KP Fixed Income Fund

(Registrant)

The KP Funds

By (Signature and Title)

/s/ Michael Beattie

Michael Beattie, President

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 811-22838

The KP Funds

(Exact name of registrant as specified in charter)

SEI Investments

One Freedom Valley Drive

Oaks, PA 19456

(Address of principal executive offices) (Zip code)

SEI Investments

One Freedom Valley Drive

Oaks, PA 19456

(Name and address of agent for service)

Registrant’s telephone number, including area code: 800-342-5734

Date of fiscal year end: December 31, 2017

Date of reporting period: December 31, 2017

Item 1.

Reports to Stockholders.


The KP Funds

LOGO

KP Retirement Path 2015 Fund: KPRAX

KP Retirement Path 2020 Fund: KPRBX

KP Retirement Path 2025 Fund: KPRCX

KP Retirement Path 2030 Fund: KPRDX

KP Retirement Path 2035 Fund: KPREX

KP Retirement Path 2040 Fund: KPRFX

KP Retirement Path 2045 Fund: KPRGX

KP Retirement Path 2050 Fund: KPRHX

KP Retirement Path 2055 Fund: KPRIX

KP Retirement Path 2060 Fund: KPRJX

KP Large Cap Equity Fund: KPLCX

KP Small Cap Equity Fund: KPSCX

KP International Equity Fund: KPIEX

KP Fixed Income Fund: KPFIX

Annual Report

December 31, 2017


THE KP FUNDS		December 31, 2017



TABLE OF CONTENTS

Shareholder’s Letter			1

Management Discussion and Fund Performance			2

Schedules of Investments			19

Statements of Assets and Liabilities			132

Statements of Operations			136

Statements of Changes in Net Assets			140

Financial Highlights			147

Notes to Financial Statements			149

Report of Independent Registered Public Accounting Firm			160

Trustees and Officers of the Trust			162

Disclosure of Fund Expenses			170

Board Considerations in Approving and Renewing the Advisory and Sub-Advisor Agreements			172

Notice to Shareholders			177

The Funds file their complete schedules of investments with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after period end. The 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.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 855-457-3637 (855-4KPFNDS); and (ii) on the Commission’s website at http://www.sec.gov.


THE KP FUNDS		December 31, 2017

Dear Shareholder,

2017 was a very favorable year for investment market participants of all types. Stock markets hit a number of record highs, adding trillions of dollars to global market capitalization. U.S. consumer confidence remained near a 17-year high and unemployment at a 17-year low. Risk appetite was robust, fueling returns for traditional and non-traditional assets. In the public realm, emerging market equities outperformed developed markets. High yield corporate bonds posted the best returns within fixed income. Large Cap US stocks as measured by the Russell 1000 Index returned 21.69% for the year. Non-US equity markets fared even better with the MSCI ACWI ex-US IMI Equity Index gaining 27.81% for the year and the MSCI Emerging Markets Equity Index returning 37.75%. Fixed income returns were positive for the year with the Bloomberg Barclays Aggregate Index returning 3.54%. US REITs (as measured by the MSCI US REIT Index) returned 5.07% for the year, while Commodities (as measured by the Bloomberg Commodity Index) increased by 0.75%. The year closed with the passage of the largest tax reform bill in 30 years, lending further support to stocks given the significant cut in corporate tax rates. Estimates as to the likely effect of the package on U.S. annual GDP growth vary from "negligible" to upwards of 3%, while the package is expected to add $1.5 trillion to the budget deficit over 10 years.

The KP Retirement Path Funds were launched during the early part of January 2014 to provide participants in KP-sponsored defined contribution plans with diversified exposure to all of these asset classes, as well as a number of others including small cap US equity, natural resource equity, global listed infrastructure, Treasury Inflation Protected Securities, floating rate bank loans, emerging market debt, and short term bonds. Each of the 10 KP Retirement Path Funds is designed with a specific retirement date in mind, and the asset allocation is automatically adjusted over time to help shareholders achieve the appropriate balance between long-term capital growth, inflation protection, capital preservation and current income for each stage of their savings and investing career.

Since the KP Retirement Path Funds’ inception we have been pleased with the performance of the operational infrastructure that was assembled to coordinate the activities of the 21 different investment management organizations responsible for the management of the Funds’ assets. We have also been satisfied from an investment performance perspective. In terms of absolute performance, fiscal year 2017 was characterized by strong returns across the major asset classes. Consequently the returns for the KP Retirement Path Funds were all positive for the year, ranging from 10.03% (2015 Fund) to 21.66% (2060 Fund). The Funds outperformed their strategic benchmarks in fiscal year 2017, and as a result, also outperformed their benchmarks by between 0.03%-0.17% since their inception in January of 2014 (through December 31, 2017).

We continue to believe that the KP Retirement Path Funds are well-designed and include a diverse set of complementary asset classes and strategies managed by a highly capable team of sub-advisors. We remain confident that the Funds are well-positioned to achieve their objectives going into 2018 and beyond.

Respectfully Submitted,




Gregory C. Allen		Ivan S. Cliff, CFA
Portfolio Manager		Portfolio Manager
CEO, President, Chief Research Officer		Director of Research

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. For performance data current to the most recent month end, please call 855-4-KPFNDS.


THE KP FUNDS		December 31, 2017


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Performance for the KP Retirement Path Funds for Fiscal Year 2017 was positive across the board on an absolute basis as well as relative to the Funds’ strategic benchmarks. In order to better understand the sources of outperformance for the year, it is helpful to review the design of the Funds.

Each of the KP Retirement Path Funds is itself a “fund-of-funds”. This means that each of the Funds is composed of a collection of sub-funds, each with a specific purpose that contributes to the overall design. At the highest level these sub-funds can be grouped into six major categories which include: large cap US equities, small cap US equities, international equities, broad fixed income, real (or inflation sensitive) assets, and short-term fixed income. Each of the KP Retirement Path Funds varies its exposure to these asset categories over time to ensure that it is achieving the appropriate balance of capital appreciation, current income, inflation protection, and capital preservation. The 2060 Fund, for example, is primarily invested in large cap US equity, small cap US equity, and international equity. The 2015 Fund, on the other hand, has a much greater emphasis on broad fixed income, real assets, and short-term fixed income.

The performance of each Fund is compared to its own strategic benchmark. The strategic benchmarks are designed to reflect the target asset allocation for each Fund, while also assuming that each of the underlying asset classes is implemented using a passive index. While Management makes extensive use of passive strategies in the Funds’ implementation to keep costs low, we also employ a number of active strategies in our attempt to add value relative to the strategic benchmarks. Management does not attempt to add value by trying to time markets using tactical asset allocation. As a result, most of the relative performance of the Funds versus their strategic benchmarks can be explained by the relative performance of the strategies within each of the six underlying asset classes. Given this understanding, we can now put the relative performance of the KP Retirement Path Funds into perspective by examining the relative performance of each of the underlying asset classes.

The KP Retirement Path Funds achieve their large cap US equity exposure through the use of the KP Large Cap Equity Fund. This Fund is benchmarked to the Russell 1000 Index. The Fund employs five strategies including: a passive S&P 500 index strategy; an active large cap growth strategy; an active large cap value strategy; and two active large cap blend strategies. The Fund returned 23.84% for the year versus 21.69% for the benchmark. This outperformance of 2.15% at the Fund level was largely explained by the outperformance of the active large cap growth strategy and the active large cap value strategy. These strategies beat their benchmarks for the year by 8.26% and 4.76% respectively. Since large cap is a significant part of the asset allocation for all of the KP Retirement Path Funds, this was a meaningful source of outperformance across the entire fund family.

The KP Retirement Path Funds achieve their small cap US equity exposure through the use of the KP Small Cap Equity Fund. This Fund is benchmarked to the Russell 2000 Index. The Fund employs seven strategies including a passive S&P 600 strategy, two active small cap growth strategies, two active small cap value strategies, and two active small cap blend strategies. The Fund returned 17.95% for the year versus 14.65% for the benchmark. The outperformance of 3.30% was largely explained by the outperformance of one active growth strategy, both of the actively managed value strategies, and one of the active small cap blend strategies. These strategies beat their benchmarks by a range of 4.57% to 13.09% with an average outperformance of 7.89%. Small cap is a relatively small part of the asset allocation for the KP Retirement Path Funds, but in combination with the relatively large outperformance versus its index, this contributed to the outperformance across the fund family.

The KP Retirement Path Funds achieve their international equity exposure through the use of the KP International Equity Fund. This Fund is benchmarked to the MSCI ACWI ex-US IMI Index. The Fund employs seven strategies including two passive strategies: MSCI World ex-US and MSCI World ex-US Small Cap Index strategies. The Fund also employs five active strategies including two active MSCI EAFE strategies, an active MSCI ACWI ex-US strategy, and two active emerging markets strategies. The Fund returned 28.95% for the year versus 27.66% for the benchmark. This outperformance of 1.29% was largely attributable to an active EAFE strategy which outpaced its benchmark by 3.92% and an emerging markets strategy, which outperformed its benchmark by 4.32%. Because international equity is a large part of the asset allocation for the KP Retirement Path Funds, this was a noteworthy source of relative outperformance across the fund family.

The KP Retirement Path Funds achieve their broad fixed income exposure through the use of the KP Fixed Income Fund. This Fund is benchmarked to the Bloomberg Barclays Capital US Aggregate Bond Index. The Fund employs four strategies including a passive Bloomberg Barclays Capital US Aggregate Bond Index strategy, an active Bloomberg


THE KP FUNDS		December 31, 2017


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Barclays Aggregate strategy, an active emerging markets debt strategy, and an active bank loan strategy. The KP Fixed Income Fund returned 4.41% for the year versus 3.54% for the benchmark. This outperformance of 0.87% was primarily due to the outperformance of the active emerging markets debt strategy, which outperformed its benchmark by 2.56%, as well as the contributions of the active Bloomberg Barclays and active bank loan strategies. Because fixed income is a large part of the asset allocation for the KP Retirement Path Funds, this outperformance had a positive impact on the relative performance of the KP Retirement Path Fund series.

The KP Retirement Path Funds achieve their real assets exposure through the use of a diversified collection of non-affiliated sub-funds each specializing in a different inflation-sensitive strategy. Collectively these strategies returned 7.26% over the measurement period versus 8.52% for their composite benchmark. The seven underlying real assets funds had a wide range of returns, from 2.73% for the commodities fund to 20.80% for the global listed infrastructure fund. Because real assets are a relatively small part of the asset allocation for the KP Retirement Path Funds, they had only a modest impact on the relative performance across the series.

The KP Retirement Path Funds achieve their short-term fixed income exposure through the use of low-cost index strategies. These sub-funds performed in line with their benchmarks and did not have a material effect on the relative performance across the series.

The tables that follow detail the performance of each of the KP Retirement Path Funds over various periods ended December 31, 2017.

To determine if one of these funds is an appropriate investment for you, carefully consider the fund's investment objectives, risk factors, charges, and expenses before investing. This and other information may be found in the fund's summary and full prospectuses, which may be obtained by calling (855)4-KPFNDS or by visiting the website at www.kp-funds.com. Please read the prospectus carefully before investing.

The KP Retirement Path Funds and the KP Core Funds are mutual funds. They are part of The KP Funds Series Trust, an open-end management investment company that offers shares of diversified portfolios. The funds are advised by Callan LLC, a registered investment advisor. They are administered by SEI Investments Global Funds Services and distributed by SEI investments Distribution Co., which are not affiliated with Callan LLC.

Only participants in the Kaiser Permanente defined contribution plans and 403(b) plans can invest in the funds.

There can be no assurance that a Fund will achieve its stated objectives. An investor may experience losses, at any time, including near, at or after the Fund's target year. In addition, there is no guarantee that an investor's investment in the fund will provide any income at or through the years following the Fund's target year in amounts adequate to meet the investor's goals or retirement needs.

Investing involves risk including loss of principal. Bond and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Mortgage-backed securities are subject to pre-payment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities. Non-investment grade bonds involve greater risks of default and are more volatile than investment grade securities, due to the speculative nature of the investment. International investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. These risks are heightened when investing in emerging markets or in a single state.

Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Underlying Fund would be adversely affected. The use of leverage by the fund managers may accelerate the velocity of potential losses. Furthermore, the use of derivatives are often more volatile than other investments and magnify the Fund's gains or losses. Diversification does not protect against market loss.


THE KP FUNDS		December 31, 2017


MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Definition of Comparitive Indices

The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the Russell 3000 Index.

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The MSCI ACWI ex-US Index captures large and mid cap representation across 22 of 23 Developed Markets countries (excluding the United States) and 24 Emerging Markets countries. With 1,866 constituents, the index covers approximately 85% of the global equity opportunity set outside the US.

The MSCI ACWI ex-US Investable Market Index (IMI) captures large, mid and small cap representation across 22 of 23 Developed Markets countries (excluding the United States) and 24 Emerging Markets countries. With 6,216 constituents, the index covers approximately 99% of the global equity opportunity set outside the US.

The MSCI EAFE Index captures large, mid, small and micro cap representation across 21 Developed Markets countries (excluding Canada and the United States).

The MSCI Emerging Markets Equity Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based and measures the performance of the U.S. investment grade bond market. It invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States – including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year.

The S&P 500 Index is based on market capitalizations of 500 large companies having common stock listed on the New York Stock Exchange or NASDAQ.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2015 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2015 Fund, Institutional Class		10.03	%		5.06	%		4.78	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2015 Fund Benchmark		9.17	%		4.49	%		4.62	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2020 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2020 Fund, Institutional Class		12.04	%		5.84	%		5.40	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2020 Fund Benchmark		10.98	%		5.24	%		5.23	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2025 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2025 Fund, Institutional Class		14.59	%		6.79	%		6.11	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2025 Fund Benchmark		13.27	%		6.18	%		5.95	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2030 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2030 Fund, Institutional Class		16.93	%		7.67	%		6.73	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2030 Fund Benchmark		15.53	%		7.08	%		6.64	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2035 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2035 Fund, Institutional Class		18.93	%		8.42	%		7.31	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2035 Fund Benchmark		17.37	%		7.84	%		7.24	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2040 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2040 Fund, Institutional Class		20.28	%		8.89	%		7.68	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2040 Fund Benchmark		18.58	%		8.31	%		7.60	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2045 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2045 Fund, Institutional Class		21.00	%		9.14	%		7.82	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2045 Fund Benchmark		19.29	%		8.57	%		7.79	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2050 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2050 Fund, Institutional Class		21.52	%		9.32	%		7.95	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2050 Fund Benchmark		19.72	%		8.71	%		7.90	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2055 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2055 Fund, Institutional Class		21.59	%		9.36	%		8.00	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2055 Fund Benchmark		19.85	%		8.75	%		7.93	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2060 Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Retirement Path 2060 Fund, Institutional Class		21.66	%		9.37	%		8.04	%
S&P 500 Index		21.83	%		11.41	%		12.13	%
Custom Retirement 2060 Fund Benchmark		19.85	%		8.75	%		7.93	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Large Cap Equity Fund, Institutional Class		23.84	%		11.93	%		11.84	%
Russell 1000 Index		21.69	%		11.23	%		11.85	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Small Cap Equity Fund, Institutional Class		17.95	%		9.98	%		8.53	%
Russell 2000 Index		14.65	%		9.96	%		8.70	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP International Equity Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP International Equity Fund, Institutional Class		28.95	%		8.90	%		5.60	%
International Equity Benchmark†		27.66	%		7.96	%		5.17	%
MSCI ACWI ex-US IMI Index		27.81	%		8.38	%		5.40	%
MSCI ACWI ex-US Index		27.19	%		7.83	%		5.07	%

LOGO

*	The Fund commenced operations on January 10, 2014.

†

The Fund changed its benchmark index to the MSCI ACWI ex-US IMI Index as of April 1, 2017. The International Equity Benchmark consists of the MSCI ACWI ex-US Index through March 31, 2017 and MSCI ACWI ex-US IMI Index going forward. The new benchmark index more closely aligns with the strategy and investments of the Fund.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund
MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited):

Growth of a $10,000 Investment


	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 2017*
	One Year Return			Three Year Return			Annualized Inception to Date
KP Fixed Income Fund, Institutional Class		4.41	%		3.00	%		2.94	%
Bloomberg Barclays U.S. Aggregate Bond Index		3.54	%		2.24	%		2.99	%

LOGO

*	The Fund commenced operations on January 10, 2014.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on page 4.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2015 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 73.0%
KP Fixed Income Fund		17,816,627	$	179,057
KP International Equity Fund		3,269,944		36,623
KP Large Cap Equity Fund		6,883,016		89,342
KP Small Cap Equity Fund		1,338,309		16,167

Total Affiliated Registered Investment Companies (Cost $298,681) (000)				321,189

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 27.0%
DFA Commodity Strategy Portfolio		727,914		4,338
DFA International Real Estate Securities Portfolio		869,267		4,520
Lazard Global Listed Infrastructure Portfolio		264,119		4,226
T. Rowe Price Institutional Floating Rate Fund		424,537		4,254


Description	Shares		Value (000)
T. Rowe Price New Era Fund, Cl I		122,909	$	4,486
Vanguard Inflation-Protected Securities Fund		1,287,745		13,431
Vanguard REIT Index Fund		491,610		8,943
Vanguard Short-Term Bond Index Fund		4,000,162		41,522
Vanguard Short-Term Inflation-Protected Securities Index Fund		1,339,957		32,802

Total Unaffiliated Registered Investment Companies (Cost $116,625) (000)				118,522

Total Investments In Securities — 100.0% (Cost $415,306) (000)			$	439,711

Percentages are based on Net Assets of $439,687 (000).

Cl — Class

REIT — Real Estate Investment Trust

As of December 31, 2017, all of the Fund’s investments were considered Level 1 in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles.

For the year ended December 31, 2017, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year. During the year ended December 31, 2017, there were no Level 3 investments.

For further financial information on individual registered investment companies, available upon request at no charge, please go to the Securities Exchange Commission’s website at http://www.sec.gov or the individual registered investment company’s website.

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

159,878

66,534

(50,705

)

2,707

643

179,057

4,206

KP International Equity Fund

27,218

14,044

(12,954

)

7,385

930

36,623

839

161

KP Large Cap Equity Fund

79,257

23,145

(26,504

)

7,560

5,884

89,342

1,182

4,580

KP Small Cap Equity Fund

13,182

6,382

(4,666

)

372

897

16,167

1,345

Totals

279,535

110,105

(94,829

)

18,024

8,354

321,189

6,311

6,139

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2020 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 76.7%
KP Fixed Income Fund		30,834,878	$	309,890
KP International Equity Fund		9,044,483		101,298
KP Large Cap Equity Fund		16,590,079		215,339
KP Small Cap Equity Fund		3,844,911		46,447

Total Affiliated Registered Investment Companies (Cost $615,588) (000)				672,974

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 23.3%
DFA Commodity Strategy Portfolio		1,488,030		8,869
DFA International Real Estate Securities Portfolio		1,773,858		9,224
Lazard Global Listed Infrastructure Portfolio		539,675		8,635
T. Rowe Price Institutional Floating Rate Fund		867,419		8,692


Description	Shares		Value (000)
T. Rowe Price New Era Fund, Cl I		250,913	$	9,158
Vanguard Inflation-Protected Securities Fund		2,496,573		26,039
Vanguard REIT Index Fund		952,829		17,331
Vanguard Short-Term Bond Index Fund		6,436,374		66,810
Vanguard Short-Term Inflation-Protected Securities Index Fund		2,036,260		49,848

Total Unaffiliated Registered Investment Companies (Cost $201,960) (000)				204,606

Total Investments In Securities — 100.0% (Cost $817,548) (000)			$	877,580

Percentages are based on Net Assets of $877,534 (000).

Cl — Class

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

243,375

98,937

(37,085

)

4,172

491

309,890

7,276

KP International Equity Fund

78,221

25,522

(24,087

)

19,701

1,941

101,298

2,320

443

KP Large Cap Equity Fund

150,728

73,551

(37,720

)

20,138

8,642

215,339

2,848

10,986

KP Small Cap Equity Fund

42,361

9,080

(8,384

)

1,708

1,682

46,447

239

3,845

Totals

514,685

207,090

(107,276

)

45,719

12,756

672,974

12,683

15,364

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2025 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 81.4%
KP Fixed Income Fund		30,612,325	$	307,654
KP International Equity Fund		14,720,255		164,867
KP Large Cap Equity Fund		24,148,051		313,441
KP Small Cap Equity Fund		6,414,296		77,485

Total Affiliated Registered Investment Companies (Cost $778,219) (000)				863,447

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 18.6%
DFA Commodity Strategy Portfolio		1,813,076		10,806
DFA International Real Estate Securities Portfolio		2,160,657		11,235
Lazard Global Listed Infrastructure Portfolio		657,656		10,522
T. Rowe Price Institutional Floating Rate Fund		1,057,036		10,592


Description	Shares		Value (000)
T. Rowe Price New Era Fund, Cl I		305,590	$	11,154
Vanguard Inflation-Protected Securities Fund		2,973,717		31,016
Vanguard REIT Index Fund		1,134,769		20,642
Vanguard Short-Term Bond Index Fund		5,111,473		53,057
Vanguard Short-Term Inflation-Protected Securities Index Fund		1,589,117		38,901

Total Unaffiliated Registered Investment Companies (Cost $195,309) (000)				197,925

Total Investments In Securities — 100.0% (Cost $973,528) (000)			$	1,061,372

Percentages are based on Net Assets of $1,061,313 (000).

Cl — Class

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

219,574

99,287

(15,279

)

3,822

250

307,654

7,207

KP International Equity Fund

141,328

24,904

(35,501

)

32,142

1,994

164,867

3,771

719

KP Large Cap Equity Fund

196,194

111,437

(33,234

)

31,199

7,845

313,441

4,139

15,955

KP Small Cap Equity Fund

71,689

16,806

(16,303

)

2,386

2,907

77,485

399

6,400

Totals

628,785

252,434

(100,317

)

69,549

12,996

863,447

15,516

23,163

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2030 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 86.3%
KP Fixed Income Fund		23,771,810	$	238,907
KP International Equity Fund		18,192,363		203,754
KP Large Cap Equity Fund		25,987,145		337,314
KP Small Cap Equity Fund		7,799,680		94,220

Total Affiliated Registered Investment Companies (Cost $776,445) (000)				874,195

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 13.7%
DFA Commodity Strategy Portfolio		1,631,110		9,721
DFA International Real Estate Securities Portfolio		1,943,561		10,106
Lazard Global Listed Infrastructure Portfolio		591,658		9,467
T. Rowe Price Institutional Floating Rate Fund		951,166		9,531


Description	Shares		Value (000)
T. Rowe Price New Era Fund, Cl I		274,789	$	10,030
Vanguard Inflation-Protected Securities Fund		2,644,108		27,578
Vanguard REIT Index Fund		1,008,896		18,351
Vanguard Short-Term Bond Index Fund		2,603,643		27,026
Vanguard Short-Term Inflation-Protected Securities Index Fund		711,996		17,430

Total Unaffiliated Registered Investment Companies (Cost $136,938) (000)				139,240

Total Investments In Securities — 100.0% (Cost $913,383) (000)			$	1,013,435

Percentages are based on Net Assets of $1,013,379 (000).

Cl — Class

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

155,165

90,654

(9,898

)

2,788

198

238,907

5,590

KP International Equity Fund

190,200

33,375

(62,092

)

40,821

1,450

203,754

4,656

888

KP Large Cap Equity Fund

210,598

112,088

(26,246

)

34,655

6,219

337,314

4,450

17,160

KP Small Cap Equity Fund

89,053

22,414

(23,530

)

2,314

3,969

94,220

485

7,777

Totals

645,016

258,531

(121,766

)

80,578

11,836

874,195

15,181

25,894

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2035 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 90.5%
KP Fixed Income Fund		21,591,121	$	216,991
KP International Equity Fund		24,750,672		277,208
KP Large Cap Equity Fund		31,100,176		403,680
KP Small Cap Equity Fund		10,589,761		127,924

Total Affiliated Registered Investment Companies (Cost $900,158) (000)				1,025,803

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 9.5%
DFA Commodity Strategy Portfolio		1,623,450		9,676
DFA International Real Estate Securities Portfolio		1,934,539		10,060
Lazard Global Listed Infrastructure Portfolio		588,924		9,423
T. Rowe Price Institutional Floating Rate Fund		946,743		9,486


Description	Shares		Value (000)
T. Rowe Price New Era Fund, Cl I		273,496	$	9,983
Vanguard Inflation-Protected Securities Fund		2,638,166		27,516
Vanguard REIT Index Fund		1,006,562		18,308
Vanguard Short-Term Bond Index Fund		830,590		8,622
Vanguard Short-Term Inflation-Protected Securities Index Fund		176,623		4,324

Total Unaffiliated Registered Investment Companies (Cost $104,972) (000)				107,398

Total Investments In Securities — 100.0% (Cost $1,005,130) (000)			$	1,133,201

Percentages are based on Net Assets of $1,133,140 (000).

Cl — Class

REIT — Real Estate Investment Trust

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

132,082

89,991

(7,672

)

2,443

147

216,991

5,085

KP International Equity Fund

248,350

46,186

(73,415

)

54,715

1,372

277,208

6,342

1,209

KP Large Cap Equity Fund

263,591

116,601

(24,911

)

42,566

5,833

403,680

5,332

20,547

KP Small Cap Equity Fund

115,902

31,996

(28,293

)

3,537

4,782

127,924

659

10,565

Totals

759,925

284,774

(134,291

)

103,261

12,134

1,025,803

17,418

32,384

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2040 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 93.3%
KP Fixed Income Fund		16,391,554	$	164,735
KP International Equity Fund		25,930,409		290,421
KP Large Cap Equity Fund		29,734,507		385,954
KP Small Cap Equity Fund		10,955,463		132,342

Total Affiliated Registered Investment Companies (Cost $849,451) (000)				973,452

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 6.7%
DFA Commodity Strategy Portfolio		1,209,582		7,209
DFA International Real Estate Securities Portfolio		1,441,482		7,496
Lazard Global Listed Infrastructure Portfolio		438,820		7,021


Description	Shares		Value (000)
T. Rowe Price Institutional Floating Rate Fund		705,519	$	7,069
T. Rowe Price New Era Fund, Cl I		203,738		7,436
Vanguard Inflation-Protected Securities Fund		1,961,531		20,459
Vanguard REIT Index Fund		748,298		13,612

Total Unaffiliated Registered Investment Companies (Cost $68,347) (000)				70,302

Total Investments In Securities — 100.0% (Cost $917,798) (000)			$	1,043,754

Percentages are based on Net Assets of $1,043,698 (000).

Cl — Class

REIT — Real Estate Investment Trust

For the year ended December 31, 2017, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended December 31, 2017, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from
Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

88,789

80,686

(6,622

)

1,749

133

164,735

3,860

KP International Equity Fund

248,249

52,293

(67,622

)

56,163

1,338

290,421

6,644

1,266

KP Large Cap Equity Fund

261,814

100,312

(22,017

)

40,745

5,100

385,954

5,098

19,652

KP Small Cap Equity Fund

113,607

36,372

(25,957

)

3,903

4,417

132,342

681

10,934

Totals

712,459

269,663

(122,218

)

102,560

10,988

973,452

16,283

31,900

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2045 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 94.7%
KP Fixed Income Fund		10,251,299	$	103,026
KP International Equity Fund		20,268,054		227,002
KP Large Cap Equity Fund		22,421,360		291,029
KP Small Cap Equity Fund		8,680,151		104,856

Total Affiliated Registered Investment Companies (Cost $634,648) (000)				725,913

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 5.3%
DFA Commodity Strategy Portfolio		711,795		4,242
DFA International Real Estate Securities Portfolio		847,657		4,408
Lazard Global Listed Infrastructure Portfolio		258,151		4,130


Description	Shares		Value (000)
T. Rowe Price Institutional Floating Rate Fund		415,042	$	4,159
T. Rowe Price New Era Fund, Cl I		119,854		4,375
Vanguard Inflation-Protected Securities Fund		1,132,835		11,815
Vanguard REIT Index Fund		432,143		7,861

Total Unaffiliated Registered Investment Companies (Cost $39,851) (000)				40,990

Total Investments In Securities — 100.0% (Cost $674,499) (000)			$	766,903

Percentages are based on Net Assets of $766,861 (000).

Cl — Class

REIT — Real Estate Investment Trust

For the year ended December 31, 2017, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended December 31, 2017, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

45,430

61,135

(4,605

)

975

103,026

2,415

KP International Equity Fund

186,139

48,360

(50,807

)

42,664

646

227,002

5,195

988

KP Large Cap Equity Fund

195,581

78,140

(16,216

)

29,795

3,729

291,029

3,846

14,792

KP Small Cap Equity Fund

80,834

32,449

(14,677

)

3,597

2,653

104,856

540

8,648

Totals

507,984

220,084

(86,305

)

77,031

7,119

725,913

11,996

24,458

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2050 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 95.1%
KP Fixed Income Fund		4,729,993	$	47,536
KP International Equity Fund		11,304,959		126,616
KP Large Cap Equity Fund		12,416,162		161,162
KP Small Cap Equity Fund		4,820,316		58,229

Total Affiliated Registered Investment Companies (Cost $348,269) (000)				393,543

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 4.9%
DFA Commodity Strategy Portfolio		361,358		2,154
DFA International Real Estate Securities Portfolio		429,939		2,236
Lazard Global Listed Infrastructure Portfolio		131,030		2,096


Description	Shares		Value (000)
T. Rowe Price Institutional Floating Rate Fund		210,627	$	2,110
T. Rowe Price New Era Fund, Cl I		60,826		2,220
Vanguard Inflation-Protected Securities Fund		556,564		5,805
Vanguard REIT Index Fund		212,297		3,862

Total Unaffiliated Registered Investment Companies (Cost $19,953) (000)				20,483

Total Investments In Securities — 100.0% (Cost $368,222) (000)			$	414,026

Percentages are based on Net Assets of $414,001 (000).

Cl — Class

REIT — Real Estate Investment Trust

For the year ended December 31, 2017, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended December 31, 2017, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

20,319

28,827

(2,015

)

364

47,536

1,115

KP International Equity Fund

90,509

37,376

(23,783

)

22,377

137

126,616

2,899

549

KP Large Cap Equity Fund

95,036

57,380

(8,377

)

15,179

1,944

161,162

2,131

8,174

KP Small Cap Equity Fund

38,852

22,950

(6,683

)

1,917

1,193

58,229

300

4,793

Totals

244,716

146,533

(40,858

)

39,837

3,315

393,543

6,445

13,530

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2055 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
AFFILIATED REGISTERED INVESTMENT COMPANIES — 95.1%
KP Fixed Income Fund		1,190,474	$	11,964
KP International Equity Fund		3,091,412		34,624
KP Large Cap Equity Fund		3,384,114		43,926
KP Small Cap Equity Fund		1,300,588		15,711

Total Affiliated Registered Investment Companies (Cost $95,877) (000)				106,225

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 4.9%
DFA Commodity Strategy Portfolio		100,907		601
DFA International Real Estate Securities Portfolio		119,778		623
Lazard Global Listed Infrastructure Portfolio		36,551		585


Description	Shares		Value (000)
T. Rowe Price Institutional Floating Rate Fund		58,755	$	589
T. Rowe Price New Era Fund, Cl I		16,964		619
Vanguard Inflation-Protected Securities Fund		144,761		1,510
Vanguard REIT Index Fund		55,196		1,004

Total Unaffiliated Registered Investment Companies (Cost $5,450) (000)				5,531

Total Investments In Securities —100.0% (Cost $101,327) (000)			$	111,756

Percentages are based on Net Assets of $111,748 (000).

Cl — Class

REIT — Real Estate Investment Trust

For the year ended December 31, 2017, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended December 31, 2017, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

4,327

8,225

(654

)

—

11,964

281

KP International Equity Fund

19,263

15,671

(5,657

)

5,263

34,624

795

150

KP Large Cap Equity Fund

20,224

22,299

(2,533

)

3,567

369

43,926

581

2,219

KP Small Cap Equity Fund

8,265

8,578

(1,814

)

467

215

15,711

1,288

Totals

52,079

54,773

(10,658

)

9,363

668

106,225

1,738

3,660

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Retirement Path 2060 Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)

AFFILIATED REGISTERED INVESTMENT COMPANIES — 95.1%
KP Fixed Income Fund		244,981	$	2,462
KP International Equity Fund		636,009		7,123
KP Large Cap Equity Fund		695,827		9,032
KP Small Cap Equity Fund		267,460		3,231

Total Affiliated Registered Investment Companies (Cost $20,285) (000)				21,848

UNAFFILIATED REGISTERED INVESTMENT COMPANIES — 4.9%
DFA Commodity Strategy Portfolio		21,445		128
DFA International Real Estate Securities Portfolio		25,416		132
Lazard Global Listed Infrastructure Portfolio		7,762		124


Description	Shares		Value (000)
T. Rowe Price Institutional Floating Rate Fund		12,479	$	125
T. Rowe Price New Era Fund, Cl I		3,601		131
Vanguard Inflation-Protected Securities Fund		28,660		299
Vanguard REIT Index Fund		10,925		199

Total Unaffiliated Registered Investment Companies (Cost $1,125) (000)				1,138

Total Investments In Securities — 100.0% (Cost $21,410) (000)			$	22,986

Percentages are based on Net Assets of $22,985 (000).

Cl — Class

REIT — Real Estate Investment Trust

For the year ended December 31, 2017, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the period. During the year ended December 31, 2017, there were no Level 3 investments.

The following is a summary of the transactions with affiliates for the year ended December 31, 2017 (000):

Value
12/31/2016

Purchases
at Cost

Proceeds
from Sales

Change in
Unrealized
Appreciation
(Depreciation)

Realized
Gain
(Loss)

Value
12/31/2017

Dividend
Income

Capital Gain
Distributions

KP Fixed Income Fund

718

2,063

(326

)

2,462

KP International Equity Fund

3,197

4,589

(1,642

)

774

205

7,123

163

KP Large Cap Equity Fund

3,356

6,225

(1,245

)

512

184

9,032

118

452

KP Small Cap Equity Fund

1,371

2,366

(618

)

(22

)

134

3,231

263

Totals

8,642

15,243

(3,831

)

1,267

527

21,848

356

746

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
COMMON STOCK — 98.1%
Consumer Discretionary — 12.5%
Advance Auto Parts		6,533	$	651
Amazon.com*		50,842		59,458
AMC Networks, Cl A*		13,063		706
Aptiv*		82,267		6,979
AutoZone*		832		592
Bed Bath & Beyond		6,790		149
Best Buy		36,617		2,507
BorgWarner		5,697		291
Brunswick		10,048		555
Burlington Stores*		3,621		446
CalAtlantic Group		2,811		159
CarMax*		5,489		352
Carnival		44,109		2,928
CBS, Cl B		10,641		628
Charter Communications, Cl A*		5,800		1,949
Chipotle Mexican Grill, Cl A*		751		217
Comcast, Cl A		389,529		15,601
Darden Restaurants		14,123		1,356
Delphi Technologies		24,846		1,304
Discovery Communications, Cl A*		4,793		107
Discovery Communications, Cl C*		5,393		114
DISH Network, Cl A*		6,700		320
Dollar General		83,614		7,777
Dollar Tree*		21,611		2,319
Domino's Pizza		4,452		841
DR Horton		13,544		692


Description	Shares		Value (000)
Expedia		15,496	$	1,856
Extended Stay America		56,847		1,080
Foot Locker		7,174		336
Ford Motor		133,257		1,664
Fossil Group*		700		5
GameStop, Cl A		6,188		111
Gap		6,762		230
Garmin		3,349		200
General Motors		72,321		2,964
Genuine Parts		4,215		400
Goodyear Tire & Rubber		6,830		221
Graham Holdings, Cl B		341		190
H&R Block		27,978		734
Hanesbrands		92,111		1,926
Harley-Davidson		16,878		859
Hasbro		37,265		3,387
Hilton Worldwide Holdings		76,271		6,091
Home Depot		72,828		13,803
Hyatt Hotels, Cl A*		4,976		366
International Game Technology		9,210		244
Interpublic Group of Companies		135,525		2,732
John Wiley & Sons, Cl A		30,743		2,021
Johnson Controls International		207,103		7,893
Kohl's		5,151		279
L Brands		7,325		441
Las Vegas Sands		27,058		1,880
Lear		10,129		1,789
Leggett & Platt		4,046		193
Lennar, Cl A		6,095		385
Live Nation Entertainment*		33,314		1,418
LKQ*		8,800		358
Lowe's		81,294		7,555
Macy's		14,137		356
Marriott International, Cl A		9,134		1,240
Mattel		9,790		151
McDonald's		39,275		6,760
MGM Resorts International		15,000		501
Michael Kors Holdings*		31,964		2,012
Michaels*		68,002		1,645
Mohawk Industries*		1,901		525
Netflix*		30,070		5,772
Newell Brands		50,852		1,571
News, Cl A		11,668		189
News, Cl B		3,100		51
NIKE, Cl B		72,551		4,538
Nordstrom		3,649		173
Norwegian Cruise Line Holdings*		5,100		272

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund


Description	Shares		Value (000)
NVR*		489	$	1,716
Omnicom Group		92,623		6,746
O'Reilly Automotive*		2,469		594
priceline.com*		12,132		21,082
PulteGroup		8,202		273
PVH		28,499		3,910
Ralph Lauren, Cl A		24,979		2,590
Restaurant Brands International		50,000		3,074
Ross Stores		57,772		4,636
Royal Caribbean Cruises		20,836		2,485
Scripps Networks Interactive, Cl A		2,791		238
Signet Jewelers		1,800		102
Skechers U.S.A., Cl A*		24,090		912
Starbucks		45,246		2,599
Tapestry		8,289		367
Target		16,102		1,051
TEGNA		27,851		392
Tesla*		10,350		3,223
Thor Industries		3,796		572
Tiffany		2,992		311
Time Warner		41,207		3,769
TJX		33,872		2,590
Tractor Supply		3,743		280
TripAdvisor*		2,893		100
Tupperware Brands		10,622		666
Twenty-First Century Fox		13,100		447
Twenty-First Century Fox, Cl A		46,814		1,617
Ulta Beauty*		1,700		380
Under Armour, Cl A*		4,700		68
Under Armour, Cl C*		4,720		63
Vail Resorts		673		143
VF		9,514		704
Viacom, Cl B		14,096		434
Visteon*		8,348		1,045
Walt Disney		68,253		7,338
Whirlpool		10,844		1,829
Wyndham Worldwide		3,065		355
Wynn Resorts		2,291		386
Yum! Brands		46,959		3,832

				281,284

Consumer Staples — 7.2%
Altria Group		108,394		7,740
Archer-Daniels-Midland		172,089		6,897
Brown-Forman, Cl B		5,764		396
Bunge		21,605		1,449
Campbell Soup		22,443		1,080


Description	Shares		Value (000)
Church & Dwight		7,200	$	361
Clorox		3,725		554
Coca-Cola		137,584		6,312
Colgate-Palmolive		25,831		1,949
Conagra Brands		120,282		4,531
Constellation Brands, Cl A		7,040		1,609
Costco Wholesale		12,847		2,391
Coty, Cl A		89,400		1,778
CVS Health		130,217		9,441
Danone		21,953		1,842
Diageo		123,798		4,555
Dr Pepper Snapple Group		5,230		508
Estee Lauder, Cl A		6,671		849
General Mills		106,067		6,289
Hershey		4,061		461
Hormel Foods		7,670		279
Ingredion		10,157		1,420
JM Smucker		15,409		1,914
Kellogg		7,203		490
Kimberly-Clark		10,387		1,253
Kraft Heinz		17,739		1,379
Kroger		26,300		722
McCormick		3,630		370
Molson Coors Brewing, Cl B		6,965		572
Mondelez International, Cl A		65,264		2,793
Monster Beverage*		12,020		761
Nestle		72,476		6,233
Nu Skin Enterprises, Cl A		16,481		1,124
PepsiCo		128,069		15,358
Philip Morris International		229,456		24,242
Pilgrim's Pride*		24,085		748
Pinnacle Foods		44,353		2,638
Procter & Gamble		149,029		13,693
Reckitt Benckiser Group		22,284		2,082
Rite Aid*		11,397		22
Sysco		34,189		2,076
Tyson Foods, Cl A		78,189		6,339
Walgreens Boots Alliance		40,521		2,943
Wal-Mart Stores		120,451		11,895

				162,338

Energy — 4.4%
Anadarko Petroleum		68,356		3,667
Andeavor		4,232		484
Apache		10,896		460
Baker Hughes		18,209		576
Cabot Oil & Gas		48,202		1,379

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund


Description	Shares		Value (000)
Chesapeake Energy*		28,581	$	113
Chevron		96,205		12,044
Cimarex Energy		2,800		342
Concho Resources*		4,400		661
ConocoPhillips		96,693		5,307
Devon Energy		76,823		3,180
Energen*		4,196		242
EOG Resources		55,001		5,935
EQT		7,363		419
ExxonMobil		259,921		21,740
Halliburton		78,740		3,848
Helmerich & Payne		3,287		212
Hess		7,896		375
Kinder Morgan		57,023		1,030
Marathon Oil		134,690		2,280
Marathon Petroleum		48,921		3,228
Murphy Oil		6,989		217
National Oilwell Varco		11,046		398
Newfield Exploration*		5,837		184
Noble Energy		14,126		412
Occidental Petroleum		62,678		4,617
ONEOK		11,160		596
Phillips 66		12,545		1,269
Pioneer Natural Resources		6,795		1,175
QEP Resources*		29,377		281
Range Resources		6,085		104
Schlumberger		135,693		9,144
Southwestern Energy*		146,777		819
TechnipFMC		13,112		411
Valero Energy		78,408		7,206
Williams		133,294		4,064
World Fuel Services		29,607		833

				99,252

Financials — 16.0%
Affiliated Managers Group		1,600		328
Aflac		31,653		2,779
Allstate		71,422		7,479
American Express		97,949		9,727
American Financial Group		4,627		502
American International Group		26,633		1,587
Ameriprise Financial		36,402		6,169
Annaly Capital Management‡		64,020		761
Aon		55,043		7,376
Arch Capital Group*		4,044		367
Arthur J Gallagher		5,100		323
Assurant		13,018		1,313


Description	Shares		Value (000)
Assured Guaranty		51,977	$	1,760
Axis Capital Holdings		14,487		728
Bank of America		692,161		20,433
Bank of New York Mellon		109,668		5,907
BB&T		25,410		1,263
Berkshire Hathaway, Cl B*		91,925		18,221
BlackRock, Cl A		12,941		6,648
Brighthouse Financial*		2,732		160
Capital One Financial		43,214		4,303
Cboe Global Markets		3,400		424
Charles Schwab		77,198		3,966
Chimera Investment‡		79,811		1,475
Chubb		89,320		13,052
Cincinnati Financial		4,257		319
Citigroup		239,369		17,811
Citizens Financial Group		107,969		4,533
CME Group, Cl A		10,050		1,468
Comerica		10,504		912
Discover Financial Services		45,473		3,498
ETRADE Financial		7,801		387
Everest Re Group		17,366		3,842
Federated Investors, Cl B		30,034		1,084
Fifth Third Bancorp		21,614		656
First Horizon National		37,840		756
FNF Group		45,623		1,790
Franklin Resources		66,308		2,873
Goldman Sachs Group		50,217		12,793
Hanover Insurance Group		7,490		810
Hartford Financial Services Group		23,117		1,301
Huntington Bancshares		31,348		456
Intercontinental Exchange		91,710		6,471
Invesco		12,173		445
JPMorgan Chase		378,796		40,508
KeyCorp		31,863		643
Leucadia National		9,447		250
Lincoln National		10,807		831
Loews		8,033		402
M&T Bank		9,800		1,676
Marsh & McLennan		15,101		1,229
MetLife		117,317		5,932
Moody's		23,732		3,503
Morgan Stanley		156,783		8,226
Morningstar		588		57
Nasdaq		50,061		3,846
Navient		7,808		104
Northern Trust		6,292		629
Old Republic International		12,430		266

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund


Description	Shares		Value (000)
People's United Financial		9,454	$	177
PNC Financial Services Group		99,464		14,352
Popular		5,331		189
Principal Financial Group		7,977		563
Progressive		17,262		972
Prudential Financial		52,446		6,030
Raymond James Financial		3,700		330
Regions Financial		74,625		1,290
Reinsurance Group of America, Cl A		16,363		2,551
S&P Global		33,087		5,605
State Street		65,539		6,397
SunTrust Banks		70,147		4,531
Synchrony Financial		50,898		1,965
Synovus Financial		39,933		1,914
T Rowe Price Group		24,321		2,552
TD Ameritrade Holding		64,660		3,306
Torchmark		3,187		289
Travelers		90,154		12,228
Unum Group		6,555		360
US Bancorp		216,681		11,610
Voya Financial		25,590		1,266
Wells Fargo		430,039		26,090
Western Alliance Bancorp*		23,750		1,345
Willis Towers Watson		22,409		3,377
WR Berkley		23,371		1,675
XL Group		7,593		267
Zions Bancorporation		41,438		2,106

				360,695

Health Care — 14.9%
Abbott Laboratories		143,759		8,204
AbbVie		69,039		6,677
Aetna		31,568		5,695
Agilent Technologies		51,201		3,429
Alexion Pharmaceuticals*		44,624		5,337
Align Technology*		2,200		489
Allergan		18,645		3,050
Alnylam Pharmaceuticals*		23,799		3,024
AmerisourceBergen, Cl A		4,801		441
Amgen		50,561		8,793
Anthem		33,510		7,540
Baxter International		119,927		7,752
Becton Dickinson		46,759		10,009
Biogen*		33,676		10,728
Bioverativ*		9,449		509
Boston Scientific*		40,528		1,005
Bristol-Myers Squibb		93,207		5,712


Description	Shares		Value (000)
Cardinal Health		9,295	$	569
Celgene*		79,073		8,252
Centene*		41,395		4,176
Cerner*		9,215		621
Charles River Laboratories International*		1,935		212
Cigna		91,282		18,538
Cooper		1,400		305
Danaher		121,855		11,311
DaVita*		4,448		321
DENTSPLY SIRONA		6,649		438
Edwards Lifesciences*		6,282		708
Eli Lilly		60,665		5,124
Envision Healthcare*		3,366		116
Exelixis*		39,889		1,213
Express Scripts Holding*		122,870		9,171
Gilead Sciences		127,676		9,147
HCA Healthcare*		8,500		747
Henry Schein*		4,600		321
Hill-Rom Holdings		12,701		1,071
Hologic*		8,200		350
Humana		36,701		9,104
IDEXX Laboratories*		2,500		391
Illumina*		4,300		939
Incyte*		24,007		2,274
Intuitive Surgical*		28,612		10,442
IQVIA Holdings*		4,200		411
Johnson & Johnson		230,993		32,274
Laboratory Corp of America Holdings*		2,952		471
McKesson		40,723		6,351
Medtronic		178,863		14,443
Merck		292,313		16,448
Mettler-Toledo International*		800		496
Mylan*		15,767		667
Novartis		10,430		882
Patterson		2,145		77
PerkinElmer		3,296		241
Perrigo		3,932		343
Pfizer		552,044		19,995
Quest Diagnostics		3,954		389
Regeneron Pharmaceuticals*		3,259		1,225
ResMed		4,300		364
Roche Holding		4,193		1,061
Stryker		47,784		7,399
Thermo Fisher Scientific		36,147		6,864
United Therapeutics*		5,995		887
UnitedHealth Group		120,857		26,644

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund


Description	Shares		Value (000)
Universal Health Services, Cl B		2,500	$	283
Varian Medical Systems*		2,729		303
Vertex Pharmaceuticals*		68,221		10,224
Waters*		2,335		451
WellCare Health Plans*		4,075		819
Zimmer Biomet Holdings		5,898		712
Zoetis, Cl A		14,472		1,043

				336,022

Industrials — 10.1%
3M		54,399		12,804
Acuity Brands		1,200		211
AECOM*		14,602		542
AGCO		1,573		112
Alaska Air Group		34,854		2,562
Allegion		2,856		227
Allison Transmission Holdings		22,214		957
American Airlines Group		126,229		6,568
AMETEK		6,827		495
AO Smith		4,100		251
Arconic		12,755		348
Boeing		121,987		35,975
BWX Technologies, Cl W		17,422		1,054
Canadian National Railway		24,266		2,002
Caterpillar		41,455		6,533
CH Robinson Worldwide		4,064		362
Cintas		2,476		386
Crane		28,209		2,517
CSX		26,104		1,436
Cummins		16,037		2,833
Deere		9,467		1,482
Delta Air Lines		51,139		2,864
Dover		4,697		474
Dun & Bradstreet		15,929		1,886
Eaton		61,306		4,844
Emerson Electric		51,618		3,597
Equifax		20,481		2,415
Expeditors International of Washington		5,158		334
Fastenal		8,576		469
FedEx		13,436		3,353
Flowserve		4,043		170
Fluor		4,185		216
Fortive		36,517		2,642
Fortune Brands Home & Security		4,500		308
General Dynamics		8,122		1,652
General Electric		335,957		5,862
HD Supply Holdings*		18,319		733


Description	Shares		Value (000)
Honeywell International		87,942	$	13,487
Huntington Ingalls Industries		7,891		1,860
IHS Markit*		10,800		488
Illinois Tool Works		30,435		5,078
Ingersoll-Rand		83,158		7,417
ITT		17,606		940
Jacobs Engineering Group		13,822		912
JB Hunt Transport Services		2,500		287
Kansas City Southern		14,557		1,532
KAR Auction Services		2,593		131
L3 Technologies		13,888		2,748
Lockheed Martin		19,697		6,324
ManpowerGroup		10,681		1,347
Masco		9,222		405
MSC Industrial Direct, Cl A		1,224		118
Nielsen Holdings		9,700		353
Norfolk Southern		22,296		3,231
Northrop Grumman		25,192		7,732
Oshkosh		4,584		417
Owens Corning		14,882		1,368
PACCAR		16,183		1,150
Parker-Hannifin		3,860		770
Pentair		4,747		335
Quanta Services*		4,576		179
Raytheon		17,261		3,243
Regal Beloit		10,305		789
Republic Services, Cl A		9,610		650
Robert Half International		23,429		1,301
Rockwell Automation		10,830		2,126
Rockwell Collins		4,736		642
Roper Technologies		2,973		770
Ryder System		2,294		193
Snap-on		1,729		301
Southwest Airlines		44,151		2,890
Spirit AeroSystems Holdings, Cl A		54,236		4,732
Stanley Black & Decker		18,797		3,190
Stericycle*		2,621		178
Terex		9,059		437
Textron		7,590		430
Timken		5,356		263
TransDigm Group		1,400		384
TransUnion*		23,714		1,303
Union Pacific		64,265		8,618
United Continental Holdings*		20,428		1,377
United Parcel Service, Cl B		42,584		5,074
United Rentals*		3,957		680
United Technologies		71,645		9,140

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund


Description	Shares		Value (000)
Valmont Industries		2,272	$	377
Verisk Analytics, Cl A*		4,700		451
WABCO Holdings*		1,314		189
Waste Connections		53,850		3,820
Waste Management		29,528		2,548
WESCO International*		6,683		455
WW Grainger		1,565		370
Xylem		5,222		356

				227,362

Information Technology — 24.0%
Accenture, Cl A		111,444		17,061
Activision Blizzard		59,434		3,763
Adobe Systems*		46,770		8,196
Advanced Micro Devices*		23,600		243
Akamai Technologies*		10,408		677
Alibaba Group Holding ADR*		58,200		10,035
Alliance Data Systems		1,380		350
Alphabet, Cl A*		36,762		38,725
Alphabet, Cl C*		28,833		30,171
Amdocs		27,597		1,807
Amphenol, Cl A		8,852		777
Analog Devices		21,804		1,941
ANSYS*		2,500		369
Apple		397,232		67,224
Applied Materials		160,137		8,186
ARRIS International*		27,839		715
ASML Holding, Cl G		9,600		1,669
Autodesk*		6,508		682
Automatic Data Processing		12,968		1,520
Avnet		4,287		170
Booz Allen Hamilton Holding, Cl A		4,847		185
Broadcom		33,362		8,571
CA		53,248		1,772
Cadence Design Systems*		47,965		2,006
CDW		10,585		736
Cisco Systems		226,592		8,678
Citrix Systems*		17,963		1,581
Cognizant Technology Solutions, Cl A		58,290		4,140
CoreLogic*		17,435		806
Corning		25,923		829
CSRA		4,957		148
Dell Technologies, Cl V*		16,588		1,348
Dolby Laboratories, Cl A		20,122		1,248
DST Systems		5,966		370
DXC Technology		42,130		3,998
eBay*		96,725		3,650


Description	Shares		Value (000)
Electronic Arts*		37,772	$	3,968
F5 Networks*		16,942		2,223
Facebook, Cl A*		249,607		44,046
Fidelity National Information Services		70,626		6,645
First Solar*		11,059		747
Fiserv*		26,332		3,453
FLIR Systems		28,655		1,336
Fortinet*		16,468		719
Gartner*		2,600		320
Genpact		7,853		249
Global Payments		41,912		4,201
Harris		3,586		508
Hewlett Packard Enterprise		47,845		687
HP		76,310		1,603
IAC*		14,297		1,748
Intel		202,223		9,335
International Business Machines		59,158		9,076
Intuit		44,102		6,958
Juniper Networks		56,827		1,620
KLA-Tencor		48,616		5,108
Lam Research		16,245		2,990
Mastercard, Cl A		27,438		4,153
Maxim Integrated Products		42,869		2,241
Microchip Technology		6,946		610
Micron Technology*		104,902		4,314
Microsoft		717,930		61,412
Motorola Solutions		4,685		423
NCR*		22,163		753
NetApp		7,794		431
NVIDIA		27,962		5,411
ON Semiconductor*		60,999		1,277
Oracle		169,404		8,009
Paychex		9,367		638
PayPal Holdings*		132,362		9,744
Qorvo*		3,900		260
QUALCOMM		65,711		4,207
Red Hat*		64,328		7,726
salesforce.com*		89,530		9,153
Seagate Technology		8,669		363
ServiceNow*		29,841		3,891
Shopify, Cl A*		13,249		1,338
Skyworks Solutions		14,413		1,369
Symantec		18,537		520
Synopsys*		24,861		2,119
Take-Two Interactive Software*		4,736		520
TE Connectivity		10,415		990
Tencent Holdings ADR		97,800		5,078

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund


Description	Shares		Value (000)
Teradata*		17,864	$	687
Teradyne		20,942		877
Texas Instruments		150,004		15,666
Total System Services		69,101		5,465
Twitter*		9,350		225
VeriSign*		2,557		293
Visa, Cl A		211,301		24,093
VMware, Cl A*		37,797		4,737
Western Digital		30,684		2,440
Western Union		13,763		262
Workday, Cl A*		19,000		1,933
Xerox		44,814		1,306
Xilinx		48,048		3,239
Zynga, Cl A*		158,277		633

				540,693

Materials — 2.6%
Air Products & Chemicals		21,274		3,491
Albemarle		3,200		409
Alcoa		14,929		804
AptarGroup		4,359		376
Avery Dennison		2,668		306
Ball		10,104		382
Cabot		35,175		2,166
Celanese, Cl A		35,955		3,850
CF Industries Holdings		6,850		291
Chemours		29,679		1,486
Crown Holdings*		31,334		1,763
DowDuPont		91,060		6,485
Eastman Chemical		17,934		1,661
Ecolab		7,709		1,034
FMC		3,932		372
Freeport-McMoRan*		66,375		1,259
Graphic Packaging Holding		28,533		441
Huntsman		31,406		1,046
International Flavors & Fragrances		2,242		342
International Paper		11,976		694
LyondellBasell Industries, Cl A		44,984		4,963
Martin Marietta Materials		1,800		398
Monsanto		29,985		3,502
Mosaic		9,981		256
Newmont Mining		22,925		860
Nucor		9,355		595
Olin		16,748		596
Packaging Corp of America		2,800		338
PPG Industries		70,009		8,178
Praxair		8,414		1,302


Description	Shares		Value (000)
Sealed Air		5,542	$	273
Sherwin-Williams		10,611		4,351
Vulcan Materials		3,827		491
WestRock		45,054		2,848
WR Grace		6,573		461

				58,070

Real Estate — 1.8%
Alexandria Real Estate Equities‡		2,900		379
American Tower, Cl A‡		12,588		1,796
Apartment Investment & Management, Cl A‡		4,754		208
AvalonBay Communities‡		4,012		716
Boston Properties‡		4,567		594
Brixmor Property Group‡		24,482		457
CBRE Group, Cl A*		22,045		955
Crown Castle International‡		54,582		6,059
Digital Realty Trust‡		6,100		695
Duke Realty‡		46,779		1,273
Equinix‡		2,294		1,040
Equity LifeStyle Properties‡		35,062		3,121
Equity Residential‡		10,984		700
Essex Property Trust‡		1,932		466
Extra Space Storage‡		3,600		315
Federal Realty Investment Trust‡		2,200		292
Gaming and Leisure Properties‡		37,790		1,398
GGP‡		18,643		436
HCP‡		13,595		354
Host Hotels & Resorts‡		21,518		427
Iron Mountain‡		8,486		320
Kimco Realty‡		12,145		220
Liberty Property Trust‡		14,160		609
Macerich‡		3,145		207
Mid-America Apartment Communities‡		3,400		342
Park Hotels & Resorts‡		73,555		2,115
Prologis‡		71,151		4,590
Public Storage‡		11,158		2,332
Realty Income‡		8,400		479
Regency Centers‡		4,500		311
Retail Properties of America, Cl A‡		13,028		175
SBA Communications, Cl A‡ *		15,107		2,468
Simon Property Group‡		9,104		1,563
SL Green Realty‡		2,900		293
UDR‡		7,600		293
Ventas‡		10,413		625
Vornado Realty Trust‡		5,003		391
Weingarten Realty Investors‡		6,722		221

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund


Description	Shares		Value (000)
Welltower‡		10,803	$	689
Weyerhaeuser‡		21,882		772

				40,696

Telecommunication Services — 1.3%
AT&T		331,844		12,902
CenturyLink		29,030		484
T-Mobile US*		58,900		3,741
Verizon Communications		220,526		11,673

				28,800

Utilities — 3.3%
AES		19,337		209
Alliant Energy		6,500		277
Ameren		102,087		6,022
American Electric Power		92,534		6,808
American Water Works		27,600		2,525
Avangrid		26,032		1,317
CenterPoint Energy		112,226		3,183
CMS Energy		8,164		386
Consolidated Edison		25,466		2,163
Dominion Energy		19,115		1,549
DTE Energy		29,893		3,272
Duke Energy		79,189		6,661
Edison International		98,606		6,236
Entergy		35,477		2,888
Eversource Energy		12,173		769
Exelon		115,705		4,560
FirstEnergy		13,233		405
Hawaiian Electric Industries		42,898		1,551
NextEra Energy		18,691		2,919
NiSource		9,446		243
NRG Energy		8,364		238
PG&E		48,881		2,191
Pinnacle West Capital		23,367		1,990
PPL		19,899		616
Public Service Enterprise Group		80,807		4,162
SCANA		4,045		161
Sempra Energy		28,096		3,004
Southern		61,924		2,978
Vistra Energy*		73,435		1,345
WEC Energy Group		9,220		613
Xcel Energy		46,708		2,247

				73,488

Total Common Stock (Cost $1,766,166) (000)				2,208,700


Description	Shares		Value (000)
PREFERRED STOCK — 0.2%
Air BNB, Ser D* (A) (B)		11,406	$	1,335
Air BNB, Ser E* (A) (B)		6,939		812
Dropbox, Cl A* (A) (B)		29,866		350
Dropbox, Cl C* (A) (B)		1,097		13
Flipkart Online Services* (A) (B)		579		51
Flipkart Online Services, Ser A* (A) (B)		199		17
Flipkart Online Services, Ser C* (A) (B)		349		30
Flipkart Online Services, Ser E* (A) (B)		650		57
Flipkart Online Services, Ser G* (A) (B)		3,027		358
Magic Leap* (A) (B)		5,553		150
Magic Leap, Ser C* (A) (B)		13,521		365
Uber Technologies, Cl E* (A) (B)		21,072		727
Uber Technologies, Cl G* (A) (B)		7,921		273

Total Preferred Stock (Cost $3,817) (000)				4,538

EXCHANGE TRADED FUND — 0.1%
iShares Russell 1000 ETF		13,405		1,992

Total Exchange Traded Fund (Cost $1,957) (000)				1,992

SHORT-TERM INVESTMENT — 1.5%
State Street Institutional Treasury Money Market Fund, Cl Institutional, 1.160% (C)		32,637,039		32,637

Total Short-Term Investment (Cost $32,637) (000)				32,637

Total Investments In Securities — 99.9% (Cost $1,804,577) (000)			$	2,247,867

Percentages are based on net assets of $2,250,917 (000).

A list of the open futures contracts held by the Fund at December 31, 2017, is as follows (000):

Type of Contract

Number
of
Contracts
Long

Expiration
Date

Notional
Amount

Value

Unrealized
Appreciation

S&P 500 Index E-MINI

151

Mar-2018

19,980

20,204

224

*	Non-income producing security.

‡	Real Estate Investment Trust

(A)

Level 3 security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of December 31, 2017, was $4,538 (000) and represented 0.2% of Net Assets.

(B)

Currently, no stated interest rate.

(C)

The rate reported is the 7-day effective yield as of December 31, 2017.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Large Cap Equity Fund

ADR — American Depositary Receipt

Cl — Class

ETF — Exchange Traded Fund

S&P — Standard & Poor’s

Ser — Series

The following is a list of the level of inputs used as of December 31, 2017, in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock	$	2,208,700	$	—	$	—	$	2,208,700
Preferred Stock		—		—		4,538		4,538
Exchange Traded Fund		1,992		—		—		1,992
Short-Term Investment		32,637		—		—		32,637

Total Investments in Securities	$	2,243,329	$	—	$	4,538	$	2,247,867


Other Financial Instruments	Level 1		Level 2		Level 3		Total
Futures Contracts**
Unrealized Appreciation	$	224	$	—	$	—	$	224

Total Other Financial Instruments	$	224	$	—	$	—	$	224

**	Futures contracts are valued at the unrealized appreciation on the instrument.

A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments at the beginning and/or end of the year in relation to net assets. Management has concluded that Level 3 investments are not material in relation to net assets.

For the year ended December 31, 2017, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended December 31, 2017 there were no transfers in and out of Level 3. All transfers, if any, are recognized by the Fund at the end of the year.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund

Sector Weightings† (unaudited)

LOGO

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
COMMON STOCK — 96.7%
Consumer Discretionary — 14.9%
1-800-Flowers.com, Cl A*		178,221	$	1,907
Abercrombie & Fitch, Cl A		16,444		287
Acushnet Holdings		122,970		2,592
Adtalem Global Education*		17,405		732
AH Belo, Cl A		197,880		950
American Axle & Manufacturing Holdings*		23,721		404
American Eagle Outfitters		66,980		1,259
American Public Education*		3,665		92
Asbury Automotive Group*		4,452		285
Ascena Retail Group*		38,430		90
Barnes & Noble		12,889		86
Barnes & Noble Education*		8,826		73
Belmond, Cl A*		20,230		248
Big 5 Sporting Goods		5,300		40
Biglari Holdings*		234		97
BJ's Restaurants		4,236		154
BMC Stock Holdings*		44,593		1,128
BorgWarner		37,218		1,901
Boyd Gaming		19,670		689
Bravo Brio Restaurant Group*		78,090		195
Buckle		6,505		154
Caleres		97,239		3,256
Callaway Golf		22,741		317
Capella Education		2,724		211
Career Education*		15,857		192


Description	Shares		Value (000)
Carter's		23,273	$	2,734
Cato, Cl A		5,313		85
Cavco Industries*		2,043		312
Century Casinos*		93,014		849
Chegg*		256,320		4,183
Chico's FAS		30,780		271
Children's Place		4,173		607
Chuy's Holdings*		121,042		3,395
Columbia Sportswear		32,811		2,358
Conn's*		27,105		964
Cooper Tire & Rubber		105,372		3,725
Cooper-Standard Holdings*		3,809		467
Core-Mark Holding		11,091		350
Crocs*		16,422		208
Darden Restaurants		12,674		1,217
Dave & Buster's Entertainment*		9,866		544
Del Frisco's Restaurant Group*		144,546		2,204
DineEquity		4,340		220
Dixie Group*		214,108		824
Dorman Products*		7,080		433
DR Horton		62,238		3,178
DSW, Cl A		61,621		1,319
El Pollo Loco Holdings*		6,356		63
Ethan Allen Interiors		6,111		175
EW Scripps, Cl A*		13,363		209
Express*		229,574		2,330
Fiesta Restaurant Group*		6,155		117
Finish Line, Cl A		9,150		133
Five Below*		13,162		873
Floor & Decor Holdings, Cl A*		17,693		861
Fossil Group*		10,026		78
Fox Factory Holding*		9,043		351
Francesca's Holdings*		8,462		62
Fred's, Cl A*		10,499		42
FTD*		5,124		37
Gannett		27,351		317
Genesco*		4,822		157
Gentherm*		8,834		280
G-III Apparel Group*		181,262		6,687
Goodyear Tire & Rubber		106,000		3,425
Grand Canyon Education*		17,285		1,548
Group 1 Automotive		4,709		334
Guess?		208,648		3,522
Habit Restaurants, Cl A*		214,478		2,048
Haverty Furniture		4,912		111
Hibbett Sports*		4,899		100
Installed Building Products*		5,041		383

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
iRobot*		6,692	$	513
JC Penney*		74,994		237
John Wiley & Sons, Cl A		81,592		5,365
Kirkland's*		188,173		2,251
La-Z-Boy, Cl Z		11,625		363
LCI Industries		5,981		778
LGI Homes*		4,154		312
Lindblad Expeditions Holdings*		139,872		1,369
Lions Gate Entertainment, Cl A*		42,407		1,434
Lithia Motors, Cl A		5,763		655
Lululemon Athletica*		14,987		1,178
Lumber Liquidators Holdings*		31,474		988
M/I Homes*		6,497		223
Marcus		4,360		119
MarineMax*		5,534		105
Marriott Vacations Worldwide		5,643		763
MDC Holdings		108,978		3,474
MDC Partners, Cl A*		131,666		1,284
Melco Resorts & Entertainment ADR		79,400		2,306
Meredith		26,740		1,766
Meritage Homes*		9,105		466
Modine Manufacturing*		189,141		3,821
Mohawk Industries*		7,477		2,063
Monarch Casino & Resort*		2,567		115
Monro		34,815		1,983
Motorcar Parts of America*		4,759		119
Movado Group		3,551		114
Nautilus*		7,867		105
New Media Investment Group		12,872		216
Nexstar Media Group, Cl A		35,816		2,801
Norwegian Cruise Line Holdings*		57,107		3,041
Nutrisystem		7,219		380
Ollie's Bargain Outlet Holdings*		11,789		628
Oxford Industries		6,301		474
Penn National Gaming*		20,035		628
Penske Automotive Group		52,769		2,525
Perry Ellis International*		2,900		73
PetMed Express		4,970		226
Pier 1 Imports		467,861		1,937
Planet Fitness, Cl A*		45,455		1,574
Polaris Industries		15,043		1,865
Red Robin Gourmet Burgers*		3,166		179
Regis*		7,934		122
Rent-A-Center, Cl A*		13,743		153
RH*		4,517		389
Ruth's Hospitality Group		6,701		145
Scholastic		6,639		266


Description	Shares		Value (000)
Scientific Games, Cl A*		51,135	$	2,623
SeaWorld Entertainment*		239,560		3,251
Shake Shack, Cl A*		4,429		191
Shoe Carnival		2,568		69
Shutterfly*		8,008		398
Skechers U.S.A., Cl A*		60,406		2,286
Sleep Number*		9,489		357
Sonic		9,595		264
Sonic Automotive, Cl A		6,360		117
Standard Motor Products		4,754		213
Steven Madden*		12,719		594
Strayer Education		2,489		223
Sturm Ruger		20,015		1,118
Superior Industries International		5,299		79
Tailored Brands		11,851		259
Texas Roadhouse, Cl A		10,670		562
Tile Shop Holdings		7,998		77
Time		23,925		441
TopBuild*		34,583		2,619
Tractor Supply		9,118		682
Unifi*		3,879		139
Universal Electronics*		3,304		156
Vail Resorts		10,477		2,226
Vera Bradley*		4,356		53
Vista Outdoor*		253,821		3,698
Visteon*		9,355		1,171
Vitamin Shoppe*		6,954		31
Wendy's		30,665		503
William Lyon Homes, Cl A*		6,732		196
Wingstop, Cl A		7,009		273
Winnebago Industries		72,884		4,052
Wolverine World Wide		22,949		732
World Wrestling Entertainment, Cl A		75,877		2,320
Wynn Resorts		16,700		2,815
Yum China Holdings		45,300		1,813
Zumiez*		4,073		85

				160,606

Consumer Staples — 2.7%
Andersons		128,980		4,018
B&G Foods		101,682		3,574
Bob Evans Farms		4,820		380
Calavo Growers		3,700		312
Cal-Maine Foods*		7,163		318
Central Garden & Pet*		2,327		91
Central Garden & Pet, Cl A*		8,405		317
Chefs' Warehouse*		57,460		1,178

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
Coca-Cola Bottling Consolidated		1,105	$	238
Darling Ingredients*		239,767		4,347
Energizer Holdings		58,660		2,815
Flowers Foods		164,653		3,179
Herbalife*		14,398		975
Inter Parfums		38,677		1,681
J&J Snack Foods		3,584		544
John B Sanfilippo & Son		2,253		142
Medifast		2,538		177
Nu Skin Enterprises, Cl A		19,014		1,297
Seneca Foods, Cl A*		1,835		56
SpartanNash		8,916		238
SUPERVALU*		8,931		193
Universal		53,422		2,805
WD-40		3,293		389

				29,264

Energy — 3.4%
Archrock		17,183		180
Ardmore Shipping*		326,539		2,612
Bill Barrett*		22,971		118
Bristow Group*		7,236		97
Callon Petroleum*		337,270		4,098
Capital Product Partners (A)		129,622		436
CARBO Ceramics*		6,259		64
Carrizo Oil & Gas*		18,595		396
Cloud Peak Energy*		17,000		76
CONSOL Energy*		6,200		245
Denbury Resources*		97,124		215
Diamondback Energy*		28,489		3,597
Dorian LPG*		15,631		128
Eclipse Resources*		621,143		1,491
Energen*		63,730		3,669
Era Group*		5,800		62
Exterran*		7,682		241
Geospace Technologies*		3,914		51
Green Plains		8,956		151
Gulf Island Fabrication		3,100		42
Helix Energy Solutions Group*		33,465		252
Jones Energy, Cl A*		2		—
Keane Group*		57,394		1,091
Matador Resources*		54,490		1,696
Matrix Service*		6,071		108
McDermott International*		67,939		447
Newpark Resources*		20,777		179
Noble*		59,029		267
Oceaneering International*		25,220		533


Description	Shares		Value (000)
Oil States International*		12,287	$	348
Par Pacific Holdings*		5,800		112
Patterson-UTI Energy		51,355		1,182
PDC Energy*		15,795		814
Pioneer Energy Services*		22,674		69
Resolute Energy*		64,803		2,039
REX American Resources*		1,475		122
Ring Energy*		124,054		1,724
RPC		43,742		1,117
RSP Permian*		34,975		1,423
SEACOR Holdings*		74,580		3,447
SRC Energy*		158,439		1,351
TETRA Technologies*		26,276		112
Unit*		12,736		280

				36,682

Financials — 17.7%
Access National		76,817		2,139
American Equity Investment Life Holding		62,055		1,907
American Financial Group		34,955		3,794
Ameris Bancorp		8,895		429
AMERISAFE		58,666		3,614
Apollo Commercial Real Estate Finance‡		22,963		424
ARMOUR Residential‡		10,090		260
Aspen Insurance Holdings		105,672		4,290
Atlantic Capital Bancshares*		91,851		1,617
Banc of California		57,575		1,189
Bank Mutual		9,633		103
Bank of Hawaii		40,050		3,432
Banner		25,860		1,425
Berkshire Hills Bancorp		34,993		1,281
BofI Holding*		13,490		403
Boston Private Financial Holdings		20,273		313
Brookline Bancorp		18,456		290
Byline Bancorp*		47,342		1,087
Capstar Financial Holdings*		114,728		2,383
Capstead Mortgage‡		23,201		201
Carolina Financial		38,539		1,432
Central Pacific Financial		7,000		209
Chemical Financial		23,861		1,276
City Holding		3,764		254
Civista Bancshares		56,665		1,247
CoBiz Financial		147,041		2,939
Cohen & Steers		11,614		549
Columbia Banking System		32,079		1,394
Comerica		41,380		3,592

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
Commerce Bancshares		60,984	$	3,405
Commerce Union Bancshares		35,582		912
Community Bank System		12,083		649
Community Bankers Trust*		222,324		1,812
Customers Bancorp*		66,824		1,737
CVB Financial		174,165		4,103
Dime Community Bancshares		7,083		148
Donnelley Financial Solutions*		7,700		150
ETRADE Financial		65,456		3,245
Eagle Bancorp Montana		34,296		719
East West Bancorp		35,100		2,135
eHealth*		3,700		64
Employers Holdings		7,801		346
Encore Capital Group*		27,287		1,149
Enova International*		8,572		130
Entegra Financial*		12,505		366
Equity Bancshares, Cl A*		42,562		1,507
Evans Bancorp		40,747		1,707
Evercore, Cl A		9,259		833
EZCORP, Cl A*		11,734		143
FB Financial*		36,813		1,546
Fidelity Southern		5,012		109
Financial Engines		15,148		459
First BanCorp*		43,810		223
First Bancorp NC		21,139		746
First Commonwealth Financial		23,463		336
First Financial Bancorp		54,946		1,448
First Financial Bankshares		15,773		711
First Horizon National		93,473		1,869
First Internet Bancorp		55,908		2,133
First Midwest Bancorp		99,534		2,390
FirstCash		65,276		4,403
FNB		298,792		4,129
Glacier Bancorp		18,571		732
Great Western Bancorp		27,086		1,078
Green Bancorp*		27,249		553
Green Dot, Cl A*		50,443		3,040
Greenhill		5,550		108
Guaranty Bancorp		88,647		2,451
Guaranty Bancshares		17,868		548
Hanmi Financial		7,814		237
Hannon Armstrong Sustainable Infrastructure Capital‡		95,319		2,293
Hanover Insurance Group		5,922		640
HCI Group		1,800		54
Heritage Commerce		126,496		1,938
Heritage Financial		122,480		3,772


Description	Shares		Value (000)
HomeStreet*		6,497	$	188
Hope Bancorp		30,896		564
Horace Mann Educators		27,915		1,231
IBERIABANK		53,501		4,146
Independent Bank		6,592		460
Infinity Property & Casualty		2,581		274
International. FCStone*		3,597		153
Invesco Mortgage Capital‡		26,700		476
Investar Holding		37,567		905
Investment Technology Group		89,578		1,724
LegacyTexas Financial Group		10,124		427
LendingTree*		1,797		612
LPL Financial Holdings		26,660		1,523
Luther Burbank*		33,014		398
Maiden Holdings		16,265		107
MarketAxess Holdings		4,072		822
Meta Financial Group		2,194		203
National Bank Holdings, Cl A		81,306		2,637
Navigators Group		5,433		265
NBT Bancorp		10,436		384
NMI Holdings, Cl A*		12,890		219
Northfield Bancorp		11,267		192
Northwest Bancshares		24,559		411
OFG Bancorp		10,009		94
Old Line Bancshares		44,383		1,307
Old National Bancorp		120,799		2,108
OM Asset Management		160,338		2,686
Opus Bank*		62,458		1,705
Oritani Financial		8,986		147
Orrstown Financial Services		15,045		380
Pacific Premier Bancorp*		9,200		368
PacWest Bancorp		25,169		1,269
Piper Jaffray		3,420		295
PRA Group*		10,887		361
Primerica		40,650		4,128
ProAssurance		12,742		728
Prosperity Bancshares		59,756		4,187
Provident Financial Services		14,508		391
Radian Group		90,900		1,873
RLI		9,308		565
S&T Bancorp		8,374		333
Safety Insurance Group		3,664		295
Santander Consumer USA Holdings		108,750		2,025
Selective Insurance Group		13,899		816
ServisFirst Bancshares		10,809		449
Shore Bancshares		55,922		934
Sierra Bancorp		12,985		345

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
Simmons First National, Cl A		9,396	$	537
SmartFinancial*		19,959		433
Solar Capital		52,347		1,058
Southern First Bancshares*		4,601		190
Southern National Bancorp of Virginia		121,976		1,955
Southside Bancshares		6,654		224
State Auto Financial		32,498		946
State Bank Financial		86,828		2,591
Sterling Bancorp*		51,396		653
Stewart Information Services		5,723		242
Sunshine Bancorp*		47,384		1,087
SVB Financial Group*		7,690		1,798
Synovus Financial		37,840		1,814
TCF Financial		100,510		2,060
Texas Capital Bancshares*		5,965		530
Third Point Reinsurance*		20,934		307
Tompkins Financial		2,902		236
TriCo Bancshares		26,853		1,017
TrustCo Bank		23,196		213
UMB Financial		26,712		1,921
Umpqua Holdings		192,967		4,014
United Community Banks		17,294		487
United Fire Group		5,103		233
United Insurance Holdings		5,302		91
Universal Insurance Holdings		7,471		204
Veritex Holdings*		20,727		572
Virtus Investment Partners		1,677		193
Waddell & Reed Financial, Cl A		20,011		447
Walker & Dunlop*		6,718		319
WashingtonFirst Bankshares		48,489		1,661
WesBanco		42,008		1,708
Westamerica Bancorporation		36,806		2,192
Western Alliance Bancorp*		31,555		1,787
WisdomTree Investments		27,662		347
World Acceptance*		1,494		121
Zions Bancorporation		62,000		3,151

				190,128

Health Care — 8.6%
Abaxis		5,491		272
Acadia Healthcare*		32,258		1,053
Aceto		6,810		70
Acorda Therapeutics*		11,268		242
Aerie Pharmaceuticals*		38,622		2,308
Almost Family*		2,900		161
AMAG Pharmaceuticals*		9,091		120
Amedisys*		6,855		361


Description	Shares		Value (000)
AMN Healthcare Services*		11,467	$	565
Amphastar Pharmaceuticals*		8,112		156
Analogic		2,917		244
AngioDynamics*		8,403		140
ANI Pharmaceuticals*		2,047		132
Anika Therapeutics*		3,399		183
AxoGen*		56,766		1,606
BioTelemetry*		7,415		222
Bluebird Bio*		11,456		2,040
Cambrex*		7,715		370
Cantel Medical		8,546		879
Catalent*		36,080		1,482
Charles River Laboratories International*		10,614		1,162
Chemed		12,611		3,065
Community Health Systems*		29,874		127
Computer Programs & Systems		2,615		79
CONMED		6,002		306
Corcept Therapeutics*		22,400		405
CorVel*		2,500		132
Cross Country Healthcare*		115,459		1,473
CryoLife*		60,619		1,161
Cutera*		13,580		616
Cytokinetics*		11,598		95
Depomed*		14,885		120
Diplomat Pharmacy*		11,625		233
Eagle Pharmaceuticals*		1,944		104
Emergent BioSolutions*		8,458		393
Enanta Pharmaceuticals*		3,297		193
Ensign Group		11,592		257
Envision Healthcare*		37,108		1,282
FibroGen*		17,010		806
Foundation Medicine*		3,055		208
GenMark Diagnostics*		275,086		1,147
Haemonetics*		30,875		1,793
Halozyme Therapeutics*		54,665		1,107
HealthEquity*		12,339		576
HealthSouth		111,413		5,505
HealthStream*		5,977		138
Heska*		1,541		124
HMS Holdings*		48,408		821
ICU Medical*		8,596		1,857
Impax Laboratories*		17,839		297
Innoviva*		17,151		243
Inogen*		4,110		489
Insulet*		41,364		2,854
Integer Holdings*		6,784		307

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
Integra LifeSciences Holdings*		15,245	$	730
Intersect ENT*		25,960		841
Invacare		7,493		126
K2M Group Holdings*		77,145		1,389
Kindred Healthcare*		20,387		198
Lannett*		7,285		169
Lantheus Holdings*		41,247		843
LeMaitre Vascular		3,700		118
LHC Group*		3,922		240
Ligand Pharmaceuticals*		15,113		2,069
LivaNova*		10,460		836
Luminex		9,944		196
Magellan Health*		5,771		557
Medicines*		15,295		418
MEDNAX*		31,468		1,682
Meridian Bioscience		9,833		138
Merit Medical Systems*		66,744		2,883
MiMedx Group*		24,570		310
Momenta Pharmaceuticals*		18,416		257
Myriad Genetics*		16,633		571
NanoString Technologies*		113,350		847
Natus Medical*		7,620		291
Nektar Therapeutics, Cl A*		57,462		3,432
Neogen*		9,060		745
NeoGenomics*		188,708		1,672
Neurocrine Biosciences*		15,819		1,227
Novocure*		42,785		864
Omnicell*		37,765		1,832
OraSure Technologies*		14,612		276
Orthofix International*		4,381		240
Oxford Immunotec Global*		107,713		1,505
PetIQ, Cl A*		35,504		775
Phibro Animal Health, Cl A		4,740		159
Portola Pharmaceuticals, Cl A*		11,675		568
PRA Health Sciences*		20,845		1,898
Prestige Brands Holdings*		32,377		1,438
Progenics Pharmaceuticals*		15,997		95
Providence Service*		35,888		2,130
Puma Biotechnology*		7,890		780
Quality Systems*		11,435		155
Quidel*		51,284		2,223
Quorum Health*		6,400		40
Repligen*		9,029		328
Sage Therapeutics*		4,450		733
Sarepta Therapeutics*		28,575		1,590
Select Medical Holdings*		25,473		450
Spectrum Pharmaceuticals*		21,775		413


Description	Shares		Value (000)
Sucampo Pharmaceuticals, Cl A*		6,000	$	108
Supernus Pharmaceuticals*		12,136		484
Surmodics*		3,000		84
Tabula Rasa HealthCare*		35,570		998
Tactile Systems Technology*		3,300		96
Teladoc*		78,789		2,746
Tivity Health*		8,187		299
US Physical Therapy		3,008		217
Varex Imaging*		9,069		364
WellCare Health Plans*		17,560		3,531

				92,285

Industrials — 20.8%
AAON		9,717		357
AAR		36,483		1,433
ABM Industries		13,251		500
Actuant, Cl A		14,386		364
Advanced Drainage Systems		108,430		2,586
Aegion, Cl A*		7,604		193
AerCap Holdings*		42,490		2,235
Aerojet Rocketdyne Holdings*		17,952		560
Aerovironment*		5,109		287
Air Transport Services Group*		141,765		3,280
Alamo Group		2,277		257
Albany International, Cl A		27,858		1,712
Allegiant Travel, Cl A		2,962		458
Altra Industrial Motion		59,999		3,024
American Woodmark*		3,436		448
AMETEK		50,800		3,681
Apogee Enterprises		67,728		3,097
Applied Industrial Technologies		9,315		634
ArcBest		43,879		1,569
Astec Industries		4,614		270
Atlas Air Worldwide Holdings*		6,120		359
Axon Enterprise*		12,733		337
AZZ		19,927		1,018
Barnes Group		38,247		2,420
Beacon Roofing Supply*		20,640		1,316
Brady, Cl A		11,538		437
Briggs & Stratton		10,328		262
Brink's		56,845		4,474
Builders FirstSource*		92,725		2,020
BWX Technologies, Cl W		24,525		1,484
CAI International*		52,054		1,474
Casella Waste Systems, Cl A*		79,693		1,835
Celadon Group		354,458		2,269
Chart Industries*		44,192		2,071

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
CIRCOR International		3,816	$	186
Columbus McKinnon		110,159		4,404
Comfort Systems USA		8,768		383
Commercial Vehicle Group*		158,875		1,698
Covanta Holding		160,476		2,712
Covenant Transportation Group, Cl A*		120,662		3,467
CPI Aerostructures*		165,592		1,482
Cubic		5,953		351
Daseke*		52,485		750
Deluxe		42,400		3,258
DXP Enterprises*		90,152		2,666
Dycom Industries*		20,905		2,329
Echo Global Logistics*		100,198		2,806
EMCOR Group		51,280		4,192
Encore Wire		5,018		244
Engility Holdings*		4,529		128
EnPro Industries		23,424		2,190
ESCO Technologies		6,212		374
Essendant		8,525		79
Exponent		6,201		441
Federal Signal		14,400		289
Forrester Research		2,211		98
Forward Air		24,475		1,406
Franklin Electric		9,206		423
FTI Consulting*		9,000		387
GATX		48,990		3,045
Generac Holdings*		22,755		1,127
General Cable		77,730		2,301
Genesee & Wyoming, Cl A*		20,935		1,648
Gibraltar Industries*		12,121		400
Global Brass & Copper Holdings		20,814		689
Greenbrier		6,901		368
Griffon		6,978		142
Harsco*		19,323		360
Hawaiian Holdings		12,537		500
Healthcare Services Group		17,405		918
Heartland Express		12,062		282
Heidrick & Struggles International		4,300		106
Herc Holdings*		21,960		1,375
Hillenbrand		15,120		676
HNI		70,598		2,723
Hub Group, Cl A*		93,334		4,471
InnerWorkings*		180,409		1,810
Insperity		8,909		511
Insteel Industries		4,085		116
Interface, Cl A		94,915		2,387
ITT		155,248		8,286


Description	Shares		Value (000)
John Bean Technologies		33,037	$	3,661
Kaman		6,687		393
KBR		190,771		3,783
Kelly Services, Cl A		7,314		199
Kennametal		22,300		1,080
Korn		13,543		560
Lindsay		2,471		218
LSC Communications		8,000		121
Lydall*		4,162		211
Marten Transport		150,155		3,048
Matson		9,933		296
Matthews International, Cl A		32,937		1,739
McGrath RentCorp		117,749		5,532
Mercury Systems*		71,886		3,691
Meritor*		74,180		1,740
Middleby*		15,124		2,041
Milacron Holdings*		202,170		3,870
Mobile Mini		84,650		2,920
Moog, Cl A*		47,782		4,150
Mueller Industries		13,804		489
Multi-Color		3,351		251
MYR Group*		3,800		136
National Presto Industries		1,301		129
Navigant Consulting*		10,783		209
Navistar International*		27,675		1,187
On Assignment*		76,722		4,931
Orbital ATK		7,907		1,040
Orion Group Holdings*		8,200		64
Owens Corning		18,100		1,664
Patrick Industries*		5,741		399
PGT Innovations*		11,992		202
Powell Industries		2,010		58
Proto Labs*		5,946		612
Quanex Building Products		8,393		196
Quanta Services*		41,445		1,621
Raven Industries		8,715		299
RBC Bearings*		13,532		1,710
Resources Connection		7,100		110
Revolution Lighting Technologies*		231,829		763
Roadrunner Transportation Systems*		8,889		69
RR Donnelley & Sons		16,300		152
Rush Enterprises, Cl A*		32,875		1,670
Saia*		35,304		2,498
Simpson Manufacturing		79,458		4,562
SkyWest		12,399		658
Snap-on		21,370		3,725
SP Plus*		49,888		1,851

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
SPX*		10,253	$	322
SPX FLOW*		10,183		484
Standex International		2,996		305
Steelcase, Cl A		188,537		2,866
Student Transportation		140,069		860
Team*		73,622		1,097
Tennant		4,292		312
Terex		33,819		1,631
Tetra Tech		13,370		644
Titan International		11,351		146
Titan Machinery*		23,000		487
TransUnion*		28,700		1,577
Trex*		7,045		764
Triton International		39,535		1,481
Triumph Group		135,738		3,692
TrueBlue*		9,713		267
UniFirst		3,754		619
Univar*		46,000		1,424
Universal Forest Products		14,684		552
US Ecology		5,264		268
Valmont Industries		9,340		1,549
Veritiv*		2,473		71
Viad		4,916		272
Vicor*		3,700		77
Wabash National		67,368		1,462
WABCO Holdings*		21,379		3,068
Wabtec		15,940		1,298
WageWorks*		9,496		589
Watts Water Technologies, Cl A		6,668		506
Werner Enterprises		37,695		1,457
YRC Worldwide*		225,381		3,241

				223,601

Information Technology — 16.3%
2U*		40,808		2,633
8x8*		22,125		312
ACI Worldwide*		111,155		2,520
ADTRAN		11,603		225
Advanced Energy Industries*		29,065		1,961
Agilysys*		4,400		54
Alarm.com Holdings*		6,000		227
Alpha & Omega Semiconductor*		300		5
Amkor Technology*		342,450		3,442
Anixter International*		6,887		523
Applied Optoelectronics*		4,734		179
Aspen Technology*		17,405		1,152
Attunity*		131,200		916


Description	Shares		Value (000)
Axcelis Technologies*		7,579	$	218
Badger Meter		7,000		335
Bandwidth, Cl A*		40,043		926
Barracuda Networks*		9,815		270
Bazaarvoice*		394,082		2,148
Bel Fuse, Cl B		2,556		64
Belden		25,332		1,955
Benchmark Electronics*		44,768		1,303
Blucora*		11,119		246
Bottomline Technologies*		59,638		2,068
Box, Cl A*		47,455		1,002
Brooks Automation		16,713		399
Cabot Microelectronics		6,086		573
CACI International, Cl A*		5,904		781
CalAmp*		80,597		1,727
Cardtronics*		11,033		204
CEVA*		5,121		236
Cognex		28,984		1,773
Coherent*		4,110		1,160
Cohu		6,900		151
Comtech Telecommunications		5,400		119
Control4*		4,776		142
CoStar Group*		6,295		1,869
Cray*		9,751		236
Cree*		25,200		936
CSG Systems International		7,914		347
CTS		7,986		206
Cypress Semiconductor		94,950		1,447
Daktronics		9,800		89
DHI Group*		14,897		28
Diebold Nixdorf		157,148		2,569
Digi International*		6,116		58
Diodes*		9,285		266
DSP Group*		5,000		62
DST Systems		50,800		3,153
Ebix		24,846		1,969
Electro Scientific Industries*		8,145		175
Electronics For Imaging*		180,108		5,319
Envestnet*		30,890		1,540
ePlus*		3,388		255
Euronet Worldwide*		25,535		2,152
Everi Holdings*		297,936		2,246
ExlService Holdings*		8,151		492
Extreme Networks*		87,490		1,095
Fabrinet*		9,059		260
FARO Technologies*		26,294		1,236
First Solar*		17,257		1,165

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
Five9*		110,999	$	2,762
FLIR Systems		59,145		2,757
Gartner*		8,773		1,080
Glu Mobile*		256,170		932
Gogo*		141,973		1,601
GrubHub*		34,145		2,452
GTT Communications*		42,320		1,987
Harmonic*		18,427		77
Hortonworks*		86,560		1,741
IAC*		13,400		1,639
II-VI*		13,034		612
Infinera*		74,211		470
Insight Enterprises*		29,250		1,120
Integrated Device Technology*		54,365		1,616
InterXion Holding*		32,285		1,903
IPG Photonics*		10,370		2,221
Itron*		34,083		2,324
KEMET*		11,859		179
Knowles*		72,340		1,060
Kopin*		17,900		57
Kulicke & Soffa Industries*		17,000		414
Liquidity Services*		40,039		194
LivePerson*		94,321		1,085
Lumentum Holdings*		14,858		727
ManTech International, Cl A		6,210		312
Marvell Technology Group		53,085		1,140
Mattersight*		657,797		1,677
MaxLinear, Cl A*		14,648		387
Methode Electronics		8,809		353
Microsemi*		48,636		2,512
MicroStrategy, Cl A*		2,245		295
Mimecast*		93,645		2,685
MKS Instruments		23,937		2,262
Model N*		77,781		1,225
Monotype Imaging Holdings		10,062		242
MTS Systems		4,288		230
Nanometrics*		5,858		146
NETGEAR*		7,595		446
New Relic*		21,680		1,252
NIC		15,964		265
Novanta*		26,951		1,348
Nutanix, Cl A*		31,530		1,112
Oclaro*		40,659		274
OSI Systems*		4,295		277
Park Electrochemical		4,278		84
PDF Solutions*		6,900		108
Perficient*		8,081		154


Description	Shares		Value (000)
PFSweb*		83,652	$	622
Photronics*		15,800		135
Plexus*		8,062		490
Power Integrations		7,112		523
Progress Software		11,467		488
Proofpoint*		8,495		754
Pure Storage, Cl A*		74,605		1,183
Qualys*		7,652		454
QuinStreet*		8,000		67
Radware*		53,965		1,047
Rambus*		26,239		373
RealPage*		43,345		1,920
RingCentral, Cl A*		86,505		4,187
Rogers*		34,325		5,558
Rudolph Technologies*		7,265		174
Sanmina*		17,304		571
ScanSource*		6,152		220
Semtech*		15,829		541
ServiceNow*		12,054		1,572
Shopify, Cl A*		7,963		804
Shutterstock*		4,249		183
SMART Global Holdings*		24,765		835
SolarEdge Technologies*		8,694		326
Splunk*		14,614		1,211
SPS Commerce*		4,014		195
Square, Cl A*		54,575		1,892
Stamps.com*		3,899		733
Super Micro Computer*		9,215		193
Sykes Enterprises*		9,604		302
Synchronoss Technologies*		11,214		100
Take-Two Interactive Software*		7,623		837
TeleTech Holdings		3,273		132
Teradyne		81,075		3,395
TiVo		65,300		1,019
Trimble*		58,250		2,367
TTM Technologies*		21,966		344
Universal Display		45,962		7,935
USA Technologies*		107,470		1,048
Varonis Systems*		33,745		1,638
VASCO Data Security International*		6,863		95
Veeco Instruments*		11,143		165
VeriFone Systems*		68,977		1,222
Viavi Solutions*		54,397		475
Virtusa*		29,940		1,320
Vishay Intertechnology		167,020		3,466
Vocera Communications*		82,882		2,505
XO Group*		6,175		114

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
Xperi		224,463	$	5,477
Zebra Technologies, Cl A*		20,702		2,149
Zendesk*		32,050		1,085
Zynga, Cl A*		83,765		335

				175,691

Materials — 6.4%
A Schulman		7,148		266
AdvanSix*		7,325		308
AK Steel Holding*		75,605		428
Alamos Gold, Cl A		60,822		396
American Vanguard		5,985		118
AptarGroup		35,260		3,042
Avery Dennison		34,535		3,967
Balchem		7,658		617
Bemis		54,050		2,583
Boise Cascade		9,265		370
Calgon Carbon		12,244		261
Carpenter Technology		17,438		889
Celanese, Cl A		11,900		1,274
Century Aluminum*		12,012		236
Chemours		46,400		2,323
Clearwater Paper*		3,972		180
Commercial Metals		277,604		5,918
Compass Minerals International		60,407		4,364
Deltic Timber		2,573		236
Eagle Materials		14,980		1,697
Ferroglobe*		278,442		4,511
Flotek Industries*		15,998		75
FMC		49,500		4,686
FutureFuel		6,638		94
Hawkins		2,181		77
Haynes International		2,865		92
HB Fuller		12,010		647
Ingevity*		10,059		709
Innophos Holdings		4,714		220
Innospec		5,771		407
Kaiser Aluminum		4,015		429
KapStone Paper and Packaging		20,925		475
KMG Chemicals		11,279		745
Koppers Holdings*		4,830		246
Kraton*		63,218		3,045
LSB Industries*		5,985		52
Materion		4,833		235
Mercer International		110,898		1,586
Myers Industries		4,972		97
Neenah Paper		4,044		367


Description	Shares		Value (000)
Olin		23,117	$	822
Olympic Steel		2,649		57
PH Glatfelter		169,463		3,633
Quaker Chemical		3,194		482
Rayonier Advanced Materials		12,482		255
Schweitzer-Mauduit International		7,391		335
Silgan Holdings		147,773		4,343
Steel Dynamics		38,000		1,639
Stepan		4,754		375
Summit Materials, Cl A*		57,265		1,800
SunCoke Energy*		15,568		187
TimkenSteel*		9,121		139
Tredegar		5,776		111
US Concrete*		23,928		2,002
US Silica Holdings		19,416		632
Westlake Chemical		36,440		3,882

				68,962

Real Estate — 3.7%
Acadia Realty Trust‡		19,977		547
Agree Realty‡		7,026		361
American Assets Trust‡		9,903		379
Armada Hoffler Properties‡		10,319		160
Brandywine Realty Trust‡		110,519		2,010
CareTrust‡		18,226		306
CatchMark Timber Trust, Cl A‡		128,973		1,693
CBL & Associates Properties‡		41,251		234
Cedar Realty Trust‡		19,754		120
Chatham Lodging Trust‡		10,945		249
Chesapeake Lodging Trust‡		14,445		391
Community Healthcare Trust‡		54,527		1,532
Cousins Properties‡		171,744		1,589
DiamondRock Hospitality‡		47,937		541
Easterly Government Properties‡		10,400		222
EastGroup Properties‡		8,185		723
Education Realty Trust‡		76,524		2,672
Four Corners Property Trust‡		14,722		378
Franklin Street Properties‡		25,831		277
Getty Realty‡		7,968		216
Government Properties Income Trust‡		23,821		442
Hersha Hospitality Trust, Cl A‡		8,987		156
HFF, Cl A*		8,822		429
Independence Realty Trust‡		20,166		204
Kite Realty Group Trust‡		20,091		394
Lexington Realty Trust‡		51,782		500
LTC Properties‡		9,517		415

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund


Description	Shares		Value (000)
MedEquities Realty Trust‡		119,545	$	1,341
National Storage Affiliates Trust‡		11,723		320
Outfront Media‡		162,504		3,770
Pennsylvania‡		16,887		201
PS Business Parks‡		4,774		597
QTS Realty Trust, Cl A‡		43,620		2,362
Ramco-Gershenson Properties Trust‡		19,115		282
Rayonier‡		89,201		2,821
RE/MAX Holdings, Cl A		4,128		200
Retail Opportunity Investments‡		215,525		4,300
RLJ Lodging Trust‡		92,457		2,031
Saul Centers‡		2,807		173
STAG Industrial‡		48,372		1,322
Summit Hotel Properties‡		25,020		381
Taubman Centers‡		35,205		2,304
Universal Health Realty Income Trust‡		2,938		221
Urstadt Biddle Properties, Cl A‡		6,803		148
Whitestone, Cl B‡		9,000		130

				40,044

Telecommunication Services — 0.9%
ATN International		2,565		142
Boingo Wireless*		71,566		1,610
Cincinnati Bell*		10,181		212
Cogent Communications Holdings		9,942		450
Consolidated Communications Holdings		15,535		189
Frontier Communications		18,600		126
General Communication, Cl A*		6,372		249
Hawaiian Telcom Holdco*		18,385		567
Iridium Communications*		20,082		237
Loral Space & Communications*		68,830		3,032
Spok Holdings		4,500		71
Vonage Holdings*		244,945		2,491

				9,376

Utilities — 1.3%
ALLETE		40,817		3,035
American States Water		8,816		511
AquaVenture Holdings*		65,807		1,021
Avista		15,333		789
California Water Service Group		11,489		521
Dynegy, Cl A*		347,566		4,119
El Paso Electric		9,697		537
Northwest Natural Gas		6,863		409
South Jersey Industries		19,074		596
Spire		11,485		863


Description	Shares		Value (000)
Unitil		24,861	$	1,134

				13,535

Total Common Stock (Cost $895,225) (000)				1,040,174

EXCHANGE TRADED FUNDS — 0.3%
iShares Russell 2000 ETF		10,889		1,660
iShares Russell 2000 Value ETF		10,996		1,383

Total Exchange Traded Funds (Cost $2,557) (000)				3,043

RIGHTS — 0.0%
	Number of Rights
Chelsea Therapeutics International*† (B)		2,000		—
Durata Therapeutics*† (B)		900		—
Dyax, Expires 12/31/2019* (B)		12,613		31
Media General*† (B)		9,318		1
Tobira Therapeutics, Expires 12/31/2028* (B)		900		—

Total Rights (Cost $—) (000)				32

SHORT-TERM INVESTMENT — 3.2%
	Shares
State Street Institutional Treasury Money Market Fund, Cl Institutional, 1.160% (C)		34,334,138		34,334

Total Short-Term Investment (Cost $34,334) (000)				34,334

Total Investments In Securities — 100.2% (Cost $932,116) (000)			$	1,077,583

Percentages are based on net assets of $1,075,158 (000).

A list of the open futures contracts held by the Fund at December 31, 2017, is as follows (000):

Type of Contract

Number
of
Contracts
Long

Expiration
Date

Notional
Amount

Value

Unrealized
Appreciation

Russell 2000 Index E-MINI

110

Mar-2018

8,411

8,451

*	Non-income producing security.

‡	Real Estate Investment Trust

†	Currently, expiration date is unavailable.

(A)

Security considered Master Limited Partnership. At December 31, 2017, this security amounted to $436 (000) or 0.0% of Net Assets.

(B)

Level 3 security fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of December 31, 2017, was $32 (000) and represented 0.0% of Net Assets.

(C)

The rate reported is the 7-day effective yield as of December 31, 2017.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Small Cap Equity Fund

ADR — American Depositary Receipt

Cl — Class

ETF — Exchange Traded Fund

The following is a list of the level of inputs used as of December 31, 2017, in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock	$	1,040,174	$	—	$	—	$	1,040,174
Exchange Traded Funds		3,043		—		—		3,043
Rights		—		—		32		32
Short-Term Investment		34,334		—		—		34,334

Total Investments in Securities	$	1,077,551	$	—	$	32	$	1,077,583


Other Financial Instruments	Level 1		Level 2		Level 3		Total
Futures Contracts**
Unrealized Appreciation	$	40	$	—	$	—	$	40

Total Other Financial Instruments	$	40	$	—	$	—	$	40

**	Futures contracts are valued at the unrealized appreciation on the instrument.

For the year ended December 31, 2017, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended December 31, 2017, there were no transfers in and out of Level 3. All transfers, if any, are recognized by the Fund at the end of the year.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund

SECTOR WEIGHTINGS† (unaudited)

LOGO

†	Percentages based on total investments.

SCHEDULE OF INVESTMENTS


Description	Shares		Value (000)
COMMON STOCK — 96.1%
Australia — 3.0%
Abacus Property Group‡		18,202	$	59
Accent Group		15,190		10
Aconex*		8,021		48
Adelaide Brighton		21,328		109
AGL Energy		11,117		211
Ainsworth Game Technology*		5,399		9
ALS		140,835		768
Altium		5,875		61
Alumina		470,141		891
Amcor		32,754		394
AMP		50,603		205
Ansell		7,351		140
APA Group		18,722		122
APN Outdoor Group		7,424		29
ARB		3,836		56
Ardent Leisure Group		22,473		35
Aristocrat Leisure		9,435		174
Asaleo Care		280,915		329
ASX		3,148		135
Aurizon Holdings		33,365		129
Ausdrill		25,524		52
AusNet Services		26,599		37
Austal		12,906		18
Australia & New Zealand Banking Group		166,512		3,733


Description	Shares		Value (000)
Australian Agricultural*		20,716	$	21
Australian Pharmaceutical Industries		19,473		26
Automotive Holdings Group		12,095		34
Aventus Retail Property Fund‡		11,201		20
Aveo Group		21,860		46
Bank of Queensland		6,607		66
Bapcor		14,045		62
Beach Energy		108,085		105
Bega Cheese		8,574		48
Bellamy’s Australia*		3,993		33
Bendigo & Adelaide Bank		8,051		73
BHP Billiton		68,359		1,576
Blackmores		676		89
BlueScope Steel		100,169		1,200
Boral		20,132		122
Brambles		26,961		212
Breville Group		4,591		45
Brickworks		4,260		49
BT Investment Management		9,345		82
BWP Trust‡		30,570		74
Caltex Australia		17,869		475
carsales.com		57,124		645
Cedar Woods Properties		2,353		11
Centuria Industrial‡		11,160		22
Challenger		9,778		107
Charter Hall Group‡		22,471		106
Charter Hall Long Wale‡		5,923		19
Charter Hall Retail‡		16,316		53
CIMIC Group		1,699		68
Cleanaway Waste Management		858,909		1,005
Coca-Cola Amatil		112,192		745
Cochlear		935		125
Commonwealth Bank of Australia		29,665		1,860
Computershare		7,832		100
Corporate Travel Management		3,588		58
Costa Group Holdings		12,822		66
Credit Group		2,528		44
Cromwell Property Group‡		74,113		58
Crown Resorts		5,974		61
CSL		7,764		856
CSR		24,573		91
Dexus‡		17,094		130
Domain Holdings Australia*		65,240		175
Domino’s Pizza Enterprises		914		33
Donaco International		25,064		7
Downer EDI		30,087		163
DuluxGroup		96,833		578

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Eclipx Group		12,958	$	41
Estia Health		12,273		33
Evolution Mining		58,645		121
Fairfax Media		652,410		398
FlexiGroup		14,134		19
Flight Centre Travel Group		1,077		37
Folkestone Education Trust‡		8,496		19
Fortescue Metals Group		26,803		102
Freedom Foods Group		3,672		15
G8 Education		20,732		55
Galaxy Resources*		18,998		57
Gateway Lifestyle		16,502		28
GDI Property Group‡		19,097		19
Genworth Mortgage Insurance Australia		14,780		35
Goodman Group‡		30,546		200
GPT Group‡		30,983		124
GrainCorp, Cl A		12,152		77
Greencross		4,688		23
Growthpoint Properties Australia‡		13,544		36
GUD Holdings		57,902		551
GWA Group		7,400		16
Hansen Technologies		6,846		21
Harvey Norman Holdings		11,807		38
Healthscope		33,196		54
HT&E		13,604		20
IDP Education		5,550		27
Iluka Resources		48,185		382
Incitec Pivot		28,454		87
Independence Group NL		24,101		90
Infigen Energy*		49,136		26
Inghams Group		8,068		22
Insurance Australia Group		40,117		227
Investa Office Fund‡*		26,337		94
InvoCare		5,573		70
IOOF Holdings		14,794		124
IPH		37,919		163
IRESS		7,670		69
James Hardie Industries		7,566		134
Japara Healthcare		11,253		17
JB Hi-Fi		5,744		112
Karoon Gas Australia*		10,804		11
Lend Lease Group		9,531		122
Link Administration Holdings		23,073		152
Macquarie Atlas Roads Group		29,949		147
Macquarie Group		5,448		424
Magellan Financial Group		5,960		125


Description	Shares		Value (000)
Mantra Group		15,612	$	48
Mayne Pharma Group*		61,782		34
McMillan Shakespeare		3,811		52
Medibank		47,218		121
Mesoblast*		16,915		19
Metcash		170,755		416
Michael Hill International		10,400		10
Mineral Resources		7,968		131
Mirvac Group‡		63,705		117
Monadelphous Group		4,546		62
Myer Holdings		38,418		20
MYOB Group		19,451		55
Nanosonics*		14,941		32
National Australia Bank		111,210		2,565
National Storage‡		32,269		39
Navitas		12,319		52
Newcrest Mining		51,254		913
NEXTDC*		14,296		67
Nine Entertainment Holdings		36,217		43
Northern Star Resources		30,348		144
Nufarm		12,548		86
OFX Group		10,103		11
Oil Search		23,064		140
oOh!media		7,485		26
Orica		130,293		1,839
Origin Energy*		29,766		219
Orocobre*		8,564		47
Orora		91,113		241
OZ Minerals		15,079		108
Pact Group Holdings		11,705		52
Perpetual		2,404		91
Pilbara Minerals*		61,940		54
Platinum Asset Management		11,702		70
Premier Investments		5,104		59
Primary Health Care		22,786		64
QBE Insurance Group		63,750		531
Qube Holdings		94,277		191
Ramsay Health Care		2,379		131
REA Group		970		58
Regis Healthcare		9,607		26
Regis Resources		23,419		79
Reliance Worldwide		19,301		59
Resolute Mining		32,105		29
Retail Food Group		7,033		14
Rio Tinto		7,151		423
Sandfire Resources NL		8,287		45
Santos*		58,486		249

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Saracen Mineral Holdings*		38,988	$	51
Scentre Group‡		89,934		293
SEEK		5,755		85
Select Harvests		3,187		12
Seven Group Holdings		5,914		71
Seven West Media		46,648		22
SG Fleet Group		4,472		14
Shopping Centres Australasia Property Group‡		42,072		76
Sigma Healthcare		193,146		150
Sims Metal Management		8,463		104
Sirtex Medical		2,990		39
SmartGroup		4,068		34
Sonic Healthcare		6,823		122
South32		82,516		225
Southern Cross Media Group		39,666		37
Spark Infrastructure Group		86,330		170
SpeedCast International		9,445		40
St. Barbara		25,708		77
Star Entertainment Grp		39,579		188
Steadfast Group		39,053		86
Stockland‡		39,328		137
Suncorp Group		21,886		237
Super Retail Group		6,649		43
Sydney Airport		18,902		104
Syrah Resources*		13,134		46
Tabcorp Holdings		33,306		145
Tassal Group		9,223		27
Technology One		12,851		50
Telstra		72,181		205
Tox Free Solutions		8,146		22
TPG Telecom		6,725		34
Transurban Group		34,687		336
Treasury Wine Estates		12,848		160
Vicinity Centres‡		57,907		123
Village Roadshow*		3,387		10
Virtus Health		3,028		12
Viva Energy‡		25,338		45
Vocus Communications		32,193		76
Washington H Soul Pattinson		8,510		118
Webjet		4,926		40
Wesfarmers		19,473		674
Western Areas		12,164		31
Westfield‡		33,463		247
Westgold Resources*		9,066		13
Westpac Banking		58,167		1,423
Whitehaven Coal		25,874		90


Description	Shares		Value (000)
WiseTech Global		4,090	$	45
Woodside Petroleum		14,518		375
Woolworths Group		149,518		3,184
WorleyParsons*		12,750		143
WPP AUNZ		14,271		10

				44,145

Austria — 0.2%
ANDRITZ		4,428		250
AT&S Austria Technologie & Systemtechnik		1,415		40
BUWOG*		5,357		185
DO & CO		293		17
Erste Group Bank*		5,100		221
EVN		2,278		46
FACC*		847		18
Immobilien Anlagen		4,026		125
IMMOFINANZ		42,036		108
Kapsch TrafficCom		173		10
Lenzing		677		86
Oesterreichische Post		7,890		354
OMV		2,562		162
Porr Ag		491		16
Raiffeisen Bank International*		2,496		90
Rhi Magnesita*		1,300		68
S IMMO		2,508		49
Schoeller-Bleckmann Oilfield Equipment*		570		58
Semperit Holding		396		11
Telekom Austria, Cl A*		8,717		81
UNIQA Insurance Group		6,958		74
Vienna Insurance Group Wiener Versicherung Gruppe		2,049		63
Voestalpine		1,933		116
Wienerberger		26,817		648
Zumtobel Group		1,488		18

				2,914

Belgium — 0.6%
Ablynx*		3,484		87
Ackermans & van Haaren		1,189		206
Aedifica‡		836		79
Ageas		3,280		160
AGFA-Gevaert*		8,255		38
Anheuser-Busch InBev		24,464		2,734
Barco		490		52
Befimmo‡		1,222		79
Bekaert		1,854		81
Biocartis* (A)		861		12

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
bpost		5,086	$	155
Cie d’Entreprises CFE		388		57
Cofinimmo‡		1,140		150
Colruyt		897		47
D’ieteren		1,278		58
Econocom Group*		6,368		46
Elia System Operator		1,744		100
Euronav		6,350		58
EVS Broadcast Equipment		832		29
Exmar*		1,664		13
Fagron*		2,058		28
Gimv		1,200		73
Greenyard		625		15
Groupe Bruxelles Lambert		1,312		142
Intervest Offices & Warehouses‡		370		10
Ion Beam Applications		910		26
KBC Ancora		1,710		108
KBC Group		37,912		3,235
Kinepolis Group		847		57
Melexis		1,058		107
Nyrstar*		3,628		29
Ontex Group		4,363		144
Orange Belgium		1,549		33
Proximus		2,600		85
Sioen Industries		310		11
Sofina		786		124
Solvay		1,288		179
Telenet Group Holding*		923		64
Tessenderlo Group*		1,528		71
UCB		2,198		175
Umicore		3,096		147
Van de Velde		209		11
Warehouses De Pauw CVA‡		892		100

				9,215

Brazil — 1.7%
Ambev ADR		676,472		4,369
Arezzo Industria e Comercio		22,100		364
Atacadao Distribuicao Comercio e Industria Ltda*		215,600		991
B2W Cia Digital*		54,815		339
Banco Bradesco ADR*		410,300		4,201
Banco BTG Pactual*		51,079		292
Banco do Brasil*		30,100		289
BM&FBovespa — Bolsa de Valores Mercadorias e Futuros*		197,800		1,358
Embraer		40,197		242
Estacio Participacoes		49,600		491


Description	Shares		Value (000)
Grendene		122,100	$	1,047
IRB Brasil Resseguros S*		20,000		205
Lojas Renner		102,300		1,095
LPS Brasil Consultoria de Imoveis*		120,635		203
Magazine Luiza		9,100		220
MRV Engenharia e Participacoes		187,200		849
Natura Cosmeticos		113,827		1,134
Porto Seguro*		103,313		1,132
Qualicorp		28,200		264
Raia Drogasil*		75,100		2,079
TOTVS		81,400		733
Ultrapar Participacoes		40,500		916
Vale*		36,300		441
Vale, Cl B ADR*		120,124		1,469
Via Varejo*		105,000		775
Vulcabras Azaleia*		13,000		36

				25,534

Canada — 4.5%
Advantage Oil & Gas*		9,800		42
Aecon Group		3,200		51
Ag Growth International		900		38
AGF Management, Cl B		3,300		21
Agnico Eagle Mines		3,800		175
Agrium		2,300		265
AGT Food & Ingredients		1,100		18
Aimia*		8,100		24
Alacer Gold*		16,300		29
Alamos Gold, Cl A		26,370		172
Alaris Royalty		2,000		33
Algonquin Power & Utilities		19,500		219
Alimentation Couche-Tard, Cl B		26,058		1,361
Allied Properties‡		2,300		77
AltaGas		3,000		68
Altius Minerals		2,300		27
Altus Group		1,800		53
Aphria*		7,500		112
ARC Resources		6,200		73
Aritzia*		3,200		32
Artis‡		3,700		42
Atco, Cl I		1,300		47
Athabasca Oil*		23,900		20
Atlantic Power*		6,900		16
ATS Automation Tooling Systems*		3,900		48
Aurora Cannabis*		17,800		136
AutoCanada		1,400		25
Avigilon*		2,100		35

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
B2Gold*		48,800	$	151
Badger Daylighting		1,900		41
Ballard Power Systems*		10,900		48
Bank of Montreal		11,100		888
Bank of Nova Scotia		56,600		3,653
Barrick Gold		69,157		1,000
Baytex Energy*		13,200		40
BCE		16,510		793
Birchcliff Energy		11,900		42
Bird Construction		2,100		17
BlackBerry*		8,700		97
Boardwalk‡		1,100		38
Bombardier*		33,500		81
Bonavista Energy		13,700		25
Bonterra Energy		1,100		13
Boralex		3,000		56
Brookfield Asset Management, Cl A		64,141		2,792
BRP		2,100		77
CAE		185,800		3,451
Cameco		6,900		64
Canaccord Genuity Group		6,500		30
Canacol Energy*		7,100		25
Canada Goose Holdings*		2,300		73
Canadian Apartment Properties‡		3,300		98
Canadian Imperial Bank of Commerce		7,500		731
Canadian National Railway		12,900		1,064
Canadian Natural Resources		71,975		2,572
Canadian Pacific Railway		7,582		1,385
Canadian Real Estate Investment Trust‡		1,800		66
Canadian Tire, Cl A		1,100		143
Canadian Utilities, Cl A		2,200		65
Canadian Western Bank		4,500		141
Canfor*		3,600		71
Canfor Pulp Products		1,700		18
Canopy Growth*		8,300		195
Capital Power		5,300		103
Cara Operations		1,400		29
Cardinal Energy		5,400		22
Cascades		3,500		38
CCL Industries, Cl B		2,400		110
Celestica*		6,000		64
Cenovus Energy		18,200		166
Centerra Gold*		11,300		58
CES Energy Solutions		13,500		69
CGI Group, Cl A*		3,500		190


Description	Shares		Value (000)
China Gold International Resources*		14,300	$	27
Choice Properties‡		2,300		24
Chorus Aviation		1,500		12
CI Financial		4,500		107
Cineplex		3,200		95
Clearwater Seafoods		2,200		13
Cogeco		300		22
Cogeco Communications		800		55
Colliers International Group		1,700		102
Cominar‡		4,500		52
Computer Modelling Group		4,600		35
Constellation Software		1,770		1,073
Corby Spirit and Wine, Cl A		600		11
Corus Entertainment		6,000		56
Cott		7,100		119
Crescent Point Energy		9,500		72
Crew Energy*		6,200		16
Crombie‡		2,200		24
CT‡		1,600		18
Descartes Systems Group*		4,000		114
Detour Gold*		8,900		105
DIRTT Environmental Solutions*		5,300		28
Dollarama		1,800		225
Dorel Industries, Cl B		1,400		35
Dream Global‡		4,100		40
Dream Industrial‡		1,300		9
Dream Office‡		1,820		32
DREAM Unlimited, Cl A*		3,900		24
ECN Capital		20,000		63
Eldorado Gold		40,900		59
Element Financial		5,800		44
Emera		1,100		41
Empire		3,000		58
Enbridge		28,200		1,103
Enbridge Income Fund Holdings		5,900		140
Encana		16,500		220
Endeavour Mining*		3,600		73
Endeavour Silver*		7,200		17
Enercare		5,300		86
Enerflex		4,400		54
Enerplus		12,500		122
Enghouse Systems		1,000		49
Ensign Energy Services		7,500		39
Entertainment One		19,514		86
Equitable Group		700		40
Evertz Technologies		1,000		14
Exchange Income		400		11

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Exco Technologies		1,300	$	10
Extendicare		4,500		33
Fairfax Financial Holdings		5,670		3,020
Fiera Capital, Cl A		2,700		28
Finning International		2,600		66
First Capital Realty		2,800		46
First Majestic Silver*		8,500		57
First National Financial		900		21
First Quantum Minerals		11,800		165
FirstService		1,700		118
Fortis		7,100		261
Fortuna Silver Mines*		8,500		44
Franco-Nevada		9,953		795
Freehold Royalties		5,100		57
Genworth MI Canada		2,100		73
George Weston		800		69
Gibson Energy		6,900		100
Gildan Activewear		14,424		466
Gluskin Sheff + Associates		1,700		23
Goldcorp		15,000		191
Granite‡		1,100		43
Great Canadian Gaming*		2,600		70
Great-West Lifeco		5,000		140
Guyana Goldfields*		9,000		36
H&R‡		2,100		36
High Liner Foods		1,200		14
Home Capital Group, Cl B*		3,300		45
Hudbay Minerals		13,900		123
Hudson’s Bay		4,000		36
Husky Energy*		6,100		86
Hydro One (A)		5,100		91
IAMGOLD*		23,100		135
IGM Financial		1,300		46
Imperial Oil		5,100		159
Industrial Alliance Insurance & Financial Services		1,800		86
Innergex Renewable Energy		5,100		58
Intact Financial		2,300		192
Inter Pipeline		6,100		126
Interfor*		3,600		60
InterRent‡		1,600		12
Intertape Polymer Group		2,900		50
Ivanhoe Mines, Cl A*		31,300		106
Jean Coutu Group PJC, Cl A		1,100		21
Just Energy Group		4,900		21
Kelt Exploration*		8,300		47
Keyera		3,500		99


Description	Shares		Value (000)
Killam Apartment‡		3,500	$	40
Kinaxis*		1,100		67
Kinder Morgan Canada (A)		6,000		81
Kinross Gold*		21,600		93
Kirkland Lake Gold		9,000		138
Klondex Mines*		9,500		25
Knight Therapeutics*		5,800		39
Labrador Iron Ore Royalty		3,400		74
Laurentian Bank of Canada		2,000		90
Linamar		1,000		58
Lithium Americas*		3,800		34
Loblaw		26,336		1,429
Lucara Diamond		15,500		35
Lundin Gold*		4,300		15
Lundin Mining		10,500		70
MAG Silver*		3,800		47
Magellan Aerospace		700		12
Magna International		16,007		907
Major Drilling Group International*		4,800		27
Manulife Financial		34,000		709
Maple Leaf Foods		4,400		125
Martinrea International		4,900		63
Maxar Technologies		2,900		187
Medical Facilities		1,300		15
MEG Energy*		12,500		51
Methanex		1,500		91
Metro, Cl A		3,700		118
Morguard‡		1,400		15
Morneau Shepell		2,700		48
MTY Food Group		900		40
Mullen Group		5,500		69
National Bank of Canada		5,900		294
Nevsun Resources		16,900		41
New Flyer Industries		2,600		113
New Gold*		29,400		97
NexGen Energy*		15,700		40
Norbord		2,100		71
North West		2,500		60
Northern Dynasty Minerals*		16,900		30
Northland Power		6,100		114
Northview Apartment‡		1,200		24
NorthWest Healthcare Properties‡		2,200		20
Novagold Resources*		12,800		50
NuVista Energy*		9,600		61
Obsidian Energy*		26,600		33
OceanaGold		31,100		80
Onex		1,300		95

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Open Text		4,300	$	153
Osisko Gold Royalties		5,900		68
Osisko Mining*		8,300		22
Painted Pony Energy*		7,400		16
Pan American Silver		7,600		118
Paramount Resources, Cl A*		3,793		59
Parex Resources*		7,900		114
Parkland Fuel		6,600		141
Pason Systems		4,000		58
Pembina Pipeline		8,472		307
Pengrowth Energy*		25,600		20
Peyto Exploration & Development		9,100		109
Potash Corp of Saskatchewan		14,200		291
Power Corp of Canada		5,900		152
Power Financial		4,300		118
PrairieSky Royalty		23,493		599
Precision Drilling*		16,600		50
Premier Gold Mines*		10,700		31
Premium Brands Holdings		1,300		107
Pretium Resources*		7,800		89
ProMetic Life Sciences*		31,100		32
Pure Industrial‡		6,600		36
Quebecor, Cl B		8,400		158
Raging River Exploration*		12,000		76
Restaurant Brands International		3,800		234
RioCan‡		2,400		47
Ritchie Bros Auctioneers		33,631		1,007
Rogers Communications, Cl B		18,541		945
Rogers Sugar		4,600		23
Royal Bank of Canada		33,618		2,745
Russel Metals		3,400		79
Sandstorm Gold*		8,400		42
Saputo		3,600		129
Seabridge Gold*		2,300		26
Secure Energy Services		9,000		63
SEMAFO*		17,600		50
Seven Generations Energy*		4,400		62
Shaw Communications, Cl B		7,100		162
ShawCor		3,500		76
Shopify*		1,400		142
Sienna Senior Living		2,100		30
Sierra Wireless*		1,700		35
Silvercorp Metals		9,100		24
Sleep Country Canada Holdings (A)		1,900		50
SmartCentres‡		900		22
SNC-Lavalin Group		2,900		132
Spartan Energy*		9,666		55


Description	Shares		Value (000)
Spin Master* (A)		1,385	$	60
Sprott		9,400		18
SSR Mining*		6,200		55
Stantec		5,800		162
Stars Group*		6,200		144
Stella-Jones		2,300		93
Stornoway Diamond*		30,200		16
Student Transportation		4,800		30
Sun Life Financial		10,600		437
Suncor Energy		154,252		5,663
Superior Plus		7,200		68
Surge Energy		15,600		26
Tahoe Resources*		15,700		75
Tamarack Valley Energy*		4,700		11
Teck Resources, Cl B		9,900		259
TELUS		3,200		121
TFI International		4,600		120
Thomson Reuters		4,800		209
Timbercreek Financial		3,700		28
TMAC Resources*		1,800		14
TMX Group		1,900		106
TORC Oil & Gas		7,100		43
Torex Gold Resources*		4,100		39
Toromont Industries		4,000		174
Toronto-Dominion Bank		59,050		3,460
Total Energy Services		2,300		27
Tourmaline Oil*		4,000		72
TransAlta		15,100		90
TransAlta Renewables		5,100		54
TransCanada		26,500		1,290
Transcontinental, Cl A		3,200		63
Trevali Mining*		44,900		54
Trican Well Service*		15,050		49
Tricon Capital Group		6,100		56
Trinidad Drilling*		16,400		22
Turquoise Hill Resources*		15,100		52
Uni-Select		1,900		43
Uranium Participation*		7,200		24
Valeant Pharmaceuticals International*		5,600		117
Valener		1,900		34
Vermilion Energy		2,000		73
Wajax		1,000		20
West Fraser Timber		1,100		68
Western Forest Products		20,000		39
WestJet Airlines		1,500		31
Westshore Terminals Investment		2,800		59

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Wheaton Precious Metals		7,400	$	164
Whitecap Resources		18,700		133
Winpak		1,600		60
WPT Industrial‡		1,700		22
WSP Global		4,400		210
Yamana Gold		52,600		164

				66,257

Chile — 0.3%
CAP		11,219		143
Cia Cervecerias Unidas		60,116		902
Cia Cervecerias Unidas ADR		9,921		293
Cia Sud Americana de Vapores*		3,944,588		213
Empresas CMPC		78,470		267
Enaex		19,531		289
Quinenco		301,074		1,052
Sociedad Quimica y Minera de Chile ADR		20,011		1,187

				4,346

China — 2.1%
58.com ADR*		3,507		251
Alibaba Group Holding ADR*		66,300		11,433
Autohome ADR*		19,444		1,257
Baidu ADR*		13,491		3,160
CECEP COSTIN New Materials Group*		1,134,000		1
China Lodging Group ADR		5,896		852
China Resources Beer Holdings		319,073		1,145
Ctrip.com International ADR*		36,074		1,591
Momo ADR*		3,242		79
NetEase ADR		4,900		1,691
TAL Education Group ADR*		47,194		1,402
Tsingtao Brewery, Cl H		98,000		506
Weibo ADR*		16,781		1,736
Yum China Holdings		160,697		6,431

				31,535

Colombia — 0.1%
Almacenes Exito		41,819		232
Bancolombia ADR		15,279		606
Ecopetrol ADR		4,300		63

				901

Czech Republic — 0.0%
Komercni Banka		10,933		470

Denmark — 1.4%
ALK-Abello		331		39
Alm Brand		3,559		46
Ambu, Cl B		1,489		133


Description	Shares		Value (000)
AP Moeller — Maersk, Cl A		65	$	109
AP Moeller — Maersk, Cl B		111		194
Bang & Olufsen*		1,871		45
Bavarian Nordic*		1,647		60
Carlsberg, Cl B		22,369		2,686
Chr Hansen Holding		1,721		161
Coloplast, Cl B		22,264		1,772
D/S Nordern*		1,342		25
Danske Bank		17,464		680
Dfds		1,648		88
DSV		3,215		253
FLSmidth		2,002		116
Genmab*		1,010		167
GN Store Nord		43,460		1,404
H Lundbeck		1,171		60
IC Group		439		10
ISS		7,306		283
Jyske Bank		3,278		187
Matas		2,098		27
Nets* (A)		6,223		164
Nilfisk Holding*		1,394		81
NKT*		1,394		64
NNIT (A)		484		13
Novo Nordisk, Cl B		145,471		7,843
Novozymes, Cl B		3,835		220
Orsted (A)		3,287		179
Pandora		1,854		202
Per Aarsleff Holding		1,234		39
Rockwool International, Cl B		421		119
Royal Unibrew		2,448		147
Scandinavian Tobacco Group (A)		3,243		63
Schouw		612		57
SimCorp		1,909		109
Solar, Cl B		341		22
Spar Nord Bank		4,602		53
Sydbank		3,605		145
TDC		13,694		84
Topdanmark*		2,881		125
TORM		974		8
Tryg		2,135		53
Vestas Wind Systems		26,737		1,848
William Demant Holding*		37,245		1,041
Zealand Pharma*		1,211		17

				21,241

Egypt — 0.0%
Telecom Egypt		129,194		99

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Finland — 0.8%
Amer Sports*		16,355	$	453
Cargotec, Cl B		1,974		112
Caverion*		4,850		34
Citycon		18,366		47
Cramo		2,180		51
DNA		3,122		59
Elisa		2,439		95
Finnair		2,745		42
Fortum		7,223		143
F-Secure		4,129		19
Huhtamaki		4,606		193
Kemira		5,541		76
Kesko, Cl B		3,353		182
Kone, Cl B		5,712		307
Konecranes, Cl A		3,333		153
Lehto Group		791		12
Metsa Board		9,809		84
Metso		1,965		67
Neste		2,162		138
Nokia		71,378		333
Nokian Renkaat		67,930		3,082
Oriola, Cl B		5,893		20
Orion, Cl B		1,760		66
Outokumpu		16,041		149
Outotec*		7,346		63
Ponsse		362		11
Ramirent		4,456		42
Sampo, Cl A		44,332		2,436
Sanoma		4,368		57
Stockmann Abp, Cl B*		1,290		7
Stora Enso, Cl R		9,598		152
Technopolis		8,502		43
Tieto		2,939		92
Tikkurila		93,507		1,999
Tokmanni Group		1,866		16
UPM-Kymmene		9,024		281
Uponor		3,160		64
Valmet		6,577		130
Wartsila, Cl B		8,469		534
YIT		6,213		48

				11,892

France — 6.4%
Accor		3,267		169
Aeroports de Paris		501		95
Air France-KLM*		8,521		139


Description	Shares		Value (000)
Air Liquide		101,834	$	12,837
Airbus Group		21,094		2,101
Albioma		1,587		40
ALD* (A)		5,636		87
Alstom		2,594		107
Altamir		1,526		28
Alten		1,514		126
Altran Technologies		7,745		129
Amundi (A)		968		82
Arkema		1,144		139
Assystem		389		14
Atos		1,602		233
AXA		55,464		1,646
Axway Software		357		10
Beneteau		2,029		49
BioMerieux		663		59
BNP Paribas		35,275		2,635
Boiron		395		35
Bollore		14,811		80
Bonduelle SCA		714		38
Bourbon		1,188		10
Bouygues		3,721		193
Bureau Veritas		4,548		124
Capital Gemini		2,713		322
Carrefour		9,853		213
Casino Guichard Perrachon		975		59
Cellectis*		1,293		37
Chargeurs		768		23
Cie de Saint-Gobain		8,675		479
Cie des Alpes		351		14
Cie Generale des Etablissements Michelin		2,885		414
Cie Plastic Omnium		2,976		135
CNP Assurances		2,995		69
Coface*		5,144		55
Credit Agricole		19,211		318
Danone		57,909		4,860
Dassault Aviation		43		67
Dassault Systemes		20,276		2,155
DBV Technologies*		844		43
Derichebourg		3,492		38
Devoteam		206		19
Direct Energie		409		19
Edenred		21,920		636
Eiffage		1,195		131
Electricite de France		9,366		117
Elior Group (A)		5,631		116

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Elis*		11,194	$	311
Engie		213,879		3,679
Eramet*		517		61
Essilor International Cie Generale d’Optique		17,364		2,396
Esso Francaise*		145		10
Euler Hermes Group		827		121
Eurazeo		666		62
Eurofins Scientific		1,769		1,078
Europcar Groupe (A)		4,513		56
Eutelsat Communications		2,944		68
Faurecia		1,216		95
FFP		331		40
Fnac Darty*		850		103
Fonciere Des Regions‡		581		66
Gaztransport Et Technigaz		1,156		69
Gecina‡		766		141
Genfit*		1,295		37
Getlink		50,115		645
GL Events		335		10
Groupe Crit		109		10
Guerbet		297		28
Haulotte Group		555		11
Hermes International		1,458		781
ICADE‡		562		55
ID Logistics Group*		115		19
Iliad		454		109
Imerys		1,714		162
Ingenico Group		985		105
Innate Pharma*		2,180		12
Interparfums		493		20
Ipsen		634		76
IPSOS		1,884		69
Jacquet Metal Service		510		17
JCDecaux		8,491		342
Kaufman & Broad		709		34
Kering		1,302		614
Klepierre‡		3,829		169
Korian		2,360		83
LafargeHolcim*		1,512		85
Lagardere		1,990		64
Legrand		45,417		3,498
LISI		1,055		51
LNA Sante		236		17
L’Oreal		15,861		3,520
LVMH Moet Hennessy Louis Vuitton		20,010		5,892
Maisons du Monde (A)		2,182		99


Description	Shares		Value (000)
Manitou BF		418	$	15
Marie Brizard Wine & Spirits*		691		10
Mercialys‡		3,076		68
Mersen		603		27
Metropole Television		1,525		39
MGI Coutier		382		15
Natixis		16,193		128
Naturex*		348		37
Neopost		9,252		266
Nexans		1,511		93
Nexity		2,241		133
Nokia		26,897		126
Oeneo		1,058		13
Orange		34,281		595
Orpea		2,098		248
Parrot*		790		8
Pernod Ricard		44,809		7,095
Peugeot		9,979		203
Pierre & Vacances*		189		10
Plastivaloire		396		9
Publicis Groupe		3,509		239
Rallye		1,467		26
Remy Cointreau		399		55
Renault		3,244		327
Rexel		5,114		93
Rubis SCA		4,228		299
Safran		5,732		591
Sanofi		22,077		1,904
Sartorius Stedim Biotech		1,373		99
Schneider Electric		84,456		7,180
Science*		1,023		10
SCOR		2,976		120
SEB		393		73
SES, Cl A		6,287		98
Societe BIC		426		47
Societe Generale		13,177		681
Sodexo		1,535		206
SOITEC*		815		58
Solocal Group*		26,668		27
Solutions 30*		1,555		48
Sopra Steria Group		758		142
SPIE		5,668		148
SRP Groupe* (A)		660		5
Stallergenes Greer*		21		1
Ste Industrielle d’Aviation Latecoere*		2,789		19
STMicroelectronics		10,792		236
Suez		6,329		111

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Synergie		300	$	16
Tarkett		1,629		68
Technicolor		18,675		64
TechnipFMC		3,593		111
Teleperformance		3,716		532
Television Francaise 1		2,239		33
Thales		5,967		643
TOTAL		183,140		10,118
Trigano		395		69
Ubisoft Entertainment*		1,010		78
Valeo		4,049		303
Vallourec*		32,278		195
Veolia Environnement		8,123		207
Vicat		3,338		263
Vinci		8,657		885
Virbac*		453		67
Vivendi		17,773		479
Wendel		476		82
Worldline* (A)		1,932		94
X-Fab Silicon Foundries* (A)		4,225		49
Zodiac Aerospace		28,122		841

				93,712

Germany — 5.6%
Aareal Bank		2,745		124
adidas		7,335		1,470
ADLER Real Estate*		791		13
ADO Properties (A)		1,731		88
ADVA Optical Networking*		1,691		12
AIXTRON*		5,982		83
Allianz		7,700		1,770
alstria office‡		7,154		111
Amadeus Fire		328		30
AURELIUS Equity Opportunities & KGaA		1,268		87
Aurubis		1,724		160
Axel Springer		10,724		838
BASF		38,553		4,244
Bayer		80,165		10,003
Bayerische Motoren Werke		71,948		7,495
BayWa		921		35
Bechtle		1,682		140
Beiersdorf		44,505		5,228
Bertrandt		318		39
bet-at-home.com		120		15
Bilfinger		1,727		82
Borussia Dortmund GmbH & KGaA		2,535		19
Brenntag		16,638		1,054


Description	Shares		Value (000)
CANCOM		797	$	66
Capital Stage		4,956		38
Carl Zeiss Meditec		2,048		128
CECONOMY		8,975		136
CENTROTEC Sustainable		165		3
Cewe Stiftung & KGAA		313		33
comdirect bank		785		11
Commerzbank*		17,997		270
CompuGroup Medical		1,166		77
Continental		1,892		511
Covestro (A)		2,061		213
CTS Eventim & KGaA		12,324		574
Daimler		16,500		1,402
Deutsche Bank		35,491		676
Deutsche Beteiligungs		676		38
Deutsche Boerse		3,253		378
Deutsche EuroShop		2,388		97
Deutsche Lufthansa		4,015		148
Deutsche Pfandbriefbank (A)		5,991		96
Deutsche Post		16,663		795
Deutsche Telekom		111,162		1,973
Deutsche Wohnen		5,999		262
Deutz		5,203		47
DIC Asset		3,070		39
Diebold Nixdorf		388		34
DMG Mori		884		49
Draegerwerk & KGaA		73		5
Drillisch		849		70
Duerr		1,375		176
E.ON		37,077		404
Elmos Semiconductor		433		12
ElringKlinger		1,480		33
Evonik Industries		2,787		105
Evotec*		6,134		99
Ferratum		502		18
Fielmann		2,484		219
Fraport Frankfurt Airport Services Worldwide		723		80
Freenet		6,278		232
Fresenius & KGaA		7,146		558
Fresenius Medical Care & KGaA		23,064		2,429
GEA Group		6,062		291
Gerresheimer		3,099		257
Gerry Weber International		1,013		12
GFT Technologies		660		10
Grammer		505		31
Grand City Properties		5,339		126

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
GRENKE		1,335	$	127
H&R GmbH & KGaA*		694		12
Hamborner‡		4,822		57
Hamburger Hafen und Logistik		1,309		37
Hannover Rueck		2,198		277
Hapag-Lloyd* (A)		2,140		86
HeidelbergCement		2,516		272
Heidelberger Druckmaschinen*		13,201		46
Henkel & KGaA		1,761		211
Hochtief		325		58
Hornbach Baumarkt		435		16
HUGO BOSS		1,069		91
Hypoport*		140		24
Indus Holding		1,064		76
Infineon Technologies		19,527		534
Innogy (A)		2,382		93
Isra Vision		171		44
Jenoptik		2,663		88
Jungheinrich		2,620		124
K+S		3,228		80
KION Group		1,221		105
Kloeckner		3,893		48
Koenig & Bauer		701		53
Krones		798		110
KWS Saat		109		44
LANXESS		1,567		125
LEG Immobilien		3,188		364
Leoni		1,612		121
Linde*		12,977		3,031
MAN		614		70
Manz*		231		9
Merck KGaA		27,623		2,975
METRO		3,146		63
MLP		2,216		15
MorphoSys*		1,372		126
MTU Aero Engines		9,524		1,707
Muenchener Rueckversicherungs-Gesellschaft in Muenchen		2,668		578
Nemetschek		947		85
Nordex*		2,995		32
Norma Group		1,695		114
OHB		258		14
OSRAM Licht		1,637		146
PATRIZIA Immobilien*		2,031		47
Pfeiffer Vacuum Technology		369		69
ProSiebenSat.1 Media		54,801		1,887
QIAGEN*		39,213		1,233


Description	Shares		Value (000)
Rational		160	$	103
Rheinmetall		2,233		284
RHOEN-KLINIKUM		1,341		48
RIB Software		1,897		56
Rocket Internet* (A)		2,656		67
RWE*		8,783		179
S&T		1,839		40
SAF-Holland		2,523		54
Salzgitter		1,995		114
SAP		107,851		12,093
Scout24 (A)		5,628		229
Senvion*		1,099		14
SGL Carbon*		3,188		44
Siemens		13,103		1,826
Siltronic*		1,065		155
Sixt		938		84
Sixt Leasing		519		12
SLM Solutions Group*		532		30
SMA Solar Technology		569		25
Software		2,678		151
Stabilus		9,857		886
STADA Arzneimittel		2,163		229
STO & KGaA		96		15
STRATEC Biomedical		209		16
Stroeer & KGaA		1,423		105
Suedzucker		3,679		79
Surteco		337		11
Symrise		7,421		638
TAG Immobilien		5,802		110
Takkt		1,685		38
Telefonica Deutschland Holding		12,541		63
ThyssenKrupp		7,392		215
TLG Immobilien		4,512		120
TUI		14,616		301
Uniper*		3,223		101
United Internet		2,000		138
VERBIO Vereinigte BioEnergie		974		10
Volkswagen		547		111
Vonovia		8,175		407
Vossloh*		602		34
VTG		598		34
Wacker Chemie		737		143
Wacker Neuson		1,362		49
Washtec		1,002		95
Wirecard		1,991		223
Wuestenrot & Wuerttembergische		1,183		33
XING		157		51

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Zalando* (A)		1,877	$	99
zooplus*		673		122

				82,009

Greece — 0.3%
Aegean Airlines		27,543		273
Alpha Bank AE*		92,360		198
Fourlis Holdings*		54,497		376
Grivalia Properties REIC AE‡		86,436		954
Hellenic Petroleum		8,507		78
JUMBO		20,851		373
Motor Oil Hellas Corinth Refineries		58,239		1,312
OPAP		12,092		152

				3,716

Hong Kong — 5.7%
Agile Group Holdings		204,000		310
Agricultural Bank of China, Cl H		4,839,000		2,254
AIA Group		1,456,600		12,426
Ajisen China Holdings		483,000		230
ASM Pacific Technology		4,600		64
Bank of China, Cl H		6,656,000		3,271
Bank of East Asia		20,604		89
Beijing Jingkelong, Cl H		172,000		49
BOC Hong Kong Holdings		62,500		317
Bright Smart Securities & Commodities Group		32,000		10
Brightoil Petroleum Holdings*		155,000		30
Brilliance China Automotive Holdings		520,000		1,391
BYD Electronic International		544,000		1,185
Cafe de Coral Holdings		18,000		49
Champion‡		103,000		76
China Construction Bank, Cl H		4,649,000		4,285
China Financial International Investments*		310,000		9
China LNG Group*		100,000		16
China Mengniu Dairy*		315,000		937
China Merchants Holdings International		84,253		221
China Mobile		423,000		4,291
China National Materials		221,000		165
China Overseas Grand Oceans Group		226,000		124
China Overseas Land & Investment		192,000		619
China Sunshine Paper Holdings		134,000		34
China Trustful Group*		36,000		16
Chong Hing Bank		9,000		19
Chow Sang Sang Holdings International		15,000		36


Description	Shares		Value (000)
CITIC Telecom International Holdings		71,000	$	19
CK Asset Holdings		50,722		443
CK Hutchison Holdings		180,384		2,266
CK Infrastructure Holdings		11,000		95
CK Life Sciences Int’l Holdings		126,000		10
CLP Holdings		205,000		2,097
CMBC Capital Holdings*		640,000		44
Convoy Global Holdings*		402,000		9
Country Garden Holdings		276,000		526
CSI Properties		230,000		12
CSPC Pharmaceutical Group		790,000		1,596
Dah Sing Banking Group		25,200		55
Dah Sing Financial Holdings		8,000		51
Digital Domain Holdings*		620,000		14
Emperor Capital Group		126,000		9
Emperor International Holdings		48,000		16
Esprit Holdings*		1,553,777		832
Fairwood Holdings		2,500		10
Far East Consortium International		72,000		43
FDG Kinetic*		62,000		6
FIH Mobile		320,000		97
First Pacific		442,000		300
Freeman FinTech*		260,000		17
Galaxy Entertainment Group*		40,000		321
Geely Automobile Holdings		564,000		1,956
Giordano International		62,000		33
Global Brands Group Holding*		260,000		21
Goodbaby International Holdings		286,000		157
Great Eagle Holdings		13,240		69
G-Resources Group*		897,000		11
Guangnan Holdings		210,000		26
Guotai Junan International Holdings		137,000		43
Haitong International Securities Group		110,908		63
Hang Lung Group		15,000		55
Hang Lung Properties		34,000		83
Hang Seng Bank		12,900		320
Health and Happiness H&H International Holdings*		13,500		90
Henderson Land Development		20,982		138
Hengan International Group		72,458		805
HK Electric Investments & HK Electric Investments (A)		48,658		45
HKBN		52,000		66
HKT Trust		63,740		80
Hong Kong & China Gas		141,917		278

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Hong Kong Exchanges and Clearing		20,111	$	618
Hongkong & Shanghai Hotels		191,569		284
Hopewell Holdings		31,000		114
HSBC Holdings		739,875		7,572
Huarong International Financial Holdings*		30,000		10
Hutchison Telecommunications Hong Kong Holdings		62,000		25
Hysan Development		11,000		58
Industrial & Commercial Bank of China, Cl H		4,269,000		3,438
Johnson Electric Holdings		18,000		75
Kerry Logistics Network		35,000		50
Kerry Properties		11,500		52
Kingboard Chemical Holdings		314,500		1,702
Kingboard Laminates Holdings		1,027,500		1,602
Kingston Financial Group		66,000		64
Lai Sun Development		9,600		16
Landing International Development*		3,780,000		150
Langham Hospitality Investments and Langham Hospitality Investments		32,000		14
Li & Fung		100,000		55
Li Bao Ge Group		10,000		1
Li Ning*		1,050,791		851
Link‡		37,000		343
Liu Chong Hing Investment		6,000		10
Luk Fook Holdings International		18,000		77
Macau Legend Development*		74,000		11
Man Wah Holdings		77,600		74
Mason Group Holdings*		1,040,000		17
Melco International Development		38,000		112
Melco Resorts & Entertainment ADR		4,173		121
MGM China Holdings		14,000		42
Microport Scientific		16,000		15
Minth Group		12,000		72
MTR		26,180		153
Neo Telemedia		268,000		8
New World Development		116,965		176
NewOcean Energy Holdings*		38,000		10
Nine Dragons Paper Holdings		7,000		11
NWS Holdings		26,252		47
Pacific Basin Shipping*		186,000		40
Pacific Textiles Holdings		46,000		49
PCCW		80,136		47
Ping An Insurance Group of China, Cl H		390,500		4,066


Description	Shares		Value (000)
Poly Property Group*		135,000	$	70
Power Assets Holdings		23,500		198
Prosperity‡		84,000		36
Regal‡		32,000		10
Regina Miracle International Holdings (A)		15,000		15
Sa Sa International Holdings		44,000		17
Sands China		41,200		213
Scud Group* (B) (C)		252,000		—
Shangri-La Asia		22,000		50
Shenzhou International Group Holdings		171,579		1,635
Shui On Land		170,000		47
Shun Tak Holdings		70,000		27
Sino Land		55,554		98
Sino-Ocean Group Holding		169,000		117
Sinotruk Hong Kong		854,500		962
SITC International Holdings		67,485		67
SJM Holdings		43,000		39
SmarTone Telecommunications Holdings		82,447		99
Stella International Holdings		182,948		276
Sun Hung Kai		19,000		12
Sun Hung Kai Properties		24,893		415
SUNeVision Holdings		43,000		33
Sunlight‡		65,000		45
Swire Pacific, Cl A		8,500		79
Swire Properties		19,800		64
Tai United Holdings		65,000		8
Techtronic Industries		23,500		153
Television Broadcasts		130,500		469
Tencent Holdings		134,500		6,989
Texwinca Holdings		44,000		24
Tingyi Cayman Islands Holding		527,014		1,025
Town Health International Medical Group		154,000		14
United Laboratories International Holdings*		30,000		24
Value Partners Group		51,000		54
Vision Fame International Holding*		140,000		5
VSTECS Holdings		36,000		22
VTech Holdings		8,400		110
Want Want China Holdings		1,348,996		1,131
Weichai Power, Cl H		153,000		168
WH Group (A)		153,101		173
Wharf Holdings		19,000		66
Wharf Real Estate Investment*		21,000		140
Wheelock		14,000		100

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Wynn Macau		26,800	$	85
Xinyi Glass Holdings		94,000		123
Yue Yuen Industrial Holdings		11,000		43

				83,552

Hungary — 0.1%
OTP Bank		42,255		1,749

India — 2.6%
Asian Paints		75,850		1,377
Axis Bank		105,154		929
Bajaj Finance		50,588		1,392
Bharti Airtel		102,965		854
Bharti Infratel		268,089		1,591
Eicher Motors		2,733		1,299
HDFC Bank		47,715		1,400
HDFC Bank ADR		11,898		1,210
Hindalco Industries		447,834		1,919
Hinduja Global Solutions		7,976		112
Housing Development Finance		207,468		5,560
Indian Oil		282,132		1,717
Indraprastha Gas		184,135		969
IndusInd Bank		58,651		1,515
Infosys ADR		204,500		3,317
Jindal Stainless Hisar*		34,449		122
Maruti Suzuki India		18,359		2,799
MRF		1,761		1,997
NIIT Technologies		17,799		180
Redington India		151,579		415
Sharda Motor Industries		943		37
Shriram Transport Finance		12,797		297
Tata Consultancy Services		98,929		4,186
Vakrangee		339,984		2,239
Venky’s India		7,651		334
Wipro		97,369		479

				38,246

Indonesia — 0.6%
Adaro Energy		1,540,100		211
Bank Negara Indonesia Persero		3,501,400		2,556
Bank Pembangunan Daerah Jawa Timur		467,000		24
Bank Rakyat Indonesia Persero		7,083,700		1,900
Gudang Garam		11,400		70
Media Nusantara Citra		3,214,443		304
Telekomunikasi Indonesia Persero		7,379,200		2,416
Unilever Indonesia		326,200		1,344

				8,825


Description	Shares		Value (000)
Ireland — 0.6%
AIB Group		13,039	$	86
Bank of Ireland Group*		108,095		920
C&C Group		16,802		57
CRH		153,283		5,509
Dalata Hotel Group*		10,136		77
Glanbia		9,278		166
Green‡		34,343		64
Hibernia‡		36,731		67
Irish Continental Group		58,431		404
Irish Residential Properties‡		20,446		37
Origin Enterprises		6,692		51
Paddy Power Betfair		5,121		609
Permanent TSB Group Holdings*		5,460		15
Ryanair Holdings ADR*		496		52
Smurfit Kappa Group		12,227		414

				8,528

Israel — 0.4%
Africa Israel Properties*		517		13
Airport City*		4,288		54
Alony Hetz Properties & Investments		6,001		64
Amot Investments		6,867		41
Azrieli Group		625		35
B Communications*		664		12
Bank Hapoalim		18,249		134
Bank Leumi Le-Israel		23,536		142
Bayside Land		28		14
Bezeq The Israeli Telecommunication		38,296		59
Big Shopping Centers		184		13
Blue Square Real Estate		240		10
Cellcom Israel*		2,918		30
Check Point Software Technologies*		29,947		3,104
Clal Insurance Enterprises Holdings*		752		14
Delek Automotive Systems		1,428		11
Delek Group		245		40
Delta-Galil Industries		384		13
El Al Israel Airlines		14,890		6
Elbit Systems		354		47
Electra		78		19
First International Bank of Israel		2,906		60
Formula Systems 1985		275		11
Frutarom Industries		677		64
Gazit-Globe		5,336		57
Harel Insurance Investments & Financial Services		6,037		44
IDI Insurance		284		19
Israel*		184		31

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Israel Chemicals		7,468	$	30
Israel Discount Bank, Cl A*		60,141		176
Jerusalem Economy*		6,316		17
Jerusalem Oil Exploration*		412		25
Kenon Holdings*		723		15
Matrix IT		1,358		17
Mazor Robotics*		1,951		52
Melisron		955		45
Menora Mivtachim Holdings		953		12
Migdal Insurance & Financial Holding*		13,597		15
Mizrahi Tefahot Bank		2,061		38
Naphtha Israel Petroleum		1,510		11
NICE-Systems		1,017		92
Norstar Holdings		544		11
Nova Measuring Instruments*		1,849		49
Oil Refineries*		76,027		36
Partner Communications*		5,859		37
Paz Oil*		381		66
Phoenix Holdings*		2,422		13
Radware*		2,566		50
Rami Levy Chain Stores Hashikma Marketing 2006		243		13
Reit 1‡		9,175		40
Sapiens International		1,817		21
Shapir Engineering and Industry		3,162		13
Shikun & Binui		10,716		23
Shufersal		2,454		16
Strauss Group		2,648		57
Teva Pharmaceutical Industries ADR*		5,253		100
Teva Pharmaceutical Industries*		10,519		198
Tower Semiconductor*		4,559		156

				5,605

Italy — 1.7%
A2A		80,765		149
ACEA		3,110		57
Amplifon		4,506		69
Anima Holding (A)		11,268		81
Ascopiave		2,362		10
Assicurazioni Generali		21,062		384
Astaldi		1,845		5
ASTM		2,348		68
Atlantia		7,686		243
Autogrill		6,330		87
Azimut Holding		5,935		114
Banca Generali		2,922		97
Banca IFIS		1,181		58
Banca Mediolanum		12,949		112


Description	Shares		Value (000)
Banca Monte dei Paschi di Siena*		14,128	$	66
Banca Popolare di Sondrio SCPA		24,059		88
Banco BPM*		77,186		243
Beni Stabili SIIQ‡		48,661		45
Biesse		764		39
BPER Banca		24,720		125
Brembo		7,605		116
Brunello Cucinelli		1,727		56
Buzzi Unicem		4,903		132
Buzzi Unicem RSP		2,149		33
Cairo Communication		2,369		11
Cementir Holding		1,553		14
Cerved Information Solutions		9,854		125
CIR-Compagnie Industriali Riunite		17,051		24
CNH Industrial		134,871		1,807
Credito Emiliano		4,286		36
Credito Valtellinese*		4,834		7
Danieli & C Officine Meccaniche		669		16
Danieli & C Officine Meccaniche RSP		2,570		43
Datalogic		1,158		43
Davide Campari-Milano		36,442		282
De’ Longhi		3,035		92
DiaSorin		1,067		95
doBank* (A)		3,802		62
Ei Towers		928		60
El.En.		474		15
Enav (A)		16,201		88
Enel		139,544		859
Eni		194,050		3,214
ERG		3,518		65
EXOR		1,864		114
Falck Renewables		6,160		16
Ferrari		2,081		218
Fiat Chrysler Automobiles*		18,162		325
Fila		607		14
Fincantieri*		28,316		43
FinecoBank Banca Fineco		20,205		207
Geox		3,289		11
Hera		36,283		127
Immobiliare Grande Distribuzione SIIQ‡		20,608		24
Industria Macchine Automatiche		870		71
Infrastrutture Wireless Italiane (A)		12,834		95
Interpump Group		3,517		110
Intesa Sanpaolo		1,149,525		3,822
Intesa Sanpaolo RSP		13,911		44
Iren		31,236		94

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Italgas		24,393	$	149
Italmobiliare		351		10
Juventus Football Club*		19,509		18
La Doria		707		14
Leonardo-Finmeccanica		6,959		83
Luxottica Group		32,385		1,989
Maire Tecnimont		5,888		30
MARR		1,816		47
Mediaset*		24,396		94
Mediobanca		9,725		110
Moncler		8,476		265
OVS (A)		7,389		49
Piaggio & C		272,877		753
Poste Italiane (A)		9,120		69
Prysmian		3,472		113
RAI Way (A)		4,576		28
Recordati		1,763		78
Reply		988		55
Safilo Group*		1,581		9
Saipem*		173,354		791
Salini Impregilo		10,123		39
Salvatore Ferragamo		2,673		71
Saras		24,143		58
Snam		420,740		2,060
Societa Cattolica di Assicurazioni SC		7,623		83
Societa Iniziative Autostradali e Servizi		3,996		74
Sogefi*		2,114		10
Tamburi Investment Partners		2,427		16
Technogym (A)		4,689		45
Telecom Italia*		198,200		171
Telecom Italia RSP		101,659		73
Tenaris		7,964		126
Terna Rete Elettrica Nazionale		22,880		133
Tod’s		534		39
UniCredit*		95,389		1,783
Unione di Banche Italiane		52,627		230
Unipol Gruppo		20,262		94
UnipolSai		19,210		45
Yoox Net-A-Porter Group, Cl A*		2,672		93
Zignago Vetro		1,102		11

				24,778

Japan — 14.6%
77 Bank		3,600		91
ABC-Mart		700		40
Achilles		500		11
Acom*		5,700		24


Description	Shares		Value (000)
Activia Properties‡		30	$	126
Adastria		1,300		26
ADEKA		4,900		86
Advance Residence Investment‡		62		152
Advantest		8,000		148
Aeon		10,600		180
Aeon Delight		2,400		90
Aeon Fantasy		300		13
AEON Financial Service		8,000		187
AEON Investment‡		73		77
Aeon Mall		2,100		41
Ai Holdings		1,900		46
Aica Kogyo		2,700		100
Aichi		2,400		18
Aichi Bank		200		9
Aichi Steel		600		24
Aida Engineering		3,100		38
Aiful*		16,700		57
Ain Holdings		1,300		78
Air Water		2,600		55
Aisan Industry		2,000		23
Aisin Seiki		2,900		163
Ajinomoto		9,100		171
Akatsuki*		200		12
Akebono Brake Industry*		3,800		10
Akita Bank		1,000		28
Alfresa Holdings		32,400		761
Alpen		1,000		22
Alpine Electronics		2,200		46
Alps Electric		3,400		97
Amada Holdings		5,800		79
Amano		3,200		84
Amuse		400		11
ANA Holdings		2,000		84
Anest Iwata		1,000		11
Anicom Holdings*		700		23
Anritsu		7,000		79
AOKI Holdings		2,400		35
Aomori Bank		1,100		35
Aoyama Trading		2,300		86
Aozora Bank		2,000		78
Arcland Sakamoto		1,500		24
Arcland Service Holdings		600		14
Arcs		2,400		56
Ardepro		8,400		7
Ariake Japan		1,000		85
As One		900		56

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Asahi Diamond Industrial		2,200	$	25
Asahi Glass		3,400		147
Asahi Group Holdings		6,500		322
Asahi Holdings		1,500		28
Asahi Intecc		4,600		158
Asahi Kasei		21,300		275
Asics		3,200		51
ASKA Pharmaceutical		700		12
ASKUL		1,300		37
Astellas Pharma		34,800		444
Ateam		400		10
Atom		3,900		32
Autobacs Seven		3,700		71
Avex		1,800		26
Awa Bank		9,000		57
Axial Retailing		900		34
Azbil		9,800		425
Bando Chemical Industries		2,200		26
Bank of Iwate		1,000		40
Bank of Kyoto		1,100		57
Bank of Nagoya		800		31
Bank of Okinawa		1,400		57
Bank of Saga		500		11
Bank of the Ryukyus		2,300		35
Belc		600		36
Bell System24 Holdings		1,100		14
Belluna		2,500		31
Benefit One		1,600		33
Benesse Holdings		1,100		39
Bic Camera		5,100		74
BML		1,200		30
Bridgestone		11,200		521
Broadleaf		1,800		17
Bronco Billy		400		12
Brother Industries		4,000		99
Bunka Shutter		3,200		31
Calbee		1,500		49
Canon		105,000		3,914
Canon Electronics		800		17
Canon Marketing Japan		2,800		75
Capcom		2,200		70
Casio Computer		11,700		168
Cawachi		400		10
Central Glass		2,000		43
Central Japan Railway		2,440		437
Chiba Bank		12,000		100
Chiyoda		900		24


Description	Shares		Value (000)
Chiyoda		8,500	$	63
Chiyoda Integre		500		12
Chofu Seisakusho		1,300		30
Chubu Electric Power		10,800		134
Chudenko		2,000		58
Chugai Pharmaceutical		3,800		195
Chugoku Bank		10,800		144
Chugoku Electric Power		4,700		51
Chugoku Marine Paints		3,300		28
Chukyo Bank		400		8
Ci:z Holdings		1,400		71
Citizen Holdings		14,900		109
CKD		2,700		61
Clarion		5,000		19
Coca-Cola Bottlers Japan Holdings		2,100		77
cocokara fine		900		58
COLOPL		2,600		28
Colowide		3,100		63
Comforia Residential‡		26		56
COMSYS Holdings		5,500		159
Concordia Financial Group		21,100		127
CONEXIO		1,200		25
COOKPAD*		2,500		13
Cosel		800		13
Cosmo Energy Holdings		2,900		110
Cosmos Pharmaceutical		500		105
Create Restaurants Holdings		1,600		19
Create SD Holdings		1,500		40
Credit Saison		2,600		47
CROOZ*		500		11
CyberAgent		5,200		203
CYBERDYNE*		2,000		34
DA Consortium Holdings		1,200		24
Dai Nippon Printing		4,500		100
Daibiru		2,800		35
Daicel		4,900		56
Daido Metal		1,100		11
Daido Steel		1,400		86
Daifuku		4,100		223
Daihen		5,000		47
Daiho		3,000		15
Daiichi Jitsugyo		400		12
Dai-ichi Life Holdings		92,600		1,911
Daiichi Sankyo		9,600		250
Daiichikosho		1,900		95
Daiken		600		16
Daikin Industries		31,600		3,740

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Daikokutenbussan		200	$	9
Daikyo		1,800		35
Daikyonishikawa		2,000		32
Dainichiseika Color & Chemicals Manufacturing		600		30
Daio Paper		3,800		50
Daiseki		2,000		56
Daishi Bank		1,500		68
Daito Trust Construction		1,200		245
Daiwa House Industry		12,900		494
Daiwa House Investment, Cl A‡		22		52
Daiwa Industries		1,100		13
Daiwa Office Investment‡		18		95
Daiwa Securities Group		27,000		169
Daiwabo Holdings		900		37
DCM Holdings		5,100		48
Dena*		2,000		41
Denka		4,400		176
Denki Kogyo		400		11
Denso		200,100		12,009
Dentsu		3,700		157
Denyo		600		11
Descente		2,200		38
Dexerials		2,300		30
DIC		4,100		155
Digital Garage		1,800		48
Dip		1,600		41
Disco		500		111
DMG Mori		5,500		114
Don Quijote Holdings		2,000		105
Doshisha		1,200		26
Doutor Nichires Holdings		2,100		52
Dowa Holdings		2,600		106
DTS		1,100		36
Duskin		2,200		58
DyDo Group Holdings		300		16
Eagle Industry		1,000		19
Earth Chemical		700		35
East Japan Railway		16,500		1,609
Ebara		5,100		194
EDION		3,600		42
Ehime Bank		800		10
Eighteenth Bank		8,000		21
Eiken Chemical		900		43
Eisai		4,520		257
Eizo		800		38
Elecom		600		14
Electric Power Development		2,500		67


Description	Shares		Value (000)
en-japan		1,300	$	61
Enplas		400		17
EPS Holdings		1,400		32
eRex		1,500		14
euglena*		3,100		29
Exedy		1,600		49
Ezaki Glico		2,200		110
F@N Communications		1,800		14
FamilyMart		1,400		98
Fancl		1,900		56
FANUC		17,680		4,247
Fast Retailing		900		358
FC Residential Investments‡		65		45
FCC		1,700		45
Ferrotec Holdings		3,100		63
Financial Products Group		3,400		41
Foster Electric		1,000		25
FP		1,200		64
Frontier Real Estate Investment‡		21		82
Fudo Tetra		5,900		10
Fuji		1,000		22
Fuji Electric		9,000		68
Fuji Heavy Industries		15,000		477
Fuji Kyuko		1,000		29
Fuji Machine Manufacturing		3,400		65
Fuji Media Holdings		39,100		616
Fuji Oil Holdings		2,800		82
Fuji Pharma		300		12
Fuji Seal International		2,300		75
Fuji Soft		1,400		45
Fujibo Holdings		400		13
Fujicco		1,200		27
FUJIFILM Holdings		40,700		1,663
Fujikura		13,100		116
Fujimi		700		15
Fujimori Kogyo		800		28
Fujita Kanko		300		9
Fujitec		3,400		49
Fujitsu		33,000		235
Fujitsu General		3,000		66
Fujiya		500		12
Fukuda		400		24
Fukuda Denshi		300		22
Fukui Computer Holdings		300		9
Fukuoka Corp‡		34		51
Fukuoka Financial Group		31,000		174
Fukushima Industries		700		31

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Fukuyama Transporting		1,600	$	60
Funai Electric*		1,300		10
Funai Soken Holdings		1,650		37
Furukawa		1,700		35
Furukawa Electric		3,500		173
Fuso Chemical		800		22
Futaba*		1,900		40
Futaba Industrial		2,500		23
Future		1,200		13
Fuyo General Lease		1,000		66
Geo Holdings		1,400		27
Giken		500		13
Global One Real Estate Investment‡		11		39
Glory		2,900		110
GLP J-Reit‡		127		137
GMO internet		3,700		63
GMO Payment Gateway		800		66
GNI Group*		5,000		26
Goldcrest		600		12
Goldwin		300		24
Gree		5,900		37
GS Yuasa		19,000		95
G-Tekt		1,100		23
GungHo Online Entertainment*		19,800		54
Gunma Bank		17,000		103
Gunze		900		52
Gurunavi		1,400		17
H2O Retailing		4,600		96
Hachijuni Bank		8,100		47
Hakuhodo DY Holdings		3,500		45
Halows		100		2
Hamamatsu Photonics		2,400		81
Hankyu Hanshin Holdings		4,100		165
Hankyu Reit‡		27		31
Hanwa		1,800		83
Harmonic Drive Systems		1,400		82
Haseko		13,700		213
Hazama Ando		8,600		67
Hearts United Group		700		11
Heiwa		2,900		54
Heiwa Real Estate‡		49		41
Heiwa Real Estate		2,200		40
Heiwado		1,600		33
Hibiya Engineering		1,200		26
Hiday Hidaka		700		21
Hikari Tsushin		400		58
Hino Motors		4,300		56


Description	Shares		Value (000)
Hiramatsu		1,700	$	9
Hirata		400		41
Hirose Electric		8,400		1,228
Hiroshima Bank		19,000		165
HIS		2,100		76
Hisamitsu Pharmaceutical		1,100		67
Hitachi		280,000		2,182
Hitachi Capital		2,600		65
Hitachi Chemical		1,800		46
Hitachi Construction Machinery		1,900		69
Hitachi High-Technologies		1,300		55
Hitachi Kokusai Electric*		2,700		75
Hitachi Maxwell		1,900		41
Hitachi Metals		3,200		46
Hitachi Transport System		2,600		68
Hitachi Zosen		8,600		45
Hogy Medical		700		53
Hokkaido Electric Power*		9,800		65
Hokkoku Bank		1,200		48
Hokuetsu Bank		1,100		25
Hokuetsu Kishu Paper		6,900		41
Hokuhoku Financial Group		6,300		99
Hokuriku Electric Power*		7,700		62
Hokuto		1,500		27
Honda Motor		209,500		7,180
Horiba		1,900		114
Hoshino Resorts‡		10		49
Hoshizaki Electric		1,600		142
Hosiden		3,200		47
House Foods Group		3,300		110
Hoya		134,700		6,727
Hulic		4,500		51
Hulic‡		53		77
Hyakugo Bank		12,000		57
Hyakujushi Bank		13,000		43
Ibiden		5,700		85
IBJ Leasing		1,600		41
Ichibanya		900		36
Ichigo		12,100		46
Ichiyoshi Securities		2,100		24
Icom		400		9
Idec		1,300		31
Idemitsu Kosan		2,300		92
IDOM		2,900		21
IHI		2,600		87
Iida Group Holdings		2,500		47
Iino Kaiun Kaisha		5,000		28

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Inaba Denki Sangyo		1,600	$	75
Inabata		2,600		39
Industrial & Infrastructure Fund Investment‡		19		82
Ines		1,100		11
Infocom		500		12
Infomart		4,800		29
Information Services International-Dentsu		400		9
Inpex		16,500		206
Internet Initiative Japan		1,700		31
Invesco Office‡		50		49
Investors Cloud		1,000		15
Invincible Investment‡		190		81
Iriso Electronics		1,000		60
Iseki		1,000		25
Isetan Mitsukoshi Holdings		37,600		465
Ishihara Sangyo Kaisha*		1,500		28
Istyle		1,900		15
Isuzu Motors		9,000		151
Ito En		2,800		110
ITOCHU		32,900		615
Itochu Enex		2,600		25
Itochu Techno-Solutions		2,400		104
Itochu-Shokuhin		100		5
Itoham Yonekyu Holdings		7,500		69
Itoki		1,500		11
Iwatani		1,800		58
Iyo Bank		12,200		98
Izumi		1,800		112
J Front Retailing		4,100		77
J Trust		3,200		21
JAC Recruitment		700		14
Jaccs		1,400		33
Jafco*		1,700		99
Jamco		500		12
Japan‡		21		100
Japan Airlines		4,600		179
Japan Airport Terminal		1,000		37
Japan Asset Marketing*		8,600		10
Japan Aviation Electronics Industry		2,000		34
Japan Display*		16,400		33
Japan Excellent‡		62		72
Japan Exchange Group		9,100		158
Japan Hotel‡		190		127
Japan Lifeline		2,200		46
Japan Logistics Fund‡		40		74
Japan Material		900		33


Description	Shares		Value (000)
Japan Petroleum Exploration		1,600	$	42
Japan Post Bank		6,900		90
Japan Post Holdings		90,100		1,033
Japan Prime‡		14		44
Japan Pulp & Paper		600		23
Japan Rental Housing Investments‡		97		71
Japan Retail Fund Investment‡		43		79
Japan Securities Finance		6,100		35
Japan Steel Works		3,100		100
Japan Tobacco		93,600		3,016
Japan Wool Textile		1,700		16
JCR Pharmaceuticals		600		28
Jeol		3,000		17
JFE Holdings		28,200		676
JGC		3,600		70
JIG-SAW*		200		9
Jimoto Holdings		5,700		10
JINS		700		37
J-Oil Mills		300		10
Joshin Denki		1,000		36
Joyful Honda		1,300		40
JSP		500		17
JSR		3,300		65
JTEKT		3,800		65
Juroku Bank		1,500		44
Justsystems		1,600		30
JVC Kenwood		8,400		29
JX Holdings		52,100		337
kabu.com Securities		8,300		26
Kadokawa Dwango		2,700		33
Kaga Electronics		700		19
Kagome		3,900		145
Kajima		15,000		144
Kakaku.com		2,000		34
Kaken Pharmaceutical		1,600		83
Kameda Seika		700		32
Kamei		800		14
Kamigumi		2,000		44
Kanamoto		1,400		43
Kandenko		5,000		53
Kaneka		5,000		46
Kanematsu		4,000		55
Kanematsu Electronics		700		21
Kansai Electric Power		12,300		150
Kansai Paint		3,500		91
Kansai Urban Banking		800		10
Kanto Denka Kogyo		1,800		22

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Kao		56,400	$	3,815
Kappa Create*		200		2
Kasai Kogyo		1,000		16
Katakura Industries		900		12
Kato Sangyo		1,400		51
Kato Works		700		21
Kawasaki Heavy Industries		2,600		91
Kawasaki Kisen Kaisha*		4,600		118
KDDI		31,100		774
Keihan Holdings		1,700		50
Keihin*		2,000		41
Keikyu		4,000		77
Keio		2,000		88
Keisei Electric Railway		2,400		77
Keiyo		1,500		9
Keiyo Bank		12,000		55
Kenedix		13,300		81
Kenedix Office Investment, Cl A‡		22		125
Kenedix Residential Investment‡		18		52
Kenedix Retail‡		26		54
Kenko Mayonnaise		400		14
Kewpie		5,300		141
Key Coffee		500		10
Keyence		1,700		952
KH Neochem		1,200		31
Kikkoman		2,500		101
Kinden		6,700		109
Kintetsu Department Store*		300		11
Kintetsu Group Holdings		3,100		119
Kintetsu World Express		2,000		41
Kirin Holdings		75,700		1,909
Kisoji		1,400		35
Kissei Pharmaceutical		1,700		48
Kitz		4,300		33
Kiyo Bank		3,500		58
KLab*		2,300		37
KNT-CT Holdings*		500		8
Koa		1,600		33
Kobayashi Pharmaceutical		2,500		162
Kobe Bussan		500		19
Kobe Steel*		4,600		43
Koei Tecmo Holdings		2,100		42
Kohnan Shoji		1,600		35
Koito Manufacturing		1,900		134
Kokuyo		4,300		80
Komatsu		101,900		3,689
KOMEDA Holdings		2,000		37


Description	Shares		Value (000)
Komeri		1,700	$	49
Komori		3,000		42
Konami Holdings		1,600		88
Konica Minolta		8,100		78
Konishi		1,700		32
Konoike Transport		1,100		19
Kose		500		78
Koshidaka Holdings		500		23
Kotobuki Spirits		1,000		56
K’s Holdings		3,800		97
Kubota		162,700		3,190
Kumagai Gumi		1,800		50
Kumiai Chemical Industry		4,800		32
Kura		600		35
Kurabo Industries		10,000		32
Kuraray		6,100		115
Kureha		800		58
Kurita Water Industries		57,400		1,865
Kusuri no Aoki		700		37
KYB		1,000		58
Kyocera		67,500		4,417
Kyodo Printing		300		10
Kyoei Steel		1,300		25
Kyokuto Kaihatsu Kogyo		1,500		26
Kyokuto Securities		700		10
KYORIN Holdings		2,200		41
Kyoritsu Maintenance		1,600		65
Kyowa Exeo		4,500		116
Kyowa Hakko Kirin		4,400		85
Kyudenko		2,100		102
Kyushu Electric Power		7,300		77
Kyushu Financial Group		6,700		41
Kyushu Railway		2,700		84
LaSalle Logiport‡		65		67
Lasertec		2,000		51
Lawson		800		53
Leopalace21		12,600		98
Life		400		11
LIFULL		2,400		21
LINE*		800		33
Linical		700		10
Link And Motivation		1,500		12
Lintec		2,500		70
Lion		3,800		72
LIXIL Group		30,000		812
M&A Capital Partners*		300		20
M3*		3,600		127

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Mabuchi Motor		900	$	49
Macnica Fuji Electronics Holdings		2,100		46
Macromill		1,800		43
Maeda		18,600		257
Maeda Kosen		700		13
Maeda Road Construction		3,000		69
Makino Milling Machine		5,000		51
Makita		3,800		160
Mandom		2,000		66
Mani		1,300		40
Mars Engineering		500		11
Marubeni		28,600		207
Marudai Food		5,000		22
Maruha Nichiro		2,100		63
Marui Group		11,500		211
Maruichi Steel Tube		1,200		35
Marusan Securities*		3,500		31
Maruwa		400		27
Maruzen Showa Unyu		2,000		9
Marvelous		1,200		11
Matsui Securities		6,300		53
Matsumotokiyoshi Holdings		7,200		297
Matsuya		1,200		17
Matsuya Foods		300		11
Max		1,000		14
Mazda Motor		9,700		130
McDonald’s Holdings Japan		1,000		44
MCJ		1,400		15
MCUBS MidCity Investment‡		75		50
Mebuki Financial Group		17,200		73
Medipal Holdings		2,600		51
Megachips*		800		24
Megmilk Snow Brand		2,500		74
Meidensha		10,000		41
MEIJI Holdings		2,100		179
Meiko Network Japan		700		8
Meitec		1,200		63
Melco Holdings		300		10
Menicon		1,000		28
METAWATER		400		10
Micronics Japan*		1,300		13
Mie Bank		200		4
Milbon		1,200		40
Mimasu Semiconductor Industry		600		12
Minato Bank		900		17
Minebea		6,600		138
Ministop		500		11


Description	Shares		Value (000)
Miraca Holdings		4,600	$	197
Mirait Holdings		3,100		46
Miroku Jyoho Service		800		22
MISUMI Group		4,700		137
Mitsuba		1,500		23
Mitsubishi		48,660		1,345
Mitsubishi Chemical Holdings		24,200		266
Mitsubishi Electric		33,200		550
Mitsubishi Estate		48,900		850
Mitsubishi Gas Chemical		3,100		89
Mitsubishi Heavy Industries		15,000		560
Mitsubishi Logisnext		1,500		13
Mitsubishi Logistics		12,700		330
Mitsubishi Materials		1,900		68
Mitsubishi Motors		11,300		82
Mitsubishi Pencil		2,000		44
Mitsubishi Research Institute		200		7
Mitsubishi Shokuhin		900		26
Mitsubishi Steel Manufacturing		1,000		25
Mitsubishi Tanabe Pharma		3,800		79
Mitsubishi UFJ Financial Group		227,900		1,673
Mitsubishi UFJ Lease & Finance		8,100		48
Mitsuboshi Belting		3,000		41
Mitsui		29,400		478
Mitsui Chemicals		3,200		103
Mitsui Engineering & Shipbuilding		3,800		57
Mitsui Fudosan		15,100		338
Mitsui Fudosan Logistics Park‡		10		32
Mitsui High-Tec		1,100		20
Mitsui Mining & Smelting		2,900		170
Mitsui OSK Lines		2,000		67
Mitsui Sugar		700		30
Mitsui-Soko Holdings*		4,000		14
Miura		4,600		124
Mixi		800		36
Miyazaki Bank		800		27
Mizuho Financial Group		783,700		1,423
Mizuno		1,000		29
Mochida Pharmaceutical		700		54
Modec		800		21
Monex Group		9,800		28
MonotaRO		3,100		99
Mori Hills Investment‡		77		93
Mori Trust Hotel‡		10		13
Mori Trust Sogo‡		48		67
Morinaga		1,900		96
Morinaga Milk Industry		1,800		81

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Morita Holdings		1,800	$	34
MOS Food Services		1,600		49
MS&AD Insurance Group Holdings		37,600		1,273
Murata Manufacturing		3,300		443
Musashi Seimitsu Industry		1,200		38
Musashino Bank		1,500		50
Nabtesco		1,900		73
Nachi-Fujikoshi		9,000		60
Nagaileben		1,500		38
Nagase		5,600		101
Nagatanien Holdings		1,000		13
Nagoya Railroad		3,200		81
Nakanishi		1,200		63
Namco Bandai Holdings		31,200		1,021
Namura Shipbuilding		2,000		12
Nankai Electric Railway		5,200		129
NanoCarrier*		1,600		9
Nanto Bank		1,500		40
NEC		22,200		599
NEC Capital Solutions		100		2
NEC Networks & System Integration		1,400		37
NET One Systems		4,200		65
Neturen		1,100		12
Nexon*		3,300		96
NGK Insulators		4,400		83
NGK Spark Plug		2,800		68
NH Foods		10,000		244
NHK Spring		10,800		119
Nichias		6,000		80
Nichicon		2,500		33
Nichiden		400		8
Nichiha		1,400		59
NichiiGakkan		1,500		19
Nichi-iko Pharmaceutical		2,400		37
Nichirei		5,900		163
Nidec		4,100		574
Nifco		2,100		143
Nihon Chouzai		300		9
Nihon Kohden		97,700		2,267
Nihon M&A Center		3,300		157
Nihon Nohyaku		1,800		11
Nihon Parkerizing		5,000		84
Nihon Trim		200		9
Nihon Unisys		3,700		77
Nikkiso		2,800		31
Nikkon Holdings		2,800		79
Nikon		39,100		788


Description	Shares		Value (000)
Nintendo		1,900	$	695
Nippo		3,000		70
Nippon Accommodations Fund‡		22		91
Nippon Building Fund‡		23		112
Nippon Ceramic		1,100		28
Nippon Chemi-Con		700		22
Nippon Denko		4,800		20
Nippon Densetsu Kogyo		1,800		39
Nippon Electric Glass		1,400		53
Nippon Express		1,400		93
Nippon Flour Mills		2,800		43
Nippon Gas		1,800		65
NIPPON Investment‡		19		55
Nippon Kanzai		600		11
Nippon Kayaku		7,000		104
Nippon Koei		500		16
Nippon Light Metal Holdings		30,400		87
Nippon Paint Holdings		2,800		89
Nippon Paper Industries		5,400		103
Nippon Parking Development		6,600		11
Nippon Prologis‡		31		66
Nippon Road		200		12
Nippon Seiki		2,500		54
Nippon Sheet Glass*		4,600		42
Nippon Shinyaku		2,500		187
Nippon Shokubai		1,300		88
Nippon Signal		7,400		79
Nippon Soda		6,000		40
Nippon Steel & Sumikin Bussan		800		49
Nippon Steel & Sumitomo Metal		12,800		328
Nippon Suisan Kaisha		61,300		320
Nippon Telegraph & Telephone		53,200		2,503
Nippon Television Holdings		31,220		535
Nippon Thompson		2,300		18
Nippon Yusen*		2,800		68
Nipro		6,900		102
Nishimatsu Construction		2,600		73
Nishimatsuya Chain		2,500		28
Nishi-Nippon Financial Holdings		7,000		84
Nishi-Nippon Railroad		3,000		81
Nishio Rent All		900		29
Nissan Chemical Industries*		7,200		287
Nissan Motor		48,100		480
Nissan Shatai		4,100		42
Nissha		1,800		52
Nisshin Oillio Group		1,400		42
Nisshin Seifun Group		3,400		69

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Nisshin Steel		2,500	$	41
Nisshinbo Holdings		7,396		100
Nissin		600		17
Nissin Electric		2,600		30
Nissin Foods Holdings		1,000		73
Nissin Kogyo		2,000		40
Nitori Holdings		1,400		199
Nitta		1,200		46
Nittetsu Mining		200		15
Nitto Boseki		1,400		40
Nitto Denko		2,800		249
Nitto Kogyo		1,100		18
Nitto Kohki		600		15
Nittoku Engineering		1,600		68
Noevir Holdings		800		59
NOF		3,500		94
Nohmi Bosai		1,200		22
Nojima		1,400		33
NOK		1,700		40
Nomura		7,100		162
Nomura Holdings		160,500		948
Nomura Real Estate Holdings		2,400		54
Nomura Real Estate Master Fund‡		64		79
Nomura Research Institute		2,300		107
Noritake		500		25
Noritz		1,600		31
North Pacific Bank		14,600		49
NS Solutions		1,900		52
NS United Kaiun Kaisha*		500		12
NSD		2,200		47
NSK		6,500		102
NTN		21,000		104
NTT Data		101,000		1,200
NTT DOCOMO		23,500		555
NTT Urban Development		40,300		465
NuFlare Technology		200		12
Obara Group		600		41
Obayashi		89,700		1,087
Obic		2,960		218
OBIC Business Consultants		600		35
Odakyu Electric Railway		5,000		107
Ogaki Kyoritsu Bank		1,600		40
Ohsho Food Service		1,000		48
Oiles		700		14
Oita Bank		800		31
Oji Holdings		15,000		100
Okabe		1,100		11


Description	Shares		Value (000)
Okamoto Industries		3,000	$	30
Okamura		3,400		50
Okasan Securities Group*		8,000		50
Oki Electric Industry		4,400		62
Okinawa Electric Power		1,920		50
OKUMA		1,200		80
Okumura		1,600		66
Okuwa		1,000		10
Olympus		68,800		2,638
Omron		80,500		4,801
OncoTherapy Science*		5,000		10
Ono Pharmaceutical		7,200		168
Onward Holdings		31,000		269
Open House		1,700		91
Optex Group		600		32
Oracle Japan*		700		58
Orient		21,900		35
Oriental Land		3,800		347
ORIX		22,300		378
Orix JREIT‡		129		179
Osaka Gas		6,400		123
Osaka Soda		800		20
Osaka Steel		1,000		21
OSAKA Titanium Technologies		700		13
Osaki Electric		1,500		11
OSG		3,800		82
OSJB Holdings		4,700		14
Otsuka		900		69
Otsuka Holdings		11,100		487
Outsourcing		4,000		73
Oyo		700		9
Pacific Industrial		2,400		37
Pacific Metals*		700		19
Pack		500		16
PAL GROUP Holdings		400		13
PALTAC		1,400		64
Panasonic		37,900		555
Paramount Bed Holdings		900		45
Parco		800		11
Park24		1,800		43
PC Depot		1,400		11
Penta-Ocean Construction		14,300		107
Pepper Food Service		700		31
PeptiDream*		3,600		124
Persol Holdings		9,100		228
Pigeon		6,000		229
Pilot		1,800		87

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Piolax		1,400	$	42
Pioneer*		15,600		32
Plenus		1,000		22
Pola Orbis Holdings		1,600		56
Premier Investment‡		74		70
Press Kogyo		5,300		32
Pressance		2,000		27
Prestige International		2,000		26
Prima Meat Packers		7,000		51
Proto		600		9
Qol		600		11
Raito Kogyo		2,600		30
Rakuten*		15,200		139
Recruit Holdings		18,600		463
Relia		1,700		20
Relo Group		5,600		153
Renesas Electronics*		38,700		451
Rengo		9,100		66
Resona Holdings		240,740		1,439
Resorttrust		4,200		96
Ricoh		74,200		689
Ricoh Leasing		900		31
Riken		500		28
Riken Vitamin		300		12
Ringer Hut		1,100		25
Rinnai		600		54
Riso Kagaku		1,300		25
Rock Field		700		13
Rohm		1,600		177
Rohto Pharmaceutical		5,000		134
Rokko Butter		500		12
Roland DG		500		13
Round One		3,500		59
Royal Holdings		1,600		44
Ryobi		1,400		40
Ryohin Keikaku		800		249
Ryosan		1,300		50
Ryoyo Electro		800		15
S Foods		700		32
Sac’s Bar Holdings		800		10
Saeron Automotive		4,087		29
Saizeriya		1,500		50
Sakai Chemical Industry		600		16
Sakai Moving Service		500		25
Sakata INX		2,000		32
Sakata Seed		1,600		56
San-A, Cl A		1,000		48


Description	Shares		Value (000)
San-Ai Oil		2,800	$	41
SanBio*		800		23
Sanden Holdings*		1,000		20
Sangetsu		3,300		61
San-In Godo Bank		7,700		74
Sanken Electric		6,000		43
Sanki Engineering		1,800		22
Sankyo		800		25
Sankyo Tateyama		800		12
Sankyu		2,600		112
Sanrio		2,600		44
Santen Pharmaceutical		6,200		97
Sanwa Holdings		10,300		142
Sanyo Chemical Industries		700		37
Sanyo Denki		400		29
Sanyo Special Steel		1,200		31
Sapporo Holdings		3,400		104
Sato Holdings		1,400		43
Sawai Pharmaceutical		3,700		166
SBI Holdings		3,500		73
SCREEN Holdings		2,100		172
SCSK		6,200		286
Secom		8,400		633
Sega Sammy Holdings		3,200		40
Seibu Holdings		3,600		68
Seikagaku		2,100		31
Seiko Epson		4,800		113
Seiko Holdings		1,600		47
Seino Holdings		6,800		108
Seiren		2,500		49
Sekisui Chemical		13,300		267
Sekisui House‡		50		58
Sekisui House		10,000		181
Sekisui House Residential Investment‡		55		55
Sekisui Jushi		2,200		45
Sekisui Plastics		1,000		13
Senko		14,200		103
Senshu Ikeda Holdings		13,300		49
Septeni Holdings		3,700		11
Seria		1,900		115
Seven & i Holdings		40,900		1,701
Seven Bank		10,700		37
Sharp*		2,500		86
Shibuya		800		33
Shiga Bank		12,000		61
Shikoku Bank		2,400		34
Shikoku Chemicals		2,000		32

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Shikoku Electric Power		8,600	$	94
Shima Seiki Manufacturing		1,200		76
Shimachu		2,300		66
Shimadzu		4,300		98
Shimamura		400		44
Shimano		1,300		184
Shimizu		51,300		530
Shindengen Electric Manufacturing		400		32
Shin-Etsu Chemical		36,200		3,678
Shin-Etsu Polymer		1,700		19
Shinko Electric Industries		3,600		29
Shinko Plantech		1,300		14
Shinmaywa Industries		4,000		38
Shinnihon		1,300		11
Shinsei Bank		2,800		48
Shionogi		5,160		279
Ship Healthcare Holdings		2,400		80
Shiseido		12,400		600
Shizuoka Bank		9,000		93
Shizuoka Gas		2,800		24
SHO-BOND Holdings		2,600		185
Shochiku		600		102
Shoei Foods		500		21
Showa		2,400		30
Showa Denko		6,900		295
Showa Sangyo		1,200		31
Showa Shell Sekiyu		2,800		38
Siix		800		34
Sinko Industries		1,100		21
Sintokogio		1,700		22
SKY Perfect JSAT Holdings		7,800		36
Skylark		5,300		75
SMC		1,000		412
SMK		2,000		11
SMS*		1,700		54
Sodick		2,200		29
SoftBank Group		20,900		1,655
Sogo Medical		500		26
Sohgo Security Services		1,100		60
Sojitz		62,300		191
Sompo Holdings		20,100		778
Sony		21,700		978
Sony Financial Holdings		3,000		53
Sosei Group*		800		78
Sotetsu Holdings		3,800		100
Sparx Group*		5,200		14
Square Enix Holdings		4,400		209


Description	Shares		Value (000)
St. Marc Holdings		1,100	$	30
Stanley Electric		2,400		97
Star Micronics		1,600		28
Start Today		3,300		100
Starts		1,600		42
Starzen		200		10
Stella Chemifa		400		13
Studio Alice		400		10
Sugi Holdings		1,900		97
SUMCO		3,800		97
Sumitomo		20,000		340
Sumitomo Bakelite		9,000		76
Sumitomo Chemical		66,200		476
Sumitomo Dainippon Pharma		16,200		241
Sumitomo Densetsu		600		13
Sumitomo Electric Industries		21,100		357
Sumitomo Forestry		6,900		123
Sumitomo Heavy Industries		2,000		85
Sumitomo Metal Mining		4,300		198
Sumitomo Mitsui Construction		8,440		47
Sumitomo Mitsui Financial Group		56,600		2,446
Sumitomo Mitsui Trust Holdings		11,700		464
Sumitomo Osaka Cement		19,000		92
Sumitomo Realty & Development		6,000		197
Sumitomo Riko		2,200		24
Sumitomo Rubber Industries		3,100		58
Sumitomo Seika Chemicals		400		22
Sumitomo Warehouse		7,000		51
Sun Frontier Fudousan		1,000		11
Sundrug		1,200		56
Suntory Beverage & Food		5,000		222
Suruga Bank		3,000		64
Suzuken		1,100		45
Suzuki Motor		5,800		336
Sysmex		2,620		206
Systena		700		22
T&D Holdings		8,900		152
Tachi-S, Cl S		1,800		33
Tadano		5,200		86
Taihei Dengyo Kaisha		1,000		26
Taiheiyo Cement		2,000		86
Taiho Kogyo, Cl A		700		10
Taikisha		1,400		47
Taisei		3,400		169
Taisho Pharmaceutical Holdings		500		40
Taiyo Holdings		900		40
Taiyo Nippon Sanso*		2,800		39

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Taiyo Yuden		5,500	$	86
Takamatsu Construction Group		400		11
Takara Bio		2,600		36
Takara Holdings		8,300		97
Takara Leben		3,200		14
Takara Standard		2,100		34
Takasago International		700		23
Takasago Thermal Engineering		2,700		49
Takashimaya		5,000		53
Takeda Pharmaceutical		12,200		692
Takeuchi Manufacturing		1,800		43
Takuma		4,100		57
Tamron		600		13
Tanseisha		1,400		16
Tatsuta Electric Wire and Cable		1,700		14
TDK		4,100		327
TechnoPro Holdings		3,700		201
Teijin		3,300		74
Teikoku Sen-I, Cl I		800		16
Tekken		400		12
Tenma		1,000		20
Terumo		122,200		5,791
T-Gaia		1,100		26
THK		2,100		79
TIS		4,100		143
TKC		1,200		44
Toa		500		13
Toagosei		5,800		74
Tobu Railway		3,300		107
TOC		3,100		26
Tocalo		600		27
Tochigi Bank		5,300		21
Toda		11,000		88
Toei		400		40
Toei Animation		200		20
Toenec		400		12
Toho		2,000		69
Toho Bank		11,700		41
Toho Gas		1,400		38
Toho Holdings		2,500		57
Toho Titanium		1,400		15
Toho Zinc		600		33
Tohoku Electric Power		54,900		701
Tokai		800		18
Tokai Carbon		9,700		120
TOKAI Holdings		4,700		40
Tokai Rika		2,800		59


Description	Shares		Value (000)
Tokai Tokyo Financial Holdings		11,400	$	74
Token		400		47
Tokio Marine Holdings		16,600		757
Tokushu Tokai Paper		300		11
Tokuyama		3,200		104
Tokyo Broadcasting System Holdings		2,000		50
Tokyo Century		2,100		102
Tokyo Dome		4,800		49
Tokyo Electric Power Holdings*		24,800		98
Tokyo Electron		3,500		634
Tokyo Gas		11,900		273
Tokyo Ohka Kogyo		1,900		82
Tokyo Seimitsu		2,000		79
Tokyo Steel Manufacturing		4,700		42
Tokyo Tatemono		3,100		42
Tokyo TY Financial Group		1,400		41
Tokyotokeiba		700		26
Tokyu‡		49		61
Tokyu		9,300		148
Tokyu Construction		4,500		44
Tokyu Fudosan Holdings		9,000		65
TOMONY Holdings		7,000		36
Tomy		4,500		61
Topcon		5,300		115
Toppan Forms		3,100		35
Toppan Printing		9,000		81
Topre		1,800		51
Topy Industries		800		25
Toray Industries		84,100		792
Toridoll Holdings		1,100		41
Torii Pharmaceutical		500		13
Tosei		1,200		12
Toshiba*		110,000		310
Toshiba Machine		7,000		52
Toshiba Plant Systems & Services		2,400		45
Toshiba TEC		7,000		44
Tosho		600		19
Tosoh		5,000		113
Totetsu Kogyo		1,400		46
TOTO		2,400		142
Towa Bank		2,000		27
Towa Pharmaceutical		500		27
Toyo Construction		4,300		25
Toyo Engineering		1,000		12
Toyo Ink SC Holdings		11,000		65
Toyo Kanetsu		300		12
Toyo Kohan		2,100		9

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Toyo Seikan Group Holdings		23,400	$	377
Toyo Suisan Kaisha		8,400		359
Toyo Tanso		500		16
Toyo Tire & Rubber		5,400		112
Toyobo		4,500		82
Toyoda Gosei		1,100		28
Toyota Boshoku		3,600		75
Toyota Industries		3,300		212
Toyota Motor		80,900		5,179
Toyota Tsusho		3,600		145
TPR		1,200		40
Trancom		300		21
Transcosmos*		1,100		28
Trend Micro*		2,000		113
Trusco Nakayama		2,100		61
TS Tech		2,500		103
TSI Holdings		4,000		29
Tsubaki Nakashima		3,300		79
Tsubakimoto Chain		7,000		57
Tsugami		3,000		39
Tsukishima Kikai		1,700		23
Tsukuba Bank		3,100		11
Tsukui		2,100		19
Tsumura		3,000		100
Tsuruha Holdings		600		82
Tsurumi Manufacturing		600		11
TV Asahi Holdings		1,200		24
UACJ		1,700		44
Ube Industries		5,500		162
UKC Holdings		600		13
Ulvac		2,000		126
Unicharm		7,000		182
Union Tool		300		11
Unipres		2,100		57
UNITED		500		16
United Arrows		1,200		49
United Super Markets Holdings		2,900		29
United Urban Investment‡		52		75
Unitika*		2,500		18
Universal Entertainment		1,200		44
Unizo Holdings		900		24
Ushio		11,700		167
USS		3,800		80
UT Group*		2,200		64
V Technology		200		32
Valor Holdings		2,000		47
Vector*		1,000		15


Description	Shares		Value (000)
Vital KSK Holdings		1,200	$	11
VT Holdings		3,200		16
Wacoal Holdings		2,500		79
Wacom*		7,300		40
Wakita		1,600		20
Warabeya Nichiyo Holdings		400		11
WATAMI		800		12
Welcia Holdings		2,300		100
West Japan Railway		23,500		1,715
Wowow		100		3
W-Scope		1,300		27
Xebio Holdings		1,400		27
Yahagi Construction		1,200		10
Yahoo Japan		24,500		113
Yakult Honsha		1,500		113
Yakuodo		400		11
YAMABIKO		1,600		25
Yamada Denki		96,100		529
Yamagata Bank		1,600		35
Yamaguchi Financial Group		3,000		36
Yamaha		2,900		107
Yamaha Motor		4,600		151
Yamanashi Chuo Bank		8,000		35
Yamato Holdings		26,520		534
Yamato Kogyo		2,000		58
Yamazaki Baking		2,300		45
Yamazen		3,200		38
Yaoko		1,100		54
Yaskawa Electric		4,300		189
Yellow Hat		600		18
Yodogawa Steel Works		1,200		37
Yokogawa Bridge Holdings		1,300		30
Yokogawa Electric		3,900		75
Yokohama Reito		1,200		12
Yokohama Rubber		2,000		49
Yondoshi Holdings		700		19
Yonex		2,800		18
Yorozu		700		15
Yoshinoya Holdings		3,400		58
Yuasa Trading*		1,000		36
Yumeshin Holdings		1,500		14
Yurtec		2,100		18
Yushin Precision Equipment		400		11
Zenkoku Hosho		2,400		103
Zenrin		1,300		44
Zensho Holdings		4,900		84
Zeon		8,700		126

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
ZERIA Pharmaceutical		1,700	$	33
ZIGExN*		1,400		11
Zojirushi		2,400		24

				214,058

Kenya — 0.0%
East African Breweries		70,678		163
Equity Group Holdings		275,700		106

				269

Luxembourg — 0.1%
O’Key Group GDR		54,998		137
RTL Group		577		46
Ternium ADR		46,079		1,457

				1,640

Malaysia — 0.3%
Allianz Malaysia		7,300		24
Brem Holding		213,616		58
Heineken Malaysia		10,000		47
Hong Leong Bank		17,900		75
Hong Leong Industries		5,500		13
Insas		330,800		76
K&N Kenanga Holdings*		85,500		12
KSL Holdings*		551,500		145
Lion Industries*		217,100		76
Malayan Banking		16,000		39
Malaysia Airports Holdings		85,700		186
Malaysian Pacific Industries		29,400		92
MISC		92,100		169
Nestle Malaysia		4,400		112
Padini Holdings		564,500		737
Petron Malaysia Refining & Marketing		121,500		406
Petronas Chemicals Group		286,200		545
Shell Refining Federation of Malaya*		63,000		254
Tenaga Nasional		108,400		409
Top Glove		123,100		243
Tropicana		47		—
Uchi Technologies		119,200		97
Unisem		1,138,600		1,027
ViTrox		67,000		103

				4,945

Mexico — 0.3%
Fomento Economico Mexicano ADR		6,877		646
Grupo Aeroportuario del Pacifico, Cl B		43,943		451
Grupo Elektra DE		6,636		237


Description	Shares		Value (000)
Grupo Financiero Banorte, Cl O		385,425	$	2,117
Grupo Televisa ADR		18,213		340
Industrias Bachoco		58,034		277
Nemak (A)		452,510		328
Vitro		18,814		67

				4,463

Netherlands — 3.3%
Aalberts Industries		5,022		255
ABN AMRO Group (A)		7,166		231
Accell Group		1,190		33
Aegon		30,603		195
AerCap Holdings*		2,402		126
Akzo Nobel		62,341		5,462
Altice, Cl A*		8,630		91
AMG Advanced Metallurgical Group		1,376		69
APERAM		2,388		123
Arcadis		3,785		87
ArcelorMittal*		28,148		916
ASM International		2,389		162
ASML Holding		8,109		1,412
ASR Nederland		7,417		305
Basic-Fit* (A)		1,573		38
BE Semiconductor Industries		1,849		155
BinckBank		1,954		10
Boskalis Westminster		169,257		6,383
Brunel International		766		14
Coca-Cola European Partners		3,570		142
Corbion		2,960		96
Eurocommercial Properties‡		2,862		125
Euronext (A)		2,875		179
Flow Traders (A)		1,443		35
ForFarmers		816		10
Fugro*		103,946		1,620
Galapagos*		2,165		205
Gemalto		4,382		260
Heineken		18,375		1,916
Heineken Holding		1,999		198
IMCD Group		2,653		167
ING Groep		411,462		7,567
Intertrust (A)		3,412		64
Kendrion		579		28
Koninklijke Ahold Delhaize		55,263		1,216
Koninklijke BAM Groep		10,282		47
Koninklijke DSM		3,065		293
Koninklijke KPN		271,129		946
Koninklijke Philips		39,676		1,501
Koninklijke Volkerwessels		2,661		76

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Koninklijke Vopak		1,047	$	46
NN Group		5,159		224
NSI‡		1,170		49
OCI*		3,700		93
Philips Lighting (A)		4,599		169
PostNL		20,980		103
Randstad Holding		63,431		3,900
Refresco Group (A)		2,721		65
Relx		157,359		3,618
Royal Dutch Shell, Cl A		24,014		801
SBM Offshore		185,175		3,260
SIF Holding		523		11
Takeaway.com* (A)		943		58
TKH Group		1,987		126
TomTom*		6,266		62
Unibail-Rodamco‡		1,757		442
Unilever		27,909		1,572
Vastned Retail‡		1,155		57
Wereldhave‡		2,081		100
Wessanen		3,888		80
Wolters Kluwer		5,105		266

				47,860

New Zealand — 0.2%
a2 Milk*		32,914		188
Air New Zealand		27,934		63
Argosy Property		42,827		33
Auckland International Airport		16,577		76
Chorus		21,743		65
Contact Energy		46,285		182
Fisher & Paykel Healthcare		9,137		93
Fletcher Building		12,176		66
Freightways		9,444		51
Genesis Energy		25,186		45
Goodman Property Trust‡		49,179		48
Infratil		22,938		54
Kiwi Property Group‡		71,972		71
Mercury NZ		14,657		35
Meridian Energy		24,236		50
Metlifecare		9,307		40
New Zealand Refining		7,242		14
Precinct Properties New Zealand‡		53,513		52
Ryman Healthcare		5,918		45
SKY Network Television		19,059		38
SKYCITY Entertainment Group		33,925		100
Spark New Zealand		192,661		496
Summerset Group Holdings		10,769		42
Trade Me Group		22,642		78


Description	Shares		Value (000)
Xero*		4,475	$	100
Z Energy		18,164		98

				2,223

Norway — 0.8%
Akastor*		6,259		13
Aker, Cl A		1,293		63
Aker BP		5,086		125
Aker Solutions*		7,544		42
Atea		4,074		57
Austevoll Seafood		4,906		41
B2Holding		7,247		18
Bakkafrost P		14,668		621
Borr Drilling*		19,296		81
Borregaard		5,268		52
BW LPG* (A)		3,303		16
BW Offshore*		4,079		18
DNB		35,843		664
DNO*		32,542		38
Entra (A)		5,500		82
Europris (A)		9,027		37
Frontline		3,849		18
Gaming Innovation Group*		15,179		9
Gjensidige Forsikring		3,498		66
Golden Ocean Group*		3,874		31
Grieg Seafood		2,312		20
Hexagon Composites*		3,456		12
Hoegh LNG Holdings		2,572		20
IDEX*		20,459		13
Kongsberg Automotive*		22,873		33
Leroy Seafood Group		15,607		84
Marine Harvest*		7,136		121
Nordic Nanovector*		1,782		18
Nordic Semiconductor*		6,624		34
Norsk Hydro		23,380		178
Norway Royal Salmon		572		9
Norwegian Air Shuttle*		1,343		29
Norwegian Finans Holding*		5,293		59
Norwegian Property		7,924		10
Ocean Yield		1,825		15
Opera Software*		5,434		17
Orkla		13,256		141
Petroleum Geo-Services*		15,069		31
Protector Forsikring		3,416		37
REC Silicon*		90,910		15
Salmar		2,642		79
Sbanken (A)		3,864		38
Scatec Solar (A)		2,842		17

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Schibsted, Cl A		7,944	$	227
Schibsted, Cl B		9,644		256
Selvaag Bolig		2,183		9
Songa Offshore*		6,193		45
SpareBank 1 Nord Norge		5,094		39
SpareBank 1 SMN		6,403		64
Statoil		44,943		958
Stolt-Nielsen		1,401		19
Storebrand		23,130		188
Subsea 7*		13,736		206
Telenor		12,690		272
TGS NOPEC Geophysical		5,102		121
Wallenius Wilhelmsen Logistics, Cl B*		5,325		39
XXL (A)		5,035		52
Yara International		133,854		6,142

				11,759

Panama — 0.0%
Avianca Holdings ADR		3,928		31

Peru — 0.2%
Cia de Minas Buenaventura ADR		24,430		344
Credicorp		9,200		1,908

				2,252

Philippines — 0.1%
Bloomberry Resorts*		1,080,300		236
Cebu Air		177,710		356
Energy Development		316,009		36
Lopez Holdings		910,100		102
Metro Retail Stores Group		612,000		48
Pepsi-Cola Products Philippines		214,000		9
San Miguel		144,580		323
San Miguel Pure Foods		3,390		36

				1,146

Poland — 0.4%
CD Projekt		57,197		1,594
Grupa Lotos		60,862		1,009
Jastrzebska Spolka Weglowa*		6,115		169
Polski Koncern Naftowy Orlen		64,848		1,975
Polskie Gornictwo Naftowe i Gazownictwo		242,424		438

				5,185

Portugal — 0.1%
Altri SGPS		3,105		19
Banco Comercial Portugues, Cl R*		501,953		165
Banco Espirito Santo* (B) (C)		46,916		—
Corticeira Amorim SGPS		1,669		21


Description	Shares		Value (000)
CTT-Correios de Portugal		7,572	$	32
EDP-Energias de Portugal		38,650		134
Galp Energia		8,723		160
Jeronimo Martins		4,245		83
Mota-Engil SGPS		3,895		17
Navigator		11,556		59
NOS SGPS		13,416		88
REN — Redes Energeticas Nacionais SGPS		17,281		51
Semapa-Sociedade de Investimento e Gestao		862		18
Sonae SGPS		32,660		44

				891

Qatar — 0.2%
Barwa Real Estate		142,526		1,266
Mannai		745		12
Ooredoo QPSC		63,688		1,588
Qatar Islamic Bank SAQ		7,532		203
Qatar National Bank SAQ		10,797		376
United Development QSC		36,420		144

				3,589

Russia — 0.3%
Lukoil PJSC ADR		2,564		148
Magnitogorsk Iron & Steel Works PJSC GDR		28,651		279
PhosAgro PJSC GDR		31,204		451
Sberbank of Russia PJSC ADR		225,562		3,819
Sberbank of Russia PJSC ADR		418		7

				4,704

Singapore — 2.1%
Accordia Golf Trust		27,900		14
Ascendas‡		41,900		85
Ascendas Hospitality Trust‡		21,400		14
Ascott Residence Trust‡		64,800		59
Asian Pay Television Trust		72,100		32
Boustead Singapore		15,300		10
Bumitama Agri		19,400		11
Cache Logistics Trust‡		55,106		35
CapitaLand		44,100		116
CapitaLand Commercial Trust‡		44,774		65
CapitaLand Mall Trust‡		43,300		69
CapitaLand Retail China Trust‡		32,600		39
CDL Hospitality Trusts‡		42,400		54
China Aviation Oil Singapore		8,600		10
Chip Eng Seng		18,600		14
City Developments		6,900		64
ComfortDelGro		38,000		56

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
COSCO Shipping International Singapore*		45,000	$	13
Dairy Farm International Holdings		16,800		132
DBS Group Holdings		291,134		5,410
ESR-REIT‡		35,342		15
Ezion Holdings*		129,800		15
Far East Hospitality Trust‡		30,900		17
First Real Estate Investment Trust‡		28,800		30
First Resources		29,700		42
Frasers Centrepoint Trust‡		30,000		50
Frasers Commercial Trust‡		35,994		40
Frasers Logistics & Industrial Trust‡		62,300		54
Genting Singapore		103,300		101
GL		194,600		123
Global Logistic Properties		45,700		115
Golden Agri-Resources		142,300		39
Great Eastern Holdings		38,100		788
Haw Par		29,112		247
Hongkong Land Holdings		555,100		3,909
Hutchison Port Holdings Trust, Cl U		95,600		40
Indofood Agri Resources		2,600		1
Japfa		23,900		9
Jardine Cycle & Carriage		1,733		53
Jardine Matheson Holdings		92,300		5,608
Jardine Strategic Holdings		3,600		142
Keppel		23,700		130
Keppel‡		94,700		89
Keppel DC‡		52,500		56
Keppel Infrastructure Trust		211,600		91
Lippo Malls Indonesia Retail Trust‡		97,300		29
M1		19,900		27
Manulife US‡		42,000		38
Mapletree Commercial Trust‡		94,300		114
Mapletree Greater China Commercial Trust‡		94,500		87
Mapletree Industrial Trust‡		69,400		105
Mapletree Logistics Trust‡		93,360		92
NetLink NBN Trust*		222,400		139
Noble Group*		54,580		8
OUE		18,200		25
OUE Hospitality Trust‡		55,400		35
Oversea-Chinese Banking		54,072		501
Parkway Life‡		20,000		45
QAF		5,100		4
Raffles Medical Group		43,200		36
RHT Health Trust		21,500		14
Riverstone Holdings		12,500		10
Sabana Shari’ah Compliant Industrial‡		34,300		10


Description	Shares		Value (000)
SATS		12,900	$	50
Sembcorp Industries		14,500		33
Sembcorp Marine		38,300		52
Sheng Siong Group		19,400		13
SIIC Environment Holdings		29,800		11
Silverlake Axis		31,400		14
Singapore Airlines		9,400		75
Singapore Exchange		13,600		76
Singapore Post		74,200		69
Singapore Press Holdings		27,000		53
Singapore Technologies Engineering		26,300		64
Singapore Telecommunications		914,600		2,441
Soilbuild Business Space‡		28,000		14
SPH‡		38,400		30
Starhill Global‡		81,100		47
StarHub		9,600		20
Suntec‡		43,900		71
United Engineers		25,500		50
United Industrial		16,648		41
United Overseas Bank		393,918		7,791
UOL Group		8,985		60
Venture		13,900		213
Wilmar International		27,000		62
Wing Tai Holdings		24,600		42
Yangzijiang Shipbuilding Holdings		41,800		46
Yanlord Land Group		37,300		45
Yoma Strategic Holdings		59,500		24

				30,932

South Africa — 2.1%
Alviva Holdings		10,469		16
Anglo American		30,091		622
Anglo American Platinum*		13,174		376
Astral Foods		3,160		68
Bid		71,773		1,746
Bidvest Group		136,046		2,398
Capitec Bank Holdings		18,988		1,685
Cie Financiere Richemont		41,636		376
Exxaro Resources		4,777		63
FirstRand		380,708		2,069
Grindrod*		130,169		144
Kumba Iron Ore		25,303		775
MMI Holdings		87,990		149
Mondi		49,008		1,265
MTN Group		46,987		519
Murray & Roberts Holdings		129,650		127
Naspers, Cl N		13,787		3,846
Old Mutual		115,736		356

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Peregrine Holdings		189,232	$	390
Sandown Capital Pty*		189,232		50
Sasol		111,050		3,843
Standard Bank Group		291,467		4,609
Telkom		136,525		531
Tiger Brands		108,110		4,020
Tsogo Sun Holdings		116,937		230
Wilson Bayly Holmes-Ovcon		9,970		125

				30,398

South Korea — 3.1%
CJ O Shopping		1,379		298
CKH Food & Health*		122,645		101
Coway		12,740		1,163
Dae Han Flour Mills		86		13
Daeyang Electric*		3,787		43
Dongyang E&P		10,103		117
GS Home Shopping		1,461		296
Hana Financial Group		15,071		701
Hankook Tire		25,911		1,318
Hite Jinro		14,163		319
Hyundai Elevator		6,399		325
Hyundai Motor		5,127		747
KT		17,542		496
Kwangju Bank		5,257		59
LG		10,469		890
LG Chemical		3,508		1,334
LG Display		945		26
LG Electronics		23,137		2,295
LG Innotek		713		97
LG Uplus		46,249		607
Lotte		2,631		160
LOTTE Himart		3,321		214
Lotte Shopping		2,054		382
Moorim Paper*		35,210		80
POSCO		5,514		1,710
POSCO ADR		73,400		5,734
S-1, Cl 1		4,511		451
Sam Young Electronics		1,907		23
Samsung Electronics		6,616		15,796
Samsung Fire & Marine Insurance		3,491		871
SeAH Holdings		225		32
Shinhan Financial Group		66,110		3,050
SK Hynix		53,294		3,811
SK Telecom		9,902		2,471
Tera Semicon		8,127		213
UIL		6,402		39

				46,282


Description	Shares		Value (000)
Spain — 1.7%
Abertis Infraestructuras		11,725	$	261
Acciona		1,357		111
Acerinox		43,323		620
ACS Actividades de Construccion y Servicios		4,193		164
Aena SME (A)		1,143		232
Almirall		3,195		32
Amadeus IT Group, Cl A		75,953		5,477
Applus Services		7,178		97
Atresmedia de Medios de Comunicacion		4,549		47
Axiare Patrimonio SOCIMI‡		3,575		79
Banco Bilbao Vizcaya Argentaria		114,360		976
Banco de Sabadell		92,642		184
Banco Santander		1,253,945		8,242
Bankia		128,305		614
Bankinter		11,575		110
Bolsas y Mercados Espanoles SHMSF		4,006		128
CaixaBank		60,641		283
Cellnex Telecom (A)		7,647		196
Cia de Distribucion Integral Logista Holdings		2,099		48
CIE Automotive		2,964		86
Codere*		2,424		23
Construcciones y Auxiliar de Ferrocarriles		1,029		42
Distribuidora Internacional de Alimentacion		32,016		165
Ebro Foods		3,513		82
Enagas		3,897		112
Ence Energia y Celulosa		7,406		49
Endesa		5,438		116
Euskaltel (A)		4,421		36
Faes Farma		14,354		51
Ferrovial		8,527		195
Financiera Alba		582		33
Fomento de Construcciones y Contratas*		3,976		41
Gas Natural SDG		5,696		132
Gestamp Automocion* (A)		9,587		69
Global Dominion Access* (A)		2,132		11
Grifols		5,197		152
Grupo Catalana Occidente		1,907		84
Hispania Activos Inmobiliarios SOCIMI‡		5,992		113
Iberdrola		97,601		757
Indra Sistemas*		6,263		86

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Industria de Diseno Textil		18,735	$	653
Inmobiliaria Colonial Socimi‡		14,853		148
International Consolidated Airlines Group		10,622		92
Lar Espana Real Estate Socimi‡		4,951		53
Liberbank*		114,772		61
Mapfre		18,908		61
Mediaset Espana Comunicacion		36,153		406
Melia Hotels International		5,755		80
Merlin Properties Socimi‡		17,849		242
Miquel y Costas & Miquel		572		25
Neinor Homes* (A)		4,233		93
NH Hotel Group		10,986		79
Obrascon Huarte Lain*		5,918		35
Papeles y Cartones de Europa		2,544		35
Pharma Mar*		9,923		30
Prosegur Cia de Seguridad		14,056		110
Realia Business*		8,256		11
Red Electrica		7,530		169
Repsol		20,600		364
Sacyr*		19,183		54
Saeta Yield		2,503		29
Siemens Gamesa Renewable Energy		3,582		49
Talgo (A)		5,020		26
Tecnicas Reunidas		1,714		54
Telefonica		77,827		759
Telepizza Group* (A)		4,776		27
Tubacex*		4,499		18
Unicaja Banco* (A)		43,080		68
Viscofan		12,116		800
Zardoya Otis		9,926		108

				25,075

Sweden — 1.4%
AAK		1,494		128
AcadeMedia* (A)		2,399		19
AF, Cl B		3,778		83
Ahlsell (A)		13,209		85
Alfa Laval		5,032		119
Alimak Group (A)		1,701		27
Arcam*		288		12
Arjo*		11,651		33
Assa Abloy, Cl B		97,859		2,033
Atlas Copco, Cl A		11,549		499
Atlas Copco, Cl B		6,603		253
Attendo (A)		5,472		58
Avanza Bank Holding		1,231		52
Axfood		5,606		108


Description	Shares		Value (000)
Bergman & Beving, Cl B		1,105	$	12
Betsson		6,109		45
Bilia, Cl A		4,285		42
BillerudKorsnas		8,637		148
BioGaia, Cl B		824		33
Boliden		4,762		163
Bonava, Cl B		4,433		62
Bravida Holding (A)		9,344		62
Bufab		1,307		17
Bure Equity		2,535		30
Byggmax Group		3,223		22
Camurus*		670		11
Capio (A)		7,251		39
Castellum		12,733		214
Catena Media*		1,581		20
Cherry*		2,522		15
Clas Ohlson, Cl B		1,973		27
Cloetta, Cl B		11,083		40
Collector*		901		9
Com Hem Holding		7,457		114
D Carnegie, Cl B*		1,607		24
Dios Fastigheter		5,544		38
Dometic Group (A)		14,595		149
Dustin Group (A)		2,977		30
Elanders, Cl B		808		8
Electrolux		4,043		130
Elekta, Cl B		18,599		154
Eltel* (A)		6,171		22
Essity, Cl B*		71,424		2,029
Evolution Gaming Group (A)		1,023		72
Fabege		6,734		143
Fastighets Balder, Cl B*		4,997		134
Fingerprint Cards, Cl B		15,443		30
Getinge, Cl B		3,481		50
Granges		3,918		40
Gunnebo		1,909		8
Haldex*		2,147		23
Hansa Medical*		1,022		31
Hemfosa Fastigheter		8,219		110
Hennes & Mauritz, Cl B		16,005		330
Hexagon, Cl B		4,382		220
Hexpol		11,886		120
Hoist Finance (A)		3,722		42
Holmen, Cl B		2,561		136
Hufvudstaden, Cl A		5,701		91
Humana		1,453		10
Husqvarna, Cl B		7,257		69

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
ICA Gruppen		1,202	$	44
Industrivarden, Cl C		2,909		72
Indutrade		4,450		121
Intrum Justitia		3,593		133
Investment Oresund		1,426		23
Investor, Cl B		7,682		350
Inwido		2,957		30
ITAB Shop Concept		1,376		9
JM		3,694		84
KappAhl		3,435		19
Kindred Group		11,004		158
Kinnevik		4,002		135
Klovern, Cl B		31,775		42
Kungsleden		10,543		76
L E Lundbergforetagen, Cl B		731		55
LeoVegas (A)		3,366		34
Lindab International		3,608		30
Loomis, Cl B		3,709		156
Lundin Petroleum*		3,250		74
Mekonomen		1,374		25
Millicom International Cellular		6,198		419
Modern Times Group, Cl B		12,164		511
Mycronic		3,321		34
NCC, Cl B		4,039		77
NetEnt*		9,260		64
New Wave Group, Cl B		1,968		13
Nibe Industrier, Cl B		17,310		166
Nobia		6,234		53
Nobina (A)		5,789		38
Nolato, Cl B		1,047		69
Nordax Group (A)		5,949		38
Nordea Bank		84,391		1,022
Oriflame Holding		2,008		83
Pandox, Cl B		3,864		75
Paradox Interactive		1,136		13
Peab		9,155		79
Probi		325		13
Ratos, Cl B		11,922		52
RaySearch Laboratories*		1,189		25
Recipharm, Cl B		2,366		29
Resurs Holding (A)		5,447		39
Rezidor Hotel Group		2,640		8
Saab, Cl B		3,256		158
Sandvik		71,951		1,260
SAS*		4,281		11
Scandi Standard		1,887		15
Scandic Hotels Group (A)		4,385		63


Description	Shares		Value (000)
Securitas, Cl B		5,281	$	92
Skandinaviska Enskilda Banken, Cl A		25,652		301
Skanska, Cl B		5,817		121
SKF, Cl B		6,143		136
SkiStar		1,147		22
SSAB*		34,211		153
SSAB, Cl A*		10,992		60
Starbreeze*		11,079		11
Svenska Cellulosa, Cl B		30,638		316
Svenska Handelsbanken, Cl A		107,811		1,474
Sweco, Cl B		3,426		76
Swedbank, Cl A		15,269		368
Swedish Match		10,350		408
Swedish Orphan Biovitrum*		7,775		107
Tele2, Cl B		6,271		77
Telefonaktiebolaget LM Ericsson, Cl B		89,273		586
Telia		45,062		201
Thule Group (A)		5,327		120
Tobii*		4,961		21
Trelleborg, Cl B		12,240		284
Victoria Park, Cl B		3,607		13
Vitrolife		674		51
Volati		1,272		10
Volvo, Cl B		26,801		498
Wallenstam, Cl B		9,515		92
Wihlborgs Fastigheter		3,763		90

				20,662

Switzerland — 6.7%
ABB		31,623		848
Adecco Group		17,013		1,302
Allreal Holding		654		111
ALSO Holding		215		30
ams*		3,261		297
APG SGA		77		36
Arbonia*		1,881		31
Aryzta		4,654		185
Ascom Holding		1,936		50
Autoneum Holding		161		46
Bachem Holding, Cl B		214		34
Baloise Holding		835		130
Banque Cantonale Vaudoise		154		116
Barry Callebaut*		38		79
Basilea Pharmaceutica*		649		51
Bell Food Group		83		37
BKW		568		34
Bobst Group		447		59
Bossard Holding		308		73

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Bucher Industries		345	$	140
Burckhardt Compression Holding		155		50
Burkhalter Holding		263		34
Cembra Money Bank		1,516		141
Chocoladefabriken Lindt & Sprungli		2		145
Chocoladefabriken Lindt & Sprungli PC		17		104
Cie Financiere Richemont		96,519		8,746
Clariant		3,721		104
Coca-Cola		3,115		102
Comet Holding		363		57
Conzzeta		73		76
COSMO Pharmaceuticals		360		54
Credit Suisse Group		41,683		745
Daetwyler Holding		425		82
DKSH Holding		3,743		327
dormakaba Holding		171		159
Dufry*		591		89
EFG International		4,680		49
Emmi		110		79
EMS-Chemie Holding		138		92
Feintool International Holding		78		9
Ferguson		4,278		308
Flughafen Zurich		1,007		230
Forbo Holding		63		97
Galenica* (A)		3,720		191
GAM Holding		7,820		126
Geberit		4,404		1,940
Georg Fischer		204		270
Givaudan		156		361
Gurit Holding		15		16
Helvetia Holding		529		298
Huber + Suhner		637		33
Idorsia*		6,038		157
Implenia		815		55
Inficon Holding		81		51
Intershop Holding		41		20
Julius Baer Group		3,793		232
Kardex		337		41
Komax Holding		201		66
Kudelski		1,932		24
Kuehne + Nagel International		8,207		1,453
LafargeHolcim*		99,757		5,625
Landis+Gyr Group*		1,747		138
LEM Holding		37		63
Leonteq*		489		32
Logitech International		30,857		1,042
Lonza Group		1,257		339
Meyer Burger Technology*		26,356		45


Description	Shares		Value (000)
Mobilezone Holding		854	$	11
Mobimo Holding*		381		102
Molecular Partners*		442		12
Nestle		217,449		18,699
Novartis		191,359		16,182
OC Oerlikon		10,756		182
Orior		188		15
Panalpina Welttransport Holding		541		84
Pargesa Holding		651		56
Partners Group Holding		301		206
PSP Swiss Property		2,083		198
Rieter Holding		183		45
Roche Holding		44,743		11,318
Schindler Holding		349		79
Schindler Holding		709		163
Schmolz + Bickenbach*		18,207		16
Schweiter Technologies		53		69
SFS Group		880		102
SGS		91		237
Siegfried Holding		192		64
Sika		36		286
Sonova Holding		3,834		599
St. Galler Kantonalbank		142		71
Straumann Holding		177		125
Sulzer*		700		85
Sunrise Communications Group (A)		1,739		159
Swatch Group		941		72
Swatch Group BR		16,984		6,926
Swiss Life Holding		564		200
Swiss Prime Site		1,228		113
Swiss Re		5,409		507
Swisscom		439		233
Swissquote Group Holding		355		14
Tecan Group		561		117
Temenos Group		3,053		392
u-blox Holding		332		65
UBS Group		455,465		8,386
Valiant Holding		841		91
Valora Holding		148		49
VAT Group* (A)		1,009		150
Vifor Pharma		822		105
Vontobel Holding		1,210		76
VZ Holding		148		50
Ypsomed Holding		182		30
Zehnder Group		301		12
Zur Rose Group*		317		43
Zurich Insurance Group		9,924		3,020

				98,002

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Taiwan — 1.8%
AU Optronics ADR		603,609	$	2,511
Chroma ATE		172,000		936
Delta Electronics		103,516		499
Largan Precision		10,000		1,351
PChome Online		86,587		399
Ruentex Industries		215,082		366
Taiwan Semiconductor Manufacturing ADR		396,424		15,719
Taiwan Semiconductor Manufacturing		350,000		2,699
Teco Electric and Machinery		730,387		699
United Microelectronics ADR		498,001		1,190
Yungtay Engineering		492,000		794

				27,163

Thailand — 0.9%
Advanced Information Technology		26,800		25
Airports of Thailand		1,180,100		2,462
Bangchak NVDR		160,900		201
Bangkok Bank		147,100		989
Bangkok Bank NVDR		21,200		131
Banpu NVDR		496,500		297
BEC World		472,300		190
CP ALL		1,023,100		2,417
Kasikornbank		46,200		339
KGI Securities Thailand NVDR		747,900		102
MFEC NVDR		160,200		24
PTT NVDR		219,600		2,965
PTT Global Chemical		103,200		269
PTT Global Chemical NVDR		395,300		1,031
Sansiri		1,538,500		103
Star Petroleum Refining NVDR		1,491,400		783
Syntec Construction NVDR		2,826,500		481
Thai Oil NVDR		249,500		792

				13,601

Turkey — 0.6%
Albaraka Turk Katilim Bankasi		44,267		18
Anadolu Cam Sanayii		44,656		31
Dogan Sirketler Grubu Holding*		1,398,951		321
Eregli Demir ve Celik Fabrikalari		712,468		1,883
Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret		20,606		63
KOC Holding		318,941		1,555
Torunlar Gayrimenkul Yatirim Ortakligi‡		460,682		405
Tupras Turkiye Petrol Rafinerileri		15,354		492
Turk Hava Yollari*		368,130		1,524
Turkiye Garanti Bankasi		821,950		2,325


Description	Shares		Value (000)
Turkiye Sise ve Cam Fabrikalari		421,191	$	522
Ulker Biskuvi Sanayi		53,064		275

				9,414

United Arab Emirates — 0.1%
Aldar Properties PJSC		979,657		586
Emaar Properties PJSC		522,273		986
National Central Cooling PJSC		265,588		131

				1,703

United Kingdom — 15.0%
3i Group		109,745		1,353
888 Holdings		23,422		89
AA		30,247		70
Abcam		9,574		136
Acacia Mining		9,546		26
Admiral Group		29,062		786
Advanced Medical Solutions Group		10,453		45
Aggreko		303,089		3,269
Aldermore Group*		13,476		56
Allied Minds*		13,370		30
Amerisur Resources*		53,259		13
Anglo American		325,720		6,813
Antofagasta		47,989		651
AO World*		14,060		21
Arrow Global Group		8,590		46
Ascential		20,930		109
Ashmore Group		20,781		114
Ashtead Group		8,454		227
ASOS*		2,837		257
Associated British Foods		6,033		230
Assura‡		114,424		99
AstraZeneca		21,690		1,500
Auto Trader Group (A)		49,520		236
AVEVA Group		3,342		125
Aviva		67,870		464
B&M European Value Retail		43,017		246
Babcock International Group		3,756		36
BAE Systems		162,074		1,254
Balfour Beatty		35,443		142
Bank of Ireland Group*		11,295		97
Barclays		1,569,254		4,303
Barratt Developments		35,085		307
BBA Aviation		51,421		243
Beazley		26,649		192
Bellway		6,196		298
Berkeley Group Holdings		2,207		125
BGEO Group		8,665		416
BHP Billiton		321,199		6,602

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Biffa (A)		14,037	$	50
Big Yellow Group‡		7,606		89
Blue Prism Group*		1,802		31
Bodycote		10,261		126
boohoo.com*		32,919		84
Booker Group		84,376		261
Bovis Homes Group		6,642		105
BP		581,978		4,107
Brewin Dolphin Holdings		15,759		83
British American Tobacco		37,450		2,536
British American Tobacco ADR		3,308		222
British Land‡		16,324		152
Britvic		13,565		149
BT Group, Cl A		144,935		532
BTG*		19,523		201
Bunzl		54,677		1,530
Burberry Group		7,327		177
Burford Capital		9,426		147
Cairn Energy*		30,803		89
Cairn Homes*		45,134		106
Capita		92,688		502
Capital & Counties Properties		37,563		162
Card Factory		16,784		67
Carnival		65,398		4,320
Centamin		54,789		117
Centrica		113,492		210
Chemring Group		18,662		46
Cineworld Group		10,477		85
Civitas Social Housing‡		10,035		15
Clinigen Group		5,927		82
Close Brothers Group		13,844		272
CMC Markets (A)		5,271		11
Cobham*		1,548,420		2,640
Compass Group		377,758		8,161
ConvaTec Group (A)		265,772		737
Conviviality		8,687		47
Costain Group		5,842		37
Countryside Properties (A)		18,292		87
Countrywide*		7,213		12
Crest Nicholson Holdings		13,231		97
CRH		3,314		119
Croda International		2,254		135
CVS Group		3,170		45
CYBG		43,723		201
Daily Mail & General Trust, Cl A		49,602		399
Dairy Crest Group		7,519		58
Dart Group		4,407		40


Description	Shares		Value (000)
DCC		10,289	$	1,037
De La Rue		5,418		47
Debenhams		62,228		29
Dechra Pharmaceuticals		4,748		134
Derwent London‡		5,343		225
Devro		60,282		186
DFS Furniture		9,602		25
Diageo		357,173		13,141
Dialight*		996		7
Dialog Semiconductor*		3,938		123
Dignity		2,731		67
Diploma		6,481		109
Direct Line Insurance Group		23,644		122
Dixons Carphone		48,694		131
Domino’s Pizza Group		24,888		116
Drax Group		20,466		75
DS Smith		52,543		367
Dunelm Group		5,192		49
easyJet		24,055		476
EI Group*		25,883		49
Electrocomponents		22,984		194
Elementis		23,287		91
Elis*		11,038		301
EMIS Group		3,112		42
Empiric Student Property‡		25,834		32
EnQuest*		64,935		25
Equiniti Group (A)		18,712		72
Essentra		13,483		96
esure Group		16,869		57
Evraz		17,783		82
Experian		168,486		3,721
Faroe Petroleum*		12,437		18
Fenner		9,648		52
Ferrexpo		15,336		61
Fevertree Drinks		4,663		143
Firstgroup*		64,607		96
Forterra (A)		9,207		37
Fresnillo		3,858		74
G4S		267,135		963
Galliford Try		4,042		70
GB Group		6,324		37
Genus		3,115		106
GKN		29,494		127
GlaxoSmithKline		84,278		1,505
Glencore		398,214		2,097
Global Ports Investments GDR*		133,647		508
Globaltrans Investment GDR		40,160		377

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Go-Ahead Group		2,167	$	44
Gocompare.Com Group		12,466		18
Grafton Group		11,482		124
Grainger		21,591		84
Great Portland Estates‡		15,439		144
Greencore Group		35,982		112
Greene King		16,492		124
Greggs		5,053		95
GVC Holdings*		53,053		663
Halfords Group		10,640		50
Halma		19,813		337
Hammerson‡		13,588		100
Hansteen Holdings‡		17,517		34
Hargreaves Lansdown		4,400		107
Hastings Group Holdings (A)		13,244		57
Hays		400,845		990
Helical		4,205		19
Hikma Pharmaceuticals		7,437		114
Hill & Smith Holdings		3,688		67
Hiscox		14,479		286
Hochschild Mining		11,971		43
HomeServe		110,610		1,209
Hon Hai Precision Industry GDR		143,541		908
Hostelworld Group (A)		4,521		23
Hotel Chocolat Group		2,456		12
Howden Joinery Group		32,681		206
HSBC Holdings		344,025		3,562
Hunting*		6,977		57
Hurricane Energy*		77,676		33
Ibstock (A)		19,158		69
IG Group Holdings		70,865		686
IMI		114,461		2,060
Imperial Brands		16,463		703
Inchcape		35,863		379
Indivior*		35,915		198
Informa		93,837		915
Inmarsat		23,899		158
InterContinental Hotels Group		3,131		199
Intermediate Capital Group		14,710		228
International Personal Finance		99,682		266
Intertek Group		37,864		2,653
Intu Properties‡		44,832		153
Investec		11,082		80
iomart Group		3,109		16
IQE*		40,510		75
ITE Group		13,661		34
ITV		424,090		948


Description	Shares		Value (000)
IWG		33,983	$	118
J D Wetherspoon		4,480		76
J Sainsbury		27,697		90
Jackpotjoy*		2,897		32
JD Sports Fashion		23,200		105
John Laing Group (A)		19,757		78
John Menzies		4,386		40
John Wood Group		33,116		292
Johnson Matthey		3,264		136
Jupiter Fund Management		67,190		570
Just Eat*		73,520		775
Just Group		29,845		69
Kainos Group		2,707		12
KAZ Minerals*		12,346		149
KCOM Group		25,392		31
Keller Group		3,711		49
Kerry Group, Cl A		2,678		301
Keywords Studios		2,790		60
Kier Group		5,030		74
Kingfisher		37,134		169
Kingspan Group		7,851		343
Ladbrokes		72,794		179
Laird		24,385		45
Lancashire Holdings		10,620		98
Land Securities Group‡		12,890		175
Legal & General Group		100,465		371
Lloyds Banking Group		8,501,015		7,811
London Stock Exchange Group		5,284		271
LondonMetric Property‡		32,975		83
Lonmin*		12,070		14
Lookers		16,438		23
Luceco (A)		3,510		5
Lukoil PJSC ADR		4,112		235
Majestic Wine		2,479		15
Man Group		81,556		228
Marks & Spencer Group		27,922		119
Marshalls		10,387		64
Marston’s		34,963		53
McCarthy & Stone (A)		63,332		135
Mediclinic International		5,499		48
Meggitt		13,083		85
Melrose Industries		98,404		283
Merlin Entertainments (A)		245,180		1,201
Metro Bank*		3,886		188
Micro Focus International		1,907		65
Micro Focus International ADR*		5,456		183
Mitchells & Butlers		10,783		41

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Mitie Group		18,791	$	49
Mondi		6,392		167
Moneysupermarket.com Group		90,377		435
Morgan Advanced Materials		14,553		66
N Brown Group		8,686		32
National Express Group		44,675		230
National Grid		80,436		951
NCC Group		12,432		39
NewRiver‡		14,334		65
NEX Group		97,460		798
Next		2,561		156
NMC Health		4,254		166
Non-Standard Finance (A)		105,590		102
Northgate		8,027		41
Nostrum Oil & Gas*		3,702		16
Ocado Group*		27,126		145
Old Mutual		83,566		261
On the Beach Group (A)		4,403		28
OneSavings Bank		10,554		59
Ophir Energy*		35,297		32
Oxford Instruments		2,830		33
Paddy Power Betfair		6,620		789
Pagegroup		37,649		238
Pan African Resources		86,747		16
Paragon Banking Group		14,346		95
Pearson		13,830		137
Pendragon		64,794		25
Pennon Group		20,250		214
Persimmon		5,355		198
Petra Diamonds*		25,399		27
Petrofac		18,514		127
Pets at Home Group		98,561		235
Phoenix Group Holdings		18,656		197
Photo-Me International		15,143		38
Playtech		34,334		399
Plus500		4,138		51
Polypipe Group		9,679		51
Premier Foods*		25,884		15
Premier Oil*		23,548		24
Primary Health Properties‡		29,439		47
Provident Financial		33,543		407
Prudential		113,865		2,929
Purplebricks Group*		10,473		59
PZ Cussons		16,517		72
QinetiQ Group		28,318		88
Randgold Resources		1,639		164
Rank Group		9,405		31


Description	Shares		Value (000)
Rathbone Brothers		2,551	$	88
RDI‡		74,092		37
Reckitt Benckiser Group		88,015		8,222
Redde		16,074		38
Redrow		12,446		110
RELX		74,877		1,758
Renewi		39,435		55
Renishaw		1,926		136
Rentokil Initial		94,574		406
Restaurant Group		9,592		39
Restore		6,121		49
Rightmove		33,808		2,054
Rio Tinto		88,934		4,732
Rolls-Royce Holdings		245,683		2,811
Rotork		70,461		254
Royal Bank of Scotland Group*		60,500		227
Royal Dutch Shell, Cl A		86,703		2,903
Royal Dutch Shell, Cl B		314,213		10,641
Royal Mail		15,518		95
RPC Group		20,913		249
RPS Group		11,843		44
RSA Insurance Group		16,631		142
SafeCharge International Group		2,887		12
Safestore Holdings‡		10,995		74
Saga		59,448		101
Sage Group		18,747		202
Samsung Electronics GDR		4,860		5,822
Savills		7,536		101
Scapa Group		7,435		44
Schroder‡		14,710		12
Schroders		2,126		101
Segro‡		16,822		133
Senior		22,243		78
Serco Group*		400,181		534
Severn Trent		4,052		118
Shaftesbury‡		12,053		170
Shire		15,585		822
SIG		30,237		72
Sirius Minerals*		198,656		63
Sky*		36,326		496
Smart Metering Systems		3,366		40
Smith & Nephew		23,336		406
Smiths Group		78,907		1,587
Soco International		7,102		11
Softcat		6,095		43
SolGold*		30,651		12
Sophos Group (A)		14,715		113

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Sound Energy, Cl A*		34,244	$	24
South32		5,924		16
Spectris		23,245		781
Spirax-Sarco Engineering		3,777		287
Spire Healthcare Group (A)		15,002		51
Sports Direct International*		11,796		60
SSE		16,844		300
SSP Group		149,892		1,382
St. James’s Place		35,811		593
St. Modwen Properties		10,025		55
Staffline Group		768		11
Stagecoach Group		125,004		278
Standard Chartered*		140,790		1,483
Standard Life Aberdeen		45,325		267
Standard Life Investment Property Income Trust‡		21,212		27
State Bank of India GDR		53,780		2,619
Stobart Group		16,271		62
Stock Spirits Group		8,523		31
SuperGroup		2,748		73
Synthomer		13,541		90
TalkTalk Telecom Group		26,648		55
Tate & Lyle		24,743		235
Taylor Wimpey		56,977		159
Ted Baker		1,694		62
Telecom Plus		3,257		53
Telford Homes		4,691		27
Telit Communications		5,676		11
Tesco		2,072,381		5,856
Thomas Cook Group		543,301		902
TP ICAP		29,200		210
Travis Perkins		267,094		5,651
Tritax Big Box‡		70,661		142
TUI		47,214		982
Tullow Oil*		70,259		196
UBM		19,972		201
UDG Healthcare		12,737		145
Ultra Electronics Holdings		4,154		76
Unilever		50,752		2,827
UNITE Group‡		11,718		127
United Utilities Group		11,659		131
Vectura Group*		30,948		49
Vedanta Resources		4,030		44
Vesuvius		11,153		88
Victoria*		6,230		70
Victrex		10,135		360
Virgin Money Holdings UK		14,963		57
Vodafone Group		569,187		1,806
Watkin Jones		7,565		22


Description	Shares		Value (000)
Weir Group		126,581	$	3,629
WH Smith		32,619		1,033
Whitbread		3,190		172
William Hill		43,186		188
WM Morrison Supermarkets		38,173		113
Workspace Group‡		6,322		86
Worldpay Group (A)		92,707		534
WPP		346,794		6,279
ZPG (A)		14,387		64

				220,968

United States — 1.0%
Consumer Discretionary — 0.0%
SodaStream International*		948		67

Financials — 0.0%
Banco Bradesco ADR*		65,900		675

Industrials — 0.5%
Caesarstone*		1,222		27
Canadian National Railway		64,379		5,310
Copa Holdings, Cl A		13,300		1,783
Kornit Digital*		1,466		24

				7,144

Information Technology — 0.4%
CyberArk Software*		1,606		66
Genpact		12,433		394
InterXion Holding*		3,730		220
Ituran Location and Control		923		32
NXP Semiconductors*		5,859		686
Orbotech*		2,343		118
Wix.com*		1,702		98
Yandex, Cl A*		107,991		3,537

				5,151

Materials — 0.1%
Southern Copper		34,644		1,644

				14,681

Total Common Stock (Cost $1,196,460) (000)				1,413,165

PREFERRED STOCK (D) — 0.7%
Alpargatas		264,198		1,390
Banco Bradesco		44,847		458
Banco do Estado do Rio Grande do Sul		88,900		399
Bayerische Motoren Werke		924		83
Biotest		1,045		25
Draegerwerk & KGaA		522		45
FUCHS PETROLUB		1,216		65
Henkel & KGaA		3,002		397

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Description	Shares		Value (000)
Itau Unibanco Holding		157,700	$	2,024
Itausa - Investimentos Itau		180,297		588
Petroleo Brasileiro		576,400		2,797
Porsche Automobil Holding		2,596		217
Randon Implementos e Participacoes		22,000		48
Sartorius		1,797		172
Schaeffler		2,461		44
Sixt		857		54
Volkswagen		8,170		1,632

Total Preferred Stock (Cost $9,083) (000)				10,438

EXCHANGE TRADED FUND — 0.0%
P2P Global Investments*		4,390		48

Total Exchange Traded Fund (Cost $43) (000)				48


	Number of Rights
RIGHTS — 0.0%
Cleanaway Waste Management, Expires 1/24/2018*		22,894		3
Faes Farma †*		14,354		2
Repsol†*		20,600		9
Transurban Group, Expires 1/22/2018*		2,710		2

Total Rights (Cost $—) (000)				16

SHORT-TERM INVESTMENT — 2.4%

	Shares
State Street Institutional Treasury Money Market Fund, Cl Institutional, 1.160% (E)		34,972,024		34,972

Total Short-Term Investment (Cost $34,972) (000)				34,972

Total Investments In Securities — 99.2% (Cost $1,240,558) (000)			$	1,458,639

Percentages are based on net assets of $1,469,968 (000).

A list of the open futures contracts held by the Fund at December 31, 2017, is as follows (000):

Type of Contract

Number of
Contracts
Long

Expiration
Date

Notional
Amount

Value

Unrealized
Appreciation

MSCI EAFE Index E-MINI

214

Mar-2018

21,537

21,887

350

S&P TSX 60 Index

Mar-2018

2,078

2,132

23,615

24,019

357

*	Non-income producing security.

‡	Real Estate Investment Trust

†	Currently, expiration date is unavailable.

(A)

Security sold within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “accredited investors.” The total value of these securities at December 31, 2017 was $10,316 (000) and represented 0.7% of Net Assets.

(B)

Security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of December 31, 2017, was $45,135 (000) and represented 3.1% of Net Assets.

(C)

Level 3 security in accordance with fair value hierarchy.

(D)

Currently, no stated interest rate.

(E)

The rate reported is the 7-day effective yield as of December 31, 2017.

ADR — American Depositary Receipt

Cl — Class

EAFE — Europe, Australasia and Far East

GDR — Global Depositary Receipt

MSCI — Morgan Stanley Capital International

NVDR — Non-Voting Depositary Receipt

PJSC — Public Joint Stock Company

REIT — Real Estate Investment Trust

S&P — Standard & Poor’s

TSX — Toronto Stock Exchange

The following is a list of the level of inputs used as of December 31, 2017, there in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments In Securities	Level 1		Level 2		Level 3^		Total
Common Stock
Australia	$	44,145	$	—	$	—	$	44,145
Austria		2,914		—		—		2,914
Belgium		9,215		—		—		9,215
Brazil		25,534		—		—		25,534
Canada		66,257		—		—		66,257
Chile		4,346		—		—		4,346
China		31,534		1		—		31,535
Colombia		901		—		—		901
Czech Republic		470		—		—		470
Denmark		21,241		—		—		21,241
Egypt		—		99		—		99
Finland		11,892		—		—		11,892
France		93,712		—		—		93,712
Germany		82,009		—		—		82,009
Greece		3,716		—		—		3,716
Hong Kong		83,552		—		—		83,552
Hungary		1,749		—		—		1,749
India		38,246		—		—		38,246
Indonesia		8,825		—		—		8,825
Ireland		8,528		—		—		8,528
Israel		3,532		2,073		—		5,605
Italy		24,778		—		—		24,778
Japan		214,058		—		—		214,058
Kenya		269		—		—		269
Luxembourg		1,640		—		—		1,640
Malaysia		4,945		—		—		4,945
Mexico		4,463		—		—		4,463
Netherlands		47,860		—		—		47,860
New Zealand		2,223		—		—		2,223
Norway		11,759		—		—		11,759
Panama		31		—		—		31
Peru		2,252		—		—		2,252

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP International Equity Fund


Investments In Securities	Level 1		Level 2		Level 3^		Total
Philippines	$	1,146	$	—	$	—	$	1,146
Poland		5,185		—		—		5,185
Portugal		891		—		—		891
Qatar		144		3,445		—		3,589
Russia		4,704		—		—		4,704
Singapore		30,917		15		—		30,932
South Africa		30,398		—		—		30,398
South Korea		8,464		37,818		—		46,282
Spain		25,075		—		—		25,075
Sweden		20,662		—		—		20,662
Switzerland		98,002		—		—		98,002
Taiwan		27,163		—		—		27,163
Thailand		13,601		—		—		13,601
Turkey		9,414		—		—		9,414
United Arab Emirates		—		1,703		—		1,703
United Kingdom		220,968		—		—		220,968
United States		14,681		—		—		14,681

Total Common Stock		1,368,011		45,154		—		1,413,165

Preferred Stock		10,438		—		—		10,438
Exchange Traded Fund		48		—		—		48
Rights		11		5		—		16
Short-Term Investment		34,972		—		—		34,972

Total Investments in Securities	$	1,413,480	$	45,159	$	—	$	1,458,639


Other Financial Instruments	Level 1		Level 2		Level 3		Total
Futures Contracts**
Unrealized Appreciation	$	357	$	—	$	—	$	357

Total Other Financial Instruments	$	357	$	—	$	—	$	357

**	Futures contracts are valued at the unrealized appreciation on the instrument.

A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments in at the beginning and/or end of the year in relation to net assets. Management has concluded that Level 3 investments are not material in relation to net assets.

For the year ended December 31, 2017, there were transfers between Level 1 and Level 2 assets and liabilities. Changes in the classifications between Levels 1 and 2 occur when foreign equity securities are fair valued using other observable market based inputs in place of the closing exchange price due to events occurring after the close of the exchange or market on which the investment is principally traded. Transfers, if any, between levels are considered to have occurred as of the end of the year.

For the year ended December 31, 2017, securities with a total value of $2,785 (000) transferred from Level 2 to Level 1 as a result of fair valuation of foreign equity securities. For the year ended December 31, 2017, securities with a total value of $106 (000) transferred from Level 1 to Level 2. For the year ended December 31, 2017 there were no transfers in and out of Level 3.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund

SECTOR WEIGHTINGS† (unaudited)

†	Percentages based on total investments.


SCHEDULE OF INVESTMENTS


Description	Face Amount (000)		Value (000)

CORPORATE OBLIGATIONS — 25.2%
Consumer Discretionary — 2.1%
21st Century Fox America
6.400%, 12/15/35	$	973	$	1,293
6.150%, 02/15/41		500		664
4.500%, 02/15/21		100		105
3.700%, 10/15/25		20		21
Amazon.com
4.800%, 12/05/34		300		352
3.875%, 08/22/37 (A)		100		106
American Honda Finance
2.600%, 11/16/22		50		50
2.450%, 09/24/20		100		100
1.950%, 07/20/20		45		45
1.700%, 02/22/19		25		25
Aptiv
3.150%, 11/19/20		100		102
Arcos Dorados Holdings
5.875%, 04/04/27 (A)		330		349
AutoNation
3.800%, 11/15/27		25		25
AutoZone
3.750%, 06/01/27		100		101
Bed Bath & Beyond
3.749%, 08/01/24		25		25
Block Financial
4.125%, 10/01/20		200		206
CBS
3.375%, 03/01/22		150		152
3.375%, 02/15/28		1,235		1,190
2.900%, 06/01/23 (A)		100		98
Charter Communications Operating
6.484%, 10/23/45		150		175
6.384%, 10/23/35		247		288


Description	Face Amount (000)⁽¹⁾		Value (000)

5.375%, 05/01/47		536	$	550
3.579%, 07/23/20		200		204
Cleveland Clinic Foundation
4.858%, 01/01/14		648		729
Comcast
4.400%, 08/15/35		100		109
4.250%, 01/15/33		500		545
4.049%, 11/01/52		427		437
4.000%, 08/15/47		200		209
3.375%, 02/15/25		125		128
3.150%, 03/01/26		50		50
3.150%, 02/15/28		1,668		1,673
2.750%, 03/01/23		100		101
Delphi
4.150%, 03/15/24		40		42
Diageo Investment
2.875%, 05/11/22		100		101
Discovery Communications
5.000%, 09/20/37		150		155
3.800%, 03/13/24		50		51
2.950%, 03/20/23		50		50
Dollar General
4.150%, 11/01/25		25		26
DR Horton
4.000%, 02/15/20		35		36
3.750%, 03/01/19		25		25
Expedia
4.500%, 08/15/24		100		105
Ford Motor
7.450%, 07/16/31		779		1,018
5.291%, 12/08/46		150		163
4.346%, 12/08/26		45		47
Ford Motor Credit
5.875%, 08/02/21		200		220
3.339%, 03/28/22		200		202
2.425%, 06/12/20		200		199
2.343%, 11/02/20		5,458		5,406
General Motors
6.750%, 04/01/46		250		315
5.150%, 04/01/38		1,585		1,690
General Motors Financial
4.300%, 07/13/25		100		104
4.000%, 01/15/25		100		103
4.000%, 10/06/26		50		51
3.700%, 05/09/23		100		102
3.100%, 01/15/19		100		100
2.450%, 11/06/20		812		806
2.350%, 10/04/19		50		50
Grupo Televisa
7.250%, 05/14/43 (MXN)		2,840		109
5.000%, 05/13/45		200		205
Hasbro
3.500%, 09/15/27		30		29
Home Depot
4.400%, 04/01/21		100		106
4.250%, 04/01/46		100		112

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

2.800%, 09/14/27	$	50	$	49
2.625%, 06/01/22		100		101
2.000%, 06/15/19		100		100
2.000%, 04/01/21		100		99
1.800%, 06/05/20		71		70
Lear
5.250%, 01/15/25		45		48
Lowe's
4.625%, 04/15/20		100		104
4.050%, 05/03/47		793		844
3.100%, 05/03/27		100		101
2.500%, 04/15/26		50		48
1.150%, 04/15/19		20		20
Macy's Retail Holdings
3.625%, 06/01/24		100		96
Magna International
3.625%, 06/15/24		50		52
Marriott International
3.125%, 10/15/21		100		101
McDonald's
4.450%, 03/01/47		150		163
3.500%, 03/01/27		100		103
3.375%, 05/26/25		100		103
2.750%, 12/09/20		20		20
NBCUniversal Media
4.375%, 04/01/21		100		106
Newell Brands
5.500%, 04/01/46		100		119
4.000%, 12/01/24		50		52
3.150%, 04/01/21		150		152
NIKE
2.375%, 11/01/26		200		191
Nordstrom
5.000%, 01/15/44		100		96
4.000%, 03/15/27		30		30
Omnicom Group
3.600%, 04/15/26		100		101
O'Reilly Automotive
3.550%, 03/15/26		50		51
Priceline Group
2.750%, 03/15/23		50		50
QVC
4.450%, 02/15/25		65		66
Scripps Networks Interactive
2.750%, 11/15/19		100		100
Starbucks
2.450%, 06/15/26		200		193
Target
4.000%, 07/01/42		200		207
Time Warner
4.875%, 03/15/20		100		105
4.750%, 03/29/21		100		107
3.600%, 07/15/25		100		100
2.100%, 06/01/19		100		100


Description	Face Amount (000)		Value (000)

Time Warner Cable
8.250%, 04/01/19	$	200	$	214
7.300%, 07/01/38		216		271
5.875%, 11/15/40		500		542
4.000%, 09/01/21		100		103
TJX
2.750%, 06/15/21		100		101
Toyota Motor Credit
4.250%, 01/11/21		100		105
2.750%, 05/17/21		100		101
2.250%, 10/18/23		50		49
2.100%, 01/17/19		150		150
1.550%, 10/18/19		2,986		2,960
USJ Acucar e Alcool
9.875%, 11/09/21 (A)		305		261
Viacom
6.875%, 04/30/36		100		114
4.375%, 03/15/43		216		187
3.450%, 10/04/26		150		143
Walt Disney
3.150%, 09/17/25		100		102
1.850%, 05/30/19		150		150
Wesleyan University
4.781%, 07/01/16		726		771
Whirlpool
4.000%, 03/01/24		60		63
Wyndham Worldwide
4.250%, 03/01/22		50		51

				32,521

Consumer Staples — 1.5%
Adecoagro
6.000%, 09/21/27 (A)		550		545
Altria Group
9.250%, 08/06/19		200		222
5.375%, 01/31/44		100		121
Anheuser-Busch InBev Finance
4.900%, 02/01/46		1,935		2,243
3.650%, 02/01/26		350		361
2.650%, 02/01/21		215		216
Anheuser-Busch InBev Worldwide
7.750%, 01/15/19		100		106
5.375%, 01/15/20		100		106
4.950%, 01/15/42		500		579
4.439%, 10/06/48		100		109
2.500%, 07/15/22		100		99
Archer-Daniels-Midland
3.750%, 09/15/47		100		102
BAT Capital
4.540%, 08/15/47 (A)		483		508
4.390%, 08/15/37 (A)		1,400		1,470
3.557%, 08/15/27 (A)		100		100
3.222%, 08/15/24 (A)		50		50
2.764%, 08/15/22 (A)		50		50
2.297%, 08/14/20 (A)		50		50

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Bunge Finance
3.250%, 08/15/26	$	120	$	114
3.000%, 09/25/22		30		30
Central American Bottling
5.750%, 01/31/27 (A)		195		205
Church & Dwight
2.450%, 08/01/22		100		99
CK Hutchison International 17
2.250%, 09/29/20 (A)		957		948
Clorox
3.500%, 12/15/24		50		52
Coca-Cola
3.300%, 09/01/21		100		103
2.875%, 10/27/25		50		50
2.550%, 06/01/26		50		49
2.450%, 11/01/20		50		50
1.875%, 10/27/20		50		50
Colgate-Palmolive
1.750%, 03/15/19		100		100
Constellation Brands
6.000%, 05/01/22		20		22
4.250%, 05/01/23		50		53
3.875%, 11/15/19		10		10
3.750%, 05/01/21		15		16
2.650%, 11/07/22		2,701		2,672
Costco Wholesale
1.700%, 12/15/19		100		99
CVS Health
5.125%, 07/20/45		200		229
3.875%, 07/20/25		120		124
2.875%, 06/01/26		50		48
2.125%, 06/01/21		50		49
CVS Pass-Through Trust
4.163%, 08/11/36 (A)		588		593
General Mills
5.650%, 02/15/19		100		104
Hershey
2.300%, 08/15/26		50		47
Ingredion
3.200%, 10/01/26		50		49
JM Smucker
2.500%, 03/15/20		100		100
Kellogg
4.000%, 12/15/20		100		105
3.400%, 11/15/27		25		25
Kimberly-Clark
2.750%, 02/15/26		100		99
Kraft Heinz Foods
5.000%, 06/04/42		150		161
3.950%, 07/15/25		150		155
3.500%, 07/15/22		200		204
2.000%, 07/02/18		735		735
Kroger
3.300%, 01/15/21		100		102
2.650%, 10/15/26		200		186


Description	Face Amount (000)		Value (000)

McCormick
3.150%, 08/15/24	$	100	$	101
Mead Johnson Nutrition
3.000%, 11/15/20		30		30
MHP
7.750%, 05/10/24 (A)		270		292
Molson Coors Brewing
4.200%, 07/15/46		200		204
1.450%, 07/15/19		25		25
Mondelez International
5.375%, 02/10/20		200		211
PepsiCo
3.600%, 03/01/24		100		105
3.450%, 10/06/46		200		194
3.000%, 10/15/27		50		50
2.850%, 02/24/26		100		99
2.375%, 10/06/26		200		190
2.000%, 04/15/21		50		50
Philip Morris International
4.500%, 03/26/20		100		105
3.375%, 08/11/25		100		102
2.500%, 11/02/22		100		99
1.875%, 02/25/21		200		196
Procter & Gamble
3.500%, 10/25/47		802		810
2.450%, 11/03/26		50		48
2.150%, 08/11/22		100		99
1.900%, 11/01/19		100		100
Reynolds American
8.125%, 06/23/19		100		108
4.450%, 06/12/25		150		160
2.300%, 06/12/18		3,807		3,812
Sysco
2.600%, 10/01/20		50		50
2.500%, 07/15/21		35		35
1.900%, 04/01/19		30		30
Tyson Foods
4.875%, 08/15/34		200		225
Unilever Capital
4.250%, 02/10/21		150		158
2.200%, 05/05/22		100		99
Walgreens Boots Alliance
3.450%, 06/01/26		165		163
2.700%, 11/18/19		100		101
Wal-Mart Stores
4.250%, 04/15/21		125		132
3.625%, 12/15/47		250		262
3.300%, 04/22/24		100		104
2.650%, 12/15/24		50		50
1.900%, 12/15/20		300		298

				23,771

Energy — 3.5%
Abu Dhabi Crude Oil Pipeline
4.600%, 11/02/47 (A)		1,501		1,544

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Anadarko Petroleum
6.950%, 06/15/19	$	2,744	$	2,914
6.600%, 03/15/46		200		257
6.450%, 09/15/36		633		775
Andeavor
4.500%, 04/01/48		519		525
3.800%, 04/01/28		670		671
Andeavor Logistics
5.200%, 12/01/47		150		156
3.500%, 12/01/22		25		25
Apache
3.250%, 04/15/22		100		101
Baker Hughes a GE
4.080%, 12/15/47 (A)		1,039		1,057
3.337%, 12/15/27 (A)		100		100
2.773%, 12/15/22 (A)		1,016		1,014
Boardwalk Pipelines
4.950%, 12/15/24		50		54
BP Capital Markets
3.561%, 11/01/21		200		208
2.500%, 11/06/22		250		248
2.237%, 05/10/19		100		100
2.112%, 09/16/21		100		99
1.676%, 05/03/19		20		20
Buckeye Partners
3.950%, 12/01/26		200		197
Canadian Natural Resources
6.450%, 06/30/33		186		227
5.900%, 02/01/18		495		497
4.950%, 06/01/47		459		514
3.850%, 06/01/27		100		102
2.950%, 01/15/23		1,256		1,250
Cenovus Energy
5.700%, 10/15/19		25		26
5.250%, 06/15/37		200		206
4.450%, 09/15/42		40		37
3.000%, 08/15/22		20		20
Chevron
2.954%, 05/16/26		50		50
2.566%, 05/16/23		50		50
2.355%, 12/05/22		150		149
2.193%, 11/15/19		90		90
2.100%, 05/16/21		50		49
1.961%, 03/03/20		50		50
1.561%, 05/16/19		50		50
Cimarex Energy
3.900%, 05/15/27		100		102
CNOOC Finance 2015 USA
3.500%, 05/05/25		200		202
Concho Resources
4.375%, 01/15/25		50		52
ConocoPhillips
6.500%, 02/01/39		300		420
4.200%, 03/15/21		40		42
Devon Energy
3.250%, 05/15/22		100		102


Description	Face Amount (000)		Value (000)

Ecopetrol
7.375%, 09/18/43	$	200	$	240
5.875%, 09/18/23		100		111
Emera US Finance
4.750%, 06/15/46		200		219
Enable Midstream Partners
2.400%, 05/15/19		50		50
Enbridge
4.000%, 10/01/23		576		600
3.700%, 07/15/27		1,769		1,776
Enbridge Energy Partners
5.875%, 10/15/25		100		113
Encana
3.900%, 11/15/21		50		51
Energy Transfer
6.625%, 10/15/36		1,179		1,358
6.125%, 12/15/45		150		163
4.500%, 11/01/23		100		103
4.200%, 04/15/27		200		199
EnLink Midstream Partners
5.450%, 06/01/47		150		159
2.700%, 04/01/19		800		799
Enterprise Products Operating
5.950%, 02/01/41		100		124
3.700%, 02/15/26		250		256
3.350%, 03/15/23		100		102
2.850%, 04/15/21		30		30
EOG Resources
3.150%, 04/01/25		100		99
2.625%, 03/15/23		100		99
Equities
3.900%, 10/01/27		1,013		1,007
3.000%, 10/01/22		2,008		1,987
ExxonMobil
4.114%, 03/01/46		150		168
3.043%, 03/01/26		50		51
2.726%, 03/01/23		35		35
2.709%, 03/06/25		150		149
2.222%, 03/01/21		20		20
1.708%, 03/01/19		50		50
Fermaca Enterprises
6.375%, 03/30/38 (A)		188		203
Halliburton
5.000%, 11/15/45		100		115
3.500%, 08/01/23		100		103
Hess
4.300%, 04/01/27		200		200
Husky Energy
4.000%, 04/15/24		100		104
KazMunayGas National JSC
5.750%, 04/19/47 (A)		690		735
Kinder Morgan
5.550%, 06/01/45		300		328
3.050%, 12/01/19		50		51

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Kinder Morgan Energy Partners
6.375%, 03/01/41	$	150	$	174
5.500%, 03/01/44		100		107
3.500%, 03/01/21		20		20
Magellan Midstream Partners
4.250%, 02/01/21		100		104
Marathon Petroleum
4.750%, 09/15/44		1,275		1,332
3.400%, 12/15/20		657		671
MPLX
5.200%, 03/01/47		200		219
4.125%, 03/01/27		65		67
4.000%, 02/15/25		25		26
National Oilwell Varco
2.600%, 12/01/22		100		98
Noble Energy
4.950%, 08/15/47		1,294		1,385
4.150%, 12/15/21		100		104
Occidental Petroleum
4.400%, 04/15/46		200		221
3.400%, 04/15/26		70		72
Odebrecht Drilling Norbe VIII/IX
6.350%, 12/01/21 (A) (G)		140		66
6.350% cash/7.350% PIK, 12/01/26 (A) (G)		165		78
Odebrecht Oil & Gas Finance
0.511%, 01/03/66 (A) (B) (G)		97		45
ONEOK
4.000%, 07/13/27		30		30
ONEOK Partners
6.850%, 10/15/37		603		752
3.375%, 10/01/22		100		101
Petrobras Global Finance BV
7.375%, 01/17/27		420		463
6.125%, 01/17/22		20		21
4.375%, 05/20/23		1,165		1,152
Petroleos de Venezuela
9.000%, 11/17/21 (C)		660		183
8.500%, 10/27/20 (A)		184		150
6.000%, 11/15/26 (A) (C)		385		84
5.375%, 04/12/27 (C)		365		85
Petroleos del Peru
4.750%, 06/19/32 (A)		935		945
Petroleos Mexicanos
8.000%, 05/03/19		250		267
6.875%, 08/04/26		50		57
6.750%, 09/21/47		1,518		1,585
6.625%, 06/15/35		410		438
6.500%, 03/13/27 (A)		930		1,017
6.500%, 06/02/41		350		360
6.375%, 02/04/21		50		54
6.375%, 01/23/45		190		191
5.625%, 01/23/46		1,019		943
5.500%, 02/04/19		30		31
5.500%, 01/21/21		2,962		3,143
5.500%, 06/27/44		160		147


Description	Face Amount (000)		Value (000)

4.875%, 01/24/22	$	620	$	646
4.625%, 09/21/23		200		206
3.500%, 07/23/20		100		101
3.500%, 01/30/23		455		445
Phillips 66
4.650%, 11/15/34		300		329
Phillips 66 Partners
3.605%, 02/15/25		25		25
Pioneer Natural Resources
3.450%, 01/15/21		100		102
Plains All American Pipeline
4.900%, 02/15/45		168		161
4.650%, 10/15/25		150		155
4.500%, 12/15/26		1,280		1,297
Sabine Pass Liquefaction
5.625%, 02/01/21		140		150
5.625%, 03/01/25		85		94
Shell International Finance
6.375%, 12/15/38		845		1,178
4.550%, 08/12/43		400		455
4.000%, 05/10/46		943		1,005
3.250%, 05/11/25		150		154
2.875%, 05/10/26		100		100
1.875%, 05/10/21		200		197
Sinopec Group Overseas Development
3.500%, 05/03/26 (A)		580		584
Spectra Energy Partners
3.500%, 03/15/25		100		100
State Oil of the Azerbaijan Republic
4.750%, 03/13/23		705		714
Statoil
3.950%, 05/15/43		200		209
3.700%, 03/01/24		100		105
2.450%, 01/17/23		125		125
Stoneway Capital
10.000%, 03/01/27 (A)		330		351
Suncor Energy
6.500%, 06/15/38		150		203
Sunoco Logistics Partners Operations
4.400%, 04/01/21		100		104
Total Capital Canada
2.750%, 07/15/23		100		101
Total Capital International
2.700%, 01/25/23		100		101
TransCanada PipeLines
4.875%, 01/15/26		100		112
4.625%, 03/01/34		300		335
Valero Energy
9.375%, 03/15/19		29		31
3.650%, 03/15/25		100		103
Williams Partners
6.300%, 04/15/40		1,185		1,458

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)⁽¹⁾		Value (000)

5.250%, 03/15/20		250	$	264
3.600%, 03/15/22		100		102
YPF
16.500%, 05/09/22 (ARS) (A)		6,000		303

				55,502

Financials — 6.2%
Aflac
3.625%, 06/15/23		100		104
AIA Group
2.250%, 03/11/19 (A)		424		422
AIG Global Funding
1.950%, 10/18/19 (A)		1,400		1,388
Allstate
4.200%, 12/15/46		200		218
American Express
2.500%, 08/01/22		100		99
American Express Credit
2.700%, 03/03/22		100		100
2.375%, 05/26/20		100		100
2.250%, 05/05/21		100		99
2.200%, 03/03/20		100		100
American Financial Group
3.500%, 08/15/26		35		35
American International Group
4.700%, 07/10/35		200		221
4.500%, 07/16/44		461		496
3.875%, 01/15/35		200		201
Ameriprise Financial
5.300%, 03/15/20		100		106
Aon
5.000%, 09/30/20		100		106
Ares Capital
3.875%, 01/15/20		60		61
Assurant
4.000%, 03/15/23		74		76
Australia & New Zealand Banking Group NY
2.625%, 05/19/22		250		249
Banco BTG Pactual
5.500%, 01/31/23 (A)		490		489
Banco de Costa Rica
5.250%, 08/12/18 (A)		540		541
Banco Nacional de Costa Rica
5.875%, 04/25/21 (A)		460		479
4.875%, 11/01/18 (A)		550		553
Banco Santander
3.125%, 02/23/23		200		199
Bank of America
5.000%, 01/21/44		250		302
4.450%, 03/03/26		130		139
4.244%, VAR ICE LIBOR USD 3 Month+1.814%, 04/24/38		100		108
4.200%, 08/26/24		165		174


Description	Face Amount (000)⁽¹⁾		Value (000)

4.183%, 11/25/27		250	$	261
4.100%, 07/24/23		100		106
4.000%, 01/22/25		5,333		5,548
3.950%, 04/21/25		200		207
3.500%, 04/19/26		50		51
3.419%, VAR ICE LIBOR USD 3 Month+1.040%, 12/20/28 (A)		112		112
3.093%, VAR ICE LIBOR USD 3 Month+1.090%, 10/01/25		100		100
3.004%, VAR ICE LIBOR USD 3 Month+0.790%, 12/20/23 (A)		2,268		2,274
2.881%, VAR ICE LIBOR USD 3 Month+1.021%, 04/24/23		200		200
2.503%, 10/21/22		100		99
2.250%, 04/21/20		250		250
2.151%, 11/09/20		100		100
Bank of Georgia JSC
11.000%, 06/01/20 (GEL) (A)		1,370		531
Bank of Montreal
2.100%, 12/12/19		65		65
2.100%, 06/15/20		100		99
Bank of New York Mellon
3.550%, 09/23/21		100		104
3.300%, 08/23/29		100		100
3.000%, 02/24/25		100		100
2.500%, 04/15/21		100		100
2.450%, 11/27/20		50		50
2.450%, 08/17/26		50		47
Bank of Nova Scotia
2.800%, 07/21/21		100		101
2.450%, 03/22/21		50		50
2.150%, 07/14/20		200		199
1.950%, 01/15/19		50		50
1.650%, 06/14/19		50		50
Barclays
4.375%, 01/12/26		200		208
2.875%, 06/08/20		250		251
Barrick North America Finance
4.400%, 05/30/21		37		39
BB&T
2.750%, 04/01/22		200		201
2.450%, 01/15/20		100		100
2.150%, 02/01/21		1,092		1,082
Berkshire Hathaway
3.125%, 03/15/26		200		202
Berkshire Hathaway Finance
4.300%, 05/15/43		200		224
1.300%, 08/15/19		35		34
BGEO Group JSC
6.000%, 07/26/23 (A)		550		571
BlackRock
5.000%, 12/10/19		100		105

The accompanying notes are an integral part of the financial statements.


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

BNP Paribas
3.500%, 11/16/27 (A)	$	1,891	$	1,882
2.375%, 05/21/20		200		200
BOC Aviation
3.875%, 04/27/26 (A)		200		201
Brighthouse Financial
3.700%, 06/22/27 (A)		50		49
Canadian Imperial Bank of Commerce
1.600%, 09/06/19		50		49
Capital One
1.650%, 02/05/18		2,642		2,642
Capital One Financial
3.750%, 07/28/26		100		100
3.300%, 10/30/24		100		99
3.200%, 02/05/25		50		50
3.050%, 03/09/22		150		151
2.450%, 04/24/19		100		100
Cboe Global Markets
1.950%, 06/28/19		30		30
Charles Schwab
4.450%, 07/22/20		100		105
Chubb INA Holdings
3.350%, 05/15/24		100		103
3.350%, 05/03/26		150		153
Citibank
2.125%, 10/20/20		2,588		2,563
Citigroup
8.125%, 07/15/39		250		400
4.450%, 09/29/27		896		949
4.400%, 06/10/25		1,040		1,098
4.281%, VAR ICE LIBOR USD 3 Month+1.839%, 04/24/48		100		108
4.125%, 07/25/28		85		88
3.887%, VAR ICE LIBOR USD 3 Month+1.563%, 01/10/28		200		207
3.750%, 06/16/24		100		104
3.668%, VAR ICE LIBOR USD 3 Month+1.390%, 07/24/28		100		101
3.520%, VAR ICE LIBOR USD 3 Month+1.151%, 10/27/28		200		201
3.500%, 05/15/23		100		102
3.300%, 04/27/25		100		101
2.900%, 12/08/21		100		101
2.876%, VAR ICE LIBOR USD 3 Month+0.950%, 07/24/23		3,295		3,278
2.750%, 04/25/22		100		100
2.650%, 10/26/20		100		100
2.500%, 07/29/19		100		100
2.400%, 02/18/20		100		100


Description	Face Amount (000)⁽¹⁾		Value (000)

Citigroup Global Markets Holdings
24.750%, 03/03/21 (GHS) (A) (D) (H)		2,060	$	539
21.603%, 02/01/18 (EGP) (A) (B) (H)		8,000		444
21.323%, 01/25/18 (EGP) (A) (B) (H)		11,800		657
19.533%, 03/08/18 (EGP) (A) (B) (H)		8,200		446
17.881%, 03/22/18 (EGP) (A) (B) (H)		15,800		856
17.332%, 04/12/18 (EGP) (A) (B) (H)		14,000		750
17.135%, 06/16/18 (NGN) (B) (H)		161,000		414
16.756%, 05/19/18 (NGN) (B) (H)		153,000		400
Citizens Bank
2.200%, 05/26/20		250		248
Citizens Financial Group
2.375%, 07/28/21		30		30
CME Group
3.000%, 03/15/25		150		152
CNA Financial
5.875%, 08/15/20		100		108
Comerica
2.125%, 05/23/19		50		50
Cooperatieve Rabobank UA
3.375%, 05/21/25		250		257
2.250%, 01/14/20		250		250
Credit Agricole
3.250%, 10/04/24(A)		1,371		1,362
Credit Suisse Group Funding Guernsey
4.875%, 05/15/45		250		288
3.125%, 12/10/20		250		253
Credit Suisse New York
3.625%, 09/09/24		250		259
Deutsche Bank
3.700%, 05/30/24		85		86
2.950%, 08/20/20		100		100
Deutsche Bank NY
2.700%, 07/13/20		150		149
Discover Bank
3.100%, 06/04/20		250		253
Discover Financial Services
4.100%, 02/09/27		40		41
Fibria Overseas Finance
5.500%, 01/17/27		25		27
Fifth Third Bancorp
2.875%, 07/27/20		250		253
First Republic Bank
4.625%, 02/13/47		200		214
FMS Wertmanagement AoeR
1.375%, 06/08/21		200		194

The accompanying notes are an integral part of the financial statements.

100


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

FS Investment
4.250%, 01/15/20	$	30	$	31
Goldman Sachs Group
6.750%, 10/01/37		200		268
5.150%, 05/22/45		350		406
4.750%, 10/21/45		662		758
4.017%, VAR ICE LIBOR USD 3 Month+1.373%, 10/31/38		150		154
3.750%, 05/22/25		100		103
3.750%, 02/25/26		250		257
3.691%, VAR ICE LIBOR USD 3 Month+1.510%, 06/05/28		165		168
3.625%, 01/22/23		1,200		1,240
3.272%, VAR ICE LIBOR USD 3 Month+1.201%, 09/29/25		75		75
2.908%, VAR ICE LIBOR USD 3 Month+1.053%, 06/05/23		100		99
2.876%, VAR ICE LIBOR USD 3 Month+0.821%, 10/31/22		100		100
2.750%, 09/15/20		75		75
2.625%, 04/25/21		100		100
2.600%, 04/23/20		100		100
2.600%, 12/27/20		100		100
2.550%, 10/23/19		200		200
2.350%, 11/15/21		45		44
2.300%, 12/13/19		85		85
Hanover Insurance Group
4.500%, 04/15/26		100		104
HSBC Finance
6.676%, 01/15/21		29		32
HSBC Holdings
6.500%, 09/15/37		250		329
4.250%, 08/18/25		200		207
4.041%, VAR ICE LIBOR USD 3 Month+1.546%, 03/13/28		1,819		1,896
4.000%, 03/30/22		100		105
3.600%, 05/25/23		200		206
3.262%, VAR ICE LIBOR USD 3 Month+1.055%, 03/13/23		2,686		2,723
3.033%, VAR ICE LIBOR USD 3 Month+0.923%, 11/22/23		2,562		2,567
2.950%, 05/25/21		200		201
Industrial & Commercial Bank of China
2.905%, 11/13/20		250		249
Intercontinental Exchange
4.000%, 10/15/23		150		159
Jefferies Group
6.875%, 04/15/21		100		112


Description	Face Amount (000)⁽¹⁾		Value (000)

JPMorgan Chase
5.600%, 07/15/41		250	$	322
4.350%, 08/15/21		250		265
4.260%, VAR ICE LIBOR USD 3 Month+1.580%, 02/22/48		709		767
3.964%, VAR ICE LIBOR USD 3 Month+1.380%, 11/15/48		1,354		1,398
3.882%, VAR ICE LIBOR USD 3 Month+1.360%, 07/24/38		725		745
3.625%, 05/13/24		100		104
3.540%, VAR ICE LIBOR USD 3 Month+1.380%, 05/01/28		200		203
3.300%, 04/01/26		100		101
3.220%, VAR ICE LIBOR USD 3 Month+1.155%, 03/01/25		160		161
3.200%, 06/15/26		100		100
3.125%, 01/23/25		150		151
2.776%, VAR ICE LIBOR USD 3 Month+0.935%, 04/25/23		75		75
2.750%, 06/23/20		300		303
2.700%, 05/18/23		100		99
2.550%, 10/29/20		180		181
2.400%, 06/07/21		50		50
JPMorgan Chase Bank
8.375%, 03/17/34 (IDR) (A) (H)		3,000,000		247
KeyBank
2.400%, 06/09/22		250		247
KeyCorp
5.100%, 03/24/21		150		162
KFW
2.500%, 11/20/24		650		649
1.875%, 06/30/20		200		199
1.875%, 11/30/20		200		198
1.250%, 09/30/19		150		148
1.000%, 07/15/19		100		99
Landwirtschaftliche Rentenbank
2.500%, 11/15/27		150		148
1.750%, 04/15/19		100		100
Lazard Group
3.750%, 02/13/25		50		51
Lima Metro Line 2 Finance
5.875%, 07/05/34 (A)		790		854
Lincoln National
3.625%, 12/12/26		100		102
Lloyds Banking Group
4.582%, 12/10/25		200		210
2.907%, VAR ICE LIBOR USD 3 Month+0.810%, 11/07/23		200		198
Loews
2.625%, 05/15/23		100		99

The accompanying notes are an integral part of the financial statements.

101


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Markel
3.500%, 11/01/27	$	50	$	50
Marsh & McLennan
2.750%, 01/30/22		30		30
2.350%, 09/10/19		75		75
MetLife
6.400%, 12/15/36		300		345
3.600%, 04/10/24		100		105
3.600%, 11/13/25		50		52
Mitsubishi UFJ Financial Group
3.850%, 03/01/26		200		207
3.287%, 07/25/27		50		50
2.665%, 07/25/22		50		49
Mizuho Financial Group
2.601%, 09/11/22		200		197
Moody's
2.750%, 07/15/19		100		101
Morgan Stanley
6.375%, 07/24/42		200		278
4.875%, 11/01/22		100		108
3.971%, VAR ICE LIBOR USD 3 Month+1.455%, 07/22/38		1,479		1,532
3.875%, 01/27/26		200		208
3.591%, VAR ICE LIBOR USD 3 Month+1.340%, 07/22/28		150		151
3.125%, 07/27/26		1,836		1,811
2.800%, 06/16/20		100		101
2.650%, 01/27/20		100		100
2.375%, 07/23/19		550		551
MUFG Americas Holdings
3.000%, 02/10/25		200		197
Nasdaq
3.850%, 06/30/26		150		154
National Australia Bank
2.625%, 01/14/21		250		251
National Rural Utilities Cooperative Finance
2.700%, 02/15/23		100		100
New York Life Global Funding
1.950%, 09/28/20 (A)		2,487		2,461
Northern Trust
3.375%, VAR ICE LIBOR USD 3 Month+1.131%, 05/08/32		63		63
Oesterreichische Kontrollbank
1.875%, 01/20/21		150		148
ORIX
2.900%, 07/18/22		30		30
PNC Bank
2.450%, 07/28/22		250		248
2.400%, 10/18/19		250		250
1.450%, 07/29/19		250		247
Pricoa Global Funding I
1.900%, 09/21/18 (A)		736		736


Description	Face Amount (000)⁽¹⁾		Value (000)

Principal Financial Group
3.400%, 05/15/25		100	$	101
Private Export Funding
2.250%, 03/15/20		200		200
Progressive
4.125%, 04/15/47		100		108
Prudential Financial
4.600%, 05/15/44		200		227
Regions Financial
3.200%, 02/08/21		50		51
2.750%, 08/14/22		50		50
Royal Bank of Canada
2.150%, 03/15/19		200		200
2.150%, 10/26/20		3,396		3,374
1.875%, 02/05/20		250		248
1.625%, 04/15/19		150		149
Royal Bank of Scotland Group
3.498%, VAR ICE LIBOR USD 3 Month+1.480%, 05/15/23		200		200
S&P Global
4.000%, 06/15/25		100		105
Santander Holdings USA
4.400%, 07/13/27 (A)		25		26
2.700%, 05/24/19		50		50
2.650%, 04/17/20		100		100
Santander UK
2.375%, 03/16/20		100		100
Santander UK Group Holdings
3.125%, 01/08/21		100		101
Standard Chartered Bank
11.000%, 08/05/24 (LKR) (A) (H)		69,000		470
11.000%, 08/05/25 (LKR) (A) (H)		79,000		538
10.750%, 03/03/21 (LKR) (A) (H)		132,000		882
8.250%, 05/19/36 (IDR) (A) (H)		13,160,000		1,082
7.610%, 05/13/30 (INR) (A) (D) (H)		24,000		375
Sumitomo Mitsui Financial Group
3.784%, 03/09/26		50		52
3.446%, 01/11/27		50		50
3.364%, 07/12/27		100		100
2.934%, 03/09/21		250		252
2.846%, 01/11/22		50		50
2.784%, 07/12/22		50		50
2.778%, 10/18/22		50		50
SunTrust Banks
2.900%, 03/03/21		50		51
2.700%, 01/27/22		150		150
2.500%, 05/01/19		50		50
Svensk Exportkredit
1.125%, 08/28/19		200		197
Svenska Handelsbanken
1.950%, 09/08/20		250		247

The accompanying notes are an integral part of the financial statements.

102


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Synchrony Financial
4.500%, 07/23/25	$	100	$	104
3.000%, 08/15/19		100		101
TC Ziraat Bankasi
5.125%, 05/03/22 (A)		200		198
TD Ameritrade Holding
3.300%, 04/01/27		30		30
Toronto-Dominion Bank
2.125%, 07/02/19		100		100
2.125%, 04/07/21		50		50
1.950%, 04/02/20 (A)		473		469
1.900%, 10/24/19		100		99
1.800%, 07/13/21		100		98
Travelers
3.900%, 11/01/20		100		104
Turkiye Garanti Bankasi
6.125%, VAR USD Swap Semi 30/360 5 Year Curr+4.220%, 05/24/27 (A)		510		509
UBS
2.450%, 12/01/20 (A)		2,170		2,163
2.350%, 03/26/20		250		250
Unum Group
4.000%, 03/15/24		50		52
US Bancorp
2.375%, 07/22/26		250		235
Voya Financial
3.125%, 07/15/24		50		50
Wells Fargo
4.900%, 11/17/45		714		808
4.750%, 12/07/46		454		507
4.650%, 11/04/44		350		382
4.125%, 08/15/23		200		211
3.584%, VAR ICE LIBOR USD 3 Month+1.310%, 05/22/28		325		331
3.550%, 09/29/25		100		103
3.000%, 01/22/21		100		102
3.000%, 02/19/25		100		99
3.000%, 04/22/26		100		98
3.000%, 10/23/26		250		245
2.625%, 07/22/22		1,351		1,344
2.550%, 12/07/20		85		85
Wells Fargo Bank
2.150%, 12/06/19		250		250
Westpac Banking
2.700%, 08/19/26		100		96
2.600%, 11/23/20		150		151
2.250%, 01/17/19		100		100
2.000%, 08/19/21		50		49
1.600%, 08/19/19		100		99
Willis North America
3.600%, 05/15/24		50		51
XLIT
5.750%, 10/01/21		74		81

				98,746


Description	Face Amount (000)		Value (000)

Health Care — 2.0%
Abbott Laboratories
4.900%, 11/30/46	$	200	$	229
3.400%, 11/30/23		50		51
2.900%, 11/30/21		2,837		2,870
2.800%, 09/15/20		150		151
2.350%, 11/22/19		70		70
AbbVie
4.700%, 05/14/45		200		224
4.500%, 05/14/35		200		220
4.300%, 05/14/36		276		296
3.200%, 11/06/22		100		101
2.900%, 11/06/22		6,434		6,453
2.850%, 05/14/23		50		50
2.500%, 05/14/20		1,757		1,762
2.300%, 05/14/21		50		50
Aetna
2.800%, 06/15/23		25		25
2.750%, 11/15/22		150		148
Agilent Technologies
3.050%, 09/22/26		65		63
Allergan Funding SCS
4.550%, 03/15/35		300		318
3.800%, 03/15/25		190		193
AmerisourceBergen
3.400%, 05/15/24		100		102
Amgen
4.563%, 06/15/48		300		335
2.200%, 05/11/20		1,757		1,747
2.125%, 05/01/20		200		199
1.850%, 08/19/21		200		195
Anthem
3.650%, 12/01/27		65		66
3.350%, 12/01/24		150		152
3.300%, 01/15/23		200		203
AstraZeneca
2.375%, 11/16/20		150		150
2.375%, 06/12/22		100		99
1.950%, 09/18/19		100		99
Baxalta
3.600%, 06/23/22		100		102
Baxter International
2.600%, 08/15/26		100		95
Becton Dickinson
4.685%, 12/15/44		200		219
4.669%, 06/06/47		131		142
3.700%, 06/06/27		50		50
3.000%, 05/15/26 (G)		50		49
2.404%, 06/05/20		20		20
Biogen
3.625%, 09/15/22		100		104
Boston Scientific
3.375%, 05/15/22		100		101
2.850%, 05/15/20		100		101
Bristol-Myers Squibb
2.000%, 08/01/22		100		98

The accompanying notes are an integral part of the financial statements.

103


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Cardinal Health
3.200%, 03/15/23	$	100	$	100
3.079%, 06/15/24		150		148
Celgene
5.000%, 08/15/45		250		284
3.875%, 08/15/25		100		103
Cigna
4.000%, 02/15/22		100		105
3.875%, 10/15/47		100		100
Danaher
3.350%, 09/15/25		30		31
Eli Lilly
3.100%, 05/15/27		49		50
2.350%, 05/15/22		100		99
Express Scripts Holding
4.800%, 07/15/46		200		213
4.750%, 11/15/21		100		106
Gilead Sciences
4.750%, 03/01/46		1,184		1,370
4.600%, 09/01/35		400		451
4.000%, 09/01/36		206		218
2.550%, 09/01/20		150		151
2.500%, 09/01/23		35		34
2.350%, 02/01/20		20		20
1.950%, 03/01/22		15		15
GlaxoSmithKline Capital
2.850%, 05/08/22		100		102
2.800%, 03/18/23		125		126
Humana
4.950%, 10/01/44		200		230
Johnson & Johnson
3.625%, 03/03/37		150		158
3.400%, 01/15/38		1,831		1,875
2.900%, 01/15/28		150		150
2.625%, 01/15/25		100		100
2.450%, 12/05/21		100		101
2.450%, 03/01/26		200		195
Kaiser Foundation Hospitals
3.150%, 05/01/27		25		25
Laboratory Corp of America Holdings
3.250%, 09/01/24		100		100
2.625%, 02/01/20		100		100
McKesson
4.750%, 03/01/21		100		106
2.284%, 03/15/19		100		100
Medtronic
4.625%, 03/15/45		200		233
4.375%, 03/15/35		200		226
2.750%, 04/01/23		100		100
2.500%, 03/15/20		150		151
Merck
2.750%, 02/10/25		200		199
1.850%, 02/10/20		150		149


Description	Face Amount (000)		Value (000)

Mylan
5.250%, 06/15/46	$	200	$	219
3.750%, 12/15/20		100		102
New York and Presbyterian Hospital
4.763%, 08/01/16		669		712
Novartis Capital
3.400%, 05/06/24		100		104
3.000%, 11/20/25		50		50
2.400%, 05/17/22		50		50
1.800%, 02/14/20		25		25
Novartis Securities Investment
5.125%, 02/10/19		100		103
Partners Healthcare System
3.765%, 07/01/48		466		463
Pfizer
5.200%, 08/12/20		100		108
4.000%, 12/15/36		250		274
3.000%, 06/15/23		100		102
Quest Diagnostics
2.500%, 03/30/20		150		150
Shire Acquisitions Investments Ireland DAC
3.200%, 09/23/26		60		59
2.875%, 09/23/23		50		49
1.900%, 09/23/19		100		99
Stryker
4.625%, 03/15/46		100		114
3.500%, 03/15/26		25		26
3.375%, 11/01/25		50		51
2.000%, 03/08/19		30		30
Teva Pharmaceutical Finance Netherlands III BV
4.100%, 10/01/46		200		152
2.800%, 07/21/23		215		187
1.700%, 07/19/19		20		20
Thermo Fisher Scientific
3.600%, 08/15/21		100		104
3.200%, 08/15/27		100		99
2.950%, 09/19/26		30		29
UnitedHealth Group
4.625%, 07/15/35		200		233
4.250%, 04/15/47		100		110
3.750%, 07/15/25		50		53
2.950%, 10/15/27		150		150
2.875%, 03/15/22		100		101
2.300%, 12/15/19		50		50
1.950%, 10/15/20		1,252		1,240
Zimmer Biomet Holdings
3.550%, 04/01/25		150		150
Zoetis
3.250%, 02/01/23		50		51
3.000%, 09/12/27		50		49

				31,494

The accompanying notes are an integral part of the financial statements.

104


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Industrials — 2.8%
3M
1.625%, 06/15/19	$	100	$	100
AerCap Ireland Capital
4.625%, 10/30/20		225		236
4.500%, 05/15/21		4,617		4,849
3.750%, 05/15/19		175		177
Air Lease
3.375%, 01/15/19		150		151
2.125%, 01/15/20		50		50
Allegion US Holding
3.550%, 10/01/27		50		49
American Airlines, Pass-Through Trust, Ser 2013-2, Cl A
4.950%, 01/15/23		146		155
Boeing
2.350%, 10/30/21		150		151
2.125%, 03/01/22		50		49
Burlington Northern Santa Fe
4.900%, 04/01/44		200		240
3.750%, 04/01/24		200		212
3.050%, 03/15/22		100		102
Canadian National Railway
5.550%, 03/01/19		100		104
Canadian Pacific Railway
2.900%, 02/01/25		100		99
Caterpillar
5.200%, 05/27/41		100		126
3.900%, 05/27/21		50		53
3.400%, 05/15/24		100		104
Caterpillar Financial Services
2.550%, 11/29/22		2,324		2,317
1.350%, 05/18/19		200		198
Cintas No. 2
3.700%, 04/01/27		200		208
CNH Industrial Capital
4.875%, 04/01/21		10		11
4.375%, 11/06/20		15		16
4.375%, 04/05/22		10		10
3.875%, 10/15/21		10		10
3.375%, 07/15/19		10		10
CSX
3.800%, 11/01/46		200		199
3.250%, 06/01/27		50		50
Delta Air Lines
2.600%, 12/04/20		45		45
DP World
6.850%, 07/02/37 (A)		386		475
Eaton
3.103%, 09/15/27		100		98
Embraer Netherlands Finance BV
5.400%, 02/01/27		65		70


Description	Face Amount (000)		Value (000)

Emerson Electric
2.625%, 02/15/23	$	100	$	100
Eskom Holdings
6.750%, 08/06/23 (A)		200		203
5.750%, 01/26/21 (A)		410		406
FedEx
4.750%, 11/15/45		100		112
3.200%, 02/01/25		200		203
Fortive
3.150%, 06/15/26		150		149
GE Capital International Funding Unlimited
4.418%, 11/15/35		848		918
2.342%, 11/15/20		250		249
General Dynamics
2.250%, 11/15/22		100		99
General Electric
6.875%, 01/10/39		500		721
3.450%, 05/15/24		100		103
Georgian Oil and Gas JSC
6.750%, 04/26/21 (A)		200		213
Georgian Railway
7.750%, 07/11/22 (A)		1,100		1,229
Honeywell International
4.250%, 03/01/21		125		132
2.500%, 11/01/26		150		145
Huntington Ingalls Industries
3.483%, 12/01/27 (A)		1,983		1,978
Illinois Tool Works
1.950%, 03/01/19		100		100
Ingersoll-Rand Global Holding
4.250%, 06/15/23		100		107
John Deere Capital
3.350%, 06/12/24		100		103
2.800%, 03/04/21		100		101
2.800%, 03/06/23		50		50
2.800%, 09/08/27		50		49
2.650%, 06/24/24		100		99
Johnson Controls International
4.500%, 02/15/47		150		165
3.625%, 07/02/24 (E)		43		44
Kazakhstan Temir Zholy National JSC
4.850%, 11/17/27 (A)		810		844
L3 Technologies
5.200%, 10/15/19		125		131
Latam Airlines, Pass-Through Trust, Ser 2015-1, Cl A
4.200%, 11/15/27		547		551
Lima Metro Line 2 Finance
5.875%, 07/05/34		200		216
Lockheed Martin
4.700%, 05/15/46		150		175
2.900%, 03/01/25		100		100
2.500%, 11/23/20		5,266		5,299

The accompanying notes are an integral part of the financial statements.

105


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Masco
4.500%, 05/15/47	$	100	$	102
4.375%, 04/01/26		40		42
3.500%, 04/01/21		50		51
Mexico City Airport Trust
5.500%, 07/31/47 (A)		895		884
Norfolk Southern
3.250%, 12/01/21		100		103
3.150%, 06/01/27		25		25
2.900%, 06/15/26		35		34
Northrop Grumman
4.030%, 10/15/47		1,369		1,431
3.500%, 03/15/21		100		103
3.250%, 08/01/23		50		51
2.550%, 10/15/22		3,883		3,855
Owens Corning
4.200%, 12/01/24		100		105
PACCAR Financial
1.950%, 02/27/20		60		59
1.300%, 05/10/19		20		20
Parker-Hannifin
3.300%, 11/21/24		150		153
Pitney Bowes
4.125%, 05/15/22		50		46
Republic Services
2.900%, 07/01/26		150		147
Rockwell Collins
3.200%, 03/15/24		150		151
Ryder System
2.800%, 03/01/22		30		30
2.550%, 06/01/19		95		95
Southwest Airlines
2.750%, 11/06/19		50		50
Stanley Black & Decker
2.900%, 11/01/22		100		101
Textron
3.650%, 03/15/27		100		102
TTX
2.250%, 02/01/19 (A)		922		920
Union Pacific
3.799%, 10/01/51		200		204
3.646%, 02/15/24		100		105
3.600%, 09/15/37		2,466		2,555
United Airlines, Pass-Through Trust, Ser 2014-2, Cl A
3.750%, 09/03/26		89		92
United Parcel Service
5.125%, 04/01/19		100		103
3.750%, 11/15/47		1,378		1,423
3.125%, 01/15/21		45		46
3.050%, 11/15/27		100		100
2.500%, 04/01/23		4,180		4,157
United Technologies
3.750%, 11/01/46		150		150
3.100%, 06/01/22		100		102


Description	Face Amount (000)		Value (000)

2.650%, 11/01/26	$	130	$	125
2.300%, 05/04/22		100		99
1.950%, 11/01/21		50		49
1.500%, 11/01/19		50		49
Verisk Analytics
4.000%, 06/15/25		50		52
Waste Management
3.500%, 05/15/24		100		104

				43,993

Information Technology — 1.4%
Activision Blizzard
3.400%, 09/15/26		50		51
Alibaba Group Holding
4.200%, 12/06/47		1,404		1,462
2.800%, 06/06/23		250		249
Alphabet
3.375%, 02/25/24		100		104
Apple
4.650%, 02/23/46		1,373		1,608
4.500%, 02/23/36		350		401
3.850%, 08/04/46		1,529		1,593
3.750%, 09/12/47		150		154
3.450%, 05/06/24		100		104
3.000%, 06/20/27		25		25
3.000%, 11/13/27		100		99
2.850%, 05/06/21		200		203
2.500%, 02/09/22		50		50
2.400%, 01/13/23		2,605		2,583
2.300%, 05/11/22		100		99
2.250%, 02/23/21		50		50
2.150%, 02/09/22		250		247
1.700%, 02/22/19		20		20
1.550%, 08/04/21		50		49
Applied Materials
3.300%, 04/01/27		25		25
2.625%, 10/01/20		50		51
Arrow Electronics
3.500%, 04/01/22		100		101
Automatic Data Processing
2.250%, 09/15/20		50		50
Broadcom
3.875%, 01/15/27 (A)		100		98
3.625%, 01/15/24 (A)		100		100
3.000%, 01/15/22 (A)		100		99
2.375%, 01/15/20 (A)		100		99
Cisco Systems
4.950%, 02/15/19		100		103
4.450%, 01/15/20		200		209
3.625%, 03/04/24		100		106
3.500%, 06/15/25		50		52
2.950%, 02/28/26		50		50
2.500%, 09/20/26		100		97
1.850%, 09/20/21		100		98
Dell International
6.020%, 06/15/26 (A)		260		287

The accompanying notes are an integral part of the financial statements.

106


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

5.450%, 06/15/23 (A)	$	85	$	92
4.420%, 06/15/21 (A)		100		104
eBay
2.750%, 01/30/23		250		248
Fidelity National Information Services
5.000%, 10/15/25		28		31
3.625%, 10/15/20		200		205
Fiserv
2.700%, 06/01/20		100		101
Harris
5.054%, 04/27/45		100		118
2.700%, 04/27/20		35		35
Hewlett Packard Enterprise
4.900%, 10/15/25		100		106
HP
4.650%, 12/09/21		100		106
IBM Credit
1.800%, 01/20/21		100		98
Intel
4.100%, 05/19/46		250		276
3.700%, 07/29/25		25		26
3.150%, 05/11/27		100		102
2.875%, 05/11/24		150		151
2.450%, 07/29/20		60		61
International Business Machines
4.000%, 06/20/42		150		159
3.450%, 02/19/26		50		51
3.375%, 08/01/23		200		207
2.250%, 02/19/21		50		50
Juniper Networks
4.500%, 03/15/24		50		52
Keysight Technologies
3.300%, 10/30/19		100		101
Lam Research
2.800%, 06/15/21		50		50
Mastercard
2.950%, 11/21/26		50		50
Microsoft
4.250%, 02/06/47		500		572
4.100%, 02/06/37		200		223
3.750%, 02/12/45		1,093		1,151
3.450%, 08/08/36		300		309
3.300%, 02/06/27		60		62
3.125%, 11/03/25		100		102
2.875%, 02/06/24		35		36
2.650%, 11/03/22		150		151
2.400%, 08/08/26		100		96
1.850%, 02/06/20		100		100
Motorola Solutions
3.500%, 09/01/21		100		102
NetApp
3.375%, 06/15/21		50		51
Oracle
5.375%, 07/15/40		648		819


Description	Face Amount (000)		Value (000)

4.300%, 07/08/34	$	500	$	556
3.800%, 11/15/37		2,842		2,981
2.950%, 05/15/25		100		100
2.500%, 05/15/22		150		150
2.400%, 09/15/23		50		49
2.375%, 01/15/19		150		151
1.900%, 09/15/21		90		89
QUALCOMM
4.300%, 05/20/47		150		151
3.250%, 05/20/27		50		49
3.000%, 05/20/22		100		100
2.600%, 01/30/23		200		195
Seagate HDD Cayman
4.750%, 01/01/25		100		98
Texas Instruments
2.750%, 03/12/21		75		76
Total System Services
4.800%, 04/01/26		100		108
Tyco Electronics Group
3.125%, 08/15/27		25		25
Visa
4.300%, 12/14/45		150		171
3.150%, 12/14/25		200		204
2.800%, 12/14/22		100		102
VMware
2.950%, 08/21/22		100		100
Xerox
3.625%, 03/15/23		100		98
Xilinx
2.125%, 03/15/19		50		50

				22,733

Materials — 1.1%
Agrium
6.125%, 01/15/41		150		191
Airgas
3.650%, 07/15/24		100		104
Anglo American Capital
4.750%, 04/10/27 (A)		1,050		1,099
Barrick
5.250%, 04/01/42		150		173
BHP Billiton Finance USA
5.000%, 09/30/43		100		123
Braskem Finance
6.450%, 02/03/24		660		739
Celanese US Holdings
5.875%, 06/15/21		20		22
4.625%, 11/15/22		20		21
Celulosa Arauco y Constitucion
3.875%, 11/02/27 (A)		358		356
Dow Chemical
8.550%, 05/15/19		1,600		1,733
Ecolab
3.250%, 01/14/23		100		102

The accompanying notes are an integral part of the financial statements.

107


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

EI du Pont de Nemours
4.625%, 01/15/20	$	100	$	105
4.150%, 02/15/43		150		154
2.200%, 05/01/20		17		17
Goldcorp
3.700%, 03/15/23		50		51
International Paper
5.150%, 05/15/46		150		174
LyondellBasell Industries
5.000%, 04/15/19		200		205
Martin Marietta Materials
4.250%, 12/15/47		100		99
Mexichem
5.875%, 09/17/44 (A)		690		714
5.500%, 01/15/48 (A)		625		609
Monsanto
4.700%, 07/15/64		200		209
Mosaic
4.050%, 11/15/27		100		100
Nacional del Cobre de Chile
3.625%, 08/01/27 (A)		350		350
Newmont Mining
3.500%, 03/15/22		100		102
Nexa Resources
5.375%, 05/04/27 (A)		650		689
Packaging Corp of America
3.650%, 09/15/24		100		103
3.400%, 12/15/27		35		35
2.450%, 12/15/20		35		35
Potash Corp of Saskatchewan
3.625%, 03/15/24		100		103
PPG Industries
2.300%, 11/15/19		100		100
Rio Tinto Finance USA
3.750%, 06/15/25		200		210
Sherwin-Williams
3.450%, 08/01/25		100		101
2.750%, 06/01/22		2,130		2,122
Southern Copper
5.875%, 04/23/45		150		181
3.875%, 04/23/25		30		31
Vale
5.625%, 09/11/42		100		110
Vale Overseas
8.250%, 01/17/34		390		515
6.875%, 11/21/36		799		979
5.875%, 06/10/21		1,050		1,143
4.375%, 01/11/22		2,282		2,360
Vulcan Materials
4.500%, 06/15/47		1,070		1,092
Westlake Chemical
3.600%, 08/15/26		100		101


Description	Face Amount (000)		Value (000)

WestRock RKT
4.450%, 03/01/19	$	100	$	102

				17,664

Real Estate — 0.7%
Alexandria Real Estate Equities
3.450%, 04/30/25		25		25
2.750%, 01/15/20		50		50
American Tower
4.000%, 06/01/25		200		207
2.250%, 01/15/22		50		49
AvalonBay Communities
3.500%, 11/15/24		100		103
Boston Properties
3.850%, 02/01/23		100		104
3.650%, 02/01/26		150		153
Brixmor Operating Partnership
3.875%, 08/15/22		30		31
3.250%, 09/15/23		100		98
CBL & Associates
5.250%, 12/01/23		150		142
Crown Castle International
5.250%, 01/15/23		100		109
3.700%, 06/15/26		35		35
2.250%, 09/01/21		55		54
DDR
3.500%, 01/15/21		100		101
Digital Realty Trust
3.625%, 10/01/22		100		103
Duke Realty
3.750%, 12/01/24		100		103
EPR Properties
4.750%, 12/15/26		50		51
ERP Operating
4.625%, 12/15/21		120		128
Essex Portfolio
3.375%, 04/15/26		100		99
HCP
5.375%, 02/01/21		200		215
Healthcare Trust of America Holdings
3.750%, 07/01/27		100		100
Hospitality Properties Trust
5.250%, 02/15/26		100		107
5.000%, 08/15/22		100		107
Host Hotels & Resorts
3.750%, 10/15/23		100		102
Kilroy Realty
3.450%, 12/15/24		50		50
Kimco Realty
3.300%, 02/01/25		80		79
3.200%, 05/01/21		50		51
Liberty Property
4.125%, 06/15/22		100		105

The accompanying notes are an integral part of the financial statements.

108


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Mid-America Apartments
3.600%, 06/01/27	$	25	$	25
National Retail Properties
4.000%, 11/15/25		35		36
3.600%, 12/15/26		100		99
Omega Healthcare Investors
4.375%, 08/01/23		50		51
Realty Income
3.250%, 10/15/22		100		102
Regency Centers
3.600%, 02/01/27		30		30
Select Income
4.250%, 05/15/24		50		50
Senior Housing Properties Trust
3.250%, 05/01/19		150		151
Simon Property Group
3.375%, 10/01/24		125		128
3.375%, 12/01/27		1,941		1,950
3.300%, 01/15/26		100		100
2.750%, 06/01/23		4,119		4,106
2.200%, 02/01/19		150		150
UDR
4.000%, 10/01/25		50		52
Ventas Realty
4.250%, 03/01/22		100		105
3.750%, 05/01/24		50		51
2.700%, 04/01/20		100		101
VEREIT Operating Partnership
4.875%, 06/01/26		20		21
4.600%, 02/06/24		15		16
4.125%, 06/01/21		10		10
3.000%, 02/06/19		25		25
Welltower
5.250%, 01/15/22		100		109
Weyerhaeuser
4.625%, 09/15/23		100		107
WP Carey
4.600%, 04/01/24		50		52

				10,288

Telecommunication Services — 1.0%
America Movil
6.125%, 03/30/40		250		318
AT&T
5.250%, 03/01/37		2,170		2,295
5.150%, 03/15/42		191		198
4.900%, 08/14/37		1,280		1,296
4.350%, 06/15/45		600		553
4.300%, 02/15/30 (A)		333		332
4.125%, 02/17/26		200		205
4.100%, 02/15/28 (A)		253		254
3.900%, 08/14/27		100		101
3.800%, 03/01/24		200		205
3.400%, 05/15/25		2,552		2,509


Description	Face Amount (000)		Value (000)

Cox Communications
4.600%, 08/15/47 (A)	$	552	$	557
Deutsche Telekom International Finance BV
8.750%, 06/15/30		100		148
2.225%, 01/17/20 (A)		1,009		1,004
Digicel
6.000%, 04/15/21 (A)		280		276
Orange
5.375%, 07/08/19		200		209
4.125%, 09/14/21		100		106
RELX Capital
3.125%, 10/15/22		100		101
Rogers Communications
2.900%, 11/15/26		50		48
Telefonica Emisiones SAU
5.462%, 02/16/21		110		119
5.213%, 03/08/47		150		170
Thomson Reuters
3.350%, 05/15/26		100		100
Verizon Communications
5.250%, 03/16/37		441		485
5.150%, 09/15/23		1,004		1,117
4.862%, 08/21/46		750		781
4.812%, 03/15/39		100		105
4.400%, 11/01/34		400		408
4.272%, 01/15/36		1,428		1,420
3.376%, 02/15/25 (A)		150		150
3.125%, 03/16/22		150		152
2.946%, 03/15/22		102		103
2.625%, 08/15/26		135		127
Vodafone Group
4.375%, 02/19/43		300		309
2.500%, 09/26/22		100		99

				16,360

Utilities — 2.9%
Abengoa Transmision
6.875%, 04/30/43 (A)		249		276
AEP Transmission
3.100%, 12/01/26		150		150
Ameren Illinois
3.700%, 12/01/47		851		871
American Electric Power
3.200%, 11/13/27		1,235		1,226
2.150%, 11/13/20		2,213		2,203
American Water Capital
3.400%, 03/01/25		100		103
Appalachian Power
4.450%, 06/01/45		1,376		1,527
Arizona Public Service
4.500%, 04/01/42		200		226
3.150%, 05/15/25		50		50
Atmos Energy
3.000%, 06/15/27		65		65

The accompanying notes are an integral part of the financial statements.

109


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Berkshire Hathaway Energy
3.750%, 11/15/23	$	100	$	104
Celeo Redes Operacion Chile
5.200%, 06/22/47 (A)		690		699
CenterPoint Energy
2.500%, 09/01/22		50		49
CenterPoint Energy Houston Electric
2.250%, 08/01/22		100		99
Cleco Corporate Holdings
3.743%, 05/01/26		100		100
CMS Energy
6.250%, 02/01/20		100		108
3.000%, 05/15/26		40		39
Comision Federal de Electricidad
4.750%, 02/23/27 (A)		400		418
Consolidated Edison of New York
4.450%, 03/15/44		150		171
3.875%, 06/15/47		100		104
Delmarva Power & Light
4.150%, 05/15/45		423		463
Dominion Energy
4.050%, 09/15/42		150		154
2.962%, 07/01/19		1,600		1,613
2.750%, 01/15/22		100		100
2.579%, 07/01/20		45		45
Dominion Energy Gas Holdings
2.500%, 12/15/19		1,300		1,302
DTE Electric
3.750%, 08/15/47		100		104
DTE Energy
2.400%, 12/01/19		100		100
Duke Energy
3.750%, 09/01/46		350		346
Duke Energy Carolinas
5.300%, 02/15/40		300		377
3.700%, 12/01/47		100		103
2.950%, 12/01/26		50		50
Duke Energy Florida
2.100%, 12/15/19		996		995
Edison International
2.400%, 09/15/22		80		78
Enel Generacion Chile
4.250%, 04/15/24		50		52
Energuate Trust
5.875%, 05/03/27 (A)		200		207
Entergy
4.000%, 07/15/22		50		52
Entergy Arkansas
3.500%, 04/01/26		100		103
Eversource Energy
2.750%, 03/15/22		2,273		2,277


Description	Face Amount (000)		Value (000)

Exelon
5.625%, 06/15/35	$	160	$	197
3.400%, 04/15/26		100		100
Exelon Generation
5.600%, 06/15/42		600		658
FirstEnergy
3.900%, 07/15/27		30		31
FirstEnergy Transmission
5.450%, 07/15/44 (A)		772		917
Florida Power & Light
3.700%, 12/01/47		100		104
Fortis
3.055%, 10/04/26		2,761		2,666
2.100%, 10/04/21		150		146
Georgia Power
4.300%, 03/15/42		300		319
2.000%, 09/08/20		115		114
ITC Holdings
5.300%, 07/01/43		351		423
3.650%, 06/15/24		25		26
3.350%, 11/15/27 (A)		1,384		1,385
2.700%, 11/15/22 (A)		1,669		1,666
Jersey Central Power & Light
7.350%, 02/01/19		824		865
4.700%, 04/01/24 (A)		2,341		2,535
Kansas City Power & Light
3.650%, 08/15/25		100		102
Listrindo Capital BV
4.950%, 09/14/26 (A)		450		455
Metropolitan Edison
7.700%, 01/15/19		100		105
MidAmerican Energy
3.950%, 08/01/47		250		267
2.400%, 03/15/19		138		139
Minejesa Capital BV
5.625%, 08/10/37 (A)		670		714
National Fuel Gas
3.950%, 09/15/27		50		50
New England Power
3.800%, 12/05/47 (A)		714		730
NextEra Energy Capital Holdings
3.550%, 05/01/27		100		102
2.700%, 09/15/19		1,439		1,448
NiSource Finance
4.375%, 05/15/47		100		109
2.650%, 11/17/22		20		20
Northern States Power
2.600%, 05/15/23		100		100
2.200%, 08/15/20		50		50
NSTAR Electric
2.375%, 10/15/22		100		98
Oncor Electric Delivery
7.000%, 09/01/22		100		118

The accompanying notes are an integral part of the financial statements.

110


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

ONE Gas
2.070%, 02/01/19	$	74	$	74
Pacific Gas & Electric
6.050%, 03/01/34		400		504
2.950%, 03/01/26		50		49
Pinnacle West Capital
2.250%, 11/30/20		1,009		1,004
PPL Capital Funding
4.000%, 09/15/47		100		103
3.500%, 12/01/22		150		154
Progress Energy
7.750%, 03/01/31		1,808		2,531
7.050%, 03/15/19		1,225		1,293
PSEG Power
3.000%, 06/15/21		50		50
Public Service Enterprise Group
2.650%, 11/15/22		150		149
Puget Energy
6.500%, 12/15/20		100		111
Sempra Energy
9.800%, 02/15/19		1,135		1,229
3.750%, 11/15/25		100		103
3.550%, 06/15/24		100		103
Southern
2.350%, 07/01/21		1,789		1,778
1.850%, 07/01/19		100		100
Southern California Edison
3.500%, 10/01/23		150		155
Southern Gas Capital
3.250%, 06/15/26		30		30
Southwestern Electric Power
2.750%, 10/01/26		50		48
State Grid Overseas Investment 2013
3.125%, 05/22/23 (A)		1,115		1,114
Union Electric
3.500%, 04/15/24		150		156
Virginia Electric & Power
3.500%, 03/15/27		100		103
3.100%, 05/15/25		100		101
2.750%, 03/15/23		100		100
WEC Energy Group
1.650%, 06/15/18		1,109		1,108
Wisconsin Power & Light
3.050%, 10/15/27		100		100
Xcel Energy
3.350%, 12/01/26		100		101

				46,319

Total Corporate Obligations (Cost $394,235) (000)				399,391


Description	Face Amount (000)		Value (000)

U.S. Treasury Obligations — 24.6%
U.S. Treasury Bonds
5.375%, 02/15/31	$	1,000	$	1,329
5.000%, 05/15/37		2,240		3,071
4.750%, 02/15/37		10,315		13,742
4.625%, 02/15/40		500		665
4.375%, 02/15/38		1,200		1,534
3.875%, 08/15/40		500		603
3.750%, 11/15/43		6,500		7,745
3.500%, 02/15/39		3,400		3,883
3.375%, 05/15/44		6,000		6,733
3.000%, 02/15/47-11/15/45		15,390		16,181
2.875%, 11/15/46		6,344		6,508
2.750%, 08/15/47-11/15/47		7,459		7,469
2.500%, 05/15/46		834		793
2.250%, 08/15/46		3,950		3,563
U.S. Treasury Notes
3.625%, 02/15/20		1,750		1,813
3.500%, 05/15/20		750		777
3.375%, 11/15/19		1,000		1,027
3.125%, 05/15/19		1,500		1,526
2.750%, 02/15/24		1,000		1,026
2.625%, 11/15/20-08/15/20		2,750		2,799
2.500%, 05/15/24-08/15/23		3,100		3,138
2.375%, 08/15/24-05/15/27		4,400		4,419
2.250%, 11/15/27-03/31/21		21,244		21,055
2.125%, 11/30/24-03/31/24		23,967		23,692
2.000%, 12/31/21-09/30/20		43,144		42,744
1.875%, 09/30/22-02/28/22		38,738		38,293
1.750%, 06/30/22-09/30/22		19,430		19,175
1.625%, 05/15/26-11/15/22		36,788		35,638
1.500%, 10/31/19-03/31/23		36,148		35,289
1.375%, 09/30/20-09/30/23		39,371		38,730
1.250%, 10/31/21-04/30/19		27,796		27,155
1.125%, 09/30/21-08/31/21		13,970		13,583
1.000%, 09/30/19		800		788
0.875%, 04/15/19		1,000		988
0.750%, 07/15/19-02/15/19		2,250		2,214

Total U.S. Treasury Obligations (Cost $391,154) (000)				389,688

MORTGAGE-BACKED SECURITIES — 24.5%
Agency Mortgage-Backed Obligations — 22.8%
FHLMC
5.000%, 02/01/39		817		882
4.500%, 08/01/43-12/01/45		2,510		2,686
4.000%, 11/01/47-07/01/24		7,905		8,269
3.500%, 03/01/47-04/01/47		8,522		8,771
3.000%, 01/01/47-11/01/42		21,642		21,708
2.500%, 02/01/32-01/01/32		2,512		2,509
FHLMC TBA
4.000%, 01/15/41		6,345		6,635
3.500%, 01/01/41		17,935		18,418
3.000%, 01/15/43-01/01/27		3,425		3,447
2.500%, 01/15/28		750		749
FHLMC, Ser 2011-3830, Cl DZ
4.000%, 12/15/30		991		1,047

The accompanying notes are an integral part of the financial statements.

111


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

FHLMC Multifamily Structured Pass-Through Certificates, Ser K029, Cl A2
3.320%, 02/25/23 (D)	$	1,000	$	1,040
FHLMC Multifamily Structured Pass-Through Certificates, Ser K055, Cl A2
2.673%, 03/25/26		400		397
FHLMC Multifamily Structured Pass-Through Certificates, Ser K068, Cl A2
3.244%, 08/25/27		553		569
FHLMC Multifamily Structured Pass-Through Certificates, Ser K069, Cl A2
3.187%, 09/25/27 (D)		1,356		1,390
FHLMC Multifamily Structured Pass-Through Certificates, Ser K070, Cl A2
3.303%, 11/25/27 (D)		338		349
FHLMC Multifamily Structured Pass-Through Certificates, Ser K726, Cl A2
2.905%, 07/25/49		1,545		1,571
FHLMC Multifamily Structured Pass-Through Certificates, Ser K728, Cl A2
3.064%, 08/25/24 (D)		1,535		1,573
FNMA
5.500%, 09/01/40-11/01/34		2,152		2,380
5.000%, 11/01/44-02/01/38		3,041		3,293
4.500%, 02/01/46-01/01/30		5,010		5,360
4.000%, 03/01/47-09/01/43		28,485		29,910
3.500%, 07/01/47-10/01/46		41,992		43,281
3.000%, 01/01/47-10/01/46		19,927		20,043
2.500%, 11/25/45-10/01/32		5,491		5,458
FNMA TBA
4.500%, 01/01/38		10,145		10,794
4.000%, 11/15/34		21,165		22,133
3.500%, 01/01/41		29,490		30,295
3.000%, 01/15/43		11,605		11,605
2.500%, 01/01/26		8,160		8,147
FNMA, Ser 2013-101, Cl A
3.000%, 09/25/30		436		442
FNMA, Ser 2015-M11, Cl A2
2.835%, 04/25/25 (D)		850		854
FNMA, Ser 2017-41, Cl MD
4.000%, 05/25/53		1,503		1,572
FNMA, Ser 2017-71, Cl AB
3.000%, 08/25/44		2,178		2,193
FNMA, Ser M3, Cl A3
4.332%, 03/25/20 (D)		591		609
GNMA
5.000%, 11/20/46-09/20/46		1,196		1,285
4.500%, 04/20/47-01/20/47		2,184		2,299
4.000%, 02/20/47-05/20/47		6,911		7,215


Description	Face Amount (000)		Value (000)

3.500%, 02/20/47-07/20/47	$	13,646	$	14,121
3.000%, 02/20/47-08/20/47		10,416		10,521
2.500%, 12/20/46		468		457
GNMA TBA
4.500%, 01/15/40		3,540		3,713
4.000%, 01/01/40		10,395		10,836
3.500%, 01/15/41		11,605		11,997
3.000%, 01/15/43		17,330		17,487

				360,310

Non-Agency Mortgage-Backed Obligations — 1.7%
Alternative Loan Trust, Ser 2003-22CB, Cl 3A1
6.000%, 12/25/33		784		786
BAMLL Commercial Mortgage Securities Trust, Ser 2012-PARK, Cl A
2.959%, 12/10/30 (A)		1,171		1,184
BANK, Ser 2017-BNK8, Cl A4
3.488%, 11/15/50		90		92
BANK, Ser 2017-BNK8, Cl B
3.931%, 11/15/50		50		51
BANK, Ser 2017-BNK9, Cl A4
3.538%, 11/15/54		324		334
CD Mortgage Trust, Ser 2017-CD6, Cl A5
3.456%, 11/13/50		558		574
Citigroup Commercial Mortgage Trust, Ser 2013-GC17, Cl A4
4.131%, 11/10/46		388		414
Citigroup Commercial Mortgage Trust, Ser 2016-P6, Cl A5
3.720%, 11/10/26		140		147
Citigroup Commercial Mortgage Trust, Ser 2017-P7, Cl A4
3.712%, 04/14/50		500		522
COMM Mortgage Trust, Ser 2013-CCRE9, Cl A4
4.238%, 07/10/45 (D)		845		905
COMM Mortgage Trust, Ser 2013-CR11, Cl A3
3.983%, 08/10/50		1,064		1,125
COMM Mortgage Trust, Ser 2013-CR7, Cl A4
3.213%, 03/10/46		451		460
COMM Mortgage Trust, Ser 2013-CR8, Cl A5
3.612%, 06/10/46 (D)		90		93
COMM Mortgage Trust, Ser 2013-LC6, Cl A4
2.941%, 01/10/46		718		723
COMM Mortgage Trust, Ser 2015-DC1, Cl A5
3.350%, 02/10/48		1,000		1,018

The accompanying notes are an integral part of the financial statements.

112


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

COMM Mortgage Trust, Ser CR12, Cl A3
3.765%, 10/10/46	$	1,152	$	1,208
COMM Mortgage Trust, Ser CR16, Cl A4
4.051%, 04/10/47		613		650
Commercial Mortgage Trust, Ser 2015-3BP, Cl A
3.178%, 02/10/35 (A)		13		13
Credit Suisse First Boston Mortgage Securities, Ser 2004-AR2, Cl 5A1
3.431%, 03/25/34 (D)		55		57
CSAIL Commercial Mortgage Trust, Ser 2016-C7, Cl A4
3.210%, 11/15/49		500		503
CSAIL Commercial Mortgage Trust, Ser 2016-C7, Cl A5
3.502%, 11/15/49		756		775
CSFB Mortgage-Backed Pass-Through Certificates, Ser 2003-27, Cl 4A4
5.750%, 11/25/33		84		86
GS Mortgage Securities II, Ser 2015-GC30, Cl A4
3.382%, 05/10/50		249		256
GS Mortgage Securities Trust, Ser 2012-SHOP, Cl A
2.933%, 06/05/31 (A)		1,578		1,591
GS Mortgage Securities Trust, Ser 2013-GC16, Cl A4
4.271%, 11/10/46		23		25
GS Mortgage Securities Trust, Ser 2013-GCJ12, Cl A4
3.135%, 06/10/46		242		246
GS Mortgage Securities Trust, Ser 2015-GC32, Cl A4
3.764%, 07/10/48		500		526
GS Mortgage Securities Trust, Ser GC18, Cl A3
3.801%, 01/10/47		1,540		1,613
GSR Mortgage Loan Trust, Ser 2005-4F, Cl 6A1
6.500%, 02/25/35		39		39
HarborView Mortgage Loan Trust, Ser 2004-3, Cl 1A
3.577%, 05/19/34 (D)		44		45
JPMCC Commercial Mortgage Securities Trust, Ser 2017-JP5, Cl A2
3.240%, 03/15/50		400		410
JPMorgan Mortgage Trust, Ser 2003-A2, Cl 3A1
3.104%, 11/25/33 (D)		150		144


Description	Face Amount (000)		Value (000)

JPMorgan Mortgage Trust, Ser 2005-A1, Cl 6T1
3.663%, 02/25/35 (D)	$	214	$	212
JPMorgan Mortgage Trust, Ser 2005-A2, Cl 3A2
3.468%, 04/25/35 (D)		60		60
JPMorgan Mortgage Trust, Ser 2005-A3, Cl 4A1
3.664%, 06/25/35 (D)		89		90
MLCC Mortgage Investors, Ser 2006-2, Cl 2A
3.183%, 05/25/36 (D)		261		263
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2013-C10, Cl A4
4.082%, 07/15/46 (D)		315		335
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2013-C12, Cl A4
4.259%, 10/15/46 (D)		452		484
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2014-C14, Cl A4
3.787%, 01/15/47		491		514
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2014-C14, Cl A5
4.064%, 02/15/47		189		201
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2014-C19, Cl AS
3.832%, 12/15/47		500		515
Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2015-C20, Cl A4
3.249%, 02/15/48		762		772
Morgan Stanley Capital I Trust, Ser 2014-CPT, Cl A
3.350%, 07/13/29 (A)		1,104		1,129
Structured Adjustable Rate Mortgage Loan Trust, Ser 2004-6, Cl 1A
3.361%, 06/25/34 (D)		257		254
Wells Fargo Commercial Mortgage Trust, Ser 2015-C27, Cl A4
3.190%, 02/15/48		185		187
Wells Fargo Commercial Mortgage Trust, Ser 2015-C28, Cl A4
3.540%, 05/15/48		1,000		1,033
Wells Fargo Commercial Mortgage Trust, Ser 2015-C31, Cl A4
3.695%, 11/15/48		797		832

The accompanying notes are an integral part of the financial statements.

113


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Wells Fargo Commercial Mortgage Trust, Ser 2016-LC25, Cl A4
3.640%, 12/15/59	$	546	$	566
Wells Fargo Commercial Mortgage Trust, Ser 2017-C42
3.589%, 12/15/50		847		874
Wells Fargo Mortgage Backed Securities Trust, Ser 2003-J, Cl 1A9
3.595%, 10/25/33 (D)		597		604
Wells Fargo Mortgage Backed Securities Trust, Ser 2005-AR10, Cl 2A4
3.473%, 05/01/35 (D)		139		143
WFRBS Commercial Mortgage Trust, Ser 2013-C13, Cl A3
2.749%, 05/15/45		500		500
WFRBS Commercial Mortgage Trust, Ser 2013-C14, Cl A4
3.073%, 06/15/46		584		593
WFRBS Commercial Mortgage Trust, Ser 2013-C14, Cl A5
3.337%, 06/15/46		60		61

				26,837

Total Mortgage-Backed Securities (Cost $387,692) (000)				387,147

LOAN PARTICIPATIONS — 10.0%
Aerospace/Defense — 0.0%
Sequa Mezzanine Holdings LLC, Initial Term Loan
6.807%, VAR LIBOR+5.500%, 11/28/17		1		1
6.549%, VAR LIBOR+ 5.500%, 11/28/17		353		355

				356

Airlines — 0.1%
American Airlines, 2017 Replacement Term Loan
3.552%, VAR LIBOR+2.000%, 06/27/20		1,242		1,243

Automotive — 0.1%
Dayco, Term Loan B, 1st Lien
6.479%, VAR LIBOR+5.000%, 05/08/23		697		702
Horizon Global, 1st Lien
6.069%, 03/30/21 (D)		244		245
TI Group Automotive Systems, LLC, Initial US Term Loan
4.319%, VAR LIBOR+2.750%, 06/30/22		503		505

				1,452


Description	Face Amount (000)		Value (000)

Building Materials — 0.3%
American Builders & Contractors Supply, Additional Term B-1 Loan, 1st Lien
4.069%, VAR LIBOR+2.500%, 10/31/23	$	1,114	$	1,118
Beacon Roofing, Term Loan B, 1st Lien
0.000%, 10/11/24 (F)		1,250		1,253
PGT, Initial Term Loan, 1st Lien
6.374%, 02/16/22 (D)		49		50
6.229%, 02/16/22 (D)		69		69
6.182%, 02/16/22 (D)		13		13
6.173%, 02/16/22 (D)		236		239
Priso Acquisition (aka PrimeSource Building Products), Term B Loan, 1st Lien
4.569%, VAR LIBOR+3.000%, 05/08/22		737		740
SRS Distribution, Term B-4 Loan, 1st Lien
4.600%, VAR LIBOR+3.250%, 08/25/22		457		459
4.583%, VAR LIBOR+3.250%, 08/25/22		323		324

				4,265

Chemicals — 1.2%
Allnex (Luxembourg) & Cy S.C.A. (f/k/a AI Chem & Cy S.C.A.), Tranche B-2 Term Loan, 1st Lien
4.712%, VAR LIBOR+3.250%, 09/13/23		705		709
Allnex (Luxembourg) & Cy S.C.A. (f/k/a AI Chem & Cy S.C.A.), Tranche B-3 Term Loan, 1st Lien
4.712%, VAR LIBOR+3.250%, 06/02/23		531		534
Ascend Performance Materials Operations LLC, Term B Loan, 1st Lien
6.943%, VAR LIBOR+5.250%, 08/12/22		496		499
ASP Chromaflo Intermediate Holdings, Initial Tranche B-1 Term Loan, 1st Lien
5.569%, VAR LIBOR+4.000%, 11/20/23		404		406
ASP Chromaflo Intermediate Holdings, Initial Tranche B-2 Term Loan, 1 Lien
5.569%, VAR LIBOR+4.000%, 11/20/23		525		527

The accompanying notes are an integral part of the financial statements.

114


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Avantor, Initial Dollar Term Loan, 1st Lien
5.511%, VAR LIBOR+4.000%, 09/20/24	$	1,000	$	1,004
Axalta Coating Systems Dutch Holding B B.V. (Axalta Coating Systems U.S. Holdings), Term B-2 Dollar Loan, 1st Lien
3.693%, VAR LIBOR+2.000%, 06/21/24		1,076		1,080
Ferro, Term Loan B, 1st Lien
4.069%, 02/08/24 (D)		777		781
Flint Group, Term Loan, 1st Lien
4.365%, 09/07/21 (D)		744		647
H.B. Fuller, Commitment, 1st Lien
3.751%, VAR LIBOR+2.250%, 10/20/24		998		1,000
Ineos US Finance LLC, New 2024 Dollar Term Loan
3.569%, VAR LIBOR+2.000%, 03/31/24 (F)		750		750
Nexeo Solutions, LLC, Term Loan B-1, 1st Lien
0.000%, 06/09/23 (D)		741		743
Orion Engineered Carbons GmbH, Initial Dollar Term Loan
4.193%, VAR LIBOR+2.500%, 07/25/24		1,369		1,375
Plastipak Holdings, Tranche B Term Loan, 1st Lien
4.450%, VAR LIBOR+2.750%, 10/10/24		1,000		1,005
Pregis Holding I, Term Loan, 1st Lien
5.193%, VAR LIBOR+3.500%, 05/20/21		742		742
Ravago Holdings America, Term Loan, 2nd Lien
4.450%, VAR LIBOR+2.750%, 07/13/23		667		670
Ring Container, Term Loan, 1st Lien
4.319%, 10/31/24 (D)		750		751
Solenis International, LP (Solenis Holdings 3 LLC), Initial Dollar Term Loan
4.729%, VAR LIBOR+3.250%, 07/31/21		483		484
Solenis, Term Loan, 2nd Lien
8.229%, 07/31/22 (D)		500		477
Tricorbraun Holdings, Closing Date Term Loan
5.443%, 11/30/23 (D)		767		764


Description	Face Amount (000)		Value (000)

Tricorbraun Holdings, Delayed Draw Term Loan, 1st Lien
5.392%, VAR LIBOR+3.750%, 11/30/23	$	77	$	77
Tronox Limited, Blocked Dollar Term Loan
4.693%, VAR LIBOR+3.000%, 09/23/24		453		456
Tronox Limited, Initial Dollar Term Loan
4.693%, VAR LIBOR+3.000%, 09/23/24		1,047		1,052
U.S. Farathane, LLC, Term B-4 Loan, 1st Lien
5.193%, VAR LIBOR+3.500%, 12/31/21		469		470
Univar USA, Term B-3 Loan, 1st Lien
4.069%, VAR LIBOR+2.500%, 07/01/24		970		973
Vantage Specialty, Term Loan, 1st Lien
5.371%, 10/20/24 (D)		1,000		1,006
Vantage Specialty, Term Loan, 2nd Lien
9.621%, 10/20/25 (D)		205		201
Wilsonart LLC, Tranche D Term Loan, 1st Lien
4.950%, VAR LIBOR+3.250%, 12/19/23		498		500

				19,683

Computers & Electronics — 1.7%
Applied Systems, Initial Term Loan, 1st Lien
4.943%, VAR LIBOR+3.250%, 09/19/24		998		1,007
Aricent Technologies, Initial Term Loan, 1st Lien
5.972%, VAR LIBOR+4.500%, 04/14/21		447		448
Aricent Technologies, Initial Term Loan, 2nd Lien
9.972%, VAR LIBOR+8.500%, 04/14/22		550		553
Brooks Automation, Term Loan B, 1st Lien
4.010%, 10/04/24 (D)		1,500		1,500
Campaign Monitor Finance Property Limited, Initial Term Loan, 1st Lien
6.943%, VAR LIBOR+5.250%, 03/18/21		47		46

The accompanying notes are an integral part of the financial statements.

115


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Cavium, Term Loan B-1, 1st Lien
3.819%, VAR LIBOR+2.250%, 08/16/22	$	748	$	749
CPI International, Initial Term Loan, 1st Lien
5.069%, VAR LIBOR+3.500%, 07/26/24		367		369
Cypress Intermediate Holdings III (fka Jaguar Holding), Initial Term Loan, 1st Lien
4.570%, VAR LIBOR+3.000%, 04/29/24		1,000		1,001
Dell International LLC (EMC), Replacement Term A-2 Loan
3.100%, VAR LIBOR+1.750%, 09/07/21		481		481
Electrical Components International, Initial Term Loan, 1st Lien
6.443%, VAR LIBOR+4.750%, 05/28/21		630		633
Epicor Software, Term Loan B, 1st Lien
5.320%, VAR LIBOR+3.750%, 06/01/22		748		749
Exceiltas, Term Loan, 1st Lien
5.161%, 12/02/24 (D)		1,000		1,007
EZE Software Group LLC, New Loan, 1st Lien
8.193%, VAR LIBOR+6.500%, 04/05/21		750		749
Go Daddy Operating LLC (GD Finance), Tranche B-1 Term Loan, 1st Lien
3.819%, VAR LIBOR+2.250%, 02/15/24		994		996
Infor (US) (fka Lawson Software), Tranche B-6 Term Loan, 1st Lien
4.443%, VAR LIBOR+2.750%, 02/01/22		1,199		1,203
Kronos, Incremental Term Loan, 1st Lien
4.903%, VAR LIBOR+3.500%, 11/01/23		1,036		1,043
MA Financeco, LLC, Tranche B-2 Term Loan, 1st Lien
4.069%, VAR LIBOR+2.500%, 11/19/21		195		195
MACOM Technology Solutions Holdings (fka M/A-COM Technology Solutions Holdings), Initial Term Loan, 1st Lien
3.802%, VAR LIBOR+2.250%, 05/07/24		1,081		1,077


Description	Face Amount (000)		Value (000)

Micro Focus, Term Loan B, 1st Lien
4.319%, VAR LIBOR+2.750%, 06/21/24	$	128	$	128
Micro Holdings (Internet Brands), Term Loan, 2nd Lien
9.089%, VAR LIBOR+7.500%, 08/15/25		244		244
Microsemi, Term B Loan, 1st Lien
3.383%, VAR LIBOR+2.000%, 01/13/23		1,299		1,303
Misys Limited, Dollar Term Loan, 1st Lien
4.979%, VAR LIBOR+3.500%, 06/13/24		1,175		1,177
Misys Limited, Dollar Term Loan, 2nd Lien
8.729%, VAR LIBOR+7.250%, 04/28/25		208		208
Oberthur Technologies Holding, Term Loan B-1, 1st Lien
5.443%, VAR LIBOR+3.750%, 01/10/24		631		623
Omnitracs, LLC (Coronado Holdings, LLC), Term Loan, 2nd Lien
9.450%, VAR LIBOR+7.750%, 05/25/21		500		500
ON Semiconductor, 2017 New Replacement Term B-2 Loan
3.569%, VAR LIBOR+2.000%, 03/31/23		438		440
Project Alpha Intermediate Holding, Term Loan, 1st Lien
5.040%, VAR LIBOR+3.500%, 04/19/24		586		573
Project Ruby Ultimate Parent, Closing Date Term Loan, 1st Lien
5.069%, VAR LIBOR+3.750%, 02/09/24		1,592		1,600
Seattle SpinCo, Initial Term Loan, 1st Lien
4.319%, VAR LIBOR+2.750%, 06/21/24		866		866
Solera, LLC (Solera Finance), Dollar Term Loan, 1st Lien
4.818%, VAR LIBOR+3.250%, 03/03/23		742		747
Spectrum Brands, 2017 Refinanced USD Term Loan
3.624%, VAR LIBOR+2.000%, 06/23/22		373		375
3.423%, VAR LIBOR+2.000%, 06/23/22		320		321

The accompanying notes are an integral part of the financial statements.

116


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

3.397%, VAR LIBOR+2.000%, 06/23/22	$	300	$	301
SS&C Technologies Holdings, 2017 Refinancing New Term B-1 Loan, 1st Lien
3.819%, VAR LIBOR+2.250%, 07/08/22		590		594
SS&C Technologies Holdings, 2017 Refinancing New Term B-2 Loan, 1st Lien
3.819%, VAR LIBOR+2.250%, 07/08/22		11		11
TeamViewer, Term Loan B, 1st Lien
6.443%, 02/22/24		500		501
Vertiv Group (fka Cortes NP Acquisition), Term B Loan, 1st Lien
5.350%, VAR LIBOR+4.000%, 11/30/23		1,203		1,201
Wall Street Systems Delaware, Initial Dollar Term Loan, 1st Lien
4.569%, VAR LIBOR+3.000%, 11/21/24		626		626

				26,145

Construction — 0.1%
Brand Energy & Infrastructure Services (fka FR Brand Acquisition), Initial Term Loan, 1st Lien
5.628%, VAR LIBOR+4.250%, 06/14/24		159		160
5.613%, VAR LIBOR+4.250%, 06/14/24		836		838
Pike, Initial Term Loan (2017)
5.070%, VAR LIBOR+3.500%, 09/20/24		622		630

				1,628

Consumer Nondurables — 0.1%
Acuity Specialty Products, Initial Term Loan
5.380%, VAR LIBOR+4.000%, 08/12/24		492		496
Plaze, Cove-Lite Term Loan, 1st Lien
5.193%, 07/31/22 (D)		350		352
4.834%, 07/31/22 (D)		30		30
Prestige Brands, Term B-4 Loan, 1st Lien
4.319%, VAR LIBOR+2.750%, 01/20/24		1,037		1,043

				1,921


Description	Face Amount (000)		Value (000)

Educational Services — 0.0%
Education Management II LLC, Tranche A Term Loan, 1st Lien
5.849%, VAR LIBOR+4.500%, 07/02/20	$	109	$	31
Education Management II LLC, Tranche B Term Loan, 1st Lien
8.849%, VAR LIBOR+7.500%, 07/02/20		246		3

				34

Entertainment & Leisure — 0.1%
AMC Entertainment, Initial Term Loan, 1st Lien
3.727%, VAR LIBOR+2.250%, 12/15/22		714		716
BC Equity Ventures LLC, Term Loan, 1st Lien
8.070%, VAR LIBOR+6.500%, 08/31/22		494		499
Intrawest Resorts Holdings, Initial Bluebird Term Loan
4.819%, VAR LIBOR+3.250%, 07/31/24		1,000		1,007

				2,222

Financial Services — 0.4%
Altisource Solutions SARL, Term Loan B, 1st Lien
5.069%, VAR LIBOR+3.500%, 12/09/20		929		909
Citco Funding LLC, 2017 Term Loan, 1st Lien
4.569%, VAR LIBOR+3.000%, 03/23/22		964		970
Freedom Mortgage, Initial Term Loan, 1st Lien
6.956%, VAR LIBOR+5.500%, 02/17/22		735		744
Jefferies Finance LLC (JFIN Co-Issuer), Term Loan, 1st Lien
4.438%, VAR LIBOR+3.000%, 08/02/24		750		751
NXT Capital (NXT Capital, LLC), Term Loan
5.070%, VAR LIBOR+3.500%, 11/23/22		744		752
Virtus Investment 2/17 Term Loan, 1st Lien
4.861%, 03/03/24 (D)		998		1,006

The accompanying notes are an integral part of the financial statements.

117


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Walter Investment Management, Tranche B Term Loan, 1st Lien
5.319%, VAR LIBOR+3.750%, 12/18/20 (C)	$	586	$	559

				5,691

Food & Beverage — 0.2%
Constellation/Arterra Wines, Cov-Lite Term Loan
4.376%, 12/15/23 (D)		496		498
Darling International, Term Loan B, 1st Lien
0.000%, 12/12/24 (D)		1,000		1,008
JBS USA Lux S.A. (fka JBS USA, LLC), Initial Term Loan, 1st Lien
4.100%, VAR LIBOR+2.500%, 10/30/22		702		689
US Foods (aka U.S. Foodservice), Initial Term Loan, 1st Lien
4.069%, VAR LIBOR+2.500%, 06/27/23		981		986

				3,181

Forest Products — 0.1%
ProAmpac PG Borrower LLC, Initial Term Loan, 1st Lien
5.436%, VAR LIBOR+4.000%, 11/17/23		136		137
5.380%, VAR LIBOR+4.000%, 11/17/23		106		107
5.001%, VAR LIBOR+4.000%, 11/17/23		214		215
4.907%, VAR LIBOR+4.000%, 11/17/23		40		41
ProAmpac PG Borrower LLC, Initial Term Loan, 2nd Lien
9.936%, VAR LIBOR+8.500%, 11/18/24		225		228

				728

Gaming & Hotels — 0.5%
Belmond Interfin Ltd., Term Loan B, 1st Lien
4.319%, 07/03/24 (D)		995		995
CBAC Borrower, LLC, Term B Loan, 1st Lien
5.350%, VAR LIBOR+4.000%, 07/08/24		509		513
Gateway Casinos & Entertainment Limited, Initial Tranche B-1 Term Loan,
5.443%, VAR LIBOR+3.750%, 02/22/23		746		752


Description	Face Amount (000)		Value (000)

Golden Nugget, Initial B Term Loan, 1st Lien
4.857%, VAR LIBOR+3.250%, 10/04/23	$	608	$	613
4.656%, VAR LIBOR+3.250%, 10/04/23		461		464
Hanjin/Wilshire Grand, Term Loan B, 1st Lien
3.854%, 09/20/20 (D)		1,000		1,003
Hilton Worldwide Finance LLC, Ser B-2 Term Loan, 1st Lien
3.552%, VAR LIBOR+2.000%, 10/25/23		978		982
Las Vegas Sands, LLC, Refinancing Term Loan (2017), 1st Lien
3.569%, VAR LIBOR+2.000%, 03/20/24		1,486		1,493
MGM Growth Properties Operating Partnership LP, Term Loan B, 1st Lien
3.819%, VAR LIBOR+2.250%, 04/25/23		266		267
Playa Resorts Holding, Initial Term Loan, 1st Lien
4.370%, VAR LIBOR+3.000%, 04/05/24		1,111		1,115
4.310%, VAR LIBOR+3.000%, 04/05/24		5		5

				8,202

Health Care — 0.6%
Catalent Pharma Solutions, Term Loan B, 1st Lien
3.819%, 05/20/24 (D)		750		752
Endo Luxembourg Finance I SARL, Initial Term Loan, 1st Lien
5.875%, VAR LIBOR+4.250%, 04/29/24		891		895
Grifols Worldwide Operations Limited, Tranche B Term Loan, 1st Lien
3.739%, VAR LIBOR+2.250%, 01/31/25		1,051		1,053
HCA, Tranche B-9 Term Loan, 1st Lien
3.569%, VAR LIBOR+2.000%, 03/17/23		494		496
Onex Carestream Finance LP, Initial Term Loan, 1st Lien
5.693%, VAR LIBOR+4.000%, 06/07/19		207		208
Pharmerica Term Loan
9.153%, 09/26/25 (D)		500		501

The accompanying notes are an integral part of the financial statements.

118


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Prospect Medical Holdings, Term Loan
7.500%, 06/30/22 (D)	$	996	$	1,006
Sterigenics-Nordion Holdings, LLC, Incremental Term Loan, 1st Lien
4.569%, VAR LIBOR+3.000%, 05/15/22		750		749
Surgery Center Holdings, Initial Term Loan, 1st Lien
4.820%, VAR LIBOR+3.250%, 09/02/24		889		878
Tecostar Holdings, 2017 Term Loan
7.000%, VAR LIBOR+3.500%, 05/01/24		1		1
5.131%, VAR LIBOR+3.500%, 05/01/24		302		305
Valeant Pharmaceuticals International, Ser F Tranche B Term Loan, 1st Lien
4.940%, VAR LIBOR+3.500%, 04/01/22		1,073		1,087
Western Dental Services
6.819%, 06/30/23 (D)		1,211		1,216
Zest Holdings, LLC, Replaced Term Loan
5.820%, VAR LIBOR+4.250%, 08/16/23		496		499

				9,646

Home Furnishings — 0.1%
Comfort Holding, LLC, Initial Term Loan, 1st Lien
11.432%, VAR LIBOR+10.000%, 01/31/25		292		236
6.182%, VAR LIBOR+4.750%, 02/05/24		348		314
Serta Simmons Bedding, LLC, Initial Term Loan
4.897%, VAR LIBOR+3.500%, 10/20/23		232		212
4.835%, VAR LIBOR+3.500%, 10/20/23		836		763

				1,525

Insurance — 0.4%
Acrisure, LLC, Term Loan B-2, 1st Lien
5.647%, VAR LIBOR+4.250%, 11/22/23		1,086		1,095
Alliant Holdings Intermediate LLC, Initial Term Loan, 1st Lien
4.802%, VAR LIBOR+3.250%, 08/12/22		1,164		1,168


Description	Face Amount (000)		Value (000)

AmWINS Group, Term Loan, 1st Lien
4.319%, VAR LIBOR+2.750%, 01/25/24	$	704	$	706
4.182%, VAR LIBOR+2.750%, 01/25/24		286		287
Hyperion Insurance, Term Loan B, 1st Lien
0.000%, 12/13/24 (F)		734		734
NFP, Term Loan B, 1st Lien
5.069%, VAR LIBOR+3.500%, 01/08/24		1,212		1,217
Sedgwick Claims Management Services, 2016 New Term Loan, 1st Lien
4.943%, VAR LIBOR+3.250%, 03/01/21		741		741
Sedgwick Claims Management Services, New Term Loan, 1st Lien
0.000%, 02/28/21 (F)		411		410

				6,358

Leasing — 0.2%
Avolon TLB Borrower 1 (US) LLC, Initial Term B-2 Loan, 1st Lien
3.751%, VAR LIBOR+2.250%, 03/21/22		1,385		1,374
BakerCorp International (f/k/a B-Corp Holdings), Refinanced Term Loan, 1st Lien
4.380%, VAR LIBOR+3.000%, 02/07/20		595		588
Fly Funding II SARL, Loan, 1st Lien
3.410%, VAR LIBOR+2.000%, 02/09/23		701		701
USS Ultimate Holdings, Initial Term Loan
5.319%, VAR LIBOR+3.750%, 08/09/24		367		369

				3,032

Machinery — 0.1%
Blount International, Refinancing Term Loan, 1st Lien
5.611%, VAR LIBOR+4.250%, 04/12/23		750		758
Clark Equipment Company, Tranche B Term Loan, 1st Lien
4.193%, VAR LIBOR+2.500%, 05/18/24		690		693
Douglas Dynamics, Initial Term Loan, 1st Lien
4.570%, 12/31/21 (D)		444		446

The accompanying notes are an integral part of the financial statements.

119


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

SiteOne Landscape Supply, LLC, Tranche D Term Loan, 1st Lien
4.320%, VAR LIBOR+2.750%, 04/29/22	$	339	$	340

				2,237

Manufacturing — 0.0%
Aristocrat Leisure, New Incremental Term Loan B, 1st Lien
0.000%, 10/19/24 (F)		467		467
PLZ Aeroscience Corp
5.089%, 07/31/22 (D)		116		117

				584

Media — 0.5%
ABG Intermediate Holdings 2 LLC, Initial Term Loan
9.443%, VAR LIBOR+7.750%, 09/29/25		500		505
Charter Communications Operating, LLC (aka CCO Safari LLC), Term I-1 Loan, 1st Lien
3.600%, VAR LIBOR+2.250%, 04/30/25		936		936
3.350%, VAR LIBOR+2.000%, 04/30/25		497		497
CSC Holdings, LLC (fka CSC Holdings), March 2017 Refinancing Term Loan, 1st Lien
3.741%, VAR LIBOR+2.250%, 07/17/25		261		260
EMI Music Publishing, Term Loan, 1st Lien
3.741%, 08/21/23 (D)		1,346		1,348
Entravision, Term Loan B, 1st Lien
4.319%, 11/29/24		750		752
Mission Broadcasting, Term Loan B2, 1st Lien
3.861%, VAR LIBOR+2.500%, 01/17/24		118		118
Nexstar Broadcasting, Term B-2 Loan, 1st Lien
3.861%, VAR LIBOR+2.500%, 01/17/24		936		938
Numericable U.S. LLC, USD TLB-12 Term Loan, 1st Lien
4.349%, VAR LIBOR+3.000%, 01/31/26		1,000		961
Technicolor S.A., First Incremental U.S. Term Loan, 1st Lien
4.229%, VAR LIBOR+2.750%, 12/06/23		496		496


Description	Face Amount (000)		Value (000)

Ziggo Secured Finance Partnership, Term Loan E Facility, 1st Lien
3.977%, VAR LIBOR+2.500%, 04/15/25	$	1,000	$	991

				7,802

Metals & Mining — 0.0%
Dynacast International LLC, Term B-1 Loan, 1st Lien
4.943%, VAR LIBOR+3.250%, 01/28/22		497		499

Oil & Gas — 0.1%
BCP Raptor, LLC, Initial Term Loan, 1st Lien
5.729%, VAR LIBOR+4.250%, 06/24/24		471		473
Limetree Bay Terminals, LLC, Advance, 1st Lien
5.501%, VAR LIBOR+4.000%, 02/15/24		746		742
Philadelphia Energy Solutions Refining and Marketing LLC, Term Loan B, 1st Lien
8.500%, VAR Prime Rate by Country+4.000%, 04/04/18		690		514
Seadrill Operating LP (Seadrill Partners Finco LLC), Initial Term Loan, 1st Lien
4.693%, VAR LIBOR+3.000%, 02/21/21		361		291
Traverse Midstream Partners LLC, Advance, 1st Lien
5.850%, VAR LIBOR+4.000%, 09/27/24		278		281

				2,301

Personal Services — 0.1%
William Morris Endeavor Entertainment, LLC (IMG Worldwide Holdings, LLC), Term Loan, 1st Lien
4.640%, VAR LIBOR+3.250%, 05/06/21		1,235		1,240
4.570%, VAR LIBOR+3.250%, 05/06/21		3		3

				1,243

Professional & Business Services — 0.9%
Allied Universal Holdco LLC (f/k/a USAGM Holdco, LLC), Initial Term Loan
5.443%, VAR LIBOR+3.750%, 07/28/22		997		989
BCP Renaissance (Rover), Term Loan B, 1st Lien
5.380%, 10/31/24 (D)		717		725

The accompanying notes are an integral part of the financial statements.

120


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Bright Horizons Family Solutions LLC, Term Loan B, 1st Lien
3.569%, VAR LIBOR+2.000%, 11/07/23	$	967	$	971
Casmar Holdings (Australia) Pty Limited, Initial Term Loan
6.193%, VAR LIBOR+4.500%, 12/20/23		495		494
Change Healthcare Holdings (fka Emdeon), Closing Date Term Loan, 1st Lien
4.319%, VAR LIBOR+2.750%, 03/01/24		1,390		1,392
Duff & Phelps, Restatement Term Loan, 1st Lien
4.943%, VAR LIBOR+3.250%, 10/05/24		494		494
Evertec, Term Loan A, 1st Lien
3.932%, 01/20/18 (D)		1,070		1,037
Explorer Holdings, Initial Term Loan, 1st Lien
5.130%, VAR LIBOR+3.750%, 04/12/23		252		254
FinCo I LLC, Initial Term Loan, 1st Lien
2.750%, VAR LIBOR+2.750%, 06/10/22		1,500		1,515
Flex Acquisition, Initial Term Loan, 1st Lien
4.335%, VAR LIBOR+3.000%, 12/29/23		995		999
Focus Financial Partners, LLC, Initial Term Loan
4.943%, VAR LIBOR+3.250%, 05/22/24		488		492
Greenrock Finance, Initial USD Term B Loan
5.193%, VAR LIBOR+3.500%, 06/05/24		500		501
Harbourvest Partners LP, Initial Term Loan, 1st Lien
3.859%, VAR LIBOR+2.500%, 02/04/21		299		299
Infinity Acquisition LLC, Initial Term Loan, 1st Lien
4.693%, VAR LIBOR+3.000%, 08/06/21		1,147		1,147
iPayment, Term Loan B, 1st Lien
6.618%, 04/11/23		517		521
Team Health Holdings, Initial Term Loan
4.319%, VAR LIBOR+2.750%, 02/06/24		745		725
Tempo Acquisition, LLC, Initial Term Loan, 1st Lien
4.569%, VAR LIBOR+3.000%, 05/01/24		748		744


Description	Face Amount (000)		Value (000)

WEX, Term B-2 Loan, 1st Lien
4.319%, VAR LIBOR+2.750%, 06/30/23	$	1,000	$	1,004

				14,303

Real Estate — 0.3%
Capital Automotive LP, Term Loan B, 1st Lien
4.070%, VAR LIBOR+2.500%, 03/21/24		1,247		1,250
Capital Automotive LP, Term Loan, 2nd Lien
7.570%, VAR LIBOR+6.000%, 03/21/25		232		237
DTZ US Borrower LLC, Initial Term Loan, 1st Lien
4.943%, VAR LIBOR+3.250%, 11/04/21		53		52
4.729%, VAR LIBOR+3.250%, 11/04/21		859		847
4.630%, VAR LIBOR+3.250%, 11/04/21		386		381
iStar, Initial Term Loan, 1st Lien
4.511%, VAR LIBOR+3.000%, 07/01/20		188		189
4.392%, VAR LIBOR+3.000%, 07/01/20		187		189
Packers Sanitation Services, Term Loan, 1st Lien
4.737%, 11/18/24 (D)		750		752
RE/MAX, LLC (fka RE/MAX International, LLC), Term Loan, 1st Lien
4.443%, VAR LIBOR+2.750%, 12/15/23		494		491
RHP Hotel Properties, LP, Tranche B Term Loan, 1st Lien
3.670%, VAR LIBOR+2.250%, 05/11/24		746		749

				5,137

Retail Food & Drug — 0.1%
BJ's Wholesale Club, Tranche B Term Loan, 1st Lien
4.953%, VAR LIBOR+3.500%, 02/03/24		559		549
PharMerica, Initial Term Loan
4.903%, VAR LIBOR+3.500%, 09/26/24		363		364

				913

The accompanying notes are an integral part of the financial statements.

121


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Retailing — 0.3%
1011778 B.C. Unlimited Liability (New Red Finance) (aka Burger King/Tim Hortons), Term B-3 Loan, 1st Lien
3.943%, VAR LIBOR+2.250%, 02/16/24	$	537	$	536
3.819%, VAR LIBOR+2.250%, 02/16/24		838		838
Aramark Intermediate HoldCo, U.S. Term B-1 Loan, 1st Lien
3.569%, VAR LIBOR+2.000%, 03/07/25		522		525
Belron Finance US LLC, Initial Term B Loan, 1st Lien
3.892%, VAR LIBOR+2.500%, 10/25/24		1,000		1,009
HD Supply, Term B-4 Loan, 1st Lien
4.193%, VAR LIBOR+2.500%, 10/17/23		744		750
Trugreen Limited Partner
5.536%, 04/13/23 (D)		494		500

				4,158

Securities & Trusts — 0.2%
AssuredPartners, 2017 September Refinancing Term Loan
5.069%, VAR LIBOR+3.500%, 10/22/24		750		754
RPI Finance Trust, Initial Term Loan B-6, 1st Lien
3.693%, VAR LIBOR+2.000%, 03/27/23		742		745
TCW Group, Term Loan B, 1st Lien
3.621%, 12/13/24 (D)		635		636
Vistra, Term Loan, 1st Lien
4.600%, 10/26/22 (D)		748		748

				2,883

Shipping & Ship Building — 0.2%
AI Mistral Holdco Limited, Initial Term Loan
4.569%, VAR LIBOR+3.000%, 01/17/24		744		740
International Seaways Operating, Term Loan, 1st Lien
6.850%, VAR LIBOR+5.500%, 05/30/22		745		745
Navios Maritime Partners LP, Initial Term Loan, 1st Lien
6.540%, VAR LIBOR+5.000%, 09/14/20		963		959


Description	Face Amount (000)		Value (000)

OSG Bulk Ships, Initial Term Loan, 1st Lien
5.650%, VAR LIBOR+4.250%, 08/05/19	$	400	$	385

				2,829

Steel — 0.1%
Zekelman Industries (fka JMC Steel Group), Term Loan, 1st Lien
4.073%, VAR LIBOR+2.750%, 06/14/21		836		839

Telecommunications — 0.8%
Altice Financing, March 2017 Refinancing Term Loan
4.109%, VAR LIBOR+2.750%, 07/15/25		950		929
CenturyLink, Initial Term B Loan, 1st Lien
4.319%, VAR LIBOR+2.750%, 01/31/25		1,250		1,204
Ciena, Refinancing Term Loan, 1st Lien
4.001%, VAR LIBOR+2.500%, 01/26/22		1,195		1,198
CPI International, Initial Term Loan, 1st Lien
8.819%, 07/25/25 (D)		313		313
Digicel International Finance Limited, Initial Term B Loan, 1st Lien
5.080%, VAR LIBOR+3.750%, 05/27/24		360		361
Greeneden U.S. Holdings I, LLC, Tranche B-2 Dollar Term Loan
5.443%, VAR LIBOR+3.750%, 12/01/23		937		942
Level 3 Financing, Tranche B 2024 Term Loan
3.696%, VAR LIBOR+2.250%, 02/22/24		1,670		1,670
Lumos Networks, Delayed Term Loan, 1st Lien
0.000%, 10/27/24 (F)		300		300
Lumos Networks, Term Loan B, 1st Lien
4.819%, VAR LIBOR+3.250%, 10/27/24		806		809
Radiate Holdco, LLC, Closing Date Term Loan, 1st Lien
4.569%, VAR LIBOR+3.000%, 02/01/24		993		984
SBA Finance, Incremental Term Loan, 1st Lien
3.600%, VAR LIBOR+2.250%, 06/10/22 (F)		500		501

The accompanying notes are an integral part of the financial statements.

122


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)⁽¹⁾		Value (000)

SBA Senior Finance II LLC, Incremental Tranche B-1 Term Loan, 1st Lien
3.820%, VAR LIBOR+2.250%, 03/24/21		727	$	729
Sprint Communications, Initial Term Loan
4.125%, VAR LIBOR+2.500%, 02/02/24		1,294		1,293
Syniverse Holdings, Tranche B Term Loan, 1st Lien
4.569%, VAR LIBOR+3.000%, 04/23/19		390		383
Zayo Group LLC (Zayo Capital), 2017 Incremental Refinancing B-2 Term Facility
3.802%, VAR LIBOR+2.250%, 01/19/24		1,136		1,139

				12,755

Transportation — 0.1%
Agro Merchants North America Holdings, Effective Date Loan, 1st Lien
5.319%, VAR LIBOR+3.750%, 11/15/24		1,000		1,005
XPO Logistics, Refinanced Term Loan, 1st Lien
3.599%, VAR LIBOR+2.250%, 11/01/21		931		936

				1,941

Total Loan Participations (Cost $158,004) (000)				157,736

SOVEREIGN DEBT — 9.1%
1MDB Global Investments
4.400%, 03/09/23		3,100		3,008
African Development Bank
2.125%, 11/16/22		50		49
1.375%, 02/12/20		100		99
1.125%, 09/20/19		100		98
Andina de Fomento
4.375%, 06/15/22		100		107
Argentine Bonos del Tesoro
18.200%, 10/03/21 (ARS)		17,523		960
Argentine Republic Government International Bond
8.280%, 12/31/33		2,032		2,395
7.500%, 04/22/26		1,310		1,483
7.125%, 07/06/36 (A)		560		607
7.125%, 06/28/17 (A)		360		371
6.875%, 04/22/21		195		212
5.625%, 01/26/22		750		791
2.500%, 03/31/19 (E)		1,519		1,117
Armenia International Bond
6.000%, 09/30/20 (A)		876		930


Description	Face Amount (000)⁽¹⁾		Value (000)

Asian Development Bank
2.375%, 08/10/27		100	$	98
2.000%, 01/22/25		100		97
1.750%, 03/21/19		100		100
1.750%, 06/08/21		200		197
1.625%, 08/26/20		100		99
1.625%, 03/16/21		200		197
1.375%, 01/15/19		100		99
1.000%, 08/16/19		100		98
Azerbaijan Government International Bond
4.750%, 03/18/24 (A)		1,765		1,822
Bahamas Government International Bond
6.000%, 11/21/28 (A)		1,210		1,258
Banco Nacional de Desenvolvimento Economico e Social
4.750%, 05/09/24 (A)		715		720
Brazil Notas do Tesouro Nacional Serie F
10.000%, 01/01/21 (BRL)		1,230		381
10.000%, 01/01/23 (BRL)		3,425		1,045
10.000%, 01/01/25 (BRL)		1,100		331
Brazilian Government International Bond
6.000%, 04/07/26		1,440		1,609
5.625%, 01/07/41		370		378
4.875%, 01/22/21		365		387
4.625%, 01/13/28		770		774
4.250%, 01/07/25		1,105		1,124
2.625%, 01/05/23		515		496
Canada Government International Bond
2.000%, 11/15/22		100		99
1.625%, 02/27/19		100		99
Chile Government International Bond
3.860%, 06/21/47		658		676
3.125%, 01/21/26		107		108
Colombia Government International Bond
7.375%, 03/18/19		100		106
7.375%, 09/18/37		945		1,277
6.125%, 01/18/41		600		724
5.000%, 06/15/45		860		909
4.500%, 01/28/26		340		363
4.375%, 07/12/21		200		211
4.000%, 02/26/24		970		1,006
3.875%, 04/25/27		1,617		1,646
Costa Rica Government International Bond
7.158%, 03/12/45 (A)		700		735
7.000%, 04/04/44 (A)		390		403
Council of Europe Development Bank
1.750%, 11/14/19		100		99

The accompanying notes are an integral part of the financial statements.

123


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Croatia Government International Bond
6.375%, 03/24/21	$	460	$	506
Dominican Republic International Bond
7.450%, 04/30/44 (A)		915		1,091
6.875%, 01/29/26 (A)		990		1,130
6.850%, 01/27/45 (A)		250		281
6.600%, 01/28/24 (A)		290		325
5.950%, 01/25/27 (A)		800		864
5.500%, 01/27/25 (A)		365		387
Ecuador Government International Bond
10.750%, 03/28/22 (A)		790		923
9.650%, 12/13/26 (A)		560		643
8.875%, 10/23/27 (A)		700		770
8.750%, 06/02/23 (A)		440		487
7.950%, 06/20/24 (A)		1,220		1,296
7.950%, 06/20/24		210		223
Egypt Government International Bond
8.500%, 01/31/47 (A)		500		574
7.500%, 01/31/27 (A)		860		951
6.125%, 01/31/22 (A)		790		826
El Salvador Government International Bond
8.625%, 02/28/29 (A)		880		1,030
7.650%, 06/15/35 (A)		1,375		1,490
7.375%, 12/01/19 (A)		365		386
6.375%, 01/18/27 (A)		320		326
European Bank for Reconstruction & Development
1.750%, 11/26/19		150		149
1.500%, 03/16/20		200		197
0.875%, 07/22/19		200		197
European Investment Bank
3.250%, 01/29/24		250		260
2.375%, 05/24/27		250		246
2.250%, 03/15/22		150		149
2.125%, 10/15/21		200		199
2.125%, 04/13/26		100		97
2.000%, 12/15/22		150		147
1.875%, 03/15/19		150		150
1.375%, 06/15/20		150		147
1.375%, 09/15/21		100		97
1.250%, 05/15/19		100		99
1.250%, 12/16/19		300		295
Export Credit Bank of Turkey
5.875%, 04/24/19 (A)		200		206
Export Development Canada
2.000%, 05/17/22		200		197
Export-Import Bank of Korea
2.875%, 01/21/25		200		195
2.500%, 05/10/21		200		197


Description	Face Amount (000)		Value (000)

Georgia Government International Bond
6.875%, 04/12/21 (A)	$	1,260	$	1,409
Ghana Government International Bond
10.750%, 10/14/30 (A)		970		1,334
9.250%, 09/15/22 (A)		490		555
7.875%, 08/07/23 (A)		1,210		1,329
Hashemite Kingdom of Jordan Government AID Bond
2.503%, 10/30/20		200		203
Honduras Government International Bond
8.750%, 12/16/20 (A)		670		751
7.500%, 03/15/24 (A)		200		223
6.250%, 01/19/27 (A)		330		352
Hungary Government International Bond
5.750%, 11/22/23		900		1,029
5.375%, 03/25/24		1,540		1,742
Indonesia Government International Bond
8.500%, 10/12/35 (A)		1,410		2,113
8.500%, 10/12/35		260		389
5.875%, 01/15/24 (A)		785		892
5.250%, 01/17/42 (A)		400		448
5.250%, 01/08/47 (A)		280		317
4.350%, 01/11/48		1,180		1,197
4.125%, 01/15/25 (A)		360		374
3.850%, 07/18/27 (A)		500		513
3.700%, 01/08/22 (A)		210		216
Inter-American Development Bank
2.375%, 07/07/27		100		98
2.125%, 11/09/20		250		250
2.125%, 01/15/25		125		123
1.875%, 03/15/21		150		149
1.750%, 04/14/22		150		147
1.750%, 09/14/22		100		97
1.625%, 05/12/20		150		148
1.000%, 05/13/19		100		99
International Bank for Reconstruction & Development
2.500%, 11/25/24		100		100
2.500%, 07/29/25		150		150
2.250%, 06/24/21		50		50
2.125%, 12/13/21		200		199
2.125%, 02/13/23		100		99
2.000%, 01/26/22		200		198
1.875%, 03/15/19		200		200
1.875%, 10/07/19		200		199
1.875%, 04/21/20		200		199
1.625%, 03/09/21		150		147
1.375%, 09/20/21		300		291
1.250%, 07/26/19		100		99
International Finance
2.000%, 10/24/22		50		49

The accompanying notes are an integral part of the financial statements.

124


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)⁽¹⁾		Value (000)

1.625%, 07/16/20		100	$	99
1.125%, 07/20/21		100		97
Israel Government International Bond
3.150%, 06/30/23		200		205
Ivory Coast Government International Bond
6.125%, 06/15/33 (A)		810		824
5.750%, 12/31/32 (A)		679		678
5.375%, 07/23/24 (A)		450		458
Jamaica Government International Bond
8.000%, 03/15/39		250		306
Japan Bank for International Cooperation
2.500%, 06/01/22		200		199
2.375%, 04/20/26		200		194
2.250%, 11/04/26		200		192
2.125%, 07/21/20		200		199
Jordan Government International Bond
7.375%, 10/10/47 (A)		1,300		1,354
5.750%, 01/31/27 (A)		370		367
Kazakhstan Government International Bond
6.500%, 07/21/45 (A)		540		693
Korea Development Bank
2.500%, 01/13/21		200		197
Korea International Bond
7.125%, 04/16/19		100		106
2.750%, 01/19/27		200		196
Kreditanstalt fuer Wiederaufbau
2.125%, 03/07/22		150		149
1.750%, 03/31/20		500		497
1.750%, 09/15/21		200		196
1.625%, 05/29/20		250		247
Lebanon Government International Bond
8.250%, 04/12/21		760		791
6.750%, 11/29/27		215		205
6.650%, 11/03/28		160		150
6.650%, 02/26/30		610		561
6.600%, 11/27/26		450		429
6.375%, 03/09/20		285		285
6.200%, 02/26/25		390		368
6.100%, 10/04/22		440		427
6.000%, 01/27/23		505		484
5.450%, 11/28/19		530		526
Malaysia Government Bond
4.254%, 05/31/35 (MYR)		3,650		867
3.844%, 04/15/33 (MYR)		2,510		580
Mexico Government International Bond
5.550%, 01/21/45		500		562
4.600%, 02/10/48		878		867
4.150%, 03/28/27		510		529
4.125%, 01/21/26		200		209


Description	Face Amount (000)⁽¹⁾		Value (000)

Mongolia Government International Bond
10.875%, 04/06/21 (A)		2,100	$	2,466
8.750%, 03/09/24 (A)		200		230
5.625%, 05/01/23 (A)		530		535
5.125%, 12/05/22 (A)		805		797
5.125%, 12/05/22		490		485
Nigeria Government International Bond
7.875%, 02/16/32 (A)		720		813
7.625%, 11/28/47 (A)		570		611
6.750%, 01/28/21 (A)		220		234
6.500%, 11/28/27 (A)		580		605
Nordic Investment Bank
1.500%, 09/29/20		200		197
Oman Government International Bond
6.500%, 03/08/47 (A)		660		661
5.375%, 03/08/27 (A)		1,235		1,246
4.750%, 06/15/26 (A)		465		451
3.875%, 03/08/22 (A)		300		302
3.625%, 06/15/21 (A)		200		200
Oman Sovereign Sukuk SAOC
4.397%, 06/01/24 (A)		620		619
Panama Government International Bond
9.375%, 04/01/29		455		689
6.700%, 01/26/36		1,385		1,844
5.200%, 01/30/20		100		105
4.500%, 05/15/47		200		215
Peru Government Bond
6.150%, 08/12/32 (PEN) (A)		1,820		597
Perusahaan Penerbit SBSN Indonesia III
4.150%, 03/29/27 (A)		490		506
Peruvian Government International Bond
7.350%, 07/21/25		100		130
6.950%, 08/12/31 (PEN) (A)		1,000		352
6.550%, 03/14/37		715		967
5.625%, 11/18/50		905		1,161
Philippine Government International Bond
7.750%, 01/14/31		209		298
6.375%, 10/23/34		1,030		1,378
5.500%, 03/30/26		200		236
4.200%, 01/21/24		200		217
3.700%, 02/02/42		300		298
Poland Government International Bond
6.375%, 07/15/19		200		212
4.000%, 01/22/24		125		133
3.000%, 03/17/23		150		153
Province of Alberta Canada
2.200%, 07/26/22		100		98
1.900%, 12/06/19		200		199

The accompanying notes are an integral part of the financial statements.

125


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)⁽¹⁾		Value (000)

Province of British Columbia Canada
2.000%, 10/23/22		100	$	98
Province of Manitoba Canada
2.125%, 06/22/26		500		470
2.050%, 11/30/20		150		149
Province of Ontario Canada
2.500%, 04/27/26		500		490
2.450%, 06/29/22		200		199
2.000%, 01/30/19		250		250
1.875%, 05/21/20		150		149
1.625%, 01/18/19		100		100
1.250%, 06/17/19		150		148
Province of Quebec Canada
2.875%, 10/16/24		100		101
2.625%, 02/13/23		200		200
2.500%, 04/20/26		600		587
Provincia de Buenos Aires
7.875%, 06/15/27 (A)		685		760
6.500%, 02/15/23 (A)		450		484
Provincia de Cordoba
7.125%, 06/10/21 (A)		170		184
Republic of Belarus International Bond
6.875%, 02/28/23 (A)		680		731
Republic of Italy Government International Bond
5.375%, 06/15/33		300		352
Republic of South Africa Government Bond
8.750%, 02/28/48 (ZAR)		5,500		403
Romanian Government International Bond
6.750%, 02/07/22 (A)		910		1,042
4.375%, 08/22/23 (A)		540		578
Russian Federal Bond - OFZ
8.150%, 02/03/27(RUB)		81,100		1,482
Russian Foreign Bond - Eurobond
5.625%, 04/04/42 (A)		400		448
5.250%, 06/23/47 (A)		800		837
4.875%, 09/16/23 (A)		400		433
4.750%, 05/27/26		1,000		1,061
Saudi Government International Bond
3.625%, 03/04/28 (A)		760		753
Senegal Government International Bond
8.750%, 05/13/21 (A)		1,025		1,182
6.250%, 07/30/24 (A)		300		324
6.250%, 05/23/33 (A)		580		612
Serbia Government International Bond
7.250%, 09/28/21 (A)		1,075		1,229


Description	Face Amount (000)⁽¹⁾		Value (000)

South Africa Government International Bond
4.300%, 10/12/28		1,750	$	1,688
Sri Lanka Government International Bond
6.850%, 11/03/25 (A)		445		491
6.825%, 07/18/26 (A)		430		473
6.200%, 05/11/27 (A)		1,430		1,510
6.125%, 06/03/25 (A)		220		232
5.875%, 07/25/22 (A)		295		311
Turkey Government International Bond
8.000%, 02/14/34		436		538
7.375%, 02/05/25		610		702
6.875%, 03/17/36		630		702
6.000%, 03/25/27		1,200		1,278
5.750%, 05/11/47		715		697
5.625%, 03/30/21		1,080		1,137
4.250%, 04/14/26		740		705
Ukraine Government AID Bonds
1.471%, 09/29/21		200		195
Ukraine Government International Bond
7.750%, 09/01/21 (A)		214		228
7.750%, 09/01/22 (A)		1,184		1,259
7.750%, 09/01/23 (A)		1,284		1,362
7.750%, 09/01/24 (A)		394		414
7.750%, 09/01/25 (A)		1,019		1,063
7.750%, 09/01/26 (A)		454		469
7.750%, 09/01/27 (A)		215		222
7.375%, 09/25/32 (A)		1,130		1,110
2.984%, 05/31/40 (A) (D)		314		173
Ukreximbank Via Biz Finance
9.625%, 04/27/22 (A)		345		368
Uruguay Government International Bond
9.875%, 06/20/22 (UYU) (A)		5,900		217
8.500%, 03/15/28 (UYU) (A)		3,940		137
5.100%, 06/18/50		1,943		2,156
4.500%, 08/14/24		544		590
4.375%, 10/27/27		2,045		2,190
Venezuela Government International Bond
7.750%, 10/13/19 (C)		515		116
7.650%, 04/21/25 (C)		362		72
7.000%, 03/31/38		422		87
Zambia Government International Bond
8.970%, 07/30/27 (A)		200		225
8.500%, 04/14/24 (A)		1,105		1,220
5.375%, 09/20/22 (A)		680		663

Total Sovereign Debt (Cost $138,718) (000)				144,577

The accompanying notes are an integral part of the financial statements.

126


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

ASSET-BACKED SECURITIES — 6.3%
Automotive — 3.6%
AmeriCredit Automobile Receivables Trust, Ser 2017-1, Cl A2A
1.510%, 05/18/20	$	895	$	894
AmeriCredit Automobile Receivables Trust, Ser 2017-4, Cl A2A
1.830%, 05/18/21		3,907		3,903
AmeriCredit Automobile Receivables Trust, Ser 2017-4, Cl A3
2.040%, 07/18/22		335		334
AmeriCredit Automobile Receivables Trust, Ser 2017-4, Cl B
2.360%, 12/19/22		1,319		1,316
BMW Vehicle Lease Trust, Ser 2017-1, Cl A3
1.980%, 05/20/20		350		349
Capital Auto Receivables Asset Trust, Ser 2016-3, Cl A2A
1.360%, 04/22/19		92		92
Capital Auto Receivables Asset Trust, Ser 2017-1, Cl A2
1.760%, 06/22/20 (A)		1,753		1,750
CarFinance Capital Auto Trust, Ser 2015-1A, Cl A
1.750%, 06/15/21 (A)		229		228
CarMax Auto Owner Trust, Ser 2016-4, Cl A4
1.600%, 06/15/22		250		245
CarMax Auto Owner Trust, Ser 2017-3, Cl A2A
1.640%, 09/15/20		2,076		2,072
CarMax Auto Owner Trust, Ser 2017-4, Cl A3
2.110%, 10/17/22		892		887
CarMax Auto Owner Trust, Ser 2017-4, Cl A4
2.330%, 05/15/23		545		542
CPS Auto Receivables Trust, Ser 2015-A, Cl A
1.530%, 07/15/19 (A)		2		2
CPS Auto Receivables Trust, Ser 2015-B, Cl A
1.650%, 11/15/19 (A)		17		17
CPS Auto Receivables Trust, Ser 2016-B, Cl A
2.070%, 11/15/19 (A)		262		262
CPS Auto Receivables Trust, Ser 2016-C, Cl A
1.620%, 01/15/20 (A)		707		706


Description	Face Amount (000)		Value (000)

CPS Auto Receivables Trust, Ser 2017-C, Cl A
1.780%, 09/15/20 (A)	$	885	$	882
CPS Auto Trust, Ser 2016-D, Cl A
1.500%, 06/15/20 (A)		855		853
Drive Auto Receivables Trust, Ser 2017-1, Cl A2A
1.670%, 05/15/19		720		720
Drive Auto Receivables Trust, Ser 2017-2, Cl A2A
1.630%, 08/15/19		1,334		1,333
Drive Auto Receivables Trust, Ser 2017-2, Cl B
2.250%, 06/15/21		1,532		1,530
Drive Auto Receivables Trust, Ser 2017-3, Cl A1
1.450%, 11/15/18		897		897
Drive Auto Receivables Trust, Ser 2017-3, Cl B
2.300%, 05/17/21		1,343		1,340
Drive Auto Receivables Trust, Ser 2017-BA, Cl A2
1.590%, 12/17/18 (A)		126		126
Drive Auto Receivables Trust, Ser 2017-BA, Cl B
2.200%, 05/15/20 (A)		733		733
DT Auto Owner Trust, Ser 2016-4A, Cl A
1.440%, 11/15/19 (A)		162		162
DT Auto Owner Trust, Ser 2017-2A, Cl A
1.720%, 05/15/20 (A)		1,880		1,879
DT Auto Owner Trust, Ser 2017-3A, Cl A
1.730%, 08/17/20 (A)		2,027		2,024
DT Auto Owner Trust, Ser 2017-4A, Cl A
1.850%, 08/17/20 (A)		4,734		4,716
Exeter Automobile Receivables Trust, Ser 2016-1A, Cl A
2.350%, 07/15/20 (A)		54		54
Exeter Automobile Receivables Trust, Ser 2016-3A, Cl A
1.840%, 11/16/20 (A)		769		768
Exeter Automobile Receivables Trust, Ser 2017-3A, Cl A
2.050%, 12/15/21 (A)		2,076		2,073
First Investors Auto Owner Trust, Ser 2016-2A, Cl A1
1.530%, 11/16/20 (A)		454		453
Flagship Credit Auto Trust, Ser 2015-1, Cl A
1.630%, 06/15/20 (A)		1		1

The accompanying notes are an integral part of the financial statements.

127


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

Flagship Credit Auto Trust, Ser 2015-3, Cl A
2.380%, 10/15/20 (A)	$	151	$	151
Flagship Credit Auto Trust, Ser 2016-2, Cl A1
2.280%, 05/15/20 (A)		99		99
Flagship Credit Auto Trust, Ser 2016-3, Cl A1
1.610%, 12/15/19 (A)		353		353
Flagship Credit Auto Trust, Ser 2016-4, Cl A1
1.470%, 03/16/20 (A)		1,678		1,676
Ford Credit Auto Owner Trust, Ser 2017-A, Cl A4
1.920%, 04/15/22		3,427		3,403
Ford Credit Auto Owner Trust, Ser 2017-B, Cl A2A
1.490%, 05/15/20		2,491		2,487
Ford Credit Auto Owner Trust, Ser 2017-B, Cl A3
1.690%, 11/15/21		145		145
Ford Credit Auto Owner Trust, Ser 2017-C, Cl A3
2.010%, 03/15/22		1,197		1,193
GM Financial Consumer Automobile, Ser 2017-1A, Cl A3
1.780%, 10/18/21 (A)		1,814		1,803
GM Financial Consumer Automobile Receivables Trust, Ser 2017-3A, Cl A3
1.970%, 05/16/22 (A)		3,096		3,078
Honda Auto Receivables Owner Trust, Ser 2017-4, Cl A3
2.050%, 11/22/21		1,102		1,099
Nissan Auto Receivables Owner Trust, Ser 2017-C, Cl A4
2.280%, 02/15/24		1,586		1,582
Santander Drive Auto Receivables Trust, Ser 2015-2, Cl B
1.830%, 01/15/20		35		35
Santander Drive Auto Receivables Trust, Ser 2017-1, Cl A2
1.490%, 02/18/20		359		359
Santander Retail Auto Lease Trust, Ser 2017-A, Cl A3
2.220%, 01/20/21 (A)		1,495		1,488
Toyota Auto Receivables Owner Trust, Ser 2017-A, Cl A2A
1.420%, 09/16/19		2,023		2,020
Westlake Automobile Receivables Trust, Ser 2016-2A, Cl A2
1.570%, 06/17/19 (A)		1,100		1,100


Description	Face Amount (000)		Value (000)

Westlake Automobile Receivables Trust, Ser 2017-1A, Cl A2
1.780%, 04/15/20 (A)	$	1,665	$	1,664

				57,878

Credit Card — 1.7%
American Express Credit Account Master Trust, Ser 2017-1, Cl A
1.930%, 09/15/22		2,449		2,438
American Express Credit Account Master Trust, Ser 2017-6, Cl A
2.040%, 05/15/23		3,176		3,165
American Express Credit Account Master Trust, Ser 2017-7, Cl A
2.350%, 05/15/25		1,014		1,011
BA Credit Card Trust, Ser 2017-A1, Cl A1
1.950%, 08/15/22		2,168		2,158
Capital One Multi-Asset Execution Trust, Ser 2016-A3, Cl A3
1.340%, 04/15/22		250		247
Capital One Multi-Asset Execution Trust, Ser 2017-A4, Cl A4
1.990%, 07/17/23		1,177		1,170
Citibank Credit Card Issuance Trust, Ser 2014-A1, Cl A1
2.880%, 01/23/23		200		204
Citibank Credit Card Issuance Trust, Ser 2017-A2, Cl A2
1.740%, 01/19/21		5,146		5,134
Citibank Credit Card Issuance Trust, Ser 2017-A7, Cl A7
1.777%, VAR LIBOR USD 1 Month+0.370%, 08/08/24		2,242		2,251
Citibank Credit Card Issuance Trust, Ser 2017-A8, Cl A8
1.860%, 08/08/22		250		248
Discover Card Execution Note Trust, Ser 2016-A4, Cl A4
1.390%, 03/15/22		270		267
Discover Card Execution Note Trust, Ser 2017-A6, Cl A6
1.880%, 02/15/23		3,706		3,673
Discover Card Execution Note Trust, Ser 2017-A7, Cl A7
1.837%, VAR LIBOR USD 1 Month+0.360%, 04/15/25		2,059		2,068

The accompanying notes are an integral part of the financial statements.

128


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

World Financial Network Credit Card Master Trust, Ser 2017-C, Cl A
2.310%, 08/15/24	$	2,747	$	2,736

				26,770

Other Asset-Backed Securities — 1.0%
AJAX Mortgage Loan Trust, Ser 2016-C, Cl A
4.000%, 10/25/57 (A)		694		699
AJAX Mortgage Loan Trust, Ser 2017-A, Cl A
3.470%, 04/25/57 (A)		290		290
Bayview Opportunity Master Fund IIIa Trust, Ser 2017-RN7, Cl A1
3.105%, 09/28/32 (A)		1,172		1,170
Bayview Opportunity Master Fund IIIa Trust, Ser 2017-RN8, Cl A1
3.352%, 11/28/32 (A)		1,732		1,732
Bayview Opportunity Master Fund IIIb Trust, Ser 2017-RN2, Cl A1
3.475%, 04/28/32 (A) (D)		608		610
Bayview Opportunity Master Fund IIIb Trust, Ser 2017-RN3, Cl A1
3.228%, 05/28/32 (A)		208		208
Bayview Opportunity Master Fund IVb Trust, Ser 2017-NPL1, Cl A1
3.598%, 01/28/32 (A)		267		268
CAM Mortgage Trust, Ser 2016-2, Cl A1
3.250%, 06/15/57 (A)		32		32
Ford Credit Floorplan Master Owner Trust A, Ser 2017-3, Cl A
2.480%, 09/15/24		150		149
GCAT, Ser 2017-2, Cl A1
3.500%, 04/25/47 (A)		787		788
GCAT, Ser 2017-3, Cl A1
3.352%, 04/25/47 (A)		375		375
GCAT, Ser 2017-5, Cl A1
3.228%, 07/25/47 (A)		275		275
NYMT Residential, Ser 2016g-RP1A, Cl A
4.000%, 03/25/21 (A)		99		99
Oak Hill Advisors Residential Loan Trust, Ser 2017-NPL1, Cl A1
3.000%, 06/25/57 (A)		759		757


Description	Face Amount (000)		Value (000)

Oak Hill Advisors Residential Loan Trust, Ser 2017-NPL2, Cl A1
3.000%, 07/25/57 (A)	$	1,118	$	1,117
PRPM, Ser 2017-2A, Cl A1
3.500%, 09/25/22 (A)		1,075		1,072
RCO Mortgage, Ser 2017-1, Cl A1
3.375%, 08/25/22 (A)		2,042		2,044
Verizon Owner Trust, Ser 2017-3A, Cl A1A
2.060%, 04/20/22 (A)		1,941		1,931
VOLT LVI, Ser 2017-NPL3, Cl A1
3.500%, 03/25/47 (A)		620		622
VOLT LVII, Ser 2017-NPL4, Cl A1
3.375%, 04/25/47 (A)		264		265
VOLT LXI, Ser 2017-NPL8, Cl A1
3.125%, 06/25/47 (A)		906		906
VOLT XXXVIII, Ser 2015-NP12, Cl A1
3.875%, 09/25/45 (A)		65		65

				15,474

Total Asset-Backed Securities (Cost $100,350) (000)				100,122

COMMERCIAL PAPER — 1.0%
American Honda Finance
1.401%, 01/10/18		3,911		3,909
Bank of Tokyo-Mitsubishi UFJ NY
1.481%, 01/03/18		3,892		3,891
National Rural Utilities Cooperative Finance
1.582%, 01/25/18		3,809		3,805
Province of British Columbia Canada
1.431%, 01/11/18		3,421		3,419

Total Commercial Paper (Cost $15,026) (000)				15,024

U.S. GOVERNMENT AGENCY OBLIGATIONS — 0.8%
FFCB
1.680%, 10/13/20		100		99
1.550%, 05/08/20		200		198
FHLB
2.750%, 12/13/24		300		305
2.300%, 07/19/22		200		199
2.260%, 10/04/22		150		149
2.160%, 08/17/22		100		98
2.150%, 09/26/22		200		197
1.875%, 11/29/21		150		149
1.375%, 11/15/19		125		124

The accompanying notes are an integral part of the financial statements.

129


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund


Description	Face Amount (000)		Value (000)

1.250%, 01/16/19	$	250	$	248
1.125%, 06/21/19		300		297
1.000%, 09/26/19		250		246
0.875%, 08/05/19		100		98
FHLMC
6.250%, 07/15/32		1,176		1,650
2.375%, 01/13/22		2,311		2,332
1.600%, 07/26/19		250		249
1.330%, 12/30/20		400		388
1.250%, 08/01/19		500		495
1.125%, 04/15/19		300		297
FNMA
6.625%, 11/15/30		300		422
2.625%, 09/06/24		1,252		1,269
2.125%, 04/24/26		200		193
1.875%, 12/28/20		131		130
1.750%, 06/20/19		300		299
1.650%, 01/27/20		300		298
1.500%, 07/30/20-06/22/20		927		915
1.375%, 01/28/19		200		199
1.000%, 08/28/19		250		246
Tennessee Valley Authority
5.250%, 09/15/39		200		270
2.875%, 02/01/27		250		255

Total U.S. Government Agency Obligations (Cost $12,204) (000)				12,314

MUNICIPAL BONDS — 0.5%
Bay Area Toll Authority RB
6.263%, 04/01/49		200		296
California State GO
7.300%, 10/01/39		325		485
California State, Department of Water Resources, Power Supply Revenue RB
2.000%, 05/01/22		100		98
Florida State, Hurricane Catastrophe Fund RB
2.995%, 07/01/20		150		152
Illinois State 1060118 GO
5.100%, 06/01/33		1,710		1,707
New Jersey State, Transportation Trust Fund RB
5.754%, 12/15/28		1,050		1,205
Permanent University Fund - Texas A&M University System RB
3.660%, 07/01/47		100		100
South Carolina State, Public Service Authority RB
2.388%, 12/01/23		100		95
State of California GO
7.500%, 04/01/34		1,225		1,814
State of Illinois GO
5.877%, 03/01/19		495		510


Description	Face Amount (000)		Value (000)

State of Wisconsin RB
3.154%, 05/01/27	$	200	$	203
University of California RB
4.858%, 05/15/12		200		223
University of Texas System RB
3.354%, 08/15/47		250		251

Total Municipal Bonds (Cost $6,943) (000)				7,139


	Shares
PREFERRED STOCK — 0.0%
Education Management* (G) (J)		1,550,903		2

Total Preferred Stock (Cost $188) (000)				2

SHORT-TERM INVESTMENT — 8.0%
State Street Institutional Treasury Money Market Fund, Cl Institutional, 1.160% (I)		126,387,186		126,387

Total Short-Term Investment (Cost $126,387) (000)				126,387

Total Investments In Securities — 110.0% (Cost $1,730,901) (000)			$	1,739,527

Percentages are based on net assets of $1,581,880 (000).

A list of the open forward foreign currency contracts held by the Fund at December 31, 2017 is as follows (000):

Counterparty

Maturity
Date

Currency
to Deliver

Currency to
Receive

Unrealized
Appreciation
(Depreciation)

HSBC

01/22/18

USD

182

PEN

592

Barclays PLC

01/23/18

GBP

874

USD

1,155

(26

)

BNP Paribas

02/12/18

USD

748

KRW

811,000

BNP Paribas

02/12/18

KRW

1,701,000

USD

1,527

(68

)

HSBC

03/02/18

USD

1,093

IDR

14,886,000

Barclays PLC

03/14/18

INR

25,410

USD

391

)

HSBC

03/20/18

USD

821

COP

2,474,000

BNP Paribas

04/24/18

USD

437

ARS

8,460

(10

)

Barclays PLC

05/10/18

USD

898

MYR

3,794

Barclays PLC

06/13/18

USD

802

KZT

276,000

(51

)

*	Non-income producing security.

(1)

In U.S. dollars unless otherwise indicated.

(A)

The accompanying notes are an integral part of the financial statements.

130


THE KP FUNDS		December 31, 2017


KP Fixed Income Fund

"accredited investors." The total value of these securities at December 31, 2017 was $182,338 (000) and represents 11.5% of Net Assets.

(B)

Zero coupon security. The rate reported on the Schedule of Investments is the effective yield at time of purchase.

(C)

Security in default on interest payments.

(D)

Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets.

(E)

Step Bonds-The rate reflected on the Schedule of Investments is the effective yield on December 31, 2017. The coupon on a step bond changes on a specified date.

(F)

Unsettled bank loan. Interest rate not available.

(G)

(H)

Credit-linked note.

(I)

The rate reported is the 7-day effective yield as of December 31, 2017.

(J)

Currently, no stated interest rate.

AID — Agency for International Development

ARS — Argentine Peso

BRL — Brazilian Real

Cl — Class

COP — Colombian Peso

EGP — Egyptian Pound

FFCB — Federal Farm Credit Bank

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GBP — British Pound Sterling

GEL — Georgian Lari

GHS — Ghana Cedi

GNMA — Government National Mortgage Association

GO — General Obligation

ICE — Intercontinental Exchange

IDR — Indonesian Rupiah

INR — Indian Rupee

KRW — South Korean Won

KZT — Kazakhstan Tenge

LIBOR — London Interbank Offered Rate

LKR — Sri Lanka Rupee

LLC — Limited Liability Company

LP — Limited Partnership

Ltd. — Limited

MXN — Mexican Peso

MYR — Malaysian Ringgit

NGN — Nigerian Naira

PEN — Peruvian Sol

PIK — Payment-in-Kind

PLC — Public Limited Company

RB — Revenue Bond

RUB — Russian Ruble

Ser — Series

TBA — To Be Announced

TLB — Term Loan B

USD — U.S. Dollar

UYU — Uruguayan Peso

VAR — Variable

ZAR — South African Rand

The following is a list of the level of inputs used as of December 31, 2017, in valuing the Fund’s investments and other financial instruments carried at value (000):


Investments in Securities	Level 1		Level 2			Level 3^		Total
Corporate Obligations	$	—	$	399,153		$	238	$	399,391
U.S. Treasury Obligations		—		389,688			—		389,688
Mortgage-Backed Securities		—		387,147			—		387,147
Loan Participations		—		157,736			—		157,736
Sovereign Debt		—		144,577			—		144,577
Asset-Backed Securities		—		100,122			—		100,122
Commercial Paper		—		15,024			—		15,024
U.S. Government Agency Obligations		—		12,314			—		12,314
Municipal Bonds		—		7,139			—		7,139
Preferred Stock		—		—			2		2
Short-Term Investment		126,387		—			—		126,387

Total Investments in Securities	$	126,387	$	1,612,900		$	240	$	1,739,527

Other Financial Instruments	Level 1		Level 2			Level 3		Total
Forward Foreign Currency Contracts**
Unrealized Appreciation	$	—	$	57		$	—	$	57
Unrealized Depreciation		—		(108	)		—		(108	)

Total Other Financial Instruments	$	—	$	(51	)	$	—	$	(51	)

**	Forward foreign currency contracts are valued at the unrealized appreciation/(depreciation) on the instrument.

For the year ended December 31, 2017, there were no transfers between Level 2 and Level 1 assets and liabilities. For the year ended December 31, 2017, there were no transfers between Level 2 and Level 3 assets and liabilities or Level 1 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year.

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

131


THE KP FUNDS		December 31, 2017

STATEMENTS OF ASSETS AND LIABILITIES (000)


	KP Retirement Path 2015 Fund		KP Retirement Path 2020 Fund		KP Retirement Path 2025 Fund		KP Retirement Path 2030 Fund

Assets:
Affiliated Investments at Cost	$	298,681	$	615,588	$	778,219	$	776,445
Unaffiliated Investments at Cost		116,625		201,960		195,309		136,938

Affiliated Investments at Fair Value	$	321,189	$	672,974	$	863,447	$	874,195
Unaffiliated Investments at Fair Value		118,522		204,606		197,925		139,240
Receivable for Investment Securities Sold		164		385		—		—
Dividends Receivable		56		90		72		37
Receivable for Capital Shares Sold		—		—		110		1,001
Prepaid Expenses		13		25		29		27

Total Assets		439,944		878,080		1,061,583		1,014,500

Liabilities:
Payable for Capital Shares Redeemed		162		380		—		—
Due to Custodian		56		90		72		37
Payable due to Administrator		9		19		23		22
Payable due to Adviser		5		8		8		5
Chief Compliance Officer Fees Payable		1		2		2		2
Payable for Investment Securities Purchased		—		—		104		995
Other Accrued Expenses		24		47		61		60

Total Liabilities		257		546		270		1,121

Net Assets	$	439,687	$	877,534	$	1,061,313	$	1,013,379

NET ASSETS:
Paid-in Capital	$	409,239	$	802,606	$	951,768	$	890,514
Accumulated Net Realized Gain on Investments		6,043		14,896		21,701		22,813
Net Unrealized Appreciation on Investments		24,405		60,032		87,844		100,052

Net Assets	$	439,687	$	877,534	$	1,061,313	$	1,013,379

Institutional Class Shares:
Net Assets	$	439,687	$	877,534	$	1,061,313	$	1,013,379
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		41,828,773		80,507,874		94,624,249		88,546,087
Net Asset Value, Offering and Redemption Price Per Share*	$	10.51	$	10.90	$	11.22	$	11.44

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

132


THE KP FUNDS		December 31, 2017

STATEMENTS OF ASSETS AND LIABILITIES (000)


	KP Retirement Path 2035 Fund		KP Retirement Path 2040 Fund		KP Retirement Path 2045 Fund

Assets:
Affiliated Investments at Cost	$	900,158	$	849,451	$	634,648
Unaffiliated Investments at Cost		104,972		68,347		39,851

Affiliated Investments at Fair Value	$	1,025,803	$	973,452	$	725,913
Unaffiliated Investments at Fair Value		107,398		70,302		40,990
Receivable for Capital Shares Sold		58		73		—
Dividends Receivable		12		—		—
Receivable for Investment Securities Sold		—		—		153
Prepaid Expenses		30		28		20

Total Assets		1,133,301		1,043,855		767,076

Liabilities:
Payable for Investment Securities Purchased		53		67		—
Payable due to Administrator		24		22		16
Due to Custodian		12		—		—
Payable due to Adviser		4		3		2
Chief Compliance Officer Fees Payable		2		2		2
Payable for Capital Shares Redeemed		—		—		149
Other Accrued Expenses		66		63		46

Total Liabilities		161		157		215

Net Assets	$	1,133,140	$	1,043,698	$	766,861

NET ASSETS:
Paid-in Capital	$	977,700	$	891,483	$	654,954
Accumulated Net Realized Gain on Investments		27,369		26,259		19,503
Net Unrealized Appreciation on Investments		128,071		125,956		92,404

Net Assets	$	1,133,140	$	1,043,698	$	766,861

Institutional Class Shares:
Net Assets	$	1,133,140	$	1,043,698	$	766,861
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		97,037,691		88,246,039		64,427,032
Net Asset Value, Offering and Redemption Price Per Share*	$	11.68	$	11.83	$	11.90

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

133


THE KP FUNDS		December 31, 2017

STATEMENTS OF ASSETS AND LIABILITIES (000)


	KP Retirement Path 2050 Fund		KP Retirement Path 2055 Fund		KP Retirement Path 2060 Fund

Assets:
Affiliated Investments at Cost	$	348,269	$	95,877	$	20,285
Unaffiliated Investments at Cost		19,953		5,450		1,125

Affiliated Investments at Fair Value	$	393,543	$	106,225	$	21,848
Unaffiliated Investments at Fair Value		20,483		5,531		1,138
Receivable for Investment Securities Sold		22		267		—
Receivable for Capital Shares Sold		—		—		16
Prepaid Expenses		10		3		1

Total Assets		414,058		112,026		23,003

Liabilities:
Payable for Capital Shares Redeemed		20		267		—
Payable due to Administrator		9		2		—
Payable due to Adviser		1		—		—
Chief Compliance Officer Fees Payable		1		—		—
Payable for Investment Securities Purchased		—		—		16
Other Accrued Expenses		26		9		2

Total Liabilities		57		278		18

Net Assets	$	414,001	$	111,748	$	22,985

NET ASSETS:
Paid-in Capital	$	357,577	$	98,661	$	20,969
Accumulated Net Realized Gain on Investments		10,620		2,658		440
Net Unrealized Appreciation on Investments		45,804		10,429		1,576

Net Assets	$	414,001	$	111,748	$	22,985

Institutional Class Shares:
Net Assets	$	414,001	$	111,748	$	22,985
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		34,481,941		9,292,907		1,915,847
Net Asset Value, Offering and Redemption Price Per Share*	$	12.01	$	12.03	$	12.00

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

134


THE KP FUNDS		December 31, 2017

STATEMENTS OF ASSETS AND LIABILITIES (000)


	KP Large Cap Equity Fund		KP Small Cap Equity Fund		KP International Equity Fund			KP Fixed Income Fund

Assets:
Investments at Cost	$	1,804,577	$	932,116	$	1,240,558		$	1,730,901
Cost of Foreign Currency		—		—		8,549			91

Investments at Fair Value	$	2,247,867	$	1,077,583	$	1,458,639		$	1,739,527
Cash		68		36		18			2,328
Foreign Currency at Value		—		—		8,706			92
Dividends and Interest Receivable		2,112		867		1,749			9,604
Receivable for Investment Securities Sold		1,394		1,177		459			55,842
Due from Broker on Futures Contracts		680		325		1,519			—
Receivable for Capital Shares Sold		404		256		249			354
Reclaims Receivable		187		8		2,317			22
Unrealized Appreciation on Forward Foreign Currency Contracts		—		—		—			57
Prepaid Expenses		7		6		6			5

Total Assets		2,252,719		1,080,258		1,473,662			1,807,831

Liabilities:
Payable for Investment Securities Purchased		716		4,382		1,944			224,946
Payable due to Sub-Advisers		387		379		365			253
Payable for Capital Shares Redeemed		294		87		191			342
Payable due to Adviser		86		41		55			61
Variation Margin Payable on Futures Contracts		73		72		—			—
Payable due to Administrator		71		34		45			50
Chief Compliance Officer Fees Payable		2		1		1			1
Unrealized Depreciation on Forward Foreign Currency Contracts		—		—		—			108
Accrued Foreign Capital Gains Tax		—		—		643			—
Other Accrued Expenses		173		104		450			190

Total Liabilities		1,802		5,100		3,694			225,951

Net Assets	$	2,250,917	$	1,075,158	$	1,469,968		$	1,581,880

NET ASSETS:
Paid-in Capital	$	1,807,177	$	915,372	$	1,252,330		$	1,574,849
Undistributed/(Distributions in Excess of) Net Investment Income		63		222		(4,491	)		18
Accumulated Net Realized Gain/(Loss) on Investments		160		14,057		4,226			(1,559	)
Net Unrealized Appreciation on Investments		443,290		145,467		218,081			8,626
Net Unrealized Appreciation on Futures Contracts		224		40		357			—
Net Unrealized Appreciation/(Depreciation) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		3		—		108			(54	)
Accumulated Foreign Capital Gains Tax on Appreciated Securities		—		—		(643	)		—

Net Assets	$	2,250,917	$	1,075,158	$	1,469,968		$	1,581,880

Institutional Class Shares:
Net Assets	$	2,250,917	$	1,075,158	$	1,469,968		$	1,581,880
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)†		173,360,438		89,033,705		131,208,560			157,435,062
Net Asset Value, Offering and Redemption Price Per Share*	$	12.98	$	12.08	$	11.20		$	10.05

†

Shares are presented unrounded.

The net asset value is calculated by dividing the unrounded net assets by the unrounded shares.

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

135


THE KP FUNDS		For the year ended December 31, 2017

STATEMENTS OF OPERATIONS (000)


	KP Retirement Path 2015 Fund		KP Retirement Path 2020 Fund		KP Retirement Path 2025 Fund		KP Retirement Path 2030 Fund
Investment Income:
Income Distributions from Affiliated Registered Investment Companies	$	6,311	$	12,683	$	15,516	$	15,181
Income Distributions from Unaffiliated Registered Investment Companies		2,384		4,124		4,151		3,099

Total Investment Income		8,695		16,807		19,667		18,280

Expenses:
Administration Fees		113		209		242		228
Investment Advisory Fees		57		90		82		56
Trustees' Fees		12		22		25		24
Chief Compliance Officer Fees		4		7		9		8
Custodian Fees/Transfer Agent Fees		43		82		95		90
Professional Fees		31		58		67		63
Printing Fees		25		49		59		56
Registration Fees		21		36		46		44
Other Fees		8		15		16		15

Total Expenses		314		568		641		584

Net Investment Income		8,381		16,239		19,026		17,696

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Affiliated Investments		8,354		12,756		12,996		11,836
Net Realized Gain on Unaffiliated Investments		254		437		494		131
Distributions of Realized Gains from Affiliated Registered Investment Company Shares		6,139		15,364		23,163		25,894
Distributions of Realized Gains from Unaffiliated Registered Investment Company Shares		324		583		670		610
Net Change in Unrealized Appreciation on Affiliated Investments		18,024		45,719		69,549		80,578
Net Change in Unrealized Appreciation on Unaffiliated Investments		1,088		1,891		2,254		2,408

Net Realized and Unrealized Gain on Investments		34,183		76,750		109,126		121,457

Net Increase in Net Assets Resulting from Operations	$	42,564	$	92,989	$	128,152	$	139,153

The accompanying notes are an integral part of the financial statements.

136


THE KP FUNDS		For the year ended December 31, 2017

STATEMENTS OF OPERATIONS (000)


	KP Retirement Path 2035 Fund		KP Retirement Path 2040 Fund			KP Retirement Path 2045 Fund

Investment Income:
Income Distributions from Affiliated Registered Investment Companies	$	17,418	$	16,283		$	11,996
Income Distributions from Unaffiliated Registered Investment Companies		2,623		1,817			955

Total Investment Income		20,041		18,100			12,951

Expenses:
Administration Fees		252		230			165
Investment Advisory Fees		42		27			16
Trustees' Fees		26		24			17
Chief Compliance Officer Fees		9		8			6
Custodian Fees/Transfer Agent Fees		100		91			66
Professional Fees		70		64			46
Printing Fees		63		58			42
Registration Fees		48		44			33
Other Fees		16		15			9

Total Expenses		626		561			400

Net Investment Income		19,415		17,539			12,551

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Affiliated Investments		12,134		10,988			7,119
Net Realized Gain/(Loss) on Unaffiliated Investments		16		(73	)		68
Distributions of Realized Gains from Affiliated Registered Investment Company Shares		32,384		31,900			24,458
Distributions of Realized Gains from Unaffiliated Registered Investment Company Shares		580		419			244
Net Change in Unrealized Appreciation on Affiliated Investments		103,261		102,560			77,031
Net Change in Unrealized Appreciation on Unaffiliated Investments		2,612		2,005			1,142

Net Realized and Unrealized Gain on Investments		150,987		147,799			110,062

Net Increase in Net Assets Resulting from Operations	$	170,402	$	165,338		$	122,613

The accompanying notes are an integral part of the financial statements.

137


THE KP FUNDS		For the year ended December 31, 2017

STATEMENTS OF OPERATIONS (000)


	KP Retirement Path 2050 Fund		KP Retirement Path 2055 Fund		KP Retirement Path 2060 Fund
Investment Income:
Income Distributions from Affiliated Registered Investment Companies	$	6,445	$	1,738	$	356
Income Distributions from Unaffiliated Registered Investment Companies		525		139		29

Total Investment Income		6,970		1,877		385

Expenses:
Administration Fees		85		21		4
Trustees' Fees		9		2		—
Investment Advisory Fees		8		2		—
Chief Compliance Officer Fees		3		1		—
Custodian Fees/Transfer Agent Fees		34		8		2
Professional Fees		24		6		1
Printing Fees		22		6		1
Registration Fees		19		6		1
Other Fees		5		1		—

Total Expenses		209		53		9

Net Investment Income		6,761		1,824		376

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Affiliated Investments		3,315		668		527
Net Realized Gain on Unaffiliated Investments		160		56		10
Distributions of Realized Gains from Affiliated Registered Investment Company Shares		13,530		3,660		746
Distributions of Realized Gains from Unaffiliated Registered Investment Company Shares		121		32		7
Net Change in Unrealized Appreciation on Affiliated Investments		39,837		9,363		1,267
Net Change in Unrealized Appreciation on Unaffiliated Investments		372		70		12

Net Realized and Unrealized Gain on Investments		57,335		13,849		2,569

Net Increase in Net Assets Resulting from Operations	$	64,096	$	15,673	$	2,945

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

138


THE KP FUNDS		For the year ended December 31, 2017

STATEMENTS OF OPERATIONS (000)


	KP Large Cap Equity Fund			KP Small Cap Equity Fund			KP International Equity Fund			KP Fixed Income Fund
Investment Income:
Dividend Income	$	35,003		$	9,172		$	36,888		$	920
Interest Income		—			—			—			39,964
Less: Foreign Taxes Withheld		(64	)		(8	)		(3,109	)		—

Total Investment Income		34,939			9,164			33,779			40,884

Expenses:
Sub-Advisory Fees		4,065			4,041			4,203			2,680
Investment Advisory Fees		905			449			611			641
Administration Fees		733			364			495			519
Trustees' Fees		24			13			16			13
Chief Compliance Officer Fees		10			5			7			4
Custodian Fees/Transfer Agent Fees		199			150			704			136
Professional Fees		85			42			57			57
Printing Fees		47			23			31			32
Registration Fees		39			16			7			55
Other Fees		55			43			349			203

Total Expenses		6,162			5,146			6,480			4,340

Net Investment Income		28,777			4,018			27,299			36,544

Net Realized and Unrealized Gain/(Loss) on Investments:
Net Realized Gain on Investments		111,264			102,911			54,727			4,429
Net Realized Gain/(Loss) on Futures Contracts		3,615			923			3,306			(9	)
Net Realized Gain/(Loss) on Forward Contracts and Foreign Currency Transactions		(4	)		—			578			(370	)
Net Change in Unrealized Appreciation on Investments		272,364			55,529			246,265			18,237
Net Change in Unrealized Appreciation/(Depreciation) on Futures Contracts		331			237			486			(64	)
Net Change in Unrealized Appreciation/(Depreciation) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		13			—			243			(154	)
Change in Accrued Foreign Capital Gains Tax on Appreciated Securities		—			—			(401	)		—

Net Realized and Unrealized Gain on Investments		387,583			159,600			305,204			22,069

Net Increase in Net Assets Resulting from Operations	$	416,360		$	163,618		$	332,503		$	58,613

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

139


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2015 Fund						KP Retirement Path 2020 Fund
	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2017			Year ended December 31, 2016
Operations:
Net Investment Income	$	8,381		$	8,126		$	16,239		$	13,349
Net Realized Gain on Affiliated and Unaffiliated Investments		8,608			1,529			13,193			1,514
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		6,463			4,007			15,947			6,752
Net Change in Unrealized Appreciation on Affiliated and Unaffiliated Investments		19,112			11,306			47,610			21,525

Net Increase in Net Assets Resulting from Operations		42,564			24,968			92,989			43,140

Distributions to Shareholders:
Investment Income		(9,790	)		(9,953	)		(19,678	)		(16,115	)
Net Realized Gains		(8,432	)		(4,267	)		(12,841	)		(6,369	)

Total Distributions to Shareholders		(18,222	)		(14,220	)		(32,519	)		(22,484	)

Capital Share Transactions:
Institutional Shares:
Issued		20,469			38,233			86,658			88,216
Reinvestment of Distributions		18,221			14,219			32,519			22,484
Redeemed		(85,648	)		(84,189	)		(74,224	)		(66,991	)

Increase/(Decrease) in Net Assets from Capital Share Transactions		(46,958	)		(31,737	)		44,953			43,709

Total Increase/(Decrease) in Net Assets		(22,616	)		(20,989	)		105,423			64,365

Net Assets:
Beginning of Year		462,303			483,292			772,111			707,746

End of Year	$	439,687		$	462,303		$	877,534		$	772,111

Undistributed Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		1,953			3,836			8,096			8,792
Reinvestment of Distributions		1,717			1,418			2,958			2,214
Redeemed		(8,246	)		(8,375	)		(6,980	)		(6,639	)

Net Increase/(Decrease) in Shares Outstanding from Share Transactions		(4,576	)		(3,121	)		4,074			4,367

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

140


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2025 Fund						KP Retirement Path 2030 Fund
	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2017			Year ended December 31, 2016
Operations:
Net Investment Income	$	19,026		$	14,476		$	17,696		$	13,292
Net Realized Gain on Affiliated and Unaffiliated Investments		13,490			1,441			11,967			1,160
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		23,833			7,573			26,504			7,134
Net Change in Unrealized Appreciation on Affiliated and Unaffiliated Investments		71,803			27,563			82,986			30,249

Net Increase in Net Assets Resulting from Operations		128,152			51,053			139,153			51,835

Distributions to Shareholders:
Investment Income		(24,188	)		(17,023	)		(23,531	)		(15,171	)
Net Realized Gains		(13,568	)		(8,060	)		(13,250	)		(8,679	)

Total Distributions to Shareholders		(37,756	)		(25,083	)		(36,781	)		(23,850	)

Capital Share Transactions:
Institutional Shares:
Issued		130,169			116,073			134,916			115,617
Reinvestment of Distributions		37,756			25,082			36,781			23,850
Redeemed		(39,741	)		(43,150	)		(34,582	)		(32,733	)

Increase in Net Assets from Capital Share Transactions		128,184			98,005			137,115			106,734

Total Increase in Net Assets		218,580			123,975			239,487			134,719

Net Assets:
Beginning of Year		842,733			718,758			773,892			639,173

End of Year	$	1,061,313		$	842,733		$	1,013,379		$	773,892

Undistributed Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		11,949			11,583			12,265			11,636
Reinvestment of Distributions		3,339			2,458			3,187			2,339
Redeemed		(3,653	)		(4,301	)		(3,125	)		(3,278	)

Net Increase in Shares Outstanding from Share Transactions		11,635			9,740			12,327			10,697

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

141


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2035 Fund						KP Retirement Path 2040 Fund
	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2017			Year ended December 31, 2016
Operations:
Net Investment Income	$	19,415		$	14,290		$	17,539		$	12,534
Net Realized Gain on Affiliated and Unaffiliated Investments		12,150			1,326			10,915			1,426
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		32,964			8,023			32,319			7,291
Net Change in Unrealized Appreciation on Affiliated and Unaffiliated Investments		105,873			36,650			104,565			34,783

Net Increase in Net Assets Resulting from Operations		170,402			60,289			165,338			56,034

Distributions to Shareholders:
Investment Income		(26,789	)		(15,935	)		(24,829	)		(13,659	)
Net Realized Gains		(14,563	)		(10,502	)		(13,825	)		(10,209	)

Total Distributions to Shareholders		(41,352	)		(26,437	)		(38,654	)		(23,868	)

Capital Share Transactions:
Institutional Shares:
Issued		154,433			131,864			156,449			130,554
Reinvestment of Distributions		41,352			26,437			38,654			23,868
Redeemed		(37,597	)		(38,161	)		(40,860	)		(35,450	)

Increase in Net Assets from Capital Share Transactions		158,188			120,140			154,243			118,972

Total Increase in Net Assets		287,238			153,992			280,927			151,138

Net Assets:
Beginning of Year		845,902			691,910			762,771			611,633

End of Year	$	1,133,140		$	845,902		$	1,043,698		$	762,771

Undistributed Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		13,876			13,338			13,942			13,235
Reinvestment of Distributions		3,510			2,587			3,239			2,333
Redeemed		(3,362	)		(3,872	)		(3,617	)		(3,590	)

Net Increase in Shares Outstanding from Share Transactions		14,024			12,053			13,564			11,978

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

142


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2045 Fund						KP Retirement Path 2050 Fund
	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2017			Year ended December 31, 2016
Operations:
Net Investment Income	$	12,551		$	8,775		$	6,761		$	4,149
Net Realized Gain on Affiliated and Unaffiliated Investments		7,187			829			3,475			336
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		24,702			5,126			13,651			2,442
Net Change in Unrealized Appreciation on Affiliated and Unaffiliated Investments		78,173			24,715			40,209			11,698

Net Increase in Net Assets Resulting from Operations		122,613			39,445			64,096			18,625

Distributions to Shareholders:
Investment Income		(18,256	)		(9,281	)		(9,852	)		(4,419	)
Net Realized Gains		(9,454	)		(7,428	)		(4,674	)		(3,080	)

Total Distributions to Shareholders		(27,710	)		(16,709	)		(14,526	)		(7,499	)

Capital Share Transactions:
Institutional Shares:
Issued		140,447			112,696			109,506			81,707
Reinvestment of Distributions		27,710			16,708			14,527			7,499
Redeemed		(32,035	)		(29,789	)		(17,190	)		(15,001	)

Increase in Net Assets from Capital Share Transactions		136,122			99,615			106,843			74,205

Total Increase in Net Assets		231,025			122,351			156,413			85,331

Net Assets:
Beginning of Year		535,836			413,485			257,588			172,257

End of Year	$	766,861		$	535,836		$	414,001		$	257,588

Undistributed Net Investment Income	$	—		$	39		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		12,444			11,444			9,642			8,265
Reinvestment of Distributions		2,307			1,636			1,200			731
Redeemed		(2,831	)		(3,026	)		(1,503	)		(1,511	)

Net Increase in Shares Outstanding from Share Transactions		11,920			10,054			9,339			7,485

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

143


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Retirement Path 2055 Fund						KP Retirement Path 2060 Fund
	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2017			Year ended December 31, 2016
Operations:
Net Investment Income	$	1,824		$	883		$	376		$	148
Net Realized Gain/(Loss) on Affiliated and Unaffiliated Investments		724			(209	)		537			(197	)
Distributions of Realized Gains from Affiliated and Unaffiliated Registered Investment Company Shares		3,692			505			753			85
Net Change in Unrealized Appreciation on Affiliated and Unaffiliated Investments		9,433			2,531			1,279			597

Net Increase in Net Assets Resulting from Operations		15,673			3,710			2,945			633

Distributions to Shareholders:
Investment Income		(2,656	)		(940	)		(544	)		(157	)
Net Realized Gains		(935	)		(476	)		(370	)		(99	)

Total Distributions to Shareholders		(3,591	)		(1,416	)		(914	)		(256	)

Capital Share Transactions:
Institutional Shares:
Issued		47,091			28,855			14,049			6,088
Reinvestment of Distributions		3,591			1,416			914			256
Redeemed		(5,835	)		(4,834	)		(3,106	)		(3,372	)

Increase in Net Assets from Capital Share Transactions		44,847			25,437			11,857			2,972

Total Increase in Net Assets		56,929			27,731			13,888			3,349

Net Assets:
Beginning of Year		54,819			27,088			9,097			5,748

End of Year	$	111,748		$	54,819		$	22,985		$	9,097

Undistributed Net Investment Income	$	—		$	—		$	—		$	—

Share Transactions:
Institutional Shares:
Issued		4,142			2,927			1,231			614
Reinvestment of Distributions		296			138			75			25
Redeemed		(509	)		(494	)		(275	)		(342	)

Net Increase in Shares Outstanding from Share Transactions		3,929			2,571			1,031			297

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

144


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP Large Cap Equity Fund						KP Small Cap Equity Fund
	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2017			Year ended December 31, 2016
Operations:
Net Investment Income	$	28,777		$	22,108		$	4,018		$	7,050
Net Realized Gain on Investments and Futures Contracts		114,879			30,821			103,834			11,118
Net Realized Loss on Foreign Currency Transactions		(4	)		(5	)		—			—
Net Change in Unrealized Appreciation on Investments and Futures Contracts		272,695			84,571			55,766			130,810
Net Change in Unrealized Appreciation/(Depreciation) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		13			(2	)		—			—

Net Increase in Net Assets Resulting from Operations		416,360			137,493			163,618			148,978

Distributions to Shareholders:
Investment Income		(29,727	)		(22,148	)		(5,537	)		(7,022	)
Net Realized Gains		(114,518	)		(33,245	)		(88,899	)		—

Total Distributions to Shareholders		(144,245	)		(55,393	)		(94,436	)		(7,022	)

Capital Share Transactions:
Institutional Shares:
Issued		556,932			255,927			156,258			130,410
Reinvestment of Distributions		144,245			55,394			94,435			7,022
Redeemed		(199,003	)		(156,489	)		(175,532	)		(129,425	)

Increase in Net Assets from Capital Share Transactions		502,174			154,832			75,161			8,007

Total Increase in Net Assets		774,289			236,932			144,343			149,963

Net Assets:
Beginning of Year		1,476,628			1,239,696			930,815			780,852

End of Year	$	2,250,917		$	1,476,628		$	1,075,158		$	930,815

Undistributed Net Investment Income	$	63		$	449		$	222		$	767

Share Transactions:
Institutional Shares:
Issued		46,225			23,953			13,147			13,210
Reinvestment of Distributions		10,965			4,879			7,755			624
Redeemed		(15,767	)		(14,288	)		(14,823	)		(12,661	)

Net Increase in Shares Outstanding from Share Transactions		41,423			14,544			6,079			1,173

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

145


THE KP FUNDS

STATEMENTS OF CHANGES IN NET ASSETS (000)


	KP International Equity Fund						KP Fixed Income Fund
	Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2017			Year ended December 31, 2016
Operations:
Net Investment Income	$	27,299		$	24,690		$	36,544		$	23,773
Net Realized Gain/(Loss) on Investments and Futures Contracts		58,033			(25,243	)		4,420			8,970
Net Realized Gain/(Loss) on Forward Contracts and Foreign Currency Transactions		578			(753	)		(370	)		(94	)
Net Change in Unrealized Appreciation on Investments and Futures Contracts		246,751			38,085			18,173			5,582
Net Change in Unrealized Appreciation/(Depreciation) on Forward Contracts and Foreign Currency Transactions and Translation of other Assets and Liabilities Denominated in Foreign Currencies		243			(29	)		(154	)		75
Change in Accrued Foreign Capital Gains Tax on Appreciated Securities		(401	)		—			—			—

Net Increase in Net Assets Resulting from Operations		332,503			36,750			58,613			38,306

Distributions to Shareholders:
Investment Income		(33,624	)		(23,849	)		(37,093	)		(23,968	)
Net Realized Gains		(6,402	)		—			(461	)		(10,691	)

Total Distributions to Shareholders		(40,026	)		(23,849	)		(37,554	)		(34,659	)

Capital Share Transactions:
Institutional Shares:
Issued		262,294			247,397			588,784			253,012
Reinvestment of Distributions		40,026			23,848			37,554			34,659
Redeemed		(357,559	)		(78,329	)		(134,858	)		(142,299	)

Increase/(Decrease) in Net Assets from Capital Share Transactions		(55,239	)		192,916			491,480			145,372

Total Increase in Net Assets		237,238			205,817			512,539			149,019

Net Assets:
Beginning of Year		1,232,730			1,026,913			1,069,341			920,322

End of Year	$	1,469,968		$	1,232,730		$	1,581,880		$	1,069,341

Undistributed/(Distributions in Excess of) Net Investment Income	$	(4,491	)	$	(1,055	)	$	18		$	216

Share Transactions:
Institutional Shares:
Issued		25,765			28,040			58,589			24,893
Reinvestment of Distributions		3,589			2,696			3,739			3,509
Redeemed		(36,183	)		(8,871	)		(13,378	)		(13,957	)

Net Increase/(Decrease) in Shares Outstanding from Share Transactions		(6,829	)		21,865			48,950			14,445

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

146


THE KP FUNDS

FINANCIAL HIGHLIGHTS

For the year or period ended December 31,

For a share outstanding throughout the periods


	Net Asset Value, Beginning of Year or Period		Net Investment Income†		Net Realized and Unrealized Gain/ (Loss) on Investments			Total from Operations			Distributions from Investment Income			Distributions from Net Realized Capital Gains			Total Distributions			Net Asset Value, End of Year or Period		Total Return‡			Net Assets End of Year or Period (000)		Ratio of Expenses to Average Net Assets††			Ratio of Net Investment Income to Average Net Assets			Portfolio Turnover‡

*KP Retirement Path 2015 Fund - Institutional Shares**
2017	$	9.96	$	0.20	$	0.80		$	1.00		$	(0.24	)	$	(0.21	)	$	(0.45	)	$	10.51		10.03	%	$	439,687		0.07	%		1.89	%		28	%
2016	$	9.76	$	0.17	$	0.34		$	0.51		$	(0.22	)	$	(0.09	)	$	(0.31	)	$	9.96		5.24	%	$	462,303		0.08	%		1.69	%		15	%
2015	$	10.07	$	0.15	$	(0.13	)	$	0.02		$	(0.20	)	$	(0.13	)	$	(0.33	)	$	9.76		0.14	%	$	483,292		0.08	%		1.45	%		24	%
2014@	$	10.00	$	0.18	$	0.20		$	0.38		$	(0.24	)	$	(0.07	)	$	(0.31	)	$	10.07		3.82	%	$	522,066		0.10	%		1.81	%		23	%

*KP Retirement Path 2020 Fund - Institutional Shares**
2017	$	10.10	$	0.21	$	1.01		$	1.22		$	(0.25	)	$	(0.17	)	$	(0.42	)	$	10.90		12.04	%	$	877,534		0.07	%		1.98	%		25	%
2016	$	9.82	$	0.18	$	0.40		$	0.58		$	(0.21	)	$	(0.09	)	$	(0.30	)	$	10.10		5.92	%	$	772,111		0.08	%		1.79	%		13	%
2015	$	10.11	$	0.16	$	(0.17	)	$	(0.01	)	$	(0.20	)	$	(0.08	)	$	(0.28	)	$	9.82		(0.10	)%	$	707,746		0.07	%		1.56	%		19	%
2014@	$	10.00	$	0.19	$	0.21		$	0.40		$	(0.25	)	$	(0.04	)	$	(0.29	)	$	10.11		3.96	%	$	679,151		0.09	%		1.92	%		11	%

*KP Retirement Path 2025 Fund - Institutional Shares**
2017	$	10.15	$	0.22	$	1.26		$	1.48		$	(0.26	)	$	(0.15	)	$	(0.41	)	$	11.22		14.59	%	$	1,061,313		0.07	%		2.00	%		19	%
2016	$	9.81	$	0.19	$	0.46		$	0.65		$	(0.21	)	$	(0.10	)	$	(0.31	)	$	10.15		6.64	%	$	842,733		0.07	%		1.87	%		10	%
2015	$	10.11	$	0.17	$	(0.21	)	$	(0.04	)	$	(0.21	)	$	(0.05	)	$	(0.26	)	$	9.81		(0.35	)%	$	718,758		0.07	%		1.64	%		12	%
2014@	$	10.00	$	0.20	$	0.20		$	0.40		$	(0.26	)	$	(0.03	)	$	(0.29	)	$	10.11		3.92	%	$	650,003		0.09	%		1.98	%		8	%

*KP Retirement Path 2030 Fund - Institutional Shares**
2017	$	10.15	$	0.22	$	1.50		$	1.72		$	(0.27	)	$	(0.16	)	$	(0.43	)	$	11.44		16.93	%	$	1,013,379		0.07	%		1.98	%		18	%
2016	$	9.76	$	0.19	$	0.52		$	0.71		$	(0.20	)	$	(0.12	)	$	(0.32	)	$	10.15		7.32	%	$	773,892		0.07	%		1.91	%		9	%
2015	$	10.09	$	0.17	$	(0.22	)	$	(0.05	)	$	(0.22	)	$	(0.06	)	$	(0.28	)	$	9.76		(0.52	)%	$	639,173		0.07	%		1.70	%		9	%
2014@	$	10.00	$	0.20	$	0.17		$	0.37		$	(0.26	)	$	(0.02	)	$	(0.28	)	$	10.09		3.78	%	$	580,413		0.08	%		2.02	%		8	%

*KP Retirement Path 2035 Fund - Institutional Shares**
2017	$	10.19	$	0.22	$	1.71		$	1.93		$	(0.28	)	$	(0.16	)	$	(0.44	)	$	11.68		18.93	%	$	1,133,140		0.06	%		1.96	%		16	%
2016	$	9.75	$	0.19	$	0.58		$	0.77		$	(0.20	)	$	(0.13	)	$	(0.33	)	$	10.19		7.91	%	$	845,902		0.07	%		1.89	%		9	%
2015	$	10.10	$	0.18	$	(0.25	)	$	(0.07	)	$	(0.23	)	$	(0.05	)	$	(0.28	)	$	9.75		(0.70	)%	$	691,910		0.06	%		1.71	%		7	%
2014@	$	10.00	$	0.20	$	0.19		$	0.39		$	(0.27	)	$	(0.02	)	$	(0.29	)	$	10.10		3.86	%	$	620,600		0.08	%		2.01	%		7	%

*KP Retirement Path 2040 Fund - Institutional Shares**
2017	$	10.21	$	0.22	$	1.85		$	2.07		$	(0.29	)	$	(0.16	)	$	(0.45	)	$	11.83		20.28	%	$	1,043,698		0.06	%		1.94	%		15	%
2016	$	9.75	$	0.18	$	0.61		$	0.79		$	(0.19	)	$	(0.14	)	$	(0.33	)	$	10.21		8.14	%	$	762,771		0.07	%		1.86	%		8	%
2015	$	10.10	$	0.17	$	(0.25	)	$	(0.08	)	$	(0.22	)	$	(0.05	)	$	(0.27	)	$	9.75		(0.73	)%	$	611,633		0.06	%		1.68	%		7	%
2014@	$	10.00	$	0.20	$	0.20		$	0.40		$	(0.27	)	$	(0.03	)	$	(0.30	)	$	10.10		3.91	%	$	543,274		0.08	%		2.02	%		8	%

*KP Retirement Path 2045 Fund - Institutional Shares**
2017	$	10.20	$	0.22	$	1.92		$	2.14		$	(0.29	)	$	(0.15	)	$	(0.44	)	$	11.90		21.00	%	$	766,861		0.06	%		1.93	%		14	%
2016	$	9.74	$	0.19	$	0.60		$	0.79		$	(0.18	)	$	(0.15	)	$	(0.33	)	$	10.20		8.15	%	$	535,836		0.07	%		1.89	%		9	%
2015	$	10.09	$	0.18	$	(0.25	)	$	(0.07	)	$	(0.22	)	$	(0.06	)	$	(0.28	)	$	9.74		(0.66	)%	$	413,485		0.06	%		1.71	%		9	%
2014@	$	10.00	$	0.21	$	0.17		$	0.38		$	(0.27	)	$	(0.02	)	$	(0.29	)	$	10.09		3.76	%	$	354,753		0.08	%		2.06	%		8	%

*KP Retirement Path 2050 Fund - Institutional Shares**
2017	$	10.24	$	0.23	$	1.97		$	2.20		$	(0.29	)	$	(0.14	)	$	(0.43	)	$	12.01		21.52	%	$	414,001		0.06	%		2.02	%		13	%
2016	$	9.75	$	0.20	$	0.60		$	0.80		$	(0.18	)	$	(0.13	)	$	(0.31	)	$	10.24		8.25	%	$	257,588		0.07	%		1.98	%		10	%
2015	$	10.09	$	0.19	$	(0.26	)	$	(0.07	)	$	(0.22	)	$	(0.05	)	$	(0.27	)	$	9.75		(0.70	)%	$	172,257		0.06	%		1.82	%		9	%
2014@	$	10.00	$	0.22	$	0.16		$	0.38		$	(0.27	)	$	(0.02	)	$	(0.29	)	$	10.09		3.76	%	$	124,388		0.08	%		2.19	%		10	%

The accompanying notes are an integral part of the financial statements.

147


THE KP FUNDS

FINANCIAL HIGHLIGHTS

For the year or period ended December 31,

For a share outstanding throughout the periods


	Net Asset Value, Beginning of Year or Period		Net Investment Income†		Net Realized and Unrealized Gain/ (Loss) on Investments			Total from Operations			Distributions from Investment Income			Distributions from Net Realized Capital Gains			Return of Capital			Total Distributions			Net Asset Value, End of Year or Period		Total Return‡			Net Assets End of Year or Period (000)		Ratio of Expenses to Average Net Assets††			Ratio of Net Investment Income to Average Net Assets			Portfolio Turnover‡

*KP Retirement Path 2055 Fund - Institutional Shares**
2017	$	10.22	$	0.26	$	1.94		$	2.20		$	(0.29	)	$	(0.10	)	$	—		$	(0.39	)	$	12.03		21.59	%	$	111,748		0.06	%		2.24	%		15	%
2016	$	9.70	$	0.22	$	0.58		$	0.80		$	(0.18	)	$	(0.10	)	$	—		$	(0.28	)	$	10.22		8.28	%	$	54,819		0.07	%		2.26	%		16	%
2015	$	10.07	$	0.23	$	(0.30	)	$	(0.07	)	$	(0.21	)	$	(0.09	)	$	—		$	(0.30	)	$	9.70		(0.66	)%	$	27,088		0.06	%		2.19	%		21	%
2014@	$	10.00	$	0.24	$	0.15		$	0.39		$	(0.27	)	$	(0.05	)	$	—		$	(0.32	)	$	10.07		3.81	%	$	12,658		0.10	%		2.44	%		28	%

*KP Retirement Path 2060 Fund - Institutional Shares**
2017	$	10.27	$	0.28	$	1.94		$	2.22		$	(0.29	)	$	(0.20	)	$	—		$	(0.49	)	$	12.00		21.66	%	$	22,985		0.07	%		2.43	%		27	%
2016	$	9.78	$	0.21	$	0.59		$	0.80		$	(0.18	)	$	(0.13	)	$	—		$	(0.31	)	$	10.27		8.18	%	$	9,097		0.07	%		2.10	%		51	%
2015	$	10.12	$	0.22	$	(0.28	)	$	(0.06	)	$	(0.22	)	$	(0.06	)	$	—		$	(0.28	)	$	9.78		(0.60	)%	$	5,748		0.06	%		2.09	%		100	%
2014@	$	10.00	$	0.20	$	0.19	^	$	0.39		$	(0.27	)	$	—		$	—		$	(0.27	)	$	10.12		3.92	%	$	2,452		0.15	%		1.98	%		340	%

*KP Large Cap Equity Fund - Institutional Shares**
2017	$	11.19	$	0.18	$	2.49		$	2.67		$	(0.17	)	$	(0.71	)	$	—		$	(0.88	)	$	12.98		23.84	%	$	2,250,917		0.31	%		1.47	%		41	%
2016	$	10.56	$	0.18	$	0.88		$	1.06		$	(0.17	)	$	(0.26	)	$	—		$	(0.43	)	$	11.19		10.04	%	$	1,476,628		0.34	%		1.65	%		50	%
2015	$	10.82	$	0.15	$	0.17		$	0.32		$	(0.15	)	$	(0.43	)	$	—		$	(0.58	)	$	10.56		2.91	%	$	1,239,696		0.35	%		1.38	%		126	%
2014@	$	10.00	$	0.16	$	0.96		$	1.12		$	(0.15	)	$	(0.15	)	$	—		$	(0.30	)	$	10.82		11.21	%	$	1,142,880		0.35	%		1.62	%		126	%

*KP Small Cap Equity Fund - Institutional Shares**
2017	$	11.22	$	0.05	$	1.97		$	2.02		$	(0.06	)	$	(1.10	)	$	—		$	(1.16	)	$	12.08		17.95	%	$	1,075,158		0.53	%		0.41	%		100	%
2016	$	9.55	$	0.08	$	1.68		$	1.76		$	(0.09	)	$	—		$	—		$	(0.09	)	$	11.22		18.38	%	$	930,815		0.53	%		0.86	%		91	%
2015	$	10.32	$	0.07	$	(0.55	)	$	(0.48	)	$	(0.07	)	$	(0.22	)	$	—	⁽¹⁾	$	(0.29	)	$	9.55		(4.73	)%	$	780,852		0.55	%		0.68	%		154	%
2014@	$	10.00	$	0.09	$	0.32		$	0.41		$	(0.09	)	$	—		$	—		$	(0.09	)	$	10.32		4.06	%	$	448,240		0.59	%		0.97	%		212	%

*KP International Equity Fund - Institutional Shares**
2017	$	8.93	$	0.21	$	2.37		$	2.58		$	(0.26	)	$	(0.05	)	$	—		$	(0.31	)	$	11.20		28.95	%	$	1,469,968		0.49	%		2.06	%		125	%
2016	$	8.84	$	0.20	$	0.07		$	0.27		$	(0.18	)	$	—		$	—		$	(0.18	)	$	8.93		3.03	%	$	1,232,730		0.49	%		2.22	%		23	%
2015	$	9.30	$	0.20	$	(0.46	)	$	(0.26	)	$	(0.19	)	$	—		$	(0.01	)	$	(0.20	)	$	8.84		(2.79	)%	$	1,026,913		0.50	%		2.13	%		21	%
2014@	$	10.00	$	0.26	$	(0.64	)	$	(0.38	)	$	(0.22	)	$	(0.08	)	$	(0.02	)	$	(0.32	)	$	9.30		(3.83	)%	$	940,105		0.54	%		2.61	%		115	%

*KP Fixed Income Fund - Institutional Shares**
2017	$	9.86	$	0.27	$	0.16		$	0.43		$	(0.24	)	$	—		$	—		$	(0.24	)	$	10.05		4.41	%	$	1,581,880		0.31	%		2.63	%		547	%
2016	$	9.79	$	0.24	$	0.16		$	0.40		$	(0.23	)	$	(0.10	)	$	—		$	(0.33	)	$	9.86		4.08	%	$	1,069,341		0.32	%		2.37	%		484	%
2015	$	10.00	$	0.21	$	(0.16	)	$	0.05		$	(0.21	)	$	(0.05	)	$	—	⁽¹⁾	$	(0.26	)	$	9.79		0.57	%	$	920,322		0.34	%		2.10	%		533	%
2014@	$	10.00	$	0.20	$	0.07		$	0.27		$	(0.18	)	$	(0.09	)	$	—		$	(0.27	)	$	10.00		2.68	%	$	825,908		0.36	%		1.99	%		496	%

*	Commenced operations on January 10, 2014.

@	For the period ended December 31, 2014. All ratios for the period have been annualized.

†	Per share calculations were performed using the average shares method.

††	Ratio does not include the expenses of the underlying funds, as applicable.

‡	Total return and portfolio turnover are for the period indicated and have not been annualized. Returns shown do not reflect the deduction of taxes that a shareholder would pay of Fund distributions or the redemption of Fund shares.

^	The amount shown for a share outstanding throughout the period does not accord with the aggregate net realized and unrealized losses on investments for the period because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the Fund.

(1)

Amount less than $0.01 per share.

Amounts designated as “—“ are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

148


THE KP FUNDS		December 31, 2017

NOTES TO FINANCIAL STATEMENTS

1. Organization

The KP Funds (the “Trust”), was organized on March 25, 2013 as a statutory trust under the laws of the Commonwealth of Massachusetts. The Trust is an open-end registered management investment company comprised of fourteen funds: KP Retirement Path 2015 Fund, KP Retirement Path 2020 Fund, KP Retirement Path 2025 Fund, KP Retirement Path 2030 Fund, KP Retirement Path 2035 Fund, KP Retirement Path 2040 Fund, KP Retirement Path 2045 Fund, KP Retirement Path 2050 Fund, KP Retirement Path 2055 Fund, and KP Retirement Path 2060 Fund (collectively, the “Target Date Funds”); and the KP Large Cap Equity Fund, KP Small Cap Equity Fund, KP International Equity Fund, and KP Fixed Income Fund (collectively, the “Asset Class Funds” and collectively with the Target Date Funds, the “Funds” and each a “Fund”). The investment objective of the Target Date Funds is to seek a balance of long-term capital growth, inflation protection, and current income. The investment objective of KP Large Cap Equity, KP Small Cap Equity and KP International Equity Funds is to seek long-term capital appreciation. The investment objective of KP Fixed Income Fund is to provide current income consistent with the preservation of capital. The Funds are diversified for purposes of the Investment Company Act of 1940, as amended (the “1940 Act”). The assets of each Fund of the Trust are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds are registered to offer Institutional Class Shares.

Callan LLC serves as the Funds’ investment adviser (the “Adviser”). The Adviser will engage a number of sub-advisers (the “Sub-Advisers”) to manage a portion of the Asset Class Funds’ assets. On September 3, 2013, the Trust was seeded with an issuance of 10,000 shares of the Institutional Class Shares of the KP Fixed Income Fund at an aggregate purchase price of $100,000. The Funds commenced operations on January 10, 2014.

2. Significant Accounting Policies

The following are significant accounting policies, which are consistently followed in the preparation of its financial statements of the Funds. The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board (“FASB”).

Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the fair value of assets, the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and such differences could be material.

Security Valuation — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on an exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm ET if a security’s primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Such methodologies generally consider such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. On the first day a new debt security purchase is recorded, if a price is not available on the automated pricing feeds from our primary and secondary pricing vendors nor is it available from an independent broker, the security may be valued at its purchase price. Each day thereafter, the debt security will be valued according to the Trust’s Fair Value Procedures until an independent source can be secured. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, provided that it is determined the amortized cost continues to approximate fair value. Should existing credit, liquidity or interest rate conditions in the relevant markets and issuer specific circumstances suggest that amortized cost does not approximate fair value, then the amortized cost method may not be used. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.

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THE KP FUNDS		December 31, 2017

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Securities for which market prices are not available through the above methods are valued in accordance with Fair Value Procedures established by the Funds’ Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a Fair Value Pricing Committee (the “Committee”) designated by the Funds’ Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been delisted from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; or the security’s primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. As of December 31, 2017, KP Large Cap Equity, KP International Equity and KP Fixed Income Funds had securities valued in accordance with fair value procedures. Refer to the schedule of investments for further details.

For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security’s last trade and the time at which the Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates its net asset value if an event that could materially affect the value of those securities (a “Significant Event”) has occurred between the time of the security’s last close and the time that the Fund calculates net asset value. A Significant Event may relate to a single issuer or to an entire market sector. If the Adviser of the Fund becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates its net asset value, it may request that a Committee meeting be called.

KP International Equity Fund uses MarkIt Fair Value (“MarkIt”) as a third party fair valuation vendor. MarkIt provides a fair value for foreign securities held by KP International Equity Fund based on certain factors and methodologies (involving, generally, tracking valuation correlations between the U.S. market and each non-U.S. security) applied by MarkIt in the event that there is a movement in the U.S. market that exceeds a specific threshold established by the Committee. The Committee establishes a “confidence interval” which is used to determine the level of correlation between the value of a foreign security and movements in the U.S. market before a particular security is fair valued when the threshold is exceeded. In the event that the threshold established by the Committee is exceeded on a specific day, KP International Equity Fund values its non-U.S. securities that exceed the applicable “confidence interval” based upon the fair values provided by MarkIt. In such event, it is not necessary to hold a Committee meeting. In the event that the Adviser believes that the fair values provided by MarkIt are not reliable, the Adviser may contact SEI Global Fund Services (the “Administrator”) to request that a meeting of the Committee be held.

If a local market in which KP International Equity Fund owns securities is closed for one or more days, the Fund shall value all securities held in that corresponding currency based on the fair value prices provided by MarkIt using the predetermined confidence interval discussed above.

In accordance with the authoritative guidance on fair value measurement under U.S. GAAP, the Funds disclose fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

•

Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;

•

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board, etc.); and

•

Level 3 — Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).

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THE KP FUNDS		December 31, 2017

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement. For the year ended December 31, 2017, there have been no significant changes to the Funds’ fair value methodologies.

Federal Income Taxes — It is each Fund’s intention to continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to shareholders. Accordingly, no provision for Federal income taxes has been made in the financial statements.

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last 3 open tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

KP International Equity Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. KP International Equity Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. Tax is monitoring and accruing foreign capital cap gains for $643 (000), please refer to the Statement of Assets and Liabilities.

As of and during the year ended December 31, 2017, 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 Statements of Operations. During the year ended December 31, 2017 the Funds did not incur any interest or penalties.

Security Transactions and Investment Income — Security transactions are accounted for on trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sales of investment securities are based on the specific identification method. Dividend income is recorded on the ex-dividend date, and interest income is recognized on the accrual basis from settlement date and includes the amortization of premiums and the accretion of discount calculated using the effective interest method. Realized gains (losses) on paydowns of mortgage-backed and asset-backed securities are recorded as an adjustment to interest income.

Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Funds generally bifurcate that portion of realized gains (losses) on investments in debt securities which is attributed to changes in foreign exchange rates from that which is due to changes in market prices of debt securities. These gains and losses are included in net realized and gains and losses on investments and net change in unrealized appreciation (depreciation) on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.

Forward Foreign Currency Exchange Contracts — The Funds may enter into forward foreign currency exchange contracts to protect the value of securities held and related receivables and payables against changes in future foreign exchange rates. A forward currency contract is an agreement between two parties to buy and sell currency at a set price on a future date. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked-to-market daily using the current forward rate and the change in market value is recorded by the Funds as unrealized gain or loss. The Funds recognize realized gains or losses when the contract is closed, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Any realized or unrealized gains (losses) during the year are presented on the Statements of Operations. Refer to each Fund’s Schedule of Investments for details regarding open forward foreign currency contracts.

151


THE KP FUNDS		December 31, 2017

For the year ended December 31, 2017, the average balances of forward foreign currency exchange contracts were as follows (000):


	KP International Equity Fund			KP Fixed Income Fund
Average Monthly Notional Contracts Purchased	$	(2,718	)	$	(3,256	)
Average Monthly Notional Contracts Sold		4,538			4,235

Futures Contracts — To the extent consistent with its investment objective and strategies, the Funds may use futures contracts for tactical hedging purposes as well as to enhance the Fund’s returns. Initial margin deposits of cash or securities are made upon entering into futures contracts. The contracts are marked to market daily and the resulting changes in value are accounted for as unrealized gains and losses. Variation margin payments are paid or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the amount invested in the contract.

Risks of entering into futures contracts include the possibility that there will be an imperfect price correlation between the futures and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a position prior to its maturity date. Third, the futures contract involves the risk that a Fund could lose more than the original margin deposit required to initiate a futures transaction.

Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. Refer to each Fund’s Schedule of Investments for details regarding open futures contracts as of December 31, 2017, if applicable.

For the year ended December 31, 2017, the average monthly notional amount of futures contracts held were as follows (000):


	KP Large Cap Equity Fund		KP Small Cap Equity Fund		KP International Equity Fund		KP Fixed Income Fund
Average Monthly Notional Value Balance Long	$	22,484	$	10,223	$	16,982	$	—
Average Monthly Notional Value Balance Short		—		—		—		(1,901	)

Master Netting Arrangements — A fund is subject to various netting arrangements with select counterparties (“Master Agreements”). Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Since different types of transactions have different mechanics and are sometimes traded out of different legal entities of a particular counterparty organization, each type of transaction may be covered by a different Master Agreement, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a fund to close out and net its total exposure to a specific counterparty entity in the event of a default with respect to all the transactions governed under a single agreement with a specific counterparty entity.

Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Securities and U.S. dollar cash are generally the preferred forms of collateral. Securities and cash pledged as collateral are reflected as assets in the Statement of Assets and Liabilities as either a component of investments at value (securities) or deposits due from counterparties (cash). Cash collateral received is not typically held in a segregated account and as such is reflected as a liability in the Statement of Assets and Liabilities as deposits due to counterparties. The market value of any securities received as collateral is not reflected as a component of net asset value. A fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.

It is the Funds’ policy to present the variation margin of the futures contracts separately on the Statements of Assets and Liabilities as the Funds do not have master netting agreements with the counterparties to the futures contracts. Refer to each Fund’s Schedule of Investments for details regarding futures contracts as of December 31, 2017, if applicable.

152


THE KP FUNDS		December 31, 2017

International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) generally govern OTC financial derivative transactions entered into by a fund and select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add additional counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third party custodian.

As of December 31, 2017, there were no securities pledged as collateral for financial derivative instruments as governed by ISDA master agreements.

The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged for the Funds as of December 31, 2017 (000):


	Financial Derivative Assets				Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Total Over the Counter		Forward Foreign Currency Contracts			Total Over the Counter			Net Market Value of OTC Derivatives			Collateral (Received)/ Pledged		Net Exposures^†
Barclays PLC	$	38	$	38	$	(30	)	$	(30	)	$	8		$	—	$	8
BNP Paribas		13		13		(78	)		(78	)		(65	)		—		(65	)
HSBC		6		6		—			—			6			—		6

Total over the counter	$	57	$	57	$	(108	)	$	(108	)

†	Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity.

Investments in Real Estate Investment Trusts (“REITs”) — Dividend income is recorded based on the income included in distributions received from the REIT investments using published REIT reclassifications including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

Master Limited Partnerships (“MLPs”) — Entities commonly referred to as “MLPs” are generally organized under state law as limited partnerships or limited liability companies. The Fund intends to invest in MLPs receiving partnership taxation treatment under the Internal Revenue Code of 1986 (the “Code”), and whose interests or “units” are traded on securities exchanges like shares of corporate stock. To be treated as a partnership for U.S. federal income tax purposes, an MLP whose units are traded on a securities exchange must receive at least 90% of its income from qualifying sources such as interest, dividends, real estate rents, gain from the sale or disposition of real property, income and gain from mineral or natural resources activities, income and gain from the transportation or storage of certain fuels, and, in certain circumstances, income and gain from commodities or futures, forwards and options with respect to commodities. Mineral or natural resources activities include exploration, development, production, processing, mining, refining, marketing and transportation (including pipelines) of oil and gas, minerals, geothermal energy, fertilizer, timber or industrial source carbon dioxide. An MLP consists of a general partner and limited partners (or in the case of MLPs organized as limited liability companies, a managing member and members). The general partner or managing member typically controls the operations and management of the MLP and has an ownership stake in the partnership. The limited partners or members, through their ownership of limited partner or member interests, provide capital to the entity, are intended to have no role in the operation and management of the entity and receive cash distributions. The MLPs themselves generally do not pay U.S. federal income taxes. Thus, unlike investors in corporate securities, direct MLP investors are generally not subject to double taxation (i.e., corporate level tax and tax on corporate dividends). Currently, most MLPs operate in the energy and/or natural resources sector.

Expenses — Expenses of the Trust can be directly attributed to a particular Fund are borne by that Fund. Expenses which cannot be directly attributed to a Fund are apportioned among the Funds of the Trust based on

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THE KP FUNDS		December 31, 2017

the number of funds and/or relative net assets. In addition to the expenses reflected on the Statement of Operations, the Target Date Funds indirectly bear expenses of the underlying funds (registered investment companies) in which they invest. Because each of the underlying funds have varied expense and fee levels, and the Target Date Funds may own different amounts of shares of these funds at different times, the amount of fees and expenses incurred indirectly will vary.

Dividends and Distributions to Shareholders — The Funds will distribute substantially all of their net investment income and net realized capital gains, if any, at least annually. All dividends and distributions are recorded on ex-dividend date.

3. Administration, Distribution, Transfer Agent and Custody Agreements:

The Funds and the Administrator are parties to an Administration Agreement under which the Administrator provides administrative services to the Funds. For these services, the Administrator is paid an asset based fee which will vary depending on the average daily net assets of the Funds. For the year ended December 31, 2017, the Funds were charged as follows for these services (000):


Fund	Administration Fee		Fund	Administration Fee
KP Retirement Path 2015 Fund	$	113	KP Retirement Path 2050 Fund	$	85
KP Retirement Path 2020 Fund	$	209	KP Retirement Path 2055 Fund	$	21
KP Retirement Path 2025 Fund	$	242	KP Retirement Path 2060 Fund	$	4
KP Retirement Path 2030 Fund	$	228	KP Large Cap Equity Fund	$	733
KP Retirement Path 2035 Fund	$	252	KP Small Cap Equity Fund	$	364
KP Retirement Path 2040 Fund	$	230	KP International Equity Fund	$	495
KP Retirement Path 2045 Fund	$	165	KP Fixed Income Fund	$	519

The Trust and SEI Investments Distribution Co. (the “Distributor”) are parties to a Distribution Agreement. The Distributor receives no fees under the agreement.

Certain officers of the Trust are also officers of the Administrator, which is a wholly-owned subsidiary of SEI Investments Company, and/or the Distributor. Such officers are paid no fees by the Trust, other than the Chief Compliance Officer (“CCO”) as described below, for serving as officers of the Trust.

A portion of the services provided by the CCO and his staff, whom are employees of the Administrator, are paid for by the Trust as incurred. The services include regulatory oversight of the Trust’s Advisors and service providers as required by SEC regulations. The CCO’s services and fees have been approved by and are reviewed by the Board.

Northeast Retirement Services, Inc. serves as the Transfer Agent and dividend disbursing agent for the Funds under a transfer agency agreement.

State Street Bank and Trust Company serves as custodian (the “Custodian”) for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased and sold by the Funds.

4. Investment Advisory Agreements:

The Trust will pay to the Adviser as compensation for the Adviser’s services rendered, a fee (the “Advisory Fee”), determined in accordance with the calculation methodology set forth below. The Advisory Fee will be computed and accrued daily on an estimated basis by the Administrator and paid monthly in arrears based on a final determination by the Administrator.

The Advisory Fee payable by each Fund for any particular period will equal its pro rata portion of the total fee calculated by applying the Effective Fee Rate (defined below) to the Fund Asset Base (defined below), with each Fund’s pro rata portion determined by dividing the net assets of such Fund that are included in the Fund Asset Base by the total Fund Asset Base. The “Effective Fee Rate” will be determined by applying the following fee schedule to the Fund Asset Base:

0.05% on the first $4,000,000,000 of the Fund Asset Base;

0.04% on the Fund Asset Base between $4,000,000,001 and $7,000,000,000;

0.03% on the Fund Asset Base between $7,000,000,001 and $10,000,000,000; and

0.025% on the Fund Asset Base over $10,000,000,000.

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THE KP FUNDS		December 31, 2017

The “Fund Asset Base” equals the Core Funds Asset Base (defined below) plus the Target Date Funds Asset Base (defined below). The “Core Funds Asset Base” equals the sum of the net assets of each Core Fund. The “Target Date Funds Asset Base” equals the sum of the net assets of each Target Date Fund invested in investment companies to which the Adviser does not serve as investment adviser. The Fund Asset Base will be estimated daily and determined monthly based on the preceding methodology, in all cases based on the net assets as of the close of business on the preceding day in the case of the daily estimate and based on the average daily net assets average daily net assets in the month for the monthly calculation.

The Effective Fee Rate determined at the beginning of a month shall be used throughout the month for purposes of the daily estimate, and shall be recalculated for the month to make the final determination. In the event that the estimated daily fee for a Fund differs from the final determination by an amount sufficient to require an adjustment to the Net Asset Value of the Fund for any day, such difference shall be treated as a pricing error under the Trust’s policy.

The Adviser has entered into sub-advisory agreements with each sub-adviser under which the sub-adviser makes investment decisions for the assets it has been allocated to manage. For its service, each sub-adviser receives a fee based on the specified percentage of that portion of the Fund’s assets allocated to that sub-adviser. The total fees paid to sub-advisors directly are labeled as “Sub-Advisory Fees” on the Statements of Operations.

As of December 31, 2017, the Adviser has entered into investment sub-advisory agreements with the following parties:


Investment Sub-Adviser
KP Large Cap Equity Fund		KP International Equity Fund
AQR Capital Management, LLC		Acadian Asset Management LLC
MFS Investment Management		Marathon Asset Management LLP
PanAgora Asset Management, Inc.		MFS Investment Management
SSgA Funds Management, Inc.		Sprucegrove Investment Management Ltd.
T. Rowe Price		SSgA Funds Management, Inc.
KP Small Cap Equity Fund Aristotle Capital Boston, LLC CastleArk Management, LLC Columbus Circle Investors DePrince Race & Zollo, Inc. PENN Capital Management Company, Inc. SSgA Funds Management, Inc. Walthausen & Co., LLC		William Blair & Company, LLC
		KP Fixed Income Fund
		Credit Suisse Asset Management
		Loomis, Sayles & Company, LP
		Payden & Rygel
		SSgA Funds Management, Inc.

5. Investment Transactions:

For the year ended December 31, 2017, the Funds had purchases and sales of investment securities other than long-term U.S. Government and short-term securities as follows (000):


	Purchases		Sales and Maturities
KP Retirement Path 2015 Fund	$	124,333	$	174,845
KP Retirement Path 2020 Fund		249,029		204,687
KP Retirement Path 2025 Fund		309,163		176,166
KP Retirement Path 2030 Fund		304,859		160,589
KP Retirement Path 2035 Fund		325,849		156,873
KP Retirement Path 2040 Fund		298,570		133,285
KP Retirement Path 2045 Fund		237,999		92,324
KP Retirement Path 2050 Fund		157,201		44,510
KP Retirement Path 2055 Fund		58,765		11,997
KP Retirement Path 2060 Fund		16,315		4,245
KP Large Cap Equity Fund		1,174,910		789,014
KP Small Cap Equity Fund		933,677		934,399
KP International Equity Fund		1,602,480		1,671,684
KP Fixed Income Fund		1,077,157		929,742

155


THE KP FUNDS		December 31, 2017

In addition, KP Fixed Income Fund had purchases and sales of long-term U.S. Government securities of $6,105,027 (000) and $5,838,433 (000), respectively.

6. Federal Tax Information:

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. Federal income tax regulations, which may differ from those amounts determined under U.S. GAAP. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital, undistributed net investment income or accumulated net realized gain, as appropriate, in the period that the differences arise.

The following permanent differences primarily attributable to the reclassification of short-term capital gains from affiliated registered investment companies, excess distributions, REIT adjustments, PFIC gain reclass, investment in partnerships, reclass of distributions, non-deductible excise tax, paydowns and foreign exchange gain/(loss), have been reclassified to/from the following accounts during the year ended December 31, 2017 (000):


	Paid-in Capital			Undistributed Net Investment Income/(Loss)		Accumulated Net Realized Gain/(Loss)
KP Retirement Path 2015 Fund	$	—		$	1,409	$	(1,409	)
KP Retirement Path 2020 Fund		—			3,439		(3,439	)
KP Retirement Path 2025 Fund		—			5,162		(5,162	)
KP Retirement Path 2030 Fund		—			5,835		(5,835	)
KP Retirement Path 2035 Fund		—			7,374		(7,374	)
KP Retirement Path 2040 Fund		—			7,290		(7,290	)
KP Retirement Path 2045 Fund		—			5,666		(5,666	)
KP Retirement Path 2050 Fund		—			3,091		(3,091	)
KP Retirement Path 2055 Fund		—			832		(832	)
KP Retirement Path 2060 Fund		—			168		(168	)
KP Large Cap Equity Fund		—			564		(564	)
KP Small Cap Equity Fund		(1	)		974		(973	)
KP International Equity Fund		(9	)		2,889		(2,880	)
KP Fixed Income Fund		(1	)		351		(350	)

These reclassifications have no impact on net assets or net asset value per share of the Funds.

The tax character of dividends and distributions declared during the year or period ended December 31, 2017 and December 31, 2016 were as follows (000):


	Year		Ordinary Income		Long-Term Capital Gain		Return of Capital		Total
KP Retirement Path 2015 Fund		2017	$	9,850	$	8,372	$	—	$	18,222
		2016		10,031		4,189		—		14,220
KP Retirement Path 2020 Fund		2017		19,759		12,760		—		32,519
		2016		16,016		6,468		—		22,484
KP Retirement Path 2025 Fund		2017		24,305		13,451		—		37,756
		2016		16,914		8,169		—		25,083
KP Retirement Path 2030 Fund		2017		23,651		13,130		—		36,781
		2016		15,070		8,780		—		23,850
KP Retirement Path 2035 Fund		2017		26,847		14,505		—		41,352
		2016		15,839		10,598		—		26,437
KP Retirement Path 2040 Fund		2017		24,877		13,777		—		38,654
		2016		13,607		10,261		—		23,868
KP Retirement Path 2045 Fund		2017		18,295		9,415		—		27,710
		2016		9,281		7,428		—		16,709
KP Retirement Path 2050 Fund		2017		9,875		4,651		—		14,526
		2016		4,402		3,097		—		7,499
KP Retirement Path 2055 Fund		2017		2,677		914		—		3,591
		2016		946		470		—		1,416

156


THE KP FUNDS		December 31, 2017


	Year		Ordinary Income		Long-Term Capital Gain		Return of Capital		Total
KP Retirement Path 2060 Fund		2017	$	556	$	358	$	—	$	914
		2016		162		94		—		256
KP Large Cap Equity Fund		2017		45,798		98,447		—		144,245
		2016		22,452		32,941		—		55,393
KP Small Cap Equity Fund		2017		37,010		57,426		—		94,436
		2016		7,022		—		—		7,022
KP International Equity Fund		2017		35,737		4,289		—		40,026
		2016		23,849		—		—		23,849
KP Fixed Income Fund		2017		37,108		446		—		37,554
		2016		34,544		115		—		34,659

As of December 31, 2017, the components of distributable earnings/(accumulated losses) on a tax basis were as follows (000):


	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Post October Losses			Late-Year Loss Referral			Unrealized Appreciation		Other Temporary Differences			Total Distributable Earnings
KP Retirement Path 2015 Fund	$	—	$	8,086	$	—		$	—		$	22,360	$	2		$	30,448
KP Retirement Path 2020 Fund		—		17,850		—			—			57,078		—			74,928
KP Retirement Path 2025 Fund		—		24,365		—			—			85,177		3			109,545
KP Retirement Path 2030 Fund		—		25,491		—			—			97,373		1			122,865
KP Retirement Path 2035 Fund		—		30,293		—			—			125,147		—			155,440
KP Retirement Path 2040 Fund		—		28,916		—			—			123,299		—			152,215
KP Retirement Path 2045 Fund		—		21,871		—			—			90,035		1			111,907
KP Retirement Path 2050 Fund		—		11,837		—			—			44,587		—			56,424
KP Retirement Path 2055 Fund		—		3,179		—			—			9,910		(2	)		13,087
KP Retirement Path 2060 Fund		—		656		—			—			1,359		1			2,016
KP Large Cap Equity Fund		2,665		15,128		—			—			425,946		1			443,740
KP Small Cap Equity Fund		7,936		15,733		—			—			136,117		—			159,786
KP International Equity Fund		6,459		25,535		—			—			185,646		(2	)		217,638
KP Fixed Income Fund		—		—		(219	)		(68	)		7,232		86			7,031

Post-October losses represent losses realized on investment transactions from November 1, 2017 through December 31, 2017, that, in accordance with Federal income tax regulations, the Funds elect to defer and treat as having arisen in the following fiscal year.

For Federal income tax purposes, capital loss carryforwards may be carried forward and applied against all future capital gains. Under the Regulated Investment Company Modernization Act of 2010, Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. During the year ended December 31, 2017, the KP International Equity Fund utilized $21,564 of capital loss carryforwards to offset capital gains.

The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments for Federal income tax purposes at December 31, 2017, were as follows (000):


	Federal Tax Cost		Aggregated Gross Unrealized Appreciation		Aggregated Gross Unrealized Depreciation			Net Unrealized Appreciation
KP Retirement Path 2015 Fund	$	417,351	$	25,106	$	(2,746	)	$	22,360
KP Retirement Path 2020 Fund		820,502		61,440		(4,362	)		57,078
KP Retirement Path 2025 Fund		976,195		89,398		(4,221	)		85,177
KP Retirement Path 2030 Fund		916,062		101,091		(3,718	)		97,373
KP Retirement Path 2035 Fund		1,008,054		128,923		(3,776	)		125,147
KP Retirement Path 2040 Fund		920,455		126,376		(3,077	)		123,299
KP Retirement Path 2045 Fund		676,868		92,523		(2,488	)		90,035
KP Retirement Path 2050 Fund		369,439		45,992		(1,405	)		44,587
KP Retirement Path 2055 Fund		101,846		10,503		(593	)		9,910

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THE KP FUNDS		December 31, 2017


	Federal Tax Cost		Aggregated Gross Unrealized Appreciation		Aggregated Gross Unrealized Depreciation			Net Unrealized Appreciation
KP Retirement Path 2060 Fund	$	21,627	$	1,598	$	(239	)	$	1,359
KP Large Cap Equity Fund		1,842,126		472,496		(46,550	)		425,946
KP Small Cap Equity Fund		949,916		180,547		(44,430	)		136,117
KP International Equity Fund		1,296,430		243,487		(57,841	)		185,646
KP Fixed Income Fund		1,732,240		18,188		(10,955	)		7,233

7. Risks:

As with all mutual funds, a shareholder of a fund is subject to the risk that his or her investment could lose money. The Funds are subject to the principal risks noted below, any of which may adversely affect the fund’s net asset value and ability to meet its investment objective. A more complete description of principal risks is included in the prospectus under the heading “Principal Risks”.

Credit Risk — Credit risk is the risk that the issuer of a security or the counterparty to a contract will default or otherwise become unable to honor a financial obligation.

Credit-Linked Notes Risk — Credit-linked securities typically are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument or basket of derivative instruments, such as credit default swaps or interest rate swaps, to obtain exposure to certain fixed-income markets or to remain fully invested when more traditional income producing securities are not available. Like an investment in a bond, an investment in credit-linked notes represents the right to receive periodic income payments (in the form of distributions) and payment of principal at the end of the term of the security. However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential obligations to, the counterparties to certain derivative instruments entered into by the issuer of the credit-linked note. An investor holding a credit-linked note generally receives a fixed or floating coupon and the note’s par value upon maturity, unless the referenced creditor defaults or declares bankruptcy, in which case the investor receives the amount recovered. In effect, investors holding credit-linked notes receive a higher yield in exchange for assuming the risk of a specified credit event.

Fixed Income Market Risk — Fixed income market risk is the risk that the prices of a fund’s fixed income securities, including structured notes, respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar.

Interest Rate Risk — Interest rate risk is the risk that the value of fixed income securities, including U.S. Government securities, will fall due to rising interest rates.

Derivatives Risk — A fund’s use of futures contracts and forward contracts is subject to market risk, leverage risk, correlation risk and liquidity risk. Leverage risk is the risk that the use of leverage may amplify the effects of market volatility on a fund’s share price and may also cause a fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations. Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time and the price that a fund would like. A fund may have to lower the price, sell other securities instead or forego an investment opportunity, any of which could have a negative effect on a fund’s management or performance. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. A fund’s use of forward contracts is also subject to credit risk and valuation risk. Credit risk is described above. Valuation risk is the risk that the derivative may be difficult to value and/or valued incorrectly. Each of these risks could cause a fund to lose more than the principal amount invested in a derivative instrument.

Foreign Currency Risk — Foreign currency risk may arise from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Risks may also arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and are generally limited to the amount of unrealized gain on the contracts at the date of default.

Foreign Investment Risk — The risk that non-U.S. securities may be subject to additional risks due to, among other things, political, social and economic developments abroad, currency movements, and different legal, regulatory and tax environments. These additional risks may be heightened with respect to emerging market countries since political turmoil and rapid changes in economic conditions are more likely to occur in these countries.

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8. Indemnifications:

In the normal course of business, the Funds enter into contracts with third-party service providers that contain a variety of representations and warranties and that provide general indemnifications. Additionally, under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. The Funds’ maximum exposure under these arrangements is unknown, as it involves possible future claims that may or may not be made against the Funds. Based on experience, the Adviser is of the view that the risk of loss to the Funds in connection with the Funds’ indemnification obligation is remote; however, there can be no assurance that such obligations will not result in material liabilities that adversely affect the Funds.

9. Other:

At December 31, 2017, the percentage of total shares outstanding held by shareholders each owning 10% or greater of the aggregate total shares outstanding for each Fund, which are comprised of an omnibus account that are held on behalf of various individual shareholders, was as follows:


	Number of affiliated shareholders		% of outstanding shares held		Number of non-affiliated shareholders		% of outstanding shares held
KP Retirement Path 2015 Fund		—		0%		1		100%
KP Retirement Path 2020 Fund		—		0%		1		100%
KP Retirement Path 2025 Fund		—		0%		1		100%
KP Retirement Path 2030 Fund		—		0%		1		100%
KP Retirement Path 2035 Fund		—		0%		1		100%
KP Retirement Path 2040 Fund		—		0%		1		100%
KP Retirement Path 2045 Fund		—		0%		1		100%
KP Retirement Path 2050 Fund		—		0%		1		100%
KP Retirement Path 2055 Fund		—		0%		1		100%
KP Retirement Path 2060 Fund		—		0%		1		100%
KP Large Cap Equity Fund		5		77%		—		0%
KP Small Cap Equity Fund		2		24%		1		37%
KP International Equity Fund		5		79%		—		0%
KP Fixed Income Fund		6		90%		—		0%

10. Regulatory Matters:

In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, final rules) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amended Regulation S-X and require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. As of August 1, 2017, management has implemented the amendments to Regulation S-X, which did not have a material impact on the Funds’ financial statements and related disclosures or impact the Funds’ net assets or results of operations.

11. Subsequent Events:

The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no additional disclosures and/or adjustments were required to the financial statements.

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THE KP FUNDS		December 31, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of

The KP Funds and Shareholders of

KP Retirement Path 2015 Fund

KP Retirement Path 2020 Fund

KP Retirement Path 2025 Fund

KP Retirement Path 2030 Fund

KP Retirement Path 2035 Fund

KP Retirement Path 2040 Fund

KP Retirement Path 2045 Fund

KP Retirement Path 2050 Fund

KP Retirement Path 2055 Fund

KP Retirement Path 2060 Fund

KP Large Cap Equity Fund

KP Small Cap Equity Fund

KP International Equity Fund and

KP Fixed Income Fund:

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of KP Retirement Path 2015 Fund, KP Retirement Path 2020 Fund, KP Retirement Path 2025 Fund, KP Retirement Path 2030 Fund, KP Retirement Path 2035 Fund, KP Retirement Path 2040 Fund, KP Retirement Path 2045 Fund, KP Retirement Path 2050 Fund, KP Retirement Path 2055 Fund, KP Retirement Path 2060 Fund, KP Large Cap Equity Fund, KP Small Cap Equity Fund, KP International Equity Fund and KP Fixed Income Fund (constituting The KP Funds, hereafter collectively referred to as the "Funds") as of December 31, 2017, the related statements of operations for the year ended December 31, 2017, the statements of changes in net assets for each of the two years in the period ended December 31, 2017, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2017 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 27, 2018

We have served as the auditor of one or more investment companies in Callan LLC since 2013.

160

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TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)

Set forth below are the names, years of birth, position with the Trust, length of term of office, and the principal occupations for the last five years of each of the persons currently serving as Trustees and Officers of the Trust. Unless otherwise noted, the business address of each Trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456. Trustees who are deemed not to be “interested persons” of the Trust are referred to as “Independent Trustees.” Messrs. Nesher and Doran are Trustees who may be deemed to be “interested” persons of



Name and Year of Birth	Position with the Trust and Length of Time Served¹	Principal Occupation During the Past 5 Years
INTERESTED TRUSTEES^2,3

ROBERT A. NESHER (Born: 1946)	Chairman of the Board of Trustees (Since 1991)	SEI employee 1974 to present; currently performs various services on behalf of SEI Investments for which Mr. Nesher is compensated.
WILLIAM M. DORAN (Born: 1940)	Trustee (Since 1991)	Self-Employed Consultant since 2003. Partner at Morgan, Lewis & Bockius LLP (law firm) from 1976 to 2003. Counsel to the Trust, SEI Investments, SIMC, the Administrator and the Distributor.

1	Each Trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trust’s Declaration of Trust.

2	Denotes Trustees who may be deemed to be “interested” persons of the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Distributor and/or its affiliates.

3	Trustees oversee 14 funds in the KP Funds Trust.

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THE KP FUNDS		December 31, 2017

the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Trust’s Distributor. The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-855-457-3637. The following chart lists Trustees and Officers as of December 31, 2017.

Other Directorships
Held in the
Past Five Years⁴

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds SEI Insurance Products Trust and SEI Catholic Values Trust. Director of SEI Structured Credit Fund, LP, SEI Global Master Fund plc, SEI Global Assets Fund plc, SEI Global Investments Fund plc, SEI Investments – Global Funds Services, Limited, SEI Investments Global, Limited, SEI Investments (Europe) Ltd., SEI Investments – Unit Trust Management (UK) Limited, SEI Multi-Strategy Funds PLC and SEI Global Nominee Ltd.

Former Directorships: Trustee of SEI Liquid Asset Trust to 2016.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, The Advisors’ Inner Circle Fund III, Bishop Street Funds, Winton Diversified Opportunities Fund (closed-end investment company), Gallery Trust, Schroder Series Trust, Schroder Global Series Trust, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Insurance Products Trust and SEI Catholic Values Trust. Director of SEI Investments (Europe), Limited, SEI Investments – Global Funds Services, Limited, SEI Investments Global, Limited, SEI Investments (Asia), Limited, SEI Global Nominee Ltd. and SEI Investments – Unit Trust Management (UK) Limited. Director of the Distributor since 2003.

Former Directorships: Trustee of O’Connor EQUUS (closed-end investment company) to 2016. Trustee of SEI Liquid Asset Trust to 2016. Trustee of Winton Series Trust to 2017.

4	Directorships of Companies required to report to the securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., “public companies”) or other investment companies under the 1940 Act.

163


THE KP FUNDS		December 31, 2017

TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)



Name and Year of Birth	Position with the Trust and Length of Time Served¹	Principal Occupation During the Past 5 Years
INDEPENDENT TRUSTEES²

JOHN K. DARR (Born: 1944)	Trustee (Since 2008)	Retired. Chief Executive Officer, Office of Finance, Federal Home Loan Banks, from 1992 to 2007.
JOSEPH T. GRAUSE JR. (Born: 1952)	Trustee (Since 2011)	Self-employed consultant since January 2012. Director of Endowments and Foundations, Morningstar Investment Management, Morningstar, Inc., 2010 to 2011; Director of International Consulting and Chief Executive Officer of Morningstar Associates Europe Limited, Morningstar, Inc., 2007 to 2010; Country Manager – Morningstar UK Limited, Morningstar, Inc., 2005 to 2007.
MITCHELL A. JOHNSON (Born: 1942)	Trustee (Since 2005)	Retired. Private Investor since 1994.
BETTY L. KRIKORIAN (Born: 1943)	Trustee (Since 2005)	Vice President, Compliance, AARP Financial Inc. from 2008 to 2010. Self-Employed Legal and Financial Services Consultant since 2003.

1	Each Trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trust’s Declaration of Trust.

2	Trustees oversee 14 funds in the KP Funds Trust.

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Other Directorships
Held in the
Past Five Years³

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds. Director of Federal Home Loan Bank of Pittsburgh, Meals on Wheels, Lewes/Rehoboth Beach and West Rehoboth Land Trust.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds. Director of The Korea Fund, Inc.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Institutional Investments Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Insurance Products Trust and SEI Catholic Values Trust. Director, Federal Agricultural Mortgage Corporation (Farmer Mac) since 1997.

Former Directorships: Trustee of SEI Liquid Asset Trust to 2016.

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds.

3	Directorships of Companies required to report to the securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., “public companies”) or other investment companies under the 1940 Act.

165


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TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)



Name and Year of Birth	Position with the Trust and Length of Time Served¹	Principal Occupation During the Past 5 Years
INDEPENDENT TRUSTEES²

BRUCE R. SPECA (Born: 1956)	Trustee (Since 2011)	Global Head of Asset Allocation, Manulife Asset Management (subsidiary of Manulife Financial), 2010 to 2011; Executive Vice President – Investment Management Services, John Hancock Financial Services (subsidiary of Manulife Financial), 2003 to 2010.
GEORGE J. SULLIVAN, JR. (Born: 1942)	Trustee Lead Independent Trustee (Since 1999)	Retired since January 2012. Self-employed Consultant, Newfound Consultants Inc. April 1997 to December 2011.
OFFICERS

MICHAEL BEATTIE (Born: 1965)	President (Since 2011)	Director of Client Service, SEI Investments, since 2004.
JOHN BOURGEOIS (Born: 1973)	Assistant Treasurer (Since 2017)	Fund Accounting Manager, SEI Investments, since 2000.
STEPHEN CONNORS (Born: 1984)	Treasurer, Controller and Chief Financial Officer (Since 2015)	Director, SEI Investments, Fund Accounting since 2014. Audit Manager, Deloitte & Touche LLP, from 2011 to 2014.

1	Each Trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trust’s Declaration of Trust.

2	Trustees oversee 14 funds in the KP Funds Trust.

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Other Directorships
Held in the
Past Five Years³

Current Directorships: Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II and Bishop Street Funds.

Current Directorships: Trustee/ Director of State Street Navigator Securities Lending Trust, The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, SEI Structured Credit Fund, LP, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Insurance Products Trust and SEI Catholic Values Trust.

Former Directorships: Trustee of SEI Liquid Asset Trust to 2016. Member of the independent review committee for SEI’s Canadian-registered mutual funds.

None.

3	Directorships of Companies required to report to the securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., “public companies”) or other investment companies under the 1940 Act.

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THE KP FUNDS		December 31, 2017

TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)



Name and Year of Birth	Position with the Trust and Length of Time Served	Principal Occupation During the Past 5 Years
OFFICERS (continued)

DIANNE M. DESCOTEAUX (Born: 1977)	Vice President and Secretary (Since 2011)	Counsel at SEI Investments since 2010.
RUSSELL EMERY (Born: 1962)	Chief Compliance Officer (Since 2006)	Chief Compliance Officer of SEI Structured Credit Fund, LP since June 2007. Chief Compliance Officer of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, The Advisors’ Inner Circle Fund III, Winton Diversified Opportunities Fund (closed-end investment company), Gallery Trust, Schroder Series Trust, Schroder Global Series Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Daily Income Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Insurance Products Trust and SEI Catholic Values Trust. Chief Compliance Officer of O’Connor EQUUS (closed-end investment company) to 2016. Chief Compliance Officer of SEI Liquid Asset Trust to 2016. Chief Compliance Officer of Winton Series Trust to 2017.
ROBERT MORROW (Born: 1968)	Vice President (Since 2017)	Account Manager, SEI Investments, since 2007.
BRIDGET E. SUDALL (Born: 1980)	Anti-Money Laundering Compliance Officer and Privacy Officer (Since 2015)	Senior Associate and AML Officer, Morgan Stanley Alternative Investment Partners from April 2011 to March 2015.
LISA WHITTAKER (Born: 1978)	Vice President and Assistant Secretary (Since 2013)	Attorney, SEI Investments (2012-present). Associate Counsel and Compliance Officer, The Glenmede Trust Company, N.A. (2011-2012).

168


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Other Directorships
Held in the Past Five Years

None.

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DISCLOSURE OF FUND EXPENSES (Unaudited)

All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns.

Operating expenses such as these are deducted from the mutual fund‘s gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the mutual fund’s average net assets; this percentage is known as the mutual fund’s expense ratio.

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 invested on July 1, 2017 and held for the six-month period ended December 31, 2017.

The table on the next page illustrates your Fund’s costs in two ways:

• Actual Fund Return. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in your Fund, to estimate the expenses you paid over that period. Simply divide your actual starting account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

• Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other mutual funds. It assumes that your Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expense Paid During Period” column with those that appear in the same charts in the shareholder reports for other mutual funds.

NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown do not apply to your specific investment.

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DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)


	Beginning Account Value 7/1/2017		Ending Account Value 12/31/2017		Annualized Expense Ratios			Expenses Paid During Period*
KP Retirement Path 2015 Fund
Actual Fund Return	$	1,000.00	$	1,048.70		0.07	%	$	0.36
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2020 Fund
Actual Fund Return	$	1,000.00	$	1,058.50		0.07	%	$	0.36
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2025 Fund
Actual Fund Return	$	1,000.00	$	1,070.00		0.07	%	$	0.37
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2030 Fund
Actual Fund Return	$	1,000.00	$	1,079.90		0.07	%	$	0.37
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2035 Fund
Actual Fund Return	$	1,000.00	$	1,089.80		0.06	%	$	0.32
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2040 Fund
Actual Fund Return	$	1,000.00	$	1,095.50		0.06	%	$	0.32
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2045 Fund
Actual Fund Return	$	1,000.00	$	1,098.10		0.06	%	$	0.32
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31


	Beginning Account Value 7/1/2017		Ending Account Value 12/31/2017		Annualized Expense Ratios			Expenses Paid During Period*
KP Retirement Path 2050 Fund
Actual Fund Return	$	1,000.00	$	1,101.20		0.06	%	$	0.32
Hypothetical 5% Return	$	1,000.00	$	1,024.90		0.06	%	$	0.31
KP Retirement Path 2055 Fund
Actual Fund Return	$	1,000.00	$	1,101.70		0.07	%	$	0.37
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Retirement Path 2060 Fund
Actual Fund Return	$	1,000.00	$	1,101.80		0.07	%	$	0.37
Hypothetical 5% Return	$	1,000.00	$	1,024.85		0.07	%	$	0.36
KP Large Cap Equity Fund
Actual Fund Return	$	1,000.00	$	1,116.70		0.32	%	$	1.71
Hypothetical 5% Return	$	1,000.00	$	1,023.59		0.32	%	$	1.63
KP Small Cap Equity Fund
Actual Fund Return	$	1,000.00	$	1,109.30		0.53	%	$	2.82
Hypothetical 5% Return	$	1,000.00	$	1,022.53		0.53	%	$	2.70
KP International Equity Fund
Actual Fund Return	$	1,000.00	$	1,116.90		0.51	%	$	2.72
Hypothetical 5% Return	$	1,000.00	$	1,022.63		0.51	%	$	2.60
KP Fixed Income Fund
Actual Fund Return	$	1,000.00	$	1,018.20		0.31	%	$	1.58
Hypothetical 5% Return	$	1,000.00	$	1,023.64		0.31	%	$	1.58

*	Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

171


THE KP FUNDS		December 31, 2017

BOARD CONSIDERATIONS IN APPROVING AND RENEWING THE ADVISORY AND SUB-ADVISOR AGREEMENTS (Unaudited)

Board Considerations in Renewing the Advisory and Sub-Advisor Agreements for the Funds

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Funds’ advisory and sub-advisory agreements must be renewed at least annually after their initial two-year term: (i) by the vote of the Board of Trustees (the “Board” or the “Trustees”) of The KP Funds (the “Trust”) or by a vote of a majority of the shareholders of the Funds; and (ii) by the vote of a majority of the Trustees who are not parties to the agreements or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such renewal.

Board meetings were held on August 14, 2017 and November 15, 2017 to decide whether to renew the following agreements (the “Agreements”) for additional one-year terms:

•

the investment advisory agreement between Callan LLC (the “Adviser”) and the Trust, on behalf of the Funds;

•

the sub-advisory agreements between the Adviser and certain sub-advisers (each, a “Sub-Adviser” and together, the “Sub-Advisers”), pursuant to which the Sub-Advisers serve as investment sub-advisers to the Funds, as set forth in the following table:


Sub-Adviser		Fund(s)
AQR Capital Management, LLC		KP Large Cap Equity Fund
PanAgora Asset Management, Inc.		KP Large Cap Equity Fund
SSgA Funds Management, Inc.		KP Large Cap Equity Fund KP Small Cap Equity Fund KP International Equity Fund KP Fixed Income Fund
T. Rowe Price Associates, Inc.		KP Large Cap Equity Fund
Marathon Asset Management LLP		KP International Equity Fund
Columbus Circle Investors		KP Small Cap Equity Fund
MFS Investment Management		KP Large Cap Equity Fund KP International Equity Fund
DePrince Race & Zollo, Inc.		KP Small Cap Equity Fund
Walthausen & Co., LLC		KP Small Cap Equity Fund
CastleArk Management LLC		KP Small Cap Equity Fund
Acadian Asset Management LLC		KP International Equity Fund
Payden & Rygel		KP Fixed Income Fund
Loomis, Sayles & Company, L.P.		KP Fixed Income Fund
Aristotle Capital Boston, LLC		KP Small Cap Equity Fund
PENN Capital Management Company, Inc.		KP Small Cap Equity Fund

In preparation for the meetings, the Trustees requested that the Adviser and the Sub-Advisers furnish information necessary to evaluate the terms of the Agreements. Prior to the meetings, the Independent Trustees of the Funds met to review and discuss the information provided and submitted a request for additional information to the Adviser and the Sub-Advisers, and information was provided in response to this request. The Trustees used this information, as well as other information that the Adviser, the Sub-Advisers and other service providers of the Funds presented or submitted to the Board at the meetings and other meetings held during the prior year, to help them decide whether to renew the Agreements for an additional year.

Specifically, the Board requested and received written materials from the Adviser, the Sub-Advisers and other service providers of the Funds regarding: (i) the nature, extent and quality of the Adviser’s and the Sub-Advisers’ services; (ii) the Adviser’s and the Sub-Advisers’ investment management personnel; (iii) the Adviser’s and the Sub-Advisers’ operations and financial condition; (iv) the Adviser’s and the Sub-Advisers’ brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the Funds’ advisory fees paid to the Adviser and the Sub-Advisers and overall fees and operating expenses compared with peer groups of mutual funds; (vi) the level of the Adviser’s and the Sub-Advisers’ profitability from their relationships with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Advisers and their affiliates; (vii) the Adviser’s and the Sub-Advisers’ potential economies of scale; (viii) the Adviser’s and the Sub-Advisers’ compliance programs, including

172


THE KP FUNDS		December 31, 2017

BOARD CONSIDERATIONS IN APPROVING AND RENEWING THE ADVISORY AND SUB-ADVISOR AGREEMENTS (Unaudited) (Continued)

a description of material compliance matters and material compliance violations; (ix) the Adviser’s and the Sub-Advisers’ policies on and compliance procedures for personal securities transactions; and (x) the Funds’ performance compared with peer groups of mutual funds and the Funds’ benchmark indices.

Representatives from the Adviser and the Sub-Advisers, along with other Fund service providers, presented additional information and participated in question and answer sessions at the Board meetings to help the Trustees evaluate the Adviser’s and the Sub-Advisers’ services, fees and other aspects of the Agreements. The Independent Trustees received advice from independent counsel and met in executive sessions outside the presence of Fund management, the Adviser and the Sub-Advisers.

At the Board meetings, the Trustees, including all of the Independent Trustees, based on their evaluation of the information provided by the Adviser, the Sub-Advisers and other service providers of the Funds, renewed the Agreements. In considering the renewal of the Agreements, the Board considered various factors that they determined were relevant, including: (i) the nature, extent and quality of the services provided by the Adviser and the Sub-Advisers; (ii) the investment performance of the Funds and the Adviser and the Sub-Advisers; (iii) the costs of the services provided and profits realized by the Adviser and the Sub-Advisers from their relationships with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Advisers and their affiliates; (iv) the extent to which economies of scale are being realized by the Adviser and the Sub-Advisers; and (v) whether fee levels reflect such economies of scale for the benefit of Fund investors, as discussed in further detail below.

Nature, Extent and Quality of Services Provided by the Adviser and the Sub-Advisers

In considering the nature, extent and quality of the services provided by the Adviser and the Sub-Advisers, the Board reviewed the portfolio management services provided by the Adviser and the Sub-Advisers to the Funds, including the quality and continuity of the Adviser’s and the Sub-Advisers’ portfolio management personnel, the resources of the Adviser and the Sub-Advisers, and the Adviser’s and the Sub-Advisers’ compliance histories and compliance programs. The Trustees reviewed the terms of the Agreements. The Trustees also reviewed the Adviser’s and the Sub-Advisers’ investment and risk management approaches for the Funds. The Trustees considered that the Adviser supervises and monitors the performance of the Sub-Advisers. The most recent investment adviser registration forms (“Form ADV”) for the Adviser and the Sub-Advisers were provided to the Board, as were the responses of the Adviser and the Sub-Advisers to a detailed series of questions which included, among other things, information about the investment advisory services provided by the Adviser and the Sub-Advisers to the Funds.

The Trustees also considered other services provided to the Funds by the Adviser and the Sub-Advisers such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Funds’ investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. Based on the factors above, as well as those discussed below, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of the services provided to the Funds by the Adviser and the Sub-Advisers were sufficient to support renewal of the Agreements.

Investment Performance of the Funds, the Adviser and the Sub-Advisers

The Board was provided with regular reports regarding the Funds’ performance over various time periods, including since their inception, and information regarding the Funds’ performance since the Agreements were last renewed. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ performance to their benchmark indices and peer groups of mutual funds as classified by Lipper, an independent provider of investment company data, over various periods of time. Representatives from the Adviser and the Sub-Advisers provided information regarding and led discussions of factors impacting the performance of the Funds, outlining current market conditions and explaining their expectations and strategies for the future. The Trustees determined that the Funds’ performance was satisfactory, or, where the Funds’ performance was materially below their benchmarks and/or peer groups, the Trustees were satisfied by the reasons for the underperformance and/or the steps taken by the Adviser and the Sub-Advisers in an effort to improve the performance of the Funds. Based on this information, the Board concluded, within the context of its full deliberations, that the investment results that the Adviser and the Sub-Advisers had been able to achieve for the Funds were sufficient to support renewal of the Agreements.

173


THE KP FUNDS		December 31, 2017

BOARD CONSIDERATIONS IN APPROVING AND RENEWING THE ADVISORY AND SUB-ADVISOR AGREEMENTS (Unaudited) (Continued)

Costs of Advisory Services, Profitability and Economies of Scale

In considering the advisory fees payable by the Funds to the Adviser and the Sub-Advisers, the Trustees reviewed, among other things, a report of the advisory fees paid to the Adviser and the Sub-Advisers. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ net and gross expense ratios and advisory fees to those paid by peer groups of mutual funds as classified by Lipper. The Trustees reviewed the management fees charged by certain Sub-Advisers to other clients with comparable mandates. The Trustees considered any differences in management fees and took into account the respective demands, resources and complexity associated with the Funds and other client accounts as well as the extensive regulatory, compliance and tax regimes to which the Funds are subject. The Trustees also considered that the fees payable to the Sub-Advisers reflected arms-length negotiations between the Adviser and the Sub-Advisers. The Board concluded, within the context of its full deliberations, that the advisory fees were reasonable in light of the nature and quality of the services rendered by the Adviser and the Sub-Advisers.

The Trustees reviewed the costs of services provided by and the profits realized by the Adviser and the Sub-Advisers from their relationship with the Funds, including both direct benefits and indirect benefits, such as research and brokerage services received under soft dollar arrangements, accruing to the Adviser and the Sub-Advisers and their affiliates. The Trustees considered how the Adviser’s and the Sub-Advisers’ profitability was affected by factors such as their organizational structures and methods for allocating expenses. The Trustees concluded that the profit margins of the Adviser and the Sub-Advisers with respect to the management of the Funds were not unreasonable. The Board also considered the Adviser’s and the Sub-Advisers’ commitment to managing the Funds.

The Trustees considered the Adviser’s and Sub-Advisers’ views relating to economies of scale in connection with the Funds as Fund assets grow and the extent to which the benefits of any such economies of scale are shared with the Funds and Fund shareholders. The Board considered the existence of any economies of scale and whether those were passed along to the Funds’ shareholders through a graduated advisory fee schedule or other means, including fee waivers. The Trustees recognized that economies of scale are difficult to identify and quantify and are rarely identifiable on a fund-by-fund basis. Based on this evaluation, the Board concluded that the advisory fees were reasonable in light of the information that was provided to the Trustees by the Adviser and the Sub-Advisers with respect to economies of scale.

Renewal of the Agreements

Based on the Board’s deliberations and its evaluation of the information described above and other factors and information it believed relevant in the exercise of its reasonable business judgment, the Board, including all of the Independent Trustees, with the assistance of Fund counsel and Independent Trustees’ counsel, unanimously concluded that the terms of the Agreements, including the fees payable thereunder, were fair and reasonable and agreed to renew the Agreements for another year. In its deliberations, the Board did not identify any absence of information as material to its decision, or any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.

174


THE KP FUNDS		December 31, 2017

BOARD CONSIDERATIONS IN APPROVING AND RENEWING THE ADVISORY AND SUB-ADVISOR AGREEMENTS (Unaudited) (Continued)

Board Considerations in Approving the New Sub-Advisory Agreement for the KP International Equity Fund

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Fund’s sub-advisory agreement must be approved: (i) by a vote of a majority of the shareholders of the Fund; and (ii) by the vote of a majority of the members of the Board of Trustees (the “Board” or the “Trustees”) of The KP Funds (the “Trust”) who are not parties to the agreement or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.

A Board meeting was held on February 28, 2017 to decide whether to approve a sub-advisory agreement (the “Agreement”) for an initial two-year term between the Adviser and William Blair & Company, LLC (the “Sub-Adviser”) on behalf of the KP International Equity Fund.

In preparation for the meeting, the Trustees requested that the Adviser and the Sub-Adviser furnish information necessary to evaluate the terms of the Agreement. The Trustees used this information, as well as other information that the Adviser, the Sub-Adviser and other service providers of the Fund presented or submitted to the Board at the meeting, to help them decide whether to approve the Agreement for an initial two-year term.

Specifically, the Board requested and received written materials from the Adviser, the Sub-Adviser and other service providers of the Fund regarding, among other things: (i) the nature, extent and quality of the services to be provided by the Sub-Adviser; (ii) the Sub-Adviser’s investment management personnel; (iii) the Sub-Adviser’s operations and financial condition; (iv) the Sub-Adviser’s brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the Fund’s proposed sub-advisory fee to be paid to the Sub-Adviser and overall fees and operating expenses; (vi) the Sub-Adviser’s compliance program, including a description of material compliance matters and material compliance violations; (vii) the Sub-Adviser’s policies on and compliance procedures for personal securities transactions; (viii) the Sub-Adviser’s investment experience; (ix) the Adviser’s rationale for recommending the Sub-Adviser; and (x) the Sub-Adviser’s performance in managing similar accounts.

Representatives from the Adviser and the Sub-Adviser, along with other Fund service providers, presented additional information and participated in question and answer sessions at the meeting to help the Trustees evaluate the Sub-Adviser’s services, fee and other aspects of the Agreement. The Independent Trustees received advice from independent counsel and met in executive session outside the presence of Fund management, the Adviser and the Sub-Adviser.

At the Board meeting, the Trustees, including all of the Independent Trustees, based on their evaluation of the information provided by the Adviser, the Sub-Adviser and other service providers of the Fund, approved the Agreement. In considering the approval of the Agreement, the Board considered various factors that they determined were relevant, including: (i) the nature, extent and quality of the services to be provided by the Sub-Adviser; and (ii) the fee to be paid to the Sub-Adviser, as discussed in further detail below.

Nature, Extent and Quality of Services Provided by the Sub-Adviser

In considering the nature, extent and quality of the services to be provided by the Sub-Adviser, the Board reviewed the portfolio management services to be provided by the Sub-Adviser to the Fund, including the quality and continuity of the Sub-Adviser’s portfolio management personnel, the resources of the Sub-Adviser and the Sub-Adviser’s compliance history and compliance program. The Trustees reviewed the terms of the proposed Agreement. The Trustees also reviewed the Sub-Adviser’s proposed investment and risk management approaches for the Fund. The Trustees considered that the Adviser would supervise and monitor the performance of the Sub-Adviser. The most recent investment adviser registration form (“Form ADV”) for the Sub-Adviser was provided to the Board, as was the response of the Sub-Adviser to a detailed series of questions which included, among other things, information about the investment advisory services to be provided by the Sub-Adviser to the Fund.

The Trustees also considered other services to be provided to the Fund by the Sub-Adviser such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Fund’s investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. Based on the factors above, as well as those discussed below, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of the services to be provided to the Fund by the Sub-Adviser would be satisfactory.

175


THE KP FUNDS		December 31, 2017

BOARD CONSIDERATIONS IN APPROVING AND RENEWING THE ADVISORY AND SUB-ADVISOR AGREEMENTS (Unaudited) (Concluded)

Costs of Advisory Services

In considering the sub-advisory fee payable to the Sub-Adviser, the Trustees reviewed, among other things, the proposed sub-advisory fee to be paid to the Sub-Adviser. The Trustees also reviewed pro forma fee and expense information, as well as the management fees charged by the Sub-Adviser to other clients with comparable mandates. The Trustees considered any differences in management fees and took into account the respective demands, resources and complexity associated with the Fund and other client accounts as well as the extensive regulatory, compliance and tax regimes to which the Fund is subject. The Trustees also considered that the fee payable to the Sub-Adviser would reflect an arms-length negotiation between the Adviser and the Sub-Adviser. The Board concluded, within the context of its full deliberations, that the sub-advisory fee was reasonable in light of the nature and quality of the services expected to be rendered by the Sub-Adviser. The Board also considered the Sub-Adviser’s commitment to managing the Fund.

Investment Performance, Profitability and Economies of Scale

Because the Sub-Adviser is new to the Fund and had not managed Fund assets, it did not yet have an investment performance record with respect to the Fund and it was not possible to determine the profitability that the Sub-Adviser might achieve with respect to the Fund or the extent to which economies of scale would be realized by the Sub-Adviser as the assets of the Fund grow. Accordingly, the Trustees did not make any conclusions regarding the Sub-Adviser’s investment performance with respect to the Fund, the Sub-Adviser’s profitability, or the extent to which economies of scale would be realized by the Sub-Adviser as the assets of the Fund grow, but will do so during future considerations of the Agreement.

Approval of the Agreement

Based on the Board’s deliberations and its evaluation of the information described above and other factors and information it believed relevant in the exercise of its reasonable business judgment, the Board, including all of the Independent Trustees, with the assistance of Fund counsel and Independent Trustees’ counsel, unanimously concluded that the terms of the Agreement, including the fee to be paid thereunder, were fair and reasonable and agreed to approve the Agreement for an initial term of two years. In its deliberations, the Board did not identify any absence of information as material to its decision, or any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.

176


THE KP FUNDS		December 31, 2017

NOTICE TO SHAREHOLDERS (Unaudited)

For shareholders that do not have a December 31, 2017 taxable year end, this notice is for informational purposes only. For shareholders with a December 31, 2017 tax year end, please consult your tax adviser as to the pertinence of this notice.

For the fiscal period ended December 31, 2017 the Funds are designating the following with regard to distributions paid during the period:


Fund			Return of Capital (Tax Basis)		Long-Term Capital Gains Distributions (Tax Basis)		Ordinary Income Distributions (Tax Basis)		Total Distributions (Tax Basis)
KP Retirement Path 2015 Fund				0.00%		45.94%		54.06%		100.00%
KP Retirement Path 2020 Fund				0.00%		39.24%		60.76%		100.00%
KP Retirement Path 2025 Fund				0.00%		35.62%		64.38%		100.00%
KP Retirement Path 2030 Fund				0.00%		35.70%		64.30%		100.00%
KP Retirement Path 2035 Fund				0.00%		35.08%		64.92%		100.00%
KP Retirement Path 2040 Fund				0.00%		35.64%		64.36%		100.00%
KP Retirement Path 2045 Fund				0.00%		33.98%		66.02%		100.00%
KP Retirement Path 2050 Fund				0.00%		32.02%		67.98%		100.00%
KP Retirement Path 2055 Fund				0.00%		25.45%		74.55%		100.00%
KP Retirement Path 2060 Fund				0.00%		39.19%		60.81%		100.00%
KP Large Cap Equity Fund				0.00%		68.25%		31.75%		100.00%
KP Small Cap Equity Fund				0.00%		60.81%		39.19%		100.00%
KP International Equity Fund				0.00%		10.72%		89.28%		100.00%
KP Fixed Income Fund				0.00%		1.19%		98.82%		100.00%

							Foreign Investors
Fund	Corporate Dividends Received Deduction⁽¹⁾		Qualifying Dividend Income⁽²⁾		U.S. Government Interest⁽³⁾		Interest Related Dividends⁽⁴⁾		Short-Term Capital Gains Dividends⁽⁵⁾
KP Retirement Path 2015 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2020 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2025 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2030 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2035 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2040 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2045 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2050 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2055 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Retirement Path 2060 Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Large Cap Equity Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Small Cap Equity Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP International Equity Fund		0.00%		0.00%		0.00%		0.00%		100.00%
KP Fixed Income Fund		0.00%		0.00%		0.00%		0.00%		0.00%

(1)

Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions).

(2)

The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Relief Reconciliation Act of 2003 and its reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law.

(3)

“U.S. Government Interest represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year. This amount is reflected as a percentage of total ordinary income distributions (the total of short term capital gain and net investment income distributions). Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders of the Funds who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.

177


THE KP FUNDS		December 31, 2017

NOTICE TO SHAREHOLDERS (Unaudited) (Continued)

(4)

The percentage in this column represents the amount of “Interest Related Dividends” and is reflected as a percentage of ordinary income distribution. Interest related dividends are exempt from U.S. withholding tax when paid for foreign investors.

(5)

The percentage in this column represents the amount of “Short-Term Capital Gain Dividends” and is reflected as a percentage of short-term capital gain distribution that is exempt from U.S. withholding tax when paid to foreign investors.

The following KP Funds designate long term capital gains for December 31, 2016, calendar year end:


Fund	Long Term Capital Gain
KP Retirement Path 2015 Fund	$	2,704,665
KP Retirement Path 2020 Fund		4,674,950
KP Retirement Path 2025 Fund		5,652,337
KP Retirement Path 2030 Fund		5,741,844
KP Retirement Path 2035 Fund		6,853,202
KP Retirement Path 2040 Fund		6,452,755
KP Retirement Path 2045 Fund		4,762,997
KP Retirement Path 2050 Fund		2,333,616
KP Retirement Path 2055 Fund		453,617
KP Retirement Path 2060 Fund		71,125
KP Large Cap Equity Fund		14,314,211
KP Small Cap Equity Fund		5,034,032
KP International Equity Fund		—
KP Fixed Income Fund		—

178

The KP Funds

Investment Adviser

Callan LLC

600 Montgomery Street, Suite 800

San Francisco, CA 94111

Administrator

SEI Investments

Global Funds Services

One Freedom Valley Drive

Oaks, Pennsylvania 19456

Distributor

SEI Investments Distribution Co.

One Freedom Valley Drive

Oaks, Pennsylvania 19456

Legal Counsel

Morgan, Lewis & Bockius LLP

1701 Market Street

Philadelphia, Pennsylvania 19103-2921

More information about the Funds is available, without charge, through the following:

Statement of Additional Information (“SAI”): The SAI includes detailed information about the Funds. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus.

Annual and Semi-Annual Reports: These reports list the Funds’ holdings and contain information from the Adviser about investment strategies, and recent market conditions and trends and their impact on Fund performance. The reports also contain detailed financial information about the Funds.

To Obtain an SAI, Annual or Semi-Annual Report, or More Information:


*By Telephone:*		855-457-3637 (855-4KPFNDS)

*By Mail:*		The KP Funds
		c/o SEI Investments
		One Freedom Valley Drive
		Oaks, PA 19546

*By Internet:*		www.kp-funds.com

From the SEC: You can also obtain the SAI or the Annual and Semi-Annual Reports, as well as other information about The KP Funds, from the EDGAR Database on the SEC’s website at: http://www.sec.gov. You may review and copy documents at the SEC Public Reference Room in Washington, DC (for information on the operation of the Public Reference Room, call 202-551-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: U.S. Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-1520. You may also obtain this information, upon payment of a duplicating fee, by e-mailing the SEC at the following address: publicinfo@sec.gov.

The Trust’s Investment Company Act registration number is 811-22838

KPF-AR-001-0400

Item 2.

Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, controller or principal accounting officer, and any person who performs a similar function. There have been no amendments to or waivers granted to this code of ethics.

Item 3.

Audit Committee Financial Expert.

(a)(1) The Registrant’s board of trustees has determined that the Registrant has at least one audit committee financial expert serving on the audit committee.

(a)(2) The audit committee financial experts are John Darr and George Sullivan, and they are independent as defined in Form N-CSR Item 3(a)(2).

Item 4.

Principal Accountant Fees and Services.

Fees billed by PricewaterhouseCoopers LLP (“PwC”) related to the Trust

PwC billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years were as follows:


		2017						2016
		All fees and services to the Trust that were pre-approved		All fees and services to service affiliates that were pre-approved		All other fees and services to service affiliates that did not require pre-approval		All fees and services to the Trust that were pre-approved		All fees and services to service affiliates that were pre-approved		All other fees and services to service affiliates that did not require pre-approval
(a)	Audit Fees	$	236,425	$	0	$	0	$	231,900	$	0	$	0
(b)	Audit-Related Fees		N/A	$	0	$	0		N/A	$	0	$	0
(c)	Tax Fees		N/A	$	0	$	0		N/A	$	0	$	0
(d)	All Other Fees		N/A	$	0	$	0		N/A	$	0	$	0

(e)(1)

All requests or applications for services to be provided by the independent auditor shall be submitted to the Chief Financial Officer (“CFO”) of the Registrant and must include a detailed description of the services proposed to be rendered. The Registrant ‘s CFO will determine whether such services (1) require specific pre-approval, (2) are included within the list of services that have received the general pre-approval of the audit committee or (3) have been previously pre-approved in connection with the independent auditor’s annual engagement letter for the applicable year or otherwise.

Requests or applications to provide services that require specific pre-approval by the audit committee will be submitted to the audit committee by the CFO. The audit committee will be informed by the CFO on a quarterly basis of all services rendered by the independent auditor. The audit committee has delegated specific pre-approval authority to either the audit committee chair or financial experts, provided that the estimated fee for any such proposed pre-approved service does not exceed $100,000 and any pre-approval decisions are reported to the audit committee at its next regularly scheduled meeting.

All services to be provided by the independent auditor shall be provided pursuant to a signed written engagement letter with the Registrant, the investment advisor or applicable control affiliate (except that matters as to which an engagement letter would be impractical because of timing issues or because the matter is small may not be the subject of an engagement letter) that sets forth both the services to be provided by the independent auditor and the total fees to be paid to the independent auditor for those services.

In addition, the audit committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the independent auditor and to assure the auditor’s independence from the Registrant, such as reviewing a formal written statement from the independent auditor delineating all relationships between the independent auditor and the Registrant, and discussing with the independent auditor its methods and procedures for ensuring independence.

(e)(2) Percentage of fees billed applicable to non-audit services approved pursuant to the “de minimus” exception of Rule 2-01(c)(7)(i)(C) were as follows (PwC):


	2017			2016
Audit-Related Fees		0	%		0	%
Tax Fees		0	%		0	%
All Other Fees		0	%		0	%

(f) Not applicable.

(g) The aggregate non-audit fees and services billed by PwC for services rendered to the Registrant, and rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant for the last two fiscal years were $0 and $0 for 2017 and 2016, respectively.

(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved by the audit committee of Registrant’s Board of Trustees. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.

Item 5.

Audit Committee of Listed Registrants.

Not applicable to open-end management investment companies.

Item 6.

Schedule of Investments.

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005.

Item 9.

Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

Not applicable to open-end management investment companies.

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees during the period covered by this report.

Item 11.

Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12.

Exhibits.

(a)(1) Code of Ethics attached hereto.

(a)(2) A separate certification for the principal executive officer and the principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.

(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an exhibit.

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.

Date: March 9, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)						/s/ Michael Beattie
						Michael Beattie, President

Date: March 9, 2018

Date: March 9, 2018