KP Retirement Path 2050 Fund: KPRHX. KP Retirement Path 2055 Fund: KPRIX. KP Retirement Path 2060 Fund: KPRJX. KP Large Cap Equity Fund: KPLCX

The KP Funds KP Retirement Path 2015 Fund: KPRAX KP Retirement Path 2020 Fund: KPRBX KP Retirement Path 2025 Fund: KPRCX KP Retirement Path 2030 Fund: KPRDX KP Retirement Path 2035 Fund: KPREX KP Retirement Path 2040 Fund: KPRFX KP Retirement Path 2045 Fund: KPRGX KP Retirement Path 2050 Fund: KPRHX KP Retirement Path 2055 Fund: KPRIX KP Retirement Path 2060 Fund: KPRJX KP Large Cap Equity Fund: KPLCX KP Small Cap Equity Fund: KPSCX KP International Equity Fund: KPIEX KP Fixed Income Fund: KPFIX Annual Report December 31, 2016

TABLE OF CONTENTS Letter to Shareholders... 1 Management Discussion and Fund Performance... 2 Schedules of Investments... 19 Statements of Assets and Liabilities... 113 Statements of Operations... 117 Statements of Changes in Net Assets... 121 Financial Highlights... 128 Notes to Financial Statements... 130 Report of Independent Registered Public Accounting Firm... 142 Trustees and Officers of the Trust... 144 Disclosure of Fund Expenses... 152 Approval of Investment Advisory Agreement... 154 Notice to Shareholders... 157 The Funds file their complete schedules of investments with the Securities and Exchange Commission (the Commission ) for the first and third quarters of each fiscal year on Form N-Q within sixty days after period end. The Funds Forms N-Q are available on the Commission s website at http://www.sec.gov, and may be reviewed and copied at the Commission s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 855-457-3637 (855-4KPFNDS); and (ii) on the Commission s website at http://www.sec.gov.

Dear Shareholder, The US economic picture continued to improve through 2016 with solid GDP growth, incremental improvement on the employment and wage front, and a benign inflationary environment. Performance across the major asset classes was positive, ranging from modestly positive for US bonds and developed Non-US stocks, to strongly positive for US Stocks, commodities and emerging markets. Fixed income returns were positive for the year with the Bloomberg Barclays Aggregate Index returning 2.65%. Large Cap US stocks as measured by the Russell 1000 Index returned 12.05% for the year. Non-US equity markets did not fare as well with the MSCI ACWI ex-us Developed Markets Equity Index gaining 4.50% for the year and the MSCI Emerging Markets Equity Index returned 11.60%. Returns for inflation sensitive (or real) assets were also strongly positive. US REITs (as measured by the NAREIT Composite Index) returned 9.37% for the year, while Commodities (as measured by the Bloomberg Commodity Index) increased by 11.40%. The KP Retirement Path Funds were launched during the early part of January 2014 to provide participants in KPsponsored defined contribution plans with diversified exposure to all of these asset classes, as well as a number of others including small cap US equity, natural resource equity, global listed infrastructure, Treasury Inflation Protected Securities, floating rate notes, emerging market debt, and short term bonds. Each of the 10 KP Retirement Path Funds is designed with a specific retirement date in mind, and the asset allocation is automatically adjusted over time to help shareholders achieve the appropriate balance between long-term capital growth, inflation protection, and current income for each stage of their savings and investing career. Since the KP Retirement Path Funds inception we have been pleased with the performance of the operational infrastructure that was assembled to coordinate the activities of the 19 different investment management organizations responsible for the management of the Funds assets. We have also been satisfied from an investment performance perspective. In terms of absolute performance, fiscal year 2016 was generally characterized by positive returns across the major asset classes. Consequently the returns for the KP Retirement Path Funds were all positive for the year, ranging from 5.24% (2015 Fund) to 8.28% (2055 Fund). The Funds underperformed their strategic benchmarks in fiscal year 2016, due to challenging market conditions for active management, and as a result, modestly trail their benchmarks by between 0.07%-0.45% since their inception in January of 2014 (through December 31, 2016). We continue to believe that the KP Retirement Path Funds are well-designed and include a diverse set of complementary asset classes and strategies managed by a highly capable team of sub-advisors. We remain confident that the Funds are well-positioned to achieve their objectives going into 2017 and beyond. Respectfully Submitted, Gregory C. Allen Portfolio Manager President, Director of Research Ivan S. Cliff, CFA Portfolio Manager Director of Investment Research The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. For performance data current to the most recent month end, please call 855-4-KPFNDS. 1

MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Performance for the KP Retirement Path Funds for Fiscal Year 2016 was positive across the board on an absolute basis, but was negative on a relative basis compared to the Funds strategic benchmarks. In order to better understand the sources of underperformance for the year it is helpful to review the design of the Funds. Each of the KP Retirement Path Funds is itself a fund-of-funds. This means that each of the Funds is composed of a collection of sub-funds, each with a specific purpose that contributes to the overall design. At the highest level these sub-funds can be grouped into six major categories which include: large cap US equities, small cap US equities, international equities, broad fixed income, real (or inflation sensitive) assets, and short term fixed income. Each of the KP Retirement Path Funds varies its exposure to these asset categories over time to ensure that it is achieving the appropriate balance of capital appreciation, current income, inflation protection, and capital preservation. The 2060 Fund, for example, is primarily invested in large cap US equity, small cap US equity, and international equity. The 2015 Fund, on the other hand, has a much greater emphasis on broad fixed income, real assets, and short term fixed income. The performance of each Fund is compared to its own strategic benchmark. The strategic benchmarks are designed to reflect the target asset allocation for each Fund, while also assuming that each of the underlying asset classes is implemented using a passive index. While Management makes extensive use of passive strategies in the Funds implementation to keep costs low, we also employ a number of active strategies in our attempt to add value relative to the strategic benchmarks. Management does not attempt to add value by trying to time markets using tactical asset allocation. Instead we have designed a sophisticated rebalancing algorithm that keeps the Funds very close to their strategic asset allocation targets over time. As a result, virtually all of the relative performance of the Funds versus their strategic benchmarks can be explained by the relative performance of the strategies within each of the six underlying asset classes. Given this understanding, we can now put the relative performance of the KP Retirement Path Funds into perspective by examining the relative performance of each of the underlying asset classes. The KP Retirement Path Funds achieve their large cap US equity exposure through the use of the KP Large Cap Equity Fund. This Fund is benchmarked to the Russell 1000 Index. The Fund employs five strategies including: a passive S&P 500 index strategy; an active large cap growth strategy; an active large cap value strategy; and two active large cap blend strategies. The Fund returned 10.04% for the year versus 12.05% for the benchmark. This underperformance of -2.01% at the Fund level was largely explained by the underperformance of the active large cap growth strategy, the active large cap value strategy, and one of the active large cap blend strategies. These strategies trailed their benchmarks for the year by -3.80%, -2.55% and -1.74% respectively. Because large cap is a significant part of the asset allocation for all of the KP Retirement Path Funds, this was a meaningful source of underperformance across the entire fund family. The KP Retirement Path Funds achieve their small cap US equity exposure through the use of the KP Small Cap Equity Fund. This Fund is benchmarked to the Russell 2000 Index. The Fund employs seven strategies including a passive Russell 2000 strategy, two active small cap growth strategies, two active small cap value strategies, and two active small cap blend strategies. The Fund returned 18.38% for the year versus 21.31% for the benchmark. The underperformance of -2.93% was largely explained by the underperformance of the two active growth strategies and one of the actively managed value strategies. Because small cap is a relatively small part of the asset allocation for the KP Retirement Path Funds, this contributed to, but was not a significant source of relative underperformance across the fund family. The KP Retirement Path Funds achieve their international equity exposure through the use of the KP International Equity Fund. This Fund is benchmarked to the MSCI ACWI ex-us Index. The Fund employs four strategies including a passive MSCI EAFE strategy, an active MSCI EAFE strategy, an active MSCI ACWI ex-us strategy, and an active emerging markets strategy. The Fund returned 3.03% for the year versus 4.50% for the benchmark. This underperformance of -1.47% was primarily attributable to the active ACWI ex-us strategy which trailed its benchmark by -3.30%, outweighing the outperformance of the active emerging markets strategy, which outperformed its benchmark by 2.43%. Because international equity is a large part of the asset allocation for the KP Retirement Path Funds, this was a significant source of relative underperformance across the fund family. The KP Retirement Path Funds achieve their broad fixed income exposure through the use of the KP Fixed Income Fund. This Fund is benchmarked to the Bloomberg Barclays Capital US Aggregate Bond Index. The Fund employs four strategies including a passive Bloomberg Barclays Intermediate Government/Credit Index strategy, an active Bloomberg Barclays Aggregate strategy, an active emerging markets debt strategy, and an active bank loan strategy. 2

MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): The KP Fixed Income Fund returned 4.08% for the year versus 2.65% for the benchmark. This outperformance of 1.43% was primarily due to the outperformance of the active Bloomberg Barclays Aggregate strategy, which outperformed its benchmark by 1.02%, as well as the contributions of the active emerging markets debt and active bank loan strategies. Because fixed income is a large part of the asset allocation for the KP Retirement Path Funds, this outperformance had a positive impact on the relative performance of the KP Retirement Path Fund series. The KP Retirement Path Funds achieve their real assets exposure through the use of a diversified collection of nonaffiliated sub-funds each specializing in a different inflation-sensitive strategy. Collectively these strategies returned 9.10% over the measurement period versus 10.03% for their composite benchmark. The seven underlying real assets funds had a wide range of returns, from 3.08% for the international real estate fund to 25.01% for the global natural resources fund. Because real assets are a relatively small part of the asset allocation for the KP Retirement Path Funds, they had only a modest impact on the relative performance across the series. The KP Retirement Path Funds achieve their short term fixed income exposure through the use of low-cost index strategies. These sub-funds performed in line with their benchmarks and did not have a material effect on the relative performance across the series. To determine if one of these funds is an appropriate investment for you, carefully consider the fund s investment objectives, risk factors, charges, and expenses before investing. This and other information may be found in the fund s summary and full prospectuses, which may be obtained by calling (855)4-KPFNDS or by visiting the website at www.kp-funds.com. Please read the prospectus carefully before investing. The KP Retirement Path Funds and the KP Core Funds are mutual funds. They are part of The KP Funds Series Trust, an open-end management investment company that offers shares of diversified portfolios. The funds are advised by Callan Associates Inc., a registered investment advisor. They are administered by SEI Investments Global Funds Services and distributed by SEI investments Distribution Co., which are not affiliated with Callan Associates. Only participants in the Kaiser Permanente defined contribution plans and 403(b) plans can invest in the funds. There can be no assurance that a Fund will achieve its stated objectives. An investor may experience losses, at any time, including near, at or after the Fund s target year. In addition, there is no guarantee that an investor s investment in the fund will provide any income at or through the years following the Fund s target year in amounts adequate to meet the investor s goals or retirement needs. Investing involves risk including loss of principal. Bond and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Mortgage-backed securities are subject to pre-payment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities. Noninvestment grade bonds involve greater risks of default and are more volatile than investment grade securities, due to the speculative nature of the investment. International investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. These risks are heightened when investing in emerging markets or in a single state. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Underlying Fund would be adversely affected. The use of leverage by the fund managers may accelerate the velocity of potential losses. Furthermore, the use of derivatives are often more volatile than other investments and magnify the Fund s gains or losses. Diversification does not protect against market loss. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. For performance data current to the most recent month end, please call 855-4-KPFNDS. 3

MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Definition of Comparative Indices The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the Russell 3000 Index. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The MSCI ACWI ex-us Index captures large, mid and small cap representation across 22 of 23 Developed Markets countries (excluding the United States) and 23 Emerging Markets countries. With 6,092 constituents, the index covers approximately 99% of the global equity opportunity set outside the US. The MSCI EAFE Index captures large, mid, small and micro cap representation across 21 Developed Markets countries (excluding Canada and the United States). The MSCI Emerging Markets Equity Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based and measures the performance of the U.S. investment grade bond market. It invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. The FTSE NAREIT Composite Index is a headline index that consists of all REITs included in the FTSE NAREIT All REITs Index that also meet the minimum size and liquidity criteria. The FTSE NAREIT Composite Index is free float adjusted. The S&P 500 Index is based on market capitalizations of 500 large companies having common stock listed on the New York Stock Exchange or NASDAQ. 4

KP Retirement Path 2015 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2015 Fund, Institutional Class 5.24% 3.07% S&P 500 Index 11.96% 9.05% Custom Retirement 2015 Fund Benchmark 5.33% 3.14% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $10,962 $10,942 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2015 Fund, Institutional Class S&P 500 Index Custom Retirement 2015 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 5

KP Retirement Path 2020 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2020 Fund, Institutional Class 5.92% 3.26% S&P 500 Index 11.96% 9.05% Custom Retirement 2020 Fund Benchmark 6.23% 3.37% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,034 $11,000 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2015 12/31/2016 KP Retirement Path 2020 Fund, Institutional Class S&P 500 Index Custom Retirement 2020 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 6

KP Retirement Path 2025 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2025 Fund, Institutional Class 6.64% 3.40% S&P 500 Index 11.96% 9.05% Custom Retirement 2025 Fund Benchmark 7.37% 3.60% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,108 $11,044 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2025 Fund, Institutional Class S&P 500 Index Custom Retirement 2025 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 7

KP Retirement Path 2030 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2030 Fund, Institutional Class 7.32% 3.51% S&P 500 Index 11.96% 9.05% Custom Retirement 2030 Fund Benchmark 8.55% 3.80% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,173 $11,079 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2030 Fund, Institutional Class S&P 500 Index Custom Retirement 2030 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 8

KP Retirement Path 2035 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2035 Fund, Institutional Class 7.91% 3.66% S&P 500 Index 11.96% 9.05% Custom Retirement 2035 Fund Index 9.33% 4.03% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,247 $11,128 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2035 Fund, Institutional Class S&P 500 Index Custom Retirement 2035 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 9

KP Retirement Path 2040 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2040 Fund, Institutional Class 8.14% 3.74% S&P 500 Index 11.96% 9.05% Custom Retirement 2040 Fund Benchmark 9.77% 4.14% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,282 $11,155 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2040 Fund, Institutional Class S&P 500 Index Custom Retirement 2040 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 10

KP Retirement Path 2045 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2045 Fund, Institutional Class 8.15% 3.72% S&P 500 Index 11.96% 9.05% Custom Retirement 2045 Fund Benchmark 9.97% 4.17% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,293 $11,147 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2045 Fund, Institutional Class S&P 500 Index Custom Retirement 2045 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 11

KP Retirement Path 2050 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2050 Fund, Institutional Class 8.25% 3.74% S&P 500 Index 11.96% 9.05% Custom Retirement 2050 Fund Benchmark 10.01% 4.19% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,298 $11,154 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2050 Fund, Institutional Class S&P 500 Index Custom Retirement 2050 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 12

KP Retirement Path 2055 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2055 Fund, Institutional Class 8.28% 3.78% S&P 500 Index 11.96% 9.05% Custom Retirement 2055 Fund Benchmark 10.01% 4.19% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,298 $11,166 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2055 Fund, Institutional Class S&P 500 Index Custom Retirement 2055 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 13

KP Retirement Path 2060 Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Retirement Path 2060 Fund, Institutional Class 8.18% 3.81% S&P 500 Index 11.96% 9.05% Custom Retirement 2060 Fund Benchmark 10.01% 4.19% $13,500 $13,000 $12,940 $12,500 $12,000 $11,500 $11,000 $11,298 $11,175 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Retirement Path 2060 Fund, Institutional Class S&P 500 Index Custom Retirement 2060 Fund Benchmark * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 14

KP Large Cap Equity Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Large Cap Equity Fund, Institutional Class 10.04% 8.07% Russell 1000 Index 12.05% 8.72% $13,500 $13,000 $12,500 $12,825 $12,594 $12,000 $11,500 $11,000 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Large Cap Equity Fund, Institutional Class Russell 1000 Index * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 15

KP Small Cap Equity Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Small Cap Equity Fund, Institutional Class 18.38% 5.53% Russell 2000 Index 21.31% 6.77% $12,500 $12,000 $12,152 $11,736 $11,500 $11,000 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Small Cap Equity Fund, Institutional Class Russell 2000 Index * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 16

KP International Equity Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP International Equity Fund, Institutional Class 3.03% -1.26% MSCI ACWI ex-us Index 4.50% -1.46% $10,500 $10,000 $9,500 $9,631 $9,570 $9,000 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP International Equity Fund, Institutional Class MSCI ACWI ex-us Index * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 17

KP Fixed Income Fund MANAGEMENT DISCUSSION AND FUND PERFORMANCE (Unaudited): Growth of a $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS FOR THE YEAR ENDED DECEMBER 31, 2016 Annualized Inception 1 Year to Date* KP Fixed Income Fund, Institutional Class 4.08% 2.45% Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.81% $11,000 $10,859 $10,747 $10,500 $10,000 $9,500 1/10/2014* 12/31/2014 12/31/2015 12/31/2016 KP Fixed Income Fund, Institutional Class Bloomberg Barclays U.S. Aggregate Bond Index * The Fund commenced operations on January 10, 2014. The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, may be worth less than its original cost. The Fund s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a Fund s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. See definition of comparative indices on page 4. 18

KP Retirement Path 2015 Fund SECTOR WEIGHTINGS (unaudited) 17.1% Large Cap Equity 34.6% Fixed Income 16.3% Short-Term Fixed Income 16.1% Infla on Protec on 7.1% Real Assets 5.9% Interna onal Equity 2.9% Small Cap Equity Percentages based on total investments. SCHEDULE OF INVESTMENTS AFFILIATED REGISTERED INVESTMENT COMPANIES 60.5% KP Fixed Income Fund 16,214,841 $159,878 KP International Equity Fund 3,047,966 27,218 KP Large Cap Equity Fund 7,082,856 79,257 KP Small Cap Equity Fund 1,174,846 13,182 Total Affiliated Registered Investment Companies (Cost $275,051) 279,535 UNAFFILIATED REGISTERED INVESTMENT COMPANIES 39.5% DFA Commodity Strategy Portfolio 756,610 4,532 DFA International Real Estate Securities Portfolio 990,626 4,656 Lazard Global Listed Infrastructure Portfolio 333,137 4,721 T. Rowe Price Institutional Floating Rate Fund 450,337 4,539 T. Rowe Price New Era Fund 134,193 $ 4,517 Vanguard Inflation-Protected Securities Fund 1,344,077 13,952 Vanguard REIT Index Fund 545,584 9,870 Vanguard Short-Term Bond Index Fund 7,230,717 75,416 Vanguard Short-Term Inflation- Protected Securities Index Fund 2,458,350 60,598 Total Unaffiliated Registered Investment Companies (Cost $181,992) 182,801 Total Investments 100.0% (Cost $457,043) $462,336 Percentages are based on Net Assets of $462,303. REIT Real Estate Investment Trust As of December 31, 2016, all of the Fund s investments were considered Level 1 in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles. For the year ended December 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year. During the year ended December 31, 2016, there were no Level 3 investments. For further financial information on individual registered investment companies, available upon request at no charge, please go to the Securities Exchange Commission s website at http://www.sec.gov or the individual registered investment company s website. The following is a summary of the transactions with affiliates for the year ended December 31, 2016 : 12/31/2015 Purchases at Cost Proceeds from Sales Change in Unrealized Appreciation (Depreciation) Realized Gain 12/31/2016 Dividend Income Capital Gain Distributions KP Fixed Income Fund $169,178 $43,159 $(54,283) $ 474 $1,350 $159,878 $3,587 $1,632 KP International Equity Fund 28,750 3,455 (5,290) 745 (442) 27,218 527 2 KP Large Cap Equity Fund 80,962 11,416 (17,849) 2,757 1,971 79,257 1,190 1,852 KP Small Cap Equity Fund 13,967 1,197 (4,273) 2,038 253 13,182 93 1 19

KP Retirement Path 2020 Fund SECTOR WEIGHTINGS (unaudited) 31.6% Fixed Income 19.5% Large Cap Equity 13.5% Infla on Protec on 12.7% Short-Term Fixed Income 10.1% Interna onal Equity 7.1% Real Assets 5.5% Small Cap Equity Percentages based on total investments. SCHEDULE OF INVESTMENTS T. Rowe Price New Era Fund 226,552 $ 7,626 Vanguard Inflation-Protected Securities Fund 2,213,281 22,974 Vanguard REIT Index Fund 897,357 16,232 Vanguard Short-Term Bond Index Fund 9,408,784 98,134 Vanguard Short-Term Inflation- Protected Securities Index Fund 3,301,063 81,371 Total Unaffiliated Registered Investment Companies (Cost $256,728) 257,483 Total Investments 100.0% (Cost $759,746) $772,168 AFFILIATED REGISTERED INVESTMENT COMPANIES 66.7% KP Fixed Income Fund 24,682,990 $243,375 KP International Equity Fund 8,759,334 78,221 KP Large Cap Equity Fund 13,469,916 150,728 KP Small Cap Equity Fund 3,775,488 42,361 Total Affiliated Registered Investment Companies (Cost $503,018) 514,685 UNAFFILIATED REGISTERED INVESTMENT COMPANIES 33.3% DFA Commodity Strategy Portfolio 1,278,040 7,655 DFA International Real Estate Securities Portfolio 1,672,743 7,862 Lazard Global Listed Infrastructure Portfolio 562,213 7,967 T. Rowe Price Institutional Floating Rate Fund 760,072 7,662 Percentages are based on Net Assets of $772,111. REIT Real Estate Investment Trust As of December 31, 2016, all of the Fund s investments were considered Level 1 in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles. For the year ended December 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year. During the year ended December 31, 2016, there were no Level 3 investments. For further financial information on individual registered investment companies, available upon request at no charge, please go to the Securities Exchange Commission s website at http://www.sec.gov or the individual registered investment company s website. The following is a summary of the transactions with affiliates for the year ended December 31, 2016 : 12/31/2015 Purchases at Cost Proceeds from Sales Change in Unrealized Appreciation (Depreciation) Realized Gain 12/31/2016 Dividend Income Capital Gain Distributions KP Fixed Income Fund $221,728 $62,025 $(41,800) $ 300 $1,122 $243,375 $5,462 $2,436 KP International Equity Fund 77,118 10,689 (10,466) 1,738 (858) 78,221 1,515 4 KP Large Cap Equity Fund 140,979 23,016 (22,091) 6,259 2,565 150,728 2,263 3,450 KP Small Cap Equity Fund 40,717 5,279 (10,865) 6,449 781 42,361 299 3 20

KP Retirement Path 2025 Fund SECTOR WEIGHTINGS (unaudited) 26.0% Fixed Income 23.3% Large Cap Equity 16.8% Interna onal Equity 9.7% Infla on Protec on 8.6% Short-Term Fixed Income 8.5% Small Cap Equity 7.1% Real Assets Percentages based on total investments. SCHEDULE OF INVESTMENTS T. Rowe Price New Era Fund 248,830 $ 8,376 Vanguard Inflation-Protected Securities Fund 2,388,264 24,790 Vanguard REIT Index Fund 967,758 17,506 Vanguard Short-Term Bond Index Fund 6,980,292 72,804 Vanguard Short-Term Inflation- Protected Securities Index Fund 2,285,156 56,330 Total Unaffiliated Registered Investment Companies (Cost $213,652) 214,014 Total Investments 100.0% (Cost $826,758) $842,799 AFFILIATED REGISTERED INVESTMENT COMPANIES 74.6% KP Fixed Income Fund 22,269,190 $219,574 KP International Equity Fund 15,826,252 141,328 KP Large Cap Equity Fund 17,532,940 196,194 KP Small Cap Equity Fund 6,389,394 71,689 Total Affiliated Registered Investment Companies (Cost $613,106) 628,785 UNAFFILIATED REGISTERED INVESTMENT COMPANIES 25.4% DFA Commodity Strategy Portfolio 1,403,964 8,410 DFA International Real Estate Securities Portfolio 1,837,304 8,635 Lazard Global Listed Infrastructure Portfolio 617,349 8,748 T. Rowe Price Institutional Floating Rate Fund 834,796 8,415 Percentages are based on Net Assets of $842,733. REIT Real Estate Investment Trust As of December 31, 2016, all of the Fund s investments were considered Level 1 in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles. For the year ended December 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year. During the year ended December 31, 2016, there were no Level 3 investments. For further financial information on individual registered investment companies, available upon request at no charge, please go to the Securities Exchange Commission s website at http://www.sec.gov or the individual registered investment company s website. The following is a summary of the transactions with affiliates for the year ended December 31, 2016 : 12/31/2015 Purchases at Cost Proceeds from Sales Change in Unrealized Appreciation (Depreciation) Realized Gain 12/31/2016 Dividend Income Capital Gain Distributions KP Fixed Income Fund $181,849 $59,047 $(21,783) $ (146) $ 607 $219,574 $4,916 $2,187 KP International Equity Fund 127,484 22,587 (10,258) 2,387 (872) 141,328 2,734 4 KP Large Cap Equity Fund 173,397 34,621 (23,009) 8,435 2,750 196,194 2,942 4,446 KP Small Cap Equity Fund 63,440 10,512 (14,059) 10,708 1,088 71,689 509 3 21

KP Retirement Path 2030 Fund SECTOR WEIGHTINGS (unaudited) 27.2% Large Cap Equity 24.6% International Equity 20.0% Fixed Income 11.5% Small Cap Equity 7.2% Real Assets 5.6% Inflation Protection 3.9% Short-Term Fixed Income Percentages based on total investments. SCHEDULE OF INVESTMENTS AFFILIATED REGISTERED INVESTMENT COMPANIES 83.3% KP Fixed Income Fund 15,736,861 $155,165 KP International Equity Fund 21,299,009 190,200 KP Large Cap Equity Fund 18,820,111 210,598 KP Small Cap Equity Fund 7,936,998 89,053 Total Affiliated Registered Investment Companies (Cost $627,844) 645,016 UNAFFILIATED REGISTERED INVESTMENT COMPANIES 16.7% DFA Commodity Strategy Portfolio 1,293,764 7,750 DFA International Real Estate Securities Portfolio 1,692,858 7,956 Lazard Global Listed Infrastructure Portfolio 568,687 8,058 T. Rowe Price Institutional Floating Rate Fund 769,270 7,754 T. Rowe Price New Era Fund 229,281 $ 7,718 Vanguard Inflation-Protected Securities Fund 2,173,147 22,557 Vanguard REIT Index Fund 880,398 15,926 Vanguard Short-Term Bond Index Fund 2,887,031 30,112 Vanguard Short-Term Inflation- Protected Securities Index Fund 856,168 21,105 Total Unaffiliated Registered Investment Companies (Cost $129,042) 128,936 Total Investments 100.0% (Cost $756,886) $773,952 Percentages are based on Net Assets of $773,892. REIT Real Estate Investment Trust As of December 31, 2016, all of the Fund s investments were considered Level 1 in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles. For the year ended December 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 assets and liabilities. All transfers, if any, are recognized by the Fund at the end of the year. During the year ended December 31, 2016, there were no Level 3 investments. For further financial information on individual registered investment companies, available upon request at no charge, please go to the Securities Exchange Commission s website at http://www.sec.gov or the individual registered investment company s website. The following is a summary of the transactions with affiliates for the year ended December 31, 2016 : 12/31/2015 Purchases at Cost Proceeds from Sales Change in Unrealized Appreciation (Depreciation) Realized Gain (Loss) 12/31/2016 Dividend Income Capital Gain Distributions KP Fixed Income Fund $123,062 $40,614 $ (8,602) $ (149) $ 240 $155,165 $3,474 $1,540 KP International Equity Fund 166,221 32,558 (10,642) 2,931 (868) 190,200 3,679 5 KP Large Cap Equity Fund 179,313 39,662 (20,152) 9,327 2,448 210,598 3,158 4,737 KP Small Cap Equity Fund 75,370 14,066 (14,758) 13,174 1,201 89,053 634 3 22