GREAT-WEST
FUNDS, INC.
Great-West
Small Cap Growth Fund
Institutional Class Ticker: MXMSX
Investor Class Ticker: MXMTX
(the “Fund”)
Institutional Class Ticker: MXMSX
Investor Class Ticker: MXMTX
(the “Fund”)
This
Prospectus describes one of 45 funds of Great-West Funds, Inc. (“Great-West
Funds”), an open-end management
investment company. The Fund operates as a separate mutual fund and has its own
investment objectives and strategies.
Fund
shares are sold to insurance company separate accounts for certain variable
annuity contracts and variable life insurance
policies (“variable contracts”), to individual retirement account (“IRA”)
custodians or trustees, to plan sponsors of qualified retirement plans
(“retirement plans”), to college savings programs (collectively, “Permitted
Accounts”), and to asset allocation funds that are series of Great-West Funds.
Therefore, you cannot purchase shares of the Fund directly; rather you must
invest through a Permitted Account that makes the Fund available for
investment.
This
Prospectus contains important information about the Fund that you should
consider before investing. Please read it
carefully and save it for future reference.
This
Prospectus does not constitute an offer to sell securities in any state or other
jurisdiction to any person to whom
it is unlawful to make such an offer in such state or other
jurisdiction.
The
Securities and Exchange Commission has not approved or disapproved
these securities or passed upon the adequacy of this Prospectus.
Any representation to the contrary is a criminal offense.
these securities or passed upon the adequacy of this Prospectus.
Any representation to the contrary is a criminal offense.
The
date of this Prospectus is April
29, 2022
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Fee
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Russell
2000®
Growth Index (reflects no deduction for fees,
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Investment
Adviser
GWCM
Sub-Advisers
Lord
Abbett and Peregrine
Portfolio
Managers
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Name |
Title |
Portfolio
Manager of Fund
Since |
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Lord
Abbett | ||
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F.
Thomas O’Halloran, J.D., CFA |
Partner
and Portfolio Manager |
2015 |
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Matthew
R. DeCicco, CFA |
Partner
and Director of Equities |
2015 |
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Vernon
T. Bice, CMT |
Portfolio
Manager |
2019 |
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Steven
H. Wortman |
Portfolio
Manager |
2020 |
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Peregrine | ||
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William
A. Grierson, CFA |
Principal
and Portfolio Manager |
2015 |
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Daniel
J. Hagen, CFA |
Principal
and Portfolio Manager |
2015 |
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Paul
E. von Kuster, CFA |
Principal
and Portfolio Manager |
2015 |
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Ryan
H. Smith, CFA |
Principal
and Portfolio Manager |
2021 |
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Samuel
D. Smith, CFA |
Principal
and Portfolio Manager |
2021 |
Purchase
and Sale of Fund Shares
The
Fund is not sold directly to the general public, but instead may be offered as
an underlying investment for Permitted Accounts. Permitted
Accounts may place orders on any business day to purchase and redeem shares of
the Fund based on instructions
4
received
from owners of variable contracts or IRAs, or from participants of retirement
plans or college savings programs. Please contact
your registered representative, IRA custodian or trustee, retirement plan
sponsor or administrator, or college savings program for information concerning
the procedures for purchasing and redeeming shares of the Fund.
The
Fund does not have any initial or subsequent investment minimums. However,
Permitted Accounts may impose investment minimums.
Tax
Information
Currently,
Permitted Accounts generally are not subject to federal income tax on any Fund
distributions. Owners of variable contracts,
retirement plan participants, and IRA owners are also generally not subject to
federal income tax on Fund distributions until such amounts are withdrawn from
the variable contract, retirement plan, or IRA. Distributions from a college
savings program generally are not taxed provided that they are used to pay for
qualified higher education expenses. More information regarding federal taxation
of Permitted Account owners may be found in the applicable prospectus and/or
disclosure documents for that Permitted Account.
Payments
to Insurers, Broker-Dealers and Other Financial Intermediaries
Companies
related to the Fund may make payments to insurance companies, broker-dealers and
other financial intermediaries for the sale
of Fund shares and/or other services. These payments may be a factor that an
insurance company, broker-dealer or other financial intermediary considers in
including the Fund as an investment option in a Permitted Account. These
payments also may create a conflict of interest by influencing the broker-dealer
or other intermediary and your salesperson to recommend the Fund over another
investment. Ask your salesperson, visit your financial intermediary’s website,
or consult the variable contract prospectus for more information.
More
Information About the Fund
Investment
Objective
The Fund
seeks long-term capital appreciation.
Principal
Investment Strategies
The
principal investment strategies of the Fund are summarized in the “Fund Summary”
section at the front of this Prospectus. More
detailed descriptions of the principal investment strategies are described
below. The Fund follows a distinct set of investment strategies. All percentage
limitations relating to the Fund’s investment strategies are applied at the time
the Fund acquires a security.
The
Fund will, under normal circumstances, invest at least 80% of its net assets
(plus the amount of any borrowings for investment purposes)
in equity securities of small cap companies. For purposes of the 80% policy, the
Fund considers small cap companies to be those whose market capitalization falls
within the range of the Russell 2000® Index at
the time of initial purchase. As of December 31, 2021, the market
capitalizations of the companies in the Russell 2000® Index
ranged from $32 million to $14 billion. If the market capitalization of a
company held by the Fund moves outside this range, the Fund may, but is not
required to, sell the securities.
Equity
securities represent an ownership interest, or the right to acquire an ownership
interest in an issuer and generally have greater
price volatility than fixed income securities. Different types of equity
securities provide different voting and dividend rights and priority in the
event of the bankruptcy and/or insolvency of the issuer. Common stock is a type
of equity security that represents partial ownership in a company and entitles
stockholders to share in the company’s profits (or losses). Common stock also
entitles the holder to share in any of the company’s dividends.
The
Fund emphasizes a “growth style” of investing, seeking companies whose potential
to provide superior earnings growth appears to
be greater than the market in general and whose revenue growth is expected to
continue for an extended period of time.
The
Fund may at times focus its investments in certain sectors, such as the consumer
staples sector. The Fund may invest in securities
of foreign, including emerging markets, companies and depositary receipts.
Foreign securities are issued by entities organized outside the U.S., may be
denominated in a foreign currency and are traded primarily in markets outside
the U.S. Depositary receipts are securities that evidence ownership interests in
a security or a pool of securities that have been deposited with a “depository”
and are an alternative to directly purchasing the underlying foreign securities
in their national markets and currencies. American depositary receipts are
typically issued by an American bank or trust company and evidence ownership of
underlying securities issued by a foreign corporation. The Fund may also invest
in micro cap companies.
5
GWCM,
subject to the approval of the Board, selects the Fund’s Sub-Advisers and
monitors their performance on an ongoing basis. The Fund’s
investment portfolio is managed by Lord Abbett and Peregrine. GWCM maintains a
strategic asset allocation of the Fund’s assets with each Sub-Adviser and
reviews the asset allocations on a quarterly basis, or more frequently as deemed
necessary. As of the date of this Prospectus, the target asset allocation is a
15% allocation of the Fund’s assets to Lord Abbett and an 85% allocation of the
Fund’s assets to Peregrine. Notwithstanding these target allocations, GWCM may
change the asset allocations at any time and without shareholder notice or
approval.
The
Fund’s investment objective and principal investment strategies are
non-fundamental and can be changed by the Board without shareholder
approval. The Fund will provide 60 days’ prior written notice to shareholders of
any change in its 80% policy described above.
How
the Sub-Advisers Select Investments
Each
Sub-Adviser independently conducts its own research, analysis, security
selection and portfolio construction for the assets it manages.
Lord
Abbett invests principally in equity securities of micro cap companies that, at
the time of purchase, are similar in size to companies
in the Russell Microcap® Index or
have a market capitalization that is under $1 billion. Lord Abbett uses
fundamental analysis to look for micro cap companies that appear to have the
potential for more rapid growth than the overall economy. Lord Abbett seeks to
identify micro cap companies that generally exhibit faster-than-average gains in
earnings and that the portfolio management team expects to continue profit
growth at a high level. Lord Abbett evaluates companies based on an analysis of
their financial statements, products and operations, market sectors, and
interviews with management. Lord Abbett may engage in active and frequent
trading of portfolio securities in seeking to achieve the Fund’s investment
objective.
Peregrine
invests in small cap companies that are similar in size to issuers included in
the Russell 2000® Index at
purchase. In selecting securities for the Fund, Peregrine conducts rigorous
research to identify companies where the prospects for rapid earnings growth
(Discovery phase) or significant change (Rediscovery phase) have yet to be well
understood, and are therefore not reflected in the current stock price.
Companies that fit into the Discovery phase are those with rapid long-term (3-5
year) earnings growth prospects. Companies that fit into the Rediscovery phase
are those that have the prospect for sharply accelerating near-term earnings
(next 12-18 months), or companies selling at a meaningful discount to their
underlying asset value.
Temporary
Investment Strategies
The
Fund may hold cash or cash equivalents and, if deemed appropriate by GWCM or the
Sub-Advisers, may invest up to 100% of its assets
in money market instruments for temporary defensive purposes to respond to
adverse market, economic or political conditions. Should the Fund take this
action, it may be inconsistent with the Fund’s principal investment strategies
and the Fund may not achieve its investment objective. Money market instruments
include a variety of short-term fixed income securities, usually with a maturity
of less than 13 months. Some common types of money market instruments include
Treasury bills and notes, which are securities issued by the U.S. government,
commercial paper, which is a promissory note issued by a company, bankers’
acceptances, which are credit instruments guaranteed by a bank, and negotiable
certificates of deposit, which are issued by banks in large
denominations.
Securities
Lending
Although
not considered a principal investment strategy, the Fund may lend common stock
or other assets to broker-dealers and financial
institutions to realize additional income. The Fund will not lend common stock
or other assets if, as a result, more than 33 1∕3% of the
Fund’s total assets would be lent to other parties. When the Fund loans its
portfolio securities, it will receive collateral equal to at least 102% of the
market value of domestic securities and 105% of the market value of foreign
securities. Nevertheless, the Fund risks a delay in the recovery of the loaned
securities, or even the loss of rights in the collateral deposited by the
borrower if the borrower should fail financially.
Principal
Investment Risks
The
principal investment risks associated with investing in the Fund are summarized
in the “Fund Summary” section at the front of this
Prospectus. More detailed descriptions of the principal investment risks are set
forth below. These risks are presented in an order that reflects GWCM’s current
assessment of relative importance, but this assessment could change over time as
the Fund’s portfolio changes or in light of changes in the market or the
economic environment, among other things. The Fund is not required to and will
not update this Prospectus solely because its assessment of the relative
importance of the principal risks of investing in the Fund changes.
Equity
Securities Risk - The
value of equity securities held by the Fund may decline as a result of factors
directly related to a company, such as lower demand for the company’s products
or services or poor management decisions. The value of equity securities may
also decline due to factors that affect, a particular industry or industries,
such as labor shortages or an increase in
6
production
costs and competitive conditions within an industry. In addition, the value of
equity securities may decline due to general
market conditions that are not specifically related to a company or an industry,
such as real or perceived adverse economic conditions, changes in the general
outlook for corporate earnings, changes in interest or currency rates, or
generally adverse investor sentiment.
Small
and Micro Cap Company Risk - The
stocks of small and micro cap companies often trade in lower volumes, may be
less liquid, and are subject to greater or more unpredictable price changes than
stocks of larger companies. Stocks of small and micro-cap companies may not have
wide marketability, which may cause the Fund to lose money if it needs to sell
the stocks when there are few interested buyers. Such companies may also have
limited markets, financial resources or product lines, may lack management
depth, and may be more vulnerable to adverse business or market developments.
Accordingly, stocks of small and micro cap companies tend to be more sensitive
to changing economic, market, and industry conditions and tend to be more
volatile and less liquid than equity securities of larger companies, especially
over the short term, and are more likely not to survive or accomplish their
goals with the result that the value of their stock could decline significantly.
In addition, there may be less publicly available information concerning small
and micro cap companies upon which to base an investment decision.
Growth
Stock Risk - A
“growth” style of investing is subject to the risk that returns on “growth”
stocks are less than returns on other styles of investing or the overall stock
market. Growth stocks can be volatile for several reasons. Since they usually
reinvest a high proportion of earnings in their own business, they may not pay
the dividends usually associated with value stocks that can cushion their
decline in a falling market. Also, since investors buy these stocks because of
the expected superior earnings growth, earnings disappointments may result in
sharp price declines. Growth stocks may underperform value stocks and stocks in
other broad style categories (and the stock market as a whole) over any period
of time and may shift in and out of favor with investors generally, sometimes
rapidly, depending on changes in market, economic, and other factors. As a
result, at times when it holds substantial investments in growth stocks, the
Fund may underperform other investment funds that invest more broadly or that
favor different investment styles.
Market
Risk - The
value of the Fund's investments may decrease, sometimes rapidly or unexpectedly,
due to factors affecting specific issuers held by the Fund, particular
industries represented in the Fund's portfolio, or the overall securities
markets. A variety of factors can increase the volatility of the Fund's holdings
and markets generally, including political or regulatory developments,
recessions, inflation, rapid interest rate changes, war or acts of terrorism,
sanctions, natural disasters, outbreaks of infectious illnesses or other
widespread public health issues, or adverse investor sentiment generally.
Certain events may cause instability across global markets, including reduced
liquidity and disruptions in trading markets, while some events may affect
certain geographic regions, countries, sectors, and industries more
significantly than others. These adverse developments may cause broad declines
in an issuer’s value due to short-term market movements or for significantly
longer periods during more prolonged market downturns. For example, since the
first quarter of 2020 the operating environment across a variety of industries
has been impacted by the global spread of the COVID-19 virus, which has
significantly increased market volatility. The duration of the COVID-19
pandemic, and the continuing impact that it may have on the financial markets
and global economy, cannot be foreseen. During such a general downturn in the
markets, multiple asset classes may decline in value. Moreover, when markets
perform well, there can be no assurance that securities held by the Fund will
participate in or otherwise benefit from the advance.
Sector
Risk - To the
extent the Fund has a significant portion of its assets invested in securities
of companies conducting business within the same economic sector, the Fund may
be more vulnerable to unfavorable developments in those sectors. The Fund may,
from time to time, invest a significant portion of its assets in companies
within a particular sector, including the consumer staples sector, and its
performance may suffer if that sector underperforms the overall
market.
Foreign
Securities Risk - Foreign
markets can be more volatile than the U.S. market due to increased risks of
adverse issuer, political, regulatory, market, currency valuation or economic
developments and can perform differently than the U.S. market. As a result,
foreign securities may subject the Fund to greater risk of potential loss than
U.S. securities. Foreign countries can prevent or delay the Fund from selling
its investments and taking money out of the country. In addition, foreign
securities may not be as liquid as U.S. securities which could result in the
Fund being unable to sell its investments in a timely manner. Current sanctions
or the threat of potential sanctions may also impair the value or liquidity of
affected securities and negatively impact the Fund.
Developing
and Emerging Markets Risk - Markets
of developing and emerging market countries are less liquid, subject to greater
price volatility and generally subject to increased economic, political,
geopolitical, social, environmental, public health, regulatory and other
uncertainties than more developed markets. The economies of developing and
emerging market countries may be more dependent on relatively few industries
that may be highly vulnerable to local and global changes. Their governments may
also be more unstable than the governments of more developed countries. These
countries generally have less developed securities markets or exchanges, and
legal and accounting systems. In addition, the Public Company Accounting
Oversight Board, which regulates auditors of U.S. public companies, is unable to
inspect audit work papers in certain emerging market countries. Securities may
be
7
more
difficult to sell at an acceptable price and may be more volatile than
securities in countries with more mature markets. The value of
developing and emerging market currencies may fluctuate more than the currencies
of countries with more mature markets. Investments in developing and emerging
market countries may be subject to greater risks of government restrictions,
including confiscatory taxation, expropriation or nationalization of a company’s
assets, restrictions on foreign ownership of local companies, restrictions on
withdrawing assets from the country, and greater risk of new or inconsistent
government treatment of or restrictions on issuers and instruments than
developed countries. Investments in companies in developing and emerging market
countries may be considered speculative.
Currency
Risk - Adverse
fluctuations in exchange rates between the U.S. dollar and other currencies may
cause the Fund to lose money on investments denominated in foreign currencies.
The Fund accrues additional expenses when engaging in currency exchange
transactions, and valuation of the Fund’s foreign securities may be subject to
greater risk because both the currency (relative to the U.S. dollar) and the
security must be considered. Currency risk is especially high in emerging
markets.
Depositary
Receipts Risk -
Depositary receipts are generally subject to the same sort of risks as direct
investments in a foreign country, such as, currency risk, political and economic
risk, and market risk, because their values depend on the performance of a
foreign security denominated in its home currency. Depositary receipts may be
less liquid than the underlying shares in their primary trading market. Any
distributions paid to the holders of depositary receipts are usually subject to
a fee charged by the depositary. Holders of depositary receipts may have limited
voting rights, and investment restrictions in certain countries may adversely
impact the value of depositary receipts because such restrictions may limit the
ability to convert equity shares into depositary receipts and vice versa. Such
restrictions may cause equity shares of the underlying issuer to trade at a
discount or premium to the market price of the depositary receipts.
Management
Risk - A
strategy, investment decision, technique, analysis, or model used by the
portfolio managers may fail to produce the intended results or imperfections,
errors or limitations in the tools and data used by the portfolio managers may
cause unintended results. If the portfolio managers are incorrect in their
expectation of the timing or level of fluctuation in securities prices, interest
rates, currency prices or other variables, this could result in losses.
Therefore, the Fund could underperform in comparison to other funds with similar
objectives and investment strategies and may generate losses even in a favorable
market.
Multi-Manager
Risk - Because
the Sub-Advisers make investment decisions independently, it is possible that
the security selection processes of the Sub-Advisers may not complement one
another and the Fund may have buy and sell transactions in the same security on
the same day. As a result, the Fund’s exposure to a given security, industry
sector or market capitalization could be smaller or larger than would be the
case if the Fund was managed by a single sub-adviser. It is possible the
Sub-Advisers may, at any time, take positions that are opposite of each other.
In such cases, the Fund will incur higher expenses without accomplishing any net
investment results. The Sub-Advisers may also be competing with one another for
similar positions at the same time, which could have the result of increasing a
security’s cost. The multi-manager approach could increase the Fund’s portfolio
turnover rates which may result in higher levels of realized capital gains or
losses with respect to the Fund’s portfolio securities, and higher brokerage
commissions and other transaction costs. A Sub-Adviser may underperform the
market generally and may underperform other sub-advisers that GWCM could have
selected.
Underlying
Fund Risk
Certain
asset allocation funds that are series of Great-West Funds are permitted to
invest in the Fund. As a result, the Fund may have large
inflows or outflows of cash from time to time. This could have adverse effects
on the Fund's performance if the Fund is required to sell securities or invest
cash at times when it otherwise would not do so. This activity could also
increase the Fund's transaction costs.
A
complete listing of the Fund’s investment limitations and more detailed
information about its investment policies and practices are
contained in the Statement of Additional Information (“SAI”).
Portfolio
Holdings Disclosure
A
description of the policies and procedures of Great-West Funds with respect to
the disclosure of the Fund's portfolio securities is available
in the SAI. The back cover of this Prospectus explains how you can obtain a copy
of the SAI.
Benchmark
Index
The
Fund’s benchmark is the Russell 2000® Growth
Index, which is a market capitalization-weighted index that measures the
performance of the small cap growth segment of the U.S. equity market. It
includes those Russell 2000® Index
companies with higher price-to-value ratios and higher forecasted growth
values.
8
Management
and Organization
Investment
Adviser
GWCM,
a Colorado limited liability company with its principal business address at 8515
East Orchard Road, Greenwood Village, Colorado
80111, is registered as an investment adviser pursuant to the Investment
Advisers Act of 1940, as amended (the “Advisers Act”). GWCM provides investment
advisory, accounting and administrative services to Great-West Funds, and is the
investment adviser of the Fund. GWCM is a wholly-owned subsidiary of Great-West
Life & Annuity Insurance Company (“GWL&A”) and an affiliate of Empower
Retirement, LLC (“Empower”). As of December 31, 2021, GWCM provided investment
management services for mutual funds and other investment portfolios
representing assets of $58.1 billion. GWCM and its affiliates have been
providing investment management services since 1969.
Advisory
Fees
For
its services, GWCM is entitled to a fee, which is calculated daily and paid
monthly, at an annual rate of 0.83% of the Fund’s average
daily net assets up to $1 billion dollars, 0.78% of the Fund’s average daily net
assets over $1 billion and 0.73% of the Fund’s average daily net assets over $2
billion. Pursuant to the investment advisory agreement, GWCM is responsible for
all of its fees and expenses incurred in performing the services set forth in
the agreement. The Fund pays all other fees and expenses incurred in its
operation, all of its general administrative expenses, all shareholder services
fees (“Shareholder Services Fees”) with respect to Investor Class shares, and
any extraordinary expenses, including litigation costs. GWCM has contractually
agreed to waive advisory fees or reimburse expenses if total annual Fund
operating expenses of any Class exceed 0.84% of the Class's average daily net
assets, excluding Shareholder Services Fees, brokerage expenses, taxes, dividend
interest on short sales, interest expenses, and any extraordinary expenses,
including litigation costs (the “Expense Limit”). The agreement’s current term
ends on April 30,
2023 and
automatically renews for one-year terms unless it is terminated upon termination
of the investment advisory agreement or by Great-West Funds or GWCM upon written
notice within 90 days of the end of the current term. Under the agreement, GWCM
may recoup, subject to Board approval, these waivers and reimbursements in
future periods, not exceeding three years following the particular
waiver/reimbursement, provided total annual Fund operating expenses of the Class
plus such recoupment do not exceed the lesser of the Expense Limit that was in
place at the time of the waiver/reimbursement or the Expense Limit in place at
the time of recoupment.
A
discussion regarding the basis for the Board approving the investment advisory
agreement and sub-advisory agreements is available
in the Fund’s Semi-Annual Report to shareholders for the period ended June 30,
2021, and will be available in the Fund’s Semi-Annual Report to shareholders for
the period ending on June 30, 2022.
Sub-Advisers
Listed
below are the Sub-Advisers and their respective portfolio managers who have
responsibility for the day-to-day management of the
Fund.
Lord
Abbett,
a Delaware
limited liability company with its principal business address at 90 Hudson
Street, Jersey City, NJ 07302, is registered as an investment adviser pursuant
to the Advisers Act. Founded in 1929, Lord Abbett manages one of the nation’s
oldest mutual fund complexes with assets across a full range of mutual funds,
institutional accounts, and separately managed accounts, which includes
providing investment models to managed account sponsors.
•F.
Thomas O’Halloran, J.D., CFA, Partner and Portfolio Manager, has served as
portfolio manager of the Fund since 2015 and joined
Lord Abbett in 2001.
•Matthew
R. DeCicco, CFA, Partner and Director of Equities, has served as portfolio
manager of the Fund since 2015 and joined
Lord Abbett in 1999.
•Vernon
T. Bice, CMT, Portfolio Manager, has served as portfolio manager of the Fund
since 2019 and joined Lord Abbett in 2011.
•Steven
H. Wortman, Portfolio manager, has served as portfolio manager of the Fund since
2020 and joined Lord Abbett in 2005.
Peregrine,
a
Minnesota limited liability company with its principal business address at and
800 LaSalle Avenue, Suite 1750, Minneapolis, MN 55402 is registered as an
investment adviser pursuant to the Advisers Act. Peregrine is directly owned by
a group of key senior principals. Peregrine also provides investment advisory
services to corporate and public pension plans, profit sharing plans, savings
investment plans, 401(k) plans, foundations, endowments, undertakings for
collective investment in transferable securities and other registered investment
companies.
•William
A. Grierson, CFA, Principal and Portfolio Manager, has served as portfolio
manager of the Fund since 2015 and joined
Peregrine in 2000.
9
•Daniel
J. Hagen, CFA, Principal and Portfolio Manager, has served as portfolio manager
of the Fund since 2015 and joined
Peregrine in 1996.
•Paul
E. von Kuster, CFA, Principal and Portfolio Manager, has served as portfolio
manager of the Fund since 2015 and joined
Peregrine in 1984.
•Ryan
H. Smith, CFA, Principal and Portfolio Manager, has served as portfolio manager
of the Fund since 2021 and joined Peregrine
in 2018. Prior to joining Peregrine, Mr. Smith was a portfolio manager and an
analyst at RBC Global Asset Management (U.S.).
•Samuel
D. Smith, CFA, Principal and Portfolio Manager, has served as portfolio manager
of the Fund since 2021 and joined
Peregrine in 2006.
Please
see the SAI for additional information about the portfolio managers’
compensation, other accounts managed by the portfolio
managers and the portfolio managers’ ownership of shares of the
Fund.
The
Sub-Advisers are responsible for the investment and reinvestment of the assets
of the Fund and for making decisions to buy, sell, or
hold any particular security. The Sub-Advisers bear all expenses in connection
with the performance of their services, such as compensating and furnishing
office space for their officers and employees connected with investment and
economic research, trading and investment management of the Fund. GWCM, in turn,
pays sub-advisory fees to the Sub-Advisers for their services out of GWCM’s
advisory fee described above.
Great-West
Funds and GWCM operate under a manager-of-managers structure under an order
issued by the SEC. The current order
permits GWCM to enter into, terminate or materially amend sub-advisory
agreements without shareholder approval, unless the sub-adviser is an affiliated
person. This means GWCM is responsible for monitoring each Sub-Adviser's
performance through quantitative and qualitative analysis and will periodically
report to the Board as to whether each Sub-Adviser's agreement should be
renewed, terminated or modified. GWCM will not enter into a sub-advisory
agreement with any sub-adviser that is an affiliated person, as defined in
Section 2(a)(3) of the 1940 Act, of Great-West Funds or GWCM other than by
reason of serving as a sub-adviser to one or more funds without such agreement,
including the compensation to be paid thereunder, being approved by the
shareholders of the Fund. Great-West Funds will furnish to shareholders of the
Fund all information about a new sub-adviser or sub-advisory agreement that
would be included in a proxy statement within 90 days after the addition of the
new sub-adviser or the implementation of any material change in the sub-advisory
agreement.
The
Fund enters into contractual arrangements with various parties, including, among
others, the Fund’s investment adviser, who provide
services to the Fund. Shareholders are not parties to or intended (or
“third-party”) beneficiaries of those contractual arrangements.
This
Prospectus and the SAI provide information concerning the Fund that you should
consider in determining whether to purchase
shares of the Fund. The Fund may make changes to this information from time to
time. Neither this Prospectus nor the SAI is intended to give rise to any
contract rights or other rights in any shareholder, other than any rights
conferred by federal or state securities laws.
Shareholder
Information
Investing
in the Fund
Shares
of the Fund are not for sale directly to the public. Currently, Great-West Funds
may sell Fund shares to Permitted Accounts. For
information concerning your rights and for information on how to purchase or
redeem shares of the Fund offered as an investment option under a Permitted
Account, please refer to the applicable prospectus and/or disclosure documents
for that Permitted Account. The Fund may stop offering shares completely or may
offer shares only on a limited basis, for a period of time or permanently. With
certain exceptions, the Fund is generally available only to shareholders
residing in the United States. However, the Fund may not be offered in your
state.
Pricing
Shares
The
transaction price for buying, selling, or exchanging the Fund's shares is the
net asset value of the Fund. The Fund's net asset value is
generally calculated as of the close of regular trading on the New York Stock
Exchange (“NYSE”) (generally 4:00 p.m. Eastern Time) every day the NYSE is open.
However, the time at which the Fund's net asset value is calculated may be
changed if trading on the NYSE is restricted, the NYSE closes at a different
time (for example, a scheduled early closing), or as permitted by the SEC. To
the extent that the Fund’s assets are traded in other markets on days when the
NYSE is closed, the value of the Fund’s assets may be affected on days when
Great-West Funds is not open for business. In addition, trading in some of the
Fund’s assets may not occur on days when Great-West Funds is open for business.
Your share price will be the next net asset value calculated
10
after
we receive your order in “good order.” This means that the requests must be
accompanied by proper payment and sufficient information,
documentation and detail before the close of regular trading on the NYSE to
enable the Fund to allocate assets properly.
We
calculate a separate net asset value for each share class of the Fund. We
determine net asset value by dividing net assets of each of the
Fund’s share classes (the total value of assets allocated to the class, minus
liabilities allocated to that class) by the number of the Fund’s outstanding
shares for the applicable share class.
The
net asset value of the Fund is based on the market value of the securities in
the Fund. Short-term securities with a maturity of 60 days or
less are valued on the basis of amortized cost provided such amount approximates
market value. If market prices are not available or if a security’s value has
been materially affected by events occurring after the close of the exchange or
market on which the security is principally traded (for example, a foreign
exchange or market), that security may be valued by another method that the
Board believes accurately reflects fair value.
The
Fund values its assets at current market prices where current market prices are
readily available, or at fair value as determined in good
faith in accordance with procedures adopted by the Board when a determination is
made that current market prices are not readily available. With respect to
foreign securities, the Fund utilizes a third-party fair valuation service daily
to adjust closing prices. This process is performed in order to more accurately
consider projected market movements related to the time lapse between when
foreign exchanges or markets close and when the Fund computes its net asset
value. While fair value determinations involve judgments that are inherently
subjective, these determinations are made in good faith in accordance with
procedures adopted by the Board. The effect of fair value pricing as described
above is that securities may not be priced on the basis of quotations from the
primary market in which they are traded, but rather may be priced by another
method that the Board believes reflects fair value. This policy is intended to
assure that the Fund’s net asset value fairly reflects security values at the
time of pricing.
In
December 2020, the SEC adopted Rule 2a-5 under the 1940 Act (“Rule 2a-5”), which
is intended to address valuation practices and the
role of a registered investment company’s board of directors with respect to the
fair value of the investments of registered investment companies. Among other
things, Rule 2a-5 will permit a fund’s board to designate the fund’s primary
investment adviser to perform the fund’s fair value determinations, which will
be subject to board oversight and certain reporting and other requirements
intended to ensure that the registered investment company’s board receives the
information it needs to oversee the investment adviser’s fair value
determinations. Rule 2a-5 will be effective on September 8, 2022.
Exchanging
Shares
Participants
in, or owners of, Permitted Accounts that purchased shares of the Fund on their
behalf may, in accordance with the applicable
Permitted Account rules, exchange shares of the Fund.
The
Fund may refuse exchange purchases by any person or group if, in GWCM’s
judgment, the Fund would be unable to invest the money
effectively in accordance with its investment objective and policies or would
otherwise potentially be adversely affected.
Redeeming
Shares
The
Fund will normally send redemption proceeds within one business day following
the receipt of a redemption request that is in good
order. The Fund may, however, delay payment of redemption proceeds for up to
seven (7) days and may suspend redemptions and/or further postpone payment
proceeds when the NYSE is closed (other than weekends or holidays) or when
trading thereon is restricted or during emergency or other circumstances if it
is not reasonably practicable for the Fund to liquidate its portfolio securities
or fairly determine the value of its net assets, each as determined by the SEC,
or as otherwise permitted by an order issued by the SEC. When a shareholder
places a request to redeem shares for which the purchase money has not yet been
collected, the request is not considered to be in good order until the purchase
has been cleared. Following clearance, the request will be executed at the next
determined net asset value.
Under
normal conditions, the Fund typically expects to meet daily shareholder
redemptions by monitoring the Fund’s portfolio and redemption
activities and by holding a reserve of highly liquid assets, such as cash or
cash equivalents. The Fund may use additional methods to meet shareholder
redemptions, if they become necessary. These methods may include, but are not
limited to, the sale of portfolio assets, the use of overdraft protection
afforded by the Fund’s custodian bank or borrowing from a line of
credit.
Dividends
and Capital Gains Distributions
The
Fund earns dividends, interest and other income from its investments, and
ordinarily distributes this income (less expenses), if any, to
shareholders as dividends semi-annually. The Fund also realizes capital gains
from its investments, and distributes these gains (less any losses), if any, to
shareholders as capital gains distributions at least once annually. Both
dividends and capital gains distributions are reinvested in additional shares of
the Fund at net asset value.
11
Frequent
Purchases and Redemptions of Fund Shares
The
Fund is not intended for the purpose of market timing or excessive trading
activity. Market timing activity may dilute the interests
of shareholders in the Fund. (As used in this section, “shareholders” include
individual holders of variable contracts investing in the Fund through
subaccount units, IRA owners, retirement plan participants, and college savings
program participants.) Market timing generally involves frequent or unusually
large trades that are intended to take advantage of short-term fluctuations in
the value of the Fund’s securities and the reflection of that change in the
Fund’s share price. In addition, frequent or unusually large trades may harm
performance by increasing Fund expenses and disrupting Fund management
strategies. For example, excessive trading may result in forced liquidations of
Fund securities or cause the Fund to keep a relatively higher cash position,
resulting in increased brokerage costs and lost investment
opportunities.
The
Fund invests to varying degrees in securities that trade infrequently or may be
more difficult to value, such as securities of smaller
companies, and may be susceptible to trading by short-term traders who seek to
exploit perceived price inefficiencies in the Fund’s investments. In addition,
the market for securities of smaller companies may at times show “market
momentum,” in which positive or negative performance may continue from one day
to the next for reasons unrelated to the fundamentals of the issuer. Short-term
traders may seek to capture this momentum by trading frequently in the Fund’s
shares, which will reduce the Fund’s performance and may dilute the interests of
other shareholders. Because securities of smaller companies may be less liquid
than securities of larger companies, the Fund may also be unable to buy or sell
these securities at desirable prices when the need arises (for example, in
response to volatile cash flows caused by short-term trading). Similar risks may
apply if the Fund holds other types of less liquid securities.
When
the Fund invests in foreign securities, its performance may be adversely
impacted and the interests of longer-term shareholders
may be diluted as a result of time-zone arbitrage, a short-term trading practice
that seeks to exploit changes in the value of the Fund’s investments that result
from events occurring after the close of the foreign markets on which the
investments trade, but prior to the later close of trading on the NYSE, the time
as of which the Fund determines its net asset value. If an arbitrageur is
successful, he or she may dilute the interests of other shareholders by trading
shares at prices that do not fully reflect their fair value.
Great-West
Funds maintains policies and procedures, approved by the Board, which are
designed to discourage market timing and excessive
trading activity by shareholders. As part of the procedures, all transaction
requests (received in “good order,” as described above under Pricing Shares)
will be processed at the Fund’s next determined net asset value. In all cases,
if the order is received from the shareholder before the close of regular
trading on the NYSE, generally 4:00 p.m. Eastern Time, it is processed with that
day’s trade date at that day’s net asset value.
It
is Great-West Funds’ practice and policy to identify any shareholder who
initiates a transfer into the Fund, then initiates a transfer out of the
Fund within a thirty (30) day calendar period (a “round trip”) and to notify
such shareholder that a second round trip within the Fund will result in the
shareholder being restricted from initiating a transfer of any portion of the
shareholder’s assets (not including purchases into the Fund made with new assets
contributed or rolled into the shareholder’s account) into the Fund for a thirty
(30) day period. In addition, if the Fund identifies a shareholder that has been
subject to the purchase restriction more than once because of repeated frequent
trading, the Fund may provide written direction to the shareholder’s financial
intermediary to implement special restrictions on such shareholder.
Great-West
Funds has also adopted pricing procedures and guidelines, including procedures
for fair value pricing of Fund securities
to reflect significant market events occurring after the close of a foreign or
domestic exchange on which securities held by the Fund are traded, or which
otherwise may not be reflected in the market price of a foreign or domestic
security. One of the objectives of Great-West Funds’ fair value pricing
procedures is to minimize the possibilities of the type of market timing
described above. The procedures are designed to limit dilution to the Fund that
may be caused by market-timing activities following a significant market event
that occurs prior to the Fund's pricing time.
Great-West
Funds has entered into agreements with financial intermediaries, including
insurance companies, that are designees of Permitted
Accounts (“record keepers”) that require the record keepers to monitor trading
and/or provide certain information to help identify frequent trading activity
and to prohibit further purchases or exchanges by a shareholder identified as
having engaged in frequent trades. Great-West Funds will rely on the record
keepers to identify and notify shareholders who have engaged in frequent or
excessive trading. The application of frequent or excessive trading limitations
may vary among record keepers. There are no assurances that record keepers will
properly administer frequent-trading limitations. If you invest with Great-West
Funds through record keepers, please read that firm’s materials carefully to
learn of any other rules or fees that may apply.
The
practices and policies described above are intended to deter and curtail market
timing and excessive trading in the Fund. However,
there can be no assurance that these policies, individually or collectively,
will be totally effective in this regard because of various factors. In
particular, it may not be possible to identify market timing or excessive
trading activity until a trading pattern is
12
established.
Shareholders seeking to engage in market timing or excessive trading practices
may deploy a variety of strategies to avoid
detection, and there is no guarantee that the Fund or its agents will be able to
identify such shareholders or curtail their trading practices. The ability of
the Fund and its agents to detect and curtail market timing or excessive trading
practices may also be limited by operational systems and technological
limitations. Further, all Fund purchase, redemption and exchange orders are
received through omnibus accounts. Omnibus accounts, in which shares are held in
the name of an intermediary on behalf of multiple beneficial owners, are a
common form of holding shares among Permitted Accounts. The Fund typically is
not able to identify trading by a particular beneficial owner through an omnibus
account, which may make it difficult or impossible to determine if a particular
account is engaged in market timing prior to completion of a specific Fund
trade. Also, certain Permitted Accounts have different policies regarding
monitoring and restricting market timing in the underlying beneficial owner
accounts maintained through an omnibus account, that may be more or less
restrictive than Great-West Funds’ practices discussed above. To the extent the
Fund does not detect market timing and/or excessive trading, it is possible that
a market timer may be able to make market timing and/or excessive trading
transactions with the result that management of the Fund may be disrupted and
shareholders may suffer detrimental effects such as increased costs, reduced
performance, and dilution of their interests in the Fund.
Great-West
Funds endeavors to ensure that its procedures are uniformly and consistently
applied to all shareholders, and it does not exempt any
persons from these procedures. In addition, Great-West Funds does not enter into
agreements with shareholders whereby it permits market timing or excessive
trading. However, because of the discretionary nature of the restrictions and
given that Great-West Funds reserves the right to reject orders, the possibility
exists that some shareholders may engage in market timing before restrictions
are imposed. Great-West Funds may revise its market timing and excessive trading
policy and related procedures at the sole discretion of the Board, at any time
and without prior notice, as it deems necessary or appropriate to comply with
state or federal regulatory requirements or to impose additional or alternative
restrictions on shareholders engaging in market timing or excessive
trading.
Voting
Procedures for Variable Contract Owners
Shares
attributable to the Fund held in variable contracts will be voted by insurance
company separate accounts based on instructions
received from owners of variable contracts. The number of votes that an owner of
a variable contract has the right to cast will be determined by applying his/her
percentage interest in the Fund (held through a variable contract) to the total
number of votes attributable to the Fund. In determining the number of votes,
fractional shares will be recognized. Shares held in the variable contracts for
which the Fund does not receive instructions and shares owned by GWCM, which
provided initial capital to the Fund, will be voted in the same proportion as
shares for which the Fund has received instructions. As a result of such
proportionate voting a small number of variable contracts owners may determine
the outcome of the shareholder vote(s).
Federal
Income Tax Consequences
The
Fund intends to qualify as a “regulated investment company” under Subchapter M
of the Internal Revenue Code of 1986, as amended
(the “Code”). The Fund intends to qualify under the Code with respect to
diversification requirements related to variable contracts. The Fund intends to
distribute all of its net investment income and capital gains to shareholders
and, therefore, will not be required to pay any federal income tax.
If
the Fund does not meet the Code requirements and does not satisfy the cure
provisions and becomes a taxable entity, the Fund would be
required to pay federal income tax on its income and capital gains. This would
affect your investment because your return would be reduced by the taxes paid by
the Fund. In addition, if the Fund fails to qualify as a regulated investment
company, owners of variable contracts who have indirectly invested in the Fund
through their variable contracts may be taxed currently on the investment
earnings under their contracts and thereby lose the benefit of tax
deferral.
The
tax consequences of your investment in the Fund depend on the provisions of the
Permitted Account through which you invest in the
Fund. For more information, please refer to the applicable prospectus and/or
disclosure documents for the Permitted Account.
Effect
of Foreign Taxes
Dividends
and interest received by the Fund on foreign securities may be subject to
withholding and other taxes imposed by foreign governments.
These taxes will generally reduce the Fund’s return on such foreign
securities.
Share
Classes
The
Fund has two classes of shares, Institutional Class and Investor Class shares.
Each class is identical except that Investor Class shares
have a Shareholder Services Fee which is described below.
13
Shareholder
Services Agreement
Great-West
Funds entered into a Shareholder Services Agreement with Empower, an affiliate
of GWCM and a subsidiary of GWL&A.
Pursuant to the Shareholder Services Agreement, Empower provides various
recordkeeping, administrative and shareholder services (“Shareholder Services”)
to shareholders that invest in the Fund through Permitted Accounts. The
Shareholder Services provided by Empower include but are not limited to (1)
executing purchase and redemption instructions received from shareholders (2)
recording the ownership interest of each shareholder and maintaining a record of
the number of shares issued to each shareholder; (3) maintaining a call center
and investigating all inquiries from shareholders; (4) distributing annual
prospectus updates, supplements to the prospectus and SAI, and annual and
semi-annual shareholder reports to shareholders; (5) preparing and delivering
quarterly statements to shareholders; and (6) preparing and delivering
confirmations for each purchase, redemption or exchange transaction of a
shareholder. The Shareholder Services provided by Empower are not in the
capacity of a sub-transfer agent for the Fund. Pursuant to the Shareholder
Services Agreement, Empower receives a fee equal to 0.35% of the average daily
net asset value of the Investor Class shares of the Fund (“Shareholder Services
Fee”). To the extent the Fund is offered on other platforms and other entities
provide the Shareholder Services, Empower or its affiliates enter into a
separate agreement with such entity and pay the Shareholder Services Fee to that
entity.
Cash
and Non-Cash Incentive Arrangements
GWL&A,
the Distributor, and/or their affiliates (for purposes of this section only,
“GWL&A affiliates”), out of their own resources
and without additional cost to the Fund, may contribute to various cash and
non-cash incentive arrangements to promote the sale of shares of the Fund. These
arrangements will be made available, and applied uniformly, to registered
representatives associated with the Distributor. The GWL&A affiliates may
sponsor various contests and promotions subject to applicable FINRA and SEC
regulations in which registered representatives may receive prizes such as
travel awards, merchandise and cash. Subject to applicable FINRA and SEC
regulations, the GWL&A affiliates may also pay for the travel expenses,
meals, lodging and entertainment of salespersons in connection with educational
and sales promotional programs and sponsor speakers, educational seminars and
charitable events.
Cash
incentive arrangements may vary depending on the arrangement in place at any
particular time. Currently, registered representatives
associated with the Distributor are eligible to receive additional cash
incentive compensation when retirement plans invest in certain GWL&A
affiliated products, including Great-West Funds. Other cash incentives payable
to participating registered representatives may be based on certain performance
measurements, including a percentage of the net amount invested in the Fund
attributable to certain Permitted Accounts. These types of arrangements could be
viewed as creating conflicts of interest. In some cases, the payment of
incentive-based compensation may create a financial incentive for a registered
representative to recommend or sell shares of the Fund instead of other funds
where payments are not received. Similarly, the receipt of such payments could
create an incentive for a registered representative to recommend certain
Permitted Accounts or investment options under the Permitted Accounts instead of
other Permitted Accounts or investment options. You should ask your registered
representative or retirement plan sponsor for details about any compensation
received in connection with the sale of shares of the Fund.
Other
Payments to Financial Intermediaries
GWL&A
and/or its affiliates (collectively, the “GWL&A Funds Group” or “GFG”) may
make payments to broker-dealers and other
financial intermediaries, including insurance companies, for providing marketing
support services, networking, shareholder services, and/or administrative or
recordkeeping support services with respect to the Fund. The existence or level
of such payments may be based on factors that include, without limitation,
differing levels or types of services provided by the broker-dealer or other
financial intermediary, the expected level of assets or sales of shares, the
placing of the Fund on a recommended or preferred list, and/or access to an
intermediary’s personnel and other factors. Such payments are paid from GFG’s
legitimate profits and other financial resources (not from the Fund). To the
extent permitted by SEC and FINRA rules and other applicable laws and
regulations, GFG may pay or allow other promotional incentives or payments to
dealers and other financial intermediaries.
Sale
of Fund shares, and/or shares of other mutual funds affiliated with Great-West
Funds, is not considered a factor in the selection
of broker-dealers to execute the Fund's portfolio transactions. Accordingly, the
allocation of portfolio transactions for execution by broker-dealers that sell
Great-West Funds is not considered marketing support payments to such
broker-dealers.
GFG’s
payments to financial intermediaries could be significant to the intermediary
and may provide the intermediary with an incentive
to favor the Fund or affiliated funds. Your financial intermediary may charge
you additional fees or commissions other than those disclosed in this
Prospectus. Contact your financial intermediary for information about any
payments it receives from GFG and any services it provides, as well as about
fees and/or commissions it charges.
Partner
Payments to Empower
Empower
may receive payments from registered investment advisers and/or their affiliates
(“Partner(s)”), including current and potential
sub-advisers to Great-West Funds, as applicable, for providing services to
Partners and Partner products offered through
14
Empower’s
retirement platforms. Program services include but are not limited to:
consideration for inclusion of Partner products in products
and retirement platforms affiliated with Empower; enhanced marketing
opportunities; additional reporting capabilities; collaboration in thought
leadership opportunities; waivers of certain retirement platform connectivity
fees; and access to Empower personnel, third party advisory and brokerage firms,
and Empower sponsored conferences. The level of such payments made by Partners
may be based on differing levels or types of services provided by Empower, among
other considerations.
Annual
and Semi-Annual Shareholder Reports
The
fiscal year of the Fund ends on December 31 of each year. Twice a year, a report
containing a summary of the Fund's performance
and other information will be made available to shareholders of the Fund. Annual
and semi-annual shareholder reports for the Fund may be accessed at the SEC’s
website at www.sec.gov and the Great-West Funds’ website at
www.greatwestinvestments.com.
15
Financial
Highlights
The
financial highlights table presented below is intended to help you understand
the financial performance of the Fund’s Institutional
Class and Investor Class shares for the past five years, or, if shorter, the
period of such class’s operations. Certain information reflects financial
results for a single Fund share. Total returns in the table represent the rate
that an investor would have earned (or lost) on an investment in the Fund
(assuming reinvestment of all dividends and distributions). Total returns do not
include expenses associated with Permitted Accounts. If such expenses were
included, total returns would be lower. The information has been derived from
financial statements audited by Deloitte & Touche LLP, an independent
registered public accounting firm, whose report, along with the Fund’s financial
statements, is included in the Fund's Annual Report, which is available upon
request.
Selected
data for a share of capital stock of the Fund throughout the periods indicated.
|
|
|
Income
(Loss) from Investment Operations:
|
|
Less
Distributions:
|
|
| |||
|
|
Net
asset value,
beginning
of year
|
Net
investment
loss(a)
|
Net
realized
and
unrealized
gain
(loss) |
Total
from
investment
operations
|
From
net
investment
income
|
From
net
realized
gains
|
Total
Distributions
|
Net
asset value,
end
of year
|
Total
Return
(b)(c)
|
|
Investor
Class
|
|
|
|
|
|
|
|
|
|
|
12/31/2021
|
$13.40
|
(0.12)
|
1.98
|
1.86
|
(1.05)
|
(1.80)
|
(2.85)
|
$12.41
|
13.76%
|
|
12/31/2020
|
$10.89
|
(0.07)
|
4.00
|
3.93
|
(0.85)
|
(0.57)
|
(1.42)
|
$13.40
|
36.90%
|
|
12/31/2019
|
$8.91
|
(0.05)
|
2.48
|
2.43
|
-
|
(0.45)
|
(0.45)
|
$10.89
|
27.28%
|
|
12/31/2018
|
$11.59
|
(0.07)
|
(0.31)
|
(0.38)
|
(0.62)
|
(1.68)
|
(2.30)
|
$8.91
|
(2.99%)
|
|
12/31/2017
|
$9.99
|
(0.07)
|
2.22
|
2.15
|
-
|
(0.55)
|
(0.55)
|
$11.59
|
21.49%
|
|
Institutional
Class
|
|
|
|
|
|
|
|
|
|
|
12/31/2021
|
$13.59
|
(0.07)
|
1.99
|
1.92
|
(1.03)
|
(1.80)
|
(2.83)
|
$12.68
|
14.03%
|
|
12/31/2020
|
$11.02
|
(0.04)
|
4.08
|
4.04
|
(0.90)
|
(0.57)
|
(1.47)
|
$13.59
|
37.51%
|
|
12/31/2019
|
$8.99
|
(0.02)
|
2.51
|
2.49
|
(0.01)
|
(0.45)
|
(0.46)
|
$11.02
|
27.69%
|
|
12/31/2018
|
$11.68
|
(0.03)
|
(0.32)
|
(0.35)
|
(0.66)
|
(1.68)
|
(2.34)
|
$8.99
|
(2.72%)
|
|
12/31/2017
|
$10.03
|
(0.03)
|
2.23
|
2.20
|
-
|
(0.55)
|
(0.55)
|
$11.68
|
21.91% |
|
|
Net
assets,
end
of year
(000)
|
Ratio
of expenses
to
average net assets
(before
reimbursement
and/or
waiver, if applicable) |
Ratio
of expenses
to
average net assets
(after
reimbursement
and/or
waiver, if applicable) |
|
Ratio
of net investment loss
to
average net assets
(after
reimbursement
and/or
waiver, if applicable) |
Portfolio
turnover
rate(d)
|
|
Supplemental
Data and Ratios
|
|
|
|
|
|
|
|
Investor
Class
|
|
|
|
|
|
|
|
12/31/2021
|
$7,720
|
1.60%
|
1.19%
|
|
(0.85%)
|
60%
|
|
12/31/2020
|
$7,908
|
1.67%
|
1.19%
|
|
(0.67%)
|
80%
|
|
12/31/2019
|
$6,521
|
1.66%
|
1.19%
|
|
(0.53%)
|
70%
|
|
12/31/2018
|
$6,347
|
1.64%
|
1.19%
|
|
(0.55%)
|
86%
|
|
12/31/2017
|
$5,142
|
1.51%
|
1.21%
|
|
(0.60%)
|
119%
|
|
Institutional
Class
|
|
|
|
|
|
|
|
12/31/2021
|
$128,226
|
0.91%
|
0.84%
|
|
(0.50%)
|
60%
|
|
12/31/2020
|
$111,767
|
0.92%
|
0.84%
|
|
(0.32%)
|
80%
|
|
12/31/2019
|
$98,861
|
0.92%
|
0.84%
|
|
(0.16%)
|
70%
|
|
12/31/2018
|
$64,652
|
0.95%
|
0.84%
|
|
(0.20%)
|
86%
|
|
12/31/2017
|
$54,110
|
0.99%
|
0.86%
|
|
(0.25%)
|
119% |
|
(a)
|
Per
share amounts are based upon average shares outstanding.
|
|
(b)
|
Total
return does not include any fees or expenses of variable insurance
contracts, if applicable. If such fees or expenses were included, the
return shown
would
have been lower. |
|
(c)
|
Total
return shown net of expenses reimbursed and/or waived, if applicable.
Without the expense reimbursement and/or waiver, the return shown would
have
been
lower. |
|
(d)
|
Portfolio
turnover is calculated at the Fund
level. |
16
Additional
Information
The
SAI contains more details about the investment policies, practices and
limitations of the Fund. A current SAI is on file with the SEC
and is incorporated by reference into this Prospectus as a matter of law, which
means that it is legally considered a part of this Prospectus even though it is
not physically contained within this Prospectus.
Additional
information about the Fund's investments is available in the Fund's Annual and
Semi-Annual Reports to shareholders. In the
Fund's Annual Report you will find audited financial statements and a discussion
of the market conditions and investment strategies that significantly affected
the Fund's performance during its last fiscal year. Semi-Annual Reports for the
Fund include unaudited financial statements.
For
a free copy of the SAI, Annual, or Semi-Annual Reports; to request other
information; or to ask questions about the Fund, contact
your financial intermediary or call (866) 831-7129. Great-West Funds’ website is
www.greatwestinvestments.com. The SAI, Annual, and Semi-Annual Reports are
available on the website free of charge.
The
SAI and the Annual and Semi-Annual Reports are available on the EDGAR Database
on the SEC’s Internet website at www.sec.gov.
You can also obtain copies of this information, upon paying a duplicating fee,
by electronic request at the following e-mail address:
[email protected].
INVESTMENT
COMPANY ACT OF 1940, FILE NUMBER 811-03364.
This
Prospectus should be read
and retained for future reference.
and retained for future reference.
17