0001145443-15-001209.txt : 20151029 0001145443-15-001209.hdr.sgml : 20151029 20151029102932 ACCESSION NUMBER: 0001145443-15-001209 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150831 FILED AS OF DATE: 20151029 DATE AS OF CHANGE: 20151029 EFFECTIVENESS DATE: 20151029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOHN HANCOCK SOVEREIGN BOND FUND CENTRAL INDEX KEY: 0000045288 IRS NUMBER: 042528977 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-02402 FILM NUMBER: 151182495 BUSINESS ADDRESS: STREET 1: JOHN HANCOCK FUNDS STREET 2: 601 CONGRESS STREET CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 617-663-3000 MAIL ADDRESS: STREET 1: C/O JOHN HANCOCK FUNDS STREET 2: 601 CONGRESS STREET CITY: BOSTON STATE: MA ZIP: 02210 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN SOVEREIGN BOND FUND DATE OF NAME CHANGE: 19930921 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN BONDS DATE OF NAME CHANGE: 19930921 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN BOND TRUST DATE OF NAME CHANGE: 19910704 0000045288 S000000646 John Hancock Bond Fund C000001854 Class A JHNBX C000001855 Class B JHBBX C000001856 Class C JHCBX C000001857 Class I JHBIX C000106442 Class R6 JHBSX C000113488 Class R2 JHRBX C000153978 Class R4 JBFRX N-Q 1 d294541.htm N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 2402

John Hancock Sovereign Bond Fund
(Exact name of registrant as specified in charter)

601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)

Salvatore Schiavone, Treasurer

601 Congress Street

Boston, Massachusetts 02210

(Name and address of agent for service)

Registrant's telephone number, including area code: 617-663-4497

Date of fiscal year end:

May 31

 

 

Date of reporting period:

August 31, 2015






 

ITEM 1. SCHEDULE OF INVESTMENTS







John Hancock

Bond Fund


Quarterly portfolio holdings 8/31/15

jhnq_logo.jpg


Fund's investments Bond Fund



                                                           
  As of 8-31-15 (unaudited)  
        Rate (% )    Maturity date     Par value^     Value  
  Corporate bonds 41.2%     $1,246,244,994  
  (Cost $1,260,577,340)  
  Consumer discretionary 5.0%     150,418,981  
  Auto components 0.6%  
  Dana Holding Corp.     6.000     09-15-23           3,930,000     3,959,458  
  Delphi Corp.     5.000     02-15-23           9,450,000     9,828,000  
  ZF North America Capital, Inc. (S)     4.750     04-29-25           2,840,000     2,690,900  
  Automobiles 1.5%  
  Fiat Chrysler Automobiles NV     5.250     04-15-23           2,310,000     2,284,013  
  Ford Motor Company     4.750     01-15-43           1,425,000     1,350,378  
  Ford Motor Credit Company LLC     5.875     08-02-21           14,665,000     16,457,708  
  General Motors Company     4.875     10-02-23           7,085,000     7,207,818  
  General Motors Company     6.250     10-02-43           3,710,000     3,970,579  
  General Motors Financial Company, Inc.     3.450     04-10-22           4,715,000     4,510,124  
  General Motors Financial Company, Inc.     4.000     01-15-25           5,390,000     5,098,255  
  General Motors Financial Company, Inc.     4.375     09-25-21           3,060,000     3,087,546  
  Hotels, restaurants and leisure 0.5%  
  CCM Merger, Inc. (S)     9.125     05-01-19           2,650,000     2,822,250  
  Eldorado Resorts, Inc. (S)     7.000     08-01-23           1,400,000     1,394,750  
  International Game Technology PLC (S)     6.500     02-15-25           2,115,000     2,003,963  
  MGM Resorts International     6.000     03-15-23           4,700,000     4,770,500  
  Mohegan Tribal Gaming Authority (S)     9.750     09-01-21           2,825,000     2,938,000  
  Seminole Tribe of Florida, Inc. (S)     6.535     10-01-20           2,289,000     2,414,895  
  Waterford Gaming LLC (H)(S)     8.625     09-15-49           372,111     0  
  Household durables 0.1%  
  Argos Merger Sub, Inc. (S)     7.125     03-15-23           1,235,000     1,293,663  
  Harman International Industries, Inc.     4.150     05-15-25           1,905,000     1,871,209  
  Internet and catalog retail 0.5%  
  Amazon.com, Inc.     4.950     12-05-44           5,335,000     5,322,687  
  QVC, Inc.     4.375     03-15-23           3,920,000     3,746,952  
  QVC, Inc.     5.125     07-02-22           2,765,000     2,790,173  
  QVC, Inc.     5.450     08-15-34           3,160,000     2,796,963  
  Leisure products 0.0%  
  Vista Outdoor, Inc. (S)     5.875     10-01-23           805,000     819,088  
  Media 1.0%  
  21st Century Fox America, Inc.     6.150     03-01-37           1,495,000     1,658,680  
  21st Century Fox America, Inc.     6.400     12-15-35           1,755,000     1,984,229  
  Altice Financing SA (S)     6.500     01-15-22           1,485,000     1,488,713  
  Altice Financing SA (S)     6.625     02-15-23           1,890,000     1,880,550  
  AMC Entertainment, Inc.     5.875     02-15-22           3,890,000     3,948,350  
  Carmike Cinemas, Inc. (S)     6.000     06-15-23           1,610,000     1,646,225  
  Clear Channel Worldwide Holdings, Inc.     6.500     11-15-22           2,785,000     2,876,905  
  Midcontinent Communications & Midcontinent Finance Corp. (S)     6.875     08-15-23           1,615,000     1,627,113  
  Myriad International Holdings BV (S)     5.500     07-21-25           2,020,000     2,004,850  
  Radio One, Inc. (S)     9.250     02-15-20           2,825,000     2,514,250  
  Scripps Networks Interactive, Inc.     3.950     06-15-25           4,665,000     4,542,632  
  Time Warner Cable, Inc.     8.250     04-01-19           3,420,000     3,994,724  
  Multiline retail 0.2%  
  Dollar Tree, Inc. (S)     5.750     03-01-23           2,660,000     2,786,350  
  Macy's Retail Holdings, Inc.     7.875     08-15-36           3,420,000     3,598,798  
  Tops Holding II Corp.     8.750     06-15-18           1,000,000     990,000  

2SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Consumer discretionary  (continued)        
  Specialty retail 0.5%  
  AutoNation, Inc.     5.500     02-01-20           4,324,000     $4,727,040  
  Jo-Ann Stores Holdings, Inc., PIK (S)     9.750     10-15-19           4,240,000     3,561,600  
  L Brands, Inc.     6.625     04-01-21           5,130,000     5,771,250  
  Textiles, apparel and luxury goods 0.1%  
  Hot Topic, Inc. (S)     9.250     06-15-21           3,370,000     3,386,850  
  Consumer staples 1.7%     50,226,693  
  Beverages 0.2%  
  Constellation Brands, Inc.     4.250     05-01-23           3,145,000     3,163,870  
  Constellation Brands, Inc.     4.750     11-15-24           1,975,000     2,019,438  
  Food and staples retailing 0.3%  
  CVS Health Corp.     5.125     07-20-45           5,035,000     5,362,184  
  Rite Aid Corp. (S)     6.125     04-01-23           640,000     656,800  
  Tops Holding LLC (S)     8.000     06-15-22           4,255,000     4,233,725  
  Food products 0.6%  
  Bunge, Ltd. Finance Corp.     8.500     06-15-19           3,211,000     3,837,029  
  Kraft Heinz Foods Company (S)     2.000     07-02-18           5,315,000     5,307,936  
  Kraft Heinz Foods Company (S)     4.875     02-15-25           2,642,000     2,850,108  
  Kraft Heinz Foods Company (S)     5.200     07-15-45           3,515,000     3,687,868  
  Post Holdings, Inc. (S)     7.750     03-15-24           1,620,000     1,672,650  
  Household products 0.1%  
  HRG Group, Inc.     7.875     07-15-19           2,830,000     2,982,113  
  Personal products 0.1%  
  Revlon Consumer Products Corp.     5.750     02-15-21           2,620,000     2,593,800  
  Tobacco 0.4%  
  Alliance One International, Inc.     9.875     07-15-21           6,450,000     5,442,188  
  Reynolds American, Inc.     4.450     06-12-25           3,655,000     3,751,664  
  Vector Group, Ltd.     7.750     02-15-21           2,505,000     2,665,320  
  Energy 4.0%     121,036,981  
  Energy equipment and services 0.4%  
  CSI Compressco LP     7.250     08-15-22           1,890,000     1,549,800  
  Nostrum Oil & Gas Finance BV (S)     6.375     02-14-19           2,625,000     2,198,438  
  Rowan Companies, Inc.     4.875     06-01-22           2,590,000     2,277,423  
  Teine Energy, Ltd. (S)     6.875     09-30-22           1,925,000     1,665,125  
  TerraForm Power Operating LLC (S)     5.875     02-01-23           4,375,000     4,156,250  
  Oil, gas and consumable fuels 3.6%  
  California Resources Corp.     6.000     11-15-24           3,500,000     2,642,500  
  Chesapeake Energy Corp.     5.750     03-15-23           2,835,000     2,113,521  
  Cimarex Energy Company     4.375     06-01-24           5,245,000     5,045,847  
  CNOOC Finance 2013, Ltd.     3.000     05-09-23           4,540,000     4,246,135  
  Continental Resources, Inc.     3.800     06-01-24           740,000     623,943  
  Continental Resources, Inc.     5.000     09-15-22           8,115,000     7,354,219  
  DCP Midstream LLC (S)     9.750     03-15-19           3,840,000     4,230,966  
  DCP Midstream LLC (5.850% to 5-21-23, then 3 month LIBOR + 3.850%) (S)     5.850     05-21-43           3,160,000     2,417,400  
  DCP Midstream Operating LP     3.875     03-15-23           1,960,000     1,602,310  
  Ecopetrol SA     5.875     09-18-23           1,410,000     1,422,338  
  Energy Transfer Partners LP     5.150     03-15-45           3,470,000     2,915,192  
  Energy Transfer Partners LP     9.700     03-15-19           2,620,000     3,132,606  
  Enterprise Products Operating LLC (7.000% to 6-1-17, then 3 month LIBOR + 2.778%)     7.000     06-01-67           4,775,000     4,369,125  

SEE NOTES TO FUND'S INVESTMENTS3

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Energy  (continued)        
  Oil, gas and consumable fuels  (continued)  
  Enterprise Products Operating LLC (8.375% to 8-1-16, then 3 month LIBOR + 3.708%)     8.375     08-01-66           3,995,000     $3,915,100  
  EP Energy LLC     7.750     09-01-22           1,840,000     1,711,200  
  Freeport-McMoran Oil & Gas LLC     6.750     02-01-22           4,272,000     3,887,520  
  Freeport-McMoran Oil & Gas LLC     6.875     02-15-23           1,179,000     1,058,153  
  FTS International, Inc.     6.250     05-01-22           1,390,000     528,200  
  Kerr-McGee Corp.     6.950     07-01-24           3,055,000     3,601,182  
  Kinder Morgan Energy Partners LP     7.750     03-15-32           1,810,000     1,976,469  
  Kinder Morgan, Inc.     5.550     06-01-45           4,080,000     3,507,205  
  Lukoil International Finance BV (S)     3.416     04-24-18           4,925,000     4,674,702  
  MarkWest Energy Partners LP     4.875     12-01-24           1,575,000     1,460,813  
  MPLX LP     4.000     02-15-25           1,435,000     1,324,063  
  Newfield Exploration Company     5.750     01-30-22           2,140,000     2,110,575  
  Pacific Exploration and Production Corp. (S)     5.125     03-28-23           2,075,000     1,037,500  
  Pacific Rubiales Energy Corp. (S)     5.375     01-26-19           2,605,000     1,406,700  
  Petroleos Mexicanos (S)     4.250     01-15-25           10,000     9,459  
  Petroleos Mexicanos     4.875     01-24-22           2,365,000     2,400,475  
  Regency Energy Partners LP     5.000     10-01-22           940,000     920,054  
  Regency Energy Partners LP     5.500     04-15-23           5,210,000     5,058,389  
  Regency Energy Partners LP     5.875     03-01-22           865,000     889,467  
  Shell International Finance BV     4.375     05-11-45           7,635,000     7,522,834  
  Summit Midstream Holdings LLC     7.500     07-01-21           1,585,000     1,585,000  
  Tullow Oil PLC (S)     6.000     11-01-20           1,685,000     1,246,900  
  Tullow Oil PLC (S)     6.250     04-15-22           1,855,000     1,349,513  
  Whiting Petroleum Corp.     6.250     04-01-23           2,730,000     2,463,825  
  Williams Partners LP     4.875     05-15-23           2,205,000     2,077,066  
  Williams Partners LP     4.875     03-15-24           7,245,000     6,755,528  
  WPX Energy, Inc.     5.250     09-15-24           910,000     747,201  
  WPX Energy, Inc.     6.000     01-15-22           2,175,000     1,848,750  
  Financials 16.3%     493,388,039  
  Banks 6.2%  
  Banco Santander Brasil SA (S)     8.000     03-18-16         BRL 4,600,000     1,223,931  
  Bank of America Corp.     3.300     01-11-23           3,000,000     2,953,818  
  Bank of America Corp.     3.950     04-21-25           1,430,000     1,382,704  
  Bank of America Corp.     4.200     08-26-24           3,175,000     3,145,901  
  Bank of America Corp.     4.250     10-22-26           3,580,000     3,519,885  
  Bank of America Corp.     6.875     04-25-18           5,765,000     6,462,686  
  Bank of America Corp. (6.250% to 9-5-24, then 3 month LIBOR + 3.705%) (Q)     6.250     09-05-24           4,740,000     4,692,600  
  Bank of America Corp. (8.000% to 1-30-18, then 3 month LIBOR + 3.630%) (Q)     8.000     01-30-18           4,310,000     4,536,275  
  Barclays Bank PLC (S)     10.179     06-12-21           4,710,000     6,218,613  
  BNP Paribas SA (7.375% to 8-19-25, then 5 Year U.S. Swap Rate + 5.150%) (Q)(S)     7.375     08-19-25           1,115,000     1,141,760  
  BPCE SA (S)     4.500     03-15-25           4,360,000     4,226,222  
  BPCE SA (S)     5.700     10-22-23           4,630,000     4,901,225  
  Citigroup, Inc. (5.950% to 8-15-20, then 3 month LIBOR + 4.095%) (Q)     5.950     08-15-20           3,155,000     3,128,952  
  Commerzbank AG (S)     8.125     09-19-23           5,975,000     6,998,219  
  Credit Agricole SA (6.625% to 9-23-19, then 5 Year U.S. Swap Rate + 4.697%) (Q)(S)     6.625     09-23-19           4,420,000     4,334,040  
  Credit Agricole SA (7.875% to 1-23-24, then 5 Year U.S. Swap Rate + 4.898%) (Q)(S)     7.875     01-23-24           4,840,000     4,927,270  
  Credit Agricole SA (8.125% to 9-19-18, then 5 Year U.S. Swap Rate + 6.283%) (S)     8.125     09-19-33           3,300,000     3,656,215  
  Fifth Third Bancorp (5.100% to 6-30-23, then 3 month LIBOR + 3.033%) (Q)     5.100     06-30-23           3,790,000     3,477,325  
  HBOS PLC (S)     6.000     11-01-33           3,850,000     4,273,885  
  HBOS PLC (S)     6.750     05-21-18           8,355,000     9,218,397  

4SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Financials  (continued)        
  Banks  (continued)  
  HSBC Holdings PLC (6.375% to 9-17-24, then 5 Year U.S. ISDAFIX + 3.705%) (Q)     6.375     09-17-24           1,570,000     $1,552,338  
  ING Bank NV (S)     5.800     09-25-23           5,184,000     5,605,122  
  ING Groep NV (6.500% to 4-16-25, then 5 Year U.S. Swap Rate + 4.446%) (Q)     6.500     04-16-25           1,385,000     1,328,734  
  JPMorgan Chase & Co.     4.625     05-10-21           10,510,000     11,382,446  
  JPMorgan Chase & Co. (5.000% to 7-1-19, then 3 month LIBOR + 3.320%) (Q)     5.000     07-01-19           5,270,000     5,138,250  
  JPMorgan Chase & Co. (5.150% to 5-1-23, then 3 month LIBOR + 3.250%) (Q)     5.150     05-01-23           3,735,000     3,529,575  
  JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (Q)     6.750     02-01-24           7,505,000     7,917,775  
  JPMorgan Chase & Co. (7.900% to 4-30-18, then 3 month LIBOR + 3.470%) (Q)     7.900     04-30-18           6,270,000     6,583,500  
  Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (Q)     7.500     06-27-24           3,595,000     3,752,281  
  Manufacturers & Traders Trust Company (5.629% to 12-1-16, then 3 month LIBOR + 6.400%)     5.629     12-01-21           5,255,000     5,281,275  
  Mizuho Financial Group Cayman 3, Ltd. (S)     4.600     03-27-24           3,525,000     3,601,084  
  Rabobank Nederland NV (11.000% to 6-30-19, then 3 month LIBOR + 10.868%) (Q)(S)     11.000     06-30-19           5,467,000     6,804,228  
  Royal Bank of Scotland Group PLC (8.000% to 8-15-25, then 5 Year U.S. Swap Rate + 5.720%) (Q)     8.000     08-10-25           2,400,000     2,451,000  
  Societe Generale SA (8.250% to 11-29-18, then 5 Year U.S. Swap Rate + 6.394%) (Q)     8.250     11-29-18           3,390,000     3,600,180  
  Synovus Financial Corp.     7.875     02-15-19           1,620,000     1,826,550  
  The PNC Financial Services Group, Inc. (4.850% to 6-1-23, then 3 month LIBOR + 3.040%) (Q)     4.850     06-01-23           3,795,000     3,586,275  
  The PNC Financial Services Group, Inc. (6.750% to 8-1-21, then 3 month LIBOR + 3.678%) (Q)     6.750     08-01-21           4,725,000     5,179,781  
  Wells Fargo & Company (5.875% to 6-15-25, then 3 month LIBOR + 3.990%) (Q)     5.875     06-15-25           5,660,000     5,787,350  
  Wells Fargo & Company (5.900% to 6-15-24, then 3 month LIBOR + 3.110%) (Q)     5.900     06-15-24           5,305,000     5,311,631  
  Wells Fargo & Company, Series K (7.980% to 3-15-18, then 3 month LIBOR + 3.770%) (Q)     7.980     03-15-18           9,692,000     10,346,210  
  Wells Fargo Bank NA     5.850     02-01-37           3,055,000     3,680,352  
  Capital markets 2.4%  
  Ares Capital Corp.     3.875     01-15-20           4,460,000     4,541,168  
  Credit Suisse Group AG (7.500% to 12-11-23, then 5 Year U.S. Swap Rate + 4.598%) (Q)(S)     7.500     12-11-23           2,975,000     3,143,831  
  FS Investment Corp.     4.000     07-15-19           4,290,000     4,314,964  
  Jefferies Group LLC     6.875     04-15-21           5,360,000     5,984,949  
  Jefferies Group LLC     8.500     07-15-19           2,220,000     2,637,928  
  Macquarie Bank, Ltd. (S)     4.875     06-10-25           5,565,000     5,511,047  
  Morgan Stanley     4.300     01-27-45           2,565,000     2,437,301  
  Morgan Stanley     5.500     01-26-20           4,195,000     4,667,940  
  Morgan Stanley     5.550     04-27-17           2,500,000     2,655,903  
  Morgan Stanley     7.300     05-13-19           8,360,000     9,787,177  
  Morgan Stanley (5.550% to 7-15-20, then 3 month LIBOR + 3.810%) (Q)     5.550     07-15-20           3,370,000     3,365,788  
  Stifel Financial Corp.     4.250     07-18-24           3,325,000     3,286,403  
  The Bear Stearns Companies LLC     7.250     02-01-18           3,105,000     3,475,563  
  The Goldman Sachs Group, Inc.     3.750     05-22-25           5,520,000     5,491,953  
  The Goldman Sachs Group, Inc.     5.250     07-27-21           7,705,000     8,565,587  
  The Goldman Sachs Group, Inc.     5.750     01-24-22           1,800,000     2,046,040  
  Consumer finance 1.5%  
  Ally Financial, Inc.     5.125     09-30-24           7,160,000     7,231,600  
  American Express Company     3.625     12-05-24           20,000     19,532  
  Capital One Financial Corp.     2.450     04-24-19           2,910,000     2,881,878  
  Capital One Financial Corp. (5.550% to 6-1-20, then 3 month LIBOR + 3.800%) (Q)     5.550     06-01-20           3,735,000     3,710,498  
  Capital One NA     2.350     08-17-18           3,820,000     3,808,857  

SEE NOTES TO FUND'S INVESTMENTS5

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Financials  (continued)        
  Consumer finance  (continued)  
  Credit Acceptance Corp.     6.125     02-15-21           4,315,000     $4,282,638  
  Credito Real SAB de CV (S)     7.500     03-13-19           4,135,000     4,191,856  
  Discover Bank     2.600     11-13-18           5,530,000     5,536,310  
  Discover Financial Services     3.950     11-06-24           4,200,000     4,039,581  
  Discover Financial Services     5.200     04-27-22           4,795,000     5,057,665  
  Enova International, Inc.     9.750     06-01-21           4,300,000     3,569,000  
  Diversified financial services 1.5%  
  Doric Nimrod Air Alpha 2013-1 Class A Pass Through Trust (S)     5.250     05-30-23           3,112,180     3,267,789  
  Doric Nimrod Air Alpha 2013-1 Class B Pass Through Trust (S)     6.125     11-30-19           1,507,363     1,563,889  
  Doric Nimrod Air Finance Alpha, Ltd. 2012-1 Class A Pass Through Trust (S)     5.125     11-30-22           2,782,434     2,867,582  
  General Electric Capital Corp. (P)     0.801     08-15-36           3,180,000     2,888,836  
  General Electric Capital Corp. (5.250% to 6-15-23, then 3 month LIBOR + 2.967%) (Q)     5.250     06-15-23           3,640,000     3,701,880  
  General Electric Capital Corp. (7.125% until 6-15-22, then 3 month LIBOR + 5.296%) (Q)     7.125     06-15-22           4,870,000     5,618,519  
  Leucadia National Corp.     5.500     10-18-23           5,700,000     5,736,594  
  McGraw Hill Financial, Inc. (S)     4.000     06-15-25           5,350,000     5,172,979  
  McGraw Hill Financial, Inc. (S)     4.400     02-15-26           3,725,000     3,703,004  
  NewStar Financial, Inc. (S)     7.250     05-01-20           3,640,000     3,612,700  
  Voya Financial, Inc. (5.650% to 5-15-23, then 3 month LIBOR + 3.580%)     5.650     05-15-53           7,008,000     7,078,080  
  Insurance 1.8%  
  Aquarius + Investments PLC (6.375% to 9-1-19, then 5 Year U.S. Swap Rate + 5.210%)     6.375     09-01-24           1,715,000     1,771,039  
  Assured Guaranty US Holdings, Inc.     5.000     07-01-24           5,150,000     5,150,118  
  AXA SA     8.600     12-15-30           1,785,000     2,391,900  
  AXA SA (6.379% to 12-14-36, then 3 month LIBOR + 2.256%) (Q)(S)     6.379     12-14-36           1,725,000     1,830,656  
  CNA Financial Corp.     7.250     11-15-23           2,320,000     2,726,905  
  CNO Financial Group, Inc.     5.250     05-30-25           3,455,000     3,571,606  
  Liberty Mutual Group, Inc. (7.800% to 3-15-37, then 3 month LIBOR + 3.576%) (S)     7.800     03-07-87           4,165,000     4,852,225  
  MetLife, Inc.     6.400     12-15-66           3,710,000     4,076,363  
  Nippon Life Insurance Company (5.100% to 10-16-24, then 5 Year U.S. ISDAFIX + 3.650%) (S)     5.100     10-16-44           3,600,000     3,708,000  
  Pacific LifeCorp. (S)     6.000     02-10-20           1,880,000     2,115,312  
  Prudential Financial, Inc. (5.200% to 3-15-24, then 3 month LIBOR + 3.040%)     5.200     03-15-44           760,000     743,850  
  Prudential Financial, Inc. (5.875% to 9-1-22, then 3 month LIBOR + 4.175%)     5.875     09-15-42           1,425,000     1,503,375  
  Sirius International Group, Ltd. (7.506% to 6-30-17, then 3 month LIBOR + 3.200%) (Q)(S)     7.506     06-30-17           6,820,000     6,922,300  
  Teachers Insurance & Annuity Association of America (S)     6.850     12-16-39           5,445,000     6,784,078  
  The Hartford Financial Services Group, Inc. (8.125% to 6-15-18, then 3 month LIBOR + 4.603%)     8.125     06-15-68           5,275,000     5,894,813  
  Real estate investment trusts 2.5%  
  American Tower Corp.     3.400     02-15-19           3,335,000     3,391,652  
  American Tower Corp.     4.700     03-15-22           3,255,000     3,403,438  
  ARC Properties Operating Partnership LP     4.600     02-06-24           5,255,000     5,018,525  
  AvalonBay Communities, Inc.     3.450     06-01-25           2,885,000     2,818,910  
  Corrections Corp. of America     4.625     05-01-23           2,635,000     2,588,888  
  Crown Castle Towers LLC (S)     4.883     08-15-40           3,845,000     4,125,735  
  Crown Castle Towers LLC (S)     6.113     01-15-40           5,759,000     6,456,449  
  DDR Corp.     7.500     04-01-17           5,575,000     6,040,106  
  Education Realty Operating Partnership LP     4.600     12-01-24           3,120,000     3,138,845  
  Goodman Funding Pty, Ltd. (S)     6.375     04-15-21           3,360,000     3,823,697  
  Highwoods Realty LP     5.850     03-15-17           3,130,000     3,311,578  

6SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Financials  (continued)        
  Real estate investment trusts  (continued)  
  Iron Mountain, Inc.     5.750     08-15-24           4,230,000     $4,245,863  
  Iron Mountain, Inc.     6.000     08-15-23           4,095,000     4,187,138  
  iStar Financial, Inc.     5.000     07-01-19           1,100,000     1,067,000  
  MPT Operating Partnership LP     6.375     02-15-22           2,535,000     2,677,594  
  MPT Operating Partnership LP     6.875     05-01-21           1,855,000     1,947,750  
  Omega Healthcare Investors, Inc.     4.500     01-15-25           2,865,000     2,814,393  
  Omega Healthcare Investors, Inc.     4.950     04-01-24           3,230,000     3,323,919  
  USB Realty Corp. (P)(Q)(S)     1.436     01-15-17           2,900,000     2,631,750  
  Ventas Realty LP     3.500     02-01-25           930,000     879,654  
  Ventas Realty LP     3.750     05-01-24           2,210,000     2,163,499  
  Ventas Realty LP     4.750     06-01-21           4,140,000     4,438,672  
  Welltower, Inc.     4.950     01-15-21           1,840,000     1,995,371  
  Thrifts and mortgage finance 0.4%  
  Nationstar Mortgage LLC     6.500     07-01-21           3,315,000     2,921,344  
  Nationstar Mortgage LLC     7.875     10-01-20           3,368,000     3,182,760  
  Nationstar Mortgage LLC     9.625     05-01-19           2,160,000     2,251,800  
  Quicken Loans, Inc. (S)     5.750     05-01-25           2,860,000     2,788,500  
  Stearns Holdings, Inc. (S)     9.375     08-15-20           1,590,000     1,590,000  
  Health care 2.4%     72,983,648  
  Biotechnology 0.2%  
  Celgene Corp.     5.000     08-15-45           5,885,000     5,917,903  
  Health care equipment and supplies 0.4%  
  Alere, Inc.     7.250     07-01-18           2,180,000     2,278,100  
  Medtronic, Inc.     4.625     03-15-45           4,750,000     4,839,305  
  Zimmer Holdings, Inc.     3.550     04-01-25           4,670,000     4,473,239  
  Health care providers and services 0.9%  
  Covenant Surgical Partners, Inc. (S)     8.750     08-01-19           1,663,000     1,663,000  
  HCA, Inc.     5.250     04-15-25           4,030,000     4,176,088  
  HCA, Inc.     7.500     02-15-22           3,110,000     3,567,761  
  Medco Health Solutions, Inc.     7.125     03-15-18           2,600,000     2,904,190  
  Select Medical Corp.     6.375     06-01-21           2,980,000     3,024,700  
  UnitedHealth Group, Inc.     1.450     07-17-17           4,625,000     4,628,524  
  UnitedHealth Group, Inc.     3.750     07-15-25           4,880,000     4,995,300  
  WellCare Health Plans, Inc.     5.750     11-15-20           1,860,000     1,950,675  
  Pharmaceuticals 0.9%  
  AbbVie, Inc.     3.600     05-14-25           5,645,000     5,550,819  
  Actavis Funding SCS     3.800     03-15-25           3,435,000     3,327,653  
  Endo Finance LLC (S)     6.000     07-15-23           1,480,000     1,539,200  
  Endo Finance LLC (S)     6.000     02-01-25           1,340,000     1,376,850  
  Endo Finance LLC (S)     7.750     01-15-22           3,050,000     3,255,875  
  Mallinckrodt International Finance SA (S)     5.500     04-15-25           660,000     654,225  
  Mallinckrodt International Finance SA (S)     5.750     08-01-22           3,010,000     3,073,963  
  Quintiles Transnational Corp. (S)     4.875     05-15-23           1,270,000     1,295,400  
  Valeant Pharmaceuticals International, Inc. (S)     5.500     03-01-23           1,035,000     1,049,231  
  Valeant Pharmaceuticals International, Inc. (S)     5.625     12-01-21           1,875,000     1,917,188  
  Valeant Pharmaceuticals International, Inc. (S)     6.125     04-15-25           2,773,000     2,856,190  
  Valeant Pharmaceuticals International, Inc. (S)     7.500     07-15-21           2,485,000     2,668,269  
  Industrials 6.0%     181,153,512  
  Aerospace and defense 1.0%  
  Embraer Overseas, Ltd. (S)     5.696     09-16-23           1,658,000     1,676,653  

SEE NOTES TO FUND'S INVESTMENTS7

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Industrials  (continued)        
  Aerospace and defense  (continued)  
  Huntington Ingalls Industries, Inc. (S)     5.000     12-15-21           3,650,000     $3,768,625  
  Huntington Ingalls Industries, Inc.     7.125     03-15-21           2,550,000     2,699,813  
  Lockheed Martin Corp.     2.900     03-01-25           6,341,000     5,985,790  
  Textron Financial Corp. (6.000% to 2-15-17, then 3 month LIBOR + 1.735%) (S)     6.000     02-15-67           9,625,000     7,700,000  
  Textron, Inc.     3.875     03-01-25           2,330,000     2,308,033  
  Textron, Inc.     5.600     12-01-17           2,195,000     2,360,389  
  Textron, Inc.     7.250     10-01-19           2,230,000     2,604,709  
  Air freight and logistics 0.2%  
  XPO Logistics, Inc. (S)     6.500     06-15-22           4,865,000     4,792,025  
  Airlines 2.3%  
  America West Airlines 2000-1 Pass Through Trust     8.057     07-02-20           412,856     470,656  
  American Airlines 2011-1 Class B Pass Through Trust (S)     7.000     01-31-18           5,811,948     6,175,194  
  American Airlines 2013-2 Class A Pass Through Trust     4.950     01-15-23           3,853,164     4,103,619  
  American Airlines 2013-2 Class B Pass Through Trust (S)     5.600     07-15-20           1,205,034     1,238,173  
  American Airlines 2015-1 Class B Pass Through Trust     3.700     05-01-23           6,170,000     6,062,025  
  British Airways PLC 2013-1 Class A Pass Through Trust (S)     4.625     06-20-24           6,797,223     7,137,084  
  British Airways PLC 2013-1 Class B Pass Through Trust (S)     5.625     06-20-20           1,801,219     1,895,783  
  Continental Airlines 1997-4 Class A Pass Through Trust     6.900     01-02-18           967,712     1,009,420  
  Continental Airlines 1998-1 Class A Pass Through Trust     6.648     09-15-17           228,963     235,260  
  Continental Airlines 1999-1 Class A Pass Through Trust     6.545     02-02-19           840,021     909,322  
  Continental Airlines 2000-2 Class B Pass Through Trust     8.307     04-02-18           169,459     179,627  
  Continental Airlines 2007-1 Class A Pass Through Trust     5.983     04-19-22           3,646,382     4,024,694  
  Continental Airlines 2012-1 Class B Pass Through Trust     6.250     04-11-20           1,215,874     1,267,549  
  Delta Air Lines 2002-1 Class G-1 Pass Through Trust     6.718     01-02-23           4,395,760     5,000,177  
  Delta Air Lines 2007-1 Class A Pass Through Trust     6.821     08-10-22           5,133,036     5,890,159  
  Delta Air Lines 2010-1 Class A Pass Through Trust     6.200     07-02-18           713,561     766,186  
  Delta Air Lines 2011-1 Class A Pass Through Trust     5.300     04-15-19           1,206,014     1,272,344  
  Northwest Airlines 2007-1 Class A Pass Through Trust     7.027     11-01-19           2,308,608     2,571,212  
  UAL 2009-1 Pass Through Trust     10.400     11-01-16           228,110     244,305  
  UAL 2009-2A Pass Through Trust     9.750     01-15-17           934,656     1,004,755  
  United Airlines 2014-2 Class A Pass Through Trust     3.750     09-03-26           4,510,000     4,521,275  
  United Airlines 2014-2 Class B Pass Through Trust     4.625     09-03-22           5,280,000     5,280,000  
  US Airways 2010-1 Class A Pass Through Trust     6.250     04-22-23           3,695,635     4,102,155  
  US Airways 2012-1 Class A Pass Through Trust     5.900     10-01-24           3,017,385     3,304,036  
  US Airways 2012-1 Class C Pass Through Trust     9.125     10-01-15           606,424     609,214  
  Building products 0.4%  
  Builders FirstSource, Inc. (S)     10.750     08-15-23           2,445,000     2,481,675  
  Masco Corp.     4.450     04-01-25           1,490,000     1,489,836  
  Masco Corp.     7.125     03-15-20           2,480,000     2,864,400  
  Owens Corning     4.200     12-15-22           4,330,000     4,352,581  
  Commercial services and supplies 0.1%  
  Casella Waste Systems, Inc.     7.750     02-15-19           2,610,000     2,603,475  
  Safway Group Holding LLC (S)     7.000     05-15-18           1,905,000     1,942,890  
  Construction and engineering 0.1%  
  Tutor Perini Corp.     7.625     11-01-18           3,670,000     3,752,575  
  Electrical equipment 0.0%  
  EnerSys (S)     5.000     04-30-23           1,000,000     962,500  
  Industrial conglomerates 0.2%  
  Nemak SAB de CV (S)     5.500     02-28-23           2,780,000     2,773,050  
  Odebrecht Finance, Ltd. (S)     7.125     06-26-42           2,720,000     1,761,200  

8SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Industrials  (continued)        
  Industrial conglomerates  (continued)  
  Odebrecht Finance, Ltd. (Q)(S)     7.500     09-21-15           1,105,000     $773,500  
  Machinery 0.3%  
  Optimas OE Solutions Holding LLC (S)     8.625     06-01-21           1,435,000     1,395,538  
  SPL Logistics Escrow LLC (S)     8.875     08-01-20           1,871,000     1,992,615  
  Trinity Industries, Inc.     4.550     10-01-24           6,155,000     5,774,461  
  Marine 0.1%  
  Global Ship Lease, Inc. (S)     10.000     04-01-19           1,300,000     1,326,000  
  Navios South American Logistics, Inc. (S)     7.250     05-01-22           3,060,000     2,822,850  
  Road and rail 0.2%  
  Penske Truck Leasing Company LP (S)     3.375     02-01-22           6,065,000     5,874,498  
  Trading companies and distributors 1.0%  
  Ahern Rentals, Inc. (S)     7.375     05-15-23           4,355,000     3,810,625  
  Air Lease Corp.     3.375     01-15-19           3,910,000     3,939,325  
  Air Lease Corp.     3.875     04-01-21           2,340,000     2,363,400  
  Air Lease Corp.     4.750     03-01-20           2,125,000     2,249,908  
  Air Lease Corp.     5.625     04-01-17           1,790,000     1,879,500  
  Aircastle, Ltd.     5.500     02-15-22           2,145,000     2,220,075  
  Aircastle, Ltd.     6.250     12-01-19           1,760,000     1,909,600  
  Aircastle, Ltd.     7.625     04-15-20           1,440,000     1,634,400  
  Ashtead Capital, Inc. (S)     5.625     10-01-24           1,605,000     1,593,974  
  International Lease Finance Corp. (S)     7.125     09-01-18           2,720,000     3,006,062  
  United Rentals North America, Inc.     5.500     07-15-25           2,800,000     2,688,000  
  United Rentals North America, Inc.     5.750     11-15-24           3,270,000     3,220,950  
  Transportation infrastructure 0.1%  
  Florida East Coast Holdings Corp. (S)     6.750     05-01-19           2,505,000     2,523,788  
  Information technology 0.6%     16,664,606  
  Electronic equipment, instruments and components 0.1%  
  Zebra Technologies Corp. (S)     7.250     10-15-22           2,515,000     2,691,050  
  Internet software and services 0.3%  
  Ancestry.com Holdings LLC, PIK (S)     9.625     10-15-18           1,760,000     1,777,600  
  Ancestry.com, Inc.     11.000     12-15-20           2,525,000     2,805,906  
  VeriSign, Inc.     5.250     04-01-25           2,800,000     2,821,000  
  IT services 0.1%  
  Sixsigma Networks Mexico SA de CV (S)     8.250     11-07-21           2,870,000     2,805,425  
  Semiconductors and semiconductor equipment 0.1%  
  Micron Technology, Inc.     5.875     02-15-22           3,050,000     3,004,250  
  Software 0.0%  
  Infor US, Inc. (S)     6.500     05-15-22           810,000     759,375  
  Materials 2.2%     67,400,990  
  Chemicals 0.8%  
  Braskem Finance, Ltd. (S)     7.000     05-07-20           5,150,000     5,150,000  
  Incitec Pivot Finance LLC (S)     6.000     12-10-19           2,025,000     2,217,000  
  NOVA Chemicals Corp. (S)     5.000     05-01-25           5,345,000     5,345,000  
  Platform Specialty Products Corp. (S)     6.500     02-01-22           5,340,000     5,170,882  
  Rain CII Carbon LLC (S)     8.250     01-15-21           1,445,000     1,365,525  
  Rockwood Specialties Group, Inc.     4.625     10-15-20           5,585,000     5,780,475  
  Construction materials 0.5%  
  American Gilsonite Company (S)     11.500     09-01-17           3,035,000     2,428,000  

SEE NOTES TO FUND'S INVESTMENTS9

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Materials  (continued)        
  Construction materials  (continued)  
  Cemex SAB de CV (S)     6.125     05-05-25           3,400,000     $3,247,000  
  Cemex SAB de CV (S)     6.500     12-10-19           3,500,000     3,552,500  
  Norbord, Inc. (S)     6.250     04-15-23           2,325,000     2,336,625  
  Vulcan Materials Company     4.500     04-01-25           2,830,000     2,780,475  
  Containers and packaging 0.1%  
  Ardagh Finance Holdings SA, PIK (S)     8.625     06-15-19           2,531,597     2,670,835  
  Wise Metals Group LLC (S)     8.750     12-15-18           2,330,000     2,207,675  
  Metals and mining 0.8%  
  Allegheny Technologies, Inc.     9.375     06-01-19           6,035,000     6,472,538  
  ArcelorMittal     10.600     06-01-19           2,845,000     3,314,425  
  Commercial Metals Company     7.350     08-15-18           2,540,000     2,705,100  
  Glencore Finance Canada, Ltd. (S)     4.250     10-25-22           2,195,000     2,009,171  
  Glencore Funding LLC (S)     4.125     05-30-23           1,865,000     1,676,247  
  Glencore Funding LLC (S)     4.625     04-29-24           2,790,000     2,530,279  
  MMC Norilsk Nickel OJSC (S)     5.550     10-28-20           1,775,000     1,729,738  
  Rain CII Carbon LLC (S)     8.000     12-01-18           2,900,000     2,711,500  
  Telecommunication services 1.9%     58,840,078  
  Diversified telecommunication services 0.9%  
  AT&T, Inc.     4.750     05-15-46           1,770,000     1,613,835  
  CCO Safari II LLC (S)     6.484     10-23-45           4,190,000     4,249,548  
  Columbus International, Inc. (S)     7.375     03-30-21           1,525,000     1,605,063  
  GCI, Inc.     6.875     04-15-25           2,340,000     2,404,350  
  T-Mobile USA, Inc.     6.125     01-15-22           1,530,000     1,577,813  
  T-Mobile USA, Inc.     6.250     04-01-21           1,770,000     1,828,056  
  Telecom Italia Capital SA     7.200     07-18-36           2,585,000     2,854,809  
  Verizon Communications, Inc.     4.400     11-01-34           3,005,000     2,763,200  
  Verizon Communications, Inc.     5.012     08-21-54           2,529,000     2,306,929  
  Verizon Communications, Inc.     6.550     09-15-43           2,785,000     3,288,428  
  Wind Acquisition Finance SA (S)     7.375     04-23-21           2,610,000     2,668,725  
  Wireless telecommunication services 1.0%  
  CC Holdings GS V LLC     3.849     04-15-23           3,960,000     3,895,080  
  Comcel Trust (S)     6.875     02-06-24           3,320,000     3,411,300  
  Digicel Group, Ltd. (S)     8.250     09-30-20           3,190,000     2,950,750  
  Digicel, Ltd. (S)     6.750     03-01-23           2,000,000     1,835,000  
  Millicom International Cellular SA (S)     4.750     05-22-20           3,530,000     3,379,975  
  Millicom International Cellular SA (S)     6.625     10-15-21           3,165,000     3,150,758  
  MTN Mauritius Investments, Ltd. (S)     4.755     11-11-24           1,375,000     1,378,135  
  SBA Tower Trust (S)     2.933     12-15-42           2,805,000     2,842,177  
  SBA Tower Trust (S)     3.598     04-15-43           2,770,000     2,768,493  
  SBA Tower Trust (S)     5.101     04-15-42           2,855,000     2,948,324  
  SoftBank Corp. (S)     4.500     04-15-20           3,110,000     3,119,330  
  Utilities 1.1%     34,131,466  
  Electric utilities 0.7%  
  Beaver Valley II Funding Corp.     9.000     06-01-17           209,000     225,720  
  BVPS II Funding Corp.     8.890     06-01-17           563,000     583,552  
  Electricite de France SA (5.250% to 1-29-23, then 10 Year Swap Rate + 3.709%) (Q)(S)     5.250     01-29-23           3,650,000     3,686,500  
  Empresa Electrica Angamos SA (S)     4.875     05-25-29           3,490,000     3,271,875  
  Israel Electric Corp., Ltd. (S)     5.625     06-21-18           3,050,000     3,269,600  
  Israel Electric Corp., Ltd. (S)     6.875     06-21-23           1,675,000     1,917,312  

10SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Utilities  (continued)        
  Electric utilities  (continued)  
  Israel Electric Corp., Ltd. (S)     7.250     01-15-19           2,890,000     $3,294,600  
  PNPP II Funding Corp.     9.120     05-30-16           104,000     105,969  
  Southern California Edison Company (6.250% to 2-1-22, then 3 month LIBOR + 4.199%) (Q)     6.250     02-01-22           2,060,000     2,275,270  
  Talen Energy Supply LLC (S)     6.500     06-01-25           2,185,000     2,026,588  
  W3A Funding Corp.     8.090     01-02-17           948,668     948,531  
  Independent power and renewable electricity producers 0.3%  
  Dynegy, Inc.     6.750     11-01-19           1,145,000     1,187,222  
  Dynegy, Inc.     7.625     11-01-24           5,200,000     5,408,000  
  NRG Yield Operating LLC     5.375     08-15-24           2,765,000     2,661,313  
  Multi-utilities 0.1%  
  Columbia Pipeline Group, Inc. (S)     4.500     06-01-25           3,430,000     3,269,414  
  U.S. Government and Agency obligations 25.5%     $771,543,353  
  (Cost $768,956,143)  
  U.S. Government 8.8%     266,339,162  
  U.S. Treasury  
        Bond     2.000     08-15-25     72,178,000     70,798,318  
        Bond     2.500     02-15-45     129,073,000     116,895,092  
        Bond     3.000     05-15-45     9,869,000     9,938,902  
        Bond     3.125     02-15-42     63,050,000     65,273,143  
        Note     0.875     11-15-17     2,310,000     2,311,023  
        Note     1.500     11-30-19     1,120,000     1,122,684  
  U.S. Government Agency 16.7%     505,204,191  
  Federal Home Loan Bank  
        15 Yr Pass Thru     2.900     09-05-25     1,390,476     1,360,894  
        15 Yr Pass Thru     3.170     10-04-27     1,425,000     1,399,307  
        15 Yr Pass Thru     3.250     06-21-27     1,915,152     1,915,785  
        30 Yr Pass Thru     4.000     03-01-42     13,833,827     14,763,829  
  Federal Home Loan Mortgage Corp.  
        30 Yr Pass Thru (P)     2.547     06-01-44     3,163,440     3,257,843  
        30 Yr Pass Thru (P)     2.673     05-01-44     2,981,871     3,081,743  
        30 Yr Pass Thru (P)     2.997     03-01-44     770,729     798,652  
        30 Yr Pass Thru     3.000     03-01-43     6,385,656     6,457,495  
        30 Yr Pass Thru     3.500     05-01-42     4,383,930     4,554,321  
        30 Yr Pass Thru     3.500     06-01-42     10,506,556     10,914,916  
        30 Yr Pass Thru     3.500     09-01-42     3,390,316     3,518,379  
        30 Yr Pass Thru     3.500     04-01-44     11,363,052     11,872,169  
        30 Yr Pass Thru     4.000     11-01-43     8,003,232     8,557,519  
        30 Yr Pass Thru     4.000     02-01-44     2,161,353     2,303,614  
        30 Yr Pass Thru     4.500     11-01-39     5,439,533     5,903,575  
        30 Yr Pass Thru     4.500     02-01-41     8,282,752     8,991,934  
        30 Yr Pass Thru     4.500     03-01-41     4,387,948     4,817,130  
        30 Yr Pass Thru     5.500     07-01-37     148,898     166,923  
        30 Yr Pass Thru     5.500     05-01-38     530,376     594,580  
        30 Yr Pass Thru     5.500     12-01-38     291,327     324,773  
        30 Yr Pass Thru     5.500     11-01-39     11,601,562     13,004,172  
  Federal National Mortgage Association  
        15 Yr Pass Thru     2.500     06-01-27     390,067     399,483  
        15 Yr Pass Thru     3.000     09-01-27     6,658,474     6,937,817  
        15 Yr Pass Thru     3.500     02-01-26     1,009,905     1,065,845  
        15 Yr Pass Thru     3.500     03-01-26     8,295,484     8,754,976  

SEE NOTES TO FUND'S INVESTMENTS11

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  U.S. Government Agency  (continued)        
        15 Yr Pass Thru     4.000     12-01-24     4,567,211     $4,871,394  
        30 Yr Pass Thru (P)     2.520     06-01-44     5,343,199     5,505,531  
        30 Yr Pass Thru (P)     2.549     04-01-44     5,365,348     5,535,940  
        30 Yr Pass Thru (P)     2.926     03-01-44     722,672     746,031  
        30 Yr Pass Thru     3.000     08-01-42     277,420     280,552  
        30 Yr Pass Thru     3.000     10-01-42     7,015,890     7,072,072  
        30 Yr Pass Thru     3.000     12-01-42     3,553,791     3,587,802  
        30 Yr Pass Thru     3.000     01-01-43     2,550,246     2,570,668  
        30 Yr Pass Thru     3.000     03-01-43     1,806,237     1,825,781  
        30 Yr Pass Thru     3.000     05-01-43     2,503,213     2,530,299  
        30 Yr Pass Thru     3.000     06-01-43     4,380,316     4,412,655  
        30 Yr Pass Thru     3.500     11-01-40     6,474,371     6,732,334  
        30 Yr Pass Thru     3.500     06-01-42     6,027,546     6,278,065  
        30 Yr Pass Thru     3.500     08-01-42     10,008,933     10,424,928  
        30 Yr Pass Thru     3.500     01-01-43     4,238,099     4,402,988  
        30 Yr Pass Thru     3.500     01-01-43     22,966,595     23,870,902  
        30 Yr Pass Thru     3.500     07-01-43     20,081,691     20,947,712  
        30 Yr Pass Thru     3.500     01-01-45     6,932,021     7,224,465  
        30 Yr Pass Thru     3.500     04-01-45     14,029,061     14,577,070  
        30 Yr Pass Thru     3.500     04-01-45     6,839,270     7,106,428  
        30 Yr Pass Thru     4.000     11-01-40     2,221,198     2,382,234  
        30 Yr Pass Thru     4.000     01-01-41     11,724,477     12,512,829  
        30 Yr Pass Thru     4.000     09-01-41     11,284,011     12,138,850  
        30 Yr Pass Thru     4.000     10-01-41     11,367,344     12,159,790  
        30 Yr Pass Thru     4.000     01-01-42     6,487,155     6,965,582  
        30 Yr Pass Thru     4.000     07-01-42     860,335     923,247  
        30 Yr Pass Thru     4.000     09-01-43     13,487,019     14,557,549  
        30 Yr Pass Thru     4.000     10-01-43     24,353,087     26,182,046  
        30 Yr Pass Thru     4.000     01-01-44     6,093,731     6,556,473  
        30 Yr Pass Thru     4.500     11-01-39     9,546,177     10,365,806  
        30 Yr Pass Thru     4.500     08-01-40     11,610,619     12,611,128  
        30 Yr Pass Thru     4.500     02-01-41     11,485,652     12,486,160  
        30 Yr Pass Thru     4.500     05-01-41     9,837,852     10,710,193  
        30 Yr Pass Thru     4.500     06-01-41     12,138,843     13,243,667  
        30 Yr Pass Thru     4.500     07-01-41     5,346,402     5,833,008  
        30 Yr Pass Thru     4.500     08-01-41     7,435,423     8,116,809  
        30 Yr Pass Thru     4.500     05-01-42     14,523,541     15,845,409  
        30 Yr Pass Thru     4.500     01-01-43     3,278,745     3,564,354  
        30 Yr Pass Thru     5.000     08-01-40     7,913,723     8,742,809  
        30 Yr Pass Thru     5.000     09-01-40     6,935,571     7,664,348  
        30 Yr Pass Thru     5.000     02-01-41     5,644,402     6,254,262  
        30 Yr Pass Thru     5.000     03-01-41     6,166,690     6,848,398  
        30 Yr Pass Thru     5.000     04-01-41     2,076,903     2,326,293  
        30 Yr Pass Thru     5.000     07-01-42     4,600,820     5,084,265  
        30 Yr Pass Thru     5.500     05-01-35     2,573,940     2,889,382  
        30 Yr Pass Thru     5.500     04-01-36     642,770     721,610  
        30 Yr Pass Thru     5.500     05-01-36     2,835,790     3,185,390  
        30 Yr Pass Thru     5.500     01-01-39     2,456,418     2,765,389  
        30 Yr Pass Thru     6.000     02-01-37     635,741     725,312  
        30 Yr Pass Thru     6.500     01-01-39     2,993,763     3,441,735  
        30 Yr Pass Thru     6.500     06-01-39     1,026,203     1,178,573  

12SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Foreign government obligations 0.2%     $5,296,853  
  (Cost $4,755,917)  
  Argentina 0.2%     5,296,853  
  City of Buenos Aires (S)     9.950     03-01-17           2,645,000     2,737,906  
  Republic of Argentina (H)     8.280     12-31-33           2,502,638     2,558,947  
  Municipal bonds 0.2%     $5,450,735  
  (Cost $5,460,500)  
  State of Hawaii Department of Business Economic Development & Tourism     1.467     07-01-22           5,460,947     5,450,735  
  Term loans (M) 0.4%     $13,515,757  
  (Cost $13,743,386)  
  Consumer staples 0.1%     2,464,749  
  Household products 0.1%  
  The Sun Products Corp.     5.500     03-23-20     2,564,109     2,464,749  
  Financials 0.1%     1,551,587  
  Capital markets 0.1%  
  Walter Investment Management Corp.     4.750     12-19-20     1,643,339     1,551,587  
  Health care 0.0%     894,381  
  Health care providers and services 0.0%  
  Surgery Center Holdings, Inc.     5.250     11-03-20     895,500     894,381  
  Industrials 0.1%     5,493,932  
  Aerospace and defense 0.0%  
  WP CPP Holdings LLC     4.500     12-28-19     975,000     966,469  
  Airlines 0.1%  
  Delta Air Lines, Inc.     3.250     10-18-18     1,660,455     1,655,525  
  Gol LuxCo SA (T)         TBD 08-19-20     2,890,000     2,871,938  
  Utilities 0.1%     3,111,108  
  Electric utilities 0.1%  
  ExGen Texas Power LLC     5.750     09-16-21     2,048,939     1,961,859  
  La Frontera Generation LLC     4.500     09-30-20     1,189,391     1,149,249  
  Capital preferred securities 1.0%     $30,182,916  
  (Cost $30,224,973)  
  Financials 1.0%     30,182,916  
  Banks 0.2%  
  BAC Capital Trust XIV, Series G (P)(Q)     4.000     09-04-15           4,938,000     3,795,495  
  Sovereign Capital Trust VI     7.908     06-13-36           2,728,000     2,811,962  
  Capital markets 0.3%  
  Goldman Sachs Capital II (P)(Q)     4.000     09-21-15           6,635,000     4,874,071  
  State Street Capital Trust IV (P)     1.286     06-10-37           5,935,000     5,059,588  
  Insurance 0.5%  
  MetLife Capital Trust IV (7.875% to 12-15-32, then 3 month LIBOR + 3.960%) (S)     7.875     12-15-67           960,000     1,197,600  
  MetLife Capital Trust X (9.250% to 4-8-33 then 3 month LIBOR + 5.540%) (S)     9.250     04-08-68           2,820,000     3,905,700  
  ZFS Finance USA Trust II (6.450% to 6-15-16 then 3 month LIBOR + 2.000%) (S)     6.450     12-15-65           6,740,000     6,841,100  
  ZFS Finance USA Trust V (6.500% to 5-9-17, then 3 month LIBOR + 2.285%) (S)     6.500     05-09-67           1,640,000     1,697,400  
  Collateralized mortgage obligations 12.7%     $382,611,988  
  (Cost $373,516,747)  
  Commercial and residential 11.5%     346,677,891  
  Adjustable Rate Mortgage Trust
Series 2005-4, Class 7A12 (P)
    0.779     08-25-35           1,767,483     1,698,896  

SEE NOTES TO FUND'S INVESTMENTS13

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Commercial and residential  (continued)        
  American Home Mortgage Assets Trust
Series 2006-6, Class XP IO
    2.819     12-25-46           6,751,426     $678,505  
  American Home Mortgage Investment Trust  
        Series 2005-1, Class 1A1 (P)     0.419     06-25-45     3,630,774     3,381,590  
        Series 2005-1, Class AHM (P)     2.480     06-25-45     2,678,614     2,655,055  
  Americold 2010 LLC Trust
Series 2010-ARTA, Class D (S)
    7.443     01-14-29           4,915,000     5,585,809  
  AOA Mortgage Trust
Series 2015-1177, Class C (P) (S)
    3.110     12-13-29           3,306,000     3,229,238  
  BAMLL Commercial Mortgage Securities Trust  
        Series 2013-DSNY, Class E (P) (S)     2.787     09-15-26     2,300,000     2,299,998  
        Series 2014-ICTS, Class D (P) (S)     2.097     06-15-28     2,295,000     2,279,112  
        Series 2014-ICTS, Class E (P) (S)     3.148     06-15-28     1,425,000     1,417,972  
        Series 2015-200P, Class F (P) (S)     3.716     04-14-33     4,230,000     3,674,318  
  BBCMS Trust
Series 2015, Class C (P) (S)
    2.187     02-15-28           2,145,000     2,118,164  
  Bear Stearns Adjustable Rate Mortgage Trust  
        Series 2005-2, Class A1 (P)     2.680     03-25-35     3,495,056     3,508,676  
        Series 2005-5, Class A2 (P)     2.260     08-25-35     4,134,712     4,152,288  
  Bear Stearns ALT-A Trust  
        Series 2004-12, Class 1A1 (P)     0.899     01-25-35     5,551,849     5,388,031  
        Series 2005-5, Class 1A4 (P)     0.759     07-25-35     3,100,071     2,947,377  
        Series 2005-7, Class 11A1 (P)     0.739     08-25-35     4,501,133     4,290,867  
  Bear Stearns Asset Backed Securities Trust
Series 2004-AC5, Class A1 (P)
    5.750     10-25-34           4,500,519     4,575,241  
  BHMS Mortgage Trust
Series 2014-ATLS, Class DFL (P) (S)
    3.191     07-05-33           5,100,000     5,013,463  
  BLCP Hotel Trust
Series 2014-CLRN, Class D (P) (S)
    2.698     08-15-29           6,475,000     6,445,034  
  BWAY Mortgage Trust  
        Series 2013-1515, Class F (P) (S)     4.058     03-10-33     5,190,000     4,810,948  
        Series 2015-1740, Class D (P) (S)     3.787     01-13-35     3,795,000     3,635,750  
  BXHTL Mortgage Trust  
        Series 2015-JWRZ, Class DR2 (P) (S)     3.950     05-15-29     4,625,000     4,465,410  
        Series 2015-JWRZ, Class GL2 (P) (S)     3.886     05-15-29     4,175,000     4,126,140  
  CDGJ Commercial Mortgage Trust
Series 2014-BXCH, Class D (P) (S)
    3.198     12-15-27           6,335,000     6,322,634  
  CGBAM Commercial Mortgage
Series 2015-SMRT, Class F (P) (S)
    3.912     04-10-28           3,345,000     3,180,075  
  Commercial Mortgage Trust (Deutsche Bank)  
        Series 2012-CR3, Class XA IO     2.308     10-15-45     44,106,400     4,402,127  
        Series 2012-LC4, Class B (P)     4.934     12-10-44     2,145,000     2,347,793  
        Series 2013-300P, Class D (P) (S)     4.540     08-10-30     5,125,000     5,255,662  
        Series 2013-CR11, Class B (P)     5.331     10-10-46     7,089,000     7,806,641  
        Series 2013-CR13, Class C (P)     4.912     12-10-23     3,505,000     3,612,323  
        Series 2013-CR6, Class XA IO     1.651     03-10-46     37,864,982     2,168,225  
        Series 2013-LC13, Class B (P) (S)     5.009     08-10-46     4,015,000     4,380,385  
        Series 2014-FL4, Class D (P) (S)     2.030     07-13-31     4,865,000     4,845,224  
        Series 2014-TWC, Class D (P) (S)     2.437     02-13-32     4,270,000     4,236,007  
  Commercial Mortgage Trust (Deutsche Bank/Morgan Stanley)
Series 2014-PAT, Class D (P) (S)
    2.336     08-13-27           6,190,000     6,175,026  
  Commercial Mortgage Trust (Wells Fargo)  
        Series 2012-CR2, Class XA IO     2.044     08-15-45     21,366,905     1,927,273  
        Series 2014-CR15, Class XA IO     1.485     02-10-47     52,036,588     3,273,778  
        Series 2014-CR16, Class C (P)     5.069     04-10-47     4,250,000     4,361,516  

14SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Commercial and residential  (continued)        
  Core Industrial Trust
Series 2015-CALW, Class F (P) (S)
    3.979     02-10-34           4,740,000     $4,527,302  
  Credit Suisse Mortgage Trust
Series 2014-ICE, Class D (P) (S)
    2.348     04-15-27           6,395,000     6,346,916  
  Deutsche Mortgage Securities, Inc. Mortgage Loan Trust
Series 2004-4, Class 2AR1 (P)
    0.469     06-25-34           2,970,390     2,812,228  
  Extended Stay America Trust
Series 2013-ESFL, Class DFL (P) (S)
    3.334     12-05-31           690,859     689,108  
  GAHR Commercial Mortgage Trust  
        Series 2015-NRF, Class DFX (P) (S)     3.495     12-15-19     2,345,000     2,282,710  
        Series 2015-NRF, Class EFX (P) (S)     3.495     12-15-19     4,620,000     4,325,073  
  GMAC Mortgage Loan Trust
Series 2004-AR2, Class 3A (P)
    3.155     08-19-34           2,131,248     2,059,124  
  Great Wolf Trust
Series 2015-WOLF, Class D (P) (S)
    3.688     05-15-34           5,405,000     5,406,757  
  HarborView Mortgage Loan Trust  
        Series 2005-11, Class X IO     2.394     08-19-45     7,791,782     447,724  
        Series 2005-2, Class IX IO     2.139     05-19-35     35,396,653     2,600,132  
        Series 2005-9, Class 2A1C (P)     0.652     06-20-35     4,056,857     3,725,107  
        Series 2005-8, Class 1X IO     2.064     09-19-35     9,098,243     514,924  
        Series 2007-3, Class ES IO (S)     0.350     05-19-47     52,083,096     864,579  
        Series 2007-4, Class ES IO     0.350     07-19-47     54,077,756     838,205  
        Series 2007-6, Class ES IO (S)     0.342     08-19-37     41,871,991     556,897  
  HILT Mortgage Trust
Series 2014-ORL, Class D (P) (S)
    2.338     07-15-29           4,445,000     4,397,487  
  Hilton USA Trust  
        Series 2013-HLF, Class EFL (P) (S)     3.941     11-05-30     4,025,625     4,021,370  
        Series 2013-HLT, Class DFX (S)     4.407     11-05-30     4,112,000     4,128,950  
  IndyMac Index Mortgage Loan Trust  
        Series 2005-AR12, Class AX2 IO     2.333     07-25-35     59,505,740     4,297,266  
        Series 2005-AR8, Class AX2 IO     2.349     04-25-35     55,049,426     3,939,117  
        Series 2005-AR18, Class 1X IO     2.096     10-25-36     22,763,437     2,076,720  
        Series 2005-AR18, Class 2X IO     1.774     10-25-36     34,676,897     1,418,909  
  JPMBB Commercial Mortgage Securities Trust
Series 2014-C19, Class C (P)
    4.833     04-15-47           7,040,000     7,029,215  
  JPMorgan Chase Commercial Mortgage Securities Trust  
        Series 2012-HSBC, Class XA IO (S)     1.582     07-05-32     20,100,000     1,730,027  
        Series 2014-FBLU, Class D (P) (S)     2.788     12-15-28     5,425,000     5,426,758  
        Series 2014-FBLU, Class E (P) (S)     3.687     12-15-28     3,965,000     3,962,165  
        Series 2014-FL5, Class C (P) (S)     2.200     07-15-31     8,245,000     8,219,861  
        Series 2014-INN, Class F (P) (S)     4.198     06-15-29     3,745,000     3,684,118  
        Series 2014-PHH, Class C (P) (S)     2.288     08-15-27     6,740,000     6,792,680  
        Series 2015-MAR7, Class C (S)     4.490     06-05-32     5,135,000     5,132,807  
  MASTR Adjustable Rate Mortgages Trust
Series 2004-11, Class M2 (P)
    1.299     11-25-34           3,370,000     3,257,590  
  Merrill Lynch Mortgage Investors Trust
Series 2005-2, Class 1A (P)
    1.673     10-25-35           3,861,753     3,745,013  
  Morgan Stanley Bank of America Merrill Lynch Trust  
        Series 2013-C7, Class C (P)     4.321     02-15-46     2,768,000     2,770,560  
        Series 2014-C18, Class 300D     5.279     08-15-31     2,795,000     2,779,795  
  Morgan Stanley Capital I Trust  
        Series 2014-150E, Class D (P) (S)     4.438     09-09-32     11,110,000     11,193,303  
        Series 2015, Class XLF1 C (P) (S)     2.394     08-14-31     4,775,000     4,751,092  
  Morgan Stanley Mortgage Loan Trust
Series 2004-6AR, Class 2A2 (P)
    2.847     08-25-34           3,955,850     3,918,024  

SEE NOTES TO FUND'S INVESTMENTS15

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Commercial and residential  (continued)        
  MortgageIT Trust
Series 2005-2, Class 1A2 (P)
    0.529     05-25-35           2,414,396     $2,253,802  
  Opteum Mortgage Acceptance Corp. Asset Backed Pass-Through Certificates  
        Series 2005-2, Class M2 (P)     0.649     04-25-35     2,952,672     2,700,174  
        Series 2005-3, Class APT (P)     0.489     07-25-35     2,959,337     2,883,197  
  Residential Accredit Loans, Inc.
Series 2005-QO4, Class XIO IO
    2.324     12-25-45           19,673,699     2,498,851  
  Springleaf Mortgage Loan Trust
Series 2012-3A, Class M1 (P) (S)
    2.660     12-25-59           1,520,000     1,522,187  
  Thornburg Mortgage Securities Trust
Series 2004-1, Class II2A (P)
    1.456     03-25-44           3,857,739     3,774,069  
  TMSQ Mortgage Trust
Series 2011-1500, Class D (P) (S)
    3.963     10-10-36           3,010,000     2,914,171  
  UBS Commercial Mortgage Trust
Series 2012-C1, Class B
    4.822     05-10-45           2,745,000     2,931,795  
  UBS-Barclays Commercial Mortgage Trust
Series 2012-C2, Class XA IO (S)
    1.885     05-10-63           38,512,798     2,642,864  
  VNDO Mortgage Trust
Series 2013-PENN, Class D (P) (S)
    4.079     12-13-29           5,963,000     6,036,786  
  Wachovia Bank Commercial Mortgage Trust
Series 2007-C31, Class AM (P)
    5.591     04-15-47           1,810,000     1,904,191  
  WaMu Mortgage Pass Through Certificates  
        Series 2005-AR13, Class X IO     1.477     10-25-45     1,009,321     73,373  
        Series 2005-AR19, Class A1A2 (P)     0.489     12-25-45     3,827,113     3,514,541  
        Series 2005-AR2, Class 2A1B (P)     0.569     01-25-45     1,382,417     1,251,404  
        Series 2005-AR2, Class 2A3 (P)     0.549     01-25-45     2,086,447     1,927,380  
        Series 2005-AR8, Class 2AB2 (P)     0.619     07-25-45     3,921,550     3,632,038  
  Wells Fargo Commercial Mortgage Trust  
        Series 2013-120B, Class C (P) (S)     2.799     03-18-28     8,550,000     8,381,830  
        Series 2013-BTC, Class E (P) (S)     3.668     04-16-35     5,005,000     4,610,951  
  WF-RBS Commercial Mortgage Trust  
        Series 2012-C9, Class XA IO (S)     2.344     11-15-45     40,765,043     4,072,428  
        Series 2013-C15, Class B (P)     4.630     08-15-46     1,132,000     1,186,648  
        Series 2013-C16, Class B (P)     5.148     09-15-46     1,885,000     2,045,393  
  WFCG Commercial Mortgage Trust
Series 2015-BXRP, Class D (P) (S)
    2.769     11-15-29           582,485     577,634  
  U.S. Government Agency 1.2%     35,934,097  
  Federal Home Loan Mortgage Corp.  
        Series 2015-DNA1, Class M2 (P)     2.049     10-25-27     3,890,000     3,867,675  
        Series 2015-DNA1, Class M3 (P)     3.499     10-25-27     1,325,000     1,255,321  
        Series 290, Class IO     3.500     11-15-32     9,851,053     1,743,612  
        Series 4136, Class IH IO     3.500     09-15-27     12,299,834     1,378,546  
        Series K017, Class X1 IO     1.571     12-25-21     20,290,559     1,453,413  
        Series K018, Class X1 IO     1.577     01-25-22     19,264,944     1,391,391  
        Series K021, Class X1 IO     1.629     06-25-22     4,583,944     375,640  
        Series K022, Class X1 IO     1.417     07-25-22     93,154,071     6,612,449  
        Series K709, Class X1 IO     1.662     03-25-19     16,848,365     786,263  
        Series K710, Class X1 IO     1.904     05-25-19     33,914,640     1,882,364  
        Series K711, Class X1 IO     1.824     07-25-19     62,339,207     3,379,782  
  Federal National Mortgage Association  
        Series 2012-137, Class QI IO     3.000     12-25-27     14,049,051     1,677,208  
        Series 2012-137, Class WI IO     3.500     12-25-32     10,394,928     1,847,053  
        Series 402, Class 3 IO     4.000     11-25-39     3,243,519     590,202  
        Series 402, Class 4 IO     4.000     10-25-39     1,948,882     321,546  

16SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  U.S. Government Agency  (continued)        
        Series 402, Class 7 IO     4.500     11-25-39     1,829,730     $348,759  
        Series 407, Class 15 IO     5.000     01-25-40     2,135,671     403,730  
        Series 407, Class 21 IO     5.000     01-25-39     965,606     202,733  
        Series 407, Class 7 IO     5.000     03-25-41     1,785,721     379,684  
        Series 407, Class 8 IO     5.000     03-25-41     905,789     198,205  
        Series 407, Class C6 IO     5.500     01-25-40     4,267,003     946,530  
        Series 408, Class C1 IO     4.000     12-25-40     61,020     14,050  
  Government National Mortgage Association  
        Series 2012-114, Class IO     0.922     01-16-53     10,081,312     747,560  
        Series 2013-42, Class IA IO     3.500     03-20-43     12,234,828     1,818,313  
        Series 2013-42, Class YI IO     3.500     03-20-43     16,027,904     2,312,068  
  Asset backed securities 15.9%     479,419,545  
  (Cost $476,419,846)  
  Asset Backed Securities 15.9%     479,419,545  
  ACE Securities Corp. Home Equity Loan Trust
Series 2005-HE3, Class M2 (P)
    0.874     05-25-35           2,434,980     2,337,834  
  Aegis Asset Backed Securities Trust  
        Series 2005-1, Class M3 (P)     0.749     03-25-35     55,000     51,863  
        Series 2005-4, Class M1 (P)     0.649     10-25-35     9,530,000     8,654,450  
  Ally Auto Receivables Trust  
        Series 2014-2, Class A4     1.840     01-15-20     5,695,000     5,740,526  
        Series 2015-1, Class A4     1.750     05-15-20     5,325,000     5,340,597  
  Ally Master Owner Trust  
        Series 2012-4, Class A     1.720     07-15-19     2,555,000     2,568,582  
        Series 2015-3, Class A     1.630     05-15-20     7,970,000     7,947,652  
  American Express Credit Account Master Trust  
        Series 2014-3, Class A     1.490     04-15-20     7,661,000     7,713,271  
        Series 2014-4, Class A     1.430     06-15-20     8,020,000     8,034,548  
  Ameriquest Mortgage Securities, Inc.
Series 2005-R3, Class M2 (P)
    0.669     05-25-35           3,320,000     3,142,798  
  Applebee's Funding LLC
Series 2014-1, Class A2 (S)
    4.277     09-05-44           10,250,000     10,435,904  
  Argent Securities, Inc.  
        Series 2003-W10, Class M1 (P)     1.279     01-25-34     1,585,140     1,464,966  
        Series 2004-W6, Class M1 (P)     1.024     05-25-34     1,201,170     1,146,878  
  BA Credit Card Trust
Series 2015-A2, Class A
    1.360     09-15-20           11,370,000     11,349,216  
  Bank of the West Auto Trust  
        Series 2014-1, Class A4 (S)     1.650     03-16-20     5,185,000     5,206,456  
        Series 2015-1, Class A4 (S)     1.660     09-15-20     6,545,000     6,528,153  
  Bravo Mortgage Asset Trust  
        Series 2006-1A, Class A2 (P) (S)     0.439     07-25-36     7,559,053     7,103,174  
        Series 2006-1A, Class A3 (P) (S)     0.549     07-25-36     3,885,000     3,316,283  
  California Republic Auto Receivables Trust  
        Series 2014-4, Class A4     1.840     06-15-20     4,230,000     4,277,000  
        Series 2015-2, Class A4     1.750     01-15-21     6,395,000     6,403,122  
  Capital One Multi-Asset Execution Trust  
        Series 2014-A5, Class A     1.480     07-15-20     12,785,000     12,854,729  
        Series 2015-A5, Class A5     1.600     05-17-21     7,558,000     7,570,826  
  CarMax Auto Owner Trust  
        Series 2014-3, Class A3     1.160     06-17-19     6,490,000     6,486,807  
        Series 2015-2, Class A4     1.800     03-15-21     3,145,000     3,143,056  
  Chase Issuance Trust  
        Series 2014-A6, Class A     1.260     07-15-19     5,279,000     5,289,616  

SEE NOTES TO FUND'S INVESTMENTS17

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Asset Backed Securities  (continued)        
        Series 2014-A7, Class A     1.380     11-15-19     7,490,000     $7,509,669  
        Series 2015, Class A2A     1.590     02-18-20     8,566,000     8,602,337  
        Series 2015-A5, Class A     1.360     04-15-20     13,310,000     13,277,710  
  Chrysler Capital Auto Receivables Trust  
        Series 2014-BA, Class A4 (S)     1.760     12-16-19     2,585,000     2,592,471  
        Series 2015-AA, Class A4 (S)     1.550     02-18-20     90,000     89,712  
  Citibank Credit Card Issuance Trust  
        Series 2007-A8, Class A8     5.650     09-20-19     4,455,000     4,845,641  
        Series 2014-A8, Class A8     1.730     04-09-20     8,635,000     8,710,789  
  Citicorp Residential Mortgage Securities, Inc.
Series 2007-2, Class A6 (P)
    6.265     06-25-37           1,055,254     1,092,828  
  CKE Restaurant Holdings, Inc.
Series 2013-1A, Class A2 (S)
    4.474     03-20-43           9,614,188     9,829,901  
  CNH Equipment Trust
Series 2015-C, Class A3
    1.660     11-16-20           9,430,000     9,442,108  
  ContiMortgage Home Equity Loan Trust
Series 1995-2, Class A5
    8.100     08-15-25           118,606     111,206  
  Countrywide Asset-Backed Certificates
Series 2004-10, Class AF5B (P)
    5.613     02-25-35           2,498,616     2,534,976  
  Credit Suisse Mortgage Trust
Series 2006-CF2, Class M1 (P) (S)
    0.669     05-25-36           4,899,330     4,781,903  
  Credit-Based Asset Servicing and Securitization LLC
Series 2005-CB4, Class M1 (P)
    0.619     07-25-35           1,680,000     1,622,988  
  DB Master Finance LLC
Series 2015-1A, Class A2II (S)
    3.980     02-20-45           9,437,575     9,438,887  
  Discover Card Execution Note Trust
Series 2014-A5, Class A
    1.390     04-15-20           9,845,000     9,858,635  
  Driven Brands Funding LLC
Series 2015-1A, Class A2 (S)
    5.216     07-20-45           4,960,000     4,910,400  
  Encore Credit Receivables Trust
Series 2005-2, Class M2 (P)
    0.889     11-25-35           3,880,000     3,786,927  
  EquiFirst Mortgage Loan Trust
Series 2004-3, Class M3 (P)
    1.174     12-25-34           2,943,453     2,638,708  
  Ford Credit Auto Owner Trust  
        Series 2014-1, Class B (S)     2.410     11-15-25     3,225,000     3,235,955  
        Series 2015-A, Class A4     1.640     06-15-20     3,682,000     3,694,574  
        Series 2015-B, Class A4     1.580     08-15-20     3,910,000     3,920,123  
  Ford Credit Floorplan Master Owner Trust  
        Series 2012-5, Class A     1.490     09-15-19     5,940,000     5,943,101  
        Series 2014-4, Class A1     1.400     08-15-19     9,091,000     9,083,918  
        Series 2015-1, Class A1     1.420     01-15-20     7,550,000     7,527,803  
  GE Equipment Midticket LLC
Series 2014-1, Class A4
    1.590     08-22-23           1,580,000     1,590,123  
  GM Financial Automobile Leasing Trust  
        Series 2015-1, Class A4     1.730     06-20-19     2,045,000     2,054,472  
        Series 2015-2, Class A4     1.850     07-22-19     7,012,000     7,049,051  
  GMF Floorplan Owner Revolving Trust
Series 2015-1, Class A1 (S)
    1.650     05-15-20           4,370,000     4,342,176  
  GSAA Home Equity Trust
Series 2005-11, Class 3A1 (P)
    0.469     10-25-35           3,458,223     3,253,365  
  GSAA Trust
Series 2005-10, Class M3 (P)
    0.749     06-25-35           4,265,000     4,090,613  
  Home Equity Asset Trust
Series 2005-1, Class M4 (P)
    1.219     05-25-35           2,085,000     2,003,351  
  Home Equity Mortgage Loan Asset-Backed Trust
Series 2005-C, Class AII3 (P)
    0.569     10-25-25           2,685,931     2,590,999  

18SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Asset Backed Securities  (continued)        
  Honda Auto Receivables Owner Trust  
        Series 2014-3, Class A4     1.310     10-15-20     11,010,000     $11,011,839  
        Series 2015-1, Class A4     1.320     11-16-20     45,000     44,897  
        Series 2015-2, Class A4     1.470     08-23-21     5,660,000     5,652,455  
        Series 2015-3, Class A4     1.560     10-18-21     6,075,000     6,070,954  
  Hyundai Auto Receivables Trust
Series 2015-A, Class A4
    1.370     07-15-20           40,000     40,009  
  John Deere Owner Trust  
        Series 2014-B, Class A4     1.500     06-15-21     4,285,000     4,298,969  
        Series 2015, Class AA4     1.650     12-15-21     2,720,000     2,722,832  
  Merrill Lynch Mortgage Investors Trust  
        Series 2004-OPT1, Class A1A (P)     0.719     06-25-35     3,600,030     3,451,932  
        Series 2005-WMC1, Class M1 (P)     0.949     09-25-35     2,086,424     1,895,610  
  MVW Owner Trust  
        Series 2014-1A, Class A (S)     2.250     09-20-31     1,272,839     1,265,916  
        Series 2015-1A, Class A (S)     2.520     12-20-32     4,480,000     4,489,511  
  Nationstar Home Equity Loan Trust
Series 2006-B, Class AV4 (P)
    0.479     09-25-36           6,160,000     5,700,938  
  New Century Home Equity Loan Trust  
        Series 2005-1, Class M1 (P)     0.874     03-25-35     6,715,000     6,370,097  
        Series 2005-2, Class M2 (P)     0.649     06-25-35     7,570,000     7,160,751  
  Nissan Auto Receivables Owner Trust
Series 2015-A, Class A4
    1.500     09-15-21           90,000     89,712  
  Nissan Master Owner Trust Receivables Trust
Series 2015-A, Class A2
    1.440     01-15-20           7,150,000     7,120,292  
  Porsche Innovative Lease Owner Trust
Series 2014-1, Class A4 (S)
    1.260     09-21-20           3,497,000     3,505,746  
  RAMP Trust
Series 2005-RS3, Class M1 (P)
    0.619     03-25-35           2,355,000     2,274,082  
  Renaissance Home Equity Loan Trust
Series 2005-2, Class AF4 (P)
    4.934     08-25-35           3,450,000     3,464,504  
  Saxon Asset Securities Trust
Series 2006-2, Class A3C (P)
    0.349     09-25-36           6,857,353     6,341,852  
  Sierra Timeshare Receivables Funding LLC
Series 2014-2A, Class A (S)
    2.050     06-20-31           2,918,341     2,937,097  
  Sonic Capital LLC
Series 2011-1A, Class A2 (S)
    5.438     05-20-41           2,981,013     3,124,415  
  Soundview Home Loan Trust
Series 2005-CTX1, Class M2 (P)
    0.639     11-25-35           2,648,500     2,494,328  
  Specialty Underwriting & Residential Finance Trust
Series 2006-BC1, Class A2D (P)
    0.499     12-25-36           6,930,000     6,719,938  
  Structured Asset Investment Loan Trust  
        Series 2005-1, Class M2 (P) (S)     0.919     02-25-35     4,830,000     4,530,303  
        Series 2005-2, Class M2 (P)     0.934     03-25-35     7,250,000     6,765,301  
  Structured Asset Securities Corp. Mortgage Loan Trust
Series 2005-2XS, Class 2A2 (P)
    1.688     02-25-35           3,839,904     3,689,987  
  SunTrust Auto Receivables Trust
Series 2015-1, Class A4 (S)
    1.780     01-15-21           6,555,000     6,524,506  
  TAL Advantage V LLC
Series 2014-1A, Class A (S)
    3.510     02-22-39           1,997,500     2,008,932  
  Toyota Auto Receivables Owner Trust  
        Series 2014-C, Class A4     1.440     04-15-20     3,590,000     3,595,701  
        Series 2015-B, Class A4     1.740     09-15-20     5,540,000     5,563,539  
  Volkswagen Credit Auto Master Trust
Series 2014-1A, Class A2 (S)
    1.400     07-22-19           4,245,000     4,230,215  

SEE NOTES TO FUND'S INVESTMENTS19

Bond Fund

                                                           
        Rate (% )    Maturity date     Par value^     Value  
  Asset Backed Securities  (continued)        
  Wendys Funding LLC
Series 2015-1A, Class A2I (S)
    3.371     06-15-45           8,981,000     $8,946,585  
  Westgate Resorts LLC  
        Series 2012-2A, Class B (S)     4.500     01-20-25     2,554,962     2,564,543  
        Series 2012-3A, Class B (S)     4.500     03-20-25     1,606,787     1,618,837  
        Series 2013-1A, Class B (S)     3.750     08-20-25     680,550     687,242  
        Series 2014-1A, Class A (S)     2.150     12-20-26     6,778,759     6,744,866  
        Series 2014-1A, Class B (S)     3.250     12-20-26     3,543,609     3,539,180  
        Series 2014-AA, Class A (S)     6.250     10-20-26     2,049,921     2,047,358  
        Series 2015-1A, Class A (S)     2.750     05-20-27     3,366,811     3,368,932  
  World Omni Automobile Lease Securitization Trust
Series 2014-A, Class A4
    1.370     01-15-20           4,565,000     4,579,115  
              Shares     Value  
  Preferred securities 0.9%     $28,668,448  
  (Cost $28,886,494)  
  Consumer staples 0.1%     2,094,681  
  Food and staples retailing 0.1%  
  Ocean Spray Cranberries, Inc., Series A, 6.250% (S)           23,250     2,094,681  
  Financials 0.7%     21,705,871  
  Banks 0.2%  
  FNB Corp. (7.250% to 2-15-24, then 3 month LIBOR + 4.600%)           62,350     1,753,282  
  Regions Financial Corp., 6.375%           116,890     2,974,851  
  Wells Fargo & Company, Series L, 7.500%           1,572     1,853,388  
  Capital markets 0.1%  
  The Goldman Sachs Group, Inc. (5.500% to 5-10-23, then 3 month LIBOR + 3.640%)           90,285     2,222,817  
  Consumer finance 0.2%  
  Ally Financial, Inc., 7.000% (S)           4,559     4,609,862  
  Discover Financial Services, 6.500%           69,600     1,806,120  
  Diversified financial services 0.2%  
  GMAC Capital Trust I (8.125% to 2-15-16, then 3 month LIBOR + 5.785%)           229,156     5,850,353  
  Real estate investment trusts 0.0%  
  Weyerhaeuser Company, 6.375%           12,950     635,198  
  Utilities 0.1%     4,867,896  
  Electric utilities 0.0%  
  Exelon Corp., 6.500%           31,056     1,406,526  
  Multi-utilities 0.1%  
  Dominion Resources, Inc., 6.375%           68,339     3,461,370  
        Rate (% )    Maturity date     Par value^     Value  
  Convertible bonds 0.1%     $2,364,188  
  (Cost $2,697,604)  
  Utilities 0.1%     2,364,188  
  NRG Yield, Inc.     3.250     06-01-20           2,700,000     2,364,188  
              Par value     Value  
  Short-term investments 0.9%     $27,576,000  
  (Cost $27,576,000)  
  Repurchase agreement 0.9%     27,576,000  
  Barclays Tri-Party Repurchase Agreement dated 8-31-15 at 0.110% to be repurchased at $27,576,084 on 9-1-15, collateralized by $27,349,400 U.S. Treasury Notes, 1.875% due 10-31-17 (valued at $28,127,627, including interest)           27,576,000     27,576,000  

20SEE NOTES TO FUND'S INVESTMENTS

Bond Fund

                                                           
              Par value     Value  
  Repurchase agreement  (continued)        
  Total investments (Cost $2,992,814,950)† 99.0%     $2,992,874,777  
  Other assets and liabilities, net 1.0%     $31,117,496  
  Total net assets 100.0%     $3,023,992,273  

                                                           
  The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.  
  ^All par values are denominated in U.S. dollars unless otherwise indicated.  
  Key to Currency Abbreviation  
  BRL     Brazilian Real  
  Key to Security Abbreviations and Legend  
  IO     Interest Only Security — (Interest Tranche of Stripped Mortgage Pool). Rate shown is the effective yield at period end.  
  ISDAFIX     International Swaps and Derivatives Association Fixed Interest Rate Swap Rate  
  LIBOR     London Interbank Offered Rate  
  PIK     Payment-in-kind  
  TBD     To Be Determined  
  (H)     Non-income producing - Issuer is in default.  
  (M)     Term loans are variable rate obligations. The coupon rate shown represents the rate at period end.  
  (P)     Variable rate obligation. The coupon rate shown represents the rate at period end.  
  (Q)     Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date.  
  (S)     These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $792,157,403 or 26.2% of the fund's net assets as of 8-31-15.  
  (T)     This position represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.  
      At 8-31-15, the aggregate cost of investment securities for federal income tax purposes was $3,001,788,271. Net unrealized depreciation aggregated $8,913,494, of which $44,178,234 related to appreciated investment securities and $53,091,728 related to depreciated investment securities.  

SEE NOTES TO FUND'S INVESTMENTS21

Notes to Fund's investments

Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are valued at the last sale price or official closing price on the exchange where the security was acquired or most likely will be sold. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing vendor. Securities that trade only in the over-the-counter (OTC) market are valued using bid prices. Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.

The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.

The following is a summary of the values by input classification of the fund's investments as of August 31, 2015, by major security category or type:

         
  Total
value at
8-31-15
Level 1
quoted price
Level 2
significant
observable
inputs
Level 3
significant
unobservable
inputs
Corporate bonds $1,246,244,994 $1,246,244,994
U.S. Government and Agency obligations 771,543,353 771,543,353
Foreign government obligations 5,296,853 5,296,853
Municipal bonds 5,450,735 5,450,735
Term loans 13,515,757 13,515,757
Capital preferred securities 30,182,916 30,182,916
Collateralized mortgage obligations 382,611,988 382,611,988
Asset backed securities 479,419,545 479,419,545
Preferred securities 28,668,448 $20,210,623 8,457,825
Convertible bonds 2,364,188 2,364,188
Short-term investments 27,576,000 27,576,000
Total investments in securities $2,992,874,777 $20,210,623 $2,972,664,154

Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.

Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.

For additional information on the fund's significant accounting policies, please refer to the fund's most recent semiannual or annual shareholder report.

22


More information

     
How to contact us
Internet www.jhinvestments.com  
Mail Regular mail:
John Hancock Signature Services, Inc.
P.O. Box 55913
Boston, MA 02205-5913
Express mail:
John Hancock Signature Services, Inc.
30 Dan Road
Canton, MA 02021
Phone Customer service representatives
EASI-Line
TDD line
800-225-5291
800-338-8080
800-231-5469

     
  21Q1 08/15
This report is for the information of the shareholders of John Hancock Bond Fund.   10/15



ITEM 2.  CONTROLS AND PROCEDURES.


(a)      Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.


(b)     There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.


ITEM 3. EXHIBITS.


Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.






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.



John Hancock Sovereign Bond Fund



By:    

/s/ Andrew Arnott

___________________________

      

Andrew Arnott

 

President



Date:    October 23, 2015



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



By:    

/s/ Andrew Arnott

___________________________

      

Andrew Arnott

 

President



Date:   October 23, 2015



By:   

/s/ Charles A. Rizzo

___________________________

      

Charles A. Rizzo

 

Chief Financial Officer



Date:    October 23, 2015






EX-99.CERT 2 d294541_ex99cert.htm EX-99.CERT


CERTIFICATION

I, Andrew Arnott, certify that:

1. I have reviewed this report on Form N-Q of John Hancock Sovereign Bond Fund (the “registrant”);


2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;


4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:


(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting  principles;


(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and


(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




Date: October 23, 2015

/s/ Andrew Arnott

_________________________

Andrew Arnott

President






CERTIFICATION

I, Charles A. Rizzo, certify that:

1. I have reviewed this report on Form N-Q of John Hancock Sovereign Bond Fund (the “registrant”);


2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;


4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:


(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting  principles;


(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and


(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




Date: October 23, 2015

/s/ Charles A. Rizzo

_________________________

Charles A. Rizzo

Chief Financial Officer






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