N-CSR 1 d877763dncsr.htm GREAT-WEST MULTI-SECTOR BOND FUND Great-West Multi-Sector Bond Fund
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: 811-03364
GREAT-WEST FUNDS, INC.
(Exact name of registrant as specified in charter)
8515 E. Orchard Road, Greenwood Village, Colorado 80111
(Address of principal executive offices)
Jonathan D. Kreider
President and Chief Executive Officer
Great-West Funds, Inc.
8515 E. Orchard Road
Greenwood Village, Colorado 80111
(Name and address of agent for service)
Registrant's telephone number, including area code: (866) 831-7129
Date of fiscal year end: December 31
Date of reporting period: December 31, 2019

 

Item 1. REPORTS TO STOCKHOLDERS
GREAT-WEST FUNDS, INC.
Great-West Multi-Sector Bond Fund
(Institutional Class, Investor Class and Class L)
Annual Report
December 31, 2019
On June 5, 2018 the Securities and Exchange Commission (“SEC”) adopted new rule 30e-3 under the Investment Company Act of 1940. Subject to conditions, new rule 30e-3 will provide certain registered investment companies with an optional method to satisfy their obligations to transmit shareholder reports by making such reports and other materials accessible at a website address specified in a notice to investors.
Beginning on January 1, 2021, as permitted by regulations adopted by the SEC, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.greatwestfunds.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from your financial intermediary electronically by contacting your financial intermediary.
You may elect to receive all future reports in paper free of charge. You can contact (866) 345-5954 or make elections online at www.fundreports.com to let your financial intermediary know you wish to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account.
This report and the financial statements attached are submitted for general information and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein is to be considered an offer of the sale of shares of the Fund. Such offering is made only by the prospectus of the Fund, which includes details as to offering price and other information.

 

Management Discussion
Effective August 24, 2018, Newfleet Asset Management, LLC (“Newfleet”) joined Loomis, Sayles & Company, L.P. (“Loomis Sayles”) as a sub-adviser to the Fund.
For the twelve-month period ended December 31, 2019, the Fund (Institutional Class shares) returned 12.16%, relative to a 7.13% return for the Bloomberg Barclays Multiverse Index, the Fund’s benchmark index.
Loomis Sayles Commentary
Security selection among investment grade, converts and non-U.S. dollar issues were the primary drivers of outperformance. The Loomis Sayles sub-advised portion of the Fund has the flexibility to opportunistically invest in various fixed income sectors, including U.S. government obligations, foreign bonds, and high yield domestic debt securities. An allocation to cash reserves was the largest detractor for the year.
After a tumultuous fourth quarter of 2018, market conditions calmed in the first three months of the year. The end of the government shutdown and hopes for a resolution to the U.S.-China trade dispute helped restore stability to the markets, as did a series of economic reports showing that growth – while slowing – appeared likely to stay in positive territory. The U.S. Federal Reserve (“Fed”) also contributed to the favorable tone through its statements that it was unlikely to raise interest rates again in 2019. These developments bolstered investor sentiment, leading to lower volatility and a recovery in the various higher-risk asset categories that had underperformed in late 2018.
Longer-duration U.S. Treasury performance was strong on the back of declining yields (duration refers to a security’s price sensitivity to interest rate changes). The 10-year yield plunged 20 basis points in late March, supported by better inflation data and a stronger U.S. housing market. Investment grade corporate bonds outperformed Treasurys during the quarter. The asset class benefitted from a combination of declining U.S. Treasury yields and the renewed demand for yield that accompanied the revival in investors’ appetite for risk. High yield bonds delivered strong returns and outpaced the investment grade market. The category had lagged considerably in late 2018, creating latitude for a strong rebound once investors grew more comfortable with the outlook for economic growth and Fed policy. Securitized assets posted weak excess returns over U.S. Treasurys. Within the sector, credit-sensitive asset-backed securities (“ABS”) led the underperformance.
On an absolute and excess basis, non-U.S. dollar denominated issues positively contributed to performance. Our holdings denominated in the Mexican peso, Canadian dollar, and New Zealand dollar were the best performers within the allocation. Our overweight allocation to high yield credit positively impacted performance during the quarter. Select exposure to energy and communications names moderately helped excess return for the period. On an absolute and excess return basis, this sector generated the greatest returns for the period. Security selection in investment grade credit generated positive return during the quarter. Throughout the period, consumer cyclical, technology, and banking names modestly increased excess return. Our underweight exposure to U.S. Treasury was additive for the period. Cash reserves limited performance for the quarter. On an absolute basis, the cash drag was the largest detractor to performance for the period as risk assets outperformed.
Global fixed-income markets delivered healthy gains in the second quarter, reflecting a combination of slowing economic growth, persistently low inflation and the Fed’s shift toward increasingly accommodative monetary policy. As late as the fourth quarter of last year, the markets generally

 

anticipated that the Fed would continue to raise interest rates for at least another 12 months. As growth slowed both in the U.S. and overseas in late 2018 and into the first quarter, the Fed indicated that it would move to a neutral policy. More recently, the continued weakness in the global economy gave rise to expectations that the Fed would in fact cut rates at least once before the end of 2019. The change in the outlook for Fed policy fueled a strong, broad-based rally in bonds, the bulk of which occurred from mid-May onward. U.S. Treasurys performed particularly well in this environment, with positive total returns across the maturity spectrum. The two-year yield, which tends to be more sensitive to shifts in Fed policy than longer-term issues, slid over fifty basis points. Longer duration segments of the curve produced the strongest price performance. The yield curve steepened as a result, with the gap between the two- and ten-year notes rising compared with its level at the end of the first quarter.
Investment grade bond spreads (the difference in yield between non-Treasury and Treasury securities of similar maturity) continued to tighten from their wide levels at the start of the year, supported by strong earnings growth and rising risk appetites. High yield bonds posted positive absolute returns but finished somewhat behind investment grade debt. The category’s relative performance was affected by the sharp decline in oil prices, which dampened the earnings prospects for the many energy-related high yield issuers. Securitized assets (which include mortgage-backed securities (“MBS”), ABS and commercial mortgage-backed securities (“CMBS”)) produced solid total returns but trailed other segments of the fixed-income market. The category is supported by strong yield demand, offsetting headwinds from Fed balance sheet runoff, supply hit and other technical aspects.
Investment grade credit positively contributed to performance as the sector generated the greatest returns within the portion of the Fund sub-advised by Loomis Sayles. Security selection was the major driver in this sector. Exposure across the communications, consumer cyclical, and technology boosted excess return. The exposure to convertibles generated positive return during the quarter. Our underweight exposure within U.S. Treasury was additive for the quarter as risk assets outperformed government securities. Our underweight exposure within U.S. Treasury reduced excess return in the sector. Exposure in high yield credit detracted from relative returns, with security selection weighing the most on the sector. Cash reserves continued to be a drag on returns for the quarter.
The global bond markets delivered positive returns in the third quarter, building on their gains in the first half of the year. Bonds were well supported by the combination of slowing economic growth, low inflation worldwide, and the accommodative policies of the Fed and other major central banks. The Fed cut interest rates by a quarter point on both August 1 and September 19, bringing its benchmark fed funds target rate to a range of 1.75% to 2.00%. In addition, the markets appeared to be pricing in the likelihood of further reductions by mid-2020. These circumstances provided a boost to U.S. Treasurys, fueling a rally across the maturity spectrum. Longer-term bonds (those with maturities of ten years and above) generated the best performance and outpaced the two- to five-year segment. The gap between the two- and ten-year yields narrowed as a result, leading to a flattening of the yield curve. The curve in fact inverted for a brief stretch in late August, with the ten-year yield trading below that of the two-year note. Since inversions have often been a leading indicator of recessions, this development contributed to the mounting concerns about the economic outlook.
Investment grade corporate bonds posted positive returns and exceeded the gains for U.S. Treasurys, continuing a trend that was in place during the first half of the year. At a time of generally uneven market sentiment, investors gravitated to the combination of corporates’ above-average quality and yield advantage over government issues. High yield bonds, while generating a gain in absolute terms, finished slightly behind investment grade issues. Returns were dampened by the combined effect of slowing economic growth and shaky performance for both crude oil and global equities. In addition, yield

 

spreads (i.e., the yield advantage over U.S. Treasurys) remained on the low end of the historical range. Securitized assets (such as MBS, ABS and CMBS) also gained ground, but returns were only modestly positive when compared to like-duration Treasurys.
On an absolute and excess basis, investment grade credit positively contributed to performance as the sector generated the greatest returns within the portion of the Fund sub-advised by Loomis Sayles. Security selection was the major driver in this sector. Exposure across consumer non-cyclical aided excess returns. Our underweight allocation to U.S. Treasury positively impacted performance during the quarter. On an absolute and relative basis, security selection within high yield credit was the largest detractor to returns for the quarter. Our holdings within the energy weighed heavily on the sector. Our underweight exposure to emerging market credit detracted from overall performance for the period. Security selection also weighed on returns. Our exposure to convertibles and non-U.S. dollar detracted from relative returns for the quarter.
After generating strong returns through the first nine months of the year, the world bond markets delivered mixed results in the fourth quarter. The Fed, which cut interest rates three times in the middle part of the year, made it clear that it was likely to keep rates on hold until there was evidence of either rising inflation or a pronounced slowdown in growth. With the Fed’s “mid-cycle adjustment” seemingly complete, bond-market returns cooled in comparison to the year’s first three quarters. Nevertheless, the credit-sensitive areas of the market continued to gain ground amid signs of a stronger economic outlook, positive news on the trade front and investors’ robust appetite for risk. The Treasury market, after staging an impressive rally in the first nine months of the year, softened amid expectations for improving economic conditions and no further help from the Fed. Longer-term bonds, which had outperformed in the rally, declined in price (as yields rose). Conversely, bonds with maturities of three years and less continued to exhibit strength. As a result, the Treasury yield curve steepened versus its levels of September 30, 2019. Despite their recent weakness, longer-term U.S. Treasurys were one of the best performing areas of the market for the full year thanks to their earlier rally. Mirroring a trend that was in place throughout the year, investment grade corporate issues posted gains and outpaced U.S. Treasurys. The category’s relative performance benefited from the positive trajectory of corporate earnings and investors’ ongoing preference for higher-yielding fixed-income assets. High yield bonds also registered a positive return for the quarter. In addition to gaining support from the broader strength in risk assets, high yield was boosted by hopes that the recent improvement in economic growth indicated that the credit cycle could last longer than investors had been expecting at mid-year. Further, the category tends to be less dependent on rate movements than investment grade issues – a favorable attribute at a time of rising yields on longer-term government debt. Securitized assets (such as MBS, ABS and CMBS) closed the quarter with modest gains as a group, but they lagged the higher-risk, higher-yielding segments of the market.
The allocation to investment grade credit aided performance for the quarter. On an absolute basis, performance in the sector had the greatest impact in the portion of the Fund sub-advised by Loomis Sayles, with strong security selection in consumer non-cyclical, communications, and banking. Our exposure to high yield credit was additive to returns. An underweight to U.S. Treasury boosted excess returns as risk markets outperformed for the quarter. Our exposure to non-U.S. dollar denominated issues aided overall performance for the period. Our holdings denominated in the Norwegian krone and Canadian dollar were the best performers within the allocation. Emerging market credit positively contributed to performance. A small cash position weighed on returns for the quarter. On an absolute basis, the sector was the largest detractor to relative returns.
Newfleet Commentary

 

2019 began in stark contrast to how 2018 ended. While many of the same concerns loomed, major global central banks, including the Fed and European Central Bank, reacted to a deceleration in economic activity and tame inflation by pivoting in both tone and policy in a more dovish direction. This significant development in the markets when combined with improved valuations led to a return to favor of risk assets. Fixed income markets have responded favorably during the year to the dovish pivot by global central banks, the positive developments on the trade front, as well as signs of stability in economic data. Geopolitical developments (e.g., trade, Mideast tensions, and European politics) and central bank headlines all continue to be significant market movers. Recession fears have eased but are likely to remain topical given the age of the business cycle.
Most spread sectors outperformed during the 12-month period, led by investment grade corporates, corporate high yield, emerging markets and yankee high quality. Generally, lower quality within investment grade spread sectors and higher quality within below investment grade sectors outperformed in 2019. Given the change in U.S. interest rates, longer duration within most asset classes outperformed on a total return basis. Securitized sectors (ABS and residential mortgage-backed securities (“RMBS”)) while still positive, lagged other sectors.
The Fed, indicating a dovish pivot early in 2019, signaled that rates were likely on hold for the balance of 2019 and also announced changes to the management of its balance sheet. However, in early June the Chairman of the Federal Open Market Committee (“FOMC”) indicated they are monitoring the impact of the tariff issues on the U.S. economic outlook, which was interpreted by the market that the FOMC has opened the door to the rate cut discussion. The FOMC subsequently lowered its target rate at the July, September, and October meetings to a range of 1.50-1.75%. At the December FOMC meeting the Committee left rates unchanged, reinforcing its view that current policy is appropriate to support a continued economic expansion and rates are on hold unless there is a significant change to their outlook. The prospect for fiscal accommodation will feature prominently in 2020.
Over the last 12 months the treasury curve steepened, shifting broadly lower, more so on the front end.
Positive Contributors
• Underweight U.S. Treasurys as most spread sectors outperformed.
• Allocation to, and issue selection within, the corporate high yield sector was a positive contributor to performance. The global backdrop remains supportive of U.S. high yield as global rates remain low and as U.S./China trade talks improve. Despite the increase in supply, the high yield market remains in a substantial supply deficit, leaving a strong technical in the market. Fundamentals in the sector remain stable to marginally softer.
• Allocation to and issue selection within the yankee high quality and emerging markets high yield sectors were positive contributors to performance. The sectors outperformed as some key macro risks appeared to be dissipating around U.S./China trade, U.S. economic growth, and some geopolitical hot spots.
Detractors
• Allocation to the non-agency RMBS sector was the primary detractor from performance for 2019. The sector underperformed on a total return basis relative to similar duration corporate counterparts and

 

agency MBS. We continue to see value in RMBS due to attractive valuations compared to other short duration, high quality assets and versus agency mortgages on the basis of incremental yield, shorter duration, and high levels of credit support within the deal structures.
• The Newfleet sub-advised portion of the Fund’s underweight and overall shorter duration of its holdings in the investment grade corporate sector relative to the benchmark detracted from performance for the year despite strong issue selection. Valuations continue to grind tighter as recent earnings for a majority of investment grade issuers have materialized within a range of expectations. Technicals were supportive as demand has outstripped supply, and mutual fund flows continue to be very strong.
• Allocation to the ABS sector detracted from performance for the year. The sector underperformed on a total return basis due to the shorter duration nature of the asset class. Performance in 2019 has been muted for the sector as it has underperformed other asset classes that had experienced greater losses at the end of 2018.
Sector Changes: Over the year, we primarily reduced our exposure to bank loans, corporate high quality securities and non-U.S. dollar securities. We redeployed the sale proceeds primarily into non-agency RMBS, corporate high yield, yankee high quality securities, and emerging market high yield securities.
Non-U.S. Exposure: Over the year, we increased the overall non-U.S. and emerging markets debt exposure within the portion of the Fund sub-advised by Newfleet. We continue to have some concerns of macro headwinds for the sector, slowing global growth, and idiosyncratic risks; however, valuations in specific countries are attractive. The Newfleet sub-advised portion of the Fund’s non-U.S. exposure could receive uplift from positive global growth, a weaker U.S. dollar, supportive commodity prices, and accommodative monetary policy from major global central banks. In this space, we favor sovereigns in larger capital structures. We continue to modestly emphasize high grade over high yield and hard currency over local market exposure though we have recently increased exposure to some high yield countries.
Corporate High Quality: There continues to be value in corporate high quality; however, given the spread tightening in 2019 and current valuations, we expect that minimizing fallen angel risk will be key to outperformance in the upcoming year. We continue to favor the BBB segment of the sector, opting for focus on credits with either adequate compensation for a potential downgrade or large control over their ratings trajectory. We also prefer idiosyncratic situations (mergers & acquisitions) and are shying away from larger capital structures in cyclical industries. From an industry perspective, we favor banks, real estate investment trusts, and basic materials. We are opportunistically repositioning our portfolios into a strong market ensuring our positioning continues to reflect our view on the best relative value within the sector.
Corporate High Yield: The corporate high yield market had an excellent year in 2019 with double-digit total returns that were driven by spread tightening and declining risk-free rates. Higher-rated issues within the sector outperformed lower quality during the period, contrary to the norm during risk-on environments where overall spreads tighten. After the strength throughout 2019, we have been reducing names where valuations have run ahead of fundamentals, and redeploying into names that have either not participated in the rally or have seen an improvement operationally. With idiosyncratic risk so high, correct industry and/or credit calls are imperative to outperforming in the space. Currently, we like the

 

industries that both rely on the health of the U.S. consumer and are not as exposed to global trade. From a ratings perspective, we still find value in higher-rated parts of the market despite tight spreads, given these are generally more robust businesses and should still benefit from strong demand as investors look for lower risk ways to boost yields.
Securitized Product: We continue to like our allocation to the securitized sectors (non-agency RMBS and ABS). These sectors of the market offer a diversified collateral base and attractive valuations relative to many other areas of the fixed income markets. In addition, they offer diversification to the corporate credit allocation within the Newfleet sub-advised portion of the Fund. Our consumer focus within ABS has been beneficial as the U.S. consumer continues to show the ability to lift the U.S. economy. Non-agency RMBS benefits from steady income growth, full employment, good underwriting, and investor demand for mortgage credit.
We continue to look for opportunities in all sectors of the bond market, striving to uncover any out-of-favor or undervalued sectors and securities. We favor spread sectors based on sound fundamentals and a supportive environment for fixed income credit, including moderate economic growth, well-contained inflation, and accommodative global central banks. We highlight the importance of credit selection and positioning in the current environment as valuations are generally fair. We believe some of the best total return and yield opportunities in fixed income can be found in spread sectors. Some of the specific sectors where we see the best relative value and opportunities are out-of-index/off-the-run ABS, RMBS, credit-specific high yield and high yield bank loans, investment grade corporates with an overweight to BBBs, and emerging markets debt.
The views and opinions in this report were current as of December 31, 2019 and are subject to change at any time. They are not guarantees of performance or investment results and should not be taken as investment advice. Fund holdings are subject to change at any time. Fund returns are net of fees unless otherwise noted.

 

Growth of $10,000 (unaudited)
This graph compares the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records) with the performance of the Fund’s benchmark index. Results include the reinvestment of all dividends and capital gains distributions. Past performance is no guarantee of future results. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance does not include any fees or expenses of variable insurance contracts, individual retirement accounts (“IRA(s)”), qualified retirement plans or college savings programs. If such fees and expenses were included, returns would be lower.

 

Note: Performance for the Class L and Institutional Class shares may vary due to their differing fee structure. See returns table below.
Average Annual Total Returns for the Periods Ended December 31, 2019 (unaudited)
  One Year Five Year Ten Year / Since
Inception(a)(b)
Institutional Class 12.16% N/A 4.11%
Investor Class 11.74% 3.67% 6.22%
Class L 11.41% N/A 6.30%
(a) Class L inception date was September 10, 2018.
(b) Institutional Class inception date was May 1, 2015.
Results include the reinvestment of all dividends and capital gains distributions. Past performance is no guarantee of future results. The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance does not include any fees or expenses of variable insurance contracts, IRAs, qualified retirement plans or college savings programs. If such fees and expenses were included, returns would be lower.
Summary of Investments by Ratings as of December 31, 2019 (unaudited)
Rating Percentage of
Fund Investments
Aaa 14.76%
Aa1 0.75
Aa2 1.44
Aa3 2.02
A1 1.36
A2 2.64
A3 1.48
Baa1 3.16
Baa2 12.31
Baa3 15.50
Ba1 4.88
Ba2 4.25
Ba3 4.88
B1 3.94
B2 4.48
B3 5.38
CCC, CC, C 4.14
Equities 1.01
Not Rated 8.74
Short Term Investments 2.88
Total 100.00%
Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 29, 2019 to December 31, 2019).

 

Actual Expenses
The first row of the table below provides information about actual account values and actual expenses. You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first row under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second row of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second row of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

  Beginning
Account Value 		  Ending
Account Value 		  Expenses Paid
During Period*
  (06/29/19)   (12/31/19)   (06/29/19–12/31/19)
Institutional Class          
Actual $1,000.00   $1,032.70   $2.85
Hypothetical
(5% return before expenses) 		$1,000.00   $1,022.68   $2.83
Investor Class          
Actual $1,000.00   $1,030.70   $4.66
Hypothetical
(5% return before expenses) 		$1,000.00   $1,020.89   $4.63
Class L          
Actual $1,000.00   $1,029.20   $5.95
Hypothetical
(5% return before expenses) 		$1,000.00   $1,019.62   $5.92
* Expenses are equal to the Fund's annualized expense ratio of 0.55% for the Institutional Class, 0.90% for the Investor Class and 1.15% for the Class L shares, multiplied by the average account value over the period, multiplied by 186/365 days to reflect the one-half year period.
  Performance does not include any fees or expenses of variable insurance contracts, IRAs, qualified retirement plans or college savings programs, if applicable. If such fees or expenses were included, returns would be lower.

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
ASSET-BACKED SECURITIES
Non-Agency — 11.62%
$    810,000 ACC Trust(b)
Series 2019-1 Class B
4.47%, 10/20/2022   		$    822,562
  Ajax Mortgage Loan Trust(b)  
  Series 2018-C Class A  
  1,205,606 4.36%, 09/25/2065(c)     1,218,580
  Series 2019-D Class A1  
     366,065 2.96%, 09/25/2026(d)       363,335
  American Credit Acceptance Receivables Trust(b)  
  Series 2018-3 Class C  
1,390,000 3.75%, 10/15/2024   1,399,242
  Series 2019-2 Class C  
820,000 3.17%, 06/12/2025   827,991
  Series 2019-3 Class D  
360,000 2.89%, 09/12/2025   359,174
1,045,000 American Express Credit Account Master Trust
Series 2019-3 Class A
2.00%, 04/15/2025   		1,047,048
260,704 American Homes 4 Rent(b)
Series 2015-SFR1 Class A
3.47%, 04/17/2052   		268,457
  Americredit Automobile Receivables Trust  
  Series 2019-2 Class D  
720,000 2.99%, 06/18/2025   727,508
  Series 2019-3 Class D  
275,000 2.58%, 09/18/2025   272,129
595,000 AMSR Trust(b)
Series 2019-SFR1 Class A
2.77%, 01/19/2039   		592,484
832,034 Amur Equipment Finance Receivables VI LLC(b)
Series 2018-2A Class A2
3.89%, 07/20/2022   		844,946
1,003,200 Arbys Funding LLC(b)
Series 2015-1A Class A2
4.97%, 10/30/2045   		1,028,721
1,160,000 Avid Automobile Receivables Trust(b)
Series 2019-1 Class C
3.14%, 07/15/2026   		1,155,288
  Bayview Opportunity Master Fund IV Trust(b)  
  Series 2017-SPL4 Class A  
213,158 3.50%, 01/28/2055(c)   215,485
  Series 2017-SPL5 Class B1  
375,000 4.00%, 06/28/2057(c)   386,389
  Series 2019-RN4 Class A1  
277,472 3.28%, 10/28/2034(d)   276,844
1,170,000 BCC Funding Corp XVI LLC(b)
Series 2019-1A Class D
3.94%, 07/20/2027   		1,161,919
925,468 Business Jet Securities LLC(b)
Series 2019-1 Class A
4.21%, 07/15/2034   		949,504
Principal Amount(a)   Fair Value
Non-Agency — (continued)
$    320,000 Carmax Auto Owner Trust
Series 2019-3 Class D
2.85%, 01/15/2026   		$    320,372
  Corevest American Finance Trust(b)  
  Series 2018-1 Class A  
     216,444 3.80%, 06/15/2051       223,225
  Series 2018-2 Class A  
     450,681 4.03%, 11/15/2052       473,057
  Series 2019-3 Class A  
249,689 2.71%, 10/15/2052   249,460
  Series 2019-3 Class B  
145,000 3.16%, 10/15/2052   143,966
  Series 2019-3 Class C  
235,000 3.27%, 10/15/2052   233,770
235,000 CPS Auto Receivables Trust (b)
Series 2019-D Class D
2.72%, 09/15/2025   		233,911
275,000 Credit Acceptance Auto Loan Trust(b)
Series 2019-3A Class C
3.06%, 03/15/2029   		274,563
1,458,702 Credit Suisse Mortgage Trust(b)(c)
Series 2018-RPL8 Class A1
4.13%, 07/25/2058   		1,467,923
  DB Master Finance LLC(b)  
  Series 2017-1A Class A2II  
161,700 4.03%, 11/20/2047   165,464
  Series 2019-1A Class A23  
99,500 4.35%, 05/20/2049   103,085
  Domino's Pizza Master Issuer LLC(b)  
  Series 2017-1A Class A23  
259,700 4.12%, 07/25/2047   269,008
  Series 2019-1A Class A2  
185,000 3.67%, 10/25/2049   185,031
  Drive Auto Receivables Trust  
  Series 2018-3 Class D  
165,000 4.30%, 09/16/2024   169,066
  Series 2018-4 Class D  
1,390,000 4.09%, 01/15/2026   1,428,512
  Series 2019-1 Class C  
950,000 3.78%, 04/15/2025   966,268
  Series 2019-4 Class D  
250,000 2.70%, 02/16/2027   248,093
  DT Auto Owner Trust(b)  
  Series 2019-3A Class D  
155,000 2.96%, 04/15/2025   155,019
  Series 2019-4A Class D  
585,000 2.85%, 07/15/2025   585,079
536,615 ELFI Graduate Loan Program LLC(b)
Series 2019-A Class A
2.54%, 03/25/2044   		529,448
  Exeter Automobile Receivables Trust(b)  
  Series 2018-4A Class D  
1,005,000 4.35%, 09/16/2024   1,035,887
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Non-Agency — (continued)
  Series 2019-1A Class D  
$    955,000 4.13%, 12/16/2024   $    984,933
  Series 2019-3A Class C  
     980,000 2.79%, 05/15/2024       985,452
  Series 2019-4A Class D  
     960,000 2.58%, 09/15/2025       950,765
     600,000 ExteNet LLC(b)
Series 2019-1A Class A2
3.20%, 07/26/2049   		     602,614
120,000 First Investors Auto Owner Trust(b)
Series 2019-2A Class D
2.80%, 12/15/2025   		119,762
  Flagship Credit Auto Trust(b)  
  Series 2019-3 Class D  
210,000 2.86%, 12/15/2025   208,361
  Series 2019-4 Class D  
385,000 3.12%, 01/15/2026   384,171
530,000 Ford Credit Auto Owner Trust
Series 2019-C Class A3
1.87%, 03/15/2024   		529,382
801,977 Foundation Finance Trust(b)
Series 2017-1A Class A
3.30%, 07/15/2033   		805,448
352,023 GCAT LLC(b)(d)
Series 2019-3 Class A1
3.35%, 10/25/2049   		351,578
1,275,000 GLS Auto Receivables Trust(b)
Series 2018-3A Class C
4.18%, 07/15/2024   		1,310,254
1,125,000 GM Financial Automobile Leasing Trust
Series 2019-4 Class A3
1.75%, 07/16/2024   		1,118,277
1,027,000 Hardee's Funding LLC(b)
Series 2018-1A Class A2I
4.25%, 06/20/2048   		1,032,957
  Home Partners of America Trust(b)  
  Series 2019-1 Class D  
198,315 3.41%, 09/17/2039   195,803
  Series 2019-2 Class D  
134,861 3.12%, 10/19/2039   132,164
585,000 Honda Auto Receivables Owner Trust
Series 2019-4 Class A3
1.83%, 01/18/2024   		583,511
576,548 Horizon Aircraft Finance III Ltd(b)
Series 2019-2 Class A
3.43%, 11/15/2039   		573,155
110,000 HPEFS Equipment Trust(b)
Series 2019-1A Class C
2.49%, 09/20/2029   		109,940
990,000 Jersey Mike's Funding(b)
Series 2019-1A Class A2
4.43%, 02/15/2050   		990,973
Principal Amount(a)   Fair Value
Non-Agency — (continued)
$    980,000 Kabbage Funding LLC(b)
Series 2019-1 Class A
3.83%, 03/15/2024   		$    990,713
  Lendmark Funding Trust(b)  
  Series 2018-2A Class A  
  1,005,000 4.23%, 04/20/2027     1,032,790
  Series 2019-1A Class A  
     795,000 3.00%, 12/20/2027       795,583
     618,978 MAPS Ltd(b)
Series 2018-1A Class A
4.21%, 05/15/2043   		     629,705
995,000 Mariner Finance Issuance Trust(b)
Series 2019-AA Class A
2.96%, 07/20/2032   		999,677
302,841 Marlette Funding Trust(b)
Series 2019-4A Class A
2.39%, 12/17/2029   		303,039
1,140,000 Michigan Tobacco Settlement Finance Authority
Series 2006-A Class A
7.31%, 06/01/2046   		1,179,911
320,000 Mill City Mortgage Loan Trust(b)(c)
Series 2018-4 Class A1B
3.50%, 04/25/2066   		326,837
804,702 MVW Owner Trust(b)
Series 2016-1A Class A
2.25%, 12/20/2033   		799,263
  Navient Private Education Refi Loan Trust(b)  
  Series 2019-FA Class A2  
640,000 2.60%, 08/15/2068   638,532
  Series 2019-GA Class B  
100,000 3.08%, 10/15/2068   97,891
305,000 Nissan Auto Receivables Owner Trust
Series 2019-C Class A3
1.93%, 07/15/2024   		305,015
235,000 Planet Fitness Master Issuer LLC(b)
Series 2019-1A Class A2
3.86%, 12/05/2049   		231,564
  Prestige Auto Receivables Trust(b)  
  Series 2018-1A Class D  
1,215,000 4.14%, 10/15/2024   1,258,251
  Series 2019-1A Class D  
980,000 3.01%, 08/15/2025   986,368
  Preston Ridge Partners Mortgage LLC(b)(d)  
  Series 2019-2A Class A1  
1,028,880 3.97%, 04/25/2024   1,031,269
  Series 2019-3A Class A1  
155,971 3.35%, 07/25/2024   156,153
  Series 2019-4A Class A1  
262,702 3.35%, 11/25/2024   262,693
  Pretium Mortgage Credit Partners LLC(b)(d)  
  Series 2019-NPL1 Class A1  
567,110 4.21%, 07/25/2060   568,129
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Non-Agency — (continued)
  Series 2019-NPL3 Class A1  
$    391,089 3.10%, 07/27/2059   $    390,721
     970,000 Primose Funding LLC(b)
Series 2019-1A Class A2
4.48%, 07/30/2049   		     981,824
  Progress Residential Trust(b)  
  Series 2018-SFR1 Class B  
  3,100,000 3.48%, 03/17/2035     3,107,629
  Series 2018-SFR2 Class B  
1,531,000 3.84%, 08/17/2035   1,546,852
  Series 2019-SFR4 Class D  
175,000 3.14%, 10/17/2036   173,830
990,000 Prosper Marketplace Issuance Trust(b)
Series 2018-2A Class B
3.96%, 10/15/2024   		996,772
385,000 Santander Drive Auto Receivables Trust
Series 2019-3 Class D
2.68%, 10/15/2025   		383,419
  SMB Private Education Loan Trust(b)  
  Series 2015-C Class B  
100,000 3.50%, 09/15/2043   101,492
  Series 2018-C Class B  
100,000 4.00%, 11/17/2042   102,770
  Series 2019-B Class A2A  
945,000 2.84%, 06/15/2037   948,279
  SoFi Consumer Loan Program Trust(b)  
  Series 2018-1 Class B  
160,000 3.65%, 02/25/2027   163,010
  Series 2019-4 Class C  
335,000 2.84%, 08/25/2028   333,913
390,000 SoFi Professional Loan Program LLC(b)
Series 2019-C Class A2FX
2.37%, 11/16/2048   		382,470
604,252 SpringCastle Funding(b)
Series 2019-AA Class A
3.20%, 05/27/2036   		606,209
  Towd Point Mortgage Trust(b)(c)  
  Series 2016-3 Class A1  
955,921 2.25%, 04/25/2056   953,445
  Series 2016-4 Class A2  
1,750,000 3.00%, 07/25/2056   1,760,744
  Series 2017-1 Class A2  
950,000 3.50%, 10/25/2056   976,276
  Series 2017-1 Class M1  
635,000 3.75%, 10/25/2056   656,290
  Series 2017-4 Class M2  
225,000 3.25%, 06/25/2057   224,583
  Series 2018-6 Class A1A  
549,088 3.75%, 03/25/2058   564,804
  Series 2018-SJ1 Class A1  
291,014 4.00%, 10/25/2058   293,047
Principal Amount(a)   Fair Value
Non-Agency — (continued)
  Series 2019-1 Class A1  
$    699,530 3.75%, 03/25/2058   $    725,854
  Tricon American Homes Trust(b)  
  Series 2019-SFR1 Class C  
  1,740,000 3.15%, 03/17/2038     1,727,883
  Series 2019-SFR1 Class D  
     115,000 3.20%, 03/17/2038       114,259
801,213 Trinity Rail Leasing LLC(b)
Series 2019-1A Class A
3.82%, 04/17/2049   		821,062
825,000 United Auto Credit Securitization Trust(b)
Series 2019-1 Class E
4.29%, 08/12/2024   		833,555
809,105 Upgrade Master Pass Through Trust(b)
Series 2019-ST1 Class A
4.00%, 07/15/2025   		809,105
392,073 VCAT LLC(b)(d)
Series 2019-NPL2 Class A1
3.57%, 11/25/2049   		391,413
  Vericrest Opportunity Loan Trust(b)(d)  
  Series 2019-NPL2 Class A1  
588,383 3.97%, 02/25/2049   590,049
  Series 2019-NPL5 Class A1A  
562,218 3.35%, 09/25/2049   561,937
  Series 2019-NPL8 Class A1A  
602,925 3.28%, 11/25/2049   601,444
840,000 Veros Automobile Receivables Trust(b)
Series 2018-1 Class B
4.05%, 02/15/2024   		848,049
598,130 VOLT LXII LLC(b)(d)
Series 2017-NPL9 Class A1
3.13%, 09/25/2047   		598,692
298,911 VOLT LXXV LLC(b)(d)
Series 2019-NPL1 Class A1A
4.34%, 01/25/2049   		300,680
967,956 VOLT LXXXIII LLC(b)(d)
Series 2019-NPL9 Class A1A
3.33%, 11/26/2049   		967,372
1,169,125 Wendy's Funding LLC(b)
Series 2019-1A Class A2I
3.78%, 06/15/2049   		1,192,426
  Westlake Automobile Receivables Trust(b)  
  Series 2018-3A Class D  
1,325,000 4.00%, 10/16/2023   1,355,009
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Non-Agency — (continued)
  Series 2019-3A Class D  
$    375,000 2.72%, 11/15/2024   $    374,271
TOTAL ASSET-BACKED SECURITIES — 11.62%
(Cost $75,645,325) 		$ 76,402,135
BANK LOANS
     579,150 Accelerated Health Systems LLC(e)
5.24%, 10/31/2025
1-mo. LIBOR + 3.50% 		     579,150
     560,931 Affinity Gaming LLC(e)
5.05%, 07/03/2023
1-mo. LIBOR + 3.25% 		     533,761
     512,200 AHP Health Partners Inc(e)
6.30%, 06/30/2025
1-mo. LIBOR + 4.50% 		     515,561
179,373 Albertsons LLC(e)
4.55%, 11/17/2025
1-mo. LIBOR + 2.75% 		180,852
802,988 American Builders & Contractors Supply Co Inc(e)
3.80%, 01/15/2027
1-mo. LIBOR + 2.00% 		804,995
373,000 Applied Systems Inc(e)
9.10%, 09/19/2025
3-mo. LIBOR + 7.00% 		380,926
365,000 Aston Finco SARL(e)
6.26%, 10/09/2026
1-mo. LIBOR + 4.25% 		362,034
745,000 Asurion LLC(e)
8.30%, 08/04/2025
1-mo. LIBOR + 6.50% 		753,381
183,150 Atlantic Aviation FBO Inc(e)
5.55%, 12/06/2025
1-mo. LIBOR + 3.75% 		185,096
395,250 Bausch Health Cos Inc(e)
4.49%, 11/27/2025
1-mo. LIBOR + 2.75% 		397,424
820,495 Blackhawk Network Holdings Inc(e)
4.80%, 06/16/2025
1-mo. LIBOR + 3.00% 		820,238
200,781 Boxer Parent Co Inc(e)
6.05%, 10/02/2025
1-mo. LIBOR + 4.25% 		198,177
912,143 Brookfield WEC Holdings Inc(e)
5.30%, 08/01/2025
1-mo. LIBOR + 3.50% 		917,084
398,977 BWay Holding Company(e)
5.23%, 04/03/2024
1-mo. LIBOR + 3.25% 		397,107
661,675 Calpine Corp(e)
4.20%, 04/05/2026
3-mo. LIBOR + 2.25% 		664,156
145,000 Carlisle Foodservice Products Inc(e)(f)
4.91%, 03/20/2025
1-mo. LIBOR + 3.00% 		142,463
Principal Amount(a)   Fair Value
Bank Loans — (continued)
$    780,064 CenturyLink Inc(e)
4.55%, 01/31/2025
1-mo. LIBOR + 2.75% 		$    782,555
     281,387 Change Healthcare Holdings LLC(e)
4.30%, 03/01/2024
1-mo. LIBOR + 2.50% 		     282,149
     640,605 CHG Healthcare Services Inc(e)
4.80%, 06/07/2023
1-mo. LIBOR + 3.00% 		     643,969
     625,000 Chobani LLC(e)(f)
5.26%, 10/10/2023
1-mo. LIBOR + 3.50% 		     624,844
  Citgo Petroleum Corp(e)  
     989,583 6.44%,07/29/2021
3-mo. LIBOR + 4.50% 		    991,439
     412,925 6.94%,03/27/2024
3-mo. LIBOR + 5.00% 		    413,957
289,275 Commscope Inc(e)
5.05%, 04/04/2026
1-mo. LIBOR + 3.25% 		290,721
641,751 CPG International LLC(e)
5.93%, 05/06/2024
3-mo. LIBOR + 3.75% 		643,355
281,072 Crown Finance US Inc(e)
4.05%, 02/28/2025
1-mo. LIBOR + 2.25% 		280,448
634,703 CSC Holdings LLC(e)
3.99%, 01/15/2026
1-mo. LIBOR + 2.25% 		635,179
379,050 Diamond Sports Group LLC(e)
5.03%, 08/24/2026
1-mo. LIBOR + 3.25% 		377,787
625,820 Dole Food Co Inc(e)
4.51%, 04/06/2024
1-mo. LIBOR + 2.75% 		623,278
490,000 Dun & Bradstreet Corp(e)
6.79%, 02/06/2026
1-mo. LIBOR + 5.00% 		493,267
359,100 Dynasty Acquisition Co Inc(e)
5.94%, 04/06/2026
3-mo. LIBOR + 8.00% 		361,536
439,438 DynCorp International Inc(e)
7.74%, 08/15/2025
1-mo. LIBOR + 6.00% 		428,452
553,088 Envision Healthcare Corp(e)
5.55%, 10/10/2025
1-mo. LIBOR + 3.75% 		470,125
661,432 Explorer Holdings Inc(e)
5.60%, 05/02/2023
2-mo. LIBOR + 3.75% 		661,432
1,115,000 Fieldwood Energy LLC(e)
7.18%, 04/11/2022
1-mo. LIBOR + 5.25% 		929,166
625,400 Filtration Group Corp(e)
4.80%, 03/29/2025
1-mo. LIBOR + 3.00% 		627,433
794,912 GFL Environmental Inc(e)
4.80%, 05/30/2025
1-mo. LIBOR + 3.00% 		795,055
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Bank Loans — (continued)
$    481,617 Global Appliance Inc(e)
5.80%, 09/29/2024
1-mo. LIBOR + 4.00% 		$    479,810
     443,873 H-Food Holdings LLC(e)(f)
5.49%, 05/23/2025
1-mo. LIBOR + 3.69% 		     438,695
     541,750 Hillman Group Inc(e)
5.80%, 05/31/2025
1-mo. LIBOR + 4.00% 		     531,818
     564,382 Hoya Midco LLC(e)
5.30%, 06/30/2024
1-mo. LIBOR + 3.50% 		     560,855
      90,000 Iridium Satellite LLC(e)
5.55%, 11/04/2026
1-mo. LIBOR + 3.75% 		      91,069
     520,000 Kronos Acquisitions Holdings Inc(e)
5.79%, 05/15/2023
1-mo. LIBOR + 4.00% 		     510,900
  Kronos Inc(e)  
983,702 4.91%,11/01/2023
2-mo. LIBOR + 3.00% 		988,006
300,000 10.16%,11/01/2024
2-mo. LIBOR + 8.25% 		306,500
1,042,125 LifePoint Health Inc(e)
6.40%, 11/16/2025
3-mo. LIBOR + 4.50% 		1,049,506
442,348 Milk Specialties Co(e)
5.80%, 08/16/2023
1-mo. LIBOR + 4.00% 		420,230
320,000 Navicure Inc(e)
5.80%, 10/22/2026
1-mo. LIBOR + 4.00% 		320,600
595,084 Neiman Marcus Group Ltd LLC(e)
7.71%, 10/25/2023
1-mo. LIBOR + 6.00% 		485,588
440,000 Nexstar Broadcasting Inc(e)
4.53%, 09/18/2026
2-mo. LIBOR + 2.75% 		441,955
697,440 One Call Corp(e)
7.16%, 11/27/2022
2-mo. LIBOR + 5.25% 		642,807
489,798 Ortho-Clinical Diagnostics Inc(e)
5.31%, 06/30/2025
1-mo. LIBOR + 3.25% 		483,064
  Pacific Gas & Electric Co(e)  
95,000 2.25%,12/31/2020
1-mo. LIBOR + 2.25% 		94,881
290,000 3.97%,12/31/2020
1-mo. LIBOR + 2.25% 		289,638
428,925 Panther BF Aggregator 2 LP(e)
5.30%, 04/30/2026
1-mo. LIBOR + 3.50% 		429,997
505,365 Parfums Holding Co Inc(e)
6.16%, 06/30/2024
2-mo. LIBOR + 4.25% 		497,995
149,625 Phoenix Guarantor Inc(e)
6.21%, 03/05/2026
1-mo. LIBOR + 4.50% 		150,311
Principal Amount(a)   Fair Value
Bank Loans — (continued)
$    815,807 Pi US Mergerco Inc(e)
5.05%, 01/03/2025
1-mo. LIBOR + 3.25% 		$    818,612
     423,390 Playa Resorts Holding BV(e)
4.55%, 04/29/2024
1-mo. LIBOR + 2.75% 		     421,273
     369,361 Scientific Games International Inc(e)
4.55%, 08/14/2024
1-mo. LIBOR + 2.75% 		     369,954
  Securus Technologies Holdings Inc(e)  
     176,540 6.30%,11/01/2024
3-mo. LIBOR + 4.50% 		    129,757
     525,000 10.05%,11/01/2025
1-mo. LIBOR + 8.25% 		    236,687
     621,875 Sedgwick Claims Management Services Inc(e)
5.80%, 09/03/2026
1-mo. LIBOR + 4.00% 		     626,228
605,000 Shearer's Foods LLC(e)
8.55%, 06/30/2022
1-mo. LIBOR + 6.75% 		597,438
595,000 Sotera Health Holdings LLC(e)
6.29%, 12/11/2026
1-mo. LIBOR + 4.50% 		595,992
338,674 SS&C Technologies Inc(e)
4.05%, 04/16/2025
1-mo. LIBOR + 4.50% 		340,737
609,513 Stars Group Holdings BV(e)
5.45%, 07/10/2025
3-mo. LIBOR + 3.50% 		614,176
1,071,335 Summit Materials LLC(e)
3.80%, 11/21/2024
1-mo. LIBOR + 2.00% 		1,075,353
535,000 Terra Bidco B C Ltd(e)(f)
6.71%, 11/25/2026
1-mo. LIBOR + 5.00% 		535,000
622,361 TKC Holdings Inc(e)
5.55%, 02/01/2023
1-mo. LIBOR + 3.75% 		575,684
496,935 Transdigm Inc(e)
4.30%, 06/09/2023
1-mo. LIBOR + 2.50% 		497,867
676,810 UFC Holdings LLC(e)
5.05%, 04/29/2026
1-mo. LIBOR + 3.25% 		680,702
601,729 Vertafore Inc(e)
5.05%, 07/02/2025
1-mo. LIBOR + 3.25% 		594,208
340,000 Viant Medical Holdings Inc(e)(f)
5.51%, 07/02/2025
1-mo. LIBOR + 3.75% 		332,492
TOTAL BANK LOANS — 5.69%
(Cost $37,865,370) 		$ 37,444,937
CORPORATE BONDS AND NOTES
Basic Materials — 3.91%
  ArcelorMittal SA  
895,000 7.00%, 10/15/2039
 1,088,575
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Basic Materials — (continued)
$   2,985,000 6.75%, 03/01/2041
 $  3,547,538
  Barrick Gold Corp  
     520,000 5.80%, 11/15/2034
     593,960
  1,690,000 5.25%, 04/01/2042
   2,011,441
   1,590,000 Barrick North America Finance LLC
5.75%, 05/01/2043
   2,019,215
     790,000 BHP Billiton Finance USA Ltd(b)
6.75%, 10/19/2075
      927,594
     850,000 Equate Petrochemical BV(b)
4.25%, 11/03/2026
      908,431
  First Quantum Minerals Ltd(b)  
600,000 7.50%, 04/01/2025
 613,500
200,000 6.88%, 03/01/2026
 202,500
  FMC Corp  
170,000 3.45%, 10/01/2029
 175,524
95,000 4.50%, 10/01/2049
 103,337
  Glencore Funding LLC(b)  
1,350,000 4.00%, 03/27/2027
 1,401,671
1,945,000 4.88%, 03/12/2029(g)
 2,110,612
1,025,000 GUSAP III LP(b)
4.25%, 01/21/2030
 1,041,656
350,000 INEOS Group Holdings SA(b)(g)
5.63%, 08/01/2024
 359,450
670,000 Kraton Polymers LLC / Kraton Polymers Capital Corp(b)
7.00%, 04/15/2025
 690,100
375,000 LYB International Finance III LLC
4.20%, 10/15/2049
 390,150
345,000 Minera Mexico SA de CV(b)
4.50%, 01/26/2050
 351,038
1,725,000 Newmont Goldcorp Corp
4.88%, 03/15/2042
 2,014,532
370,000 NOVA Chemicals Corp(b)
5.00%, 05/01/2025
 377,400
950,000 Olin Corp
5.63%, 08/01/2029
 1,003,390
1,065,000 SABIC Capital II BV(b)
4.50%, 10/10/2028
 1,187,117
785,000 Schweitzer-Mauduit International Inc(b)
6.88%, 10/01/2026
 845,837
385,000 Syngenta Finance NV(b)
4.44%, 04/24/2023
 401,830
875,000 Teck Resources Ltd
6.13%, 10/01/2035
 1,026,945
365,000 TPC Group Inc(b)
10.50%, 08/01/2024
 367,737
    25,761,080
Communications — 6.19%
970,000 Alibaba Group Holding Ltd
3.40%, 12/06/2027
 1,009,440
  AT&T Inc  
1,245,000 3.95%, 01/15/2025
 1,334,390
2,930,000 4.50%, 03/09/2048
 3,232,629
Principal Amount(a)   Fair Value
Communications — (continued)
$    565,000 4.55%, 03/09/2049
 $    625,577
   1,270,000 Cable Onda SA(b)
4.50%, 01/30/2030
   1,337,310
  CCO Holdings LLC / CCO Holdings Capital Corp(b)  
  1,155,000 5.13%, 05/01/2027
   1,218,525
     385,000 4.75%, 03/01/2030
     392,712
  Charter Communications Operating LLC / Charter Communications Operating Capital  
     765,000 5.13%, 07/01/2049
     830,149
2,235,000 4.80%, 03/01/2050
 2,348,619
1,100,000 Cincinnati Bell Inc(b)
7.00%, 07/15/2024
 1,153,625
  Clear Channel Worldwide Holdings Inc(b)  
212,000 9.25%, 02/15/2024
 234,790
325,000 5.13%, 08/15/2027
 338,423
1,060,000 Consolidated Communications Inc(g)
6.50%, 10/01/2022
 959,300
945,000 Cox Communications Inc(b)
4.80%, 02/01/2035
 1,044,728
  CSC Holdings LLC(b)  
680,000 5.38%, 02/01/2028
 725,050
910,000 5.75%, 01/15/2030
 971,425
  Diamond Sports Group LLC / Diamond Sports Finance Co(b)  
435,000 5.38%, 08/15/2026
 440,025
845,000 6.63%, 08/15/2027(g)
 821,762
1,150,000 DISH DBS Corp
5.00%, 03/15/2023
 1,179,728
  Frontier Communications Corp  
335,000 8.50%, 04/15/2020(g)
 199,059
730,000 11.00%, 09/15/2025
 354,050
350,000 8.50%, 04/01/2026(b)
 354,375
485,000 iHeartCommunications Inc
8.38%, 05/01/2027
 535,925
1,045,000 Juniper Networks Inc
3.75%, 08/15/2029
 1,085,446
290,000 Lamar Media Corp
5.00%, 05/01/2023
 295,075
645,000 LCPR Senior Secured Financing Designated Activity Co(b)
6.75%, 10/15/2027
 683,700
550,000 Meredith Corp
6.88%, 02/01/2026
 571,835
  Motorola Solutions Inc  
644,143 4.60%, 02/23/2028
 698,011
330,000 4.60%, 05/23/2029
 359,760
1,000,000 Radiate Holdco LLC / Radiate Finance Inc(b)
6.63%, 02/15/2025
 1,010,000
  Sirius XM Radio Inc(b)  
185,000 4.63%, 07/15/2024
 194,250
395,000 5.50%, 07/01/2029
 427,090
  Sprint Capital Corp  
2,484,000 6.88%, 11/15/2028
 2,676,510
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Communications — (continued)
$    540,000 8.75%, 03/15/2032
 $    655,425
     700,000 Sprint Corp
7.88%, 09/15/2023
      772,331
  Sprint Spectrum Co LLC / Sprint Spectrum Co II LLC / Sprint Spectrum Co III LLC(b)  
     200,000 4.74%, 03/20/2025
     211,796
     735,000 5.15%, 03/20/2028
     801,150
     735,000 Telecom Italia Capital SA
6.00%, 09/30/2034
      788,287
  Telefonica Emisiones SA  
225,000 5.13%, 04/27/2020
 227,130
525,000 7.05%, 06/20/2036
 733,398
  Telesat Canada / Telesat LLC(b)  
1,230,000 6.50%, 10/15/2027
 1,282,275
370,000 4.88%, 06/01/2027
 376,475
1,055,000 Tencent Holdings Ltd(b)
3.98%, 04/11/2029
 1,137,809
  Time Warner Cable LLC  
35,000 5.88%, 11/15/2040
 40,078
235,000 5.50%, 09/01/2041
 261,882
200,000 4.50%, 09/15/2042
 203,936
785,000 Twitter Inc(b)(g)
3.88%, 12/15/2027
 784,592
  ViacomCBS Inc  
65,000 4.38%, 03/15/2043
 68,741
390,000 5.85%, 09/01/2043
 487,370
530,000 5.25%, 04/01/2044
 613,418
1,220,000 ViaSat Inc(b)
5.63%, 09/15/2025
 1,256,600
  Windstream Services LLC / Windstream Finance Corp(b)(h)(i)  
215,000 10.50%, 06/30/2024
 83,850
746,000 9.00%, 06/30/2025
 283,480
    40,713,316
Consumer, Cyclical — 5.67%
78,162 Air Canada Pass Through Trust(b)
Series 2013-1 Class B
5.38%, 05/15/2021
 80,349
470,000 Allison Transmission Inc(b)
4.75%, 10/01/2027
 487,625
  American Airlines Pass Through Trust  
  Series 2016-1 Class B  
4,917,769 5.25%, 01/15/2024
 5,199,378
  Series 2013-1 Class A  
116,474 4.00%, 07/15/2025
 122,000
  Series 2017-2 Class B  
436,895 3.70%, 10/15/2025
 441,394
  Series 2016-3 Class B  
1,177,223 3.75%, 10/15/2025
 1,189,777
Principal Amount(a)   Fair Value
Consumer, Cyclical — (continued)
  Series 2019-1 Class B  
$    705,000 3.85%, 02/15/2028
 $    713,804
     815,000 American Axle & Manufacturing Inc
6.50%, 04/01/2027
      845,562
   2,025,000 American Honda Finance Corp
1.95%, 05/20/2022
   2,032,347
     810,000 Beacon Roofing Supply Inc(b)(g)
4.50%, 11/15/2026
      834,300
     350,000 Boyd Gaming Corp
6.00%, 08/15/2026
      375,813
     315,000 British Airways Pass Through Trust(b)
Series 2019-1 Class A
3.35%, 06/15/2029
      323,371
1,175,000 Brookfield Residential Properties Inc / Brookfield Residential US Corp(b)
6.25%, 09/15/2027
 1,239,625
380,000 Caesars Resort Collection LLC / CRC Finco Inc(b)
5.25%, 10/15/2025
 392,825
17,060 Continental Airlines Pass Through Trust
Series 2012-1 Class B
6.25%, 04/11/2020
 17,199
845,000 Dana Inc
5.38%, 11/15/2027
 870,350
1,070,000 Dillard's Inc
7.75%, 07/15/2026
 1,207,357
400,000 Downstream Development Authority of the Quapaw Tribe of Oklahoma(b)
10.50%, 02/15/2023
 420,000
275,000 Eldorado Resorts Inc
6.00%, 09/15/2026
 302,844
650,000 Gateway Casinos & Entertainment Ltd(b)
8.25%, 03/01/2024
 664,625
790,000 General Motors Co
5.20%, 04/01/2045
 795,799
1,165,000 General Motors Financial Co Inc
5.25%, 03/01/2026
 1,292,844
1,350,000 Goodyear Tire & Rubber Co(g)
4.88%, 03/15/2027
 1,397,250
635,000 Group 1 Automotive Inc
5.00%, 06/01/2022
 643,731
186,616 Latam Airlines Pass Through Trust
Series 2015-1 Class B
4.50%, 11/15/2023
 186,847
1,025,000 Lear Corp
3.80%, 09/15/2027
 1,034,166
665,000 Lennar Corp
4.75%, 11/15/2022
 698,250
540,000 Lithia Motors Inc(b)
4.63%, 12/15/2027
 555,044
240,000 Live Nation Entertainment Inc(b)
4.75%, 10/15/2027
 248,400
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Consumer, Cyclical — (continued)
$    590,000 MGM Resorts International
5.50%, 04/15/2027
 $    654,900
     410,000 Michaels Stores Inc(b)(g)
8.00%, 07/15/2027
      391,550
   1,132,164 Norwegian Air Shuttle ASA Pass Through Trust(b)
Series 2016-1 Class A
4.88%, 05/10/2028
   1,108,418
     570,000 Panther BF Aggregator 2 LP / Panther Finance Co Inc(b)
8.50%, 05/15/2027
      605,625
  PulteGroup Inc  
     625,000 7.88%, 06/15/2032
     803,125
  1,200,000 6.00%, 02/15/2035
   1,338,000
  Scientific Games International Inc(b)  
715,000 8.25%, 03/15/2026
 788,288
215,000 7.00%, 05/15/2028
 230,050
655,000 Scotts Miracle-Gro Co(b)
4.50%, 10/15/2029
 669,541
775,000 SRS Distribution Inc(b)
8.25%, 07/01/2026
 800,187
510,000 Tenneco Inc(g)
5.00%, 07/15/2026
 469,200
3,000 TRI Pointe Group Inc / TRI Pointe Homes Inc
5.88%, 06/15/2024
 3,263
810,000 Under Armour Inc
3.25%, 06/15/2026
 787,368
1,798,287 United Airlines Pass Through Trust
Series 2016-2 Class B
3.65%, 10/07/2025
 1,815,546
  US Airways Pass Through Trust  
  Series 2011-1 Class A  
177,340 7.13%, 10/22/2023
 199,078
  Series 2012-1 Class A  
412,440 5.90%, 10/01/2024
 457,816
795,000 Vista Outdoor Inc(g)
5.88%, 10/01/2023
 760,982
  Volkswagen Group of America Finance LLC(b)  
220,000 2.50%, 09/24/2021
 221,866
575,000 2.70%, 09/26/2022
 581,263
    37,298,942
Consumer, Non-Cyclical — 6.25%
940,000 Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC(b)
4.63%, 01/15/2027
 938,872
1,050,000 Allied Universal Holdco LLC / Allied Universal Finance Corp(b)
6.63%, 07/15/2026
 1,128,435
1,233,000 Altria Group Inc
4.80%, 02/14/2029
 1,372,595
505,000 ASGN Inc(b)
4.63%, 05/15/2028
 519,079
Principal Amount(a)   Fair Value
Consumer, Non-Cyclical — (continued)
  Ashtead Capital Inc(b)  
$   1,225,000 4.38%, 08/15/2027
 $  1,269,406
     415,000 4.25%, 11/01/2029
     423,819
     495,000 Avantor Inc(b)
6.00%, 10/01/2024
      527,784
     935,000 Bacardi Ltd(b)
4.70%, 05/15/2028
   1,017,996
  Bausch Health Americas Inc(b)  
     315,000 9.25%, 04/01/2026
     361,809
720,000 8.50%, 01/31/2027
 819,936
  Bausch Health Cos Inc(b)  
70,000 5.75%, 08/15/2027
 75,950
905,000 7.00%, 01/15/2028
 995,500
415,000 BRF SA(b)
4.88%, 01/24/2030
 427,973
191,000 Bunge Ltd Finance Corp
4.35%, 03/15/2024
 200,498
175,000 Catalent Pharma Solutions Inc(b)
5.00%, 07/15/2027
 183,313
  Centene Corp(b)  
250,000 5.38%, 06/01/2026
 265,313
410,000 4.63%, 12/15/2029
 432,078
250,000 Charles River Laboratories International Inc(b)
4.25%, 05/01/2028
 254,688
990,000 Chobani LLC / Chobani Finance Corp Inc(b)
7.50%, 04/15/2025
 994,950
805,000 CVS Health Corp
3.25%, 08/15/2029
 816,983
1,110,000 DP World Ltd(b)
6.85%, 07/02/2037
 1,458,378
  Eagle Holding Co II LLC(b)(j)  
315,000 7.63%, 05/15/2022

PIK rate, 8.38% 		319,958
465,000 7.75%, 05/15/2022

PIK rate, 8.50% 		472,152
  HCA Inc  
395,000 7.50%, 12/15/2023
 447,337
290,000 8.36%, 04/15/2024
 352,350
135,000 7.69%, 06/15/2025
 162,675
1,115,000 7.58%, 09/15/2025
 1,332,425
2,505,000 7.05%, 12/01/2027
 2,968,425
1,349,000 4.13%, 06/15/2029
 1,429,441
360,000 7.50%, 11/06/2033
 453,600
90,000 7.75%, 07/15/2036
 107,100
1,805,000 5.25%, 06/15/2049
 2,011,960
490,000 JBS LUX USA / JBS USA Food Co / JBS USA Finance Inc(b)
5.50%, 01/15/2030
 526,309
83,000 Koninklijke Ahold Delhaize NV
5.70%, 10/01/2040
 102,240
540,000 Kronos Acquisition Holdings Inc(b)
9.00%, 08/15/2023
 515,700
  Mylan Inc  
330,000 5.40%, 11/29/2043
 364,808
280,000 5.20%, 04/15/2048
 312,595
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Consumer, Non-Cyclical — (continued)
  Mylan NV  
$    855,000 3.95%, 06/15/2026
 $    890,486
  1,220,000 5.25%, 06/15/2046
   1,368,395
     400,000 Ortho-Clinical Diagnostics Inc / Ortho-Clinical Diagnostics SA(b)
6.63%, 05/15/2022
      397,500
     425,000 Par Pharmaceutical Inc(b)(g)
7.50%, 04/01/2027
      422,875
     775,000 Perrigo Finance Unlimited Co
4.38%, 03/15/2026
      799,373
     815,000 Select Medical Corp(b)
6.25%, 08/15/2026
      882,254
1,140,000 ServiceMaster Co LLC
7.45%, 08/15/2027
 1,288,200
895,000 Sigma Finance Netherlands BV(b)
4.88%, 03/27/2028
 965,490
720,000 Surgery Center Holdings Inc(b)(g)
6.75%, 07/01/2025
 720,000
  Tenet Healthcare Corp  
1,305,000 5.13%, 05/01/2025
 1,344,150
332,000 5.13%, 11/01/2027(b)
 350,675
215,000 6.88%, 11/15/2031
 219,300
  Teva Pharmaceutical Finance Netherlands III BV  
685,000 2.80%, 07/21/2023
 635,337
755,000 7.13%, 01/31/2025(b)
 775,536
1,460,000 3.15%, 10/01/2026
 1,215,450
2,515,000 4.10%, 10/01/2046
 1,810,800
150,000 United Rentals North America Inc
4.88%, 01/15/2028
 156,185
530,000 West Street Merger Sub Inc(b)
6.38%, 09/01/2025
 528,675
    41,135,111
Energy — 8.55%
780,000 Alliance Resource Operating Partners LP / Alliance Resource Finance Corp(b)
7.50%, 05/01/2025
 709,800
747,104 Alta Wind Holdings LLC(b)
7.00%, 06/30/2035
 832,321
1,000,000 Blue Racer Midstream LLC / Blue Racer Finance Corp(b)
6.63%, 07/15/2026
 905,000
  California Resources Corp  
359,000 5.50%, 09/15/2021
 168,730
1,510,000 8.00%, 12/15/2022(b)(g)
 649,300
48,000 6.00%, 11/15/2024
 14,400
368,493 Callon Petroleum Co
6.13%, 10/01/2024
 375,472
1,035,000 Cheniere Corpus Christi Holdings LLC(b)
3.70%, 11/15/2029
 1,055,475
  Cheniere Energy Partners LP  
410,000 5.63%, 10/01/2026
 433,575
Principal Amount(a)   Fair Value
Energy — (continued)
$    545,000 4.50%, 10/01/2029(b)
 $    560,042
      25,000 Chesapeake Energy Corp
5.75%, 03/15/2023
       16,922
     375,000 Citgo Holding Inc(b)
9.25%, 08/01/2024
      402,187
  Continental Resources Inc  
      22,000 5.00%, 09/15/2022
      22,147
     240,000 4.50%, 04/15/2023
     250,615
     585,000 3.80%, 06/01/2024
     604,576
810,000 CrownRock LP / CrownRock Finance Inc(b)
5.63%, 10/15/2025
 826,200
395,000 DCP Midstream Operating LP(b)
6.45%, 11/03/2036
 414,750
  Denbury Resources Inc(b)  
345,000 9.25%, 03/31/2022
 325,162
400,000 7.75%, 02/15/2024
 354,000
965,000 Diamondback Energy Inc
3.50%, 12/01/2029
 981,984
990,000 Enable Midstream Partners LP
5.00%, 05/15/2044
 906,530
340,000 Enbridge Energy Partners LP
7.38%, 10/15/2045
 506,628
1,750,000 EnLink Midstream Partners LP
4.15%, 06/01/2025
 1,645,000
2,915,000 Exxon Mobil Corp(g)
1.90%, 08/16/2022
 2,931,209
855,000 Geopark Ltd(b)
6.50%, 09/21/2024
 891,346
825,000 HollyFrontier Corp
5.88%, 04/01/2026
 929,289
600,000 IFM US Colonial Pipeline 2 LLC(b)(g)
6.45%, 05/01/2021
 627,339
  KazMunayGas National Co JSC(b)  
2,480,000 4.75%, 04/19/2027
 2,723,040
1,060,000 5.75%, 04/19/2047
 1,264,050
  Kinder Morgan Inc  
125,000 7.80%, 08/01/2031
 171,828
980,000 7.75%, 01/15/2032
 1,346,733
790,000 Montage Resources Corp
8.88%, 07/15/2023
 728,775
  MPLX LP  
80,000 4.50%, 07/15/2023
 84,967
295,000 4.88%, 06/01/2025
 321,963
775,000 4.00%, 03/15/2028
 801,714
800,000 Nabors Industries Inc(g)
5.50%, 01/15/2023
 768,000
1,670,000 Newfield Exploration Co
5.63%, 07/01/2024
 1,833,615
1,345,000 NGL Energy Partners LP / NGL Energy Finance Corp
6.13%, 03/01/2025
 1,267,662
410,000 Occidental Petroleum Corp
4.50%, 07/15/2044
 412,944
  ONEOK Partners LP  
225,000 4.90%, 03/15/2025
 247,593
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Energy — (continued)
$     70,000 6.20%, 09/15/2043
 $     88,423
     795,000 Patterson-UTI Energy Inc
5.15%, 11/15/2029
      813,439
   2,555,000 Pertamina Persero PT(b)
6.45%, 05/30/2044
   3,280,201
  Petrobras Global Finance BV  
     390,000 5.30%, 01/27/2025
     425,299
  1,315,000 7.38%, 01/17/2027
   1,604,300
     565,000 5.75%, 02/01/2029
     637,320
2,045,000 6.90%, 03/19/2049
 2,398,785
1,800,000 Petroleos de Venezuela SA(b)(i)
6.00%, 05/16/2024
 139,500
  Petroleos Mexicanos  
360,000 4.63%, 09/21/2023
 375,660
1,760,000 6.50%, 03/13/2027
 1,868,627
1,505,000 6.84%, 01/23/2030(b)
 1,604,842
525,000 6.50%, 06/02/2041
 521,325
680,000 6.38%, 01/23/2045
 654,092
670,000 Sabine Pass Liquefaction LLC
4.20%, 03/15/2028
 709,399
500,000 Sanchez Energy Corp(b)(g)(h)(i)
7.25%, 02/15/2023
 325,000
175,000 Shelf Drilling Holdings Ltd(b)
8.25%, 02/15/2025
 166,688
935,000 Sinopec Group Overseas Development 2017 Ltd(b)
3.63%, 04/12/2027
 980,443
1,215,000 State Oil Co of the Azerbaijan Republic
6.95%, 03/18/2030
 1,490,596
745,000 Targa Resources Partners LP / Targa Resources Partners Finance Corp
5.88%, 04/15/2026
 791,562
750,000 TerraForm Power Operating LLC(b)
5.00%, 01/31/2028
 792,982
2,870,000 Transcontinental Gas Pipe Line Co LLC
7.85%, 02/01/2026
 3,644,498
1,070,000 Transportadora de Gas Internacional SA ESP(b)
5.55%, 11/01/2028
 1,223,823
  USA Compression Partners LP / USA Compression Finance Corp  
500,000 6.88%, 04/01/2026
 525,000
475,000 6.88%, 09/01/2027
 494,760
565,000 Vine Oil & Gas LP / Vine Oil & Gas Finance Corp(b)
8.75%, 04/15/2023
 276,850
85,000 Viper Energy Partners LP(b)
5.38%, 11/01/2027
 88,400
    56,234,697
Financial — 16.25%
  Acrisure LLC / Acrisure Finance Inc(b)  
325,000 8.13%, 02/15/2024
 353,438
1,100,000 7.00%, 11/15/2025
 1,061,500
Principal Amount(a)   Fair Value
Financial — (continued)
  AerCap Ireland Capital Designated Activity Co / AerCap Global Aviation Trust  
$    750,000 3.95%, 02/01/2022
 $    774,652
     300,000 3.50%, 05/26/2022
     308,266
     480,000 3.65%, 07/21/2027
     494,053
     100,000 AGFC Capital Trust I(b)(e)
3.75%, 01/15/2067
3-mo. LIBOR + 1.75% 		      49,000
   1,210,000 Aircastle Ltd
4.25%, 06/15/2026
   1,279,219
   1,205,000 Allstate Corp(e)
5.75%, 08/15/2053
3-mo. LIBOR + 2.93% 		  1,295,459
  American International Group Inc  
60,000 4.88%, 06/01/2022
 64,028
75,000 4.13%, 02/15/2024
 80,483
1,125,000 Antares Holdings LP(b)
6.00%, 08/15/2023
 1,182,865
805,000 Athene Holding Ltd
4.13%, 01/12/2028
 832,554
815,000 Australia & New Zealand Banking Group Ltd(b)
4.40%, 05/19/2026
 867,901
1,148,000 Avolon Holdings Funding Ltd(b)
4.38%, 05/01/2026
 1,212,632
600,000 Banco de Bogota SA(b)
6.25%, 05/12/2026
 671,256
4,800,000 Banco Santander SA
5.18%, 11/19/2025
 5,372,990
  Bank of America Corp  
225,000 4.25%, 10/22/2026
 245,196
400,000 4.18%, 11/25/2027
 433,265
1,000,000 Bank of China Ltd(b)(g)
5.00%, 11/13/2024
 1,090,886
770,000 Bank of Montreal
3.80%, 12/15/2032
 803,072
1,150,000 BBVA Bancomer SA(b)
5.13%, 01/18/2033
 1,160,074
1,180,000 Brighthouse Financial Inc(g)
3.70%, 06/22/2027
 1,175,892
1,335,000 Brixmor Operating Partnership LP REIT
4.13%, 05/15/2029
 1,432,351
1,465,000 Capital One Financial Corp
3.75%, 07/28/2026
 1,541,950
770,000 Citadel LP(b)
4.88%, 01/15/2027
 809,976
1,445,000 Citibank NA(e)
2.50%, 05/20/2022
3-mo. LIBOR + 0.60% 		1,450,417
  Citigroup Inc  
900,000 6.25%, Perpetual(e)(k)
3-mo. LIBOR + 4.51% 		1,022,670
1,775,000 3.50%, 05/15/2023
 1,846,487
480,000 CNO Financial Group Inc
5.25%, 05/30/2029
 535,800
  Danske Bank A/S(b)(e)  
1,020,000 3.00%, 09/20/2022
3-mo. LIBOR + 1.24% 		1,027,868
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Financial — (continued)
$    295,000 3.24%, 12/20/2025
3-mo. LIBOR + 1.59% 		$    298,286
     210,000 Deutsche Bank AG
4.88%, 12/01/2032
      197,925
172,000,000 Development Bank of Kazakhstan JSC(b)
KZT, 8.95%, 05/04/2023
      419,958
     200,139 Doric Nimrod Air Alpha Pass Through Trust(b)
Series 2013-1 Class A
5.25%, 05/30/2023
      205,821
   1,000,000 Drawbridge Special Opportunities Fund LP / Drawbridge Special Opportunities Finance(b)
5.00%, 08/01/2021
   1,015,243
   1,120,000 EPR Properties REIT
4.75%, 12/15/2026
   1,222,981
     800,000 Equinix Inc REIT
3.20%, 11/18/2029
      802,976
980,000 ESH Hospitality Inc REIT(b)
4.63%, 10/01/2027
 992,250
965,000 Fairfax Financial Holdings Ltd
4.85%, 04/17/2028
 1,050,251
145,000 Fairstone Financial Inc(b)
7.88%, 07/15/2024
 155,875
975,000 Fidelity National Financial Inc
5.50%, 09/01/2022
 1,049,282
  Global Atlantic Finance Co(b)  
770,000 8.63%, 04/15/2021
 822,832
365,000 4.40%, 10/15/2029
 359,856
  GLP Capital LP / GLP Financing II Inc REIT  
850,000 5.25%, 06/01/2025
 932,960
288,000 5.75%, 06/01/2028
 326,995
  Goldman Sachs Group Inc  
1,090,000 3.85%, 01/26/2027
 1,159,238
1,600,000 6.75%, 10/01/2037
 2,217,795
1,140,000 Grupo de Inversiones Suramericana SA(b)
5.50%, 04/29/2026
 1,271,111
650,000 Healthcare Trust of America Holdings LP REIT
3.75%, 07/01/2027
 685,747
427,000 Huntington Bancshares Inc(e)(k)
5.70%, Perpetual
3-mo. LIBOR + 2.88% 		443,013
  Icahn Enterprises LP / Icahn Enterprises Finance Corp  
700,000 6.38%, 12/15/2025
 734,125
1,085,000 6.25%, 05/15/2026
 1,155,525
755,000 ING Groep NV(g)(k)
6.00%, Perpetual
 759,002
980,000 Intercorp Peru Ltd(b)
3.88%, 08/15/2029
 970,210
  International Lease Finance Corp  
145,000 8.25%, 12/15/2020
 153,284
555,000 4.63%, 04/15/2021
 572,238
1,000,000 Iron Mountain Inc REIT(b)
4.88%, 09/15/2029
 1,015,800
Principal Amount(a)   Fair Value
Financial — (continued)
$    965,000 iStar Inc REIT
4.25%, 08/01/2025
 $    975,576
  Jefferies Group LLC  
     580,000 5.13%, 01/20/2023
     626,019
     705,000 6.45%, 06/08/2027
     826,154
  1,140,000 6.25%, 01/15/2036
   1,359,272
   1,500,000 KeyCorp (e)(k)
5.00%, Perpetual
3-mo. LIBOR + 3.60% 		  1,593,960
   1,000,000 KeyCorp Capital III
7.75%, 07/15/2029
   1,270,921
10,720,000 Kreditanstalt fuer Wiederaufbau
NOK, 1.00%, 10/12/2021
 1,205,779
350,000 Lincoln National Corp(e)
4.01%, 04/20/2067
3-mo. LIBOR + 2.04% 		295,750
580,000 M&T Bank Corp(e)(k)
5.13%, Perpetual
3-mo. LIBOR + 3.52% 		628,575
600,000 MBIA Insurance Corp(b)(e)
13.26%, 01/15/2033
3-mo. LIBOR + 11.26% 		410,583
  MetLife Inc  
860,000 5.88%, Perpetual(e)(k)
3-mo. LIBOR + 2.95% 		957,343
245,000 9.25%, 04/08/2038(b)
 360,763
915,000 10.75%, 08/01/2039
 1,528,050
490,000 MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc REIT(b)
5.75%, 02/01/2027
 547,575
  Morgan Stanley  
2,970,000 4.10%, 05/22/2023
 3,135,317
585,000 3.13%, 07/27/2026
 603,399
1,950,000 4.35%, 09/08/2026
 2,131,017
285,000 3.95%, 04/23/2027
 305,443
  MPT Operating Partnership LP / MPT Finance Corp REIT  
400,000 5.00%, 10/15/2027
 424,000
195,000 4.63%, 08/01/2029
 200,850
1,410,000 Mutual of Omaha Insurance Co(b)
6.80%, 06/15/2036
 1,838,304
1,345,000 Nationstar Mortgage Holdings Inc(b)
9.13%, 07/15/2026
 1,489,588
  Navient Corp  
190,000 5.50%, 01/25/2023
 202,825
1,035,000 6.13%, 03/25/2024
 1,122,975
195,000 5.88%, 10/25/2024
 208,650
825,000 6.75%, 06/15/2026
 906,758
3,035,000 5.63%, 08/01/2033
 2,610,100
1,340,000 Old Republic International Corp
4.88%, 10/01/2024
 1,468,271
535,000 Penn Mutual Life Insurance Co(b)
6.65%, 06/15/2034
 687,115
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Financial — (continued)
$    850,000 PNC Financial Services Group Inc(e)(k)
5.00%, Perpetual
3-mo. LIBOR + 3.30% 		$    908,965
  Prudential Financial Inc(e)  
     690,000 5.88%, 09/15/2042
3-mo. LIBOR + 4.17% 		    741,750
     390,000 5.63%, 06/15/2043
3-mo. LIBOR + 3.92% 		    419,250
  Quicken Loans Inc(b)  
     495,000 5.75%, 05/01/2025
     511,706
     565,000 5.25%, 01/15/2028
     584,775
535,000 Radian Group Inc
4.50%, 10/01/2024
 565,763
585,000 Regency Centers LP REIT
2.95%, 09/15/2029
 583,795
1,185,000 Royal Bank of Scotland Group PLC
6.00%, 12/19/2023
 1,317,011
  Santander Holdings USA Inc  
1,840,000 3.50%, 06/07/2024
 1,891,557
380,000 4.40%, 07/13/2027
 409,897
  Service Properties Trust REIT  
1,275,000 4.35%, 10/01/2024
 1,309,153
640,000 4.75%, 10/01/2026
 655,874
1,315,000 4.95%, 02/15/2027
 1,362,420
  Societe Generale SA(b)  
1,740,000 4.75%, 11/24/2025
 1,884,212
2,475,000 4.25%, 08/19/2026
 2,610,796
850,000 Spirit Realty LP REIT
3.40%, 01/15/2030
 853,215
  Springleaf Finance Corp  
1,355,000 6.88%, 03/15/2025
 1,541,313
715,000 7.13%, 03/15/2026
 826,683
80,000 5.38%, 11/15/2029
 83,504
  Synchrony Financial  
410,000 2.85%, 07/25/2022
 414,867
1,120,000 3.95%, 12/01/2027
 1,175,814
540,000 Synovus Financial Corp
5.90%, 02/07/2029
 572,400
1,295,000 Toronto-Dominion Bank
3.63%, 09/15/2031
 1,353,287
870,000 Voya Financial Inc(e)(g)
5.65%, 05/15/2053
3-mo. LIBOR + 3.58% 		924,993
775,000 Wells Fargo & Co(e)(k)
5.90%, Perpetual
3-mo. LIBOR + 3.11% 		843,836
1,160,000 Zions Bancorp NA
3.25%, 10/29/2029
 1,137,447
    106,871,994
Industrial — 3.98%
1,650,000 APL Ltd
8.00%, 01/15/2024
 1,468,665
980,000 ARD Finance SA(b)(j)
6.50%, 06/30/2027

PIK rate, 7.25% 		1,013,271
Principal Amount(a)   Fair Value
Industrial — (continued)
  Bombardier Inc(b)  
$    580,000 5.75%, 03/15/2022
 $    599,031
  2,255,000 6.00%, 10/15/2022
   2,254,323
     400,000 7.50%, 03/15/2025
     412,496
  1,238,000 CAD, 7.35%, 12/22/2026
     919,288
     770,000 Delhi International Airport Ltd(b)
6.45%, 06/04/2029
      823,635
     845,000 Embraer Netherlands Finance BV
5.40%, 02/01/2027
      951,056
  General Electric Co  
1,035,000 5.00%, Perpetual(e)(k)
3-mo. LIBOR + 3.33% 		1,013,741
260,000 4.50%, 03/11/2044
 284,066
  GFL Environmental Inc(b)  
325,000 7.00%, 06/01/2026
 343,330
315,000 8.50%, 05/01/2027
 346,500
780,000 Granite Holdings US Acquisition Co(b)
11.00%, 10/01/2027
 789,750
520,000 Greif Inc(b)
6.50%, 03/01/2027
 561,600
1,015,000 Hillenbrand Inc
4.50%, 09/15/2026
 1,060,552
600,000 Hillman Group Inc(b)
6.38%, 07/15/2022
 558,000
500,000 IHS Netherlands Holdco BV(b)
8.00%, 09/18/2027
 531,250
205,000 Keysight Technologies Inc
3.00%, 10/30/2029
 205,378
436,000 Leonardo US Holding Inc(b)
6.25%, 01/15/2040
 486,140
450,000 LSB Industries Inc(b)
9.63%, 05/01/2023
 462,092
  Masco Corp  
233,000 7.75%, 08/01/2029
 302,483
339,000 6.50%, 08/15/2032
 416,308
815,000 Mauser Packaging Solutions Holding Co(b)
7.25%, 04/15/2025
 804,813
1,570,000 Oshkosh Corp
4.60%, 05/15/2028
 1,675,074
  Owens Corning  
936,000 3.95%, 08/15/2029
 972,966
502,000 7.00%, 12/01/2036
 625,100
665,000 Patrick Industries Inc(b)
7.50%, 10/15/2027
 708,225
925,000 Pentair Finance SARL
4.50%, 07/01/2029
 974,408
520,000 Reynolds Group Issuer Inc / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu(b)
7.00%, 07/15/2024
 537,550
  TransDigm Inc(b)  
365,000 6.25%, 03/15/2026
 395,153
810,000 5.50%, 11/15/2027
 819,096
  Trident TPI Holdings Inc(b)  
550,000 9.25%, 08/01/2024
 555,500
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Industrial — (continued)
$    575,000 6.63%, 11/01/2025
 $    517,500
     825,000 Vertiv Intermediate Holding Corp(b)(j)
12.00%, 02/15/2022

PIK rate, 13.00% 		     855,938
     900,000 Weekley Homes LLC / Weekley Finance Corp
6.63%, 08/15/2025
     931,500
    26,175,778
Technology — 2.16%
   1,645,000 Apple Inc
1.80%, 05/11/2020
   1,643,519
     350,000 Banff Merger Sub Inc(b)
9.75%, 09/01/2026
      354,375
2,485,000 Broadcom Inc(b)
4.75%, 04/15/2029
 2,717,147
895,000 Citrix Systems Inc
4.50%, 12/01/2027
 968,823
  Dell International LLC / EMC Corp(b)  
620,000 6.02%, 06/15/2026
 713,076
395,000 8.10%, 07/15/2036
 518,435
355,000 Exela Intermediate LLC / Exela Finance Inc(b)(g)
10.00%, 07/15/2023
 142,000
625,000 Hewlett Packard Enterprise Co
6.35%, 10/15/2045
 750,654
3,270,000 International Business Machines Corp
2.85%, 05/13/2022
 3,340,687
  Micron Technology Inc  
170,000 5.33%, 02/06/2029
 194,838
995,000 4.66%, 02/15/2030
 1,094,726
720,000 MSCI Inc(b)
4.00%, 11/15/2029
 729,900
985,000 VMware Inc
3.90%, 08/21/2027
 1,029,944
    14,198,124
Utilities — 1.62%
960,000 CenterPoint Energy Inc
4.25%, 11/01/2028
 1,041,158
1,286,000 DPL Inc(b)
4.35%, 04/15/2029
 1,239,287
875,000 EDP Finance BV(b)
4.13%, 01/15/2020
 874,052
765,000 Enel Finance International NV(b)
6.00%, 10/07/2039
 961,656
1,570,000 NextEra Energy Capital Holdings Inc
2.40%, 09/01/2021
 1,580,906
1,125,000 Perusahaan Listrik Negara PT(b)
4.13%, 05/15/2027
 1,185,469
  Talen Energy Supply LLC(b)  
180,000 7.25%, 05/15/2027
 189,396
755,000 6.63%, 01/15/2028
 770,100
Principal Amount(a)   Fair Value
Utilities — (continued)
  Vistra Operations Co LLC(b)  
$   1,820,000 3.70%, 01/30/2027
 $  1,806,486
     980,000 4.30%, 07/15/2029
     998,428
    10,646,938
TOTAL CORPORATE BONDS AND NOTES — 54.58%
(Cost $334,952,016) 		$359,035,980
CONVERTIBLE BONDS
Communications — 0.69%
5,000,000 DISH Network Corp
2.38%, 03/15/2024
 4,565,500
Consumer, Non-Cyclical — 0.21%
1,295,000 BioMarin Pharmaceutical Inc(g)
0.60%, 08/01/2024
 1,368,166
Energy — 0.02%
275,000 Chesapeake Energy Corp
5.50%, 09/15/2026
 131,006
TOTAL CONVERTIBLE BONDS — 0.92%
(Cost $6,113,315) 		$ 6,064,672
FOREIGN GOVERNMENT BONDS AND NOTES
625,000 Abu Dhabi Government International Bond(b)
3.13%, 09/30/2049   		609,375
  Angolan Government International Bond(b)  
985,000 8.25%, 05/09/2028   1,062,017
1,105,000 8.00%, 11/26/2029   1,177,327
1,665 (l) Brazilian Government International Bond
BRL, 12.50%, 01/05/2022   		459,534
1,165,000 Costa Rica Government International Bond(b)
6.13%, 02/19/2031   		1,239,269
  Dominican Republic International Bond(b)  
200,000 6.88%, 01/29/2026(g)   228,252
1,410,000 6.00%, 07/19/2028   1,566,877
1,850,000 Ecuador Government International Bond(b)
8.88%, 10/23/2027   		1,696,797
  Egypt Government International Bond(b)  
895,000 7.60%, 03/01/2029   978,530
870,000 8.50%, 01/31/2047   965,161
  Ghana Government International Bond(b)  
485,000 7.63%, 05/16/2029   493,900
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Foreign Government Bonds and Notes — (continued)
$   1,145,000 8.13%, 03/26/2032   $  1,165,159
   1,250,000 Indonesia Government International Bond(b)
4.35%, 01/08/2027   		  1,363,963
     400,000 Ivory Coast Government International Bond(b)
6.13%, 06/15/2033   		     402,918
   1,530,000 Jordan Government International Bond(b)
5.75%, 01/31/2027   		  1,613,715
   1,445,000 Kenya Government International Bond(b)
8.00%, 05/22/2032   		  1,572,015
     235,000(m) Mexican Bonos
MXP, 6.50%, 06/09/2022   		  1,235,659
  Mexico Government International Bond  
520,000 4.15%, 03/28/2027   557,180
670,000 4.50%, 04/22/2029   734,655
725,000 Mongolia Government International Bond(b)
8.75%, 03/09/2024   		823,555
900,000 Morocco Government International Bond(b)
5.50%, 12/11/2042   		1,102,149
1,810,000 Nigeria Government International Bond(b)
7.88%, 02/16/2032   		1,876,651
6,595,000 Norway Government Bond(b)
NOK, 3.75%, 05/25/2021   		776,139
  Pakistan Government International Bond  
530,000 6.88%, 12/05/2027(b)   551,507
605,000 6.88%, 12/05/2027   629,551
535,000 Panama Government International Bond
4.30%, 04/29/2053   		621,938
  Republic of South Africa Government International Bond  
350,000 5.88%, 09/16/2025   385,214
645,000 4.30%, 10/12/2028   632,100
580,000 5.65%, 09/27/2047   564,050
3,000,000 Russian Foreign Eurobond(b)
5.63%, 04/04/2042   		3,922,950
  Saudi Government International Bond(b)  
1,560,000 3.63%, 03/04/2028   1,646,496
1,295,000 4.50%, 10/26/2046   1,433,705
  Turkey Government International Bond  
1,700,000 4.88%, 10/09/2026   1,622,446
1,255,000 6.00%, 03/25/2027   1,271,423
1,655,000 7.63%, 04/26/2029(g)   1,827,679
2,525,000 Ukraine Government International Bond(b)
7.38%, 09/25/2032   		2,692,115
Principal Amount(a)   Fair Value
Foreign Government Bonds and Notes — (continued)
$   1,700,000 Venezuela Government International Bond(i)
7.65%, 04/21/2025   		$    195,500
TOTAL FOREIGN GOVERNMENT BONDS AND NOTES — 6.34%
(Cost $40,171,771) 		$ 41,697,471
MORTGAGE-BACKED SECURITIES
Non-Agency — 9.09%
   1,050,760 Agate Bay Mortgage Trust(b)(c)
Series 2016-3 Class A5
3.50%,  08/25/2046   		  1,071,406
     820,137 Angel Oak Mortgage Trust(b)(c)
Series 2019-3 Class A1
2.93%,  05/25/2059   		     821,819
     865,831 Angel Oak Mortgage Trust I LLC(b)(c)
Series 2019-1 Class A1
3.92%,  11/25/2048   		     878,245
  Arroyo Mortgage Trust(b)(c)  
  Series 2018-1 Class A1  
251,513 3.76%, 04/25/2048   254,429
  Series 2019-1 Class A1  
631,145 3.81%, 01/25/2049   641,711
  Series 2019-2 Class A1  
516,536 3.35%, 04/25/2049   522,664
205,000 Brass No 8 PLC(b)(e)
Series 8A Class A1
2.81%,  11/16/2066
3-mo. LIBOR + 0.70% 		204,980
1,037,232 Bunker Hill Loan Depositary Trust(b)(d)
Series 2019-1 Class A1
3.61%,  10/26/2048   		1,048,003
985,000 BX Trust(b)
Series 2019-OC11 Class D
4.08%,  12/09/2041   		997,896
478,101 Chase Home Lending Mortgage Trust(b)(c)
Series 2019-ATR1 Class A4
4.00%,  04/25/2049   		480,972
1,500,528 Chase Mortgage Finance Corp(b)(c)
Series 2016-SH2 Class M2
3.75%,  12/25/2045   		1,530,715
1,325,000 CHC Commercial Mortgage Trust(b)(e)
Series 2019-CHC Class A
2.86%,  06/15/2034
1-mo. LIBOR + 1.12% 		1,323,409
  Citigroup Mortgage Loan Trust(b)(c)  
  Series 2018-RP3 Class A1  
106,483 3.25%, 03/25/2061   107,603
  Series 2019-IMC1 Class A1  
682,265 2.72%, 07/25/2049   682,912
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Non-Agency — (continued)
  Series 2019-RP1 Class A1  
$    999,277 3.50%, 01/25/2066   $  1,019,762
  COLT Mortgage Loan Trust(b)(c)  
  Series 2018-3 Class A1  
  1,736,314 3.69%, 10/26/2048     1,745,278
  Series 2019-1 Class A1  
     469,661 3.71%, 03/25/2049       472,263
  Series 2019-3 Class A1  
1,887,611 2.76%, 08/25/2049   1,885,039
1,500,000 COMM Mortgage Trust(b)(c)
Series 2014-277P Class A
3.61%,  08/10/2049   		1,579,231
255,000 CSMC Trust(b)(c)
Series 2019-RP10 Class A1
3.32%,  12/25/2059   		254,592
235,000 DBUBS Mortgage Trust(b)(c)
Series 2017-BRBK Class D
3.53%,  10/10/2034   		238,282
886,886 Deephaven Residential Mortgage Trust(b)(c)
Series 2018-3A Class A1
3.79%,  08/25/2058   		891,918
  Ellington Financial Mortgage Trust(b)(c)  
  Series 2018-1 Class A1FX  
657,102 4.14%, 10/25/2058   666,416
  Series 2019-1 Class A1  
677,062 2.93%, 06/25/2059   679,851
  Series 2019-2 Class A3  
308,035 3.05%, 11/25/2059   307,797
  Galton Funding Mortgage Trust(b)(c)  
  Series 2018-2 Class A41  
713,719 4.50%, 10/25/2058   727,092
  Series 2019-H1 Class A1  
384,763 2.66%, 10/25/2059   384,876
414,581 GCAT LLC(b)(d)
Series 2019-NQM1 Class A1
2.99%,  02/25/2059   		415,460
430,446 GCAT Trust(b)(c)
Series 2019-RPL1 Class A1
2.65%,  10/25/2068   		429,740
92,541 Grand Avenue Mortgage Loan Trust(b)
Series 2017-RPL1 Class A1
3.25%,  08/25/2064   		91,300
430,000 GS Mortgage Securities Corp Trust(b)(c)
Series 2013-PEMB Class D
3.55%,  03/05/2033   		373,260
  Homeward Opportunities Fund I Trust(b)(c)  
  Series 2018-2 Class A1  
190,643 3.99%, 11/25/2058   193,651
  Series 2019-1 Class A1  
737,341 3.45%, 01/25/2059   741,251
  JP Morgan Mortgage Trust(c)  
  Series 2005-A5 Class 1A2  
327,211 4.11%, 08/25/2035   332,518
  Series 2014-2 Class 2A2  
645,087 3.50%, 06/25/2029(b)   652,978
Principal Amount(a)   Fair Value
Non-Agency — (continued)
  Series 2018-8 Class A3  
$   1,589,286 4.00%, 01/25/2049(b)   $  1,611,307
     820,000 JPMBB Commercial Mortgage Securities Trust
Series 2015-C31 Class AS
4.11%,  08/15/2048   		     873,248
     431,620 Legacy Mortgage Asset Trust(b)(d)
Series 2019-GS7 Class A1
3.25%,  11/25/2059   		     431,775
     980,000 LHOME Mortgage Trust(b)(d)
Series 2019-RTL1 Class A1
4.58%,  10/25/2023   		     989,548
     330,000 Mello Warehouse Securitization Trust(b)(e)
Series 2019-1 Class C
2.99%,  06/25/2052
1-mo. LIBOR + 1.20% 		     330,000
     876,006 Metlife Securitization Trust(b)(c)
Series 2019-1A Class A1A
3.75%,  04/25/2058   		     903,334
546,494 Mill City Mortgage Loan Trust(b)(c)
Series 2019-GS1 Class A1
2.75%,  07/25/2059   		548,978
  New Residential Mortgage Loan Trust(b)  
  Series 2017-2A Class A3  
2,071,040 4.00%, 03/25/2057(c)   2,159,213
  Series 2018-1A Class A1A  
2,513,825 4.00%, 12/25/2057(c)   2,604,395
  Series 2018-4A Class A1S  
1,388,029 2.54%, 01/25/2048(e)
1-mo. LIBOR + 0.75% 		1,384,250
  Series 2018-NQM1 Class A1  
348,994 3.99%, 11/25/2048(c)   352,113
  Series 2019-NQM1 Class A1  
1,620,757 3.67%, 01/25/2049(c)   1,629,186
  Series 2019-NQM4 Class A1  
372,232 2.49%, 09/25/2059(c)   370,398
  Onslow Bay Mortgage Loan Trust(b)(c)  
  Series 2018-EXP2 Class 1A1  
1,034,188 4.00%, 11/25/2048   1,043,235
  Series 2019-EXP3 Class 1A8  
308,161 3.50%, 10/25/2059   310,191
  Series 2019-INV1 Class A3  
477,033 4.50%, 11/25/2048   490,015
  Preston Ridge Partners Mortgage LLC(b)  
  Series 2019-1A Class A1  
1,479,022 4.50%, 01/25/2024(d)   1,482,585
  Series 2019-GS1 Class A1  
757,170 3.50%, 10/25/2024(c)   756,321
1,966,908 Provident Funding Mortgage Trust(b)(c)
Series 2019-1 Class A2
3.00%,  12/25/2049   		1,977,279
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount(a)   Fair Value
Non-Agency — (continued)
$   1,221,437 RCO V Mortgage LLC(b)(d)
Series 2019-1 Class A1
3.72%,  05/24/2024   		$   1,222,600
   1,676,182 Residential Mortgage Loan Trust(b)(c)
Series 2019-2 Class A1
2.91%,  05/25/2059   		  1,673,732
     965,316 RMF Proprietary Issuance Trust(b)(c)
Series 2019-1 Class A
2.75%,  10/25/2063   		     955,113
  Sequoia Mortgage Trust(b)(c)  
  Series 2018-CH2 Class A12  
  1,565,514 4.00%, 06/25/2048     1,575,888
  Series 2019-CH2 Class A1  
319,790 4.50%, 08/25/2049   324,288
1,364,468 Starwood Mortgage Residential Trust(b)(c)
Series 2019-IMC1 Class A1
3.47%,  02/25/2049   		1,374,612
955,345 Towd Point HE Trust(b)(e)
Series 2019-HE1 Class A1
2.69%,  04/25/2048
1-mo. LIBOR + 0.90% 		954,433
497,221 Towd Point Mortgage Trust(b)(c)
Series 2019-4 Class A1
2.90%,  10/25/2059   		499,781
780,000 UBS Commercial Mortgage Trust(b)(c)
Series 2012-C1 Class D
5.57%,  05/10/2045   		764,726
  Verus Securitization Trust(b)(c)  
  Series 2018-2 Class B1  
585,000 4.43%, 06/01/2058   590,790
  Series 2018-3 Class A1  
518,843 4.11%, 10/25/2058   523,964
  Series 2019-1 Class A1  
868,602 3.84%, 02/25/2059   877,410
  Series 2019-INV1 Class A1  
702,493 3.40%, 12/25/2059   706,895
1,910,000 Wells Fargo Commercial Mortgage Trust
Series 2015-LC20 Class B
3.72%,  04/15/2050   		1,977,052
Principal Amount(a)   Fair Value
Non-Agency — (continued)
$    830,000 WFRBS Commercial Mortgage Trust
Series 2014-C24 Class AS
3.93%,  11/15/2047   		$    872,239
    59,790,213
U.S. Government Agency — 0.13%
     820,456 Federal National Mortgage Association
3.50%,  07/01/2049   		    842,905
TOTAL MORTGAGE-BACKED SECURITIES — 9.22%
(Cost $60,254,797) 		$ 60,633,118
MUNICIPAL BONDS AND NOTES
   2,430,000 State of California
7.60%, 11/01/2040
   4,011,225
2,460,000 Tobacco Settlement Financing Corp
Series A-1
6.71%, 06/01/2046
 2,369,349
TOTAL MUNICIPAL BONDS AND NOTES — 0.97%
(Cost $6,483,773) 		$ 6,380,574
U.S. GOVERNMENT AGENCY BONDS AND NOTES
  Federal National Mortgage Association  
843,787 4.00%, 09/01/2047   886,368
727,883 4.00%, 05/01/2048   760,640
TOTAL U.S. GOVERNMENT AGENCY BONDS AND NOTES — 0.25%
(Cost $1,593,357) 		$ 1,647,008
U.S. TREASURY BONDS AND NOTES
  United States Treasury Note/Bond  
5,670,000 1.50%, 04/15/2020   5,668,450
1,915,000 2.38%, 04/30/2020   1,919,638
11,440,000 1.50%, 09/30/2021   11,419,698
5,220,000 1.50%, 11/30/2021   5,211,515
3,100,000 1.75%, 06/15/2022(g)   3,111,131
2,000,000 1.25%, 08/31/2024   1,959,909
7,970,000 1.50%, 09/30/2024   7,896,067
5,620,000 3.00%, 08/15/2048   6,321,872
4,495,000 2.25%, 08/15/2049   4,355,233
TOTAL U.S. TREASURY BONDS AND NOTES — 7.28%
(Cost $46,967,864) 		$ 47,863,513
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Shares   Fair Value
COMMON STOCK
Basic Materials — 0.08%
43,327 Hexion Holdings Corp Class B(g)(n) $    522,090
Communications — 0.43%
33,353 AT&T Inc   1,303,435
51,679 Corning Inc   1,504,376
    2,807,811
Energy — 0.00%(o)
42,007 Chesapeake Energy Corp(n) 34,681
TOTAL COMMON STOCK — 0.51%
(Cost $6,341,572) 		$ 3,364,582
CONVERTIBLE PREFERRED STOCK
Consumer, Non-Cyclical — 0.17%
10,938 Bunge Ltd 4.88% 1,126,331
Energy — 0.25%
4,456 Chesapeake Energy Corp 5.00% 90,234
15 Chesapeake Energy Corp 5.75% 2,797
30,000 El Paso Energy Capital Trust I 4.75% 1,519,507
    1,612,538
TOTAL CONVERTIBLE PREFERRED STOCK — 0.42%
(Cost $2,604,470) 		$ 2,738,869
PREFERRED STOCK
Utilities — 0.09%
24,643 Southern California Edison Co 605,725
TOTAL PREFERRED STOCK — 0.09%
(Cost $383,938) 		$ 605,725
GOVERNMENT MONEY MARKET MUTUAL FUNDS
725,000 BlackRock Liquidity Funds FedFund Institutional Shares(p), 1.52%(q) 725,000
530,000 Fidelity® Investments Money Market Government Portfolio Institutional Class(p), 1.53%(q) 530,000
725,000 Goldman Sachs Financial Square Government Fund Institutional Shares(p), 1.51%(q) 725,000
741,000 Invesco Government & Agency Portfolio Institutional Class(p), 1.51%(q) 741,000
Shares   Fair Value
Government Money Market Mutual Funds — (continued)
725,000 JPMorgan U.S. Government Money Market Fund Capital Shares(p), 1.50%(q) $    725,000
725,000 Morgan Stanley Institutional Liquidity Funds Government Portfolio(p), 1.51%(q)     725,000
TOTAL GOVERNMENT MONEY MARKET MUTUAL FUNDS — 0.63%
(Cost $4,171,000) 		$ 4,171,000
Principal Amount    
SHORT TERM INVESTMENTS
U.S. Government Agency Bonds and Notes — 0.64%
$  4,200,000 Federal Home Loan Bank
1.17%, 01/02/2020
    4,199,866
Repurchase Agreements — 2.28%
1,350,303 Undivided interest of 12.97% in a repurchase agreement (principal amount/value $10,417,355 with a maturity value of $10,418,252) with HSBC Securities (USA) Inc, 1.55%, dated 12/31/19 to be repurchased at $1,350,303 on 1/2/20 collateralized by U.S. Treasury securities, 0.00% - 2.63%, 1/9/20 - 5/15/47, with a value of $10,625,702.(p) 1,350,303
4,560,770 Undivided interest of 16.92% in a repurchase agreement (principal amount/value $26,989,456 with a maturity value of $26,991,810) with Bank of Montreal, 1.57%, dated 12/31/19 to be repurchased at $4,560,770 on 1/2/20 collateralized by various U.S. Government Agency securities, 2.50% - 5.00%, 4/20/49 - 12/1/49, with a value of $27,529,245.(p) 4,560,770
 
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
Principal Amount   Fair Value
Repurchase Agreements — (continued)
$  4,560,770 Undivided interest of 28.27% in a repurchase agreement (principal amount/value $16,152,649 with a maturity value of $16,154,085) with Credit Agricole Securities (USA) Inc, 1.60%, dated 12/31/19 to be repurchased at $4,560,770 on 1/2/20 collateralized by various U.S. Government Agency securities, 3.00% - 5.00%, 11/1/33 - 8/1/49, with a value of $16,475,702.(p) $   4,560,770
   4,560,770 Undivided interest of 6.91% in a repurchase agreement (principal amount/value $66,115,552 with a maturity value of $66,121,319) with Citigroup Global Markets Inc, 1.57%, dated 12/31/19 to be repurchased at $4,560,770 on 1/2/20 collateralized by U.S. Treasury securities and various U.S. Government Agency securities, 0.00% - 9.00%, 2/13/20 - 9/20/69, with a value of $67,437,863.(p)   4,560,770
    15,032,613
TOTAL SHORT TERM INVESTMENTS — 2.92%
(Cost $19,232,479) 		$ 19,232,479
TOTAL INVESTMENTS — 101.44%
(Cost $642,781,047) 		$667,282,063
OTHER ASSETS & LIABILITIES, NET — (1.44)% $ (9,481,262)
TOTAL NET ASSETS — 100.00% $657,800,801
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Schedule of Investments
As of December 31, 2019
(a)  Amount is stated in U.S. dollars unless otherwise noted.
(b)  Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended.
(c)  Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.
(d)  Step bond; a zero coupon bond that converts to a fixed rate or variable interest rate at a designated future date. Rate disclosed represents effective yield at December 31, 2019. Maturity date disclosed represents final maturity date.
(e)  Adjustable rate security; interest rate is subject to change. Interest rate shown reflects the rate in effect at December 31, 2019.
(f)  All or a portion of this position has not settled as of December 31, 2019. The interest rate shown represents the stated spread over LIBOR or the applicable LIBOR floor; the Fund will not accrue interest until the settlement date, at which point the LIBOR will be established.
(g)  All or a portion of the security is on loan at December 31, 2019.
(h)  Security in bankruptcy at December 31, 2019.
(i)  Security in default.
(j)  Security is a payment-in-kind bond (PIK); income may be received in cash or additional securities at the discretion of the issuer.
(k)  Security has no contractual maturity date and pays an indefinite stream of interest.
(l)  Principal amount is stated in 1,000 Brazilian Real Units.
(m)  Principal amount is stated in 100 Mexican Peso Units.
(n)  Non-income producing security.
(o)  Represents less than 0.005% of net assets.
(p)  Collateral received for securities on loan.
(q)  Rate shown is the 7-day yield as of December 31, 2019.
LIBOR  London Interbank Offered Rate is the interest rate banks charge each other for short-term loans.
LP  Limited Partnership
REIT  Real Estate Investment Trust
Currency Abbreviations  
BRL Brazilian Real
CAD Canadian Dollar
KZT Kazakhstani Tenge
MXP Mexican Peso
NOK Norwegian Krone
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
Statement of Assets and Liabilities
As of December 31, 2019
  Great-West Multi-Sector Bond Fund
ASSETS:  
Investments in securities, fair value  (including $18,459,852 of securities on loan)(a) $652,249,450
Repurchase agreements, fair value(b) 15,032,613
Cash 4,640,745
Interest receivable 6,063,141
Subscriptions receivable 434,222
Receivable for investments sold 2,976,102
Total Assets 681,396,273
LIABILITIES:  
Payable for director fees 2,807
Payable for distribution fees 122
Payable for investments purchased 2,042,055
Payable for other accrued fees 80,206
Payable for shareholder services fees 57,499
Payable to investment adviser 301,898
Payable upon return of securities loaned 19,203,613
Redemptions payable 1,907,272
Total Liabilities 23,595,472
NET ASSETS $657,800,801
NET ASSETS REPRESENTED BY:  
Capital stock, $0.10 par value $6,216,684
Paid-in capital in excess of par 624,849,341
Undistributed/accumulated earnings 26,734,776
NET ASSETS $657,800,801
NET ASSETS BY CLASS  
Investor Class $185,208,565
Class L $606,277
Institutional Class $471,985,959
CAPITAL STOCK:  
Authorized  
Investor Class 80,000,000
Class L 15,000,000
Institutional Class 150,000,000
Issued and Outstanding  
Investor Class 13,376,093
Class L 59,495
Institutional Class 48,731,247
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE:  
Investor Class $13.85
Class L $10.19
Institutional Class $9.69
(a) Cost of investments $627,748,434
(b) Cost of repurchase agreements $15,032,613
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
Statement of Operations
For the fiscal year ended December 31, 2019
  Great-West Multi-Sector Bond Fund
INVESTMENT INCOME:  
Interest $31,945,032
Income from securities lending 170,669
Dividends 795,870
Foreign withholding tax (13,981)
Total Income 32,897,590
EXPENSES:  
Management fees 3,369,962
Shareholder services fees – Investor Class 678,418
Shareholder services fees – Class L 1,312
Audit and tax fees 46,408
Custodian fees 37,346
Director's fees 14,191
Distribution fees – Class L 944
Legal fees 9,461
Pricing fees 91,151
Registration fees 56,968
Shareholder report fees 11,438
Transfer agent fees 11,985
Other fees 1,715
Total Expenses 4,331,299
Less amount waived by investment adviser 85,481
Less amount waived by distributor - Class L 33
Net Expenses 4,245,785
NET INVESTMENT INCOME 28,651,805
NET REALIZED AND UNREALIZED GAIN (LOSS):  
Net realized loss on investments and foreign currency transactions (7,785,360)
Net Realized Loss (7,785,360)
Net change in unrealized appreciation on investments and foreign currency translations 52,085,111
Net Change in Unrealized Appreciation 52,085,111
Net Realized and Unrealized Gain 44,299,751
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $72,951,556
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
Statement of Changes in Net Assets
For the fiscal years ended December 31, 2019 and 2018
Great-West Multi-Sector Bond Fund 2019   2018
OPERATIONS:      
Net investment income $28,651,805   $29,603,933
Net realized loss (7,785,360)   (460,246)
Net change in unrealized appreciation (depreciation) 52,085,111   (48,627,045)
Net Increase (Decrease) in Net Assets Resulting from Operations 72,951,556   (19,483,358)
DISTRIBUTIONS TO SHAREHOLDERS:      
From net investment income and net realized gains      
Investor Class (3,479,270)   (6,675,662)
Class L (10,904)   (3,569)
Institutional Class (14,200,904)   (23,763,254)
From Net Investment Income and Net Realized Gains (17,691,078)   (30,442,485)
CAPITAL SHARE TRANSACTIONS:      
Shares sold      
Investor Class 42,874,227   48,117,714
Class L 1,052,258   220,423
Institutional Class 89,164,836   84,486,086
Shares issued in reinvestment of distributions      
Investor Class 3,479,270   6,675,662
Class L 10,904   3,569
Institutional Class 14,200,904   23,763,254
Shares redeemed      
Investor Class (74,596,041)   (131,254,590)
Class L (587,040)   (105,485)
Institutional Class (90,285,821)   (141,885,057)
Net Decrease in Net Assets Resulting from Capital Share Transactions (14,686,503)   (109,978,424)
Total Increase (Decrease) in Net Assets 40,573,975   (159,904,267)
NET ASSETS:      
Beginning of year 617,226,826   777,131,093
End of year $657,800,801   $617,226,826
CAPITAL SHARE TRANSACTIONS - SHARES:      
Shares sold      
Investor Class 3,190,719   3,631,463
Class L 105,607   22,237
Institutional Class 9,413,234   8,869,078
Shares issued in reinvestment of distributions      
Investor Class 257,725   518,526
Class L 1,093   381
Institutional Class 1,499,623   2,608,828
Shares redeemed      
Investor Class (5,548,395)   (9,938,392)
Class L (59,105)   (10,718)
Institutional Class (9,528,843)   (14,950,662)
Net Decrease (668,342)   (9,249,259)
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Financial Highlights
Selected data for a share of capital stock of the Fund throughout the periods indicated.
    Income (Loss) from Investment Operations:   Less Distributions:    
  Net asset value,
beginning of year 		Net
investment
income(a) 		Net realized
and unrealized
gain (loss) 		Total from
investment
operations 		From net
investment
income 		From net
realized
gains 		Total
Distributions 		Net asset value,
end of year 		Total
Return (b)(c)
Investor Class
12/31/2019 $12.62 0.56 0.91 1.47 (0.22) (0.02) (0.24) $13.85 11.74%
12/31/2018 $13.42 0.52 (0.93) (0.41) (0.32) (0.07) (0.39) $12.62 (3.10%)
12/31/2017 $12.85 0.47 0.33 0.80 (0.23) - (0.23) $13.42 6.27%
12/31/2016 $11.88 0.52 0.82 1.34 (0.30) (0.07) (0.37) $12.85 11.38%
12/31/2015 $13.20 0.46 (1.31) (0.85) (0.31) (0.16) (0.47) $11.88 (6.55%)
Class L
12/31/2019 $ 9.40 0.37 0.69 1.06 (0.25) (0.02) (0.27) $10.19 11.41%
12/31/2018 (d) $10.00 0.14 (0.42) (0.28) (0.25) (0.07) (0.32) $ 9.40 (2.79%) (e)
Institutional Class
12/31/2019 $ 8.91 0.43 0.64 1.07 (0.27) (0.02) (0.29) $ 9.69 12.16%
12/31/2018 $ 9.68 0.41 (0.67) (0.26) (0.44) (0.07) (0.51) $ 8.91 (2.80%)
12/31/2017 $ 9.40 0.38 0.24 0.62 (0.34) - (0.34) $ 9.68 6.68%
12/31/2016 $ 8.84 0.42 0.61 1.03 (0.40) (0.07) (0.47) $ 9.40 11.79%
12/31/2015 (f) $10.00 0.26 (0.97) (0.71) (0.31) (0.14) (0.45) $ 8.84 (7.17%) (e)
  Net assets,
end of year
(000) 		Ratio of expenses
to average net assets
(before reimbursement
and/or waiver, if applicable) 		Ratio of expenses
to average net assets
(after reimbursement
and/or waiver, if applicable) 		  Ratio of net investment income
to average net assets
(after reimbursement
and/or waiver, if applicable) 		Portfolio
turnover
rate(g)
Supplemental Data and Ratios
Investor Class
12/31/2019 $185,209 0.92% 0.90%   4.18% 81%
12/31/2018 $195,275 0.91% 0.90%   3.93% 61%
12/31/2017 $285,372 0.90% 0.90%   3.57% 19%
12/31/2016 $312,781 0.90% 0.90%   4.16% 20%
12/31/2015 $327,015 0.90% 0.90%   3.58% 35%
Class L
12/31/2019 $ 606 6.19% 1.15%   3.70% 81%
12/31/2018 (d) $ 112 76.93% (h) 1.14% (h)   4.60% (h) 61%
Institutional Class
12/31/2019 $471,986 0.56% 0.55%   4.52% 81%
12/31/2018 $421,840 0.55% 0.55%   4.31% 61%
12/31/2017 $491,759 0.55% 0.55%   3.91% 19%
12/31/2016 $409,663 0.55% 0.55%   4.51% 20%
12/31/2015 (f) $392,917 0.55% (h) 0.55% (h)   4.07% (h) 35%
(a) Per share amounts are based upon average shares outstanding.
(b) Total return does not include any fees or expenses of variable insurance contracts, if applicable. If such fees or expenses were included, the return shown would have been lower.
(c) Total return shown net of expenses reimbursed and/or waived, if applicable. Without the expense reimbursement and/or waiver, the return shown would have been lower.
(d) Class L inception date was September 10, 2018.
(e) Not annualized for periods less than one full year.
(f) Institutional Class inception date was May 1, 2015.
(g) Portfolio turnover is calculated at the Fund level.
(h) Annualized.
See Notes to Financial Statements.
Annual Report - December 31, 2019

 

GREAT-WEST FUNDS, INC.
GREAT-WEST MULTI-SECTOR BOND FUND
Notes to Financial Statements
1.  ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Great-West Funds, Inc. (Great-West Funds), a Maryland corporation, was organized on December 7, 1981 and is registered under the Investment Company Act of 1940 (the 1940 Act) as an open-end management investment company. Great-West Funds presently consists of sixty-six funds. Interests in the Great-West Multi-Sector Bond Fund (the Fund) are included herein. The investment objective of the Fund is to seek high total investment return through a combination of current income and capital appreciation. The Fund is diversified as defined in the 1940 Act. The Fund is available as an investment option to insurance company separate accounts for certain variable annuity contracts and variable life insurance policies, to individual retirement account custodians or trustees, to plan sponsors of qualified retirement plans, to college savings programs, and to asset allocation funds that are a series of Great-West Funds.
The Fund offers three share classes, referred to as Investor Class, Class L and Institutional Class shares. All shares of the Fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, expenses (other than those attributable to a specific class) and realized and unrealized gains and losses are allocated daily to each class of shares based on the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against operations of that class. Expenses incurred by Great-West Funds, which are not Fund specific, are allocated based on relative net assets or other appropriate allocation methods.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Great-West Funds are also investment companies and accordingly follow the investment company accounting and reporting guidance of U.S. GAAP. The following is a summary of the significant accounting policies of the Fund.
Security Valuation
The Board of Directors of the Fund has adopted policies and procedures for the valuation of the Fund’s securities and assets, and has appointed the Fair Value Pricing Committee of the investment adviser, Great-West Capital Management, LLC, to complete valuation determinations under those policies and procedures.
The Fund generally values its securities based on market prices determined at the close of regular trading on the New York Stock Exchange (NYSE) on each day the NYSE is open for trading. The net asset value (NAV) of each class of the Fund's shares is determined by dividing the net assets attributable to each class of shares of the Fund by the number of issued and outstanding shares of each class of the Fund on each valuation date.
For securities that are traded on only one exchange, the last sale price as of the close of business of that exchange will be used. If the closing price is not available, the current bid as of the close of business will be used. For securities traded on more than one exchange, or upon one or more exchanges and in the over-the-counter (OTC) market, the last sale price as of the close of business on the market which the security is traded most extensively will be used. If the closing price is not available, the current bid as of the close of business will be used. For securities that principally trade on the NASDAQ National Market System, the NASDAQ official closing price will be used.
Short term securities purchased with less than 60 days remaining until maturity and all U.S. Treasury Bills are valued on the basis of amortized cost, which has been determined to approximate fair value. Short term securities purchased with more than 60 days remaining until maturity are valued using pricing services, or in the event a price is not available from a pricing service, may be priced using other methodologies approved by the Board of Directors, including model pricing or pricing on the basis of quotations from brokers or dealers, and will continue to be priced until final maturity.
Annual Report - December 31, 2019

 

Fixed income investments, including bank loans, are valued using evaluated bid prices from approved pricing services when available and appropriate based on the conditions of the market. If a price cannot be located from either the primary or secondary sources, or if the market is determined to be illiquid or inactive, other appropriate sources, which may include the use of an internally developed valuation model, another external pricing vendor or sourcing a price from a broker, may be used.
Investments in shares of the underlying mutual funds are valued at the net asset value as reported by the underlying mutual fund, which may be obtained from pricing services or other pricing sources.
Foreign equity securities are generally valued using an adjusted systematic fair value price from an independent pricing service. Foreign exchange rates are determined at a time that corresponds to the closing of the NYSE.
Independent pricing services are approved by the Board of Directors and are utilized for all investment types when available. In some instances valuations from independent pricing services are not available or do not reflect events in the market between the time the market closed and the valuation time and therefore fair valuation procedures are implemented. The fair value for some securities may be obtained from pricing services or other pricing sources. The inputs used by the pricing services are reviewed quarterly or when the pricing vendor issues updates to its pricing methodologies. Broker quotes are analyzed through an internal review process, which includes a review of known market conditions and other relevant data. Developments that might trigger fair value pricing could be natural disasters, government actions or fluctuations in domestic and foreign markets.
The following table provides examples of the inputs that are commonly used for valuing particular classes of securities. These classifications are not exclusive, and any inputs may be used to value any other security class.
Class Inputs
Asset-Backed Securities Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs may also include new issue data, collateral performance, and monthly payment information.
Bank Loans Broker quotes, Loan Syndications and Trading Association daily marks, loan analytics and market news.
Corporate Bonds and Notes Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs also may include observations of equity and credit default swap curves related to issuer.
Convertible Bonds, Convertible Preferred Stock, Preferred Stock Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs also may include exchange prices.
Foreign Government Bonds and Notes Benchmark yields, executed trades, broker/dealer quotes, credit information, collateral attributes, issuer spreads, benchmark securities, treasury/swap maturity curves, issuer spread curves, evaluated bids, market corroborated inputs, offers and reference data including market research publications.
Mortgage-Backed Securities Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs may also include new issue data, collateral performance, TBA prices, monthly payment information and third party real estate analysis.
Municipal Bonds and Notes Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications. Inputs also may include reported trades, benchmark yields, new issue data, and material event notices.
Annual Report - December 31, 2019

 

U.S. Government Agency Bonds and Notes, U.S. Treasury Bonds and Notes Benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, evaluated bids, offers and reference data including market research publications.
Common Stock Exchange traded close price, bids, evaluated bids, open and close price of the local exchange, exchange rates, fair values based on significant market movement and various index data.
Government Money Market Mutual Funds Net asset value of underlying mutual fund.
Short Term Investments Maturity date, credit quality and interest rates.
The Fund classifies its valuations into three levels based upon the observability of inputs to the valuation of the Fund’s investments. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. Classification is based on the lowest level of input significant to the fair value measurement. The three levels are defined as follows:
Level 1 – Unadjusted quoted prices for identical securities in active markets.
Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. These may include quoted prices for similar assets in active markets.
Level 3 – Unobservable inputs to the extent observable inputs are not available and may include prices obtained from single broker quotes. Unobservable inputs reflect the Fund’s own assumptions and would be based on the best information available under the circumstances.
As of December 31, 2019, the inputs used to value the Fund’s investments are detailed in the following table. More information regarding the sector and industry classifications, as applicable, are included in the Schedule of Investments.
  Level 1   Level 2   Level 3   Total
Assets              
Investments, at fair value:              
Asset-Backed Securities $ —   $ 76,402,135   $ —   $ 76,402,135
Bank Loans —   37,444,937   —   37,444,937
Corporate Bonds and Notes —   359,035,980   —   359,035,980
Convertible Bonds —   6,064,672   —   6,064,672
Foreign Government Bonds and Notes —   41,697,471   —   41,697,471
Mortgage-Backed Securities —   60,633,118   —   60,633,118
Municipal Bonds and Notes —   6,380,574   —   6,380,574
U.S. Government Agency Bonds and Notes —   1,647,008   —   1,647,008
U.S. Treasury Bonds and Notes —   47,863,513   —   47,863,513
Common Stock 3,364,582   —   —   3,364,582
Convertible Preferred Stock —   2,738,869   —   2,738,869
Preferred Stock 605,725   —   —   605,725
Government Money Market Mutual Funds 4,171,000   —   —   4,171,000
Short Term Investments —   19,232,479   —   19,232,479
Total Assets $ 8,141,307   $ 659,140,756   $ 0   $ 667,282,063
Repurchase Agreements
The Fund may engage in repurchase agreement transactions with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund will purchase securities at a specified price with an agreement to sell the securities to the same counterparty at a specified time, price and interest rate. The Fund’s custodian and/or securities lending agent receives delivery of the underlying securities collateralizing a repurchase agreement. Collateral is at least equal to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights.
Annual Report - December 31, 2019

 

Foreign Currency Translations and Transactions
The accounting records of the Fund are maintained in U.S. dollars. Investment securities, and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the current exchange rate. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the dates of the transactions.
The Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Fund and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. These gains and losses are included in net realized gain or loss and change in net unrealized appreciation or depreciation on the Statement of Operations.
Security Transactions
Security transactions are accounted for on the date the security is purchased or sold (trade date). Realized gains and losses from investments sold are determined on a specific lot selection. Dividend income for the Fund is accrued as of the ex-dividend date and interest income, including amortization of discounts and premiums, is recorded daily.
Federal Income Taxes and Distributions to Shareholders
The Fund intends to comply with provisions under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remains open for the three preceding fiscal reporting period ends. State tax returns may remain open for an additional fiscal year.
Distributions to shareholders from net investment income of the Fund, if any, are declared and paid semi-annually. Capital gain distributions of the Fund, if any, are declared and paid at least annually. Distributions are reinvested in additional shares of the Fund at net asset value and are declared separately for each class. Distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
The tax character of distributions paid during the years ended December 31, 2019 and 2018 were as follows:
  2019   2018
Ordinary income $16,407,896   $26,413,566
Long-term capital gain 1,283,182   4,028,919
  $17,691,078   $30,442,485
Net investment income (loss) and net realized gain (loss) for federal income tax purposes may differ from those reported on the financial statements because of temporary and permanent book-tax basis differences. Book-tax differences may include but are not limited to the following: wash sales, distribution adjustments, market discount adjustments, real estate investment trust securities and foreign currency reclassifications.
Capital accounts within the financial statements are adjusted for permanent book-tax differences, and are not adjusted for temporary book-tax differences which will reverse in a subsequent period. Accordingly, the Fund has reclassified $193,212 from Paid-in capital to Undistributed/accumulated earnings for December 31, 2019. Net assets of the Fund were unaffected by the reclassifications.
Annual Report - December 31, 2019

 

The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation for federal income tax purposes. At December 31, 2019, the components of distributable earnings on a tax basis were as follows:
Undistributed net investment income $845,439
Undistributed long-term capital gains 2,137,170
Capital loss carryforwards —
Post-October losses (668,093)
Net unrealized appreciation 24,420,260
Tax composition of capital $26,734,776
At December 31, 2019, the Fund had capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. During the year ended December 31, 2019, the Fund did not utilize any capital loss carryforwards. Details of the capital loss carryforwards as of December 31, 2019, were as follows:
The Fund has elected to defer to the next fiscal year the following Post-October losses:
Post-October Ordinary Losses   Post-October Capital Losses
$(668,093)   $—
The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation for federal income tax purposes as of December 31, 2019 were as follows:
Federal tax cost of investments $642,861,803
Gross unrealized appreciation on investments 34,958,737
Gross unrealized depreciation on investments (10,538,477)
Net unrealized appreciation on investments $24,420,260
2.  INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Great-West Funds has entered into an investment advisory agreement with Great-West Capital Management, LLC (the Adviser), a wholly-owned subsidiary of Great-West Life & Annuity Insurance Company (GWL&A). As compensation for its services to Great-West Funds, the Adviser receives monthly compensation at the annual rate of 0.52% of the Fund’s average daily net assets up to $1 billion dollars, 0.47% of the Fund’s average daily net assets over $1 billion dollars and 0.42% of the Fund’s average daily net assets over $2 billion dollars. Certain administration and accounting services fees for the Fund are included in the investment advisory agreement.
The Adviser has contractually agreed to waive fees or reimburse expenses that exceed an annual rate of 0.55% of the Fund’s average daily net assets attributable to each Class, including management fees and expenses paid directly by the Fund, excluding shareholder service fees, distribution fees and certain extraordinary expenses (the “Expense Limit”). The agreement’s current term ends on April 30, 2020 and automatically renews for one-year unless terminated upon written notice within 90 days of the end of the current term or upon termination of the investment advisory agreement. The amount waived or reimbursed, if any, is reflected in the Statement of Operations.
The Adviser is permitted upon approval by the Board of Directors to recoup amounts waived or reimbursed by the Fund in future periods, not exceeding three years, if the Fund's other expenses including such recoupment do not exceed the Expense Limit. At December 31, 2019, the amounts subject to recoupment were as follows:
Expires December 31, 2020   Expires December 31, 2021   Expires December 31, 2022   Recoupment of
Past Reimbursed Fees
by the Adviser
$16,264   $29,722   $85,481   $0
The Adviser and Great-West Funds have entered into a sub-advisory agreement with Loomis, Sayles & Company, L.P. and Newfleet Asset Management, LLC. The Adviser is responsible for compensating the Sub-Advisers for their services.
Annual Report - December 31, 2019

 

Great-West Funds has entered into a shareholder services agreement with GWL&A. Pursuant to the shareholder services agreement, GWL&A provides recordkeeping and shareholder services to shareholders and account owners and receives from the Investor Class and Class L shares of the Fund a fee equal to 0.35% of the average daily net asset value of the applicable share class.
GWFS Equities, Inc. (the Distributor), is a wholly-owned subsidiary of GWL&A and the principal underwriter to distribute and market the Fund. The Fund has entered into a plan of distribution which provides for compensation for distribution of Class L shares and for providing or arranging for the provision of services to Class L shareholders. The distribution plan provides for a maximum fee equal to an annual rate of 0.25% of the average daily net assets of the Class L shares. The Distributor has agreed to voluntarily waive all 12b-1 fees attributable to Class L shares purchased by the Adviser in consideration for the Adviser providing initial capital to the Fund. The amount waived, if any, is reflected in the Statement of Operations.
Certain officers of Great-West Funds are also directors and/or officers of GWL&A or its subsidiaries. No officer or interested director of Great-West Funds receives any compensation directly from Great-West Funds. The total compensation paid to the independent directors with respect to all sixty-six funds for which they serve as directors was $975,000 for the fiscal year ended December 31, 2019.
3.  PURCHASES AND SALES OF INVESTMENTS
For the year ended December 31, 2019, the aggregate cost of purchases and proceeds from sales of investments (excluding all U.S. Government securities and short-term securities) were $415,203,419 and $441,051,554, respectively. For the same period, the aggregate cost of purchases and proceeds from sales of long-term U.S. Government securities were $76,485,223 and $49,225,358, respectively.
4.  SECURITIES LOANED
The Fund has entered into a securities lending agreement with its custodian as securities lending agent. Under the terms of the agreement the Fund receives income after deductions of other amounts payable to the securities lending agent or to the borrower from lending transactions. In exchange for such fees, the securities lending agent is authorized to loan securities on behalf of the Fund against receipt of cash collateral at least equal in value at all times to the value of the securities loaned plus accrued interest. The fair value of the loaned securities is determined daily at the close of business of the Fund and necessary collateral adjustments are made between the Fund and its counterparties on the next business day through the delivery or receipt of additional collateral. The Fund also continues to receive interest or dividends on the securities loaned. Cash collateral is invested in securities approved by the Board of Directors. The Fund bears the risk of any deficiency in the amount of collateral available for return to a borrower due to a loss in an approved investment. As of December 31, 2019, the Fund had securities on loan valued at $18,459,852 and received collateral as reported on the Statement of Assets and Liabilities of $19,203,613 for such loan which was invested in repurchase agreements collateralized by U.S. Government or U.S. Government Agency securities and Government Money Market Mutual Funds. The repurchase agreements can be jointly purchased with other lending agent clients and in the event of a default by the counterparty, all lending agent clients would share ratably in the collateral.
Under the securities lending agreement, the collateral pledged is, by definition, the securities loaned against the cash borrowed. The following table summarizes the cash collateral liability under the securities lending agreement by class of securities loaned as of December 31, 2019. Additional information regarding the Fund's securities on loan is included in the Schedule of Investments.
Security lending transactions Total (a)
Corporate Bonds and Notes $13,592,945
Convertible Bonds 1,411,550
Foreign Government Bonds and Notes 714,850
U.S. Treasury Bonds and Notes 3,177,500
Common Stocks 306,768
Total secured borrowings $19,203,613
(a) The remaining contractual maturity of all of the securities lending transactions is overnight and continuous.
Annual Report - December 31, 2019

 

5.  INDEMNIFICATIONS
The Fund’s organizational documents provide current and former officers and directors with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
6.  SUBSEQUENT EVENT
Management has reviewed all events subsequent to December 31, 2019, including the estimates inherent in the process of preparing these financial statements, through the date the financial statements were issued. No subsequent events requiring adjustment or disclosure have occurred.
Annual Report - December 31, 2019

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Great-West Funds, Inc.
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Great-West Multi-Sector Bond Fund (the “Fund”), one of the funds of Great-West Funds, Inc., as of December 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian, agent banks, and brokers; when replies were not received from agent banks or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Denver, Colorado
February 21, 2020
We have served as the auditor of one or more Great-West investment companies since 1982.

 

TAX INFORMATION (unaudited)
Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders. Of the ordinary income distributions declared for the year ended December 31, 2019, 4% qualifies for the dividend received deduction available to the Fund’s corporate shareholders.

 

Fund Directors and Officers
Great-West Funds, Inc. (“Great-West Funds”) is organized under Maryland law, and is governed by the Board of Directors. The following table provides information about each of the Directors and executive officers of Great-West Funds.
Independent Directors*
Name, Address,
and Age 		Positions(s)
Held with
Great-West
Funds 		Term of Office
and Length of
Time Served*** 		Principal Occupation(s)
During Past 5 Years 		Number of
Funds in Fund
Complex
Overseen by
Director 		Other
Directorships
Held by Director
Gail H. Klapper
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
76 		Chair &
Independent Director 		Since 2016 (as Chair)
 
Since 2007 (as Independent Director) 		Managing Attorney, Klapper Law Firm; Member/Director, The Colorado Forum; Manager, 6K Ranch, LLC 66 N/A
Stephen G. McConahey
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
76 		Independent Director
& Audit Committee
Chair 		Since 2011 (as
Independent Director)
 
Since 2015 (as
Audit Committee Chair) 		Chairman, SGM Capital, LLC; Partner, Iron Gate Capital, LLC; Director, The IMA Financial Group, Inc. 66 N/A
Steven A. Lake
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
65 		Independent Director Since 2017 Managing Member, Lake Advisors, LLC; Member, Gart Capital Partners, LLC; Executive Member, Sage Enterprise Holdings, LLC 66 N/A
R. Timothy Hudner****
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
60 		Independent Director Since 2017 Director, Prima Capital Holdings; ALPS Fund Services; Colorado State Housing Board; Regional Center Task Force; Grand Junction Housing Authority and Counseling and Education Center 66 N/A

 

Independent Directors*
Name, Address,
and Age 		Positions(s)
Held with
Great-West
Funds 		Term of Office
and Length of
Time Served*** 		Principal Occupation(s)
During Past 5 Years 		Number of
Funds in Fund
Complex
Overseen by
Director 		Other
Directorships
Held by Director
James A. Hillary*****
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
56 		Independent Director Since 2017 Principal and Founding Partner, Fios Capital, LLC; Founder, Chairman and Chief Executive Officer, Independence Capital Asset Partners, LLC (“ICAP”); Member, Fios Partners LLC, Fios Holdings LLC; Sole Member, Fios Companies LLC, Resolute Capital Asset Partners; Manager, Applejack Holdings, LLC; and Manager and Member, Prestige Land Holdings, LLC 66 N/A
Interested Directors**
Name, Address,
and Age 		Positions(s) Held
with Great-West
Funds 		Term of Office
and Length of
Time Served*** 		Principal Occupation(s)
During Past 5 Years 		Number of Funds
in Fund Complex
Overseen by
Director 		Other Directorships
Held by Director
Jonathan D. Kreider
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
36 		Director, President &
Chief Executive Officer 		Since 2020 Senior Vice President, Head of Great-West Investments, GWL&A; Chairman, President & Chief Executive Officer, Great-West Capital Management, LLC (“GWCM”) and Advised Assets Group, LLC (“AAG”); formerly, Vice President, Great-West Funds Investment Products 66 N/A
Officers
Name, Address,
and Age 		Positions(s)
Held with
Great-West Funds 		Term of Office
and Length of
Time Served 		Principal Occupation(s)
During Past 5 Years 		Number of
Fund in Fund
Complex
Overseen by
Director 		Other
Directorships
Held by Director
Jonathan D. Kreider
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
36 		Director, President &
Chief Executive Officer 		Since 2020 Senior Vice President, Head of Great-West Investments, GWL&A; Chairman, President & Chief Executive Officer, GWCM and AAG; formerly, Vice President, Great-West Funds Investment Products 66 N/A
Katherine Stoner
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
63 		Chief Compliance Officer Since 2016 Chief Compliance Officer, AAG and GWCM; formerly, Vice President & Chief Compliance Officer, Mutual Funds, AIG, Consumer Insurance N/A N/A

 

Officers
Name, Address,
and Age 		Positions(s)
Held with
Great-West Funds 		Term of Office
and Length of
Time Served 		Principal Occupation(s)
During Past 5 Years 		Number of
Fund in Fund
Complex
Overseen by
Director 		Other
Directorships
Held by Director
Ryan L. Logsdon
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
45 		Vice President,
Counsel & Secretary 		Since 2010
(as Counsel &
Secretary)
 
Since 2016
(as Vice President) 		Associate General Counsel, Products & Corporate, GWL&A;Associate General Counsel & Associate Secretary, GWL&A and Great-West Life & Annuity Insurance Company of New York ("GWL&A of NY"); Vice President, Counsel & Secretary, AAG, GWCM, and GWFS; formerly, Assistant Vice President, GWCM N/A N/A
Mary C. Maiers
 
8515 East Orchard Road,
Greenwood Village, CO
80111
 
52 		Chief Financial
Officer &
Treasurer 		Since 2008
(as Treasurer)
 
Since 2011
(as Chief
Financial Officer) 		Vice President Investment Accounting and Global Middle Office, GWL&A; Vice President and Treasurer, Great-West Trust Company, LLC ("GWTC"); Chief Financial Officer & Treasurer, GWCM N/A N/A
Adam J. Kavan
 
8515 East Orchard Road,
Greenwood Village,
CO 80111
 
33 		Senior Counsel &
Assistant
Secretary 		Since 2019 Senior Counsel, Corporate & Investments, GWL&A; Senior Counsel & Assistant Secretary, GWCM, GWTC, and AAG N/A N/A
John A. Clouthier
 
8515 East Orchard Road,
Greenwood Village,
CO 80111
 
52 		Assistant
Treasurer 		Since 2007 Director, Investment Operations, GWL&A; Assistant Treasurer, GWCM and GWTC N/A N/A
Kelly B. New
 
8515 East Orchard Road,
Greenwood Village,
CO 80111
 
44 		Assistant
Treasurer 		Since 2016 Assistant Vice President, Fund Administration, GWL&A; Assistant Treasurer, GWCM and GWTC N/A N/A
*A Director who is not an “interested person” of Great-West Funds (as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) is referred to as an “Independent Director.”
**An “Interested Director” refers to a Director who is an “interested person” of Great-West Funds (as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) by virtue of their affiliation with Great-West Capital Management, LLC.

 

*** Each director serves until the next shareholders’ meeting (and until the election and qualification of a successor), or until death, resignation, removal or retirement which takes effect no later than May 1 following his or her 75th birthday unless otherwise determined by the remaining directors. The remaining Independent Directors determined that Ms. Klapper and Mr. McConahey should continue on the Board until at least May 1, 2020. Officers are elected by the Board on an annual basis to serve until their successors have been elected and qualified.
**** Mr. Hudner’s daughter is employed by JP Morgan Chase, N.A., an affiliate of J.P. Morgan Investment Management Inc., a Sub-Adviser of the Great-West International Growth and Great-West Large Cap Growth Funds. Mr. Hudner has personal investments in the following: (i) a mutual fund advised by Massachusetts Financial Services Company, a Sub-Adviser of the Great-West International Value Fund, (ii) a mutual fund advised by Virtus Investment Advisers, Inc., an affiliate of Newfleet Asset Management, LLC, the Sub-Adviser of the Great-West Multi-Sector Bond Fund, and (iii) a mutual fund advised by J.P. Morgan Investment Management Inc., a Sub-Adviser of the Great-West International Growth and Great-West Large Cap Growth Funds. Mr. Hudner receives no special treatment due to his ownership of such mutual funds.
*****Mr. Hillary is the Founder, Chairman and Chief Executive Officer of ICAP and sole member of Resolute Capital Asset Partners, LLC. Goldman Sachs & Co. has a prime brokerage and institutional trading relationship with ICAP and is the clearing agent for Resolute Capital Asset Partners Fund I L.P., the general partner of Resolute Capital Asset Partners, LLC. Goldman Sachs & Co. is the parent company of Goldman Sachs Asset Management, LP, the Sub-Adviser of the Great-West Mid Cap Value and Great-West Inflation-Protected Securities Funds. ICAP was previously a sub-adviser, and Mr. Hillary was a portfolio manager to the Franklin K2 Alternative Strategies Fund and the FTIF Franklin K2 Alternative Strategies Fund, which are funds offered by an affiliate of both Franklin Advisers, Inc., a Sub-Adviser of the Great-West Global Bond Fund, and Franklin Templeton Institutional, LLC, a Sub-Adviser of the Great-West International Growth Fund. Mr. Hillary has personal banking accounts with an affiliate of J.P. Morgan Investment Management Inc., a Sub-Adviser of the Great-West International Growth and Great-West Large Cap Growth Funds. Mr. Hillary receives no special treatment due to the relationship.
There are no arrangements or understandings between any Director or Officer and any person(s) pursuant to which s/he was elected as Director or Officer.
Additional information about Great-West Funds and its Directors is available in the Great-West Funds’ Statement of Additional Information (“SAI”), which can be obtained free of charge upon request to: Secretary, Great-West Funds, Inc., 8525 East Orchard Road, Greenwood Village, Colorado 80111; (866) 831-7129. The SAI is also available on the Fund’s web site at http://www.greatwestfunds.com.
Availability of Quarterly Portfolio Schedule
Great-West Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-PORT. Previously, Great-West Funds filed a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Great-West Funds' Forms N-PORT and N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that Great-West Funds uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-831-7129, and on the Securities and Exchange Commission’s website at http://www.sec.gov.
Availability of Proxy Voting Record
Information regarding how Great-West Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-866-831-7129, and on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

ITEM 2. CODE OF ETHICS.
(a)   As of the end of the period covered by this report, the registrant has adopted a Code of Ethics (the “Code of Ethics”) that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
(b)   For purposes of this Item, "code of ethics" means written standards that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and regulations;
(4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c)   During the period covered by this report, there have been no amendments to the registrant’s Code of Ethics.
(d)   During the period covered by this report, the registrant has not granted any express or implicit waivers from the provisions of the Code of Ethics.
(e)  Registrant’s Code of Ethics is attached hereto.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Mr. Stephen A. Lake is the audit committee financial expert and is "independent," pursuant to general instructions on Form N-CSR, Item 3.
An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the Audit Committee or Board of Directors.
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 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: $1,059,880 for fiscal year 2018 and $1,122,930 for fiscal year 2019.

 

(b)   Audit-Related Fees. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant 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 were: $60,000 for fiscal year 2018 and $60,000 for fiscal year 2019. The nature of the services comprising the fees disclosed under this category involved performance of 17f-2 (self-custody) audits and administrative services related to the audit.
(c)   Tax Fees. The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were: $0 for fiscal year 2018 and $0 for fiscal year 2019.
(d)   All Other Fees. There were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs ((a) through (c) of this Item).
(e)  (1) Audit Committee’s Pre-Approval Policies and Procedures.
Pre-Approval of Audit Services. The Audit Committee must approve prior to retention all audit, review or attest engagements required under the securities laws that are provided to Great-West Funds by its independent auditors. The Audit Committee will not grant such approval to any auditors that are proposed to perform an audit for Great-West Funds if a chief executive officer, controller, chief financial officer, chief accounting officer or any person serving in an equivalent position for Great-West Funds that is responsible for the financial reporting or operations of Great-West Funds was employed by those auditors and participated in any capacity in an audit of Great-West Funds during the year period (or such other period proscribed under SEC rules) preceding the date of initiation of such audit.
Pre-Approval of Non-Audit Services. The Audit Committee must pre-approve any non-audit services, including tax services, to be provided to Great-West Funds by its independent auditors (except those within applicable de minimis statutory or regulatory exceptions)1 provided that Great-West Funds’ auditors will not provide the following non-audit services to Great-West Funds: (a) bookkeeping or other services related to the accounting records or financial statements of Great-West Funds; (b) financial information systems design and implementation; (c) appraisal or valuation services, fairness opinions, or contribution-in-kind reports; (d) actuarial services; (e) internal audit outsourcing services; (f) management functions or human resources; (g) broker-dealer, investment adviser, or investment banking services; (h) legal services; (i) expert services unrelated to the audit; and (j) any other service
1No pre-approval is required as to non-audit services provided to Great-West Funds if: (a) the aggregate amount of all non-audit services provided to Great-West Funds constitute not more than 5% of the total amount of revenues paid by Great-West Funds to the independent auditors during the fiscal year in which the services are provided; (b) these services were not recognized by Great-West Funds at the time of the engagement to be non-audit services; and (c) the services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee prior to the completion of the audit.

 

that the Public Company Accounting Oversight Board determines, by regulation, is impermissible. 2
Pre-approval with respect to Non-Great-West Funds Entities. The Audit Committee must pre-approve any non-audit services that relate directly to the operations and financial reporting of Great-West Funds (except those within applicable de minimis statutory or regulatory exceptions)3 to be provided by Great-West Funds’ auditors to (a) Great-West Funds’ investment adviser; and (b) any entity controlling, controlled by, or under common control with the investment adviser if that entity provides ongoing services to Great-West Funds.4 The Audit Committee may approve audit and non-audit services on a case-by-case basis or adopt pre-approval policies and procedures that are detailed as to a particular service, provided that the Audit Committee is informed promptly of each service, or use a combination of these approaches.
Delegation. The Audit Committee may delegate pre-approval authority to one or more of the Audit Committee's members. Any member or members to whom such pre-approval authority is delegated must report any pre-approval decisions to the Audit Committee at its next scheduled meeting.
(f)    (2) 100% of the services described pursuant to paragraphs (b) through (d) of this Item 4 of Form N-CSR were approved by the Audit Committee, and no such services were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(g)   Not Applicable.
(h)   The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for fiscal year 2018 equaled $1,167,000 and for fiscal year 2019 equaled $1,556,795.
2With respect to the prohibitions on (a) bookkeeping; (b) financial information systems design and implementation; (c) appraisal, valuation, fairness opinions, or contribution-in-kind reports; (d) actuarial; and (e) internal audit outsourcing, such services are permitted to be provided if it is reasonable to conclude that the results of these services will not be subject to audit procedures during an audit of the audit client's financial statements.
3For non-audit services provided to the adviser and entities in a control relationship with the adviser, no pre-approval is required if: (a) the aggregate amount of all non-audit services provided constitute not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the services are provided to Great-West Funds, Great-West Funds’ investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser if that entity provides ongoing services to Great-West Funds; (b) these services were not recognized by Great-West Funds at the time of the engagement to be non-audit services; and (c) the services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee prior to the completion of the audit.
4No pre-approval is required by the Audit Committee as to non-audit services provided to any Great-West Funds sub-adviser that primarily provides portfolio management services and is under the direction of another investment adviser and is not affiliated with Great-West Funds’ primary investment adviser.

 

(i)   The registrant’s Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any subadviser 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 investment 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. INVESTMENTS.
(a)  The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
(b)  Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors that were implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a)   The registrant's principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-CSR is recorded, processed, summarized and reported, within the time periods specified in the commission's rules and forms and that such material information is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.

 

(b)   The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)  (1) Code of Ethics required by Item 2 of Form N-CSR is filed herewith.
(2) A separate certification for each principal executive and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 is attached hereto.
(3) Not applicable.
(4) Not applicable.
A separate certification for each principal executive and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940 is 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.
GREAT-WEST FUNDS, INC.
By: /s/ Jonathan D. Kreider
Jonathan D. Kreider
President & Chief Executive Officer
Date:February 21, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ Jonathan D. Kreider
Jonathan D. Kreider
President & Chief Executive Officer
Date:February 21, 2020
By: /s/ Mary C. Maiers
Mary C. Maiers
Chief Financial Officer & Treasurer
Date:February 21, 2020