UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03364

GREAT-WEST FUNDS, INC.

(Exact name of registrant as specified in charter)

8515 E. Orchard Road, Greenwood Village, Colorado 80111

(Address of principal executive offices)

M.T.G. Graye

President and Chief Executive Officer

Great-West Life & Annuity Insurance Company

8515 E. Orchard Road

Greenwood Village, Colorado 80111

(Name and address of agent for service)

Registrant’s telephone number, including area code: (866) 831-7129

Date of fiscal year end: December 31

Date of reporting period: December 31, 2012

ITEM 1. REPORTS TO STOCKHOLDERS

GREAT-WEST FUNDS, INC.

Great-West S&P Small Cap 600 ® Index Fund (Initial Class and Class L)

Annual Report

December 31, 2012

This report and the financial statements attached are submitted for general information and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein is to be considered an offer of the sale of shares of the Fund. Such offering is made only by the prospectus of the Fund, which includes details as to offering price and other information.

Management Discussion

Most U.S. equities markets finished 2012 with strong returns with Europe and Asia both showing gains for the year. The recovery in the U.S. economy and markets strengthened, even as S&P downgraded the ratings of several Euro-zone countries.

During the first quarter of 2012, the U.S. Federal Reserve announced it would keep rates low through 2014 to support the economic recovery. The European Union placed an embargo against Iran as disciplinary action for their ongoing uranium enrichment program; Iran responded with discontinuing oil exports to Britain and France.

The financial markets turned negative during the second quarter. Spain re-entered a recession and the European Central Bank temporarily suspended lending to some Greek banks. The Fed extended Operation Twist in an attempt to support the economic recovery in the U.S.

The third quarter exhibited strong performance from most equity markets, with domestic improvements in vehicle and home sales improving against a backdrop of manufacturing decreases and a downward revision of the GDP growth forecast. Germany and France pledged to support the euro while the EU leaders delayed a decision on aid to Greece.

The fourth quarter began with a drop in equity markets that recovered with a relatively flat performance before quarter end. The IMF cut its forecast for global growth while the Fed pledged to maintain low interest rates. Austerity measures in Spain and Portugal led to protests, President Obama won reelection, and the President and Congress engaged in an extended disagreement on how to handle the “fiscal cliff” in the U.S.

Some relevant 2012 market statistics: The U.S. Unemployment Rate went from 8.30% down to 7.80%. The Fed Funds Rate remained at a historical low target range of 0% to .25%. Crude oil traded in a range from $78 to $110 a barrel. The CBOE SPX Volatility Index (VIX) traded in a range between 13.5 in August and 26.7 in June.

For the 12 month period ended December 31, 2012, the Great-West S&P Small Cap 600 ® Index Fund (Initial Class shares) increased 15.78% on a net return basis. The small cap space outperformed the large cap space as the S&P 500 index ended the year 16.00% higher. The S&P SmallCap 600 ® Index underperformed its rival Russell 2000 ® Index by 0.02%. In the Russell 2000 ® style indexes, Value outperformed Growth.

Nine out of ten sectors of the S&P SmallCap 600 ® Index increased in 2012. Materials experienced the best performance, rising 25.31%. Energy was the worst performing sector, declining 0.03%. At the single stock level, Headwaters (HW) was the best performing name in the S&P SmallCap 600 ® Index, gaining 285.60%. HW’s contribution to performance was 8 basis points. Eagle Materials (EXP) contributed the most to performance. EXP was up 130.20% including dividends in 2012 and added 0.32% to total return. Overseas Shipholding Group (OSG) was the worst performing stock, dropping 89.80%. OSG carried a small weight in the index contributing 5 basis points of negative performance. Quality Systems (QSII) was the biggest contributor to negative performance in the S&P SmallCap 600 ® Index dropping 51.70% including dividends and costing the benchmark 0.17% in total return.

The views and opinions in this report were current as of December 31, 2012 and are subject to change at any time. They are not guarantees of performance or investment results and should not be taken as investment advice. Fund holdings are subject to change at any time. Fund returns are net of fees unless otherwise noted.

Growth of $10,000

This graph compares the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records) with the performance of the Fund’s benchmark index. Results include the reinvestment of all dividends and capital gains distributions. Past performance is no guarantee of future results. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance does not include any fees or expenses of variable insurance contracts, individual retirement accounts (“IRA(s)”), qualified retirement plans or college savings programs. If such fees and expenses were included, returns would be lower.

 

Year   Fund   S&P SmallCap 600  Index
    10,000.00   10,000.00

2003

  13,811.00   13,878.74

2004

  16,819.04   17,022.27

2005

  18,006.46   18,329.59

2006

  20,630.00   21,100.84

2007

  20,460.83   21,038.17

2008

  14,046.36   14,501.61

2009

  17,550.93   18,209.67

2010

  22,062.38   23,000.63

2011

  22,141.81   23,235.24

2012

  25,635.79   27,029.55

Note: Performance for the Class L shares may vary due to their differing fee structure. See returns table below.

Average Annual Total Returns for the Periods Ended December 31, 2012

 

      One Year   Five Years   Ten Years/Since
Inception

Initial Class

  15.78%   4.61%   9.87%

Class L

  15.49%   —   18.93%*

*Since inception on August 12, 2011.

Results include the reinvestment of all dividends and capital gains distributions. Past performance is no guarantee of future results. The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance does not include any fees or expenses of variable insurance contracts, IRAs, qualified retirement plans or college savings programs. If such fees and expenses were included, returns would be lower.

Summary of Investments by Sector as of December 31, 2012

 

Sector   % of Fund Investments

Basic Materials

  4.04%

Communications

  4.31%

Consumer, Cyclical

  14.25%

Consumer, Non-cyclical

  15.33%

Energy

  3.57%

Financial

  18.42%

Industrial

  17.32%

Repurchase Agreements

  8.87%

Short Term Investments

  1.49%

Technology

  8.87%

Utilities

  3.53%

Total

  100.00%

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 30, 2012 to December 31, 2012).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

       Beginning
Account Value
(06/30/12) 		   Ending
Account Value
(12/31/12) 		   Expenses Paid
During Period
(06/30/12 – 12/31/12)

Initial Class

        

Actual

   $1,000.00    $1,075.50    $3.11*

Hypothetical

(5% return before expenses)

   $1,000.00    $1,022.27    $3.03*

Class L

        

Actual

   $1,000.00    $1,074.70    $4.46**

Hypothetical

(5% return before expenses)

   $1,000.00    $1,020.97    $4.35**

*Expenses are equal to the Fund’s annualized expense ratio of 0.60% for the Initial Class shares, multiplied by the average account value over the period, multiplied by 185/366 days to reflect the one-half year period.

**Expenses are equal to the Fund’s annualized expense ratio of 0.85% for the Class L shares, multiplied by the average account value over the period, multiplied by 185/366 days to reflect the investment period.

Performance does not include any fees or expenses of variable insurance contracts, IRAs, qualified retirement plans or college savings programs, if applicable. If such fees or expenses were included, returns would be lower.

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

Shares

          Value   

COMMON STOCK

  

Basic Materials — 4.46%

  

24,620

   A Schulman Inc    $ 712,257   

111,331

   AK Steel Holding Corp (a)      512,123   

21,295

   AMCOL International Corp      653,331   

20,063

   American Vanguard Corp      623,357   

25,132

   Balchem Corp      914,805   

34,245

   Buckeye Technologies Inc      983,174   

43,569

   Century Aluminum Co (b)      381,664   

19,628

   Clearwater Paper Corp (b)      768,632   

9,216

   Deltic Timber Corp      650,834   

54,805

   Globe Specialty Metals Inc      753,569   

7,462

   Hawkins Inc      288,332   

42,632

   HB Fuller Co      1,484,446   

18,718

   Innophos Holdings Inc      870,387   

14,179

   Kaiser Aluminum Corp      874,703   

32,370

   KapStone Paper & Packaging Corp      718,290   

27,823

   Kraton Performance Polymers Inc (b)      668,587   

17,402

   Materion Corp      448,624   

13,488

   Neenah Paper Inc      384,003   

27,955

   OM Group Inc (b)      620,601   

35,703

   PH Glatfelter Co      624,088   

74,546

   PolyOne Corp      1,522,229   

10,867

   Quaker Chemical Corp      585,297   

26,274

   Schweitzer-Mauduit International Inc      1,025,474   

14,270

   Stepan Co      792,556   

97,993

   Stillwater Mining Co (b)      1,252,351   

37,731

   Wausau Paper Corp      326,750   

18,169

   Zep Inc      262,360   
     

 

 

 
     19,702,824   
     

 

 

 

Communications — 4.77%

  

23,195

   Anixter International Inc      1,484,016   

95,284

   Arris Group Inc (b)      1,423,543   

7,785

   Atlantic Tele-Network Inc      285,787   

14,083

   Black Box Corp      342,780   

34,911

   Blucora Inc (b)      548,452   

10,414

   Blue Nile Inc (a)(b)      400,939   

26,043

   Cbeyond Inc (b)      235,429   

166,415

   Cincinnati Bell Inc (b)      911,954   

27,955

   comScore Inc (b)      385,220   

15,309

   Comtech Telecommunications Corp      388,542   

35,937

   Dealertrack Technologies Inc (b)      1,032,111   

44,458

   Dice Holdings Inc (b)      408,124   

21,810

   Digital Generation Inc (a)(b)      236,857   

25,715

   Dolan Co (b)      100,031   

23,165

   EW Scripps Co Class A (b)      250,414   

26,343

   General Communication Inc
    Class A (b) 		     252,629   

99,658

   Harmonic Inc (b)      505,266   

35,546

   Harte-Hanks Inc      209,721   

16,675

   HealthStream Inc (b)      405,369   

42,497

   Ixia (b)      721,599   

20,752

   Liquidity Services Inc (a)(b)      847,927   

18,675

   LogMeIn Inc (b)      418,507   

11,277

   Lumos Networks Corp      112,996   

Shares

          Value   

Communications — (continued)

  

32,545

   NETGEAR Inc (b)    $ 1,282,924   

24,322

   Neutral Tandem Inc      62,508   

49,709

   NIC Inc (b)      812,245   

12,604

   NTELOS Holdings Corp      165,238   

23,876

   Nutrisystem Inc (a)      195,544   

19,389

   OpenTable Inc (a)(b)      946,183   

16,433

   Oplink Communications Inc (b)      256,026   

16,123

   PC-Tel Inc      116,086   

27,801

   Perficient Inc (b)      327,496   

16,495

   Procera Networks Inc (b)      305,982   

20,593

   QuinStreet Inc (a)(b)      138,385   

25,586

   Sourcefire Inc (b)      1,208,171   

12,938

   Stamps.com Inc (b)      326,038   

35,247

   Symmetricom Inc (b)      203,375   

74,754

   United Online Inc      417,875   

18,606

   USA Mobility Inc      217,318   

24,462

   VASCO Data Security International
    Inc (b) 		     199,610   

33,888

   ViaSat Inc (a)(b)      1,318,243   

30,374

   Websense Inc (b)      456,825   

20,833

   XO Group Inc (b)      193,747   
     

 

 

 
     21,058,032   
     

 

 

 

Consumer, Non-cyclical — 16.95%

  

17,441

   Abaxis Inc      647,061   

29,042

   ABIOMED Inc (a)(b)      390,905   

42,581

   ABM Industries Inc      849,491   

34,399

   Acorda Therapeutics Inc (b)      855,159   

56,647

   Affymetrix Inc (a)(b)      179,571   

29,766

   Air Methods Corp (a)      1,098,068   

58,002

   Akorn Inc (b)      774,907   

61,051

   Align Technology Inc (b)      1,694,165   

70,093

   Alliance One International Inc (b)      255,139   

7,024

   Almost Family Inc      142,306   

25,802

   Amedisys Inc (b)      290,789   

27,492

   American Greetings Corp Class A (a)      464,340   

15,049

   American Public Education Inc (a)(b)      543,419   

37,428

   AMN Healthcare Services Inc (b)      432,293   

26,693

   Amsurg Corp (b)      801,057   

14,670

   Andersons Inc      629,343   

22,054

   Arbitron Inc      1,029,481   

47,656

   Arqule Inc (b)      132,960   

44,437

   B&G Foods Inc      1,258,011   

20,151

   Bio-Reference Labs Inc (a)(b)      578,132   

8,939

   Blyth Inc (a)      139,001   

7,096

   Boston Beer Co Inc Class A (a)(b)      954,057   

11,475

   Cal-Maine Foods Inc      461,524   

10,265

   Calavo Growers Inc (a)      258,781   

25,350

   Cambrex Corp (b)      288,483   

17,818

   Cantel Medical Corp      529,729   

9,637

   Capella Education Co (b)      272,053   

37,234

   Cardtronics Inc (b)      883,935   

43,113

   Career Education Corp ( b)      151,758   

12,440

   CDI Corp      213,097   

43,927

   Centene Corp (b)      1,801,007   

34,652

   Central Garden & Pet Co Class A (b)      362,113   

16,341

   Chemed Corp      1,120,829   
 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

Shares

          Value   

Consumer, Non-cyclical — (continued)

  

24,471

   CONMED Corp    $ 683,964   

6,964

   Consolidated Graphics Inc (b)      243,183   

65,116

   Corinthian Colleges Inc (b)      158,883   

5,050

   Corvel Corp (b)      226,391   

23,302

   Cross Country Healthcare Inc (b)      111,850   

20,562

   CryoLife Inc      128,101   

54,350

   Cubist Pharmaceuticals Inc (b)(c)      2,285,961   

20,003

   Cyberonics Inc (b)      1,050,758   

18,899

   Diamond Foods Inc (a)      258,349   

22,493

   Emergent Biosolutions Inc (b)      360,788   

14,788

   Ensign Group Inc      402,086   

28,864

   Enzo Biochem Inc (b)      77,933   

21,562

   ExlService Holdings Inc (b)      571,393   

12,706

   Forrester Research Inc      340,521   

23,974

   Gentiva Health Services Inc (b)      240,939   

59,520

   Geo Group Inc      1,678,464   

19,781

   Greatbatch Inc (b)      459,710   

43,700

   Haemonetics Corp (b)      1,784,708   

38,263

   Hain Celestial Group Inc (b)(c)      2,074,620   

29,413

   Hanger Inc (b)      804,740   

56,554

   Healthcare Services Group Inc      1,313,750   

28,250

   Healthways Inc (b)      302,275   

33,316

   Heartland Payment Systems Inc      982,822   

14,429

   Heidrick & Struggles International Inc      220,187   

27,242

   Helen of Troy Ltd (b)      909,610   

9,133

   Hi-Tech Pharmacal Co Inc (a)      319,472   

10,622

   ICU Medical Inc (b)      647,198   

19,111

   Insperity Inc      622,254   

16,476

   Integra LifeSciences Holdings Corp (b)      642,070   

13,256

   Inter Parfums Inc      257,962   

23,617

   Invacare Corp      384,957   

13,859

   IPC The Hospitalist Co Inc (b)      550,341   

13,218

   ITT Educational Services Inc (b)      228,804   

12,628

   J&J Snack Foods Corp      807,434   

22,470

   Kelly Services Inc Class A      353,678   

45,886

   Kindred Healthcare Inc (b)      496,487   

40,655

   Korn/Ferry International (b)      644,788   

8,188

   Landauer Inc      501,187   

13,141

   LHC Group Inc (b)      279,903   

17,549

   Lincoln Educational Services Corp      98,099   

118,679

   Live Nation Entertainment Inc (b)      1,104,901   

31,831

   Luminex Corp (b)      533,488   

23,033

   Magellan Health Services Inc (b)      1,128,617   

29,026

   MAXIMUS Inc      1,835,024   

45,824

   Medicines Co (b)      1,098,401   

11,171

   Medifast Inc (b)      294,803   

34,342

   Meridian Bioscience Inc (a)      695,426   

34,331

   Merit Medical Systems Inc (b)      477,201   

24,811

   Molina Healthcare Inc (b)      671,386   

38,566

   Momenta Pharmaceuticals Inc (b)      454,307   

24,594

   Monro Muffler Brake Inc (a)      860,052   

10,602

   Nash Finch Co      225,611   

24,241

   Natus Medical Inc (b)      271,014   

43,845

   Navigant Consulting Inc (b)      489,310   

18,763

   Neogen Corp (b)      850,339   

36,917

   NuVasive Inc (b)      570,737   

36,450

   On Assignment Inc (b)      739,206   

Shares

          Value   

Consumer, Non-cyclical — (continued)

  

14,551

   Palomar Medical Technologies Inc (b)    $ 134,015   

51,329

   PAREXEL International Corp (b)      1,518,825   

25,282

   PharMerica Corp (b)      360,016   

43,273

   Prestige Brands Holdings Inc (b)      866,758   

42,392

   PSS World Medical Inc (b)      1,224,281   

50,187

   Questcor Pharmaceuticals Inc (a)      1,340,997   

36,484

   Resources Connection Inc      435,619   

42,566

   Salix Pharmaceuticals Ltd (b)      1,723,072   

17,149

   Sanderson Farms Inc      815,435   

6,859

   Seneca Foods Corp Class A (b)      208,514   

41,110

   Snyders-Lance Inc      991,162   

19,149

   Spartan Stores Inc      294,129   

43,076

   Spectrum Pharmaceuticals Inc (a)      482,020   

10,361

   SurModics Inc (b)      231,672   

29,747

   Symmetry Medical Inc (b)      312,938   

18,649

   TeleTech Holdings Inc (b)      331,952   

30,844

   TreeHouse Foods Inc (b)      1,607,898   

33,350

   TrueBlue Inc (b)      525,262   

19,068

   Universal Technical Institute Inc      191,443   

17,305

   Viad Corp      470,004   

57,730

   ViroPharma Inc (b)      1,313,935   

12,568

   WD-40 Co      592,078   

28,601

   West Pharmaceutical Services Inc      1,565,905   
     

 

 

 
     74,827,337   
     

 

 

 

Convertible Preferred Stock — 15.76%

  

12,815

   Allegiant Travel Co      940,749   

11,178

   Arctic Cat Inc (b)      373,233   

13,941

   Big 5 Sporting Goods Corp      182,627   

986

   Biglari Holdings Inc (b)      384,560   

20,798

   BJ’s Restaurants Inc (b)      684,254   

47,434

   Boyd Gaming Corp (a)(b)      314,962   

34,513

   Brown Shoe Co Inc      634,004   

76,186

   Brunswick Corp (c)      2,216,251   

23,365

   Buckle Inc (a)      1,043,014   

15,633

   Buffalo Wild Wings Inc (b)      1,138,395   

59,595

   Callaway Golf Co      387,368   

32,183

   Casey’s General Stores Inc      1,708,917   

24,728

   Cash America International Inc (a)      980,960   

22,788

   Cato Corp Class A      625,075   

14,582

   CEC Entertainment Inc      483,977   

20,630

   Children’s Place Retail Stores Inc (b)      913,703   

33,127

   Christopher & Banks Corp (b)      180,542   

26,358

   Coinstar Inc (a)(b)      1,370,880   

14,994

   Coldwater Creek Inc (a)(b)      72,121   

19,853

   Cracker Barrel Old Country Store Inc      1,275,754   

77,316

   Crocs Inc (b)      1,112,577   

13,005

   DineEquity Inc (b)      871,335   

15,678

   DTS Inc (b)      261,823   

21,959

   Ethan Allen Interiors Inc (a)      564,566   

38,060

   Ezcorp Inc Class A (b)      755,872   

96,737

   Fifth & Pacific Cos Inc (b)      1,204,376   

42,806

   Finish Line Inc Class A      810,318   

22,176

   First Cash Financial Services Inc (b)      1,100,373   

29,356

   Fred’s Inc Class A      390,728   
 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

Shares

          Value   

Convertible Preferred Stock — (continued)

  

15,791

   G&K Services Inc Class A    $ 539,263   

20,768

   Genesco Inc (b)      1,142,240   

18,021

   Group 1 Automotive Inc      1,117,122   

16,708

   Haverty Furniture Cos Inc      272,507   

22,343

   Hibbett Sports Inc (a)(b)      1,177,476   

36,925

   Hot Topic Inc      356,326   

57,448

   Iconix Brand Group Inc (b)      1,282,239   

49,372

   Interface Inc      793,902   

32,562

   Interval Leisure Group Inc      631,377   

37,572

   Jack in the Box Inc (b)      1,074,559   

17,641

   JAKKS Pacific Inc (a)      220,865   

23,889

   Jos A Bank Clothiers Inc (b)      1,017,194   

18,990

   K-Swiss Inc (a)(b)      63,806   

12,476

   Kirkland’s Inc (b)      132,121   

43,516

   La-Z-Boy Inc      615,751   

17,593

   Lithia Motors Inc Class A      658,330   

22,767

   Lumber Liquidators Holdings Inc (a)(b)      1,202,781   

18,104

   M/I Homes Inc (b)      479,756   

19,502

   Maidenform Brands Inc (b)      380,094   

17,879

   Marcus Corp      222,951   

19,630

   MarineMax Inc (b)      175,492   

24,427

   Marriott Vacations Worldwide Corp (b)      1,017,873   

40,109

   Men’s Wearhouse Inc      1,249,796   

26,395

   Meritage Homes Corp (b)      985,853   

32,169

   Mobile Mini Inc (b)      670,080   

7,843

   Monarch Casino & Resort Inc (b)      85,567   

24,298

   Multimedia Games Holding Co Inc (b)      357,424   

10,087

   MWI Veterinary Supply Inc (b)      1,109,570   

72,241

   OfficeMax Inc      705,072   

11,862

   Oxford Industries Inc      549,922   

14,842

   Papa John’s International Inc (b)      815,419   

45,080

   Pep Boys-Manny Moe & Jack      443,136   

9,742

   Perry Ellis International Inc      193,866   

17,747

   PetMed Express Inc (a)      196,992   

51,860

   Pinnacle Entertainment Inc (b)      820,944   

39,828

   Pool Corp      1,685,521   

102,831

   Quiksilver Inc (b)      437,032   

11,477

   Red Robin Gourmet Burgers Inc (b)      405,023   

50,540

   Ruby Tuesday Inc (b)      397,244   

12,899

   rue21 inc (b)      366,203   

29,544

   Ruth’s Hospitality Group Inc (b)      214,785   

38,206

   Ryland Group Inc      1,394,519   

23,353

   ScanSource Inc (b)      741,925   

47,303

   Select Comfort Corp (b)      1,237,920   

47,306

   SHFL Entertainment Inc (b)      685,937   

32,271

   Skechers U.S.A. Inc Class A (b)      597,014   

42,863

   SkyWest Inc      534,073   

30,989

   Sonic Automotive Inc Class A      647,360   

47,325

   Sonic Corp (b)      492,653   

26,698

   Spartan Motors Inc      131,621   

26,210

   Stage Stores Inc      649,484   

16,701

   Standard Motor Products Inc      371,096   

93,408

   Standard Pacific Corp (a)(b)      686,549   

22,906

   Stein Mart Inc      172,711   

34,266

   Steven Madden Ltd (b)      1,448,424   

20,195

   Superior Industries International Inc      411,978   

Shares

          Value   

Convertible Preferred Stock — (continued)

  

50,108

   Texas Roadhouse Inc    $ 841,814   

50,013

   Toro Co (c)      2,149,559   

20,563

   True Religion Apparel Inc      522,711   

35,005

   Tuesday Morning Corp (b)      218,781   

12,613

   UniFirst Corp      924,785   

34,153

   United Stationers Inc      1,058,401   

12,977

   Universal Electronics Inc (b)      251,105   

25,518

   Vitamin Shoppe Inc (b)      1,463,712   

15,355

   VOXX International Corp (b)      103,339   

24,560

   Winnebago Industries Inc (b)      420,713   

41,650

   Wolverine World Wide Inc (a)      1,706,817   

22,851

   Zale Corp (b)      93,918   

18,607

   Zumiez Inc (a)(b)      361,162   
     

 

 

 
     69,566,869   
     

 

 

 

Energy — 3.94%

  

27,994

   Approach Resources Inc (a)(b)      700,130   

23,702

   Basic Energy Services Inc (a)(b)      270,440   

30,363

   Carrizo Oil & Gas Inc (b)      635,194   

52,263

   Cloud Peak Energy Inc (b)      1,010,244   

37,835

   Comstock Resources Inc (b)      572,444   

10,718

   Contango Oil & Gas Co      454,015   

55,474

   Exterran Holdings Inc (b)      1,215,990   

10,943

   Geospace Technologies Corp (b)      972,504   

11,949

   Gulf Island Fabrication Inc      287,134   

49,870

   Gulfport Energy Corp (b)      1,906,031   

26,848

   Hornbeck Offshore Services Inc (b)      921,960   

101,458

   ION Geophysical Corp (b)      660,492   

28,244

   Lufkin Industries Inc (a)      1,641,824   

22,845

   Matrix Service Co (b)      262,718   

25,542

   PDC Energy Inc (b)      848,250   

46,620

   Penn Virginia Corp      205,594   

47,551

   PetroQuest Energy Inc (b)      235,377   

50,641

   Pioneer Energy Services Corp (b)      367,654   

16,738

   SEACOR Holdings Inc      1,402,644   

41,737

   Stone Energy Corp (b)      856,443   

60,018

   SunCoke Energy Inc (b)      935,681   

37,044

   Swift Energy Co (b)      570,107   

64,163

   TETRA Technologies Inc (b)      486,997   
     

 

 

 
     17,419,867   
     

 

 

 

Financial — 20.37%

  

42,015

   Acadia Realty Trust REIT      1,053,736   

15,049

   AMERISAFE Inc (b)      410,085   

36,589

   Bank Mutual Corp      157,333   

25,238

   Bank of the Ozarks Inc      844,716   

14,614

   Banner Corp (b)      449,088   

67,041

   BBCN Bancorp Inc      775,664   

66,791

   Boston Private Financial Holdings Inc      601,787   

58,526

   Brookline Bancorp Inc      497,471   

16,472

   Calamos Asset Management Inc Class A      174,109   

45,799

   Cedar Realty Trust Inc REIT      241,819   

12,179

   City Holding Co (a)      424,438   

69,549

   Colonial Properties Trust REIT      1,486,262   

34,223

   Columbia Banking System Inc      613,961   

33,284

   Community Bank System Inc      910,650   
 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

Shares

     Value   

Financial — (continued)

  

76,698

   Cousins Properties Inc REIT    $ 640,428   

75,628

   CVB Financial Corp      786,531   

164,032

   DiamondRock Hospitality Co REIT      1,476,288   

24,194

   Dime Community Bancshares Inc      336,055   

24,926

   EastGroup Properties Inc REIT      1,341,268   

17,104

   eHealth Inc (b)      470,018   

26,657

   Employers Holdings Inc      548,601   

19,566

   Encore Capital Group Inc (a)(b)      599,111   

39,920

   EPR Properties REIT      1,840,711   

87,034

   Extra Space Storage Inc REIT (c)      3,167,167   

34,816

   Financial Engines Inc (a)(b)      966,144   

60,393

   First BanCorp/Puerto Rico (b)      276,600   

86,675

   First Commonwealth Financial Corp      591,124   

49,384

   First Financial Bancorp      721,994   

25,219

   First Financial Bankshares Inc (a)      983,793   

64,267

   First Midwest Bancorp Inc      804,623   

119,336

   FNB Corp      1,267,348   

29,467

   Forestar Group Inc (b)      510,663   

61,008

   Franklin Street Properties Corp REIT      751,009   

22,161

   Getty Realty Corp REIT (a)      400,228   

61,696

   Glacier Bancorp Inc      907,548   

36,407

   Government Properties Income
    Trust REIT (a) 		     872,676   

26,283

   Hanmi Financial Corp (b)      357,186   

73,316

   Healthcare Realty Trust Inc REIT (a)      1,760,317   

28,305

   HFF Inc Class A      421,745   

26,451

   Higher One Holdings Inc (a)(b)      278,794   

19,172

   Home BancShares Inc      633,059   

33,334

   Horace Mann Educators Corp      665,347   

19,613

   Independent Bank Corp      567,796   

9,737

   Infinity Property & Casualty Corp      567,083   

65,800

   Inland Real Estate Corp REIT      551,404   

34,139

   Interactive Brokers Group Inc Class A      467,022   

32,048

   Investment Technology Group Inc (b)      288,432   

62,885

   Kilroy Realty Corp REIT (a)(c)      2,978,862   

58,708

   Kite Realty Group Trust REIT      328,178   

80,283

   LaSalle Hotel Properties REIT (c)      2,038,385   

128,365

   Lexington Realty Trust REIT (a)      1,341,414   

25,691

   LTC Properties Inc REIT      904,066   

31,407

   MarketAxess Holdings Inc      1,108,667   

38,086

   Meadowbrook Insurance Group Inc      220,137   

115,761

   Medical Properties Trust Inc REIT      1,384,502   

35,754

   Mid-America Apartment Communities Inc     REIT  (c)      2,315,072   

33,907

   National Financial Partners Corp (b)      581,166   

102,655

   National Penn Bancshares Inc      956,745   

9,103

   Navigators Group Inc (b)      464,890   

28,574

   NBT Bancorp Inc      579,195   

82,480

   Northwest Bancshares Inc      1,001,307   

86,777

   Old National Bancorp      1,030,043   

33,656

   Oritani Financial Corp      515,610   

27,228

   PacWest Bancorp      674,710   

28,454

   Parkway Properties Inc REIT      398,071   

Shares

     Value   

Financial — (continued)

  

44,477

   Pennsylvania Real Estate Investment
    Trust REIT 		   $ 784,574   

27,632

   Pinnacle Financial Partners Inc (b)      520,587   

13,742

   Piper Jaffray Cos (b)      441,531   

14,192

   Portfolio Recovery Associates Inc (b)      1,516,557   

46,139

   Post Properties Inc REIT (c)      2,304,643   

52,740

   PrivateBancorp Inc      807,977   

52,200

   ProAssurance Corp (c)      2,202,318   

154,084

   Prospect Capital Corp (a)      1,674,893   

45,745

   Provident Financial Services Inc      682,515   

15,118

   PS Business Parks Inc REIT      982,368   

14,535

   RLI Corp      939,833   

24,245

   S&T Bancorp Inc      438,107   

31,329

   Sabra Health Care REIT Inc REIT      680,466   

10,997

   Safety Insurance Group Inc      507,732   

10,767

   Saul Centers Inc REIT      460,720   

46,335

   Selective Insurance Group Inc      892,875   

13,860

   Simmons First National Corp Class A      351,490   

25,722

   Sovran Self Storage Inc REIT      1,597,336   

26,048

   Sterling Bancorp      237,297   

15,278

   Stewart Information Services Corp      397,228   

41,855

   Stifel Financial Corp (a)(b)      1,338,104   

156,634

   Susquehanna Bancshares Inc      1,641,524   

22,448

   SWS Group Inc (b)      118,750   

79,878

   Tanger Factory Outlet Centers REIT (c)      2,731,828   

34,338

   Texas Capital Bancshares Inc (b)      1,539,029   

9,957

   Tompkins Financial Corp (a)      394,696   

29,861

   Tower Group Inc      530,630   

77,533

   TrustCo Bank Corp NY      409,374   

27,755

   UMB Financial Corp (a)      1,216,779   

94,184

   Umpqua Holdings Corp      1,110,429   

38,572

   United Bankshares Inc (a)      938,071   

38,855

   United Community Banks Inc (b)      366,014   

18,296

   United Fire Group Inc      399,585   

10,761

   Universal Health Realty Income
    Trust REIT 		     544,614   

21,396

   Urstadt Biddle Properties Inc REIT      421,073   

29,999

   ViewPoint Financial Group Inc      628,179   

5,010

   Virtus Investment Partners Inc (b)      605,909   

54,317

   Wilshire Bancorp Inc (b)      318,841   

30,608

   Wintrust Financial Corp      1,123,314   

11,228

   World Acceptance Corp (a)(b)      837,160   
     

 

 

 
     89,915,202   
     

 

 

 

Industrial — 19.15%

  

15,966

   AAON Inc      333,210   

33,312

   AAR Corp      622,268   

62,118

   Actuant Corp Class A      1,733,713   

28,690

   Advanced Energy Industries Inc (b)      396,209   

32,711

   Aegion Corp (b)      725,857   

16,535

   Aerovironment Inc (b)      359,471   

24,458

   Albany International Corp Class A      554,707   

13,682

   AM Castle & Co (a)(b)      202,083   

7,311

   American Science & Engineering Inc      476,750   

10,337

   Analogic Corp      768,039   
 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

Shares

     Value   

Industrial — (continued)

  

33,048

   AO Smith Corp (c)    $     2,084,337   

24,078

   Apogee Enterprises Inc      577,150   

35,288

   Applied Industrial Technologies Inc      1,482,449   

21,434

   Arkansas Best Corp      204,695   

17,483

   Astec Industries Inc      582,708   

21,341

   AZZ Inc      820,135   

11,916

   Badger Meter Inc      564,938   

40,296

   Barnes Group Inc      905,048   

9,407

   Bel Fuse Inc Class B      183,907   

37,662

   Belden Inc      1,694,413   

47,421

   Benchmark Electronics Inc (b)      788,137   

39,817

   Brady Corp Class A      1,329,888   

41,068

   Briggs & Stratton Corp      865,713   

30,047

   Bristow Group Inc      1,612,322   

47,402

   Calgon Carbon Corp (b)      672,160   

7,115

   Cascade Corp      457,495   

33,462

   Checkpoint Systems Inc (b)      359,382   

14,392

   CIRCOR International Inc      569,779   

33,558

   Cognex Corp      1,235,606   

20,261

   Coherent Inc      1,025,612   

31,169

   Comfort Systems USA Inc      379,015   

29,994

   CTS Corp      318,836   

13,566

   Cubic Corp      650,761   

40,123

   Curtiss-Wright Corp      1,317,238   

26,438

   Cymer Inc (b)(c)      2,390,788   

31,773

   Daktronics Inc      351,727   

100,312

   Darling International Inc (b)      1,609,004   

16,217

   Drew Industries Inc      522,998   

28,195

   Dycom Industries Inc (b)      558,261   

39,139

   Eagle Materials Inc (c)      2,289,632   

20,240

   Electro Scientific Industries Inc      201,388   

56,710

   EMCOR Group Inc      1,962,733   

15,549

   Encore Wire Corp      471,290   

41,024

   EnerSys Inc (b)      1,543,733   

14,349

   Engility Holdings Inc (b)      276,362   

17,524

   EnPro Industries Inc (b)      716,732   

22,570

   ESCO Technologies Inc      844,344   

10,915

   Exponent Inc (b)      609,384   

14,650

   FARO Technologies Inc (b)      522,712   

51,700

   Federal Signal Corp (b)      393,437   

32,459

   FEI Co      1,800,176   

25,000

   Forward Air Corp      875,250   

16,161

   Franklin Electric Co Inc      1,004,729   

50,294

   GenCorp Inc (a)(b)      460,190   

24,021

   Gibraltar Industries Inc (b)      382,414   

38,239

   Griffon Corp      438,219   

10,255

   Haynes International Inc      531,927   

60,342

   Headwaters Inc (b)      516,528   

39,860

   Heartland Express Inc      520,970   

53,566

   Hillenbrand Inc      1,211,127   

29,939

   Hub Group Inc Class A (b)      1,005,950   

46,998

   II-VI Inc (b)      858,653   

48,932

   Intermec Inc (b)      482,470   

18,319

   Intevac Inc (b)      83,718   

22,572

   iRobot Corp (a)(b)      422,999   

24,269

   John Bean Technologies Corp      431,260   

22,307

   Kaman Corp      820,898   

26,731

   Kaydon Corp      639,673   

50,674

   Knight Transportation Inc      741,361   

Shares

     Value   

Industrial — (continued)

  

17,916

   Koppers Holdings Inc    $ 683,495   

10,913

   Lindsay Corp (a)      874,350   

18,695

   Littelfuse Inc      1,153,668   

15,623

   LSB Industries Inc (b)      553,367   

14,418

   Lydall Inc (b)      206,754   

13,121

   Measurement Specialties Inc (b)      450,838   

28,654

   Methode Electronics Inc      287,400   

38,081

   Moog Inc Class A (b)      1,562,463   

15,253

   Movado Group Inc      467,962   

23,679

   Mueller Industries Inc      1,184,660   

27,041

   Myers Industries Inc      409,671   

4,121

   National Presto Industries Inc (a)      284,761   

15,442

   NCI Building Systems Inc (b)      214,644   

31,313

   Newport Corp (b)      421,160   

60,165

   Old Dominion Freight Line Inc (b)(c)      2,062,456   

8,367

   Olympic Steel Inc (a)      185,245   

49,078

   Orbital Sciences Corp (b)      675,804   

24,570

   Orion Marine Group Inc (b)      179,607   

15,714

   OSI Systems Inc (b)      1,006,325   

16,823

   Park Electrochemical Corp      432,856   

30,096

   Plexus Corp (b)      776,477   

7,404

   Powell Industries Inc (b)      307,488   

30,770

   Quanex Building Products Corp      628,016   

36,247

   Robbins & Myers Inc (c)      2,154,884   

23,628

   Rofin-Sinar Technologies Inc (b)      512,255   

14,169

   Rogers Corp (b)      703,633   

25,667

   RTI International Metals Inc (b)      707,383   

33,788

   Simpson Manufacturing Co Inc      1,107,909   

10,549

   Standex International Corp      541,058   

35,530

   STR Holdings Inc (a)(b)      89,536   

16,445

   Sturm Ruger & Co Inc (a)      746,603   

31,365

   Teledyne Technologies Inc (b)(c)      2,040,921   

16,052

   Tennant Co      705,485   

53,528

   Tetra Tech Inc (b)      1,415,816   

17,788

   Texas Industries Inc (a)(b)      907,366   

20,251

   Tredegar Corp      413,525   

43,983

   TTM Technologies Inc (b)      404,644   

16,707

   Universal Forest Products Inc      635,534   

16,036

   Vicor Corp (b)      86,915   

23,425

   Watts Water Technologies Inc Class A      1,007,041   
     

 

 

 
     84,537,043   
     

 

 

 

Technology — 9.81%

  

41,466

   3D Systems Corp (a)(b)(c)      2,212,211   

10,762

   Agilysys Inc (b)      90,078   

27,614

   ATMI Inc (b)      576,580   

24,125

   Avid Technology Inc (b)      182,867   

38,091

   Blackbaud Inc      869,618   

31,110

   Bottomline Technologies Inc (b)      820,993   

54,783

   Brooks Automation Inc      441,003   

19,418

   Cabot Microelectronics Corp (a)      689,533   

19,106

   CACI International Inc Class A (b)      1,051,403   

19,340

   Ceva Inc (b)      304,605   

58,773

   CIBER Inc (b)      196,302   

55,087

   Cirrus Logic Inc (b)      1,595,870   

19,219

   Cohu Inc      208,334   

35,585

   CommVault Systems Inc (b)(c)      2,480,630   
 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

Shares

     Value   

Technology — (continued)

  

9,013

   Computer Programs & Systems Inc    $ 453,714   

28,518

   CSG Systems International Inc (b)      518,457   

20,943

   Digi International Inc (b)      198,330   

30,929

   Digital River Inc (b)      445,068   

31,156

   Diodes Inc (b)      540,557   

17,202

   DSP Group Inc (b)      99,084   

27,036

   Ebix Inc (a)      434,469   

39,342

   Electronics for Imaging Inc (b)      747,105   

72,620

   Entropic Communications Inc (b)      384,160   

25,938

   EPIQ Systems Inc      331,488   

38,538

   Exar Corp (b)      342,988   

16,995

   Gerber Scientific Inc (b)(d)(e)      0   

100,783

   GT Advanced Technologies Inc (a)(b)      304,365   

23,153

   Hittite Microwave Corp (b)      1,437,801   

26,370

   iGATE Corp (b)      415,855   

38,338

   Insight Enterprises Inc (b)      665,931   

12,925

   Interactive Intelligence Group Inc (b)      433,504   

36,108

   j2 Global Inc (a)      1,104,183   

54,885

   Kopin Corp (b)      182,767   

62,746

   Kulicke & Soffa Industries Inc (b)      752,325   

41,634

   LivePerson Inc (b)      547,071   

16,866

   Manhattan Associates Inc (b)      1,017,694   

18,662

   Medidata Solutions Inc (b)      731,364   

27,515

   Mercury Systems Inc (a)(b)      253,138   

40,531

   Micrel Inc      385,045   

76,405

   Microsemi Corp (b)      1,607,561   

7,430

   MicroStrategy Inc Class A (b)      693,813   

44,538

   MKS Instruments Inc      1,148,190   

26,338

   Monolithic Power Systems Inc      586,811   

31,797

   Monotype Imaging Holdings Inc      508,116   

13,615

   MTS Systems Corp      693,412   

18,685

   Nanometrics Inc (b)      269,438   

30,294

   Netscout Systems Inc (b)      787,341   

27,508

   Omnicell Inc (b)      409,044   

19,345

   Pericom Semiconductor Corp (b)      155,340   

24,385

   Power Integrations Inc      819,580   

54,212

   Progress Software Corp (b)      1,137,910   

34,265

   Quality Systems Inc      594,840   

19,826

   Radisys Corp (b)      59,081   

14,797

   Rubicon Technology Inc (a)(b)      90,410   

26,531

   Rudolph Technologies Inc (b)      356,842   

29,158

   Sigma Designs Inc (b)      150,164   

21,288

   Super Micro Computer Inc (a)(b)      217,138   

9,517

   Supertex Inc      167,023   

32,655

   Sykes Enterprises Inc (b)      497,009   

27,910

   Synaptics Inc (b)      836,463   

22,636

   Synchronoss Technologies Inc (b)      477,393   

22,392

   SYNNEX Corp (b)      769,837   

77,250

   Take-Two Interactive Software Inc (b)      850,522   

44,722

   Tessera Technologies Inc      734,335   

141,041

   TriQuint Semiconductor Inc (b)      682,638   

22,299

   Tyler Technologies Inc (b)      1,080,164   

22,362

   Ultratech Inc (b)      834,103   

33,547

   Veeco Instruments Inc (a)(b)      990,307   

16,044

   Virtusa Corp (b)      263,603   

Shares

     Value   

Technology — (continued)

  

22,181

   Volterra Semiconductor Corp (b)    $ 380,848   
     

 

 

 
     43,295,766   
     

 

 

 

Utilities — 3.90%

  

29,462

   ALLETE Inc      1,207,353   

16,276

   American States Water Co      780,922   

50,552

   Avista Corp      1,218,809   

12,817

   CH Energy Group Inc      835,925   

34,321

   El Paso Electric Co      1,095,183   

17,683

   Laclede Group Inc      682,741   

34,945

   New Jersey Resources Corp      1,384,521   

22,593

   Northwest Natural Gas Co      998,611   

31,823

   NorthWestern Corp      1,105,213   

61,421

   Piedmont Natural Gas Co Inc (c)      1,923,091   

26,449

   South Jersey Industries Inc      1,331,178   

39,342

   Southwest Gas Corp      1,668,494   

42,577

   UIL Holdings Corp      1,524,682   

34,684

   UNS Energy Corp      1,471,295   
     

 

 

 
        17,228,018   
     

 

 

 

TOTAL COMMON STOCK — 99.11%

  (Cost $386,509,425)

   $     437,550,958   
     

 

 

 

RIGHTS

     

Communication — 0.00% (f)

  

1,060     Metrocall Inc (b)(d)(e)

  
     0   
     

 

 

 

TOTAL RIGHTS — 0.00% (f)

  (Cost $0)

   $ 0   
     

 

 

 

Principal Amount

        

SECURITIES LENDING COLLATERAL

  

    11,998,199

  

Undivided interest of 21.05% in a repurchase agreement (principal amount/value $57,100,000 with a maturity value of $57,100,634) with BNP Paribas Securities Corp, 0.20%, dated 12/31/12, to be repurchased at $11,998,199 on 1/2/13, collateralized by Government National Mortgage Association, 3.00% - 3.50%, 9/15/42 - 11/15/42, with a value of $58,242,018.

   $ 11,998,199   
 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

Principal Amount

     Value   

Securities Lending Collateral — (continued)

  

  $11,998,198

  

Undivided interest of 17.40% in a repurchase agreement (principal amount/value $69,100,000 with a maturity value of $69,100,691) with RBC Capital Markets Corp, 0.18, dated 12/31/12, to be repurchased at $11,998,198 on 1/2/13, collateralized by various U.S. Government Agency Securities, 2.00% - 4.50%, 10/1/32 - 1/1/43, with a value of $70,482,000.

   $     11,998,198   

11,998,199

  

Undivided interest of 22.23% in a repurchase agreement (principal amount/value $54,000,000 with a maturity value of $54,000,750) with Goldman Sachs & Co., 0.25%, dated 12/31/12, to be repurchased at $11,998,199 on 1/2/13, collateralized by various U.S. Government Agency Securities, 2.50% - 5.00%, 10/1/25 - 12/1/42, with a value of $55,080,000.

     11,998,199   

431,311

  

Undivided interest of 21.59% in a repurchase agreement (principal amount/value $2,001,943 with a maturity value of $2,001,961) with HSBC Securities (USA) Inc, 0.16%, dated 12/31/12, to be repurchased at $431,311 on 1/2/13, collateralized by various U.S. Government Agency Securities, 0.00% -9.38%, 1/15/13 - 3/17/31, with a value of $2,041,993.

     431,311   

Principal Amount

     Value   

Securities Lending Collateral — (continued)

  

  $ 6,803,679

  

Undivided interest of 39.24% in a repurchase agreement (principal amount/value $17,377,120 with a maturity value of $17,377,265) with Merrill Lynch, Pierce, Fenner & Smith, 0.15%, dated 12/31/12, to be repurchased at $6,803,679 on 1/2/13, collateralized by U.S. Treasury, 0.38% - 4.13%, 6/30/13 - 8/15/19, with a value of $17,724,664.

   $ 6,803,679   

73,763

  

Undivided interest of 21.38% in a repurchase agreement (principal amount/value $345,797 with a maturity value of $345,800) with Merrill Lynch, Pierce, Fenner & Smith, 0.15%, dated 12/31/12, to be repurchased at $73,763 on 1/2/13, collateralized by Federal National Mortgage Association, 0.50% - 6.00%, 8/9/13 - 4/18/36, with a value of $352,713.

    

 

73,763

 

  

 

     

 

 

 

TOTAL SECURITIES LENDING

COLLATERAL — 9.81%

(Cost $43,303,349)

   $     43,303,349   
     

 

 

 

SHORT TERM INVESTMENTS

  

        2,808,000

  

Federal Home Loan Bank

  0.00% (g) , 01/02/2013

     2,808,000   

        4,000,000

  

International Bank for

  Reconstruction & Development

  0.03%, 01/02/2013

     3,999,997   

445,000

  

U.S. Treasury Bills (h)

  0.03%, 03/14/2013

     444,974   
     

 

 

 

TOTAL SHORT TERM INVESTMENTS — 1.64%

(Cost $7,252,971)

   $ 7,252,971   
     

 

 

 

TOTAL INVESTMENTS — 110.56%

  (Cost $437,065,745)

   $ 488,107,278   
     

 

 

 

OTHER ASSETS & LIABILITIES, NET — (10.56)%

   $ (46,619,987)   
     

 

 

 

TOTAL NET ASSETS — 100.00%

   $     441,487,291   
     

 

 

 
 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Schedule of Investments

As of December 31, 2012

 

(a)

A portion or all of the security is on loan at December 31, 2012.

(b)

Non-income producing security.

(c)

All or a portion of the security position has been pledged as collateral to cover segregation requirements on open futures contracts.

(d)

Security has no fair value at December 31, 2012.

(e)

Domestic security is fair valued at December 31, 2012.

(f)

Represents less than 0.005% of net assets.

(g)

The security’s yield to maturity was less than 0.01%.

(h)

All or a portion of the security has been segregated to cover initial margin requirements on open future contracts.

REIT  

Real Estate Investment Trust

At December 31, 2012, the Fund held the following outstanding futures contracts:

 

Description     

Number of

Contracts

     Currency      Notional
Value 		     Expiration
Date 		     Unrealized
Appreciation

Russell 2000 Mini Long Futures

     98      USD      $        8,296,680      March 2013      $         178,696

Security classes presented herein are not necessarily the same as those used for determining the Fund’s compliance with its investment objectives and restrictions, as the Fund uses additional sub-classifications, which management defines by referring to one or more widely recognized market indexes or ratings group indexes (unaudited).

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

Statement of Assets and Liabilities

As of December 31, 2012

 

       Great-West S&P
Small Cap 600  ®
Index Fund 		 

ASSETS:

  

Investments in securities, fair value (including $42,153,430 of securities on loan) (a)

     $488,107,278   

Cash

     463,725   

Dividends receivable

     301,880   

Subscriptions receivable

     1,098,932   

Receivable for investments sold

     25,589   

Variation margin on futures contracts

     223,527   
  

 

 

 

Total Assets

     490,220,931   
  

 

 

 

LIABILITIES:

  

Payable to investment adviser

     220,741   

Payable upon return of securities loaned

     43,303,349   

Redemptions payable

     4,674,333   

Payable for investments purchased

     535,067   

Payable for distribution fees

     150   
  

 

 

 

Total Liabilities

     48,733,640   
  

 

 

 

NET ASSETS

     $441,487,291   
  

 

 

 

NET ASSETS REPRESENTED BY:

  

Capital stock, $0.10 par value

     $4,570,073   

Paid-in capital in excess of par

     387,829,760   

Net unrealized appreciation on investments and futures contracts

     51,220,229   

Accumulated net realized loss on investments and futures contracts

     (2,132,771 ) 
  

 

 

 

TOTAL NET ASSETS

  

Initial Class

     $440,736,696   
  

 

 

 

Class L

     $750,595   
  

 

 

 

CAPITAL STOCK:

  

Authorized

  

Initial Class

     100,000,000   

Class L

     35,000,000   

Issued and Outstanding

  

Initial Class

     45,636,389   

Class L

     64,344   

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

  

Initial Class

     $9.66   
  

 

 

 

Class L

     $11.67   
  

 

 

 

(a)      Cost of investments

     $437,065,745   

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

Statement of Operations

For the fiscal year ended December 31, 2012

 

       Great-West S&P
Small Cap 600  ®
Index Fund 		 

INVESTMENT INCOME:

  

Interest

     $1,423   

Income from securities lending

     468,266   

Dividends

     7,338,996   
  

 

 

 

Total Income

     7,808,685   
  

 

 

 

EXPENSES:

  

Management fees

     2,372,767   

Distribution fees - Class L

     1,470   
  

 

 

 

Total Expenses

     2,374,237   
  

 

 

 

Less amount waived by distributor - Class L

     37   
  

 

 

 

Net Expenses

     2,374,200   
  

 

 

 

NET INVESTMENT INCOME

     5,434,485   
  

 

 

 

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

  

Net realized gain on investments

     9,667,472   

Net realized gain on futures contracts

     799,380   
  

 

 

 

Net realized gain

     10,466,852   
  

 

 

 

Net change in unrealized appreciation on investments

     40,400,016   

Net change in unrealized appreciation on futures contracts

     49,647   
  

 

 

 

Net change in unrealized appreciation

     40,449,663   
  

 

 

 

Net Realized and Unrealized Gain on Investments and Futures Contracts

     50,916,515   
  

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

     $56,351,000   
  

 

 

 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

Statement of Changes in Net Assets

For the fiscal years ended December 31, 2012 and 2011

 

     2012         2011   

Great-West S&P Small Cap 600  ® Index Fund

                 

OPERATIONS:

     

Net investment income

     $5,434,485         $1,997,303   

Net realized gain

     10,466,852         17,917,484   

Net change in unrealized appreciation (depreciation)

     40,449,663         (18,688,925)   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Operations

     56,351,000         1,225,862   
  

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS:

     

From net investment income

     

Initial Class

     (6,627,159)         (3,618,881)   

Class L

     (7,751)         (2,371)   
  

 

 

    

 

 

 

From net investment income

     (6,634,910)         (3,621,252)   
  

 

 

    

 

 

 

From net realized gains

     

Initial Class

     (12,586,707)         (11,894,620)   

Class L

     (17,115)         (5,274)   
  

 

 

    

 

 

 

From net realized gains

     (12,603,822)         (11,899,894)   
  

 

 

    

 

 

 

Total Distributions

     (19,238,732)         (15,521,146)   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS:

     

Shares sold

     

Initial Class

     233,646,565         188,506,217   

Class L

     916,132         239,694   

Shares issued in reinvestment of distributions

     

Initial Class

     19,213,866         15,513,501   

Class L

     24,866         7,645   

Shares redeemed

     

Initial Class

     (172,431,393)         (186,290,888)   

Class L

     (410,093)         (57,391)   
  

 

 

    

 

 

 

Net Increase in Net Assets Resulting from Capital Share Transactions

     80,959,943         17,918,778   
  

 

 

    

 

 

 

Total Increase in Net Assets

     118,072,211         3,623,494   
  

 

 

    

 

 

 

NET ASSETS:

     

Beginning of year

     323,415,080         319,791,586   
  

 

 

    

 

 

 

End of year

     $441,487,291         $323,415,080   
  

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS - SHARES:

     

Shares sold

     

Initial Class

     24,709,538         20,592,070   

Class L

     80,927         22,648   

Shares issued in reinvestment of distributions

     

Initial Class

     2,021,638         1,783,375   

Class L

     2,169         734   

Shares redeemed

     

Initial Class

     (18,117,859)         (20,354,776)   

Class L

     (36,470)         (5,664)   
  

 

 

    

 

 

 

Net Increase

     8,659,943         2,038,387   
  

 

 

    

 

 

 

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

Financial Highlights

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

 

           Fiscal Years Ended December 31,         
     2012        2011         2010         2009         2008   

Great-West S&P Small Cap 600  ® Index Fund - Initial Class

                                           

NET ASSET VALUE, BEGINNING OF YEAR

     $8.73        $9.14         $7.32         $5.90         $9.65   

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

             

Net investment income

     0.13 (a)       0.10         0.06         0.05         0.07   

Net realized and unrealized gain (loss)

     1.24        (0.07)         1.82         1.42         (3.08)   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total From Investment Operations

     1.37        0.03         1.88         1.47         (3.01)   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

LESS DISTRIBUTIONS:

             

From net investment income

     (0.15)        (0.10)         (0.06)         (0.05)         (0.07)   

From net realized gains

     (0.29)        (0.34)         –         –         (0.67)   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total Distributions

     (0.44)        (0.44)         (0.06)         (0.05)         (0.74)   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSET VALUE, END OF YEAR

     $9.66        $8.73         $9.14         $7.32         $5.90   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL RETURN (b)

     15.78%        0.36%         25.70%         24.95%         (31.35%)   

SUPPLEMENTAL DATA AND RATIOS:

             

Net assets, end of year ($000)

   $ 440,737      $ 323,230       $ 319,792       $ 207,863       $ 178,543   

Ratio of expenses to average net assets

     0.60%        0.60%         0.60%         0.60%         0.60%   

Ratio of net investment income to average net assets

     1.37%        0.62%         0.84%         0.82%         1.00%   

Portfolio turnover rate (c)

     13%        20%         20%         20%         28%   

 

(a)  

Per share amounts are based upon average shares outstanding.

(b)  

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

(c)  

Portfolio turnover is calculated at the Fund level.

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

Financial Highlights

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

 

      

2012

   

Fiscal Years

Ended
December 31,

2011 (a)

 
    

Great-West S&P Small Cap 600  ® Index Fund - Class L

                

NET ASSET VALUE, BEGINNING OF YEAR

     $10.47        $10.00   

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

    

Net investment income

     0.14 (b)       0.14   

Net realized and unrealized gain

     1.48        0.79   
  

 

 

   

 

 

 

Total From Investment Operations

     1.62        0.93   
  

 

 

   

 

 

 

LESS DISTRIBUTIONS:

    

From net investment income

     (0.13)        (0.14)   

From net realized gains

     (0.29)        (0.32)   
  

 

 

   

 

 

 

Total Distributions

     (0.42)        (0.46)   
  

 

 

   

 

 

 

NET ASSET VALUE, END OF YEAR

     $11.67        $10.47   
  

 

 

   

 

 

 

TOTAL RETURN (c) (e)

     15.49%        9.31% (d)  

SUPPLEMENTAL DATA AND RATIOS:

    

Net assets, end of year ($000)

     $751        $185   

Ratio of expenses to average net assets

    

Before waiver

     0.85%        0.88% (f)  

After waiver

     0.84%        0.84% (f)  

Ratio of net investment income to average net assets

    

Before waiver

     1.21%        0.73% (f)  

After waiver

     1.22%        0.77% (f)  

Portfolio turnover rate (g)

     13%        20%   

 

(a)  

Class L inception date was August 12, 2011.

(b)  

Per share amounts are based upon average shares outstanding.

(c)  

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

(d)

Not annualized for periods less than one full year.

(e)  

Performance shown net of distribution fees waived. Without the waiver, the return shown would have been lower.

(f)  

Annualized.

(g)

Portfolio turnover is calculated at the Fund level.

 

See Notes to Financial Statements.

 

Annual Report - December 31, 2012

GREAT-WEST FUNDS, INC.

GREAT-WEST S&P SMALL CAP 600® INDEX FUND

Notes to Financial Statements

 

 

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Great-West Funds, Inc. (the Great-West Funds) is a Maryland corporation organized on December 7, 1981 and is registered under the Investment Company Act of 1940 (the 1940 Act) as an open-end management investment company. Great-West Funds changed its name from Maxim Series Fund, Inc. on September 24, 2012 and presently consists of sixty-four funds. Interests in the Great-West S&P Small Cap 600 ® Index Fund (the Fund) are included herein and are represented by a separate class of beneficial interest of the Great-West Funds. Effective May 1, 2012, Maxim Index 600 Portfolio’s name changed to Maxim S&P SmallCap 600 ® Index Portfolio, which subsequently changed to Great-West S&P Small Cap 600 ® Index Fund on September 24, 2012. The investment objective of the Fund is to seek investment results that track the total return of the common stocks that comprise the Standard & Poor’s SmallCap 600 Stock Index. The Fund is diversified as defined in the 1940 Act. The Fund is available as an investment option for insurance company separate accounts for certain variable annuity contracts and variable life insurance policies, to individual retirement account custodians or trustees, to plan sponsors of qualified retirement plans, to college savings programs, and to asset allocation funds that are a series of the Great-West Funds.

The Fund offers two share classes, referred to as Initial Class and Class L shares. All shares of the Fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, expenses (other than those attributable to a specific class) and realized and unrealized gains and losses are allocated daily to each class of shares based on the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against operations of that class.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies of the Fund.

Net Asset Value

The net asset value of each class of the Fund’s shares is determined by dividing the net assets attributable to each class of the Fund by the number of issued and outstanding shares of each class of the Fund on each business day.

Security Valuation

The value of assets in the Fund is determined as of the close of trading on each valuation date.

Short-term securities purchased with less than 60 days remaining until maturity and all U.S. Treasury Bills are valued on the basis of amortized cost, which approximates fair value. Short-term securities purchased with more than 60 days remaining until maturity are valued using pricing services, or in the event a price is not available from a pricing service, may be model priced or priced on the basis of quotations from brokers or dealers, and will continue to be priced until final maturity.

For securities that are traded on an exchange, the last sale price as of the close of business of the principal exchange will be used. If the closing price is not available, the current bid will be used. For securities that principally trade on the NASDAQ National Market System, the NASDAQ official closing price will be used.

Foreign exchange rates are determined by utilizing the New York closing rates.

 

Annual Report - December 31, 2012

Foreign securities are generally valued using an adjusted systematic fair value price from an independent pricing service.

Independent pricing services are approved by the Board of Directors and are utilized for all investment types when available. In some instances valuations from independent pricing services are not available or do not reflect events in the market between the time the market closed and the valuation time and therefore fair valuation procedures are implemented. Developments that might trigger fair value pricing could be natural disasters, government actions or fluctuations in domestic and foreign markets.

The following table provides examples of the inputs that are commonly used for valuing particular classes of securities. These classifications are not exclusive, and any inputs may be used to value any other security class.

 

Class

 

Inputs

   

Equity Investments:

   

  Common Stock (Domestic and Foreign)

  Exchange traded close price, bids, evaluated bids, open and close price of local exchange, exchange rates, fair values based on significant market movement and various index data.  

  Rights

  Exchange traded close price, bids, evaluated bids.  

Securities Lending Collateral (Repurchase Agreements)

  Maturity date and credit quality.  

Short Term Investments

  Maturity date and credit quality.  

Derivative Investments:

   

  Futures Contracts

  Exchange traded close price.  

The Fund classifies its valuations into three levels based upon the transparency of inputs to the valuation of the Fund’s investments. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. The three levels are defined as follows:

Level 1 – Unadjusted quoted prices for identical securities in active markets.

Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. These may include quoted prices for similar assets in active markets. The fair value for some Level 2 securities may be obtained from pricing services or other pricing sources. The inputs used by the pricing services are reviewed quarterly or when the pricing vendor issues updates to its pricing methodologies.

Level 3 – Unobservable inputs to the extent observable inputs are not available and may include prices obtained from single broker quotes. Unobservable inputs reflect the reporting entity’s own assumptions and would be based on the best information available under the circumstances. Broker quotes are analyzed through an internal review process, which includes a review of known market conditions and other relevant data.

As of December 31, 2012, the inputs used to value the Fund’s investments are detailed in the following table. The Fund recognizes transfers between levels as of the beginning of the reporting period.

 

       Level 1      Level 2      Level 3      Total  

Assets

           

Equity Investments:

           

Domestic Common Stock

   $ 436,264,114       $ —       $ —       $ 436,264,114   

Foreign Common Stock

     1,286,844         —         —         1,286,844   

Rights

     —         —         —         —   

Securities Lending Collateral

     —         43,303,349         —         43,303,349   

Short Term Investments

     —         7,252,971         —         7,252,971   

Derivative Investments:

           

Futures Contracts

     178,696         —         —         178,696   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments (a)

   $         437,729,654       $         50,556,320       $                         0       $         488,285,974   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)

Further breakdown of the Fund’s sector and industry classifications is included in the Schedule of Investments.

 

Annual Report - December 31, 2012

Futures Contracts are reported at the security’s unrealized appreciation/(depreciation), which represents the change in the contract’s value from trade date.

Risk Factors

Investing in the Fund may involve certain risks including, but not limited to, the following.

Unforeseen developments in market conditions may result in the decline of prices of, and the income generated by, the securities held by the Fund. These events may have adverse effects on the Fund such as a decline in the value and liquidity of many securities held by the Fund, and a decrease in net asset value. Such unforeseen developments may limit or preclude the Fund’s ability to achieve its investment objective.

Investing in stocks may involve larger price fluctuation and greater potential for loss than other types of investments. This may cause the securities held by the Fund to be subject to larger short-term declines in value.

The Fund may have elements of risk due to concentrated investments in foreign issuers located in a specific country. Such concentrations may subject the Fund to additional risks resulting from future political or economic conditions and/or possible impositions of adverse foreign governmental laws or currency exchange restrictions. Investments in securities of non-U.S. issuers have unique risks not present in securities of U.S. issuers, such as greater price volatility and less liquidity.

Financial Futures Contracts

Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Receipts or payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuations in the fair value of the underlying security. When the Fund enters into a closing transaction, it will realize, for book purposes, a gain or loss equal to the difference between the value of the futures contract at the time it was opened or purchased and its value at the time it was closed.

Repurchase Agreements

The Fund may engage in repurchase agreement transactions with institutions that the Fund’s investment adviser has determined are creditworthy. The Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Collateral is at least equal to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights.

The Fund, along with certain other funds of the Great-West Funds, may hold repurchase agreement positions as a form of security lending collateral, that are jointly collateralized by various U.S. Government or U.S. Government Agency securities.

Dividends

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

Security Transactions

Security transactions are accounted for on the date the security is purchased or sold (trade date). Realized gains and losses from investments sold are determined on the basis of the first-in, first-out method (FIFO).

Dividend income for the Fund is accrued as of the ex-dividend date and interest income, including amortization of discounts and premiums, is recorded daily.

 

Annual Report - December 31, 2012

Federal Income Taxes

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

As of and during the year ended December 31, 2012, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year, the Fund did not incur any interest or penalties.

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

Application of Recent Accounting Pronouncements

In April 2011, the Financial Accounting Standards Board issued ASU No. 2011-03 “Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements” (ASU No. 2011-03). ASU No. 2011-03 removes from the assessment of effective control the criterion requiring a transferor to have the ability to repurchase or redeem the financial assets transferred in a repurchase arrangement. This requirement was one of the criterions under ASU topic 860 that entities used to determine whether a transferor maintained effective control. Entities are still required to consider all the effective control criterion under ASU topic 860; however, the elimination of this requirement may lead to more conclusions that a repurchase agreement should be accounted for as a secured borrowing rather than a sale. ASU No. 2011-03 is effective for the interim or annual periods beginning on or after December 15, 2011. The Fund adopted ASU No. 2011-03 for its fiscal year beginning January 1, 2012. The adoption of ASU No. 2011-03 did not have an impact on the Fund’s financial position or the results of its operations.

In May 2011, the Financial Accounting Standards Board issued ASU No. 2011-04 “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs” (ASU No. 2011-04). ASU No. 2011-04 does not extend the use of the existing concept or guidance regarding fair value. It results in common fair value measurements and disclosures between accounting principles generally accepted in the United States and those of International Financial Reporting Standards. ASU No. 2011-04 expands disclosure requirements for Level 3 inputs to include a quantitative description of the unobservable inputs used, a description of the valuation process used and a qualitative description about the sensitivity of the fair value measurements. ASU No. 2011-04 is effective for interim or annual periods beginning on or after December 15, 2011. The Fund adopted ASU No. 2011-04 for its fiscal year beginning January 1, 2012. The adoption of ASU No. 2011-04 did not have an impact on the Fund’s financial position or the results of its operations.

In December 2011, the Financial Accounting Standards Board issued ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” (ASU No. 2011-11). ASU No. 2011-11 requires an entity to enhance disclosures about financial and derivative instrument offsetting arrangements or similar arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU No. 2011-11 is effective for interim or annual periods beginning on or after January 1, 2013. The Fund will adopt ASU No. 2011-11 for its fiscal year beginning January 1, 2013. At this time, the Fund is evaluating the impact, if any, of ASU No. 2011-11 on the financial statements and related disclosures.

 

2.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Great-West Funds has entered into an investment advisory agreement with Great-West Capital Management, LLC (the Adviser), formerly known as GW Capital Management, LLC, a wholly-owned subsidiary of GWL&A. As compensation for its services to Great-West Funds, the Adviser receives monthly compensation at the annual rate of 0.60% of the average daily net assets of the Fund. The management fee encompasses fund operation expenses. The Adviser and Great-West Funds have entered into a sub-advisory agreement with Mellon Capital Management Corporation. The Fund is not responsible for payment of the sub-advisory fees.

 

Annual Report - December 31, 2012

GWFS Equities, Inc. (the Distributor), is a wholly-owned subsidiary of GWL&A and the principal underwriter to distribute and market the Fund. The Fund has entered into a plan of distribution which provides for compensation for distribution of Class L shares and for providing or arranging for the provision of services to Class L shareholders. The distribution plan provides for a maximum fee equal to an annual rate of 0.25% of the average daily net assets of the Class L shares. The Distributor has agreed to voluntarily waive all 12b-1 fees attributable to Class L shares purchased by the Adviser in consideration for the Adviser providing initial capital to the Fund. The amount waived, if any, is reflected in the Statement of Operations.

The total compensation paid to the independent directors with respect to all sixty-four funds for which they serve as Directors was $238,800 for the year ended December 31, 2012. Certain officers of Great-West Funds are also directors and/or officers of GWL&A or its subsidiaries. No officer or interested director of Great-West Funds receives any compensation directly from Great-West Funds.

3. PURCHASES AND SALES OF INVESTMENT SECURITIES

For the year ended December 31, 2012, the aggregate cost of purchases and proceeds from sales of investment securities (excluding all U.S. Government securities and short-term securities) were $120,787,680 and $51,250,747, respectively. For the same period, there were no purchases or sales of long-term U.S. Government securities.

4. UNREALIZED APPRECIATION (DEPRECIATION)

At December 31, 2012, the U.S. Federal income tax cost basis was $440,720,656. The Fund had gross appreciation of securities in which there was an excess of value over tax cost of $97,314,285 and gross depreciation of securities in which there was an excess of tax cost over value of $49,927,663 resulting in net appreciation of $47,386,622.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund uses futures contracts in order for the Fund to hold cash but maintain index returns with the objective of minimizing tracking error versus the benchmark index. Index futures contracts which are most correlated to the benchmark index and exhibit sufficient liquidity are utilized. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the value of the contracts and the underlying securities that comprise the index, or that the clearinghouse will fail to perform its obligations.

Valuation of derivative instruments as of December 31, 2012 is as follows:

 

                                                                     

 

Asset Derivatives

 

Derivatives Not Accounted for as
    Hedging Instruments

  Statement of Assets and Liabilities Location    Value  

futures contracts

 

Net unrealized appreciation on

investments and futures contracts

   $ 178,696(a)   

 

(a)

Includes cumulative appreciation of futures contracts as reported in the Fund’s Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The effect of derivative instruments for the year ended December 31, 2012 is as follows:

 

                                                                     

 

Net Realized Gain/Loss

        

Net Unrealized Gain/Loss

 

Derivatives Not Accounted for as
    Hedging Instruments

  Statement of Operations Location    Value          Statement of Operations Location    Value  

futures contracts

  Net realized gain on futures contracts    $ 799,380         Net change in unrealized appreciation
    on futures contracts 		   $ 49,647   

The Fund held an average of 67 futures contracts for the reporting period.

 

Annual Report - December 31, 2012

6. SECURITIES LOANED

The Fund has entered into a securities lending agreement with its custodian. Under the terms of the agreement the Fund receives income, recorded monthly, after deductions of other amounts payable to the custodian or to the borrower from lending transactions. In exchange for such fees, the custodian is authorized to loan securities on behalf of the Fund against receipt of cash collateral at least equal in value at all times to the value of the securities loaned plus accrued interest. The Fund also continues to receive interest or dividends on the securities loaned. Cash collateral is invested in securities approved by the Board of Directors. The Fund bears the risk of any deficiency in the amount of collateral available for return to a borrower due to a loss in an approved investment. As of December 31, 2012 the Fund had securities on loan valued at $42,153,430 and received collateral of $43,303,349 for such loan which was invested in repurchase agreements collateralized by U.S. Government or U.S. Government Agency securities. The repurchase agreements can be jointly purchased with other lending agent clients and in the event of a default by the counterparty, all lending agent clients would share ratably in the collateral. Additional information regarding the Fund’s securities on loan is included in the Schedule of Investments.

7. DISTRIBUTIONS TO SHAREHOLDERS

Net investment income (loss) and net realized gain (loss) for federal income tax purposes may differ from those reported on the financial statements because of temporary and permanent book and tax basis differences. The differences may include but are not limited to the following: wash sales, distribution adjustments, adjustments to the accounting treatment of partnerships, adjustments for Passive Foreign Investment Corporation securities and adjustments for Real Estate Investment Trust securities. The differences have no impact on net assets or the results of operations. The character of dividends and distributions made during the fiscal year from net investment income and/or realized gains may differ from their ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Fund.

For the year ended December 31, 2012, the Fund reclassified permanent book and tax differences of:

 

Paid-in Capital        Overdistributed
Net Investment
Income 		       Accumulated Net
Realized Loss on
Investments 		 
$                              –         $ 1,200,425         $ (1,200,425 ) 

The tax character of distributions paid during the years ended December 31, 2012 and 2011 were as follows:

 

      2012     2011  

Distributions paid from:

   

Ordinary Income

  $ 6,634,910      $ 3,621,252   

Long-term capital gain

    12,603,822        11,899,894   
 

 

 

   

 

 

 
  $             19,238,732      $             15,521,146   
 

 

 

   

 

 

 

As of December 31, 2012, the components of distributable earnings on a tax basis were as follows:

              

Undistributed ordinary income

   $ 89,000     

Undistributed capital gains

     1,611,836     
  

 

 

   

Net accumulated earnings

     1,700,836     
  

 

 

   

Net unrealized appreciation on investments

  

 

 

 

47,386,622

 

  

 

Capital loss carryforward

     –     

Post-October losses

     –     
  

 

 

   

Tax composition of capital

   $             49,087,458     
  

 

 

   

Under the Regulated Investment Company Modernization Act of 2010, net capital losses realized in taxable years beginning after December 22, 2010 may be carried forward indefinitely, and the character of the losses is retained as short-term and/or long-term.

 

Annual Report - December 31, 2012

8. TAX INFORMATION (unaudited)

Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders. Of the ordinary income distributions declared for the year ended December 31, 2012, 92% qualifies for the dividend received deduction available to the Fund’s corporate shareholders.

 

Annual Report - December 31, 2012

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Great-West Funds, Inc.

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Great-West S&P Small Cap 600 ® Index Fund (formerly, Maxim Index 600 Portfolio), one of the funds of Great-West Funds, Inc. (formerly, Maxim Series Fund, Inc.) (the “Great-West Funds”) as of December 31, 2012, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of Great-West Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. Great-West Funds is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Great-West Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2012, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Great-West S&P Small Cap 600 ® Index Fund of Great-West Funds, Inc. as of December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ DELOITTE & TOUCHE LLP

Denver, Colorado

February 22, 2013

Great-West Funds

Great-West Funds is organized under Maryland law, and is governed by the Board of Directors. The Board is responsible for overall management of Great-West Funds’ business affairs. The Board meets at least four times during the year to, among other things, review a wide variety of matters affecting Great-West Funds, including performance, compliance matters, advisory fees and expenses, service providers, and other business affairs. The following table provides information about each of the Directors and officers of Great-West Funds.

Directors and Officers

 

 

Independent Directors*

 

Name,
Address, and
Age 		  Position(s)
Held with
Great-West
Funds 		  Term of
Office and
Length of
Time Served 		 

Principal Occupation(s)

During Past 5 Years

 

Number of
Funds in
Fund
Complex
Overseen

by

Director

  Other
Directorships
Held by
Director

Gail H. Klapper 

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1943

  Independent Director   Since 2007   Managing Attorney, Klapper Law Firm; Member, The Colorado Forum; President, Ward Lake, Inc.; Manager, 6K Ranch, LLC   64   Director, Guaranty Bancorp

Stephen G. McConahey

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1943

  Independent Director   Since 2011   Chairman, SGM Capital, LLC; Partner, Iron Gate Capital, LLC; Director, The IMA Financial Group, Inc.   64   Director, Guaranty Bancorp

Sanford Zisman

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1939

  Lead Independent Director   Since 1982   Attorney, Law Firm of Zisman, Ingraham & Mong, P.C.   64   N/A

 

Interested Directors**

 

Name,
Address, and
Age 		  Position(s)
Held with
Great-West
Funds 		  Term of
Office and
Length of
Time Served 		 

Principal Occupation(s)

During Past 5 Years

 

Number of
Funds in
Fund
Complex
Overseen

by

Director

  Other
Directorships
Held by
Director

Mitchell T.G. Graye

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1955

  Chairman, President & Chief Executive Officer  

Since 2000

(as Director)

 

Since 2008

(as Chairman)

 

Since 2008

(as President and Chief Executive Officer)

  President and Chief Executive Officer, Great-West Life & Annuity Insurance Company, Great-West Life & Annuity Insurance Company of New York, and GWL&A Financial, Inc.; President and Chief Executive Officer, U.S. Operations, The Great-West Life Assurance Company, The Canada Life Assurance Company, Crown Life Insurance Company, and London Life Insurance Company   64   N/A

Charles P. Nelson

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1961

  Director   Since 2008   President, Retirement Services, Great-West Life & Annuity Insurance Company and Great-West Life & Annuity Insurance Company of New York; Chairman and President, Advised Assets Group, LLC, EMJAY Corporation, and FASCore, LLC; Chairman, President and Chief Executive Officer, GWFS Equities, Inc.; Manager, Great-West Capital Management, LLC   64   N/A

 

Officers

 

Name,
Address, and
Age 		  Position(s)
Held with
Great-West
Funds 		  Term of Office
and Length of
Time Served 		 

Principal Occupation(s)

During Past 5 Years

 

Number of
Funds in
Fund
Complex
Overseen

by

Director

  Other
Directorships
Held by
Director
Beverly A. Byrne   Chief Legal Counsel &   Since 2004
(as Chief 		  Chief Compliance Officer, Chief Legal Counsel,   N/A   N/A

8515 East Orchard Road, Greenwood Village, CO 80111

 

1955

  Chief Compliance Officer  

Compliance Officer)

 

Since 2011
(as Chief Legal Counsel)

  Financial Services, Great-West Life & Annuity Insurance Company and Great-West Life & Annuity Insurance Company of New York; Chief Compliance Officer, U.S. Operations, The Great-West Life Assurance Company, The Canada Life Assurance Company, Crown Life Insurance Company, and London Life Insurance Company; Secretary and Chief Compliance Officer, GWFS Equities, Inc.; Chief Compliance Officer, Advised Assets Group, LLC; Chief Legal Officer and Secretary, FASCore, LLC; Chief Legal Counsel & Chief Compliance Officer, Great-West Capital Management, LLC; formerly, Secretary, Great-West Capital Management, LLC and Great-West Funds        

John A. Clouthier

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1967

  Assistant Treasurer   Since 2007   Director, Fund Administration, Great-West Life & Annuity Insurance Company; Assistant Treasurer, Great-West Capital Management, LLC   N/A   N/A

Jill A. Kerschen

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1975

  Assistant Treasurer   Since 2008   Senior Manager, Fund Financial & Tax Reporting, Great-West Life & Annuity Insurance Company; Assistant Treasurer, Great-West Capital Management, LLC   N/A   N/A
Ryan L. Logsdon   Assistant Vice   Since 2010   Assistant Vice President & Counsel, Great-West   N/A   N/A

8515 East Orchard Road, Greenwood Village, CO 80111

 

1974

  President, Counsel & Secretary       Life & Annuity Insurance Company; Assistant Vice President, Counsel & Secretary, Great-West Capital Management, LLC; formerly, Assistant Secretary, Great-West Capital Management, LLC and Great-West Funds        

Mary C. Maiers

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1967

  Chief Financial Officer & Treasurer  

Since 2008
(as Treasurer)

 

Since 2011
(as Chief Financial Officer)

  Vice President, Investment Operations, Great-West Life & Annuity Insurance Company and Great-West Life & Annuity Insurance Company of New York; Vice President and Treasurer, GWFS Equities, Inc. and Great-West Trust Company, LLC; Chief Financial Officer & Treasurer, Great-West Capital Management, LLC; formerly Investment Operations Compliance Officer, Great-West Capital Management, LLC and Great-West Funds   N/A   N/A

David G. McLeod

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1962

  Managing Director   Since 2012   Senior Vice President, Product Management, Great-West Life & Annuity Insurance Company; Manager, Vice President and Managing Director, Advised Assets Group, LLC; Managing Director, Great-West Capital Management, LLC   N/A   N/A

Joel L. Terwilliger

 

8515 East Orchard Road, Greenwood Village, CO 80111

 

1968

  Assistant Chief Compliance Officer   Since 2011   Managing Counsel, Great-West Life & Annuity Insurance Company; Secretary, Advised Assets Group, LLC; Assistant Chief Compliance Officer, Great-West Capital Management, LLC   N/A   N/A

*A Director who is not an “interested person” of Great-West Funds (as defined in the Investment Company Act of 1940, as amended) is referred to as an “Independent Director.”

**An “Interested Director” refers to a Director who is an “interested person” of Great-West Funds (as defined in the Investment Company Act of 1940, as amended) by virtue of their affiliation with either Great-West Funds or Great-West Capital Management, LLC.

Additional information about Great-West Funds and its Directors is available in the Great-West Funds’ Statement of Additional Information (“SAI”), which can be obtained free of charge upon request to: Secretary, Great-West Funds, Inc., 8525 East Orchard Road, Greenwood Village, Colorado 80111; (866) 831-7129. The SAI is also available on the Fund’s web site at http://www.greatwestfunds.com .

Additional information about Great-West Funds and its Directors is available in the Great-West Funds’ Statement of Additional Information (“SAI”), which can be obtained free of charge upon request to: Secretary, Great-West Funds, Inc., 8525 East Orchard Road, Greenwood Village, Colorado 80111; (866) 831-7129. The SAI is also available on the Fund’s web site at http://www.greatwestfunds.com .

Availability of Quarterly Fund Schedule

Great-West Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Great-West Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov , and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that Great-West Funds uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-831-7129, and on the Securities and Exchange Commission’s website at http://www.sec.gov .

Availability of Proxy Voting Record

Information regarding how Great-West Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-866-831-7129, and on the Securities and Exchange Commission’s website at http://www.sec.gov .

 

ITEM 2. CODE OF ETHICS.

 

(a)

As of the end of the period covered by this report, the registrant has adopted a Code of Ethics (the “Code of Ethics”) that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

 

(b)

For purposes of this Item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:

 

  (1)

Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

 

  (2)

Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;

 

  (3)

Compliance with applicable governmental laws, rules, and regulations;

 

  (4)

The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and

 

  (5)

Accountability for adherence to the code.

(c)

During the period covered by this report, there have been no substantive amendments made to the registrant’s Code of Ethics.

 

(d)

During the period covered by this report, the registrant has not granted any express or implicit waivers from the provisions of the Code of Ethics.

 

(f)

A copy of the Code of Ethics is filed as an exhibit to this Form N-CSR.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Mr. Sanford Zisman is the audit committee financial expert and is “independent,” pursuant to general instructions on Form N-CSR, Item 3.

An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the Audit Committee or Board of Directors.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

(a)

Audit Fees . The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were: $610,000 for fiscal year 2011 and $638,600 for fiscal year 2012.

 

(b)

Audit-Related Fees . The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were: $79,500 for fiscal year 2011 and $79,500 for fiscal year 2012. The nature of the services comprising the fees disclosed under this category involved performance of 17f-2 (self-custody) audits and administrative services related to the audit.

 

(c)

Tax Fees . The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were: $263,400 for fiscal year 2011 and $0 for fiscal year 2012. The nature of the services comprising the fees disclosed under this category involved tax return preparation, spillover dividend assistance, reconciliation of book capital accounts, and dividend assistance.

 

(d)

All Other Fees . There were no fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item.

(e)(1) Audit Committee’s Pre-Approval Policies and Procedures .

Pre-Approval of Audit Services. The Audit Committee must approve prior to retention all audit, review or attest engagements required under the securities laws that are provided to Great-West Funds by its independent auditors. The Audit Committee will not grant such approval to any auditors that are proposed to perform an audit for the Great-West Funds if a chief executive officer, controller, chief financial officer, chief accounting officer or any person serving in an equivalent position for Great-West Funds that is responsible for the financial reporting or operations of Great-West Funds was employed by those auditors and participated in any capacity in an audit of Great-West Funds during the year period (or such other period proscribed under SEC rules) preceding the date of initiation of such audit.

Pre-Approval of Non-Audit Services. The Audit Committee must pre-approve any non-audit services, including tax services, to be provided to Great-West Funds by its independent auditors (except those within applicable de minimis statutory or regulatory exceptions) 1 provided that Great-West Funds’ auditors will not provide the following non-audit services to Great-West Funds: (a) bookkeeping or other services related to the accounting records or financial statements of Great-West Funds; (b) financial information systems design and implementation; (c) appraisal or valuation services, fairness opinions, or contribution-in-kind reports; (d) actuarial services; (e) internal audit outsourcing services; (f) management functions or human resources; (g) broker-dealer, investment adviser, or investment banking services; (h) legal services; (i) expert services unrelated to the audit; and (j) any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible. 2

Pre-approval with respect to Non-Fund Entities. The Audit Committee must pre-approve any non-audit services that relate directly to the operations and financial reporting of Great-West Funds (except those within applicable de minimis statutory or regulatory exceptions) 3 to be provided by Great-West Funds’ auditors to (a) Great-West Funds’

 

 

 

 

1 No pre-approval is required as to non-audit services provided to Great-West Funds if: (a) the aggregate amount of all non-audit services provided to Great-West Funds constitute not more than 5% of the total amount of revenues paid by Great-West Funds to the independent auditors during the fiscal year in which the services are provided; (b) these services were not recognized by Great-West Funds at the time of the engagement to be non-audit services; and (c) the services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee prior to the completion of the audit.

2 With respect to the prohibitions on (a) bookkeeping; (b) financial information systems design and implementation; (c) appraisal, valuation, fairness opinions, or contribution-in-kind reports; (d) actuarial; and (e) internal audit outsourcing, such services are permitted to be provided if it is reasonable to conclude that the results of these services will not be subject to audit procedures during an audit of the audit client’s financial statements.

3 For non-audit services provided to the adviser and entities in a control relationship with the adviser, no pre-approval is required if: (a) the aggregate amount of all non-audit services provided constitute not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the services are provided to Great-West Funds, Great-West Funds’ investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser if that entity provides ongoing services to Great-West Funds; (b) these services were not recognized by Great-West Funds at the time of the engagement to be non-audit services; and (c) the services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee prior to the completion of the audit.

investment adviser; and (b) any entity controlling, controlled by, or under common control with the investment adviser if that entity provides ongoing services to Great-West Funds. 4 The Audit Committee may approve audit and non-audit services on a case-by-case basis or adopt pre-approval policies and procedures that are detailed as to a particular service, provided that the Audit Committee is informed promptly of each service, or use a combination of these approaches.

Delegation . The Audit Committee may delegate pre-approval authority to one or more of the Audit Committee’s members. Any member or members to whom such pre-approval authority is delegated must report any pre-approval decisions to the Audit Committee at its next scheduled meeting.

 

(e)(2)

100% of the services described pursuant to paragraphs (b) through (d) of this Item 4 of Form N-CSR were approved by the Audit Committee, and no such services were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f)

Not Applicable.

 

(g)

The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for fiscal year 2011 equaled $2,329,700 and for fiscal year 2012 equaled $1,680,600.

 

(h)

The registrant’s Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

 

ITEM 6. INVESTMENTS.

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

 

 

 

4 No pre-approval is required by the Audit Committee as to non-audit services provided to any Great-West Funds sub-adviser that primarily provides portfolio management services and is under the direction of another investment adviser and is not affiliated with Great-West Funds’ primary investment adviser.

(b) Not applicable.

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

Not applicable.

 

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

Not applicable.

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

Not applicable.

 

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

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

 

ITEM 11. CONTROLS AND PROCEDURES.

 

(a)

The registrant’s principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-CSR is recorded, processed, summarized and reported, within the time periods specified in the commission’s rules and forms and that such material information is accumulated and communicated to the registrant’s management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.

 

(b)

The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 12. EXHIBITS.

 

(a)

(1) Code of Ethics required by Item 2 of Form N-CSR is filed herewith.

(2) A separate certification for each principal executive and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 is attached hereto.

(3) Not applicable.

(b) A separate certification for each principal executive and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940 is attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

GREAT-WEST FUNDS, INC.
By:   /s/ M.T.G. Graye                                 
  M.T.G. Graye
  President and Chief Executive Officer
Date:   February 26, 2013

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

 

By:   /s/ M.T.G. Graye                                 
  M.T.G. Graye
  President and Chief Executive Officer
Date:   February 26, 2013
By:   /s/ M.C. Maiers                                 
  M.C. Maiers
  Chief Financial Officer & Treasurer
Date:   February 26, 2013
Connexus (CE) (USOTC:CNXS)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024 Click aqui para mais gráficos Connexus (CE).
Connexus (CE) (USOTC:CNXS)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024 Click aqui para mais gráficos Connexus (CE).