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)

M.T.G. Graye

President and Chief Executive Officer

Great-West Life & Annuity Insurance Company

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: June 28, 2013

ITEM 1. REPORTS TO STOCKHOLDERS

GREAT-WEST FUNDS, INC.

Great-West Profile I Funds (Initial Class)

Semi-Annual Report

June 28, 2013

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 Funds. Such offering is made only by the prospectus of the Funds, which includes details as to offering price and other information.

Great-West Conservative Profile I Fund

Summary of Investments by Asset Class as of June 28, 2013

 

Asset Class    Percentage of Fund Investments

Bond

   47.36%

International Equity

   6.55%

Large Cap Equity

   11.08%

Mid Cap Equity

   5.31%

Real Estate Equity

   5.13%

Small Cap Equity

   2.27%

Fixed Interest Contract

   22.30%

Total

   100.00%

Shareholder Expense Example

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 (January 1, 2013 to June 28, 2013).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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 line 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 line 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
(1/1/2013) 		   Ending
Account Value
(6/28/2013) 		   Expenses Paid
During Period*
(1/1/13 – 6/28/13)

Actual

   $1,000.00    $1,024.50    $5.06

Hypothetical

        

(5% return before expenses)

   $1,000.00    $1,019.52    $5.05

* Expenses are equal to the Fund’s annualized expense ratio of 1.01% for the Initial Class shares, multiplied by the average account value over the period, multiplied by 179/365 days to reflect the investment period. The Fund’s annualized expense ratio includes expenses borne directly by the class plus the Fund’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests, 0.76%.

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 Moderately Conservative Profile I Fund

Summary of Investments by Asset Class as of June 28, 2013

 

Asset Class    Percentage of Fund Investments

Bond

   33.01%

International Equity

   10.55%

Large Cap Equity

   17.82%

Mid Cap Equity

   8.51%

Real Estate Equity

   4.51%

Small Cap Equity

   3.66%

Fixed Interest Contract

   21.94%

Total

   100.00%

Shareholder Expense Example

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 (January 1, 2013 to June 28, 2013).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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 line 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 line 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
(1/1/2013) 		   Ending
Account Value
(6/28/2013) 		   Expenses Paid
During Period*
(1/1/13 – 6/28/13)

Actual

   $1,000.00    $1,042.80    $5.31

Hypothetical

        

(5% return before expenses)

   $1,000.00    $1,019.32    $5.25

*Expenses are equal to the Fund’s annualized expense ratio of 1.06% for the Initial Class shares, multiplied by the average account value over the period, multiplied by 179/365 days to reflect the investment period. The Fund’s annualized expense ratio includes expenses borne directly by the class plus the Fund’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests, 0.81%.

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 Moderate Profile I Fund

Summary of Investments by Asset Class as of June 28, 2013

 

Asset Class    Percentage of Fund Investments

Bond

   23.86%

International Equity

   14.63%

Large Cap Equity

   24.71%

Mid Cap Equity

   11.87%

Real Estate Equity

   4.08%

Small Cap Equity

   5.07%

Fixed Interest Contract

   15.78%

Total

   100.00%

Shareholder Expense Example

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 (January 1, 2013 to June 28, 2013).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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 line 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 line 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
(1/1/2013) 		   Ending
Account Value
(6/28/2013) 		   Expenses Paid
During Period*
(1/1/13 – 6/28/13)

Actual

   $1,000.00    $1,060.90    $5.67

Hypothetical

        

(5% return before expenses)

   $1,000.00    $1,019.02    $5.55

*Expenses are equal to the Fund’s annualized expense ratio of 1.13% for the Initial Class shares, multiplied by the average account value over the period, multiplied by 179/365 days to reflect the investment period. The Fund’s annualized expense ratio includes expenses borne directly by the class plus the Fund’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests, 0.88%.

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 Moderately Aggressive Profile I Fund

Summary of Investments by Asset Class as of June 28, 2013

 

Asset Class    Percentage of Fund Investments

Bond

   17.87%

International Equity

   18.09%

Large Cap Equity

   30.58%

Mid Cap Equity

   14.70%

Real Estate Equity

   3.58%

Small Cap Equity

   6.30%

Fixed Interest Contract

   8.88%

Total

   100.00%

Shareholder Expense Example

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 (January 1, 2013 to June 28, 2013).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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 line 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 line 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
(1/1/2013) 		   Ending
Account Value
(6/28/2013) 		   Expenses Paid
During Period*
(1/1/13 – 6/28/13)

Actual

   $1,000.00    $1,078.90    $6.24

Hypothetical

        

(5% return before expenses)

   $1,000.00    $1,018.52    $6.06

*Expenses are equal to the Fund’s annualized expense ratio of 1.22% for the Initial Class shares, multiplied by the average account value over the period, multiplied by 179/365 days to reflect the investment period. The Fund’s annualized expense ratio includes expenses borne directly by the class plus the Fund’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests, 0.97%.

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 Aggressive Profile I Fund

Summary of Investments by Asset Class as of June 28, 2013

 

Asset Class    Percentage of Fund Investments

International Equity

   25.20%

Large Cap Equity

   42.60%

Mid Cap Equity

   20.42%

Real Estate Equity

   3.04%

Small Cap Equity

   8.74%

Total

   100.00%

Shareholder Expense Example

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 (January 1, 2013 to June 28, 2013).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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 line 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 line 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
(1/1/2013) 		   Ending
Account Value
(6/28/2013) 		   Expenses Paid
During Period*
(1/1/13 – 6/28/13)

Actual

   $1,000.00    $1,115.80    $6.98

Hypothetical

        

(5% return before expenses)

   $1,000.00    $1,017.92    $6.66

*Expenses are equal to the Fund’s annualized expense ratio of 1.35% for the Initial Class shares, multiplied by the average account value over the period, multiplied by 179/365 days to reflect the investment period. The Fund’s annualized expense ratio includes expenses borne directly by the class plus the Fund’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests, 1.10%.

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 CONSERVATIVE PROFILE I FUND

Schedule of Investments

As of June 28, 2013 (Unaudited)

 

Shares              Value  
     

 

BOND MUTUAL FUNDS

   
          323,833      

Great-West Federated Bond Fund Initial Class (a)

  $     3,377,583   
  169,258      

Great-West Loomis Sayles Bond Fund Initial Class (a)

      2,266,365   
  215,816      

Great-West Putnam High Yield Bond Fund Initial Class (a)

      1,784,795   
  234,917      

Great-West Short Duration Bond Fund Initial Class (a)

      2,436,089   
  434,347      

Great-West Templeton Global Bond Fund Initial Class (a)

      4,117,609   
  328,628      

Great-West U.S. Government Mortgage Securities Fund Initial Class (a)

      3,917,244   
      

 

 

 

 

TOTAL BOND MUTUAL FUNDS — 47.37%

 

 

(Cost $18,238,322)

  $     17,899,685   
      

 

 

 

 

EQUITY MUTUAL FUNDS

   
  58,530      

Great-West American Century Growth Fund Initial Class (a)

      690,071   
  129,222      

Great-West Goldman Sachs Mid Cap Value Fund Initial Class (a)

      1,608,813   
  23,843      

Great-West Invesco Small Cap Value Fund Initial Class (a)

      285,637   
  74,344      

Great-West Janus Large Cap Growth Fund Initial Class (a)

      693,631   
  11,180      

Great-West Loomis Sayles Small Cap Value Fund Initial Class (a)

      286,313   
  71,397      

Great-West MFS International Growth Fund Initial Class (a)

      813,212   
Shares              Value  
     

 

Equity Mutual Funds — (continued)

   
  166,546      

Great-West MFS International Value Fund Initial Class (a)

  $     1,662,125   
  108,123      

Great-West Putnam Equity Income Fund Initial Class (a)

      1,403,442   
  178,052      

Great-West Real Estate Index Fund Initial Class (a)

      1,938,983   
  12,118      

Great-West Small Cap Growth Fund Initial Class (a)

      285,736   
  75,697      

Great-West T. Rowe Price Equity Income Fund Initial Class (a)

      1,401,917   
  19,838      

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class (a)

      399,738   
      

 

 

 

 

TOTAL EQUITY MUTUAL FUNDS — 30.35%

 

 

(Cost $10,421,731)

  $     11,469,618   
      

 

 

 
Account Balance          
     

 

FIXED INTEREST CONTRACT

   
  8,426,449 (b)     

Great-West Life & Annuity Contract (a)
1.50% (c)

      8,426,449   
      

 

 

 

 

TOTAL FIXED INTEREST CONTRACT — 22.30%

 

 

(Cost $8,426,449)

  $     8,426,449   
      

 

 

 

 

TOTAL INVESTMENTS — 100.02%

   

 

(Cost $37,086,502)

  $     37,795,752   
      

 

 

 

 

OTHER ASSETS & LIABILITIES, NET — (0.02)%

  $     (7,201)   
      

 

 

 

 

TOTAL NET ASSETS — 100.00%

  $     37,788,551   
      

 

 

 

 

 

 

(a)  

Issuer is considered an affiliate of the Fund.

(b)  

Account Balance and Cost represent net deposits and approximates fair value.

(c)  

Adjustable rate security; interest rate is subject to change. Interest rate shown reflects the rate in effect at June 28, 2013.

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

GREAT-WEST MODERATELY CONSERVATIVE PROFILE I FUND

Schedule of Investments

As of June 28, 2013 (Unaudited)

 

Shares               Value  
     

 

BOND MUTUAL FUNDS

    
          410,021      

Great-West Federated Bond Fund Initial Class (a)

   $     4,276,522   
  209,005      

Great-West Loomis Sayles Bond Fund Initial Class (a)

       2,798,575   
  270,750      

Great-West Putnam High Yield Bond Fund Initial Class (a)

       2,239,106   
  546,436      

Great-West Templeton Global Bond Fund Initial Class (a)

       5,180,212   
  385,325      

Great-West U.S. Government Mortgage Securities Fund Initial Class (a)

       4,593,071   
       

 

 

 

 

TOTAL BOND MUTUAL FUNDS — 33.02%

 

 

(Cost $19,559,446)

   $     19,087,486   
       

 

 

 

 

EQUITY MUTUAL FUNDS

    
  144,057      

Great-West American Century Growth Fund Initial Class (a)

       1,698,431   
  316,348      

Great-West Goldman Sachs Mid Cap Value Fund Initial Class (a)

       3,938,531   
  58,908      

Great-West Invesco Small Cap Value Fund Initial Class (a)

       705,713   
  182,528      

Great-West Janus Large Cap Growth Fund Initial Class (a)

       1,702,986   
  27,555      

Great-West Loomis Sayles Small Cap Value Fund Initial Class (a)

       705,681   
  175,854      

Great-West MFS International Growth Fund Initial Class (a)

       2,002,979   
Shares               Value  
     

 

Equity Mutual Funds — (continued)

    
  410,470      

Great-West MFS International Value Fund Initial Class (a)

   $     4,096,490   
  265,845      

Great-West Putnam Equity Income Fund Initial Class (a)

       3,450,673   
  239,490      

Great-West Real Estate Index Fund Initial Class (a)

       2,608,049   
  29,904      

Great-West Small Cap Growth Fund Initial Class (a)

       705,144   
  186,202      

Great-West T. Rowe Price Equity Income Fund Initial Class (a)

       3,448,455   
  48,770      

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class (a)

       982,706   
       

 

 

 

 

TOTAL EQUITY MUTUAL FUNDS — 45.06%

    

 

(Cost $22,591,607)

   $     26,045,838   
       

 

 

 
Account Balance           
     

 

FIXED INTEREST CONTRACT

    
  12,683,495 (b)     

Great-West Life & Annuity Contract (a) 1.50% (c)

       12,683,495   
       

 

 

 

 

TOTAL FIXED INTEREST CONTRACT — 21.94%

    

 

(Cost $12,683,495)

   $     12,683,495   
       

 

 

 

 

TOTAL INVESTMENTS — 100.02%

    

 

(Cost $54,834,548)

   $     57,816,819   
       

 

 

 

 

OTHER ASSETS & LIABILITIES, NET — (0.02)%

   $     (11,160 ) 
       

 

 

 

 

TOTAL NET ASSETS — 100.00%

   $     57,805,659   
       

 

 

 
 

 

(a)  

Issuer is considered an affiliate of the Fund.

(b)  

Account Balance and Cost represent net deposits and approximates fair value.

(c)  

Adjustable rate security; interest rate is subject to change. Interest rate shown reflects the rate in effect at June 28, 2013.

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

GREAT-WEST MODERATE PROFILE I FUND

Schedule of Investments

As of June 28, 2013 (Unaudited)

 

Shares               Value  
     

 

BOND MUTUAL FUNDS

    
  803,677      

Great-West Federated Bond Fund Initial Class (a)

   $     8,382,359   
  399,406      

Great-West Loomis Sayles Bond Fund Initial Class (a)

       5,348,051   
  477,649      

Great-West Putnam High Yield Bond Fund Initial Class (a)

       3,950,157   
      1,075,293      

Great-West Templeton Global Bond Fund Initial Class (a)

       10,193,776   
  723,094      

Great-West U.S. Government Mortgage Securities Fund Initial Class (a)

       8,619,278   
       

 

 

 

 

TOTAL BOND MUTUAL FUNDS — 23.86%

 

 

(Cost $37,288,535)

   $     36,493,621   
       

 

 

 

 

EQUITY MUTUAL FUNDS

    
  528,297      

Great-West American Century Growth Fund Initial Class (a)

       6,228,620   
  1,168,269      

Great-West Goldman Sachs Mid Cap Value Fund Initial Class (a)

       14,544,951   
  215,870      

Great-West Invesco Small Cap Value Fund Initial Class (a)

       2,586,121   
  670,894      

Great-West Janus Large Cap Growth Fund Initial Class (a)

       6,259,439   
  101,021      

Great-West Loomis Sayles Small Cap Value Fund Initial Class (a)

       2,587,151   
  646,547      

Great-West MFS International Growth Fund Initial Class (a)

       7,364,175   
Shares               Value  
     

 

Equity Mutual Funds — (continued)

    
  1,504,142      

Great-West MFS International Value Fund Initial Class (a)

   $     15,011,336   
  976,042      

Great-West Putnam Equity Income Fund Initial Class (a)

       12,669,026   
  572,895      

Great-West Real Estate Index Fund Initial Class (a)

       6,238,824   
  109,763      

Great-West Small Cap Growth Fund Initial Class (a)

       2,588,221   
  682,795      

Great-West T. Rowe Price Equity Income Fund Initial Class (a)

       12,645,364   
  179,130      

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class (a)

       3,609,460   
       

 

 

 

 

TOTAL EQUITY MUTUAL FUNDS — 60.38%

  

 

(Cost $77,724,043)

   $     92,332,688   
       

 

 

 
Account Balance           
     

 

FIXED INTEREST CONTRACT

    
  24,130,284 (b)     

Great-West Life & Annuity Contract (a) 1.50% (c)

       24,130,284   
       

 

 

 

 
 

TOTAL FIXED INTEREST
CONTRACT — 15.78%

    

 

(Cost $24,130,284)

   $     24,130,284   
       

 

 

 

 

TOTAL INVESTMENTS — 100.02%

    

 

(Cost $139,142,862)

   $     152,956,593   
       

 

 

 

 

OTHER ASSETS & LIABILITIES, NET — (0.02)%

   $     (29,747 ) 
       

 

 

 

 

TOTAL NET ASSETS — 100.00%

   $     152,926,846   
       

 

 

 
 

 

(a)  

Issuer is considered an affiliate of the Fund.

(b)  

Account Balance and Cost represent net deposits and approximates fair value.

(c)  

Adjustable rate security; interest rate is subject to change. Interest rate shown reflects the rate in effect at June 28, 2013.

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

GREAT-WEST MODERATELY AGGRESSIVE PROFILE I FUND

Schedule of Investments

As of June 28, 2013 (Unaudited)

 

Shares               Value  
     

 

BOND MUTUAL FUNDS

    
  559,181      

Great-West Federated Bond Fund Initial Class (a)

   $     5,832,260   
  283,036      

Great-West Loomis Sayles Bond Fund Initial Class (a)

       3,789,846   
  381,903      

Great-West Putnam High Yield Bond Fund Initial Class (a)

       3,158,338   
  746,232      

Great-West Templeton Global Bond Fund Initial Class (a)

       7,074,283   
  503,450      

Great-West U.S. Government Mortgage Securities Fund Initial Class (a)

       6,001,120   
       

 

 

 

 

TOTAL BOND MUTUAL FUNDS — 17.87%

 

 

(Cost $26,356,519)

   $     25,855,847   
       

 

 

 

 

EQUITY MUTUAL FUNDS

    
  618,524      

Great-West American Century Growth Fund Initial Class (a)

       7,292,395   
      1,368,786      

Great-West Goldman Sachs Mid Cap Value Fund Initial Class (a)

       17,041,384   
  253,577      

Great-West Invesco Small Cap Value Fund Initial Class (a)

       3,037,851   
  784,913      

Great-West Janus Large Cap Growth Fund Initial Class (a)

       7,323,243   
  118,703      

Great-West Loomis Sayles Small Cap Value Fund Initial Class (a)

       3,039,980   
  757,045      

Great-West MFS International Growth Fund Initial Class (a)

       8,622,744   
Shares               Value  
     

 

Equity Mutual Funds — (continued)

    
  1,758,236      

Great-West MFS International Value Fund Initial Class (a)

   $     17,547,199   
  1,142,583      

Great-West Putnam Equity Income Fund Initial Class (a)

       14,830,725   
  475,274      

Great-West Real Estate Index Fund Initial Class (a)

       5,175,738   
  129,012      

Great-West Small Cap Growth Fund Initial Class (a)

       3,042,109   
  799,540      

Great-West T. Rowe Price Equity Income Fund Initial Class (a)

       14,807,479   
  210,013      

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class (a)

       4,231,759   
       

 

 

 

 

TOTAL EQUITY MUTUAL FUNDS — 73.27%

  

 

(Cost $88,055,967)

   $     105,992,606   
       

 

 

 
Account Balance           
     

 

FIXED INTEREST CONTRACT

    
  12,847,277 (b)     

Great-West Life & Annuity Contract (a)
1.50% (c)

       12,847,277   
       

 

 

 

 

TOTAL FIXED INTEREST CONTRACT — 8.88%

  

 

(Cost $12,847,277)

   $     12,847,277   
       

 

 

 

 

TOTAL INVESTMENTS — 100.02%

  

 

(Cost $127,259,763)

   $     144,695,730   
       

 

 

 

 

OTHER ASSETS & LIABILITIES, NET — (0.02)%

   $     (27,986 ) 
       

 

 

 

 

TOTAL NET ASSETS — 100.00%

   $     144,667,744   
       

 

 

 
 

 

(a)  

Issuer is considered an affiliate of the Fund.

(b)  

Account Balance and Cost represent net deposits and approximates fair value.

(c)  

Adjustable rate security; interest rate is subject to change. Interest rate shown reflects the rate in effect at June 28, 2013.

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

GREAT-WEST AGGRESSIVE PROFILE I FUND

Schedule of Investments

As of June 28, 2013 (Unaudited)

 

Shares                  Value  
     

 

EQUITY MUTUAL FUNDS

     
  439,506      

Great-West American Century Growth Fund Initial Class (a)

   $           5,181,772   
  969,556      

Great-West Goldman Sachs Mid Cap Value Fund Initial Class (a)

        12,070,975   
  179,260      

Great-West Invesco Small Cap Value Fund Initial Class (a)

        2,147,531   
  556,602      

Great-West Janus Large Cap Growth Fund Initial Class (a)

        5,193,092   
  84,000      

Great-West Loomis Sayles Small Cap Value Fund Initial Class (a)

        2,151,247   
  538,153      

Great-West MFS International Growth Fund Initial Class (a)

        6,129,560   
      1,249,444      

Great-West MFS International Value Fund Initial Class (a)

        12,469,452   
  812,033      

Great-West Putnam Equity Income Fund Initial Class (a)

        10,540,183   
Shares                  Value  
     

 

Equity Mutual Funds — (continued)

     
  205,844      

Great-West Real Estate Index Fund Initial Class (a)

   $           2,241,644   
  91,303      

Great-West Small Cap Growth Fund Initial Class (a)

        2,152,930   
  568,703      

Great-West T. Rowe Price Equity Income Fund Initial Class (a)

        10,532,386   
  148,996      

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class (a)

        3,002,277   
        

 

 

 

 

TOTAL EQUITY MUTUAL FUNDS — 100.02%

  

 

(Cost $63,254,408)

   $           73,813,049   
        

 

 

 

 

TOTAL INVESTMENTS — 100.02%

     

 

(Cost $63,254,408)

   $           73,813,049   
        

 

 

 

 
 

OTHER ASSETS & LIABILITIES,
NET — (0.02)%

   $           (14,243)   
        

 

 

 

 

TOTAL NET ASSETS — 100.00%

   $           73,798,806   
        

 

 

 
 

 

(a)  

Issuer is considered an affiliate of the Fund.

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Assets and Liabilities

As of June 28, 2013 (Unaudited)

 

      Great-West
Conservative Profile
I Fund 		    Great-West
Moderately
Conservative Profile
I Fund 		    Great-West
Moderate Profile I
Fund 		 

ASSETS:

      

Investments at fair value, affiliated (a)

     $37,795,752        $57,816,819        $152,956,593   

Subscriptions receivable

     43,805        72,224        189,742   
  

 

 

   

 

 

   

 

 

 

Total Assets

     37,839,557        57,889,043        153,146,335   
  

 

 

   

 

 

   

 

 

 

LIABILITIES:

      

Payable to investment adviser

     7,201        11,160        29,747   

Redemptions payable

     29,333        2,480        23,341   

Payable for investments purchased

     14,472        69,744        166,401   
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     51,006        83,384        219,489   
  

 

 

   

 

 

   

 

 

 

NET ASSETS

     $37,788,551        $57,805,659        $152,926,846   
  

 

 

   

 

 

   

 

 

 

NET ASSETS REPRESENTED BY:

      

Capital stock, $0.10 par value

     $445,717        $653,054        $1,674,290   

Paid-in capital in excess of par

     42,365,964        65,064,549        187,448,764   

Net unrealized appreciation on investments

     709,250        2,982,271        13,813,731   

Undistributed net investment income

     222,914        289,634        943,362   

Accumulated net realized loss on investments

     (5,955,294 )      (11,183,849 )      (50,953,301 ) 
  

 

 

   

 

 

   

 

 

 

TOTAL NET ASSETS

     $37,788,551        $57,805,659        $152,926,846   
  

 

 

   

 

 

   

 

 

 

CAPITAL STOCK:

      

Authorized

     100,000,000        100,000,000        100,000,000   

Issued and Outstanding

     4,457,170        6,530,539        16,742,898   

NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE:

     $8.48        $8.85        $9.13   
  

 

 

   

 

 

   

 

 

 

(a) Cost of investments, affiliated

     $37,086,502        $54,834,548        $139,142,862   

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Assets and Liabilities

As of June 28, 2013 (Unaudited)

 

      Great-West
Moderately
Aggressive Profile I
Fund 		    Great-West
Aggressive Profile I
Fund 		 

ASSETS:

    

Investments at fair value, affiliated (a)

     $144,695,730        $73,813,049   

Subscriptions receivable

     295,069        105,580   
  

 

 

   

 

 

 

Total Assets

     144,990,799        73,918,629   
  

 

 

   

 

 

 

LIABILITIES:

    

Payable to investment adviser

     27,987        14,243   

Redemptions payable

     70,230        1,304   

Payable for investments purchased

     224,838        104,276   
  

 

 

   

 

 

 

Total Liabilities

     323,055        119,823   
  

 

 

   

 

 

 

NET ASSETS

     $144,667,744        $73,798,806   
  

 

 

   

 

 

 

NET ASSETS REPRESENTED BY:

    

Capital stock, $0.10 par value

     $1,491,989        $709,776   

Paid-in capital in excess of par

     183,261,627        90,025,578   

Net unrealized appreciation on investments

     17,435,967        10,558,641   

Undistributed/(Overdistributed) net investment income

     279,050        (3,500 ) 

Accumulated net realized loss on investments

     (57,800,889 )      (27,491,689 ) 
  

 

 

   

 

 

 

TOTAL NET ASSETS

     $144,667,744        $73,798,806   
  

 

 

   

 

 

 

CAPITAL STOCK:

    

Authorized

     100,000,000        100,000,000   

Issued and Outstanding

     14,919,887        7,097,757   

NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE:

     $9.70        $10.40   
  

 

 

   

 

 

 

(a) Cost of investments, affiliated

     $127,259,763        $63,254,408   

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Operations

For the period ended June 28, 2013 (Unaudited)

 

     Great-West
Conservative Profile I
Fund 		    Great-West
Moderately
Conservative Profile
I Fund 		    Great-West
Moderate Profile I
Fund 		 

INVESTMENT INCOME:

     

Interest, affiliated

    $60,673        $93,065        $182,097   

Dividends, affiliated

    254,532        324,080        756,464   
 

 

 

   

 

 

   

 

 

 

Total Income

    315,205        417,145        938,561   
 

 

 

   

 

 

   

 

 

 

EXPENSES:

     

Management fees

    44,985        70,527        190,194   
 

 

 

   

 

 

   

 

 

 

Total Expenses

    44,985        70,527        190,194   
 

 

 

   

 

 

   

 

 

 

NET INVESTMENT INCOME

    270,220        346,618        748,367   
 

 

 

   

 

 

   

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

     

Net realized gain on investments, affiliated

    985,877        1,226,699        4,810,151   

Net change in unrealized appreciation (depreciation) on investments

    (446,302 )      742,499        3,449,828   
 

 

 

   

 

 

   

 

 

 

Net Realized and Unrealized Gain on Investments

    539,575        1,969,198        8,259,979   
 

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $809,795        $2,315,816        $9,008,346   
 

 

 

   

 

 

   

 

 

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Operations

For the period ended June 28, 2013 (Unaudited)

 

      Great-West
Moderately
Aggressive Profile I
Fund 		     Great-West
Aggressive Profile I
Fund 		 

INVESTMENT INCOME:

     

Interest, affiliated

     $94,716         $–   

Dividends, affiliated

     666,746         237,677   
  

 

 

    

 

 

 

Total Income

     761,462         237,677   
  

 

 

    

 

 

 

EXPENSES:

     

Management fees

     175,984         88,394   
  

 

 

    

 

 

 

Total Expenses

     175,984         88,394   
  

 

 

    

 

 

 

NET INVESTMENT INCOME

     585,478         149,283   
  

 

 

    

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

     

Net realized gain on investments, affiliated

     6,257,981         4,433,590   

Net change in unrealized appreciation on investments

     3,796,662         3,051,630   
  

 

 

    

 

 

 

Net Realized and Unrealized Gain on Investments

     10,054,643         7,485,220   
  

 

 

    

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

     $10,640,121         $7,634,503   
  

 

 

    

 

 

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Changes in Net Assets

For the period ended June 28, 2013 and fiscal year ended December 31, 2012

 

Great-West Conservative Profile I Fund   

2013
(Unaudited)

 

    

2012

 

 

OPERATIONS:

     

Net investment income

     $270,220         $750,615   

Net realized gain on investments

     985,877         739,483   

Net change in unrealized appreciation (depreciation) on investments

     (446,302)         1,316,242   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Operations

     809,795         2,806,340   
  

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS:

     

From return of capital

     –         (183,095)   

From net investment income

     (280,085)         (667,233)   

From net realized gains

     –         (437,117)   
  

 

 

    

 

 

 

Total Distributions

     (280,085)         (1,287,445)   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS:

     

Shares sold

     5,898,599         10,205,915   

Shares issued in reinvestment of distributions

     280,085         1,287,445   

Shares redeemed

             (3,627,300)                 (10,340,373)   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Capital Share Transactions

     2,551,384         1,152,987   
  

 

 

    

 

 

 

Total Increase in Net Assets

     3,081,094         2,671,882   
  

 

 

    

 

 

 

NET ASSETS:

     

Beginning of period

     34,707,457         32,035,575   
  

 

 

    

 

 

 

End of period (a)

     $37,788,551         $34,707,457   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS - SHARES:

     

Shares sold

     687,479         1,224,870   

Shares issued in reinvestment of distributions

     33,344         155,691   

Shares redeemed

     (422,136)         (1,250,202)   
  

 

 

    

 

 

 

Net Increase

     298,687         130,359   
  

 

 

    

 

 

 

(a)    Including undistributed net investment income:

     $222,914         $232,779   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Changes in Net Assets

For the period ended June 28, 2013 and fiscal year ended December 31, 2012

 

Great-West Moderately Conservative Profile I Fund   

2013
(Unaudited)

 

    

2012

 

 

OPERATIONS:

     

Net investment income

     $346,618         $1,031,401   

Net realized gain on investments

     1,226,699         1,547,346   

Net change in unrealized appreciation on investments

     742,499         2,563,935   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Operations

     2,315,816         5,142,682   
  

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS:

     

From return of capital

     –         (180,649)   

From net investment income

     (359,476)         (935,522)   

From net realized gains

     –         (523,155)   
  

 

 

    

 

 

 

Total Distributions

     (359,476)         (1,639,326)   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS:

     

Shares sold

     7,632,961         14,605,970   

Shares issued in reinvestment of distributions

     359,476         1,639,326   

Shares redeemed

             (6,806,654)                 (13,850,598)   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Capital Share Transactions

     1,185,783         2,394,698   
  

 

 

    

 

 

 

Total Increase in Net Assets

     3,142,123         5,898,054   
  

 

 

    

 

 

 

NET ASSETS:

     

Beginning of period

     54,663,536         48,765,482   
  

 

 

    

 

 

 

End of period (a)

     $57,805,659         $54,663,536   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS - SHARES:

     

Shares sold

     858,950         1,736,871   

Shares issued in reinvestment of distributions

     41,036         194,436   

Shares redeemed

     (765,128)         (1,656,510)   
  

 

 

    

 

 

 

Net Increase

     134,858         274,797   
  

 

 

    

 

 

 

(a)    Including undistributed net investment income:

     $289,634         $302,492   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Changes in Net Assets

For the period ended June 28, 2013 and fiscal year ended December 31, 2012

 

Great-West Moderate Profile I Fund   

2013
(Unaudited)

 

    

2012

 

 

OPERATIONS:

     

Net investment income

     $748,367         $2,433,554   

Net realized gain on investments

     4,810,151         13,368,449   

Net change in unrealized appreciation on investments

     3,449,828         3,469,922   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Operations

     9,008,346         19,271,925   
  

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS:

     

From return of capital

     –         (3,128,685)   

From net investment income

     (770,908)         –   

From net realized gains

     –         (6,916,875)   
  

 

 

    

 

 

 

Total Distributions

     (770,908)         (10,045,560)   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS:

     

Shares sold

     13,205,855         26,133,450   

Shares issued in reinvestment of distributions

     770,908         10,045,560   

Shares redeemed

             (17,492,503)                 (75,462,740)   
  

 

 

    

 

 

 

Net Decrease in Net Assets Resulting from Capital Share Transactions

     (3,515,740)         (39,283,730)   
  

 

 

    

 

 

 

Total Increase (Decrease) in Net Assets

     4,721,698         (30,057,365)   
  

 

 

    

 

 

 

NET ASSETS:

     

Beginning of period

     148,205,148         178,262,513   
  

 

 

    

 

 

 

End of period (a)

     $152,926,846         $148,205,148   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS - SHARES:

     

Shares sold

     1,448,224         2,964,296   

Shares issued in reinvestment of distributions

     85,466         1,168,213   

Shares redeemed

     (1,917,751)         (8,556,483)   
  

 

 

    

 

 

 

Net Decrease

     (384,061)         (4,423,974)   
  

 

 

    

 

 

 

(a)    Including undistibuted net investment income

     $943,362         $965,903   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Changes in Net Assets

For the period ended June 28, 2013 and fiscal year ended December 31, 2012

 

Great-West Moderately Aggressive Profile I Fund   

2013
(Unaudited)

 

    

2012

 

 

OPERATIONS:

     

Net investment income

     $585,478         $1,898,051   

Net realized gain on investments

     6,257,981         10,111,762   

Net change in unrealized appreciation on investments

     3,796,662         4,933,793   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Operations

     10,640,121         16,943,606   
  

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS:

     

From return of capital

     –         (1,398,195)   

From net investment income

     (609,014)         (578,017)   

From net realized gains

     –         (1,420,895)   
  

 

 

    

 

 

 

Total Distributions

     (609,014)         (3,397,107)   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS:

     

Shares sold

     12,884,096         20,123,300   

Shares issued in reinvestment of distributions

     609,014         3,397,107   

Shares redeemed

             (12,797,318)                 (35,938,472)   
  

 

 

    

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions

     695,792         (12,418,065)   
  

 

 

    

 

 

 

Total Increase in Net Assets

     10,726,899         1,128,434   
  

 

 

    

 

 

 

NET ASSETS:

     

Beginning of period

     133,940,845         132,812,411   
  

 

 

    

 

 

 

End of period (a)

     $144,667,744         $133,940,845   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS - SHARES:

     

Shares sold

     1,336,182         2,290,934   

Shares issued in reinvestment of distributions

     63,704         384,561   

Shares redeemed

     (1,327,013)         (4,158,749)   
  

 

 

    

 

 

 

Net Increase (Decrease)

     72,873         (1,483,254)   
  

 

 

    

 

 

 

(a)    Including undistributed net investment income:

     $279,050         $302,586   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Changes in Net Assets

For the period ended June 28, 2013 and fiscal year ended December 31, 2012

 

Great-West Aggressive Profile I Fund   

2013
(Unaudited)

 

    

2012

 

 

OPERATIONS:

     

Net investment income

     $149,283         $538,781   

Net realized gain on investments

     4,433,590         6,498,194   

Net change in unrealized appreciation on investments

     3,051,630         2,944,832   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Operations

     7,634,503         9,981,807   
  

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS:

     

From return of capital

     –         (410,782)   

From net investment income

     (152,783)         (127,987)   

From net realized gains

     –         (410,794)   
  

 

 

    

 

 

 

Total Distributions

     (152,783)         (949,563)   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS:

     

Shares sold

     6,351,456         12,335,051   

Shares issued in reinvestment of distributions

     152,783         949,563   

Shares redeemed

             (6,132,676)                 (21,316,403)   
  

 

 

    

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions

     371,563         (8,031,789)   
  

 

 

    

 

 

 

Total Increase in Net Assets

     7,853,283         1,000,455   
  

 

 

    

 

 

 

NET ASSETS:

     

Beginning of period

     65,945,523         64,945,068   
  

 

 

    

 

 

 

End of period (a)

     $73,798,806         $65,945,523   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS - SHARES:

     

Shares sold

     624,442         1,380,935   

Shares issued in reinvestment of distributions

     14,935         103,869   

Shares redeemed

     (602,861)         (2,406,239)   
  

 

 

    

 

 

 

Net Increase (Decrease)

     36,516         (921,435)   
  

 

 

    

 

 

 

(a)    Including (overdistributed) net investment income:

     $(3,500)         $0   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Cash Flows

As of June 28, 2013 (Unaudited)

 

Great-West Conservative Profile I Fund        

CASH FLOWS FROM OPERATING ACTIVITIES:

  

Net increase in net assets resulting from operations

     $809,795   

Adjustments to reconcile net increase (decrease) in net assets from operations to net cash used in operating activities:

  

Purchase of investments

             (10,702,836)   

Proceeds from sale of investments

     8,222,092   

Increase in accrued interest on GWL&A Contract

     (60,673)   

Net realized gain on investments

     (985,877)   

Net change in unrealized depreciation on investments

     446,302   

Decrease in payable to investment adviser

     (102)   

Decrease in payable for investments purchased

     (1,295)   
  

 

 

 

Net Cash Provided by Operating Activities

     (2,272,594)   
  

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

  

Proceeds from shares sold

     5,871,111   

Payment on shares redeemed

     (3,598,517)   

Cash distributions paid

     –   
  

 

 

 

Net Cash Used in Financing Activities

     2,272,594   
  

 

 

 

Net Increase in Cash

     0   
  

 

 

 

CASH:

  

Beginning of period

     0   
  

 

 

 

End of period

     $0   
  

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

  

Noncash financing activities not included herein consist of reinvestment of distributions:

     $280,085   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Cash Flows

As of June 28, 2013 (Unaudited)

 

Great-West Moderately Conservative Profile I Fund        

CASH FLOWS FROM OPERATING ACTIVITIES:

  

Net increase in net assets resulting from operations

     $2,315,816   

Adjustments to reconcile net increase (decrease) in net assets from operations to net cash used in operating activities:

  

Purchase of investments

     (13,105,849)   

Proceeds from sale of investments

     12,026,286   

Increase in accrued interest on GWL&A Contract

     (93,065)   

Net realized gain on investments

     (1,226,699)   

Net change in unrealized appreciation on investments

     (742,499)   

Decrease in receivable for investments sold

     10,866   

Decrease in payable to investment adviser

     (296)   

Increase in payable for investments purchased

     69,744   
  

 

 

 

Net Cash Provided by Operating Activities

     (745,696)   
  

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

  

Proceeds from shares sold

     7,580,882   

Payment on shares redeemed

             (6,835,186)   

Cash distributions paid

     –   
  

 

 

 

Net Cash Used in Financing Activities

     745,696   
  

 

 

 

Net Increase in Cash

     0   
  

 

 

 

CASH:

  

Beginning of period

     0   
  

 

 

 

End of period

     $0   
  

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

  

Noncash financing activities not included herein consist of reinvestment of distributions:

     $359,476   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Statement of Cash Flows

As of June 28, 2013 (Unaudited)

 

Great-West Moderate Profile I Fund        

CASH FLOWS FROM OPERATING ACTIVITIES:

  

Net increase in net assets resulting from operations

     $9,008,346   

Adjustments to reconcile net increase (decrease) in net assets from operations to net cash used in operating activities:

  

Purchase of investments

     (26,772,454)   

Proceeds from sale of investments

     30,494,303   

Increase in accrued interest on GWL&A Contract

     (182,097)   

Net realized gain on investments

     (4,810,151)   

Net change in unrealized appreciation on investments

     (3,449,828)   

Decrease in payable to investment adviser

     (1,471)   

Increase in payable for investments purchased

     134,604   
  

 

 

 

Net Cash Provided by Operating Activities

     4,421,252   
  

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

  

Proceeds from shares sold

     13,059,124   

Payment on shares redeemed

             (17,480,376)   

Cash distributions paid

     –   
  

 

 

 

Net Cash Used in Financing Activities

     (4,421,252)   
  

 

 

 

Net Increase in Cash

     0   
  

 

 

 

CASH:

  

Beginning of period

     0   
  

 

 

 

End of period

     $0   
  

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

  

Noncash financing activities not included herein consist of reinvestment of distributions:

     $770,908   

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Financial Highlights

Selected data for a share of capital stock of the Fund throughout the periods indicated.

 

      Fiscal Years Ended December 31,  
Great-West Conservative Profile I Fund - Initial Class   

Period
Ended
June 28,
2013
(Unaudited)

 

   

2012

 

   

2011

 

    

2010

 

    

2009

 

    

2008

 

 

NET ASSET VALUE, BEGINNING OF PERIOD

     $8.35        $7.95        $8.38         $9.39         $8.18         $10.11   

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

               

Net investment income

     0.06 (a)       0.20 (a)       0.18         0.20         0.25         0.37   

Net realized and unrealized gain (loss)

     0.13        0.52        (0.10)         0.60         1.39         (1.73)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total From Investment Operations

     0.19        0.72        0.08         0.80         1.64         (1.36)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

LESS DISTRIBUTIONS:

               

From return of capital

     –        (0.04)        (0.01)         –         –         –   

From net investment income

     (0.06)        (0.17)        (0.17)         (0.20)         (0.26)         (0.36)   

From net realized gains

     –        (0.11)        (0.33)         (1.61)         (0.17)         (0.21)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total Distributions

     (0.06)        (0.32)        (0.51)         (1.81)         (0.43)         (0.57)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSET VALUE, END OF PERIOD

     $8.48        $8.35        $7.95         $8.38         $9.39         $8.18   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL RETURN (b)

     2.45% (c)       9.02%        1.06%         8.73%         20.39%         (13.77%)   

SUPPLEMENTAL DATA AND RATIOS:

               

Net assets, end of period ($000)

         $37,789            $34,707            $32,036             $28,098             $52,967             $48,158   

Ratio of expenses to average net assets (d)

     0.25% (e)       0.25%        0.25%         0.25%         0.25%         0.25%   

Ratio of net investment income to average net assets

     1.50% (e)       2.35%        2.62%         2.00%         2.67%         4.03%   

Portfolio turnover rate

     22% (c)       30%        29%         40%         33%         44%   

 

(a)     

Per share amounts are based upon average shares outstanding.

(b)     

Performance does not include any fees or expenses of variable insurance contracts, if applicable. If such fees or expenses were included, returns would be lower.

(c)     

Not annualized for periods less than one full year.

(d)     

Does not include expenses of the underlying investments in which the Fund invests.

(e)     

Annualized.

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Financial Highlights

Selected data for a share of capital stock of the Fund throughout the periods indicated.

 

      Fiscal Years Ended December 31,  
Great-West Moderately Conservative Profile I Fund - Initial Class   

Period
Ended
June 28,
2013
(Unaudited)

 

   

2012

 

   

2011

 

    

2010

 

    

2009

 

    

2008

 

 

NET ASSET VALUE, BEGINNING OF PERIOD

     $8.55        $7.97        $8.62         $9.15         $7.83         $10.25   

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

               

Net investment income

     0.05 (a)       0.17 (a)       0.18         0.15         0.17         0.29   

Net realized and unrealized gain (loss)

     0.31        0.67        (0.19)         0.75         1.54         (2.09)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total From Investment Operations

     0.36        0.84        (0.01)         0.90         1.71         (1.80)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

LESS DISTRIBUTIONS:

               

From return of capital

     –        (0.03)        –         –         –         –   

From net investment income

     (0.06)        (0.15)        (0.15)         (0.15)         (0.18)         (0.28)   

From net realized gains

     –        (0.08)        (0.49)         (1.28)         (0.21)         (0.34)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total Distributions

     (0.06)        (0.26)        (0.64)         (1.43)         (0.39)         (0.62)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSET VALUE, END OF PERIOD

     $8.85        $8.55        $7.97         $8.62         $9.15         $7.83   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL RETURN (b)

     4.28% (c)       10.59%        (0.07%)         10.04%         22.09%         (18.11%)   

SUPPLEMENTAL DATA AND RATIOS:

               

Net assets, end of period ($000)

         $57,806            $54,664            $48,765             $44,292             $70,893             $58,249   

Ratio of expenses to average net assets (d)

     0.25% (e)       0.25%        0.25%         0.25%         0.25%         0.25%   

Ratio of net investment income to average net assets

     1.23% (e)       2.07%        2.26%         1.51%         1.96%         3.07%   

Portfolio turnover rate

     21% (c)       30%        35%         43%         31%         48%   

 

(a)     

Per share amounts are based upon average shares outstanding.

(b)     

Performance does not include any fees or expenses of variable insurance contracts, if applicable. If such fees or expenses were included, returns would be lower.

(c)     

Not annualized for periods less than one full year.

(d)     

Does not include expenses of the underlying investments in which the Fund invests.

(e)     

Annualized.

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Financial Highlights

Selected data for a share of capital stock of the Fund throughout the periods indicated.

 

      Fiscal Years Ended December 31,  
Great-West Moderate Profile I Fund - Initial Class   

Period
Ended
June 28,
2013
(Unaudited)

 

   

2012

 

   

2011

 

    

2010

 

    

2009

 

    

2008

 

 

NET ASSET VALUE, BEGINNING OF PERIOD

     $8.65        $8.27        $9.23         $9.17         $7.68         $10.88   

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

               

Net investment income

     0.04 (a)       0.14 (a)       0.16         0.12         0.13         0.25   

Net realized and unrealized gain (loss)

     0.49        0.86        (0.28)         0.92         1.72         (2.69)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total From Investment Operations

     0.53        1.00        (0.12)         1.04         1.85         (2.44)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

LESS DISTRIBUTIONS:

               

From return of capital

     –        (0.18)        –         –         –         –   

From net investment income

     (0.05)        (0.01)        (0.13)         (0.12)         (0.14)         (0.25)   

From net realized gains

     –        (0.43)        (0.71)         (0.86)         (0.22)         (0.51)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total Distributions

     (0.05)        (0.62)        (0.84)         (0.98)         (0.36)         (0.76)   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSET VALUE, END OF PERIOD

     $9.13        $8.65        $8.27         $9.23         $9.17         $7.68   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL RETURN (b)

     6.09% (c)       12.25%        (1.26%)         11.54%         24.43%         (23.29%)   

SUPPLEMENTAL DATA AND RATIOS:

               

Net assets, end of period ($000)

         $152,927            $148,205            $178,263             $182,012             $294,910             $240,361   

Ratio of expenses to average net assets (d)

     0.25% (e)       0.25%        0.25%         0.25%         0.25%         0.25%   

Ratio of net investment income to average net assets

     0.98% (e)       1.62%        1.82%         1.21%         1.54%         2.63%   

Portfolio turnover rate

     17% (c)       24%        32%         32%         26%         48%   

 

(a)     

Per share amounts are based upon average shares outstanding.

(b)     

Performance does not include any fees or expenses of variable insurance contracts, if applicable. If such fees or expenses were included, returns would be lower.

(c)     

Not annualized for periods less than one full year.

(d)     

Does not include expenses of the underlying investments in which the Fund invests.

(e)     

Annualized.

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Financial Highlights

Selected data for a share of capital stock of the Fund throughout the periods indicated.

 

      Fiscal Years Ended December 31,  
     Period
Ended
June 28,
2013
(Unaudited) 		    2012     2011     2010      2009      2008  
Great-West Moderately Aggressive Profile I Fund - Initial Class                                       

NET ASSET VALUE, BEGINNING OF PERIOD

     $9.02        $8.13        $9.15        $8.85         $7.14         $11.13   

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

              

Net investment income

     0.04 (a)       0.13 (a)       0.13        0.11         0.12         0.23   

Net realized and unrealized gain (loss)

     0.68        1.00        (0.33)        1.04         1.90         (3.46)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total From Investment Operations

     0.72        1.13        (0.20)        1.15         2.02         (3.23)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

LESS DISTRIBUTIONS:

              

From return of capital

     –        (0.09)        (0.00) (f)       –         –         –   

From net investment income

     (0.04)        (0.05)        (0.12)        (0.11)         (0.13)         (0.23)   

From net realized gains

     –        (0.10)        (0.70)        (0.74)         (0.18)         (0.53)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Distributions

     (0.04)        (0.24)        (0.82)        (0.85)         (0.31)         (0.76)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

NET ASSET VALUE, END OF PERIOD

     $9.70        $9.02        $8.13        $9.15         $8.85         $7.14   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

TOTAL RETURN (b)

     7.89% (c)       13.89%        (2.16%)        13.16%         28.58%         (30.24%)   

SUPPLEMENTAL DATA AND RATIOS:

              

Net assets, end of period ($000)

         $144,668            $133,941            $132,812            $138,164             $275,109             $214,134   

Ratio of expenses to average net assets (d)

     0.25% (e)       0.25%        0.25%        0.25%         0.25%         0.25%   

Ratio of net investment income to average net assets

     0.83% (e)       1.47%        1.52%        1.08%         1.47%         2.48%   

Portfolio turnover rate

     17% (c)       28%        35%        27%         24%         52%   

 

(a)     

Per share amounts are based upon average shares outstanding.

(b)     

Performance does not include any fees or expenses of variable insurance contracts, if applicable. If such fees or expenses were included, returns would be lower.

(c)     

Not annualized for periods less than one full year.

(d)     

Does not include expenses of the underlying investments in which the Fund invests.

(e)     

Annualized.

(f)     

Amount was less than $0.01 per share.

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Financial Highlights

Selected data for a share of capital stock of the Fund throughout the periods indicated.

 

      Fiscal Years Ended December 31,  
Great-West Aggressive Profile I Fund - Initial Class   

Period
Ended

June 28,
2013
(Unaudited)

 

   

2012

 

   

2011

 

   

2010

 

    

2009

 

    

2008

 

 

NET ASSET VALUE, BEGINNING OF PERIOD

     $9.34        $8.14        $9.19        $8.18         $6.29         $11.48   

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

              

Net investment income

     0.02 (a)       0.08 (a)       0.09        0.06         0.06         0.07   

Net realized and unrealized gain (loss)

     1.06        1.26        (0.50)        1.21         2.00         (4.43)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total From Investment Operations

     1.08        1.34        (0.41)        1.27         2.06         (4.36)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

LESS DISTRIBUTIONS:

              

From return of capital

     –        (0.06)        (0.00) (f)       –         –         –   

From net investment income

     (0.02)        (0.02)        (0.09)        (0.06)         (0.06)         (0.07)   

From net realized gains

     –        (0.06)        (0.55)        (0.20)         (0.11)         (0.76)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Distributions

     (0.02)        (0.14)        (0.64)        (0.26)         (0.17)         (0.83)   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

NET ASSET VALUE, END OF PERIOD

     $10.40        $9.34        $8.14        $9.19         $8.18         $6.29   
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

TOTAL RETURN (b)

         11.58% (c)       16.45%        (4.41%)        15.55%         33.01%         (40.04%)   

SUPPLEMENTAL DATA AND RATIOS:

              

Net assets, end of period ($000)

     $73,799            $65,946            $64,945            $68,514             $115,560             $84,904   

Ratio of expenses to average net assets (d)

     0.25% (e)       0.25%        0.25%        0.25%         0.25%         0.25%   

Ratio of net investment income to average net assets

     0.42% (e)       0.85%        0.78%        0.57%         0.68%         0.79%   

Portfolio turnover rate

     18% (c)       32%        35%        29%         23%         54%   

 

(a)     

Per share amounts are based upon average shares outstanding.

(b)     

Performance does not include any fees or expenses of variable insurance contracts, if applicable. If such fees or expenses were included, returns would be lower.

(c)     

Not annualized for periods less than one full year.

(d)     

Does not include expenses of the underlying investments in which the Fund invests.

(e)     

Annualized.

(f)     

Amount was less than $0.01 per share.

 

 

See Notes to Financial Statements.

 

 

Semi-Annual Report - June 28, 2013

GREAT-WEST FUNDS, INC.

Notes to Financial Statements

(Unaudited)

 

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-three funds. Interests in the Great-West Conservative Profile I Fund, Great-West Moderately Conservative Profile I Fund, Great-West Moderate Profile I Fund, Great-West Moderately Aggressive Profile I Fund and Great-West Aggressive Profile I Fund (each a Fund, collectively the Funds) are included herein and are represented by separate classes of beneficial interest of Great-West Funds. The investment objective of each Fund is to seek long-term capital appreciation primarily through investments in underlying funds of the Great-West Funds that emphasize fixed income investments for the Great-West Conservative Profile I Fund; to seek capital appreciation primarily through investments in underlying funds of Great-West Funds that emphasize fixed income investments, and to a lesser degree, in those that emphasize equity investments for the Great-West Moderately Conservative Profile I Fund; to seek long-term capital appreciation primarily through investments in underlying funds of the Great-West Funds with a relatively equal emphasis on equity and fixed income investments for the Great-West Moderate Profile I Fund; to seek long-term capital appreciation primarily through investments in underlying funds of the Great-West Funds that emphasize equity investments, and to a lesser degree, in those that emphasize fixed income investments for the Great-West Moderately Aggressive Profile I Fund and to seek long-term capital appreciation primarily through investments in underlying funds of the Great-West Funds that emphasize equity investments for the Great-West Aggressive Profile I Fund. Each Fund is non-diversified as defined in the 1940 Act. The Funds are available as an investment option for 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, and to college savings programs.

Each of the Funds offer two share classes, referred to as Inital Class and Class L shares. This report includes information for the Initial Class; Class L has not yet been capitalized.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 following is a summary of the significant accounting policies of the Funds.

Security Valuation

Investments in shares of the underlying mutual funds are valued at their net asset value as reported by the underlying mutual fund. The net asset value 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.

Investments in fixed interest contracts issued by Great-West Life & Annuity Insurance Company (GWL&A Contract) are valued at the amount of net deposits, determined on a daily basis. The GWL&A Contract is backed by the general account of Great-West Life & Annuity Insurance Company (GWL&A).

The Funds classify valuations into three levels based upon the transparency of inputs to the valuation of each Fund’s investments. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. 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. The fair value for some Level 2 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.

 

 

Semi-Annual Report - June 28, 2013

Level 3 – Unobservable inputs to the extent observable inputs are not available. Unobservable inputs reflect the reporting entity’s own assumptions and would be based on the best information available under the circumstances.

As of June 28, 2013, the inputs used to value each Fund’s investments are detailed in the following table. The Funds recognize transfers between levels as of the beginning of the reporting period. There were no transfers between Levels 1, 2 and 3 during the period.

Great-West Conservative Profile I Fund

 

         Level 1                 Level 2                 Level 3           Total  

Assets

                      

Bond Mutual Funds

   $     17,899,685       $      —       $      —       $      17,899,685   

Equity Mutual Funds

       11,469,618            —            —            11,469,618   

Fixed Interest Contract

       —            —            8,426,449            8,426,449   
    

 

 

       

 

 

       

 

 

       

 

 

 

Total Investments

   $     29,369,303       $      0       $      8,426,449       $      37,795,752   
    

 

 

       

 

 

       

 

 

       

 

 

 
    

 

 

       

 

 

       

 

 

       

 

 

 

Great-West Moderately Conservative

Profile I Fund

                      
         Level 1               Level 2               Level 3           Total  

Assets

                      

Bond Mutual Funds

   $     19,087,486       $      —       $      —       $      19,087,486   

Equity Mutual Funds

       26,045,838            —            —            26,045,838   

Fixed Interest Contract

       —            —            12,683,495            12,683,495   
    

 

 

       

 

 

       

 

 

       

 

 

 

Total Investments

   $     45,133,324       $      0       $      12,683,495       $      57,816,819   
    

 

 

       

 

 

       

 

 

       

 

 

 
    

 

 

       

 

 

       

 

 

       

 

 

 
Great-West Moderate Profile I Fund                       
         Level 1               Level 2               Level 3           Total  

Assets

                      

Bond Mutual Funds

   $     36,493,621       $      —       $      —       $      36,493,621   

Equity Mutual Funds

       92,332,688            —            —            92,332,688   

Fixed Interest Contract

       —            —            24,130,284            24,130,284   
    

 

 

       

 

 

       

 

 

       

 

 

 

Total Investments

   $     128,826,309       $      0       $      24,130,284       $      152,956,593   
    

 

 

       

 

 

       

 

 

       

 

 

 
    

 

 

       

 

 

       

 

 

       

 

 

 

Great-West Moderately Aggressive

Profile I Fund

                      
         Level 1               Level 2               Level 3           Total  

Assets

                      

Bond Mutual Funds

   $     25,855,847       $      —       $      —       $      25,855,847   

Equity Mutual Funds

       105,992,606            —            —            105,992,606   

Fixed Interest Contract

       —            —            12,847,277            12,847,277   
    

 

 

       

 

 

       

 

 

       

 

 

 

Total Investments

   $     131,848,453       $      0       $      12,847,277       $      144,695,730   
    

 

 

       

 

 

       

 

 

       

 

 

 
    

 

 

       

 

 

       

 

 

       

 

 

 
Great-West Aggressive Profile I Fund                       
         Level 1           Level 2           Level 3           Total  

Assets

                      

Equity Mutual Funds

   $     73,813,049       $      —       $      —       $      73,813,049   
    

 

 

       

 

 

       

 

 

       

 

 

 

Total Investments

   $     73,813,049       $      0       $      0       $      73,813,049   
    

 

 

       

 

 

       

 

 

       

 

 

 
    

 

 

       

 

 

       

 

 

       

 

 

 

 

 

Semi-Annual Report - June 28, 2013

The following is a reconciliation of change in Level 3 assets during the period ended June 28, 2013:

 

         

Great-West

Conservative

Profile I

Fund

      

Great-West

Moderately
Conservative
Profile I

Fund

      

Great-
West

Moderate

Profile I

Fund

      

Great-West

Moderately
Aggressive

Profile I

Fund

Beginning Balance, January 1, 2013

   $    7,784,993     $    12,009,347     $    23,638,279     $    11,976,176

Total realized gain (loss)

      –      –      –      –

Total unrealized gain (loss) relating to investments not held at reporting date

      –      –      –      –

Total unrealized gain (loss) relating to investments still held at reporting date

      –      –      –      –

Total interest received

      60,673      93,065      182,097      94,716

Purchases

      1,188,510      1,622,704      2,536,022      1,947,911

Sales

      (607,727)      (1,041,621)      (2,226,114)      (1,171,526)

Transfers into Level 3

      –      –      –      –

Transfers (out of) Level 3

      –      –      –      –
     

 

    

 

    

 

    

 

Ending Balance, June 28, 2013

   $    8,426,449     $    12,683,495     $    24,130,284     $    12,847,277
     

 

    

 

    

 

    

 

Level 3 securities include investments in the GWL&A Contract, the fair value of which has been determined with the use of an internal model. The internal model incorporates, among other observable inputs, the financial strength and credit risk of GWL&A and its ability to meet ongoing obligations to its policyholders (i.e., a credit risk input). The Funds consider the credit risk input to be a significant unobservable input. As of June 28, 2013, the credit risk input was negligible. If there were a significant decrease in GWL&A’s credit risk, it may result in a lower fair value measurement.

Dividends

Dividends from net investment income of the Funds, if any, are declared and paid semi-annually. Income dividends are reinvested in additional shares at net asset value. Dividends from capital gains of the Funds, if any, are declared and reinvested at least annually in additional shares at net asset value.

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 the basis of the first-in, first-out method (FIFO). Dividend income and realized gain distributions from underlying funds are accrued as of the ex-dividend date. Interest on the GWL&A Contract is accrued daily.

Federal Income Taxes and Distributions to Shareholders

Each Fund’s policy complies with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and each Fund intends to distribute substantially all of its net taxable income and net capital gains, if any, each year. The Funds are not subject to income taxes to the extent such distributions are made. Therefore, no federal income taxes or excise tax provision is required.

As of and during the period ended June 28, 2013, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the Funds did not incur any interest or penalties.

Each Fund files U.S. Federal and Colorado tax returns. The statute of limitations on the Funds’ U.S. Federal tax returns remain open for the fiscal years ended 2009 through 2012. The statute of limitations on the Funds’ Colorado tax returns remain open for an additional year.

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 and tax basis differences. The character of dividends and distributions made during the fiscal year from net investment income and/or realized gains may differ from their ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the

 

 

Semi-Annual Report - June 28, 2013

fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by each Fund.

2. INVESTMENT ADVISORY AGREEMENT & 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 GWL&A. As compensation for its services to Great-West Funds, the Adviser receives monthly compensation at the annual rate of 0.25% of the average daily net assets of each Fund. Each Fund will also bear the indirect expense of the underlying investments. Because the underlying funds have varied expense and fee levels and the Funds may own different proportions of underlying funds at different times, the amount of fees and expenses incurred indirectly by the Funds will vary. Expenses incurred by Great-West Funds, which are not Fund specific, are allocated based on relative net assets or other appropriate allocation methods.

GWFS Equities, Inc. (the Distributor), is a wholly-owned subsidiary of GWL&A and the principal underwriter to distribute and market the Fund.

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-three funds for which they serve as directors was $137,900 for the period ended June 28, 2013.

Each Fund may invest in the GWL&A Contract pursuant to exemptive relief issued by the U.S. Securities and Exchange Commission. The GWL&A Contract has a stable principal value and accrues a fixed rate of interest, which is reflected in the daily valuation of the Funds. GWL&A calculates the interest rate in the same way it calculates guaranteed interest rates for similar contracts (on a calendar quarter or other periodic basis). As a result of GWL&A being an affiliated entity, the Funds are exposed to the risk of unanticipated industry conditions as well as risks specific to a single corporation. If GWL&A were to become insolvent, the GWL&A Contract would be settled commensurate with other policy holder obligations.

The amounts deposited will accrue interest at a declared rate of interest, adjustable on a calendar quarter or other periodic basis, guaranteed to be no less than 1.5%. The investment in the GWL&A Contract may be terminated by GWL&A or the Funds upon 7 days prior written notice. The guaranteed interest rate paid will be at least as favorable as the guaranteed interest rate paid on other similar products issued by GWL&A.

The following tables are a summary of the transactions for each underlying investment during the period ended June 28, 2013, in which the issuer was an affiliate of a Fund, as defined in the 1940 Act.

 

 

Semi-Annual Report - June 28, 2013

Great-West Conservative Profile I Fund

 

Affiliate    Shares
Held/Account
Balance
6/28/2013 		          Fair
Value
12/31/2012 		          Purchase
Cost 		          Sales
Cost 		          Net Realized
Gain/(Loss) 		          Dividends and
Interest
Received 		          Fair
Value
6/28/2013 		 

Great-West American Century Growth Fund Initial Class

     58,530      $      1,049,789      $      104,349      $      484,176      $      98,449      $      1,768      $      690,071   

Great-West Federated Bond Fund Initial Class

     323,833           3,631,295           599,417           644,777           34,598           32,270           3,377,583   

Great-West Goldman Sachs Mid Cap Value Fund Initial Class

     129,222           1,980,017           256,156           680,061           247,324           5,358           1,608,813   

Great-West Invesco Small Cap Value Fund Initial Class

     23,843           —           303,501           4,160           (80 )         2,350           285,637   

Great-West Janus Large Cap Growth Fund Initial Class

     74,344           1,055,587           132,985           555,989           19,749           —           693,631   

Great-West Life & Annuity Contract

     8,426,449           7,784,993           1,188,510           607,727           —           60,673           8,426,449   

Great-West Loomis Sayles Bond Fund Initial Class Initial Class

     169,258           —           2,361,665           19,016           (982 )         36,881           2,266,365   

Great-West Loomis Sayles Small Cap Value Fund Initial Class

     11,180           —           298,017           4,778           (93 )         353           286,313   

Great-West MFS International Growth Fund Initial Class

     71,397           818,838           142,094           141,768           22,682           —           813,212   

Great-West MFS International Value Fund Initial Class

     166,546           1,622,274           227,737           289,775           106,254           —           1,662,125   

Great-West Putnam Equity Income Fund Initial Class

     108,123           1,743,595           185,189           602,229           187,851           9,844           1,403,442   

Great-West Putnam High Yield Bond Fund Initial Class

     215,816           2,078,303           314,142           560,022           43,820           47,866           1,784,795   

Great-West Real Estate Index Fund Initial Class

     178,052           —           2,203,419           70,549           (9,268 )         9,365           1,938,983   

Great-West Short Duration Bond Fund Initial Class

     234,917           2,249,219           362,814           145,166           9,106           23,610           2,436,089   

Great-West Small Cap Growth Fund Initial Class

     12,118           —           292,846           6,185           30           —           285,736   

Great-West T. Rowe Price Equity Income Fund Initial Class

     75,697           1,742,963           182,446           552,018           220,525           10,487           1,401,917   

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class

     19,838           469,976           52,115           167,700           24,942           —           399,738   

Great-West Templeton Global Bond Fund Initial Class

     434,347           3,640,916           750,829           144,984           11,777           27,801           4,117,609   

Great-West U.S. Government Mortgage Securities Fund Initial Class

     328,628           4,846,995           744,607           1,555,135           (30,807 )         46,579           3,917,244   
                      

 

 

      

 

 

      

 

 

 
       $      985,877      $      315,205      $      37,795,752   
                      

 

 

      

 

 

      

 

 

 
                      

 

 

      

 

 

      

 

 

 

 

 

Semi-Annual Report - June 28, 2013

Great-West Moderately Conservative Profile I Fund

 

Affiliate    Shares
Held/Account
Balance
6/28/2013 		          Fair
Value
12/31/2012 		          Purchase
Cost 		          Sales
Cost 		          Net Realized
Gain/(Loss) 		          Dividends and
Interest
Received 		          Fair
Value
6/28/2013 		 

Great-West American Century Growth Fund Initial Class

     144,057      $      2,731,505      $      194,085      $      1,282,038      $      257,614      $      4,382      $      1,698,431   

Great-West Federated Bond Fund Initial Class

     410,021           4,923,144           713,816           1,094,234           39,336           41,956           4,276,522   

Great-West Goldman Sachs Mid Cap Value Fund Initial Class

     316,348           3,463,844           563,337           388,546           169,369           13,309           3,938,531   

Great-West Invesco Small Cap Value Fund Initial Class

     58,908           825,819           99,944           278,172           59,675           5,866           705,713   

Great-West Janus Large Cap Growth Fund Initial Class

     182,528           2,741,472           233,949           1,620,946           (136,755 )         —           1,702,986   

Great-West Life & Annuity Contract

     12,683,495           12,009,347           1,622,704           1,041,621           —           93,065           12,683,495   

Great-West Loomis Sayles Bond Fund Initial Class

     209,005           —           2,903,005           8,918           (298 )         45,573           2,798,575   

Great-West Loomis Sayles Small Cap Value Fund Initial Class

     27,555           826,098           77,646           209,240           107,949           881           705,681   

Great-West MFS International Growth Fund Initial Class

     175,854           2,017,443           258,959           246,933           64,107           —           2,002,979   

Great-West MFS International Value Fund Initial Class

     410,470           4,005,376           335,469           548,599           201,365           —           4,096,490   

Great-West Putnam Equity Income Fund Initial Class

     265,845           3,549,542           246,622           668,049           194,260           24,436           3,450,673   

Great-West Putnam High Yield Bond Fund Initial Class

     270,750           2,726,979           310,058           738,100           58,409           60,091           2,239,106   

Great-West Real Estate Index Fund Initial Class

     239,490           —           3,036,841           162,914           (20,815 )         12,932           2,608,049   

Great-West Small Cap Growth Fund Initial Class

     29,904           —           733,255           25,603           12           —           705,144   

Great-West T. Rowe Price Equity Income Fund Initial Class

     186,202           3,543,151           245,744           609,431           213,305           26,034           3,448,455   

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class

     48,770           908,788           66,913           95,623           28,820           —           982,706   

Great-West Templeton Global Bond Fund Initial Class

     546,436           4,932,997           696,717           278,410           21,151           35,109           5,180,212   

Great-West U.S. Government Mortgage Securities Fund Initial Class

     385,325           5,469,488           766,787           1,502,209           (30,805 )         53,511           4,593,071   
                      

 

 

      

 

 

      

 

 

 
       $      1,226,699      $      417,145         $ 57,816,819   
                      

 

 

      

 

 

      

 

 

 
                      

 

 

      

 

 

      

 

 

 

 

 

Semi-Annual Report - June 28, 2013

Great-West Moderate Profile I Fund

 

Affiliate    Shares
Held/Account
Balance
6/28/2013 		          Fair
Value
12/31/2012 		          Purchase
Cost 		          Sales
Cost 		          Net Realized
Gain/(Loss) 		          Dividends and
Interest
Received 		          Fair
Value
6/28/2013 		 

Great-West American Century Growth Fund Initial Class

     528,297      $      8,879,081      $      202,785      $      3,179,145      $      644,490      $      16,084      $      6,228,620   

Great-West Federated Bond Fund Initial Class

     803,677           10,359,905           1,033,247           2,452,351           95,820           85,441           8,382,359   

Great-West Goldman Sachs Mid Cap Value Fund Initial Class

     1,168,269           9,624,266           4,858,020           536,794           513,273           48,836           14,544,951   

Great-West Invesco Small Cap Value Fund Initial Class

     215,870           2,239,865           320,063           177,281           77,352           21,420           2,586,121   

Great-West Janus Large Cap Growth Fund Initial Class

     670,894           8,916,597           435,536           4,276,867           (541,307 )         —           6,259,439   

Great-West Life & Annuity Contract

     24,130,284           23,638,279           2,536,022           2,226,114           —           182,097           24,130,284   

Great-West Loomis Sayles Bond Fund Initial Class

     399,406           —           5,631,577           101,948           (4,947 )         87,885           5,348,051   

Great-West Loomis Sayles Small Cap Value Fund Initial Class

     101,021           2,245,090           284,129           156,213           87,727           3,218           2,587,151   

Great-West MFS International Growth Fund Initial Class

     646,547           7,965,438           515,583           1,012,186           276,916           —           7,364,175   

Great-West MFS International Value Fund Initial Class

     1,504,142           15,793,561           459,887           1,928,540           1,318,933           —           15,011,336   

Great-West Putnam Equity Income Fund Initial Class

     976,042           11,842,355           325,084           934,400           229,468           89,540           12,669,026   

Great-West Putnam High Yield Bond Fund Initial Class

     477,649           4,438,314           373,999           799,357           42,008           107,050           3,950,157   

Great-West Real Estate Index Fund Initial Class

     572,895           —           7,178,762           305,772           (39,267 )         30,482           6,238,824   

Great-West Small Cap Growth Fund Initial Class

     109,763           4,492,713           234,223           1,954,792           923,910           —           2,588,221   

Great-West T. Rowe Price Equity Income Fund Initial Class

     682,795           11,824,633           427,330           850,488           301,319           95,398           12,645,364   

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class

     179,130           5,194,896           67,825           1,564,916           875,144           —           3,609,460   

Great-West Templeton Global Bond Fund Initial Class

     1,075,293           10,419,169           833,632           703,495           60,839           69,430           10,193,776   

Great-West U.S. Government Mortgage Securities Fund Initial Class

     723,094           10,362,204           1,054,751           2,523,493           (51,527 )         101,680           8,619,278   
                      

 

 

      

 

 

      

 

 

 
  $      4,810,151      $      938,561      $      152,956,593   
                      

 

 

      

 

 

      

 

 

 
                      

 

 

      

 

 

      

 

 

 

 

 

Semi-Annual Report - June 28, 2013

Great-West Moderately Aggressive Profile I Fund

 

Affiliate   

Shares

Held/Account
Balance
6/28/2013

          Fair
Value
12/31/2012 		          Purchase
Cost 		          Sales
Cost 		         Net Realized
Gain/(Loss) 		          Dividends and
Interest
Received 		          Fair
Value
6/28/2013 		 

Great-West American Century Growth Fund Initial Class

     618,524      $      8,685,839      $      277,737      $      2,147,429      $     439,946      $      18,745      $      7,292,395   

Great-West Federated Bond Fund Initial Class

     559,181           6,681,606           1,008,909           1,488,936          54,195           57,931           5,832,260   

Great-West Goldman Sachs Mid Cap Value Fund Initial Class

     1,368,786           16,947,342           764,904           1,401,154          1,699,632           56,889           17,041,384   

Great-West Invesco Small Cap Value Fund Initial Class

     253,577           3,387,719           203,229           624,410          407,661           25,030           3,037,851   

Great-West Janus Large Cap Growth Fund Initial Class

     784,913           8,702,591           583,973           2,838,447          (282,226 )         —           7,323,243   

Great-West Life & Annuity Contract

     12,847,277           11,976,176           1,947,911           1,171,526          —           94,716           12,847,277   

Great-West Loomis Sayles Bond Fund Initial Class

     283,036           —           3,969,450           50,299          (2,168 )         61,913           3,789,846   

Great-West Loomis Sayles Small Cap Value Fund Initial Class

     118,703           3,401,433           129,116           471,597          507,118           3,761           3,039,980   

Great-West MFS International Growth Fund Initial Class

     757,045           8,579,749           770,881           561,733          315,479           —           8,622,744   

Great-West MFS International Value Fund Initial Class

     1,758,236           16,928,939           976,923           1,306,635          1,190,551           —           17,547,199   

Great-West Putnam Equity Income Fund Initial Class

     1,142,583           11,356,746           2,706,850           616,366          154,713           104,392           14,830,725   

Great-West Putnam High Yield Bond Fund Initial Class

     381,903           4,010,192           482,276           1,250,293          86,544           85,082           3,158,338   

Great-West Real Estate Index Fund Initial Class

     475,274           —           5,913,492           205,300          (26,021 )         25,052           5,175,738   

Great-West Small Cap Growth Fund Initial Class

     129,012           4,080,739           250,484           1,192,949          774,644           —           3,042,109   

Great-West T. Rowe Price Equity Income Fund Initial Class

     799,540           11,336,021           2,875,459           378,368          437,505           111,221           14,807,479   

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class

     210,013           4,482,029           66,457           506,303          476,979           —           4,231,759   

Great-West Templeton Global Bond Fund Initial Class

     746,232           6,726,559           934,012           319,690          54,574           47,982           7,074,283   

Great-West U.S. Government Mortgage Securities Fund Initial Class

     503,450           6,685,365           1,028,114           1,523,435          (31,145 )         68,748           6,001,120   
                     

 

 

      

 

 

      

 

 

 
                 $     6,257,981      $      761,462      $      144,695,730   
                     

 

 

      

 

 

      

 

 

 
                     

 

 

      

 

 

      

 

 

 

 

 

Semi-Annual Report - June 28, 2013

Great-West Aggressive Profile I Fund

 

Affiliate    Shares Held
6/28/2013 		          Fair
Value
12/31/2012 		          Purchase
Cost 		          Sales
Cost 		          Net Realized
Gain/(Loss) 		          Dividends
Received 		          Fair
Value
6/28/2013 		 

Great-West American Century Growth Fund Initial Class

     439,506      $      5,616,844      $      309,978      $      1,102,091      $      222,078      $      13,264      $      5,181,772   

Great-West Goldman Sachs Mid Cap Value Fund Initial Class

     969,556           12,110,114           521,615           1,018,743           1,300,301           40,332           12,070,975   

Great-West Invesco Small Cap Value Fund Initial Class

     179,260           2,649,734           143,538           649,922           389,436           17,690           2,147,531   

Great-West Janus Large Cap Growth Fund Initial Class

     556,602           5,616,563           487,951           1,401,990           (123,078 )         —           5,193,092   

Great-West Loomis Sayles Small Cap Value Fund Initial Class

     84,000           2,649,663           112,942           527,548           477,925           2,659           2,151,247   

Great-West MFS International Growth Fund Initial Class

     538,153           5,948,908           777,171           488,817           212,717           —           6,129,560   

Great-West MFS International Value Fund Initial Class

     1,249,444           11,794,741           1,099,994           1,320,557           620,832           —           12,469,452   

Great-West Putnam Equity Income Fund Initial Class

     812,033           6,584,622           3,530,499           325,587           85,084           73,996           10,540,183   

Great-West Real Estate Index Fund Initial Class

     205,844           —           2,567,004           91,659           (12,862 )         10,899           2,241,644   

Great-West Small Cap Growth Fund Initial Class

     91,303           3,318,247           213,637           1,120,614           821,443           —           2,152,930   

Great-West T. Rowe Price Equity Income Fund Initial Class

     568,703           6,581,072           3,609,475           242,146           172,014           78,837           10,532,386   

Great-West T. Rowe Price Mid Cap Growth Fund Initial Class

     148,996           3,088,934           90,721           372,873           267,700           —           3,002,277   
                      

 

 

      

 

 

      

 

 

 
  $      4,433,590      $      237,677      $      73,813,049   
                      

 

 

      

 

 

      

 

 

 
                      

 

 

      

 

 

      

 

 

 

3. PURCHASES & SALES OF UNDERLYING INVESTMENTS

For the period ended June 28, 2013, the aggregate cost of purchases and proceeds from sales of underlying investments were as follows:

 

     Purchases      Sales  

Great-West Conservative Profile I Fund

     $             10,702,836         $             8,222,092   

Great-West Moderately Conservative Profile I Fund

     13,105,849         12,026,286   

Great-West Moderate Profile I Fund

     26,772,454         30,494,303   

Great-West Moderately Aggressive Profile I Fund

     24,890,177         24,312,851   

Great-West Aggressive Profile I Fund

     13,464,525         13,096,138   

4. UNREALIZED APPRECIATION (DEPRECIATION)

The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 28, 2013 were as follows:

 

     Cost For
Income
Tax
Purposes 		     Gross
Appreciation 		     Gross
Depreciation 		   
Net
Unrealized
Appreciation 		 

Great-West Conservative Profile I Fund

     $ 36,881,889         $ 1,673,802         $ (759,939 )      $ 913,863   

Great-West Moderately Conservative Profile I Fund

     54,598,254         4,213,518         (994,953 )      3,218,565   

Great-West Moderate Profile I Fund

             139,081,272                 16,250,541                 (2,375,220 )              13,875,321   

Great-West Moderately Aggressive Profile I Fund

     127,726,489         19,447,198         (2,477,957 )      16,969,241   

Great-West Aggressive Profile I Fund

     63,854,166         11,221,687         (1,262,804 )      9,958,883   

 

 

Semi-Annual Report - June 28, 2013

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-Q. Great-West Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov , and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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 .

Investment Advisory Contract Approval

The Board of Directors (the “Board”) of Great-West Funds, including the Directors who are not interested persons of the Great-West Funds (the “Independent Directors”), at a meeting held on April 18, 2013 (the “Meeting”), approved the continuation of (i) the investment advisory agreement (the “Advisory Agreement”) between Great-West Funds and Great-West Capital Management, LLC (“GWCM”).

Pursuant to the Advisory Agreement, GWCM acts as investment adviser and, subject to oversight by the Board, directs the investments of the Great-West Aggressive Profile I Fund, Great-West Moderately Aggressive Profile I Fund, Great-West Moderate Profile I Fund, Great-West Moderately Conservative Profile I Fund and Great-West Conservative Profile I Fund (each, a “Fund,” collectively, the “Funds”) in accordance with their investment objectives, policies and limitations. GWCM also provides, subject to oversight by the Board, the management and administrative services necessary for the operation of the Funds.

On March 21, 2013, the Independent Directors met separately with independent legal counsel in advance of the Meeting to evaluate information furnished by GWCM in connection with the proposed continuation of the Advisory Agreement. The Independent Directors also considered additional information provided in response to their requests made following the March meeting.

In approving the continuation of the Advisory Agreement, the Board considered such information as the Board deemed reasonably necessary to evaluate the terms of the Advisory Agreement. The Board noted that performance information is provided to the Board on an ongoing basis at regular Board meetings held throughout the year. In its deliberations, the Board did not identify any single factor as being determinative. Rather, the Board’s approval was based on each Director’s business judgment after consideration of the information as a whole. Individual Directors may have weighed certain factors differently and assigned varying degrees of materiality to information considered by the Board.

Based upon its review of the Advisory Agreement and the information provided to it, the Board concluded that the Advisory Agreement was fair and reasonable in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment. The principal factors and conclusions that formed the basis for the Directors’ determinations to approve the continuation of the Advisory Agreement are discussed below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided and to be provided to the Funds by GWCM. Among other things, the Board considered GWCM’s personnel, experience, resources and performance track record, its ability to provide or obtain such services as may be necessary in managing, acquiring and disposing of investments on behalf of the Funds, and its ability to provide research and obtain and evaluate the economic, statistical and financial data relevant to the investment policies of the Fund. The Board also reviewed the qualifications, background and responsibilities of the senior personnel serving the Funds and the portfolio management team responsible for the day-to-day management of the Funds. In addition, the Board considered GWCM’s reputation for management of its investment strategies, its overall financial condition, technical resources, operational capabilities, and compliance policies and procedures, as well as GWCM’s practices regarding the selection and compensation of brokers and dealers for the execution of portfolio transactions and the procedures it uses for obtaining best execution of portfolio transactions. Consideration also was given to the fact that the Board meets with representatives of GWCM at regular Board meetings held throughout the year to discuss portfolio management strategies and performance. Additionally, the quality of GWCM’s communications with the Board, as well GWCM’s responsiveness to the Board, was taken into account. The Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Funds by GWCM.

Investment Performance

The Board considered the investment performance of the Funds. The Board reviewed performance information for each Fund’s Initial Class as compared against its benchmark index and the performance of similar funds. This information included annualized returns for the one-, three-, five-, and ten-year periods ended December 31, 2012 and quarterly returns for the five-year period ended December 31, 2012. The Board also considered the composition of each Fund’s peer group of funds, as determined by GWCM, based on funds of similar size and asset class and with similar intermediary fees as estimated by GWCM from the Fund’s Morningstar category. The Board was provided with a description of the methodology GWCM used to determine the similarity of the Funds with the funds included in the peer group. In evaluating the performance of the Funds, the Board noted how each Fund performed relative to the returns of the applicable benchmark and peer group. In addition, the Board noted that it also had received and discussed at periodic intervals information comparing each Fund’s performance to that of its benchmark index.

The Board noted that for the Great-West Aggressive Profile I Fund, for the one-, three-, five- and ten-year periods ended December 31, 2012, the Fund was in the second, third, third and first quartiles, respectively, of its peer group (the first quartile being the best performers and the fourth quartile being the worst performers). For the Great-West Moderately Aggressive Profile I Fund, the Board noted that for the one-, three-, five- and ten-year periods ended December 31, 2012, the Fund was in the second, second, first and first quartiles, respectively, of its peer group. For the Great-West Moderate Profile I Fund, the Board noted that for the one-, three-, five- and ten-year periods ended December 31, 2012, the Fund was in the second, third, first and first quartiles, respectively, of its peer group. For the Great-West Moderately Conservative Profile I Fund, the Board noted that for the one-, three-, five- and ten-year periods ended December 31, 2012, the Fund was in the fourth, fourth, first and second quartiles, respectively, of its peer group. For the Great-West Conservative Profile I Fund, for the one-, three-, five- and ten-year periods ended December 31, 2012, the Board noted that the Fund was in the third, third, second, and second quartiles, respectively, of its peer group. Although each Fund (with the exception of the Great-West Aggressive Profile I Fund), underperformed its benchmark index for the three-year period ended December 31, 2012, the Board noted that each Fund outperformed its respective benchmark index for the one-, five- and ten-year periods ended December 31, 2012. For the Great-West Aggressive Profile I Fund, although the Fund underperformed for the three-, five- and ten- year periods ended December 31, 2012, it outperformed for the one- year period ended December 31, 2012.

Costs and Profitability

The Board considered the costs of services provided and profits estimated to have been realized by GWCM from its relationship with the Funds. With respect to the costs of services, the Board considered the unified investment management fee structure of the Funds and the level of the investment management fee payable by the Funds. In evaluating the management fee and total expense ratio of the Fund’s Initial Class, the Board considered the fees payable by and the total expense ratios of a peer group of funds managed by other investment advisers, as determined by GWCM based on each Fund’s Morningstar category, and of the entire Morningstar peer universe. Specifically, the Board considered each Fund’s management fee as provided in the Advisory Agreement (the “Contractual Management Fee”) and each Fund’s management fee less certain non-management expenses such as audit and legal expenses (the “Management Fee Less Non-Management Expenses”) in comparison to the contractual management fees of the peer group of funds, and each Fund’s total expense ratio including

underlying fund fees and expenses in comparison to the peer group funds’ total expense ratios including underlying fund fees and expenses. The Board also considered each Fund’s total expense ratio in comparison to the average and median expense ratios for all funds in the peer group and peer universe.

Based on the information provided, the Board noted that for the Great-West Aggressive Profile I Fund, the Fund’s Contractual Management Fee and Management Fee Less Non-Management Expenses were lower than the average and greater than the median contractual management fee of its peer group of funds. The Board also noted that the Fund’s total annual operating expense ratio was lower than the average and median total annual operating expense ratio of its peer group and peer universe and in the first quartile of its peer group (with the first quartile being the lowest expenses and the fourth quartile being the highest expenses).

For the Great-West Moderately Aggressive Profile I Fund, the Board noted that the Fund’s Contractual Management Fee and Management Fee Less Non-Management Expenses were greater than the average and the median contractual management fee of its peer group of funds. However, the Board noted that the Fund’s total annual operating expense ratio was lower than the median total annual operating expense ratio of its peer group, lower than the average and median total operating expense ratio of its peer universe of funds and in the second quartile of its peer group.

For the Great-West Moderate Profile I Fund, the Board noted that the Fund’s Contractual Management Fee and Management Fee Less Non-Management Expenses were higher than the average and median contractual management fee of its peer group of funds. The Board also noted that the Fund’s total annual operating expense ratio was lower than the average and median total annual operating expense ratio of its peer group and peer universe of funds and in the second quartile of its peer group.

For the Great-West Moderately Conservative Profile I Fund, the Board noted that, although the Fund’s Contractual Management Fee was greater than the average and the median contractual management fee of its peer group of funds, the Fund’s Management Fee Less Non-Management Expenses was lower than the average and median contractual management fee of its peer group of Funds. The Board further considered that the Fund’s total annual operating expense ratio was lower than the average and median total annual operating expense ratio of its peer group and in the second quartile of its peer group.

For the Great-West Conservative Profile Fund I, the Board noted that, although the Fund’s Contractual Management Fee was greater than the average and the median contractual management fee of its peer group of funds, the Fund’s Management Fee Less Non-Management Expenses was lower than the average and median contractual management fee of its peer group of Funds. The Board further considered that the Fund’s total annual operating expense ratio was lower than average and the median total annual operating expense ratio of its peer group and peer universe of funds and in the second quartile of its peer group.

The Board also received information regarding the fees charged by GWCM to separate accounts and other products managed by GWCM and noted that the funds within Great-West Funds have higher advisory fees than the separate accounts and other products managed by GWCM because of the increased regulatory and compliance requirements of the funds and the differences in the range of services provided to the funds and to such other clients.

The Board further considered the overall financial soundness of GWCM and the profits estimated to have been realized by GWCM and its affiliates. The Board reviewed the financial statements and profitability information from GWCM. In evaluating the information provided by GWCM, the Board noted that there is no recognized standard or uniform methodology for determining profitability for this purpose. The Board noted that there are limitations inherent in allocating costs and calculating profitability for an organization such as GWCM, and that it is difficult to make comparisons of profitability between advisers because comparative information is not generally publicly available. The Board also reviewed GWCM’s profitability information compared against the revenues of certain publicly-traded advisers to fund complexes and considered that while GWCM’s profitability is reasonable, profitability information is affected by numerous factors, including the adviser’s organization, capital structure and cost of capital, the types of funds it manages, its mix of business, and the adviser’s assumptions regarding allocations of revenue and expenses. Based on the information provided, the Board concluded that the costs of the services provided and the profits estimated to have been realized by GWCM were reasonable in relation to the nature, extent and quality of the services provided.

Economies of Scale

The Board considered the extent to which economies of scale may be realized as the Funds grow and whether current fee levels reflect these economies of scale for the benefit of investors. In evaluating economies of scale, the Board considered, among other things, the current level of management fees payable by the Funds, comparative fee information, the profitability and financial condition of GWCM, and the current level of Fund assets. Based on the information provided, the Board concluded that, although there were no current breakpoints in the management fee, any economies of scale currently being realized were appropriately being reflected in the management fee paid by the Funds.

Other Factors

The Board considered ancillary benefits derived or to be derived by GWCM from its relationship with the Fund as part of the total mix of information evaluated by the Board. The Board noted where services were provided to the Funds by an affiliate of GWCM. The Board took into account the fact that the Funds are used as a funding vehicle under variable life and annuity contracts offered by insurance companies affiliated with GWCM and as a funding vehicle under retirement plans for which affiliates of GWCM may provide various retirement plan services. Additionally, the Board considered the extent to which GWCM’s parent company, Great-West Life and Annuity Insurance Company, and its affiliated insurance companies may receive benefits under the federal income tax laws with respect to tax deductions and credits. The Board concluded that each Fund’s management fees were reasonable, taking into account any ancillary benefits derived by GWCM.

Conclusion

Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of the Funds.

ITEM 2.  CODE OF ETHICS.

Not required in filing.

ITEM 3.  AUDIT COMMITTEE FINANCIAL EXPERT.

Not required in filing.

ITEM 4.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not required in filing.

ITEM 5.  AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6.  INVESTMENTS.

(a) The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

(b) Not applicable.

ITEM 7.  DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8.  PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.  PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors as described in general instructions on Form N-CSR, Item 10.

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.

 

(c) 

The registrant invests a portion of its assets in a guaranteed fixed interest contract issued by an affiliated insurance company. The registrant was improperly classifying the daily interest income on the guaranteed fixed interest contract as unrealized gain rather than interest income, which impacted classification of distributions. There was no NAV impact to shareholders; the registrant’s shareholders are in tax-deferred products and, therefore, are not impacted by the distribution classification in the filing of their personal tax returns. However, the registrant’s management, the registrant’s adviser and the registrant’s auditors determined the registrant’s and the adviser’s procedures for oversight of the financial reporting related to the guaranteed fixed interest contract constituted a significant deficiency in internal controls over financial reporting. Registrant and its management have enhanced the registrant’s and the adviser’s processes related to the financial reporting of the guaranteed fixed interest contract.

ITEM 12.  EXHIBITS.

(a)        (1) Not required in filing.

(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.

(b) 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/ M.T.G. Graye

 

M.T.G. Graye

  President and Chief Executive Officer

Date:    

 

August 26, 2013

 

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/ M.T.G. Graye

 

M.T.G. Graye

  President and Chief Executive Officer

Date:    

 

August 26, 2013

 

 

By:

 

/s/ M.C. Maiers

 

M.C. Maiers

  Chief Financial Officer & Treasurer

Date:    

 

August 26, 2013

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