UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-4279 | |||||||
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Securian Funds Trust | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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400 Robert Street North St. Paul, Minnesota |
| 55101-2098 | ||||||
(Address of principal executive offices) |
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Eric J. Bentley, Esq. 400 Robert Street North St. Paul, Minnesota 55101-2098 | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | (651) 665-3500 |
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Date of fiscal year end: | December 31 |
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Date of reporting period: | December 31, 2014 |
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Securian Funds Trust
Annual Report
December 31, 2014
Offered in Minnesota Life Insurance Company and
Securian Life Insurance Company Variable Products
SFT Advantus Bond Fund
SFT Advantus Index 400 Mid-Cap Fund
SFT Advantus Index 500 Fund
SFT Advantus International Bond Fund
SFT Advantus Managed Volatility Fund
SFT Advantus Money Market Fund
SFT Advantus Mortgage Securities Fund
SFT Advantus Real Estate Securities Fund
SFT Ivy® Growth Fund
SFT Ivy® Small Cap Growth Fund
SFT Pyramis® Core Equity Fund
SFT T. Rowe Price Value Fund
Financial security
for the long run ®
Securian Funds Trust
Supplement dated February 6, 2015 to the Prospectus of Securian Funds Trust dated May 1, 2014
The text on page 19, under the caption "SFT Advantus International Bond Fund: Management," is replaced by the following:
SFT Advantus International Bond Fund: Management
The Fund is advised by Advantus Capital Management, Inc. (Advantus Capital) and sub-advised by Franklin Advisers, Inc. (Franklin). The following individuals serve as the Fund's primary portfolio managers:
Name and Title | Primary Manager Since | ||||||
Michael J. Hasenstab, Ph. D. Executive Vice President, Portfolio Manager and Chief Investment Officer, Global Bonds Franklin Templeton Fixed Income Group | January 1, 2008 | ||||||
Christine Zhu Portfolio Manager and Quantitative Research Analyst Franklin Templeton Fixed Income Group | May 1, 2014 |
The text on page 42, under the caption "SFT Ivy® Growth Fund: Management," is replaced by the following:
SFT Ivy® Growth Fund: Management
The Fund is advised by Advantus Capital Management, Inc. (Advantus Capital) and sub-advised by Waddell & Reed Investment Management Company (WRIMCO). 'Ivy' is the registered service mark of Ivy Funds Distributor, Inc., an affiliate of WRIMCO. The following individuals serve as the Fund's primary portfolio managers:
Name and Title | Primary Manager Since | ||||||
Daniel P. Becker, Senior Vice President, WRIMCO | May 1, 2014 | ||||||
Phillip J. Sanders Senior Vice President and Chief Investment Officer, WRIMCO | May 1, 2014 |
Please retain this supplement for future reference.
F82780 2-2015
The text relating to SFT Advantus International Bond Fund on page 98, under the caption "Portfolio Managers," is replaced by the following:
Portfolio Managers
Fund | Portfolio Manager and Title | Primary Portfolio Manager Since | Business Experience During Past Five Years | ||||||||||||
SFT Advantus International Bond | Michael J. Hasenstab, Ph. D. Executive Vice President, Portfolio Manager and Chief Investment Officer, Global Bonds Franklin Templeton Fixed Income Group | January 1, 2008 | Executive Vice President and Chief Investment Officer, Global Bonds, Franklin Templeton Fixed Income Group; Senior Vice President, Franklin, 2007-2014; Portfolio Manager/Research Analyst, Franklin, since 2001 | ||||||||||||
Christine Zhu Portfolio Manager and Quantitative Research Analyst Franklin Templeton Fixed Income Group | May 1, 2014 | Portfolio Manager and Quantitative Research Analyst since 2007, Franklin Templeton Fixed Income Group |
The text relating to SFT Ivy® Growth Fund on page 99, under the caption "Portfolio Managers," is replaced by the following:
Portfolio Managers
Fund | Portfolio Manager and Title | Primary Portfolio Manager Since | Business Experience During Past Five Years | ||||||||||||
SFT Ivy® Growth Fund | Daniel P. Becker Senior Vice President, WRIMCO | May 1, 2014 | Portfolio Manager, Waddell & Reed Advisors Vanguard Fund since July, 1997; Portfolio Manager, Ivy Large Cap Growth Fund since June, 2000; Co-portfolio manager of the large cap growth product suite since July 2006, comprising institutional accounts, Waddell & Reed Advisors Vanguard Fund, Ivy Large Cap Growth Fund and Ivy Funds VIP Growth. | ||||||||||||
Phillip J. Sanders Senior Vice President and Chief Investment Officer, WRIMCO | May 1, 2014 | Portfolio Manager, Ivy Funds VIP Growth (formerly W&R Target Funds Growth Portfolio) since January, 1997. Portfolio Manager, Waddell & Reed Advisors Vanguard Fund since July, 1997; Portfolio Manager, Ivy Large Cap Growth Fund since June, 2000; Co-portfolio manager of the large cap growth product suite since July, 2006, comprising institutional accounts, Waddell & Reed Advisors Vanguard Fund, Ivy Large Cap Growth Fund and Ivy Funds VIP Growth. |
TABLE OF CONTENTS
Page No. | |||||||
Letter from the President | 1 | ||||||
Portfolio Manager Reviews | |||||||
SFT Advantus Bond Fund | 2 | ||||||
SFT Advantus Index 400 Mid-Cap Fund | 6 | ||||||
SFT Advantus Index 500 Fund | 8 | ||||||
SFT Advantus International Bond Fund | 10 | ||||||
SFT Advantus Managed Volatility Fund | 14 | ||||||
SFT Advantus Money Market Fund | 18 | ||||||
SFT Advantus Mortgage Securities Fund | 20 | ||||||
SFT Advantus Real Estate Securities Fund | 24 | ||||||
SFT Ivy® Growth Fund | 27 | ||||||
SFT Ivy® Small Cap Growth Fund | 30 | ||||||
SFT Pyramis® Core Equity Fund | 33 | ||||||
SFT T. Rowe Price Value Fund | 36 | ||||||
Report of Independent Registered Public Accounting Firm | 38 | ||||||
Investments In Securities | |||||||
SFT Advantus Bond Fund | 39 | ||||||
SFT Advantus Index 400 Mid-Cap Fund | 45 | ||||||
SFT Advantus Index 500 Fund | 51 | ||||||
SFT Advantus International Bond Fund | 58 | ||||||
SFT Advantus Managed Volatility Fund | 68 | ||||||
SFT Advantus Money Market Fund | 72 | ||||||
SFT Advantus Mortgage Securities Fund | 74 | ||||||
SFT Advantus Real Estate Securities Fund | 78 | ||||||
SFT Ivy® Growth Fund | 79 | ||||||
SFT Ivy® Small Cap Growth Fund | 81 | ||||||
SFT Pyramis® Core Equity Fund | 83 | ||||||
SFT T. Rowe Price Value Fund | 85 | �� | |||||
Financial Statements | |||||||
Statements of Assets and Liabilities | 88 | ||||||
Statements of Operations | 90 | ||||||
Statements of Changes in Net Assets | 92 | ||||||
Financial Highlights | 96 | ||||||
Notes to Financial Statements | 108 | ||||||
Fund Expense Examples | 124 | ||||||
Proxy Voting and Quarterly Holdings Information | 125 | ||||||
Trustees and Executive Officers | 127 |
Letter from the President
This year has seen some of the strongest growth for the U.S. economy since the financial crisis. The economy was doing relatively well with business sentiment near cycle highs when oil prices started to decline, likely providing a boost to consumers. Outside the U.S., slowing economies in Europe, China and elsewhere caused central banks to ease monetary policy.
The stock market hit a new high in 2014 despite a significant setback early in the fourth quarter. Movements in oil prices added volatility to the market. Seven of the nine equity sectors ended the year with positive returns. While the Energy sector was hit hard late in the year by falling crude prices and ended down 7.41 percent, the Transportation sector ended with the strongest return of 31.97 percent followed closely by Real Estate stocks at 31.5 percent. We saw good earnings growth over the year and some margin improvement in the fourth quarter. We expect stock returns to be driven predominantly by earnings growth in the coming year and not multiple expansion.
Contrary to consensus expectations, interest rates were driven lower in 2014, leading to strong returns for bond funds. The Federal Reserve continued to hold the federal funds rate in a target range around zero, the same range it has been since the end of 2008. The Fed is in transition mode. It wound down the quantitative easing program and is no longer buying additional Treasuries and Agency MBS. It has also stated that it is likely to start hiking rates sometime in 2015, provided we see continued improvement in the labor markets and an increase in inflation.
Inflation has remained well below the Fed's 2 percent goal and allows them to remain patient before raising rates. With the rest of the developed world's central banks contemplating further easing, we are starting to doubt that the Fed will raise rates until late 2015. While growth of the economy is an important determinant for interest rates, falling oil prices and their impact on inflation in the coming quarters will likely dampen the potential for any significant rise in rates.
We see many of the same themes that impacted 2014 carrying over into 2015. We expect economic growth to remain strong. Consumers will surely get a boost as energy prices drop. Assuming consumers increase their discretionary spending in line with their windfall from lower prices at the pump, the economy should continue its positive, healthy trend. This should be good for equities. However, the market's appreciation has generally outpaced fundamentals and a modest correction could be in store.
Interest rates may rise, but still not by much, with low growth and deflationary pressures affecting Europe. We believe fixed income credit and real estate are good bets in the coming year, as moderate growth and low inflation are a great backdrop for these sectors. With the U.S. tightening monetary policy, we also expect higher volatility in stocks and high-yield bonds.
Sincerely,
David Kuplic
President, Securian Funds Trust
1
Performance Update
Christopher Sebald, CFA, David Land, CFA and Thomas Houghton, CFA Portfolio Managers
The SFT Advantus Bond Fund seeks as high a level of long-term total return as is consistent with prudent investment risk. Preservation of capital is a secondary objective. The SFT Advantus Bond Fund invests in long-term, fixed income, high quality debt instruments. The risks incurred by investing in debt instruments include, but are not limited to, reinvestment of prepaid debt obligations at lower rates of return, and the inability to reinvest at higher interest rates when debt obligations are prepaid more slowly than expected. In addition, the net asset value of the SFT Advantus Bond Fund may fluctuate in response to changes in interest rates and is not guaranteed.
SFT Advantus Bond Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 6.29 percent over the 12 months ending December 31, 2014, outperforming the Barclays U.S. Aggregate Bond Index, which returned 5.97 percent over the same period.
What influenced the Fund's return during the past 12 months?
After a slow start, the economy ended the year on a strong note. Throughout the year the unemployment rate fell as the economy expanded. The Fed, encouraged by a growing economy and an improving labor market, continued to reduce, and finally terminated, its bond buying program. For nearly 6 years the Fed had been providing support to the economy, and to a degree, the markets. Investors can anticipate a bumpier ride with the Fed moving to the sideline and potentially raising short term interest rates in 2015.
The commodities market struggled. The drop in oil prices was particularly pronounced. Lower global oil demand and increased U.S. production combined to drive oil prices lower. Soft demand was in part rooted in the slow growth in Europe and the emerging markets. Europe continues to dance on the edge of recession, and emerging markets, particularly China, are ratcheting down growth as they reduce investment and migrate from export-led growth. If oil prices remain low, there could be significant impacts on U.S. oil producers. On the flipside, consumers should benefit from reduced energy prices, particularly for gasoline which is now near $2 per gallon, a level not seen in years.
Slower growth outside the U.S. has led to even more dramatic drops in global interest rates and inflation. In fact, in Europe negative rates are becoming more common. Europe is besieged by persistently subpar economic growth, a declining workforce and persistent problems with Greece.
Yields on the shorter dated maturities rose on concerns the Fed would soon raise interest rates. However, yields on longer dated bonds fell in sympathy with the rest of the world and diminished inflation expectations.
What other market conditions or events influenced the Fund's return during the past 12 months?
The U.S. dollar rose significantly against nearly all currencies and was up very strong versus major currencies such as the euro and the yen. The U.S. dollar rose by 12 percent versus the euro and the yen and 6 percent versus the British pound. The rise in the U.S. dollar was attributed to expectations for tightening U.S. monetary policy, contrasting looser monetary policies in Europe and Asia. While a strong dollar may be better for consumers in the short run, it certainly won't help exports or employment in the medium term.
Inflation expectations fell considerably in both the U.S. and most of the rest of the world. Much of this was due to falling commodity prices, but also due to the weaker global demand picture. This caused rates to fall and volatility to rise in most global markets, particularly in the latter half of the year. Consequently, spreads widened relative to Treasuries in most of the non-government sectors.
What strategies and techniques did you employ that affected Fund performance?
Given our view that interest rates were not likely to rise much during the year, we maintained consistent maturity and duration position in the Fund's holdings. Early in
2
the year we positioned the Fund for an improving economy and narrowing of non-government bond spreads. This proved to be a sound strategy as spreads narrowed to post-crisis tights by June. As spreads tightened we became more careful and cut back on our exposures to corporate bonds through the second and third quarters.
Volatility picked up in the second half and spreads widened substantially. By the end of the third quarter, investment grade and high-yield bonds had given up all their first half gains. We took advantage of the widening in spreads by adding back to our exposure to corporates in the fourth quarter.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
We continued to emphasize corporate bonds and commercial mortgage-backed securities (CMBS) relative to the Fund's benchmark. We remained overweight in the transportation sector, particularly in bonds issued by airlines. This sector continues to benefit from lower labor costs, capacity discipline and, more recently, lower fuel costs. We also maintained an overweight position in the energy space, primarily in pipelines. This sector has much less commodity exposure than the exploration and production space, but it has not been immune to the volatility that has occurred in the overall energy sector.
We also maintained the Fund's overweight exposure to financials. We continue to like the fundamentals in banks, as the sector continues to benefit from lower balance sheet leverage and lower business risk, although spreads have closed much of the gap relative to industrials that existed after the financial crisis. REITs continue to offer value and the fundamentals in the space are generally strong.
We increased exposure to the CMBS space. Fundamentals in commercial real estate remain firm, but we are wary of signs of declining underwriting standards. We reduced exposure and remain substantially underweight in the government-related sector. There is little relative value to be found in the space.
A lot is riding on where the price of oil shakes out. At the current price or lower, defaults in the high-yield sector are certain to rise, and may do so fairly rapidly. There will surely be a consumer boost in the cards too. The economy was already doing well with business sentiment near cycle highs and employment at its strongest point of our 5+ year recovery and expansion. Lower oil prices will certainly provide an additional consumer boost to the already healthy trend. While growth is the most important determinant for interest rates, falling oil prices and their impact on inflation in the coming quarters will likely dampen the potential for any significant rise in rates.
Divergent growth among the U.S., Europe and emerging markets is driving diverging monetary policy. The U.S. is expected to tighten monetary policy while Europe, Japan and China will ease monetary policy in 2015. This is the first time in the current expansion that developed countries' central bank policies will be at odds. With the U.S. tightening, we expect higher volatility in stocks and high-yield bonds along with somewhat rising interest rates. Within the investment grade market, the conditions are good for narrowing spreads in mortgage-backed securities and commercial mortgage-backed securities as supply is still very low in these sectors. Investment grade corporate bond spreads begin the year at attractive valuations, having risen as a result of the fallout from lower oil prices. While volatility will likely rise and could impact the investment grade bond sectors as well during the year, we look for good returns in corporate bonds overall, based on their attractive valuations and limited rise in interest rates.
3
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
U.S. Treasury Note 1.625%, 12/31/19 | $ | 12,191,880 | 3.3 | % | |||||||
U.S. Treasury Note 2.000%, 10/31/21 | 10,537,095 | 2.9 | % | ||||||||
U.S. Treasury Note 0.875%, 01/31/18 | 9,205,324 | 2.5 | % | ||||||||
U.S. Treasury Bond 3.125%, 08/15/44 | 8,343,356 | 2.3 | % | ||||||||
U.S. Treasury Bond 5.375%, 02/15/31 | 7,129,430 | 1.9 | % | ||||||||
BNSF Funding Trust I 6.613%, 12/15/55 | 4,272,262 | 1.2 | % | ||||||||
Federal National Mortgage Association 3.500%, 11/01/41 | 3,836,790 | 1.0 | % | ||||||||
U.S. Treasury Note 2.250%, 11/15/24 | 3,699,692 | 1.0 | % | ||||||||
HSBC Bank USA NA 6.000%, 08/09/17 | 3,482,331 | 0.9 | % | ||||||||
Chase Issuance Trust 2.770%, 03/15/23 | 3,458,569 | 0.9 | % | ||||||||
$ | 66,156,729 | 17.9 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of net assets)
(Unaudited)
4
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Bond Fund,
Barclay's U.S. Aggregate Bond Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus Bond Fund's Class 2 shares total return compared to the Barclays U.S. Aggregate Bond Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2004 through December 31, 2014, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
The Barclays U.S. Aggregate Bond Index is an unmanaged benchmark composite representing average market-weighted performance of U.S. Treasury and agency securities, investment-grade corporate bonds and mortgage-backed securities with maturities greater than one year.
5
Performance Update
James Seifert Portfolio Manager
The SFT Advantus Index 400 Mid-Cap Fund seeks to provide investment results generally corresponding to the aggregate price and dividend performance of publicly traded common stocks that comprise the Standard & Poor's MidCap 400 Index (S&P 400). It is designed to provide an economical and convenient means of maintaining a diversified portfolio in this equity security area as part of an over-all investment strategy. The risks incurred by investing in the SFT Advantus Index 400 Mid-Cap Fund include, but are not limited to, the risk that the Fund may not be able to replicate the performance of the S&P 400, and the risk of declines in the market for mid-cap stocks or in the equity markets generally.
SFT Advantus Index 400 Mid-Cap Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 9.24 percent over the 12 months ending December 31, 2014, underperforming the Standard & Poor's MidCap 400 Index, which returned 9.77 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Fund is passively managed and is fully invested and holds all 400 names at published free float adjusted index weights. The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P MidCap 400 Index.
Eight of the nine sectors ended the year with positive returns. The energy sector was hit hard late in the year by falling crude prices and ended the period down 20.6 percent. The transportation sector ended the year with the strongest return of 26 percent. In terms of size, decile 5 (decile segments consist of 40 names), stocks with market caps between 3.1 and 3.7 billion, ended the year with the strongest return of 13.6 percent.
What other market conditions or events influenced the Fund's performance during the the past 12 months?
Stocks hit a new high, despite a significant setback early in the fourth quarter. Movements in oil prices added volatility to the market, but stocks still reached a new high by the end of the year. We saw good earnings growth and some margin improvement late in 2014, particularly with the benefit of oil prices.
Despite the drop in oil and fallout on energy producers, the U.S. economy is on strong footing and low oil prices will provide a boost to consumers. The economy was already doing relatively well with business sentiment near cycle highs. This year has seen the strongest growth for the U.S. economy since the financial crisis.
What will affect the Fund going forward?
We expect growth to remain strong, despite the drop in oil. Consumers will surely get a boost as energy prices remain relatively low. Assuming consumers increase their discretionary spending as a result, the economy should continue its positive, healthy trend.
Divergent growth among the U.S., Europe and emerging markets is driving diverging monetary policy. The U.S. is expected to tighten monetary policy while Europe, Japan and China will ease monetary policy in 2015. With the U.S. tightening, we expect higher volatility in stocks along with somewhat rising interest rates.
6
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Skyworks Solutions, Inc. | 26,655 | $ | 1,938,085 | 0.8 | % | ||||||||||
Equinix, Inc. | 7,734 | 1,753,530 | 0.8 | % | |||||||||||
Advance Auto Parts, Inc. | 10,205 | 1,625,452 | 0.7 | % | |||||||||||
SL Green Realty Corp. | 13,501 | 1,606,889 | 0.7 | % | |||||||||||
Henry Schein, Inc. | 11,774 | 1,603,030 | 0.7 | % | |||||||||||
Hanesbrands, Inc. | 13,966 | 1,558,885 | 0.7 | % | |||||||||||
Endo International PLC | 21,490 | 1,549,859 | 0.7 | % | |||||||||||
Realty Income Corp. | 31,133 | 1,485,355 | 0.7 | % | |||||||||||
Signet Jewelers, Ltd. | 11,210 | 1,474,900 | 0.6 | % | |||||||||||
Church & Dwight Co., Inc. | 18,703 | 1,473,984 | 0.6 | % | |||||||||||
$ | 16,069,969 | 7.0 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Index 400 Mid-Cap Fund,
S&P MidCap 400® Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus Index 400 Mid-Cap Fund's Class 2 shares total return compared to the S&P MidCap 400 Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2004 through December 31, 2014, assuming reinvestment of distributions, if any.
"Standard & Poor's®", "S&P®", "Standard & Poor's MidCap 400" and "S&P MidCap 400" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed for use by the Securian Funds Trust—SFT Advantus Index 400 Mid-Cap Fund. The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
S&P MidCap 400 Index consists of 400 domestic stocks chosen for market size (median market capitalization of about $3.7 billion), liquidity and industry group representation. It is a market-weighted index (stock price times shares outstanding), with each stock affecting the index in proportion to its market value.
7
Performance Update
James Seifert Portfolio Manager
The SFT Advantus Index 500 Fund seeks investment results that correspond generally to the price and yield performance of the common stocks included in the Standard and Poor's Corporation 500 Composite Stock Index (S&P 500). It is designed to provide an economical and convenient means of maintaining a broad position in the equity market as part of an overall investment strategy. The risks incurred by investing in the SFT Advantus Index 500 Fund include, but are not limited to, the risk that the Fund may not be able to replicate the performance of the S&P 500, and the risk of declines in the equity markets generally.
SFT Advantus Index 500 Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 13.13 percent over the 12 months ending December 31, 2014, underperforming the Standard & Poor's 500 Index, which returned 13.69 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Fund is passively managed and is fully invested and holds all 500 names at published float adjusted index weights. The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500 Index.
Seven of the nine sectors ended the year with positive returns. The energy sector was hit hard late in the year by falling crude prices and ended the period down 7.41 percent. The transportation sector ended the year with the strongest return of 31.97 percent. In terms of size, decile 5 (decile segments consist of 50 names), stocks with market caps between 16.4 and 21.2 billion, ended the year with the strongest return of 22.8 percent. The mega cap names within the index, decile 1, representing 47 percent weight ended the period with a return of 11.7 percent.
What other market conditions or events influenced the Fund's performance during the past 12 months?
Stocks hit a new high, despite a significant setback early in the fourth quarter. Movements in oil prices added volatility to the market, but stocks still reached a new high by the end of the year. We saw good earnings growth and some margin improvement late in 2014, particularly with the benefit of oil prices.
Despite the drop in oil and fallout on energy producers, the U.S. economy is on strong footing and low oil prices will provide a boost to consumers. The economy was already doing relatively well with business sentiment near cycle highs. This year has seen the strongest growth for the U.S. economy since the financial crisis.
What will affect the Fund going forward?
We expect growth to remain strong, despite the drop in oil. Consumers will surely get a boost as energy prices remain relatively low. Assuming consumers increase their discretionary spending as a result, the economy should continue its positive, healthy trend.
Divergent growth among the U.S., Europe and emerging markets is driving diverging monetary policy. The U.S. is expected to tighten monetary policy while Europe, Japan and China will ease monetary policy in 2015. With the U.S. tightening, we expect higher volatility in stocks along with somewhat rising interest rates.
8
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Apple, Inc. | 202,055 | $ | 22,302,831 | 3.5 | % | ||||||||||
Exxon Mobil Corp. | 145,888 | 13,487,346 | 2.1 | % | |||||||||||
Microsoft Corp. | 283,982 | 13,190,964 | 2.1 | % | |||||||||||
Johnson & Johnson | 96,435 | 10,084,208 | 1.6 | % | |||||||||||
Berkshire Hathaway, Inc.—Class B | 62,792 | 9,428,219 | 1.5 | % | |||||||||||
Wells Fargo & Co. | 162,638 | 8,915,815 | 1.4 | % | |||||||||||
General Electric Co. | 345,972 | 8,742,713 | 1.4 | % | |||||||||||
The Procter & Gamble Co. | 93,093 | 8,479,841 | 1.3 | % | |||||||||||
JPMorgan Chase & Co. | 128,787 | 8,059,494 | 1.3 | % | |||||||||||
Chevron Corp. | 65,129 | 7,306,171 | 1.2 | % | |||||||||||
$ | 109,997,602 | 17.4 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Index 500 Fund,
S&P 500® Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus Index 500 Fund's Class 2 shares total return compared to the S&P 500 Index (as adjusted for dividend reinvestment) and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2004 through December 31, 2014, assuming reinvestment of distributions, if any.
"Standard & Poor's®", "S&P®", "Standard & Poor's 500" and "S&P 500" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed for use by Securian Funds Trust—SFT Advantus Index 500 Fund. The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall.
9
Performance Update
Michael Hastenstab, Ph.D. and Christine Zhu Portfolio Managers Franklin Advisers, Inc.
The SFT Advantus International Bond Fund seeks to maximize current income consistent with protection of principal. The Fund pursues its objective by investing primarily in debt securities issued by issuers located anywhere in the world. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, Franklin Advisers, Inc. provides investment advice to the SFT Advantus International Bond Fund under a sub-advisory agreement. Investment risks associated with international investing in addition to other risks include currency fluctuations, political and economic instability, and differences in accounting standards when investing in foreign markets.
SFT Advantus International Bond Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 1.70 percent over the 12 months ending December 31, 2014, outperforming the Citigroup World Government Bond Index, which returned -0.48 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Fund's outperformance of its benchmark in 2014 was primarily attributable to currency positions. Interest-rate strategies detracted from relative results, while sovereign credit exposures had a neutral effect. Among currencies, the Fund's underweighted positions in the euro and the Japanese yen significantly contributed to relative return. Overweighted currency positions in Latin America and Asia ex-Japan detracted from relative results, as did overweighted positions in peripheral European currencies against the euro. The Fund maintained a defensive approach regarding interest rates in developed and emerging markets. Select underweighted duration exposures in Europe and underweighted duration exposure in the United States detracted from relative performance.
What other market conditions or events influenced the Fund's return during the past 12 months?
During the period, global financial markets were broadly influenced by the pickup in growth in the United States, the economic stabilization in China, and the abundance of global liquidity from the Bank of Japan (BOJ) and the European Central Bank (ECB). We continued to see differentiation among specific emerging-market economies; some have healthy current account and fiscal balances with strong export-driven economies, while others struggle with deficits and economic imbalances.
The U.S. dollar broadly strengthened over the course of 2014 while oil prices weakened significantly, particularly over the final months of the year. Global liquidity from the BOJ and the ECB helped dampen volatility in emerging-market bonds, and it helped offset the withdrawal of liquidity from the ending of the US Federal Reserve's (Fed's) bond-buying program in October. However, several emerging-market currencies depreciated during the period.
In late October, the BOJ introduced a new round of massive quantitative easing (QE) with an indefinite time horizon. The annual level of asset-purchasing was raised to 80 trillion yen—a level that basically equates to the Fed's QE program that ended during the same month. The BOJ not only expanded the types of assets it could purchase, but also extended the maturity range to 10 years. We believe this massive amount of liquidity has significant implications for global markets as we believe that money printed in Japan is not likely to stay in Japan and that it will spread globally. Though Japan's QE has been positive for global risk assets, it contributed to further yen depreciation.
The Chinese economy has continued to have profound implications for the global economy. China's growth moderated during the period, but the economy did not face a "hard landing" and did not have a dire impact on global aggregate demand, in our view.
In Europe, economic data continued to be mixed with a persistent lack of inflation. We anticipate that low growth and low inflation will likely continue in the eurozone for quite a while; thus, we continue to expect further monetary easing measures from the ECB. Eurozone bond yields remained around historical lows at the end of the period. The ECB's renewed commitment to increase the size of its balance sheet will likely maintain weakening pressure on the euro, in our view.
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Ukrainian debt totaled 3.2 percent of the Fund as of December 31, 2014, and despite the escalation in the Ukrainian crisis, the Fund outperformed its benchmark over the 1 year period ending December 31, 2014. The Fund's allocation to the country is primarily through U.S. dollar denominated government bonds. Conditions in Ukraine remain quite fluid. We continue to evaluate the situation and note that the government's reform program continues forward despite the challenging environment.
What strategies and techniques did you employ that affected Fund performance?
Our overall duration positioning remained defensive, but we maintained exposures to a select number of countries that we believe have favorable conditions for yields to potentially remain even or shift lower.
We have continued to position for value in currencies across many developed- and emerging-market economies that we believe have robust growth fundamentals and attractive interest-rate differentials.
We continued to selectively invest in credit opportunities across emerging markets, with a particular focus on credit exposures in economies with strong growth indicators.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
In our assessment, global financial markets continued to be positively influenced by the pickup in growth in the United States, economic stabilization in China, and the abundance of global liquidity from the BOJ and ECB. We believe an abundance of global liquidity from the BOJ and ECB continued to help dampen potential volatility in emerging-market bonds in December. In our view, these overarching trends for global conditions appear likely to continue in the near term, though intermittent periods of volatility may occasionally surface.
In Europe, low inflation persisted while economic data continued to disappoint. We anticipate that low growth and low inflation will likely continue for quite a while; thus, we continue to expect further monetary-easing measures from the ECB. Eurozone bond yields continued to decline in December and remained around historical lows. The ECB's renewed commitment to increase the size of its balance sheet will likely maintain weakening pressure on the euro, in our view.
The core of our strategy remains positioning ourselves to navigate what we think is a rising-rate environment. Consequently, we have continued to position defensively with regard to duration while actively seeking opportunities that can potentially offer positive real yields without taking undue interest-rate risk. We favor countries that have solid underlying fundamentals and policymakers who have stayed ahead of the curve regarding fiscal, monetary and financial policy. We maintain that it is essential for investors to understand and differentiate between declines related to market noise from those caused by fundamental developments. When investing globally, many opportunities take time to materialize, and we are willing to ride through short-term volatility.
11
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
Korea Monetary Stabilization Bond (KRW)—2.900%, 12/02/15 | $ | 6,126,653 | 7.2 | % | |||||||
Ireland Government Bond (EUR)—5.400%, 03/13/25 | 4,483,502 | 5.3 | % | ||||||||
Korea Monetary Stabilization Bond (KRW)—2.790%, 06/02/16 | 4,106,361 | 4.8 | % | ||||||||
Mexican Bonos (MXN)—6.000%, 06/18/15 | 3,117,249 | 3.7 | % | ||||||||
Mexican Bonos (MXN)—8.000%, 12/17/15 | 3,109,437 | 3.7 | % | ||||||||
Hungary Government Bond (HUF)—5.500%, 12/22/16 | 2,570,989 | 3.0 | % | ||||||||
Russian Foreign Bond (USD)—7.500%, 03/31/30 | 2,418,077 | 2.8 | % | ||||||||
Korea Treasury Bond (KRW)—2.750%, 06/10/16 | 2,072,608 | 2.4 | % | ||||||||
Poland Government Bond (PLN)—5.750%, 09/23/22 | 2,057,193 | 2.4 | % | ||||||||
Korea Treasury Bond (KRW)—3.000%, 12/10/16 | 2,057,189 | 2.4 | % | ||||||||
$ | 32,119,258 | 37.7 | % |
^Excludes short-term investments.
Country Diversification (shown as a percentage of net assets)
Currency Diversification (shown as a percentage of net assets)
Americas | 92.22 | % | |||||
United States Dollar (USD) | 64.33 | % | |||||
Mexican Peso (MXN) | 13.86 | % | |||||
Chilean Peso (CLP) | 4.94 | % | |||||
Brazilian Real (BRL) | 4.93 | % | |||||
Canadian Dollar (CAD) | 4.16 | % | |||||
Asia Pacific | 23.16 | % | |||||
Republic of Korea Won (KRW) | 16.14 | % | |||||
Malaysian Ringgit (MYR) | 13.02 | % | |||||
Singapore Dollar (SGD) | 8.23 | % | |||||
Indonesian Rupiah (IDR) | 3.37 | % | |||||
Indian Rupee (INR) | 3.15 | % | |||||
Sri Lankan Rupee (LKR) | 1.43 | % | |||||
Philippine Peso (PHP) | 1.22 | % | |||||
Australian Dollar (AUD) | 0.01 | % | |||||
Japanese Yen (JPY)* | -23.41 | % | |||||
Europe* | -15.38 | % | |||||
Polish Zloty (PLN) | 7.57 | % | |||||
Hungarian Forint (HUF) | 5.42 | % | |||||
Swedish Krona (SEK) | 1.46 | % | |||||
Euro (EUR)* | -29.83 | % |
*A negative figure reflects net "short" exposure, designed to benefit if the value of the associated currency decreases. Conversely, the Fund's value would potentially decline if the value of the associated currency increases.
12
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus International Bond Fund,
Citigroup World Government Bond Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus International Bond Fund's Class 2 shares total return compared to the Citigroup World Government Bond Index, and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2004 through December 31, 2014, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
The Citigroup World Government Bond Index is a market capitalization weighted index consisting of the government bond markets from twenty-three countries. Country eligibility is determined based upon market capitalization and investability criteria. The index includes all fixed-rate bonds with a remaining maturity of one year or longer and with amounts outstanding of at least the equivalent of U.S. $25 million. Government securities typically exclude floating or variable rate bonds, U.S./Canadian savings bonds and private placements. Each bond must have a minimum rating of BBB-/Baa3 by S&P or Moody's.
13
Performance Update
David M. Kuplic, CFA and Craig M. Stapleton, CFA, FRM Portfolio Managers
The SFT Advantus Managed Volatility Fund seeks to maximize risk-adjusted total return relative to its blended benchmark index comprised of 60 percent S&P 500 Index and 40 percent Barclays U.S. Corporate Index (collectively, the Blended Benchmark Index).
The SFT Advantus Managed Volatility Fund invests primarily in Class 1 shares of SFT Advantus Index 500 Fund, an affiliated fund of the Securian Funds Trust, for equity exposure, in a basket of fixed income securities for fixed income exposure and certain derivative instruments. The Fund is subject to risks associated with such investments as described in detail in the prospectus. The net asset value of the Fund will fluctuate and is not guaranteed. It is possible to lose money by investing in the Fund. There is no assurance that efforts to manage Fund volatility will achieve the desired results.
SFT Advantus Managed Volatility Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 8.12 percent over the 12 months ending December 31, 2014. The blended benchmark index, which is comprised of 60 percent of the S&P 500 Index and 40 percent of the Barclays U.S. Corporate Index returned 11.24 percent over the same period.
What influenced the Fund's return during the past 12 months?
U.S. GDP growth proved resilient in 2014 compared to broad slowdowns globally, but U.S. inflation expectations dropped and did not maintain the Federal Reserve's target of 2 percent. With lower global interest rates and declining inflation expectations, the 10-year Treasury yield started the year at its high of 3.03 percent and declined consistently to end the year at 2.17 percent. The decrease in interest rates proved to be a strong tailwind for fixed income returns, and the Barclays U.S. Corporate Index increased by 7.46 percent over the same period. Strong economic performance in the United States helped U.S. equity markets, with the S&P 500 Index rising 13.69 percent. The underperformance of the Fund to the blended benchmark was a result of two periods of increased equity volatility in February and October, and the Fund's relative equity weight versus the 60 percent allocation in the benchmark. The Fund experienced negative returns versus the benchmark when the S&P 500 dropped, due to the Fund's higher allocation to the S&P 500 during the period. In addition, as a result of de-risking through lower allocation to the S&P 500 versus the benchmark, the Fund recovered a smaller portion of the recoveries' positive returns following the periods of volatility. Had the corrections in the equity markets continued, we would have expected the Fund to outperform the benchmark due to its lower equity allocation.
What other market conditions or events influenced the Fund's return during the past 12 months?
The volatility of the equity market remained low over the time period, with the S&P 500's volatility at 11.4 percent. The Fund's primary strategy is to capture strong equity returns that usually accompany periods of low market volatility, while avoiding the negative equity returns that usually accompany periods of high market volatility. Since the equity market remained docile, the Fund's equity weighting averaged 71.5 percent, allowing the Fund to capture much of the S&P 500's strong return.
What strategies and techniques did you employ that affected Fund performance?
As market volatility vacillated multiple times during the year, we took measured steps to increase and decrease the equity allocation within the Fund. We believe that measured movements during reallocation periods provide the best risk management overlay while maintaining strong performance results.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
In the fixed income category we purchased high quality Agency Mortgage Backed Securities (MBS) that had strong relative value compared to high quality corporate bonds. Agency MBS's are not constituents of the U.S. Investment Grade Corporate Index, but they provide a flight to quality diversification benefit that helps reduce the volatility of the Fund while maintaining strong fixed income yields.
WTI crude oil declined 46.5 percent from its June high to end the year at $53.7/bbl. Many forecasters are bracing for $30/bbl oil while energy dependent companies and countries are experiencing most of the damage from the valuation adjustment.
14
Economists continue to assure investors that lower oil prices will provide a huge budget boost for consumers, but the argument was countered when the Commerce Department showed that retail sales fell 0.9 percent in December after a 0.1 percent increase in November—the largest drop since last January. The hope is that the precipitous decline in oil is isolated to excess supply and that slowing global demand and rising deflationary forces are not the major culprits.
The language and actions of central banks have been strong drivers for the financial markets, but investors will be more focused on actual economic metrics globally in 2015 as the U.S. Federal Reserve looks to tighten its own monetary policies. International macroeconomic factors remain weak and foreign markets are anticipating additional quantitative easing guidance from the European Central Bank. Equity market sentiment remains positive, but the positive impacts that quantitative easing programs have had on developed countries' economic growth metrics remain questionable. Central banks have shown their ability to boost market sentiment, but their ability to facilitate robust economic growth has yet to be substantiated.
We will look to position the Fund defensively if volatility persists in 2015 as additional macroeconomic metrics are assessed by investors.
15
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
Advantus Capital Management Inc. (Advantus Capital) and the Securian Funds Trust, on behalf of the SFT Advantus Managed Volatility Fund (the "Fund"), have entered into an Expense Limitation Agreement, dated May 1, 2013, which limits the operating expenses of the Fund, excluding certain expenses (such as interest expense, acquired fund fees, cash overdraft fees, taxes, brokerage commissions, other expenditures which are capitalized in accordance with the generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Fund's business), to 0.80% of the Fund's average daily net assets through April 30, 2015. The Agreement renews annually for a full year each year thereafter unless terminated by Advantus Capital upon at least 30 days' notice prior to the end of a
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
Phillips 66 4.650%, 11/15/34 | $ | 1,024,998 | 2.5 | % | |||||||
Sunoco Logistics Partners Operations L.P. 4.250%, 04/01/24 | 1,011,251 | 2.5 | % | ||||||||
U.S. Treasury Note 0.125%, 04/30/15 | 1,000,234 | 2.5 | % | ||||||||
Noble Energy, Inc. 3.900%, 11/15/24 | 988,348 | 2.4 | % | ||||||||
U.S. Treasury Note 0.625%, 04/30/18 | 979,688 | 2.4 | % | ||||||||
Caterpillar Financial Services Corp. 3.750%, 11/24/23 | 795,736 | 2.0 | % | ||||||||
Old Republic International Corp. 4.875%, 10/01/24 | 782,906 | 1.9 | % | ||||||||
Target Corp. 3.500%, 07/01/24 | 778,630 | 1.9 | % | ||||||||
Total Capital International SA 3.750%, 04/10/24 | 777,088 | 1.9 | % | ||||||||
Johnson (S.C.) & Son, Inc. 3.350%, 09/30/24 | 768,787 | 1.9 | % | ||||||||
$ | 8,907,666 | 21.9 | % |
^Does not include short-term investments or investments in Class 1 shares of the SFT Advantus Index 500 Fund, an affiliated Fund in Securian Funds Trust, which provides the Managed Volatility Fund with its primary equity exposure.
Sector Diversification (shown as a percentage of net assets)
Asset Quality (shown as a percentage of net assets)
(Unaudited)
16
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Managed Volatility Fund,
the Blended, S&P 500® Index and Barclays U.S. Corporate Index Benchmarks,
and Consumer Price Index
On the chart above you can see how the SFT Advantus Managed Volatility Fund's shares total return compared to its Blended Benchmark, comprised of 60 percent of the S&P 500 Index and 40 percent of the Barclays U.S. Corporate Index, and the Consumer Price Index. The five lines represent the total return of a hypothetical $10,000 investment made on May 1, 2013 through December 31, 2014, assuming reinvestment of distributions, if any.
contract term. The Fund is authorized to reimburse Advantus Capital for management fees previously waived and/or for the cost of expenses previously paid by Advantus Capital pursuant to this agreement, provided that such reimbursement will not cause the Fund to exceed any limits in effect at the time of such reimbursement. The Fund's ability to reimburse Advantus Capital in this manner only applies to fees waived or reimbursements made by Advantus Capital within the three fiscal years prior to the date of such reimbursement. As of December 31, 2014, Advantus Capital has waived $439,975 pursuant to the agreement. To the extent that the Fund makes such reimbursements to Advantus Capital, the amount of the reimbursements will be reflected in the financial statements in the Fund's shareholder reports and in Other Expenses under Fees and Expenses of the Fund.
The Blended Benchmark Index is comprised of 60 percent of the S&P 500 Index and 40 percent of the Barclays U.S. Corporate Index.
The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall. The Barclays U.S. Corporate Index is an unmanaged benchmark composite representing the average market-weighted performance of fixed rate, investment grade corporate bonds issued by both U.S. and non-U.S. corporations in U.S. dollars with maturities greater than one year.
17
Performance Update
Thomas Houghton, CFA Portfolio Manager
The SFT Advantus Money Market Fund seeks maximum current income to the extent consistent with liquidity and the preservation of capital. It invests in short-term money market instruments and other debt securities that mature within 397 days.
Investment in the SFT Advantus Money Market Fund is neither insured nor guaranteed by the U.S. Government, and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. It is possible to lose money by investing in the Fund.
SFT Advantus Money Market Fund
How did the Fund perform during the period?
The Fund's shares generated a total net return of 0.00 percent* over the 12 months ending December 31, 2014, underperforming the U.S. Treasury bill, which returned 0.05 percent over the same period.
What influenced the Fund's return during the past 12 months?
The return on the Fund for the year was 0.10 percent before expenses, higher than the return of the three-month U.S. Treasury bill, but not enough to compensate for the Fund management expenses.
What other market conditions or events influenced the Fund's performance during the past 12 months?
The Federal Reserve continued to hold its federal funds rate in a target range of 0.00 to 0.25 percent, the same range it has been in since the end of 2008. This anchored all other money market rates throughout the year. Yields on 90-day U.S. Treasury bills remained under 0.10 percent, sometimes yielding just above 0.00 percent. Yields on 90-day commercial paper remained near zero, generally ranging from 0.05 percent to 0.10 percent. Agency discount notes generally yielded less than 0.05 percent. Yields on most short-dated floating rate corporate securities and short asset-backed securities continued to fall. Yields on short-dated asset-backed securities ranged from about 0.20 percent to 0.25 percent.
What strategies and techniques did you employ that affected Fund performance?
The Fund's performance continues to be driven by its strategy of investing in high-quality U.S. corporate commercial paper (rated at least A-1 by Standard & Poor's and at least P-1 by Moody's). This remains a sound alternative for investors seeking a high degree of safety and liquidity. Commercial paper, however, currently offers little yield above government agency discount notes and Treasury bills of similar maturities. We continue to obtain additional yield by increasing investments in short-dated asset-backed securities (ABS). However, those yields have dropped as well and generally offer only about 0.10 to 0.15 percent over high-quality commercial paper.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
We invested primarily in high quality U.S. corporate commercial paper (rated A-1 or higher by Standard & Poor's and P-1 or higher by Moody's) and high quality, short-dated asset-backed securities. We also invested in short-term discount notes issued primarily by government sponsored agencies Fannie Mae and Freddie Mac. Also, the Fund benefited from its holdings in longer-dated fixed and floating-rate securities issued by high-quality firms.
The Fed is in a transition mode. It has completely wound down its most recent quantitative easing program and is no longer buying Treasuries and Agency MBS. It has also stated that it is likely to start hiking rates some time in 2015, as soon as mid-year, provided we see continued improvement in the labor markets. However, inflation remains well below the Fed's 2 percent goal and it has said it can remain patient before raising rates. With the rest of the developed world's central banks contemplating further easing, many market participants are starting to doubt that the Fed will raise rates at all in 2015.
18
We still expect the Fed will refrain from raising short-term rates until late 2015 or beyond as inflation remains well below its expectations and job growth is far from satisfactory. Given this outlook, it is likely that rates earned on money-market securities available to the Fund will continue to remain near zero throughout most of 2015.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Investment in the SFT Advantus Money Market Fund is neither insured nor guaranteed by the U.S. Government or any other agency, and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. Shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower. Effective May 1, 2012, the Board of Trustees of Securian Funds Trust approved a Restated Net Investment Income Maintenance Agreement among Securian Funds Trust (on behalf of SFT Advantus Money Market Fund), Advantus Capital and Securian Financial Services, Inc. (Securian Financial). A similar agreement was previously approved by the Board of Directors of Advantus Series Fund, Inc., the Trust's predecessor, effective October 29, 2009. Under such Agreement, Advantus Capital agrees to waive, reimburse or pay Money Market Fund expenses so that the Fund's daily net investment income does not fall below zero. Securian Financial may also waive its Rule 12b-1 fees. Advantus Capital and Securian Financial each has the option under the Agreement to recover the full amount waived, reimbursed or paid (the "Expense Waiver") on any day on which the Fund's net investment income exceeds zero. On any day, however, the Expense Waiver does not constitute an obligation of the Fund unless Advantus Capital or Securian Financial has expressly exercised its right to recover a specified portion of the Expense Waiver on that day, in which case such specified portion is then due and payable by the Fund. In addition, the right of Advantus Capital and/or Securian Financial to recover the Expense Waiver is subject to the following limitations: (1) if a repayment of the Expense Waiver by the Fund would cause the Fund's net investment income to fall below zero, such repayment is deferred until a date when repayment would not cause the Fund's net investment income to fall below zero; (2) the right to recover any portion of the Expense Waiver expires three years after the effective date of that portion of the Expense Waiver; and (3) any repayment of the Expense Waiver by the Fund cannot cause the Fund's expense ratio to exceed 1.25%. As of December 31, 2014, Advantus Capital and Securian Financial have collectively waived $3,455,206 pursuant to the Agreement, including expenses waived under the prior agreement with Advantus Series Fund, Inc., of which $1,994,374 was eligible for recovery as of such date. If Advantus Capital and Securian Financial exercise their rights to be paid such waived amounts, the Fund's future yield will be negatively affected for an indefinite period. The Agreement shall continue in effect following May 1, 2015, provided such continuance is specifically approved by Advantus Capital, Securian Financial, and a majority of the Trust's independent Trustees.
19
Performance Update
Christopher Sebald, CFA and David Land, CFA Portfolio Managers
The SFT Advantus Mortgage Securities Fund seeks a high level of current income consistent with prudent investment risk. The SFT Advantus Mortgage Securities Fund will invest primarily in mortgage-related securities. The risks incurred by investing in mortgage-related securities include, but are not limited to, reinvestment of prepaid loans at low rates of return, and the inability to reinvest at higher interest rates when mortgages are prepaid more slowly than expected. In addition, the net asset value of the SFT Advantus Mortgage Securities Fund may fluctuate in response to changes in interest rates and is not guaranteed.
SFT Advantus Mortgage Securities Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 5.76 percent over the 12 months ending December 31, 2014, underperforming the Barclays U.S. Mortgage-Backed Securities Index, which returned 6.08 percent over the same period.
What influenced the Fund's return during the past 12 months?
After a slow start, the economy ended the year on a strong note. Throughout the year the unemployment rate fell as the economy expanded. The Fed, encouraged by a growing economy and an improving labor market, continued to reduce, and finally terminate its bond buying program. For nearly 6 years the Fed had been providing support to the economy and to a degree the markets. Investors can anticipate a bumpier ride with the Fed moving to the sideline and potentially raising short-term interest rates in 2015.
The commodities market struggled. The drop in oil prices was particularly pronounced. Lower global oil demand and increased U.S. production combined to drive oil prices lower. Soft demand was in part rooted in the slow growth in Europe and the emerging markets. Europe continues to dance on the edge of recession, and emerging markets, particularly China, are ratcheting down growth as they reduce investment and migrate from export-led growth. If oil prices remain low, there could be significant impacts on U.S. oil producers. On the flipside, consumers should benefit from reduced energy prices, particularly for gasoline which is now near $2 per gallon, a level not seen in years.
Slower growth outside the U.S. has led to even more dramatic drops in global interest rates and inflation. In fact, in Europe negative rates are becoming more common. Europe is besieged by persistently subpar economic growth, a declining workforce, and persistent problems with Greece.
Yields on the shorter dated maturities rose on concerns the Fed would soon raise interest rates. However, yields on longer dated bonds fell in sympathy with the rest of the world and diminished inflation expectations.
What other market conditions or events influenced the Fund's return during the past 12 months?
The mortgage market was initially focused on the Fed and wondering what impact its reduced support of the mortgage market would have. Many feared that mortgages would underperform other sectors of the fixed income market since a significant buyer had left the market. However, the supply of new mortgages wasn't large and the market easily absorbed the issuance. Homeownership rates continue to fall and both new home sales and refinance activity remain subdued by historical standards. Consequently, agency mortgages performed well relative to Treasuries.
What strategies and technique did you employ that affected Fund performance?
The Fund's core strategy remains consistent. Agency mortgage backed securities comprise the majority of the Fund. In our opinion, agency mortgages offer investors an attractive risk/return profile. The main risk in agency mortgage-backed securities is prepayment risk. That is to say, homeowners can prepay their mortgages at any time and are likely to so when interest rates fall. Investors would prefer to keep those higher paying mortgages on the books. Consequently, agency mortgages have uncertain cash flows.
20
Commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) provided the Fund with more stable cash flows. The Fund usually holds a portion of its assets in these two asset classes. Tactically, we shift our holdings between these sectors (MBS, ABS, and CMBS) based on their relative value.
The duration, a measure of interest rate sensitivity, closely mirrored the benchmark throughout the year. Our strategy downplays interest rate anticipation, and seeks to add value through purchasing undervalued securities.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
The outlook for the agency mortgage market is uncertain entering 2015. The uncertainty centers on a potential increase in homeowners refinancing their mortgages. The fall in long-term interest rates has increased the incentive for homeowners to refinance their mortgages. However, post crisis the three leading government mortgage insurers, FNMA, GNMA and FHLMC, have increased the guarantee fees they charge homeowners creating a hurdle to refinancing. This may soon change. Recently, the financial condition of all three agencies has modestly improved. This improvement coupled with a desire to see a more vibrant housing market may lead policymakers to lower guarantee fees and make it easier for homeowners to refinance.
We are cautious on the CMBS market. We have seen a weakening of underwriting standards in recent transactions. We believe the most senior classes of these bonds are well protected and can be considered for investment. Yet, we remain cautious on the overall sector and would likely invest in only the stronger transactions.
The asset-backed market is poised for a solid year. Most asset-backed securities are backed by consumer credit (e.g. credit cards, auto loans). The consumer is in good shape buoyed by low interest rates, falling gasoline prices, and falling unemployment. So we are constructive on credit card debt and auto loans backed by prime borrowers. We are cautious on auto loans backed by subprime borrowers. There are several issues clouding the subprime auto market, and we are taking a wait and see approach.
21
Ten Largest Holdings^
Security description | Market value | % of bond portfolio | |||||||||
Federal National Mortgage Association 3.500%, 01/01/45 | $ | 4,868,111 | 5.1 | % | |||||||
Government National Mortgage Association 3.000%, 01/01/45 | 3,067,875 | 3.2 | % | ||||||||
Federal National Mortgage Association 3.500%, 01/01/42 | 2,881,419 | 3.0 | % | ||||||||
Federal Home Loan Mortgage Corporation 3.500%, 11/01/44 | 2,075,416 | 2.2 | % | ||||||||
Federal National Mortgage Association 4.000%, 10/01/43 | 2,008,519 | 2.1 | % | ||||||||
Federal National Mortgage Association 4.000%, 06/01/42 | 1,635,356 | 1.7 | % | ||||||||
Federal Home Loan Mortgage Corporation 3.500%, 03/01/42 | 1,617,689 | 1.7 | % | ||||||||
Government National Mortgage Association 4.000%, 12/20/40 | 1,557,697 | 1.6 | % | ||||||||
Federal National Mortgage Association 4.000%, 01/01/45 | 1,547,518 | 1.6 | % | ||||||||
Federal National Mortgage Association 3.140%, 08/01/15 | 1,518,128 | 1.6 | % | ||||||||
$ | 22,777,728 | 23.8 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
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Asset Quality (shown as a percentage of net assets)
(Unaudited)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Mortgage Securities Fund,
Barclay's U.S. Mortgage-Backed Securities Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus Mortgage Securities Fund's Class 2 shares total return compared to the Barclays U.S. Mortgage-Backed Securities Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2004 through December 31, 2014, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
The Barclays U.S. Mortgage-Backed Securities Index is an unmanaged benchmark composite which includes all fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA).
23
Performance Update
Matthew Richmond and Lowell Bolken, CFA Portfolio Managers
The SFT Advantus Real Estate Securities Fund seeks above-average income and long-term growth of capital. The Fund intends to pursue its objective by investing primarily in equity securities of companies in the real estate industry. Investment risks associated with investing in the SFT Advantus Real Estate Securities Fund, in addition to other risks, include rental income fluctuations, depreciation, property tax value changes, and differences in real estate market value.
SFT Advantus Real Estate Securities Fund
How did the Fund perform during the period?
The Fund's Class 2 shares generated a total net return of 30.37 percent over the 12 months ending December 31, 2014, underperforming the Wilshire US Real Estate Securities Index, which returned 31.53 percent over the same period.
What influenced the Fund's return during the past 12 months?
The Fund had a large positive return for the year, slightly trailing its benchmark index but ahead of its peer group average. Real estate stocks overall delivered strong positive performance in the year. The Fund experienced a manager change as the year began and during the early weeks of January underperformed the index while Fund holdings were reconstituted. Following this period, the Fund outperformed its index during the remainder of the year.
A trio of key factors—improving U.S. economic growth, strengthening labor markets and low interest rates—created a supportive scenario for commercial real estate during the fiscal year, which positively influenced the Fund's performance. Rapidly improving consumer sentiment as the year progressed added another positive element to the mix.
Overall, the commercial real estate market was quite healthy as the year closed, with occupancies and rental rates across all major property types showing continued improvement. There was limited new construction activity taking place, setting the table for a potentially longer-than-average fundamental recovery.
The sector also was buoyed by strong capital flows from foreign institutional investors looking for relatively "safe haven" investments in a stable and growing economy.
What other market conditions or events influenced the Fund's performance during the past 12 months?
The Fund was positioned to potentially benefit from an environment characterized by accelerating growth in gross domestic product and employment, stable to modestly rising interest rates and healthy overall U.S. capital markets. With the exception of rising interest rates, all of these conditions were realized during the year and Fund holdings benefitted.
What strategies and techniques did you employ that affected Fund performance?
Favorable stock selection within owners of regional malls, offices and apartments contributed significantly to relative performance. A decision to underweight owners of healthcare facilities, whose stock prices were dramatically influenced by falling interest rates, and data centers, whose stock prices rebounded from dismal performance in 2013, were the primary detractors from relative performance.
What industries or sectors did you emphasize during the past 12 months, and what is your outlook going forward?
The Fund focused the majority of its holdings in mid- and large-capitalization companies with a bias toward major urban, coastal and sunbelt markets. A common theme among individual holdings within the Fund were companies we believe own well-located, high-quality properties; feature stable balance sheets; are exhibiting improving property fundamentals; and have above-average cash-flow growth prospects. From a property-type perspective, the Fund held specific concentrations in owners of Class A
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regional malls, neighborhood and community shopping centers, urban-centric office buildings, apartments, and self-storage facilities.
We see many of the same themes that impacted 2014 carrying into 2015 and we think they again will provide support for real estate stocks. The trajectory of economic growth appears to have accelerated late in the year, with employment, capital spending and manufacturing activity all remaining solid. We also believe the recent plunge in gasoline prices is positive for U.S. consumer confidence and spending. In the near-term, we think it is likely that neither economic growth nor inflation will be strong enough to trigger a spike in long-term interest rates.
We believe steady employment growth will support further space demand—and likely rental rate escalations—across the commercial property sector. Most notably, we think companies who own shorter lease duration assets such as hotels, apartments, industrial, and self-storage facilities will be able to more quickly reset rental rates to current market levels than owners of other property types. We also believe that an improving labor market will provide support for consumer spending patterns and result in higher occupancies at community shopping centers. Overall we believe cash flow growth will be 8-10 percent in 2015, spurring another year of above-average dividend increases from REITs.
A reduction in the U.S. Federal Reserve's accommodative monetary policy may cause short-term volatility in REIT pricing as investors gauge a policy change's impact on real estate capitalization rates. Should interest rates rise sharply and exert an upward bias on real estate capitalization rates, we think REIT share prices would likely come under pressure. We believe most companies in this sector, however, will deliver solid cash flow growth through occupancy and rental rate increases. Higher cash flows then may help offset value declines caused by rising capitalization rates.
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*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower.
The Wilshire US Real Estate Securities Index is a market capitalization-weighted index of equity securities whose primary business is equity ownership of commercial real estate (REITs).
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Simon Property Group, Inc. | 77,079 | $ | 14,036,857 | 9.7 | % | ||||||||||
Boston Properties, Inc. | 58,783 | 7,564,784 | 5.2 | % | |||||||||||
AvalonBay Communities, Inc. | 41,426 | 6,768,594 | 4.7 | % | |||||||||||
Equity Residential | 92,700 | 6,659,568 | 4.6 | % | |||||||||||
Vornado Realty Trust | 56,386 | 6,637,196 | 4.6 | % | |||||||||||
Public Storage | 30,900 | 5,711,865 | 3.9 | % | |||||||||||
Ventas, Inc. | 77,696 | 5,570,803 | 3.8 | % | |||||||||||
Essex Property Trust, Inc. | 26,216 | 5,416,225 | 3.7 | % | |||||||||||
Health Care REIT, Inc. | 64,000 | 4,842,880 | 3.3 | % | |||||||||||
General Growth Properties, Inc. | 167,500 | 4,711,775 | 3.2 | % | |||||||||||
$ | 67,920,547 | 46.7 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Advantus Real Estate Securities Fund,
Wilshire US Real Estate Securities Index, and Consumer Price Index
On the chart above you can see how the SFT Advantus Real Estate Securities Fund's Class 2 shares total return compared to the Wilshire US Real Estate Securities Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on December 31, 2004 through December 31, 2014, assuming reinvestment of distributions, if any.
26
Performance Update
Daniel P. Becker, CFA and Philip J. Sanders, CFA Portfolio Managers Waddell & Reed Investment Management Company
The SFT Ivy® Growth Fund seeks to provide growth of capital. The Fund pursues its objective by investing primarily in a diversified portfolio of common stocks issued by large capitalization companies. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, Waddell & Reed Investment Management Company (WRIMCO) provides investment advice to the Fund under a sub-advisory agreement. The risks incurred by investing in the Fund include, but are not limited to, the risk of declines in the market for large cap stocks or in the equity markets generally.
SFT Ivy® Growth Fund
How did the Fund perform since inception?
Since inception on May 1, 2014, the Fund posted a healthy return of 12.53 percent for the period, outpacing the Russell 1000 Growth Index return of 11.79 percent. Performance was led by favorable stock selection in the health care sector, as well as our overweighting in this strong performing sector. Strong stock selection in the technology sector and the Fund's underweighting in the relatively weak performing energy sector also aided performance. Partially offsetting these positive factors were disappointing returns from select consumer discretionary holdings, as well as certain industrial holdings with exposure to the energy market.
What influenced the Fund's return since inception?
The U.S. equity market posted another year of solid gains, despite ongoing macroeconomic and geopolitical concerns. In an uncertain world, the U.S. economy remains a relative standout on the global stage. While growth has been disappointing in Europe, Japan, China and most emerging markets, the U.S. economic expansion remains on solid footing—supported by steady improvement in the labor market, solid housing and auto sales, rising consumer confidence and record high levels of corporate profitability. Within the overall market however, sector performance was quite diverse and large-cap stocks outperformed small-caps by the widest margin since 1998.
What other market conditions or events influenced the Fund's performance since inception?
The second half of 2014 introduced two complicating factors to an already complex investment environment—a rising U.S. dollar relative to most other currencies and the collapse in oil prices. We attribute recent dollar strength primarily to the decoupling of the U.S. and other international economies. While this could encourage capital flows to the U.S. and be supportive of our markets as a whole, it is also likely to be an earnings headwind for many multinational companies with extensive overseas operations.
With respect to lower energy prices, we believe this will ultimately prove to be a net benefit to U.S. economic growth as more than two-thirds of our country's spending is consumer-based. However, the quickness of the price decline is already having a disruptive effect on several industries and regions of the U.S. that are tied to operating, supporting and building out our country's energy infrastructure. We are also cognizant of the fact that a great deal of capital has flowed to the energy industry in recent years on the assumption that oil prices would remain relatively high. Consequently, we expect some loan defaults resulting in potential dislocations in the credit markets. In fact, we are already seeing a significant widening of credit spreads in the energy portion of the high yield market and a decline in credit availability to many energy-related companies.
Internationally speaking, the impact is likely to be a mixed bag. Key developed economies like Europe and Japan, along with China and India, should be beneficiaries of lower oil prices. However, a host of other major regions/countries such as the Middle East, Russia and Brazil are likely to be negatively impacted in a meaningful way from a prolonged downturn in energy prices. Even smaller countries could pose some risk to the global growth outlook to the extent their export-based economies are hurt by falling commodity prices and dollar-based loans have to be paid back with weaker currencies.
What strategies and techniques did you employ that affected Fund performance?
Current Fund construction is focused on structurally-advantaged companies that can drive genuine sales and profitability growth without the benefits of strong economic tailwinds. Most of the companies with the characteristics we favor currently reside in the
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health care, technology and consumer discretionary sectors. Over the past couple of quarters, we have reduced our energy and industrials exposure amid weakening end markets and unfavorable currency headwinds. Even in this uncertain economic environment, we remain underweighted in traditionally defensive consumer staples stocks due to their relatively rich valuations and limited growth prospects. Companies implementing shareholder-friendly capital return strategies (share buybacks and dividends) also remain an area of emphasis.
What industries or sectors did you emphasize during the period, and what is your outlook going forward?
Looking forward, we continue to be mindful of the various global macroeconomic risks that currently exist. The recent turmoil in the energy markets, which is stoking global deflation fears, is just the latest in a litany of potential capital market problems. Add to this the ongoing concerns regarding the eventual normalization of Federal Reserve monetary policy, the faltering European recovery, slowing growth in emerging markets and the never-ending geopolitical risks, and there certainly exists the potential for some disturbing headlines. However, as we have indicated in the past, we will also remain focused on individual company fundamentals, where the news appears much more encouraging. Generally speaking, we believe most corporate balance sheets, cash flows and profitability levels remain in great shape.
Furthermore, we believe the current slow global growth environment, where true sustainable growth and prosperity is becoming more challenging, will continue to provide a favorable backdrop for the large-cap growth asset class. In our view, strong market leaders possessing defensible structural advantages, the main tenet of the Fund's investment process, have never been better equipped to defend and strengthen their competitive positions.
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Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Apple, Inc. | 234,788 | $ | 25,915,900 | 5.3 | % | ||||||||||
Mastercard, Inc.—Class A | 262,300 | 22,599,768 | 4.6 | % | |||||||||||
Biogen Idec, Inc. | 59,800 | 20,299,110 | 4.2 | % | |||||||||||
Gilead Sciences, Inc. | 214,700 | 20,237,622 | 4.1 | % | |||||||||||
The Home Depot, Inc. | 167,700 | 17,603,469 | 3.6 | % | |||||||||||
Celgene Corp. | 145,000 | 16,219,700 | 3.3 | % | |||||||||||
Visa, Inc.—Class A | 61,300 | 16,072,860 | 3.3 | % | |||||||||||
Canadian Pacific Railway, Ltd. | 82,900 | 15,974,001 | 3.3 | % | |||||||||||
Union Pacific Corp. | 130,900 | 15,594,117 | 3.2 | % | |||||||||||
HCA Holdings, Inc. | 204,900 | 15,037,611 | 3.1 | % | |||||||||||
$ | 185,554,158 | 38.0 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Ivy® Growth Fund,
the Russell 1000 Growth Index, and Consumer Price Index
On the chart above you can see how the SFT Ivy® Growth Fund's shares total return compared to the Russell 1000 Growth Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2014, assuming reinvestment of distributions, if any.
'Ivy' is the registered service mark of Ivy Funds Distributor, Inc., an affiliate of the Waddell & Reed Investment Management Company, the Fund's sub-adviser.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower. The SFT Ivy® Growth Fund commenced operations on May 1, 2014.
The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization.
29
Performance Update
Gilbert Scott, CFA
Portfolio Manager Waddell & Reed Investment Management Company
The SFT Ivy® Small Cap Growth Fund seeks to provide growth of capital. The Fund pursues its objective by investing primarily in a diversified portfolio of common stocks issued by small capitalization companies. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, Waddell & Reed Investment Management Company (WRIMCO) provides investment advice to the Fund under a sub-advisory agreement. The risks incurred by investing in the Fund include, but are not limited to, the risk of declines in the market for small cap stocks or in the equity markets generally.
SFT Ivy® Small Cap Growth Fund
How did the Fund perform since inception?
Since inception on May 1, 2014, the Fund posted a healthy return of 8.10 percent for the period, underperforming the Russell 2000 Growth Index return of 10.78. Strong stock selection in several industries overcame a lower quality bias of returns for the index.
What influenced the Fund's return since inception?
While the Fund faced several headwinds during the year, we were able to overcome most of these and outperform the benchmark. The combination of the biotechnology, pharmaceutical, and semiconductor industries generated positive performance as each group significantly outperformed the benchmark overall. We normally do not own these industries due to volatility and low return on capital. In contrast to earlier in the year, our higher quality energy securities performed much better than the sector, generating more than 100 basis points of positive attribution in the fourth quarter. Additionally, strong stock selection in the industrials and health care sectors aided performance.
Over the course of the year, we continued to decrease some cyclical exposure including energy holdings and also industrials holdings whose revenue is partly derived from energy companies. These revenues are at risk as the severity of the decline in energy output has yet to be determined. We realized a profit in several consumer securities whose price had risen in response to lower energy prices. We initiated several new positions in the last quarter of the year, specifically in the information technology sector in established companies with large and growing end markets. Additionally, we augmented the industrials exposure with some new securities that should participate in the continued improvement in commercial construction.
In summary, contributors to performance during the period included strong stock selection in the information technology sector, machinery holdings that performed well, seven holdings that appreciated at least 40 percent and a large take-out premium for OpenTable, Inc., an internet software and services holding. Detractors to performance during the period included an overweight position in energy services, which was down 54 percent while Fund holdings were "only" down 30 percent, a significant price correction impact that came from several of the Fund's high-growth information technology holdings lowering their growth trajectories and the Fund's building service holdings not keeping pace with the benchmark's holdings due to execution issues.
What other market conditions or events influenced the Fund's performance since inception?
Markets continued their upward trajectory in 2014 on the back of an improving domestic economy. This included the Russell 2000 Growth benchmark, which marked its third consecutive positive year with a 5.6 percent annual return and fifth up year out of the past six. U.S. gross domestic product rose from negative growth to start the year to its best readings in over a decade by year-end. Job markets tightened, wage gains picked up and inflation remained low, which sparked a significant improvement in consumer spending and borrowing by year-end. Stocks faltered periodically each quarter of 2014 based mostly on geopolitical events and the pace of global economic recovery but, each time, recovered soon after. Growth metrics were very inconsistent throughout 2014 as the higher-priced momentum growth stocks struggled relatively in both the second and fourth quarters due first to concerns of stagnant economic improvement and later due to a more abundant supply of growth stocks from the improving economy.
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Extremely low interest rates, wide open credit markets and low inflation from low energy costs allowed the growth outlook of more companies to be positive, which decreased the scarcity value of the highest growth stocks. Therefore, investors felt they did not have to pay up for the growth prospects of high-valuation stocks. The high-growth, secular growth stocks, with typically higher valuations, underperformed lower-quality, cyclical growth stocks that have more initial leverage to an improving economy. Within the index, non-earnings stories and the lowest valuations and growth outperformed. Higher return on equity, growth and valuation stories underperformed the year.
What strategies and techniques did you employ that affected Fund performance?
As a function of strategy for long-term performance, the Fund focuses on secular growth stories that have stronger growth, cleaner balance sheets and greater profitability which typically carry higher valuations. Higher growth names, including those within the Fund, relatively underperformed, thus contributing to the Fund's performance. The biotechnology sector was the clear outperforming sector for the period. The Fund continued to reduce its weighting in cyclical industries with reductions in energy directly and industrial securities with energy exposure. Profits were realized in several consumer names that advanced as a result of the oil price decline. Information technology and health care received the majority of the proceeds during the period with several new securities added that have attractive end markets, possess impressive technology and are led by capable management teams.
What industries or sectors did you emphasize during the period, and what is your outlook going forward?
Looking forward, the U.S. economy is improving at a rate meaningful enough that it potentially does not need much hand holding to survive. The economy continues on its trajectory of low but sustainable growth, which has historically been positive for the market. We believe there is more economic upside in the U.S. than most anywhere in the world, so owning the beneficiaries of a stronger domestic economy and consumer is a key focus of the Fund. Even though we currently see a clearer future than we had in the past five years with regard to negative events, we expect more periods of valuation sensitivity to occur, making the market potentially more volatile in the near-term. In addition, the breadth of benefits of a better employment environment with little inflation and open credit markets have continued to currently reward the cyclical growth company relative to secular growth. Although the Fund remains disciplined to holding more consistent secular growth in companies that we feel could be ultimate winners in their respective market segments, valuation sensitivity and a focus toward cyclical benefactors will occur. Given this uncertainty, we feel confident in owning higher quality securities while providing strong diversification across different growth profiles. Such an approach has helped us successfully mitigate volatility in the past.
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'Ivy' is the registered service mark of Ivy Funds Distributor, Inc., an affiliate of the Waddell & Reed Investment Management Company, the Fund's sub-adviser.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower. The SFT Ivy® Small Cap Growth Fund commenced operations on May 1, 2014.
The Russell 2000 Growth Index is an unmanaged index of those Russell 2000 Index growth companies with higher price-to-book ratios and higher forecasted growth values. The index is broad-based, comprised of 2,000 of the smallest U.S.-domiciled company common stocks based on total market capitalization.
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
PRA Group, Inc. | 141,000 | $ | 8,168,130 | 4.6 | % | ||||||||||
DexCom, Inc. | 142,800 | 7,861,140 | 4.4 | % | |||||||||||
Panera Bread Co.—Class A | 40,700 | 7,114,360 | 4.0 | % | |||||||||||
Tyler Technologies, Inc. | 63,900 | 6,993,216 | 3.9 | % | |||||||||||
Virtusa Corp. | 154,153 | 6,423,555 | 3.6 | % | |||||||||||
Cyberonics, Inc. | 112,600 | 6,269,568 | 3.5 | % | |||||||||||
The Hain Celestial Group, Inc. | 94,000 | 5,479,260 | 3.1 | % | |||||||||||
The Ultimate Software Group, Inc. | 37,000 | 5,432,155 | 3.1 | % | |||||||||||
The Toro Co. | 84,800 | 5,411,088 | 3.1 | % | |||||||||||
Krispy Kreme Doughnuts, Inc. | 263,800 | 5,207,412 | 2.9 | % | |||||||||||
$ | 64,359,884 | 36.2 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Ivy® Small Cap Growth Fund,
the Russell 2000 Growth Index, and Consumer Price Index
On the chart above you can see how the SFT Ivy® Small Cap Growth Fund's shares total return compared to the Russell 2000 Growth Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2014, assuming reinvestment of distributions, if any.
32
Performance Update
Chandler Willett Portfolio Manager Pyramis Global Advisors, LLC
The SFT Pyramis® Core Equity Fund seeks long-term capital appreciation. The Fund pursues its objective by investing primarily in a diversified portfolio of common stocks. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, Pyramis Global Advisors, LLC (Pyramis) provides investment advice to the Fund under a sub-advisory agreement. Risks associated with investing in the Fund include, but are not limited to, issuer-specific market volatility and risk of declines in the equity markets generally.
SFT Pyramis® Core Equity Fund
How did the Fund perform since inception?
For the period from inception through December 31, 2014 the Fund's Class 2 shares returned 11.29 percent, outperforming the Standard & Poor's 500 Index return of 10.85 percent for the same period.
What influenced the Fund's return since inception?
On the economic front, the economy continued to show modestly positive growth, and the data continued to be somewhat mixed. The housing market has shown some steady improvement throughout the year with home prices moderating, but housing remaining relatively affordable. The real estate market also saw continued low mortgage rates, as well as easing lending standards versus a year ago. The job market continued to remain quite firm, with the trend toward sub 6 percent national unemployment appearing to solidify itself for the foreseeable future. Unemployment shrunk from 6.7 percent at year end 2013 to 5.8 percent by the end of 2014, though the labor force participation rate remains near its low.
Consumer sentiment continues to remain near post-recession highs, fueled partially by a lack of any real increase in inflation over the course of the year. The Consumer Price Index has been essentially flat and the Producer Price Index has shown a very slight increase, but not enough to consider inflation a risk within the context of U.S equity markets. A few pockets of wage inflation continue to be present though, not widespread. Food prices continue to pressure the consumer, but the consumer is generally in a strong position.
From a monetary policy perspective, the Federal Reserve continued on its course of low rates and cheap money, but both seemed to have little real impact on the markets during the quarter. From a global perspective, U.S. monetary policy took on a moderate easing profile with the end of QE3, while Europe, Japan and China implemented renewed easing measures.
What other market conditions or events influenced the Fund's performance since inception?
Fundamentally, U.S. equity markets ended the year on strong footing. The U.S economy continues to provide decent support for domestic equity markets, as it continues to expand moderately and generally outpace other major global economies. While oil prices continue to fall steadily, price-to-earnings ratios have continued to rise moderately with the market.
Current valuations also continue to be modestly above their long-term average, but at current interest rate levels this continues to be less concerning to equity investors. Consensus at this point has both equity returns slowing moderately and equity market volatility increasing in the coming months. As the U.S. economy in general has provided the markets with good support, so too has the steady U.S. economic expansion provided a stable backdrop for moderately increasing corporate revenues. Profit margins remain at relatively high levels and show little indication of moderating much as cyclical productivity continues to rise and debt service obligations remain extremely low. With the current backdrop we view the U.S. consumer as a source of economic fuel for moderate growth, and correspondingly mid-single-digit corporate profit growth appears achievable.
What strategies and techniques did you employ that affected Fund performance?
Health care and industrials were the largest sector contributors from relative performance, while the information technology and financials sectors detracted.
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In the health care sector, our overweight to a biotechnology company was one of the leading contributors to relative performance over the period. In the industrials sector, the overweight in an express shipping company was one of the largest contributors to relative performance.
In the information technology sector, our underweight in a chip manufacturer and overweight in a wireless chipset maker were the largest detractors from relative performance. In the financials sector, our underweight position in a property and casualty insurer was the largest detractor from relative sector performance.
What industries or sectors did you emphasize during the period, and what is your outlook going forward?
Our general outlook continues to be constructive on equity markets, notwithstanding that this year compared to 2013 has been a challenging year for active management generally. 2014 has been characterized by increased volatility, but overall we believe that the market environment continues to be constructive for equity performance. The Fed's continued low interest rate policy, coupled with continued market-friendly stimulus policies globally, has helped support modest growth. While the Fed's bond-buying program has officially ended, this should not impact the fragile recovery, particularly given that the Fed has agreed in principal to restart its bond-buying if warranted by economic data.
Looking ahead to 2015 we remain cautiously optimistic about equity markets and anticipate modest economic growth across developed regions. It seems synchronized growth with continued loose monetary policy is a likely scenario as central banks attempt to fend off deflationary pressures with monetary stimulus. However, it would not be surprising to see continued market volatility in 2015 as investors respond to ever-shifting macro conditions and central bank announcements. We feel that valuations in this space remain reasonable and see a variety of reasons for dispersions to exist. Although valuations are important, our focus is looking for fundamental changes, which ultimately drive short and medium term moves in stocks and the market. Our Global Sector Leader/Analysts remain consistent in their portfolio construction process, using fundamental, bottom-up stock selection to build concentrated sector portfolios comprised of our best ideas.
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Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
Microsoft Corp. | 106,870 | $ | 4,964,111 | 3.5 | % | ||||||||||
Chevron Corp. | 35,920 | 4,029,506 | 2.9 | % | |||||||||||
Google, Inc.—Class A | 7,440 | 3,948,111 | 2.8 | % | |||||||||||
Citigroup, Inc. | 69,970 | 3,786,077 | 2.7 | % | |||||||||||
Apple, Inc. | 34,150 | 3,769,477 | 2.7 | % | |||||||||||
Bank of America Corp. | 205,490 | 3,676,216 | 2.6 | % | |||||||||||
Comcast Corp.—Class A | 58,930 | 3,418,529 | 2.4 | % | |||||||||||
QUALCOMM, Inc. | 43,710 | 3,248,964 | 2.3 | % | |||||||||||
Valeant Pharmaceuticals International, Inc. | 18,550 | 2,654,691 | 1.9 | % | |||||||||||
Facebook, Inc.—Class A | 33,990 | 2,651,900 | 1.9 | % | |||||||||||
$ | 36,147,582 | 25.7 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT Pyramis® Core Equity Fund,
S&P 500® Index, and Consumer Price Index
On the chart above you can see how the SFT Pyramis® Core Equity Fund's Class 2 shares total return compared to the S&P 500 Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2014, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower. The SFT Pyramis® Core Equity Fund commenced operations on May 1, 2014.
The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall.
35
Performance Update
Mark Finn, CFA, CPA Portfolio Manager T. Rowe Price
The SFT T. Rowe Price Value Fund seeks to provide long-term capital appreciation by investing in common stocks believed to be undervalued. Income is a secondary objective. The Fund pursues its objective by taking a value approach to investment selection. Holdings consist primarily of large cap stocks, but may also include stocks of mid-cap and small-cap companies. While Advantus Capital Management, Inc. acts as the investment adviser for the Fund, T. Rowe Price Associates, Inc. (T. Rowe Price) provides investment advice to the Fund under a sub-advisory agreement. The Fund's value approach to investing carries the risk that the market will not recognize a security's intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced at a low level.
SFT T. Rowe Price Value Fund
How did the Fund perform since inception?
Despite landing well in positive territory, the Fund returned 8.36 percent, which underperformed the Standard & Poor's 500 Index return of 10.85 percent for the period, beginning with its inception on May 1, 2014, and ending December 31, 2014. Overall, stock selection drove relative results, more than overcoming relative gains from sector allocation effects.
What influenced the Fund's return since inception?
After a mixed performance in the third quarter of 2014, U.S. stocks produced strong gains in the fourth quarter to cap a sixth consecutive year of positive returns. The advance was supported by generally favorable U.S. economic data and solid corporate fundamentals, as well as optimism about new stimulus measures from central banks in the eurozone and Japan. Among large-cap stocks, the energy sector led declines, with telecommunication services and materials stocks falling to a lesser extent. Utilities rallied, as investors favored their attractive dividend yields against the backdrop of declining long-term interest rates.
What other market conditions or events influenced the Fund's performance during the period?
The energy sector was the primary detractor, owing to stock selection effects that overwhelmed gains from an underweight allocation. Despite continuing to sell off its underperforming non-core assets, an oil and gas company in the Fund experienced rapidly declining share valuations amid falling commodity prices. We anticipate that the company may operate more efficiently going forward as it focuses on U.S. onshore oil and natural gas production.
The utilities sector was also an overall detractor, with stock selection driving relative returns that more than offset the benefits of an overweight. Shares of an energy power supplier fell due to a milder-than-expected start to the winter season in the northeastern U.S. and on uncertainty regarding the future of an anticipated federal wind tax credit. We expect the company may benefit from higher prices in New England as well as forthcoming renewable energy projects.
The telecommunication services sector was the major contributor to relative outperformance, owing to an advantageous underweight. Financials also contributed on a relative basis, with results driven by both an overweight allocation and stock choices.
The Fund had minimal exposure from equity rights since the Fund launched in May 2014.
What will affect the Fund going forward?
Despite experiencing a few shallow downturns throughout 2014, the U.S. equity market continued on an upward path during the year following strong appreciation in 2013. We therefore remain cautious in the near term, as it has been some time since we have seen a meaningful correction, and the market's appreciation has generally outpaced fundamentals. Even so, the U.S. economy has shown signs of improvement, with more available jobs, lower unemployment, and improving consumer sentiment. We expect that economic activity will continue to strengthen into next year, while still remaining somewhat muted compared to previous recoveries.
36
Ten Largest Holdings^
Security description | Shares | Market value | % of stock portfolio | ||||||||||||
General Electric Co. | 376,200 | $ | 9,506,574 | 4.1 | % | ||||||||||
American Airlines Group, Inc. | 176,400 | 9,460,332 | 4.1 | % | |||||||||||
Pfizer, Inc. | 204,300 | 6,363,945 | 2.7 | % | |||||||||||
JPMorgan Chase & Co. | 88,600 | 5,544,588 | 2.4 | % | |||||||||||
Citigroup, Inc. | 101,900 | 5,513,809 | 2.4 | % | |||||||||||
Merck & Co., Inc. | 94,400 | 5,360,976 | 2.3 | % | |||||||||||
Bank of America Corp. | 289,200 | 5,173,788 | 2.2 | % | |||||||||||
MetLife, Inc. | 95,600 | 5,171,004 | 2.2 | % | |||||||||||
Thermo Fisher Scientific, Inc. | 39,000 | 4,886,310 | 2.1 | % | |||||||||||
The Boeing Co. | 37,500 | 4,874,250 | 2.1 | % | |||||||||||
$ | 61,855,576 | 26.6 | % |
^Excludes short-term investments.
Sector Diversification (shown as a percentage of net assets)
Comparison of Change in Investment Value*
A Hypothetical $10,000 Investment in SFT T. Rowe Price Value Fund,
S&P 500® Index, and Consumer Price Index
On the chart above you can see how the SFT T. Rowe Price Value's shares total return compared to the S&P 500 Index and the Consumer Price Index. The three lines represent the total return of a hypothetical $10,000 investment made on May 1, 2014 through December 31, 2014, assuming reinvestment of distributions, if any.
*The results shown are past performance and are not an indication of future performance. Current performance may be lower or higher. The investment returns and principal value of an investment will fluctuate so that shares upon redemption may be worth more or less than their original cost. Performance figures of the Fund do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. When such charges are deducted, actual investment performance in a variable policy or contract will be lower. The SFT T. Rowe Price Value Fund commenced operations on May 1, 2014.
The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are representative of the U.S. stock market overall.
37
Report of Independent Registered Public Accounting Firm
The Board of Trustees and Shareholders
Securian Funds Trust
We have audited the accompanying statements of assets and liabilities, including the schedules of investments in securities, of SFT Advantus Bond Fund, SFT Advantus Index 400 Mid-Cap Fund, SFT Advantus Index 500 Fund, SFT Advantus International Bond Fund, SFT Advantus Managed Volatility Fund, SFT Advantus Money Market Fund, SFT Advantus Mortgage Securities Fund, and SFT Advantus Real Estate Securities Fund (collectively with those Funds noted below, the Funds), each a series of the Securian Funds Trust, as of December 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, and the statements of assets and liabilities, including the schedules of investments in securities, of SFT Ivy Growth Fund, SFT Ivy Small Cap Growth Fund, SFT Pyramis Core Equity Fund, and SFT T.Rowe Price Value Fund (collectively with those Funds noted above, the Funds), each a Series of the Securian Funds Trust, as of December 31, 2014, and the related statements of operations, changes in net assets and financial highlights for the period from May 1, 2014 (commencement of operations) to December 31, 2014. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of December 31, 2014, the results of their operations, the changes in their net assets, and the financial highlights for each of the years or periods described above, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
February 23, 2015
38
SFT Advantus Bond Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (98.6%) | |||||||||||
Government Obligations (45.9%) | |||||||||||
Other Government Obligations (1.8%) | |||||||||||
Provincial or Local Government Obligations (1.8%) | |||||||||||
County of Sarasota FL, 7.016%, 10/01/40 | $ | 515,000 | $ | 606,495 | |||||||
Douglas County Public Utility District No. 1, 5.450%, 09/01/40 | 1,185,000 | 1,394,674 | |||||||||
Port Authority of New York & New Jersey 4.458%, 10/01/62 | 1,150,000 | 1,220,645 | |||||||||
4.926%, 10/01/51 | 3,055,000 | 3,456,396 | |||||||||
6,678,210 | |||||||||||
U.S. Government Agencies and Obligations (44.1%) | |||||||||||
Export-Import Bank of the United States (1.3%) | |||||||||||
Helios Leasing I LLC, 2.018%, 05/29/24 | 794,716 | 776,537 | |||||||||
Tagua Leasing LLC 1.732%, 09/18/24 | 828,972 | 796,815 | |||||||||
1.900%, 07/12/24 | 713,288 | 693,180 | |||||||||
Ulani MSN 37894, 2.184%, 12/20/24 | 1,886,957 | 1,854,592 | |||||||||
Union 13 Leasing LLC, 1.870%, 06/28/24 | 631,890 | 612,233 | |||||||||
4,733,357 | |||||||||||
Federal Farm Credit Bank (0.9%) | |||||||||||
Federal Farm Credit Bank, 2.990%, 02/04/28 | 3,500,000 | 3,388,945 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (9.2%) | |||||||||||
1.820%, 08/25/24 (b) | 1,473,274 | 1,474,974 | |||||||||
2.370%, 09/25/24 (b) | 2,000,000 | 1,953,278 | |||||||||
2.500%, 03/01/28 | 832,991 | 849,028 | |||||||||
3.000%, 08/01/42 | 808,807 | 818,713 | |||||||||
3.000%, 04/01/43 | 1,363,423 | 1,379,919 | |||||||||
3.500%, 10/01/25 | 456,162 | 484,623 | |||||||||
3.500%, 01/01/42 | 764,069 | 799,236 | |||||||||
3.500%, 08/01/42 | 835,728 | 872,205 | |||||||||
4.000%, 02/01/20 | 1,283,237 | 1,359,343 | |||||||||
4.000%, 09/01/40 | 785,543 | 845,246 | |||||||||
4.000%, 10/01/40 | 856,742 | 917,345 | |||||||||
4.000%, 11/01/40 | 2,842,406 | 3,063,554 | |||||||||
4.000%, 02/01/41 | 647,454 | 694,940 | |||||||||
4.000%, 08/01/41 | 1,085,933 | 1,163,634 | |||||||||
4.500%, 01/01/41 | 1,273,862 | 1,388,699 | |||||||||
4.500%, 02/01/41 | 972,769 | 1,060,390 | |||||||||
4.500%, 03/01/41 | 1,165,818 | 1,276,836 | |||||||||
4.500%, 04/01/41 | 1,162,545 | 1,280,244 | |||||||||
5.000%, 04/01/35 | 193,406 | 213,192 | |||||||||
5.000%, 08/01/35 | 93,070 | 102,925 | |||||||||
5.000%, 11/01/35 | 197,748 | 218,022 | |||||||||
5.000%, 11/01/39 | 734,594 | 825,422 | |||||||||
5.000%, 03/01/40 | 3,612,889 | 4,057,754 | |||||||||
5.000%, 04/01/40 | 621,373 | 689,571 |
Principal | Value(a) | ||||||||||
5.000%, 08/01/40 | $ | 434,618 | $ | 481,256 | |||||||
5.500%, 12/01/17 | 63,087 | 66,726 | |||||||||
5.500%, 06/01/20 | 136,066 | 146,875 | |||||||||
5.500%, 10/01/20 | 220,628 | 239,058 | |||||||||
5.500%, 11/01/23 | 202,749 | 226,199 | |||||||||
5.500%, 05/01/34 | 1,221,969 | 1,378,104 | |||||||||
5.500%, 10/01/34 | 483,911 | 545,022 | |||||||||
5.500%, 07/01/35 | 675,599 | 760,426 | |||||||||
5.500%, 10/01/35 | 617,390 | 695,914 | |||||||||
5.500%, 12/01/38 | 503,772 | 567,393 | |||||||||
6.000%, 11/01/33 | 565,589 | 647,982 | |||||||||
6.500%, 09/01/32 | 100,861 | 116,475 | |||||||||
6.500%, 06/01/36 | 544,929 | 619,130 | |||||||||
7.000%, 12/01/37 | 189,031 | 209,954 | |||||||||
34,489,607 | |||||||||||
Federal National Mortgage Association (FNMA) (17.6%) | |||||||||||
1.120%, 05/25/24 (b) | 801,558 | 786,201 | |||||||||
2.500%, 11/01/27 | 813,445 | 826,421 | |||||||||
2.500%, 07/01/28 | 962,955 | 982,449 | |||||||||
2.500%, 01/01/30 (c) | 1,040,000 | 1,058,850 | |||||||||
3.000%, 06/01/22 | 557,345 | 581,623 | |||||||||
3.000%, 11/01/27 | 174,847 | 182,197 | |||||||||
3.000%, 01/01/30 (c) | 245,000 | 254,656 | |||||||||
3.000%, 03/01/42 | 769,889 | 780,404 | |||||||||
3.000%, 04/01/43 | 2,965,771 | 3,005,190 | |||||||||
3.000%, 05/01/43 | 1,824,537 | 1,848,451 | |||||||||
3.000%, 06/01/43 | 453,050 | 458,980 | |||||||||
3.000%, 09/01/43 | 1,479,770 | 1,498,786 | |||||||||
3.000%, 01/01/45 (c) | 2,550,000 | 2,579,484 | |||||||||
3.500%, 11/01/25 | 557,309 | 592,516 | |||||||||
3.500%, 01/01/26 | 581,669 | 618,563 | |||||||||
3.500%, 01/01/30 (c) | 1,135,000 | 1,199,021 | |||||||||
3.500%, 11/01/40 | 667,106 | 698,679 | |||||||||
3.500%, 01/01/41 | 635,174 | 664,522 | |||||||||
3.500%, 02/01/41 | 399,007 | 418,416 | |||||||||
3.500%, 04/01/41 | 698,601 | 730,862 | |||||||||
3.500%, 11/01/41 | 3,663,687 | 3,836,790 | |||||||||
3.500%, 01/01/42 | 1,839,248 | 1,920,946 | |||||||||
3.500%, 08/01/42 | 2,617,598 | 2,738,710 | |||||||||
3.500%, 03/01/43 | 2,154,709 | 2,256,973 | |||||||||
3.500%, 05/01/43 | 1,788,468 | 1,873,366 | |||||||||
3.500%, 01/01/45 (c) | 2,500,000 | 2,606,055 | |||||||||
4.000%, 04/01/41 | 2,105,252 | 2,268,444 | |||||||||
4.000%, 08/01/41 | 817,771 | 873,801 | |||||||||
4.000%, 09/01/41 | 1,283,637 | 1,378,878 | |||||||||
4.000%, 01/01/45 (c) | 1,820,000 | 1,942,402 | |||||||||
4.500%, 05/01/35 | 316,128 | 344,878 | |||||||||
4.500%, 07/01/35 | 917,401 | 999,715 | |||||||||
4.500%, 06/01/39 | 476,355 | 521,482 | |||||||||
4.500%, 04/01/41 | 2,983,858 | 3,284,074 | |||||||||
4.500%, 07/01/41 | 3,146,908 | 3,431,943 | |||||||||
5.000%, 05/01/18 | 28,611 | 30,152 | |||||||||
5.000%, 06/01/18 | 58,738 | 61,929 | |||||||||
5.000%, 07/01/18 | 132,534 | 139,839 | |||||||||
5.000%, 07/01/23 | 202,623 | 223,702 | |||||||||
5.000%, 11/01/33 | 111,670 | 123,703 | |||||||||
5.000%, 05/01/34 | 39,580 | 43,844 | |||||||||
5.000%, 12/01/34 | 509,948 | 564,889 | |||||||||
5.000%, 04/01/35 | 126,744 | 140,387 | |||||||||
5.000%, 08/01/35 | 145,361 | 161,460 |
See accompanying notes to financial statements.
39
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
5.000%, 04/01/38 | $ | 380,238 | $ | 428,550 | |||||||
5.000%, 12/01/39 | 520,491 | 587,162 | |||||||||
5.000%, 04/01/41 | 664,368 | 747,786 | |||||||||
5.500%, 09/01/17 | 20,106 | 21,235 | |||||||||
5.500%, 02/01/18 | 71,726 | 75,784 | |||||||||
5.500%, 03/01/18 | 130,455 | 137,874 | |||||||||
5.500%, 04/01/33 | 610,875 | 689,885 | |||||||||
5.500%, 12/01/33 | 195,390 | 221,689 | |||||||||
5.500%, 01/01/34 | 278,156 | 313,532 | |||||||||
5.500%, 02/01/34 | 270,747 | 305,297 | |||||||||
5.500%, 03/01/34 | 547,880 | 621,914 | |||||||||
5.500%, 04/01/34 | 309,379 | 348,008 | |||||||||
5.500%, 09/01/34 | 94,892 | 107,597 | |||||||||
5.500%, 02/01/35 | 334,108 | 377,577 | |||||||||
5.500%, 04/01/35 | 528,919 | 594,497 | |||||||||
5.500%, 06/01/35 | 111,774 | 125,445 | |||||||||
5.500%, 08/01/35 | 300,672 | 338,955 | |||||||||
5.500%, 10/01/35 | 626,858 | 712,627 | |||||||||
5.500%, 11/01/35 | 204,397 | 229,465 | |||||||||
5.500%, 12/01/35 | 158,786 | 178,557 | |||||||||
5.500%, 12/01/39 | 249,920 | 282,750 | |||||||||
6.000%, 09/01/17 | 101,503 | 105,976 | |||||||||
6.000%, 08/01/23 | 186,654 | 205,225 | |||||||||
6.000%, 10/01/32 | 517,255 | 592,360 | |||||||||
6.000%, 11/01/32 | 426,478 | 492,533 | |||||||||
6.000%, 03/01/33 | 577,664 | 667,738 | |||||||||
6.000%, 04/01/33 | 46,524 | 53,400 | |||||||||
6.000%, 12/01/33 | 204,593 | 235,382 | |||||||||
6.000%, 01/01/36 | 150,833 | 173,106 | |||||||||
6.000%, 08/01/37 | 95,507 | 108,821 | |||||||||
6.000%, 09/01/37 | 234,283 | 269,163 | |||||||||
6.000%, 10/01/38 | 362,457 | 419,090 | |||||||||
6.000%, 12/01/38 | 242,120 | 274,238 | |||||||||
6.000%, 06/01/40 | 121,142 | 137,442 | |||||||||
6.500%, 12/01/31 | 131,403 | 154,146 | |||||||||
6.500%, 02/01/32 | 44,932 | 52,907 | |||||||||
6.500%, 04/01/32 | 206,666 | 238,893 | |||||||||
6.500%, 05/01/32 | 63,823 | 75,175 | |||||||||
6.500%, 07/01/32 | 185,839 | 213,607 | |||||||||
6.500%, 08/01/32 | 259,961 | 306,839 | |||||||||
6.500%, 09/01/32 | 164,503 | 193,101 | |||||||||
6.500%, 10/01/32 | 228,645 | 264,867 | |||||||||
6.500%, 11/01/37 | 201,083 | 228,998 | |||||||||
7.000%, 07/01/31 | 138,872 | 161,685 | |||||||||
7.000%, 09/01/31 | 236,171 | 279,454 | |||||||||
7.000%, 11/01/31 | 342,330 | 406,135 | |||||||||
7.000%, 02/01/32 | 56,000 | 63,907 | |||||||||
7.000%, 03/01/32 | 39,905 | 47,476 | |||||||||
7.000%, 07/01/32 | 111,233 | 129,040 | |||||||||
7.500%, 04/01/31 | 180,284 | 209,584 | |||||||||
7.500%, 05/01/31 | 50,730 | 58,378 | |||||||||
65,799,485 | |||||||||||
Government National Mortgage Association (GNMA) (1.3%) | |||||||||||
0.362%, 06/17/45 (b) (d) | 1,764,923 | 18,890 | |||||||||
3.000%, 01/01/45 (c) | 1,000,000 | 1,022,625 | |||||||||
3.500%, 10/20/43 | 1,392,232 | 1,462,979 | |||||||||
3.500%, 01/01/45 (c) | 500,000 | 524,844 | |||||||||
5.000%, 12/15/39 | 49,419 | 55,047 | |||||||||
5.000%, 01/15/40 | 910,179 | 1,010,874 | |||||||||
5.500%, 07/15/38 | 386,630 | 431,807 |
Principal | Value(a) | ||||||||||
5.500%, 10/15/38 | $ | 470,996 | $ | 536,990 | |||||||
8.500%, 10/15/22 | 15,844 | 16,133 | |||||||||
5,080,189 | |||||||||||
U.S. Treasury (13.8%) | |||||||||||
U.S. Treasury Bond 3.125%, 08/15/44 | 7,750,000 | 8,343,356 | |||||||||
5.375%, 02/15/31 (e) | 5,115,000 | 7,129,430 | |||||||||
U.S. Treasury Note 0.875%, 05/15/17 | 560,000 | 560,306 | |||||||||
0.875%, 01/31/18 | 9,280,000 | 9,205,324 | |||||||||
1.625%, 12/31/19 | 12,210,000 | 12,191,880 | |||||||||
2.000%, 10/31/21 | 10,510,000 | 10,537,095 | |||||||||
2.250%, 11/15/24 | 3,675,000 | 3,699,692 | |||||||||
51,667,083 | |||||||||||
Total government obligations (cost: $164,045,086) | 171,836,876 | ||||||||||
Asset-Backed Securities (5.3%) | |||||||||||
Asset-Backed Securities (5.3%) | |||||||||||
Appalachian Consumer Rate Relief Funding LLC, 3.772%, 08/01/31 | 780,000 | 837,992 | |||||||||
Chase Issuance Trust, 2.770%, 03/15/23 | 3,400,000 | 3,458,569 | |||||||||
Citibank Credit Card Issuance Trust, 2.880%, 01/23/23 | 2,930,000 | 3,004,659 | |||||||||
Conseco Financial Corp., 6.400%, 10/15/18 | 30,339 | 31,068 | |||||||||
Countryplace Manufactured Housing Contract Trust, 5.200%, 12/15/35 (b) (f) (g) | 1,755,000 | 1,848,954 | |||||||||
Countrywide Asset-Backed Certificates, 5.934%, 05/25/37 (b) | 1,649,537 | 1,488,232 | |||||||||
FAN Engine Securitization, Ltd., 3.000%, 10/15/19 (f) (g) (h) (i) | 660,657 | 668,683 | |||||||||
Global SC Finance II SRL, 2.980%, 04/17/28 (f) (h) | 1,250,000 | 1,237,585 | |||||||||
GMAC Mortgage Corp. Loan Trust, 5.952%, 08/25/37 (b) | 3,095,000 | 2,764,008 | |||||||||
Origen Manufactured Housing Contract Trust 5.700%, 01/15/35 (b) | 922,442 | 961,289 | |||||||||
5.730%, 11/15/35 (b) | 339,031 | 354,028 | |||||||||
5.860%, 06/15/36 (b) | 387,015 | 410,419 | |||||||||
TAL Advantage V LLC 2.830%, 02/22/38 (f) | 1,343,417 | 1,328,400 | |||||||||
3.510%, 02/22/39 (f) | 508,750 | 511,026 | |||||||||
Trip Rail Master Funding LLC, 2.863%, 04/15/44 (f) | 945,394 | 939,206 | |||||||||
Total asset-backed securities (cost: $20,004,022) | 19,844,118 |
See accompanying notes to financial statements.
40
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Other Mortgage-Backed Securities (8.3%) | |||||||||||
Collateralized Mortgage Obligations/Mortgage Revenue Bonds (0.6%) | |||||||||||
BHN I Mortgage Fund, 7.916%, 07/01/15 (f) (g) (h) (i) (j) | $ | 57,000 | $ | — | |||||||
Credit-Based Asset Servicing and Securitization LLC 5.574%, 10/25/36 (f) (k) | 1,300,000 | 1,402,802 | |||||||||
6.240%, 10/25/36 (f) (k) | 386,111 | 390,168 | |||||||||
JPMorgan Mortgage Trust, 2.430%, 11/25/33 (b) | 504,914 | 460,242 | |||||||||
Mellon Residential Funding Corp., 6.750%, 06/25/28 | 8,408 | 8,494 | |||||||||
2,261,706 | |||||||||||
Commercial Mortgage-Backed Securities (7.7%) | |||||||||||
7 WTC Depositor LLC Trust, 4.082%, 03/13/31 (f) | 1,008,686 | 1,036,152 | |||||||||
American Tower Trust I, 1.551%, 03/15/43 (f) | 2,840,000 | 2,806,374 | |||||||||
BB-UBS Trust 3.430%, 11/05/36 (f) | 1,790,000 | 1,821,300 | |||||||||
4.026%, 11/05/36 (b) (f) | 895,000 | 876,700 | |||||||||
Citigroup Commercial Mortgage Trust 2.110%, 01/12/30 (f) | 790,282 | 798,641 | |||||||||
2.911%, 01/12/30 (b) (f) | 725,000 | 726,859 | |||||||||
CSMC Mortgage Trust, 1.705%, 04/15/27 (b) (f) | 2,535,000 | 2,535,010 | |||||||||
Extended Stay America Trust, 2.295%, 12/05/31 (f) | 1,000,000 | 987,420 | |||||||||
Hometown Commercial Mortgage 5.506%, 11/11/38 (f) (g) | 706,076 | 590,477 | |||||||||
6.057%, 06/11/39 (f) (g) | 719,265 | 496,113 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. 1.939%, 12/05/27 (b) (d) (f) (g) | 10,670,005 | 896,814 | |||||||||
5.633%, 12/05/27 (f) | 2,165,000 | 2,474,584 | |||||||||
Merrill Lynch Mortgage Investors, Inc., 6.250%, 12/10/29 (b) | 398,115 | 398,260 | |||||||||
Morgan Stanley Capital I Trust 3.201%, 08/05/34 (f) | 860,000 | 872,161 | |||||||||
3.451%, 08/05/34 (f) | 550,000 | 557,805 | |||||||||
3.773%, 03/15/45 | 685,000 | 711,153 | |||||||||
Multi Security Asset Trust 5.270%, 11/28/35 (f) (g) | 1,000,000 | 1,010,970 | |||||||||
5.880%, 11/28/35 (b) (f) (g) | 1,540,000 | 1,504,757 | |||||||||
Timberstar Trust, 6.208%, 10/15/36 (f) | 2,515,000 | 2,613,570 | |||||||||
UBS-Barclays Commercial Mortgage Trust, 3.091%, 08/10/49 | 920,000 | 933,433 | |||||||||
Vornado DP LLC, 4.004%, 09/13/28 (f) | 1,475,000 | 1,592,383 |
Principal | Value(a) | ||||||||||
WF-RBS Commercial Mortgage Trust 3.667%, 11/15/44 | $ | 905,000 | $ | 958,499 | |||||||
3.791%, 02/15/44 (f) | 1,485,000 | 1,516,711 | |||||||||
28,716,146 | |||||||||||
Total other mortgage-backed securities (cost: $30,922,921) | 30,977,852 | ||||||||||
Corporate Obligations (39.1%) | |||||||||||
Basic Materials (0.6%) | |||||||||||
Chemicals (0.6%) | |||||||||||
Ashland, Inc., 3.875%, 04/15/18 | 2,120,000 | 2,141,200 | |||||||||
Capital Goods (0.8%) | |||||||||||
Containers — Metal/Glass (0.8%) | |||||||||||
Ball Corp., 5.750%, 05/15/21 | 2,725,000 | 2,854,438 | |||||||||
Communications (1.4%) | |||||||||||
Telephone Services (0.6%) | |||||||||||
SBA Tower Trust, 2.240%, 04/15/43 (f) | 2,440,000 | 2,417,640 | |||||||||
Telephone — Integrated (0.8%) | |||||||||||
Verizon Communications, Inc. 5.012%, 08/21/54 (f) | 1,241,000 | 1,283,875 | |||||||||
6.550%, 09/15/43 | 1,238,000 | 1,586,063 | |||||||||
2,869,938 | |||||||||||
Consumer Cyclical (1.3%) | |||||||||||
Auto/Truck Parts & Equipment — Original (0.1%) | |||||||||||
Delphi Corp., 6.125%, 05/15/21 | 290,000 | 316,100 | |||||||||
Retail (0.7%) | |||||||||||
AutoNation, Inc., 5.500%, 02/01/20 | 1,700,000 | 1,864,409 | |||||||||
Walgreens Boots Alliance, Inc., 3.300%, 11/18/21 | 875,000 | 881,087 | |||||||||
2,745,496 | |||||||||||
Retail — Apparel/Shoe (0.5%) | |||||||||||
L Brands, Inc., 6.625%, 04/01/21 | 1,480,000 | 1,665,000 | |||||||||
Consumer, Non-cyclical (1.2%) | |||||||||||
Commercial Services (0.3%) | |||||||||||
ERAC USA Finance LLC, 3.850%, 11/15/24 (f) | 1,115,000 | 1,130,775 | |||||||||
Drugstore Chains (0.9%) | |||||||||||
CVS Pass-Through Trust 6.036%, 12/10/28 | 2,542,574 | 2,964,908 | |||||||||
6.943%, 01/10/30 | 406,162 | 492,471 | |||||||||
3,457,379 | |||||||||||
Energy (8.6%) | |||||||||||
Oil & Gas (1.4%) | |||||||||||
Chesapeake Energy Corp. 3.481%, 04/15/19 (b) | 1,650,000 | 1,617,000 | |||||||||
4.875%, 04/15/22 | 1,060,000 | 1,030,850 |
See accompanying notes to financial statements.
41
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Cimarex Energy Co., 5.875%, 05/01/22 | $ | 850,000 | $ | 884,000 | |||||||
Denbury Resources, Inc., 5.500%, 05/01/22 | 1,810,000 | 1,656,150 | |||||||||
5,188,000 | |||||||||||
Oil, Gas & Consumable Fuels (1.9%) | |||||||||||
Phillips 66, 4.875%, 11/15/44 | 2,900,000 | 2,968,283 | |||||||||
Tesoro Corp., 4.250%, 10/01/17 | 1,135,000 | 1,171,888 | |||||||||
Whiting Petroleum Corp., 5.000%, 03/15/19 | 1,760,000 | 1,645,600 | |||||||||
WPX Energy, Inc., 5.250%, 09/15/24 | 1,390,000 | 1,292,700 | |||||||||
7,078,471 | |||||||||||
Pipelines (5.3%) | |||||||||||
Boardwalk Pipelines L.P. | |||||||||||
5.200%, 06/01/18 | 400,000 | 419,200 | |||||||||
5.750%, 09/15/19 | 2,629,000 | 2,844,844 | |||||||||
Buckeye Partners L.P., 5.600%, 10/15/44 | 2,800,000 | 2,684,010 | |||||||||
EnLink Midstream Partners L.P., 5.050%, 04/01/45 | 1,250,000 | 1,207,612 | |||||||||
Enterprise Products Operating LLC, 5.750%, 03/01/35 | 1,685,000 | 1,938,749 | |||||||||
NuStar Logistics L.P., 8.150%, 04/15/18 (k) | 2,386,000 | 2,676,138 | |||||||||
Spectra Energy Partners L.P., 4.600%, 06/15/21 | 495,000 | 535,800 | |||||||||
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.500%, 06/01/24 | 1,115,000 | 1,075,975 | |||||||||
Sunoco Logistics Partners Operations L.P., 6.850%, 02/15/40 | 2,150,000 | 2,457,168 | |||||||||
Tennessee Gas Pipeline Co. LLC, 8.375%, 06/15/32 | 2,500,000 | 3,285,015 | |||||||||
Williams Partners L.P./ Williams Partners Finance Corp., 7.250%, 02/01/17 | 700,000 | 771,553 | |||||||||
19,896,064 | |||||||||||
Financial (13.9%) | |||||||||||
Banks (6.8%) | |||||||||||
Bank of America Corp. 5.300%, 03/15/17 | 770,000 | 827,107 | |||||||||
5.750%, 12/01/17 | 1,590,000 | 1,756,786 | |||||||||
5.875%, 01/05/21 | 765,000 | 886,997 | |||||||||
6.500%, 10/23/24 (b) | 1,800,000 | 1,832,220 | |||||||||
Citigroup, Inc. 4.450%, 01/10/17 | 2,950,000 | 3,118,395 | |||||||||
5.800%, 11/15/19 (b) | 1,735,000 | 1,735,000 | |||||||||
Discover Bank, 8.700%, 11/18/19 | 322,000 | 398,198 | |||||||||
HSBC Bank USA NA, 6.000%, 08/09/17 | 3,150,000 | 3,482,331 |
Principal | Value(a) | ||||||||||
JPMorgan Chase & Co., 5.000%, 07/01/19 (b) | $ | 2,725,000 | $ | 2,666,241 | |||||||
JPMorgan Chase Bank NA 5.875%, 06/13/16 | 875,000 | 932,732 | |||||||||
6.000%, 07/05/17 | 400,000 | 440,732 | |||||||||
6.000%, 10/01/17 | 1,575,000 | 1,748,067 | |||||||||
Morgan Stanley 5.450%, 07/15/19 (b) | 670,000 | 671,206 | |||||||||
5.500%, 01/26/20 | 1,000,000 | 1,125,129 | |||||||||
5.500%, 07/28/21 | 740,000 | 839,812 | |||||||||
6.250%, 08/28/17 | 1,435,000 | 1,594,090 | |||||||||
The Goldman Sachs Group, Inc., 5.700%, 05/10/19 (b) | 1,450,000 | 1,466,675 | |||||||||
25,521,718 | |||||||||||
Diversified Financial Services (0.3%) | |||||||||||
American Express Co., 5.200%, 11/15/19 (b) | 975,000 | 990,202 | |||||||||
Finance — Diversified (0.8%) | |||||||||||
General Motors Financial Co., Inc. 4.375%, 09/25/21 | 590,000 | 615,812 | |||||||||
4.750%, 08/15/17 | 2,400,000 | 2,531,040 | |||||||||
3,146,852 | |||||||||||
Insurance (3.2%) | |||||||||||
Assurant, Inc., 2.500%, 03/15/18 | 1,180,000 | 1,191,347 | |||||||||
Liberty Mutual Group, Inc., 6.500%, 05/01/42 (f) | 1,805,000 | 2,207,214 | |||||||||
Nationwide Financial Services, Inc., 5.300%, 11/18/44 (f) | 2,430,000 | 2,563,538 | |||||||||
Pacific LifeCorp, 5.125%, 01/30/43 (f) | 875,000 | 962,307 | |||||||||
Symetra Financial Corp., 6.125%, 04/01/16 (f) (g) | 2,210,000 | 2,318,579 | |||||||||
TIAA Asset Management Finance Co. LLC | |||||||||||
2.950%, 11/01/19 (f) | 1,345,000 | 1,347,603 | |||||||||
4.125%, 11/01/24 (f) | 1,150,000 | 1,178,078 | |||||||||
11,768,666 | |||||||||||
Real Estate Investment Trust (0.7%) | |||||||||||
Lexington Realty Trust, 4.400%, 06/15/24 | 2,475,000 | 2,502,322 | |||||||||
Real Estate Investment Trust — Health Care (0.7%) | |||||||||||
Ventas Realty L.P./Ventas Capital Corp., 2.700%, 04/01/20 | 2,800,000 | 2,770,726 | |||||||||
Real Estate Investment Trust — Hotels (0.7%) | |||||||||||
Hospitality Properties Trust, 4.650%, 03/15/24 | 2,450,000 | 2,509,552 | |||||||||
Real Estate Investment Trust — Office Property (0.7%) | |||||||||||
ARC Properties Operating Partnership LP 2.000%, 02/06/17 | 2,125,000 | 2,025,270 | |||||||||
4.600%, 02/06/24 | 650,000 | 599,652 | |||||||||
2,624,922 |
See accompanying notes to financial statements.
42
SFT Advantus Bond Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Health Care (2.3%) | |||||||||||
Health Care Providers & Services (0.9%) | |||||||||||
NYU Hospitals Center, 4.428%, 07/01/42 | $ | 1,480,000 | $ | 1,499,458 | |||||||
Sinai Health System, 3.034%, 01/20/36 | 1,620,000 | 1,646,945 | |||||||||
3,146,403 | |||||||||||
Medical Products/Supplies (1.2%) | |||||||||||
Bio-Rad Laboratories, Inc., 4.875%, 12/15/20 | 2,700,000 | 2,899,603 | |||||||||
Gilead Sciences, Inc., 4.500%, 02/01/45 | 1,600,000 | 1,710,078 | |||||||||
4,609,681 | |||||||||||
Pharmaceuticals (0.2%) | |||||||||||
Perrigo Finance PLC, 3.500%, 12/15/21 (h) | 850,000 | 859,915 | |||||||||
Industrials (1.6%) | |||||||||||
Building Products (0.4%) | |||||||||||
Martin Marietta Materials, Inc., 1.357%, 06/30/17 (b) | 1,500,000 | 1,516,446 | |||||||||
Electrical Equipment (0.9%) | |||||||||||
Keysight Technologies, Inc. 3.300%, 10/30/19 (f) | 1,500,000 | 1,490,263 | |||||||||
4.550%, 10/30/24 (f) | 2,075,000 | 2,075,824 | |||||||||
3,566,087 | |||||||||||
Tools-Hand Held (0.3%) | |||||||||||
Stanley Black & Decker, Inc., 5.750%, 12/15/53 (b) | 1,000,000 | 1,077,500 | |||||||||
Technology (0.4%) | |||||||||||
Computer Software & Services (0.4%) | |||||||||||
Intuit, Inc., 5.750%, 03/15/17 | 1,505,000 | 1,654,004 | |||||||||
Transportation (4.4%) | |||||||||||
Airlines (3.2%) | |||||||||||
America West Airlines 2000-1 Pass Through Trust, 8.057%, 01/02/22 | 375,941 | 428,791 | |||||||||
American Airlines 2011-1 Class A Pass Through Trust, 5.250%, 07/31/22 | 625,142 | 671,934 | |||||||||
American Airlines 2013-2 Class B Pass Through Trust, 5.600%, 01/15/22 (f) (g) | 1,642,002 | 1,674,842 | |||||||||
British Airways PLC, 5.625%, 12/20/21 (f) (h) | 831,446 | 884,625 | |||||||||
Delta Air Lines 2012-1 Class A Pass Through Trust, 4.750%, 11/07/21 | 709,164 | 755,678 | |||||||||
Delta Air Lines 2012-1 Class B Pass Through Trust, 6.875%, 05/07/19 (f) | 1,755,933 | 1,944,696 | |||||||||
United Airlines 2014-1 Class B Pass Through Trust, 4.750%, 10/11/23 | 700,000 | 687,855 |
Shares/ Principal | Value(a) | ||||||||||
United Airlines, Inc., 10.400%, 05/01/18 | $ | 673,150 | $ | 745,332 | |||||||
US Airways 2010-1 Class A Pass Through Trust, 6.250%, 10/22/24 | 1,404,891 | 1,583,059 | |||||||||
US Airways 2012-1 Class A Pass Through Trust, 5.900%, 04/01/26 | 639,434 | 714,498 | |||||||||
US Airways 2012-2 Class A Pass Through Trust, 4.625%, 12/03/26 | 751,717 | 796,873 | |||||||||
Virgin Australia 2013-1B Trust, 6.000%, 04/23/22 (f) (h) | 1,086,020 | 1,112,399 | |||||||||
12,000,582 | |||||||||||
Transport — Rail (1.2%) | |||||||||||
BNSF Funding Trust I, 6.613%, 12/15/55 (b) | 3,785,000 | 4,272,262 | |||||||||
Utilities (2.6%) | |||||||||||
Electric Companies (1.5%) | |||||||||||
Dominion Gas Holdings LLC, 2.500%, 12/15/19 | 1,470,000 | 1,473,647 | |||||||||
FirstEnergy Corp., 2.750%, 03/15/18 | 1,700,000 | 1,713,139 | |||||||||
Southwestern Electric Power Co., 5.550%, 01/15/17 | 2,230,000 | 2,408,137 | |||||||||
5,594,923 | |||||||||||
Electric Utilities (1.1%) | |||||||||||
AES Corp., 3.234%, 06/01/19 (b) | 1,400,000 | 1,365,000 | |||||||||
Dominion Resources, Inc., 5.750%, 10/01/54 (b) | 1,800,000 | 1,878,147 | |||||||||
NRG Yield Operating, LLC, 5.375%, 08/15/24 (f) | 1,050,000 | 1,065,750 | |||||||||
4,308,897 | |||||||||||
Total corporate obligations (cost: $141,865,696) | 146,202,161 | ||||||||||
Total long-term debt securities (cost: $356,837,725) | 368,861,007 | ||||||||||
Short-Term Securities (3.8%) | |||||||||||
Investment Companies (3.8%) | |||||||||||
Dreyfus Treasury Cash Management Fund, current rate 0.010% (l) | 14,282,369 | 14,282,369 | |||||||||
Total short-term securities (cost: $14,282,369) | 14,282,369 | ||||||||||
Total investments in securities (cost: $371,120,094) (m) | 383,143,376 | ||||||||||
Liabilities in excess of cash and other assets (-2.4%) | (8,815,134 | ) | |||||||||
Total net assets (100.0%) | $ | 374,328,242 |
See accompanying notes to financial statements.
43
SFT Advantus Bond Fund
Investments in Securities – continued
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Variable rate security.
(c) Security is issued on a when-issued or forward commitment basis. As of December 31, 2014 the total cost of investments issued on a when-issued or forward commitment basis was $11,116,016.
(d) Interest-only security that entitles holders to receive only interest on the underlying mortgages. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The yield to maturity of an interest-only security is sensitive to the rate of principal payments on the underlying mortgage assets. The rate disclosed represents the market yield based upon the current cost basis and estimated timing and amount of future cash flows.
(e) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2014, securities with an aggregate market value of $418,148 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
2 Year U.S. Treasury Note | March 2015 | 6 | Long | $ | (1,606 | ) | |||||||||||||
5 Year U.S. Treasury Note | March 2015 | 67 | Long | 7,715 | |||||||||||||||
10 Year U.S. Treasury Note | March 2015 | 178 | Short | (168,629 | ) | ||||||||||||||
251 | $ | (162,520 | ) |
(f) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program. This security has been determined to be liquid unless otherwise indicated.
(g) Illiquid security. (See Note 5.)
(h) Foreign security: The Fund held 1.3% of net assets in foreign securities at December 31, 2014.
(i) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(j) Security is in default with respect to interest payments. Income is not being accrued on this security and any payments received are treated as a reduction of principal.
(k) Step rate security.
(l) All or a portion of the security segregated to cover when-issued purchase commitments outstanding or extended settlement trades as of December 31, 2014.
(m) At December 31, 2014 the cost of securities for federal income tax purposes was $374,144,131. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 12,063,724 | |||||
Gross unrealized depreciation | (3,064,479 | ) | |||||
Net unrealized appreciation | $ | 8,999,245 |
See accompanying notes to financial statements.
44
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.6%) | |||||||||||
Consumer Discretionary (13.3%) | |||||||||||
Auto Components (0.3%) | |||||||||||
Gentex Corp. | 20,466 | $ | 739,437 | ||||||||
Automobiles (0.2%) | |||||||||||
Thor Industries, Inc. | 6,449 | 360,306 | |||||||||
Distributors (0.5%) | |||||||||||
LKQ Corp. (b) | 42,366 | 1,191,332 | |||||||||
Diversified Consumer Services (1.0%) | |||||||||||
Apollo Education Group, Inc. – Class A (b) | 13,503 | 460,587 | |||||||||
DeVry Education Group, Inc. | 8,006 | 380,045 | |||||||||
Graham Holdings Co. – Class B | 622 | 537,227 | |||||||||
Service Corp. International/US | 29,030 | 658,981 | |||||||||
Sotheby's | 8,571 | 370,096 | |||||||||
2,406,936 | |||||||||||
Hotels, Restaurants & Leisure (1.5%) | |||||||||||
Brinker International, Inc. | 8,885 | 521,461 | |||||||||
Domino's Pizza, Inc. | 7,690 | 724,167 | |||||||||
International Game Technology | 34,588 | 596,643 | |||||||||
International Speedway Corp. – Class A | 3,853 | 121,947 | |||||||||
Life Time Fitness, Inc. (b) | 4,980 | 281,968 | |||||||||
Panera Bread Co. – Class A (b) | 3,556 | 621,589 | |||||||||
The Cheesecake Factory, Inc. | 6,438 | 323,896 | |||||||||
The Wendy's Co. (c) | 38,300 | 345,849 | |||||||||
3,537,520 | |||||||||||
Household Durables (1.7%) | |||||||||||
Jarden Corp. (b) | 25,013 | 1,197,622 | |||||||||
KB Home | 12,730 | 210,682 | |||||||||
MDC Holdings, Inc. | 5,415 | 143,335 | |||||||||
NVR, Inc. (b) | 582 | 742,242 | |||||||||
Tempur-Pedic International, Inc. (b) | 8,516 | 467,614 | |||||||||
Toll Brothers, Inc. (b) | 22,634 | 775,667 | |||||||||
Tupperware Brands Corp. | 7,069 | 445,347 | |||||||||
3,982,509 | |||||||||||
Internet & Catalog Retail (0.2%) | |||||||||||
HSN, Inc. | 4,581 | 348,156 | |||||||||
Leisure Equipment & Products (0.8%) | |||||||||||
Brunswick Corp. | 12,995 | 666,123 | |||||||||
Polaris Industries, Inc. | 8,570 | 1,296,127 | |||||||||
1,962,250 | |||||||||||
Media (1.3%) | |||||||||||
AMC Networks, Inc. – Class A (b) | 8,281 | 528,079 | |||||||||
Cinemark Holdings, Inc. | 14,559 | 518,009 | |||||||||
DreamWorks Animation SKG, Inc. – Class A (b) | 10,079 | 225,064 | |||||||||
John Wiley & Sons, Inc. – Class A | 6,583 | 389,977 | |||||||||
Live Nation Entertainment, Inc. (b) | 20,198 | 527,370 |
Shares | Value(a) | ||||||||||
Meredith Corp. | 5,085 | $ | 276,217 | ||||||||
The New York Times Co. – Class A | 18,282 | 241,688 | |||||||||
Time, Inc. | 15,242 | 375,106 | |||||||||
3,081,510 | |||||||||||
Multiline Retail (0.2%) | |||||||||||
Big Lots, Inc. | 7,472 | 299,029 | |||||||||
JC Penney Co., Inc. (b) | 42,620 | 276,178 | |||||||||
575,207 | |||||||||||
Specialty Retail (4.7%) | |||||||||||
Aaron's, Inc. | 8,988 | 274,763 | |||||||||
Abercrombie & Fitch Co. – Class A | 9,977 | 285,741 | |||||||||
Advance Auto Parts, Inc. | 10,205 | 1,625,452 | |||||||||
American Eagle Outfitters, Inc. | 24,472 | 339,671 | |||||||||
ANN, Inc. (b) | 6,317 | 230,444 | |||||||||
Ascena Retail Group, Inc. (b) | 18,392 | 231,004 | |||||||||
Cabela's, Inc. (b) | 6,624 | 349,151 | |||||||||
Carter's, Inc. | 7,397 | 645,832 | |||||||||
Chico's FAS, Inc. | 21,381 | 346,586 | |||||||||
CST Brands, Inc. | 10,857 | 473,474 | |||||||||
Dick's Sporting Goods, Inc. | 13,716 | 680,999 | |||||||||
Foot Locker, Inc. | 19,864 | 1,115,960 | |||||||||
Guess?, Inc. | 8,925 | 188,139 | |||||||||
Kate Spade & Co. (b) | 17,771 | 568,850 | |||||||||
Murphy USA, Inc. (b) | 5,970 | 411,094 | |||||||||
Office Depot, Inc. (b) | 67,772 | 581,145 | |||||||||
Rent-A-Center, Inc. | 7,297 | 265,027 | |||||||||
Signet Jewelers, Ltd. (d) | 11,210 | 1,474,900 | |||||||||
Williams-Sonoma, Inc. | 11,973 | 906,117 | |||||||||
10,994,349 | |||||||||||
Textiles, Apparel & Luxury Goods (0.9%) | |||||||||||
Deckers Outdoor Corp. (b) | 4,851 | 441,635 | |||||||||
Hanesbrands, Inc. | 13,966 | 1,558,885 | |||||||||
2,000,520 | |||||||||||
Consumer Staples (3.3%) | |||||||||||
Food & Staples Retailing (0.3%) | |||||||||||
SUPERVALU, Inc. (b) | 28,839 | 279,738 | |||||||||
United Natural Foods, Inc. (b) | 6,928 | 535,708 | |||||||||
815,446 | |||||||||||
Food Products (1.9%) | |||||||||||
Dean Foods Co. | 13,117 | 254,207 | |||||||||
Flowers Foods, Inc. | 25,827 | 495,620 | |||||||||
Ingredion, Inc. | 10,047 | 852,387 | |||||||||
Lancaster Colony Corp. | 2,681 | 251,049 | |||||||||
Post Holdings, Inc. (b) | 6,230 | 260,975 | |||||||||
The Hain Celestial Group, Inc. (b) | 14,224 | 829,117 | |||||||||
Tootsie Roll Industries, Inc. | 2,690 | 82,449 | |||||||||
TreeHouse Foods, Inc. (b) | 5,900 | 504,627 | |||||||||
WhiteWave Foods Co. – Class A (b) | 24,376 | 852,916 | |||||||||
4,383,347 |
See accompanying notes to financial statements.
45
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities �� continued
Shares | Value(a) | ||||||||||
Household Products (1.1%) | |||||||||||
Church & Dwight Co., Inc. | 18,703 | $ | 1,473,984 | ||||||||
Energizer Holdings, Inc. | 8,741 | 1,123,743 | |||||||||
2,597,727 | |||||||||||
Energy (3.7%) | |||||||||||
Energy Equipment & Services (2.1%) | |||||||||||
Atwood Oceanics, Inc. (b) | 8,350 | 236,889 | |||||||||
CARBO Ceramics, Inc. | 2,709 | 108,495 | |||||||||
Dresser-Rand Group, Inc. (b) | 10,716 | 876,569 | |||||||||
Dril-Quip, Inc. (b) | 5,519 | 423,473 | |||||||||
Helix Energy Solutions Group, Inc. (b) | 13,722 | 297,767 | |||||||||
Oceaneering International, Inc. | 14,681 | 863,390 | |||||||||
Oil States International, Inc. (b) | 7,434 | 363,523 | |||||||||
Patterson-UTI Energy, Inc. | 20,469 | 339,581 | |||||||||
Rowan Cos., PLC – Class A | 17,411 | 406,024 | |||||||||
Superior Energy Services, Inc. | 21,274 | 428,671 | |||||||||
Tidewater, Inc. | 6,924 | 224,407 | |||||||||
Unit Corp. (b) | 6,412 | 218,649 | |||||||||
4,787,438 | |||||||||||
Oil, Gas & Consumable Fuels (1.6%) | |||||||||||
California Resources Corp. (b) | 42,688 | 235,211 | |||||||||
Gulfport Energy Corp. (b) | 11,958 | 499,127 | |||||||||
HollyFrontier Corp. | 27,365 | 1,025,640 | |||||||||
Peabody Energy Corp. | 37,950 | 293,733 | |||||||||
Rosetta Resources, Inc. (b) | 8,508 | 189,813 | |||||||||
SM Energy Co. | 9,415 | 363,231 | |||||||||
Western Refining, Inc. | 10,202 | 385,432 | |||||||||
World Fuel Services Corp. | 10,075 | 472,820 | |||||||||
WPX Energy, Inc. (b) | 28,432 | 330,664 | |||||||||
3,795,671 | |||||||||||
Financial (22.6%) | |||||||||||
Capital Markets (1.6%) | |||||||||||
Eaton Vance Corp. | 16,533 | 676,696 | |||||||||
Federated Investors, Inc. – Class B | 13,307 | 438,200 | |||||||||
Janus Capital Group, Inc. | 20,542 | 331,342 | |||||||||
Raymond James Financial, Inc. | 17,613 | 1,009,049 | |||||||||
SEI Investments Co. | 18,237 | 730,209 | |||||||||
Waddell & Reed Financial, Inc. – Class A | 11,689 | 582,346 | |||||||||
3,767,842 | |||||||||||
Commercial Banks (4.5%) | |||||||||||
Associated Banc-Corp | 21,248 | 395,850 | |||||||||
BancorpSouth, Inc. | 11,956 | 269,129 | |||||||||
Bank of Hawaii Corp. | 6,106 | 362,147 | |||||||||
Cathay General Bancorp | 10,274 | 262,912 | |||||||||
City National Corp. | 6,700 | 541,427 | |||||||||
Commerce Bancshares, Inc. | 11,576 | 503,440 | |||||||||
Cullen/Frost Bankers, Inc. | 7,637 | 539,478 | |||||||||
East West Bancorp, Inc. | 20,069 | 776,871 | |||||||||
First Horizon National Corp. | 32,889 | 446,633 | |||||||||
FirstMerit Corp. | 23,123 | 436,793 | |||||||||
Fulton Financial Corp. | 25,901 | 320,136 | |||||||||
Hancock Holding Co. | 11,403 | 350,072 |
Shares | Value(a) | ||||||||||
International Bancshares Corp. | 8,100 | $ | 214,974 | ||||||||
PacWest Bancorp | 13,535 | 615,301 | |||||||||
Prosperity Bancshares, Inc. | 8,388 | 464,360 | |||||||||
Signature Bank (b) | 7,006 | 882,476 | |||||||||
SVB Financial Group (b) | 7,165 | 831,641 | |||||||||
Synovus Financial Corp. | 19,093 | 517,229 | |||||||||
TCF Financial Corp. | 23,379 | 371,492 | |||||||||
Trustmark Corp. | 9,424 | 231,265 | |||||||||
Umpqua Holdings Corp. | 30,375 | 516,679 | |||||||||
Valley National Bancorp | 30,746 | 298,544 | |||||||||
Webster Financial Corp. | 12,554 | 408,382 | |||||||||
10,557,231 | |||||||||||
Consumer Finance (0.2%) | |||||||||||
SLM Corp. | 59,161 | 602,851 | |||||||||
Diversified Financial Services (0.6%) | |||||||||||
CBOE Holdings, Inc. | 11,799 | 748,293 | |||||||||
MSCI, Inc. | 15,662 | 743,005 | |||||||||
1,491,298 | |||||||||||
Diversified REITs (0.3%) | |||||||||||
Liberty Property Trust | 20,767 | 781,462 | |||||||||
Insurance (4.8%) | |||||||||||
Alleghany Corp. (b) | 2,307 | 1,069,295 | |||||||||
American Financial Group, Inc. | 10,319 | 626,570 | |||||||||
Arthur J Gallagher & Co. | 22,561 | 1,062,172 | |||||||||
Aspen Insurance Holdings, Ltd. (d) | 8,700 | 380,799 | |||||||||
Brown & Brown, Inc. | 16,481 | 542,390 | |||||||||
Everest Re Group, Ltd. (d) | 6,326 | 1,077,318 | |||||||||
First American Financial Corp. | 14,996 | 508,364 | |||||||||
HCC Insurance Holdings, Inc. | 13,533 | 724,286 | |||||||||
Kemper Corp. | 6,902 | 249,231 | |||||||||
Mercury General Corp. | 5,024 | 284,710 | |||||||||
Old Republic International Corp. | 33,921 | 496,264 | |||||||||
Primerica, Inc. | 7,429 | 403,098 | |||||||||
Protective Life Corp. | 11,025 | 767,891 | |||||||||
Reinsurance Group of America, Inc. | 9,579 | 839,312 | |||||||||
RenaissanceRe Holdings, Ltd. (d) | 5,387 | 523,724 | |||||||||
StanCorp Financial Group, Inc. | 5,877 | 410,567 | |||||||||
The Hanover Insurance Group, Inc. | 6,095 | 434,695 | |||||||||
WR Berkley Corp. | 14,194 | 727,585 | |||||||||
11,128,271 | |||||||||||
Office REITs (2.6%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 10,039 | 890,861 | |||||||||
BioMed Realty Trust, Inc. | 27,559 | 593,621 | |||||||||
Corporate Office Properties Trust SBI | 12,935 | 366,966 | |||||||||
Duke Realty Corp. | 47,774 | 965,035 | |||||||||
Highwoods Properties, Inc. | 12,761 | 565,057 |
See accompanying notes to financial statements.
46
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Kilroy Realty Corp. | 11,747 | $ | 811,365 | ||||||||
Mack-Cali Realty Corp. | 11,700 | 223,002 | |||||||||
SL Green Realty Corp. | 13,501 | 1,606,889 | |||||||||
6,022,796 | |||||||||||
Real Estate Management & Development (0.5%) | |||||||||||
Alexander & Baldwin, Inc. | 6,302 | 247,416 | |||||||||
Jones Lang LaSalle, Inc. | 6,329 | 948,907 | |||||||||
1,196,323 | |||||||||||
Residential REITs (1.7%) | |||||||||||
American Campus Communities, Inc. | 14,696 | 607,827 | |||||||||
Camden Property Trust | 12,089 | 892,652 | |||||||||
Home Properties, Inc. | 8,005 | 525,128 | |||||||||
Mid-America Apartment Communities, Inc. | 10,519 | 785,559 | |||||||||
UDR, Inc. | 35,681 | 1,099,688 | |||||||||
3,910,854 | |||||||||||
Retail REITs (2.9%) | |||||||||||
Equity One, Inc. | 10,733 | 272,189 | |||||||||
Federal Realty Investment Trust | 9,564 | 1,276,412 | |||||||||
National Retail Properties, Inc. | 18,439 | 725,943 | |||||||||
Realty Income Corp. | 31,133 | 1,485,355 | |||||||||
Regency Centers Corp. | 13,043 | 831,883 | |||||||||
Tanger Factory Outlet Centers, Inc. | 13,407 | 495,523 | |||||||||
Taubman Centers, Inc. | 8,853 | 676,546 | |||||||||
Washington Prime Group, Inc. | 21,692 | 373,536 | |||||||||
Weingarten Realty Investors | 15,727 | 549,187 | |||||||||
6,686,574 | |||||||||||
Specialized REITs (2.1%) | |||||||||||
Extra Space Storage, Inc. | 15,451 | 906,047 | |||||||||
Hospitality Properties Trust | 20,957 | 649,667 | |||||||||
Lamar Advertising Co. – Class A | 11,203 | 600,929 | |||||||||
LaSalle Hotel Properties | 15,597 | 631,210 | |||||||||
Omega Healthcare Investors, Inc. | 17,815 | 696,032 | |||||||||
Potlatch Corp. | 5,632 | 235,812 | |||||||||
Rayonier, Inc. | 17,717 | 495,013 | |||||||||
Senior Housing Properties Trust | 28,504 | 630,223 | |||||||||
4,844,933 | |||||||||||
Thrifts & Mortgage Finance (0.8%) | |||||||||||
Astoria Financial Corp. | 12,272 | 163,954 | |||||||||
First Niagara Financial Group, Inc. | 49,483 | 417,141 | |||||||||
New York Community Bancorp, Inc. | 61,885 | 990,160 | |||||||||
Washington Federal, Inc. | 13,726 | 304,031 | |||||||||
1,875,286 |
Shares | Value(a) | ||||||||||
Health Care (10.0%) | |||||||||||
Biotechnology (0.8%) | |||||||||||
Cubist Pharmaceuticals, Inc. (b) | 10,695 | $ | 1,076,452 | ||||||||
United Therapeutics Corp. (b) | 6,676 | 864,475 | |||||||||
1,940,927 | |||||||||||
Health Care Equipment & Supplies (3.2%) | |||||||||||
Align Technology, Inc. (b) | 10,102 | 564,803 | |||||||||
Halyard Health, Inc. (b) | 6,490 | 295,100 | |||||||||
Hill-Rom Holdings, Inc. | 8,017 | 365,735 | |||||||||
Hologic, Inc. (b) | 33,894 | 906,325 | |||||||||
IDEXX Laboratories, Inc. (b) | 6,729 | 997,709 | |||||||||
ResMed, Inc. | 19,495 | 1,092,890 | |||||||||
Sirona Dental Systems, Inc. (b) | 7,741 | 676,331 | |||||||||
STERIS Corp. | 8,280 | 536,958 | |||||||||
Teleflex, Inc. | 5,790 | 664,808 | |||||||||
The Cooper Cos., Inc. | 6,819 | 1,105,292 | |||||||||
Thoratec Corp. (b) | 7,689 | 249,585 | |||||||||
7,455,536 | |||||||||||
Health Care Providers & Services (3.4%) | |||||||||||
Centene Corp. (b) | 8,174 | 848,870 | |||||||||
Community Health Systems, Inc. (b) | 16,178 | 872,318 | |||||||||
Health Net, Inc. (b) | 10,893 | 583,102 | |||||||||
Henry Schein, Inc. (b) | 11,774 | 1,603,030 | |||||||||
HMS Holdings Corp. (b) | 12,273 | 259,451 | |||||||||
LifePoint Hospitals, Inc. (b) | 6,275 | 451,235 | |||||||||
Mednax, Inc. (b) | 14,039 | 928,118 | |||||||||
Omnicare, Inc. | 13,675 | 997,318 | |||||||||
Owens & Minor, Inc. | 8,721 | 306,195 | |||||||||
VCA, Inc. (b) | 11,761 | 573,584 | |||||||||
WellCare Health Plans, Inc. (b) | 6,147 | 504,423 | |||||||||
7,927,644 | |||||||||||
Health Care Technology (0.1%) | |||||||||||
Allscripts Healthcare Solutions, Inc. (b) | 23,689 | 302,509 | |||||||||
Life Sciences Tools & Services (1.4%) | |||||||||||
Bio-Rad Laboratories, Inc. – Class A (b) | 2,880 | 347,213 | |||||||||
Bio-Techne Corp. | 5,226 | 482,882 | |||||||||
Charles River Laboratories International, Inc. (b) | 6,492 | 413,151 | |||||||||
Covance, Inc. (b) | 7,884 | 818,675 | |||||||||
Mettler-Toledo International, Inc. (b) | 3,990 | 1,206,815 | |||||||||
3,268,736 | |||||||||||
Pharmaceuticals (1.1%) | |||||||||||
Endo International PLC (b) (d) | 21,490 | 1,549,859 | |||||||||
Salix Pharmaceuticals, Ltd. (b) | 8,895 | 1,022,391 | |||||||||
2,572,250 |
See accompanying notes to financial statements.
47
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Industrials (15.2%) | |||||||||||
Aerospace & Defense (1.7%) | |||||||||||
Alliant Techsystems, Inc. | 4,464 | $ | 518,940 | ||||||||
BE Aerospace, Inc. (b) | 14,722 | 854,171 | |||||||||
Esterline Technologies Corp. (b) | 4,480 | 491,366 | |||||||||
Exelis, Inc. | 26,108 | 457,673 | |||||||||
Huntington Ingalls Industries, Inc. | 6,732 | 757,081 | |||||||||
KLX, Inc. (b) | 7,336 | 302,589 | |||||||||
Triumph Group, Inc. | 7,100 | 477,262 | |||||||||
3,859,082 | |||||||||||
Airlines (0.7%) | |||||||||||
Alaska Air Group, Inc. | 18,393 | 1,099,166 | |||||||||
JetBlue Airways Corp. (b) | 34,269 | 543,506 | |||||||||
1,642,672 | |||||||||||
Building Products (0.9%) | |||||||||||
AO Smith Corp. | 10,516 | 593,208 | |||||||||
Fortune Brands Home & Security, Inc. | 22,057 | 998,520 | |||||||||
Lennox International, Inc. | 6,179 | 587,438 | |||||||||
2,179,166 | |||||||||||
Commercial Services & Supplies (1.8%) | |||||||||||
Clean Harbors, Inc. (b) | 7,627 | 366,477 | |||||||||
Copart, Inc. (b) | 15,896 | 580,045 | |||||||||
Corrections Corp. of America | 16,284 | 591,761 | |||||||||
Deluxe Corp. | 6,913 | 430,334 | |||||||||
Herman Miller, Inc. | 8,300 | 244,269 | |||||||||
HNI Corp. | 6,206 | 316,878 | |||||||||
MSA Safety, Inc. | 4,409 | 234,074 | |||||||||
Rollins, Inc. | 8,875 | 293,763 | |||||||||
RR Donnelley & Sons Co. | 27,933 | 469,414 | |||||||||
Waste Connections, Inc. | 17,352 | 763,314 | |||||||||
4,290,329 | |||||||||||
Construction & Engineering (0.5%) | |||||||||||
Aecom Technology Corp. (b) | 21,505 | 653,107 | |||||||||
Granite Construction, Inc. | 4,979 | 189,301 | |||||||||
KBR, Inc. | 20,283 | 343,797 | |||||||||
1,186,205 | |||||||||||
Electrical Equipment (1.3%) | |||||||||||
Acuity Brands, Inc. | 6,054 | 847,984 | |||||||||
Belden, Inc. | 5,986 | 471,757 | |||||||||
Hubbell, Inc. – Class B | 7,581 | 809,878 | |||||||||
Regal-Beloit Corp. | 6,248 | 469,849 | |||||||||
Woodward Governor Co. | 8,168 | 402,111 | |||||||||
3,001,579 | |||||||||||
Industrial Conglomerates (0.4%) | |||||||||||
Carlisle Cos., Inc. | 8,971 | 809,543 | |||||||||
Machinery (4.4%) | |||||||||||
AGCO Corp. | 11,701 | 528,885 | |||||||||
CLARCOR, Inc. | 6,964 | 464,081 | |||||||||
Crane Co. | 6,927 | 406,615 | |||||||||
Donaldson Co., Inc. | 17,853 | 689,661 | |||||||||
Graco, Inc. | 8,314 | 666,616 | |||||||||
Harsco Corp. | 11,297 | 213,400 | |||||||||
IDEX Corp. | 11,100 | 864,024 |
Shares | Value(a) | ||||||||||
ITT Corp. | 12,806 | $ | 518,131 | ||||||||
Kennametal, Inc. | 11,011 | 394,084 | |||||||||
Lincoln Electric Holdings, Inc. | 10,860 | 750,317 | |||||||||
Nordson Corp. | 8,185 | 638,103 | |||||||||
Oshkosh Corp. | 11,157 | 542,788 | |||||||||
SPX Corp. | 5,742 | 493,353 | |||||||||
Terex Corp. | 15,155 | 422,521 | |||||||||
Timken Co. | 10,415 | 444,512 | |||||||||
Trinity Industries, Inc. | 21,759 | 609,470 | |||||||||
Valmont Industries, Inc. | 3,477 | 441,579 | |||||||||
Wabtec Corp. | 13,457 | 1,169,279 | |||||||||
10,257,419 | |||||||||||
Marine (0.3%) | |||||||||||
Kirby Corp. (b) | 7,977 | 644,063 | |||||||||
Professional Services (1.0%) | |||||||||||
FTI Consulting, Inc. (b) | 5,711 | 220,616 | |||||||||
Manpower, Inc. | 11,064 | 754,233 | |||||||||
The Corporate Executive Board Co. | 4,665 | 338,353 | |||||||||
Tower Watson & Co. – Class A | 9,778 | 1,106,576 | |||||||||
2,419,778 | |||||||||||
Road & Rail (1.5%) | |||||||||||
Con-way, Inc. | 8,022 | 394,522 | |||||||||
Genesee & Wyoming, Inc. – Class A (b) | 7,136 | 641,669 | |||||||||
JB Hunt Transport Services, Inc. | 12,903 | 1,087,078 | |||||||||
Landstar System, Inc. | 6,198 | 449,541 | |||||||||
Old Dominion Freight Line, Inc. (b) | 9,513 | 738,589 | |||||||||
Werner Enterprises, Inc. | 6,174 | 192,320 | |||||||||
3,503,719 | |||||||||||
Trading Companies & Distributors (0.7%) | |||||||||||
GATX Corp. | 6,179 | 355,540 | |||||||||
MSC Industrial Direct Co. – Class A | 7,063 | 573,869 | |||||||||
Now, Inc. (b) | 14,932 | 384,200 | |||||||||
Watsco, Inc. | 3,809 | 407,563 | |||||||||
1,721,172 | |||||||||||
Information Technology (17.1%) | |||||||||||
Communications Equipment (1.1%) | |||||||||||
ARRIS Group, Inc. (b) | 18,419 | 556,070 | |||||||||
Ciena Corp. (b) | 14,898 | 289,170 | |||||||||
InterDigital, Inc. | 5,143 | 272,065 | |||||||||
JDS Uniphase Corp. (b) | 32,385 | 444,322 | |||||||||
Plantronics, Inc. | 5,961 | 316,052 | |||||||||
Polycom, Inc. (b) | 19,081 | 257,593 | |||||||||
Riverbed Technology, Inc. (b) | 21,685 | 442,591 | |||||||||
2,577,863 | |||||||||||
Computers & Peripherals (0.8%) | |||||||||||
3D Systems Corp. (b) | 14,592 | 479,639 | |||||||||
Diebold, Inc. | 9,025 | 312,626 | |||||||||
Lexmark International, Inc. – Class A | 8,639 | 356,531 | |||||||||
NCR Corp. (b) | 23,543 | 686,043 | |||||||||
1,834,839 |
See accompanying notes to financial statements.
48
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Electronic Equipment, Instruments & Components (3.2%) | |||||||||||
Arrow Electronics, Inc. (b) | 13,548 | $ | 784,294 | ||||||||
Avnet, Inc. (c) | 19,160 | 824,263 | |||||||||
Cognex Corp. (b) | 12,149 | 502,118 | |||||||||
FEI Co. | 5,790 | 523,126 | |||||||||
Ingram Micro, Inc. – Class A (b) | 21,800 | 602,552 | |||||||||
IPG Photonics Corp. (b) | 4,990 | 373,851 | |||||||||
Itron, Inc. (b) | 5,393 | 228,070 | |||||||||
Jabil Circuit, Inc. | 27,037 | 590,218 | |||||||||
Keysight Technologies, Inc. (b) | 23,417 | 790,792 | |||||||||
Knowles Corp. (b) | 11,813 | 278,196 | |||||||||
National Instruments Corp. | 14,091 | 438,089 | |||||||||
Tech Data Corp. (b) | 5,334 | 337,269 | |||||||||
Trimble Navigation, Ltd. (b) | 36,211 | 961,040 | |||||||||
Vishay Intertechnology, Inc. | 18,965 | 268,355 | |||||||||
7,502,233 | |||||||||||
Internet Software & Services (1.3%) | |||||||||||
AOL, Inc. (b) | 10,889 | 502,745 | |||||||||
Equinix, Inc. | 7,734 | 1,753,530 | |||||||||
Rackspace Hosting, Inc. (b) | 16,658 | 779,761 | |||||||||
3,036,036 | |||||||||||
IT Services (2.6%) | |||||||||||
Acxiom Corp. (b) | 10,766 | 218,227 | |||||||||
Broadridge Financial Solutions, Inc. | 16,722 | 772,222 | |||||||||
Convergys Corp. | 14,028 | 285,750 | |||||||||
CoreLogic, Inc. (b) | 12,546 | 396,328 | |||||||||
DST Systems, Inc. | 4,097 | 385,733 | |||||||||
Gartner, Inc. – Class A (b) | 12,307 | 1,036,372 | |||||||||
Global Payments, Inc. | 9,456 | 763,383 | |||||||||
Jack Henry & Associates, Inc. | 11,433 | 710,447 | |||||||||
Leidos Holdings, Inc. | 8,683 | 377,884 | |||||||||
NeuStar, Inc. – Class A (b) | 7,672 | 213,282 | |||||||||
Science Applications International Corp. | 5,615 | 278,111 | |||||||||
WEX, Inc. (b) | 5,420 | 536,146 | |||||||||
5,973,885 | |||||||||||
Office Electronics (0.2%) | |||||||||||
Zebra Technologies Corp. – Class A (b) | 7,070 | 547,289 | |||||||||
Semiconductors & Semiconductor Equipment (3.4%) | |||||||||||
Advanced Micro Devices, Inc. (b) | 87,742 | 234,271 | |||||||||
Atmel Corp. (b) | 58,349 | 489,840 | |||||||||
Cree, Inc. (b) | 16,699 | 538,042 | |||||||||
Cypress Semiconductor Corp. (b) | 20,691 | 295,468 | |||||||||
Fairchild Semiconductor International, Inc. (b) | 16,605 | 280,292 | |||||||||
Integrated Device Technology, Inc. (b) | 20,782 | 407,327 | |||||||||
International Rectifier Corp. (b) | 10,000 | 399,000 | |||||||||
Intersil Corp. – Class A | 18,107 | 262,008 | |||||||||
RF Micro Devices, Inc. (b) | 71,639 | 1,188,491 |
Shares | Value(a) | ||||||||||
Semtech Corp. (b) | 9,326 | $ | 257,118 | ||||||||
Silicon Laboratories, Inc. (b) | 5,510 | 262,386 | |||||||||
Skyworks Solutions, Inc. | 26,655 | 1,938,085 | |||||||||
SunEdison, Inc. (b) | 35,215 | 687,045 | |||||||||
Teradyne, Inc. | 30,267 | 598,984 | |||||||||
7,838,357 | |||||||||||
Software (4.5%) | |||||||||||
ACI Worldwide, Inc. (b) | 16,010 | 322,922 | |||||||||
Advent Software, Inc. | 6,121 | 187,547 | |||||||||
ANSYS, Inc. (b) | 12,849 | 1,053,618 | |||||||||
Cadence Design Systems, Inc. (b) | 40,861 | 775,133 | |||||||||
CDK Global, Inc. | 22,457 | 915,347 | |||||||||
CommVault Systems, Inc. (b) | 6,015 | 310,915 | |||||||||
Factset Research Systems, Inc. | 5,417 | 762,443 | |||||||||
Fair Isaac Corp. | 4,522 | 326,941 | |||||||||
Fortinet, Inc. (b) | 19,328 | 592,597 | |||||||||
Informatica Corp. (b) | 15,193 | 579,385 | |||||||||
Mentor Graphics Corp. | 13,678 | 299,822 | |||||||||
PTC, Inc. (b) | 16,216 | 594,316 | |||||||||
Rovi Corp. (b) | 13,243 | 299,159 | |||||||||
Solarwinds, Inc. (b) | 9,163 | 456,592 | |||||||||
Solera Holdings, Inc. | 9,538 | 488,155 | |||||||||
Synopsys, Inc. (b) | 21,785 | 946,994 | |||||||||
The Ultimate Software Group, Inc. (b) | 3,980 | 584,324 | |||||||||
Tyler Technologies, Inc. (b) | 4,640 | 507,802 | |||||||||
VeriFone Systems, Inc. (b) | 15,806 | 587,983 | |||||||||
10,591,995 | |||||||||||
Materials (7.2%) | |||||||||||
Chemicals (3.0%) | |||||||||||
Albemarle Corp. | 10,940 | 657,822 | |||||||||
Ashland, Inc. | 8,922 | 1,068,499 | |||||||||
Cabot Corp. | 8,954 | 392,723 | |||||||||
Cytec Industries, Inc. | 10,072 | 465,024 | |||||||||
Minerals Technologies, Inc. | 4,766 | 330,999 | |||||||||
NewMarket Corp. | 1,514 | 610,944 | |||||||||
Olin Corp. | 10,932 | 248,922 | |||||||||
PolyOne Corp. | 12,710 | 481,836 | |||||||||
RPM International, Inc. | 18,661 | 946,299 | |||||||||
Sensient Technologies Corp. | 6,710 | 404,881 | |||||||||
The Scotts Miracle-Gro Co. – Class A | 6,207 | 386,820 | |||||||||
Valspar Corp. | 10,658 | 921,704 | |||||||||
6,916,473 | |||||||||||
Construction Materials (0.2%) | |||||||||||
Eagle Materials, Inc. | 7,012 | 533,123 | |||||||||
Containers & Packaging (2.0%) | |||||||||||
Aptargroup, Inc. | 9,049 | 604,835 | |||||||||
Bemis Co., Inc. | 13,964 | 631,312 | |||||||||
Greif, Inc. – Class A | 4,686 | 221,320 | |||||||||
Packaging Corp. of America | 13,755 | 1,073,578 | |||||||||
Rock-Tenn Co. – Class A | 19,580 | 1,193,988 | |||||||||
Silgan Holdings, Inc. | 6,111 | 327,550 | |||||||||
Sonoco Products Co. | 14,156 | 618,617 | |||||||||
4,671,200 |
See accompanying notes to financial statements.
49
SFT Advantus Index 400 Mid-Cap Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Metals & Mining (1.7%) | |||||||||||
Carpenter Technology Corp. | 7,439 | $ | 366,371 | ||||||||
Cliffs Natural Resources, Inc. | 21,417 | 152,917 | |||||||||
Commercial Metals Co. | 16,519 | 269,095 | |||||||||
Compass Minerals International, Inc. | 4,656 | 404,280 | |||||||||
Reliance Steel & Aluminum Co. | 10,911 | 668,517 | |||||||||
Royal Gold, Inc. | 9,104 | 570,821 | |||||||||
Steel Dynamics, Inc. | 33,611 | 663,481 | |||||||||
TimkenSteel Corp. | 5,269 | 195,111 | |||||||||
United States Steel Corp. | 20,339 | 543,865 | |||||||||
Worthington Industries, Inc. | 7,077 | 212,947 | |||||||||
4,047,405 | |||||||||||
Paper & Forest Products (0.3%) | |||||||||||
Domtar Corp. (d) | 9,003 | 362,101 | |||||||||
Louisiana-Pacific Corp. (b) | 19,870 | 329,047 | |||||||||
691,148 | |||||||||||
Telecommunication Services (0.3%) | |||||||||||
Gas Utilities (0.1%) | |||||||||||
ONE GAS, Inc. | 7,250 | 298,845 | |||||||||
Wireless Telecommunication Services (0.2%) | |||||||||||
Telephone & Data Systems, Inc. | 13,728 | 346,632 | |||||||||
Utilities (4.9%) | |||||||||||
Electric Utilities (1.3%) | |||||||||||
Cleco Corp. | 8,457 | 461,245 | |||||||||
Great Plains Energy, Inc. | 21,510 | 611,099 | |||||||||
Hawaiian Electric Industries, Inc. | 14,338 | 480,036 | |||||||||
IDACORP, Inc. | 7,048 | 466,507 | |||||||||
PNM Resources, Inc. | 11,060 | 327,708 | |||||||||
Westar Energy, Inc. | 18,215 | 751,186 | |||||||||
3,097,781 | |||||||||||
Gas Utilities (1.8%) | |||||||||||
Atmos Energy Corp. | 14,035 | 782,311 | |||||||||
Energen Corp. | 10,234 | 652,520 | |||||||||
National Fuel Gas Co. | 11,770 | 818,368 | |||||||||
Questar Corp. | 24,502 | 619,411 | |||||||||
UGI Corp. | 24,106 | 915,546 | |||||||||
WGL Holdings, Inc. | 6,949 | 379,554 | |||||||||
4,167,710 | |||||||||||
Multi-Utilities (1.5%) | |||||||||||
Alliant Energy Corp. | 15,510 | 1,030,174 | |||||||||
Black Hills Corp. | 6,253 | 331,659 | |||||||||
MDU Resources Group, Inc. | 27,137 | 637,720 | |||||||||
OGE Energy Corp. | 27,866 | 988,686 | |||||||||
Vectren Corp. | 11,454 | 529,518 | |||||||||
3,517,757 | |||||||||||
Water Utilities (0.3%) | |||||||||||
Aqua America, Inc. | 24,694 | 659,330 | |||||||||
Total common stocks (cost: $145,481,972) | 228,257,612 |
Shares | Value(a) | ||||||||||
Short-Term Securities (2.6%) | |||||||||||
Investment Companies (2.6%) | |||||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 6,002,743 | $ | 6,002,743 | ||||||||
Total short-term securities (cost: $6,002,743) | 6,002,743 | ||||||||||
Total investments in securities (cost: $151,484,715) (e) | 234,260,355 | ||||||||||
Liabilities in excess of cash and other assets (-0.2%) | (537,492 | ) | |||||||||
Total net assets (100.0%) | $ | 233,722,863 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Non-income producing security.
(c) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2014, securities with an aggregate market value of $1,002,240 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
S&P Mid 400® E-Mini Index Future | March 2015 | 37 | Long | $ | 23,266 | ||||||||||||||
37 | $ | 23,266 |
(d) Foreign security: The Fund held 2.3% of net assets in foreign securities at December 31, 2014.
(e) At December 31, 2014 the cost of securities for federal income tax purposes was $152,099,153. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 88,142,197 | |||||
Gross unrealized depreciation | (5,980,995 | ) | |||||
Net unrealized appreciation | $ | 82,161,202 |
See accompanying notes to financial statements.
50
SFT Advantus Index 500 Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.2%) | |||||||||||
Consumer Discretionary (12.0%) | |||||||||||
Auto Components (0.4%) | |||||||||||
BorgWarner, Inc. | 7,780 | $ | 427,511 | ||||||||
Delphi Automotive PLC (b) | 10,200 | 741,744 | |||||||||
Johnson Controls, Inc. | 22,876 | 1,105,826 | |||||||||
The Goodyear Tire & Rubber Co. | 9,398 | 268,501 | |||||||||
2,543,582 | |||||||||||
Automobiles (0.6%) | |||||||||||
Ford Motor Co. | 132,594 | 2,055,207 | |||||||||
General Motors Co. | 46,402 | 1,619,894 | |||||||||
Harley-Davidson, Inc. | 7,382 | 486,548 | |||||||||
4,161,649 | |||||||||||
Distributors (0.1%) | |||||||||||
Genuine Parts Co. | 5,281 | 562,796 | |||||||||
Diversified Consumer Services (0.1%) | |||||||||||
H&R Block, Inc. | 9,390 | 316,255 | |||||||||
Hotels, Restaurants & Leisure (1.6%) | |||||||||||
Carnival Corp. | 15,438 | 699,804 | |||||||||
Chipotle Mexican Grill, Inc. (c) | 1,149 | 786,502 | |||||||||
Darden Restaurants, Inc. | 4,564 | 267,587 | |||||||||
Marriott International, Inc. – Class A | 7,322 | 571,336 | |||||||||
McDonald's Corp. | 33,529 | 3,141,667 | |||||||||
Royal Caribbean Cruises, Ltd. | 5,753 | 474,220 | |||||||||
Starbucks Corp. | 25,780 | 2,115,249 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 6,172 | 500,364 | |||||||||
Wyndham Worldwide Corp. | 4,218 | 361,736 | |||||||||
Wynn Resorts, Ltd. | 2,767 | 411,619 | |||||||||
Yum! Brands, Inc. | 15,067 | 1,097,631 | |||||||||
10,427,715 | |||||||||||
Household Durables (0.5%) | |||||||||||
DR Horton, Inc. | 11,342 | 286,839 | |||||||||
Garmin, Ltd. (b) | 4,086 | 215,864 | |||||||||
Harman International Industries, Inc. | 2,323 | 247,887 | |||||||||
Leggett & Platt, Inc. | 4,735 | 201,758 | |||||||||
Lennar Corp. – Class A | 6,135 | 274,909 | |||||||||
Mohawk Industries, Inc. (c) | 2,180 | 338,685 | |||||||||
Newell Rubbermaid, Inc. | 9,339 | 355,723 | |||||||||
PulteGroup, Inc. | 11,496 | 246,704 | |||||||||
Stanley Black & Decker, Inc. | 5,397 | 518,544 | |||||||||
Whirlpool Corp. | 2,677 | 518,642 | |||||||||
3,205,555 | |||||||||||
Internet & Catalog Retail (1.2%) | |||||||||||
Amazon.com, Inc. (c) | 13,071 | 4,056,585 | |||||||||
Expedia, Inc. | 3,422 | 292,102 | |||||||||
Netflix, Inc. (c) | 2,126 | 726,263 | |||||||||
The Priceline Group, Inc. (c) | 1,812 | 2,066,060 | |||||||||
TripAdvisor, Inc. (c) | 3,864 | 288,486 | |||||||||
7,429,496 |
Shares | Value(a) | ||||||||||
Leisure Equipment & Products (0.1%) | |||||||||||
Hasbro, Inc. | 3,858 | $ | 212,151 | ||||||||
Mattel, Inc. | 11,655 | 360,664 | |||||||||
572,815 | |||||||||||
Media (3.6%) | |||||||||||
Cablevision Systems Corp. | 7,483 | 154,449 | |||||||||
CBS Corp. – Class B | 16,427 | 909,070 | |||||||||
Comcast Corp. – Class A | 88,758 | 5,148,852 | |||||||||
DIRECTV (c) | 17,326 | 1,502,164 | |||||||||
Discovery Communications, Inc. (c) | 9,327 | 314,506 | |||||||||
Discovery Communications, Inc. (c) | 5,104 | 175,833 | |||||||||
Gannett Co., Inc. | 7,684 | 245,350 | |||||||||
Interpublic Group of Cos., Inc. | 14,408 | 299,254 | |||||||||
McGraw Hill Financial, Inc. | 9,345 | 831,518 | |||||||||
News Corp. – Class A (c) | 17,179 | 269,539 | |||||||||
Omnicom Group, Inc. | 8,550 | 662,368 | |||||||||
Scripps Networks Interactive, Inc. – Class A | 3,486 | 262,391 | |||||||||
The Walt Disney Co. | 53,747 | 5,062,430 | |||||||||
Time Warner Cable, Inc. | 9,712 | 1,476,807 | |||||||||
Time Warner, Inc. | 28,887 | 2,467,528 | |||||||||
Twenty-First Century Fox, Inc. – Class A | 63,883 | 2,453,427 | |||||||||
Viacom, Inc. – Class B | 12,727 | 957,707 | |||||||||
23,193,193 | |||||||||||
Multiline Retail (0.7%) | |||||||||||
Dollar General Corp. (c) | 10,466 | 739,946 | |||||||||
Dollar Tree, Inc. (c) | 7,093 | 499,205 | |||||||||
Family Dollar Stores, Inc. | 3,302 | 261,552 | |||||||||
Kohl's Corp. | 6,959 | 424,777 | |||||||||
Macy's, Inc. | 11,895 | 782,096 | |||||||||
Nordstrom, Inc. | 4,817 | 382,422 | |||||||||
Target Corp. | 21,962 | 1,667,136 | |||||||||
4,757,134 | |||||||||||
Specialty Retail (2.3%) | |||||||||||
AutoNation, Inc. (c) | 2,530 | 152,837 | |||||||||
AutoZone, Inc. (c) | 1,162 | 719,406 | |||||||||
Bed Bath & Beyond, Inc. (c) | 6,390 | 486,726 | |||||||||
Best Buy Co., Inc. | 10,011 | 390,229 | |||||||||
CarMax, Inc. (c) | 7,420 | 494,024 | |||||||||
GameStop Corp. – Class A | 3,738 | 126,344 | |||||||||
L Brands, Inc. | 8,472 | 733,252 | |||||||||
Lowe's Cos., Inc. | 33,518 | 2,306,038 | |||||||||
O'Reilly Automotive, Inc. (c) | 3,489 | 672,051 | |||||||||
PetSmart, Inc. | 3,451 | 280,549 | |||||||||
Ross Stores, Inc. | 7,239 | 682,348 | |||||||||
Staples, Inc. | 22,042 | 399,401 | |||||||||
The Gap, Inc. | 9,193 | 387,117 | |||||||||
The Home Depot, Inc. | 45,402 | 4,765,848 | |||||||||
The TJX Cos., Inc. | 23,734 | 1,627,678 | |||||||||
Tiffany & Co. | 3,880 | 414,617 | |||||||||
Tractor Supply Co. | 4,649 | 366,434 | |||||||||
Urban Outfitters, Inc. (c) | 3,422 | 120,215 | |||||||||
15,125,114 |
See accompanying notes to financial statements.
51
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Textiles, Apparel & Luxury Goods (0.8%) | |||||||||||
Coach, Inc. | 9,474 | $ | 355,844 | ||||||||
Fossil Group, Inc. (c) | 1,513 | 167,550 | |||||||||
Michael Kors Holdings, Ltd. (b) (c) | 7,081 | 531,783 | |||||||||
NIKE, Inc. – Class B | 24,041 | 2,311,542 | |||||||||
PVH Corp. | 2,876 | 368,617 | |||||||||
Ralph Lauren Corp. | 2,133 | 394,946 | |||||||||
Under Armour, Inc. – Class A (c) | 5,739 | 389,678 | |||||||||
VF Corp. | 11,898 | 891,160 | |||||||||
5,411,120 | |||||||||||
Consumer Staples (9.5%) | |||||||||||
Beverages (2.2%) | |||||||||||
Brown-Forman Corp. – Class B | 5,350 | 469,944 | |||||||||
Coca-Cola Enterprises, Inc. | 7,661 | 338,769 | |||||||||
Constellation Brands, Inc. – Class A (c) | 5,780 | 567,423 | |||||||||
Dr Pepper Snapple Group, Inc. | 6,631 | 475,310 | |||||||||
Keurig Green Mountain, Inc. | 4,202 | 556,324 | |||||||||
Molson Coors Brewing Co. – Class B | 5,491 | 409,189 | |||||||||
Monster Beverage Corp. (c) | 4,960 | 537,416 | |||||||||
PepsiCo, Inc. | 51,561 | 4,875,608 | |||||||||
The Coca-Cola Co. | 135,812 | 5,733,983 | |||||||||
13,963,966 | |||||||||||
Food & Staples Retailing (2.4%) | |||||||||||
Costco Wholesale Corp. | 15,121 | 2,143,402 | |||||||||
CVS Health Corp. | 39,495 | 3,803,763 | |||||||||
Safeway, Inc. | 7,848 | 275,622 | |||||||||
Sysco Corp. | 20,242 | 803,405 | |||||||||
The Kroger Co. | 16,867 | 1,083,030 | |||||||||
Wal-Mart Stores, Inc. | 54,375 | 4,669,725 | |||||||||
Walgreens Boots Alliance, Inc. | 29,968 | 2,283,562 | |||||||||
Whole Foods Market, Inc. | 12,362 | 623,292 | |||||||||
15,685,801 | |||||||||||
Food Products (1.5%) | |||||||||||
Archer-Daniels-Midland Co. | 22,169 | 1,152,788 | |||||||||
Campbell Soup Co. | 6,072 | 267,168 | |||||||||
ConAgra Foods, Inc. | 14,575 | 528,781 | |||||||||
General Mills, Inc. | 20,800 | 1,109,264 | |||||||||
Hormel Foods Corp. | 4,535 | 236,273 | |||||||||
Kellogg Co. | 8,684 | 568,281 | |||||||||
Kraft Foods Group, Inc. | 20,286 | 1,271,121 | |||||||||
McCormick & Co., Inc. | 4,378 | 325,285 | |||||||||
Mead Johnson Nutrition Co. | 6,974 | 701,166 | |||||||||
Mondelez International, Inc. – Class A | 57,876 | 2,102,346 | |||||||||
The Hershey Co. | 5,047 | 524,535 | |||||||||
The JM Smucker Co. | 3,469 | 350,300 | |||||||||
Tyson Foods, Inc. – Class A | 10,004 | 401,060 | |||||||||
9,538,368 | |||||||||||
Household Products (1.9%) | |||||||||||
Clorox Co. | 4,445 | 463,214 | |||||||||
Colgate-Palmolive Co. | 29,515 | 2,042,143 | |||||||||
Kimberly-Clark Corp. | 12,800 | 1,478,912 | |||||||||
The Procter & Gamble Co. | 93,093 | 8,479,841 | |||||||||
12,464,110 |
Shares | Value(a) | ||||||||||
Personal Care (0.1%) | |||||||||||
Avon Products, Inc. | 14,894 | $ | 139,855 | ||||||||
The Estee Lauder Cos., Inc. – Class A | 7,661 | 583,768 | |||||||||
723,623 | |||||||||||
Tobacco (1.4%) | |||||||||||
Altria Group, Inc. | 68,093 | 3,354,942 | |||||||||
Lorillard, Inc. | 12,320 | 775,421 | |||||||||
Philip Morris International, Inc. | 53,528 | 4,359,855 | |||||||||
Reynolds American, Inc. | 10,630 | 683,190 | |||||||||
9,173,408 | |||||||||||
Energy (8.2%) | |||||||||||
Energy Equipment & Services (1.3%) | |||||||||||
Baker Hughes, Inc. | 14,906 | 835,779 | |||||||||
Cameron International Corp. (c) | 6,802 | 339,760 | |||||||||
Diamond Offshore Drilling, Inc. | 2,218 | 81,423 | |||||||||
Ensco PLC – Class A (b) | 8,062 | 241,457 | |||||||||
FMC Technologies, Inc. (c) | 8,002 | 374,814 | |||||||||
Halliburton Co. | 29,196 | 1,148,279 | |||||||||
Helmerich & Payne, Inc. | 3,735 | 251,814 | |||||||||
Nabors Industries, Ltd. (b) | 9,882 | 128,268 | |||||||||
National Oilwell Varco, Inc. | 14,842 | 972,596 | |||||||||
Noble Corp. PLC (b) | 8,671 | 143,678 | |||||||||
Schlumberger, Ltd. | 44,332 | 3,786,396 | |||||||||
Transocean, Ltd. (b) | 11,645 | 213,453 | |||||||||
8,517,717 | |||||||||||
Oil, Gas & Consumable Fuels (6.9%) | |||||||||||
Anadarko Petroleum Corp. | 17,455 | 1,440,037 | |||||||||
Apache Corp. | 12,970 | 812,830 | |||||||||
Cabot Oil & Gas Corp. – Class A | 14,229 | 421,321 | |||||||||
Chesapeake Energy Corp. | 17,815 | 348,640 | |||||||||
Chevron Corp. | 65,129 | 7,306,171 | |||||||||
Cimarex Energy Co. | 3,040 | 322,240 | |||||||||
ConocoPhillips | 42,419 | 2,929,456 | |||||||||
Consol Energy, Inc. | 7,840 | 265,070 | |||||||||
Denbury Resources, Inc. | 12,053 | 97,991 | |||||||||
Devon Energy Corp. | 13,166 | 805,891 | |||||||||
EOG Resources, Inc. | 18,886 | 1,738,834 | |||||||||
EQT Corp. | 5,226 | 395,608 | |||||||||
Exxon Mobil Corp. | 145,888 | 13,487,346 | |||||||||
Hess Corp. | 8,755 | 646,294 | |||||||||
Kinder Morgan, Inc. | 58,538 | 2,476,743 | |||||||||
Marathon Oil Corp. | 23,169 | 655,451 | |||||||||
Marathon Petroleum Corp. | 9,653 | 871,280 | |||||||||
Murphy Oil Corp. | 5,658 | 285,842 | |||||||||
Newfield Exploration Co. (c) | 4,714 | 127,844 | |||||||||
Noble Energy, Inc. | 12,328 | 584,717 | |||||||||
Occidental Petroleum Corp. | 26,715 | 2,153,496 | |||||||||
Phillips 66 | 19,069 | 1,367,247 | |||||||||
Pioneer Natural Resources Co. | 5,130 | 763,601 | |||||||||
QEP Resources, Inc. | 5,615 | 113,535 | |||||||||
Range Resources Corp. | 5,819 | 311,026 | |||||||||
Southwestern Energy Co. (c) | 12,083 | 329,745 | |||||||||
Spectra Energy Corp. | 23,045 | 836,534 | |||||||||
Tesoro Corp. | 4,324 | 321,489 |
See accompanying notes to financial statements.
52
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
The Williams Cos., Inc. | 23,103 | $ | 1,038,249 | ||||||||
Valero Energy Corp. | 17,957 | 888,871 | |||||||||
44,143,399 | |||||||||||
Financial (16.0%) | |||||||||||
Capital Markets (2.2%) | |||||||||||
Affiliated Managers Group, Inc. (c) | 1,969 | 417,901 | |||||||||
Ameriprise Financial, Inc. | 6,358 | 840,845 | |||||||||
BlackRock, Inc. | 4,456 | 1,593,287 | |||||||||
E*Trade Financial Corp. (c) | 9,860 | 239,154 | |||||||||
Franklin Resources, Inc. | 13,490 | 746,941 | |||||||||
Invesco, Ltd. | 14,827 | 585,963 | |||||||||
Legg Mason, Inc. | 3,418 | 182,419 | |||||||||
Morgan Stanley | 52,600 | 2,040,880 | |||||||||
Northern Trust Corp. | 7,639 | 514,869 | |||||||||
State Street Corp. | 14,383 | 1,129,065 | |||||||||
T Rowe Price Group, Inc. | 8,936 | 767,245 | |||||||||
The Bank of New York Mellon Corp. | 38,782 | 1,573,386 | |||||||||
The Charles Schwab Corp. | 39,568 | 1,194,558 | |||||||||
The Goldman Sachs Group, Inc. | 13,955 | 2,704,898 | |||||||||
14,531,411 | |||||||||||
Commercial Banks (5.9%) | |||||||||||
Bank of America Corp. | 362,311 | 6,481,744 | |||||||||
BB&T Corp. | 24,725 | 961,555 | |||||||||
Citigroup, Inc. | 104,371 | 5,647,515 | |||||||||
Comerica, Inc. | 6,138 | 287,504 | |||||||||
Fifth Third Bancorp | 28,388 | 578,405 | |||||||||
Huntington Bancshares, Inc. | 28,059 | 295,181 | |||||||||
JPMorgan Chase & Co. | 128,787 | 8,059,494 | |||||||||
KeyCorp | 29,846 | 414,859 | |||||||||
M&T Bank Corp. | 4,561 | 572,953 | |||||||||
Regions Financial Corp. | 47,422 | 500,776 | |||||||||
SunTrust Banks, Inc. | 17,965 | 752,733 | |||||||||
The PNC Financial Services Group, Inc. | 18,129 | 1,653,909 | |||||||||
US Bancorp | 61,647 | 2,771,033 | |||||||||
Wells Fargo & Co. | 162,638 | 8,915,815 | |||||||||
Zions Bancorporation | 6,895 | 196,576 | |||||||||
38,090,052 | |||||||||||
Consumer Finance (0.9%) | |||||||||||
American Express Co. | 30,656 | 2,852,234 | |||||||||
Capital One Financial Corp. | 19,154 | 1,581,163 | |||||||||
Discover Financial Services | 15,623 | 1,023,150 | |||||||||
Navient Corp. | 14,132 | 305,393 | |||||||||
5,761,940 | |||||||||||
Diversified Financial Services (0.4%) | |||||||||||
CME Group, Inc. | 10,896 | 965,931 | |||||||||
Intercontinental Exchange, Inc. | 3,915 | 858,520 | |||||||||
Leucadia National Corp. | 10,834 | 242,898 | |||||||||
Moody's Corp. | 6,311 | 604,657 | |||||||||
The NASDAQ OMX Group, Inc. | 3,974 | 190,593 | |||||||||
2,862,599 | |||||||||||
Diversified REITs (0.1%) | |||||||||||
Vornado Realty Trust | 6,021 | 708,732 |
Shares | Value(a) | ||||||||||
Industrial REIT's (0.1%) | |||||||||||
ProLogis, Inc. | 17,149 | $ | 737,921 | ||||||||
Insurance (4.2%) | |||||||||||
ACE, Ltd. (b) | 11,429 | 1,312,964 | |||||||||
Aflac, Inc. | 15,523 | 948,300 | |||||||||
American International Group, Inc. | 48,229 | 2,701,306 | |||||||||
Aon PLC (b) | 9,823 | 931,515 | |||||||||
Assurant, Inc. | 2,379 | 162,795 | |||||||||
Berkshire Hathaway, Inc. – Class B (c) | 62,792 | 9,428,219 | |||||||||
Chubb Corp. | 8,124 | 840,590 | |||||||||
Cincinnati Financial Corp. | 4,981 | 258,165 | |||||||||
Genworth Financial, Inc. – Class A (c) | 17,032 | 144,772 | |||||||||
Hartford Financial Services Group, Inc. | 14,865 | 619,722 | |||||||||
Lincoln National Corp. | 8,906 | 513,609 | |||||||||
Loews Corp. | 10,311 | 433,268 | |||||||||
Marsh & McLennan Cos., Inc. | 18,635 | 1,066,667 | |||||||||
MetLife, Inc. | 39,138 | 2,116,974 | |||||||||
Principal Financial Group, Inc. | 9,329 | 484,548 | |||||||||
Prudential Financial, Inc. | 15,769 | 1,426,464 | |||||||||
The Allstate Corp. | 14,450 | 1,015,113 | |||||||||
The Progressive Corp. | 18,428 | 497,372 | |||||||||
The Travelers Cos., Inc. | 11,417 | 1,208,490 | |||||||||
Torchmark Corp. | 4,405 | 238,619 | |||||||||
Unum Group | 8,681 | 302,793 | |||||||||
XL Group PLC (b) | 8,890 | 305,549 | |||||||||
26,957,814 | |||||||||||
Office REITs (0.1%) | |||||||||||
Boston Properties, Inc. | 5,287 | 680,384 | |||||||||
Real Estate Services (0.1%) | |||||||||||
CBRE Group, Inc. – Class A (c) | 9,624 | 329,622 | |||||||||
Residential REITs (0.3%) | |||||||||||
Apartment Investment & Management Co. – Class A | 4,940 | 183,521 | |||||||||
AvalonBay Communities, Inc. | 4,526 | 739,503 | |||||||||
Equity Residential | 12,479 | 896,492 | |||||||||
Essex Property Trust, Inc. | 2,180 | 450,388 | |||||||||
2,269,904 | |||||||||||
Retail REITs (0.5%) | |||||||||||
General Growth Properties, Inc. | 21,548 | 606,145 | |||||||||
Kimco Realty Corp. | 14,079 | 353,946 | |||||||||
Simon Property Group, Inc. | 10,721 | 1,952,401 | |||||||||
The Macerich Co. | 4,853 | 404,789 | |||||||||
3,317,281 | |||||||||||
Specialized REITs (1.1%) | |||||||||||
American Tower Corp. | 13,666 | 1,350,884 | |||||||||
Crown Castle International Corp. | 11,517 | 906,388 | |||||||||
HCP, Inc. | 15,728 | 692,504 |
See accompanying notes to financial statements.
53
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Health Care REIT, Inc. | 11,289 | $ | 854,239 | ||||||||
Host Hotels & Resorts, Inc. | 26,013 | 618,329 | |||||||||
Plum Creek Timber Co., Inc. | 6,010 | 257,168 | |||||||||
Public Storage | 5,039 | 931,459 | |||||||||
Ventas, Inc. | 10,154 | 728,042 | |||||||||
Weyerhaeuser Co. | 18,066 | 648,377 | |||||||||
6,987,390 | |||||||||||
Thrifts & Mortgage Finance (0.1%) | |||||||||||
Hudson City Bancorp, Inc. | 16,500 | 166,980 | |||||||||
People's United Financial, Inc. | 10,605 | 160,984 | |||||||||
327,964 | |||||||||||
Health Care (13.8%) | |||||||||||
Biotechnology (2.8%) | |||||||||||
Alexion Pharmaceuticals, Inc. (c) | 6,824 | 1,262,645 | |||||||||
Amgen, Inc. | 26,206 | 4,174,354 | |||||||||
Biogen Idec, Inc. (c) | 8,147 | 2,765,499 | |||||||||
Celgene Corp. (c) | 27,482 | 3,074,136 | |||||||||
Gilead Sciences, Inc. (c) | 51,976 | 4,899,258 | |||||||||
Regeneron Pharmaceuticals, Inc. (c) | 2,581 | 1,058,855 | |||||||||
Vertex Pharmaceuticals, Inc. (c) | 8,313 | 987,584 | |||||||||
18,222,331 | |||||||||||
Health Care Equipment & Supplies (2.2%) | |||||||||||
Abbott Laboratories | 51,876 | 2,335,457 | |||||||||
Baxter International, Inc. | 18,687 | 1,369,570 | |||||||||
Becton Dickinson and Co. | 6,618 | 920,961 | |||||||||
Boston Scientific Corp. (c) | 45,635 | 604,664 | |||||||||
CareFusion Corp. (c) | 6,998 | 415,261 | |||||||||
Covidien PLC (b) | 15,585 | 1,594,034 | |||||||||
CR Bard, Inc. | 2,610 | 434,878 | |||||||||
DENTSPLY International, Inc. | 4,791 | 255,217 | |||||||||
Edwards Lifesciences Corp. (c) | 3,703 | 471,688 | |||||||||
Intuitive Surgical, Inc. (c) | 1,298 | 686,564 | |||||||||
Medtronic, Inc. | 33,911 | 2,448,374 | |||||||||
St Jude Medical, Inc. | 9,821 | 638,660 | |||||||||
Stryker Corp. | 10,318 | 973,297 | |||||||||
Varian Medical Systems, Inc. (c) | 3,405 | 294,567 | |||||||||
Zimmer Holdings, Inc. | 5,827 | 660,898 | |||||||||
14,104,090 | |||||||||||
Health Care Providers & Services (2.2%) | |||||||||||
Aetna, Inc. | 12,117 | 1,076,353 | |||||||||
AmerisourceBergen Corp. | 7,158 | 645,365 | |||||||||
Anthem, Inc. | 9,300 | 1,168,731 | |||||||||
Cardinal Health, Inc. | 11,402 | 920,484 | |||||||||
Cigna Corp. | 9,001 | 926,293 | |||||||||
DaVita HealthCare Partners, Inc. (c) | 5,927 | 448,911 | |||||||||
Express Scripts Holding Co. (c) | 25,284 | 2,140,796 | |||||||||
Humana, Inc. | 5,321 | 764,255 | |||||||||
Laboratory Corp. of America Holdings (c) | 2,880 | 310,752 | |||||||||
McKesson Corp. | 7,990 | 1,658,564 | |||||||||
Patterson Cos., Inc. | 2,909 | 139,923 |
Shares | Value(a) | ||||||||||
Quest Diagnostics, Inc. | 4,982 | $ | 334,093 | ||||||||
Tenet Healthcare Corp. (c) | 3,378 | 171,163 | |||||||||
UnitedHealth Group, Inc. | 33,067 | 3,342,743 | |||||||||
Universal Health Services, Inc. – Class B | 3,167 | 352,361 | |||||||||
14,400,787 | |||||||||||
Health Care Technology (0.1%) | |||||||||||
Cerner Corp. (c) | 10,471 | 677,055 | |||||||||
Life Sciences Tools & Services (0.4%) | |||||||||||
Agilent Technologies, Inc. | 11,405 | 466,921 | |||||||||
PerkinElmer, Inc. | 3,795 | 165,955 | |||||||||
Thermo Fisher Scientific, Inc. | 13,763 | 1,724,366 | |||||||||
Waters Corp. (c) | 2,837 | 319,787 | |||||||||
2,677,029 | |||||||||||
Pharmaceuticals (6.1%) | |||||||||||
AbbVie, Inc. | 54,812 | 3,586,897 | |||||||||
Actavis PLC (c) | 9,117 | 2,346,807 | |||||||||
Allergan, Inc. | 10,253 | 2,179,685 | |||||||||
Bristol-Myers Squibb Co. | 57,096 | 3,370,377 | |||||||||
Eli Lilly & Co. | 33,756 | 2,328,827 | |||||||||
Hospira, Inc. (c) | 5,821 | 356,536 | |||||||||
Johnson & Johnson | 96,435 | 10,084,208 | |||||||||
Mallinckrodt PLC (c) | 4,006 | 396,714 | |||||||||
Merck & Co., Inc. | 98,218 | 5,577,800 | |||||||||
Mylan, Inc. (c) | 12,804 | 721,762 | |||||||||
Perrigo Co. PLC (b) | 4,850 | 810,726 | |||||||||
Pfizer, Inc. | 217,069 | 6,761,699 | |||||||||
Zoetis, Inc. | 17,190 | 739,686 | |||||||||
39,261,724 | |||||||||||
Industrials (10.1%) | |||||||||||
Aerospace & Defense (2.5%) | |||||||||||
General Dynamics Corp. | 10,846 | 1,492,627 | |||||||||
Honeywell International, Inc. | 26,997 | 2,697,541 | |||||||||
L-3 Communications Holdings, Inc. | 2,982 | 376,358 | |||||||||
Lockheed Martin Corp. | 9,307 | 1,792,249 | |||||||||
Northrop Grumman Corp. | 6,959 | 1,025,687 | |||||||||
Precision Castparts Corp. | 4,950 | 1,192,356 | |||||||||
Raytheon Co. | 10,619 | 1,148,657 | |||||||||
Rockwell Collins, Inc. | 4,571 | 386,158 | |||||||||
The Boeing Co. | 22,843 | 2,969,133 | |||||||||
United Technologies Corp. | 29,210 | 3,359,150 | |||||||||
16,439,916 | |||||||||||
Air Freight & Logistics (0.8%) | |||||||||||
CH Robinson Worldwide, Inc. | 4,976 | 372,653 | |||||||||
Expeditors International of Washington, Inc. | 6,631 | 295,809 | |||||||||
FedEx Corp. | 9,057 | 1,572,839 | |||||||||
United Parcel Service, Inc. – Class B | 24,014 | 2,669,636 | |||||||||
4,910,937 | |||||||||||
Airlines (0.4%) | |||||||||||
Delta Air Lines, Inc. | 28,834 | 1,418,344 | |||||||||
Southwest Airlines Co. | 23,384 | 989,611 | |||||||||
2,407,955 |
See accompanying notes to financial statements.
54
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Building Products (0.1%) | |||||||||||
Allegion PLC (b) | 3,230 | $ | 179,136 | ||||||||
Masco Corp. | 12,197 | 307,364 | |||||||||
486,500 | |||||||||||
Commercial Services & Supplies (0.5%) | |||||||||||
Avery Dennison Corp. | 3,133 | 162,540 | |||||||||
Cintas Corp. | 3,348 | 262,617 | |||||||||
Iron Mountain, Inc. | 6,422 | 248,282 | |||||||||
Pitney Bowes, Inc. | 6,896 | 168,055 | |||||||||
Republic Services, Inc. | 8,612 | 346,633 | |||||||||
Stericycle, Inc. (c) | 2,951 | 386,817 | |||||||||
The ADT Corp. | 6,003 | 217,489 | |||||||||
Tyco International PLC | 14,360 | 629,830 | |||||||||
Waste Management, Inc. | 14,671 | 752,916 | |||||||||
3,175,179 | |||||||||||
Construction & Engineering (0.1%) | |||||||||||
Fluor Corp. | 5,334 | 323,400 | |||||||||
Jacobs Engineering Group, Inc. (c) | 4,490 | 200,658 | |||||||||
Quanta Services, Inc. (c) | 7,479 | 212,329 | |||||||||
736,387 | |||||||||||
Electrical Equipment (0.6%) | |||||||||||
AMETEK, Inc. | 8,379 | 440,987 | |||||||||
Eaton Corp. PLC | 16,318 | 1,108,971 | |||||||||
Emerson Electric Co. | 23,897 | 1,475,162 | |||||||||
Rockwell Automation, Inc. | 4,682 | 520,638 | |||||||||
Roper Industries, Inc. | 3,499 | 547,069 | |||||||||
4,092,827 | |||||||||||
Industrial Conglomerates (2.3%) | |||||||||||
3M Co. | 22,078 | 3,627,857 | |||||||||
Danaher Corp. | 21,030 | 1,802,481 | |||||||||
General Electric Co. | 345,972 | 8,742,713 | |||||||||
Textron, Inc. | 9,510 | 400,466 | |||||||||
14,573,517 | |||||||||||
Machinery (1.4%) | |||||||||||
Caterpillar, Inc. | 20,857 | 1,909,041 | |||||||||
Cummins, Inc. | 5,900 | 850,603 | |||||||||
Deere & Co. | 12,365 | 1,093,932 | |||||||||
Dover Corp. | 5,645 | 404,859 | |||||||||
Flowserve Corp. | 4,619 | 276,355 | |||||||||
Illinois Tool Works, Inc. | 12,391 | 1,173,428 | |||||||||
Ingersoll-Rand PLC | 9,128 | 578,624 | |||||||||
Joy Global, Inc. | 3,292 | 153,144 | |||||||||
PACCAR, Inc. | 12,139 | 825,573 | |||||||||
Pall Corp. | 3,691 | 373,566 | |||||||||
Parker Hannifin Corp. | 5,133 | 661,900 | |||||||||
Pentair PLC (b) | 6,435 | 427,413 | |||||||||
Snap-On, Inc. | 2,038 | 278,676 | |||||||||
Xylem, Inc. | 6,202 | 236,110 | |||||||||
9,243,224 | |||||||||||
Professional Services (0.2%) | |||||||||||
Dun & Bradstreet Corp. | 1,239 | 149,870 | |||||||||
Equifax, Inc. | 4,120 | 333,184 | |||||||||
Nielsen NV | 11,061 | 494,759 | |||||||||
Robert Half International, Inc. | 4,643 | 271,058 | |||||||||
United Rentals, Inc. (c) | 3,439 | 350,812 | |||||||||
1,599,683 |
Shares | Value(a) | ||||||||||
Road & Rail (1.0%) | |||||||||||
CSX Corp. | 34,293 | $ | 1,242,435 | ||||||||
Kansas City Southern | 3,806 | 464,446 | |||||||||
Norfolk Southern Corp. | 10,678 | 1,170,416 | |||||||||
Ryder System, Inc. | 1,860 | 172,701 | |||||||||
Union Pacific Corp. | 30,631 | 3,649,071 | |||||||||
6,699,069 | |||||||||||
Trading Companies & Distributors (0.2%) | |||||||||||
Fastenal Co. | 9,319 | 443,212 | |||||||||
WW Grainger, Inc. | 2,155 | 549,288 | |||||||||
992,500 | |||||||||||
Information Technology (19.1%) | |||||||||||
Communications Equipment (1.6%) | |||||||||||
Cisco Systems, Inc. | 176,172 | 4,900,224 | |||||||||
F5 Networks, Inc. (c) | 2,558 | 333,730 | |||||||||
Harris Corp. | 3,614 | 259,558 | |||||||||
Juniper Networks, Inc. | 13,263 | 296,030 | |||||||||
Motorola Solutions, Inc. | 7,298 | 489,550 | |||||||||
QUALCOMM, Inc. | 57,280 | 4,257,622 | |||||||||
10,536,714 | |||||||||||
Computers & Peripherals (4.5%) | |||||||||||
Apple, Inc. (d) | 202,055 | 22,302,831 | |||||||||
EMC Corp. | 70,106 | 2,084,952 | |||||||||
Hewlett-Packard Co. | 64,284 | 2,579,717 | |||||||||
NetApp, Inc. | 10,738 | 445,090 | |||||||||
SanDisk Corp. | 7,602 | 744,844 | |||||||||
Western Digital Corp. | 7,488 | 828,922 | |||||||||
28,986,356 | |||||||||||
Electronic Equipment, Instruments & Components (0.5%) | |||||||||||
Amphenol Corp. – Class A | 10,661 | 573,668 | |||||||||
Corning, Inc. | 44,162 | 1,012,635 | |||||||||
FLIR Systems, Inc. | 4,789 | 154,733 | |||||||||
Seagate Technology PLC | 11,274 | 749,721 | |||||||||
TE Connectivity, Ltd. (b) | 14,010 | 886,132 | |||||||||
3,376,889 | |||||||||||
Internet Software & Services (3.1%) | |||||||||||
Akamai Technologies, Inc. (c) | 6,046 | 380,656 | |||||||||
eBay, Inc. (c) | 38,866 | 2,181,160 | |||||||||
Facebook, Inc. – Class A (c) | 72,035 | 5,620,171 | |||||||||
Google, Inc. – Class A (c) | 9,901 | 5,254,065 | |||||||||
Google, Inc. – Class C (c) | 9,721 | 5,117,134 | |||||||||
VeriSign, Inc. (c) | 3,683 | 209,931 | |||||||||
Yahoo!, Inc. (c) | 30,353 | 1,533,130 | |||||||||
20,296,247 | |||||||||||
IT Services (3.1%) | |||||||||||
Accenture PLC – Class A (b) | 21,619 | 1,930,793 | |||||||||
Alliance Data Systems Corp. (c) | 2,203 | 630,168 | |||||||||
Automatic Data Processing, Inc. | 16,591 | 1,383,192 | |||||||||
Cognizant Technology Solutions Corp. – Class A (c) | 20,972 | 1,104,385 | |||||||||
Computer Sciences Corp. | 4,840 | 305,162 | |||||||||
Fidelity National Information Services, Inc. | 9,746 | 606,201 |
See accompanying notes to financial statements.
55
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Fiserv, Inc. (c) | 8,405 | $ | 596,503 | ||||||||
International Business Machines Corp. | 31,709 | 5,087,392 | |||||||||
Mastercard, Inc. – Class A | 33,760 | 2,908,762 | |||||||||
Paychex, Inc. | 11,173 | 515,857 | |||||||||
Teradata Corp. (c) | 5,247 | 229,189 | |||||||||
The Western Union Co. | 18,005 | 322,470 | |||||||||
Total System Services, Inc. | 5,601 | 190,210 | |||||||||
Visa, Inc. – Class A | 16,827 | 4,412,039 | |||||||||
20,222,323 | |||||||||||
Office Electronics (0.1%) | |||||||||||
Xerox Corp. | 36,969 | 512,390 | |||||||||
Semiconductors & Semiconductor Equipment (2.4%) | |||||||||||
Altera Corp. | 10,501 | 387,907 | |||||||||
Analog Devices, Inc. | 10,721 | 595,230 | |||||||||
Applied Materials, Inc. | 41,933 | 1,044,970 | |||||||||
Avago Technologies, Ltd. (b) | 8,684 | 873,524 | |||||||||
Broadcom Corp. – Class A | 18,553 | 803,902 | |||||||||
First Solar, Inc. (c) | 2,526 | 112,647 | |||||||||
Intel Corp. | 166,574 | 6,044,970 | |||||||||
KLA-Tencor Corp. | 5,605 | 394,144 | |||||||||
Lam Research Corp. | 5,476 | 434,466 | |||||||||
Linear Technology Corp. | 8,128 | 370,637 | |||||||||
Microchip Technology, Inc. | 6,913 | 311,845 | |||||||||
Micron Technology, Inc. (c) | 36,942 | 1,293,339 | |||||||||
NVIDIA Corp. | 17,760 | 356,088 | |||||||||
Texas Instruments, Inc. | 36,391 | 1,945,645 | |||||||||
Xilinx, Inc. | 9,110 | 394,372 | |||||||||
15,363,686 | |||||||||||
Software (3.8%) | |||||||||||
Adobe Systems, Inc. (c) | 16,301 | 1,185,083 | |||||||||
Autodesk, Inc. (c) | 7,839 | 470,810 | |||||||||
CA, Inc. | 10,955 | 333,580 | |||||||||
Citrix Systems, Inc. (c) | 5,545 | 353,771 | |||||||||
Electronic Arts, Inc. (c) | 10,684 | 502,308 | |||||||||
Intuit, Inc. | 9,793 | 902,817 | |||||||||
Microsoft Corp. | 283,982 | 13,190,964 | |||||||||
Oracle Corp. | 111,446 | 5,011,726 | |||||||||
Red Hat, Inc. (c) | 6,423 | 444,086 | |||||||||
Salesforce.com, Inc. (c) | 20,217 | 1,199,070 | |||||||||
Symantec Corp. | 23,720 | 608,537 | |||||||||
24,202,752 | |||||||||||
Materials (3.1%) | |||||||||||
Chemicals (2.3%) | |||||||||||
Air Products & Chemicals, Inc. | 6,614 | 953,937 | |||||||||
Airgas, Inc. | 2,349 | 270,558 | |||||||||
CF Industries Holdings, Inc. | 1,764 | 480,761 | |||||||||
Eastman Chemical Co. | 5,044 | 382,638 | |||||||||
Ecolab, Inc. | 9,303 | 972,350 | |||||||||
EI du Pont de Nemours & Co. | 31,211 | 2,307,741 | |||||||||
FMC Corp. | 4,594 | 261,996 | |||||||||
International Flavors & Fragrances, Inc. | 2,800 | 283,808 | |||||||||
LyondellBasell Industries NV – Class A | 14,316 | 1,136,547 | |||||||||
Monsanto Co. | 16,718 | 1,997,299 |
Shares | Value(a) | ||||||||||
PPG Industries, Inc. | 4,792 | $ | 1,107,671 | ||||||||
Praxair, Inc. | 10,075 | 1,305,317 | |||||||||
Sigma-Aldrich Corp. | 4,120 | 565,552 | |||||||||
The Dow Chemical Co. | 38,167 | 1,740,797 | |||||||||
The Mosaic Co. | 10,873 | 496,352 | |||||||||
The Sherwin-Williams Co. | 2,795 | 735,197 | |||||||||
14,998,521 | |||||||||||
Construction Materials (0.1%) | |||||||||||
Martin Marietta Materials, Inc. | 2,153 | 237,519 | |||||||||
Vulcan Materials Co. | 4,516 | 296,837 | |||||||||
534,356 | |||||||||||
Containers & Packaging (0.1%) | |||||||||||
Ball Corp. | 4,676 | 318,763 | |||||||||
Owens-Illinois, Inc. (c) | 5,586 | 150,766 | |||||||||
Sealed Air Corp. | 7,214 | 306,090 | |||||||||
775,619 | |||||||||||
Metals & Mining (0.4%) | |||||||||||
Alcoa, Inc. | 40,582 | 640,790 | |||||||||
Allegheny Technologies, Inc. | 3,650 | 126,910 | |||||||||
Freeport-McMoRan, Inc. | 35,746 | 835,027 | |||||||||
Newmont Mining Corp. | 17,106 | 323,303 | |||||||||
Nucor Corp. | 10,899 | 534,596 | |||||||||
2,460,626 | |||||||||||
Paper & Forest Products (0.2%) | |||||||||||
International Paper Co. | 14,594 | 781,946 | |||||||||
MeadWestvaco Corp. | 5,712 | 253,556 | |||||||||
1,035,502 | |||||||||||
Telecommunication Services (2.2%) | |||||||||||
Diversified Telecommunication Services (2.2%) | |||||||||||
AT&T, Inc. | 178,702 | 6,002,600 | |||||||||
CenturyLink, Inc. | 19,570 | 774,581 | |||||||||
Frontier Communications Corp. | 34,471 | 229,921 | |||||||||
Level 3 Communications, Inc. (c) | 9,600 | 474,048 | |||||||||
Verizon Communications, Inc. | 142,906 | 6,685,143 | |||||||||
Windstream Holdings, Inc. | 20,691 | 170,494 | |||||||||
14,336,787 | |||||||||||
Utilities (3.2%) | |||||||||||
Electric Utilities (1.7%) | |||||||||||
American Electric Power Co., Inc. | 16,858 | 1,023,618 | |||||||||
Duke Energy Corp. | 24,400 | 2,038,376 | |||||||||
Edison International | 11,140 | 729,447 | |||||||||
Entergy Corp. | 6,196 | 542,026 | |||||||||
Exelon Corp. | 29,541 | 1,095,380 | |||||||||
FirstEnergy Corp. | 14,401 | 561,495 | |||||||||
NextEra Energy, Inc. | 15,053 | 1,599,983 | |||||||||
Northeast Utilities | 10,901 | 583,421 | |||||||||
Pepco Holdings, Inc. | 8,660 | 233,214 | |||||||||
Pinnacle West Capital Corp. | 3,809 | 260,193 | |||||||||
PPL Corp. | 22,820 | 829,051 | |||||||||
Southern Co. | 31,000 | 1,522,410 | |||||||||
11,018,614 |
See accompanying notes to financial statements.
56
SFT Advantus Index 500 Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Gas Utilities (0.1%) | |||||||||||
AGL Resources, Inc. | 4,021 | $ | 219,185 | ||||||||
ONEOK, Inc. | 7,075 | 352,264 | |||||||||
571,449 | |||||||||||
Independent Power Producers & Energy Traders (0.1%) | |||||||||||
NRG Energy, Inc. | 11,550 | 311,273 | |||||||||
The AES Corp. | 22,600 | 311,202 | |||||||||
622,475 | |||||||||||
Multi-Utilities (1.3%) | |||||||||||
Ameren Corp. | 8,270 | 381,495 | |||||||||
CenterPoint Energy, Inc. | 14,727 | 345,054 | |||||||||
CMS Energy Corp. | 9,386 | 326,163 | |||||||||
Consolidated Edison, Inc. | 10,104 | 666,965 | |||||||||
Dominion Resources, Inc. | 20,101 | 1,545,767 | |||||||||
DTE Energy Co. | 6,106 | 527,375 | |||||||||
Integrys Energy Group, Inc. | 2,710 | 210,973 | |||||||||
NiSource, Inc. | 10,778 | 457,203 | |||||||||
PG&E Corp. | 16,367 | 871,379 | |||||||||
Public Service Enterprise Group, Inc. | 17,354 | 718,629 | |||||||||
SCANA Corp. | 4,900 | 295,960 | |||||||||
Sempra Energy | 7,974 | 887,985 | |||||||||
TECO Energy, Inc. | 8,048 | 164,904 | |||||||||
Wisconsin Energy Corp. | 7,680 | 405,043 | |||||||||
Xcel Energy, Inc. | 17,334 | 622,637 | |||||||||
8,427,532 | |||||||||||
Total common stocks (cost: $225,363,809) | 628,459,378 | ||||||||||
Short-Term Securities (2.7%) | |||||||||||
Investment Companies (2.7%) | |||||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 17,363,344 | 17,363,344 | |||||||||
Total short-term securities (cost: $17,363,344) | 17,363,344 | ||||||||||
Total investments in securities (cost: $242,727,153) (e) | 645,822,722 | ||||||||||
Cash and other assets in excess of liabilities (0.1%) | 617,991 | ||||||||||
Total net assets (100.0%) | $ | 646,440,713 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Foreign security: The Fund held 1.8% of net assets in foreign securities at December 31, 2014.
(c) Non-income producing security.
(d) Fully or partially pledged as initial margin deposits on open futures contracts.
|
Holdings of Open Futures Contracts
On December 31, 2014, securities with an aggregate market value of $3,863,300 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
S&P 500® E-Mini Index Future | March 2015 | 162 | Long | $ | (25,765 | ) | |||||||||||||
162 | $ | (25,765 | ) |
(e) At December 31, 2014 the cost of securities for federal income tax purposes was $245,976,053. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 403,682,404 | |||||
Gross unrealized depreciation | (3,835,735 | ) | |||||
Net unrealized appreciation | $ | 399,846,669 |
See accompanying notes to financial statements.
57
SFT Advantus International Bond Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Principal(b) | Value(a) | ||||||||||
Long-Term Debt Securities (67.9%) | |||||||||||
Brazil (4.7%) | |||||||||||
Government (4.7%) | |||||||||||
Brazil Letras do Tesouro Nacional (BRL) 10.293%, 01/01/15 (c) | 229,000 | $ | 86,111 | ||||||||
Brazil Notas do Tesouro Nacional Serie B (BRL) | |||||||||||
6.000%, 05/15/15 | 1,945,000 | 1,857,027 | |||||||||
6.000%, 08/15/16 | 189,000 | 178,891 | |||||||||
6.000%, 08/15/18 | 140,000 | 131,378 | |||||||||
6.000%, 05/15/19 | 240,000 | 225,415 | |||||||||
6.000%, 08/15/20 | 40,000 | 37,519 | |||||||||
6.000%, 08/15/22 | 140,000 | 131,428 | |||||||||
6.000%, 05/15/23 | 120,000 | 112,799 | |||||||||
6.000%, 08/15/24 | 110,000 | 103,179 | |||||||||
6.000%, 05/15/45 | 2,000,000 | 1,846,449 | |||||||||
Brazil Notas do Tesouro Nacional Serie F (BRL) 10.000%, 01/01/17 | 3,300,000 | 1,182,497 | |||||||||
5,892,693 | |||||||||||
Canada (1.6%) | |||||||||||
Government (1.6%) | |||||||||||
Canadian Government Bond (CAD) | |||||||||||
1.000%, 02/01/15 | 2,010,000 | 1,735,290 | |||||||||
1.500%, 08/01/15 | 320,000 | 277,074 | |||||||||
2,012,364 | |||||||||||
Hungary (8.5%) | |||||||||||
Government (8.5%) | |||||||||||
Hungary Government Bond (HUF) | |||||||||||
4.000%, 04/25/18 | 77,420,000 | 306,800 | |||||||||
5.500%, 02/12/16 | 155,800,000 | 622,950 | |||||||||
5.500%, 12/22/16 | 628,270,000 | 2,570,989 | |||||||||
5.500%, 12/20/18 | 133,770,000 | 561,118 | |||||||||
5.500%, 06/24/25 | 21,610,000 | 95,454 | |||||||||
6.000%, 11/24/23 | 31,420,000 | 142,687 | |||||||||
6.500%, 06/24/19 | 205,110,000 | 898,055 | |||||||||
6.750%, 02/24/17 | 28,450,000 | 119,289 | |||||||||
6.750%, 11/24/17 | 197,620,000 | 845,987 | |||||||||
7.000%, 06/24/22 | 32,660,000 | 153,675 | |||||||||
7.500%, 11/12/20 | 15,140,000 | 70,861 | |||||||||
7.750%, 08/24/15 | 23,440,000 | 93,431 | |||||||||
8.000%, 02/12/15 | 13,800,000 | 53,197 | |||||||||
Hungary Government International Bond (EUR) | |||||||||||
3.500%, 07/18/16 | 30,000 | 37,708 | |||||||||
3.875%, 02/24/20 | 150,000 | 196,919 | |||||||||
4.375%, 07/04/17 | 175,000 | 226,942 | |||||||||
5.750%, 06/11/18 | 530,000 | 731,112 | |||||||||
Hungary Government International Bond (USD) | |||||||||||
4.125%, 02/19/18 | 400,000 | 414,832 | |||||||||
5.375%, 02/21/23 | 740,000 | 797,350 | |||||||||
6.250%, 01/29/20 | 735,000 | 825,956 | |||||||||
6.375%, 03/29/21 | 810,000 | 925,932 | |||||||||
10,691,244 |
Principal(b) | Value(a) | ||||||||||
Iceland (0.3%) | |||||||||||
Government (0.3%) | |||||||||||
Iceland Government International Bond (USD) 5.875%, 05/11/22 (d) | 340,000 | $ | 381,043 | ||||||||
Indonesia (3.2%) | |||||||||||
Government (3.2%) | |||||||||||
Indonesia Treasury Bond (IDR) | |||||||||||
7.875%, 04/15/19 | 2,221,000,000 | 180,451 | |||||||||
8.250%, 07/15/21 | 225,000,000 | 18,621 | |||||||||
9.500%, 07/15/23 | 18,680,000,000 | 1,641,759 | |||||||||
10.000%, 09/15/24 | 1,959,000,000 | 178,184 | |||||||||
10.250%, 07/15/22 | 2,155,000,000 | 195,751 | |||||||||
11.000%, 11/15/20 | 6,217,000,000 | 572,632 | |||||||||
12.800%, 06/15/21 | 8,576,000,000 | 858,223 | |||||||||
12.900%, 06/15/22 | 3,361,000,000 | 344,146 | |||||||||
3,989,767 | |||||||||||
Ireland (4.8%) | |||||||||||
Government (4.8%) | |||||||||||
Ireland Government Bond (EUR) | |||||||||||
4.500%, 04/18/20 | 256,000 | 373,212 | |||||||||
5.000%, 10/18/20 | 613,300 | 928,545 | |||||||||
5.400%, 03/13/25 | 2,689,100 | 4,483,502 | |||||||||
5.900%, 10/18/19 | 149,000 | 226,654 | |||||||||
6,011,913 | |||||||||||
Lithuania (1.9%) | |||||||||||
Government (1.9%) | |||||||||||
Lithuania Government International Bond (USD) | |||||||||||
6.125%, 03/09/21 (d) | 100,000 | 116,313 | |||||||||
6.750%, 01/15/15 (d) | 1,130,000 | 1,131,469 | |||||||||
7.375%, 02/11/20 (d) | 900,000 | 1,085,517 | |||||||||
2,333,299 | |||||||||||
Malaysia (1.4%) | |||||||||||
Government (1.4%) | |||||||||||
Malaysia Government Bond (MYR) | |||||||||||
3.197%, 10/15/15 | 690,000 | 196,746 | |||||||||
3.741%, 02/27/15 | 1,355,000 | 387,723 | |||||||||
3.835%, 08/12/15 | 1,525,000 | 437,158 | |||||||||
4.720%, 09/30/15 | 2,485,000 | 716,510 | |||||||||
1,738,137 | |||||||||||
Mexico (7.2%) | |||||||||||
Government (7.2%) | |||||||||||
Mexican Bonos (MXN) | |||||||||||
6.000%, 06/18/15 | 45,346,000 | 3,117,249 | |||||||||
6.250%, 06/16/16 | 17,329,000 | 1,219,607 | |||||||||
7.250%, 12/15/16 | 7,847,000 | 567,857 | |||||||||
7.750%, 12/14/17 | 5,000,000 | 370,465 | |||||||||
8.000%, 12/17/15 | 43,893,000 | 3,109,437 |
See accompanying notes to financial statements.
58
SFT Advantus International Bond Fund
Investments in Securities – continued
Principal(b) | Value(a) | ||||||||||
Mexican Udibonos (MXN) | |||||||||||
2.500%, 12/10/20 | 1,454,622 | $ | 101,044 | ||||||||
3.500%, 12/14/17 | 2,635,184 | 190,802 | |||||||||
4.000%, 06/13/19 | 1,818,277 | 134,617 | |||||||||
5.000%, 06/16/16 | 2,661,536 | 191,804 | |||||||||
Mexico Cetes (MXN) 3.086%, 05/28/15 (c) | 618,800 | 41,468 | |||||||||
9,044,350 | |||||||||||
Philippines (0.8%) | |||||||||||
Government (0.8%) | |||||||||||
Philippine Government Bond (PHP) | |||||||||||
1.625%, 04/25/16 | 40,800,000 | 902,450 | |||||||||
7.000%, 01/27/16 | 1,240,000 | 29,005 | |||||||||
9.125%, 09/04/16 | 730,000 | 18,113 | |||||||||
949,568 | |||||||||||
Poland (7.1%) | |||||||||||
Government (7.1%) | |||||||||||
Poland Government Bond (PLN) | |||||||||||
2.690%, 01/25/17 (e) | 2,011,000 | 566,022 | |||||||||
2.690%, 01/25/21 (e) | 2,040,000 | 565,405 | |||||||||
2.964%, 01/25/16 (c) | 4,340,000 | 1,199,211 | |||||||||
2.986%, 07/25/15 (c) | 911,000 | 254,102 | |||||||||
4.750%, 10/25/16 | 1,680,000 | 497,505 | |||||||||
5.000%, 04/25/16 | 1,650,000 | 483,480 | |||||||||
5.500%, 04/25/15 | 1,336,000 | 380,591 | |||||||||
5.750%, 09/23/22 | 5,900,000 | 2,057,193 | |||||||||
6.250%, 10/24/15 | 2,925,000 | 852,384 | |||||||||
Poland Government International Bond (USD) 6.375%, 07/15/19 | 1,700,000 | 1,989,000 | |||||||||
8,844,893 | |||||||||||
Portugal (2.6%) | |||||||||||
Government (2.6%) | |||||||||||
Portugal Government International Bond (USD) 5.125%, 10/15/24 (d) | 1,250,000 | 1,313,148 | |||||||||
Portugal Obrigacoes do Tesouro OT (EUR) | |||||||||||
3.875%, 02/15/30 (d) | 1,490,000 | 1,885,951 | |||||||||
4.950%, 10/25/23 | 10,600 | 15,173 | |||||||||
5.650%, 02/15/24 | 26,200 | 39,218 | |||||||||
3,253,490 | |||||||||||
Russia (1.9%) | |||||||||||
Government (1.9%) | |||||||||||
Russian Foreign Bond (USD) 7.500%, 03/31/30 (d) (f) | 2,331,800 | 2,418,077 | |||||||||
Serbia (0.8%) | |||||||||||
Government (0.8%) | |||||||||||
Republic of Serbia (USD) | |||||||||||
4.875%, 02/25/20 (d) | 360,000 | 359,460 | |||||||||
5.250%, 11/21/17 (d) | 200,000 | 205,400 | |||||||||
7.250%, 09/28/21 (d) | 410,000 | 459,233 | |||||||||
1,024,093 |
Principal(b) | Value(a) | ||||||||||
Slovenia (0.7%) | |||||||||||
Government (0.7%) | |||||||||||
Slovenia Government International Bond (USD) | |||||||||||
5.500%, 10/26/22 (d) | 530,000 | $ | 587,638 | ||||||||
5.850%, 05/10/23 (d) | 200,000 | 226,130 | |||||||||
813,768 | |||||||||||
South Korea (14.5%) | |||||||||||
Financial (10.5%) | |||||||||||
Korea Monetary Stabilization Bond (KRW) | |||||||||||
2.470%, 04/02/15 | 1,059,770,000 | 965,108 | |||||||||
2.740%, 02/02/15 | 376,480,000 | 342,689 | |||||||||
2.760%, 06/02/15 | 346,400,000 | 316,020 | |||||||||
2.780%, 02/02/16 | 273,450,000 | 250,576 | |||||||||
2.790%, 06/02/16 | 4,470,700,000 | 4,106,361 | |||||||||
2.800%, 08/02/15 | 400,160,000 | 365,545 | |||||||||
2.800%, 04/02/16 | 745,850,000 | 684,430 | |||||||||
2.810%, 10/02/15 | 55,000,000 | 50,308 | |||||||||
2.900%, 12/02/15 | 6,685,600,000 | 6,126,653 | |||||||||
13,207,690 | |||||||||||
Government (4.0%) | |||||||||||
Korea Treasury Bond (KRW) | |||||||||||
2.750%, 12/10/15 | 754,400,000 | 690,559 | |||||||||
2.750%, 06/10/16 | 2,257,800,000 | 2,072,608 | |||||||||
3.000%, 12/10/16 | 2,223,800,000 | 2,057,189 | |||||||||
3.250%, 06/10/15 | 175,600,000 | 160,553 | |||||||||
4,980,909 | |||||||||||
18,188,599 | |||||||||||
Sri Lanka (1.4%) | |||||||||||
Government (1.4%) | |||||||||||
Sri Lanka Government Bond (LKR) | |||||||||||
6.500%, 07/15/15 | 4,310,000 | 32,883 | |||||||||
7.500%, 08/15/18 | 2,880,000 | 22,133 | |||||||||
8.000%, 11/15/18 | 100,000 | 782 | |||||||||
8.250%, 03/01/17 | 80,000 | 623 | |||||||||
8.500%, 11/01/15 | 40,000 | 310 | |||||||||
8.500%, 06/01/18 | 10,000 | 79 | |||||||||
9.000%, 05/01/21 | 20,000 | 165 | |||||||||
11.000%, 08/01/15 | 82,800,000 | 649,608 | |||||||||
11.000%, 09/01/15 | 120,750,000 | 956,673 | |||||||||
10.600%, 09/15/19 (g) | 2,880,000 | 24,412 | |||||||||
1,687,668 | |||||||||||
Sweden (1.4%) | |||||||||||
Government (1.4%) | |||||||||||
Sweden Government Bond (SEK) 4.500%, 08/12/15 | 13,580,000 | 1,780,592 | |||||||||
Ukraine (3.1%) | |||||||||||
Government (3.1%) | |||||||||||
Financing of Infrastructural Projects State Enterprise (USD) 7.400%, 04/20/18 (d) | 200,000 | 120,000 | |||||||||
Ukraine Government International Bond (EUR) 4.950%, 10/13/15 (d) | 100,000 | 81,678 |
See accompanying notes to financial statements.
59
SFT Advantus International Bond Fund
Investments in Securities – continued
Principal(b) | Value(a) | ||||||||||
Ukraine Government International Bond (USD) | |||||||||||
7.500%, 04/17/23 (d) | 2,600,000 | $ | 1,534,000 | ||||||||
7.750%, 09/23/20 (d) | 100,000 | 60,000 | |||||||||
7.800%, 11/28/22 (d) | 1,600,000 | 976,000 | |||||||||
9.250%, 07/24/17 (d) | 1,840,000 | 1,122,400 | |||||||||
3,894,078 | |||||||||||
Total long-term debt securities (cost: $88,351,763) | 84,949,636 | ||||||||||
Short-Term Securities (24.6%) | |||||||||||
Canada (2.5%) | |||||||||||
Canadian Treasury Bill (CAD) | |||||||||||
0.863%, 03/12/15 (c) | 1,010,000 | 870,497 | |||||||||
0.868%, 02/12/15 (c) | 2,325,000 | 2,005,291 | |||||||||
0.901%, 04/23/15 (c) | 270,000 | 232,448 | |||||||||
3,108,236 | |||||||||||
Malaysia (3.4%) | |||||||||||
Bank Negara Malaysia Monetary Note (MYR) | |||||||||||
2.870%, 02/17/15 (c) | 240,000 | 68,351 | |||||||||
2.876%, 04/16/15 (c) | 280,000 | 79,314 | |||||||||
2.886%, 03/05/15 (c) | 80,000 | 22,750 | |||||||||
2.909%, 03/24/15 (c) | 10,000 | 2,839 | |||||||||
2.910%, 04/16/15 (c) | 10,000 | 2,833 | |||||||||
2.910%, 03/12/15 (c) | 10,000 | 2,842 | |||||||||
2.924%, 03/05/15 (c) | 140,000 | 39,812 | |||||||||
2.930%, 03/12/15 (c) | 300,000 | 85,257 | |||||||||
2.940%, 01/08/15 (c) | 275,000 | 78,607 | |||||||||
3.000%, 05/05/15 (c) | 520,000 | 147,004 | |||||||||
3.015%, 03/05/15 (c) | 190,000 | 54,031 | |||||||||
3.040%, 01/22/15 (c) | 760,000 | 216,962 | |||||||||
3.040%, 03/03/15 (c) | 1,460,000 | 415,262 | |||||||||
3.050%, 08/04/15 (c) | 500,000 | 140,098 | |||||||||
3.070%, 05/19/15 (c) | 1,010,000 | 285,206 | |||||||||
3.073%, 04/16/15 (c) | 70,000 | 19,828 | |||||||||
3.076%, 04/28/15 (c) | 150,000 | 42,442 | |||||||||
3.083%, 07/16/15 (c) | 750,000 | 210,610 | |||||||||
3.117%, 06/03/15 (c) | 120,000 | 33,838 | |||||||||
3.120%, 05/19/15 (c) | 310,000 | 87,539 | |||||||||
3.120%, 06/16/15 (c) | 260,000 | 73,223 | |||||||||
3.122%, 06/30/15 (c) | 140,000 | 39,375 | |||||||||
3.191%, 04/23/15 (c) | 110,000 | 31,138 | |||||||||
3.197%, 09/22/15 (c) | 40,000 | 11,158 | |||||||||
3.200%, 08/18/15 (c) | 420,000 | 117,562 | |||||||||
3.200%, 10/01/15 (c) | 1,270,000 | 353,944 | |||||||||
3.202%, 04/07/15 (c) | 30,000 | 8,505 | |||||||||
3.228%, 08/11/15 (c) | 1,135,000 | 317,915 | |||||||||
3.230%, 05/19/15 (c) | 110,000 | 31,062 | |||||||||
3.270%, 03/24/15 (c) | 150,000 | 42,581 | |||||||||
3.280%, 10/27/15 (c) | 50,000 | 13,899 | |||||||||
3.280%, 11/03/15 (c) | 110,000 | 30,556 | |||||||||
3.292%, 01/20/15 (c) | 1,030,000 | 294,095 | |||||||||
3.340%, 06/30/15 (c) | 90,000 | 25,312 | |||||||||
3.341%, 06/30/15 (c) | 50,000 | 14,062 | |||||||||
3.343%, 03/05/15 (c) | 200,000 | 56,875 | |||||||||
3.350%, 01/08/15 (c) | 360,000 | 102,903 | |||||||||
3.350%, 01/22/15 (c) | 260,000 | 74,224 | |||||||||
3.351%, 05/28/15 (c) | 720,000 | 203,141 | |||||||||
3.351%, 06/04/15 (c) | 210,000 | 59,210 | |||||||||
3.366%, 02/10/15 (c) | 180,000 | 51,296 | |||||||||
3.370%, 09/08/15 (c) | 230,000 | 64,246 |
Principal(b) | Value(a) | ||||||||||
3.380%, 04/23/15 (c) | 360,000 | $ | 101,908 | ||||||||
3.400%, 02/17/15 (c) | 370,000 | 105,374 | |||||||||
3.400%, 08/11/15 (c) | 170,000 | 47,617 | |||||||||
4,306,606 | |||||||||||
Mexico (3.2%) | |||||||||||
Mexican Cetes (MXN) | |||||||||||
2.976%, 03/19/15 (c) | 6,563,800 | 442,476 | |||||||||
3.019%, 06/25/15 (c) (g) | 4,269,300 | 285,272 | |||||||||
3.059%, 04/16/15 (c) | 10,606,000 | 713,305 | |||||||||
3.067%, 06/11/15 (c) | 13,222,700 | 885,048 | |||||||||
3.173%, 09/17/15 (c) | 5,680,400 | 376,905 | |||||||||
3.215%, 10/01/15 (c) | 6,230,100 | 412,834 | |||||||||
3.285%, 11/12/15 (c) | 1,628,800 | 107,498 | |||||||||
3.305%, 12/10/15 (c) | 3,362,700 | 221,020 | |||||||||
3.597%, 04/01/15 (c) | 2,401,500 | 161,716 | |||||||||
3.711%, 04/01/15 (c) | 5,611,000 | 377,843 | |||||||||
3,983,917 | |||||||||||
Philippines (0.3%) | |||||||||||
Philippine Treasury Bill (PHP) | |||||||||||
1.213%, 04/08/15 (c) | 530,000 | 11,763 | |||||||||
1.294%, 08/05/15 (c) | 30,000 | 660 | |||||||||
1.374%, 11/04/15 (c) | 1,790,000 | 39,164 | |||||||||
1.377%, 05/06/15 (c) | 1,550,000 | 34,373 | |||||||||
1.421%, 06/03/15 (c) | 2,350,000 | 51,981 | |||||||||
1.447%, 07/08/15 (c) | 50,000 | 1,104 | |||||||||
1.455%, 12/02/15 (c) | 4,450,000 | 97,301 | |||||||||
1.513%, 09/02/15 (c) | 640,000 | 14,058 | |||||||||
1.514%, 10/07/15 (c) | 5,750,000 | 126,208 | |||||||||
376,612 | |||||||||||
Singapore (1.7%) | |||||||||||
Monetary Authority of Singapore (SGD) | |||||||||||
0.339%, 01/30/15 (c) | 2,100,000 | 1,583,972 | |||||||||
0.431%, 02/13/15 (c) | 650,000 | 490,151 | |||||||||
0.449%, 02/23/15 (c) | 120,000 | 90,473 | |||||||||
2,164,596 | |||||||||||
South Korea (0.4%) | |||||||||||
Korea Monetary Stabilization Bond (KRW) 2.660%, 06/09/15 | 476,250,000 | 434,321 | |||||||||
United States (4.0%) | |||||||||||
Federal Home Loan Bank (USD) 0.000%, 01/02/15 | 5,000,000 | 5,000,000 | |||||||||
Investment Companies (9.1%) | |||||||||||
United States (9.1%) | |||||||||||
Dreyfus Treasury Cash Management Fund (USD), current rate 0.010% | 11,402,425 | 11,402,425 | |||||||||
Total short-term securities (cost: $31,383,727) | 30,776,713 | ||||||||||
Total investments in securities (cost: $119,735,490) (h) | 115,726,349 | ||||||||||
Cash and other assets in excess of liabilities (7.5%) | 9,385,624 | ||||||||||
Total net assets (100.0%) | $ | 125,111,973 |
See accompanying notes to financial statements.
60
SFT Advantus International Bond Fund
Investments in Securities – continued
Foreign Forward Currency Contracts
On December 31, 2014, the Fund had entered into forward foreign currency contracts that obligate the Fund to deliver currencies at specified future dates. Unrealized appreciation and depreciation on these contracts is included in the accompanying financial statements. The terms of the open contracts were as follows:
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
01/08/15 | 153,727 | USD | 515,800 | MYR | $ | (6,242 | ) | DBK | |||||||||||||||||||
01/08/15 | 10,873,000 | JPY | 104,839 | USD | 14,150 | GSC | |||||||||||||||||||||
01/08/15 | 99,260 | USD | 332,600 | MYR | (4,158 | ) | JPM | ||||||||||||||||||||
01/09/15 | 53,458 | USD | 179,000 | MYR | (2,280 | ) | JPM | ||||||||||||||||||||
01/09/15 | 135,373 | USD | 83,180,000 | CLP | 1,643 | MSC | |||||||||||||||||||||
01/12/15 | 305,978 | USD | 1,023,987 | MYR | (13,277 | ) | HSB | ||||||||||||||||||||
01/12/15 | 16,144 | USD | 54,000 | MYR | (708 | ) | JPM | ||||||||||||||||||||
01/12/15 | 184,933 | USD | 102,000,000 | CLP | (16,965 | ) | MSC | ||||||||||||||||||||
01/13/15 | 9,980,000 | JPY | 95,420 | USD | 12,176 | CIT | |||||||||||||||||||||
01/13/15 | 3,206,080 | EUR | 4,357,095 | USD | 477,254 | SCB | |||||||||||||||||||||
01/14/15 | 204,914 | EUR | 279,790 | USD | 31,810 | CIT | |||||||||||||||||||||
01/14/15 | 94,945 | USD | 76,000 | EUR | (2,973 | ) | CIT | ||||||||||||||||||||
01/14/15 | 482,000 | EUR | 658,051 | USD | 74,752 | DBK | |||||||||||||||||||||
01/14/15 | 364,573 | USD | 298,000 | EUR | (3,945 | ) | DBK | ||||||||||||||||||||
01/14/15 | 166,066 | USD | 102,330,000 | CLP | 2,414 | DBK | |||||||||||||||||||||
01/14/15 | 62,389 | USD | 3,868,000 | INR | (1,226 | ) | JPM | ||||||||||||||||||||
01/14/15 | 141,863 | EUR | 193,927 | USD | 22,249 | JPM | |||||||||||||||||||||
01/14/15 | 29,920,000 | JPY | 286,371 | USD | 36,802 | SCB | |||||||||||||||||||||
01/15/15 | 33,230,000 | JPY | 320,432 | USD | 43,251 | BCB | |||||||||||||||||||||
01/15/15 | 155,299 | USD | 96,006,000 | CLP | 2,753 | DBK | |||||||||||||||||||||
01/15/15 | 256,436 | USD | 15,917,000 | INR | (4,803 | ) | DBK | ||||||||||||||||||||
01/15/15 | 35,690,000 | JPY | 343,173 | USD | 45,473 | HSB | |||||||||||||||||||||
01/15/15 | 21,600,000 | JPY | 208,264 | USD | 28,092 | JPM | |||||||||||||||||||||
01/16/15 | 459,600 | EUR | 628,825 | USD | 72,622 | DBK | |||||||||||||||||||||
01/16/15 | 10,020,000 | JPY | 96,936 | USD | 13,356 | DBK | |||||||||||||||||||||
01/16/15 | 168,664 | USD | 103,914,000 | CLP | 2,391 | DBK | |||||||||||||||||||||
01/16/15 | 32,240 | USD | 107,000 | MYR | (1,664 | ) | JPM | ||||||||||||||||||||
01/16/15 | 45,710,000 | JPY | 442,401 | USD | 61,118 | SCB | |||||||||||||||||||||
01/20/15 | 122,191 | USD | 76,119,000 | CLP | 3,062 | CIT | |||||||||||||||||||||
01/20/15 | 399,450 | USD | 24,767,000 | INR | (8,315 | ) | DBK | ||||||||||||||||||||
01/20/15 | 111,014 | USD | 6,930,000 | INR | (1,572 | ) | DBK | ||||||||||||||||||||
01/20/15 | 62,214 | USD | 3,868,000 | INR | (1,128 | ) | JPM | ||||||||||||||||||||
01/21/15 | 190,000 | EUR | 258,970 | USD | 29,022 | BCB | |||||||||||||||||||||
01/21/15 | 230,589 | USD | 14,426,000 | INR | (2,813 | ) | JPM | ||||||||||||||||||||
01/22/15 | 81,348 | USD | 5,058,000 | INR | (1,503 | ) | DBK | ||||||||||||||||||||
01/22/15 | 154,311 | USD | 9,656,000 | INR | (1,881 | ) | JPM | ||||||||||||||||||||
01/22/15 | 204,914 | EUR | 278,453 | USD | 30,452 | JPM | |||||||||||||||||||||
01/23/15 | 309,467 | USD | 171,290,000 | CLP | (27,691 | ) | DBK | ||||||||||||||||||||
01/26/15 | 430,378 | USD | 242,970,000 | CLP | (30,802 | ) | DBK | ||||||||||||||||||||
01/26/15 | 233,777 | USD | 290,000 | SGD | (15,026 | ) | JPM | ||||||||||||||||||||
01/27/15 | 362,540 | EUR | 496,094 | USD | 57,302 | BCB | |||||||||||||||||||||
01/27/15 | 122,171 | USD | 7,654,000 | INR | (1,471 | ) | DBK | ||||||||||||||||||||
01/27/15 | 52,800,000 | JPY | 510,762 | USD | 70,296 | GSC | |||||||||||||||||||||
01/28/15 | 50,203,538 | JPY | 491,709 | USD | 72,900 | DBK | |||||||||||||||||||||
01/28/15 | 64,982,551 | JPY | 634,992 | USD | 92,893 | HSB | |||||||||||||||||||||
01/29/15 | 310,400 | EUR | 424,371 | USD | 48,678 | CIT | |||||||||||||||||||||
01/30/15 | 300,000 | EUR | 410,232 | USD | 47,123 | DBK | |||||||||||||||||||||
01/30/15 | 302,000 | EUR | 412,155 | USD | 46,624 | DBK | |||||||||||||||||||||
01/30/15 | 950,000 | EUR | 1,298,460 | USD | 148,614 | DBK | |||||||||||||||||||||
01/30/15 | 2,140,674 | USD | 1,552,000 | EUR | (262,188 | ) | DBK | ||||||||||||||||||||
01/30/15 | 85,726 | USD | 5,332,333 | INR | (1,690 | ) | DBK | ||||||||||||||||||||
01/30/15 | 95,983 | USD | 5,964,833 | INR | (1,979 | ) | DBK | ||||||||||||||||||||
01/30/15 | 122,837 | USD | 7,654,000 | INR | (2,213 | ) | DBK | ||||||||||||||||||||
01/30/15 | 138,890 | USD | 83,673,000 | CLP | (1,338 | ) | DBK | ||||||||||||||||||||
01/30/15 | 163,563 | USD | 10,174,000 | INR | (3,224 | ) | HSB | ||||||||||||||||||||
01/30/15 | 159,620 | USD | 9,920,000 | INR | (3,284 | ) | HSB | ||||||||||||||||||||
01/30/15 | 1,172,521 | USD | 1,454,500 | SGD | (75,468 | ) | JPM | ||||||||||||||||||||
01/30/15 | 938,515 | USD | 1,165,870 | SGD | (59,161 | ) | MSC | ||||||||||||||||||||
02/02/15 | 95,848 | USD | 5,964,833 | INR | (1,903 | ) | DBK |
See accompanying notes to financial statements.
61
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
02/02/15 | 134,293 | USD | 80,455,000 | CLP | $ | (2,069 | ) | DBK | |||||||||||||||||||
02/02/15 | 60,070 | USD | 36,150,000 | CLP | (659 | ) | DBK | ||||||||||||||||||||
02/03/15 | 820,000 | EUR | 1,111,469 | USD | 118,929 | DBK | |||||||||||||||||||||
02/03/15 | 212,610 | USD | 13,249,000 | INR | (3,984 | ) | DBK | ||||||||||||||||||||
02/03/15 | 114,589 | USD | 68,662,000 | CLP | (1,758 | ) | DBK | ||||||||||||||||||||
02/03/15 | 87,607 | USD | 5,460,000 | INR | (1,631 | ) | HSB | ||||||||||||||||||||
02/04/15 | 160,939 | USD | 91,220,000 | CLP | (11,052 | ) | DBK | ||||||||||||||||||||
02/04/15 | 383,407 | USD | 23,887,000 | INR | (7,348 | ) | JPM | ||||||||||||||||||||
02/04/15 | 143,030 | USD | 484,000 | MYR | (4,927 | ) | JPM | ||||||||||||||||||||
02/09/15 | 35,320 | USD | 2,220,000 | INR | (406 | ) | CIT | ||||||||||||||||||||
02/09/15 | 35,336 | USD | 2,199,000 | INR | (752 | ) | CIT | ||||||||||||||||||||
02/09/15 | 210,000 | EUR | 284,067 | USD | 29,867 | DBK | |||||||||||||||||||||
02/09/15 | 223,101 | USD | 13,884,000 | INR | (4,746 | ) | DBK | ||||||||||||||||||||
02/09/15 | 51,000 | EUR | 71,081 | USD | 9,347 | GSC | |||||||||||||||||||||
02/09/15 | 257,748 | USD | 16,044,000 | INR | (5,422 | ) | HSB | ||||||||||||||||||||
02/09/15 | 9,297 | USD | 30,000 | MYR | (740 | ) | HSB | ||||||||||||||||||||
02/09/15 | 262,440 | USD | 327,000 | SGD | (15,841 | ) | HSB | ||||||||||||||||||||
02/10/15 | 341,000 | EUR | 463,913 | USD | 51,139 | BCB | |||||||||||||||||||||
02/10/15 | 88,939 | USD | 51,700,000 | CLP | (4,037 | ) | BCB | ||||||||||||||||||||
02/10/15 | 454,000 | EUR | 617,381 | USD | 67,822 | CIT | |||||||||||||||||||||
02/10/15 | 14,673,000 | JPY | 144,522 | USD | 22,102 | CIT | |||||||||||||||||||||
02/10/15 | 76,734 | EUR | 328,000 | PLN | (694 | ) | DBK | ||||||||||||||||||||
02/10/15 | 158,000 | EUR | 214,897 | USD | 23,641 | HSB | |||||||||||||||||||||
02/11/15 | 389,000 | EUR | 528,923 | USD | 58,042 | BCB | |||||||||||||||||||||
02/11/15 | 76,689 | EUR | 328,000 | PLN | (644 | ) | BCB | ||||||||||||||||||||
02/12/15 | 796,016 | USD | 996,930 | SGD | (44,226 | ) | BCB | ||||||||||||||||||||
02/12/15 | 519,139 | USD | 651,000 | SGD | (28,216 | ) | DBK | ||||||||||||||||||||
02/12/15 | 84,605 | USD | 92,000,000 | KRW | (975 | ) | DBK | ||||||||||||||||||||
02/12/15 | 40,610 | USD | 2,528,000 | INR | (876 | ) | DBK | ||||||||||||||||||||
02/12/15 | 14,652,000 | JPY | 143,504 | USD | 21,257 | GSC | |||||||||||||||||||||
02/12/15 | 43,849 | USD | 2,730,000 | INR | (940 | ) | HSB | ||||||||||||||||||||
02/12/15 | 205,837 | USD | 118,480,000 | CLP | (11,307 | ) | MSC | ||||||||||||||||||||
02/13/15 | 566,043 | USD | 1,927,206 | MYR | (16,563 | ) | DBK | ||||||||||||||||||||
02/13/15 | 110,470 | USD | 6,890,000 | INR | (2,198 | ) | HSB | ||||||||||||||||||||
02/13/15 | 160,000 | EUR | 218,915 | USD | 25,234 | SCB | |||||||||||||||||||||
02/17/15 | 205,136 | USD | 256,000 | SGD | (12,093 | ) | BCB | ||||||||||||||||||||
02/17/15 | 1,398,497 | USD | 19,151,013 | MXN | (102,626 | ) | CIT | ||||||||||||||||||||
02/17/15 | 307,312 | USD | 175,690,000 | CLP | (18,985 | ) | CIT | ||||||||||||||||||||
02/17/15 | 76,766 | USD | 44,110,000 | CLP | (4,377 | ) | DBK | ||||||||||||||||||||
02/17/15 | 77,031 | EUR | 328,000 | PLN | (1,086 | ) | DBK | ||||||||||||||||||||
02/17/15 | 153,689 | USD | 192,000 | SGD | (8,906 | ) | HSB | ||||||||||||||||||||
02/18/15 | 226,679 | USD | 132,460,000 | CLP | (9,319 | ) | DBK | ||||||||||||||||||||
02/18/15 | 6,828,270 | JPY | 67,231 | USD | 10,257 | GSC | |||||||||||||||||||||
02/18/15 | 151,899 | USD | 192,000 | SGD | (7,118 | ) | HSB | ||||||||||||||||||||
02/18/15 | 8,030,000 | JPY | 79,080 | USD | 12,079 | JPM | |||||||||||||||||||||
02/19/15 | 144,431 | USD | 485,000 | MYR | (6,221 | ) | HSB | ||||||||||||||||||||
02/19/15 | 412,000 | EUR | 565,023 | USD | 66,272 | JPM | |||||||||||||||||||||
02/20/15 | 41,371 | USD | 24,140,000 | CLP | (1,766 | ) | JPM | ||||||||||||||||||||
02/23/15 | 154,145 | USD | 192,500 | SGD | (8,993 | ) | DBK | ||||||||||||||||||||
02/23/15 | 100,753 | USD | 6,313,000 | INR | (1,750 | ) | DBK | ||||||||||||||||||||
02/23/15 | 210,000 | EUR | 288,992 | USD | 34,767 | GSC | |||||||||||||||||||||
02/23/15 | 1,139,887 | USD | 1,228,000,000 | KRW | (23,799 | ) | HSB | ||||||||||||||||||||
02/23/15 | 101,978 | USD | 58,250,000 | CLP | (6,438 | ) | MSC | ||||||||||||||||||||
02/24/15 | 19,720,000 | JPY | 193,292 | USD | 28,744 | HSB | |||||||||||||||||||||
02/24/15 | 143,658 | USD | 82,000,000 | CLP | (9,177 | ) | JPM | ||||||||||||||||||||
02/25/15 | 54,300 | EUR | 74,635 | USD | 8,899 | DBK | |||||||||||||||||||||
02/25/15 | 19,700,000 | JPY | 192,268 | USD | 27,886 | JPM | |||||||||||||||||||||
02/25/15 | 173,541 | USD | 99,500,000 | CLP | (10,375 | ) | MSC | ||||||||||||||||||||
02/26/15 | 54,600,000 | JPY | 533,897 | USD | 78,295 | BCB | |||||||||||||||||||||
02/26/15 | 192,495 | EUR | 264,228 | USD | 31,190 | BCB | |||||||||||||||||||||
02/26/15 | 596,604 | EUR | 819,776 | USD | 97,515 | BCB | |||||||||||||||||||||
02/26/15 | 143,680 | USD | 82,530,000 | CLP | (8,355 | ) | DBK | ||||||||||||||||||||
02/26/15 | 52,556,000 | JPY | 514,357 | USD | 75,812 | SCB | |||||||||||||||||||||
02/26/15 | 743,770 | EUR | 1,021,419 | USD | 120,996 | SCB | |||||||||||||||||||||
02/27/15 | 132,617 | EUR | 181,327 | USD | 20,777 | BOA |
See accompanying notes to financial statements.
62
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
02/27/15 | 1,865,214 | EUR | 2,556,649 | USD | $ | 298,567 | DBK | ||||||||||||||||||||
02/27/15 | 1,903,503 | USD | 1,380,000 | EUR | (232,835 | ) | DBK | ||||||||||||||||||||
02/27/15 | 651,167 | USD | 815,000 | SGD | (36,645 | ) | DBK | ||||||||||||||||||||
03/03/15 | 162,038 | USD | 93,885,000 | CLP | (8,167 | ) | DBK | ||||||||||||||||||||
03/03/15 | 86,746 | USD | 5,460,000 | INR | (1,258 | ) | HSB | ||||||||||||||||||||
03/03/15 | 20,800,000 | JPY | 204,242 | USD | 30,672 | JPM | |||||||||||||||||||||
03/03/15 | 23,200,000 | JPY | 227,862 | USD | 34,265 | JPM | |||||||||||||||||||||
03/04/15 | 20,800,000 | JPY | 203,822 | USD | 30,250 | HSB | |||||||||||||||||||||
03/05/15 | 13,000 | EUR | 17,922 | USD | 2,184 | DBK | |||||||||||||||||||||
03/09/15 | 157,427 | EUR | 216,187 | USD | 25,587 | BCB | |||||||||||||||||||||
03/09/15 | 57,903,900 | JPY | 566,250 | USD | 83,029 | BCB | |||||||||||||||||||||
03/09/15 | 259,873 | EUR | 357,130 | USD | 42,496 | BCB | |||||||||||||||||||||
03/09/15 | 2,234,628 | USD | 1,620,000 | EUR | (273,255 | ) | DBK | ||||||||||||||||||||
03/09/15 | 1,620,000 | EUR | 2,224,179 | USD | 262,806 | DBK | |||||||||||||||||||||
03/09/15 | 41,294 | USD | 2,586,000 | INR | (857 | ) | DBK | ||||||||||||||||||||
03/09/15 | 104,000 | EUR | 142,975 | USD | 17,060 | HSB | |||||||||||||||||||||
03/10/15 | 730,071 | EUR | 1,010,437 | USD | 126,514 | CIT | |||||||||||||||||||||
03/10/15 | 555,385 | USD | 7,354,410 | MXN | (58,416 | ) | HSB | ||||||||||||||||||||
03/10/15 | 294,000 | EUR | 407,183 | USD | 51,227 | MSC | |||||||||||||||||||||
03/13/15 | 167,848 | USD | 98,760,000 | CLP | (6,123 | ) | DBK | ||||||||||||||||||||
03/13/15 | 152,141 | USD | 9,556,000 | INR | (2,846 | ) | JPM | ||||||||||||||||||||
03/16/15 | 437,735 | USD | 553,000 | SGD | (20,835 | ) | HSB | ||||||||||||||||||||
03/16/15 | 27,000 | EUR | 37,417 | USD | 4,726 | JPM | |||||||||||||||||||||
03/17/15 | 80,099 | EUR | 111,698 | USD | 14,713 | BCB | |||||||||||||||||||||
03/17/15 | 55,874 | EUR | 77,961 | USD | 10,308 | CIT | |||||||||||||||||||||
03/19/15 | 77,666,000 | JPY | 765,077 | USD | 116,863 | CIT | |||||||||||||||||||||
03/19/15 | 29,650,000 | JPY | 293,652 | USD | 46,188 | MSC | |||||||||||||||||||||
03/20/15 | 82,612 | USD | 48,700,000 | CLP | (2,908 | ) | JPM | ||||||||||||||||||||
03/23/15 | 45,378 | EUR | 63,189 | USD | 8,242 | BCB | |||||||||||||||||||||
03/24/15 | 28,159,000 | JPY | 275,755 | USD | 40,722 | DBK | |||||||||||||||||||||
03/25/15 | 28,760,000 | JPY | 281,547 | USD | 41,494 | BCB | |||||||||||||||||||||
03/25/15 | 13,332,130 | JPY | 130,656 | USD | 19,376 | BCB | |||||||||||||||||||||
03/26/15 | 142,000 | EUR | 195,555 | USD | 23,606 | DBK | |||||||||||||||||||||
03/31/15 | 22,832 | EUR | 31,428 | USD | 3,780 | DBK | |||||||||||||||||||||
03/31/15 | 47,650 | USD | 160,000 | MYR | (2,204 | ) | HSB | ||||||||||||||||||||
04/02/15 | 122,716 | EUR | 169,158 | USD | 20,551 | BCB | |||||||||||||||||||||
04/07/15 | 78,175 | EUR | 107,925 | USD | 13,251 | DBK | |||||||||||||||||||||
04/07/15 | 326,000 | EUR | 449,694 | USD | 54,895 | DBK | |||||||||||||||||||||
04/10/15 | 602,000 | EUR | 829,962 | USD | 100,894 | HSB | |||||||||||||||||||||
04/10/15 | 30,026 | USD | 100,000 | MYR | (1,642 | ) | HSB | ||||||||||||||||||||
04/13/15 | 121,475 | EUR | 167,668 | USD | 20,548 | DBK | |||||||||||||||||||||
04/13/15 | 301,000 | EUR | 416,051 | USD | 51,506 | SCB | |||||||||||||||||||||
04/14/15 | 244,000 | EUR | 338,196 | USD | 42,682 | JPM | |||||||||||||||||||||
04/15/15 | 12,300,000 | JPY | 121,510 | USD | 18,819 | CIT | |||||||||||||||||||||
04/16/15 | 442,601 | USD | 1,465,895 | MYR | (26,701 | ) | DBK | ||||||||||||||||||||
04/16/15 | 510,253 | EUR | 708,542 | USD | 90,550 | HSB | |||||||||||||||||||||
04/16/15 | 131,446 | USD | 74,530,000 | CLP | (9,735 | ) | MSC | ||||||||||||||||||||
04/17/15 | 22,030,000 | JPY | 216,814 | USD | 32,885 | BCB | |||||||||||||||||||||
04/21/15 | 13,240,000 | JPY | 129,851 | USD | 19,305 | JPM | |||||||||||||||||||||
04/21/15 | 471,188 | USD | 1,557,984 | MYR | (29,307 | ) | JPM | ||||||||||||||||||||
04/22/15 | 119,438 | EUR | 164,834 | USD | 20,168 | BCB | |||||||||||||||||||||
04/22/15 | 32,855 | EUR | 45,453 | USD | 5,658 | JPM | |||||||||||||||||||||
04/22/15 | 15,980,000 | JPY | 156,755 | USD | 23,330 | JPM | |||||||||||||||||||||
04/28/15 | 81,665 | USD | 47,223,000 | CLP | (4,623 | ) | JPM | ||||||||||||||||||||
04/30/15 | 84,263 | EUR | 116,827 | USD | 14,758 | BCB | |||||||||||||||||||||
04/30/15 | 535,000 | EUR | 740,365 | USD | 92,310 | SCB | |||||||||||||||||||||
05/05/15 | 336,531 | EUR | 466,385 | USD | 58,718 | BCB | |||||||||||||||||||||
05/07/15 | 32,000 | EUR | 44,409 | USD | 5,644 | BCB | |||||||||||||||||||||
05/07/15 | 75,000 | EUR | 104,111 | USD | 13,255 | GSC | |||||||||||||||||||||
05/11/15 | 88,752 | USD | 52,000,000 | CLP | (4,007 | ) | MSC | ||||||||||||||||||||
05/12/15 | 14,673,000 | JPY | 144,887 | USD | 22,345 | CIT | |||||||||||||||||||||
05/13/15 | 32,000 | EUR | 44,090 | USD | 5,322 | GSC | |||||||||||||||||||||
05/13/15 | 19,620,000 | JPY | 193,281 | USD | 29,422 | GSC | |||||||||||||||||||||
05/13/15 | 50,000 | EUR | 68,900 | USD | 8,326 | GSC | |||||||||||||||||||||
05/13/15 | 16,000 | EUR | 22,009 | USD | 2,626 | SCB |
See accompanying notes to financial statements.
63
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
05/13/15 | 14,666,000 | JPY | 144,607 | USD | $ | 22,121 | SCB | ||||||||||||||||||||
05/14/15 | 14,665,000 | JPY | 144,271 | USD | 21,793 | CIT | |||||||||||||||||||||
05/14/15 | 153,000 | EUR | 210,748 | USD | 25,391 | GSC | |||||||||||||||||||||
05/18/15 | 74,624,550 | JPY | 735,000 | USD | 111,724 | BOA | |||||||||||||||||||||
05/19/15 | 74,602,500 | JPY | 735,000 | USD | 111,901 | BCB | |||||||||||||||||||||
05/19/15 | 74,400,375 | JPY | 735,000 | USD | 113,589 | BOA | |||||||||||||||||||||
05/19/15 | 74,514,200 | JPY | 735,000 | USD | 112,638 | CIT | |||||||||||||||||||||
05/19/15 | 482,011 | USD | 602,200 | SGD | (28,286 | ) | DBK | ||||||||||||||||||||
05/19/15 | 74,662,400 | JPY | 735,000 | USD | 111,400 | HSB | |||||||||||||||||||||
05/20/15 | 41,201,000 | JPY | 351,140 | USD | 7,014 | JPM | |||||||||||||||||||||
05/21/15 | 154,000 | EUR | 211,413 | USD | 24,831 | GSC | |||||||||||||||||||||
05/22/15 | 62,000 | EUR | 85,010 | USD | 9,891 | BCB | |||||||||||||||||||||
05/27/15 | 290,066 | EUR | 1,238,000 | PLN | (4,787 | ) | MSC | ||||||||||||||||||||
05/28/15 | 120,603 | USD | 156,500 | SGD | (2,698 | ) | DBK | ||||||||||||||||||||
05/29/15 | 124,676 | USD | 156,500 | SGD | (6,772 | ) | DBK | ||||||||||||||||||||
06/04/15 | 241,950 | USD | 137,500,000 | CLP | (18,300 | ) | BCB | ||||||||||||||||||||
06/05/15 | 22,710 | EUR | 30,930 | USD | 3,411 | BCB | |||||||||||||||||||||
06/05/15 | 77,267 | USD | 44,100,000 | CLP | (5,542 | ) | MSC | ||||||||||||||||||||
06/08/15 | 737,103 | EUR | 959,959 | USD | 66,744 | HSB | |||||||||||||||||||||
06/09/15 | 46,300,000 | JPY | 453,335 | USD | 66,526 | CIT | |||||||||||||||||||||
06/09/15 | 69,400,000 | JPY | 679,440 | USD | 99,644 | HSB | |||||||||||||||||||||
06/10/15 | �� | 62,600,000 | JPY | 613,079 | USD | 90,088 | BCB | ||||||||||||||||||||
06/10/15 | 45,210,000 | JPY | 442,100 | USD | 64,393 | CIT | |||||||||||||||||||||
06/10/15 | 46,500,000 | JPY | 454,714 | USD | 66,230 | CIT | |||||||||||||||||||||
06/10/15 | 133,550 | EUR | 182,469 | USD | 20,631 | DBK | |||||||||||||||||||||
06/10/15 | 66,670,000 | JPY | 653,182 | USD | 96,188 | HSB | |||||||||||||||||||||
06/11/15 | 91,787 | EUR | 384,000 | PLN | (3,745 | ) | CIT | ||||||||||||||||||||
06/11/15 | 22,100,000 | JPY | 216,370 | USD | 31,733 | DBK | |||||||||||||||||||||
06/11/15 | 61,770,000 | JPY | 604,628 | USD | 88,564 | JPM | |||||||||||||||||||||
06/12/15 | 469,608 | EUR | 1,967,000 | PLN | (18,525 | ) | DBK | ||||||||||||||||||||
06/15/15 | 69,000 | EUR | 93,521 | USD | 9,901 | DBK | |||||||||||||||||||||
06/15/15 | 226,372 | USD | 297,000 | SGD | (2,650 | ) | JPM | ||||||||||||||||||||
06/16/15 | 372,935 | USD | 1,323,172 | MYR | 965 | JPM | |||||||||||||||||||||
06/17/15 | 17,886,000 | JPY | 175,815 | USD | 26,374 | CIT | |||||||||||||||||||||
06/17/15 | 26,000,000 | JPY | 255,602 | USD | 38,367 | JPM | |||||||||||||||||||||
06/22/15 | 46,960,000 | JPY | 461,161 | USD | 68,776 | DBK | |||||||||||||||||||||
06/22/15 | 267,905 | USD | 352,000 | SGD | (2,769 | ) | HSB | ||||||||||||||||||||
06/23/15 | 336,512 | USD | 441,100 | SGD | (4,267 | ) | DBK | ||||||||||||||||||||
07/14/15 | 315,915 | USD | 1,023,565 | MYR | (27,201 | ) | DBK | ||||||||||||||||||||
07/15/15 | 358,025 | USD | 1,160,000 | MYR | (30,847 | ) | DBK | ||||||||||||||||||||
07/16/15 | 161,000 | EUR | 219,903 | USD | 24,720 | BCB | |||||||||||||||||||||
07/17/15 | 42,190 | EUR | 57,513 | USD | 6,365 | DBK | |||||||||||||||||||||
07/20/15 | 253,000 | EUR | 343,000 | USD | 36,264 | BCB | |||||||||||||||||||||
07/20/15 | 71,068 | USD | 232,000 | MYR | (5,652 | ) | DBK | ||||||||||||||||||||
07/20/15 | 183,228 | EUR | 813,000 | MYR | 7,091 | DBK | |||||||||||||||||||||
07/22/15 | 139,000 | EUR | 188,470 | USD | 19,942 | DBK | |||||||||||||||||||||
07/22/15 | 112,529 | USD | 366,000 | MYR | (9,344 | ) | DBK | ||||||||||||||||||||
07/22/15 | 208,159 | EUR | 918,000 | MYR | 6,431 | DBK | |||||||||||||||||||||
07/23/15 | 126,000 | EUR | 170,690 | USD | 17,921 | DBK | |||||||||||||||||||||
07/24/15 | 32,786,000 | JPY | 324,415 | USD | 50,329 | CIT | |||||||||||||||||||||
07/24/15 | 51,000,000 | JPY | 504,376 | USD | 78,024 | JPM | |||||||||||||||||||||
07/27/15 | 270,506 | EUR | 1,180,000 | MYR | 4,576 | DBK | |||||||||||||||||||||
07/27/15 | 137,596 | USD | 445,000 | MYR | (12,178 | ) | DBK | ||||||||||||||||||||
07/27/15 | 184,000 | EUR | 248,135 | USD | 25,030 | DBK | |||||||||||||||||||||
07/27/15 | 184,000 | EUR | 248,244 | USD | 25,139 | GSC | |||||||||||||||||||||
07/27/15 | 17,600,000 | JPY | 174,154 | USD | 27,013 | JPM | |||||||||||||||||||||
07/28/15 | 30,914 | EUR | 41,701 | USD | 4,216 | CIT | |||||||||||||||||||||
07/28/15 | 260,373 | USD | 151,290,000 | CLP | (15,379 | ) | DBK | ||||||||||||||||||||
07/28/15 | 154,528 | USD | 89,810,000 | CLP | (9,092 | ) | MSC | ||||||||||||||||||||
07/29/15 | 60,350,000 | JPY | 594,860 | USD | 90,297 | BCB | |||||||||||||||||||||
07/30/15 | 4,300,000 | MYR | 1,299,809 | USD | 88,123 | JPM | |||||||||||||||||||||
07/30/15 | 4,400,000 | MYR | 1,321,679 | USD | 81,814 | JPM | |||||||||||||||||||||
07/30/15 | 4,029,385 | USD | 13,031,032 | MYR | (357,405 | ) | JPM | ||||||||||||||||||||
07/30/15 | 270,568 | EUR | 1,180,000 | MYR | 4,423 | JPM | |||||||||||||||||||||
07/30/15 | 89,242 | USD | 51,930,000 | CLP | (5,162 | ) | JPM |
See accompanying notes to financial statements.
64
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
07/31/15 | 84,034 | USD | 48,870,000 | CLP | $ | (4,915 | ) | DBK | |||||||||||||||||||
07/31/15 | 535,000 | EUR | 719,286 | USD | 70,544 | JPM | |||||||||||||||||||||
07/31/15 | 207,563 | USD | 674,000 | MYR | (17,650 | ) | JPM | ||||||||||||||||||||
08/04/15 | 97,592 | EUR | 130,904 | USD | 12,556 | BCB | |||||||||||||||||||||
08/04/15 | 165,790 | USD | 97,750,000 | CLP | (7,589 | ) | DBK | ||||||||||||||||||||
08/04/15 | 535,000 | EUR | 717,983 | USD | 69,201 | HSB | |||||||||||||||||||||
08/04/15 | 536,000 | EUR | 719,312 | USD | 69,317 | UBS | |||||||||||||||||||||
08/05/15 | 335,000 | EUR | 450,332 | USD | 44,079 | BCB | |||||||||||||||||||||
08/05/15 | 366,500 | EUR | 492,708 | USD | 48,255 | JPM | |||||||||||||||||||||
08/06/15 | 728,523 | USD | 907,084 | SGD | (45,447 | ) | DBK | ||||||||||||||||||||
08/06/15 | 349,977 | USD | 1,143,865 | MYR | (27,790 | ) | HSB | ||||||||||||||||||||
08/07/15 | 262,693 | USD | 327,000 | SGD | (16,448 | ) | DBK | ||||||||||||||||||||
08/10/15 | 17,124 | EUR | 22,912 | USD | 2,144 | CIT | |||||||||||||||||||||
08/10/15 | 59,760 | EUR | 79,908 | USD | 7,432 | CIT | |||||||||||||||||||||
08/11/15 | 15,430,000 | JPY | 151,404 | USD | 22,369 | BCB | |||||||||||||||||||||
08/11/15 | 15,440,000 | JPY | 151,558 | USD | 22,441 | CIT | |||||||||||||||||||||
08/11/15 | 46,090,000 | JPY | 452,417 | USD | 66,987 | CIT | |||||||||||||||||||||
08/11/15 | 273,000 | EUR | 365,808 | USD | 34,711 | DBK | |||||||||||||||||||||
08/11/15 | 6,107 | USD | 20,000 | MYR | (475 | ) | HSB | ||||||||||||||||||||
08/11/15 | 360,500 | EUR | 482,845 | USD | 45,627 | JPM | |||||||||||||||||||||
08/12/15 | 87,530 | USD | 51,800,000 | CLP | (3,750 | ) | DBK | ||||||||||||||||||||
08/12/15 | 15,430,000 | JPY | 152,041 | USD | 23,004 | DBK | |||||||||||||||||||||
08/12/15 | 107,000 | EUR | 143,673 | USD | 13,900 | GSC | |||||||||||||||||||||
08/18/15 | 51,438,000 | JPY | 504,351 | USD | 74,144 | DBK | |||||||||||||||||||||
08/18/15 | 101,962 | USD | 106,000,000 | KRW | (5,834 | ) | JPM | ||||||||||||||||||||
08/18/15 | 75,659 | USD | 44,900,000 | CLP | (3,076 | ) | MSC | ||||||||||||||||||||
08/19/15 | 842,328 | EUR | 3,590,000 | PLN | (18,446 | ) | DBK | ||||||||||||||||||||
08/20/15 | 96,755,000 | JPY | 946,722 | USD | 137,473 | HSB | |||||||||||||||||||||
08/20/15 | 40,725 | USD | 24,160,000 | CLP | (1,675 | ) | JPM | ||||||||||||||||||||
08/20/15 | 69,639,000 | JPY | 681,726 | USD | 99,272 | JPM | |||||||||||||||||||||
08/21/15 | 761,000 | EUR | 1,016,049 | USD | 92,957 | JPM | |||||||||||||||||||||
08/24/15 | 23,068,000 | JPY | 224,203 | USD | 31,250 | BCB | |||||||||||||||||||||
08/25/15 | 22,797,000 | JPY | 220,457 | USD | 29,768 | DBK | |||||||||||||||||||||
08/25/15 | 45,752,000 | JPY | 442,690 | USD | 59,990 | HSB | |||||||||||||||||||||
08/26/15 | 64,764,000 | JPY | 627,157 | USD | 85,419 | BCB | |||||||||||||||||||||
08/26/15 | 131,855 | EUR | 175,450 | USD | 15,497 | BCB | |||||||||||||||||||||
08/26/15 | 45,992,000 | JPY | 445,059 | USD | 60,346 | JPM | |||||||||||||||||||||
08/27/15 | 150,993 | USD | 90,490,000 | CLP | (4,819 | ) | DBK | ||||||||||||||||||||
08/27/15 | 38,472,000 | JPY | 371,385 | USD | 49,569 | DBK | |||||||||||||||||||||
08/27/15 | 73,808,000 | JPY | 712,556 | USD | 95,156 | HSB | |||||||||||||||||||||
08/27/15 | 327,271 | EUR | 433,462 | USD | 36,446 | JPM | |||||||||||||||||||||
08/27/15 | 33,447,000 | JPY | 323,305 | USD | 43,522 | JPM | |||||||||||||||||||||
08/28/15 | 49,232 | USD | 29,500,000 | CLP | (1,583 | ) | JPM | ||||||||||||||||||||
08/31/15 | 51,798 | EUR | 68,509 | USD | 5,668 | DBK | |||||||||||||||||||||
08/31/15 | 22,848,000 | JPY | 220,887 | USD | 29,751 | JPM | |||||||||||||||||||||
09/02/15 | 86,000 | EUR | 113,647 | USD | 9,310 | DBK | |||||||||||||||||||||
09/08/15 | 323,654 | USD | 196,005,000 | CLP | (7,349 | ) | DBK | ||||||||||||||||||||
09/08/15 | 74,750 | EUR | 98,612 | USD | 7,915 | DBK | |||||||||||||||||||||
09/08/15 | 745,000 | EUR | 969,320 | USD | 65,382 | JPM | |||||||||||||||||||||
09/09/15 | 166,475 | USD | 101,500,000 | CLP | (2,692 | ) | DBK | ||||||||||||||||||||
09/21/15 | 33,313 | EUR | 43,353 | USD | 2,925 | BCB | |||||||||||||||||||||
09/21/15 | 370,840 | USD | 468,000 | SGD | (18,477 | ) | HSB | ||||||||||||||||||||
09/23/15 | 384,000 | EUR | 495,917 | USD | 29,886 | DBK | |||||||||||||||||||||
09/23/15 | 616,157 | EUR | 795,767 | USD | 47,984 | UBS | |||||||||||||||||||||
09/24/15 | 81,780 | EUR | 105,446 | USD | 6,194 | BCB | |||||||||||||||||||||
09/28/15 | 94,407 | EUR | 121,757 | USD | 7,173 | CIT | |||||||||||||||||||||
09/28/15 | 179,000 | EUR | 230,522 | USD | 13,266 | DBK | |||||||||||||||||||||
09/30/15 | 9,763,000 | JPY | 89,946 | USD | 8,229 | JPM | |||||||||||||||||||||
10/01/15 | 229,895 | USD | 769,000 | MYR | (14,043 | ) | HSB | ||||||||||||||||||||
10/07/15 | 1,435,566 | USD | 19,820,860 | MXN | (113,721 | ) | HSB | ||||||||||||||||||||
10/08/15 | 140,379,090 | JPY | 4,300,000 | MYR | 31,298 | JPM | |||||||||||||||||||||
10/13/15 | 142,013,168 | JPY | 4,400,000 | MYR | 45,159 | JPM | |||||||||||||||||||||
10/14/15 | 894,779 | USD | 12,237,000 | MXN | (79,097 | ) | DBK | ||||||||||||||||||||
10/15/15 | 1,260,000 | EUR | 1,602,594 | USD | 72,800 | CIT | |||||||||||||||||||||
10/20/15 | 1,004,000 | EUR | 1,285,522 | USD | 66,406 | HSB |
See accompanying notes to financial statements.
65
SFT Advantus International Bond Fund
Investments in Securities – continued
Exchange Date | Currency to be delivered – SELL | Currency to be received – BUY | Unrealized Gain (Loss) | Counterparty | |||||||||||||||||||||||
10/20/15 | 139,540 | USD | 467,000 | MYR | $ | (8,603 | ) | JPM | |||||||||||||||||||
10/22/15 | 27,530,000 | JPY | 258,716 | USD | 28,165 | BCB | |||||||||||||||||||||
10/23/15 | 251,518 | USD | 841,000 | MYR | (15,760 | ) | HSB | ||||||||||||||||||||
10/26/15 | 188,458 | USD | 628,000 | MYR | (12,441 | ) | DBK | ||||||||||||||||||||
10/26/15 | 341,000 | EUR | 432,848 | USD | 18,730 | DBK | |||||||||||||||||||||
10/26/15 | 125,641 | USD | 418,635 | MYR | (8,305 | ) | HSB | ||||||||||||||||||||
10/27/15 | 249,043 | EUR | 316,277 | USD | 13,827 | BCB | |||||||||||||||||||||
10/30/15 | 125,468 | USD | 419,000 | MYR | (8,057 | ) | JPM | ||||||||||||||||||||
11/04/15 | 699,000 | EUR | 878,818 | USD | 29,765 | UBS | |||||||||||||||||||||
11/10/15 | 13,826,020 | JPY | 121,278 | USD | 5,432 | CIT | |||||||||||||||||||||
11/10/15 | 3,406,000 | EUR | 4,253,924 | USD | 116,209 | DBK | |||||||||||||||||||||
11/12/15 | 956,000 | EUR | 1,198,231 | USD | 36,801 | CIT | |||||||||||||||||||||
11/12/15 | 19,766,000 | JPY | 173,941 | USD | 8,317 | CIT | |||||||||||||||||||||
11/12/15 | 22,910,000 | JPY | 200,828 | USD | 8,859 | HSB | |||||||||||||||||||||
11/12/15 | 13,582,000 | JPY | 119,337 | USD | 5,530 | JPM | |||||||||||||||||||||
11/13/15 | 805,000 | EUR | 1,004,793 | USD | 26,788 | BCB | |||||||||||||||||||||
11/16/15 | 415,000 | EUR | 519,663 | USD | 15,440 | DBK | |||||||||||||||||||||
11/16/15 | 18,200,000 | JPY | 158,709 | USD | 6,190 | MSC | |||||||||||||||||||||
11/16/15 | 437,000 | EUR | 546,840 | USD | 15,887 | MSC | |||||||||||||||||||||
11/16/15 | 13,769,800 | JPY | 120,279 | USD | 4,886 | SCB | |||||||||||||||||||||
11/18/15 | 45,867,000 | JPY | 395,473 | USD | 11,079 | DBK | |||||||||||||||||||||
11/19/15 | 56,774,000 | JPY | 490,255 | USD | 14,441 | CIT | |||||||||||||||||||||
11/19/15 | 118,528 | USD | 405,080 | MYR | (5,149 | ) | DBK | ||||||||||||||||||||
11/20/15 | 63,773,000 | JPY | 550,242 | USD | 15,756 | CIT | |||||||||||||||||||||
11/20/15 | 65,657 | USD | 225,000 | MYR | (2,685 | ) | HSB | ||||||||||||||||||||
11/23/15 | 191,000 | EUR | 240,230 | USD | 8,130 | MSC | |||||||||||||||||||||
11/24/15 | 11,968,000 | JPY | 102,378 | USD | 2,063 | HSB | |||||||||||||||||||||
11/25/15 | 333,000 | EUR | 415,141 | USD | 10,466 | MSC | |||||||||||||||||||||
12/04/15 | 100,000 | EUR | 124,770 | USD | 3,221 | DBK | |||||||||||||||||||||
12/09/15 | 202,851 | EUR | 249,888 | USD | 3,298 | HSB | |||||||||||||||||||||
12/09/15 | 30,600 | EUR | 37,801 | USD | 603 | SCB | |||||||||||||||||||||
12/15/15 | 89,000 | EUR | 111,101 | USD | 2,896 | JPM | |||||||||||||||||||||
12/21/15 | 46,870,000 | JPY | 401,216 | USD | 8,068 | DBK | |||||||||||||||||||||
12/21/15 | 46,950,000 | JPY | 401,454 | USD | 7,635 | HSB | |||||||||||||||||||||
12/22/15 | 22,560,000 | JPY | 190,795 | USD | 1,556 | BCB | |||||||||||||||||||||
12/22/15 | 35,200,000 | JPY | 298,103 | USD | 2,836 | CIT | |||||||||||||||||||||
$ | 6,461,599 |
At December 31, 2014, the Fund had the following interest rate swap contracts outstanding.
Interest Rate Swap Contracts
Description | Counterparty | Expiration Date | Notional Amount | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||
Centrally Cleared Swaps | |||||||||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 0.926% | CIT | 10/17/17 | $ | 6,540,000 | $ | 43,742 | $ | — | |||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 2.695% | CIT | 05/09/24 | 4,260,000 | — | (180,549 | ) | |||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 2.731% | CIT | 07/07/24 | 1,250,000 | — | (67,515 | ) | |||||||||||||||||
Receive Floating Rate 3-Month USD LIBOR Pay Fixed Rate 3.388% | CIT | 05/09/44 | 2,028,000 | — | (305,009 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) | $ | 43,742 | $ | (553,073 | ) |
See accompanying notes to financial statements.
66
SFT Advantus International Bond Fund
Investments in Securities – continued
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Principal amounts for foreign debt securities are denominated in the currencies indicated. United States debt securities are denominated in U.S. Dollars.
(c) Rate represents annualized yield at date of purchase.
(d) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program. This security has been determined to be liquid unless otherwise indicated.
(e) Variable rate security.
(f) Step rate security.
(g) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(h) At December 31, 2014 the cost of securities for federal income tax purposes was $119,735,490. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 3,796,933 | |||||
Gross unrealized depreciation | (7,806,074 | ) | |||||
Net unrealized depreciation | $ | (4,009,141 | ) |
Currency Legend
BRL Brazilian Real
CAD Canadian Dollar
CLP Chilean Peso
EUR Euro
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
LKR Sri Lankan Rupee
MXN Mexican Peso
MYR Malaysian Ringgit
PHP Philippine Peso
PLN Polish Zloty
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
Counterparty Legend
BCB Barclays Bank PLC
BOA Bank of America Merrill Lynch
CIT Citibank NA
DBK Deutsche Bank AG
GSC Goldman Sachs
HSB HSBC Bank PLC
JPM JPMorgan Chase Bank NA
MSC Morgan Stanley and Co., Inc.
SCB Standard Chartered Bank
UBS UBS AG
See accompanying notes to financial statements.
67
SFT Advantus Managed Volatility Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (31.0%) | |||||||||||
Government Obligations (4.0%) | |||||||||||
U.S. Government Agencies and Obligations (4.0%) | |||||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (1.4%) | |||||||||||
3.000%, 09/01/43 | $ | 233,426 | $ | 236,290 | |||||||
3.500%, 10/01/44 | 496,543 | 516,843 | |||||||||
3.500%, 11/01/44 | 498,475 | 518,854 | |||||||||
3.500%, 12/01/44 | 500,000 | 520,442 | |||||||||
1,792,429 | |||||||||||
Federal National Mortgage Association (FNMA) (1.1%) | |||||||||||
3.000%, 04/01/43 | 357,912 | 362,666 | |||||||||
3.000%, 05/01/43 | 177,165 | 179,521 | |||||||||
3.000%, 06/01/43 | 455,103 | 461,070 | |||||||||
3.500%, 08/01/42 | 211,097 | 220,864 | |||||||||
3.500%, 02/01/43 | 220,457 | 231,189 | |||||||||
1,455,310 | |||||||||||
U.S. Treasury (1.5%) | |||||||||||
U.S. Treasury Note | |||||||||||
0.125%, 04/30/15 (b) | 1,000,000 | 1,000,234 | |||||||||
0.625%, 04/30/18 (b) | 1,000,000 | 979,688 | |||||||||
1,979,922 | |||||||||||
Total government obligations (cost: $5,168,056) | 5,227,661 | ||||||||||
Corporate Obligations (27.0%) | |||||||||||
Basic Materials (0.4%) | |||||||||||
Mining (0.4%) | |||||||||||
BHP Billiton Finance USA, Ltd., 2.875%, 02/24/22 (c) | 250,000 | 249,693 | |||||||||
Rio Tinto Finance USA, Ltd., 3.750%, 09/20/21 (c) | 250,000 | 256,951 | |||||||||
506,644 | |||||||||||
Communications (1.4%) | |||||||||||
Cable/Satellite TV (0.8%) | |||||||||||
Comcast Corp. 4.200%, 08/15/34 | 500,000 | 522,823 | |||||||||
4.650%, 07/15/42 | 250,000 | 273,628 | |||||||||
DIRECTV Holdings LLC, 4.600%, 02/15/21 | 250,000 | 267,784 | |||||||||
1,064,235 | |||||||||||
Media (0.2%) | |||||||||||
Viacom, Inc., 5.625%, 09/15/19 | 250,000 | 280,766 | |||||||||
Telephone — Integrated (0.2%) | |||||||||||
AT&T, Inc., 4.350%, 06/15/45 | 250,000 | 235,689 | |||||||||
Wireless Telecommunication Services (0.2%) | |||||||||||
Rogers Communications, Inc., 4.100%, 10/01/23 (c) | 250,000 | 262,660 |
Principal | Value(a) | ||||||||||
Consumer Cyclical (0.8%) | |||||||||||
Retail (0.8%) | |||||||||||
Target Corp., 3.500%, 07/01/24 | $ | 750,000 | $ | 778,630 | |||||||
Wal-Mart Stores, Inc., 1.950%, 12/15/18 | 250,000 | 253,222 | |||||||||
1,031,852 | |||||||||||
Consumer Staples (1.0%) | |||||||||||
Beverages (0.4%) | |||||||||||
The Coca-Cola Co., 3.200%, 11/01/23 (b) | 500,000 | 514,382 | |||||||||
Consumer Products — Miscellaneous (0.6%) | |||||||||||
Johnson (S.C.) & Son, Inc., 3.350%, 09/30/24 (d) | 750,000 | 768,787 | |||||||||
Consumer, Non-cyclical (1.0%) | |||||||||||
Commercial Service — Finance (0.2%) | |||||||||||
Moody's Corp., 4.875%, 02/15/24 | 250,000 | 275,193 | |||||||||
Drugstore Chains (0.2%) | |||||||||||
CVS Pass-Through Trust, 6.943%, 01/10/30 | 207,226 | 251,261 | |||||||||
Food (0.2%) | |||||||||||
ConAgra Foods, Inc., 5.819%, 06/15/17 | 250,000 | 273,699 | |||||||||
Pharmaceuticals (0.4%) | |||||||||||
Novartis Capital Corp., 3.400%, 05/06/24 | 500,000 | 520,141 | |||||||||
Energy (6.7%) | |||||||||||
Oil, Gas & Consumable Fuels (4.1%) | |||||||||||
Apache Corp., 3.250%, 04/15/22 | 181,000 | 177,837 | |||||||||
Chevron Corp., 3.191%, 06/24/23 | 250,000 | 254,668 | |||||||||
Ensco PLC, 4.500%, 10/01/24 (c) | 750,000 | 728,983 | |||||||||
EOG Resources, Inc., 2.625%, 03/15/23 | 250,000 | 239,727 | |||||||||
Marathon Petroleum Corp., 3.625%, 09/15/24 | 750,000 | 735,002 | |||||||||
Noble Energy, Inc., 3.900%, 11/15/24 | 1,000,000 | 988,348 | |||||||||
Phillips 66, 4.650%, 11/15/34 | 1,000,000 | 1,024,998 | |||||||||
Rowan Cos., Inc., | |||||||||||
4.750%, 01/15/24 | 500,000 | 471,934 | |||||||||
Total Capital International SA, 3.750%, 04/10/24 (c) | 750,000 | 777,088 | |||||||||
5,398,585 | |||||||||||
Pipelines (2.6%) | |||||||||||
Enbridge Energy Partners L.P., 6.500%, 04/15/18 | 250,000 | 283,159 | |||||||||
Enterprise Products Operating LLC, 5.750%, 03/01/35 | 250,000 | 287,648 |
See accompanying notes to financial statements.
68
SFT Advantus Managed Volatility Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Kinder Morgan, Inc., 5.300%, 12/01/34 | $ | 750,000 | $ | 761,292 | |||||||
Plains All American Pipeline L.P./PAA Finance Corp., 3.850%, 10/15/23 | 250,000 | 253,562 | |||||||||
Spectra Energy Partners L.P., 2.950%, 09/25/18 | 250,000 | 255,849 | |||||||||
Sunoco Logistics Partners Operations L.P., 4.250%, 04/01/24 | 1,000,000 | 1,011,251 | |||||||||
Williams Partners L.P., 4.300%, 03/04/24 | 500,000 | 499,081 | |||||||||
3,351,842 | |||||||||||
Financial (7.0%) | |||||||||||
Banks (2.8%) | |||||||||||
Associated Banc-Corp, 4.250%, 01/15/25 | 750,000 | 752,071 | |||||||||
Bank of America Corp., 5.700%, 01/24/22 | 250,000 | 289,609 | |||||||||
Bank of Montreal, 2.375%, 01/25/19 (c) | 250,000 | 252,403 | |||||||||
Capital One Financial Corp., 4.750%, 07/15/21 | 250,000 | 275,535 | |||||||||
Citigroup, Inc., 5.300%, 01/07/16 | 250,000 | 260,877 | |||||||||
Discover Bank, 4.250%, 03/13/26 | 500,000 | 518,299 | |||||||||
HSBC Bank USA NA, 4.875%, 08/24/20 | 250,000 | 275,947 | |||||||||
JPMorgan Chase & Co., 4.500%, 01/24/22 | 250,000 | 272,938 | |||||||||
PNC Bank NA, 3.800%, 07/25/23 | 250,000 | 257,699 | |||||||||
SunTrust Bank, 2.750%, 05/01/23 | 250,000 | 243,911 | |||||||||
Wells Fargo & Co., 5.125%, 09/15/16 | 250,000 | 266,651 | |||||||||
3,665,940 | |||||||||||
Insurance (2.0%) | |||||||||||
Assured Guaranty US Holdings, 5.000%, 07/01/24 | 500,000 | 527,470 | |||||||||
First American Financial Corp., 4.600%, 11/15/24 | 750,000 | 760,418 | |||||||||
Liberty Mutual Group, Inc., 4.250%, 06/15/23 (d) | 250,000 | 257,620 | |||||||||
Metropolitan Life Global Funding I, 3.875%, 04/11/22 (d) | 250,000 | 264,277 | |||||||||
Old Republic International Corp., 4.875%, 10/01/24 | 750,000 | 782,906 | |||||||||
2,592,691 | |||||||||||
Real Estate Investment Trust — Office Property (0.4%) | |||||||||||
Alexandria Real Estate Equities, Inc., 4.500%, 07/30/29 | 500,000 | 512,017 |
Principal | Value(a) | ||||||||||
Real Estate Investment Trust — Shopping Centers (0.2%) | |||||||||||
Retail Opportunity Investments Partnership L.P., 5.000%, 12/15/23 | $ | 250,000 | $ | 270,998 | |||||||
Real Estate Investment Trust — Single Tenant (0.6%) | |||||||||||
Realty Income Corp., 5.950%, 09/15/16 | 250,000 | 269,595 | |||||||||
Tanger Properties L.P., 3.875%, 12/01/23 | 500,000 | 511,874 | |||||||||
781,469 | |||||||||||
Real Estate Investment Trust — Storage (0.4%) | |||||||||||
CubeSmart L.P., 4.375%, 12/15/23 | 500,000 | 529,710 | |||||||||
Specialized REITs (0.6%) | |||||||||||
HCP, Inc. | |||||||||||
3.875%, 08/15/24 | 500,000 | 507,909 | |||||||||
4.250%, 11/15/23 | 250,000 | 262,809 | |||||||||
770,718 | |||||||||||
Health Care (1.6%) | |||||||||||
Biotechnology (0.2%) | |||||||||||
Amgen, Inc., 5.700%, 02/01/19 | 250,000 | 281,220 | |||||||||
Health Care Equipment & Supplies (0.2%) | |||||||||||
St Jude Medical, Inc., 4.750%, 04/15/43 | 250,000 | 265,366 | |||||||||
Health Care Providers & Services (0.4%) | |||||||||||
Laboratory Corp. of America Holdings, 4.000%, 11/01/23 | 250,000 | 256,409 | |||||||||
UnitedHealth Group, Inc., 2.750%, 02/15/23 | 250,000 | 245,282 | |||||||||
501,691 | |||||||||||
Pharmaceuticals (0.8%) | |||||||||||
Bristol-Myers Squibb Co., 3.250%, 11/01/23 | 500,000 | 509,849 | |||||||||
Mylan, Inc., 4.200%, 11/29/23 | 500,000 | 518,215 | |||||||||
1,028,064 | |||||||||||
Industrials (2.6%) | |||||||||||
Aerospace & Defense (1.0%) | |||||||||||
BAE Systems Holdings, Inc., 5.200%, 08/15/15 (d) | 250,000 | 256,556 | |||||||||
Rockwell Collins, Inc., 3.700%, 12/15/23 | 500,000 | 521,399 | |||||||||
Textron, Inc., 4.300%, 03/01/24 | 500,000 | 522,428 | |||||||||
1,300,383 | |||||||||||
Electrical Equipment (0.6%) | |||||||||||
Trimble Navigation, Ltd., 4.750%, 12/01/24 | 750,000 | 768,446 |
See accompanying notes to financial statements.
69
SFT Advantus Managed Volatility Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
Machinery (0.6%) | |||||||||||
Caterpillar Financial Services Corp., 3.750%, 11/24/23 (b) | $ | 750,000 | $ | 795,736 | |||||||
Road & Rail (0.2%) | |||||||||||
The Kansas City Southern Railway Co., 4.300%, 05/15/43 | 250,000 | 255,084 | |||||||||
Transportation (0.2%) | |||||||||||
Burlington Northern Santa Fe LLC, 3.750%, 04/01/24 | 350,000 | 363,987 | |||||||||
Information Technology (1.7%) | |||||||||||
Communications Equipment (0.8%) | |||||||||||
Juniper Networks, Inc., 4.500%, 03/15/24 | 500,000 | 504,703 | |||||||||
Motorola Solutions, Inc., 4.000%, 09/01/24 | 500,000 | 503,011 | |||||||||
1,007,714 | |||||||||||
Internet Software & Services (0.5%) | |||||||||||
eBay, Inc., 3.450%, 08/01/24 | 750,000 | 737,435 | |||||||||
IT Services (0.4%) | |||||||||||
The Western Union Co., 3.350%, 05/22/19 | 500,000 | 512,145 | |||||||||
Materials (0.7%) | |||||||||||
Chemicals (0.7%) | |||||||||||
The Dow Chemical Co., 3.500%, 10/01/24 | 750,000 | 742,398 | |||||||||
The Mosaic Co., 5.450%, 11/15/33 | 200,000 | 226,281 | |||||||||
968,679 | |||||||||||
Transportation (1.0%) | |||||||||||
Airlines (0.2%) | |||||||||||
United Airlines 2013-1 Class A Pass Through Trust, 4.300%, 02/15/27 | 250,000 | 258,728 | |||||||||
Transport — Rail (0.8%) | |||||||||||
Norfolk Southern Corp., 3.850%, 01/15/24 | 500,000 | 525,727 | |||||||||
Union Pacific Corp., 3.750%, 03/15/24 | 500,000 | 534,732 | |||||||||
1,060,459 | |||||||||||
Utilities (1.1%) | |||||||||||
Electric Utilities (0.4%) | |||||||||||
Entergy Louisiana LLC, 3.300%, 12/01/22 | 250,000 | 255,700 | |||||||||
PPL Capital Funding, Inc., 3.400%, 06/01/23 | 250,000 | 250,470 | |||||||||
506,170 |
Shares/ Principal | Value(a) | ||||||||||
Electric — Integrated (0.2%) | |||||||||||
Berkshire Hathaway Energy Co., 3.750%, 11/15/23 | $ | 250,000 | $ | 260,647 | |||||||
Multi-Utilities (0.2%) | |||||||||||
Dominion Gas Holdings LLC, 3.550%, 11/01/23 | 250,000 | 255,243 | |||||||||
Water Utilities (0.3%) | |||||||||||
Aquarion Co., 4.000%, 08/15/24 (d) (e) | 500,000 | 498,254 | |||||||||
Total corporate obligations (cost: $34,884,848) | 35,484,730 | ||||||||||
Total long-term debt securities (cost: $40,052,904) | 40,712,391 | ||||||||||
Mutual Funds (24.5%) | |||||||||||
Investment Companies (24.5%) | |||||||||||
SFT Advantus Index 500 Fund (f) | 4,145,332 | 32,071,660 | |||||||||
Total mutual funds (cost: $27,000,000) | 32,071,660 | ||||||||||
Short-Term Securities (44.7%) | |||||||||||
Investment Companies (44.7%) | |||||||||||
Dreyfus Treasury Cash Management Fund, current rate 0.010% | 58,552,024 | 58,552,024 | |||||||||
Total short-term securities (cost: $58,552,024) | 58,552,024 | ||||||||||
Total investments in securities (cost: $125,604,928) (g) | 131,336,075 | ||||||||||
Liabilities in excess of cash and other assets (-0.2%) | (289,305 | ) | |||||||||
Total net assets (100.0%) | $ | 131,046,770 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2014, securities with an aggregate market value of $3,077,844 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
10 Year U.S. Treasury Note | March 2015 | 8 | Short | $ | (7,579 | ) | |||||||||||||
S&P 500® E-Mini Index Future | March 2015 | 4 | Long | 374 | |||||||||||||||
S&P 500® Index Future | March 2015 | 74 | Long | 303,295 | |||||||||||||||
86 | $ | 296,090 |
See accompanying notes to financial statements.
70
SFT Advantus Managed Volatility Fund
Investments in Securities – continued
(c) Foreign security: The Fund held 1.9% of net assets in foreign securities at December 31, 2014.
(d) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program. This security has been determined to be liquid unless otherwise indicated.
(e) Illiquid security. (See Note 5.)
(f) Affiliated security. (See Note 8.)
(g) At December 31, 2014 the cost of securities for federal income tax purposes was $125,604,928. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 5,981,255 | |||||
Gross unrealized depreciation | (250,108 | ) | |||||
Net unrealized appreciation | $ | 5,731,147 |
See accompanying notes to financial statements.
71
SFT Advantus Money Market Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Commercial Paper (33.9%) | |||||||||||
Communications (2.3%) | |||||||||||
Media (2.3%) | |||||||||||
The Walt Disney Co., 0.112%, 03/24/15 (b) (c) | $ | 2,000,000 | $ | 1,999,499 | |||||||
Consumer Staples (9.8%) | |||||||||||
Beverages (5.8%) | |||||||||||
PepsiCo, Inc., 0.081%, 01/21/15 (b) (c) | 2,000,000 | 1,999,911 | |||||||||
The Coca-Cola Co., | |||||||||||
0.112%, 02/09/15 (b) (c) | 2,000,000 | 1,999,762 | |||||||||
0.122%, 02/11/15 (b) (c) | 1,000,000 | 999,863 | |||||||||
4,999,536 | |||||||||||
Food (2.3%) | |||||||||||
Nestle Capital Corp., 0.112%, 02/19/15 (b) (c) | 2,000,000 | 1,999,700 | |||||||||
Personal Care (1.7%) | |||||||||||
Procter & Gamble Co., 0.132%, 03/02/15 (b) (c) | 1,500,000 | 1,499,675 | |||||||||
Financial (2.3%) | |||||||||||
Insurance (2.3%) | |||||||||||
Massachusetts Mutual Life Insurance Co., 0.101%, 01/14/15 (b) (c) | 2,000,000 | 1,999,928 | |||||||||
Health Care (13.8%) | |||||||||||
Pharmaceuticals (13.8%) | |||||||||||
Abbott Laboratories, | |||||||||||
0.091%, 01/15/15 (b) (c) | 1,500,000 | 1,499,948 | |||||||||
0.101%, 01/22/15 (b) (c) | 2,000,000 | 1,999,883 | |||||||||
Johnson & Johnson, 0.071%, 01/13/15 (b) (c) | 2,000,000 | 1,999,953 | |||||||||
Pfizer, Inc., 0.081%, 01/12/15 (b) (c) | 2,500,000 | 2,499,939 | |||||||||
Roche Holdings, Inc. | |||||||||||
0.051%, 01/20/15 (b) (c) | 2,000,000 | 1,999,947 | |||||||||
0.061%, 02/03/15 (b) (c) | 1,000,000 | 999,945 | |||||||||
0.091%, 02/09/15 (b) (c) | 1,000,000 | 999,903 | |||||||||
11,999,518 | |||||||||||
Industrials (5.7%) | |||||||||||
Electrical Equipment (3.4%) | |||||||||||
Emerson Electric Co., | |||||||||||
0.122%, 01/29/15 (b) (c) | 2,000,000 | 1,999,814 | |||||||||
0.132%, 02/17/15 (b) (c) | 1,000,000 | 999,830 | |||||||||
2,999,644 | |||||||||||
Machinery (2.3%) | |||||||||||
Siemens Capital Co. LLC, 0.112%, 03/13/15 (b) (c) | 2,000,000 | 1,999,566 | |||||||||
Total commercial paper (cost: $29,497,066) | 29,497,066 |
Principal | Value(a) | ||||||||||
Corporate Bonds & Notes (8.1%) | |||||||||||
Financial (8.1%) | |||||||||||
Finance — Auto Loans (1.2%) | |||||||||||
American Honda Finance Corp., 0.235%, 06/04/15 (d) | $ | 1,000,000 | $ | 1,000,000 | |||||||
Insurance (1.7%) | |||||||||||
New York Life Global Funding, 1.300%, 01/12/15 (e) | 1,515,000 | 1,515,465 | |||||||||
Supranational Bank (5.2%) | |||||||||||
International Bank for Reconstruction & Development, 0.081%, 02/18/15 (b) | 2,000,000 | 1,999,786 | |||||||||
International Finance Corp., 0.091%, 01/26/15 (b) | 2,500,000 | 2,499,844 | |||||||||
4,499,630 | |||||||||||
Total corporate bonds & notes (cost: $7,015,095) | 7,015,095 | ||||||||||
U.S. Government Obligations (27.0%) | |||||||||||
Discount Notes (24.4%) | |||||||||||
Farmer Mac, 0.076%, 02/04/15 (b) | 1,000,000 | 999,929 | |||||||||
Federal Agricultural Mortgage Corporation | |||||||||||
0.056%, 01/02/15 (b) | 2,500,000 | 2,499,996 | |||||||||
0.056%, 01/05/15 (b) | 1,000,000 | 999,994 | |||||||||
0.061%, 01/08/15 (b) | 2,000,000 | 1,999,977 | |||||||||
Federal Home Loan Bank | |||||||||||
0.056%, 01/16/15 (b) | 2,000,000 | 1,999,954 | |||||||||
0.061%, 01/09/15 (b) | 2,500,000 | 2,499,967 | |||||||||
0.071%, 01/23/15 (b) | 2,000,000 | 1,999,914 | |||||||||
0.081%, 01/30/15 (b) | 2,500,000 | 2,499,839 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) 0.071%, 01/28/15 (b) | 2,200,000 | 2,199,884 | |||||||||
Federal National Mortgage Association (FNMA) | |||||||||||
0.041%, 01/05/15 (b) | 2,000,000 | 1,999,991 | |||||||||
0.076%, 02/04/15 (b) | 1,500,000 | 1,499,894 | |||||||||
21,199,339 | |||||||||||
Federal Home Loan Bank (1.2%) | |||||||||||
Federal Home Loan Bank, 0.270%, 10/20/15 | 1,000,000 | 1,000,000 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (1.4%) | |||||||||||
Federal Home Loan Mortgage Corp., 0.270%, 12/09/15 | 1,250,000 | 1,250,000 | |||||||||
Total U.S. government obligations (cost: $23,449,339) | 23,449,339 |
See accompanying notes to financial statements.
72
SFT Advantus Money Market Fund
Investments in Securities – continued
Shares/ Principal | Value(a) | ||||||||||
Other Short-Term Investments (7.6%) | |||||||||||
Asset-Backed Securities (7.6%) | |||||||||||
AmeriCredit Automobile Receivables Trust, 0.210%, 06/08/15 | $ | 13,171 | $ | 13,171 | |||||||
ARI Fleet Lease Trust, 0.250%, 04/15/15 (e) | 199,776 | 199,776 | |||||||||
Dell Equipment Finance Trust, 0.260%, 08/14/15 (e) | 578,793 | 578,793 | |||||||||
First Investors Auto Owner Trust, 0.300%, 08/17/15 (e) | 565,158 | 565,158 | |||||||||
Ford Credit Auto Lease Trust, 0.180%, 08/15/15 (e) | 249,854 | 249,854 | |||||||||
GM Financial Automobile Leasing Trust, 0.250%, 09/21/15 (e) | 750,889 | 750,889 | |||||||||
Honda Auto Receivables Owner Trust, 0.190%, 08/17/15 | 375,949 | 375,949 | |||||||||
John Deere Owner Trust, 0.210%, 09/24/15 | 915,759 | 915,759 | |||||||||
Nissan Auto Lease Trust, 0.200%, 10/15/15 | 987,087 | 987,087 | |||||||||
Nissan Auto Receivables Owner Trust, 0.230%, 12/15/15 | 1,000,000 | 1,000,000 | |||||||||
Westlake Automobile Receivables Trust, 0.350%, 06/15/15 (e) | 60,206 | 60,206 | |||||||||
World Omni Auto Receivables Trust, 0.230%, 11/16/15 | 914,611 | 914,611 | |||||||||
Total other short-term investments (cost: $6,611,253) | 6,611,253 | ||||||||||
Investment Companies (23.0%) | |||||||||||
BlackRock Liquidity Funds T-Fund Portfolio, current rate 0.031% | 4,000,000 | 4,000,000 | |||||||||
Federated Government Obligations Fund, current rate 0.010% | 4,000,000 | 4,000,000 | |||||||||
JPMorgan U.S. Government Money Market Fund, current rate 0.020% | 4,000,000 | 4,000,000 | |||||||||
STIT-Government & Agency Portfolio, current rate 0.010% | 4,000,000 | 4,000,000 | |||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 3,990,303 | 3,990,303 | |||||||||
Total investment companies (cost: $19,990,303) | 19,990,303 | ||||||||||
Total investments in securities (cost: $86,563,056) (f) | 86,563,056 | ||||||||||
Cash and other assets in excess of liabilities (0.4%) | 341,308 | ||||||||||
Total net assets (100.0%) | $ | 86,904,364 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Rate represents annualized yield at date of purchase.
(c) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors". This security has been determined to be liquid under guidelines established by the Board of Trustees. In the aggregate such securities represent 33.9% of the Fund's net assets as of December 31, 2014.
(d) Variable rate security.
(e) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program. This security has been determined to be liquid unless otherwise indicated.
(f) Also represents the cost of securities for federal income tax purposes at December 31, 2014.
See accompanying notes to financial statements.
73
SFT Advantus Mortgage Securities Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Principal | Value(a) | ||||||||||
Long-Term Debt Securities (96.9%) | |||||||||||
Government Obligations (85.4%) | |||||||||||
Other Government Obligations (0.2%) | |||||||||||
Provincial or Local Government Obligation (0.2%) | |||||||||||
Utility Debt Securitization Authority, 3.435%, 12/15/25 | $ | 150,000 | $ | 156,768 | |||||||
U.S. Government Agencies and Obligations (85.2%) | |||||||||||
Export-Import Bank of the United States (1.0%) | |||||||||||
DY7 Leasing LLC, 2.578%, 12/10/25 | 229,167 | 229,182 | |||||||||
Export Leasing 2009 LLC, 1.859%, 08/28/21 | 175,427 | 175,269 | |||||||||
Helios Leasing I LLC 1.825%, 05/16/25 | 133,021 | 127,953 | |||||||||
2.018%, 05/29/24 | 210,843 | 206,020 | |||||||||
Union 16 Leasing LLC, 1.863%, 01/22/25 | 216,722 | 209,410 | |||||||||
947,834 | |||||||||||
Federal Farm Credit Bank (0.5%) | |||||||||||
Federal Farm Credit Bank, 2.990%, 02/04/28 | 550,000 | 532,548 | |||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (18.1%) | |||||||||||
1.820%, 08/25/24 (b) | 581,426 | 582,097 | |||||||||
2.370%, 09/25/24 (b) | 500,000 | 488,319 | |||||||||
2.500%, 03/01/28 | 249,897 | 254,708 | |||||||||
2.500%, 04/01/28 | 407,764 | 415,602 | |||||||||
2.550%, 11/21/25 | 200,000 | 189,177 | |||||||||
2.670%, 08/25/24 (b) | 400,000 | 397,907 | |||||||||
3.000%, 08/01/42 | 182,485 | 184,720 | |||||||||
3.000%, 12/01/42 | 358,426 | 362,820 | |||||||||
3.000%, 01/01/43 | 443,723 | 449,166 | |||||||||
3.000%, 02/01/43 | 1,058,482 | 1,072,805 | |||||||||
3.000%, 04/01/43 | 1,347,406 | 1,364,411 | |||||||||
3.500%, 10/01/25 | 228,081 | 242,312 | |||||||||
3.500%, 05/01/32 | 458,262 | 482,434 | |||||||||
3.500%, 01/01/42 | 382,034 | 399,618 | |||||||||
3.500%, 03/01/42 | 1,550,212 | 1,617,689 | |||||||||
3.500%, 08/01/42 | 417,864 | 436,103 | |||||||||
3.500%, 11/01/44 | 1,993,898 | 2,075,416 | |||||||||
4.000%, 09/01/40 | 523,695 | 563,497 | |||||||||
4.000%, 03/01/41 | 622,575 | 670,705 | |||||||||
4.500%, 04/01/23 | 76,600 | 82,979 | |||||||||
4.500%, 09/01/40 | 431,007 | 467,728 | |||||||||
4.500%, 01/01/41 | 636,931 | 694,350 | |||||||||
4.500%, 03/01/41 | 582,909 | 638,418 | |||||||||
5.000%, 03/01/23 | 79,349 | 87,466 | |||||||||
5.000%, 05/01/29 | 83,376 | 92,156 | |||||||||
5.000%, 08/01/35 | 102,426 | 113,272 | |||||||||
5.000%, 11/01/35 | 82,303 | 90,741 | |||||||||
5.000%, 11/01/39 | 901,343 | 1,012,788 | |||||||||
5.000%, 03/01/40 | 564,152 | 635,232 | |||||||||
5.500%, 06/01/20 | 90,710 | 97,917 | |||||||||
5.500%, 10/01/20 | 226,859 | 239,945 |
Principal | Value(a) | ||||||||||
5.500%, 11/01/23 | $ | 202,749 | $ | 226,199 | |||||||
5.500%, 05/01/34 | 286,828 | 323,476 | |||||||||
6.000%, 09/01/22 | 147,501 | 162,442 | |||||||||
6.000%, 11/01/33 | 292,787 | 335,440 | |||||||||
6.250%, 12/15/23 | 136,741 | 150,740 | |||||||||
6.500%, 11/01/32 | 73,503 | 86,394 | |||||||||
17,787,189 | |||||||||||
Federal National Mortgage Association (FNMA) (51.7%) | |||||||||||
2.500%, 03/01/27 | 711,657 | 726,444 | |||||||||
2.500%, 11/01/27 | 345,714 | 351,229 | |||||||||
2.500%, 03/01/28 | 728,408 | 743,163 | |||||||||
3.000%, 09/01/22 | 309,516 | 323,004 | |||||||||
3.000%, 11/01/27 | 349,694 | 364,394 | |||||||||
3.000%, 06/01/28 | 419,486 | 437,909 | |||||||||
3.000%, 03/01/42 | 192,472 | 195,101 | |||||||||
3.000%, 09/01/42 | 255,394 | 258,879 | |||||||||
3.000%, 03/01/43 | 177,858 | 180,287 | |||||||||
3.000%, 04/01/43 | 724,258 | 734,139 | |||||||||
3.000%, 04/01/43 | 1,348,078 | 1,365,995 | |||||||||
3.000%, 05/01/43 | 989,455 | 1,002,415 | |||||||||
3.000%, 09/01/43 | 263,070 | 266,451 | |||||||||
3.000%, 01/01/45 (c) | 280,000 | 283,237 | |||||||||
3.140%, 08/01/15 | 1,500,000 | 1,518,128 | |||||||||
3.500%, 11/01/25 | 123,156 | 130,937 | |||||||||
3.500%, 01/01/26 | 290,834 | 309,282 | |||||||||
3.500%, 01/01/30 (c) | 675,000 | 713,074 | |||||||||
3.500%, 12/01/32 | 401,446 | 423,600 | |||||||||
3.500%, 11/01/40 | 333,553 | 349,339 | |||||||||
3.500%, 01/01/41 | 620,202 | 648,116 | |||||||||
3.500%, 02/01/41 | 1,336,652 | 1,396,176 | |||||||||
3.500%, 11/01/41 | 574,696 | 601,849 | |||||||||
3.500%, 12/01/41 | 1,196,684 | 1,250,041 | |||||||||
3.500%, 01/01/42 | 2,758,872 | 2,881,419 | |||||||||
3.500%, 05/01/42 | 789,303 | 825,094 | |||||||||
3.500%, 08/01/42 | 751,504 | 786,275 | |||||||||
3.500%, 02/01/43 | 881,827 | 924,757 | |||||||||
3.500%, 03/01/43 | 430,942 | 451,395 | |||||||||
3.500%, 05/01/43 | 1,512,766 | 1,581,702 | |||||||||
3.500%, 01/01/45 (c) | 4,670,000 | 4,868,111 | |||||||||
4.000%, 06/25/23 | 290,175 | 306,215 | |||||||||
4.000%, 12/01/40 | 313,085 | 334,677 | |||||||||
4.000%, 04/01/41 | 213,909 | 230,464 | |||||||||
4.000%, 06/01/42 | 1,524,615 | 1,635,356 | |||||||||
4.000%, 09/01/43 | 1,050,954 | 1,123,038 | |||||||||
4.000%, 10/01/43 | 1,858,489 | 2,008,519 | |||||||||
4.000%, 01/01/44 | 423,087 | 457,263 | |||||||||
4.000%, 01/01/45 (c) | 1,450,000 | 1,547,518 | |||||||||
4.500%, 04/01/21 | 7,821 | 8,279 | |||||||||
4.500%, 11/01/23 | 75,550 | 81,988 | |||||||||
4.500%, 04/01/25 | 183,024 | 197,748 | |||||||||
4.500%, 05/01/35 | 455,116 | 496,506 | |||||||||
4.500%, 07/01/35 | 394,143 | 429,507 | |||||||||
4.500%, 09/01/37 | 435,554 | 476,769 | |||||||||
5.000%, 05/01/18 | 134,471 | 141,716 | |||||||||
5.000%, 10/01/20 | 91,892 | 98,754 | |||||||||
5.000%, 06/25/23 | 303,300 | 328,890 | |||||||||
5.000%, 10/25/33 | 21,818 | 22,010 | |||||||||
5.000%, 11/01/33 | 386,926 | 428,619 | |||||||||
5.000%, 03/01/34 | 894,813 | 990,821 | |||||||||
5.000%, 05/01/34 | 93,053 | 103,020 |
See accompanying notes to financial statements.
74
SFT Advantus Mortgage Securities Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
5.000%, 12/01/34 | $ | 80,440 | $ | 89,107 | |||||||
5.000%, 04/01/35 | 126,744 | 140,387 | |||||||||
5.000%, 07/01/35 | 791,989 | 877,061 | |||||||||
5.000%, 03/01/38 | 219,129 | 244,716 | |||||||||
5.000%, 06/01/39 | 331,375 | 373,141 | |||||||||
5.000%, 12/01/39 | 450,225 | 507,896 | |||||||||
5.000%, 06/01/40 | 174,175 | 194,732 | |||||||||
5.000%, 04/01/41 | 332,184 | 373,893 | |||||||||
5.500%, 02/01/18 | 77,542 | 81,929 | |||||||||
5.500%, 03/01/18 | 164,700 | 174,066 | |||||||||
5.500%, 08/01/23 | 124,201 | 138,786 | |||||||||
5.500%, 02/01/24 | 159,291 | 177,997 | |||||||||
5.500%, 04/01/33 | 436,339 | 492,775 | |||||||||
5.500%, 05/01/33 | 34,939 | 39,370 | |||||||||
5.500%, 01/01/34 | 92,476 | 104,240 | |||||||||
5.500%, 02/01/34 | 60,074 | 67,710 | |||||||||
5.500%, 04/01/34 | 145,195 | 163,289 | |||||||||
5.500%, 05/01/34 | 27,736 | 31,246 | |||||||||
5.500%, 09/01/34 | 316,306 | 358,656 | |||||||||
5.500%, 10/01/34 | 141,383 | 159,199 | |||||||||
5.500%, 01/01/35 | 227,480 | 257,120 | |||||||||
5.500%, 02/01/35 | 384,364 | 435,270 | |||||||||
5.500%, 06/01/35 | 23,378 | 26,312 | |||||||||
5.500%, 08/01/35 | 127,143 | 143,331 | |||||||||
5.500%, 10/01/35 | 71,556 | 80,623 | |||||||||
5.500%, 11/01/35 | 23,303 | 26,097 | |||||||||
5.500%, 09/01/36 | 326,810 | 367,596 | |||||||||
5.500%, 05/01/38 | 12,085 | 13,504 | |||||||||
6.000%, 09/01/32 | 30,778 | 35,533 | |||||||||
6.000%, 10/01/32 | 482,750 | 555,390 | |||||||||
6.000%, 11/01/32 | 428,326 | 494,668 | |||||||||
6.000%, 03/01/33 | 492,548 | 568,022 | |||||||||
6.000%, 04/01/33 | 117,358 | 134,704 | |||||||||
6.000%, 12/01/33 | 109,081 | 125,158 | |||||||||
6.000%, 08/01/34 | 105,162 | 120,081 | |||||||||
6.000%, 09/01/34 | 62,759 | 71,624 | |||||||||
6.000%, 11/01/34 | 35,737 | 40,801 | |||||||||
6.000%, 12/01/34 | 297,803 | 340,060 | |||||||||
6.000%, 11/01/36 | 44,910 | 50,863 | |||||||||
6.000%, 01/01/37 | 394,088 | 449,131 | |||||||||
6.000%, 08/01/37 | 95,507 | 108,821 | |||||||||
6.000%, 09/01/37 | 158,713 | 182,342 | |||||||||
6.000%, 12/01/37 | 77,384 | 87,908 | |||||||||
6.000%, 12/01/38 | 147,269 | 166,804 | |||||||||
6.500%, 11/01/23 | 90,828 | 99,625 | |||||||||
6.500%, 02/01/32 | 381,133 | 448,522 | |||||||||
6.500%, 04/01/32 | 126,875 | 146,659 | |||||||||
6.500%, 05/01/32 | 45,588 | 53,697 | |||||||||
6.500%, 07/01/32 | 484,440 | 560,611 | |||||||||
6.500%, 09/01/32 | 3,794 | 4,320 | |||||||||
6.500%, 09/01/34 | 24,452 | 27,876 | |||||||||
6.500%, 11/01/34 | 17,432 | 20,760 | |||||||||
6.500%, 03/01/35 | 195,721 | 229,643 | |||||||||
6.500%, 02/01/36 | 39,875 | 45,411 | |||||||||
6.500%, 09/01/37 | 265,176 | 317,640 | |||||||||
7.000%, 09/01/31 | 178,169 | 205,919 | |||||||||
7.000%, 11/01/31 | 33,562 | 39,817 | |||||||||
7.000%, 02/01/32 | 134,753 | 161,217 | |||||||||
7.000%, 07/01/32 | 20,691 | 23,879 | |||||||||
7.000%, 10/01/37 | 17,117 | 18,385 | |||||||||
7.500%, 07/25/22 | 194,369 | 218,584 | |||||||||
7.500%, 04/01/31 | 60,465 | 70,292 | |||||||||
50,704,435 |
Principal | Value(a) | ||||||||||
Government National Mortgage Association (GNMA) (13.5%) | |||||||||||
0.000%, 03/16/42 (b) (d) (e) | $ | 1,268,746 | $ | 13 | |||||||
0.362%, 03/16/34 (b) (d) | 276,913 | 80 | |||||||||
0.362%, 06/17/45 (b) (d) | 1,233,536 | 13,202 | |||||||||
0.643%, 07/16/40 (b) (d) | 330,712 | 3,718 | |||||||||
3.000%, 09/20/42 | 826,840 | 846,547 | |||||||||
3.000%, 09/20/44 | 296,978 | 304,098 | |||||||||
3.000%, 01/01/45 (c) | 3,000,000 | 3,067,875 | |||||||||
3.250%, 04/20/33 | 240,462 | 244,521 | |||||||||
3.500%, 11/15/40 | 168,240 | 176,862 | |||||||||
3.500%, 10/20/43 | 678,035 | 712,490 | |||||||||
4.000%, 07/20/31 | 637,435 | 674,232 | |||||||||
4.000%, 12/20/40 | 1,431,332 | 1,557,697 | |||||||||
4.000%, 01/15/41 | 122,270 | 131,293 | |||||||||
4.000%, 02/15/41 | 718,277 | 780,777 | |||||||||
4.000%, 10/15/41 | 650,713 | 703,607 | |||||||||
4.500%, 06/15/40 | 542,417 | 603,068 | |||||||||
5.000%, 05/15/33 | 190,182 | 211,369 | |||||||||
5.000%, 12/15/39 | 135,902 | 151,380 | |||||||||
5.000%, 01/15/40 | 1,365,269 | 1,516,311 | |||||||||
5.000%, 07/15/40 | 975,143 | 1,078,875 | |||||||||
5.500%, 07/15/38 | 202,307 | 225,946 | |||||||||
5.500%, 10/15/38 | 248,096 | 282,859 | |||||||||
13,286,820 | |||||||||||
U.S. Treasury (0.3%) | |||||||||||
U.S. Treasury Note 0.500%, 08/31/16 (f) | 200,000 | 199,922 | |||||||||
0.875%, 05/15/17 | 100,000 | 100,054 | |||||||||
299,976 | |||||||||||
Vendee Mortgage Trust (0.1%) | |||||||||||
Vendee Mortgage Trust, 7.793%, 02/15/25 | 99,397 | 111,235 | |||||||||
Total government obligations (cost: $81,908,088) | 83,826,805 | ||||||||||
Asset-Backed Securities (4.5%) | |||||||||||
ABFS Mortgage Loan Trust, 7.490%, 12/25/31 (g) | 161,012 | 142,944 | |||||||||
Ally Auto Receivables Trust, 2.900%, 05/15/17 (h) | 140,000 | 140,120 | |||||||||
Appalachian Consumer Rate Relief Funding LLC, 3.772%, 08/01/31 | 120,000 | 128,922 | |||||||||
Carmax Auto Owner Trust, 2.060%, 11/15/19 | 250,000 | 247,222 | |||||||||
Consumers 2014 Securitization Funding LLC, 2.962%, 11/01/25 | 390,000 | 395,726 | |||||||||
CountryPlace Manufactured Housing Contract Trust, 4.800%, 12/15/35 (b) (e) (h) | 283,824 | 289,745 | |||||||||
Credit-Based Asset Servicing and Securitization LLC, 5.574%, 10/25/36 (g) (h) | 505,000 | 544,934 | |||||||||
Entergy Gulf States Reconstruction Funding 1 LLC, 5.930%, 06/29/22 | 500,000 | 582,270 | |||||||||
FAN Engine Securitization, Ltd., 3.000%, 10/15/19 (e) (h) (i) (j) | 176,687 | 178,834 |
See accompanying notes to financial statements.
75
SFT Advantus Mortgage Securities Fund
Investments in Securities – continued
Principal | Value(a) | ||||||||||
FirstEnergy Ohio PIRB Special Purpose Trust, 1.726%, 01/15/22 | $ | 200,000 | $ | 199,187 | |||||||
Huntington Auto Trust, 1.370%, 05/15/18 | 165,000 | 165,998 | |||||||||
Origen Manufactured Housing 5.460%, 11/15/35 (b) | 321,896 | 329,499 | |||||||||
5.910%, 01/15/37 | 550,000 | 579,768 | |||||||||
Trip Rail Master Funding LLC, 2.863%, 04/15/44 (h) | 472,697 | 469,603 | |||||||||
Vanderbilt Mortgage Finance, 6.210%, 05/07/26 | 43,755 | 44,638 | |||||||||
Total asset-backed securities (cost: $4,406,537) | 4,439,410 | ||||||||||
Other Mortgage-Backed Securities (5.9%) | |||||||||||
Collateralized Mortgage Obligations/ Mortgage Revenue Bonds (0.3%) | |||||||||||
Bear Stearns Mortgage Securities, Inc., 8.000%, 11/25/29 (j) | 213,214 | 199,126 | |||||||||
BHN I Mortgage Fund 1.000%, 03/25/15 (b) (e) (h) (i) (j) (k) | 10,000 | — | |||||||||
7.540%, 05/31/17 (e) (h) (i) (j) (k) | 425 | — | |||||||||
7.916%, 07/01/15 (e) (h) (i) (j) (k) | 50,980 | — | |||||||||
Prudential Home Mortgage Securities 7.900%, 04/28/22 (h) | 35,974 | 32,360 | |||||||||
7.920%, 09/28/24 (b) (h) | 2,362 | 1,995 | |||||||||
Structured Asset Mortgage Investments, Inc., 2.405%, 05/02/30 (b) (j) | 12,188 | 3,674 | |||||||||
237,155 | |||||||||||
Commercial Mortgage-Backed Securities (5.6%) | |||||||||||
7 WTC Depositor LLC Trust, 4.082%, 03/13/31 (h) | 320,326 | 329,048 | |||||||||
Banc of America Re-Remic Trust, 4.185%, 08/15/46 (b) (h) | 930,000 | 1,007,369 | |||||||||
Citigroup Commercial Mortgage Trust, 2.911%, 01/12/30 (b) (h) | 130,000 | 130,333 | |||||||||
CSMC Mortgage Trust, 1.705%, 04/15/27 (b) (h) | 665,000 | 665,003 | |||||||||
Extended Stay America Trust, 2.295%, 12/05/31 (h) | 300,000 | 296,226 | |||||||||
Hometown Commercial Mortgage, 5.506%, 11/11/38 (e) (h) | 374,023 | 312,788 | |||||||||
Irvine Core Office Trust, 2.068%, 05/15/48 (h) | 430,697 | 425,280 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. 1.939%, 12/05/27 (b) (d) (e) (h) | 3,544,151 | 297,886 | |||||||||
7.151%, 12/05/27 (h) | 125,000 | 151,195 |
Shares/ Principal | Value(a) | ||||||||||
Morgan Stanley Capital I Trust, 3.451%, 08/05/34 (h) | $ | 150,000 | $ | 152,129 | |||||||
Multi Security Asset Trust 5.270%, 11/28/35 (e) (h) | 375,000 | 379,114 | |||||||||
5.880%, 11/28/35 (b) (e) (h) | 990,000 | 968,395 | |||||||||
TimberStar Trust, 5.668%, 10/15/36 (h) | 350,000 | 372,601 | |||||||||
5,487,367 | |||||||||||
Total other mortgage-backed securities (cost: $5,841,248) | 5,724,522 | ||||||||||
Corporate Obligations (1.1%) | |||||||||||
Communications (0.2%) | |||||||||||
Telecommunication (0.2%) | |||||||||||
SBA Tower Trust, 2.240%, 04/16/18 (h) | 220,000 | 217,984 | |||||||||
Financial (0.9%) | |||||||||||
Real Estate Investment Trust — Office Property (0.5%) | |||||||||||
ARC Properties Operating Partnership LP, 4.600%, 02/06/24 | 500,000 | 461,271 | |||||||||
Real Estate Investment Trust — Shopping Centers (0.4%) | |||||||||||
Retail Opportunity Investments Partnership L.P., 4.000%, 12/15/24 | 400,000 | 400,831 | |||||||||
Total corporate obligations (cost: $1,102,030) | 1,080,086 | ||||||||||
Total long-term debt securities (cost: $93,257,903) | 95,070,823 | ||||||||||
Short-Term Securities (13.4%) | |||||||||||
Investment Companies (13.4%) | |||||||||||
Dreyfus Treasury Cash Management Fund, current rate 0.010% (l) | 5,363,134 | 5,363,134 | |||||||||
STIT-Government & Agency Portfolio, current rate 0.010% (l) | 7,800,000 | 7,800,000 | |||||||||
Total short-term securities (cost: $13,163,134) | 13,163,134 | ||||||||||
Total investments in securities (cost: $106,421,037) (m) | 108,233,957 | ||||||||||
Liabilities in excess of cash and other assets (-10.3%) | (10,072,786 | ) | |||||||||
Total net assets (100.0%) | $ | 98,161,171 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Variable rate security.
(c) Security is issued on a when-issued or forward commitment basis. As of December 31, 2014 the total cost of investments issued on a when-issued or forward commitment basis was $10,422,289.
See accompanying notes to financial statements.
76
SFT Advantus Mortgage Securities Fund
Investments in Securities – continued
(d) Interest-only security that entitles holders to receive only interest on the underlying mortgages. The principal amount of the underlying pool represents the notional amount on which current interest is calculated. The yield to maturity of an interest-only security is sensitive to the rate of principal payments on the underlying mortgage assets. The rate disclosed represents the market yield based upon the current cost basis and estimated timing and amount of future cash flows.
(e) Illiquid security. (See Note 5.)
(f) Fully or partially pledged as initial margin deposits on open futures contracts.
Holdings of Open Futures Contracts
On December 31, 2014, securities with an aggregate market value of $99,961 have been pledged to cover margin requirements for the following open futures contracts:
Type | Expiration | Number of Contracts | Position Type | Unrealized Appreciation/ (Depreciation) | |||||||||||||||
10 Year U.S. Treasury Note | March 2015 | 24 | Long | $ | 22,451 | ||||||||||||||
24 | $ | 22,451 |
(g) Step rate security.
(h) Security sold within terms of a private placement memorandum exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program. This security has been determined to be liquid unless otherwise indicated.
(i) Foreign security: The Fund held 0.2% of net assets in foreign securities at December 31, 2014.
(j) These securities are being fair-valued according to procedures approved by the Board of Trustees.
(k) Security is in default with respect to interest payments. Income is not being accrued on this security and any payments received are treated as a reduction of principal.
(l) All or a portion of the security segregated to cover when-issued purchase commitments outstanding or extended settlement trades as of December 31, 2014.
(m) At December 31, 2014 the cost of securities for federal income tax purposes was $107,007,961. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 2,625,897 | |||||
Gross unrealized depreciation | (1,399,901 | ) | |||||
Net unrealized appreciation | $ | 1,225,996 |
See accompanying notes to financial statements.
77
SFT Advantus Real Estate Securities Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (99.0%) | |||||||||||
Consumer Discretionary (1.8%) | |||||||||||
Hotels, Restaurants & Leisure (1.8%) | |||||||||||
Hilton Worldwide Holdings, Inc. (b) | 42,300 | $ | 1,103,607 | ||||||||
Hyatt Hotels Corp. – Class A (b) | 23,800 | 1,432,998 | |||||||||
2,536,605 | |||||||||||
Financial (97.2%) | |||||||||||
Diversified REITs (5.6%) | |||||||||||
Cousins Properties, Inc. | 136,200 | 1,555,404 | |||||||||
Vornado Realty Trust | 56,386 | 6,637,196 | |||||||||
8,192,600 | |||||||||||
Industrial REITs (4.7%) | |||||||||||
DCT Industrial Trust, Inc. | 42,875 | 1,528,923 | |||||||||
EastGroup Properties, Inc. | 19,395 | 1,228,091 | |||||||||
ProLogis, Inc. | 98,381 | 4,233,334 | |||||||||
6,990,348 | |||||||||||
Office REITs (16.4%) | |||||||||||
Alexandria Real Estate Equities, Inc. | 48,100 | 4,268,394 | |||||||||
BioMed Realty Trust, Inc. | 59,600 | 1,283,784 | |||||||||
Boston Properties, Inc. | 58,783 | 7,564,784 | |||||||||
Duke Realty Corp. | 185,800 | 3,753,160 | |||||||||
Kilroy Realty Corp. | 19,336 | 1,335,538 | |||||||||
Paramount Group, Inc. (b) | 40,500 | 752,895 | |||||||||
Parkway Properties, Inc. | 52,200 | 959,958 | |||||||||
SL Green Realty Corp. | 35,071 | 4,174,150 | |||||||||
24,092,663 | |||||||||||
Residential REITs (19.1%) | |||||||||||
American Campus Communities, Inc. | 43,600 | 1,803,296 | |||||||||
AvalonBay Communities, Inc. | 41,426 | 6,768,594 | |||||||||
Camden Property Trust | 51,500 | 3,802,760 | |||||||||
Equity Residential | 92,700 | 6,659,568 | |||||||||
Essex Property Trust, Inc. | 26,216 | 5,416,225 | |||||||||
Mid-America Apartment Communities, Inc. | 6,604 | 493,187 | |||||||||
UDR, Inc. | 101,000 | 3,112,820 | |||||||||
28,056,450 | |||||||||||
Retail REITs (26.2%) | |||||||||||
Acadia Realty Trust | 64,936 | 2,079,900 | |||||||||
DDR Corp. | 167,300 | 3,071,628 | |||||||||
Federal Realty Investment Trust | 24,200 | 3,229,732 | |||||||||
General Growth Properties, Inc. | 167,500 | 4,711,775 | |||||||||
Kimco Realty Corp. | 107,800 | 2,710,092 | |||||||||
Kite Realty Group Trust | 113,750 | 3,269,175 | |||||||||
Regency Centers Corp. | 33,700 | 2,149,386 | |||||||||
Simon Property Group, Inc. | 77,079 | 14,036,857 | |||||||||
The Macerich Co. | 38,300 | 3,194,603 | |||||||||
38,453,148 |
Shares | Value(a) | ||||||||||
Specialized REITs (25.2%) | |||||||||||
CubeSmart | 54,221 | $ | 1,196,658 | ||||||||
Extra Space Storage, Inc. | 59,900 | 3,512,536 | |||||||||
HCP, Inc. | 35,200 | 1,549,856 | |||||||||
Health Care REIT, Inc. | 64,000 | 4,842,880 | |||||||||
Healthcare Trust of America, Inc. – Class A | 25,000 | 673,500 | |||||||||
Host Hotels & Resorts, Inc. | 149,746 | 3,559,462 | |||||||||
LaSalle Hotel Properties | 61,801 | 2,501,087 | |||||||||
Pebblebrook Hotel Trust | 64,300 | 2,934,009 | |||||||||
Public Storage | 30,900 | 5,711,865 | |||||||||
RLJ Lodging Trust | 88,500 | 2,967,405 | |||||||||
Strategic Hotels & Resorts, Inc. (b) | 150,900 | 1,996,407 | |||||||||
Ventas, Inc. | 77,696 | 5,570,803 | |||||||||
37,016,468 | |||||||||||
Total common stocks (cost: $114,014,643) | 145,338,282 | ||||||||||
Short-Term Securities (0.5%) | |||||||||||
Investment Companies (0.5%) | |||||||||||
Wells Fargo Advantage Treasury Plus Money Market Fund, current rate 0.010% | 798,888 | 798,888 | |||||||||
Total short-term securities (cost: $798,888) | 798,888 | ||||||||||
Total investments in securities (cost: $114,813,531) (c) | 146,137,170 | ||||||||||
Cash and other assets in excess of liabilities (0.5%) | 742,506 | ||||||||||
Total net assets (100.0%) | $ | 146,879,676 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Non-income producing security.
(c) At December 31, 2014 the cost of securities for federal income tax purposes was $115,619,689. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 30,803,036 | |||||
Gross unrealized depreciation | (285,555 | ) | |||||
Net unrealized appreciation | $ | 30,517,481 |
See accompanying notes to financial statements.
78
SFT Ivy® Growth Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.4%) | |||||||||||
Consumer Discretionary (24.3%) | |||||||||||
Automobiles (1.9%) | |||||||||||
Harley-Davidson, Inc. | 141,480 | $ | 9,324,947 | ||||||||
Hotels, Restaurants & Leisure (3.8%) | |||||||||||
Hilton Worldwide Holdings, Inc. (b) | 351,200 | 9,162,808 | |||||||||
Las Vegas Sands Corp. | 62,700 | 3,646,632 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 43,600 | 3,534,652 | |||||||||
Wynn Resorts, Ltd. | 18,500 | 2,752,060 | |||||||||
19,096,152 | |||||||||||
Household Durables (2.1%) | |||||||||||
Harman International Industries, Inc. | 96,800 | 10,329,528 | |||||||||
Internet & Catalog Retail (2.9%) | |||||||||||
Amazon.com, Inc. (b) | 26,100 | 8,100,135 | |||||||||
The Priceline Group, Inc. (b) | 5,800 | 6,613,218 | |||||||||
14,713,353 | |||||||||||
Media (3.1%) | |||||||||||
CBS Corp. – Class B | 95,900 | 5,307,106 | |||||||||
Comcast Corp. – Class A | 176,300 | 10,227,163 | |||||||||
15,534,269 | |||||||||||
Specialty Retail (8.2%) | |||||||||||
AutoZone, Inc. (b) | 9,400 | 5,819,634 | |||||||||
L Brands, Inc. | 66,900 | 5,790,195 | |||||||||
O'Reilly Automotive, Inc. (b) | 36,900 | 7,107,678 | |||||||||
The Home Depot, Inc. | 167,700 | 17,603,469 | |||||||||
Ulta Salon Cosmetics & Fragrance, Inc. (b) | 39,300 | 5,024,112 | |||||||||
41,345,088 | |||||||||||
Textiles, Apparel & Luxury Goods (2.3%) | |||||||||||
NIKE, Inc. – Class B | 85,900 | 8,259,285 | |||||||||
Under Armour, Inc. – Class A (b) | 45,500 | 3,089,450 | |||||||||
11,348,735 | |||||||||||
Consumer Staples (3.1%) | |||||||||||
Beverages (2.1%) | |||||||||||
Anheuser-Busch InBev NV , ADR (c) | 96,500 | 10,838,880 | |||||||||
Tobacco (1.0%) | |||||||||||
Philip Morris International, Inc. | 59,600 | 4,854,420 | |||||||||
Energy (2.4%) | |||||||||||
Energy Equipment & Services (1.5%) | |||||||||||
Schlumberger, Ltd. | 90,400 | 7,721,064 | |||||||||
Oil, Gas & Consumable Fuels (0.9%) | |||||||||||
EOG Resources, Inc. | 47,300 | 4,354,911 | |||||||||
Financial (1.5%) | |||||||||||
Specialized REITs (1.5%) | |||||||||||
American Tower Corp. | 74,800 | 7,393,980 |
Shares | Value(a) | �� | |||||||||
Health Care (22.5%) | |||||||||||
Biotechnology (13.2%) | |||||||||||
Alexion Pharmaceuticals, Inc. (b) | 13,300 | $ | 2,460,899 | ||||||||
Amgen, Inc. | 44,000 | 7,008,760 | |||||||||
Biogen Idec, Inc. (b) | 59,800 | 20,299,110 | |||||||||
Celgene Corp. (b) | 145,000 | 16,219,700 | |||||||||
Gilead Sciences, Inc. (b) | 214,700 | 20,237,622 | |||||||||
66,226,091 | |||||||||||
Health Care Providers & Services (3.0%) | |||||||||||
HCA Holdings, Inc. (b) | 204,900 | 15,037,611 | |||||||||
Pharmaceuticals (6.3%) | |||||||||||
Actavis PLC (b) | 19,800 | 5,096,718 | |||||||||
Allergan, Inc. | 53,200 | 11,309,788 | |||||||||
Bristol-Myers Squibb Co. | 135,500 | 7,998,565 | |||||||||
Johnson & Johnson | 66,000 | 6,901,620 | |||||||||
31,306,691 | |||||||||||
Industrials (12.8%) | |||||||||||
Aerospace & Defense (4.3%) | |||||||||||
Precision Castparts Corp. | 41,700 | 10,044,696 | |||||||||
The Boeing Co. | 88,100 | 11,451,238 | |||||||||
21,495,934 | |||||||||||
Industrial Conglomerates (0.8%) | |||||||||||
Danaher Corp. | 46,600 | 3,994,086 | |||||||||
Road & Rail (7.7%) | |||||||||||
Canadian Pacific Railway, Ltd. (c) | 82,900 | 15,974,001 | |||||||||
Kansas City Southern | 56,400 | 6,882,492 | |||||||||
Union Pacific Corp. | 130,900 | 15,594,117 | |||||||||
38,450,610 | |||||||||||
Information Technology (28.9%) | |||||||||||
Computers & Peripherals (5.2%) | |||||||||||
Apple, Inc. | 234,788 | 25,915,900 | |||||||||
Internet Software & Services (7.6%) | |||||||||||
Facebook, Inc. – Class A (b) | 178,900 | 13,957,778 | |||||||||
Google, Inc. – Class A (b) | 13,800 | 7,323,108 | |||||||||
Google, Inc. – Class C (b) | 17,100 | 9,001,440 | |||||||||
LinkedIn Corp. – Class A (b) | 21,000 | 4,823,910 | |||||||||
Twitter, Inc. (b) | 80,900 | 2,901,883 | |||||||||
38,008,119 | |||||||||||
IT Services (9.8%) | |||||||||||
Cognizant Technology Solutions Corp. – Class A (b) | 142,100 | 7,482,986 | |||||||||
FleetCor Technologies, Inc. (b) | 20,400 | 3,033,684 | |||||||||
Mastercard, Inc. – Class A | 262,300 | 22,599,768 | |||||||||
Visa, Inc. – Class A | 61,300 | 16,072,860 | |||||||||
49,189,298 | |||||||||||
Semiconductors & Semiconductor Equipment (4.8%) | |||||||||||
Applied Materials, Inc. | 544,000 | 13,556,480 | |||||||||
Lam Research Corp. | 31,600 | 2,507,144 | |||||||||
NXP Semiconductor NV (b) (c) | 103,510 | 7,908,164 | |||||||||
23,971,788 |
See accompanying notes to financial statements.
79
SFT Ivy® Growth Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Software (1.5%) | |||||||||||
Adobe Systems, Inc. (b) | 106,100 | $ | 7,713,470 | ||||||||
Materials (1.2%) | |||||||||||
Chemicals (1.2%) | |||||||||||
PPG Industries, Inc. | 25,500 | 5,894,325 | |||||||||
Telecommunication Services (0.7%) | |||||||||||
Wireless Telecommunication Services (0.7%) | |||||||||||
SBA Communications Corp. – Class A (b) | 33,700 | 3,732,612 | |||||||||
Total common stocks (cost: $427,563,531) | 487,791,862 | ||||||||||
Short-Term Securities (2.9%) | |||||||||||
Investment Companies (2.9%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.000% | 14,520,564 | 14,520,564 | |||||||||
Total short-term securities (cost: $14,520,564) | 14,520,564 | ||||||||||
Total investments in securities (cost: $442,084,095) (d) | 502,312,426 | ||||||||||
Liabilities in excess of cash and other assets (-0.3%) | (1,737,738 | ) | |||||||||
Total net assets (100.0%) | $ | 500,574,688 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Non-income producing security.
(c) Foreign security: The Fund held 6.9% of net assets in foreign securities at December 31, 2014.
(d) At December 31, 2014 the cost of securities for federal income tax purposes was $442,099,561. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 67,845,723 | |||||
Gross unrealized depreciation | (7,632,858 | ) | |||||
Net unrealized appreciation | $ | 60,212,865 |
See accompanying notes to financial statements.
80
SFT Ivy® Small Cap Growth Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (97.2%) | |||||||||||
Consumer Discretionary (11.6%) | |||||||||||
Hotels, Restaurants & Leisure (6.7%) | |||||||||||
Krispy Kreme Doughnuts, Inc. (b) | 263,800 | $ | 5,207,412 | ||||||||
Panera Bread Co. – Class A (b) | 40,700 | 7,114,360 | |||||||||
12,321,772 | |||||||||||
Household Durables (1.0%) | |||||||||||
Harman International Industries, Inc. | 16,800 | 1,792,728 | |||||||||
Specialty Retail (3.9%) | |||||||||||
Five Below, Inc. (b) | 127,500 | 5,205,825 | |||||||||
Zumiez, Inc. (b) | 47,900 | 1,850,377 | |||||||||
7,056,202 | |||||||||||
Consumer Staples (3.0%) | |||||||||||
Food Products (3.0%) | |||||||||||
The Hain Celestial Group, Inc. (b) | 94,000 | 5,479,260 | |||||||||
Energy (3.0%) | |||||||||||
Energy Equipment & Services (3.0%) | |||||||||||
Dril-Quip, Inc. (b) | 44,700 | 3,429,831 | |||||||||
Helix Energy Solutions Group, Inc. (b) | 93,600 | 2,031,120 | |||||||||
5,460,951 | |||||||||||
Financial (8.0%) | |||||||||||
Capital Markets (3.5%) | |||||||||||
Financial Engines, Inc. | 89,100 | 3,256,605 | |||||||||
HFF, Inc. – Class A | 85,900 | 3,085,528 | |||||||||
6,342,133 | |||||||||||
Consumer Finance (4.5%) | |||||||||||
PRA Group, Inc. (b) | 141,000 | 8,168,130 | |||||||||
Health Care (20.2%) | |||||||||||
Health Care Equipment & Supplies (12.4%) | |||||||||||
Cyberonics, Inc. (b) | 112,600 | 6,269,568 | |||||||||
DexCom, Inc. (b) | 142,800 | 7,861,140 | |||||||||
LDR Holding Corp. (b) | 110,500 | 3,622,190 | |||||||||
Novadaq Technologies, Inc. (b) (c) | 125,600 | 2,087,472 | |||||||||
The Spectranetics Corp. (b) | 81,500 | 2,818,270 | |||||||||
22,658,640 | |||||||||||
Health Care Providers & Services (4.4%) | |||||||||||
Acadia Healthcare Co., Inc. (b) | 50,100 | 3,066,621 | |||||||||
ExamWorks Group, Inc. (b) | 119,700 | 4,978,323 | |||||||||
8,044,944 | |||||||||||
Health Care Technology (3.4%) | |||||||||||
Medidata Solutions, Inc. (b) | 67,600 | 3,227,900 | |||||||||
Veeva Systems, Inc. – Class A (b) | 109,600 | 2,894,536 | |||||||||
6,122,436 | |||||||||||
Industrials (22.8%) | |||||||||||
Aerospace & Defense (2.5%) | |||||||||||
Hexcel Corp. (b) | 108,300 | 4,493,367 |
Shares | Value(a) | ||||||||||
Building Products (2.5%) | |||||||||||
Apogee Enterprises, Inc. | 44,300 | $ | 1,876,991 | ||||||||
Trex Co., Inc. (b) | 64,186 | 2,733,040 | |||||||||
4,610,031 | |||||||||||
Commercial Services & Supplies (1.6%) | |||||||||||
Healthcare Services Group, Inc. | 94,500 | 2,922,885 | |||||||||
Electrical Equipment (2.2%) | |||||||||||
Acuity Brands, Inc. | 28,500 | 3,991,995 | |||||||||
Machinery (9.4%) | |||||||||||
RBC Bearings, Inc. | 45,431 | 2,931,662 | |||||||||
Tennant Co. | 52,100 | 3,760,057 | |||||||||
The Middleby Corp. (b) | 51,900 | 5,143,290 | |||||||||
The Toro Co. | 84,800 | 5,411,088 | |||||||||
17,246,097 | |||||||||||
Professional Services (1.8%) | |||||||||||
WageWorks, Inc. (b) | 49,800 | 3,215,586 | |||||||||
Trading Companies & Distributors (2.8%) | |||||||||||
Rush Enterprises, Inc. – Class A (b) | 78,000 | 2,499,900 | |||||||||
Watsco, Inc. | 24,000 | 2,568,000 | |||||||||
5,067,900 | |||||||||||
Information Technology (28.6%) | |||||||||||
Electronic Equipment, Instruments & Components (4.9%) | |||||||||||
Cognex Corp. (b) | 92,900 | 3,839,557 | |||||||||
FEI Co. | 57,400 | 5,186,090 | |||||||||
9,025,647 | |||||||||||
Internet Software & Services (4.7%) | |||||||||||
Amber Road, Inc. (b) | 112,400 | 1,148,728 | |||||||||
Cornerstone OnDemand, Inc. (b) | 74,400 | 2,618,880 | |||||||||
Xoom Corp. (b) | 270,500 | 4,736,455 | |||||||||
8,504,063 | |||||||||||
IT Services (4.5%) | |||||||||||
EVERTEC, Inc. | 81,500 | 1,803,595 | |||||||||
Virtusa Corp. (b) | 154,153 | 6,423,555 | |||||||||
8,227,150 | |||||||||||
Software (14.5%) | |||||||||||
Factset Research Systems, Inc. | 23,500 | 3,307,625 | |||||||||
Guidewire Software, Inc. (b) | 80,000 | 4,050,400 | |||||||||
Manhattan Associates, Inc. (b) | 54,900 | 2,235,528 | |||||||||
Monotype Imaging Holdings, Inc. | 74,400 | 2,144,952 | |||||||||
Proofpoint, Inc. (b) | 47,200 | 2,276,456 | |||||||||
The Ultimate Software Group, Inc. (b) | 37,000 | 5,432,155 | |||||||||
Tyler Technologies, Inc. (b) | 63,900 | 6,993,216 | |||||||||
26,440,332 | |||||||||||
Total common stocks (cost: $162,249,910) | 177,192,249 |
See accompanying notes to financial statements.
81
SFT Ivy® Small Cap Growth Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Short-Term Securities (3.3%) | |||||||||||
Investment Companies (3.3%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.000% | 5,936,232 | $ | 5,936,232 | ||||||||
Total short-term securities (cost: $5,936,232) | 5,936,232 | ||||||||||
Total investments in securities (cost: $168,186,142) (d) | 183,128,481 | ||||||||||
Liabilities in excess of cash and other assets (-0.5%) | (844,233 | ) | |||||||||
Total net assets (100.0%) | $ | 182,284,248 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Non-income producing security.
(c) Foreign security: The Fund held 1.1% of net assets in foreign securities at December 31, 2014.
(d) At December 31, 2014 the cost of securities for federal income tax purposes was $168,357,926. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 20,236,339 | |||||
Gross unrealized depreciation | (5,465,784 | ) | |||||
Net unrealized appreciation | $ | 14,770,555 |
See accompanying notes to financial statements.
82
SFT Pyramis® Core Equity Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (98.8%) | |||||||||||
Consumer Discretionary (13.0%) | |||||||||||
Auto Components (1.2%) | |||||||||||
Delphi Automotive PLC (b) | 22,810 | $ | 1,658,743 | ||||||||
Hotels, Restaurants & Leisure (1.1%) | |||||||||||
Starbucks Corp. | 18,990 | 1,558,130 | |||||||||
Household Durables (0.8%) | |||||||||||
Mohawk Industries, Inc. (c) | 7,320 | 1,137,235 | |||||||||
Media (7.0%) | |||||||||||
Comcast Corp. – Class A | 58,930 | 3,418,529 | |||||||||
McGraw Hill Financial, Inc. | 16,700 | 1,485,966 | |||||||||
Time Warner, Inc. | 30,710 | 2,623,248 | |||||||||
Twenty-First Century Fox, Inc. – Class A | 61,540 | 2,363,444 | |||||||||
9,891,187 | |||||||||||
Multiline Retail (0.9%) | |||||||||||
Dollar General Corp. (c) | 18,270 | 1,291,689 | |||||||||
Specialty Retail (1.2%) | |||||||||||
The Home Depot, Inc. | 16,470 | 1,728,856 | |||||||||
Textiles, Apparel & Luxury Goods (0.8%) | |||||||||||
Michael Kors Holdings, Ltd. (b) (c) | 16,000 | 1,201,600 | |||||||||
Consumer Staples (9.7%) | |||||||||||
Beverages (2.9%) | |||||||||||
Constellation Brands, Inc. – Class A (c) | 15,980 | 1,568,757 | |||||||||
The Coca-Cola Co. | 60,680 | 2,561,909 | |||||||||
4,130,666 | |||||||||||
Food & Staples Retailing (2.8%) | |||||||||||
CVS Health Corp. | 22,260 | 2,143,861 | |||||||||
The Kroger Co. | 29,100 | 1,868,511 | |||||||||
4,012,372 | |||||||||||
Food Products (1.2%) | |||||||||||
Mondelez International, Inc. – Class A | 45,230 | 1,642,980 | |||||||||
Household Products (1.0%) | |||||||||||
The Procter & Gamble Co. | 15,690 | 1,429,202 | |||||||||
Personal Care (1.0%) | |||||||||||
The Estee Lauder Cos., Inc. – Class A | 19,260 | 1,467,612 | |||||||||
Tobacco (0.8%) | |||||||||||
Lorillard, Inc. | 18,000 | 1,132,920 | |||||||||
Energy (8.1%) | |||||||||||
Energy Equipment & Services (2.4%) | |||||||||||
FMC Technologies, Inc. (c) | 16,530 | 774,265 | |||||||||
National Oilwell Varco, Inc. | 8,810 | 577,319 | |||||||||
Schlumberger, Ltd. | 25,090 | 2,142,937 | |||||||||
3,494,521 |
Shares | Value(a) | ||||||||||
Oil, Gas & Consumable Fuels (5.7%) | |||||||||||
Chevron Corp. | 35,920 | $ | 4,029,506 | ||||||||
EQT Corp. | 18,660 | 1,412,562 | |||||||||
Hess Corp. | 9,220 | 680,620 | |||||||||
Marathon Petroleum Corp. | 13,550 | 1,223,023 | |||||||||
Occidental Petroleum Corp. | 8,670 | 698,889 | |||||||||
8,044,600 | |||||||||||
Financial (15.3%) | |||||||||||
Capital Markets (1.6%) | |||||||||||
Invesco, Ltd. | 27,220 | 1,075,734 | |||||||||
State Street Corp. | 15,890 | 1,247,365 | |||||||||
2,323,099 | |||||||||||
Commercial Banks (6.9%) | |||||||||||
Bank of America Corp. | 205,490 | 3,676,216 | |||||||||
Citigroup, Inc. | 69,970 | 3,786,077 | |||||||||
JPMorgan Chase & Co. | 11,140 | 697,141 | |||||||||
M&T Bank Corp. | 6,560 | 824,067 | |||||||||
Regions Financial Corp. | 75,320 | 795,379 | |||||||||
9,778,880 | |||||||||||
Consumer Finance (1.6%) | |||||||||||
Capital One Financial Corp. | 28,180 | 2,326,259 | |||||||||
Insurance (2.7%) | |||||||||||
American International Group, Inc. | 42,410 | 2,375,384 | |||||||||
MetLife, Inc. | 27,140 | 1,468,003 | |||||||||
3,843,387 | |||||||||||
Office REITs (1.2%) | |||||||||||
Boston Properties, Inc. | 13,040 | 1,678,118 | |||||||||
Real Estate Services (1.3%) | |||||||||||
CBRE Group, Inc. – Class A (c) | 52,270 | 1,790,247 | |||||||||
Health Care (14.3%) | |||||||||||
Biotechnology (3.7%) | |||||||||||
BioMarin Pharmaceutical, Inc. (c) | 27,190 | 2,457,976 | |||||||||
Medivation, Inc. (c) | 11,330 | 1,128,581 | |||||||||
Vertex Pharmaceuticals, Inc. (c) | 13,960 | 1,658,448 | |||||||||
5,245,005 | |||||||||||
Health Care Equipment & Supplies (1.3%) | |||||||||||
Medtronic, Inc. | 26,260 | 1,895,972 | |||||||||
Health Care Providers & Services (2.9%) | |||||||||||
Catamaran Corp. (b) (c) | 20,900 | 1,081,575 | |||||||||
HCA Holdings, Inc. (c) | 19,130 | 1,403,951 | |||||||||
McKesson Corp. | 7,580 | 1,573,456 | |||||||||
4,058,982 | |||||||||||
Life Sciences Tools & Services (0.5%) | |||||||||||
Agilent Technologies, Inc. | 17,020 | 696,799 |
See accompanying notes to financial statements.
83
SFT Pyramis® Core Equity Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Pharmaceuticals (5.9%) | |||||||||||
Bristol-Myers Squibb Co. | 30,140 | $ | 1,779,164 | ||||||||
Salix Pharmaceuticals, Ltd. (c) | 13,420 | 1,542,495 | |||||||||
Shire PLC , ADR (b) | 6,100 | 1,296,494 | |||||||||
Valeant Pharmaceuticals International, Inc. (c) | 18,550 | 2,654,691 | |||||||||
Zoetis, Inc. | 27,170 | 1,169,125 | |||||||||
8,441,969 | |||||||||||
Industrials (10.4%) | |||||||||||
Aerospace & Defense (1.6%) | |||||||||||
The Boeing Co. | 7,780 | 1,011,245 | |||||||||
United Technologies Corp. | 10,630 | 1,222,450 | |||||||||
2,233,695 | |||||||||||
Air Freight & Logistics (1.4%) | |||||||||||
FedEx Corp. | 11,550 | 2,005,773 | |||||||||
Airlines (1.1%) | |||||||||||
American Airlines Group, Inc. | 29,640 | 1,589,593 | |||||||||
Electrical Equipment (0.5%) | |||||||||||
Eaton Corp. PLC | 10,400 | 706,784 | |||||||||
Industrial Conglomerates (1.3%) | |||||||||||
Danaher Corp. | 20,660 | 1,770,769 | |||||||||
Machinery (3.0%) | |||||||||||
Cummins, Inc. | 7,450 | 1,074,067 | |||||||||
Ingersoll-Rand PLC | 24,260 | 1,537,841 | |||||||||
Pall Corp. | 16,330 | 1,652,759 | |||||||||
4,264,667 | |||||||||||
Road & Rail (1.5%) | |||||||||||
Union Pacific Corp. | 17,880 | 2,130,044 | |||||||||
Information Technology (19.5%) | |||||||||||
Communications Equipment (2.3%) | |||||||||||
QUALCOMM, Inc. | 43,710 | 3,248,964 | |||||||||
Computers & Peripherals (2.7%) | |||||||||||
Apple, Inc. | 34,150 | 3,769,477 | |||||||||
Internet Software & Services (5.8%) | |||||||||||
eBay, Inc. (c) | 24,360 | 1,367,083 | |||||||||
Facebook, Inc. – Class A (c) | 33,990 | 2,651,900 | |||||||||
Google, Inc. – Class A (c) | 7,440 | 3,948,111 | |||||||||
Yelp, Inc. (c) | 3,730 | 204,143 | |||||||||
8,171,237 | |||||||||||
IT Services (1.6%) | |||||||||||
Fidelity National Information Services, Inc. | 22,410 | 1,393,902 | |||||||||
Total System Services, Inc. | 24,920 | 846,283 | |||||||||
2,240,185 | |||||||||||
Semiconductors & Semiconductor Equipment (0.9%) | |||||||||||
NXP Semiconductor NV (b) (c) | 17,500 | 1,337,000 | |||||||||
Software (6.2%) | |||||||||||
Adobe Systems, Inc. (c) | 21,240 | 1,544,148 | |||||||||
Microsoft Corp. | 106,870 | 4,964,111 | |||||||||
Oracle Corp. | 51,710 | 2,325,399 | |||||||||
8,833,658 |
Shares | Value(a) | ||||||||||
Materials (3.2%) | |||||||||||
Chemicals (3.2%) | |||||||||||
Ashland, Inc. | 16,360 | $ | 1,959,274 | ||||||||
CF Industries Holdings, Inc. | 4,250 | 1,158,295 | |||||||||
LyondellBasell Industries NV – Class A | 17,090 | 1,356,775 | |||||||||
4,474,344 | |||||||||||
Telecommunication Services (2.1%) | |||||||||||
Diversified Telecommunication Services (1.3%) | |||||||||||
Verizon Communications, Inc. | 39,640 | 1,854,359 | |||||||||
Wireless Telecommunication Services (0.8%) | |||||||||||
SBA Communications Corp. – Class A (c) | 7,010 | 776,428 | |||||||||
T-Mobile US, Inc. (c) | 13,710 | 369,347 | |||||||||
1,145,775 | |||||||||||
Utilities (3.2%) | |||||||||||
Electric Utilities (3.2%) | |||||||||||
American Electric Power Co., Inc. | 37,090 | 2,252,105 | |||||||||
Edison International | 34,140 | 2,235,487 | |||||||||
4,487,592 | |||||||||||
Total common stocks (cost: $129,638,413) | 140,164,946 | ||||||||||
Short-Term Securities (1.4%) | |||||||||||
Investment Companies (1.4%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.000% | 2,015,430 | 2,015,430 | |||||||||
Total short-term securities (cost: $2,015,430) | 2,015,430 | ||||||||||
Total investments in securities (cost: $131,653,843) (d) | 142,180,376 | ||||||||||
Liabilities in excess of cash and other assets (-0.2%) | (245,854 | ) | |||||||||
Total net assets (100.0%) | $ | 141,934,522 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Foreign security: The Fund held 4.6% of net assets in foreign securities at December 31, 2014.
(c) Non-income producing security.
(d) At December 31, 2014 the cost of securities for federal income tax purposes was $131,857,904. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 13,342,826 | |||||
Gross unrealized depreciation | (3,020,354 | ) | |||||
Net unrealized appreciation | $ | 10,322,472 |
See accompanying notes to financial statements.
84
SFT T. Rowe Price Value Fund
Investments in Securities
December 31, 2014
(Percentages of each investment category relate to total net assets)
Shares | Value(a) | ||||||||||
Common Stocks (99.6%) | |||||||||||
Consumer Discretionary (5.8%) | |||||||||||
Auto Components (0.1%) | |||||||||||
Johnson Controls, Inc. | 7,400 | $ | 357,716 | ||||||||
Hotels, Restaurants & Leisure (1.6%) | |||||||||||
Carnival Corp. | 61,500 | 2,787,795 | |||||||||
McDonald's Corp. | 9,500 | 890,150 | |||||||||
3,677,945 | |||||||||||
Media (1.9%) | |||||||||||
Comcast Corp. – Class A | 33,700 | 1,939,940 | |||||||||
Time Warner, Inc. | 6,200 | 529,604 | |||||||||
Viacom, Inc. – Class B | 26,900 | 2,024,225 | |||||||||
4,493,769 | |||||||||||
Multiline Retail (0.7%) | |||||||||||
JC Penney Co., Inc. (b) | 118,200 | 765,936 | |||||||||
Kohl's Corp. | 12,600 | 769,104 | |||||||||
1,535,040 | |||||||||||
Specialty Retail (1.5%) | |||||||||||
Lowe's Cos., Inc. | 50,100 | 3,446,880 | |||||||||
Consumer Staples (7.7%) | |||||||||||
Beverages (1.1%) | |||||||||||
Coca-Cola Enterprises, Inc. | 10,700 | 473,154 | |||||||||
Dr Pepper Snapple Group, Inc. | 20,700 | 1,483,776 | |||||||||
PepsiCo, Inc. | 5,700 | 538,992 | |||||||||
2,495,922 | |||||||||||
Food & Staples Retailing (1.7%) | |||||||||||
Rite Aid Corp. (b) | 179,400 | 1,349,088 | |||||||||
Sysco Corp. | 67,300 | 2,671,137 | |||||||||
4,020,225 | |||||||||||
Food Products (3.4%) | |||||||||||
Bunge, Ltd. | 26,200 | 2,381,842 | |||||||||
ConAgra Foods, Inc. | 48,500 | 1,759,580 | |||||||||
Ingredion, Inc. | 32,200 | 2,731,848 | |||||||||
Kellogg Co. | 12,500 | 818,000 | |||||||||
The JM Smucker Co. | 2,600 | 262,548 | |||||||||
7,953,818 | |||||||||||
Household Products (0.5%) | |||||||||||
Energizer Holdings, Inc. | 6,400 | 822,784 | |||||||||
The Procter & Gamble Co. | 3,100 | 282,379 | |||||||||
1,105,163 | |||||||||||
Tobacco (1.0%) | |||||||||||
Philip Morris International, Inc. | 30,600 | 2,492,370 | |||||||||
Energy (4.2%) | |||||||||||
Oil, Gas & Consumable Fuels (4.2%) | |||||||||||
Apache Corp. | 42,600 | 2,669,742 | |||||||||
California Resources Corp. (b) | 14,400 | 79,344 | |||||||||
Canadian Natural Resources, Ltd. (c) | 43,700 | 1,349,456 | |||||||||
Cimarex Energy Co. | 9,300 | 985,800 |
Shares | Value(a) | ||||||||||
Concho Resources, Inc. (b) | 5,500 | $ | 548,625 | ||||||||
Consol Energy, Inc. | 14,100 | 476,721 | |||||||||
Marathon Oil Corp. | 40,200 | 1,137,258 | |||||||||
Pioneer Natural Resources Co. | 12,400 | 1,845,740 | |||||||||
Whiting Petroleum Corp. (b) | 19,200 | 633,600 | |||||||||
9,726,286 | |||||||||||
Financial (23.2%) | |||||||||||
Capital Markets (5.1%) | |||||||||||
Ameriprise Financial, Inc. | 7,600 | 1,005,100 | |||||||||
Invesco, Ltd. | 25,900 | 1,023,568 | |||||||||
Morgan Stanley | 121,400 | 4,710,320 | |||||||||
State Street Corp. | 36,900 | 2,896,650 | |||||||||
The Bank of New York Mellon Corp. | 56,000 | 2,271,920 | |||||||||
11,907,558 | |||||||||||
Commercial Banks (10.1%) | |||||||||||
Bank of America Corp. | 289,200 | 5,173,788 | |||||||||
Barclays PLC (c) | 308,996 | 1,173,188 | |||||||||
Citigroup, Inc. | 101,900 | 5,513,809 | |||||||||
JPMorgan Chase & Co. | 88,600 | 5,544,588 | |||||||||
Royal Bank of Scotland Group PLC (b) (c) | 43,171 | 265,488 | |||||||||
The PNC Financial Services Group, Inc. | 17,300 | 1,578,279 | |||||||||
UniCredit SpA (c) | 35,857 | 231,479 | |||||||||
US Bancorp | 8,600 | 386,570 | |||||||||
Wells Fargo & Co. | 68,000 | 3,727,760 | |||||||||
23,594,949 | |||||||||||
Consumer Finance (0.7%) | |||||||||||
Discover Financial Services | 24,800 | 1,624,152 | |||||||||
Diversified Financial Services (0.7%) | |||||||||||
Intercontinental Exchange, Inc. | 7,700 | 1,688,533 | |||||||||
Insurance (4.6%) | |||||||||||
Genworth Financial, Inc. – Class A (b) | 51,900 | 441,150 | |||||||||
Marsh & McLennan Cos., Inc. | 39,700 | 2,272,428 | |||||||||
MetLife, Inc. | 95,600 | 5,171,004 | |||||||||
The Allstate Corp. | 12,900 | 906,225 | |||||||||
Willis Group Holdings PLC (c) | 6,500 | 291,265 | |||||||||
XL Group PLC (c) | 45,800 | 1,574,146 | |||||||||
10,656,218 | |||||||||||
Office REITs (0.2%) | |||||||||||
Digital Realty Trust, Inc. | 7,700 | 510,510 | |||||||||
Specialized REITs (1.8%) | |||||||||||
Weyerhaeuser Co. | 114,800 | 4,120,172 | |||||||||
Health Care (20.7%) | |||||||||||
Biotechnology (0.7%) | |||||||||||
Amgen, Inc. | 9,200 | 1,465,468 | |||||||||
Gilead Sciences, Inc. (b) | 2,600 | 245,076 | |||||||||
1,710,544 |
See accompanying notes to financial statements.
85
SFT T. Rowe Price Value Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Health Care Equipment & Supplies (1.6%) | |||||||||||
Covidien PLC (c) | 17,800 | $ | 1,820,584 | ||||||||
Medtronic, Inc. | 26,700 | 1,927,740 | |||||||||
3,748,324 | |||||||||||
Health Care Providers & Services (6.4%) | |||||||||||
Aetna, Inc. | 17,500 | 1,554,525 | |||||||||
Anthem, Inc. | 19,900 | 2,500,833 | |||||||||
Cigna Corp. | 30,900 | 3,179,919 | |||||||||
DaVita HealthCare Partners, Inc. (b) | 9,900 | 749,826 | |||||||||
HCA Holdings, Inc. (b) | 48,800 | 3,581,432 | |||||||||
UnitedHealth Group, Inc. | 33,700 | 3,406,733 | |||||||||
14,973,268 | |||||||||||
Life Sciences Tools & Services (3.3%) | |||||||||||
Agilent Technologies, Inc. | 65,200 | 2,669,288 | |||||||||
Thermo Fisher Scientific, Inc. | 39,000 | 4,886,310 | |||||||||
7,555,598 | |||||||||||
Pharmaceuticals (8.7%) | |||||||||||
AbbVie, Inc. | 42,500 | 2,781,200 | |||||||||
Hospira, Inc. (b) | 31,700 | 1,941,625 | |||||||||
Johnson & Johnson | 2,900 | 303,253 | |||||||||
Merck & Co., Inc. | 94,400 | 5,360,976 | |||||||||
Mylan, Inc. (b) | 29,000 | 1,634,730 | |||||||||
Novartis AG (c) | 20,983 | 1,950,164 | |||||||||
Pfizer, Inc. | 204,300 | 6,363,945 | |||||||||
20,335,893 | |||||||||||
Industrials (15.9%) | |||||||||||
Aerospace & Defense (5.7%) | |||||||||||
Honeywell International, Inc. | 39,600 | 3,956,832 | |||||||||
The Boeing Co. | 37,500 | 4,874,250 | |||||||||
United Technologies Corp. | 38,900 | 4,473,500 | |||||||||
13,304,582 | |||||||||||
Airlines (4.1%) | |||||||||||
American Airlines Group, Inc. | 176,400 | 9,460,332 | |||||||||
Industrial Conglomerates (6.1%) | |||||||||||
3M Co. | 9,600 | 1,577,472 | |||||||||
Danaher Corp. | 24,400 | 2,091,324 | |||||||||
General Electric Co. | 376,200 | 9,506,574 | |||||||||
Textron, Inc. | 26,100 | 1,099,071 | |||||||||
14,274,441 | |||||||||||
Information Technology (9.0%) | |||||||||||
Communications Equipment (1.9%) | |||||||||||
Cisco Systems, Inc. | 103,800 | 2,887,197 | |||||||||
Motorola Solutions, Inc. | 9,200 | 617,136 | |||||||||
QUALCOMM, Inc. | 12,900 | 958,857 | |||||||||
4,463,190 | |||||||||||
Computers & Peripherals (0.6%) | |||||||||||
Western Digital Corp. | 12,900 | 1,428,030 | |||||||||
Electronic Equipment, Instruments & Components (0.9%) | |||||||||||
Keysight Technologies, Inc. (b) | 34,300 | 1,158,311 | |||||||||
Seagate Technology PLC | 15,200 | 1,010,800 | |||||||||
2,169,111 |
Shares | Value(a) | ||||||||||
IT Services (0.7%) | |||||||||||
The Western Union Co. | 95,500 | $ | 1,710,405 | ||||||||
Office Electronics (1.6%) | |||||||||||
Xerox Corp. | 262,700 | 3,641,022 | |||||||||
Semiconductors & Semiconductor Equipment (2.7%) | |||||||||||
Applied Materials, Inc. | 7,800 | 194,376 | |||||||||
Micron Technology, Inc. (b) | 92,200 | 3,227,922 | |||||||||
Texas Instruments, Inc. | 51,800 | 2,769,487 | |||||||||
6,191,785 | |||||||||||
Software (0.6%) | |||||||||||
CA, Inc. | 41,900 | 1,275,855 | |||||||||
Microsoft Corp. | 4,900 | 227,605 | |||||||||
1,503,460 | |||||||||||
Materials (4.4%) | |||||||||||
Chemicals (2.4%) | |||||||||||
Ashland, Inc. | 14,000 | 1,676,640 | |||||||||
Celanese Corp. – Series A | 45,200 | 2,710,192 | |||||||||
LyondellBasell Industries NV – Class A | 15,000 | 1,190,850 | |||||||||
5,577,682 | |||||||||||
Construction Materials (0.4%) | |||||||||||
Vulcan Materials Co. | 14,200 | 933,366 | |||||||||
Metals & Mining (0.3%) | |||||||||||
Steel Dynamics, Inc. | 33,700 | 665,238 | |||||||||
Paper & Forest Products (1.3%) | |||||||||||
International Paper Co. | 30,100 | 1,612,758 | |||||||||
West Fraser Timber Co., Ltd. (c) | 24,200 | 1,388,797 | |||||||||
3,001,555 | |||||||||||
Telecommunication Services (0.4%) | |||||||||||
Wireless Telecommunication Services (0.4%) | |||||||||||
T-Mobile US, Inc. (b) | 34,400 | 926,736 | |||||||||
Utilities (8.3%) | |||||||||||
Electric Utilities (4.4%) | |||||||||||
American Electric Power Co., Inc. | 42,300 | 2,568,456 | |||||||||
Entergy Corp. | 21,000 | 1,837,080 | |||||||||
Exelon Corp. | 76,200 | 2,825,496 | |||||||||
FirstEnergy Corp. | 77,300 | 3,013,927 | |||||||||
10,244,959 | |||||||||||
Independent Power Producers & Energy Traders (2.7%) | |||||||||||
NRG Energy, Inc. | 123,400 | 3,325,630 | |||||||||
The AES Corp. | 220,800 | 3,040,416 | |||||||||
6,366,046 | |||||||||||
Multi-Utilities (1.2%) | |||||||||||
PG&E Corp. | 50,100 | 2,667,324 | |||||||||
Total common stocks (cost: $213,950,597) | 232,260,117 |
See accompanying notes to financial statements.
86
SFT T. Rowe Price Value Fund
Investments in Securities – continued
Shares | Value(a) | ||||||||||
Short-Term Securities (0.5%) | |||||||||||
Investment Companies (0.5%) | |||||||||||
State Street Institutional U.S. Government Money Market Fund, current rate 0.000% | 975,974 | $ | 975,974 | ||||||||
T. Rowe Price Reserve Investment Fund, current rate 0.000% | 84,363 | 84,363 | |||||||||
Total short-term securities (cost: $1,060,337) | 1,060,337 | ||||||||||
Total investments in securities (cost: $215,010,934) (d) | 233,320,454 | ||||||||||
Liabilities in excess of cash and other assets (-0.1%) | (118,176 | ) | |||||||||
Total net assets (100.0%) | $ | 233,202,278 |
Investments in Securities Legend
(a) Securities are valued by procedures described in Note 2 of the Notes to Financial Statements.
(b) Non-income producing security.
(c) Foreign security: The Fund held 4.3% of net assets in foreign securities at December 31, 2014.
(d) At December 31, 2014 the cost of securities for federal income tax purposes was $215,113,957. The aggregate unrealized appreciation and depreciation of investments in securities based on this cost were:
Gross unrealized appreciation | $ | 23,893,016 | |||||
Gross unrealized depreciation | (5,686,519 | ) | |||||
Net unrealized appreciation | $ | 18,206,497 |
See accompanying notes to financial statements.
87
Securian Funds Trust
Statements of Assets and Liabilities
December 31, 2014
SFT Advantus Bond Fund | SFT Advantus Index 400 Mid-Cap Fund | SFT Advantus Index 500 Fund | SFT Advantus International Bond Fund | SFT Advantus Managed Volatility Fund | SFT Advantus Money Market Fund | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Investments in securities, at market value – see accompanying schedule for detailed listing* | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 383,143,376 | $ | 234,260,355 | $ | 645,822,722 | $ | 115,726,349 | $ | 99,264,415 | $ | 86,563,056 | |||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | 32,071,660 | – | |||||||||||||||||||||
Cash in bank on demand deposit | – | 1,677 | 9,420 | 442,993 | (a) | – | 288 | ||||||||||||||||||||
Foreign currency in bank on deposit (identified cost $1,361,391 and $4,825 for SFT Advantus International Bond Fund and SFT T. Rowe Price Value Fund) | – | – | – | 1,289,576 | – | – | |||||||||||||||||||||
Receivable for Fund shares sold | 36,655 | 79,118 | 299,082 | 4 | 26,820 | 411,293 | |||||||||||||||||||||
Receivable for investment securities sold (including paydowns) | – | 2,276 | – | 917 | – | – | |||||||||||||||||||||
Receivable for investment securities sold on a forward – commitment basis (note 2) | – | – | – | 211,745 | – | – | |||||||||||||||||||||
Dividends and accrued interest receivable | 2,712,707 | 201,006 | 852,945 | 1,129,885 | 368,176 | 11,285 | |||||||||||||||||||||
Receivable for refundable foreign income taxes withheld | 479 | – | – | 284,134 | – | – | |||||||||||||||||||||
Receivable from Adviser (note 4) | – | – | – | – | 31,663 | 55,015 | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts held, at value | – | – | – | 9,186,726 | – | – | |||||||||||||||||||||
Variation margin receivable | – | – | – | – | – | – | |||||||||||||||||||||
Prepaid expenses | 4,089 | 4,089 | 4,089 | 4,089 | 4,089 | 4,089 | |||||||||||||||||||||
Total assets | 385,897,306 | 234,548,521 | 646,988,258 | 128,276,418 | 131,766,823 | 87,045,026 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Bank overdraft | – | – | – | – | – | – | |||||||||||||||||||||
Payable for Fund shares repurchased | 58,742 | 79,580 | – | 23,873 | – | – | |||||||||||||||||||||
Payable for investment securities purchased | – | 514,730 | – | – | – | – | |||||||||||||||||||||
Payable for investment securities purchased on a forward – commitment basis (note 2) | 11,131,062 | – | – | 197,664 | – | – | |||||||||||||||||||||
Payable to Adviser | 216,231 | 81,324 | 211,651 | 106,803 | 104,114 | 56,175 | |||||||||||||||||||||
Accrued expenses | 134,841 | 81,738 | 139,009 | 100,774 | 57,722 | 84,487 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts held, at value | – | – | – | 2,725,127 | – | – | |||||||||||||||||||||
Variation margin payable | 28,188 | 68,286 | 196,885 | 10,204 | 558,217 | – | |||||||||||||||||||||
Total liabilities | 11,569,064 | 825,658 | 547,545 | 3,164,445 | 720,053 | 140,662 | |||||||||||||||||||||
Net assets applicable to outstanding capital stock | $ | 374,328,242 | $ | 233,722,863 | $ | 646,440,713 | $ | 125,111,973 | $ | 131,046,770 | $ | 86,904,364 | |||||||||||||||
Represented by: | |||||||||||||||||||||||||||
Paid in capital** | $ | 352,363,378 | $ | 108,410,238 | $ | 163,265,473 | $ | 106,095,616 | $ | 121,367,214 | $ | 86,944,828 | |||||||||||||||
Retained earnings (deficit) | 21,964,864 | 125,312,625 | 483,175,240 | 19,016,357 | 9,679,556 | (40,464 | ) | ||||||||||||||||||||
Total | $ | 374,328,242 | $ | 233,722,863 | $ | 646,440,713 | $ | 125,111,973 | $ | 131,046,770 | $ | 86,904,364 | |||||||||||||||
Net assets by class: | |||||||||||||||||||||||||||
Class 1 | $ | 5,402,052 | $ | 15,417,520 | $ | 60,908,771 | $ | 938,207 | $ | N/A | $ | N/A | |||||||||||||||
Class 2 | 368,926,190 | 218,305,343 | 585,531,942 | 124,173,766 | 131,046,770 | 86,904,364 | |||||||||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||||||||||
Class 1 | 2.148 | 3.640 | 7.737 | 2.517 | N/A | N/A | |||||||||||||||||||||
Class 2 | 2.117 | 3.586 | 7.622 | 2.479 | 11.603 | 1.000 | |||||||||||||||||||||
* Identified cost | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 371,120,094 | $ | 151,484,715 | $ | 242,727,153 | $ | 119,735,490 | $ | 98,604,928 | $ | 86,563,056 | |||||||||||||||
Affiliated issuers | – | – | – | – | 27,000,000 | – | |||||||||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||||||||||
Class 1 | 2,514,433 | 4,235,813 | 7,872,660 | 372,783 | N/A | N/A | |||||||||||||||||||||
Class 2 | 174,304,749 | 60,879,318 | 76,823,177 | 50,084,249 | 11,294,569 | 86,946,894 |
(a) An amount of $442,459 has been segregated to collateralize margin requirements for open centrally cleared swaps
outstanding at December 31, 2014 for SFT Advantus International Bond Fund.
See accompanying notes to financial statements.
88
SFT Advantus Mortgage Securities Fund | SFT Advantus Real Estate Securities Fund | SFT Ivy® Growth Fund | SFT Ivy® Small Cap Growth Fund | SFT Pyramis® Core Equity Fund | SFT T. Rowe Price Value Fund | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Investments in securities, at market value – see accompanying schedule for detailed listing* | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 108,233,957 | $ | 146,137,170 | $ | 502,312,426 | $ | 183,128,481 | $ | 142,180,376 | $ | 233,320,454 | |||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Cash in bank on demand deposit | – | – | – | – | 6,240 | 7,379 | |||||||||||||||||||||
Foreign currency in bank on deposit (identified cost $1,361,391 and $4,825 for SFT Advantus International Bond Fund and SFT T. Rowe Price Value Fund) | – | – | – | – | – | 4,818 | |||||||||||||||||||||
Receivable for Fund shares sold | 194,868 | 171,625 | – | – | – | – | |||||||||||||||||||||
Receivable for investment securities sold (including paydowns) | – | 952,196 | – | – | – | 33,318 | |||||||||||||||||||||
Receivable for investment securities sold on a forward – commitment basis (note 2) | – | – | – | – | – | – | |||||||||||||||||||||
Dividends and accrued interest receivable | 309,862 | 810,816 | 347,432 | 29,844 | 162,084 | 328,801 | |||||||||||||||||||||
Receivable for refundable foreign income taxes withheld | – | – | – | – | – | – | |||||||||||||||||||||
Receivable from Adviser (note 4) | – | – | – | – | – | – | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts held, at value | – | – | – | – | – | – | |||||||||||||||||||||
Variation margin receivable | 5,250 | – | – | – | – | – | |||||||||||||||||||||
Prepaid expenses | 4,089 | 4,089 | 4,089 | 4,089 | 4,089 | 4,089 | |||||||||||||||||||||
Total assets | 108,748,026 | 148,075,896 | 502,663,947 | 183,162,414 | 142,352,789 | 233,698,859 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Bank overdraft | 18 | – | – | – | – | – | |||||||||||||||||||||
Payable for Fund shares repurchased | – | – | 73,699 | 141,425 | 162,802 | 142,755 | |||||||||||||||||||||
Payable for investment securities purchased | – | 1,003,269 | 1,521,983 | 474,297 | – | 69,216 | |||||||||||||||||||||
Payable for investment securities purchased on a forward – commitment basis (note 2) | 10,436,836 | – | – | – | – | – | |||||||||||||||||||||
Payable to Adviser | 68,328 | 121,837 | 404,430 | 179,418 | 120,984 | 192,729 | |||||||||||||||||||||
Accrued expenses | 81,673 | 71,114 | 89,147 | 83,026 | 134,481 | 91,881 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts held, at value | – | – | – | – | – | – | |||||||||||||||||||||
Variation margin payable | – | – | – | – | – | – | |||||||||||||||||||||
Total liabilities | 10,586,855 | 1,196,220 | 2,089,259 | 878,166 | 418,267 | 496,581 | |||||||||||||||||||||
Net assets applicable to outstanding capital stock | $ | 98,161,171 | $ | 146,879,676 | $ | 500,574,688 | $ | 182,284,248 | $ | 141,934,522 | $ | 233,202,278 | |||||||||||||||
Represented by: | |||||||||||||||||||||||||||
Paid in capital** | $ | 119,370,972 | $ | 74,316,124 | $ | 442,065,668 | $ | 168,442,430 | $ | 126,494,472 | $ | 214,632,612 | |||||||||||||||
Retained earnings (deficit) | (21,209,801 | ) | 72,563,552 | 58,509,020 | 13,841,818 | 15,440,050 | 18,569,666 | ||||||||||||||||||||
Total | $ | 98,161,171 | $ | 146,879,676 | $ | 500,574,688 | $ | 182,284,248 | $ | 141,934,522 | $ | 233,202,278 | |||||||||||||||
Net assets by class: | |||||||||||||||||||||||||||
Class 1 | $ | 812,744 | $ | 5,489,143 | $ | N/A | $ | N/A | $ | 662,777 | $ | N/A | |||||||||||||||
Class 2 | 97,348,427 | 141,390,533 | 500,574,688 | 182,284,248 | 141,271,745 | 233,202,278 | |||||||||||||||||||||
Net asset value per share of outstanding capital stock by class: | |||||||||||||||||||||||||||
Class 1 | 1.835 | 4.108 | N/A | N/A | 11.148 | N/A | |||||||||||||||||||||
Class 2 | 1.808 | 4.047 | 11.253 | 10.810 | 11.129 | 10.836 | |||||||||||||||||||||
* Identified cost | |||||||||||||||||||||||||||
Unaffiliated issuers | $ | 106,421,037 | $ | 114,813,531 | $ | 442,084,095 | $ | 168,186,142 | $ | 131,653,843 | $ | 215,010,934 | |||||||||||||||
Affiliated issuers | – | – | – | – | – | – | |||||||||||||||||||||
** Shares outstanding by class: | |||||||||||||||||||||||||||
Class 1 | 442,900 | 1,336,185 | N/A | N/A | 59,454 | N/A | |||||||||||||||||||||
Class 2 | 53,850,458 | 34,937,444 | 44,483,948 | 16,862,270 | 12,693,735 | 21,520,859 |
89
Securian Funds Trust
Statements of Operations
Year or period ended December 31, 2014
SFT Advantus Bond Fund | SFT Advantus Index 400 Mid-Cap Fund | SFT Advantus Index 500 Fund | SFT Advantus International Bond Fund | SFT Advantus Managed Volatility Fund | SFT Advantus Money Market Fund | ||||||||||||||||||||||
Investment Income | |||||||||||||||||||||||||||
Interest (net of foreign withholding taxes of $127,999 for SFT Advantus International Bond Fund)1 | $ | 13,241,084 | $ | 93 | $ | – | $ | 4,896,615 | $ | 924,400 | $ | 91,019 | |||||||||||||||
Unaffiliated Dividends (net of foreign withholding taxes of $1,392, $292, $29,757, $870 and $30,517 for SFT Advantus Index 500 Fund, SFT Advantus Real Estate Securities Fund, SFT Ivy® Growth Fund, SFT Ivy® Small Cap Growth Fund and SFT T. Rowe Price Value Fund) | 1,631 | 3,191,822 | 12,045,120 | 1,271 | 3,493 | – | |||||||||||||||||||||
Total investment income | 13,242,715 | 3,191,915 | 12,045,120 | 4,897,886 | 927,893 | 91,019 | |||||||||||||||||||||
Expenses (note 4): | |||||||||||||||||||||||||||
Investment advisory fee | 1,486,378 | 344,115 | 895,508 | 773,566 | 524,632 | 262,635 | |||||||||||||||||||||
Rule 12b-1 fees – class 2 | 916,832 | 538,580 | 1,384,891 | 320,171 | 201,781 | 218,862 | |||||||||||||||||||||
Shareholder servicing fee | 160,467 | 64,527 | 120,796 | 78,691 | 80,449 | 89,421 | |||||||||||||||||||||
Audit and accounting services | 48,880 | 43,214 | 44,894 | 51,615 | 40,586 | 49,971 | |||||||||||||||||||||
Administrative services fee | 40,794 | 36,711 | 36,488 | 42,998 | 36,711 | 42,998 | |||||||||||||||||||||
Legal fees | 19,453 | 15,521 | 17,071 | 18,509 | 28,820 | 19,998 | |||||||||||||||||||||
Custodian fees | 13,024 | 13,103 | 12,203 | 105,579 | 4,302 | 7,063 | |||||||||||||||||||||
Printing and shareholder reports | 5,598 | 5,598 | 5,857 | 5,598 | 15,560 | 5,598 | |||||||||||||||||||||
Trustee's fees | 16,689 | 16,689 | 16,689 | 16,689 | 18,169 | 16,689 | |||||||||||||||||||||
S&P Licensing fee | – | 13,311 | 36,185 | 520 | – | – | |||||||||||||||||||||
Insurance | 9,499 | 6,091 | 13,918 | 3,906 | 1,826 | 2,978 | |||||||||||||||||||||
Other | 34,663 | 20,133 | 44,110 | 14,257 | 4,248 | 14,733 | |||||||||||||||||||||
Total expenses before fees waived | 2,752,277 | 1,117,593 | 2,628,610 | 1,432,099 | 957,084 | 730,946 | |||||||||||||||||||||
Less fees waived (note 4) | – | – | – | – | (309,108 | ) | (639,927 | ) | |||||||||||||||||||
Total expenses net of fees waived | 2,752,277 | 1,117,593 | 2,628,610 | 1,432,099 | 647,976 | 91,019 | |||||||||||||||||||||
Investment income – net | 10,490,438 | 2,074,322 | 9,416,510 | 3,465,787 | 279,917 | – | |||||||||||||||||||||
Realized and unrealized gains (losses) on investments and foreign currencies: | |||||||||||||||||||||||||||
Investments (note 3) | |||||||||||||||||||||||||||
Unaffiliated issuers | 5,778,820 | 18,098,550 | 18,750,562 | 1,341,874 | (30,690 | ) | – | ||||||||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Written options transactions | – | – | – | – | – | – | |||||||||||||||||||||
Swaps | – | – | – | (84,127 | ) | – | – | ||||||||||||||||||||
Foreign currency transactions | – | – | – | 634,107 | – | – | |||||||||||||||||||||
Net increase from litigation payments | 260,751 | 3,708 | 39,981 | (15,416 | ) | – | – | ||||||||||||||||||||
Futures transactions | (715,931 | ) | 425,838 | 1,615,523 | – | 2,864,128 | – | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||
Unaffiliated issuers | 7,362,586 | (67,330 | ) | 45,434,594 | (9,000,981 | ) | 1,361,781 | – | |||||||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | 2,872,635 | – | |||||||||||||||||||||
Options written | – | – | – | – | – | – | |||||||||||||||||||||
Swaps | – | – | – | (509,331 | ) | – | – | ||||||||||||||||||||
Translation of assets and liabilities in foreign currency | – | – | – | 6,407,256 | – | – | |||||||||||||||||||||
Futures transactions | (610,954 | ) | (123,345 | ) | (451,504 | ) | – | (783,744 | ) | – | |||||||||||||||||
Net gains (losses) on investments | 12,075,272 | 18,337,421 | 65,389,156 | (1,226,618 | ) | 6,284,110 | – | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 22,565,710 | $ | 20,411,743 | $ | 74,805,666 | $ | 2,239,169 | $ | 6,564,027 | $ | – |
1 All income is from unaffiliated issuers.
2 The Fund commenced operations on May 1, 2014.
See accompanying notes to financial statements.
90
SFT Advantus Mortgage Securities Fund | SFT Advantus Real Estate Securities Fund | SFT Ivy® Growth Fund2 | SFT Ivy® Small Cap Growth Fund2 | SFT Pyramis® Core Equity Fund2 | SFT T. Rowe Price Value Fund2 | ||||||||||||||||||||||
Investment Income | |||||||||||||||||||||||||||
Interest (net of foreign withholding taxes of $127,999 for SFT Advantus International Bond Fund)1 | $ | 2,305,396 | $ | – | $ | 23,223 | $ | 24,901 | $ | – | $ | 1,448 | |||||||||||||||
Unaffiliated Dividends (net of foreign withholding taxes of $1,392, $292, $29,757, $870 and $30,517 for SFT Advantus Index 500 Fund, SFT Advantus Real Estate Securities Fund, SFT Ivy® Growth Fund, SFT Ivy® Small Cap Growth Fund and SFT T. Rowe Price Value Fund) | 1,899 | 3,398,471 | 3,706,624 | 584,893 | 1,550,839 | 3,293,916 | |||||||||||||||||||||
Total investment income | 2,307,295 | 3,398,471 | 3,729,847 | 609,794 | 1,550,839 | 3,295,364 | |||||||||||||||||||||
Expenses (note 4): | |||||||||||||||||||||||||||
Investment advisory fee | 391,627 | 950,498 | 2,219,513 | 993,901 | 623,953 | 1,032,200 | |||||||||||||||||||||
Rule 12b-1 fees – class 2 | 242,295 | 327,957 | 828,521 | 292,315 | 238,931 | 385,152 | |||||||||||||||||||||
Shareholder servicing fee | 62,965 | 61,728 | 67,259 | 59,609 | 113,934 | 63,821 | |||||||||||||||||||||
Audit and accounting services | 53,272 | 38,508 | 29,138 | 28,638 | 30,638 | 28,638 | |||||||||||||||||||||
Administrative services fee | 39,237 | 35,759 | 20,660 | 20,660 | 20,660 | 20,660 | |||||||||||||||||||||
Legal fees | 20,624 | 16,548 | 9,015 | 9,015 | 9,015 | 9,015 | |||||||||||||||||||||
Custodian fees | 8,789 | 8,657 | 14,448 | 12,064 | 9,568 | 18,199 | |||||||||||||||||||||
Printing and shareholder reports | 5,598 | 5,598 | 13,349 | 13,349 | 13,349 | 13,349 | |||||||||||||||||||||
Trustee's fees | 16,689 | 16,689 | 7,565 | 7,565 | 7,565 | 7,565 | |||||||||||||||||||||
S&P Licensing fee | – | – | – | – | – | 200 | |||||||||||||||||||||
Insurance | 3,211 | 3,669 | 818 | 818 | 818 | 818 | |||||||||||||||||||||
Other | 11,611 | 13,027 | 8,019 | 3,565 | 2,937 | 4,433 | |||||||||||||||||||||
Total expenses before fees waived | 855,918 | 1,478,638 | 3,218,305 | 1,441,499 | 1,071,368 | 1,584,050 | |||||||||||||||||||||
Less fees waived (note 4) | – | – | – | – | – | – | |||||||||||||||||||||
Total expenses net of fees waived | 855,918 | 1,478,638 | 3,218,305 | 1,441,499 | 1,071,368 | 1,584,050 | |||||||||||||||||||||
Investment income – net | 1,451,377 | 1,919,833 | 511,542 | (831,705 | ) | 479,471 | 1,711,314 | ||||||||||||||||||||
Realized and unrealized gains (losses) on investments and foreign currencies: | |||||||||||||||||||||||||||
Investments (note 3) | |||||||||||||||||||||||||||
Unaffiliated issuers | 966,250 | 23,648,635 | (2,224,376 | ) | (268,816 | ) | 5,057,027 | (1,449,030 | ) | ||||||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Written options transactions | – | 3,681 | – | – | – | – | |||||||||||||||||||||
Swaps | – | – | – | – | – | – | |||||||||||||||||||||
Foreign currency transactions | – | (112 | ) | (6,550 | ) | – | – | (1,469 | ) | ||||||||||||||||||
Net increase from litigation payments | 105,230 | – | – | – | – | – | |||||||||||||||||||||
Futures transactions | 109,422 | – | – | – | (622,981 | ) | – | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation on: | |||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||
Unaffiliated issuers | 2,762,663 | 10,025,003 | 60,228,331 | 14,942,339 | 10,526,533 | 18,309,520 | |||||||||||||||||||||
Affiliated issuers (note 8) | – | – | – | – | – | – | |||||||||||||||||||||
Options written | – | 2,944 | �� | – | – | – | – | ||||||||||||||||||||
Swaps | – | – | – | – | – | – | |||||||||||||||||||||
Translation of assets and liabilities in foreign currency | – | (47 | ) | 73 | – | – | (669 | ) | |||||||||||||||||||
Futures transactions | 83,255 | – | – | – | – | – | |||||||||||||||||||||
Net gains (losses) on investments | 4,026,820 | 33,680,104 | 57,997,478 | 14,673,523 | 14,960,579 | 16,858,352 | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 5,478,197 | $ | 35,599,937 | $ | 58,509,020 | $ | 13,841,818 | $ | 15,440,050 | $ | 18,569,666 |
91
Securian Funds Trust
Statements of Changes in Net Assets
Year or period ended December 31, 2014 and year or period ended December 31, 2013
SFT Advantus Bond Fund | SFT Advantus Index 400 Mid-Cap Fund | SFT Advantus Index 500 Fund | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Investment income – net | $ | 10,490,438 | $ | 9,797,315 | $ | 2,074,322 | $ | 1,869,461 | $ | 9,416,510 | $ | 8,203,514 | |||||||||||||||
Net realized gains (losses) on investments | 5,323,640 | (679,000 | ) | 18,528,096 | 15,058,508 | 20,406,066 | 17,020,423 | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | 6,751,632 | (11,430,631 | ) | (190,675 | ) | 42,054,025 | 44,983,090 | 114,353,349 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 22,565,710 | (2,312,316 | ) | 20,411,743 | 58,981,994 | 74,805,666 | 139,577,286 | ||||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 1,088,939 | 1,885,184 | 2,793,272 | 4,001,073 | 20,039,931 | 20,081,318 | |||||||||||||||||||||
Class 2 | 10,539,299 | 15,310,201 | 2,307,433 | 2,154,241 | 12,078,003 | 16,185,563 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (401,562 | ) | (611,121 | ) | (1,485,358 | ) | (717,232 | ) | (1,619,213 | ) | (2,129,564 | ) | |||||||||||||||
Class 2 | (19,911,931 | ) | (17,095,471 | ) | (18,990,276 | ) | (22,978,039 | ) | (35,689,410 | ) | (41,106,945 | ) | |||||||||||||||
Increase (decrease) in net assets from capital stock transactions | (8,685,255 | ) | (511,207 | ) | (15,374,929 | ) | (17,539,957 | ) | (5,190,689 | ) | (6,969,628 | ) | |||||||||||||||
Total increase (decrease) in net assets | 13,880,455 | (2,823,523 | ) | 5,036,814 | 41,442,037 | 69,614,977 | 132,607,658 | ||||||||||||||||||||
Net assets at beginning of period | 360,447,787 | 363,271,310 | 228,686,049 | 187,244,012 | 576,825,736 | 444,218,078 | |||||||||||||||||||||
Net assets at end of period | $ | 374,328,242 | $ | 360,447,787 | $ | 233,722,863 | $ | 228,686,049 | $ | 646,440,713 | $ | 576,825,736 | |||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | 517,670 | 931,654 | 807,007 | 1,429,483 | 2,759,483 | 3,468,128 | |||||||||||||||||||||
Class 2 | 5,132,108 | 7,682,112 | 676,065 | 732,484 | 1,673,196 | 2,797,924 | |||||||||||||||||||||
Net change from capital transactions | 5,649,778 | 8,613,766 | 1,483,072 | 2,161,967 | 4,432,679 | 6,266,052 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | (192,513 | ) | (301,333 | ) | (422,915 | ) | (243,347 | ) | (220,570 | ) | (364,822 | ) | |||||||||||||||
Class 2 | (9,619,309 | ) | (8,555,343 | ) | (5,564,536 | ) | (8,012,689 | ) | (5,063,900 | ) | (7,170,399 | ) | |||||||||||||||
Net change from capital transactions | (9,811,822 | ) | (8,856,676 | ) | (5,987,451 | ) | (8,256,036 | ) | (5,284,470 | ) | (7,535,221 | ) |
1 The Fund commenced operations on May 1, 2013.
See accompanying notes to financial statements.
92
SFT Advantus International Bond Fund | SFT Advantus Managed Volatility Fund1 | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Operations: | |||||||||||||||||||
Investment income – net | $ | 3,465,787 | $ | 3,815,250 | $ | 279,917 | $ | 27,872 | |||||||||||
Net realized gains (losses) on investments | 1,876,438 | 3,490,274 | 2,833,438 | 511,092 | |||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (3,103,056 | ) | (7,446,936 | ) | 3,450,672 | 2,576,565 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 2,239,169 | (141,412 | ) | 6,564,027 | 3,115,529 | ||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 206,840 | 243,440 | – | – | |||||||||||||||
Class 2 | 2,419,289 | 11,957,327 | 72,364,610 | 50,321,152 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (38,489 | ) | (96,765 | ) | – | – | |||||||||||||
Class 2 | (9,355,978 | ) | (10,517,854 | ) | (812,666 | ) | (505,882 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | (6,768,338 | ) | 1,586,148 | 71,551,944 | 49,815,270 | ||||||||||||||
Total increase (decrease) in net assets | (4,529,169 | ) | 1,444,736 | 78,115,971 | 52,930,799 | ||||||||||||||
Net assets at beginning of period | 129,641,142 | 128,196,406 | 52,930,799 | – | |||||||||||||||
Net assets at end of period | $ | 125,111,973 | $ | 129,641,142 | $ | 131,046,770 | $ | 52,930,799 | |||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | 81,804 | 99,286 | – | – | |||||||||||||||
Class 2 | 975,387 | 4,904,484 | 6,435,831 | 4,980,695 | |||||||||||||||
Net change from capital transactions | 1,057,191 | 5,003,770 | 6,435,831 | 4,980,695 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | (15,250 | ) | (39,037 | ) | – | – | |||||||||||||
Class 2 | (3,766,044 | ) | (4,329,122 | ) | (73,605 | ) | (48,352 | ) | |||||||||||
Net change from capital transactions | (3,781,294 | ) | (4,368,159 | ) | (73,605 | ) | (48,352 | ) |
93
Securian Funds Trust
Statements of Changes in Net Assets – continued
Year or period ended December 31, 2014 and year or period ended December 31, 2013
SFT Advantus Money Market Fund | SFT Advantus Mortgage Securities Fund | SFT Advantus Real Estate Securities Fund | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Investment income – net | $ | – | $ | – | $ | 1,451,377 | $ | 1,382,451 | $ | 1,919,833 | $ | 1,406,986 | |||||||||||||||
Net realized gains (losses) on investments | – | (231 | ) | 1,180,902 | (474,490 | ) | 23,652,204 | 10,700,211 | |||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | – | – | 2,845,918 | (2,801,405 | ) | 10,027,900 | (10,905,076 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | – | (231 | ) | 5,478,197 | (1,893,444 | ) | 35,599,937 | 1,202,121 | |||||||||||||||||||
Capital stock transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 101,479 | 591,434 | 937,065 | 1,577,546 | |||||||||||||||||||||
Class 2 | 25,862,636 | 45,437,939 | 3,621,084 | 6,779,404 | 13,531,097 | 10,206,849 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (331,640 | ) | (113,915 | ) | (379,801 | ) | (397,844 | ) | |||||||||||||||||
Class 2 | (28,381,528 | ) | (51,872,244 | ) | (7,263,304 | ) | (6,231,374 | ) | (19,274,268 | ) | (6,971,852 | ) | |||||||||||||||
Increase (decrease) in net assets from capital stock transactions | (2,518,892 | ) | (6,434,305 | ) | (3,872,381 | ) | 1,025,549 | (5,185,907 | ) | 4,414,699 | |||||||||||||||||
Total increase (decrease) in net assets | (2,518,892 | ) | (6,434,536 | ) | 1,605,816 | (867,895 | ) | 30,414,030 | 5,616,820 | ||||||||||||||||||
Net assets at beginning of period | 89,423,256 | 95,857,792 | 96,555,355 | 97,423,250 | 116,465,646 | 110,848,826 | |||||||||||||||||||||
Net assets at end of period | $ | 86,904,364 | $ | 89,423,256 | $ | 98,161,171 | $ | 96,555,355 | $ | 146,879,676 | $ | 116,465,646 | |||||||||||||||
Capital share transactions: | |||||||||||||||||||||||||||
Proceeds from sales | |||||||||||||||||||||||||||
Class 1 | – | – | 56,585 | 338,048 | 255,827 | 491,251 | |||||||||||||||||||||
Class 2 | 25,862,637 | 45,437,939 | 2,044,593 | 3,942,956 | 3,874,913 | 3,189,672 | |||||||||||||||||||||
Net change from capital transactions | 25,862,637 | 45,437,939 | 2,101,178 | 4,281,004 | 4,130,740 | 3,680,923 | |||||||||||||||||||||
Payments for redemption of shares | |||||||||||||||||||||||||||
Class 1 | – | – | (182,696 | ) | (65,058 | ) | (100,919 | ) | (123,450 | ) | |||||||||||||||||
Class 2 | (28,381,528 | ) | (51,872,244 | ) | (4,106,052 | ) | (3,604,243 | ) | (5,260,831 | ) | (2,164,506 | ) | |||||||||||||||
Net change from capital transactions | (28,381,528 | ) | (51,872,244 | ) | (4,288,748 | ) | (3,669,301 | ) | (5,361,750 | ) | (2,287,956 | ) |
1 The Fund commenced operations on May 1, 2014.
See accompanying notes to financial statements.
94
SFT Ivy® Growth Fund1 | SFT Ivy® Small Cap Growth Fund1 | SFT Pyramis® Core Equity Fund1 | SFT T. Rowe Price Value Fund1 | ||||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||||
Operations: | |||||||||||||||||||
Investment income – net | $ | 511,542 | $ | (831,705 | ) | $ | 479,471 | $ | 1,711,314 | ||||||||||
Net realized gains (losses) on investments | (2,230,926 | ) | (268,816 | ) | 4,434,046 | (1,450,499 | ) | ||||||||||||
Net change in unrealized appreciation or depreciation of investments | 60,228,404 | 14,942,339 | 10,526,533 | 18,308,851 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 58,509,020 | 13,841,818 | 15,440,050 | 18,569,666 | |||||||||||||||
Capital stock transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | – | – | 633,044 | – | |||||||||||||||
Class 2 | 481,022,463 | 177,134,855 | 144,294,431 | 230,523,628 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | – | – | (38,980 | ) | – | ||||||||||||||
Class 2 | (38,956,795 | ) | (8,692,425 | ) | (18,394,023 | ) | (15,891,016 | ) | |||||||||||
Increase (decrease) in net assets from capital stock transactions | 442,065,668 | 168,442,430 | 126,494,472 | 214,632,612 | |||||||||||||||
Total increase (decrease) in net assets | 500,574,688 | 182,284,248 | 141,934,522 | 233,202,278 | |||||||||||||||
Net assets at beginning of period | – | – | – | – | |||||||||||||||
Net assets at end of period | $ | 500,574,688 | $ | 182,284,248 | $ | 141,934,522 | $ | 233,202,278 | |||||||||||
Capital share transactions: | |||||||||||||||||||
Proceeds from sales | |||||||||||||||||||
Class 1 | – | – | 63,118 | – | |||||||||||||||
Class 2 | 48,099,534 | 17,711,636 | 14,422,514 | 23,044,990 | |||||||||||||||
Net change from capital transactions | 48,099,534 | 17,711,636 | 14,485,632 | 23,044,990 | |||||||||||||||
Payments for redemption of shares | |||||||||||||||||||
Class 1 | – | – | (3,664 | ) | – | ||||||||||||||
Class 2 | (3,615,586 | ) | (849,366 | ) | (1,728,779 | ) | (1,524,131 | ) | |||||||||||
Net change from capital transactions | (3,615,586 | ) | (849,366 | ) | (1,732,443 | ) | (1,524,131 | ) |
95
Securian Funds Trust
Financial Highlights
SFT Advantus Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.016 | $ | 2.024 | $ | 1.880 | $ | 1.736 | $ | 1.583 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .064 | .060 | .055 | .045 | .067 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .068 | (.068 | ) | .089 | .099 | .086 | |||||||||||||||||
Total from investment operations . | .132 | (.008 | ) | .144 | .144 | .153 | |||||||||||||||||
Net asset value, end of period | $ | 2.148 | $ | 2.016 | $ | 2.024 | $ | 1.880 | $ | 1.736 | |||||||||||||
Total return (b) | 6.56 | % | (0.40 | )% | 7.69 | % | 8.30 | % | 9.69 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 5,402 | $ | 4,414 | $ | 3,156 | $ | 421 | $ | 331 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .49 | % | .51 | % | .51 | % | .50 | % | .50 | % | |||||||||||||
Net investment income | 3.07 | % | 2.96 | % | 2.77 | % | 2.48 | % | 3.94 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 193.5 | % | 235.8 | % | 205.5 | % | 270.5 | % | 247.1 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.991 | $ | 2.004 | $ | 1.866 | $ | 1.727 | $ | 1.579 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .058 | .054 | .047 | .041 | .064 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .068 | (.067 | ) | .091 | .098 | .084 | |||||||||||||||||
Total from investment operations | .126 | (.013 | ) | .138 | .139 | .148 | |||||||||||||||||
Net asset value, end of period | $ | 2.117 | $ | 1.991 | $ | 2.004 | $ | 1.866 | $ | 1.727 | |||||||||||||
Total return (b) | 6.29 | % | (0.65 | )% | 7.42 | % | 8.03 | % | 9.41 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 368,926 | $ | 356,034 | $ | 360,115 | $ | 359,289 | $ | 365,923 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .74 | % | .76 | % | .76 | % | .75 | % | .75 | % | |||||||||||||
Net investment income | 2.82 | % | 2.71 | % | 2.41 | % | 2.26 | % | 3.79 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 193.5 | % | 235.8 | % | 205.5 | % | 270.5 | % | 247.1 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
96
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Index 400 Mid-Cap Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.324 | $ | 2.497 | $ | 2.124 | $ | 2.168 | $ | 1.717 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .040 | .034 | .040 | .021 | .019 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .276 | .793 | .333 | (.065 | ) | .432 | |||||||||||||||||
Total from investment operations | .316 | .827 | .373 | (.044 | ) | .451 | |||||||||||||||||
Net asset value, end of period | $ | 3.640 | $ | 3.324 | $ | 2.497 | $ | 2.124 | $ | 2.168 | |||||||||||||
Total return (b) | 9.51 | % | 33.11 | % | 17.54 | % | (2.02 | )% | 26.24 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 15,418 | $ | 12,802 | $ | 6,656 | $ | 249 | $ | 179 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .25 | % | .28 | % | .31 | % | .29 | % | .31 | % | |||||||||||||
Net investment income | 1.15 | % | 1.15 | % | 1.65 | % | 1.09 | % | 1.02 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 12.0 | % | 9.3 | % | 8.0 | % | 16.3 | % | 13.2 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.283 | $ | 2.472 | $ | 2.109 | $ | 2.157 | $ | 1.713 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .030 | .025 | .023 | .015 | .014 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .273 | .786 | .340 | (.063 | ) | .430 | |||||||||||||||||
Total from investment operations | .303 | .811 | .363 | (.048 | ) | .444 | |||||||||||||||||
Net asset value, end of period | $ | 3.586 | $ | 3.283 | $ | 2.472 | $ | 2.109 | $ | 2.157 | |||||||||||||
Total return (b) | 9.24 | % | 32.78 | % | 17.24 | % | (2.26 | )% | 25.93 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 218,305 | $ | 215,884 | $ | 180,588 | $ | 165,651 | $ | 182,525 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .50 | % | .53 | % | .56 | % | .54 | % | .56 | % | |||||||||||||
Net investment income | .89 | % | .87 | % | .99 | % | .82 | % | .74 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 12.0 | % | 9.3 | % | 8.0 | % | 16.3 | % | 13.2 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
97
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Index 500 Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 6.822 | $ | 5.167 | $ | 4.465 | $ | 4.384 | $ | 3.818 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .132 | .115 | .111 | .083 | .072 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .783 | 1.540 | .591 | (.002 | ) | .494 | |||||||||||||||||
Total from investment operations | .915 | 1.655 | .702 | .081 | .566 | ||||||||||||||||||
Net asset value, end of period | $ | 7.737 | $ | 6.822 | $ | 5.167 | $ | 4.465 | $ | 4.384 | |||||||||||||
Total return (b) | 13.41 | % | 32.04 | % | 15.71 | % | 1.85 | % | 14.82 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 60,909 | $ | 36,387 | $ | 11,524 | $ | 421 | $ | 252 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .21 | % | .22 | % | .24 | % | .23 | % | .22 | % | |||||||||||||
Net investment income | 1.83 | % | 1.88 | % | 2.19 | % | 1.88 | % | 1.82 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 4.8 | % | 4.5 | % | 2.6 | % | 4.6 | % | 4.1 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 6.737 | $ | 5.115 | $ | 4.432 | $ | 4.362 | $ | 3.809 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .110 | .095 | .088 | .070 | .061 | ||||||||||||||||||
Net gains (both realized and unrealized) | .775 | 1.527 | .595 | – | .492 | ||||||||||||||||||
Total from investment operations | .885 | 1.622 | .683 | .070 | .553 | ||||||||||||||||||
Net asset value, end of period | $ | 7.622 | $ | 6.737 | $ | 5.115 | $ | 4.432 | $ | 4.362 | |||||||||||||
Total return (b) | 13.13 | % | 31.71 | % | 15.42 | % | 1.59 | % | 14.54 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 585,532 | $ | 540,439 | $ | 432,694 | $ | 418,980 | $ | 452,113 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .46 | % | .47 | % | .49 | % | .48 | % | .47 | % | |||||||||||||
Net investment income | 1.56 | % | 1.59 | % | 1.80 | % | 1.60 | % | 1.55 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 4.8 | % | 4.5 | % | 2.6 | % | 4.6 | % | 4.1 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
98
Securian Funds Trust
Financial Highlights – continued
SFT Advantus International Bond Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.468 | $ | 2.464 | $ | 2.115 | $ | 2.116 | $ | 1.853 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .074 | .078 | .086 | .089 | .094 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | (.025 | ) | (.074 | ) | .263 | (.090 | ) | .169 | |||||||||||||||
Total from investment operations | .049 | .004 | .349 | (.001 | ) | .263 | |||||||||||||||||
Net asset value, end of period | $ | 2.517 | $ | 2.468 | $ | 2.464 | $ | 2.115 | $ | 2.116 | |||||||||||||
Total return (b) | 1.96 | % | 0.17 | % | 16.49 | % | (0.01 | )% | 14.19 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 938 | $ | 756 | $ | 606 | $ | 395 | $ | 293 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .86 | % | .87 | % | .94 | % | .95 | % | .95 | % | |||||||||||||
Net investment income | 2.93 | % | 3.18 | % | 3.76 | % | 4.07 | % | 4.65 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 19.3 | % | 17.7 | % | 38.8 | % | 18.8 | % | 11.0 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 2.438 | $ | 2.440 | $ | 2.100 | $ | 2.105 | $ | 1.848 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .067 | .071 | .079 | .083 | .086 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | (.026 | ) | (.073 | ) | .261 | (.088 | ) | .171 | |||||||||||||||
Total from investment operations | .041 | (.002 | ) | .340 | (.005 | ) | .257 | ||||||||||||||||
Net asset value, end of period | $ | 2.479 | $ | 2.438 | $ | 2.440 | $ | 2.100 | $ | 2.105 | |||||||||||||
Total return (b) | 1.70 | % | (0.08 | )% | 16.20 | % | (0.26 | )% | 13.90 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 124,174 | $ | 128,885 | $ | 127,590 | $ | 110,987 | $ | 111,685 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.11 | % | 1.12 | % | 1.19 | % | 1.20 | % | 1.19 | % | |||||||||||||
Net investment income | 2.69 | % | 2.92 | % | 3.51 | % | 3.85 | % | 4.28 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 19.3 | % | 17.7 | % | 38.8 | % | 18.8 | % | 11.0 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
99
Securian Funds Trust
Financial Highlights – continued
SFT Advantus Managed Volatility Fund
Year or period ended December 31, | |||||||||||
2014 | 2013 (a) | ||||||||||
Net asset value, beginning of period | $ | 10.731 | $ | 10.000 | |||||||
Income from investment operations: | |||||||||||
Net investment income (b) | .039 | .008 | |||||||||
Net gains (both realized and unrealized) | .833 | .723 | |||||||||
Total from investment operations | .872 | .731 | |||||||||
Net asset value, end of period | $ | 11.603 | $ | 10.731 | |||||||
Total return (c) | 8.12 | % | 7.31 | % | |||||||
Net assets, end of period (in thousands) | $ | 131,047 | $ | 52,931 | |||||||
Ratios to average net assets: | |||||||||||
Expenses before waiver (d) | 1.19 | % | 1.37 | %(e) | |||||||
Expenses net of waiver (d)(f) | .80 | % | .80 | %(e) | |||||||
Net investment income | .35 | % | .12 | %(e) | |||||||
Portfolio turnover rate (excluding short-term securities) | 1.5 | % | 32.1 | % |
(a) The Fund commenced operations on May 1, 2013.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Adjusted to an annual basis.
(f) Ratio is net of fees waived by the advisor (see note 4).
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Financial Highlights – continued
SFT Advantus Money Market Fund
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | – | – | – | – | – | ||||||||||||||||||
Total from investment operations | – | – | – | – | – | ||||||||||||||||||
Dividends from net investment income | – | – | – | – | – | (b) | |||||||||||||||||
Net asset value, end of period | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | $ | 1.000 | |||||||||||||
Total return (c) | – | % | – | % | – | % | – | % | 0.03 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 86,904 | $ | 89,423 | $ | 95,858 | $ | 108,115 | $ | 106,901 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses before waiver (d) | .83 | % | .86 | % | .83 | % | .69 | % | .78 | % | |||||||||||||
Expenses net of waiver (d)(e) | .10 | % | .13 | % | .17 | % | .14 | % | .23 | % | |||||||||||||
Net Investment Income | – | % | – | % | – | % | – | % | – | % |
(a) Based on average shares outstanding during the year.
(b) Amount represents less than $0.0005 per share.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Ratio is net of fees waived by the advisor and distributor (see note 4).
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SFT Advantus Mortgage Securities Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.731 | $ | 1.761 | $ | 1.698 | $ | 1.587 | $ | 1.482 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .031 | .029 | .038 | .025 | .048 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .073 | (.059 | ) | .025 | .086 | .057 | |||||||||||||||||
Total from investment operations | .104 | (.030 | ) | .063 | .111 | .105 | |||||||||||||||||
Net asset value, end of period | $ | 1.835 | $ | 1.731 | $ | 1.761 | $ | 1.698 | $ | 1.587 | |||||||||||||
Total return (b) | 6.03 | % | (1.73 | )% | 3.75 | % | 7.00 | % | 7.02 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 813 | $ | 985 | $ | 521 | $ | 196 | $ | 157 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .63 | % | .68 | % | .68 | % | .63 | % | .62 | % | |||||||||||||
Net investment income | 1.73 | % | 1.67 | % | 2.18 | % | 1.54 | % | 3.08 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 232.2 | % | 370.7 | % | 231.3 | % | 241.8 | % | 252.0 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 1.709 | $ | 1.744 | $ | 1.685 | $ | 1.579 | $ | 1.479 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .026 | .025 | .034 | .022 | .046 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .073 | (.060 | ) | .025 | .084 | .054 | |||||||||||||||||
Total from investment operations | .099 | (.035 | ) | .059 | .106 | .100 | |||||||||||||||||
Net asset value, end of period | $ | 1.808 | $ | 1.709 | $ | 1.744 | $ | 1.685 | $ | 1.579 | |||||||||||||
Total return (b) | 5.76 | % | (1.98 | )% | 3.49 | % | 6.73 | % | 6.76 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 97,348 | $ | 95,570 | $ | 96,902 | $ | 105,053 | $ | 112,343 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .88 | % | .93 | % | .93 | % | .87 | % | .87 | % | |||||||||||||
Net investment income | 1.48 | % | 1.44 | % | 1.98 | % | 1.34 | % | 3.00 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 232.2 | % | 370.7 | % | 231.3 | % | 241.8 | % | 252.0 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
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Financial Highlights – continued
SFT Advantus Real Estate Securities Fund
Class 1 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.143 | $ | 3.100 | $ | 2.623 | $ | 2.482 | $ | 1.920 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .062 | .050 | .052 | .031 | .030 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .903 | (.007 | ) | .425 | .110 | .532 | |||||||||||||||||
Total from investment operations | .965 | .043 | .477 | .141 | .562 | ||||||||||||||||||
Net asset value, end of period | $ | 4.108 | $ | 3.143 | $ | 3.100 | $ | 2.623 | $ | 2.482 | |||||||||||||
Total return (b) | 30.70 | % | 1.40 | % | 18.20 | % | 5.68 | % | 29.23 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 5,489 | $ | 3,713 | $ | 2,522 | $ | 458 | $ | 308 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | .85 | % | .90 | % | .93 | % | .92 | % | .94 | % | |||||||||||||
Net investment income | 1.70 | % | 1.55 | % | 1.75 | % | 2.44 | % | 1.38 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 85.4 | % | 39.8 | % | 47.6 | % | 57.7 | % | 66.9 | % | |||||||||||||
Class 2 Shares | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net asset value, beginning of period | $ | 3.104 | $ | 3.069 | $ | 2.603 | $ | 2.469 | $ | 1.915 | |||||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income (a) | .050 | .038 | .034 | .023 | .020 | ||||||||||||||||||
Net gains (losses) (both realized and unrealized) | .893 | (.003 | ) | .432 | .111 | .534 | |||||||||||||||||
Total from investment operations | .943 | .035 | .466 | .134 | .554 | ||||||||||||||||||
Net asset value, end of period | $ | 4.047 | $ | 3.104 | $ | 3.069 | $ | 2.603 | $ | 2.469 | |||||||||||||
Total return (b) | 30.37 | % | 1.15 | % | 17.90 | % | 5.42 | % | 28.91 | % | |||||||||||||
Net assets, end of period (in thousands) | $ | 141,391 | $ | 112,753 | $ | 108,327 | $ | 98,444 | $ | 101,801 | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||
Expenses (c) | 1.10 | % | 1.15 | % | 1.18 | % | 1.16 | % | 1.19 | % | |||||||||||||
Net investment income | 1.40 | % | 1.18 | % | 1.16 | % | 2.12 | % | .90 | % | |||||||||||||
Portfolio turnover rate (excluding short-term securities) | 85.4 | % | 39.8 | % | 47.6 | % | 57.7 | % | 66.9 | % |
(a) Based on average shares outstanding during the year.
(b) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(c) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
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Financial Highlights – continued
SFT Ivy® Growth Fund
Period ended December 31, 2014 (a) | |||||||
Net asset value, beginning of period | $ | 10.000 | |||||
Income from investment operations: | |||||||
Net investment income (b) | .011 | ||||||
Net gains (both realized and unrealized) | 1.242 | ||||||
Total from investment operations | 1.253 | ||||||
Net asset value, end of period | $ | 11.253 | |||||
Total return (c) | 12.53 | % | |||||
Net assets, end of period (in thousands) | $ | 500,575 | |||||
Ratios to average net assets: | |||||||
Expenses (d) | .96 | %(e) | |||||
Net investment income | .15 | %(e) | |||||
Portfolio turnover rate (excluding short-term securities) | 44.7 | % |
(a) The Fund commenced operations on May 1, 2014.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Adjusted to an annual basis.
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Financial Highlights – continued
SFT Ivy® Small Cap Growth Fund
Period ended December 31, 2014 (a) | |||||||
Net asset value, beginning of period | $ | 10.000 | |||||
Income from investment operations: | |||||||
Net investment income (b) | (.048 | ) | |||||
Net gains (both realized and unrealized) | .858 | ||||||
Total from investment operations | .810 | ||||||
Net asset value, end of period | $ | 10.810 | |||||
Total return (c) | 8.10 | % | |||||
Net assets, end of period (in thousands) | $ | 182,284 | |||||
Ratios to average net assets: | |||||||
Expenses (d) | 1.22 | %(e) | |||||
Net investment income | (.71 | )%(e) | |||||
Portfolio turnover rate (excluding short-term securities) | 115.8 | % |
(a) The Fund commenced operations on May 1, 2014.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Adjusted to an annual basis.
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Financial Highlights – continued
SFT Pyramis® Core Equity Fund
Class 1 Shares | |||||||
Period ended December 31, 2014 (a) | |||||||
Net asset value, beginning of period | $ | 10.000 | |||||
Income from investment operations: | |||||||
Net investment income (b) | .053 | ||||||
Net gains (both realized and unrealized) | 1.095 | ||||||
Total from investment operations | 1.148 | ||||||
Net asset value, end of period | $ | 11.148 | |||||
Total return (c) | 11.48 | % | |||||
Net assets, end of period (in thousands) | $ | 663 | |||||
Ratios to average net assets: | |||||||
Expenses (d) | .86 | %(e) | |||||
Net investment income | .74 | %(e) | |||||
Portfolio turnover rate (excluding short-term securities) | 54.2 | % | |||||
Class 2 Shares | |||||||
Period ended December 31, 2014 (a) | |||||||
Net asset value, beginning of period | $ | 10.000 | |||||
Income from investment operations: | |||||||
Net investment income (b) | .035 | ||||||
Net gains (both realized and unrealized) | 1.094 | ||||||
Total from investment operations | 1.129 | ||||||
Net asset value, end of period | $ | 11.129 | |||||
Total return (c) | 11.29 | % | |||||
Net assets, end of period (in thousands) | $ | 141,272 | |||||
Ratios to average net assets: | |||||||
Expenses (d) | 1.11 | %(e) | |||||
Net investment income | .49 | %(e) | |||||
Portfolio turnover rate (excluding short-term securities) | 54.2 | % |
(a) The Fund commenced operations on May 1, 2014.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Adjusted to an annual basis.
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Financial Highlights – continued
SFT T. Rowe Price Value Fund
Period ended December 31, 2014 (a) | |||||||
Net asset value, beginning of period | $ | 10.000 | |||||
Income from investment operations: | |||||||
Net investment income (b) | .077 | ||||||
Net gains (both realized and unrealized) | .759 | ||||||
Total from investment operations | .836 | ||||||
Net asset value, end of period | $ | 10.836 | |||||
Total return (c) | 8.36 | % | |||||
Net assets, end of period (in thousands) | $ | 233,202 | |||||
Ratios to average net assets: | |||||||
Expenses (d) | 1.02 | %(e) | |||||
Net investment income | 1.10 | %(e) | |||||
Portfolio turnover rate (excluding short-term securities) | 105.1 | % |
(a) The Fund commenced operations on May 1, 2014.
(b) Based on average shares outstanding during the year.
(c) Total return figures are based on a share outstanding throughout the period and assume reinvestment of distributions at net asset value. Total return figures do not reflect charges pursuant to the terms of the variable life insurance policies and variable annuity contracts funded by separate accounts that invest in the Fund's shares. For periods less than one year, total return presented has not been annualized.
(d) In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.
(e) Adjusted to an annual basis.
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Securian Funds Trust
Notes to Financial Statements
December 31, 2014
(1) Organization
Securian Funds Trust (the "Trust") is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the "1940 Act") as a no-load, diversified open-end management investment company, except that SFT Advantus International Bond Fund operates as a non-diversified, open-end management investment company. The Trust is a series trust that includes several different Funds: SFT Advantus Bond, SFT Advantus Index 400 Mid-Cap, SFT Advantus Index 500, SFT Advantus International Bond, SFT Advantus Managed Volatility, SFT Advantus Money Market, SFT Advantus Mortgage Securities, SFT Advantus Real Estate Securities, SFT Ivy® Growth, SFT Ivy® Small Cap Growth, SFT Pyramis® Core Equity, and SFT T. Rowe Price Value Funds. The Trust's prospectus provides a detailed description of each Fund's investment objective, policies and strategies. The Funds issue two classes of shares: Class 1 and Class 2, except for the SFT Advantus Money Market Fund, SFT Advantus Managed Volatility Fund, SFT Ivy® Growth Fund, SFT Ivy® Small Cap Growth Fund, and SFT T. Rowe Price Value Fund which offer shares in only one class. Class 2 shares and shares of the SFT Money Market Fund, SFT Managed Volatility Fund, SFT Ivy® Growth Fund, SFT Ivy® Small Cap Growth Fund, and SFT T. Rowe Price Value Fund are subject to a 12b-1 distribution fee. Both classes of shares have identical voting, dividend, liquidation and other rights, and the same terms and conditions, except that Class 1 shares are not subject to a 12b-1 distribution fee. Income, expenses (other than Rule 12b-1 fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.
Each Fund, other than SFT Advantus Managed Volatility Fund and SFT T. Rowe Price Value Fund, qualifies for federal income tax purposes as a partnership under the Internal Revenue Code of 1986, as amended (the "Code"). SFT Advantus Managed Volatility Fund and SFT T. Rowe Price Value Fund are treated as disregarded entities for federal income tax purposes. A Fund is treated, for federal income tax purposes, as a partnership if it has more than one shareholder. If a Fund at any time has just one shareholder, as is the case for SFT Advantus Managed Volatility Fund and SFT T. Rowe Price Value Fund, it is treated as a disregarded entity for federal income tax purposes. While the Trust anticipates that each Fund, other than SFT Advantus Managed Volatility Fund and SFT T. Rowe Price Value Fund, will always have two shareholders, Minnesota Life Insurance Company ("Minnesota Life") and Securian Life Insurance Company ("Securian Life"), a wholly owned subsidiary of Minnesota Life, such ownership could change and accordingly a Fund may at some time have only one shareholder and would be treated as a disregarded entity for federal income tax purposes. A Fund's election to be treated as a partnership is not expected to result in any material adverse federal income tax consequences to any owner of a variable annuity contract or variable life insurance policy, or in the tax treatment of any such contract or policy.
The Trust accounts for the assets, liabilities and operations of each Fund separately. Shares of the Trust are not offered directly to the public, but sold only to Minnesota Life and Securian Life in connection with Minnesota Life and Securian Life variable contracts and policies, and to certain other separate accounts of life insurance affiliates of Minnesota Life and Securian Life, and may also be offered to certain qualified plans.
(2) Summary of Significant Accounting Policies
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, "Financial Services—Investment Companies." The significant accounting policies followed consistently by the Trust are as follows:
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities, as of the balance sheet date and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
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Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
Investments in Securities
Each Fund's net asset value is generally calculated as of the close of normal trading on the New York Stock Exchange (typically 3:00 p.m. Central Time). Investments in securities traded on a U.S. or foreign securities exchange are valued at the last sale price on that exchange prior to the time when assets are valued; securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued on the basis of the last current bid price, by an independent pricing service or at a price deemed best to reflect fair value quoted by dealers who make markets in these securities. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality and prepayment speeds, as applicable. When market quotations are not readily available, securities are valued at fair value as determined in good faith by the Advantus Capital Management, Inc. Valuation Committee ("the Committee") under the supervision of the Trust's Board of Trustees ("the Board") and in accordance with Board-approved valuation policies and procedures. The Board has delegated the daily oversight of the securities valuation function to the Committee whose members ensure the valuations comply with the valuation policies and affirms the reasonableness of the fair valuation determinations. The fair valued securities are reviewed by the Board at their quarterly meetings.
A Fund's investments will also be valued at fair value by the Valuation Committee if Advantus Capital determines that an event impacting the value of an investment occurred after the close of the security's primary exchange or market (for example, a foreign exchange or market) and before the time the Fund's share is calculated. If a significant event impacting the value of a security or group of securities occurs, the Valuation Committee is immediately notified and the members meet promptly to determine whether fair value pricing is needed in accordance with the Fund's valuation procedures and, if so, to approve the pricing methodology to be used.
Short-term securities, with the exception of those held in the SFT Advantus Money Market Fund, are valued at market. Pursuant to Rule 2a-7 of the 1940 Act, all securities in the SFT Advantus Money Market Fund are valued at amortized cost, which approximates market value, in order to maintain a constant net asset value of $1.00 per share. However, there is no assurance the SFT Advantus Money Market Fund will maintain the $1.00 net asset value.
Security transactions are accounted for on the date the securities are purchased or sold. Realized gains and losses are calculated using the first in, first out basis. Paydowns of securities are recorded as receivables as of the due date, which varies by the issuer. Dividend income is recognized on the ex-dividend date or upon dividend notification for certain foreign securities, and interest income, including amortization of bond premium and accretion of bond discount computed on an effective yield basis, is accrued daily.
Foreign Currency Translations and Forward Foreign Currency Contracts
Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars at the closing rate of exchange. Foreign currency amounts related to the purchase or sale of securities, income and expenses are translated at the exchange rate on the transaction date. The Fund isolates 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.
Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between trade and settlement dates on security transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.
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Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
SFT Advantus International Bond Fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuations. A forward foreign currency contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date. SFT Advantus International Bond Fund may also enter into these contracts for purposes of increasing exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. The net U.S. dollar value of foreign currency underlying all contractual commitments held by SFT Advantus International Bond Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. SFT Advantus International Bond Fund is subject to the credit risk that the other party will not complete the obligations of the contract. The fair values of the forward currency exchange contracts are obtained from an independent pricing source.
Futures Transactions
To gain exposure to, or protect itself from market changes, the Funds (excluding the SFT Advantus Money Market Fund) may buy and sell financial futures contracts traded on any U.S. or foreign exchange. The Funds may also buy and write put and call options on these futures contracts. Risks of entering into futures contracts and related options include the possibility of an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities.
Upon entering into a futures contract, a Fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value as determined by each relevant clearing agency and is aggregated at a Futures Commission Merchant (FCM) which is registered with the Commodity Futures Trading Commission (CFTC) or the applicable regulator. Subsequent payments (variation margin) are made or received by a Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. A Fund recognizes a realized gain or loss when the contract is closed or expired. In the event of default, counterparty risk is significantly reduced as creditors to the FCM do not have claim to a Fund's assets in the segregated account. For a listing of open futures contracts see the Investments in Securities for each Fund.
Interest Rate Swaps
The SFT Advantus International Bond Fund may enter into interest rate swap contracts primarily to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange interest rate cash flows during the life of the agreement. Each party's payment obligation is computed based on different interest rates, applied to a notional amount. Interest rate swaps often exchange payments based on a fixed rate for payments linked to a floating rate (usually Libor).
These agreements are executed on a registered exchange ("centrally cleared interest rate swaps"), significantly reducing risk from counterparty default. Upon entering into an interest rate swap contract, a Fund is required to pledge an initial margin, and the daily change in fair value is accounted for as a variation margin payable or receivable on the Statement of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized.
Options Transactions
Each Fund (excluding the SFT Advantus Money Market Fund) may write (i.e., sell) covered call and secured put options and purchase and sell put and call options written by others. Options are a type of derivative financial instrument. The Funds may invest in derivative financial instruments, including options, in order to manage risk or gain exposure to various other investments or markets. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that a Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is
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Securian Funds Trust
Notes to Financial Statements – continued
(2) Summary of Significant Accounting Policies – (continued)
exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.
Option contracts are valued daily and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. The Funds designate collateral consisting of cash, U.S. government securities or other liquid assets sufficient to collateralize the market value of written options.
Repurchase Agreements
Each Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. Each Fund requires at all times that the repurchase agreement be collateralized by cash, U.S. Government securities, U.S. Government-sponsored enterprise securities or corporate securities having a value equal to, or in excess of, the value of the repurchase agreement. If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of those securities has declined, a Fund may incur a loss upon disposition of the securities. Repurchase agreements are carried at amortized cost. At December 31, 2014, no Funds were invested in repurchase agreements.
Federal Taxes
None of the Funds in the Trust are recognized as regulated investment companies for federal income tax purposes, but instead are treated as a partnership as long as each Fund has more than one shareholder. A Fund with only a single shareholder, such as SFT Advantus Managed Volatility Fund and SFT T. Rowe Price Value Fund, will be taxed as a disregarded entity for federal income tax purposes. The Funds are not required to pay federal or Delaware income taxes on their net investment income and net capital gains, as each Fund is treated as either a partnership or a disregarded entity for federal income tax purposes. All interest, dividends, gains and losses of each Fund are deemed to have been "passed through" to the shareholders in proportion to its holdings of the Fund regardless of whether such interest, dividends or gains and losses have been distributed by the Fund.
The FASB, Accounting Standards Codification 740, Income Taxes (ASC 740), provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. The Funds have evaluated the implications of ASC 740 for all open tax years, and have determined there is no impact to the Funds' financial statements as of the year ended December 31, 2014. The Funds' federal and state income returns for which the applicable statutes of limitations have not expired (2011, 2012, 2013) remain subject to examination by the Internal Revenue Service and states department of revenue.
Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of temporary book-to-tax differences.
Distributions to Shareholders
Distributions to shareholders from net investment income, if any, for the SFT Advantus Money Market Fund are declared daily and reinvested at month-end in additional shares of capital stock. As partnerships, the Funds are not required to distribute taxable income, and Funds other than SFT Advantus Money Market Fund will not distribute taxable income.
Securities Purchased on a When-Issued Basis
Delivery and payment for securities which have been purchased by a Fund on a forward commitment or when-issued basis can take place a month or more after the transaction date. During this period, such securities are subject to market fluctuations. As of December 31, 2014, the SFT Advantus Bond Fund and SFT Advantus
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(2) Summary of Significant Accounting Policies – (continued)
Mortgage Securities Fund had entered into outstanding, when-issued or forward commitments at fair value of $11,187,938 and $10,479,816, respectively. The Funds have segregated assets to cover such when-issued and forward commitments.
(3) Investment Security Transactions
The cost of purchases and proceeds from sales of investment securities, other than temporary investments in short-term securities, for the year ended December 31, 2014 were as follows:
Non-U.S. Government | U.S. Government* | ||||||||||||||||||
Purchases | Sales | Purchases | Sales | ||||||||||||||||
SFT Advantus Bond Fund | $ | 140,675,493 | $ | 124,936,206 | $ | 569,684,498 | $ | 582,851,220 | |||||||||||
SFT Advantus Index 400 Mid-Cap Fund | 26,775,200 | 36,965,536 | – | – | |||||||||||||||
SFT Advantus Index 500 Fund | 29,952,412 | 27,971,784 | – | – | |||||||||||||||
SFT Advantus International Bond Fund | 17,693,007 | 25,248,133 | – | – | |||||||||||||||
SFT Advantus Managed Volatility Fund | 33,783,471 | 578,913 | 2,799,340 | 115,969 | |||||||||||||||
SFT Advantus Mortgage Securities Fund | 11,554,740 | 8,198,395 | 209,837,023 | 215,303,838 | |||||||||||||||
SFT Advantus Real Estate Securities Fund | 115,251,534 | 114,934,450 | – | – | |||||||||||||||
SFT Ivy® Growth Fund** | 648,174,970 | 218,387,063 | – | – | |||||||||||||||
SFT Ivy® Small Cap Growth Fund** | 360,940,129 | 198,421,403 | – | – | |||||||||||||||
SFT Pyramis® Core Equity Fund** | 201,847,537 | 77,266,149 | – | – | |||||||||||||||
SFT T. Rowe Price Value Fund** | 456,668,482 | 241,268,855 | – | – |
* Includes U.S. government-sponsored enterprise securities.
** The Fund commenced operations on 05/01/14.
(4) Expenses and Related Party Transactions
The Funds have an investment advisory agreement with Advantus Capital, a wholly-owned subsidiary of Securian Financial Group, Inc. ("Securian Financial Group"). Under the advisory agreement, Advantus Capital manages the Funds' investments and provides research, statistical and advisory services and pays related office rental and executive expenses and salaries.
Each Fund of the Trust pays Advantus Capital an annual fee, based on average daily net assets, in the following amounts:
Annual Fee on Net Assets | |||||||||||
SFT Advantus Bond Fund | 0.40% of net assets to $1 billion; and 0.35% of net assets exceeding $1 billion | ||||||||||
SFT Advantus Index 400 Mid-Cap Fund | 0.15% of net assets to $1 billion; and 0.10% of net assets exceeding $1 billion | ||||||||||
SFT Advantus Index 500 Fund | 0.15% of net assets to $1 billion; and 0.10% of net assets exceeding $1 billion | ||||||||||
SFT Advantus International Bond Fund | 0.60% of net assets to $1 billion; and 0.55% of net assets exceeding $1 billion | ||||||||||
SFT Advantus Managed Volatility Fund | 0.65% of all assets | ||||||||||
SFT Advantus Money Market Fund | 0.30% of net assets to $1 billion; and 0.25% of net assets exceeding $1 billion | ||||||||||
SFT Advantus Mortgage Securities Fund | 0.40% of net assets to $1 billion; and 0.35% of net assets exceeding $1 billion | ||||||||||
SFT Advantus Real Estate Securities Fund | 0.70% of net assets to $1 billion; and 0.65% of net assets exceeding $1 billion | ||||||||||
SFT Ivy® Growth Fund | 0.67% of net assets to $500 million; and 0.625% of next $300 million of net assets; and 0.60% of next $200 million of net assets; and 0.50% of net assets exceeding $1 billion | ||||||||||
SFT Ivy® Small Cap Growth Fund | 0.85% of net assets to $1 billion; and 0.80% of next $2 billion of net assets; and 0.76% of net assets exceeding $3 billion | ||||||||||
SFT Pyramis® Core Equity Fund | 0.65% of all assets | ||||||||||
SFT T. Rowe Price Value Fund | 0.67% of net assets to $1 billion; and 0.65% of next $1.5 billion of net assets; and 0.60% of net assets exceeding $2.5 billion |
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Notes to Financial Statements – continued
(4) Expenses and Related Party Transactions – (continued)
Advantus Capital has a sub-advisory agreement with Franklin Advisers, Inc. ("Franklin"), a registered investment Advisor for the SFT Advantus International Bond Fund, under which Advantus Capital pays Franklin an annual fee of 0.37% based on average daily net assets.
Advantus Capital has a sub-advisory agreement with Waddell & Reed Investment Management Company ("WRIMCO"), a registered investment Advisor for the SFT Ivy® Growth Fund and the SFT Ivy® Small Cap Growth Fund, under which Advantus Capital pays WRIMCO an annual fee ranging from 0.33% to 0.55% and 0.40% to 0.82% respectively, based on average daily net assets.
Advantus Capital has a sub-advisory agreement with Pyramis Global Advisors, LLC ("Pyramis"), a registered investment Advisor for the SFT Pyramis® Core Equity Fund, under which Advantus Capital pays Pyramis an annual fee ranging from 0.31% to 0.33% based on average daily net assets.
Advantus Capital has a sub-advisory agreement with T. Rowe Price Associates, Inc. ("T. Rowe Price"), a registered investment Advisor for the SFT T. Rowe Price Value Fund, under which Advantus Capital pays T. Rowe Price an annual fee ranging from 0.30% to 0.50% based on average daily net assets.
The Trust bears certain other operating expenses including independent trustees' fees, federal registration fees, printing and shareholder report expenses, legal fees, audit fees, custodian fees, compensation paid to the Trust's Chief Compliance Officer, and other miscellaneous expenses. Each Fund will pay all expenses directly related to its individual operations. Operating expenses not attributable to a specific Fund will be allocated based upon the proportionate daily net assets of each Fund.
Administrative Services Fee
The Trust has an agreement with Securian Financial Group under which Securian Financial Group provides accounting, legal and other administrative services. Each Fund reimburses Securian Financial Group quarterly for the actual costs incurred in performing such services, as determined in accordance with Securian Financial Group's customary cost accounting procedures consistently applied. Total quarterly administrative fees by Fund range from $3,057 to $14,500.
Accounting Services
The Trust has an agreement with State Street Bank and Trust Company ("State Street") in which State Street provides daily fund accounting and investment administration services. In 2014, these fees ranged from .01% to .05% of net assets depending on the size and makeup of the respective Fund. The fees are based upon a calculation of multiple factors including base fees, size of assets, and certain other fees.
Distribution Fees
The Trust has adopted a Rule 12b-1 Distribution Plan which covers all of its Class 2 shares and its SFT Advantus Managed Volatility Fund, SFT Advantus Money Market Fund, SFT Ivy® Growth Fund, SFT Ivy® Small Cap Growth Fund, and SFT T. Rowe Price Value Fund ("Covered Funds"). Each Covered Fund pays distribution fees at the annual rate of .25% of the average daily net assets of the Covered Fund. These fees are paid out of the Covered Fund's assets, which reduces a Covered Fund's net assets as do other Covered Fund expenses. The fees are paid to Securian Financial Services, Inc. ("Securian Financial"), the Trust's underwriter, to pay for distribution-related expenses and activities in connection with the distribution of the Covered Fund's shares. Securian Financial may also use the fees to pay insurance companies, dealers or others for certain non-distribution services as provided for in the Distribution Plan.
Net Investment Income Maintenance Agreement for the SFT Advantus Money Market Fund
Effective May 1, 2012, the Board of Trustees of the Trust approved a Restated Net Investment Income Maintenance Agreement among Securian Funds Trust (on behalf of SFT Advantus Money Market Fund), Advantus Capital and Securian Financial. Under such Agreement, Advantus Capital agrees to waive, reimburse
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Notes to Financial Statements – continued
(4) Expenses and Related Party Transactions – (continued)
or pay SFT Advantus Money Market Fund expenses so that the Fund's daily net investment income does not fall below zero. Securian Financial may also waive its Rule 12b-1 fees. Advantus Capital and Securian Financial each has the option under the Agreement to recover the full amount waived, reimbursed or paid (the "Expense Waiver") on any day on which the Fund's net investment income exceeds zero. On any day, however, the Expense Waiver does not constitute an obligation of the Fund unless Advantus Capital or Securian Financial has expressly exercised its right to recover a specified portion of the Expense Waiver on that day, in which case such specified portion is then due and payable by the Fund. In addition, the right of Advantus Capital and/or Securian Financial to recover the Expense Waiver is subject to the following limitations: (1) if a repayment of the Expense Waiver by the Fund would cause the Fund's net investment income to fall below zero, such repayment is deferred until a date when repayment would not cause the Fund's net investment income to fall below zero; (2) the right to recover any portion of the Expense Waiver expires three years after the effective date of that portion of the Expense Waiver; and (3) any repayment of the Expense Waiver by the Fund cannot cause the Fund's expense ratio to exceed 1.25%. For the year ended December 31, 2014, the advisory, 12b-1 distribution and other fee waivers totaled $262,635, $218,862 and $158,430 respectively. These amounts are reflected as fees waived in the accompanying Statement of Operations. As of December 31, 2014, Advantus Capital and Securian Financial have collectively waived a cumulative total of $3,455,206 pursuant to the Agreement, including expenses waived under the prior agreement with Advantus Series Fund, Inc., of which $1,994,374 was eligible for recovery by Advantus Capital and Securian Financial as of such date. Amounts subject to potential recovery for the years ended December 31, 2015 and 2016 are $1,328,431 and $639,927 respectively. If Advantus Capital and Securian Financial exercise their rights to be paid such waived amounts, the Fund's future yield will be negatively affected for an indefinite period. The Agreement shall continue in effect following May 1, 2015, provided such continuance is specifically approved by a majority of the Trust's independent Trustees.
SFT Advantus Managed Volatility Fund Expense Waivers
Advantus Capital and the Trust, on behalf of the SFT Advantus Managed Volatility Fund, have entered into an Expense Limitation Agreement, dated May 1, 2013, which limits the operating expenses of the Fund, excluding certain expenses (such as interest expense, acquired fund fees, cash overdraft fees, taxes, brokerage commissions, other expenditures which are capitalized in accordance with the generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Fund's business), to 0.80% of the Fund's average daily net assets through April 30, 2015. The Agreement renews annually for a full year each year thereafter unless terminated by Advantus Capital upon at least 30 days' notice prior to the end of a contract term. The Fund is authorized to reimburse Advantus Capital for management fees previously waived and/or for the cost of expenses previously paid by Advantus Capital pursuant to this agreement, provided that such reimbursement will not cause the Fund to exceed any limits in effect at the time of such reimbursement. The Fund's ability to reimburse Advantus Capital in this manner only applies to fees waived or reimbursements made by Advantus Capital within the three fiscal years prior to the date of such reimbursement. For the year ended December 31, 2014, the advisory waivers totaled $309,108. This amount is reflected as fees waived in the accompanying Statement of Operations. As of December 31, 2014, Advantus Capital has waived a cumulative total of $439,975 pursuant to the Agreement, of which $439,975 was eligible for recovery by Advantus Capital and Securian Financial as of such date. Amounts subject to potential recovery for the years ended December 31, 2015 and 2016 are $439,975 and $130,867 respectively. To the extent that the Fund makes such reimbursements to Advantus Capital, the amount of the reimbursements will be reflected in the financial statements in the Fund's shareholder reports and in Other Expenses under Fees and Expenses of the Fund.
(5) Illiquid Securities
Each Fund currently limits investments in illiquid securities to 15% of net assets at the time of purchase, except for the SFT Advantus Money Market Fund which limits its investment in illiquid securities to 5% of net
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(5) Illiquid Securities – (continued)
assets. At December 31, 2014, the SFT Advantus Bond Fund, SFT Advantus Mortgage Securities Fund and SFT Advantus Managed Volatility Fund held illiquid securities of $11,010,189, $2,426,775 and $498,254, respectively, which represent 2.9%, 2.5% and 0.4% of net assets, respectively. Pursuant to guidelines adopted by the Trust's Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the percent limitations specified above.
The following is a list of illiquid securities by fund, including acquisition date and cost, as of December 31, 2014:
Acquisition Date | Cost | ||||||||||
SFT Advantus Bond Fund | |||||||||||
American Airlines 2013-2 Class B Pass Through Trust | 12/17/2013 | $ | 1,662,197 | ||||||||
BHN I Mortgage Fund | Various | 69,485 | |||||||||
Countryplace Manufactured Housing Contract Trust | 06/29/2005 | 1,754,869 | |||||||||
FAN Engine Securitization, Ltd. | 10/18/2013 | 660,657 | |||||||||
Hometown Commercial Mortgage | Various | 1,430,684 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | 03/22/2010 | 877,920 | |||||||||
Multi Security Asset Trust | Various | 2,561,547 | |||||||||
Symetra Financial Corp. | Various | 2,230,249 | |||||||||
$ | 11,247,608 | ||||||||||
SFT Advantus Managed Volatility Fund | |||||||||||
Aquarion Co. | 08/19/2014 | $ | 497,950 | ||||||||
SFT Advantus Mortgage Securities Fund | |||||||||||
BHN I Mortgage Fund | Various | $ | 62,475 | ||||||||
CountryPlace Manufactured Housing Contract Trust | 06/29/2005 | 283,794 | |||||||||
FAN Engine Securitization, Ltd. | 10/18/2013 | 176,687 | |||||||||
Government National Mortgage Association (GNMA) | 06/17/2003 | 533,496 | |||||||||
Hometown Commercial Mortgage | 11/28/2006 | 377,317 | |||||||||
JPMorgan Chase Commercial Mortgage Securities Corp. | 03/22/2010 | 281,323 | |||||||||
Multi Security Asset Trust | Various | 1,367,330 | |||||||||
$ | 3,082,422 |
(6) Fair Value Measurement
The Trust has established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs. The hierarchy also establishes a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumption that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs include information market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the Trust's estimates about the assumptions market participants would use in valuing the financial asset and liability based on the best information available in the circumstances. Level 1 includes unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, credit risk and prepayment speed). Level 3 includes unobservable inputs, which may include the advisor's own assumptions in determining the fair value of an investment or are based on independent non-binding broker quotes. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swaps, and written options.
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Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
The following is a summary of the levels used for the year ended December 31, 2014 in valuing the Fund's assets and liabilities (please see the Investments in Securities for each Fund for a listing of all securities within each category):
Fair Value Measurement at December 31, 2014 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT Advantus Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | $ | – | $ | 171,836,876 | $ | – | $ | 171,836,876 | |||||||||||
Asset-Backed Securities | – | 19,844,118 | – | 19,844,118 | |||||||||||||||
Other Mortgage-Backed Securities | – | 30,977,852 | – | 30,977,852 | |||||||||||||||
Corporate Obligations | – | 146,202,161 | – | 146,202,161 | |||||||||||||||
Investment Companies | 14,282,369 | – | – | 14,282,369 | |||||||||||||||
Total Investments | 14,282,369 | 368,861,007 | – | 383,143,376 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 7,715 | – | – | 7,715 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Futures Contracts | (170,235 | ) | – | – | (170,235 | ) | |||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 228,257,612 | – | – | 228,257,612 | |||||||||||||||
Investment Companies | 6,002,743 | – | – | 6,002,743 | |||||||||||||||
Total Investments | 234,260,355 | – | – | 234,260,355 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 23,266 | – | – | 23,266 | |||||||||||||||
SFT Advantus Index 500 Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 628,459,378 | – | – | 628,459,378 | |||||||||||||||
Investment Companies | 17,363,344 | – | – | 17,363,344 | |||||||||||||||
Total Investments | 645,822,722 | – | – | 645,822,722 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Futures Contracts | (25,765 | ) | – | – | (25,765 | ) | |||||||||||||
SFT Advantus International Bond Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Long-Term Debt Securities | – | 84,949,636 | – | 84,949,636 | |||||||||||||||
Short-Term Debt Securities | – | 19,374,288 | – | 19,374,288 | |||||||||||||||
Investment Companies | 11,402,425 | – | – | 11,402,425 | |||||||||||||||
Total Investments | 11,402,425 | 104,323,924 | – | 115,726,349 | |||||||||||||||
Other Financial Instruments* Forward Foreign Currency Contracts | – | 9,186,726 | – | 9,186,726 | |||||||||||||||
Interest Rate Swap Contracts | – | 43,742 | – | 43,742 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Forward Foreign Currency Contracts | – | (2,725,127 | ) | – | (2,725,127 | ) | |||||||||||||
Interest Rate Swap Contracts | – | (553,073 | ) | – | (553,073 | ) |
116
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Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Fair Value Measurement at December 31, 2014 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT Advantus Managed Volatility Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | $ | – | $ | 5,227,661 | $ | – | $ | 5,227,661 | |||||||||||
Corporate Obligations | – | 35,484,730 | – | 35,484,730 | |||||||||||||||
Investment Companies | 90,623,684 | – | – | 90,623,684 | |||||||||||||||
Total Investments | 90,623,684 | 40,712,391 | – | 131,336,075 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 303,669 | – | – | 303,669 | |||||||||||||||
Liabilities | |||||||||||||||||||
Other Financial Instruments* Futures Contracts | (7,579 | ) | – | – | (7,579 | ) | |||||||||||||
SFT Advantus Money Market Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Commercial Paper | – | 29,497,066 | – | 29,497,066 | |||||||||||||||
Corporate Bonds & Notes | – | 7,015,095 | – | 7,015,095 | |||||||||||||||
U.S. Government Obligations | – | 23,449,339 | – | 23,449,339 | |||||||||||||||
Other Short-Term Investments | – | 6,611,253 | – | 6,611,253 | |||||||||||||||
Investment Companies | 19,990,303 | – | – | 19,990,303 | |||||||||||||||
Total Investments | 19,990,303 | 66,572,753 | – | 86,563,056 | |||||||||||||||
SFT Advantus Mortgage Securities Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Government Obligations | – | 83,826,805 | – | 83,826,805 | |||||||||||||||
Asset-Backed Securities | – | 4,439,410 | – | 4,439,410 | |||||||||||||||
Other Mortgage-Backed Securities | – | 5,724,522 | – | 5,724,522 | |||||||||||||||
Corporate Obligations | – | 1,080,086 | – | 1,080,086 | |||||||||||||||
Investment Companies | 13,163,134 | – | – | 13,163,134 | |||||||||||||||
Total Investments | 13,163,134 | 95,070,823 | – | 108,233,957 | |||||||||||||||
Other Financial Instruments* Futures Contracts | 22,451 | – | – | 22,451 | |||||||||||||||
SFT Advantus Real Estate Securities Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 145,338,282 | – | – | 145,338,282 | |||||||||||||||
Investment Companies | 798,888 | – | – | 798,888 | |||||||||||||||
Total Investments | 146,137,170 | – | – | 146,137,170 | |||||||||||||||
SFT Ivy® Growth Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 487,791,862 | – | – | 487,791,862 | |||||||||||||||
Investment Companies | 14,520,564 | – | – | 14,520,564 | |||||||||||||||
Total Investments | 502,312,426 | – | – | 502,312,426 | |||||||||||||||
SFT Ivy® Small Cap Growth Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 177,192,249 | – | – | 177,192,249 | |||||||||||||||
Investment Companies | 5,936,232 | – | – | 5,936,232 | |||||||||||||||
Total Investments | 183,128,481 | – | – | 183,128,481 | |||||||||||||||
SFT Pyramis® Core Equity Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | 140,164,946 | – | – | 140,164,946 | |||||||||||||||
Investment Companies | 2,015,430 | – | – | 2,015,430 | |||||||||||||||
Total Investments | 142,180,376 | – | – | 142,180,376 |
117
Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Fair Value Measurement at December 31, 2014 using | |||||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
SFT T. Rowe Price Value Fund | |||||||||||||||||||
Assets | |||||||||||||||||||
Common Stocks | $ | 232,260,117 | $ | – | $ | – | $ | 232,260,117 | |||||||||||
Investment Companies | 1,060,337 | – | – | 1,060,337 | |||||||||||||||
Total Investments | 233,320,454 | – | – | 233,320,454 |
* Investments in Other Financial Instruments are derivative instruments reflected in the Investments in Securities. All derivatives currently held, except written options, are reflected at the gross unrealized appreciation (depreciation) on the instruments.
Level 2 Measurements:
Government obligations comprised of U.S. Treasury, agency and government guaranteed fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on quoted prices in markets that are not active or using matrix pricing or other similar techniques using standard market observable inputs such as the benchmark U.S. Treasury yield curve, the spread of the U.S. Treasury curve for the identical security and comparable securities that are actively traded.
Asset-backed and other mortgage-backed securities comprised of RMBS, CMBS and ABS fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information including: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans, etc.
Corporate obligations comprised of U.S. corporate and foreign corporate fixed maturity securities – These securities are principally valued using the market and income approaches. Valuation is based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques that use standard market observable inputs such as benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Investment grade privately placed securities are valued using discounted cash flow methodologies using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer.
Long-term and short-term debt securities comprised of foreign government and state and political subdivision fixed maturity securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market observable inputs including benchmark U.S. Treasury or other yields, issuer ratings, broker-dealer quotes, issuer spreads and reported trades of similar securities, including those within the same sub-sector or with a similar maturity or credit rating.
Forward Foreign Currency and Interest Rate Swap Contracts – These derivatives are traded in the over-the-counter derivative market and are principally valued using market price quotations or industry recognized modeling techniques. The significant inputs to the models are observable in the market or can be derived from or corroborated by observable market data. These significant inputs may include interest rates, foreign currency exchange rates, interest rate curves, contractual terms, market prices, and measures of volatility.
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Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Level 3 Measurements:
In general, investments classified within Level 3 use many of the same valuation techniques and inputs as described above. However, if key inputs are unobservable, or if the investments are less liquid and there is very limited trading activity, the investments are generally classified as Level 3.
Asset-backed and other mortgage-backed securities comprised of RMBS, CMBS and ABS securities – These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data. Below investment grade securities and ABS supported by sub-prime mortgage loans included in this level are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2.
Corporate obligations comprised of U.S. corporate and foreign corporate securities – These securities, including financial services industry hybrid securities classified within fixed maturity securities, are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing or other similar techniques that utilize unobservable inputs or cannot be derived principally from, or corroborated by, observable market data, including illiquidity premiums and spread adjustments to reflect industry trends or specific credit-related issues. Generally, below investment grade privately placed or distressed securities included in this level are valued using discounted cash flow methodologies which rely upon significant, unobservable inputs and inputs that cannot be derived principally from, or corroborated by, observable market data.
There were no transfers of financial assets between Levels 1 and 2 during the period.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. The Funds' policy is to recognize transfers between the levels as of the end of the year.
The following table presents the fiscal year-to-date activity of Level 3 securities held at the beginning and the end of the period. The Funds did not hold any significant investments with unobservable inputs categorized as Level 3 as of the end of the period.
Fund | Beginning Balance December 31, 2013 | Purchases | Sales | Accrued discounts (premiums) | Total realized and unrealized gains (losses) | Transfers in to Level 3 (1) | Transfers out of Level 3 (1) | Ending Balance December 31, 2014 | Net Change in Unrealized Appreciation (Depreciation) on Investments Held at December 31, 2014 | ||||||||||||||||||||||||||||||
SFT Advantus Bond Fund | |||||||||||||||||||||||||||||||||||||||
Other Mortgage Backed* | $ | 3,091,136 | $ | – | $ | (318,307 | ) | $ | 683 | $ | 214,778 | $ | – | $ | (2,988,290 | ) | $ | – | $ | – | |||||||||||||||||||
Corporate Obligation | 14,929,225 | – | (6,567,005 | ) | (34,394 | ) | 197,660 | – | (8,525,486 | ) | – | – | |||||||||||||||||||||||||||
Total | 18,020,361 | – | (6,885,312 | ) | (33,711 | ) | 412,438 | – | (11,513,776 | ) | – | – | |||||||||||||||||||||||||||
SFT Advantus Managed Volatility Fund | |||||||||||||||||||||||||||||||||||||||
Corporate Obligation | 254,375 | – | – | – | 4,353 | – | (258,728 | ) | – | – | |||||||||||||||||||||||||||||
Total | 254,375 | – | – | – | 4,353 | – | (258,728 | ) | – | – |
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Securian Funds Trust
Notes to Financial Statements – continued
(6) Fair Value Measurement – (continued)
Fund | Beginning Balance December 31, 2013 | Purchases | Sales | Accrued discounts (premiums) | Total realized and unrealized gains (losses) | Transfers in to Level 3 (1) | Transfers out of Level 3 (1) | Ending Balance December 31, 2014 | Net Change in Unrealized Appreciation (Depreciation) on Investments Held at December 31, 2014 | ||||||||||||||||||||||||||||||
SFT Advantus Mortgage Securities Fund | |||||||||||||||||||||||||||||||||||||||
Other Mortgage Backed* | $ | 1,256,032 | $ | – | $ | – | $ | 300 | $ | 8,289 | $ | – | $ | (1,264,621 | ) | $ | – | $ | – | ||||||||||||||||||||
Total | 1,256,032 | – | – | 300 | 8,289 | – | (1,264,621 | ) | – | – |
* Level 3 includes securities with a fair value of $0 as indicated in the Investments in Securities.
(1) Financial assets were transferred from Level 3 to Level 2 as there was sufficient, reliable and observable market data to value these assets as of period end.
(7) Derivative Instruments Reporting
The Trust provides, when applicable, disclosures of the location, by line item, of fair value amounts in the statement of financial position and the location, by line item, of amounts of gains and losses reported in the statement of financial performance. Generally the derivative instruments outstanding as of period end are disclosed in the Investments in Securities. The volume of derivative activity is indicative for all funds with the exception of futures contracts in the SFT Advantus Managed Volatility Fund and interest rate swap contracts in the SFT Advantus International Bond Fund. The volume of futures contracts for the SFT Advantus Managed Volatility Fund ranged from $29,337,000 to $59,667,000 base notional value averaging $42,146,000. The volume of interest rate swap contracts for SFT Advantus International Bond Fund ranged from $0 to $14,078,000 base notional value averaging $5,581,000.
Equity derivatives were purchased or sold to manage the SFT Advantus Index 500, SFT Advantus Index 400 Mid-Cap and SFT Advantus Managed Volatility Funds' shareholder liquidity and to attempt to replicate intended stock investments to maintain fully invested Funds.
The SFT Advantus Real Estate Securities Fund includes as a non-principal investment strategy the writing (selling) of covered call options. Generally, the strategy will write call options near a price target for the stock. The goal of the covered call strategy is to enhance income of the Fund through the receipt of premium income from the sale of the call, and to decrease volatility of the overall Fund.
Interest rate derivatives are used both to manage the average duration of a Fund's fixed income portfolio, as well as to hedge against the effects of interest rate changes on a portfolio's current or intended investments.
Foreign exchange derivatives were used to attempt to hedge against the effects of exchange rate changes within the SFT Advantus International Bond Fund's current or intended investments in foreign securities, as well as, to more efficiently obtain exposure to foreign currencies or to take advantage of cross currency markets in order to benefit from valuation differentials and shifts in pricing within the currency markets.
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Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
The tables below detail the risk exposure of each of the Funds from derivative instruments:
Risk Exposure | |||||||||||||||||||||||||||
Fund | Instrument Type | Total Value at December 31, 2014 | Statement of Assets and Liabilities Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus Bond Fund | Futures | $ | (162,520 | ) | Variation margin receivable/payable* | $ | – | $ | (162,520 | ) | $ | – | |||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | Futures | 23,266 | Variation margin receivable/payable* | 23,266 | – | – | |||||||||||||||||||||
SFT Advantus Index 500 Fund | Futures | (25,765 | ) | Variation margin receivable/payable* | (25,765 | ) | – | – | |||||||||||||||||||
SFT Advantus International Bond Fund | Foreign Currency Forwards | 9,186,726 | �� | Unrealized appreciation on forward foreign currency contracts | – | – | 9,186,726 | ||||||||||||||||||||
| Foreign Currency Forwards | (2,725,127 | ) | Unrealized depreciation on forward foreign currency contracts | – | – | (2,725,127 | ) | |||||||||||||||||||
| Swaps | (509,331 | ) | Variation margin receivable/payable* | – | (509,331 | ) | – | |||||||||||||||||||
SFT Advantus Managed Volatility Fund | Futures | 296,090 | Variation margin receivable/payable* | 303,669 | (7,579 | ) | – | ||||||||||||||||||||
SFT Advantus Mortgage Securities Fund | Futures | 22,451 | Variation margin receivable/payable* | – | 22,451 | – |
* Includes cumulative appreciation/depreciation of futures contracts and swaps as reported in the notes to the Schedules of Investments in Securities. Only current day's variation margin is reported within the Statement of Assets and Liabilities.
Realized Gain (Loss) on Derivatives Recognized in Income | |||||||||||||||||||||||||||
Fund | Instrument Type | Total Value for Period Ended December 31, 2014 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus Bond Fund | Futures | $ | (715,931 | ) | Net realized gains (losses) from futures transactions | $ | – | $ | (715,931 | ) | $ | – | |||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | Futures | 425,838 | Net realized gains (losses) from futures transactions | 425,838 | – | – | |||||||||||||||||||||
SFT Advantus Index 500 Fund | Futures | 1,615,523 | Net realized gains (losses) from futures transactions | 1,615,523 | – | – | |||||||||||||||||||||
SFT Advantus International Bond Fund | Foreign Currency Forwards | 634,107 | Net realized gains (losses) from foreign currency transactions | – | – | 634,107 | |||||||||||||||||||||
| Swaps | (84,127 | ) | Net realized gains (losses) from swaps | – | (84,127 | ) | – | |||||||||||||||||||
SFT Advantus Managed Volatility Fund | Futures | 2,864,128 | Net realized gains (losses) from futures transactions | 2,900,798 | (36,670 | ) | – | ||||||||||||||||||||
SFT Advantus Mortgage Securities Fund | Futures | 109,422 | Net realized gains (losses) from futures transactions | – | 109,422 | – |
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Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
Realized Gain (Loss) on Derivatives Recognized in Income | |||||||||||||||||||||||||||
Fund | Instrument Type | Total Value for Period Ended December 31, 2014 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus Real Estate Securities Fund | Options | $ | 3,681 | Net realized gains (losses) from written options transactions | $ | 3,681 | $ | – | $ | – | |||||||||||||||||
SFT Pyramis® Core Equity Fund | Futures | (622,981 | ) | Net realized gains (losses) from futures transactions | (622,981 | ) | – | – | |||||||||||||||||||
Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |||||||||||||||||||||||||||
Fund | Instrument Type | Total Value for Period Ended December 31, 2014 | Statement of Operations Location | Equity | Interest Rate | Foreign Exchange | |||||||||||||||||||||
SFT Advantus Bond Fund | Futures | $ | (610,954 | ) | Net change in unrealized appreciation or depreciation on futures transactions | $ | – | $ | (610,954 | ) | $ | – | |||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | Futures | (123,345 | ) | Net change in unrealized appreciation or depreciation on futures transactions | (123,345 | ) | – | – | |||||||||||||||||||
SFT Advantus Index 500 Fund | Futures | (451,504 | ) | Net change in unrealized appreciation or depreciation on futures transactions | (451,504 | ) | – | – | |||||||||||||||||||
SFT Advantus International Bond Fund | Foreign Currency Forwards | 6,407,256 | Net change in unrealized appreciation or depreciation on foreign currency transactions | – | – | 6,407,256 | |||||||||||||||||||||
| Swaps | (509,331 | ) | Net change in unrealized appreciation or depreciation on swaps transactions | – | (509,331 | ) | – | |||||||||||||||||||
SFT Advantus Managed Volatility Fund | Futures | (783,744 | ) | Net change in unrealized appreciation or depreciation on futures transactions | (760,845 | ) | (22,899 | ) | – | ||||||||||||||||||
SFT Advantus Mortgage Securities Fund | Futures | 83,255 | Net change in unrealized appreciation or depreciation on futures transactions | – | 83,255 | – | |||||||||||||||||||||
SFT Advantus Real Estate Securities Fund | Options | 2,944 | Net change in unrealized appreciation or depreciation on options written | 2,944 | – | – |
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Securian Funds Trust
Notes to Financial Statements – continued
(7) Derivative Instruments Reporting – (continued)
Option Contracts Written
Contracts and premium amounts associated with options contracts written by the Funds during the year ended December 31, 2014 are as follows:
Options Outstanding at December 31, 2013 | Written | Closed | Exercised | Expired | Options Outstanding at December 31, 2014 | ||||||||||||||||||||||
SFT Advantus Real Estate Securities Fund | |||||||||||||||||||||||||||
Premium Amount | $ | 3,681 | $ | – | $ | – | $ | – | $ | 3,681 | $ | – | |||||||||||||||
Number of Contracts | 53 | – | – | – | 53 | – |
The Funds may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. The Funds manage credit risk related to derivatives by entering into transactions with highly rated counterparties. Generally, the current credit exposure of the derivative contracts is limited to the positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting arrangements and any collateral received pursuant to credit support annexes. Because exchange traded derivatives are purchased through regulated exchanges and positions are settled regularly, the Funds have minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments. For the year or period ended December 31, 2014, none of the Funds derivatives were subject to master netting arrangements.
(8) Affiliated Ownership
The SFT Advantus Managed Volatility Fund invests in underlying securities and other investment companies, of which certain underlying funds (the "affiliated underlying funds") may be deemed to be under common control with the SFT Advantus Managed Volatility Fund because they share the same investment advisor, Advantus Capital, and because they are overseen by the same Board of Trustees. The SFT Advantus Managed Volatility Fund will achieve its equity exposure by investing primarily in Class 1 Shares of the SFT Advantus Index 500 Fund, an affiliated fund in the Trust that seeks investment results that correspond generally to the price and yield performance of the common stocks included in the Standard & Poor's 500 Index. A summary of all transactions with the affiliated SFT Advantus Index 500 Fund for the year ended December 31, 2014 is as follows:
Fund/Underlying Fund | Balance of Shares Held at December 31, 2013 | Gross Additions | Gross Sales | Balance of Shares Held at December 31, 2014 | Value at December 31, 2014 | Realized Gain (Loss) | Distributions Received | ||||||||||||||||||||||||
SFT Advantus Managed Volatility Fund | |||||||||||||||||||||||||||||||
SFT Advantus Index 500 Fund | 2,081,359 | 2,063,973 | – | 4,145,332 | $ | 32,071,660 | �� | $ | – | $ | – |
(9) Subsequent Events
Management has evaluated subsequent events for the Trust through the date the financial statements are issued, and has concluded there are no events that require financial statement disclosure and/or adjustments to the financial statements.
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Other Information
(unaudited)
Fund Expenses Paid by Shareholders
Shareholders of the Trust incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; (the Trust does not impose transaction costs, but you will incur such costs in connection with the variable life insurance policies and variable annuity contracts that invest in the Funds) and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Trust expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 01, 2014 through December 31, 2014. Expenses paid during the period in the tables below are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by number of days in most recent fiscal half-year divided by 365 to reflect the one-half year period.
Actual Expenses
The table below provides information about actual account values and actual expenses for the Funds. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table for the fund you own under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
CLASS 1 | CLASS 2 | ||||||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | |||||||||||||||||||||||||
SFT Advantus Bond Fund | $ | 1,000 | $ | 1,016.70 | 0.49 | % | $ | 2.49 | $ | 1,015.40 | 0.74 | % | $ | 3.76 | |||||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | 1,000 | 1,020.00 | 0.26 | % | 1.32 | 1,018.70 | 0.51 | % | 2.59 | ||||||||||||||||||||||
SFT Advantus Index 500 Fund | 1,000 | 1,059.90 | 0.21 | % | 1.09 | 1,058.50 | 0.46 | % | 2.39 | ||||||||||||||||||||||
SFT Advantus International Bond Fund | 1,000 | 981.30 | 0.88 | % | 4.39 | 980.10 | 1.13 | % | 5.64 | ||||||||||||||||||||||
SFT Advantus Managed Volatility Fund | 1,000 | NA | NA | NA | 1,027.50 | 0.80 | % | 4.09 | |||||||||||||||||||||||
SFT Advantus Money Market Fund | 1,000 | NA | NA | NA | 1,000.00 | 0.10 | % | 0.50 | |||||||||||||||||||||||
SFT Advantus Mortgage Securities Fund | 1,000 | 1,018.80 | 0.62 | % | 3.15 | 1,017.50 | 0.87 | % | 4.42 | ||||||||||||||||||||||
SFT Advantus Real Estate Securities Fund | 1,000 | 1,115.30 | 0.85 | % | 4.53 | 1,113.90 | 1.10 | % | 5.86 | ||||||||||||||||||||||
SFT Ivy® Growth Fund | 1,000 | NA | NA | NA | 1,065.50 | 0.97 | % | 5.05 | |||||||||||||||||||||||
SFT Ivy® Small Cap Growth Fund | 1,000 | NA | NA | NA | 1,028.30 | 1.23 | % | 6.29 | |||||||||||||||||||||||
SFT Pyramis® Core Equity Fund | 1,000 | 1,069.70 | 0.86 | % | 4.49 | 1,068.40 | 1.11 | % | 5.79 | ||||||||||||||||||||||
SFT T. Rowe Price Value Fund | 1,000 | NA | NA | NA | 1,036.20 | 1.03 | % | 5.29 |
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Securian Funds Trust
Other Information – continued
(unaudited)
Hypothetical Example for Comparison Purposes
The table below also provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds' actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds' and other funds. To do so, compare the 5% hypothetical example of the funds you own with the 5% hypothetical examples that appear in the shareholder reports of other similar funds.
CLASS 1 | CLASS 2 | ||||||||||||||||||||||||||||||
Beginning Account Value | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | Ending Account Value | Annual Expense Ratio | Expenses Paid During Period | |||||||||||||||||||||||||
SFT Advantus Bond Fund | $ | 1,000 | $ | 1,022.74 | 0.49 | % | $ | 2.50 | $ | 1,021.48 | 0.74 | % | $ | 3.77 | |||||||||||||||||
SFT Advantus Index 400 Mid-Cap Fund | 1,000 | 1,023.89 | 0.26 | % | 1.33 | 1,022.63 | 0.51 | % | 2.60 | ||||||||||||||||||||||
SFT Advantus Index 500 Fund | 1,000 | 1,024.15 | 0.21 | % | 1.07 | 1,022.89 | 0.46 | % | 2.35 | ||||||||||||||||||||||
SFT Advantus International Bond Fund | 1,000 | 1,020.77 | 0.88 | % | 4.48 | 1,019.51 | 1.13 | % | 5.75 | ||||||||||||||||||||||
SFT Advantus Managed Volatility Fund | 1,000 | NA | NA | NA | 1,021.17 | 0.80 | % | 4.08 | |||||||||||||||||||||||
SFT Advantus Money Market Fund | 1,000 | NA | NA | NA | 1,024.70 | 0.10 | % | 0.51 | |||||||||||||||||||||||
SFT Advantus Mortgage Securities Fund | 1,000 | 1,022.08 | 0.62 | % | 3.16 | 1,020.82 | 0.87 | % | 4.43 | ||||||||||||||||||||||
SFT Advantus Real Estate Securities Fund | 1,000 | 1,020.92 | 0.85 | % | 4.33 | 1,019.66 | 1.10 | % | 5.60 | ||||||||||||||||||||||
SFT Ivy® Growth Fund | 1,000 | NA | NA | NA | 1,020.32 | 0.97 | % | 4.94 | |||||||||||||||||||||||
SFT Ivy® Small Cap Growth Fund | 1,000 | NA | NA | NA | 1,019.00 | 1.23 | % | 6.26 | |||||||||||||||||||||||
SFT Pyramis® Core Equity Fund | 1,000 | 1,020.87 | 0.86 | % | 4.38 | 1,019.61 | 1.11 | % | 5.65 | ||||||||||||||||||||||
SFT T. Rowe Price Value Fund | 1,000 | NA | NA | NA | 1,020.01 | 1.03 | % | 5.24 |
Please note that the expenses shown in both tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the information provided in the hypothetical example table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Proxy Voting Policies and Procedures
A description of the policies and procedures that Advantus Capital uses to vote proxies related to each Fund's portfolio securities is set forth in the Trust's Statement of Additional Information which is available without charge, upon request, by calling, toll-free, 800-995-3850 or on the Securities and Exchange Commission's website at www.sec.gov. The Trust will provide this document within three business days of receipt of a request, by first-class mail or other means designed to ensure equally prompt delivery.
Proxy Voting Record
The Trust's proxy voting record for the 12 month period ended December 31 is available by calling, toll-free, 866-330-7355 or on the Securities and Exchange Commission's website at www.sec.gov no later than August 31
125
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Other Information – continued
(unaudited)
each year. The Trust will also provide this information, within three business days of receipt of a request, by first-class mail or other means designed to ensure equally prompt delivery.
Availability of Quarterly Schedule of Investments
The Trust files its complete schedule of investment holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available to shareholders without charge on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, DC. More information of the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
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Securian Funds Trust
Trustees and Executive Officers
(unaudited)
Under Delaware law, the Board of Trustees of the Trust has overall responsibility for managing the Trust in good faith and in a manner reasonably believed to be in the best interests of the Trust. The Trustees meet periodically throughout the year to oversee the Trust's activities, review contractual arrangements with companies that provide services to the Trust, and review the performance of the Trust and its Funds. One of the four current Trustees is considered an "interested person" (as defined in the Investment Company Act of 1940) of the Trust. The other three Trustees, because they are not interested persons of the Trust, are considered independent ("Independent Trustees") and are not employees or officers of, and have no financial interest in, the Trust's investment adviser, Advantus Capital Management, Inc. or its affiliated companies, including Minnesota Life Insurance Company. 75% of the Board of Trustees is required to be comprised of Independent Trustees.
Only executive officers and other officers who perform policy-making functions with the Trust are listed. None of the Trustees is a director of any public company (a company required to file reports under the Securities Exchange Act of 1934) or of any registered investment companies other than the Trust. Each Trustee serves for an indefinite term, until his or her resignation, death or removal.
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Independent Trustees | |||||||||||
Julie K. Getchell 1954 | Trustee since October 21, 2011 | Retired; Senior Financial Consultant to Cargill's Controller's Group, Animal Nutrition Business and Tartan Program from April 2009 to July 2012; Chief Financial Officer/Senior Managing Director, La Crosse Global Fund Services from May 2005 to April 2009; Consultant, Black River Asset Management from October 2004 to May 2005; Chief Financial Officer, Prestige Resorts & Destinations LTD. from 2001 to 2003; Chief Operating Officer, Insight Investment Management, Inc. from 1996 to 2000; Chief Financial Officer, Insight Investment Management, Inc. from 1991 to 1996; Chartered Financial Analyst; CPA - inactive | |||||||||
Linda L. Henderson 1949 | Trustee since January 25, 2007 | Retired; Professional Advisor, Carlson School of Management, University of Minnesota, 2004 to May 2007; Senior Vice President, Director of Fixed Income Research and Strategies, RBC Dain Rauscher Investments, 1985 to 2004; Chartered Financial Analyst |
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Trustees and Executive Officers – continued
(unaudited)
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Independent Trustees — continued | |||||||||||
William C. Melton 1947 | Trustee since April 25, 2002 | Retired; member, State of Minnesota Council of Economic Advisors from 1988 to 1994, and again from 2010 to the present; various senior positions at American Express Financial Advisors (formerly Investors Diversified Services and, thereafter, IDS/American Express) from 1982 through 1997, including Chief Economist and, thereafter, Chief International Economist | |||||||||
Interested Trustee | |||||||||||
Gregory S. Strong 1944 | Trustee since October 21, 2011 | Retired; President, Advantus Series Fund, Inc. from April 2007 to July 2011; retired since December 2008, previously Senior Vice President, Chief Actuary and Treasurer, Minnesota Life Insurance Company; Treasurer, Minnesota Mutual Companies, Inc., Senior Vice President and Treasurer, Securian Financial Group, Inc.; Treasurer, Securian Holding Company |
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Trustees and Executive Officers – continued
(unaudited)
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Other Executive Officers(2) | |||||||||||
David M. Kuplic 1957 | President since July 28, 2011 | Senior Vice President, Minnesota Life Insurance Company since June 2007; Executive Vice President and Director, Advantus Capital Management, Inc. since July 2007; Senior Vice President and Director, Advantus Capital Management, Inc., February 2006 to July 2007; President and Director, MCM Funding 1997-1, Inc. (entity holding legal title to mortgages beneficially owned by certain clients of Advantus Capital) since July 2007; Vice President, MCM Funding 1997-1, Inc., June 2004 to July 2007; President and Director, MCM Funding 1998-1, Inc. (entity holding legal title to mortgages beneficially owned by certain clients of Advantus Capital) since July 2007; Vice President, MCM Funding 1998-1, Inc., June 2004 to July 2007; Senior Vice President, Securian Financial Group, Inc. since June 2007; President and Director, MIMLIC Funding, Inc. (entity holding legal title to bonds beneficially owned by certain clients of Advantus Capital) since July 2007; Senior Vice President, Securian Life Insurance Company since June 2007; President and Director, Marketview Properties, LLC (entity holding real estate assets) since January 2010; President and Director, Marketview Properties II, LLC (entity holding real estate assets) since March 2010; President, Marketview Properties IV, LLC |
129
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
Name, Address(1) and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||||||||
Other Executive Officers(2) — continued | |||||||||||
Gary M. Kleist 1959 | Vice President and Treasurer since July 24, 2003 | Financial Vice President, Chief of Operations and Director, Advantus Capital Management, Inc. since December 1997; Second Vice President, Minnesota Life Insurance Company since February 2000; Vice President and Secretary/Treasurer, MIMLIC Funding, Inc. (entity holding legal title to bonds beneficially owned by certain clients of Advantus Capital) since July 2003; Financial Vice President, MCM Funding 1997-1, Inc. since October 1998 and MCM Funding 1998-1, Inc. (entities holding legal title to mortgages beneficially owned by certain clients of Advantus Capital) since August 1998; Second Vice President, Securian Financial Group, Inc. since February 2000; Second Vice President, Securian Life Insurance Company since June 2007; Financial Vice President, Marketview Properties, LLC since January 2010 and Marketview Properties II, LLC (entities holding certain real estate assets) since March 2010; Financial Vice President, Marketview Properties IV, LLC | |||||||||
Bruce P. Shay 1961 | Vice President since July 28, 2011 | Executive Vice President, Minnesota Life Insurance Company since March 2010; Executive Vice President, Securian Financial Group, Inc. since March 2010; Executive Vice President and Director, Securian Life Insurance Company since June 2010; Senior Vice President, Minnesota Life Insurance Company, February 2004 to February 2010; Senior Vice President, Securian Life Insurance Company, February 2007 to June 2010 | |||||||||
Michael J. Radmer Dorsey & Whitney LLP 50 South Sixth Street Minneapolis, Minnesota 55402 1945 | Secretary since April 16, 1998 | Partner with the law firm of Dorsey & Whitney LLP |
130
Securian Funds Trust
Trustees and Executive Officers – continued
(unaudited)
(1) Unless otherwise noted, the address of each Trustee and officer is the address of the Trust: 400 Robert Street North, St. Paul, Minnesota 55101.
(2) Although not a 'corporate' officer of the Trust, Vicki L. Bailey, born in 1955, has served as the Trust's Chief Compliance Officer since July 2004. Ms. Bailey is also Vice President, Investment Law, Chief Compliance Officer and Secretary, Advantus Capital Management, Inc.; Vice President, Minnesota Life Insurance Company; Vice President and Secretary, MCM Funding 1997-1, Inc. and MCM Funding 1998-1, Inc. (entities holding legal title to mortgages beneficially owned by certain clients of Advantus Capital); Vice President, Securian Financial Group, Inc.; Vice President, Securian Life Insurance Company; Director, Personal Finance Company LLC; Vice President and Secretary, Marketview Properties, LLC and Marketview Properties II, LLC (entities holding certain real estate assets); Vice President and Secretary, Marketview Properties IV, LLC.
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This offering is available through Securian Financial Services, Inc., a registered broker/dealer. Securian Financial Services, Inc. is the distributor of Minnesota Life and Securian Life variable insurance products.
This report may be used as sales literature in connection with the offer or sale of variable annuity or variable life insurance contracts funded by Securian Funds Trust ("Trust") if preceded or accompanied by (a) the current prospectus for the Trust and such contracts and (b) the current applicable variable annuity or variable life performance report.
Securian Financial Services, Inc.
www.securian.com
Securities Dealer, Member FINRA/SIPC.
Registered Investment Advisor
400 Robert Street North, St. Paul, MN 55101-2098
1.888.237.1838
F38897 Rev 2-2015
Minnesota Life Insurance Company
A Securian Company
Securian Life Insurance Company
A New York admitted insurer
400 Robert Street North
St. Paul, MN 55101-2098
PRESORTED STANDARD
U.S. POSTAGE PAID
CAROL STREAM, IL
PERMIT NO. 1480
©2015 Securian Funds Trust All rights reserved.
F38897 Rev 2-2015
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ITEM 1. REPORT TO STOCKHOLDERS.
Filed herewith.
ITEM 2. CODE OF ETHICS.
Filed herewith as Exhibit 12(a)(1). During the period covered by this report, there has been no amendment to the code of ethics that relates to any element of the code of ethics definition set forth in paragraph (b) of Item 2 of Form N-CSR, nor has the registrant granted a waiver, including an implicit waiver, from a provision of the code of ethics to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions that relates to one or more of the items set forth in paragraph (b) of Item 2 of form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the Trust has determined that Julie K. Getchell, a member of the Board’s Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Ms.
Getchell as the Audit Committee’s financial expert. Ms. Getchell is an “independent” Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant to the registrant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
2014 |
| 2013 |
| ||
$ | 296,240 |
| $ | 213,343 |
|
(b) Audit-Related Fees
The aggregate fees billed in each of the last two fiscal years for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item 4 were as follows:
2014 |
| 2013 |
|
-0- |
| -0- |
|
There were no fees billed in each of the last two fiscal years for assurance and related services rendered by the principal accountant to the registrant’s investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(c) Tax Fees
The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice, tax planning and tax return preparation were as follows:
2014 |
| 2013 |
| ||
$ | 4,000 |
| $ | 8,376 |
|
There were no fees billed in each of the last two fiscal years for professional services rendered by the principal accountant to the investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) All Other Fees
The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registrant, other than the services reported in paragraphs (a) — (c) of this Item 4 were as follows:
2014 |
| 2013 |
|
-0- |
| -0- |
|
There were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the investment adviser or to any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant, other than the services reported in paragraphs (a) — (c) of this Item 4, that were required to be pre-approved by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e)(1) Registrant’s audit committee has adopted the following pre-approval policies and procedures in accordance with paragraph (c)(7) of Rule 2-01 of Regulation S-X:
SECURIAN FUNDS TRUST
AUDIT COMMITTEE POLICY regarding pre-approval of services provided by the Independent Auditor
The Audit Committee (the “Committee”) of the Securian Funds Trust (the “Trust”) has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence. This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations. In this regard, the Committee should:
· Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality
· Examine and evaluate the safeguards put into place by the Trust and the auditor to safeguard independence
· Meet quarterly with the partner of the independent audit firm
· Consider approving categories of service that are not deemed to impair independence for a one-year period
It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the Trust’s independent audit firm directly for the Trust. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year.
The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Trust’s Treasurer and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.
In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:
Audit Services
The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:
· Annual Fund financial statement audits
· SEC and regulatory filings and consents
Audit-related Services
In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
· Accounting consultations
· Trust merger support services
· Other accounting related matters
· Agreed Upon Procedure Reports
· Attestation Reports
· Other Internal Control Reports
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $20,000 are subject to pre-approval by the Committee on a case-by-case basis. Individual projects with an estimated fee of less than $20,000 are subject to pre-approval by the then-serving Chair of the Committee on a case-by-case basis. The Chair shall thereafter report to the Full Committee on any such matters at the Committee’s next regularly scheduled meeting.
Tax Services
The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
· Tax compliance services related to the filing or amendment of the following:
· Federal, state and local income tax compliance; and,
· Sales and use tax compliance
· Timely RIC qualification reviews, if applicable
· Tax distribution analysis and planning
· Tax authority examination services
· Tax appeals support services
· Accounting methods studies
· Trust merger support services
· Tax consulting services and related projects
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $20,000 are subject to pre-approval by the Committee on a case-by-case basis. Individual projects with an estimated fee of less than $20,000 are subject to pre-approval by the then-serving Chair of the Committee on a case-by-case basis. The Chair shall thereafter report to the Full Committee on any such matters at the Committee’s next regularly scheduled meeting.
Other Non-audit Services
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent firm without the prior approval of the Audit Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.
Proscribed Services
In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:
· Management functions
· Accounting and bookkeeping services
· Internal audit services
· Financial information systems design and implementation
· Valuation services supporting the financial statements
· Actuarial services supporting the financial statements
· Executive recruitment
· Expert services (e.g., litigation support)
· Investment banking
Policy for Pre approval of Non-Audit Services Provided to Other Affiliated Entities
The Committee is also responsible for pre-approving certain non-audit services provided to Advantus Capital Management Inc. (“Advantus”) and any other entity under common control with Advantus that provides ongoing services to the Trust. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the Trust.
Although the Committee is not required to pre-approve all services provided to Advantus and affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to Advantus and its affiliates.
(e)(2) None of the services provided to the registrant described in paragraphs (b) — (d) of this Item 4 were pre-approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees billed for each of the last two fiscal years by the registrant’s accountant for services rendered to the registrant and to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant were as follows:
2014 |
| 2013 |
| ||
$ | -0- |
| $ | 11,940 |
|
(h) The registrant’s audit committee has considered that the provision of the non-audit services rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable. Schedule I — Investments in Securities of Unaffiliated Issuers is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The registrant has a governance committee of its board of trustees, the members of which are all trustees who are not “interested persons” of the registrant, as defined in Section 2(a)(19) of the Investment Company Act of 1940 (“independent trustees”). The governance committee, which operates in accordance with a separate governance committee charter approved by the board of trustees, selects and recommends to the board of trustees individuals for nomination as independent trustees. The names of potential independent trustee candidates are drawn from a number of sources, including recommendations from management of Advantus Capital Management, Inc., the registrant’s investment adviser. Each candidate is evaluated by the governance committee with respect to the relevant business and industry experience that would enable the candidate to serve effectively as an independent trustee, as well as his or her compatibility with respect to business philosophy and style. The members of the governance committee may conduct an in-person interview of each viable candidate using a standardized questionnaire. When all of the viable candidates have been evaluated and interviewed, the governance committee determines which of the viable candidates should be presented to the board of trustees for selection to become a member of the board of trustees.
Inasmuch as the registrant does not hold annual meetings of shareholders and meetings of shareholders occur only intermittently, the governance committee does not at present consider nominees recommended by shareholders.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit:
Exhibit 99.CODE ETH attached hereto.
(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Investment Company Act of 1940 (17 CFR 270.30a-2):
Exhibit 99.CERT attached hereto.
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by this report by or on behalf of the registrant to 10 or more persons:
Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Securities Exchange Act of 1934, provide the certifications required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14 under the Securities Exchange Act of 1934 (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the registrant specifically incorporates it by reference:
Exhibit 99.906 CERT attached hereto
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Securian Funds Trust
By (Signature and Title) | /s/ David M. Kuplic |
|
| David M. Kuplic, President |
|
Date: February 23, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ David M. Kuplic |
|
| David M. Kuplic, President (Principal Executive Officer) |
|
|
|
|
By (Signature and Title) | /s/ Gary M. Kleist |
|
| Gary M. Kleist, Treasurer (Principal Financial Officer) |
|
Date: February 23, 2015