver/reimbursement or the Expense Limit in place at the time of recoupment. At October 31, 2022, the amounts available for recoupment were as follows:
Expires April 30, 2023 | Expires April 30, 2024 | Expires April 30, 2025 | Expires October 31, 2025 | Recoupment of Past Reimbursed Fees by the Adviser | ||||
$120,062 | $79,227 | $33,917 | $18,498 | $0 |
The Adviser and Empower Funds have entered into a sub-advisory agreement with Loomis, Sayles & Company, L.P. (the Sub-Adviser). The Adviser is responsible for compensating the Sub-Adviser for its services.
Semi-Annual Report - October 31, 2022
Empower Funds entered into a shareholder services agreement with Empower, LLC (Empower), an affiliate of ECM and subsidiary of Empower of America. Pursuant to the shareholder services agreement, Empower provides various recordkeeping, administrative and shareholder services to shareholders and receives from the Investor Class shares of the Fund a fee equal to 0.35% of the average daily net asset value of the applicable share class.
Empower Financial Services, Inc. (the Distributor), is a wholly-owned subsidiary of Empower of America and the principal underwriter to distribute and market the Fund.
Certain officers of Empower Funds are also directors and/or officers of Empower of America or its subsidiaries. No officer or interested director of Empower Funds receives any compensation directly from Empower Funds. The total compensation paid to the independent directors with respect to all forty-five funds for which they serve as directors was $983,250 for the period January 1 through October 31, 2022.
4. PURCHASES AND SALES OF INVESTMENTS
For the period ended October 31, 2022, the aggregate cost of purchases and proceeds from sales of investments (including mortgage dollar rolls and TBA transactions, excluding all U.S. Government securities and short-term securities) were $95,484,916 and $126,431,720, respectively. For the same period, the aggregate cost of purchases and proceeds from sales of long-term U.S. Government securities were $1,149,732,023 and $1,191,588,902, respectively.
5. SECURITIES LOANED
The Fund has entered into a securities lending agreement with its custodian as securities lending agent. Under the terms of the agreement the Fund receives income after deductions of other amounts payable to the securities lending agent or to the borrower from lending transactions. In exchange for such fees, the securities lending agent is authorized to loan securities on behalf of the Fund against receipt of cash collateral at least equal in value at all times to the value of the securities loaned plus accrued interest. The fair value of the loaned securities is determined daily at the close of business of the Fund and necessary collateral adjustments are made between the Fund and its counterparties on the next business day through the delivery or receipt of additional collateral. The Fund also continues to receive interest or dividends on the securities loaned. Cash collateral is invested in securities approved by the Board of Directors. The Fund bears the risk of any deficiency in the amount of collateral available for return to a borrower due to a loss in an approved investment. As of October 31, 2022, the Fund had securities on loan valued at $34,960,338 and received collateral as reported on the Statement of Assets and Liabilities of $36,294,817 for such loan which was invested in repurchase agreements collateralized by U.S. Government or U.S. Government Agency securities and Government Money Market Mutual Funds. The repurchase agreements can be jointly purchased with other lending agent clients and in the event of a default by the counterparty, all lending agent clients would share ratably in the collateral.
Under the securities lending agreement, the collateral pledged is, by definition, the securities loaned against the cash borrowed. The following table summarizes the cash collateral liability under the securities lending agreement by class of securities loaned as of October 31, 2022. Additional information regarding the Fund's securities on loan is included in the Schedule of Investments.
Security lending transactions | Total (a) |
Corporate Bonds and Notes | $28,047,979 |
U.S. Treasury Bonds and Notes | 8,246,838 |
Total secured borrowings | $36,294,817 |
(a) | The remaining contractual maturity of all of the securities lending transactions is overnight and continuous. |
6. INDEMNIFICATIONS
The Fund’s organizational documents provide current and former officers and directors with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semi-Annual Report - October 31, 2022
7. SUBSEQUENT EVENTS
Management has reviewed all events subsequent to October 31, 2022, including the estimates inherent in the process of preparing these financial statements through the date the financial statements were issued. No subsequent events requiring adjustments or disclosures have occurred.
The Board of Directors of Empower Funds, Inc. recently approved a change to the Fund’s fiscal year end from April 30 to December 31, beginning December 31, 2022.
Semi-Annual Report - October 31, 2022
Availability of Quarterly Portfolio Schedule
Empower Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form NPORT-EX. Empower Funds’ Forms NPORT-EX 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.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that Empower Funds uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-831-7129, and on the SEC website at http://www.sec.gov.
Availability of Proxy Voting Record
Information regarding how Empower Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-866-831-7129, and on the SEC website at http://www.sec.gov.
Funds’ Liquidity Risk Management Program
The Funds have adopted and implemented a written liquidity risk management program as required by Rule 22e-4 under the Investment Company Act. The program is designed to assess and manage each Fund’s liquidity risk, taking into consideration the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short and long-term cash flow projections, and its cash holdings and access to other funding sources. The Funds’ Board of Directors approved the designation of the ECM Liquidity Risk Management Committee as the administrator of the liquidity risk management program. The Liquidity Risk Management Committee includes representatives from the Adviser’s Risk, Trading, Investment Valuation, and Regulatory Compliance departments and is responsible for the program’s administration and oversight and for reporting to the Board on at least an annual basis regarding, among other things, the program’s operation, adequacy and effectiveness. The Liquidity Risk Management Committee reassessed each Fund’s liquidity risk profile, considering additional data gathered through March 31, 2022 and the adequacy and effectiveness of the liquidity risk management program’s operations since March 31, 2021 (the “covered period”) in order to prepare a written report to the Board of Directors for review at its meeting held on June 16, 2022. The report stated that:
(i) the program performed well during the covered period and meets the needs and profile of the Funds,
(ii) the Funds benefit from the stability of their shareholder base,
(iii) the selection of two vendors to supply liquidity measurement products has proven to be extremely helpful,
(iv) no changes were proposed to the program as of the date of the report, and
(v) no Fund approached the internal triggers set by the Liquidity Risk Management Committee or the regulatory percentage limitation (15%) on holdings in illiquid investments.
The report also stated that it continues to be appropriate to not set a “highly liquid investment minimum” for any Funds because the Funds primarily hold “highly liquid investments” and reviewed the changes to the program since inception.
ITEM 2. | CODE OF ETHICS. |
Not required in filing.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not required in filing.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not required in filing.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | INVESTMENTS. |
(a) The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
(b) Not applicable.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors since the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) The registrant's principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-CSR is recorded, processed, summarized and reported, within
the time periods specified in the commission's rules and forms and that such material information is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.
(b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. | DISCLOSURE OF LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
(a) (1) Not required in filing.
(3) Not applicable.
(4) Not applicable.
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.
EMPOWER FUNDS, INC.
By: | /s/ Jonathan D. Kreider |
Jonathan D. Kreider
President & Chief Executive Officer
President & Chief Executive Officer
Date:December 16, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jonathan D. Kreider |
Jonathan D. Kreider
President & Chief Executive Officer
President & Chief Executive Officer
Date:December 16, 2022
By: | /s/ Kelly B. New |
Kelly B. New
Treasurer
Treasurer
Date:December 16, 2022