EMPOWER
FUNDS, INC.
Empower
Short Duration Bond Fund
(formerly Great-West Short Duration Bond Fund)
Institutional Class Ticker: MXXJX
Investor Class Ticker: MXSDX
(the “Fund”)
(formerly Great-West Short Duration Bond Fund)
Institutional Class Ticker: MXXJX
Investor Class Ticker: MXSDX
(the “Fund”)
This
Prospectus describes one of 45 funds of Empower Funds, Inc. (“Empower 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 Empower 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 (“SEC”) 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
28, 2023
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Fee
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10
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Bloomberg
1-3 Year Credit Bond Index (reflects no
deduction
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Investment
Adviser
ECM
Portfolio
Managers
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Name |
Title |
Portfolio
Manager of Fund
Since |
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Jack
Brown, CFA |
Chief
Investment Officer |
2016 |
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Maria
Mendelsberg, CFA |
Portfolio
Manager |
2020 |
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 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.
4
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 maximum total return that is consistent with preservation of capital and
liquidity.
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 investment grade bonds. Investment grade securities are those rated Baa3 or
higher by Moody’s Investors Service, Inc. (“Moody's”) or BBB- or higher by
Standard & Poor’s Global Ratings (“S&P”) or are of a comparable quality
if unrated. If a security held by the Fund is downgraded below the minimum
quality grade discussed above, the portfolio managers will re-evaluate the
security, but will not be required to sell it. The Fund selects securities based
on relative value, maturity, quality and sector and will maintain an actively
managed portfolio of bonds selected from several categories, including U.S.
Treasuries and agency securities, commercial and residential mortgage-backed
securities, asset-backed securities and corporate bonds.
•U.S.
government securities are issued by the U.S. government, its agencies or
instrumentalities. Certain U.S. government securities
are guaranteed as to principal and interest and are backed by the full faith and
credit of the U.S. government. Other U.S. government securities are backed by
the issuer’s right to borrow from the U.S. Treasury and some are backed only by
the credit of the issuing organization. Securities of GSEs are not issued or
guaranteed by the U.S. Treasury and are not backed by the full faith and credit
of the U.S. government.
•A
mortgage-backed security is an obligation of the issuer backed by a commercial
or residential mortgage or pool of mortgages
or a direct interest in an underlying pool of mortgages. These securities
generally are “pass-through” instruments, through which the holders receive a
share of all interest and principal payments from the mortgages underlying the
securities, net of certain fees. Mortgage-backed securities may be issued by
government and non-government entities such as banks, mortgage lenders, or other
financial institutions.
•Asset-backed
securities represent interests in pools of consumer loans, auto loans, student
loans, receivables, or other assets.
Payment of interest and repayment of principal may be largely dependent upon the
cash flows generated by the assets backing the securities and, in certain cases,
supported by letters of credit, surety bonds, or other credit
enhancements.
•Corporate
bonds are debt obligations issued by corporations or similar entities. As with
other types of bonds, the issuer promises
to repay the principal on a specific date and to make interest payments in the
meantime.
The
Fund may also invest up to 20% of its net assets in below investment grade
securities (commonly known as “high yield securities”
or “junk bonds”) and bank loans. Below investment grade securities are those
rated Ba1 or lower by Moody’s or BB+ or lower by S&P or are of a comparable
quality if unrated. Bank loans, which include institutionally traded floating
rate securities, are obligations of companies or other entities that are
typically issued in connection with recapitalizations, acquisitions and
refinancings.
Additionally,
the Fund will maintain a dollar weighted average duration between one and three
years based on the portfolio managers’
forecast for interest rates. “Duration” is a measure of a debt security’s price
sensitivity to changes in interest rates. The longer the duration of the Fund
(or an individual debt security), the more sensitive its market price will be to
changes in interest rates. For example, if market interest rates increase by 1%,
the market price of a debt security with a three-year effective duration will
generally decrease by approximately 3%. Conversely, a 1% decline in market
interest rates will generally result in an increase of approximately 3% of that
security’s market price.
The Fund may also invest in derivatives, including but not limited to futures contracts on U.S. Treasury securities. Derivatives are
5
financial
instruments designed to achieve a certain economic result when an underlying
security, index, interest rate, currency, commodity,
or other financial instrument moves in price. If the Fund enters into a
derivatives contract, it would obligate or entitle the Fund to deliver or
receive an asset or cash payment that is based on the change in value of the
underlying financial instrument.
•Futures
contracts are standardized, exchange-traded contracts that require a purchaser
to take delivery, and a seller to make
delivery, of a specified amount of an asset at a specified future date and
price.
The
Fund’s 80% policy described above is 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 made to the
policy.
How
the Investment Adviser Selects Investments
ECM
uses a “top-down,” “bottom-up” approach in constructing the Fund’s portfolio.
The portfolio managers assess the market environment,
evaluating current economic, political and fundamental conditions as they relate
to the outlook for interest rates and credit. This assessment forms the backdrop
for identifying relative value opportunities as well as determining the sizing
and allocation of risk within the Fund. Individual securities are thoroughly
analyzed to ascertain risk and to evaluate relative value within the context of
the current market environment. Securities are added based on the
appropriateness of their risk and their ability to add value to the
Fund.
Temporary
Investment Strategies
The
Fund may hold cash or cash equivalents and, if deemed appropriate by ECM, 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 its securities
to broker-dealers and financial institutions
to realize additional income. The Fund will not lend securities 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 ECM’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.
Interest
Rate Risk - The
market value of a fixed income security is affected significantly by changes in
interest rates. When interest rates rise, the market value of a fixed income
security will generally decline and when interest rates decline, market values
of such securities will generally rise. In general, the longer the maturity or
duration of a fixed income security, the greater its sensitivity to changes in
interest rates. The maturity of a security is a measure of the time remaining
until the final payment of the security is due. Duration is a measure of a
portfolio’s price sensitivity to changes in prevailing interest rates. For
example, if interest rates rise by 1%, a portfolio with a two-year effective
duration would expect the value of its portfolio to decrease by 2% and a
portfolio with a ten-year effective duration would expect the value of its
portfolio to decrease by 10%, all other factors being equal. Recent and
potential future changes in monetary policy by central banks may affect the
level of interest rates. While interest rates were at or near historic lows,
they have risen in recent periods which may have unpredictable effects on the
markets and the Fund’s investments. Actions taken by the Federal Reserve Board
or foreign central banks to stimulate or stabilize economic growth, such as
increases or decreases in short-term interest rates, may adversely affect
markets, which could, in turn, negatively impact the Fund’s
performance.
Credit
Risk - An
issuer of a security may default on its obligations to pay principal and/or
interest. A security’s value may be affected by changes in its credit quality
rating or its issuer’s financial conditions. Changes in an issuer’s financial
strength, the
6
market’s
perception of the issuer’s financial strength or in a security’s credit rating,
which reflects a third party’s assessment of the credit
risk presented by a particular issuer, may affect the security’s
value.
Below
Investment Grade Securities Risk - Below
investment grade securities (commonly known as “high yield securities” or “junk
bonds”) are speculative, have a higher degree of credit risk and interest rate
risk, and may be less liquid and subject to greater volatility in market value
than investment grade securities. The lower a security’s quality, the more it is
subject to credit risk and the more speculative it becomes with respect to the
issuer’s capacity to pay interest and repay principal in accordance with the
terms of its obligations. Changes in interest rates, the market's perception of
the issuer, and the creditworthiness of the issuer may significantly affect the
value of these bonds. Some of these securities may have a structure that makes
their reaction to interest rates and other factors difficult to predict, causing
their value to be highly volatile. The secondary market for high yield
securities may be less liquid than the markets for higher quality securities,
which may have an adverse effect on the market values of certain
securities.
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. During such a general
downturn in the markets, multiple asset classes may decline in value. In recent
years, the COVID-19 pandemic, the large expansion of government deficits and
debt as a result of government actions to mitigate the effects of the pandemic,
the Russian invasion of Ukraine, and the rise of inflation have resulted in
extreme volatility in the global economy and financial markets. These events
could be prolonged and could adversely affect the value and liquidity of the
Fund’s investments and negatively impact the Fund’s performance.
Call
Risk - An
issuer may redeem a fixed income security before maturity (a “call”) at a price
below its current market value. An increase in the likelihood of a call may
reduce a security's price. If a fixed income security is called, the Fund may
have to reinvest the proceeds in other securities with lower interest rates,
higher credit risks or other less favorable characteristics. The Fund may also
lose any premium it paid to purchase the securities.
Liquidity
Risk - The
Fund may not be able to sell a security at or near its perceived value in a
timely manner because of unusual market conditions, an unusually high volume of
redemption requests, little or no active trading market for a specific type of
security, legal or contractual restrictions on resale, or a reduced number or
capacity of market participants to make a market in such security. Difficulty in
selling less liquid securities may result in sales at disadvantageous prices
affecting the value of the Fund. Additionally, the sale of less liquid or
illiquid investments may involve substantial delays (including delays in
settlement) and additional costs and the Fund may be unable to sell such
securities when necessary to meet its liquidity needs. Extraordinary and sudden
changes in interest rates could disrupt the market for fixed income securities
and result in fluctuations in the Fund’s net asset value. Increased redemptions
due to a rise in interest rates may require the Fund to liquidate its holdings
at an unfavorable time and/or under adverse or disadvantageous conditions which
may negatively affect the Fund.
Asset-Backed
Securities Risk -
Asset-backed securities represent interests in pools of assets, including
consumer loans, auto loans, student loans, or receivables held in trust. The
value of asset-backed securities may be affected by certain factors such as
interest rate risk, the credit performance of the pool of underlying assets, the
creditworthiness of the servicing agent or the originator of the underlying
assets, the ability of the servicing agent to service the underlying collateral,
and the availability of information concerning the pool of underlying assets and
its structure. Certain asset-backed securities do not have the benefit of the
same security interest in the underlying financial assets as do mortgage-backed
securities, nor are they provided government guarantees of repayment.
Accordingly, issuers of asset-backed securities may have limited ability to
enforce the security interest in the underlying assets, and credit enhancements
provided to support the asset-backed securities, if any, may be inadequate to
protect investors in the event of default. Asset-backed securities are also
subject to the risk that borrowers will prepay the principal on their loans more
quickly than expected (prepayment risk) in a declining interest rate environment
or more slowly than expected (extension risk) in a rising interest rate
environment.
U.S.
Government-Sponsored Securities Risk -
Securities issued by GSEs, such as the Federal Home Loan Mortgage Corporation,
the Federal National Mortgage Association and the Federal Home Loan Banks, may
be adversely affected by changes in interest rates (interest rate risk) or a
default by or decline in the credit rating of the applicable GSE (credit risk).
Securities of GSEs are not issued or guaranteed by the U.S. Treasury and are not
backed by the full faith and credit of the U.S. government. The
7
U.S.
government has provided financial support to GSEs in the past, but there can be
no assurance that it will support these or other GSEs in
the future and, as such, GSE securities may involve risk of loss of principal
and interest.
Mortgage-Backed
Securities Risk -
Mortgage-backed securities represent interests in pools of commercial or
residential mortgages that are subject to the risk that borrowers will prepay
the principal on their loans more quickly than expected (prepayment risk) when
mortgage rates fall or more slowly than expected (extension risk) when mortgage
rates rise, which may affect the yield, average life and price of the
securities. Because of prepayment risk and extension risk, mortgage-backed
securities react differently to changes in interest rates than other fixed
income securities. Small movements in interest rates (both increases and
decreases) may quickly and significantly reduce the value of certain
mortgage-backed securities. Mortgage-backed securities issued by a government
agency are protected from principal loss through guarantees provided by the
agency, while mortgage-backed securities issued by non-government issuers are
not and therefore carry the additional risk of default should the credit
performance of the underlying loans decline. This risk is mitigated through
credit enhancements that cover losses in stressed scenarios, however, principal
loss is possible should credit conditions deteriorate to a point where the
enhancements prove to be insufficient.
Bank
Loan Risk - Bank
loans often involve borrowers whose financial conditions are troubled or
uncertain and companies that are highly leveraged. The market for bank loans may
not be highly liquid and the Fund may have difficulty selling bank loans. These
investments expose the Fund to the credit risk of both the financial institution
and the underlying borrower. Bank loans are generally subject to legal or
contractual restrictions on resale. In addition, bank loans may have trade
settlement periods extending beyond seven days. Bank loans and other forms of
direct indebtedness may be structured such that they are not securities under
securities laws and subject to securities laws protections against fraud and
misrepresentation. While there can be no assurances that fraud or
misrepresentation will not occur with respect to bank loans and other
investments in which the Fund invests, the Fund relies on the portfolio
managers’ research in an attempt to seek to avoid situations where fraud or
misrepresentation could adversely affect the Fund.
Derivatives
Risk - The use
of derivative instruments, including but not limited to futures contracts on
U.S. Treasury securities, may expose the Fund to additional risks that it would
not be subject to if it invested directly in the securities underlying those
derivatives. These risks include imperfect correlations with underlying
investments or the Fund's other portfolio holdings, the risk that a derivative
could expose the Fund to the risk of magnified losses resulting from leverage,
the risk that a counterparty may be unwilling or unable to meet its obligations,
high price volatility, liquidity risk, segregation risk, valuation risk and
legal restrictions. A derivative contract would obligate or entitle the Fund to
deliver or receive an asset or cash payment that is based on the change in value
of one or more securities, currencies or indices. Even a small investment in
derivative contracts could have a big impact on the Fund’s stock market,
currency and interest rate exposure. Therefore, using derivatives can
disproportionately increase losses and reduce opportunities for gains when
security prices, currency rates or interest rates are changing. The Fund may not
fully benefit from or may lose money on derivatives if changes in their value do
not correspond accurately to changes in the value of the Fund’s holdings. The
other parties to certain derivative contracts present the same types of credit
risk as issuers of fixed income securities. Derivatives can also make a fund
less liquid and harder to value, especially in declining markets, and may
increase the Fund’s volatility. There can be no assurance that the Fund’s use of
derivative contracts will work as intended, and it is possible for the Fund to
lose more than its original investment.
•Futures
Contracts Risk. Certain
futures contract markets are highly volatile, and futures contracts may be
illiquid. Futures exchanges may limit fluctuations in futures contract prices by
imposing a maximum permissible daily price movement. The Fund may be
disadvantaged if it is prohibited from executing a trade outside the daily
permissible price movement. At or prior to maturity of a futures contract, the
Fund may enter into an offsetting contract and may incur a loss to the extent
there has been adverse movement in futures contract prices. The liquidity of the
futures markets depends on participants entering into offsetting transactions
rather than making or taking delivery. To the extent participants make or take
delivery, liquidity in the futures market could be reduced. Because of the low
margin deposits normally required in futures trading, it is possible that the
Fund may employ a high degree of leverage in the portfolio. As a result, a
relatively small price movement in a futures contract may result in substantial
losses to the Fund, exceeding the amount of the margin paid. For certain types
of futures contracts, losses are potentially unlimited. Futures markets are
highly volatile and the use of futures may increase the volatility of the Fund’s
net asset value. Futures contracts executed (if any) on foreign exchanges may
not provide the same protection as U.S. exchanges. Futures contracts can
increase the Fund’s risk exposure to underlying references and their attendant
risks, such as credit risk, market risk, foreign currency risk and interest rate
risk, while also exposing the Fund to correlation risk, counterparty risk,
hedging risk, inflation risk, leverage risk, liquidity risk, pricing risk and
volatility risk.
U.S.
Government Securities Risk -
U.S.
government securities may be adversely affected by changes in interest rates
(interest rate risk) or a default by or decline in the credit rating of the U.S.
government (credit risk). U.S. government securities backed by the U.S. Treasury
or the full faith and credit of the U.S. government are guaranteed only as to
the timely payment of interest and principal when the security is held to
maturity. Accordingly, the market values of these securities will fluctuate with
changes in
8
interest
rates and the credit rating of the U.S. government. Yields available from U.S.
government securities are generally lower than
yields from many other fixed income securities.
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. A lack
of correlation between changes in the value of derivatives and the value of the
portfolio assets (if any) being hedged could also result in losses. In addition,
there is a risk that the performance of derivatives or other instruments used by
the portfolio managers to replicate the performance of a particular asset class
may not accurately track the performance of that asset class. 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.
Portfolio
Turnover Risk - High
portfolio turnover rates generally result in higher transaction costs (which are
borne directly by the Fund and indirectly by shareholders). These effects of
higher than normal portfolio turnover may adversely affect Fund
performance.
Underlying
Fund Risk
Certain
asset allocation funds that are series of Empower 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 Empower 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 index is the Bloomberg 1-3 Year Credit Bond Index, which is a
subset of the Bloomberg Credit Index and includes
fixed rate investment grade (Baa or better), publicly issued, SEC registered,
corporate fixed income securities. Maturities are constrained to one to three
years and minimum issue size is $100 million.
Management
and Organization
Investment
Adviser
ECM,
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”). ECM provides investment
advisory, accounting and administrative services to Empower Funds, and is the
investment adviser of the Fund. ECM is a wholly-owned subsidiary of Empower
Annuity Insurance Company of America (“Empower of America”) and an affiliate of
Empower Retirement, LLC (“Empower”). As of December 31, 2022, ECM provided
investment management services for mutual funds and other investment portfolios
representing assets of $52.7 billion. ECM and its affiliates have been providing
investment management services since 1969.
Listed
below are the ECM portfolio managers that have responsibility for the day-to-day
management of the Fund.
•Jack
Brown, CFA, Chief Investment Officer, has managed the Fund since 2016 and joined
ECM in 2015.
•Maria
Mendelsberg, CFA, Portfolio Manager, has managed the Fund since 2020 and joined
ECM in 2016.
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.
Advisory
Fees
For
its services, ECM is entitled to a fee, which is calculated daily and paid
monthly, at an annual rate of 0.23% of the Fund’s average
daily net assets. Pursuant to the investment advisory agreement, ECM 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. ECM has
contractually agreed to waive advisory fees or
9
reimburse
expenses if total annual Fund operating expenses of any Class exceed 0.25% 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,
2024 and
automatically renews for one-year terms unless it is terminated upon termination
of the investment advisory agreement or by Empower Funds or ECM upon written
notice within 90 days of the end of the current term. Under the agreement, ECM
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 is available in the Fund’s Semi-Annual Report to
shareholders for the period ended June 30, 2022, and will be available in the
Fund’s Semi-Annual Report to shareholders for the period ending on June 30,
2023.
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, Empower 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 U.S. 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
Empower Funds is not open for business. In addition, trading in some of the
Fund’s assets may not occur on days when Empower Funds is open for business.
Your share price will be the next net asset value calculated after the order is
received 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.
A
separate net asset value is calculated for each share class of the Fund. Net
asset value is determined 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. The Fund values its assets at current market prices where current
market prices are readily available. If current market prices are not readily
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, assets will be valued at fair value as determined in good
faith in accordance with procedures approved by the Board. The Board has
designated ECM as the valuation designee pursuant to Rule 2a-5 under the
Investment Company Act of 1940, as amended and delegated to ECM the
responsibility of making fair value determinations, subject to the oversight of
the Board. Fair value determinations involve judgments that are inherently
subjective. 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 ECM
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.
10
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 ECM’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 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 quarterly. 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.
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 lower-rated securities,
and which 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 lower-rated securities 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 lower-rated securities may be less liquid than
higher-rated debt, 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.
Empower
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 Empower 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 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 30 day
period. In addition, if the Fund identifies a shareholder that has been subject
to the purchase restriction more than once because
11
of
repeated frequent trading, the Fund may provide written direction to the
shareholder’s financial intermediary to implement special
restrictions on such shareholder.
Empower
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 Empower 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.
Empower
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. Empower 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 Empower 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 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 Empower 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.
Empower
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, Empower 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 Empower Funds reserves the right to reject orders, the possibility
exists that some shareholders may engage in market timing before restrictions
are imposed. Empower 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 ECM, 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.
12
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.
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.
Shareholder
Services Agreement
Empower
Funds entered into a Shareholder Services Agreement with Empower, an affiliate
of ECM and a subsidiary of Empower of
America. 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
Empower
of America, Empower Financial Services, Inc., Empower Funds’ principal
underwriter and distributor (the “Distributor”),
and/or their affiliates (for purposes of this section only, “Empower of America
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 Empower of America affiliates may sponsor various contests
and promotions subject to applicable Financial Industry Regulatory Authority
(“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 Empower of America 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 Empower of
America affiliated products, including Empower 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
Empower
of America and/or its affiliates (collectively, the “Empower of America Funds
Group” or “EAFG”) 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
13
EAFG’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, EAFG 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 Empower
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
Empower Funds is not considered marketing support payments to such
broker-dealers.
EAFG’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 EAFG 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 Empower Funds, as applicable, for providing services to Partners
and Partner products offered through Empower’s retirement platforms. Program
services include but are not limited to: (1) consideration for inclusion in
Empower products developed for some segments of the retirement and IRA market,
(2) inclusion on the Empower Select investment platform, which is available in
the small plan recordkeeping market, (3) a waiver of the connectivity fee, (4)
enhanced marketing opportunities, (5) additional reporting capabilities, (6)
collaboration in thought leadership opportunities, (7) access to meetings with
Empower leadership, Empower staff, and the third-party advisory and brokerage
firms through which Empower distributes its services, and (8) access to
conferences put on by Empower. The level of 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 Empower Funds’ website at
www.greatwestinvestments.com.
14
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
income(a)
|
Net
realized
and
unrealized
gain
(loss)
|
Total
from
investment
operations
|
From
return
of
capital
|
From
net
investment
income
|
From
net
realized
gains
|
Total
Distributions
|
Net
asset value,
end
of year
|
Total
Return(b)(c)
|
|
Investor
Class
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2022
|
$10.57
|
0.19
|
(0.64)
|
(0.45)
|
—
|
(0.15)
|
—
|
(0.15)
|
$9.97
|
(4.25%)
|
|
12/31/2021
|
$10.77
|
0.11
|
(0.11)
|
0.00
|
(0.00)
(d)
|
(0.11)
|
(0.09)
|
(0.20)
|
$10.57
|
(0.03%)
|
|
12/31/2020
|
$10.52
|
0.18
|
0.30
|
0.48
|
—
|
(0.20)
|
(0.03)
|
(0.23)
|
$10.77
|
4.63%
|
|
12/31/2019
|
$10.19
|
0.27
|
0.28
|
0.55
|
(0.00)
(d)
|
(0.22)
|
—
|
(0.22)
|
$10.52
|
5.40%
|
|
12/31/2018
|
$10.32
|
0.25
|
(0.19)
|
0.06
|
(0.00)
(d)
|
(0.19)
|
—
|
(0.19)
|
$10.19
|
0.63%
|
|
Institutional
Class
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2022
|
$9.88
|
0.20
|
(0.59)
|
(0.39)
|
—
|
(0.20)
|
—
|
(0.20)
|
$9.29
|
(3.95%)
|
|
12/31/2021
|
$10.11
|
0.14
|
(0.10)
|
0.04
|
(0.00)
(d)
|
(0.18)
|
(0.09)
|
(0.27)
|
$9.88
|
0.34%
|
|
12/31/2020
|
$9.94
|
0.21
|
0.27
|
0.48
|
—
|
(0.28)
|
(0.03)
|
(0.31)
|
$10.11
|
4.99%
|
|
12/31/2019
|
$9.67
|
0.29
|
0.27
|
0.56
|
(0.00)
(d)
|
(0.29)
|
—
|
(0.29)
|
$9.94
|
5.83%
|
|
12/31/2018
|
$9.86
|
0.28
|
(0.19)
|
0.09
|
(0.00)
(d)
|
(0.28)
|
—
|
(0.28)
|
$9.67
|
0.94% |
|
|
Net
assets,
end
of year
(000)
|
Ratio
of expenses
to
average net assets
(before
reimbursement
and/or
waiver, if applicable)
|
Ratio
of expenses
to
average net assets
(after
reimbursement
and/or
waiver, if applicable)
|
|
Ratio
of net investment income
to
average net assets
(after
reimbursement
and/or
waiver, if applicable)
|
Portfolio
turnover
rate(e)
|
|
Investor
Class
|
|
|
|
|
|
|
|
12/31/2022
|
$63,874
|
0.68%
|
0.60%
|
|
1.84%
|
76%
|
|
12/31/2021
|
$58,567
|
0.66%
|
0.60%
|
|
1.06%
|
123%
|
|
12/31/2020
|
$48,834
|
0.67%
|
0.60%
|
|
1.73%
|
119%
|
|
12/31/2019
|
$47,582
|
0.67%
|
0.60%
|
|
2.58%
|
136%
|
|
12/31/2018
|
$44,228
|
0.67%
|
0.60%
|
|
2.49%
|
172%
|
|
Institutional
Class
|
|
|
|
|
|
|
|
12/31/2022
|
$271,140
|
0.28%
|
0.25%
|
|
2.12%
|
76%
|
|
12/31/2021
|
$317,200
|
0.26%
|
0.25%
|
|
1.43%
|
123%
|
|
12/31/2020
|
$278,385
|
0.26%
|
0.25%
|
|
2.06%
|
119%
|
|
12/31/2019
|
$220,267
|
0.27%
|
0.25%
|
|
2.93%
|
136%
|
|
12/31/2018
|
$175,072
|
0.27%
|
0.25%
|
|
2.84%
|
172% |
|
(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)
|
Amount
was less than $0.01 per share.
|
|
(e)
|
Portfolio
turnover is calculated at the Fund
level. |
15
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. Empower 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:
publicinfo@sec.gov.
INVESTMENT
COMPANY ACT OF 1940, FILE NUMBER 811-03364.
This
Prospectus should be read
and retained for future reference.
and retained for future reference.
16